Grupo Supervielle S.A. reported a third‑quarter attributable net loss of AR$50.3 billion, a sharp reversal from the AR$14.4 billion net income posted in the second quarter. The loss is driven primarily by a dramatic contraction in the bank’s net interest margin, which fell to 10.8% from 20.8% in Q2, reflecting the impact of historically high real interest rates and record reserve requirements that tightened funding costs and reduced lending capacity.
The bank’s asset quality deteriorated as the non‑performing loan ratio climbed to 3.9% from 2.7% in Q2, while retail loan delinquency rose to 4.5%. Despite these headwinds, Grupo Supervielle maintained a robust capital position, with a CET1 ratio of 13.2% and a leverage ratio of 7.9x, underscoring its resilience in a volatile macro environment. The bank’s loan portfolio grew 7.9% quarter‑over‑quarter and 61.0% year‑over‑year, and deposits increased 14.9% QoQ and 39.6% YoY in real terms, indicating continued demand for credit and liquidity.
Earnings per share rose to $0.1369, beating the consensus estimate of $0.1254 by $0.0115 (9.2%). The EPS beat was largely attributable to disciplined cost management and the bank’s ability to preserve margin on higher‑margin retail and SME lending, even as overall profitability contracted. Management noted that the EPS improvement reflects the bank’s focus on operational efficiency and the early stages of its digital transformation initiatives, which are expected to generate incremental revenue streams in the coming quarters.
Chairman and CEO Patricio Supervielle emphasized that the current loss is a “temporary setback” caused by the extraordinary macro‑economic environment. He highlighted the positive momentum following the mid‑term elections, noting that interest rates are beginning to normalize, liquidity is improving, and consumer confidence is gradually returning. The bank’s strategic shift toward higher‑margin retail and SME lending, coupled with investments in AI‑driven digital platforms, positions it to capture growth once macro conditions ease.
The market reacted cautiously, with the stock falling 1.17% in pre‑market trading to close at $10.14. Investors focused on the sizable net loss and the sharp NIM compression, which signal ongoing pressure on profitability. Analysts expressed concern that the NPL ratio could rise further, potentially eroding asset quality. Nonetheless, the bank’s strong capital base and loan growth provide a foundation for a rebound as the economy stabilizes.
Grupo Supervielle’s results underscore the challenges faced by Argentine banks amid high inflation, volatile monetary policy, and stringent reserve requirements. The bank’s ability to maintain capital strength, grow its loan book, and advance digital initiatives suggests a path to recovery, but investors will closely monitor the trajectory of interest rates, reserve mandates, and asset quality in the next reporting periods.
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