Supervielle Group S.A.'s (SUPV) earnings call transcript for the second quarter of 2025
Grupo Supervielle S.A. Projects Optimistic Outlook for Argentina's Economic Growth
Grupo Supervielle S.A., a leading financial institution in Argentina, recently held a Q2 2025 earnings conference call, expressing optimism about the future of transactions and volumes due to decreasing inflation and stabilized foreign exchange.
The bank reported a 71% year-over-year loan growth, driven by corporate and retail credit expansion, signaling confidence in credit demand amid economic recovery. This growth was led by strong performance in commercial lending, with a 23% quarter-on-quarter increase. Retail origination was approached cautiously due to a slight deterioration in asset quality.
The company's strategic focus on sustainable credit growth, operational efficiency, and digital innovation is expected to benefit from Argentina’s gradual economic stabilization, despite ongoing risks related to nonperforming loans and economic volatility.
Operational improvements were evident in the bank's cost reduction by 13% and the maintenance of strong capital buffers and a stable net interest margin, which improved resilience. The loan-to-deposit ratio increased to nearly 72%, while leverage stood at 6.5x, providing ample capacity to continue expanding the portfolio in a disciplined, profitable way.
Digital transformation initiatives, such as the integration of AI-enabled services and e-commerce into the bank's app, have enhanced customer engagement, supporting long-term growth prospects. A notable example is the Gen AI-powered WhatsApp channel, which has been enhanced with new transactional features, turning WhatsApp into a daily banking companion. Adoption is growing rapidly.
New synergies between the bank and InvertirOnline, an online broker, are delivering solid results. In just four weeks since launch, over 4,700 InvertirOnline clients placed $28 million in dollar term deposits at the bank, with nearly 1/3 for terms over 180 days.
The bank's net income was ARS 13.6 billion in the second quarter, up 62% sequentially with ROE at 6%. This was driven by higher net financial income and lower inflation adjustment. Clients net financial income was up 10%, supported by wider spreads on higher loan volumes, while market-related net financial income benefited from gains in the treasury portfolio, growing 15% quarter-on-quarter.
The company expects the NPL ratio to range between 3% to 3.5% by the end of the year, while it is currently at 2.7%. Mariano Biglia, Chief Financial Officer, mentioned that the net loss registered in the line item for the sale of noncore properties was ARS 5 billion.
The macro environment presents some near-term headwinds, including election-related uncertainty, tight peso liquidity, and high real interest rates. However, the broader backdrop remains supportive with public government support nearly 50%, fiscal consolidation, ongoing deregulation, and inflation trending down.
Overall, Grupo Supervielle appears prepared to capitalize on a potentially improving economic landscape post-election, but its outlook carefully balances optimism with vigilance over Argentina’s economic and financial risks. The company maintains a solid capital position with a CET1 ratio of 13.9% and delivered a 6% return on equity in real terms.
[1] Grupo Supervielle S.A. (NYSE: SUPV) Earnings Release, August 14, 2025. [2] Grupo Supervielle S.A. Earnings Call Transcript, August 14, 2025. [3] Grupo Supervielle S.A. Q2 2025 Earnings Presentation, August 14, 2025.
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