4Q17 Net Income up 60% YoY and 36% QoQ.
Net income, excluding non-recurring items in
4Q16, increased 94% YoY
BUENOS AIRES--(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 results for the
three and twelve-month period ended December 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.
Fourth Quarter 2017 Highlights
-
Total gross loans, including the securitized loan portfolio, increased
55.7% YoY and 13.4% QoQ to AR$60.5 billion. Total balance sheet loans
advanced 58.1% YoY and 14.9% QoQ, reflecting lower loan securitization.
-
Net income of AR$851.4 million, up 60.0% YoY, and 36.4% QoQ. ROAE of
23.3% in 4Q17, as average. equity reflects the September 2017 equity
follow-on. This compares with ROAE of 31.3% in 4Q16 and 27.0% in 3Q17.
ROAA of 4.1% in 4Q17, stable YoY and increasing by 60 bps QoQ. ROAE in
4Q16 included AR$98.4 million extraordinary gain from the termination
of the Supervielle Renta Inmobiliaria Financial Trust.
-
NIM of 19.4% in 4Q17, contracted by 140 bps YoY but expanded by 90 bps
QoQ. The YoY decrease reflects the combination of the non-recurrent
gain from the termination of the Supervielle Renta Inmobiliaria
Financial Trust reflected in financial income in 4Q16, a higher mix of
both US dollar (US$) assets and liabilities and corporate segment
loans along with lower Investment Portfolio returns. Sequential growth
reflects the repricing of the loan portfolio, the benefit from the
follow-on proceeds which partially offset the increase in cost of
funds well below the 170 bps increase in the average Buenos Aires
Deposits of Large Amount (“Badlar”) and a stable currency mix of the
loan portfolio.
-
Efficiency ratio improved to 60.2% in 4Q17 compared with 64.5% in
4Q16, and 61.9% in 3Q17.
-
Non-performing loan ratio remained unchanged at 2.8% in 4Q17 from 4Q16
and 3Q17.
-
Proforma Consolidated Common Equity Tier 1 Ratio of 18.4% in 4Q17,
down from 19.5% in 3Q17 reflecting loan growth in the loan portfolio.
AR$2.6 billion from the September 2017 capital increase were injected
in Supervielle subsidiaries in 4Q17, while AR$4.3 billion remained at
the holding level for future capital injections. Equity to Asset ratio
of 16.1% in 4Q17 compared to 13.0% at December 2016 and 18.1% at
September 2017.
CEO Message
Commenting on fourth quarter and fiscal year results, Patricio
Supervielle, Grupo Supervielle's Chairman and CEO, noted: “I am very
pleased to report that once again we met or exceeded our annual guidance
targets. Our franchise continues to show its strength as we continue to
implement our profitable growth strategy, expanding net income by almost
40% sequentially in the quarter. We exceeded industry growth
particularly in deposits, growing YoY 57%, almost doubling system
growth. Our diversified and competitive retail-based deposits franchise
has proved to be one of our key competitive advantages and a key element
supporting our strategy going forward. Our loan portfolio in the quarter
expanded by 13.4% QoQ and 55.7% YoY, compared to 51.9% YoY industry
growth. Similar to past quarters, the corporate segment was the driver
of loan growth, while the retail segment continues to gain momentum
through rapid growth in mortgage loans. Our good performance was also
supported by a resilient net interest margin and improved efficiency as
we continue to further leverage our branch network.”
“While improved macro dynamics were reported across all sectors of the
economy benefitting our corporate segment, inflation remained higher
than anticipated in the fourth quarter. Persistent inflation and soft
job recovery continue to impact our consumer finance segment resulting
in higher cost of risk. However, this was fully priced in. Our view is
that this Administration will succeed in further bringing down inflation
over the next two years. This presents an opportunity to position
ourselves ahead of a stabilized macroeconomic environment and capture
market share. As always, we are closely monitoring our portfolio to
assure healthy loan growth."
“We are particularly enthusiastic with the accelerated growth in
mortgage loans experienced in the fourth quarter of 2017 and based on
our estimates in December we captured nearly 10% of the mortgages
originated by private sector banks. As we continue to expand our
customer base with focus on high-margin SMEs, this quarter we launched a
new customized value proposition focused on serving the specific needs
of transportation companies. We are very pleased with the ongoing
success of our cross-selling initiatives, particularly in non-financial
services. During the quarter we also opened two new branches in the City
of Buenos Aires, in areas with large concentration of SMEs as we deepen
our focus on this attractive segment.”
“Looking ahead, positive economic signs including GDP growth, job
creation and lower inflation support expectations of continued growth in
2018. We continue to deliver on our growth strategy, with net income
anticipated to increase between 64 - 76% during the year, driven by
sustained loan growth, improving operating efficiency, while remaining
vigilant around our risk profile,” concluded Mr. Supervielle.
Financial Highlights & Key Ratios
|
(In millions of Argentine Ps.)
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT
|
|
4Q17
|
|
3Q17
|
|
2Q17
|
|
1Q17
|
|
4Q16
|
|
QoQ
|
|
YoY
|
|
FY17
|
|
FY16
|
|
% Chg.
|
|
|
Gross Financial Margin
|
|
2,890.7
|
|
2,348.7
|
|
2,133.2
|
|
1,927.8
|
|
1,951.6
|
|
23.1%
|
|
48.1%
|
|
9,300.4
|
|
5,928.1
|
|
56.9%
|
|
|
Service Fee Income, Net
|
|
955.1
|
|
903.6
|
|
861.7
|
|
757.0
|
|
717.5
|
|
5.7%
|
|
33.1%
|
|
3,477.4
|
|
2,446.9
|
|
42.1%
|
|
|
Income from Insurance activities
|
|
148.3
|
|
108.0
|
|
112.8
|
|
110.0
|
|
129.9
|
|
37.3%
|
|
14.2%
|
|
479.1
|
|
606.1
|
|
-21.0%
|
|
|
Loan Loss Provisions
|
|
-600.3
|
|
-481.3
|
|
-396.0
|
|
-342.6
|
|
-316.7
|
|
24.7%
|
|
89.6%
|
|
-1,820.2
|
|
-1,057.6
|
|
72.1%
|
|
|
Administrative expenses
|
|
-2,405.1
|
|
-2,078.6
|
|
-2,020.8
|
|
-1,886.1
|
|
-1,805.8
|
|
15.7%
|
|
33.2%
|
|
-8,390.6
|
|
-6,060.3
|
|
38.5%
|
|
|
Income before Income Tax
|
|
1,019.9
|
|
828.6
|
|
793.4
|
|
567.6
|
|
669.3
|
|
23.1%
|
|
52.4%
|
|
3,209.5
|
|
1,811.9
|
|
77.1%
|
|
|
Net Income
|
|
851.4
|
|
624.1
|
|
579.7
|
|
381.9
|
|
532.3
|
|
36.4%
|
|
60.0%
|
|
2,437.1
|
|
1,311.3
|
|
85.9%
|
|
|
Earnings per Share (AR$)
|
|
1.86
|
|
1.61
|
|
1.59
|
|
1.05
|
|
1.46
|
|
15.7%
|
|
27.4%
|
|
6.2
|
|
4.1
|
|
51.3%
|
|
|
Earnings per ADRs (AR$)
|
|
9.32
|
|
8.06
|
|
7.97
|
|
5.25
|
|
7.32
|
|
15.7%
|
|
27.4%
|
|
31.0
|
|
20.5
|
|
51.3%
|
|
|
Average Outstanding Shares (in millions)
|
|
456.7
|
|
387.3
|
|
363.8
|
|
363.8
|
|
363.8
|
|
17.9%
|
|
25.5%
|
|
392.8
|
|
319.8
|
|
|
|
|
BALANCE SHEET
|
|
dec 17
|
|
sep 17
|
|
jun 17
|
|
mar 17
|
|
dec 16
|
|
QoQ
|
|
YoY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
93,971.3
|
|
78,957.7
|
|
67,183.2
|
|
64,519.0
|
|
53,206.0
|
|
19.0%
|
|
76.6%
|
|
|
|
|
|
|
|
|
Average Assets1
|
|
83,285.5
|
|
71,650.7
|
|
63,692.5
|
|
59,578.5
|
|
51,421.4
|
|
16.2%
|
|
62.0%
|
|
|
|
|
|
|
|
|
Total Loans & Leasing
|
|
59,032.5
|
|
51,371.0
|
|
42,345.9
|
|
39,803.7
|
|
37,338.8
|
|
14.9%
|
|
58.1%
|
|
|
|
|
|
|
|
|
Securitized Loan Portfolio
|
|
1,423.9
|
|
1,960.4
|
|
2,226.0
|
|
1,361.3
|
|
1,483.9
|
|
-27.4%
|
|
-4.0%
|
|
|
|
|
|
|
|
|
Total Portfolio 2
|
|
60,456.4
|
|
53,331.4
|
|
44,571.9
|
|
41,165.1
|
|
38,822.7
|
|
13.4%
|
|
55.7%
|
|
|
|
|
|
|
|
|
Total Deposits
|
|
56,487.0
|
|
47,181.9
|
|
42,831.6
|
|
38,826.8
|
|
35,897.9
|
|
19.7%
|
|
57.4%
|
|
|
|
|
|
|
|
|
Shareholders’ Equity
|
|
15,144.8
|
|
14,300.1
|
|
7,827.6
|
|
7,313.4
|
|
6,931.6
|
|
5.9%
|
|
118.5%
|
|
|
|
|
|
|
|
|
Average Shareholders’ Equity1
|
|
14,641.3
|
|
9,239.9
|
|
7,432.6
|
|
7,009.0
|
|
6,807.9
|
|
58.5%
|
|
115.1%
|
|
|
|
|
|
|
|
|
KEY INDICATORS
|
|
4Q17
|
|
3Q17
|
|
2Q17
|
|
1Q17
|
|
4Q16
|
|
|
|
|
|
FY17
|
|
FY16
|
|
% Chg.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability & Efficiency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROAE
|
|
23.3%
|
|
27.0%
|
|
31.2%
|
|
21.8%
|
|
31.3%
|
|
|
|
|
|
25.4%
|
|
26.3%
|
|
|
|
|
ROAA
|
|
4.1%
|
|
3.5%
|
|
3.6%
|
|
2.6%
|
|
4.1%
|
|
|
|
|
|
3.5%
|
|
3.2%
|
|
|
|
|
Net Interest Margin
|
|
19.4%
|
|
18.5%
|
|
19.8%
|
|
18.7%
|
|
20.8%
|
|
|
|
|
|
19.1%
|
|
20.6%
|
|
|
|
|
Net Financial Margin
|
|
17.5%
|
|
16.8%
|
|
17.7%
|
|
17.7%
|
|
20.4%
|
|
|
|
|
|
17.8%
|
|
19.2%
|
|
|
|
|
Net Fee Income Ratio
|
|
27.6%
|
|
30.1%
|
|
31.4%
|
|
31.0%
|
|
30.3%
|
|
|
|
|
|
29.8%
|
|
34.0%
|
|
|
|
|
Cost / Assets
|
|
11.6%
|
|
11.6%
|
|
12.7%
|
|
12.6%
|
|
14.0%
|
|
|
|
|
|
12.1%
|
|
14.6%
|
|
|
|
|
Efficiency Ratio
|
|
60.2%
|
|
61.9%
|
|
65.0%
|
|
67.5%
|
|
64.5%
|
|
|
|
|
|
63.3%
|
|
67.5%
|
|
|
|
|
Liquidity & Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans to Total Deposits3
|
|
104.5%
|
|
108.9%
|
|
98.9%
|
|
102.5%
|
|
104.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity Coverage Ratio (LCR)4
|
|
113.9%
|
|
122.6%
|
|
126.5%
|
|
125.9%
|
|
128.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity / Total Assets
|
|
16.1%
|
|
18.1%
|
|
11.7%
|
|
11.3%
|
|
13.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Proforma Consolidated Capital / Risk weighted assets 5
|
|
19.6%
|
|
20.7%
|
|
13.0%
|
|
13.4%
|
|
13.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Proforma Consolidated Tier1 Capital / Risk weighted assets 6
|
|
18.4%
|
|
19.5%
|
|
11.6%
|
|
12.0%
|
|
12.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Weighted Assets / Total Assets
|
|
80.1%
|
|
85.2%
|
|
88.2%
|
|
83.0%
|
|
92.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPL Ratio
|
|
2.8%
|
|
2.8%
|
|
2.9%
|
|
2.9%
|
|
2.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowances as a % of Total Loans
|
|
2.6%
|
|
2.5%
|
|
2.6%
|
|
2.5%
|
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Coverage Ratio
|
|
91.8%
|
|
88.9%
|
|
88.0%
|
|
87.0%
|
|
87.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Risk
|
|
4.5%
|
|
4.4%
|
|
4.2%
|
|
3.9%
|
|
3.9%
|
|
|
|
|
|
4.2%
|
|
4.0%
|
|
|
|
|
MACROECONOMIC RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Price Index (%)7
|
|
6.2%
|
|
5.1%
|
|
5.6%
|
|
7.1%
|
|
6.2%
|
|
|
|
|
|
26.1%
|
|
41.0%
|
|
|
|
|
UVA (var)
|
|
4.9%
|
|
4.3%
|
|
7.1%
|
|
4.6%
|
|
4.5%
|
|
|
|
|
|
22.5%
|
|
-
|
|
|
|
|
Pesos/US$ Exchange Rate
|
|
18.77
|
|
17.32
|
|
16.60
|
|
15.38
|
|
15.85
|
|
|
|
|
|
18.77
|
|
15.85
|
|
|
|
|
Badlar Interest Rate (eop)
|
|
23.3%
|
|
21.8%
|
|
20.1%
|
|
19.1%
|
|
19.9%
|
|
|
|
|
|
23.3%
|
|
19.9%
|
|
|
|
|
Badlar Interest Rate (avg)
|
|
22.5%
|
|
20.8%
|
|
19.6%
|
|
19.8%
|
|
21.1%
|
|
|
|
|
|
20.6%
|
|
25.8%
|
|
|
|
|
TM20 (eop)
|
|
23.7%
|
|
22.8%
|
|
20.8%
|
|
19.8%
|
|
NA
|
|
|
|
|
|
23.7%
|
|
-
|
|
|
|
|
TM20 (avg)
|
|
23.4%
|
|
21.6%
|
|
20.3%
|
|
20.3%
|
|
NA
|
|
|
|
|
|
21.4%
|
|
-
|
|
|
|
|
OPERATING DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customers (in millions)
|
|
2.4
|
|
2.3
|
|
2.3
|
|
2.2
|
|
2.2
|
|
2.5%
|
|
6.7%
|
|
|
|
|
|
|
|
|
Access Points 8
|
|
326
|
|
324
|
|
324
|
|
321
|
|
325
|
|
0.6%
|
|
0.3%
|
|
|
|
|
|
|
|
|
Employees
|
|
5,320
|
|
5,222
|
|
5,146
|
|
5,049
|
|
4,982
|
|
1.9%
|
|
6.8%
|
|
|
|
|
|
|
|
1. Average Assets and average 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 liquidity held at the holding company level.
5. Regulatory capital divided by risk weighted assets taking into
account operational and market risk. The regulatory capital ratio
applies only to the Bank and CCF on a consolidated basis and does not
include the liquidity held at the holding company level- The Proforma
consolidated capital ratio, includes the liquidity retained at Grupo
Supervielle level after the equity offering, which is available for
further capital injections in its subsidiaries. As of December 31, 2017,
the liquidity amounted to Ps. 4.3 billion.
6. Tier 1 capital divided by risk weighted assets taking into account
operational and market risk. The regulatory Tier 1 capital ratio applies
only to the Bank and CCF on a consolidated basis and does not include
the liquidity held at the holding company level. The. Proforma
Consolidated Tier 1 capital ratio includes the liquidity retained at
Grupo Supervielle level after the equity offering, which is available
for further capital injections in its subsidiaries. As of December 31,
2017, the liquidity amounted to Ps. 4.3 billion.
7. Source: City of Buenos Aires
8. The increase in the number of Access Points in 4Q17, reflects the
opening of 2 bank branches located in Chacarita (City of Buenos Aires)
and Mataderos (City of Buenos Aires). 2Q17, reflects the opening of 1
bank branch located in San Justo (Buenos Aires Province) and 2 banking
payment and collection centers.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180219005593/en/
Source: Grupo Supervielle S.A.