Grupo Supervielle (SUPV) Q1 2026 earnings summary

Executive summary

• Underlying profitability returned to positive territory in Q1 2026, with adjusted net income of ARS 6.7 billion and adjusted ROE of 2.5%, excluding extraordinary severance charges.

• Efficiency programs and voluntary retirement plans reduced headcount by 15%, establishing a structurally lower cost base and generating annualized savings of ARS 33 billion.

• Digital transformation advanced, with invertirOnline assets under custody up to $2.7 billion and new AI-enabled investment tools launched.

• Operating trends improved into April, with profitability turning positive in March and macroeconomic stabilization supporting margin recovery.

• CET1 capital ratio remained strong at 15.4%.

Financial highlights

• Reported net loss of ARS 17 billion, improved from ARS 21 billion loss in prior quarter; adjusted net income of ARS 6.7 billion after excluding ARS 23.8 billion in severance charges.

• Net interest margin at 17.7%, benefiting from lower funding costs and improved deposit mix.

• CET1 ratio at 15.4%, reflecting a strong capital position.

• Total loans declined 5.6% sequentially, mainly due to seasonality and subdued local currency demand; U.S. dollar loans grew 13% in original currency.

• Total deposits declined 4.7% sequentially, but retail and commercial deposits increased 22% year-over-year in real terms.

Outlook and guidance

• Real loan growth expected at 20%-25% for 2026, revised down from 25%-30%, with a temporary mix shift toward corporate loans.

• Deposit growth guidance lowered to 10%-15% from 20%-25%.

• NPL ratio expected between 5%-5.5% for 2026; net cost of risk guidance improved to 5.3%-5.8%.

• NIM guidance raised to 15%-18% (prior: 14%-16%) due to higher expected inflation.

• Adjusted operating expenses to decline 2%-4% in real terms; reported ROE expected at 2%-6%, adjusted ROE at 6%-10%.

• CET1 expected to end the year between 11%-13%.