Grupo Supervielle(US:SUPV)2020-02-20 17:58Financial Performance Highlights - Net Financial Income increased by 45.1% QoQ, with Net Interest Margin (NIM) at 28.6%, benefiting from lower funding costs and a AR$1.1 billion gain from price improvements in Argentinian government securities[3, 49] - Comparable NIM increased by 40 bps QoQ to 24.5%[3, 49] - Return on Average Equity (ROAE) increased to 28.4% from 6.2% in 3Q19 and 17.1% in 4Q18, with pre-tax profit at AR$1.0 billion[3] - The efficiency ratio was 71.3%, which included AR$785 million in non-recurring personnel expenses; the comparable efficiency ratio improved to 61.8%[4] Asset Quality and Loan Portfolio - Cost of Risk (CoR) improved by 320 bps sequentially to 6.4%, with Loan Loss Provisions (LLPs) down 31.8% QoQ[3, 60] - Non-Performing Loans (NPLs) increased by 50 bps QoQ to 7.4%, impacted by a delinquent commercial loan that was 100% collateralized[3, 60] - Coverage ratio was 83.0% in 4Q19, converging to the level of provisioning and coverage set by IFRS9[3, 60] - Total loans increased by 5% QoQ, driven by a 14% increase in AR$ loans, partially offset by a 19% decline in US$ loans in original currency[36] Funding and Capitalization - The loan to deposit ratio was 107.6% in AR$ and 92.1% in US$, resulting in a blended ratio of 103.5%, up from 85.8% as of September 30, 2019[4] - Core retail and corporate peso deposits increased by 8.7% QoQ, while total deposits decreased by 12.8% sequentially due to a decision to deleverage the balance sheet by reducing institutional funding[4, 39] - Total assets decreased by 8% QoQ to AR$146.5 billion as the bank reduced holdings in Central Bank securities[5] - Common Equity Tier 1 Ratio (Consolidated Proforma) was 11.4% in 4Q19, 40 bps below 3Q19, but would have reached 12.1% if adjusted for inflation as per rule IFRS29[5]