Grupo Supervielle(US:SUPV)2025-09-02 20:03Financial Performance - The net income for the period was reported at 22,019,076 thousand pesos, a significant decrease from 144,080,354 thousand pesos in the previous period[14]. - Net income for the six-month period ending June 30, 2025, was 22,962,926 thousand pesos, a decrease of 77.25% compared to 100,714,844 thousand pesos for the same period in 2024[20]. - Basic and diluted earnings per share for the six-month period were 50.30 pesos, down from 227.85 pesos in the previous year, reflecting a decline of 77.94%[18]. - Total comprehensive income for the six-month period was 15,822,294 thousand pesos, down from 88,006,424 thousand pesos in the same period last year, a decline of 82.00%[20]. - Total net income for the period attributable to owners of the parent company was 22,019,076 thousand pesos, reflecting a significant loss of 56,150,921 thousand pesos in Personal and Business Banking segment[89]. Assets and Liabilities - As of June 30, 2025, total assets increased to 6,034,280,153 thousand pesos, up from 5,214,742,564 thousand pesos as of December 31, 2024, representing a growth of approximately 15.7%[12]. - Total liabilities reached 5,099,178,896 thousand pesos, up from 4,266,694,494 thousand pesos, reflecting a growth of approximately 19.4%[14]. - Deposits increased to 4,157,362,444 thousand pesos from 3,652,557,156 thousand pesos, indicating a rise of around 13.8%[14]. - Cash and cash equivalents at the end of the period reached 1,171,632,891 thousand pesos, up from 472,991,815 thousand pesos at the end of June 2024[31]. - The total financial assets as of June 30, 2025, were valued at 5,137,935,528 thousand pesos, compared to 4,202,377,359 thousand pesos as of December 31, 2024, indicating an increase of about 22.3%[108]. Income and Expenses - Net interest income for the six-month period was 348,563,897 thousand pesos, a decrease of 40.38% from 585,747,716 thousand pesos in the prior year[16]. - Interest income for the six-month period ending June 30, 2025, totaled 681,772,495, down from 1,250,456,227 for the same period in 2024, reflecting a decrease of about 45.4%[124]. - Interest expenses for the six-month period ending June 30, 2025, were 333,208,598, compared to 664,708,511 for the same period in 2024, indicating a decrease of approximately 49.9%[124]. - Service fee income increased to 115,997,415 thousand pesos for the six-month period, up 15.36% from 100,729,390 thousand pesos in 2024[16]. - Personnel expenses decreased to 147,798,293 thousand pesos, down 16.67% from 177,349,886 thousand pesos in the prior year, indicating cost control efforts[20]. Credit Risk and Provisions - Loan loss provisions for the six-month period were 78,202,209 thousand pesos, significantly higher than 29,469,962 thousand pesos in the previous year, indicating increased risk management measures[20]. - The total expected credit loss (ECL) for financial instruments is 4,101,712,553 thousand pesos, with 3,887,596,028 thousand pesos in Stage 1, 127,163,028 thousand pesos in Stage 2, and 86,953,497 thousand pesos in Stage 3[63]. - The allowances for loan losses increased from 61,461,231 thousand pesos as of December 31, 2024, to 113,902,849 thousand pesos as of June 30, 2025, reflecting significant changes in credit risk[64]. - The Group's allowances for loan losses increased to (108,567,153) as of June 30, 2025, from (56,687,378) as of December 31, 2024, representing an increase of approximately 91.7%[124]. Strategic Focus and Future Outlook - The company is focusing on expanding its financing activities and enhancing its market presence through strategic investments and partnerships[10]. - Future outlook includes continued growth in loans and deposits, with a focus on improving net income and shareholder value[10]. Regulatory and Compliance - The financial statements have been prepared in accordance with International Accounting Standard No. 34 and the accounting framework established by the Central Bank of Argentina[37]. - The Group's financial statements have been restated in constant currency as of January 1, 2020, in compliance with local regulations[48]. Shareholder Equity and Dividends - Shareholders' equity attributable to owners of the parent company decreased to 932,912,898 thousand pesos from 946,794,939 thousand pesos, a decline of about 1.5%[14]. - The company constitution of reserves amounted to 14,118,388 thousand pesos, with a distribution of dividends totaling 32,184,048 thousand pesos[27]. - The total shareholders' equity attributable to the parent company was 859,120,842 thousand pesos as of December 31, 2023[27]. Market and Economic Conditions - Cumulative inflation in Argentina reached 15.09% between January 1 and June 30, 2025, with the peso depreciating from $1,032.50/US$ to $1,194.08/US$[199]. - Argentina's GDP grew by 5.8% in the first quarter of 2025, driven by exports and private consumption[200]. - An agreement with the IMF resulted in an initial disbursement of US$12 billion, allowing the government to exit exchange rate controls[201].