Grupo Supervielle S.A. Reports 4Q16 Consolidated Results

4Q16 Net Income up 48% YoY and 22% QoQ.

Results in Line with Expectations

BUENOS AIRES, Argentina--()--Grupo Supervielle S.A. (NYSE:SUPV);(BASE:SUPV), (“Supervielle” or the “Company”) a universal financial services group headquartered in Argentina with a nationwide presence, today reported unaudited results for the three and twelve-month periods ended December 31, 2016. All figures presented throughout this document are expressed in nominal Argentine pesos (AR$) and all financial information has been prepared in accordance with Argentine Banking GAAP.

Fourth Quarter 2016 Highlights

  • Net income of AR$532.3 million, up 47.8% YoY, and 22.0% QoQ. ROAE of 31.3% in 4Q16, which reflects recovery from the equity base having doubled following the capital increase from the Initial Public Offering (“IPO”). This compares with ROAE of 61.6% in 4Q15 and 28.6% in 3Q16. ROAA of 4.1% in 4Q16, compared to 4.7% in 4Q15 and 4.0% in 3Q16.
  • Total gross loans, including the securitized loan portfolio, increased 57.6% YoY and 16.7% QoQ to AR$38.8 billion. Total balance sheet loans grew at a higher rate of 70.8% YoY and 17.6% QoQ, reflecting the anticipated slowdown in securitization.
  • NIM expanded 340 bps YoY to 20.9% in 4Q16, from 17.5% in 4Q15, and 37 bps from 20.5% in 3Q16.
  • Non-performing loan ratio improved 42 bps to 2.8% in 4Q16 from 3.2% in 4Q15 and 25 bps from 3.0% in 3Q16.
  • The efficiency ratio was 64.5% in 4Q16 compared with 68.2% in 4Q15 and 62.5% in 3Q16.
  • Equity to Asset ratio of 13.0% in 4Q16 compared to 7.2% in 4Q15 and 14.4% in 3Q16. Proforma Consolidated Common Equity Tier 1 Ratio of 12.3% in 4Q16 compared to 6.7% in 4Q15 and 12.6% in 3Q16 despite high QoQ increase in loan portfolio.

CEO Message

Commenting on the results for the quarter and fiscal year, Patricio Supervielle, Grupo Supervielle’s Chairman and CEO, noted: "I am very pleased to report that during our first year as a public company we met or exceeded the guidance laid out earlier in the year. We continued to successfully execute on our profitable growth strategy, exceeding industry loan growth for the third consecutive quarter, further reducing high-cost funding, delivering a 22% sequential increase in net income.”

“Our loan portfolio expanded by 16.7% QoQ and 57.6% YoY, almost doubling system growth, and posting accelerated expansion across all segments. Corporate loans tripled market growth as we continue to leverage our customer base and attractive offering, while Consumer Finance loans grew 16.7% QoQ. This was achieved while remaining vigilant around our risk profile and stabilizing asset quality. Our good performance was supported by a resilient net interest margin and improved efficiency in the year.

“Looking ahead, decreasing inflation and other positive economic signs, support expectations of recovery in 2017. Our strategy is delivering results and we are committed to continue executing upon it in the coming year. We are particularly optimistic about the opportunities ahead for us in our core businesses- SMEs, middle market, retail and consumer finance. In this context, earlier this month we successfully placed our inaugural AR peso denominated 3-year global bond for US$300 million, further diversifying our funding sources, to drive SMEs and individual loans with longer tenures as we continue to drive our growth in our market segments,” concluded Mr. Supervielle.

Financial Highlights & Key Ratios

               
(In millions of Argentine Ps.) % Change

INCOME STATEMENT

 

4Q16

 

3Q16

 

2Q16

 

1Q16

 

4Q15

 

QoQ

 

YoY

 

2016

 

2015

 

% Chg.

Gross Financial Margin   1,951.6   1,566.4   1,304.4   1,105.6   1,076.9   24.6%   81.2%   5,928.1   3,355.7   76.7%
Service Fee Income, Net   717.5   635.4   555.3   538.6   614.0   12.9%   16.9%   2,446.9   2,057.2   18.9%
Income from Insurance activities   129.9   194.0   164.4   117.9   62.0   -33.0%   109.5%   606.1   175.9   244.5%
Loan Loss Provisions   -316.7   -261.4   -295.9   -183.6   -187.9   21.2%   68.6%   -1,057.6   -543.8   94.5%
Administrative expenses   -1,805.8   -1,496.3   -1,458.7   -1,299.6   -1,196.2   20.7%   51.0%   -6,060.3   -4,261.4   42.2%
Income before Income Tax   669.3   624.3   278.8   239.5   457.1   7.2%   46.4%   1,811.9   921.3   96.7%
Net Income   532.3   436.4   167.9   174.7   360.1   22.0%   47.8%   1,311.3   674.1   94.5%
Earnings per Share (AR$)   1.5   1.2   0.6   0.7   2.9   21.9%   -50%   4.1   4.42   -
Earnings per ADRs (AR$)   7.3   6.0   2.8   3.5   14.6   21.9%   -50%   20.50   22.12   -
Outstanding Shares (in millions)   363.8   363.8   363.8   249.0   249.0   0.0%   46.1%            
   

BALANCE SHEET

dec 16

 

sep 16

 

jun 16

 

mar 16

 

dec 15

 

QoQ

 

YoY

Total Assets   53,206.0   44,433.7   40,960.0   34,672.3   33,045.8   19.7%   61.0%            
Average Assets1   51,421.4   43,174.3   37,881.6   33,548.1   30,932.2   19.1%   66.2%            
Total Loans & Leasing   37,338.8   31,751.7   27,409.4   23,283.0   21,855.9   17.6%   70.8%            
Securitized Loan Portfolio   1,483.9   1,512.8   2,040.4   2,049.5   2,784.6   -1.9%   -46.7%            
Total Portfolio 2   38,822.7   33,264.5   29,449.9   25,332.5   24,640.6   16.7%   57.6%            
Total Deposits   35,897.9   30,417.2   27,652.2   24,346.7   23,716.6   18.0%   51.4%            
Shareholders’ Equity   6,931.55   6,413.54   5,997.05   2,548.39   2,373.7   8.1%   192.0%            
Average Shareholders’ Equity1   6,807.9   6,114.3   4,302.2   2,537.4   2,338.3   11.3%   191.2%            
 

KEY INDICATORS

 

4Q16

 

3Q16

 

2Q16

 

1Q16

 

4Q15

         

2016

 

2015

   
Profitability & Efficiency                                        
ROAE   31.3%   28.6%   15.6%   27.5%   61.6%           26.3%   32.2%    
ROAA   4.1%   4.0%   1.8%   2.1%   4.7%           3.2%   2.5%    
Net Interest Margin   20.9%   20.5%   20.4%   20.0%   17.5%           20.6%   18.1%    
Net Financial Margin   20.6%   19.0%   18.5%   17.4%   18.4%           19.2%   16.4%    
Net Fee Income Ratio   30.3%   34.6%   35.6%   37.3%   38.6%           34.0%   40.0%    
Net Fee Income as a % of Administrative Expenses   46.9%   55.4%   49.3%   50.5%   56.5%           50.4%   52.4%    
Efficiency Ratio   64.5%   62.5%   72.1%   73.8%   68.2%           67.5%   76.2%    
Liquidity & Capital                                        
Loans to Total Deposits3   104.0%   104.4%   99.1%   95.6%   92.2%           -   -    
Liquidity Coverage Ratio (LCR)4   128.0%   104.1%   137.3%   118.9%   113.1%                    
Total Equity / Total Assets   13.0%   14.4%   14.6%   7.3%   7.2%           -   -    
Regulatory Capital/ Risk Weighted Assets5   12.5%   13.0%   14.0%   9.3%   8.7%           -   -    
Proforma Consolidated Tier 1 Capital / Risk weighted assets 6   12.3%   12.6%   13.5%   7.2%   6.7%           -   -    
Risk Weighted Assets / Total Assets   92.4%   101.2%   98.5%   101.4%   103.8%                    
Asset Quality                                        
NPL Ratio   2.8%   3.0%   3.1%   2.7%   3.2%           -   -    
Allowances as a % of Total Loans   2.4%   2.5%   2.6%   2.3%   2.9%           -   -    
Coverage Ratio   87.1%   83.7%   83.2%   83.9%   89.7%           -   -    
Cost of Risk   3.9%   3.7%   5.0%   3.4%   3.6%           4.0%   3.1%    
MACROECONOMIC RATIOS                                        
Retail Price Index (%)7   6.2%   2.7%   15.5%   11.9%   7.7%           41.0%   26.9%    
Pesos/US$ Exchange Rate   15.85   15.26   14.92   14.58   13.01           -   -    
Badlar Interest Rate (eop)   19.9%   22.2%   26.6%   30.8%   27.3%           -   -    
OPERATING DATA                                        
Customers (in millions)   2.2   2.2   2.2   2.1   2.1                    
Access Points   325   325   325   325   325           -   -    
Employees   4,982   4,911   4,910   4,884   4,843           -   -    
 
1. Avg. total Assets and avg. shareholder´s equity calculated on a daily basis
2. Total Portfolio: Loans and Leasing before Allowances, Including Securitized Portfolio.
3. On Balance Sheet Loans/Total Deposits.
4. This ratio includes the net liquidity held at the holding company level.
5. This ratio applies only to the Bank and CCF on a consolidated basis.
6. Includes $690 million Tier1 Capital retained at the holding company level available for injection in subsidiaries.
7. Source: City of Buenos Aires
 

4Q16 Earnings Call Dial-In Information

Hosted by:

  Patricio Supervielle, Chief Executive Officer & Chairman of the Board of Directors
Jorge Ramirez, Vice Chairman of the Board of Directors
Alejandra Naughton, Chief Financial Officer
Ana Bartesaghi, Treasurer & Investor Relations Officer
 
Date: Friday, February 17, 2017
Time: 9:00 AM (US ET); 11:00 AM (Buenos Aires Time)
Dial-in Numbers: 1-877-407-0789 (U.S. and Canada), 1-201-689-8562 (International), 0-800-756-3429 (U.K), or 0800-444-6247 (Argentina)
Webcast:

http://public.viavid.com/index.php?id=122915

Replay: From Friday, February 17, 2017 at 12:00 pm US ET through Friday, March 3, 2017 at 11:59 pm US ET. Dial-in number: +1-844-512-2921 (U.S./Canada) or +1-412-317-6671 (international).

About Grupo Supervielle S.A. (NYSE: SUPV; BCBA: SUPV)

Grupo Supervielle S.A. (“Supervielle”) is a universal financial services group located in Argentina that owns the fifth largest private domestically-owned bank in terms of assets. Headquartered in Buenos Aires, Supervielle offers retail and corporate banking, treasury, consumer finance, insurance, asset management and other products and services nationwide to a broad customer base including: individuals, small and medium-sized enterprises and medium to large-sized companies. With origins dating back to 1887, Supervielle operates through a multi-brand and multi-channel platform with a strategic national footprint. As of December 31, 2016, Supervielle had total assets of AR$53.2 billion under Argentine Banking GAAP, 325 access points and over 2 million customers. Grupo Supervielle had 363,777,615 shares outstanding and a free float of 46.2% as of December 31, 2016. For information about Grupo Supervielle, visit www.gruposupervielle.com.

Safe Harbor Statement

This press release contains certain forward-looking statements that reflect the current views and/or expectations of Grupo Supervielle and its management with respect to its performance, business and future events. We use words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “seek,” “future,” “should” and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) changes in general economic, financial, business, political, legal, social or other conditions in Argentina or elsewhere in Latin America or changes in either developed or emerging markets, (ii) changes in regional, national and international business and economic conditions, including inflation, (iii) changes in interest rates and the cost of deposits, which may, among other things, affect margins, (iv) unanticipated increases in financing or other costs or the inability to obtain additional debt or equity financing on attractive terms, which may limit our ability to fund existing operations and to finance new activities, (v) changes in government regulation, including tax and banking regulations, (vi) changes in the policies of Argentine authorities, (vii) adverse legal or regulatory disputes or proceedings, (viii) competition in banking and financial services, (ix) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of Grupo Supervielle, (x) increase in the allowances for loan losses, (xi) technological changes or an inability to implement new technologies, (xii) changes in consumer spending and saving habits, (xiii) the ability to implement our business strategy and (xiv) fluctuations in the exchange rate of the Peso. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Grupo Supervielle’s filings with the U.S. Securities and Exchange Commission (SEC) and Comision Nacional de Valores (CNV). Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. Grupo Supervielle is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Grupo Supervielle S.A.
Ana Bartesaghi, 5411-4324-8132
Treasurer and Investor Relations Officer
Ana.BARTESAGHI@supervielle.com.ar

Contacts

Grupo Supervielle S.A.
Ana Bartesaghi, 5411-4324-8132
Treasurer and Investor Relations Officer
Ana.BARTESAGHI@supervielle.com.ar