BUENOS AIRES, Argentina--(BUSINESS WIRE)--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 nine-month periods ended September 30, 2017. 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.
Third Quarter 2017 Highlights
- Total gross loans, including the securitized loan portfolio, increased 60.3% YoY and 19.7% QoQ to AR$53.3 billion. Total balance sheet loans grew 61.8% YoY and 21.3% QoQ, reflecting the decrease in loan securitization.
- Net income of AR$624.1 million, up 43.0% YoY, and 7.7% QoQ. ROAE of 27.0% in 3Q17, as equity increased due to the equity offering. This compares with ROAE of 28.6% in 3Q16 and 31.2% in 2Q17. ROAA of 3.5% in 3Q17, compared to 4.0% in 3Q16 and 3.6% in 2Q17.
- NIM of 18.5% in 3Q17, contracting by 200 bps YoY and by 130 bps QoQ, reflecting a combination of a higher proportion of US dollar (US$) assets and liabilities, along with a higher share of corporate segment loans, and a decrease in the Investment Portfolio returns. The AR$ NIM on the Company’s Loan Portfolio, which accounts for 82% of the total portfolio, declined 90 bps QoQ to 23.4% in 3Q17, while US$ NIM on the Company´s Loan Portfolio increased 20 bps to 3.2% in the quarter. In 2Q17 AR$ and US$ loan portfolio accounted 84% and 16% respectively.
- The efficiency ratio improved to 61.9% in 3Q17 compared with 62.5% in 3Q16, and 65.0% in 2Q17.
- Non-performing loan ratio decreased 20 bps to 2.8% in 3Q17 from 3.0% in 3Q16 and 10 bps from 2.9% 2Q17.
- Successful completion of follow on equity offering in September 2017 raised US$342 million to fund accelerated growth bringing Proforma Consolidated Common Equity Tier 1 Ratio to 19.5% in 3Q17, up from 11.6% in 2Q17. Proceeds from the capital raised received in local currency amounted to AR$5.6 billion. Equity to Asset ratio of 18.1% in 3Q17 compared to 11.7% in 2Q17. The company issued a total number of 85.45 million Class B shares. Previously, on July 22, 2017, the company has issued 7.495 million Class B Shares following a contribution in kind and rights offering approved by the Annual Shareholders Meeting.
CEO Message
Commenting on third quarter results, Patricio Supervielle, Grupo Supervielle's Chairman and CEO, noted: "On the back of improved economic dynamics across all sectors of the economy, we achieved broad-based above-market loan and deposits growth, while driving efficiency and profitability gains. By contrast, in the consumer finance segment confidence is lagging behind economic recovery in the context of persistent inflation and soft job recovery. This resulted in a slight increase in our cost of risk during the quarter. However, we saw an improvement in overall NPLs and maintain a vigilant focus on asset quality."
"The successful completion of our follow-on equity offering in September, just 16 months after our IPO, provided additional US$342 million in capital to support accelerated growth. Based on our solid performance to-date, increased capital and our expectations for a positive economic environment ahead, we are increasing our net income guidance for fiscal year 2017."
"We are excited about the rapid growth in mortgage loans which started this year where, based on our estimates, today we rank among the top 5 originators within private sector banks. We have also been busy introducing new products into the market to further increase our customer base, offer a tailor-made value proposition and build long-term relationships. We launched a new product offering dedicated to franchisees aimed at promoting the adoption of technology, training and professionalism into their businesses."
Financial Highlights & Key Ratios
| (In millions of Argentine Ps.) | % Change | |||||||||||||||||||
| INCOME STATEMENT | 3Q17 | 2Q17 | 1Q17 | 4Q16 | 3Q16 | QoQ | YoY | 9M17 | 9M16 | % Chg. | ||||||||||
| Gross Financial Margin | 2,348.7 | 2,133.2 | 1,927.8 | 1,951.6 | 1,566.4 | 10.1% | 49.9% | 6,409.7 | 3,976.5 | 61.2% | ||||||||||
| Service Fee Income, Net | 903.6 | 861.7 | 757.0 | 717.5 | 635.4 | 4.9% | 42.2% | 2,522.3 | 1,729.3 | 45.9% | ||||||||||
| Income from Insurance activities | 108.0 | 112.8 | 110.0 | 129.9 | 194.0 | -4.2% | -44.3% | 330.8 | 476.2 | -30.5% | ||||||||||
| Loan Loss Provisions | -481.3 | -396.0 | -342.6 | -316.7 | -261.4 | 21.5% | 84.1% | -1,219.9 | -741.0 | 64.6% | ||||||||||
| Administrative expenses | -2,078.6 | -2,020.8 | -1,886.1 | -1,805.8 | -1,496.3 | 2.9% | 38.9% | -5,985.5 | -4,254.5 | 40.7% | ||||||||||
| Income before Income Tax | 828.6 | 793.4 | 567.6 | 669.3 | 624.3 | 4.4% | 32.7% | 2,189.7 | 1,142.6 | 91.6% | ||||||||||
| Net Income | 624.1 | 579.7 | 381.9 | 532.3 | 436.4 | 7.7% | 43.0% | 1,585.7 | 779.0 | 103.5% | ||||||||||
| Earnings per Share (AR$) | 1.61 | 1.59 | 1.05 | 1.46 | 1.20 | 1.1% | 34.3% | |||||||||||||
| Earnings per ADRs (AR$) | 8.06 | 7.97 | 5.25 | 7.32 | 6.00 | 1.1% | 34.3% | |||||||||||||
| Average Outstanding Shares (in millions) | 387.3 | 363.8 | 363.8 | 363.8 | 363.8 | 6.5% | 6.5% | |||||||||||||
| BALANCE SHEET | sep 17 | jun 17 | mar 17 | dec 16 | sep 16 | QoQ | YoY | |||||||||||||
| Total Assets | 78,957.7 | 67,183.2 | 64,519.0 | 53,206.0 | 44,433.7 | 17.5% | 77.7% | |||||||||||||
| Average Assets1 | 71,650.7 | 63,692.5 | 59,578.5 | 51,421.4 | 43,174.3 | 12.5% | 66.0% | |||||||||||||
| Total Loans & Leasing | 51,371.0 | 42,345.9 | 39,803.7 | 37,338.8 | 31,751.7 | 21.3% | 61.8% | |||||||||||||
| Securitized Loan Portfolio | 1,960.4 | 2,226.0 | 1,361.3 | 1,483.9 | 1,512.8 | -11.9% | 29.6% | |||||||||||||
| Total Portfolio 2 | 53,331.4 | 44,571.9 | 41,165.1 | 38,822.7 | 33,264.5 | 19.7% | 60.3% | |||||||||||||
| Total Deposits | 47,181.9 | 42,831.6 | 38,826.8 | 35,897.9 | 30,417.2 | 10.2% | 55.1% | |||||||||||||
| Shareholders’ Equity | 14,300.1 | 7,827.6 | 7,313.4 | 6,931.6 | 6,413.5 | 82.7% | 123.0% | |||||||||||||
| Average Shareholders’ Equity1 | 9,239.9 | 7,432.6 | 7,009.0 | 6,807.9 | 6,114.3 | 24.3% | 51.1% | |||||||||||||
| KEY INDICATORS | 3Q17 | 2Q17 | 1Q17 | 4Q16 | 3Q16 | 9M17 | 9M16 | % Chg. | ||||||||||||
| Profitability & Efficiency | ||||||||||||||||||||
| ROAE | 27.0% | 31.2% | 21.8% | 31.3% | 28.6% | 26.8% | 23.7% | |||||||||||||
| ROAA | 3.5% | 3.6% | 2.6% | 4.1% | 4.0% | 3.3% | 2.7% | |||||||||||||
| Net Interest Margin | 18.5% | 19.8% | 18.7% | 20.8% | 20.5% | 19.0% | 20.4% | |||||||||||||
| Net Financial Margin | 16.8% | 17.7% | 17.7% | 20.4% | 18.7% | 18.0% | 18.4% | |||||||||||||
| Net Fee Income Ratio | 30.1% | 31.4% | 31.0% | 30.3% | 34.6% | 30.8% | 35.7% | |||||||||||||
| Cost / Assets | 11.6% | 12.7% | 12.6% | 14.0% | 13.9% | 12.3% | 14.9% | |||||||||||||
| Efficiency Ratio | 61.9% | 65.0% | 67.5% | 64.5% | 62.5% | 64.6% | 68.8% | |||||||||||||
| Liquidity & Capital | ||||||||||||||||||||
| Loans to Total Deposits3 | 108.9% | 98.9% | 102.5% | 104.0% | 104.4% | |||||||||||||||
| Liquidity Coverage Ratio (LCR)4 | 122.6% | 126.5% | 125.9% | 128.0% | 104.1% | |||||||||||||||
| Total Equity / Total Assets | 18.1% | 11.7% | 11.3% | 13.0% | 14.4% | |||||||||||||||
| Proforma Consolidated Capital / Risk weighted assets 5 | 20.7% | 13.0% | 13.4% | 13.8% | 14.3% | |||||||||||||||
| Proforma Consolidated Tier1 Capital / Risk weighted assets 6 | 19.5% | 11.6% | 12.0% | 12.3% | 12.6% | |||||||||||||||
| Risk Weighted Assets / Total Assets | 85.2% | 88.2% | 83.0% | 92.4% | 101.2% | |||||||||||||||
| Asset Quality | ||||||||||||||||||||
| NPL Ratio | 2.8% | 2.9% | 2.9% | 2.8% | 3.0% | |||||||||||||||
| Allowances as a % of Total Loans | 2.5% | 2.6% | 2.5% | 2.4% | 2.5% | |||||||||||||||
| Coverage Ratio | 88.9% | 88.0% | 87.0% | 87.1% | 83.7% | |||||||||||||||
| Cost of Risk | 4.4% | 4.2% | 3.9% | 3.9% | 3.7% | 4.2% | 4.1% | |||||||||||||
| MACROECONOMIC RATIOS | ||||||||||||||||||||
| Retail Price Index (%)7 | 5.1% | 5.6% | 7.1% | 6.2% | 2.7% | |||||||||||||||
| UVA (var) | 4.3% | 7.1% | 4.6% | 4.5% | 7.5% | |||||||||||||||
| Pesos/US$ Exchange Rate | 17.32 | 16.60 | 15.38 | 15.85 | 15.26 | |||||||||||||||
| Badlar Interest Rate (eop) | 21.8% | 20.1% | 19.1% | 19.9% | 22.2% | |||||||||||||||
| Badlar Interest Rate (avg) | 20.8% | 19.6% | 19.8% | 21.1% | 24.6% | |||||||||||||||
| TM20 (eop) | 22.75% | 20.75% | 19.75% | NA | NA | |||||||||||||||
| TM20 (avg) | 21.59% | 20.27% | 20.32% | NA | NA | |||||||||||||||
| OPERATING DATA | ||||||||||||||||||||
| Customers (in millions) | 2.3 | 2.3 | 2.2 | 2.2 | 2.2 | |||||||||||||||
| Access Points 8 | 324 | 324 | 321 | 325 | 325 | 0.0% | -0.3% | |||||||||||||
| Employees | 5,222 | 5,146 | 5,049 | 4,982 | 4,911 | 1.5% | 6.3% | |||||||||||||
- Average Assets and average Shareholder´s Equity calculated on a daily basis
- Total Portfolio: Loans and Leasing before Allowances, Including Securitized Portfolio.
- On Balance Sheet Loans/Total Deposits.
- This ratio includes the liquidity held at the holding company level.
- Regulatory capital divided by risk weighted assets taking into account operational and market risk. The regulatory capital ratio applies only to the Bank and CCF on a consolidated basis and does not include the liquidity held at the holding company level- The Proforma consolidated capital ratio, includes the liquidity retained at Grupo Supervielle level after the equity offering, which is available for further capital injections in its subsidiaries. As of September 30, 2017, the liquidity amounted to Ps. 6.5 billion.
- Tier 1 capital divided by risk weighted assets taking into account operational and market risk. The regulatory Tier 1 capital ratio applies only to the Bank and CCF on a consolidated basis and does not include the liquidity held at the holding company level. The. Proforma Consolidated Tier 1 capital ratio includes the liquidity retained at Grupo Supervielle level after the equity offering, which is available for further capital injections in its subsidiaries. As of September 30, 2017, the liquidity amounted to Ps. 6.5 billion.
- Source: City of Buenos Aires
- The increase in the number of Access Points in 2Q17, reflects the opening of 1 bank branch located in San Justo (Buenos Aires Province) and 2 banking payment and collection centers.
