Grupo Supervielle S.A. ((SUPV)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Grupo Supervielle S.A. painted a mixed picture for the company, with both promising and concerning elements. On one hand, there was notable growth in loans and deposits, coupled with a positive political outlook following the elections. On the other hand, the company faced significant net losses, margin compression, and challenges in asset quality, leading to a balanced sentiment overall.
Strong Loan and Deposit Growth
Grupo Supervielle reported robust growth in both loans and deposits. Loans increased by 8% in real terms, slightly outpacing the system, while deposits surged by 15% quarter-on-quarter and over 40% year-on-year. Notably, dollar deposits reached a new record high, climbing 31% sequentially, showcasing the company’s strength in attracting and retaining customer funds.
Positive Political and Economic Outlook
The post-election environment in Argentina has fostered increased confidence, with interest rates declining sharply and monetary conditions easing. These developments indicate early signs of economic stabilization, providing a more favorable backdrop for Grupo Supervielle’s operations.
Strategic Initiatives Gaining Traction
The company’s strategic initiatives, particularly the scaling of its SuperApp, are gaining momentum. This digital platform is enhancing customer engagement and expanding cross-sell opportunities, especially at Yole, where there has been strong volume and fee growth.
Significant Net Loss
Despite the positive developments, Grupo Supervielle reported a substantial net loss of ARS 50.3 billion in the third quarter of 2025. This was largely due to systemic pressures and a very tight monetary policy, highlighting the challenging financial environment the company is navigating.
Margin Compression
The company experienced a 43% sequential decline in net financial income, driven by high interest rates and regulatory challenges. This resulted in a decrease in peso net interest margin (NIM) to 11.7% and total NIM to 10.8%, reflecting the pressure on profitability.
Asset Quality Challenges
Asset quality has deteriorated, with the non-performing loan (NPL) ratio rising to 3.9%, primarily due to issues in the retail segment. The company anticipates that NPLs will peak in the fourth quarter, underscoring ongoing challenges in maintaining asset quality.
Forward-Looking Guidance
Looking ahead, Grupo Supervielle provided guidance for the upcoming financial year. The company expects real loan growth between 35% and 40%, led by corporate lending, with retail growth gradually resuming. Deposits are projected to grow by 30% to 35%, with increases in U.S. dollar-denominated balances. However, asset quality is expected to remain challenged, with an NPL ratio forecasted between 4.7% and 5.1%. Net interest margin is anticipated to range between 15% and 18%, and operating expenses are projected to decline by 8% to 10%.
In summary, Grupo Supervielle’s earnings call revealed a complex landscape of growth and challenges. While the company is making strides in strategic initiatives and benefiting from a more favorable political climate, it continues to grapple with financial pressures and asset quality issues. Investors will be keenly watching how the company navigates these dynamics in the coming quarters.