Grupo Supervielle S.A. Q4 FY2025 earnings call

• Fourth quarter was a transition quarter with strong loan growth, peak cost of risk, margin recovery, and solid capital.
• Broader environment: Peak of tight monetary policy, early signs of normalization after mid-term elections. Fiscal discipline, FX reserve accumulation, and inflation expected to allow nominal rates to decline.
• Strategy: Executing on roadmap centered on profitable growth, targeted segments, and ecosystem integration. SuperVille app as financial hub. AI-powered interactions and integration with MercadoLibre. Remunerated accounts strengthening funding base. Integration between bank and oil accelerating. YOL's strategic focus on retail digital broker, opportunity in domestic capital market.

Loan growth continued to outperform the industry. Total loans grew 8% sequentially and 37% year-over-year. Grow was led by corporates, which expanded 25% quarter-over-quarter and now represent 63% of the portfolio. Retail balances declined sequentially. Asset quality reflect the peak of the stress cycle. The NPL ratio increased to 5%. Costs of risk reached the upper end of the range. Funding remained resilient despite strategic deleveraging. Total deposits declined sequentially. U.S. dollar deposits increased 42% year-over-year. Remunerated accounts continued gaining traction. Attributable net loss of Argentine's 19.5 billion, narrowing from the third quarter loss. NIEM rebounded sequentially. CT1 strengthened to 15.4%.

• Expect real growth in loans between 25% and 30% led by corporate lending. Retail credit to progressively regain momentum. Peso-denominated loans expected to grow faster than dollar loans.
• Deposits projected to expand between 20% and 25%, supported by stronger client relationships. Peso deposits expected to lead growth, tax amnesty law provides upside potential for dollar balances.
• Asset quality: NPL ratio range between 5% and 6% for the year, temporary peak in first Q26. Cost of risk projected between 6 and 6.5%. NIM expected to range between 14 and 16%.
• Net fee income expected to expand around 5% in real terms. Structural operating expenses to remain broadly stable. Project full year ROE guidance of 4% to 9% range. Anticipate ending the year with a CET1 ratio of between 11 and 13%.

Q: Brian Flores with Citibank asked about capital, its structural nature and dividend policy.

A: Capital ratio ended at ~15%, by end of 2026 CET1 ratio expected 11-13%. Extraordinary balance sheet movements neutralized, capital level set by reinvestment of profits and loan growth. No dividends expected in 2026.

Q: Pedro Leuc with Itaú asked about loan book growth outlook and ROE guidance.

A: Collection trends improved, cost of risk stabilization expected. ROE expected to move into double digits by end of 2026 and higher by late 2027/2028.

Q: Pedro with Latin Securities asked about purchase relief.

A: Tactical movements related to wholesale deposits, not expecting more for rest of year. Focus on remunerated payroll and SME accounts for stable funding.

Q: Carlos Gómez López with HBC asked about spreads and deposit/loan growth.

A: No contractions in spreads, growing more on corporate side. Focus on CASA deposits continuing to grow.

Q: Cayo Prato with UBS asked about retail credit portfolio.

A: Retail portfolio contracted sequentially, aim to grow gradually. Adjusted credit models, focus on collections and existing customers, looking for new customers with new grade models.

Q: Mattia Cataruzzi with AdCat asked about dollar lending.

A: Cautious approach, selective lending to top-tier companies with good protections if regulations change.

Q: Ernesto Gabilondo with BOFA asked about deposit requirement and monetary policy.

A: Deposit requirement reduced to 45% by end of March, no further timeline, bias towards restrictive monetary policy according to State of the Union address.