Grupo Supervielle Reports 1Q25 Results
1Q25 Net Income at AR$7.9 billion with ROAE at 3.5%. Navigated a Transitional Macro Environment; Maintain Confidence in Our Core Strengths to Drive Growth
Starting 1Q20, the Company began reporting results applying Hyperinflation Accounting, in accordance with IFRS rule IAS 29 (“IAS 29”) as established by the
Management Commentary
Commenting on first quarter 2025 results,
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First, responding to the growing demand for simple, high-yield solutions, in April we launched ourinnovativeRemunerated Account. Supervielle is the only bank in
Argentina offering daily interest on both Payroll and SME accounts, in pesos andU.S. dollars. This innovation enhances the customer experience and reinforces our deposit base. We are confident it will also support organic client growth and deepen primary banking relationships. -
Second, as part of our client-centric innovation strategy, this month we launched Tienda Supervielle on
Mercado Libre , Latin America’s leading e-commerce platform, becoming the first bank to have an official online store hosted on their marketplace and also fully accessible through the Supervielle mobile app. This initiative marks a key milestone in our Super App journey, expanding our digital ecosystem and redefining how customers interact with financial services by connecting everyday commerce and banking in a single, fully digital experience. - Third, as part of our ongoing efforts to elevate the customer experience and improve efficiency, we are integrating Gen AI-powered interactions via WhatsApp, enhancing accessibility while also ensuring clients can always reach a human when needed, combining technology with the personalized service that defines Supervielle.
- And fourth, we continue to expand IOL, our leading online brokerage platform, which delivers integrated investment solutions to both its clients and the Bank’s customer base.
While
Client lending remained resilient, underscoring the strength of our core banking operations, while a sharp correction in treasury bond prices, amid uncertainty and prior to the confirmation of strong
Net fee income rose 32% year-on-year in real terms, supported by strong growth in banking fees, brokerage and asset management revenues, and deeper insurance penetration. In line with our efficiency strategy, operating expenses declined 12% sequentially and 17% year-over-year, reflecting continued progress on structural cost reduction and a leaner operating model.
First quarter 2025 Highlights
Attributable Net Income of AR$7.9 billion in 1Q25, compared to net gains of AR$72.5 billion in 1Q24 and AR$30.6 billion in 4Q24.
ROAE was 3.5% in 1Q25, compared to 33.9% in 1Q24 and 13.9% in 4Q24. While profitability declined sequentially, underlying performance continued to reflect the successful execution of the Company’s focus on loan growth. Client Net Financial Margin increased in the mid to high teens, supported by higher spreads and loan volumes, while operating efficiency improved, with expenses declining in real terms. These positive changes were more than offset by: i) a sharp reduction in Market-related Net Financial Margin, reflecting lower yields on government securities, and ii) an increase in loan loss provisions due to the expansion of the retail portfolio which entails higher provisioning and the release of LLPs in 4Q24 resulting from improved macroeconomic conditions embedded in the ECL model. Lower YoY ROAE reflects an exceptionally high base in 1Q24, which had recorded extraordinary high results on government securities..
ROAA was 0.6% in 1Q25 compared to 7.4% in 1Q24 and 2.6% in 4Q24.
Profit before income tax totaled AR$10.2 billion in 1Q25 compared to AR$112.9 billion in 1Q24 and AR$24.6 billion in 4Q24. The sequential decline was mainly explained by: i) a 46.6%, or AR$ 43.3 billion, decline in market related Net Financial Income due to lower prices of government securities, ii) a 118.0%, or AR$ 16.7 billion, increase in loan loss provisions driven by strong growth in retail lending which entails higher provisioning and a lower comparison base in 4Q24, and iii) a 5.2%, or AR$ 645.1 million, decline in brokerage fees amid increased market volatility. These effects were partially offset by: i) a 17.2%, or AR$ 18.5 billion, increase in client net financial income, ii) a 12.3%, or AR$ 17.4 billion, decline in operating expenses, iii) a 3.4%, or AR$ 1.2 billion, increase in fee income from our banking business as fees repriced above inflation, and iv) a 2.8%, or AR$ 208.0 billion, increase in revenues from the asset management business.
Revenues (net financial income + net fee income – turnover tax) totaledAR$206.9 billion in 1Q25, compared to AR$477.2 billion in 1Q24 and AR$232.9 billion in 4Q24.
Net Financial Income totaled AR$175.4 billion in 1Q25, down 62.4% YoY and 12.4% QoQ. The QoQ decline was mainly driven by a 46.6%, or AR$43.3 billion, decrease in the Market-related Net Financial Income, reflecting lower yields on government securities amid uncertainty prior to the agreement reached with the
Adjusted Net Financial Income (Net Financial Income + Result from exposure to inflation) totaled AR$133.6 billion in 1Q25, decreasing 55.6% YoY, and 17.7% QoQ.
Net Interest Margin (NIM) declined to 19.2% in 1Q25 from 24.9% in 4Q24. Margins from client lending remained resilient, with loan portfolio NIM improving to 21.2% from 20.7% in 4Q24, reflecting wider spreads, underscoring the strength of our core banking operations. In contrast, Investment Portfolio NIM dropped significantly to 17.7% from 33.6%, reflecting a sharp correction in treasury bond yields. The YoY comparison reflects the normalization of extraordinary factors that drove the unusually high 61.8% NIM in 1Q24, including gains from the sale of government securities previously recorded at amortized cost, high AR$ spreads on government securities and loans, and lower funding costs following the removal of deposit rate floors that quarter.
The total NPL ratio stood at a healthy 2.0% in 1Q25, up from 1.1% in 1Q24 and 1.3% in 4Q24. This increase reflects a normalization in credit quality following robust YoY growth of 196% and 58% (in real terms) in retail and commercial loan portfolios, respectively. The stronger expansion in the retail segment shifted the loan mix toward retail exposure, which typically carries higher NPL ratios than corporate lending. Despite this, the current NPL ratio remains below historical averages and is in line with the industry benchmark of 2% as of
Loan loss provisions (LLPs) totaled AR$31.8 billion in 1Q25, up 155.9% YoY and 80.9% QoQ. These increases reflect loan growth and a shift in the loan portfolio mix towards retail loans which entail higher provisioning than commercial loans. Retail loan volumes increased 12.8% QoQ and 196.3% YoY in real terms. The QoQ performance also reflects one-time provision releases recorded in the previous quarter, following an update to the macroeconomic variables in the expected credit loss model that incorporated a more favorable macroeconomic outlook. Net loan loss provisions, equivalent to LLPs net of recovered charged-off loans and reversed allowances, amounted to AR$30.9 billion in 1Q25, compared to AR$13.1 billion in 1Q24 and AR$14.2 billion in 4Q24. The Coverage Ratio stood at 152.7% as of
Loans to Deposits Ratio was 66.5% as of
Total Deposits amounted to AR$3,709.7 billion, increasing 109.0% YoY and 16.9% QoQ in nominal terms. Total private sector deposits reached AR$ 3,576.6 billion, increasing 112.4% YoY and 18.1% QoQ in nominal terms, outpacing the industry, which reported growth of 95.4% YoY and 5.6% QoQ. In real terms, total deposits increased 34.0% YoY and 7.7% QoQ, while private sector deposits increased 36.2% YoY and 8.8% QoQ in real terms, above industry trends. Average deposits amounted to AR$ 3,245.4 billion, increasing 19.8% YoY and 9.0% QoQ in real terms. AR$ deposits totaled AR$2,823.3 billion, increasing 86.6% YoY and 21.6% QoQ in nominal terms, compared to industry growth of 88.4% YoY and 9.2% QoQ. In real terms, AR$ deposits increased 19.7% YoY and 12.0% QoQ.
Foreign currency deposits amounted to
Total Assets increased 34.0% YoY and 9.1% QoQ, reaching AR$5,365.3 billion as of
The QoQ performance was primarily driven by a 30.2%, or AR$321.1 billion, increase in the balance of government securities, reflecting quarter-end assets and liability management. Net Loans increased by 1.9%, or AR$44.3 billion, during the same period. Average balances reflect a more moderate QoQ increase of 13.7%, or AR$154.3 billion, in government securities, while average loans increased 14.0%, AR$291.6 billion, reflecting sustained lending activity throughout the quarter.
Since 1Q24, the Company has steadily diversified its asset portfolio, sharply increasing its exposure to private-sector loans while reducing its investment portfolio. Although loan participation declined slightly at the end of 1Q25 due to a temporary increase in government securities, the overall trend reflects a strategic shift towards a more loan-centric balance sheet, expected to continue through 2025.
The leverage ratio (Assets to Shareholders’ Equity) increased 140 bps YoY to 6.0x, from 4.6x as of
Loans increased 218.4% YoY, and 11.5% QoQ in nominal terms, reaching AR$2,466.6 billion as of
Common Equity Tier 1 Ratio (CET1) was 15.3% as of
View source version on businesswire.com: https://www.businesswire.com/news/home/20250527977860/en/
Ana.Bartesaghi@supervielle.com.ar
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