Grupo Supervielle S.A. Reports 4Q18 Consolidated Results
4Q18 Attributable Comprehensive Income up 98%
YoY and 7% QoQ while Net Income rose 51% YoY and decreased 19% QoQ
reflecting mainly the decision to achieve 100% NPL Coverage goal one
year earlier than target
BUENOS AIRES, Argentina–(BUSINESS WIRE)–Grupo Supervielle S.A. (NYSE: SUPV) (BYMA: 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 periods ended December 31, 2018. All figures
presented throughout this document are expressed in nominal Argentine
pesos (AR$) and all financial information has been prepared in
accordance with IFRS in compliance with the adoption ruled by the
Argentine Central Bank.
Fourth Quarter 2018 Highlights
-
Attributable Comprehensive Income of AR$935.3 million, up 97.9% YoY
and 7.0% QoQ. ROAE of 22.6% in 4Q18 above 13.3% in 4Q17 and 22.4% in
3Q18. ROAA of 2.6% in 4Q18, up 40 bps YoY and down 10 bps QoQ. -
Attributable Net income of AR$706.8 million, up 51.2% YoY and down
18.5% QoQ. In 4Q18, AR$231 million (AR$ 162 million after tax)
additional voluntary loan loss provisions (LLP) were made to increase
the Coverage Ratio to 100.0% from 94.0% in 3Q18. Excluding the
additional voluntary LLP, Attributable Net Income in 4Q18 would have
been AR$ 868.5 million, flat QoQ. -
Net Financial Income of AR$5.3 billion up 56.5% YoY and 19.9 % QoQ
reflecting increases in average volumes of assets and deposits,
together with higher average interest rates, partly mitigating the
higher cost of funding and higher volumes of non-remunerated minimum
reserve requirements. -
Net financial margin (NFM) of 20.3% expanded by 30 bps YoY and 210 bps
QoQ. Net interest margin (NIM) was 18.5%, down 150 bps YoY and 240 bps
QoQ. NFM expansion combines higher yields from the Loan Portfolio as
it continued to reprice and from higher Central Bank notes’ rates in
the AR$ Investment portfolio. This was partially offset by higher cost
of funds. -
Efficiency ratio improved to 61.9% in 4Q18 from 68.2% in 4Q17 and
weakened from 59.3% in 3Q18. QoQ performance reflects consecutive
salary increases throughout 4Q18 for a total increase of 19.6% while
operating revenues were up 14.6%. -
Loans to deposits ratio was 84.5% in 4Q18 compared to 107.6% in 4Q17,
and 85.8% in 3Q18. -
Deposits increased 68.2% YoY and decreased 2.3% QoQ to AR$94.9
billion. The QoQ decrease took place towards the close of the quarter
due to excess liquidity management by the Company’s treasury. Average
deposit volumes increased 90.4% YoY and 15.4% QoQ. AR$ deposits rose
50.2% YoY and decreased 2.1% QoQ, while foreign currency deposits
(measured in U$S) increased 10.4% YoY and 5.0% QoQ. -
Loans rose 32.1% YoY and decreased 3.8% QoQ to AR$80.2 billion. AR$
Loan portfolio up 22.0% YoY and 1.1% QoQ. Foreign currency loans
decreased 14.7% YoY and 8.4% QoQ, but measured in local currency rose
71.7% YoY and decreased 15.4% QoQ. -
Total assets increased 53.0% YoY to AR$ 141.1 billion outpacing loan
growth, mainly due to larger holdings of Central Bank securities
(Leliqs) coupled with higher levels of regulatory minimum reserve
requirements. QoQ, total assets decreased 3.4% due to excess liquidity
management as mentioned above, although average assets in the quarter
were up 11.6% QoQ. -
NPL increased by 100 bps YoY and 40 bps QoQ to 4.1% in 4Q18, due to a
combination of lower loan portfolio origination and a deterioration in
asset quality following the current recession in Argentina in 3Q18 and
4Q18 and the increase in inflation which impacted consumers disposable
income. -
NPL Coverage ratio reached 100%, one year in advance of our original
goal, up 1,200bps YoY and 600 bps QoQ. -
Cost of risk was 7.0% in 4Q18. Excluding the additional AR$ 231
million voluntary loan loss provisions made to increase coverage to
100% in 4Q18, cost of risk would have remained unchanged from 5.9% in
3Q18. -
Proforma Consolidated Common Equity Tier 1 Ratio of 12.9% in 4Q18, up
40 bps from 12.5% in 3Q18. AR$927 million remained at the holding
level for future capital injections.
Commenting on fourth quarter and fiscal year 2018 results, Jorge
Ramirez, Grupo Supervielle’s CEO, noted: “We are satisfied with
the results achieved in full year 2018 as we were able to meet our
annual profitability guidance while reaching 100% NPL coverage goal, one
year ahead of plan. This, which resulted in cost of risk higher
than originally planned, was achieved despite macro conditions far worse
than originally anticipated.
“Importantly, we have a very strong franchise and time over time we
have been able to demonstrate the resiliency and flexibility of our
business model as we successfully navigate through periods of low credit
demand and challenging macro and financial scenarios. We expect
our franchise to get even stronger over time as we move forward with our
digital transformation process.
“As we look to the current year, we are cautiously optimistic.
We expect the macro environment to remain challenging in the first
half and then gradually improving. Adding further uncertainty
will be the upcoming Presidential elections. This just adds
another bump in the road for us to navigate through. In this context,
our focus remains on healthy loan origination and credit quality. We
have the franchise well positioned and are confident with our ability to
resume growth in a healthier macro environment.
“I would like to thank the Supervielle employees for all their hard
work during the past year,” concluded Mr. Ramirez.
Financial Highlights & Key Ratios
| (In millions of Argentine Ps.) | % Change | ||||||||||||||||||||
| INCOME STATEMENT | 4Q18 | 3Q18 | 2Q18 | 1Q18 | 4Q17 | QoQ | YoY | FY18 | FY17 | % Chg. | |||||||||||
| Net Interest Income | 2,023.2 | 2,722.9 | 2,898.2 | 2,818.1 | 2,552.7 | -25.7% | -20.7% | 10,462.4 | 8,554.2 | 22.3% | |||||||||||
| NIFFI & Exchange Rate Differences | 3,235.0 | 1,663.4 | 716.8 | 805.5 | 807.4 | 94.5% | 300.7% | 6,420.6 | 2,445.7 | 162.5% | |||||||||||
| Net Financial Income | 5,258.1 | 4,386.2 | 3,615.0 | 3,623.6 | 3,360.1 | 19.9% | 56.5% | 16,882.9 | 10,999.9 | 53.5% | |||||||||||
| Net Service Fee Income (excluding income from insurance activities) | 1,065.1 | 1,026.9 | 1,004.9 | 884.6 | 783.7 | 3.7% | 35.9% | 3,981.5 | 3,237.0 | 23.0% | |||||||||||
| Income from Insurance activities | 180.4 | 183.1 | 145.3 | 148.7 | 148.3 | -1.5% | 21.7% | 657.6 | 479.0 | 37.3% | |||||||||||
| Loan Loss Provisions | -1,382.8 | -1,122.5 | -989.2 | -726.1 | -606.3 | 23.2% | 128.1% | -4,220.6 | -1,928.8 | 118.8% | |||||||||||
| Personnel & Administrative Expenses | -3,591.2 | -3,045.2 | -2,760.9 | -2,446.5 | -2,604.5 | 17.9% | 37.9% | 11,843.8 | 8,721.2 | 35.8% | |||||||||||
| Profit before income tax | 903.8 | 1,027.6 | 456.0 | 1,020.4 | 651.4 | -12.0% | 38.7% | 3,407.9 | 2,511.8 | 35.7% | |||||||||||
| Attributable Net income | 706.8 | 867.4 | 270.7 | 722.6 | 467.6 | -18.5% | 51.2% | 2,567.6 | 1,819.8 | 41.1% | |||||||||||
| Attributable Comprehensive income | 935.3 | 874.5 | 475.3 | 744.8 | 472.6 | 7.0% | 97.9% | 3,030.0 | 1,878.4 | 61.3% | |||||||||||
| Earnings per Share (AR$) | 1.55 | 2.01 | 0.59 | 1.58 | 1.02 | ||||||||||||||||
| Earnings per ADRs (AR$) | 7.75 | 10.03 | 2.96 | 7.91 | 5.12 | ||||||||||||||||
| Average Outstanding Shares (in millions) | 456.7 | 456.7 | 456.7 | 456.7 | 456.7 | ||||||||||||||||
| BALANCE SHEET | dec 18 | sep 18 | jun 18 | mar 18 | dec 17 | QoQ | YoY | dec 18 | dec 17 | ||||||||||||
| Total Assets | 141,115.5 | 146,122.7 | 120,789.0 | 96,569.6 | 92,202.4 |
-3.4% |
53.0% | ||||||||||||||
| Average Assets1 | 143,525.2 | 128,633.2 | 104,287.2 | 90,832.7 | 85,498.9 | 11.6% | 67.9% | 117,967.9 | 70,857.8 | ||||||||||||
| Total Loans & Leasing | 80,171.5 | 83,378.1 | 75,830.0 | 66,479.5 | 60,692.9 | -3.8% | 32.1% | ||||||||||||||
| Total Deposits | 94,906.0 | 97,185.5 | 75,672.7 | 55,540.2 | 56,408.7 | -2.3% | 68.2% | ||||||||||||||
| Attributable Shareholders’ Equity | 17,155.6 | 16,220.0 | 15,345.4 | 15,114.2 | 14,369.6 | 5.8% | 19.4% | ||||||||||||||
| Average Attributable Shareholders’ Equity1 | 16,547.0 | 15,638.9 | 15,044.8 | 14,490.1 | 14,188.7 | 5.8% | 16.6% | 15,530.0 | 9,844.9 | ||||||||||||
| KEY INDICATORS | 4Q18 | 3Q18 | 2Q18 | 1Q18 | 4Q17 | FY18 | FY17 | ||||||||||||||
| Profitability & Efficiency | |||||||||||||||||||||
| ROAE | 22.6% | 22.4% | 12.6% | 20.6% | 13.3% | 19.5% | 19.1% | ||||||||||||||
| ROAA | 2.6% | 2.7% | 1.8% | 3.3% | 2.2% | 2.6% | 2.7% | ||||||||||||||
| Net Interest Margin | 18.5% | 20.9% | 19.2% | 19.6% | 20.0% | 19.4% | 20.1% | ||||||||||||||
| Net Financial Margin | 20.3% | 18.2% | 17.4% | 19.9% | 20.0% | 18.7% | 20.5% | ||||||||||||||
| Net Fee Income Ratio | 19.2% | 21.4% | 24.3% | 22.3% | 22.8% | 21.6% | 25.6% | ||||||||||||||
| Cost / Assets | 10.3% | 9.7% | 10.9% | 11.1% | 12.6% | 10.3% | 12.7% | ||||||||||||||
| Efficiency Ratio | 61.9% | 59.3% | 66.3% | 59.0% | 68.2% | 61.5% | 67.0% | ||||||||||||||
| Liquidity & Capital | |||||||||||||||||||||
| Loans to Total Deposits3 | 84.5% | 85.8% | 100.2% | 119.7% | 107.6% | ||||||||||||||||
| Liquidity Coverage Ratio (LCR)4 | 173.4% | 132.1% | 139.0% | 116.9% | 113.9% | ||||||||||||||||
| Total Equity / Total Assets | 12.2% | 11.1% | 12.7% | 15.7% | 15.6% | ||||||||||||||||
| Proforma Consolidated Capital / Risk weighted assets 5 | 14.0% | 13.8% | 14.5% | 17.0% | 19.6% | ||||||||||||||||
| Proforma Consolidated Tier1 Capital / Risk weighted assets 6 | 12.9% | 12.5% | 13.1% | 15.8% | 17.2% | ||||||||||||||||
| Risk Weighted Assets / Total Assets | 73.0% | 70.5% | 78.8% | 88.1% | 81.7% | ||||||||||||||||
| Asset Quality | |||||||||||||||||||||
| NPL Ratio | 4.1% | 3.7% | 3.6% | 3.2% | 3.1% | ||||||||||||||||
| Allowances as a % of Total Loans | 4.1% | 3.5% | 3.3% | 2.8% | 2.6% | ||||||||||||||||
| Coverage Ratio | 100.0% | 94.0% | 89.9% | 89.7% | 88.0% | ||||||||||||||||
| Cost of Risk7 | 7.0% | 5.9% | 5.6% | 4.7% | 4.4% | 5.8% | 4.3% | ||||||||||||||
| MACROECONOMIC RATIOS | |||||||||||||||||||||
| Retail Price Index (%)8 | 11.5% | 14.1% | 8.8% | 6.7% | 6.1% | 47.6% | 24.8% | ||||||||||||||
| Avg. Retail Price Index (%) | 47.3% | 35.4% | 27.1% | 25.3% | 33.8% | ||||||||||||||||
| UVA (var) | 16.2% | 10.0% | 7.5% | 6.9% | 4.9% | 46.9% | 22.5% | ||||||||||||||
| Pesos/US$ Exchange Rate | 37.81 | 40.90 | 28.86 | 20.14 | 18.77 | 37.8 | 18.8 | ||||||||||||||
| Badlar Interest Rate (eop) | 49.5% | 43.3% | 32.7% | 22.6% | 23.3% | 49.5% | 23.3% | ||||||||||||||
| Badlar Interest Rate (avg) | 50.2% | 37.1% | 27.3% | 22.9% | 22.5% | 34.3% | 20.6% | ||||||||||||||
| TM20 (eop) | 51.7% | 44.1% | 33.9% | 22.6% | 23.7% | 51.7% | 23.7% | ||||||||||||||
| TM20 (avg) | 53.4% | 38.7% | 28.6% | 23.4% | 23.4% | 36.0% | 21.4% | ||||||||||||||
| OPERATING DATA | |||||||||||||||||||||
| Active Customers (in millions) | 1.8 | 1.9 | 1.9 | 1.9 | 1.9 | ||||||||||||||||
| Access Points9 | 344 | 368 | 368 | 340 | 326 | ||||||||||||||||
| Employees10 | 5,307 | 5,281 | 5,451 | 5,406 | 5,320 | 0.5% | -0.2% | ||||||||||||||
| 1. |
Average Assets and average Shareholder´s Equity calculated on a daily basis |
|
| 2. |
Total Portfolio: Loans and Leasing before Allowances. According to IFRS, this line item includes Securitized Loan Portfolio and loans transferred with recourse. |
|
| 3. |
Loans/Total Deposits ratio was restated in previous quarters due to the inclusion in the balance sheet of the securitized and transferred loans. |
|
| 4. | This ratio includes the liquidity held at the holding company level. | |
| 5. |
Regulatory capital divided by risk weighted assets taking into |
|
| 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 growth. As of September 30, 2018, the liquidity amounted to Ps.927 million. 4Q17 Tier 1 ratio as reported previous IFRS adoption was 18.4%. |
|
| 7. |
Cost of risk in 4Q18, excluding the AR$ 231 million additional voluntary loan loss provisions made to increase coverage, was 5.9%. |
|
| 8. | Source: INDEC | |
| 9. |
The increase in the number of Access Points in 1Q18, reflects the opening of 1 bank branches located in Neuquen and the presence in 13 Walmart Stores. The increase in the number of Access Points in 2Q18, reflects the opening of 2 bank branches and 24 Mila branches. The decrease in the number of Access Points in 4Q18, reflects the closing of certain consumer finance sales points. |
|
|
10. |
|
The decrease in the number of employees in 3Q18 reflects the reorganization process in the consumer finance business |
Contacts
IR Contact:
Ana Bartesaghi
Treasurer and IRO
Phone 54 11
4324 8132