Grupo Supervielle(SUPV) - 2024 Q4 - Annual Report

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]