Supervielle Group Announces First Quarter Results for 2025

Supervielle Group Announces First Quarter Results for 2025

Buenos Aires-based financial services group, Grupo Supervielle S.A., announced its first-quarter 2025 results today, reporting an attributable net income of AR$7.9 billion with a return on average equity (ROAE) of 3.5%. The company navigated a challenging macroeconomic environment while maintaining confidence in its core strengths to drive growth.

Following the implementation of Hyperinflation Accounting in January 2020, Supervielle has been reporting results in accordance with IFRS IAS 29.

In the CEO's commentary, Patricio Supervielle highlighted the company's progress in implementing its long-term strategy. The strategy centers around four key initiatives aimed at meeting and anticipating customer expectations.

First, Supervielle launched its innovative Remunerated Account, offering daily interest on Payroll and SME accounts in both Argentine pesos and US dollars. This move is intended to enhance the customer experience and bolster the deposit base, supporting organic growth and deepening primary banking relationships.

Second, the company rolled out Tienda Supervielle on Mercado Libre, Latin America's leading e-commerce platform. This marks a significant milestone in the Super App journey, connecting everyday commerce and banking for customers in a single digital experience.

Third, Supervielle introduced AI-powered interactions via WhatsApp, focusing on enhancing accessibility while ensuring clients can reach a human when needed. The company also emphasized its ongoing efforts to elevate the customer experience and improve efficiency.

Fourth, the bank expanded its leading online brokerage platform, IOL, offering integrated investment solutions to both clients and the bank's customer base.

Despite temporary headwinds this quarter, Supervielle remains optimistic about the underlying strength and momentum of its business. The company stayed focused on capturing opportunities as the macro conditions stabilize, despite a slowdown in industry loan demand due to external factors such as tight peso liquidity, FX volatility, and heightened devaluation expectations.

Client lending remained resilient, demonstrating the strength of core banking operations. The loan book increased by 3% sequentially and 104% year-over-year in real terms, gaining 40 basis points in market share over the past twelve months. Retail lending was the main growth driver, now accounting for 52% of total loans compared to 48% in the previous quarter and 36% a year ago. Asset quality also remains healthy, with the NPL (non-performing loan) ratio rising to 2%, reflecting credit normalization following robust YoY growth in retail lending. Importantly, delinquency remains within expected levels embedded in pricing models, while the company continues to refine origination and collection strategies to safeguard portfolio quality.

Net fee income rose by 32% in real terms year-over-year, bolstered by strong growth in banking fees, brokerage and asset management revenues, and deeper insurance penetration. The company achieved significant cost reduction on a structural level, resulting in a 12% decline in operating expenses sequentially and 17% year-over-year.

Recent measures in Argentina, such as the lifting of FX controls with IMF support, are restoreing confidence and creating conditions for long-term investment, according to Supervielle's CEO, Patricio Supervielle. The company expressed commitment to supporting this transition by providing credit and financial solutions to clients while staying close to those who produce, invest, and build. With a strong CET1 ratio of 15.3%, Supervielle is well-positioned to capitalize on the opportunities ahead, the CEO concluded.

In the first quarter of 2025, Supervielle generated AR$7.9 billion in attributable net income compared to net gains of AR$72.5 billion in Q1 2024 and AR$30.6 billion in Q4 2024. The ROAE was 3.5%, compared to 33.9% in Q1 2024 and 13.9% in Q4 2024. While profitability declined sequentially, underlying performance continued to reflect successful execution of the company's focus on loan growth. Client Net Financial Margin increased in the mid-to-high teens, supported by higher spreads and loan volumes, while operating efficiency improved with expenses declining in real terms. These positive changes were offset by a sharp reduction in market-related Net Financial Margin, reflecting lower yields on government securities, and an increase in loan loss provisions due to the expansion of the retail portfolio. Lower YoY ROAE reflects an exceptionally high base in Q1 2024, which recorded extraordinary high results on government securities.

Contact: Ana BartesaghiEmail: [email protected]

1. Despite a decline in the return on average equity (ROAE) sequentially, Supervielle's underlying performance continued to reflect successful execution of its focus on loan growth, as evidenced by a 3% sequential increase in the loan book and a 104% growth year-over-year in real terms.
2. In the cloud era, Supervielle introduced AI-powered interactions via WhatsApp, demonstrating the company's commitment to enhancing accessibility and customer experience, while ensuring clients can reach a human when needed.
3. With recent measures such as the lifting of FX controls in Argentina and IMF support, the finance industry, including banking and insurance, is expected to thrive, as Supervielle remains optimistic and is well-positioned to capitalize on the opportunities ahead, according to Patricio Supervielle, CEO of Supervielle.

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