1Q17 Net Income up 119% YoY and down 28% QoQ.
Sequential results primarily reflected non-recurring items in both
4Q16 and 1Q17 as well as results seasonality
BUENOS AIRES, Argentina--(BUSINESS WIRE)--
Grupo Supervielle S.A. (NYSE: SUPV; BASE: SUPV), (“Supervielle”
or the “Company”) a universal financial services group headquartered in
Argentina with a nationwide presence, today reported unaudited results
for the three months period ended March 31, 2017. All figures presented
throughout this document are expressed in nominal Argentine pesos (AR$)
and all financial information has been prepared in accordance with
Argentine Banking GAAP.
First Quarter 2017 Highlights
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Net income of AR$381.9 million, up 118.6% YoY, and down 28.3% QoQ.
ROAE of 21.8% in 1Q17. This compares with ROAE of 27.5% in 1Q16 and
31.3% in 4Q16. ROAA of 2.6% in 1Q17, compared to 2.1% in 1Q16 and 4.1%
in 4Q16.
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Total gross loans, including the securitized loan portfolio, increased
62.5% YoY and 6.0% QoQ to AR$41.2 billion. Total balance sheet loans
grew at a higher rate of 71.0% YoY and 6.6% QoQ, reflecting the
anticipated slowdown in securitization.
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NIM of 18.7% in 1Q17, contracting by 130 bps YoY and 220 bps QoQ,
while AR$ NIM on the Company’s Loan Portfolio (excluding foreign trade
and US$ loans), which concentrates 85% of the portfolio, rose 240 bps
YoY to 23.4% in 1Q17, despite the decline in the BADLAR interest rate.
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Non-performing loan ratio increased 20 bps to 2.9% in 1Q17 from 2.7%
in 1Q16 and 10 bps from 2.8% in 4Q16.
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The efficiency ratio improved to 67.5% in 1Q17 compared with 73.8% in
1Q16, but deteriorated from 64.5% in 4Q16 due to seasonality.
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Proforma Consolidated Common Equity Tier 1 Ratio of 12.0% in 1Q17
compared to 7.2% in 1Q16 and 12.3% in 4Q16. Equity to Asset ratio of
11.3% in 1Q17 compared to 7.3% in 1Q16 and 13.0% in 4Q16.
CEO Message
Commenting on first quarter results, Patricio Supervielle, Grupo
Supervielle’s Chairman and CEO, noted: "We reported solid results in
the first quarter, as we continued to execute our profitable growth
strategy. We have a healthy balance sheet and over the past year have
successfully raised equity and debt in international capital markets and
are deploying these proceeds to drive loan growth - up 62.5% YoY,
significantly above market.”
“As further evidence of progress achieved in implementing our
strategy, we more than doubled net income year-on-year. On a QoQ basis,
a one-time non-recurring item in each 4Q16 and 1Q17, along with
seasonality, impacted the comparability of results. As a reminder, our
results tend to be lower in the first quarter and accelerate towards the
second half of the year. Excluding these non-recurring items, net income
for the quarter would have fallen only 5.8% sequentially.”
“We are also making progress on our initiatives to step up digital
innovation and build out our core product leadership into integral
customer relationships. An important step was our launch of the first
SME-dedicated Check Depositing and Discounting App in Argentina,
introducing a new cash management solution during the quarter. Given the
attractiveness of this segment, we recently introduced the exclusive
“Visa Distribution Vinos” credit card as we took another step towards
developing our attractive value proposition in the dynamic winery
industry in the province of Mendoza, renewing our leadership commitment
in this province. We are also pleased with the launch of an exclusive
strategic alliance with the leading online real estate search portal in
the country to expand our reach in the mortgage segment beyond our
current client base.”
“Looking ahead, we remain cautiously optimistic of Argentina’s
economic recovery, despite slightly higher than expected inflation in
the first quarter, and maintain our guidance for 2017. We remain
vigilant on asset quality, closely monitoring our risk profile, while we
continue to drive profitable growth. We are confident in our ability to
deliver on our growth strategy as we continue to maximize opportunities
we see in our core businesses - SMEs, middle market, retail and consumer
finance while leveraging our under-utilized infrastructure.”
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Financial Highlights & Key Ratios
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(In millions of Argentine Ps.)
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% Change
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INCOME STATEMENT
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1Q17
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4Q16
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3Q16
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2Q16
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1Q16
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QoQ
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YoY
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Gross Financial Margin
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1,927.8
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1,951.6
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1,566.4
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1,304.4
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1,105.6
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-1.2%
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74.4%
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Service Fee Income, Net
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757.0
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717.5
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635.4
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555.3
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538.6
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5.5%
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40.6%
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Income from Insurance activities
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110.0
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129.9
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194.0
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164.4
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117.9
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-15.3%
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-6.7%
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Loan Loss Provisions
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-342.6
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-316.7
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-261.4
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-295.9
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-183.6
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8.2%
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86.6%
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Administrative expenses
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-1,886.1
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-1,805.8
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-1,496.3
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-1,458.7
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-1,299.6
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4.4%
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45.1%
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Income before Income Tax
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567.6
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669.3
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624.3
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278.8
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239.5
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-15.2%
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137.0%
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Net Income
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381.9
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532.3
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436.4
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167.9
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174.7
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-28.3%
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118.6%
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Earnings per Share (AR$)
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1.1
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1.5
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1.2
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0.6
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0.7
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Earnings per ADRs (AR$)
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5.3
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7.3
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6.0
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2.8
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3.5
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Outstanding Shares (in millions)
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363.8
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363.8
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363.8
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363.8
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249.0
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BALANCE SHEET
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mar 17
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dec 16
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sep 16
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jun 16
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mar 16
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QoQ
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YoY
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Total Assets
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64,519.0
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53,206.0
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44,433.7
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40,960.0
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34,672.3
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21.3%
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86.1%
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Average Assets1
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59,578.5
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51,421.4
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43,174.3
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37,881.6
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33,548.1
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15.9%
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77.6%
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Total Loans & Leasing
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39,803.7
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37,338.8
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31,751.7
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27,409.4
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23,283.0
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6.6%
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71.0%
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Securitized Loan Portfolio
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1,361.3
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1,483.9
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1,512.8
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2,040.4
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2,049.5
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-8.3%
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-33.6%
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Total Portfolio 2
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41,165.1
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38,822.7
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33,264.5
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29,449.9
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25,332.5
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6.0%
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62.5%
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Total Deposits
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38,826.8
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35,897.9
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30,417.2
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27,652.2
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24,346.7
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8.2%
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59.5%
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Shareholders’ Equity
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7,313.4
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6,931.6
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6,413.5
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5,997.0
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2,548.4
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5.5%
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187.0%
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Average Shareholders’ Equity1
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7,009.0
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6,807.9
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6,114.3
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4,302.2
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2,537.4
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3.0%
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176.2%
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KEY INDICATORS
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1Q17
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4Q16
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3Q16
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2Q16
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1Q16
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Profitability & Efficiency
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ROAE
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21.8%
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31.3%
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28.6%
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15.6%
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27.5%
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ROAA
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2.6%
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4.1%
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4.0%
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1.8%
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2.1%
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Net Interest Margin
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18.7%
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20.8%
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20.0%
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20.3%
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20.0%
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Net Financial Margin
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17.7%
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20.4%
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18.7%
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18.4%
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17.4%
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Net Fee Income Ratio
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31.0%
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30.3%
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34.6%
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35.6%
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37.3%
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Net Fee Income as a % of
Administrative Expenses
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46.0%
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46.9%
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55.4%
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49.3%
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50.5%
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Efficiency Ratio
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67.5%
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64.5%
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62.5%
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72.1%
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73.8%
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Liquidity & Capital
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Loans to Total Deposits3
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102.5%
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104.0%
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104.4%
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99.1%
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95.6%
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Liquidity Coverage Ratio (LCR)4
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126.3%
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128.0%
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104.1%
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137.3%
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118.9%
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Total Equity / Total Assets
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11.3%
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13.0%
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14.4%
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14.6%
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7.3%
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Regulatory Capital/ Risk
Weighted Assets5
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12.3%
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12.5%
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13.0%
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14.0%
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9.3%
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Proforma Consolidated Tier 1
Capital / Risk weighted assets 6
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12.0%
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12.3%
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12.6%
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13.5%
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7.2%
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Risk Weighted Assets / Total Assets
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83.0%
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92.4%
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101.2%
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98.5%
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101.4%
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Asset Quality
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NPL Ratio
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2.9%
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2.8%
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3.0%
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3.1%
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2.7%
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Allowances as a % of Total Loans
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2.5%
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2.4%
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2.5%
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2.6%
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2.3%
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Coverage Ratio
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87.0%
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87.1%
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83.7%
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83.2%
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83.9%
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Cost of Risk
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3.9%
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3.9%
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3.7%
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5.0%
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3.4%
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MACROECONOMIC RATIOS
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Retail Price Index (%)7
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7.1%
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6.2%
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2.7%
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15.5%
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11.9%
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Pesos/US$ Exchange Rate
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15.38
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15.85
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15.26
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14.92
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14.58
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Badlar Interest Rate (eop)
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19.1%
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19.9%
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22.2%
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26.6%
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30.8%
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OPERATING DATA
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Customers (in millions)
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2.2
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2.2
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2.2
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2.2
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2.1
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Access Points
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321
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325
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325
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325
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325
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Employees
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5,049
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4,982
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4,911
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4,910
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4,884
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1. Avg. total Assets and avg. shareholder´s equity calculated on a daily
basis
2. Total Portfolio: Loans and Leasing before Allowances,
Including Securitized Portfolio.
3. On Balance Sheet Loans/Total
Deposits.
4. This ratio includes the net liquidity held at the
holding company level.
5. This ratio applies only to the Bank and
CCF on a consolidated basis.
6. Includes $665 million Tier1 Capital
retained at the holding company level available for injection in
subsidiaries.
7. Source: City of Buenos Aires
8. The reduction
in the number of Access Points as of March 2017 reflects the decrease in
5 microfinance branches (following the sale of Cordial Microfinanzas)
and a new consumer finance branch opened inside a Walmart store.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170510006713/en/
Source: Grupo Supervielle S.A.