4Q16 Net Income up 48% YoY and 22% QoQ.
Results in Line with Expectations
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 and twelve-month periods ended December 31, 2016. 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.
Fourth Quarter 2016 Highlights
-
Net income of AR$532.3 million, up 47.8% YoY, and 22.0% QoQ. ROAE of
31.3% in 4Q16, which reflects recovery from the equity base having
doubled following the capital increase from the Initial Public
Offering (“IPO”). This compares with ROAE of 61.6% in 4Q15 and 28.6%
in 3Q16. ROAA of 4.1% in 4Q16, compared to 4.7% in 4Q15 and 4.0% in
3Q16.
-
Total gross loans, including the securitized loan portfolio, increased
57.6% YoY and 16.7% QoQ to AR$38.8 billion. Total balance sheet loans
grew at a higher rate of 70.8% YoY and 17.6% QoQ, reflecting the
anticipated slowdown in securitization.
-
NIM expanded 340 bps YoY to 20.9% in 4Q16, from 17.5% in 4Q15, and 37
bps from 20.5% in 3Q16.
-
Non-performing loan ratio improved 42 bps to 2.8% in 4Q16 from 3.2% in
4Q15 and 25 bps from 3.0% in 3Q16.
-
The efficiency ratio was 64.5% in 4Q16 compared with 68.2% in 4Q15 and
62.5% in 3Q16.
-
Equity to Asset ratio of 13.0% in 4Q16 compared to 7.2% in 4Q15 and
14.4% in 3Q16. Proforma Consolidated Common Equity Tier 1 Ratio of
12.3% in 4Q16 compared to 6.7% in 4Q15 and 12.6% in 3Q16 despite high
QoQ increase in loan portfolio.
CEO Message
Commenting on the results for the quarter and fiscal year, Patricio
Supervielle, Grupo Supervielle’s Chairman and CEO, noted: "I am very
pleased to report that during our first year as a public company we met
or exceeded the guidance laid out earlier in the year. We continued to
successfully execute on our profitable growth strategy, exceeding
industry loan growth for the third consecutive quarter, further reducing
high-cost funding, delivering a 22% sequential increase in net income.”
“Our loan portfolio expanded by 16.7% QoQ and 57.6% YoY, almost
doubling system growth, and posting accelerated expansion across all
segments. Corporate loans tripled market growth as we continue to
leverage our customer base and attractive offering, while Consumer
Finance loans grew 16.7% QoQ. This was achieved while remaining vigilant
around our risk profile and stabilizing asset quality. Our good
performance was supported by a resilient net interest margin and
improved efficiency in the year.
“Looking ahead, decreasing inflation and other positive economic
signs, support expectations of recovery in 2017. Our strategy is
delivering results and we are committed to continue executing upon it in
the coming year. We are particularly optimistic about the
opportunities ahead for us in our core businesses- SMEs, middle market,
retail and consumer finance. In this context, earlier this month we
successfully placed our inaugural AR peso denominated 3-year global bond
for US$300 million, further diversifying our funding sources, to drive
SMEs and individual loans with longer tenures as we continue to drive
our growth in our market segments,” concluded Mr. Supervielle.
|
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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4Q16
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3Q16
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2Q16
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1Q16
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4Q15
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QoQ
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YoY
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2016
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2015
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% Chg.
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Gross Financial Margin
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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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1,076.9
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24.6%
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81.2%
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5,928.1
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3,355.7
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76.7%
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Service Fee Income, Net
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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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614.0
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12.9%
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16.9%
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2,446.9
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2,057.2
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18.9%
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Income from Insurance activities
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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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62.0
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-33.0%
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109.5%
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606.1
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175.9
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244.5%
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Loan Loss Provisions
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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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-187.9
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21.2%
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68.6%
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-1,057.6
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-543.8
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94.5%
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Administrative expenses
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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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-1,196.2
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20.7%
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51.0%
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-6,060.3
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-4,261.4
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42.2%
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Income before Income Tax
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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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457.1
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7.2%
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46.4%
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1,811.9
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921.3
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96.7%
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Net Income
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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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360.1
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22.0%
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47.8%
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1,311.3
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674.1
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94.5%
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Earnings per Share (AR$)
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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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2.9
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21.9%
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-50%
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4.1
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4.42
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-
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Earnings per ADRs (AR$)
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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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14.6
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21.9%
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-50%
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20.50
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22.12
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-
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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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249.0
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249.0
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0.0%
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46.1%
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BALANCE SHEET
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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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dec 15
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QoQ
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YoY
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Total Assets
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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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33,045.8
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19.7%
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61.0%
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Average Assets1
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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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30,932.2
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19.1%
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66.2%
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Total Loans & Leasing
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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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21,855.9
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17.6%
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70.8%
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Securitized Loan Portfolio
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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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2,784.6
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-1.9%
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-46.7%
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Total Portfolio 2
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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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24,640.6
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16.7%
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57.6%
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Total Deposits
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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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23,716.6
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18.0%
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51.4%
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|
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Shareholders’ Equity
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6,931.55
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6,413.54
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5,997.05
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2,548.39
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2,373.7
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8.1%
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192.0%
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Average Shareholders’ Equity1
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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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2,338.3
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11.3%
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191.2%
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KEY INDICATORS
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4Q16
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3Q16
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2Q16
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1Q16
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4Q15
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2016
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2015
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Profitability & Efficiency
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ROAE
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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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61.6%
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26.3%
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32.2%
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ROAA
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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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4.7%
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3.2%
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2.5%
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Net Interest Margin
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20.9%
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20.5%
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20.4%
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20.0%
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17.5%
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20.6%
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18.1%
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Net Financial Margin
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20.6%
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19.0%
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18.5%
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17.4%
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18.4%
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19.2%
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16.4%
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Net Fee Income Ratio
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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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38.6%
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34.0%
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40.0%
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Net Fee Income as a % of Administrative Expenses
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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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56.5%
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50.4%
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52.4%
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Efficiency Ratio
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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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68.2%
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67.5%
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76.2%
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Liquidity & Capital
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Loans to Total Deposits3
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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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92.2%
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-
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-
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Liquidity Coverage Ratio (LCR)4
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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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113.1%
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Total Equity / Total Assets
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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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7.2%
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-
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-
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Regulatory Capital/ Risk Weighted Assets5
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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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8.7%
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-
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-
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Proforma Consolidated Tier 1 Capital / Risk weighted assets 6
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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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6.7%
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|
|
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-
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-
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Risk Weighted Assets / Total Assets
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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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103.8%
|
|
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Asset Quality
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NPL Ratio
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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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3.2%
|
|
|
|
|
|
-
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-
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Allowances as a % of Total Loans
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2.4%
|
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2.5%
|
|
2.6%
|
|
2.3%
|
|
2.9%
|
|
|
|
|
|
-
|
|
-
|
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|
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Coverage Ratio
|
|
87.1%
|
|
83.7%
|
|
83.2%
|
|
83.9%
|
|
89.7%
|
|
|
|
|
|
-
|
|
-
|
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|
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Cost of Risk
|
|
3.9%
|
|
3.7%
|
|
5.0%
|
|
3.4%
|
|
3.6%
|
|
|
|
|
|
4.0%
|
|
3.1%
|
|
|
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MACROECONOMIC RATIOS
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Retail Price Index (%)7
|
|
6.2%
|
|
2.7%
|
|
15.5%
|
|
11.9%
|
|
7.7%
|
|
|
|
|
|
41.0%
|
|
26.9%
|
|
|
|
Pesos/US$ Exchange Rate
|
|
15.85
|
|
15.26
|
|
14.92
|
|
14.58
|
|
13.01
|
|
|
|
|
|
-
|
|
-
|
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Badlar Interest Rate (eop)
|
|
19.9%
|
|
22.2%
|
|
26.6%
|
|
30.8%
|
|
27.3%
|
|
|
|
|
|
-
|
|
-
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OPERATING DATA
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Customers (in millions)
|
|
2.2
|
|
2.2
|
|
2.2
|
|
2.1
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
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Access Points
|
|
325
|
|
325
|
|
325
|
|
325
|
|
325
|
|
|
|
|
|
-
|
|
-
|
|
|
|
Employees
|
|
4,982
|
|
4,911
|
|
4,910
|
|
4,884
|
|
4,843
|
|
|
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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1. Avg. total Assets and avg. shareholder´s equity calculated on a
daily basis
|
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2. Total Portfolio: Loans and Leasing before Allowances, Including
Securitized Portfolio.
|
|
3. On Balance Sheet Loans/Total Deposits.
|
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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 $690 million Tier1 Capital retained at the holding
company level available for injection in subsidiaries.
|
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7. Source: City of Buenos Aires
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|
|
4Q16 Earnings Call Dial-In Information
|
Hosted by:
|
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Patricio Supervielle, Chief Executive Officer & Chairman of the
Board of Directors
|
|
|
Jorge Ramirez, Vice Chairman of the Board of Directors
|
|
|
Alejandra Naughton, Chief Financial Officer
|
|
|
Ana Bartesaghi, Treasurer & Investor Relations Officer
|
|
|
|
|
Date:
|
|
Friday, February 17, 2017
|
|
Time:
|
|
9:00 AM (US ET); 11:00 AM (Buenos Aires Time)
|
|
Dial-in Numbers:
|
|
1-877-407-0789 (U.S. and Canada), 1-201-689-8562 (International),
0-800-756-3429 (U.K), or 0800-444-6247 (Argentina)
|
|
Webcast:
|
|
http://public.viavid.com/index.php?id=122915
|
|
Replay:
|
|
From Friday, February 17, 2017 at 12:00 pm US ET through Friday,
March 3, 2017 at 11:59 pm US ET. Dial-in number: +1-844-512-2921
(U.S./Canada) or +1-412-317-6671 (international).
|
About Grupo Supervielle S.A. (NYSE: SUPV; BCBA: SUPV)
Grupo Supervielle S.A. (“Supervielle”) is a universal financial services
group located in Argentina that owns the fifth largest private
domestically-owned bank in terms of assets. Headquartered in Buenos
Aires, Supervielle offers retail and corporate banking, treasury,
consumer finance, insurance, asset management and other products and
services nationwide to a broad customer base including: individuals,
small and medium-sized enterprises and medium to large-sized companies.
With origins dating back to 1887, Supervielle operates through a
multi-brand and multi-channel platform with a strategic national
footprint. As of December 31, 2016, Supervielle had total assets of
AR$53.2 billion under Argentine Banking GAAP, 325 access points and over
2 million customers. Grupo Supervielle had 363,777,615 shares
outstanding and a free float of 46.2% as of December 31, 2016. For
information about Grupo Supervielle, visit www.gruposupervielle.com.
Safe Harbor Statement
This press release contains certain forward-looking statements that
reflect the current views and/or expectations of Grupo Supervielle and
its management with respect to its performance, business and future
events. We use words such as “believe,” “anticipate,” “plan,” “expect,”
“intend,” “target,” “estimate,” “project,” “predict,” “forecast,”
“guideline,” “seek,” “future,” “should” and other similar expressions to
identify forward-looking statements, but they are not the only way we
identify such statements. Such statements are subject to a number of
risks, uncertainties and assumptions. We caution you that a number of
important factors could cause actual results to differ materially from
the plans, objectives, expectations, estimates and intentions expressed
in this release. Actual results, performance or events may differ
materially from those in such statements due to, without limitation, (i)
changes in general economic, financial, business, political, legal,
social or other conditions in Argentina or elsewhere in Latin America or
changes in either developed or emerging markets, (ii) changes in
regional, national and international business and economic conditions,
including inflation, (iii) changes in interest rates and the cost of
deposits, which may, among other things, affect margins, (iv)
unanticipated increases in financing or other costs or the inability to
obtain additional debt or equity financing on attractive terms, which
may limit our ability to fund existing operations and to finance new
activities, (v) changes in government regulation, including tax and
banking regulations, (vi) changes in the policies of Argentine
authorities, (vii) adverse legal or regulatory disputes or proceedings,
(viii) competition in banking and financial services, (ix) changes in
the financial condition, creditworthiness or solvency of the customers,
debtors or counterparties of Grupo Supervielle, (x) increase in the
allowances for loan losses, (xi) technological changes or an inability
to implement new technologies, (xii) changes in consumer spending and
saving habits, (xiii) the ability to implement our business strategy and
(xiv) fluctuations in the exchange rate of the Peso. The matters
discussed herein may also be affected by risks and uncertainties
described from time to time in Grupo Supervielle’s filings with the U.S.
Securities and Exchange Commission (SEC) and Comision Nacional de
Valores (CNV). Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as the date of this
document. Grupo Supervielle is under no obligation and expressly
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170216006392/en/
Source: Grupo Supervielle S.A.