Grupo Supervielle(SUPV) - 2025 Q1 - Quarterly Report

FORM 6-K Filing Information 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] - The company files annual reports under Form 20-F[2] - The Form 6-K is not being submitted in paper format[3] Consolidated Condensed Interim Financial Statements 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 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] - Loans and other financing increased from 2,356,127,385 to 2,399,782,749 thousands of pesos[14] - Deposits increased from 3,445,398,766 to 3,709,663,584 thousands of pesos[16] Consolidated Condensed Interim Statement of Comprehensive Income 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] Consolidated Condensed Interim Statement of Changes in Shareholders´ Equity 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][26] Consolidated Condensed Interim Statement of Cash Flows 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] Notes to the Consolidated Condensed Interim Financial Statements 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 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] - 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] - Financial statements are restated in homogeneous currency as of March 31, 2025, following BCRA Communication "A" 6651[49][51] 2. Critical Accounting Policies and Estimates 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] - 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] - 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][77] 3. Segment Reporting 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][86] 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][89] - 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][89] 4. Fair Values 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][92][94] 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][98] 5. Cash and Due From Banks 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] 6. Related Party Transactions 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] 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][118] 7. Composition of Main Items of Consolidated Statement of Financial Position and Income Statement 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 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] 9. Insurance 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] 10. Mutual Funds 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] 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 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 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] - 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][134] 11.2. Restricted Assets 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] 11.3. Compliance of Provisions Issued by the National Securities Commission 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] - 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] 11.4. Financial Trusts 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][145] - 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] 11.5. Issue of Negotiable Debt Securities 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][149][159] - 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][153][154][155][156][158][160][161] 11.6. Restrictions Imposed on the Distribution of Dividends 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][165][166] - Prior authorization from the BCRA is required for dividend distribution[167] - 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][194] 11.7. Accounts Unedifying Minimum Cash Integration Compliance 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] 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 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] 13. Turnover Tax 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] - 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][176][177] - 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][180] 14. Own Share Purchase Program 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][189][192] - 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][194] - The cost of treasury shares (22,981,291 thousand pesos) imposes a restriction on the distribution of unallocated earnings and free reserves[187][194] 15. Economic Context in Which the Company Operates 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] - 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] - 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] - Central Bank international reserves decreased by US$4.626 billion in Q1 2025, totaling US$24.986 billion on March 31, 2025[198] - The Central Bank reduced the benchmark interest rate to 29% in 2025, after multiple cuts in 2024[200] - 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] - 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] 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 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] - Banco Supervielle S.A. issued Class N negotiable bonds ($48,196,837 nominal, variable rate, maturity Nov 2025) on May 12, 2025[209] - Banco Supervielle S.A. increased its Global Program for bond issuance from US$300 million to US$1 billion on May 22, 2025[210] - Banco Supervielle S.A. issued Class P negotiable bonds (US$59,272 nominal, fixed 4.50%, maturity Nov 2025) on May 26, 2025[211] Schedules to Consolidated Financial Statements 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 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] SCHEDULE B – Classification of Loans and Other Financing Credit 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] - 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] SCHEDULE C - Concentration of Loans and Other Financing 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] SCHEDULE D – Breakdown of Total Loans and Other Financing 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] SCHEDULE F - Property, Plant and Equipment 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] SCHEDULE G - Intangible Assets 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] SCHEDULE H – Concentration of Deposits 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] SCHEDULE I – Breakdown of Financial Liabilities from Remaining Terms 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] SCHEDULE L - Assets and Liabilities in Foreign Currency 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] SCHEDULE R – Allowance for Loan Losses 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] Informative Review 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 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] - 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] - 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] Brief Description of Related Companies 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] 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][347] Asset Structure, Results, Structure of Cash Flows and Main Ratios 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] Adoption of International Financial Reporting Standards (IFRS) 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][263] - Financial statements are prepared in constant currency on a monthly basis using the National Consumer Index (INDEC) and IPIM (FACPCE) for re-expression[262] - Entities primarily invested in financial institutions or insurance companies are exempt from full IFRS submission and may follow BCRA/National Insurance Superintendence provisions[265] 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] Separate Condensed Interim Financial Statements 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 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] Separate Condensed Interim Statement of Comprehensive Income 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] Separate Statement of Changes in Shareholders´ Equity 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] Separate Condensed Interim Statement of Cash Flow 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] Notes to Separate Condensed Interim Financial Statements 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 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] - 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] - 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] 2. Cash Due From Banks This note details the composition of cash and cash equivalents fo