2Q22 profitability impacted by higher loss at
IUDÚ due to increased inflation & severance charges, lower
margin from sharp drop in price of government securities in June,
and early retirement severance charges at the bank
Grupo Supervielle S.A. (NYSE: SUPV; BYMA: SUPV),
(“Supervielle” or the “Company”) a universal financial services
group headquartered in Argentina with a nationwide presence, today
reported results for the three and six-months period ended June 30,
2022.
Starting 1Q20, the Company began reporting results applying
Hyperinflation Accounting, in accordance with IFRS rule IAS 29
(“IAS 29”) as established by the Central Bank.
Management Commentary
Commenting on second quarter 2022 results, Patricio
Supervielle, Grupo Supervielle’s Chairman & CEO, noted: “We
continued to make significant advances on our key strategic
pillars, increasing customer acquisition and digital adoption,
improving asset quality, driving higher efficiencies by rightsizing
our operations while undertaking a major restructuring of the
consumer finance business and improving our funding.
We are encouraged by the progress on our customer acquisition,
digitalization and transformation agenda at our bank, with a 26%
sequential increase in total digital customers. Retail bank
customers increased 6%, with 65% of new customers onboarded
digitally. The number of mobile app customers in June 2022
increased by 60% in the period with the share of mobile
transactions also rising steadily, accounting for 20% of total
monetary transactions at the bank vs 10% in the same quarter last
year.
Our loan book stabilized during the quarter growing slightly
above inflation. A solid performance in Corporate and SMEs was
offset by a contraction in consumer finance loans, as we lowered
our risk appetite in a context of rising inflation and interest
rates. We maintained overall healthy asset quality despite the
challenging environment we are facing with NPLs improving 50 basis
points sequentially to 3.8% with coverage stable at 108%. Deposits
in turn, increased 6% sequentially with the market share of
corporate checking account deposits reaching a historical high of
nearly 2%. Total NIM, however, was negatively impacted by
regulatory increases in minimum interest rates on time deposits and
by the sharp drop in the pricing of our Argentine bond
holdings.
This is a transformational year for our Company, one in which we
are significantly rightsizing our operations effectively reducing
headcount by 18% year-to-date to drive higher efficiencies as we
execute our digitalization and transformation initiatives. Together
with inflationary pressures, this negatively impacted operating
costs.
At IUDÚ, macro assumptions have fundamentally changed since we
launched this platform. In this context, we are slowing down loan
origination, improving asset quality, and accelerating the
rightsizing of this business, while integrating IUDÚ´s customer
base to Banco Supervielle. While this is resulting in higher
non-recurring charges today, it positions us well to run a more
efficient operation.
As anticipated in our prior earnings call, in late July, we
closed the agreement to transfer our financial agent business that
serves the government of the Province of San Luis. This accounts
for approximately 2.4%, 3.1% and 4% of our total loans, deposits,
and employees, respectively. With this transaction, our business
model gains on efficiency as we are transferring 10% of our branch
network while we continue to build on the strong franchise built
over the past 25 years serving the private sector in this province
through five physical branches in the most densely populated areas
together with our innovative virtual branches.
At IOL invertironline, our fintech subsidiary, we recently
appointed a new CEO. In line with the difficult context faced by
fintechs, in addition to highly restrictive regulations in
Argentina, we are currently streamlining this business to mitigate
lower trading volumes and fees in the current economic
framework.
Looking ahead, Argentina faces significant fiscal, financial and
monetary challenges that still need to be addressed. On our end, we
remain fully focused on executing our strategy to further
strengthen our business while cautiously monitoring market
dynamics. Reflecting our sustained confidence and the conviction of
our board of directors and management team in the execution of our
strategic initiatives, in July the board approved a share
repurchase program for a total of AR$2 billion, or the lower amount
equivalent to 10% of our capital stock, through March 2023. This
initiative is supported by a liquid and well capitalized and
inflation-hedged balance sheet with a Tier 1 ratio of 13.6% at
quarter-end,” concluded Mr. Supervielle.
Second quarter 2022 Highlights
PROFITABILITY
Attributable Net loss of AR$2.0 billion in 2Q22, compared
to net losses of AR$521.5 million in 2Q21 and AR$442.9 million in
1Q22. The Bank on a stand-alone basis excluding its participation
in IUDÚ reported an Attributable net loss of AR$ 612.4 million
compared to a net gain of AR$928.4 million in 1Q22, impacted by the
sharp drop in prices of government securities held.
Excluding non-recurring severance charges, Supervielle would
have delivered net loss of AR$1.2 billion in 2Q22, with adjusted
ROAE in real terms at approximately negative 6.8%, compared to 2.9%
in previous quarter. The Bank, excluding non-recurring severance
charges, would have recorded a net loss of AR$ 159.6 million.
Net Income in the quarter remained impacted by several factors,
including: i) low credit demand from the private sector which
remains at historical lows, although 2Q22 recorded a 0.6% increase
in loans reversing the declining trend registered since September
2021, ii) further regulatory increases in minimum interest rates on
time deposits, iii) higher expenses incurred in accelerating the
Company´s strategy to capture operating efficiencies at the Bank,
and iv) a higher loss at IUDÚ due to increased inflation and
severance charges to restructure the business. Moreover, financial
margin this quarter was impacted by the sharp decline in June in
the price of government securities held by the Company and the
result from the sale of some of the government securities held as
trading portfolio.
ROAE was negative 11.2% in 2Q22 compared with negative
2.8% in 2Q21 and negative 2.5% in 1Q22.
ROAA was negative 1.6% in 2Q22 compared to negative 0.4%
in 2Q21 and 0.3% in 1Q22.
Loss before income tax of AR$2.6 billion in 2Q22 compared
to losses before income tax of AR$666.8 million in 2Q21 and
AR$511.0 million in 1Q22.
Net Financial Income of AR$18.8 billion in 2Q22
increasing 1.5% YoY but decreasing 0.4% sequentially QoQ and YoY
performance were impacted by the sharp decline in June in the price
of government securities held by the Company and the result from
the sale of some of the government securities trading portfolio.
Excluding the government securities impact on margin, which
amounted to AR$ 770 million, Net Financial Income would have
increased 3.7%.
Net Interest Margin (NIM) of 18.8%, negatively impacted
by regulatory increases in minimum interest rates on time deposits
and the decline in the pricing of our Argentine bond holdings. On
an accumulated basis, 1H22 NIM was 18.9%, up 50 bps when compared
to 1H21 NIM.
The total NPL ratio was 3.8% in 2Q22 decreasing 50-bps
from 1Q22. The improvement in NPL ratio reflects low delinquency
levels for corporate loans, loan portfolio growth at the Bank, and
write offs in the quarter mainly in the IUDÚ business segment. The
NPL portfolio declined 11.5% QoQ.
Loan loss provisions (LLP) totaled AR$2.8 billion in
2Q22, decreasing 8.7% YoY, but increasing 20.0% QoQ. On an
accumulated basis, LLP decreased 8% in 1H22 when compared to 1H21.
Net loan loss provisions, amounted to AR$2.5 billion in 2Q22
compared to AR$1.7 billion in 1Q22. The Coverage ratio was
108.3% as of June 30, 2022, 107.4% as of March 31, 2022, and 163.9%
as of June 30, 2021.
Efficiency ratio was 81.4% in 2Q22, compared to 75.1% in
2Q21 and 74.2% in 1Q22.
Total Deposits of AR$425.4 billion increasing 6.3% QoQ
and 6.7% YoY. AR$ deposits amounted to AR$ 389.3 billion, rising
7.0% QoQ and 11.5% YoY.
Loans declined 7.4% YoY but increased 0.6% QoQ in real
terms to AR$197.0 billion. The AR$ Loan portfolio amounted to
AR$180.2 billion, declining 0.7% YoY but increasing 1.5% QoQ.
Total Assets up 3.2% YoY and 3.7% QoQ, to AR$543.1
billion as of June 30, 2022.
Common Equity Tier 1 Ratio as of June 30, 2022, was 13.6%
declining 20 bps when compared to 1Q22 and 70-bps from June 30,
2021. 2Q22 Tier 1 Capital Ratio evolution reflects the growth of
loan portfolio above inflation and impact of net results.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220817005771/en/
Ana Bartesaghi ana.bartesaghi@supervielle.com.ar
Grafico Azioni Grupo Supervielle (NYSE:SUPV)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Grupo Supervielle (NYSE:SUPV)
Storico
Da Set 2023 a Set 2024