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]

Core Viewpoint - Grupo Supervielle (SUPV) is identified as a strong value stock with a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating its potential for undervaluation and strong earnings outlook [4][8]. Valuation Metrics - SUPV has a Forward P/E ratio of 9.33, which is lower than the industry average of 9.67. The stock's Forward P/E has fluctuated between 4.26 and 12.16 over the past year, with a median of 7.27 [4]. - The P/B ratio for SUPV is 1.65, compared to the industry's average P/B of 1.89. Its P/B has ranged from 0.25 to 2.09 in the past year, with a median of 0.88 [5]. - SUPV's P/S ratio stands at 0.51, significantly lower than the industry average of 1.32, indicating a potential undervaluation based on sales [6]. - The P/CF ratio for SUPV is 4, which is attractive compared to the industry's average P/CF of 15.19. This ratio has varied from 1.04 to 5.05 over the past year, with a median of 1.77 [7]. Investment Outlook - The combination of these valuation metrics suggests that Grupo Supervielle is likely undervalued at present, making it an appealing option for value investors [8].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Grupo Supervielle (SUPV) as a strong candidate for value investors due to its favorable metrics and strong earnings outlook [2][3][6] Company Analysis - Grupo Supervielle (SUPV) currently holds a Zacks Rank of 1 (Strong Buy) and an "A" grade in the Value category, indicating it is among the strongest value stocks available [3] - The company has a Price-to-Sales (P/S) ratio of 0.61, significantly lower than the industry average of 1.28, suggesting it may be undervalued [4] - SUPV's Price-to-Cash Flow (P/CF) ratio stands at 5.92, compared to the industry's average of 15.10, further indicating a solid cash outlook and potential undervaluation [5] - Over the past 52 weeks, SUPV's P/CF has fluctuated between a high of 6.64 and a low of 1.39, with a median of 2.21, showcasing its volatility and potential for value [5] Investment Metrics - Value investors typically focus on metrics such as P/S and P/CF ratios to identify undervalued stocks, and SUPV's metrics align with this strategy [4][5] - The combination of a strong Zacks Rank and favorable value metrics positions SUPV as an attractive investment opportunity for value-focused investors [3][6]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Grupo Supervielle (SUPV) Analysis - Grupo Supervielle (SUPV) has shown a price increase of 9% over the past four weeks, indicating growing investor interest [4] - The stock has gained 90.2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - SUPV has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has earned a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - SUPV is trading at a Price-to-Sales ratio of 0.62, indicating it is relatively undervalued, as investors pay only 62 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides SUPV, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]

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Investors might want to bet on Grupo Supervielle (SUPV) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual ...