4Q17 Net Income up 60%
YoY and 36% QoQ.
Net income, excluding
non-recurring items in 4Q16, increased 94% YoY
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/
Grupo Supervielle S.A.Ana Bartesaghi, +5411 4324-8132
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