Grupo Supervielle's Q4 2024 Earnings Call: Key Contradictions on Capital, NPLs, and Exchange Rates

These are the key contradictions discussed in Grupo Supervielle's latest 2024Q4 earnings call, specifically including: Capital Levels and Loan Growth, NPL Coverage Levels, Operational Risk Changes, and Exchange Rate Impact:



Loan Book Expansion and Deposit Growth:
- In Q4 2024, Grupo Supervielle's loan book expanded by 27% quarter-over-quarter and 107% year-on-year.
- Higher margin retail loans increased to 48% of the total portfolio, up from 44% in the prior quarter and 40% a year ago.
- The deposit base grew by 7% sequentially, with U.S. dollar deposits up 178% year-over-year.
- The growth was driven by an improving macroeconomic environment and strategic focus on digital transformation and expanding loan portfolios.

Profitability and Margin Improvement:
- The net interest margin was reported at 25%, supported by annual profitability reaching ROE of 15.7%.
- The strategic focus on profitable growth and expanding the loan portfolio allowed for an increase in retail loans share, enhancing profitability.
- The shift towards higher margin retail lending and cost efficiency contributed to the strong profitability profile.

Digital Transformation and IOL Invertironline:
- Invertironline expanded its user base, with account numbers up 57% year-on-year, and average monthly active users increasing 70%.
- The digital brokerage platform saw its assets under custody reach $1.7 billion, reflecting strong adoption.
- The integration of IOL into the banking ecosystem and expansion of product offerings enhanced fee income contribution to the bank.

Capital and Risk Management:
- The CET1 ratio stood at 16.1%, positioning the bank well for future growth.
- Strategic capital allocation focused on driving balance sheet growth while maintaining risk management discipline, with a non-performing loan ratio at 1.3%.
- The bank expects loan growth to continue, potentially necessitating additional capital in the future.