2Q25 Performance & Macro Environment - Loan book increased by 14% QoQ, exceeding the industry growth of 11.2%[5] - Total deposit base grew by 6% QoQ and 42% YoY, with US$ deposits reaching record levels, up 16% QoQ and 154% YoY[5] - Net Income increased to Ps 14 billion, up 62% QoQ[5] - NPL ratio stood at 2.7%[5] - CET 1 ratio was at 13.9%[5] Strategic Initiatives - Integrated Gen Al-powered interactions via the Bank's app, reaching over 150,000 interactions in July[9] - Investment transactions powered by IOL (invertironline): Over 4,700 clients placed US$ 28 million in time deposits[9] - Innovative Remunerated AR$ Savings Accounts increased by 13%, 3.5% above market, while US$ savings accounts increased by 6.2%, 10% above market[9] - SME checking accounts increased by 14% in AR$ and 43% in US$[9] Revised 2025 Perspectives - Loans are expected to grow between 40-50% in real terms[24] - Deposits are projected to increase by 20-30%[24] - NIM is expected to decline to 18-20%[24]

Core Viewpoint - Grupo Supervielle (SUPV) is currently viewed as a more attractive investment option compared to United Overseas Bank Ltd. (UOVEY) for value investors, based on various financial metrics and earnings outlook [1][3][6] Valuation Metrics - SUPV has a forward P/E ratio of 8.08, while UOVEY's forward P/E is 10.36, indicating that SUPV is potentially undervalued [5] - The PEG ratio for SUPV is 2.41, compared to UOVEY's PEG ratio of 3.15, suggesting that SUPV offers better value when considering expected earnings growth [5] - SUPV's P/B ratio stands at 1.09, whereas UOVEY has a P/B ratio of 1.29, further supporting the notion that SUPV is a more favorable investment [6] Earnings Outlook - SUPV has experienced a stronger improvement in its earnings outlook compared to UOVEY, contributing to its higher Zacks Rank of 2 (Buy) versus UOVEY's 4 (Sell) [3][6] - The solid earnings outlook for SUPV is a key factor in its superior value grade of A, while UOVEY holds a value grade of C [6]

Core Viewpoint - Grupo Supervielle (SUPV) is currently viewed as a better value opportunity compared to United Overseas Bank Ltd. (UOVEY) based on various financial metrics and earnings outlook [1]. Valuation Metrics - SUPV has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while UOVEY has a Zacks Rank of 4 (Sell) [3]. - The forward P/E ratio for SUPV is 8.64, whereas UOVEY has a forward P/E of 10.20 [5]. - SUPV's PEG ratio is 2.58, compared to UOVEY's PEG ratio of 3.10, suggesting that SUPV may offer better value relative to its expected earnings growth [5]. - SUPV has a P/B ratio of 1.16, while UOVEY's P/B ratio is 1.27, indicating that SUPV is more favorably valued in terms of market value versus book value [6]. - Based on these metrics, SUPV holds a Value grade of A, while UOVEY has a Value grade of D [6]. Earnings Outlook - SUPV is noted for its solid earnings outlook, which contributes to its superior valuation compared to UOVEY [7].

Group 1 - Supervielle is transforming by integrating its banking tradition with a growing digital model [1] - Over 50% of Supervielle's portfolio consists of consumer loans [1] - The platform IOL invertironline has surpassed 600,000 active users [1]

Core Insights - The article compares Grupo Supervielle (SUPV) and DBS Group Holdings Ltd (DBSDY) to determine which stock is more attractive for value investors [1] Valuation Metrics - SUPV has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to DBSDY, which has a Zacks Rank of 3 (Hold) [3] - SUPV's forward P/E ratio is 9.24, while DBSDY's forward P/E is 11.69, suggesting that SUPV may be undervalued relative to DBSDY [5] - The PEG ratio for SUPV is 2.76, compared to DBSDY's PEG ratio of 7.45, indicating that SUPV has a more favorable earnings growth outlook [5] - SUPV's P/B ratio is 1.24, while DBSDY's P/B ratio is 1.92, further supporting the argument that SUPV is more attractively valued [6] Value Grades - SUPV has a Value grade of A, while DBSDY has a Value grade of D, reflecting the overall better valuation metrics for SUPV [6] - Stronger estimate revision activity for SUPV suggests it is the superior option for value investors at this time [7]

[FORM 6-K Filing Information](index=1&type=section&id=FORM%206-K%20Filing%20Information) This section provides administrative details regarding Grupo Supervielle S.A.'s Form 6-K filing, including its registrant status and annual report form - Registrant is GRUPO SUPERVIELLE S.A., a foreign issuer from Buenos Aires, Republic of Argentina[1](index=1&type=chunk) - The company files annual reports under Form 20-F[2](index=2&type=chunk) - The Form 6-K is not being submitted in paper format[3](index=3&type=chunk) [Consolidated Condensed Interim Financial Statements](index=3&type=section&id=Consolidated%20Condensed%20Interim%20Financial%20Statements) This section presents the consolidated financial statements for Grupo Supervielle S.A. for the three-month period ended March 31, 2025, on a comparative basis with December 31, 2024, and March 31, 2024. It includes the statement of financial position, comprehensive income, changes in shareholders' equity, cash flows, and extensive notes detailing accounting policies, segment reporting, fair values, and other financial information [Consolidated Condensed Interim Statement of Financial Position](index=7&type=section&id=CONSOLIDATED%20CONDENSED%20INTERIM%20STATEMENT%20OF%20FINANCIAL%20POSITION) The consolidated statement of financial position shows an increase in total assets and liabilities as of March 31, 2025, compared to December 31, 2024, with a slight increase in total shareholders' equity Consolidated Condensed Interim Statement of Financial Position | Metric | 03/31/2025 (in thousands of pesos) | 12/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Total Assets** | 5,365,339,420 | 4,918,983,285 | | **Total Liabilities** | 4,464,265,027 | 4,024,704,699 | | **Total Shareholders' Equity** | 901,074,393 | 894,278,586 | - Cash and due from banks increased significantly from **708,930,118** to **857,759,093 thousands of pesos**[14](index=14&type=chunk) - Loans and other financing increased from **2,356,127,385** to **2,399,782,749 thousands of pesos**[14](index=14&type=chunk) - Deposits increased from **3,445,398,766** to **3,709,663,584 thousands of pesos**[16](index=16&type=chunk) [Consolidated Condensed Interim Statement of Comprehensive Income](index=9&type=section&id=CONSOLIDATED%20CONDENSED%20INTERIM%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) The consolidated statement of comprehensive income shows a significant decrease in net income for the three-month period ended March 31, 2025, compared to the same period in 2024, primarily driven by lower net interest income and higher loan loss provisions Consolidated Condensed Interim Statement of Comprehensive Income | Metric | 03/31/2025 (in thousands of pesos) | 03/31/2024 (in thousands of pesos) | Change (%) | | :------------------------------------------------- | :--------------------------------- | :--------------------------------- | :--------- | | **Net interest income** | 148,369,956 | 332,798,863 | -55.43% | | **Net Service Fee Income** | 53,916,376 | 40,870,968 | 31.92% | | **Net income from financial instruments (NIFFI)** | 23,162,605 | 47,709,269 | -51.45% | | **Result from exposure to changes in purchasing power of currency** | (41,871,532) | (165,130,758) | 74.69% | | **Loan loss provisions** | (31,820,392) | (12,432,915) | 155.94% | | **Operating income** | 10,184,573 | 112,892,299 | -90.97% | | **Net income for the period** | 8,552,940 | 72,536,019 | -88.20% | | **Basic Income per share** | 18.13 | 163.71 | -88.94% | - Total Other Comprehensive Loss increased from **(9,339,410)** in Q1 2024 to **(1,757,133)** in Q1 2025, indicating a reduced loss[23](index=23&type=chunk) [Consolidated Condensed Interim Statement of Changes in Shareholders´ Equity](index=12&type=section&id=CONSOLIDATED%20CONDENSED%20INTERIM%20STATEMENT%20OF%20CHANGES%20IN%20SHAREHOLDERS%C2%B4%20EQUITY) The consolidated statement of changes in shareholders' equity shows a modest increase in total equity from December 31, 2024, to March 31, 2025, despite a significant decrease in net income for the period, primarily due to changes in retained earnings and other comprehensive income Consolidated Condensed Interim Statement of Changes in Shareholders´ Equity | Metric | 03/31/2025 (in thousands of pesos) | 12/31/2024 (in thousands of pesos) | | :------------------------------------------------- | :--------------------------------- | :--------------------------------- | | **Total Shareholders´ equity attributable to parent company** | 899,279,384 | 893,096,528 | | **Total shareholders´ equity** | 901,074,393 | 894,278,586 | | **Net income for the period attributable to owners of the parent company** | 7,937,788 | 72,459,716 (for Q1 2024) | | **Other comprehensive loss for the period attributable to owners of the parent company** | (1,754,932) | (9,328,158) (for Q1 2024) | - Retained earnings increased significantly from **(242,340)** at December 31, 2024, to **135,757,867 thousands of pesos** at March 31, 2025, reflecting profit allocation and current period's net income[16](index=16&type=chunk)[26](index=26&type=chunk) [Consolidated Condensed Interim Statement of Cash Flows](index=14&type=section&id=CONSOLIDATED%20CONDENSED%20INTERIM%20STATEMENT%20OF%20CASH%20FLOWS) The consolidated statement of cash flows shows a shift from cash provided by operating activities in Q1 2024 to cash used in operating activities in Q1 2025, alongside an increase in cash provided by financing activities Consolidated Condensed Interim Statement of Cash Flows | Metric | 03/31/2025 (in thousands of pesos) | 03/31/2024 (in thousands of pesos) | | :------------------------------------------------- | :--------------------------------- | :--------------------------------- | | **Net cash (used in) / provided by operating activities** | (45,806,258) | 37,461,411 | | **Net cash used in investing activities** | (9,243,840) | (6,529,532) | | **Net cash used in financing activities** | 188,274,528 | 6,165,852 | | **Net increase in cash and cash equivalents** | 91,309,848 | (124,000,327) | | **Cash and cash equivalents at end of period** | 919,407,800 | 471,182,553 | - A significant increase in financing activities cash flow was driven by collections from unsubordinated debt securities and financing received from Argentine Financial Institutions[32](index=32&type=chunk) [Notes to the Consolidated Condensed Interim Financial Statements](index=16&type=section&id=NOTES%20TO%20THE%20CONSOLIDATED%20CONDENSED%20INTERIM%20FINANCIAL%20STATEMENTS) These notes provide detailed explanations of the accounting policies, critical estimates, segment performance, fair value measurements, and other significant financial information for the consolidated entity, essential for a comprehensive understanding of the interim financial statements [1. Accounting Standards and Basis of Preparation](index=16&type=section&id=1.%20ACCOUNTING%20STANDARDS%20AND%20BASIS%20OF%20PREPARATION) The consolidated interim financial statements are prepared in accordance with IAS 34 and the accounting framework of the Central Bank of Argentina (BCRA), which is based on IFRS, with specific exceptions for public sector debt instruments. The statements are presented in homogeneous currency, restated for inflation - Financial statements are prepared under IAS 34 and BCRA's IFRS-based framework, with exceptions for non-financial public sector debt instruments regarding IFRS 9 impairment rules[38](index=38&type=chunk) - If IFRS 9 had been fully applied to public sector debt, a net reduction in income tax of **11,164 million** (March 31, 2025) and **7,310 million** (December 31, 2024) would have been recorded in equity[38](index=38&type=chunk) - Financial statements are restated in homogeneous currency as of March 31, 2025, following BCRA Communication "A" 6651[49](index=49&type=chunk)[51](index=51&type=chunk) [2. Critical Accounting Policies and Estimates](index=22&type=section&id=2.%20CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section highlights key areas requiring significant judgment and estimates, including the fair value of financial instruments, allowances for loan losses (ECL method), impairment of non-financial assets, and income tax and deferred tax calculations - Fair value of unlisted financial instruments is determined using valuation techniques, relying on observable inputs where possible, but also estimates for factors like spot rate curves[73](index=73&type=chunk) - Allowances for loan losses are based on the IFRS 9 expected credit loss (ECL) method, incorporating macroeconomic scenarios (inflation, economic activity, private sector wage) with a high degree of uncertainty[74](index=74&type=chunk) - Impairment of non-financial assets (PPE, intangibles) involves judgment in identifying indicators and using appraisals; no impairment indications were found for fixed assets and goodwill in the presented periods[76](index=76&type=chunk)[77](index=77&type=chunk) [3. Segment Reporting](index=23&type=section&id=3.%20SEGMENT%20REPORTING) The Group identifies operating segments based on products and services offered, including Personal and Business Banking, Corporate Banking, Bank Treasury, Insurance, and Asset Management and Other Services. Performance is evaluated based on operating income - Operating segments include Personal and Business Banking, Corporate Banking, Bank Treasury, Insurance, and Asset Management and Other Services[83](index=83&type=chunk)[86](index=86&type=chunk) Segment Net Income | Segment (Net Income) | 03/31/2025 (in thousands of pesos) | 03/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Personal and Business Banking** | (27,730,728) | (43,984,206) | | **Corporate Banking** | 2,647,710 | 4,145,988 | | **Bank Treasury** | 20,778,601 | 115,928,596 | | **Insurance** | 3,313,900 | (887,850) | | **Asset Management and Other Services** | 12,647,229 | 5,623,688 | | **Total Net Income** | 8,552,940 | 72,536,019 | - Bank Treasury's net income significantly decreased from **115,928,596** in Q1 2024 to **20,778,601 thousands of pesos** in Q1 2025[87](index=87&type=chunk)[89](index=89&type=chunk) - Insurance segment shifted from a net loss of **(887,850)** in Q1 2024 to a net income of **3,313,900 thousands of pesos** in Q1 2025[87](index=87&type=chunk)[89](index=89&type=chunk) [4. Fair Values](index=26&type=section&id=4.%20FAIR%20VALUES) The Group classifies financial instruments into three fair value levels based on input observability. Level 1 uses quoted prices in active markets, Level 2 uses observable market data with valuation techniques, and Level 3 uses significant unobservable inputs - Fair value hierarchy: Level 1 (active market quoted prices), Level 2 (observable market data with valuation techniques), Level 3 (significant unobservable inputs)[91](index=91&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk) Instrument Portfolio (Assets) | Instrument Portfolio (Assets) | 03/31/2025 (FV Level 1) | 03/31/2025 (FV Level 2) | 03/31/2025 (FV Level 3) | 03/31/2025 (TOTAL) | | :------------------------------------ | :---------------------- | :---------------------- | :---------------------- | :------------------ | | Debt securities at fair value through profit or loss | 178,984,869 | 6,048,477 | - | 185,033,346 | | Derivatives | - | 3,794,044 | - | 3,794,044 | | Other financial assets | 27,859,696 | - | - | 27,859,696 | | Other debt securities | 132,054,118 | 215,203,774 | - | 347,257,892 | | Financial assets pledged as collateral | 118,387,707 | - | - | 118,387,707 | | Investments in Equity Instruments | 3,159,259 | - | 612,239 | 3,771,498 | | **Total Assets** | **460,445,649** | **225,046,295** | **612,239** | **686,104,183** | - Valuation techniques include interpolation models for instruments without market prices and Nelson Siegel models for variable interest rate instruments, relying on spot rate curves and market prices[96](index=96&type=chunk)[98](index=98&type=chunk) [5. Cash and Due From Banks](index=29&type=section&id=5.%20CASH%20AND%20DUE%20FROM%20BANKS) This note details the composition of cash and cash equivalents, including cash and due from banks, debt securities at fair value through profit or loss, and money market funds, showing an overall increase in cash and cash equivalents Cash and Due From Banks | Item | 03/31/2025 (in thousands of pesos) | 12/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Cash and due from banks** | 857,759,093 | 708,930,118 | | **Debt securities at fair value through profit or loss** | 59,674,410 | 118,735,281 | | **Money Market Funds** | 1,974,297 | 432,553 | | **Cash and cash equivalents** | 919,407,800 | 828,097,952 | - Cash and cash equivalents increased by **10.9%** from **828,097,952** at December 31, 2024, to **919,407,800 thousands of pesos** at March 31, 2025[109](index=109&type=chunk) [6. Related Party Transactions](index=30&type=section&id=6.%20RELATED%20PARTY%20TRANSACTIONS) This note outlines the Group's definition of related parties, identifies Julio Patricio Supervielle as the majority shareholder, and details the aggregate financial exposure to related parties, noting that transactions are conducted on normal business terms - Julio Patricio Supervielle is the majority shareholder with **24.60%** shareholding and **51.06%** voting power as of March 31, 2025[116](index=116&type=chunk) Related Party Financial Exposure | Metric | 03/31/2025 (in thousands of pesos) | 12/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Aggregate total financial exposure** | 7,630,198 | 5,161,033 | | **Number of beneficiary related parties** | 80 | 79 | | **Average total financial exposure** | 95,377 | 65,330 | | **Higher individual exposure** | 4,119,169 | 2,238,987 | - Related party financings were granted in the normal course of business with similar terms (interest rates, guarantees) as those for non-related parties, without greater bad debt risk[117](index=117&type=chunk)[118](index=118&type=chunk) [7. Composition of Main Items of Consolidated Statement of Financial Position and Income Statement](index=31&type=section&id=7.%20COMPOSITION%20OF%20THE%20MAIN%20ITEMS%20OF%20THE%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION%20AND%20CONSOLIDATED%20INCOME%20STATEMENT) This extensive note provides a detailed breakdown of various asset, liability, income, and expense categories within the consolidated financial statements, offering granular insights into the Group's financial structure and performance Composition of Main Items (Assets) | Item (Assets) | 03/31/2025 (in thousands of pesos) | 12/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Debt securities at fair value through profit or loss** | 185,033,346 | 285,897,439 | | **Loans and other financing** | 2,399,782,749 | 2,356,127,385 | | **Other debt securities** | 1,323,503,101 | 916,102,900 | | **Financial assets pledged as collateral** | 118,389,567 | 196,861,605 | Composition of Main Items (Liabilities) | Item (Liabilities) | 03/31/2025 (in thousands of pesos) | 12/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Deposits** | 3,709,663,584 | 3,445,398,766 | | **Financing received from BCRA and other financial institutions** | 71,719,347 | 42,665,347 | | **Unsubordinated debt securities** | 222,635,686 | 55,541,642 | Composition of Main Items (Income/Expenses) | Item (Income/Expenses) | 03/31/2025 (in thousands of pesos) | 03/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Interest income** | 299,900,263 | 757,007,247 | | **Interest expenses** | (151,530,307) | (424,208,384) | | **Service fee income** | 57,541,437 | 45,660,467 | | **Personnel expenses** | (67,962,420) | (90,181,102) | | **Administration expenses** | (41,368,018) | (43,932,611) | [8. Considerations of Results](index=34&type=section&id=8.%20CONSIDERATIONS%20OF%20RESULTS) The Ordinary Annual Shareholders' Meeting approved the allocation of profit for the year ended December 31, 2024, to legal reserve, optional reserve, and a reserve for future dividends, which was subsequently deallocated for dividend payments - Profit allocation for FY2024 approved: **6,784,359 thousand pesos** to legal reserve, **101,765,394 thousand pesos** to optional reserve, and **27,137,439 thousand pesos** to reserve for future dividends (subsequently deallocated for payment)[124](index=124&type=chunk) [9. Insurance](index=34&type=section&id=9.%20INSURANCE) This note details the assets and liabilities related to insurance contracts and the income generated from insurance activities, showing a positive insurance service result for the period Insurance Activities | Item | 03/31/2025 (in thousands of pesos) | 03/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Insurance contract assets (Net balance)** | 2,570,983 | 3,183,904 | | **Reinsurance contracts assets (Net balance)** | 321,820 | 88,077 | | **Insurance revenue from contracts measured under PAA** | 12,240,283 | 10,019,701 | | **Insurance service result – IFRS 17** | 6,511,465 | 4,948,687 | | **Income from insurance activities** | 8,459,452 | 5,763,593 | - Income from insurance activities increased by **46.7%** from **5,763,593** in Q1 2024 to **8,459,452 thousands of pesos** in Q1 2025[127](index=127&type=chunk) [10. Mutual Funds](index=35&type=section&id=10.%20MUTUAL%20FUNDS) This section provides a breakdown of the portfolio, net worth, and number of units for various mutual funds managed by Supervielle Asset Management S.A., for which Banco Supervielle S.A. acts as depository - Banco Supervielle S.A. acts as the depository for mutual funds managed by Supervielle Asset Management S.A.[128](index=128&type=chunk) Mutual Fund Portfolio | Mutual Fund (Selected) | Portfolio (03/31/2025) | Net Worth (03/31/2025) | Number of Units (03/31/2025) | | :--------------------------------- | :----------------------- | :----------------------- | :--------------------------- | | **Premier Renta C.P. Pesos** | 929,768,846 | 927,757,713 | 29,537,252,670 | | **Premier Renta Fija Ahorro** | 137,767,022 | 136,293,757 | 6,194,060,412 | | **Premier Capital** | 30,295,073 | 30,041,425 | 750,002,895 | | **Premier Performance en USD** | 68,650,681 | 67,984,879 | 45,679,738 | [11. Additional Information Required by the Central Bank](index=36&type=section&id=11.%20ADDITIONAL%20INFORMATION%20REQUIRED%20BY%20THE%20CENTRAL%20BANK) This section provides additional regulatory information, including details on the deposit insurance system, restricted assets, compliance with National Securities Commission provisions, financial trusts, negotiable debt securities, restrictions on dividend distribution, and minimum cash integration [11.1. Contribution to the Deposit Insurance System](index=36&type=section&id=11.1.%20Contribution%20to%20the%20deposit%20insurance%20system) The deposit insurance system in Argentina covers bank deposits up to a limit, which was increased to $25,000 as of April 1, 2024. Certain deposits, such as those from other financial institutions or related parties, are excluded - Deposit insurance limit increased to **$25,000** as of April 1, 2024[132](index=132&type=chunk) - Exclusions from the deposit insurance regime include deposits from other financial institutions, related parties, and those with interest rates exceeding BCRA-defined reference rates[133](index=133&type=chunk)[134](index=134&type=chunk) [11.2. Restricted Assets](index=36&type=section&id=11.2.%20Restricted%20Assets) The Group holds assets with restricted availability, primarily special guarantee accounts in the Argentine Central Bank and various guarantee deposits Restricted Assets | Detail | 03/31/2025 (in thousands of pesos) | 12/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Special guarantee accounts in the Argentine Central Bank** | 58,719,193 | 58,925,798 | | **Guarantee deposits for term operations** | 8,656,595 | 85,129,771 | | **Guarantee deposits for credit cards transactions** | 11,545,028 | 12,575,167 | | **Other guarantee deposits** | 3,892,161 | 31,012,071 | | **Total** | **82,812,977** | **187,642,807** | - Restricted assets significantly decreased from **187,642,807** at December 31, 2024, to **82,812,977 thousands of pesos** at March 31, 2025[135](index=135&type=chunk) [11.3. Compliance of Provisions Issued by the National Securities Commission](index=36&type=section&id=11.3.%20Compliance%20of%20provisions%20issued%20by%20the%20National%20Securities%20Commission) The Entity is registered as a Settlement Agent, Compensation, and Integral Negotiation Agent with the National Securities Commission (CNV) and meets the minimum equity and liquid counterpart requirements for operating as an open market agent - The Entity is registered with the CNV as a Settlement Agent, Compensation, and Integral Negotiation Agent[137](index=137&type=chunk) - Equity exceeds the minimum required for an open market agent (**$656,609 thousand** as of March 31, 2025), and the liquid counterpart requirement is met through a current account in BCRA[138](index=138&type=chunk) [11.4. Financial Trusts](index=37&type=section&id=11.4%20Financial%20Trusts) This section details the financial trusts where Grupo Supervielle's subsidiaries act as Trustee or Settler, including specific trusts like Fideicomiso de Administración Interconexión 500 KV and Financial Trust Micro Lending - Banco Supervielle S.A. acts as a trustee for the Fideicomiso de Administración Interconexión 500 KV, which is currently negotiating an extension[142](index=142&type=chunk)[145](index=145&type=chunk) - Micro Lending S.A.U. acts as settler for several financial trusts, including III and IV, with securitized amounts of **$39,779** and **$40,652** respectively[146](index=146&type=chunk) [11.5. Issue of Negotiable Debt Securities](index=38&type=section&id=11.5.%20Issue%20of%20negotiable%20debt%20securities) Banco Supervielle S.A. operates under a Global Program for the issuance of unsubordinated negotiable debt securities, which has been expanded and reduced over time. Several classes of debt (H, I, J, K, L, M) were issued with varying rates and maturities - Banco Supervielle S.A. has a Global Program for the issuance of unsubordinated negotiable debt securities, currently with a nominal value up to **US$300,000** (or equivalent)[147](index=147&type=chunk)[149](index=149&type=chunk)[159](index=159&type=chunk) - Recent issuances include Class H (variable rate, **$20,877,777 nominal**, maturity Aug 2025), Class I (fixed **4.70%**, **US$30,000 nominal**, maturity May 2025), Class J (fixed **4.18%**, **US$50,000 nominal**, maturity July 2025), Class K (fixed **4.15%**, **US$28,382 nominal**, maturity Aug 2025), Class L (variable Tamar rate, **$50,974,086 nominal**, maturity Feb 2026), and Class M (variable Tamar rate, **$30,580,000 nominal**, maturity Mar 2026)[149](index=149&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[158](index=158&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) [11.6. Restrictions Imposed on the Distribution of Dividends](index=40&type=section&id=11.6%20Restrictions%20imposed%20on%20the%20distribution%20of%20dividends) Dividend distribution is subject to BCRA regulations, including legal reserve allocations, minimum capital ratios, and a capital conservation margin. Prior BCRA authorization is required, and the company's own share purchase program imposes a restriction on unallocated earnings and free reserves - BCRA regulations require a **20%** allocation of profits to legal reserve and adherence to minimum capital ratios and a **3.5%** capital conservation margin for dividend distribution[162](index=162&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) - Prior authorization from the BCRA is required for dividend distribution[167](index=167&type=chunk) - The company's own share purchase program (costing **22,981,291 thousand pesos** for **18,991,157 shares**) restricts the distribution of unallocated earnings and free reserves by that amount[168](index=168&type=chunk)[194](index=194&type=chunk) [11.7. Accounts Unedifying Minimum Cash Integration Compliance](index=40&type=section&id=11.7.%20Accounts%20unedifying%20minimum%20cash%20integration%20compliance) The Group complied with minimum cash integration requirements as of March 31, 2025, and December 31, 2024, primarily through current and sight accounts in the Argentine Central Bank and special guarantee accounts - The Group complied with minimum cash integration requirements as of March 31, 2025, and December 31, 2024[172](index=172&type=chunk) Minimum Cash Integration | Item | 03/31/2025 (in thousands of pesos) | 12/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Current accounts in the Argentine Central Bank** | 250,000,000 | 184,567,494 | | **Sight accounts in the Argentine Central Bank** | 493,487,368 | 351,376,044 | | **Special guarantee accounts at the B.C.R.A.** | 58,719,244 | 58,925,797 | | **Total** | **802,206,612** | **594,869,335** | [12. Financial Risk Factors](index=41&type=section&id=12.%20FINANCIAL%20RISK%20FACTORS) There have been no significant changes in the Group's risk management policies compared to those reported in the December 31, 2024 financial statements - No significant changes in financial risk management policies were reported compared to December 31, 2024[173](index=173&type=chunk) [13. Turnover Tax](index=41&type=section&id=13.%20TURNOVER%20TAX) This note discusses the ongoing legal dispute regarding the unconstitutionality of turnover tax imposed by local authorities on BCRA-issued securities (Leliqs/Notaliqs and Repo transactions), which the Group has ceased paying in certain jurisdictions. A contingency provision has been constituted for potential liabilities - Local authorities (C.A.B.A., Mendoza, Buenos Aires) began taxing results from BCRA-issued securities (Leliqs/Notaliqs and Repo transactions) since January 2020, 2023, and 2024, respectively[174](index=174&type=chunk) - The BCRA and financial institutions, including the Entity, have initiated unconstitutionality actions against these taxes, arguing they affect national monetary policy and exceed provincial powers[175](index=175&type=chunk)[176](index=176&type=chunk)[177](index=177&type=chunk) - The Entity ceased paying the tax on Leliqs and Passes in C.A.B.A. since April 2023 and on Passes in PBA since January 2024, and has constituted a contingency provision of **$31,606,605** for automatic determinations from AGIP[178](index=178&type=chunk)[180](index=180&type=chunk) [14. Own Share Purchase Program](index=41&type=section&id=14.%20OWN%20SHARE%20PURCHASE%20PROGRAM) The Group implemented and subsequently terminated a program for the acquisition of its own shares, aiming to reflect the company's real value. The program involved acquiring Class B shares and ADRs within specified price and volume limits, resulting in 18,991,157 shares held in portfolio, which restricts profit distribution - The Company approved a program for the acquisition of own shares, with a maximum investment of **$8,000,000,000** or up to **10%** of share capital, and specific price limits for Class B shares and ADRs[184](index=184&type=chunk)[189](index=189&type=chunk)[192](index=192&type=chunk) - The program was terminated on July 8, 2024, with a total of **18,991,157 Class B shares** acquired, representing **4.1581%** of the share capital, at an acquisition cost of **22,981,291 thousand pesos**[193](index=193&type=chunk)[194](index=194&type=chunk) - The cost of treasury shares (**22,981,291 thousand pesos**) imposes a restriction on the distribution of unallocated earnings and free reserves[187](index=187&type=chunk)[194](index=194&type=chunk) [15. Economic Context in Which the Company Operates](index=43&type=section&id=15.%20ECONOMIC%20CONTEXT%20IN%20WHICH%20THE%20COMPANY%20OPERATES) The Group operates within a complex Argentine and international economic environment characterized by fluctuating GDP, slowing inflation, a managed exchange rate, and changes in international reserves and interest rates. The public sector achieved a primary surplus, and Argentina secured a new IMF agreement - Argentina's GDP grew **2.1%** in Q4 2024 (YoY) but declined **1.7%** for the full year 2024[195](index=195&type=chunk) - Monthly inflation slowed in early 2025 (**2.1%** in Jan, **2.4%** in Feb, **3.7%** in Mar), accumulating **8.6%** for Q1 2025, while year-on-year inflation slowed to **117.8%** (peaked at **289.4%** in April 2024)[196](index=196&type=chunk) - The exchange rate (BCRA "A" 3500) moved from **$810.70/US$** in Jan 2024 to **$1,073.87/US$** on Mar 31, 2025, with a monthly crawl of around **2%** slowing to **1%** in Feb 2025[197](index=197&type=chunk) - Central Bank international reserves decreased by **US$4.626 billion** in Q1 2025, totaling **US$24.986 billion** on March 31, 2025[198](index=198&type=chunk) - The Central Bank reduced the benchmark interest rate to **29%** in 2025, after multiple cuts in 2024[200](index=200&type=chunk) - The Non-Financial Public Sector recorded a primary surplus of **$4,357,120 million** and a positive financial result of **$1,309,389 million** in Q1 2025[202](index=202&type=chunk) - Argentina reached a new IMF agreement in April 2025, with an initial **US$12 billion** disbursement, allowing for a floating rate regime for the US dollar[205](index=205&type=chunk) Public Sector Exposure | Public Sector Exposure | 03/31/2025 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | | **Central Bank + Repo Transactions** | 197,158,950 | | **Treasury Bills** | 1,187,896,057 | | **Total debt instruments** | 1,385,055,007 | | **Loans to the Public Sector** | 4,841,198 | | **Total exposure to the public sector** | 1,389,896,205 | | **Percentage of total assets** | 26% | | **Percentage of shareholder´s equity** | 154% | [16. Subsequent Events](index=44&type=section&id=16.%20SUBSEQUENT%20EVENTS) Key events after March 31, 2025, include the approval of a Stock Purchase Option Plan for employees, the issuance of Class N and Class P negotiable bonds by Banco Supervielle S.A., and an increase in the maximum amount of its Global Program for bond issuance - A Stock Purchase Option Plan for key employees and officers was approved on May 7, 2025[208](index=208&type=chunk) - Banco Supervielle S.A. issued Class N negotiable bonds (**$48,196,837 nominal**, variable rate, maturity Nov 2025) on May 12, 2025[209](index=209&type=chunk) - Banco Supervielle S.A. increased its Global Program for bond issuance from **US$300 million** to **US$1 billion** on May 22, 2025[210](index=210&type=chunk) - Banco Supervielle S.A. issued Class P negotiable bonds (**US$59,272 nominal**, fixed **4.50%**, maturity Nov 2025) on May 26, 2025[211](index=211&type=chunk) [Schedules to Consolidated Financial Statements](index=45&type=section&id=SCHEDULES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed schedules supporting the consolidated financial statements, offering granular breakdowns of debt securities, loan classifications, concentrations, property, plant and equipment, intangible assets, deposits, financial liabilities, foreign currency assets and liabilities, and allowance for loan losses [SCHEDULE A - Debt Securities, Other Debt Securities, Equity Instruments](index=45&type=section&id=SCHEDULE%20A%20-%20DEBT%20SECURITIES%20AT%20FAIR%20VALUE%20THROUGH%20PROFIT%20OR%20LOSS%2C%20OTHER%20DEBT%20SECURITIES%2C%20EQUITY%20INSTRUMENTS) This schedule provides a detailed breakdown of the Group's debt securities (at fair value through profit or loss and other debt instruments) and equity instruments, categorized by fair value level and type (government, corporate, private bonds) Debt Securities, Other Debt Securities, Equity Instruments | Item | 03/31/2025 (Book value) | 12/31/2024 (Book value) | | :------------------------------------------------- | :---------------------- | :---------------------- | | **Total Debt securities with changes in results** | 185,033,346 | 285,897,439 | | **Total other debt securities** | 1,323,503,101 | 916,102,900 | | **Total equity instruments** | 3,771,498 | 771,633 | | **Total (all items in schedule)** | 1,512,307,945 | 1,202,771,972 | - Other debt securities significantly increased from **916,102,900** at December 31, 2024, to **1,323,503,101 thousands of pesos** at March 31, 2025[220](index=220&type=chunk) [SCHEDULE B – Classification of Loans and Other Financing Credit](index=50&type=section&id=SCHEDULE%20B%20%E2%80%93%20CLASSIFICATION%20OF%20LOANS%20AND%20OTHER%20FINANCING%20CREDIT%20ACCORDING%20TO%20STATUS%20AND%20COLLATERAL%20RECEIVED) This schedule classifies the Group's commercial, consumer, and housing loan portfolios by credit status (normal, special monitoring, with problems, high risk, uncollectible) and type of collateral received, providing insight into credit quality Classification of Loans and Other Financing Credit | Portfolio Type | 03/31/2025 (Total) | 12/31/2024 (Total) | | :--------------------------------- | :----------------- | :----------------- | | **Total Commercial Portfolio** | 983,173,460 | 1,172,964,037 | | **Total Consumer and Housing Portfolio** | 1,704,778,029 | 1,527,733,020 | | **TOTAL GENERAL** | 2,687,951,489 | 2,700,697,057 | - Commercial portfolio decreased by **16.3%** from **1,172,964,037** at December 31, 2024, to **983,173,460 thousands of pesos** at March 31, 2025[223](index=223&type=chunk) - Consumer and Housing portfolio increased by **11.6%** from **1,527,733,020** at December 31, 2024, to **1,704,778,029 thousands of pesos** at March 31, 2025[225](index=225&type=chunk) [SCHEDULE C - Concentration of Loans and Other Financing](index=52&type=section&id=SCHEDULE%20C%20-%20CONCENTRATION%20OF%20LOANS%20AND%20OTHER%20FINANCING) This schedule analyzes the concentration of loans and other financing across different customer segments, highlighting the proportion held by the largest customers versus the rest of the customer base Concentration of Loans and Other Financing | Customer Segment | 03/31/2025 (Balance) | 03/31/2025 (% over total portfolio) | 12/31/2024 (Balance) | 12/31/2024 (% over total portfolio) | | :--------------------------------- | :------------------- | :---------------------------------- | :------------------- | :---------------------------------- | | **10 largest customers** | 225,440,946 | 8.4% | 261,916,585 | 9.7% | | **50 following largest customers** | 306,199,442 | 11.4% | 414,356,373 | 15.3% | | **100 following largest customers** | 254,215,340 | 9.5% | 293,297,489 | 10.9% | | **Rest of customers** | 1,902,095,761 | 70.8% | 1,731,126,610 | 64.1% | | **TOTAL** | **2,687,951,489** | **100.0%** | **2,700,697,057** | **100.0%** | - The concentration of loans in the top 100 customers decreased from **35.9%** (**9.7%+15.3%+10.9%**) at December 31, 2024, to **29.3%** (**8.4%+11.4%+9.5%**) at March 31, 2025[227](index=227&type=chunk) [SCHEDULE D – Breakdown of Total Loans and Other Financing](index=53&type=section&id=SCHEDULE%20D%20%E2%80%93%20BREAKDOWN%20OF%20TOTAL%20LOANS%20AND%20OTHER%20FINANCING) This schedule provides a breakdown of total loans and other financing by past due status and remaining terms for maturity, categorized by non-financial public sector, financial sector, and non-financial private sector and foreign residents Breakdown of Total Loans and Other Financing | Item | Past due portfolio | 1 month | 3 months | 6 months | 12 months | 24 months | Up to 24 months | Total | | :--------------------------------- | :----------------- | :-------- | :--------- | :--------- | :---------- | :---------- | :-------------- | :---------- | | **Non-financial Public Sector** | - | 4,618,548 | 66,792 | - | 66,792 | 133,583 | 200,375 | 5,086,090 | | **Financial Sector** | - | 4,301,811 | 463,128 | 695,110 | 1,252,247 | 1,979,869 | 4,101,518 | 12,793,683 | | **Non-financial private sector and residents abroad** | 38,427,435 | 1,098,395,953 | 698,209,571 | 830,246,205 | 1,197,367,479 | 1,519,676,038 | 1,924,994,775 | 7,307,317,456 | | **TOTAL** | **38,427,435** | **1,107,316,312** | **698,739,491** | **830,941,315** | **1,198,686,518** | **1,521,789,490** | **1,929,296,668** | **7,325,197,229** | - The majority of loans and other financing (over **70%**) have remaining terms for maturity of 6 months or more[229](index=229&type=chunk) [SCHEDULE F - Property, Plant and Equipment](index=54&type=section&id=SCHEDULE%20F%20-%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) This schedule details the movements in property, plant, and equipment, and investment properties, including additions, disposals, and depreciation, for the period ended March 31, 2025 Property, Plant and Equipment | Item | Net carrying 03/31/2025 | Net carrying 12/31/2024 | | :--------------------------------- | :---------------------- | :---------------------- | | **Furniture and facilities** | 4,579,639 | 4,634,497 | | **Machinery and equipment** | 13,550,759 | 14,896,978 | | **Vehicles** | 1,917,167 | 1,987,648 | | **Right of Use Assets** | 9,576,921 | 8,606,562 | | **Construction in progress** | 12,217,647 | 13,828,582 | | **Land and Buildings** | 66,389,087 | 66,717,407 | | **Total Property, Plant and Equipment** | **108,231,220** | **110,671,674** | | **Total Investment property** | **85,300,566** | **85,371,823** | - Total Property, Plant and Equipment decreased slightly from **110,671,674** at December 31, 2024, to **108,231,220 thousands of pesos** at March 31, 2025[230](index=230&type=chunk) [SCHEDULE G - Intangible Assets](index=55&type=section&id=SCHEDULE%20G%20-%20INTANGIBLE%20ASSETS) This schedule outlines the movements in intangible assets, including goodwill, brands, and other intangible assets, for the period ended March 31, 2025, detailing additions, disposals, and depreciation Intangible Assets | Item | Net carrying 03/31/2025 | Net carrying 12/31/2024 | | :--------------------------------- | :---------------------- | :---------------------- | | **Goodwill** | 63,898,666 | 63,898,666 | | **Brands** | 4,329,444 | 4,329,444 | | **Other intangible assets** | 108,947,074 | 112,009,732 | | **TOTAL** | **177,175,184** | **180,237,842** | - Total intangible assets decreased from **180,237,842** at December 31, 2024, to **177,175,184 thousands of pesos** at March 31, 2025[232](index=232&type=chunk) [SCHEDULE H – Concentration of Deposits](index=56&type=section&id=SCHEDULE%20H%20%E2%80%93%20CONCENTRATION%20OF%20DEPOSITS) This schedule presents the concentration of deposits across different customer segments, showing the proportion of deposits held by the largest customers compared to the rest of the customer base Concentration of Deposits | Customer Segment | 03/31/2025 (Placement Balance) | 03/31/2025 (% over total portfolio) | 12/31/2024 (Placement Balance) | 12/31/2024 (% over total portfolio) | | :--------------------------------- | :----------------------------- | :---------------------------------- | :----------------------------- | :---------------------------------- | | **10 largest customers** | 1,492,990,620 | 40.2% | 1,222,203,088 | 35.5% | | **50 following largest customers** | 821,813,132 | 22.2% | 746,407,977 | 21.7% | | **100 following largest customers** | 185,911,975 | 5.0% | 189,682,399 | 5.5% | | **Rest of customers** | 1,208,947,857 | 32.6% | 1,287,105,302 | 37.4% | | **TOTAL** | **3,709,663,584** | **100.0%** | **3,445,398,766** | **100.0%** | - The concentration of deposits in the top 10 largest customers increased from **35.5%** at December 31, 2024, to **40.2%** at March 31, 2025[233](index=233&type=chunk) [SCHEDULE I – Breakdown of Financial Liabilities from Remaining Terms](index=57&type=section&id=SCHEDULE%20I%20%E2%80%93%20BREAKDOWN%20OF%20FINANCIAL%20LIABILITIES%20FROM%20REMAINING%20TERMS) This schedule provides a breakdown of financial liabilities by remaining terms for maturity, including deposits, liabilities at fair value through profit and loss, derivatives, repo transactions, other financial liabilities, financing received, and unsubordinated debt securities Breakdown of Financial Liabilities from Remaining Terms | Item | 1 month (in thousands of pesos) | 3 months (in thousands of pesos) | 6 months (in thousands of pesos) | 12 months (in thousands of pesos) | Total (in thousands of pesos) | | :--------------------------------- | :------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :---------------------------- | | **Deposits** | 3,203,999,912 | 397,725,663 | 99,646,067 | 39,342,567 | 3,740,716,983 | | **Liabilities at fair value through profit and loss** | 2,737,103 | - | - | - | 2,737,103 | | **Repo transactions** | 31,328,443 | - | - | - | 31,328,443 | | **Unsubordinated debt securities** | - | 41,781,382 | 115,811,643 | 95,778,771 | 253,371,796 | | **TOTAL** | **3,458,758,374** | **454,993,285** | **221,229,923** | **139,651,915** | **4,285,652,647** | - A significant portion of deposits (over **86%**) have a remaining term of 1 month[235](index=235&type=chunk) [SCHEDULE L - Assets and Liabilities in Foreign Currency](index=58&type=section&id=SCHEDULE%20L%20-%20ASSETS%20AND%20LIABILITIES%20IN%20FOREIGN%20CURRENCY) This schedule presents the Group's assets and liabilities denominated in foreign currency, primarily US dollars, as of March 31, 2025, and December 31, 2024, detailing the net foreign currency position Assets and Liabilities in Foreign Currency | Item | 03/31/2025 (Total in thousands of pesos) | 12/31/2024 (Total in thousands of pesos) | | :--------------------------------- | :--------------------------------------- | :--------------------------------------- | | **TOTAL ASSETS** | 1,085,312,442 | 1,036,350,197 | | **TOTAL LIABILITIES** | 1,066,650,559 | 1,017,342,892 | | **NET POSITION** | 18,661,883 | 19,007,305 | - The net foreign currency position slightly decreased from **19,007,305** at December 31, 2024, to **18,661,883 thousands of pesos** at March 31, 2025[237](index=237&type=chunk) [SCHEDULE R – Allowance for Loan Losses](index=59&type=section&id=SCHEDULE%20R%20%E2%80%93%20ALLOWANCE%20FOR%20LOAN%20LOSSES) This schedule details the movements in the allowance for loan losses, categorized by expected credit loss (ECL) stages (12 months, significant credit risk, credit impairment, purchased/produced impairment), for various loan and financing types Allowance for Loan Losses | Item | Balances at beginning of period (in thousands of pesos) | Balance at end of period (in thousands of pesos) | | :--------------------------------- | :-------------------------------------- | :----------------------------------- | | **Loans and other financing** | 53,511,126 | 75,043,613 | | **Other debt securities** | 388,924 | 552,150 | | **Eventual responsibility** | 227,909 | 235,320 | | **Unused credit card balances** | 3,525,558 | 4,038,626 | | **Checking account revocable agreements** | 321,877 | 297,339 | | **Total of Allowances** | **57,975,394** | **80,167,048** | - Total allowances for loan losses increased by **38.3%** from **57,975,394** at the beginning of the period to **80,167,048 thousands of pesos** at the end of the period[239](index=239&type=chunk) [Informative Review](index=60&type=section&id=Informative%20Review) This section provides an overview of Grupo Supervielle's business strategy, financial performance, and key ratios, along with details on its subsidiaries and the adoption of IFRS, all within the context of the prevailing economic environment [Brief Description of the Business and Evolution of Operations](index=60&type=section&id=Brief%20description%20of%20the%20business%20and%20evolution%20of%20operations) Grupo Supervielle aims to be a leader in local financial services, offering innovative and accessible products through its banking and non-banking entities. For Q1 2025, the company reported a profit of 7,937,788 thousand pesos, representing an average return on equity of 3.5%, primarily driven by investment results - Grupo Supervielle aims to be a leader in local financial services, offering innovative, inclusive, and accessible products through its diverse entities[240](index=240&type=chunk) - Net profit for Q1 2025 was **7,937,788 thousand pesos**, with an average return on equity of **3.5%**, mainly from investments in companies[241](index=241&type=chunk) - The Ordinary Annual Shareholders' Meeting approved the allocation of 2024 profits to legal reserve (**$6,784,359k**), optional reserve (**$101,765,394k**), and a reserve for future dividends (**$27,137,439k**), which was subsequently deallocated[242](index=242&type=chunk) [Brief Description of Related Companies](index=61&type=section&id=Brief%20description%20of%20Related%20Companies) Grupo Supervielle operates through various subsidiaries, including Banco Supervielle S.A., Supervielle Asset Management S.A., and InvertirOnline S.A.U., providing a wide range of financial and non-financial services. This section details the assets, liabilities, equity, and net results of these controlled entities - Grupo Supervielle operates multiple platforms and brands, providing financial and non-financial services with over **130 years** of experience in Argentina[244](index=244&type=chunk) Net Income of Related Companies | Company | Net income (03/31/2025) | Net income (12/31/2024) | | :--------------------------------- | :---------------------- | :---------------------- | | **Banco Supervielle S.A.** | (4,226,491) | 103,393,601 | | **Supervielle Asset Management S.A.** | 3,993,924 | 15,323,256 | | **Supervielle Seguros S.A.** | 6,501,600 | 4,074,867 | | **InvertirOnline S.A.U.** | 4,489,425 | 18,184,063 | | **IOL Holding S.A.** | 16,782,809 | 16,782,809 | - Banco Supervielle S.A. reported a net loss of **4,226,491 thousand pesos** for Q1 2025, a significant decline from a profit of **103,393,601 thousand pesos** in FY2024[245](index=245&type=chunk)[347](index=347&type=chunk) [Asset Structure, Results, Structure of Cash Flows and Main Ratios](index=61&type=section&id=ASSET%20STRUCTURE%2C%20RESULTS%2C%20STRUCTURE%20OF%20CASH%20FLOWS%20AND%20MAIN%20RATIOS) This section provides a comparative overview of the Group's consolidated financial position, income statement, and cash flow statement, along with key financial ratios such as liquidity, solvency, and immobilization of capital Consolidated Financial Position and Performance | Metric | 03/31/2025 (in thousands of pesos) | 12/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Total Assets** | 5,365,339,420 | 4,918,983,285 | | **Total Liabilities** | 4,464,265,027 | 4,024,704,699 | | **Shareholders' Equity** | 901,074,393 | 894,278,586 | | **Net income from interest** | 148,369,956 | 332,798,863 (03/31/2024) | | **Net income before income tax** | 10,184,573 | 112,892,299 (03/31/2024) | | **Net increase in cash and cash equivalents** | 91,309,848 | (124,000,327) (03/31/2024) | Key Financial Ratios | Ratio | 03/31/2025 | 12/31/2024 | | :--------------------------------- | :--------- | :--------- | | **Liquidity** | 24.78% | 24.03% | | **Solvency** | 20.18% | 22.22% | | **Immobilization of Capital** | 7.88% | 8.47% | - Liquidity ratio increased from **24.03%** at December 31, 2024, to **24.78%** at March 31, 2025[257](index=257&type=chunk) [Adoption of International Financial Reporting Standards (IFRS)](index=62&type=section&id=Adoption%20of%20International%20Financial%20Reporting%20Standards%20%28IFRS%29) The Group prepares its financial statements under an IFRS-based framework set by the BCRA, with specific exemptions for public sector debt instruments and the classification of dual bonds. Entities whose main assets are investments in financial or insurance companies are exempt from full IFRS submission - The BCRA's framework for financial entities is based on IFRS, with temporary exemptions for IFRS 9 impairment on non-financial public sector debt instruments and IAS 29 restatement[260](index=260&type=chunk)[263](index=263&type=chunk) - Financial statements are prepared in constant currency on a monthly basis using the National Consumer Index (INDEC) and IPIM (FACPCE) for re-expression[262](index=262&type=chunk) - Entities primarily invested in financial institutions or insurance companies are exempt from full IFRS submission and may follow BCRA/National Insurance Superintendence provisions[265](index=265&type=chunk) [Perspectives](index=63&type=section&id=Perspectives) For 2026, Grupo Supervielle plans to continue contributing to the growth and evolution of the Argentine economy through credit generation - Grupo Supervielle plans to continue contributing to the growth and evolution of the Argentine economy through credit generation in 2026[266](index=266&type=chunk) [Separate Condensed Interim Financial Statements](index=64&type=section&id=Separate%20Condensed%20Interim%20Financial%20Statements) This section presents the separate financial statements for Grupo Supervielle S.A. for the three-month period ended March 31, 2025, on a comparative basis, including the statement of financial position, comprehensive income, changes in shareholders' equity, cash flows, and detailed notes specific to the parent company [Separate Condensed Interim Statement of Financial Position](index=65&type=section&id=SEPARATE%20CONDENSED%20INTERIM%20STATEMENT%20OF%20FINANCIAL%20POSITION) The separate statement of financial position for Grupo Supervielle S.A. shows a slight increase in total assets and shareholders' equity as of March 31, 2025, compared to December 31, 2024, with investments in subsidiaries being the primary asset Separate Condensed Interim Statement of Financial Position | Metric | 03/31/2025 (in thousands of pesos) | 12/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Total Assets** | 899,897,413 | 893,741,634 | | **Total Liabilities** | 618,029 | 645,106 | | **Total Shareholders' Equity** | 899,279,384 | 893,096,528 | - Investment in subsidiaries, associates, and joint ventures constitutes the largest asset, increasing from **863,727,968** to **869,499,861 thousands of pesos**[270](index=270&type=chunk) [Separate Condensed Interim Statement of Comprehensive Income](index=66&type=section&id=SEPARATE%20CONDENSED%20INTERIM%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) The separate statement of comprehensive income for Grupo Supervielle S.A. shows a significant decrease in net income for Q1 2025 compared to Q1 2024, primarily due to lower profit from subsidiaries, associates, and joint ventures Separate Condensed Interim Statement of Comprehensive Income | Metric | 03/31/2025 (in thousands of pesos) | 03/31/2024 (in thousands of pesos) | Change (%) | | :------------------------------------------------- | :--------------------------------- | :--------------------------------- | :--------- | | **Interest income** | 506,234 | 3,989,175 | -87.32% | | **Net operating income** | 961,286 | (4,997,190) | N/A | | **Profit or loss by subsidiaries, associates, and joint ventures** | 7,585,536 | 79,638,891 | -90.48% | | **Net profit for the period** | 7,937,788 | 72,504,409 | -89.04% | | **Basic Income per share** | 18.13 | 163.81 | -88.94% | - Total Other Comprehensive Loss decreased from **(9,328,158)** in Q1 2024 to **(1,754,932)** in Q1 2025, indicating a reduced loss[273](index=273&type=chunk) [Separate Statement of Changes in Shareholders´ Equity](index=69&type=section&id=SEPARATE%20STATEMENT%20OF%20CHANGES%20IN%20SHAREHOLDERS%C2%B4%20EQUITY) The separate statement of changes in shareholders' equity shows a modest increase in total equity from December 31, 2024, to March 31, 2025, driven by net income for the period and changes in other comprehensive income Separate Statement of Changes in Shareholders´ Equity | Metric | 03/31/2025 (in thousands of pesos) | 12/31/2024 (in thousands of pesos) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | **Total shareholders´ equity** | 899,279,384 | 893,096,528 | | **Net income for the period** | 7,937,788 | 72,504,409 (for Q1 2024) | | **Other comprehensive results for the period** | (1,754,932) | (9,328,158) (for Q1 2024) | - Retained earnings increased from **135,687,191** at December 31, 2024, to **143,716,492 thousands of pesos** at March 31, 2025[275](index=275&type=chunk) [Separate Condensed Interim Statement of Cash Flow](index=71&type=section&id=SEPARATE%20CONDENSED%20INTERIM%20STATEMENT%20OF%20CASH%20FLOW) The separate statement of cash flow shows a significant decrease in cash provided by operating activities for Q1 2025 compared to Q1 2024, and a substantial reduction in cash provided by financing activities Separate Condensed Interim Statement of Cash Flow | Metric | 03/31/2025 (in thousands of pesos) | 03/31/2024 (in thousands of pesos) | | :------------------------------------------------- | :--------------------------------- | :--------------------------------- | | **Net cash provided by / (used in) operating activities** | 2,171,207 | 25,837,540 | | **Net cash used in investing activities** | (7,960) | (862,004) | | **Net cash used in financing activities** | - | 11,033,765 | | **Net increase / (decrease) in cash and cash equivalents** | 1,597,699 | 23,520,577 | | **Cash and cash equivalents at the end of the period** | 2,242,331 | 30,678,925 | - Cash provided by financing activities decreased from **11,033,765** in Q1 2024 to **0** in Q1 2025, primarily due to no dividend collections[279](index=279&type=chunk) [Notes to Separate Condensed Interim Financial Statements](index=72&type=section&id=Notes%20to%20Separate%20Condensed%20Interim%20Financial%20Statements) These notes provide specific details on the accounting standards, critical estimates, fair value measurements, investments in subsidiaries, and other financial information pertinent to Grupo Supervielle S.A. as a separate entity [1. Basis of Preparation](index=72&type=section&id=1.%20Basis%20of%20preparation) The separate interim financial statements are prepared in accordance with IAS 34 and the BCRA's IFRS-based framework, with specific exemptions for public sector debt instruments. The primary activity of Grupo Supervielle S.A. is investment in other companies, with main income from dividends and other financial assets - Grupo Supervielle S.A.'s main activity is investment in other companies, with primary income from dividends and other financial assets[281](index=281&type=chunk) - Separate financial statements are prepared under IAS 34 and BCRA's IFRS-based framework, with exceptions for non-financial public sector debt instruments regarding IFRS 9 impairment rules[284](index=284&type=chunk) - If IFRS 9 had been fully applied to public sector debt, a net reduction in income tax of **11,164 million** (March 31, 2025) and **7,310 million** (December 31, 2024) would have been recorded in assets[284](index=284&type=chunk) [2. Cash Due From Banks](index=76&type=section&id=2.%20Cash%20due%20from%20banks) This note details the composition of cash and cash equivalents fo

Financial Performance - Net income for the year reached ARS 125,181,729, an increase from ARS 111,881,135 in 2023, reflecting a growth of 11.8%[16] - Net income for the year increased to 125,278,468 thousand pesos in 2024, up from 111,970,725 thousand pesos in 2023, representing a growth of approximately 11.7%[18] - Basic and diluted earnings per share rose to 284.72 pesos in 2024, compared to 252.71 pesos in 2023, reflecting an increase of about 12.7%[20] - Total operating income for 2024 was reported at 175,601,641 thousand pesos, down from 188,729,218 thousand pesos in 2023, indicating a decrease of around 6.9%[18] - Total comprehensive income for the year was 114,136,035 thousand pesos in 2024, down from 118,881,177 thousand pesos in 2023, reflecting a decrease of about 4.0%[21] - Net income for the year ended December 31, 2024, was 175,601,642 thousand pesos, a decrease from 188,729,218 thousand pesos in 2023, representing a decline of approximately 6%[27] Assets and Liabilities - Total assets increased to ARS 4,530,739,073 as of December 31, 2024, compared to ARS 4,484,412,164 in 2023, reflecting a growth of 1.03%[14] - Total liabilities decreased slightly to ARS 3,707,043,870 from ARS 3,737,381,672, a decline of 0.8%[16] - The company’s total shareholders' equity as of December 31, 2024, was 823,695,203 thousand pesos, compared to 747,030,492 thousand pesos in 2023, an increase of approximately 10.2%[24] - The total assets before allowances as of December 31, 2024, reached 2,487,537,150 thousand pesos, compared to 1,368,611,970 thousand pesos in 2023, indicating a significant increase of about 81.9%[94] Cash Flow and Investments - Cash flow from operating activities for 2024 was 522,467,386 thousand pesos, an increase from 344,705,111 thousand pesos in 2023, indicating a growth of about 51.6%[27] - Total cash and cash equivalents at the end of 2024 reached 762,738,055 thousand pesos, up from 548,206,443 thousand pesos at the end of 2023, reflecting a growth of approximately 38.9%[29] - The net cash used in investing activities was 46,081,841 thousand pesos in 2024, compared to 37,177,376 thousand pesos in 2023, indicating an increase of about 23.8%[29] Loans and Financing - Loans and other financing rose significantly to ARS 2,170,163,585, up from ARS 1,050,205,515, marking an increase of 106.67%[14] - The company reported a loan loss provision of 52,921,817 thousand pesos in 2024, compared to 68,859,659 thousand pesos in 2023, a decrease of approximately 23.1%[18] - The total maximum exposure to credit risk amounts to 3,172,718,471 thousand pesos, with the largest components being credit cards (854,359,335 thousand pesos) and personal loans (298,411,043 thousand pesos)[86] - The total impaired loans amount to 28,990,470 thousand pesos, with allowances for loans at 17,991,574 thousand pesos and a fair value of collateral at 16,287,234 thousand pesos[91] Dividends and Shareholder Equity - The company distributed dividends amounting to 27,962,555 thousand pesos in 2024[23] - The total shareholders' equity attributable to the parent company as of December 31, 2023, was 630,019,478 thousand pesos, slightly down from 630,082,524 thousand pesos in 2022[25] Economic and Market Conditions - Inflation rates are forecasted to decrease from 236.8% in 2023 to 50.0% in 2024, indicating a significant reduction in inflation expectations[187] - The average loan interest rate is projected to decline from 57.0% in 2023 to 49.3% in 2024, suggesting easing borrowing costs[187] Credit Risk and Expected Credit Losses - The Group evaluates expected credit losses (ECL) based on a three-stage model, with Stage 1 representing 12 months ECL and Stage 2 and Stage 3 representing lifetime ECL[59] - The Group's credit risk assessment includes a matrix categorizing industries into low, medium, and high-risk ratings, with no high or very high-risk activities detected[65] - As of December 31, 2024, the reported Expected Credit Loss (ECL) allowance is 53,399,530 thousand pesos, with a gross carrying amount of 2,487,537,150 thousand pesos, resulting in a loss rate of 2.15% and a coverage ratio of 169.17%[84] Financial Instruments and Valuation - The Group's financial instruments are recognized at fair value plus transaction costs, ensuring accurate initial measurement and reporting[119] - The fair value of financial assets is determined using market quotes at the end of each fiscal year, with valuation techniques applied in the absence of an active market[134] - The Group's financial assets at fair value through profit or loss are initially recognized at fair value, with changes in fair value charged to the income statement[132] Operational Efficiency - Personnel expenses decreased to 293,324,953 thousand pesos in 2024 from 349,282,955 thousand pesos in 2023, a reduction of approximately 16.0%[18] - Other operating income fell to 39,032,512 thousand pesos in 2024, down from 51,606,604 thousand pesos in 2023, a decline of about 24.5%[18]

Market Risk Capital Requirements - The minimum market risk capital requirement for 2024 is Ps. 7,312,430 thousand, significantly higher than Ps. 1,550,904 thousand in 2023[1603] - The maximum market risk capital requirement for 2024 reached Ps. 19,078,159 thousand, compared to Ps. 6,083,336 thousand in 2023[1603] - The average market risk capital requirement for 2024 is Ps. 11,042,371 thousand, up from Ps. 3,928,460 thousand in 2023[1603] - As of December 31, 2024, the consolidated total net asset foreign currency position subject to foreign currency risk was Ps. 8,581 million, generating a market risk capital requirement of Ps. 686.5 million[1618] Interest Rate Risk Capital Requirements - The minimum interest rate risk capital requirement for 2024 is Ps. 7,461,201 thousand, an increase from Ps. 5,210,740 thousand in 2023[1612] - The maximum interest rate risk capital requirement for 2024 is Ps. 39,225,571 thousand, compared to Ps. 21,195,988 thousand in 2023[1612] - The average interest rate risk capital requirement for 2024 is Ps. 24,621,276 thousand, significantly higher than Ps. 10,617,473 thousand in 2023[1612] - The total interest-earning assets as of December 31, 2024, amount to Ps. 3,440,020,887 thousand, with a positive interest rate gap of Ps. 746,905,903 thousand[1612] - The cumulative sensitivity gap as a percentage of total interest-earning assets for the 0-1 year maturity is 29.5%[1612] Operational Risk Management - The company defines operational risk as the risk of loss from inadequate or failed internal processes, including legal risk but excluding strategic and reputational risk[1624] - The company emphasizes its pioneering role in designing operational risk management frameworks in Argentina, aligning with Central Bank requirements and international best practices[1625] - The operational risk management process includes identification, measurement, mitigation, and monitoring stages to minimize operational risk and enhance understanding of the risk profile[1626] - A Risk Control Self-Assessment model is implemented to identify operational risk across all processes and IT assets[1626] - The company evaluates operational risk by establishing risk levels and assessing the effectiveness of control mechanisms[1626] - Plans of action and strategies are applied to mitigate risks, ensuring they remain within levels set by the Board of Directors[1626] - Monitoring processes are in place to quickly detect deficiencies in operational risk management policies and ensure continuous improvement[1626] - Each branch and service center has a delegate responsible for monitoring operational risk, reporting to the Operational Risk Department[1625] - The operational risk management framework is supported by a network of risk correspondents throughout the company's branches[1625] - The company aims to maintain a comprehensive approach to operational risk management, ensuring collaboration across its entire network[1625] Risk Management Oversight - The Risk Management Committee is responsible for monitoring compliance with market risk policies every two weeks[1598]

Core Insights - Grupo Supervielle S.A. is one of Argentina's leading financial institutions, established in 1887, and has evolved into a diversified provider of banking and financial services [1] Company Overview - Grupo Supervielle S.A. operates in the financial sector of Argentina, providing a range of banking and financial services [1] Investment Focus - The mission of Grassroots Trading emphasizes objective and unbiased research, focusing on small- to mid-cap companies while also identifying opportunities in larger companies [1]

Financial Data and Key Metrics Changes - The loan book expanded by 27% quarter-over-quarter and 107% year-on-year, significantly outpacing the industry growth of 50% [5][19] - The deposit base grew 7% sequentially, with U.S. dollar deposits increasing by 178% year-over-year [6] - The net interest margin stood at 25%, with an annual return on equity (ROE) of 15.7% [7][51] Business Line Data and Key Metrics Changes - Higher margin retail loans increased to 48% of the total portfolio, up from 44% in the prior quarter and 40% a year ago [6] - Invertironline's customer base grew to 1.4 million accounts, a 57% increase year-on-year, with transaction activity rising by 67% [31] Market Data and Key Metrics Changes - The non-performing loan (NPL) ratio increased slightly to 1.3%, remaining within historical low levels [6] - The company gained 90 basis points of market share in key segments [5] Company Strategy and Development Direction - The company is focused on profitable growth, digital transformation, and expanding its loan book while strengthening its deposit base [4][12] - Strategic priorities include developing value propositions to compete with fintechs and enhancing offerings in high-growth industries like oil and gas [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, anticipating a year of economic acceleration in Argentina [17] - The company expects loan growth to exceed 60% in real terms for 2025, with retail loans projected to reach approximately 50% of total loans [43][45] Other Important Information - The company is committed to maintaining strong risk management discipline while driving balance sheet growth [15] - Invertironline is positioned to play a larger role in profitability by expanding its product offerings and integrating further into the banking ecosystem [15] Q&A Session Summary Question: Capital consumption due to loan growth and deferred tax assets - Management explained that the capital consumption was related to recognizing deferred tax assets from previous operations, and they are comfortable with a Tier 1 ratio of around 13% [55][62] Question: Competitive environment and spreads - Management noted that as inflation decreases, interest rates will also decline, which may compress spreads, but they expect to maintain good spreads on their growing loan portfolio [73][76] Question: Normalized ROE target - Management indicated a long-term ROE target closer to 20%, with a gradual increase expected as the loan portfolio expands [84] Question: Asset quality and coverage levels - Management stated that they aim to maintain coverage levels above 100% while anticipating a gradual increase in NPLs as lending activity grows [87] Question: Securities weight and loan-to-asset ratio - Management projected a decrease in the weight of securities on the balance sheet as the loan portfolio grows, with a loan-to-assets ratio expected to approach 60% [94][97]