Grupo Supervielle(US:SUPV)2025-03-11 17:10Financial 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]