UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the month of June, 2023
Commission File Number: 001-37777
GRUPO SUPERVIELLE S.A.
(Exact name of registrant as specified in its charter)
SUPERVIELLE GROUP S.A.
(Translation of registrant’s name into English)
Bartolomé Mitre 434
C1036AAH Buenos Aires
Republic of Argentina
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ☐ No ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ☐ No ☒
GRUPO SUPERVIELLE S.A.
TABLE OF CONTENTS
Item
|
|
---|---|
1. | Financial Statements for the period ended on March 31, 2023, presented on comparative basis. |
Consolidated Condensed Interim Financial Statements
For the three-month period ended on
March 31, 2023, presented on comparative basis in homogeneous currency
Contents
CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION2
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME4
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME5
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY7
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS9
1. ACCOUNTING STANDARDS AND BASIS OF PREPARATION11
2. CRITICAL ACCOUNTING POLICIES AND ESTIMATES18
6. RELATED PARTY TRANSACTIONS26
7. COMPOSITION OF THE MAIN ITEMS OF THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND CONSOLIDATED INCOME STATEMENT26
8. CONSIDERATIONS OF RESULTS30
10. ASSET MANAGEMENT AND OTHER SERVICES30
11. ADDITIONAL INFORMATION REQUIRED BY THE BCRA30
13 FOREIGN TRADE FINANCING FACILITATION PROGRAM33
14 REPURCHASE OF TREASURY SHARES33
15 Prior commitment to merge IUDÚ Compañía Financiera S.A. and Tarjeta Automática S.A with Banco Supervielle S.A.33
16 ECONOMIC CONTEXT IN WHICH THE COMPANY OPERATES34
SCHEDULE A - DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS, OTHER DEBT SECURITIES, EQUITY INSTRUMENTS36
SCHEDULE B – CLASSIFICATION OF LOANS AND OTHER FINANCING CREDIT ACCORDING TO STATUS AND COLLATERAL RECEIVED40
SCHEDULE C - CONCENTRATION OF LOANS AND OTHER FINANCING42
SCHEDULE D – BREAKDOWN OF TOTAL LOANS AND OTHER FINANCING43
SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT44
SCHEDULE G - INTANGIBLE ASSETS45
SCHEDULE H – CONCENTRATION OF DEPOSITS46
SCHEDULE I – BREAKDOWN OF FINANCIAL LIABILITIES FROM REMAINING TERMS47
SCHEDULE L - ASSETS AND LIABILITIES IN FOREIGN CURRENCY48
SCHEDULE R – LOAN LOSS RISK PROVISIONS49
SEPARATE CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION51
SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME52
SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY55
SEPARATE CONDENSED INTERIM STATEMENT OF CASH FLOW57
1. ACCOUNTING STANDARDS AND BASIS OF PREPARATION58
4. INVESTMENT IN SUBSIDIARIES AND ASSOCIATES65
5. COMPOSITION OF THE MAIN ITEMS OF THE SEPARATE STATEMENT OF COMPREHENSIVE INCOME66
7. COMPANIES UNDER SECT, 33 OF CORPORATE LAW AND OTHER RELATED COMPANIES67
8. LOAN AND DEBT ESTIMATED TERMS71
SCHEDULE A – OTHER DEBT SECURITIES73
SCHEDULE G - INTANGIBLE ASSETS74
SCHEDULE L – ASSETS AND LIABILITIES IN FOREIGN CURRENCY75
INFORMATIVE REVIEW AS OF March 31, 202376
Consolidated Condensed Interim Financial Statements
For the three-month period ended on
March 31, 2023, presented on comparative basis in homogeneous currency
1
GRUPO SUPERVIELLE S.A.
Name: | Grupo Supervielle S.A. |
Financial year: | N° 48 started on January 1, 2023 |
Legal Address: | Bartolomé Mitre 434 Ciudad Autónoma de Buenos Aires |
Core Business: | Carry out, on its own account or third parties’ or related to third parties, in the country or abroad, financing activities through cash or instrument contributions to already-existing or to-be-set-up corporations, whether controlling such corporations or not, as well as the purchase and sale of securities, shares, debentures and any kind of property values, granting of fines and/or guarantees, set up or transfer of loans as guarantee, including real, or without it not including operations set forth by the Financial Entities Law and any other requiring public bidding. |
Registration Number at the IGP: | 212,617 |
Date of Registration at IGP: | October 15, 1980 |
Amendment of by-laws (last): | April 24, 2018 (Registration in progress) |
Expiration date of the Company’s By-Laws: | October 15, 2079 |
Corporations Article 33 Companies general Law | Note 7 to Separate Financial Statements |
Composition of Capital Stock as of March 31, 2023
Shares | Capital Stock | ||||
Quantity | Class | N.V. $ | Votes per share | Subscribed in thousands of $ | Integrated in thousands of $ |
61,738,188 | A: Non endorsable, common shares of a nominal value | 1 | 5 | 61,738 | 61,738 |
394,984,134 | B: Non endorsable, common shares of a nominal value | 1 | 1 | 394,984 | 394,984 |
456,722,322 |
|
|
| 456,722 | 456,722 |
2
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
As of March 31, 2023 and December 31, 2022
(Expressed in thousands of pesos in homogeneous currency)
ASSETS | Notes and Schedules | 03/31/2023 | 12/31/2022 | |
| Cash and due from banks | 4 and 5 | 57,635,194 | 58,917,813 |
| Cash | | 24,390,484 | 23,277,839 |
| Financial institutions and correspondents | | 33,227,224 | 35,605,149 |
| Argentine Central Bank | | 31,094,838 | 33,092,222 |
| Other local and financial institutions | | 2,132,386 | 2,512,927 |
| Others | | 17,486 | 34,825 |
| Debt Securities at fair value through profit or loss | 4, 5, 7.1 and A | 27,170,904 | 21,519,817 |
| Derivatives | 7.2 and 4 | 625,771 | 359,786 |
| Reverse Repo transactions | 4 and 7.3 | 25,046,379 | 26,271,593 |
| Other financial assets | 4, 5 and 7.4 | 15,447,056 | 9,868,988 |
| Loans and other financing | 4,7.5 and B | 249,563,309 | 284,520,655 |
| To the non-financial public sector | | 392,410 | 338,053 |
| To the financial sector | | 2,281,956 | 784,605 |
| To the Non-Financial Private Sector and Foreign residents | | 246,888,943 | 283,397,997 |
| Other debt securities | 4, 7.6 and A | 275,143,048 | 337,418,834 |
| Financial assets pledged as collateral | 4 and 7.7 | 20,388,238 | 17,613,047 |
| Deferred income tax assets | | 1,035,043 | 1,188,197 |
| Investments in equity instruments | 4 and A | 429,642 | 611,778 |
| Property, plant and equipment | F | 22,175,004 | 22,366,849 |
| Investment property | F | 20,562,435 | 20,576,484 |
| Intangible assets | G | 26,530,149 | 27,116,920 |
| Deferred income tax assets | | 13,589,629 | 14,475,611 |
| Other non-financial assets | 7.8 | 5,743,175 | 6,097,378 |
| Inventories | 7.9 | - | 81,670 |
| TOTAL ASSETS | | 761,084,976 | 849,005,420 |
|
| | | |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statement.
3
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
As of March 31, 2023 and December 31, 2022
(Expressed in thousands of pesos in homogeneous currency)
|
| Notes and Schedules | 03/31/2022 | 12/31/2022 |
| LIABILITIES | | | |
| Deposits | 4, 7.10 and H | 576,599,237 | 666,505,265 |
| Non-financial public sector | | 28,233,174 | 33,894,081 |
| Financial sector | | 57,697 | 123,473 |
| Non-financial private sector and foreign residents | | 548,308,366 | 632,487,711 |
| Liabilities at fair value through profit or loss | 4 and 7.11 | 2,071,154 | 2,604,062 |
| Derivatives | | 625 | - |
| Other financial liabilities | 4 and 7.12 | 28,351,009 | 22,040,230 |
| Financing received from the Argentine Central Bank and other financial institutions | 4 and 7.13 | 5,127,992 | 6,731,405 |
| Unsubordinated debt securities | 4 | - | 683,416 |
| Provisions | 7.14 | 2,183,083 | 2,059,293 |
| Deferred income tax liabilities | | 222,594 | 221,599 |
| Other non-financial liabilities | 7.15 | 33,285,121 | 35,053,312 |
| TOTAL LIABILITIES | | 647,840,815 | 735,898,582 |
| | | | |
| SHAREHOLDERS' EQUITY | | | |
| Capital stock | | 442,671 | 444,411 |
| Paid in capital | | 103,289,842 | 103,289,842 |
| Capital Adjustments | | 10,660,571 | 10,802,066 |
| Own shares in portfolio | | 14,051 | 12,311 |
| Comprehensive adjustment of shares in portfolio | | 1,142,651 | 1,001,156 |
| Cost of treasury stock | | (2,019,603) | (1,683,887) |
| Reserve | | 7,547,912 | 7,547,912 |
| Retained earnings | | (9,655,652) | (4,314,554) |
| Other comprehensive income | | 1,174,723 | 1,259,032 |
| Net income for the period / year | | 557,461 | (5,341,098) |
| Shareholders' Equity attributable to owners of the parent company | | 113,154,627 | 113,017,191 |
| Shareholders' Equity attributable to non-controlling interests | | 89,534 | 89,647 |
| TOTAL SHAREHOLDERS' EQUITY | | 113,244,161 | 113,106,838 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | | 761,084,976 | 849,005,420 |
| | | | |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
4
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For three-month period on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
| | Note | | |
---|---|---|---|---|
| | | 03/31/2023 | 03/31/2022 |
| Interest income | 7.16 | 89,519,738 | 62,193,321 |
| Interest expenses | 7.17 | (65,060,645) | (37,249,856) |
| Net interest income | | 24,459,093 | 24,943,465 |
| Service fee income | 7.19 | 8,929,372 | 9,865,309 |
| Service fee expenses | 7.20 | (2,725,220) | (3,542,093) |
| Income from insurance activities | 9 | 1,639,982 | 1,437,579 |
| Net Service Fee Income | | 7,844,134 | 7,760,795 |
| Subtotal | | 32,303,227 | 32,704,260 |
| Net income from financial instruments (NIFFI) at fair value through profit or loss | 7.18 | 7,543,444 | 6,732,927 |
| Result from assets withdrawals rated at amortized cost | | (10,366) | 249,630 |
| Exchange rate difference on gold and foreign currency | | 515,867 | 960,077 |
| Subtotal | | 8,048,945 | 7,942,634 |
| Other operating income | 7.21 | 2,108,681 | 2,953,427 |
| Result from exposure to changes in the purchasing power of the currency | | (5,249,357) | (5,591,594) |
| Loan loss provisions | | (2,946,956) | (4,340,421) |
| Net operating income | | 34,264,540 | 33,668,306 |
| Personnel expenses | 7.22 | (14,575,016) | (16,528,438) |
| Administration expenses | 7.23 | (7,900,984) | (8,016,371) |
| Depreciations and impairment of non-financial assets | 7.24 | (2,687,970) | (2,767,413) |
| Other operating expenses | 7.25 | (7,410,777) | (6,764,845) |
| Operating income | | 1,689,793 | (408,761) |
| Income/(Loss) before taxes from continuing operations | | 1,689,793 | (408,761) |
| Income tax | | 1,132,258 | 136,952 |
| Net income/(loss) for the period | | 557,535 | (545,713) |
| Net income/(loss) for the period attributable to owners of the parent company | | 557,461 | (545,165) |
| Net income/(loss) for the period attributable to non-controlling interests | | 74 | (548) |
| | | | |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
5
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For three-month period on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
| 03/31/2023 | 03/31/2022 |
NUMERATOR | | |
Net income/(loss) for the period attributable to owners of the parent company | 557,461 | (545,165) |
PLUS: Diluting events inherent to potential ordinary shares | - | - |
Net income/(loss) attributable to owners of the parent company adjusted by dilution | 557,461 | (545,165) |
| | |
DENOMINATOR | | |
| | |
Weighted average of ordinary shares | 442,897 | 454,274 |
PLUS: Weighted average of number of ordinary shares issued with dilution effect. | - | - |
Weighted average of number of ordinary shares issued of the year adjusted by dilution effect | 442,897 | 454,274 |
| | |
Basic income/(loss) per share | 1.23 | (1.20) |
Diluted income/(loss) per share | 1.23 | (1.20) |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
6
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For three-month period on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
| 03/31/2023 | 03/31/2022 |
Net income/(loss) for the period | 557,535 | (545,713) |
Components of Other Comprehensive Income not to be reclassified to profit or loss | | |
Revaluations of the period of property, plant and equipment and intangibles | | |
Revaluations of property, plant and equipment and intangibles | - | - |
Income tax | - | - |
Net (loss)/income from equity instrument at fair value through changes in other comprehensive income | (80,104) | 3,591 |
(Loss)/Income for the period from equity instrument at fair value through other comprehensive income | (123,237) | 5,526 |
Income tax | 43,133 | (1,935) |
Total Other Comprehensive Income not to be reclassified to profit or loss | (80,104) | 3,591 |
Components of Other Comprehensive Income to be reclassified to profit or loss | | |
Foreign currency translation difference in financial statements conversion | 31,657 | 17,823 |
Foreign currency translation differences for the period | 31,657 | 17,823 |
(Loss) from financial instrument at fair value through changes in other comprehensive income | (36,023) | (288,272) |
(Loss) for the period from financial instrument at fair value through other comprehensive income | (55,420) | (440,298) |
Income tax | 19,397 | 152,026 |
Total Other Comprehensive Income to be reclassified to profit or loss | (4,366) | (270,449) |
Total Other Comprehensive Income | (84,470) | (266,858) |
Other comprehensive income attributable to owners of the parent company | (84,309) | (266,596) |
Other comprehensive income attributable to non-controlling interests | (161) | (262) |
Total Comprehensive Income/(Loss) | 473,065 | (812,571) |
Total comprehensive income/(loss) attributable to owners of the parent company | 473,152 | (811,761) |
Total comprehensive (loss) attributable to non-controlling interests | (87) | (810) |
| | |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements
7
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
For the three-month period ended on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Items | Capital Stock | Inflaion adjustment of capital stock | Paid in capital | Treasury shares | Inflation adjustment of treasury shares | Cost of of treasury shares | Adjustment Cost of of treasury shares | Legal reserve | Other reserves | Retained earnings | Other comprehensive income | Total Shareholders´ equity attributable to parent company | Total Shareholders´ equity attributable to non-controlling interest | Total shareholders´ equity | ||
| | | | Revaluation of PPE | Foreign currency translation differences | Earnings or los accrued by financial institutions at FV through profit and loss | ||||||||||
Balance at December 31, 2022 | 444,411 | 10,802,066 | 103,289,842 | 12,311 | 1,001,156 | (150,675) | (1,533,212) | 1,261,114 | 6,286,798 | (9,655,652) | 1,275,211 | 75,281 | (91,460) | 113,017,191 | 89,647 | 113,106,838 |
Other movements | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (26) | (26) |
Acquisition of Treasury shares | (1,740) | (141,495) | - | 1,740 | 141,495 | - | (335,716) | - | - | - | - | - | - | (335,716) | - | (335,716) |
Net income for the period | - | - | - | - | - | - | - | - | - | 557,461 | - | - | - | 557,461 | 74 | 557,535 |
Other comprehensive loss for the period | - | - | - | - | - | - | - | - | - | - | - | 31,657 | (115,966) | (84,309) | (161) | (84,470) |
Balance at March 31, 2023 | 442,671 | 10,660,571 | 103,289,842 | 14,051 | 1,142,651 | (150,675) | (1,868,928) | 1,261,114 | 6,286,798 | (9,098,191) | 1,275,211 | 106,938 | (207,426) | 113,154,627 | 89,534 | 113,244,161 |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial.
8
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
For the three-month period ended on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos)
Items | Capital stock | Capital adjustments | Paid in capital | Legal reserve | Other reserves | Retained earnings | Other comprehensive income | Total Shareholders´ equity attributable to parent company | Total Shareholders´ equity attributable to non-controlling interest | Total Shareholders´equity | ||
Revaluation of PPE | Foreign currency translation differences | Earnings or los accrued by financial institutions at FV through profit and loss | ||||||||||
Balance at December 31, 2021 | 456,722 | 11,803,222 | 103,289,842 | 1,261,114 | 9,731,078 | (7,156,991) | 1,938,041 | 960 | 931,616 | 122,255,604 | 97,136 | 122,352,740 |
Share premium in subsidiaries | - | - | - | - | 5,155 | - | - | - | - | 5,155 | 63 | 5,218 |
Net loss for the period | - | - | - | - | - | (545,165) | - | - | - | (545,165) | (548) | (545,713) |
Other comprehensive loss for the period | - | - | - | - | - | - | - | 17,823 | (284,419) | (266,596) | (262) | (266,858) |
Balance at March 31, 2022 | 456,722 | 11,803,222 | 103,289,842 | 1,261,114 | 9,736,233 | (7,702,156) | 1,938,041 | 18,783 | 647,197 | 121,448,998 | 96,389 | 121,545,387 |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial.
9
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS
For the three-month period ended on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
03/31/2023 | 03/31/2022 | |
---|---|---|
CASH FLOW FROM OPERATING ACTIVITIES | | |
| | |
Net income/(loss) for the period before Income Tax | 1,689,793 | (408,761) |
| | |
Adjustments to obtain flows from operating activities: | | |
Depreciation and impairment of non-financial assets | 2,687,970 | 2,767,413 |
Loan loss provisions | 2,946,956 | 4,340,421 |
Other adjustments | | |
-Exchange rate difference on gold and foreign currency | (515,867) | (960,077) |
- Interests from loans and other financing | (89,519,738) | (62,193,321) |
- Interests from deposits and financing received | 65,060,645 | 37,249,856 |
-Net income from financial instruments at fair value through profit or loss | (7,543,444) | (6,732,927) |
-Result from derecognition of financial assets measured at amortized cost | 10,366 | (249,630) |
-Result from exposure to changes in the purchasing power of the currency | 5,249,357 | 5,591,594 |
-Interest on liabilities for financial leases | 157,699 | (187,150) |
-Allowances reversed | (581,608) | (1,566,373) |
| | |
(Increases) / decreases from operating assets: | | |
Debt securities at fair value through profit or loss | 638,116 | 5,559,294 |
Derivatives | (265,985) | 206,143 |
Reverse Repo transactions | 1,225,214 | 88,478,390 |
Loans and other financing | | |
To the non-financial public sector | (54,357) | (95,611) |
To the other financial entities | (1,497,351) | 2,189 |
To the non-financial sector and foreign residents (*) | 123,210,815 | 97,655,028 |
Other debt securities | 62,275,786 | (139,318,087) |
Financial assets pledged as collateral | (2,775,191) | (512,693) |
Other assets (*) | (5,527,979) | 10,016,461 |
| | |
Increases / (decreases) from operating liabilities: | | |
Deposits | | |
Non-financial public sector | (5,660,907) | 4,560,796 |
Financial sector | (65,776) | 75,424 |
Private non-financial sector and foreign residents | (149,239,990) | (28,635,587) |
Liabilities at fair value through profit or loss | (532,908) | 3,308,177 |
Derivatives | 625 | - |
Other liabilities (*) | 4,680,238 | (26,488,190) |
Income Tax paid | (72,730) | 49,270 |
| | |
Net cash (used in) / provided by operating activities (A) | 5,979,749 | (7,113,651) |
| | |
CASH FLOW FROM INVESTING ACTIVITIES | | |
| | |
Payments: | | |
Purchase of PPE, intangible assets and other assets | (1,328,023) | (1,245,296) |
| | |
The accompanying notes and schedules are an integral part of the Consolidated Financial Statements .
10
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS
For the three-month period ended on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
03/31/2023 | 03/31/2022 | |
CASH FLOW FROM INVESTING ACTIVITIES | | |
| | |
Collections: | | |
Disposals related to PPE, intangible assets and other assets | 24,639 | 4,506 |
Purchase of liability or equity instruments issued by other entities | 182,136 | 96,476 |
| | |
Net cash used in investing activities (B) | (1,121,248) | (1,144,314) |
| | |
CASH FLOWS FROM FINANCING ACTIVITIES | | |
| | |
Payments: | | |
Interest on finance lease liabilities | (494,133) | (886,827) |
Unsubordinated debt securities | (683,416) | (1,477,917) |
Financing received from Argentine Financial Institutions | (36,469,442) | (70,974,808) |
Repurchase of own shares | (335,716) | - |
| | |
Collections: | | |
Changes in ownership of subsidiaries that do not result in loss of control | - | 5,218 |
Unsubordinated debt securities | - | 68,682 |
Financing received from Argentine Financial Institutions | 34,866,029 | 65,071,427 |
| | |
Net cash used in financing activities (C) | (3,116,678) | (8,194,225) |
| | |
Effects of exchange rate changes and exposure to changes in the purchasing power of money on cash and cash equivalents (D) | 7,746,563 | 31,864,608 |
| | |
Net increase in cash and cash equivalents (A+B+C+D) | 9,488,386 | 15,412,418 |
Cash and cash equivalents at the beginning of the period (NOTE 5) | 65,972,426 | 105,359,781 |
Result from exposure to changes in the purchasing power of the currency of cash and equivalents | (11,732,419) | (34,968,736) |
Cash and cash equivalents at the end of the period (NOTE 5) | 63,728,393 | 85,803,463 |
(*) In the items "Loans and other financing - Non-Financial Private Sector and Residents Abroad", "Other Assets" and "Other Liabilities", 452,629 Assets taken in defense of credit and 322,548 rights of use of leased real estate were eliminated. , both corresponding to non-monetary transactions.
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
11
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
1. | ACCOUNTING STANDARDS AND BASIS OF PREPARATION |
Grupo Supervielle S.A. (hereinafter, "the Group"), is a company whose main activity is investment in other companies, Its main income comes from the distribution of dividends from these companies and the obtaining of income from other financial assets.
The consolidated financial statements of Grupo Supervielle S.A. they have been consolidated, line by line with the financial statements of Banco Supervielle S.A., IUDÚ Compañia Financiera S.A., Sofital S.A. F. e I.I., Tarjeta Automática S.A., Supervielle Asset Management S.A., Espacio Cordial de Servicios S.A., Supervielle Seguros S.A., InvertirOnline S.A.U., Portal Integral de Inversiones S.A.U., Micro Lending S.A.U., Supervielle Productores Asesores de Seguros S.A ., Bolsillo Digital S.A.U., Supervielle Agente de Negociación S.A.U., Dólar IOL S.A.U. y IOL Holding S.A.
The main investment of the Company is its shareholding in Banco Supervielle S.A., a financial entity included in Law No. 21.526 of Financial Institutions and subject to BCRA regulations, for which the valuation and exposure guidelines used have been adopted by said Entity (see Note 1.1) in accordance with that established in Title IV, Chapter I, Section I, Article 2 of the 2013 Orderly Text of the National Securities Commission (CNV).
These Consolidated Condensed Interim Financial Statements have been approved by the Board of Directors of the Company at its meeting held on May 22, 2023.
1.1. | Preparation basis |
These consolidated financial statements have been prepared pursuant to: (i) provisions set by Intenational Accounting Standards N° 34, “Interim Financial Information” (IAS 34) and (ii) the accouting information framework set by the Argentine Central Bank which is based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and interpretations issued by the International Financial Reporting Standards Interpretation Committee with the following exceptions:
● | temporary exception from the application of IFRS 9 "Financial Instruments" on debt instruments of the Non-Financial Public Sector. If IFRS 9 had been applied to debt instruments of the Non-Financial Public Sector, it would have registered in the Group's equity a net reduction of income tax of 453 million and 166 million as of March 31, 2023 and December 31, 2022, respectively. |
● | exception for the valuation of dual bonds. Had IFRS 9 been applied, and the bonds valued at fair value through profit or loss, a reduction net of income tax of 78 million and 244 million would have been recorded in the Bank's equity as of March 31, 2023 and 31 December 2022, respectively. |
In accordance with the provisions of IAS 34, the interim financial information will include an explanation of events and transactions, occurred since the end of the last reporting period, that are significant for understanding the changes in the financial position, performance Group financial statements and cash flow statements with the objective of updating the information corresponding to the latest financial statements for the year ended December 31, 2022 (hereinafter “annual financial statements”). Therefore, these condensed interim consolidated financial statements do not include all the information required by complete financial statements prepared in accordance with International Financial Reporting Standards, therefore, for an adequate understanding of the information included therein, they must be read in conjunction with the annual financial statements.
The Group's Management has concluded that these interim condensed financial statements fairly present the financial position, financial performance and cash flows.
It should be noted that these interim condensed financial statements have been prepared applying accounting policies and measurement criteria consistent with those applied by the Group for the preparation of the annual financial statements except for the changes in accounting standards described in Note 1.1.4.
The preparation of condensed consolidated interim financial statements requires the Group to make estimates and evaluations that affect the amount of assets and liabilities recorded, and the disclosure of contingencies, as well as the income and expenses recorded in the period. In this regard, estimates are made to calculate, for example, provisions for credit risk, the useful lives of property, plant and equipment, depreciation and amortization, the recoverable value of assets, the tax charge on earnings and the fair value of certain financial instruments. The actual future results may differ from the estimates and evaluations made at the date of preparation of these interim condensed consolidated financial statements.
12
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
The areas that involve a greater degree of judgment or complexity or areas in which the assumptions and estimates are significant to the consolidated financial statements are described in Note 2.
As of the date of issuance of these financial statements, they are pending transcription to the Inventory and Balance Sheet Book.
1.1.1 | Going concern |
As of the date of these consolidated condensed interim financial statements there are no uncertainties with respect to events or conditions that may raise doubts regarding the possibility that the Group continues to operate normally as a going concern.
1.1.2 | Measuring unit |
Figures included in these consolidated condensed interim financial statements are expressed in thousands of Argentine pesos, unless otherwise stated.
The Group´s consolidated financial statements recognice changes in the currency purchasing power until August 31, 1995. As from such date, in virtue of existing economic stability conditions and pursuant to Communication “A” 2365 issued by the Argentine Central Bank, accounting measurements were not re-expressed until December 31, 2001. In virtue of Communication “A” 3702 issued by the Argentine Central Bank, the application of the method was resumed and became effective on January 1, 2002. Previous accouting measurements were considered to be expressed in the currency as of December 31, 2001.
Pursuant to Communication “A” 3921 issued by the Argentine Central Bank, in compliance with Decree 664/03 issued by the National Executive Power, the application of the re-expression of financial statements in homogeneous currency was interrupted as from March 1, 2003. Therefore, the Group applied said re-expression until February 28, 2003.
In turn, Law N° 27,468 (B.O. 04/12/2018) amended article 10° of Law N° 23,928 and its amendments, thus establishing that the abolition of all legal and regulating standards that set and authorize price indexing, monetary updating, cost changes or any other manner of re-increasing debts, taxes, prices or fees for goods, works or services does not include financial statements, regarding which the application of article 62 of the General Corporations Law N° 19,550 (T.O 1984) and its amendments shall prevail. Likewise, the aforementioned legal body set de abolition of Decree N° 1269/2002 dated on July 16, 2002 and its amendments and instructed the National Executive Power, through its controlling agencies, to set the date as from which said regulations became into effect in relation with financial statements to be submitted. Therefore, on February 22, 2019, the Argentine Central Bank issued Communication “A” 6651 which established that financial statements shall be prepared in a homogeneous currency as from January 1, 2020. Therefore, these consolidated financial statements have been re-expressed as of March 31, 2023.
1.1.3Comparative information
The balances for the year ended December 31, 2022 and for the three-month period ended March 31, 2022 that are disclosed in these financial statements for comparative purposes arise from the financial statements as of such dates, which were prepared with the regulations in force in said year/period.
It´s worth mentioning that, given the restatement of financial statements pursuant to IAS 29 and the provisions of Communication “A” 7211, the Group adjusted for inflation the figures included in the Statement of Financial Position, Income Statement, Other Comprehensive Income and Changes in the Shareholders’ Equity Statement and respective notes as of March 31, 2022 and December 31, 2022 in order to record them in homogeneous currency.
1.1.4 Changes in accounting policies and new accounting standards
With the approval of new IFRS, modifications or derogations of the standards in force, and once such changes are adopted through Adoption Bulletins issued by Federación Argentina de Consejos Profesionales en Ciencias Económicas (FACPCE), the Argentine Central Bank will determine the approval of such standards for financial entities. In general terms, no anticipated IFRS application shall be allowed unless upon adoption such anticipated measure is specified.
The following are changes that were made effective over the course of the quarter ended on March 31, 2023:
13
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
(a) | IFRS 17 “Insurance contracts” |
On May 18, 2017, IASB issued IFRS 17 “Insurance contracts” which provides a comprehensive framework based on principles for measurement and presentation of all insurance contracts. The new rule will supersede IFRS 4 Insurance contracts and requires that insurance contracts be measured using cash flows of existing enforcement and that income be recognized as the service is rendered during the coverage period. The standard will come into force for the fiscal years beginning as from November 1, 2023.
The adoption of these amendments did not have a significant impact on these financial statements.
(b) | Amendments to IAS 1 “Presentation of Financial Statements”, IFRS Practice Statement 2 and IAS 8 “Accounting Policies, changes in accounting estimates and errors” |
The IASB amended IAS 1, “Presentation of Financial Statements”, to require companies to disclose material accounting policy information rather than significant accounting policy information. The amendment also clarifies that accounting policy information is expected to be material or of relative importance if, without it, users of the financial statements would be unable to understand other material information, or of relative importance, in the financial statements concerning significant accounting standards. To support this amendment, the Board also amended IFRS Practice State 2, “Making Materiality Judgments”, to provide guidance on how to apply the concept of materiality to accounting policy disclosures.
The amendment to IAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors”, helps to distinguish between changes in accounting policies from changes in accounting estimates. This distinction is important because changes in accounting estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied retrospectively to past transactions and other past events as well as to those of the current period.
These amendments are applicable to annual periods beginning on or after January 1, 2023. Early application is allowed. Changes shall be applied prospectively.
The adoption of these amendments had no impact on these financial statements.
(c) | Amendments to IAS 12 Deferred tax related to assets and liabilities arising from a single transaction |
These amendments establish that deferred taxes arising from a single transaction that, on initial recognition, give rise to taxable and deductible temporary differences of the same value shall be recognized. This will generally apply to transactions such as leases (for lessees) and decommissioning or remediation obligations, where the recognition of deferred tax assets and liabilities will be required. These amendments shall be applied to transactions that occur on or after the beginning of the earliest comparative period presented. Likewise, deferred tax assets (to the extent that it is probable that they can be used) and deferred tax liabilities shall be recognized at the beginning of the earliest comparative period for all deductible or taxable temporary differences associated with:
-Right-of-use assets and lease liabilities, and
-Decommissioning, restoration and similar liabilities and the corresponding amounts recognized as part of the cost of the related asset.
The cumulative effect of initially applying the amendments is recognized as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at that date.
Previously, IAS 12 did not establish any particular accounting treatment for the tax effects of leases that were recognized on the balance sheet and for similar transactions, so different approaches were considered acceptable. Entities that are already recognizing deferred taxes on these transactions will not have an impact on their financial statements.
The amendments will be effective for fiscal years beginning on or after January 1, 2023 with early adoption permitted.
The adoption of these amendments had no impact on these financial statements.
The changes that have not entered into force as of March 31, 2023 are set out below:
14
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
(a) | Amendments to IAS 16 – Leases |
These amendments include requirements for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and leaseback after the transaction date. Sale and leaseback transactions where some or all of the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted.
The amendments will be effective for the annual periods beginning on or after January 1, 2024.
Grupo Supervielle is currently evaluating the impact that this amendment may have on its consolidated financial statements.
(b) | Amendments to IAS 1 – Non-current assets with covenants. |
These amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability.
The amendments will be effective for the annual periods beginning on or after January 1, 2024.
Grupo Supervielle is currently evaluating the impact that this amendment may have on its consolidated financial statements.
1.2. | Impairment of financial assets |
The Group evaluates, based on a prospective approach, expected credit losses (“ECL”) related to financial assets rated at amortized cost or fair value with changes in another comprehensive income, the exposure resulting from loan commitments and financial guarantee contracts with the scope set by Communication “A” 6847 issued by the Argentine Central Bank.
The Group measures ECL of financial instruments reflecting the following:
IFRS 9 sets forth the following “Three stages” model for the impairment based on changes in the credit quality from initial recognition:
The following chart summarizes the impairment requirements pursuant to IFRS 9 (for financial assets that do not entail impairment on credit value, either purchased or produced:
15
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Changes in the credit quality since initial recognition | ||
Stage 1 | Stage 2 | Stage 3 |
(initial recognition) | (significant increase of credit risk since initial recognition) | (Impaired credit) |
12 months ECL | Lifetime ECL |
There have been no significant changes in the judgments and key assumptions adopted by the Group for the measurement of PCE, with respect to what was reported in the financial statements as of December 31, 2022.
1.2.6 Maximum exposure to credit risk
The chart below includes an analysis of credit risk exposure of the financial instruments for which expected credit loss provisions are recognized. The gross amount of financial assets books included in the chart accounts for the maximum credit risk exposure of such assets.
Loan Type | March 31, 2023 | Total | ||
---|---|---|---|---|
| ECL Staging | | ||
Stage 1 | Stage 2 | Stage 3 | ||
Overdrafts | 32,611,967 | 246,684 | 119,267 | 32,977,918 |
Documents | 16,669,275 | 594,563 | 252,229 | 17,516,067 |
Mortgage loans | 25,778,082 | 2,437,861 | 721,182 | 28,937,125 |
Pledge loans | 7,003,520 | 1,334,653 | 352,665 | 8,690,838 |
Personal loans | 32,213,386 | 6,116,593 | 3,441,829 | 41,771,808 |
Individuals and Business | 32,213,386 | 6,116,593 | 3,441,829 | 41,771,808 |
Credit cards | 63,425,783 | 7,964,421 | 3,627,592 | 75,017,796 |
Individuals and Business | 63,425,783 | 7,964,421 | 3,627,592 | 75,017,796 |
Financial Lease | 11,303,084 | 528,871 | 41,682 | 11,873,637 |
Others | 66,355,398 | 2,827,343 | 3,275,428 | 72,458,169 |
Total | 255,360,495 | 22,050,989 | 11,831,874 | 289,243,358 |
1.2.2 Allowances for loan loss
Allowances for loan losses recognized in the year is affected by a range of factors as follows:
● | Transfers between Stage 1 and Stage 2 or 3 given financial instruments experience significant increases (or decreases) in credit risk or are impaired over the year, and the resulting “increase” between ECL at 12 months and Lifetime; |
● | Additional assignments for new financial instruments recognized during the year, as well as write-offs for withdrawn financial instruments; |
● | Impact on the calculation of ECL of changes in DP, EAD and LGD during the year, resulting from the regular updating of model inputs; |
● | Impact on the measurement of ECL as a result of changes in models and assumptions; |
● | Impact resulting from time elapsing as a consequence of the current value updating; |
● | Conversion to local currency for foreign-currency-denominated assets and other movements; and |
● | Financial assets withdrawn during the year and application of provisions related to assets withdrawn from the balance sheet during the year. |
The following charts explain changes in the provision for credit risk between the beginning and end of the period due to the following factors:
Allowance | Total | |||
---|---|---|---|---|
Stage 1 | Stage 2 | Stage 3 | ||
Allowances for loan losses as of 12/31/2022 | 3,684,151 | 3,562,198 | 7,620,595 | 14,866,944 |
Transfers: | | | | |
From Stage 1 to Etapa 2 | (344,536) | 1,419,464 | - | 1,074,928 |
From Stage 1 to Etapa 3 | (149,259) | - | 804,544 | 655,285 |
From Stage 2 to Etapa 3 | - | (1,615,366) | 3,344,580 | 1,729,214 |
From Stage 2 to Etapa 1 | 122,463 | (375,586) | - | (253,123) |
From Stage 3 to Etapa 2 | - | 24,930 | (192,956) | (168,026) |
From Stage 3 to Etapa 1 | 6,631 | - | (173,328) | (166,697) |
Additions | 503,827 | 400,134 | 1,335,768 | 2,239,729 |
Disposals | (938,390) | (378,515) | (5,085,002) | (6,401,907) |
Net changes | (227,526) | 588,488 | 1,499,542 | 1,860,504 |
Withdrawn financial assets | (488,383) | (1,001,359) | (1,051,663) | (2,541,405) |
Exchange Differences and Others | 14,079 | 11,466 | 116,139 | 141,684 |
Allowances for loan losses as of 03/31/2023 | 2,183,057 | 2,635,854 | 8,218,219 | 13,037,130 |
| Assets Before Allowances | Total | ||
---|---|---|---|---|
Stage 1 | Stage 2 | Stage 3 | ||
Assets Before Allowances as of 12/31/2022 | 265,151,511 | 22,830,031 | 11,406,058 | 299,387,600 |
Transfers: | | | | |
From Stage 1 to Etapa 2 | (7,185,611) | 7,185,611 | - | - |
From Stage 1 to Etapa 3 | (620,227) | - | 620,227 | - |
From Stage 2 to Etapa 3 | - | (2,851,445) | 2,851,445 | - |
From Stage 2 to Etapa 1 | 3,329,477 | (3,329,477) | - | - |
From Stage 3 to Etapa 2 | - | 182,944 | (182,944) | - |
From Stage 3 to Etapa 1 | 174,383 | - | (174,383) | - |
Additions | 69,299,804 | 4,103,307 | 1,372,513 | 74,775,624 |
Disposals | (51,051,937) | (3,221,095) | (4,415,669) | (58,688,701) |
Net changes | (50,584,123) | (3,495,643) | 1,144,443 | (52,935,323) |
Withdrawn financial assets | (488,383) | (1,001,359) | (1,051,663) | (2,541,405) |
Exchange Differences and Others | 2,278,388 | 62,409 | 261,847 | 2,602,644 |
Assets Before Allowances as of 03/31/2023 | 230,303,282 | 20,465,283 | 11,831,874 | 262,600,439 |
| Assets Before Allowances | Total as of March 31, 2023 | ||
---|---|---|---|---|
| Stage 1 | Stage 2 | Stage 3 | |
Promissory notes | 32,611,967 | 246,684 | 119,267 | 32,977,918 |
Unsecured corporate loans | 41,567,659 | 237,830 | 1,379,829 | 43,185,318 |
Overdrafts | 13,226,775 | 559,584 | 252,229 | 14,038,588 |
Mortgage loans | 25,778,082 | 2,437,861 | 721,182 | 28,937,125 |
Automobile and other secured loans | 7,003,520 | 1,334,653 | 352,665 | 8,690,838 |
Personal loans | 32,213,386 | 6,116,593 | 3,441,829 | 41,771,808 |
Credit card loans | 41,812,139 | 6,413,695 | 3,627,592 | 51,853,426 |
Foreign Trade Loans | 15,721,416 | 2,124,351 | 1,697,723 | 19,543,490 |
Other financings | 8,084,182 | 343,629 | 99,282 | 8,527,093 |
Other receivables from financial transactions | 726,154 | 121,532 | 98,594 | 946,280 |
Receivables from financial leases | 11,558,002 | 528,871 | 41,682 | 12,128,555 |
Subtotal | 230,303,282 | 20,465,283 | 11,831,874 | 262,600,439 |
Allowances for loan losses | (2,183,057) | (2,635,854) | (8,218,219) | (13,037,130) |
Total | 228,120,225 | 17,829,429 | 3,613,655 | 249,563,309 |
17
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
1.3. | Consolidation |
A subsidiary is an entity (or subsidiary), including structured entities, in which the Group has control because it (i) has the power to manage relevant activities of the subsidiary (ii) has exposure, or rights, to variable returns from its involment with the subsidiary, and (iii) has the ability to use its power over the subsidiary in order to affect the amount of the investor´s returns. The existence and the effect of the substantive rights, including substantive rights of potential vote, are considered when evaluating whether the Group has power over the other entity. For a right to be substantive, the right holder must have the practical competence to exercise such right whenever it is necessary to make decisions on the direction of the entity’s relevant activities. The Group can have control over an entity, even when it has less voting powers than those required for the majority.
Accordingly, the protecting rights of other investors, as well as those related to substantive changes in the subsidiary´ activities or applicable only in unusual circumstances, do not prevent the Group from having power over a subsidiary. The subsidiaries are consolidated as from the date on which control is transferred to the Group, ceasing its consolidation as from the date on which control ceases.
The following chart provides the subsidiaries which are object to consolidation:
Company | Condition | Legal Adress | Principal Activity | Percentage of Participation | |||
---|---|---|---|---|---|---|---|
03/31/2023 | 12/31/2022 | ||||||
Direct | Direct and Indirect | Direct | Direct and Indirect | ||||
Banco Supervielle S.A. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Commercial Bank | 97.10% | 99.90% (1) | 97.10% | 99.90% (1) |
IUDÚ Compañia Financiera S.A | Controlled | Reconquista 320, C.A.B.A., Argentina | Financial Company | 5.00% | 99.90% | 5.00% | 99.90% |
Tarjeta Automática S.A. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Credit Card and Consumer Loans | 7.85% | 99.91% | 7.85% | 99.91% |
Supervielle Asset Management S.A. | Controlled | San Martín 344, C.A.B.A., Argentina | Asset Management and Other Services | 95.00% | 100.00% | 95.00% | 100.00% |
Sofital S.A.F. e I.I. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Financial operations and administration of marketable securities | 96.80% | 100.00% | 96.80% | 100.00% |
Espacio Cordial de Servicios S.A. | Controlled | Patricias Mendocinas 769, Ciudad de Mendoza, Argentina | Trading of products and services | 95.00% | 100.00% | 95.00% | 100.00% |
Supervielle Seguros S.A. | Controlled | San Martin 344, C.A.B.A., Argentina | Insurance company | 95.00% | 100.00% | 95.00% | 100.00% |
Micro Lending S.A.U. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Financial Company | 100.00% | 100.00% | 100.00% | 100.00% |
InvertirOnline S.A.U. | Controlled | San Martin 344, C.A.B.A., Argentina | Financial Broker | 100.00% | 100.00% | 100.00% | 100.00% |
Portal Integral de Inversiones S.A.U | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Representations | 100.00% | 100.00% | 100.00% | 100.00% |
IOL Holding S.A. | Controlled | Treinta y tres 1271, Montevideo, Uruguay | Financial Company | 99.99% | 100.00% | 99.99% | 100.00% |
Controlled | San Martin 344, C.A.B.A., Argentina | Insurance Broker | 95.24% | 100.00% | 95.24% | 100.00% |
18
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Company | Condition | Legal Adress | Principal Activity | Percentage of Participation | |||
---|---|---|---|---|---|---|---|
03/31/2023 | 12/31/2022 | ||||||
Direct | Direct and Indirect | Direct | Direct and Indirect | ||||
Bolsillo Digital S.A.U. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Computer Services | - | 100.00% | - | 100.00% |
Supervielle Agente de Negociación S.A.U. | Controlled | Tres de Febrero 515, Rosario, Santa Fe | Settlement and Clearing Agent | 100.00% | 100.00% | 100.00% | 100.00% |
Dólar IOL S.A.U. | Controlled | Av. Colón 2535, Mar del Plata, Buenos Aires | Services and exchange agency | 100.00% | 100.00% | 100.00% | 100.00% |
(1) | Grupo Supervielle S.A.’s direct and indirect interest in Banco Supervielle S,A votes amounts to 99.87% as of 03/31/23 and 12/31/22 |
2. | CRITICAL ACCOUNTING POLICIES AND ESTIMATES |
The preparation of financial statements in accordance with the accounting framework established by the Argentine Central Bank requires the use of certain critical accounting estimates. It also requires Management to exercise its judgment in the process of applying the accounting standards established by the Argentine Central Bank to establish the Group's accounting policies.
The Group has identified the following areas that involve a higher degree of judgment or complexity, or areas in which the assumptions and estimates are significant for the consolidated financial statements that are essential for understanding the underlying accounting / financial reporting risks:
(a) | Fair value of derivatives and other financial isntruments |
The fair value of financial instruments not listed in active markets is determined by using valuation techniques. Such techniques are regularly validated and reviewed by qualified personnel independent from the area which developed them. All models are assessed and adjusted before being used in order to ensure that results reflect current information and comparable market prices. As long as possible, models rely on observable inputs only; however, certain factors, such as implicit rates in the last available tender for similar securities and spot rate curves, require the use of estimates. Changes in the assumptions of these factors may affect the reported fair value of financial instruments.
(b) | Allowances for loan losses and advances |
The Group recognizes the allowance for loan losses under the expected credit loss method included in IFRS 9. The most significant judgements of the model relate to defining what is considered to be a significant increase in credit risk and in making assumptions and estimates to incorporate relevant information about past events, current conditions and forecasts of economic conditions. The impact of the forecasts of economic conditions are determined based on the weighted average of three internally developed macroeconomic scenarios that take into consideration the Group´s economic outlook as derived through forecast macroeconomic variables, which include Inflation rate, monthly economic activity estimator and private sector wage. A high degree of uncertainty is involved in making estimations using assumptions that are highly subjective and very sensitive to the risk factors.
Note 1.2 provides more detail of how the expected credit loss allowance is measured.
(c) | Impairment of non-financial assets |
Intangible assets with finite lives and property, plants and equipment are amortized or depreciated along their useful lives in a lineal manner. The Group monitores the conditions related to these assets to determine whether events and circumstances justify a review of the amortization and remaining depreciation period and whether there are factors or circumstances that imply an impairment in the value of assets that cannot be recovered.
The Group has applied the judgement in the identification of impairment indicators for property, plant and equipment and intangible assets. The Group has determined that there were no indications of impairment for any of the periods presented in its financial statement; therefore, no recoverable value has been estimated, except for certain real property that, due to the post-pandemic macro context and a devaluation of the dollar well below inflation, generated deterioration.
19
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
(d) | Income tax and deferred tax |
A significant judgement is required to determine liabilities and assets from current and deferred taxes, The current tax is provisioned in accordance with the amounts expected to be paid and the deferred taz is provisioned over temporary differences between tax basis of assets and liabilities and book values to aliquots expected to be in force when reversing them.
Assets from deferred tax are recognized upon the possibility of relying on future taxable earnings against which temporary differences can be utilized, based on the Senior Management´s assumptions regarding amounts and opportunities of future taxable earnings, Later, it is necessary to determine whether assets from deferred tax are likely to be utilized and set off future taxable earnings, Real results may differ from estimates, such as changes in tax legislation or the result of the final review of affidavits issued by tax authorities and tax courts.
Likely future tax earnings and the number of tax benefits are based on a medium term business plan prepared by the administration. Such plan is based on reasonable expactations.
3. | SEGMENT REPORTING |
The Group determines operating segments based on performance reports which are reviewed by the Board and key personnel of the Senior Management and updated upon changes.
Grupo Supervielle´s clients receive the following services:
● | Personal and Business Banking Segment: |
- | Small companies, individuals and companies that record annual sales of up to 500,000 |
- | "Small and Medium Size Companies", companies that record annual sales of over 500,000 up to 5,000,000 |
● | Corporate Baking Segment: |
- | Megras that record annual sales over 5,000,000 up to 7,000,000 |
- | Big Companies. Grandes companies that record annual sales of over 7,000,000 |
Grupo Supervielle considers the business for the type of products and services offered, identifying the following operating segments:
a- | Personal and Business Banking: Through this segment, Grupo Supervielle offers a wide range of financial products and services designed to meet the needs of individuals, entrepreneurs, and small businesses and SMEs. |
Likewise, as of September 2022, IUDU's client and financing portfolio was migrated to the Bank and has been allocated to the Personal and Business Banking segment. The transfer of clients and the back office from IUDU to the bank was completed in the last quarter of 2022.
b- Corporate Banking: Includes advisory services at a corporate and financial level, as well as the administration of assets and loans targeted to corporate clients.
c- Bank Treasury: This segment is in charge of the assignment of liquidity of the Entity in accordance with the different commercial areas´ needs and its own needs, Treasury implements financial risk administration policies of the Bank, administers trading desk operations, distributes financial products, such as negotiable securities and develops business with the financial sector clients and whole sale non-financial sector clients.
d- Consumer Finance: Includes loans and other credit products targeted to middle and low-middle income sectors and non-financial products and services.
e- Insurance: Includes insurance products, with a focus on life insurance, to targeted customers segments
20
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
f- Asset Management and Other Services: Includes MFs administered by Grupo Supervielle. Includes also assets, liabilities and results of InvertirOnline.Com Argentina S.A.U. (renamed as “Portal Integral de Inversiones S.A.U.” with registration pending) and InvertirOnline S.A.U ., IOL Holding S.A., Supervielle Asset Management S.A., Dólar IOL S.A. and Bolsillo Digital S.A.U.
Operating results of the different operating segments of Grupo Supervielle are reviewed individually with the purpose of taking decisions over the allocation of resources and the performance analysis of each segment. The performance of such segments will be evaluated based on operating income and is measured consistently with operating income/(expenses) of the consolidated income statement.
When a transaction is carried out between operating segments, they are taken in an independent and equitable manner, as in cases of transactions with third parties. Later, income, expenses and results from transfers between operating segments are removed from the consolidation.
Grupo Supervielle does not present information by geographical segments because there are no operating segments in economic environments with risks and rewards that are significantly different.
During this period, the Group has made the following grouping changes in its information by segments, which were considered in the information presented for comparative purposes:
i) Within the segment "Personal and Business Banking" the operation of MILA (pledges) previously included in "Consumer" is included in this period, being grouped in this segment together with the portfolio from IUDU that was migrated to Banco Supervielle during the financial year 2022.
ii) Within the "Consumer" segment, only the operations of IUDU and Automatic Card are reflected, operations that are within a merger process of said companies with Banco Supervielle as described in note 15 to these financial statements.
iii) Within the segment “Adm. FCI and Other Segments” includes the operation of Espacio Cordial Servicios (previously in the “Consumer” segment), which is currently not within the same management framework as the operations described in ii).
The following chart includes information by segment as of March 31,2023 and 202, and December 31, 2022 respectively:
Result by segments | Corporate Banking | Bank Treasury | Consumer Finance | Insurance | Asset Management and Other Services | Adjustments | Total as of 03.31.2023 | |
---|---|---|---|---|---|---|---|---|
Interest income | 23,977,429 | 12,172,178 | 52,101,100 | 1,041,655 | 1,789 | 96,928 | 128,659 | 89,519,738 |
Interest expenses | (20,177,817) | (4,189,637) | (40,180,548) | (659,619) | - | (67,337) | 214,313 | (65,060,645) |
Distribution of results by Treasury | 9,487,157 | (3,759,347) | (5,727,810) | - | - | - | - | - |
Net interest income | 13,286,769 | 4,223,194 | 6,192,742 | 382,036 | 1,789 | 29,591 | 342,972 | 24,459,093 |
Services Fee Income | 6,260,499 | 768,333 | 58,470 | 141 | - | 2,035,037 | (193,108) | 8,929,372 |
Services Fee Expenses | (2,438,511) | (151,188) | (64,468) | (18,544) | - | (90,372) | 37,863 | (2,725,220) |
Income from insurance activities | - | - | - | - | 1,510,019 | - | 129,963 | 1,639,982 |
Net Service Fee Income | 3,821,988 | 617,145 | (5,998) | (18,403) | 1,510,019 | 1,944,665 | (25,282) | 7,844,134 |
Subtotal | 17,108,757 | 4,840,339 | 6,186,744 | 363,633 | 1,511,808 | 1,974,256 | 317,690 | 32,303,227 |
Net income from financial instruments at fair value through profit or loss | - | - | 6,639,661 | 96,662 | 499,973 | 287,994 | 19,154 | 7,543,444 |
Income from withdrawal of assets rated at amortized cost | - | - | 48,776 | - | - | - | (59,142) | (10,366) |
Exchange rate difference on gold and foreign currency | 139,373 | 38,530 | 134,846 | 26,778 | 2 | 42,228 | 134,110 | 515,867 |
NIFFI And Exchange Rate Differences | 139,373 | 38,530 | 6,823,283 | 123,440 | 499,975 | 330,222 | 94,122 | 8,048,945 |
Result from exposure to changes in the purchasing power of the currency | 1,222,891 | (690,494) | (3,768,452) | (125,840) | (797,094) | (445,002) | (645,366) | (5,249,357) |
Other operating income | 1,289,807 | 701,777 | 77,564 | 6,290 | 6,734 | 155,729 | (129,220) | 2,108,681 |
Loan loss provisions | (2,940,414) | (7,102) | 560 | - | - | - | - | (2,946,956) |
Net operating income | 16,820,414 | 4,883,050 | 9,319,699 | 367,523 | 1,221,423 | 2,015,205 | (362,774) | 34,264,540 |
Personnel expenses | (10,513,123) | (2,009,217) | (841,572) | (104,379) | (377,917) | (712,880) | (15,928) | (14,575,016) |
Administration expenses | (6,445,049) | (464,197) | (359,154) | (247,788) | (304,611) | (386,334) | 306,149 | (7,900,984) |
Depreciations and impairment of non-financial assets | (2,084,267) | (349,700) | (138,623) | - | (29,772) | (46,269) | (39,339) | (2,687,970) |
Other operating expenses | (4,017,600) | (752,184) | (2,425,246) | (75,505) | (64) | (167,840) | 27,662 | (7,410,777) |
Operating income | (6,239,625) | 1,307,752 | 5,555,104 | (60,149) | 509,059 | 701,882 | (84,230) | 1,689,793 |
21
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Result by segments | Corporate Banking | Bank Treasury | Consumer Finance | Insurance | Asset Management and Other Services | Adjustments | Total as of 03.31.2023 | |
---|---|---|---|---|---|---|---|---|
Result from associates and joint ventures | - | - | - | 7,169 | - | 14,902 | (22,071) | - |
Result before taxes | (6,239,625) | 1,307,752 | 5,555,104 | (52,980) | 509,059 | 716,784 | (106,301) | 1,689,793 |
Income tax | 2,103,658 | (490,067) | (2,151,613) | 14,012 | (245,211) | (363,255) | 218 | (1,132,258) |
Net (loss) / income | (4,135,967) | 817,685 | 3,403,491 | (38,968) | 263,848 | 353,529 | (106,083) | 557,535 |
Net (loss) / income for the period attributable to owners of the parent company | (4,135,967) | 817,685 | 3,403,491 | (38,968) | 263,848 | 353,529 | (106,157) | 557,461 |
Net (loss) / income for the period attributable to non-controlling interest | - | - | - | - | - | - | 74 | 74 |
Other comprehensive (loss) / income | (19,681) | (9,758) | (128,166) | - | - | 31,657 | 41,478 | (84,470) |
Other comprehensive (loss) / income attributable to owners of the parent company | (19,681) | (9,758) | (128,166) | - | - | 31,657 | 41,639 | (84,309) |
Other comprehensive (loss) / income attributable to non-controlling interest | - | - | - | - | - | - | (161) | (161) |
Comprehensive (loss) / income for the period | (4,155,648) | 807,927 | 3,275,325 | (38,968) | 263,848 | 385,186 | (64,605) | 473,065 |
Comprehensive (loss) / income attributable to owners of the parent company | (4,155,648) | 807,927 | 3,275,325 | (38,968) | 263,848 | 385,186 | (64,518) | 473,152 |
Comprehensive (loss) / income attributable to non-controlling interests | - | - | - | - | - | - | (87) | (87) |
Assets by segments | Personal and Business Banking | Corporate Banking | Bank Treasury | Consumer Finance | Insurance | Asset Management and Other Services | Adjustments | Total as of 03.31.2023 |
Cash and due from banks | 23,858,065 | 679,681 | 32,055,507 | 2,128,636 | 2,309 | 544,640 | (1,633,644) | 57,635,194 |
Debt securities at fair value through profit or loss | 76,943 | 1,612,696 | 25,372,295 | 1,225 | - | 107,745 | - | 27,170,904 |
Loans and other financing | 154,504,183 | 83,371,410 | 10,660,079 | 2,340 | 2,184,654 | 255,011 | (1,414,368) | 249,563,309 |
Other debt securities | - | - | 270,137,662 | - | 2,092,372 | 730,133 | 2,182,881 | 275,143,048 |
Other Assets | 18,528,660 | 8,399,236 | 91,047,684 | 14,793,761 | 2,239,110 | 3,352,146 | 13,211,924 | 151,572,521 |
Total Assets | 196,967,851 | 94,063,023 | 429,273,227 | 16,925,962 | 6,518,445 | 4,989,675 | 12,346,793 | 761,084,976 |
| | | | | | | | |
| | | | | | | | |
Liabilities by segments | | | | | | | | |
Deposits | 269,867,958 | 65,380,610 | 238,172,326 | 5,308,587 | - | 22,983 | (2,153,227) | 576,599,237 |
Financing received from the Argentine Central Bank and others financial institutions | 32,850 | 63 | 5,103,578 | 347,390 | - | 377,697 | (733,586) | 5,127,992 |
Unsubordinated debt securities | - | - | - | - | - | - | - | - |
Other liabilities | 24,887,154 | 5,509,930 | 11,013,909 | 1,052,780 | 2,669,840 | 1,655,508 | 19,324,465 | 66,113,586 |
Total Liabilities | 294,787,962 | 70,890,603 | 254,289,813 | 6,708,757 | 2,669,840 | 2,056,188 | 16,437,652 | 647,840,815 |
| | | | | | | | |
Result by segments | Personal and Business Banking | Corporate Banking | Bank Treasury | Consumer Finance | Insurance | Asset Management and Other Services | Adjustments | Total as of 03.31.2022 | |||
---|---|---|---|---|---|---|---|---|---|---|---|
Interest income | 18,404,663 | 11,183,185 | 29,247,022 | 4,638,871 | 970 | 8,329 | (1,289,719) | 62,193,321 | |||
Interest expenses | (10,911,681) | (1,875,728) | (23,128,568) | (2,765,025) | - | - | 1,431,146 | (37,249,856) | |||
Distribution of results by Treasury | 4,754,775 | (6,409,720) | 1,654,945 | - | - | - | - | - | |||
Net interest income | 12,247,757 | 2,897,737 | 7,773,399 | 1,873,846 | 970 | 8,329 | 141,427 | 24,943,465 | |||
Services Fee Income | 6,398,375 | 688,083 | 50,531 | 1,281,076 | - | 1,861,384 | (414,140) | 9,865,309 | |||
Services Fee Expenses | (2,309,832) | (194,437) | (158,661) | (813,803) | - | (113,589) | 48,229 | (3,542,093) | |||
Income from insurance activities | - | - | - | - | 1,270,383 | - | 167,196 | 1,437,579 | |||
Net Service Fee Income | 4,088,543 | 493,646 | (108,130) | 467,273 | 1,270,383 | 1,747,795 | (198,715) | 7,760,795 | |||
Subtotal | 16,336,300 | 3,391,383 | 7,665,269 | 2,341,119 | 1,271,353 | 1,756,124 | (57,288) | 32,704,260 | |||
Net income from financial instruments at fair value through profit or loss | - | 658,380 | 4,640,109 | 426,481 | 436,684 | 456,329 | 114,944 | 6,732,927 | |||
Income from withdrawal of assets rated at amortized cost | - | - | 254,754 | - | - | - | (5,124) | 249,630 | |||
Exchange rate difference on gold and foreign currency | 224,671 | 47,816 | 584,876 | (3,824) | - | 23,492 | 83,046 | 960,077 | |||
NIFFI And Exchange Rate Differences | 224,671 | 706,196 | 5,479,739 | 422,657 | 436,684 | 479,821 | 192,866 | 7,942,634 | |||
Result from exposure to changes in the purchasing power of the currency | (1,466,892) | (469,073) | (2,433,431) | 375,017 | (551,190) | (412,544) | (633,481) | (5,591,594) | |||
Other operating income | 2,089,535 | 752,124 | (38,391) | 186,656 | 9,042 | 51,182 | (96,721) | 2,953,427 |
22
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Result by segments | Personal and Business Banking | Corporate Banking | Bank Treasury | Consumer Finance | Insurance | Asset Management and Other Services | Adjustments | Total as of 03.31.2022 | |||
---|---|---|---|---|---|---|---|---|---|---|---|
Loan loss provisions | (2,968,484) | 106,412 | 348,217 | (1,826,566) | - | - | - | (4,340,421) | |||
Net operating income | 14,215,130 | 4,487,042 | 11,021,403 | 1,498,883 | 1,165,889 | 1,874,583 | (594,624) | 33,668,306 | |||
Personnel expenses | (10,723,692) | (1,714,826) | (1,047,075) | (1,744,768) | (328,321) | (957,513) | (12,243) | (16,528,438) | |||
Administration expenses | (5,268,294) | (575,769) | (508,233) | (1,165,969) | (278,395) | (604,470) | 384,759 | (8,016,371) | |||
Depreciations and impairment of non-financial assets | (1,537,991) | (565,959) | (440,141) | (104,628) | (32,514) | (31,020) | (55,160) | (2,767,413) | |||
Other operating expenses | (3,688,437) | (1,409,425) | (929,431) | (563,004) | (10,552) | (151,766) | (12,230) | (6,764,845) | |||
Operating income | (7,003,284) | 221,063 | 8,096,523 | (2,079,486) | 516,107 | 129,814 | (289,498) | (408,761) | |||
Result from associates and joint ventures | - | - | - | (34,453) | - | 10,897 | 23,556 | - | |||
Result before taxes from continuing operations | (7,003,284) | 221,063 | 8,096,523 | (2,113,939) | 516,107 | 140,711 | (265,942) | (408,761) | |||
Income tax | 2,678,342 | 20,240 | (2,371,380) | 49,393 | (297,801) | (162,812) | (52,934) | (136,952) | |||
Net (loss) / income | (4,324,942) | 241,303 | 5,725,143 | (2,064,546) | 218,306 | (22,101) | (318,876) | (545,713) | |||
Net (loss) / income for the period attributable to owners of the parent company | (4,324,942) | 241,303 | 5,725,143 | (2,064,546) | 218,306 | (22,101) | (318,328) | (545,165) | |||
Net (loss) / income for the period attributable to non-controlling interest | - | - | - | - | - | - | (548) | (548) | |||
Other comprehensive (loss) / income | 8,272 | 3,442 | (267,321) | - | - | 17,823 | (29,074) | (266,858) | |||
Other comprehensive (loss) / income attributable to owners of the parent company | 8,272 | 3,442 | (267,321) | - | - | 17,823 | (28,812) | (266,596) | |||
Other comprehensive (loss) / income attributable to non-controlling interest | - | - | - | - | - | - | (262) | (262) | |||
Comprehensive (loss) / income for the period | (4,316,670) | 244,745 | 5,457,822 | (2,064,546) | 218,306 | (4,278) | (347,950) | (812,571) | |||
Comprehensive (loss) / income attributable to owners of the parent company | (4,316,670) | 244,745 | 5,457,822 | (2,064,546) | 218,306 | (4,278) | (347,140) | (811,761) | |||
Comprehensive (loss) / income attributable to non-controlling interests | - | - | - | - | - | - | (810) | (810) | |||
| | | | | | | |
Personal and Business Banking | Corporate Banking | Bank Treasury | Consumer Finance | Insurance | Asset Management and Other Services | Adjustments | Total as of 12.31.2022 | |||||||
| | | | | | | | | ||||||
Cash and due from banks | 22,780,405 | 930,447 | 34,630,213 | 267,575 | 2,466 | 460,022 | (153,315) | 58,917,813 | ||||||
Debt securities at fair value through profit or loss | 88,793 | 1,969,600 | 18,467,015 | 959,768 | - | 34,641 | - | 21,519,817 | ||||||
Loans and other financing | 175,608,413 | 100,287,762 | 8,006,792 | 68,381 | 2,143,283 | 223,126 | (1,817,102) | 284,520,655 | ||||||
Other debt securities | - | - | 333,103,732 | 1 | 1,403,614 | 239,726 | 2,671,761 | 337,418,834 | ||||||
Other Assets | 19,524,183 | 6,294,870 | 78,699,256 | 15,852,534 | 2,622,481 | 3,747,488 | 19,887,489 | 146,628,301 | ||||||
Total Assets | 218,001,794 | 109,482,679 | 472,907,008 | 17,148,259 | 6,171,844 | 4,705,003 | 20,588,833 | 849,005,420 | ||||||
| | | | | | | | | ||||||
| | | | | | | | | ||||||
Liabilities by segments | Personal and Business Banking | Corporate Banking | Bank Treasury | Consumer Finance | Insurance | Asset Management and Other Services | Adjustments | Total as of 12.31.2022 | ||||||
Deposits | 298,346,348 | 77,404,180 | 286,319,782 | 4,957,226 | - | 85,020 | (607,291) | 666,505,265 | ||||||
Financing received from the Argentine Central Bank and others financial institutions | 43,101 | 107 | 6,688,205 | 360,876 | - | 592,370 | (953,254) | 6,731,405 | ||||||
Unsubordinated debt securities | 15,672 | 5,322 | 662,422 | - | - | - | - | 683,416 | ||||||
Other liabilities | 23,076,402 | 4,722,026 | 6,542,114 | 1,575,814 | 2,587,090 | 1,579,387 | 21,895,663 | 61,978,496 | ||||||
Total Liabilities | 321,481,523 | 82,131,635 | 300,212,523 | 6,893,916 | 2,587,090 | 2,256,777 | 20,335,118 | 735,898,582 | ||||||
| | | | | | | | |
4. | FAIR VALUES |
The Group classifies the fair values of financial instruments into 3 levels, according to the quality of the data used for their determination.
Fair Value level 1: The fair value of financial instruments traded in active markets (such as publicly-traded derivatives, debt securities or available for sale) is based on market quoted prices as of the date of the reporting period. If the quoted
23
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
price is available and there is an active market for the instrument, it will be included in Level 1. Otherwise, it will be included in Level 2.
Fair Value level 2: The fair value of financial instruments which are not traded in active markets, such as over-the-counter derivatives, is determined using valuation techniques that maximize the use of observable market data and rely the least possible on Grupo Supervielle’s specific estimates. If all significant inputs required to determine fair value a financial instrument are observable, such instrument is included in level 2. If the inputs used to determine the price are not observable, the instrument will be included in Level 3.
Fair Value level 3: If one or more significant inputs are not based on observable market data, the instrument is included in Level 3.
Grupo Supervielle’s financial instruments measured at fair value as of March 31, 2023 and December 31,2022 are detailed below:
Instrument portfolio as of 03/31/2023 | FV level 1 | FV level 2 | FV level 3 |
Assets | | | |
- Debt securities at fair value through profit or loss | 27,167,830 | 3,074 | - |
- Derivatives | 625,771 | - | - |
- Other financial assets | 13,249,602 | - | - |
- Other debt securities | 6,087,830 | 211,892,215 | - |
- Financial assets pledged as collateral | 20,295,293 | - | - |
- Investments in Equity Instruments | 168,984 | - | 260,658 |
Total Assets | 67,595,310 | 211,895,289 | 260,658 |
Liabilities | | | |
- Liabilities at fair value through profit or loss | 2,071,154 | - | - |
- Derivatives | 625 | - | - |
- Other financial liabilities | 27,892,053 | - | - |
Total Liabilities | 29,963,832 | - | - |
Instrument portfolio as of 12/31/2022 | FV level 1 | FV level 2 | FV level 3 |
---|---|---|---|
Assets | | | |
- Debt securities at fair value through profit or loss | 21,488,589 | 31,228 | - |
- Derivatives | 359,786 | - | - |
- Other financial assets | 7,257,856 | - | - |
- Other debt securities | 9,244,724 | 246,071,503 | - |
- Financial assets pledged as collateral | 17,507,255 | - | - |
- Investments in Equity Instruments | 327,411 | - | 284,367 |
Total Assets | 56,185,621 | 246,102,731 | 284,367 |
Liabilities | | | |
- Liabilities at fair value through profit or loss | 2,604,062 | - | - |
- Other financial liabilities | 21,684,597 | - | - |
Total Liabilities | 24,288,659 | - | - |
Below is shown the reconcilation of the financial instruments classiffied as Fair Value Level 3:
FV level 3 | 12/31/2022 | Transfers | Additions | Disposals | P/L | 03/31/2023 |
---|---|---|---|---|---|---|
Assets | | | | | | |
- Debt securities at fair value through profit or loss | 284,367 | - | 92,435 | (116,144) | (23,709) | 260,658 |
The Group's policy is to recognize transfers between levels of fair values only at year-end dates.
Valuation Techniques
Valuation techniques to determine fair values include the following:
24
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
The Group uses valuation techniques using spot rate curves that estimate yield curves based on market prices market. They are detailed below:
The Group periodically evaluates the performance of the models based on indicators which have defined
tolerance thresholds.
Under IFRS, the estimated residual value of an instrument at inception is generally the transaction price.In the event that the transaction price differs from the determined fair value, the difference will be recognized in the income statement proportionally for the duration of the instrument. As of December 31, 2022, no differences have been recorded with respect to the transaction price.
Fair Value of Other Financial Instruments
The following describes the methodologies and assumptions used to determine the fair values of financial instruments not recorded at their value in these financial statements:
For listed assets and the quoted debt, fair value was determined based on market prices.
The following chart includes a comparison between the fair value and the accounting value of financial instruments not recorded at fair value as of March 31, 2023 and December 31, 2022 :
Other Financial Instruments as of 03/31/2023 | Accounting value | Fair value | FV Level 1 | FV Level 2 | FV Level 3 |
---|---|---|---|---|---|
Financial Assets |
|
|
|
|
|
-Cash and due from Banks | 57,635,194 | 57,635,194 | 57,635,194 | - | - |
-Other financial assets | 2,197,454 | 2,197,454 | 2,197,454 | - | - |
-Loans and other financing | 249,563,309 | 240,309,462 | - | - | 240,309,462 |
- Repo transactions | 25,046,379 | 25,046,379 | 25,046,379 | - | - |
- Other Debt Securities | 57,163,003 | 54,979,546 | 49,932,913 | 5,046,633 | - |
-Financial assets in as guarantee | 92,945 | 92,945 | 92,945 | - | - |
391,698,284 | 380,260,980 | 134,904,885 | 5,046,633 | 240,309,462 | |
Financial Liabilities | | | | | |
-Deposits | 576,599,237 | 572,584,105 | - | - | 572,584,105 |
- Other financial liabilities | 458,956 | 458,956 | 458,956 | - | - |
-Financing received from the BCRA and other financial institutions | 5,127,992 | 8,582,813 | - | - | 8,582,813 |
582,186,185 | 581,625,874 | 458,956 | - | 581,166,918 |
25
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Other Financial Instruments as of 12/31/2022 | Accounting value | Fair value | FV Level 1 | FV Level 2 | FV Level 3 |
Financial Assets | | | | | |
-Cash and due from Banks | 58,917,813 | 58,917,813 | 58,917,813 | - | - |
-Other financial assets | 2,611,132 | 2,611,132 | 2,611,132 | - | - |
-Loans and other financing | 284,520,655 | 285,478,356 | - | - | 285,478,356 |
- Repo transactions | 26,271,593 | 26,271,593 | 26,271,593 | | - |
- Other Debt Securities | 82,102,607 | 83,741,140 | 83,741,140 | - | - |
-Financial assets pledged as collateral | 105,792 | 105,792 | 105,792 | - | - |
454,529,592 | 457,125,826 | 171,647,470 | - | 285,478,356 | |
Financial Liabilities | | | | | |
-Deposits | 666,505,265 | 684,157,850 | - | - | 684,157,850 |
-Other financial liabilities | 355,633 | 355,633 | 355,633 | - | - |
-Finances received from the BCRA and other financial institutions | 6,731,405 | 10,567,919 | - | - | 10,567,919 |
- Unsubordinated debt securities | 683,416 | 683,416 | 683,416 | - | - |
| 674,275,719 | 695,764,818 | 1,039,049 | - | 694,725,769 |
5. | CASH AND DUE FROM BANKS |
The cash and bank deposits item includes available cash, freely available deposits in local banks and foreign correspondent banks, which are liquid short-term instruments and have a maturity of less than three months from the date of origination.
Assets recorded in cash and bank deposits are recorded at their amortized cost, which approximates their fair value.
The cash equivalent is made up of highly liquid short-term government securities, with original maturities of three months or less, measured at fair value.
The composition of the cash on each of the indicated dates is detailed below:
Item | 03/31/2023 | 12/31/2022 | 03/31/2022 | 12/31/2021 |
Cash and due from banks | 57,635,194 | 58,917,813 | 60,126,259 | 77,241,811 |
Debt securities at fair value through profit or loss | 5,689,797 | 6,829,805 | 20,545,723 | 24,670,024 |
Money Market Funds | 403,402 | 224,808 | 5,131,481 | 3,447,946 |
Cash and cash equivalents | 63,728,393 | 65,972,426 | 85,803,463 | 105,359,781 |
For their part, the reconciliations between the balances of those items considered cash equivalents in the Statement of Cash Flow and those reported in the Statement of Financial Position as of the indicated dates are set out below:
Items | 03/31/2023 | 12/31/2022 | 03/31/2022 | 12/31/2021 |
---|---|---|---|---|
Cash and due from Banks | | | | |
As per Statement of Financial Position | 57,635,194 | 58,917,813 | 60,126,259 | 77,241,811 |
As per the Statement of Cash Flows | 57,635,194 | 58,917,813 | 60,126,259 | 77,241,811 |
Debt securities at fair value through profit or loss | | | - | - |
As per Statement of Financial Position | 27,170,904 | 21,519,817 | 50,155,942 | 53,293,688 |
Securities not considered as cash equivalents | (21,481,107) | (14,690,012) | (29,610,219) | (28,623,664) |
As per the Statement of Cash Flows | 5,689,797 | 6,829,805 | 20,545,723 | 24,670,024 |
Money Market Funds | | | - | - |
As per Statement of Financial Position – Other financial assets | 15,447,056 | 9,868,988 | 21,607,139 | 32,943,485 |
Other financial assets not considered as cash | (15,043,654) | (9,644,180) | (16,475,658) | (29,495,539) |
As per the Statement of Cash Flow | 403,402 | 224,808 | 5,131,481 | 3,447,946 |
Reconciliation of financing activities at March 31, 2023 is as follows:
Items | Balances at 12/31/2022 | Cash Flows | Other non-cash movements | Balances at 03/31/2023 | |
---|---|---|---|---|---|
Collections | Payments | ||||
Unsubordinated debt securities | 683,416 | - | (683,416) | - | - |
26
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Items | Balances at 12/31/2022 | Cash Flows | Other non-cash movements | Balances at 03/31/2023 | |
---|---|---|---|---|---|
Collections | Payments | ||||
Financing received from the Argentine Central Bank and other financial institutions | 6,731,405 | 34,866,029 | (36,469,442) | - | 5,127,992 |
Lease Liabilities | 1,909,325 | - | (494,133) | 321,687 | 1,736,879 |
Total | 9,324,146 | 34,866,029 | (37,646,991) | 321,687 | 6,864,871 |
6. | RELATED PARTY TRANSACTIONS |
Related parties are considered to be all those entities that directly, or indirectly through other entities, control over another, are under the same control or may exercise significant influence over the financial or operational decisions of another entity.
The Group controls another entity when it has power over the financial and operating decisions of other entities and in turn obtains benefits from it, On the other hand, the Group considers that it has joint control when there is an agreement between the parties regarding the control of a common economic activity.
Finally, those cases in which the Group has significant influence is due to the power to influence the financial and operating decisions of another entity but not being able to exercise control over them, For the determination of such situations, not only the legal aspects are observed but also the nature and substance of the relationship.
Additionally, related parties are considered to be the key personnel of the Group's Management (members of the Board and managers of the Group and its subsidiaries), as well as the entities over which key personnel may exercise significant influence or control.
Controlling Entity
Mr. Julio Patricio Supervielle is the main shareholder of the Groups, with registered address on Bartolomé Mitre 434, , Autonomous City of Buenos Aires, Julio Patricio Supervielle´s interest in the capital and votes of the Group as of Marchr 31, 2023 and December 31, 2022 amounts to the 29.86% and 35.12% respectively.
Transactions with related parties
The financings, including those that were restructured, were granted in the normal course of business and on substantially the same terms, including interest rates and guarantees, as those in force at the time to grant credit to non-related parties, Likewise, they did not imply a risk of bad debts greater than normal nor did they present any other type of unfavorable conditions.
The following table presents the aggregate amounts of total consolidated financial exposure of the Bank to related parties, the number of recipients, the average amounts and the single largest exposures as of Marchr 31, 2023 and December 31, 2022:
| As of March 31, 2023 | As of December 31, 2022 |
Aggregate total financial exposure | 1,704,964 | 673,747 |
Number of recipient related parties | 80 | 80 |
(a) Individuals | 69 | 70 |
(b) Companies | 11 | 10 |
Average total financial exposure | 21,312 | 8,422 |
Single largest exposure | 1,179,297 | 358,255 |
7. | COMPOSITION OF THE MAIN ITEMS OF THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND CONSOLIDATED INCOME STATEMENT |
| 03/31/2023 | 12/31/2022 | |||
---|---|---|---|---|---|
7.1 Debt securities at fair value through profit or loss | | | |||
Goverment securities | 24,481,275 | 19,166,897 | |||
Corporate securities | 2,689,629 | 2,352,920 | |||
| 27,170,904 | 21,519,817 | |||
7.2 Derivatives | | | |||
Debtor balances related to forward operations in foreign currency to be settled in pesos | 409,006 | 251,750 | |||
Debtor balances related to forward operations in foreign currency | 42,821 | 67,803 |
27
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
| 03/31/2023 | 12/31/2022 | ||||
---|---|---|---|---|---|---|
Sales options | 173,944 | 40,233 | ||||
| 625,771 | 359,786 | ||||
7.3 Repo Trasactions | | | ||||
Financial debtors from cash sales to be settled and active repos | 77,802 | 43,968 | ||||
Financial debtors for active repos of government securities | 1,252,817 | 817,714 | ||||
Financial debtors for active repos of I.R.M. with Argentine Central Bank | 23,648,534 | 25,309,658 | ||||
Accrued interest receivable for active repos | 67,226 | 100,253 | ||||
| 25,046,379 | 26,271,593 | ||||
7.4 Other financial assets | | | ||||
Participation Certificates in Financial Trusts | 228,869 | 192,825 | ||||
Investments in Asset Management and Other Services | 2,231,254 | 2,634,512 | ||||
Other investments | 1,148,939 | 1,254,650 | ||||
Receivable from spot sales peading settlament | 9,431,860 | 2,915,874 | ||||
Several debtors | 2,204,509 | 2,849,246 | ||||
Miscellaneous debtors for credit card operations | 290,739 | 203,416 | ||||
Allowances | (89,114) | (181,535) | ||||
| 15,447,056 | 9,868,988 | ||||
7.5 Loans and other financing | | | ||||
Non‑financial public sector | 392,410 | 338,053 | ||||
Financial sector | 2,281,956 | 784,605 | ||||
Loans | 2,289,012 | 791,344 | ||||
Less: allowances | (7,056) | (6,739) | ||||
Non‑financial private sector and foreign residents: | 246,888,943 | 283,397,997 | ||||
Loans | 244,944,774 | 282,659,847 | ||||
Overdrafts | 13,491,737 | 17,156,475 | ||||
Promissory notes | 75,319,528 | 91,598,802 | ||||
Mortgage loans | 2,946,268 | 3,663,582 | ||||
Automobile and other secured loans | 8,133,380 | 8,821,958 | ||||
Personal loans | 39,151,886 | 43,942,671 | ||||
Credit card loans | 51,971,647 | 60,270,298 | ||||
Foreign trade loans and U$S loans | 13,081,526 | 13,559,027 | ||||
Others | 9,556,473 | 10,715,652 | ||||
Interest and price differences accrued receivable | 35,583,898 | 37,785,463 | ||||
(documented interests) | (4,268,912) | (5,010,484) | ||||
IFRS adjustments | (22,657) | 156,403 | ||||
Receivables from financial leases | 11,873,637 | 13,121,576 | ||||
Others | 3,100,606 | 2,476,780 | ||||
Less: allowances | (13,030,074) | (14,860,206) | ||||
| 249,563,309 | 284,520,655 | ||||
| | | ||||
7.6 Other debt securities | | | ||||
Debt securities | - | 6,888,796 | ||||
Debt securities of financial trusts | 6,155,213 | - | ||||
Goverment securities | 57,125,027 | 54,051,943 | ||||
Securities issued by the Argentine Central Bank | 211,900,212 | 276,525,293 | ||||
Others | 48 | 59 | ||||
Allowance | (37,452) | (47,257) | ||||
| 275,143,048 | 337,418,834 | ||||
7.7 Financial assets pledged as collateral | | | ||||
Special guarantees accounts in the Argentine Central Bank | 11,513,452 | 12,531,877 | ||||
Deposits in guarantee | 8,874,786 | 5,081,170 | ||||
| 20,388,238 | 17,613,047 | ||||
7.8 Other non-financial assets | | | ||||
Other Miscellaneous assets | 2,763,940 | 3,007,936 | ||||
Loans to employees | 171,681 | 1,047,044 | ||||
Payments in advance | 2,419,242 | 1,622,852 | ||||
Works of art and collector's pieces | 100,387 | 100,679 | ||||
Retirement insurance | 143,437 | 151,640 | ||||
Other non-financial assets | 144,488 | 167,227 | ||||
| 5,743,175 | 6,097,378 | ||||
| | | ||||
| | |
28
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
| 03/31/2023 | 12/31/2022 | |||
---|---|---|---|---|---|
7.9 Inventories | | | |||
Electronics | - | 81,670 | |||
| - | 81,670 | |||
| | | |||
7.10 Deposits | | | |||
Non-financial sector | 28,233,174 | 33,894,081 | |||
Financial sector | 57,697 | 123,473 | |||
Current accounts | 51,015,193 | 61,565,081 | |||
Savings accounts | 218,942,714 | 217,701,069 | |||
special checking accounts | 93,222,093 | 112,423,051 | |||
Fixed term and term investments | 154,156,498 | 183,505,345 | |||
Investment accounts | 16,778,571 | 39,414,098 | |||
Others | 7,107,544 | 7,701,307 | |||
Interest and Adjustments | 7,085,753 | 10,177,760 | |||
| 576,599,237 | 666,505,265 | |||
7.11 Liabilities at fair value through profit and loss | | | |||
Liabilities for transactions in local currency | 1,810,208 | 1,546,114 | |||
Liabilities for transactions in foreign currency | 260,946 | 1,057,948 | |||
| 2,071,154 | 2,604,062 | |||
| | | |||
7.12 Other financial liabilities | | | |||
Amounts payable for spot transactions pending settlement | 237 | 2,511,000 | |||
Collections and other operations on behalf of third parties | 9,214,878 | 17,513,522 | |||
Fees accrued to pay | 17,048,629 | 4,480 | |||
Financial guarantee contracts | 7,755 | 29,705 | |||
Liabilities associated with the transfer of financial assets not derecognised | 1,736,879 | - | |||
Lease liability | 22,608 | 1,909,326 | |||
Others | 320,023 | 72,197 | |||
| 28,351,009 | 22,040,230 | |||
7.13 Financing received from the Argentine Central Bank and other financial institutions | | | |||
Financing received from local financial institutions | 2,349,080 | 4,649,241 | |||
Financing received from international institutions | 2,778,912 | 2,082,164 | |||
| 5,127,992 | 6,731,405 | |||
7.14 Provisions | | | |||
Provisions for unutilized balances | 53,824 | 6,695 | |||
Eventual commitments | 82 | 99 | |||
Other contingencies | 2,129,177 | 2,052,499 | |||
| 2,183,083 | 2,059,293 | |||
7.15 Other non-financial liabilities | | | |||
Payroll and social securities | 11,398,370 | 13,778,681 | |||
Sundry creditors | 10,586,398 | 11,207,693 | |||
Tax payable | 9,190,896 | 8,625,941 | |||
Planned payment orders pending settlement | 1,653,674 | 910,636 | |||
Revenue from contracts with customers (1) | 352,413 | 399,297 | |||
Contribution to the deposit guarantee fund | 79,921 | 79,942 | |||
Others non- financial liabilities | 23,449 | 51,122 | |||
| 33,285,121 | 35,053,312 | |||
| | |
| | ||
---|---|---|---|
| 03/31/2023 | 03/31/2022 | |
7.16 Interest income | | | |
Interest on overdrafts | 3,217,636 | 1,813,845 | |
Interest on promissory notes | 5,145,581 | 6,948,774 | |
Interest on personal loans | 7,234,584 | 10,230,781 | |
Interest on promissory notes | 7,439,920 | 3,689,347 | |
Interest on credit card loans | 4,934,490 | 4,066,549 | |
Interest on mortgage loans | 4,960,866 | 4,294,561 | |
Interest on automobile and other secured loan | 1,167,516 | 1,289,556 | |
Interest on foreign trade loans and USD loans | 370,856 | 484,145 | |
Interest on financial leases | 1,616,131 | 1,157,174 | |
Interest on public and private securities measured at amortized cost | 46,914,902 | 24,219,894 | |
Others | 6,517,256 | 3,998,695 |
29
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
| | ||
---|---|---|---|
| 03/31/2023 | 03/31/2022 | |
89,519,738 | 62,193,321 | ||
7.17 Interest Expenses | | | |
Interest on current accounts deposits | 31,206,624 | 13,557,039 | |
Interest on time deposits | 33,113,201 | 22,902,338 | |
Interest on other liabilities from financial transactions | 333,772 | 581,399 | |
Interest on financing from the financial sector | 281,840 | 122,419 | |
Others | 125,208 | 86,661 | |
65,060,645 | 37,249,856 | ||
7.18 Net income from financial instruments at fair value through profit or loss | | | |
Income from corporate and government securities | 7,049,968 | 6,146,904 | |
Income from securities issued by the Argentine Central Bank | 96,662 | 426,482 | |
Derivatives | 396,814 | 159,541 | |
7,543,444 | 6,732,927 | ||
7.19 Service Fees Income | | | |
Commissions from deposit accounts | 3,836,337 | 4,034,883 | |
Commissions from credit and debit cards | 2,177,896 | 3,000,076 | |
Commissions from loans operations | 47,303 | 123,355 | |
Commissions from miscellaneous operations | 2,810,990 | 2,656,100 | |
Others | 56,846 | 50,895 | |
8,929,372 | 9,865,309 | ||
7.20 Services Fees expenses | | | |
Commissions paid | 2,669,596 | 3,423,535 | |
Export and foreign currency operations | 55,624 | 118,558 | |
2,725,220 | 3,542,093 | ||
7.21 Other operating incomes | | | |
Loans recovered and allowances reversed | 581,608 | 1,566,373 | |
Rental from safety boxes | 204,079 | 236,005 | |
Commissions from trust services | 14,496 | 3,771 | |
Adjust other credits | 183,241 | 108,138 | |
Sales of property. plant and equipment | 5,062 | 11,656 | |
Default interests | 283,767 | 176,634 | |
Others | 836,428 | 850,850 | |
2,108,681 | 2,953,427 | ||
7.22 Personnel expenses | | | |
Payroll and social securities | 13,811,535 | 15,153,453 | |
Personnel expenses | 763,481 | 1,374,985 | |
14,575,016 | 16,528,438 | ||
| | | |
7.23 Administration expenses | | | |
Directors´ and statutory auditors´fees | 198,262 | 197,974 | |
Other fees | 2,544,476 | 2,362,583 | |
Advertising and publicity | 360,216 | 522,332 | |
Taxes | 1,800,038 | 1,836,536 | |
Maintenance. security and services | 1,950,614 | 2,014,145 | |
Rent | 5,812 | 28,722 | |
Others | 1,041,566 | 1,054,079 | |
7,900,984 | 8,016,371 | ||
7.24 Depreciation and impairment of non-financial assets | | | |
Depreciation of property. plant and equipment (Schedule F) | 478,175 | 519,034 | |
Depreciation of other non-financial assets | 304,281 | 207,390 | |
Amortization of intangible assets (Schedule G) | 1,385,115 | 1,445,276 | |
Depreciation of rent asstes by right of use (Schedule F) | 516,885 | 595,713 | |
Impairment of furniture and facilities | 3,514 | - | |
2,687,970 | 2,767,413 | ||
7.25 Other operating expenses | | | |
Promotions related with credit cards | 360,110 | 674,230 | |
Turnover tax | 5,559,962 | 4,625,034 | |
Result by initial recognition of loans | 28,929 | 45,928 | |
Balance adjustments loans and credit cards | 154,995 | 104,911 |
30
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
| | ||
---|---|---|---|
| 03/31/2023 | 03/31/2022 | |
Interests for leases liabilities | 157,699 | 187,150 | |
Coverage services | 1,522 | 6,944 | |
Contributions made to deposit insurance fund | 245,573 | 283,966 | |
Others provisions | 675,026 | 605,498 | |
Others | 226,961 | 231,184 | |
| 7,410,777 | 6,764,845 |
8. | CONSIDERATIONS OF RESULTS |
The Shareholders' General Meeting held on April 27, 2023 approved the financial statements as of December 31, 2022 and the treatment of the results corresponding to the year ended on that date. Given that the unallocated results were negative, it was approved to absorb them with an optional reserve, legal reserve and share premium.
9. | INSURANCE |
9.1 Income from insurances activities
The composition of the item “Result for insurance activities” as of March 31, 2023 and December 31, 2022 is as follows:
Items | 03/31/2023 | 12/31/2022 | |
Accrued premiums | | 2,147,255 | 2,117,335 |
Accrued claims | | (299,862) | (381,415) |
Production expenses | | (207,411) | (298,341) |
Total | | 1,639,982 | 1,437,579 |
10. | ASSET MANAGEMENT AND OTHER SERVICES |
As of March 31, 2023 and December 31, 2022, Banco Supervielle S.A. is the depository of the Asset managed by Supervielle Asset Management S.A. In accordance with CNV General Resolution No, 622/13, below are the portfolio, net worth and number of units of the Mutual Funds mentioned earlier.
Asset Management and Other Services | Portfolio | Net Worth | Number of Units | |||
| 03/31/2023 | 12/31/2022 | 03/31/2023 | 12/31/2022 | 03/31/2023 | 12/31/2022 |
Premier Renta CP en Pesos | 117,451,355 | 123,755,068 | 117,265,226 | 123,592,503 | 16,188,291,202 | 16,191,115,975 |
Premier Renta Plus en Pesos | 699,261 | 817,051 | 682,459 | 814,665 | 18,736,035 | 21,721,110 |
Premier Renta Fija Ahorro | 16,777,764 | 15,709,610 | 15,847,066 | 15,552,320 | 897,780,820 | 712,483,562 |
Premier Renta Fija Crecimiento | 304,632 | 250,669 | 303,029 | 250,010 | 6,063,808 | 4,920,585 |
Premier Renta Variable | 1,017,215 | 729,678 | 995,147 | 711,216 | 8,234,695 | 5,946,886 |
Premier Abierto Pymes | 1,486,074 | 1,561,337 | 1,476,639 | 1,505,093 | 77,002,268 | 75,458,259 |
Premier Commodities | 1,099,043 | 1,276,324 | 836,893 | 978,811 | 21,869,064 | 24,979,798 |
Premier Capital | 16,113,941 | 8,142,366 | 12,711,543 | 8,096,409 | 755,396,694 | 476,377,885 |
Premier Inversión | 1,449,471 | 1,539,160 | 1,448,755 | 1,538,419 | 1,020,086,924 | 1,052,023,732 |
Premier Balanceado | 1,286,069 | 2,056,712 | 1,284,902 | 1,668,690 | 78,852,343 | 102,340,389 |
Premier Renta Mixta | 3,062,141 | 4,632,346 | 3,048,164 | 4,621,104 | 418,818,657 | 616,247,881 |
Premier Renta Mixta en Dólares | 290,285 | 344,996 | 287,777 | 289,581 | 2,570,035 | 2,569,639 |
Premier Performance Dólares | 863,122 | 660,021 | 853,717 | 653,767 | 5,799,104 | 4,468,523 |
Premier Global USD | 164,056 | 80,643 | 162,175 | 79,564 | 681,283 | 321,553 |
Premier Estratégico | 1,758,037 | 1,784,577 | 1,756,407 | 1,783,002 | 832,710,848 | 832,710,848 |
11. | ADDITIONAL INFORMATION REQUIRED BY THE BCRA |
11.1. Contribution to the deposit insurance system
Law No. 24485 and Decree No. 540/95 established the creation of the Deposit Insurance System to cover the risk attached to bank deposits, in addition to the system of privileges and safeguards envisaged in the Financial Institutions Law.
31
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
The National Executive Branch through Decree No. 1127/98 dated September 24, 1998, established the maximum amount for this insurance system to demand deposits and time deposits denominated either in Pesos and/or in foreign currency. Such limit was set at $1,000 as from March 1, 2019 and increased to 1,500 as of May 1, 2020.
This regime does not include deposits made by other financial institutions (including time deposit certificates acquired through a secondary transaction), deposits made by persons directly or indirectly related to the entity, deposits of securities, acceptances or guarantees, and those set up after July 1, 1995 at an interest rate higher than that periodically set forth by the Argentine Central Bank on the basis of the daily survey carried out by that agency (*). Excluded from the regime are also the deposits whose ownership was acquired through endorsement and placements offering incentives additional to the interest rate. The system has been implemented through the creation of the so-called “Deposit Guarantee Fund" (F,G,D,), which is managed by the company Seguros de Depósitos S.A. (SEDESA) and whose shareholders are the Central Bank and the financial institutions in the proportion determined for each of them by that agency on the basis of contributions made to such fund.
(*) Enforced on January 20, 2019, pursuant to provision “A” 6435, such exclusions are as follows: Sight deposits with agreed-upon rates exceeding reference rates and term deposits and investments exceeding 1,3 times such rate. Reference rates are released on a regular basis by the Argentine Central Bank in accordance with a mobile average of the last five banking business days of passive rates that may arise for term deposits of up to 100 (or its equivalent in other currencies) from the survey to be carried out by said institution.
The Group has assets whose availability is restricted, according to the following detail:
Detail | 03/31/2023 | 12/31/2022 |
---|---|---|
Other receivables from financial transactions | | |
Special guarantee accounts in the Argentine Central Bank | 11,513,452 | 12,531,876 |
Guarantee deposits for term operations | 7,618,758 | 3,291,409 |
Guarantee deposits for credit cards transactions | 1,167,932 | 1,215,473 |
Other guarantee deposits | 87,889 | 574,216 |
20,388,031 | 17,612,974 |
11.3. Compliance of provisions issued by the National Securities Commission
Pursuant to General Ruling N° 629 issued by the National Securities Commission, supporting documentation of our accounting and administration operations for the financial years 2012 to 2022 and until March 31, 2023, the accounting books since 2019 up to date and all corporate books are safeguarded in the registered headquarters.
Any other documentation or book, older than the date specified above for each case, is safeguarded by the firm AdeA S.A., whose warehouse is located on Ruta Provincial N°36, Km 31,500, Bosques, Partido de Florencio Varela, Buenos Aires Province.
11.4 Financial Trusts
The detail of the financial trusts in which The Entity acts as Trustee or as Settler is summarized below:
As Trustee:
Banco Supervielle S.A.
Below is a detail of financial trusts:
Below is a detail of the Guarantee Management trust where Banco Supervielle acts as a trustee as of March 31, 2023:
Financial trust | Indenture executed on | Due of principal obligation | Original principal amount | Principal balance | Beneficiaries | Settlers |
Fideicomiso de Administración Interconexión 500 KV ET Nueva San Juan - ET Rodeo Iglesia | 09/12/2018 | The Term of this Trust Fund Contract will be in force over 24 months as from 09/12/2018, or until the expiration of liabilities through Disbursements (Termination Date”), 30 days (thirty days) after the maturity | - | - | Those initially mentioned (DISERVEL S.R.L., INGENIAS S.R.L, GEOTECNIA (INV. CALVENTE), NEWEN INGENIERIA S.A., INGICIAP S.A., MERCADOS | Interconexion Electrica Rodeo S.A. |
32
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
of this Trust Agreement without the parties’ having agreed upon an Extension Commission, the Trustor of the trust account shall receive USD 6.000 (six thousand US Dollars) at the exchange rate in force in Banco Supervielle as a fine, | ENERGETICOS, DISERVEL S.R.L.) and providers of works, goods and services included in the Project to be assigned by the Trustee with prior consent of the Trustor |
IUDÚ Compañia Financiera S.A. (Financial Trust CCF)
As of March 31, 2023, IUDU does not have current trusts.
Micro Lending S.A.U. (Financial Trust Micro Lending)
The following are financial trusts where Micro Lending S.A.U acts as settler:
Financial Trust | Set-up on | Securitized Amount | Issued Securities | |||||
---|---|---|---|---|---|---|---|---|
| Type | Amount | Type | Amount | Type | Amount | ||
III | 06/08/2011 | $ 39,779 | VDF TV A | VN$ 31,823 | VDF B | VN $ 6,364 | CP | VN $ 1,592 |
| Mat: 03/12/13 | Vto: 11/12/13 | Vto: 10/12/16 | |||||
IV | 09/01/2011 | $ 40,652 | VDF TV A | VN$ 32,522 | VDF B | VN $ 6,504 | CP | VN $ 1,626 |
| Mat: 06/20/13 | Vto: 10/20/13 | Vto: 06/29/17 |
11.5. Issuance of negotiable debt secutities
Banco Supervielle S.A.
Global Program for the issuance of simple Negotiable Debt securities, not convertible into shares
As of March 31, 2023 and December 31, 2022, the Group has no outstanding issues.
Global Program for the Issuance of Subordinated debt securities
As of March 31, 2023 the Group has no outstanding issues and as of December 31, 2022, current issues amount to $683,416.
11.6. Restrictions imposed on the distributions of dividends
Pursuant to regulations set by the Argentine Central Bank, 20% of the profits for the year, net of possible prior year adjustments, where applicable, are to be allocated to the Legal Reserve.
Pursuant to the amended text on distributions of dividends, financial entities shall comply with a series of requirements, as follows: i) They shall not be subject to the provisions of Sections 34 and 35 bis of the Financial Institutions Law; ii) No liquidity assistance loans shall have been granted to them; iii) they shall be in compliance with information regimes; iv) they shall not record shortfalls in the compiled minimum capital (without computing for such purposes the effects of the individual exemptions granted by the Superintendence of Financial and Foreign Exchange Institutions) or minimum cash, v) they shall have complied with additional capital margin when applicable.
The entities not facing any of these situations may distribute dividends in accordance with provisions set forth in said amended text, provided the entity´s liquidity or solvency is not jeopardized.
On March 9, 2023, through communication "A" 7719, the BCRA established that from April 1, 2023 and until December 31, 2023, financial entities may distribute results in 6 equal, monthly and consecutive installments. for up to 40% of the amount that would have corresponded, if the profit distribution rules were applied.
11.7. Accounts udentifyng minimum casg integration compliance
As of March 31, 2023 and December 31,2022, the minimum cash reserve was made up as folllows:
Item (*) | 03/31/2023 | 12/31/2022 |
---|---|---|
Current accounts in the Argentine Central Bank (**) | 6,000,000 | 50,000 |
33
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Item (*) | 03/31/2023 | 12/31/2022 |
---|---|---|
Sight accounts in the Argentine Central Bank (**) | 25,658,448 | 27,152,132 |
Special accounts for acred. assets (**) | 11,455,583 | 10,243,021 |
| 1,005,018 | - |
Total | 44,119,049 | 37,445,153 |
(*) Historical values without inflation adjustment
(**)They correspond to balances according to bank statements.
It is worth mentioning that on those dates, the Group was in compliance with minimum cash integration requirements.
12 | FINANCIAL RISK FACTORS |
There have been no significant changes in the risk management policies to which the Group is exposed, with respect to what is reported in the financial statements as of December 31, 2022 and in Note 1.2.
13 | FOREIGN TRADE FINANCING FACILITATION PROGRAM |
As of March 31, 2023, the Group did not receive any financing.
14 | REPURCHASE OF TREASURY SHARES |
On July 20, 2022, the Company's Board of Directors approve a repurchase of treasury shares with a maximum amount to be invested of 2,000,000 or the lesser amount resulting from the acquisition until reaching 10% of the capital stock. The price to be paid for the shares will be up to a maximum of US$2.20 per ADR on the New York Stock Exchange and up to a maximum of $138 per Class B share on Bolsas y Mercados Argentinos S.A. The Company will acquire shares for a term of 250 calendar days from the entry into force of the program, subject to any renewal or extension of the term that is approved by the Board of Directors. The approved share program does not imply an obligation on the behalf of Grupo Supervielle with respect to the acquisition of a certain number of shares.
On September 13, 2022, the Board of Directors of Grupo Supervielle S.A. approved to modify point 5 of the terms and conditions of the own shares acquisition plan approved on July 20, 2022 as follows: “5. The price to be paid for the shares will be up to a maximum of US$2.70 per ADR on the New York Stock Exchange and up to a maximum of $155 per Class B share on Bolsas y Mercados Argentinos S.A." The remaining terms and conditions will remain in force as they were approved.
Subsequently, on December 27, 2022, Supervielle approved to modify point 5 of the terms and conditions of the own shares acquisition program approved on July 20, 2022 as follows: “5. The price to be paid for the shares will be up to a maximum of US$2.70 per ADR on the New York Stock Exchange and up to a maximum of $200 per Class B share on Bolsas y Mercados Argentinos S.A.” The remaining terms and conditions remain in force as approved.
In the statement of Changes in Shareholders´ Equity, the nominal value of the repurchased shares is disclosed as "Own shares in portfolio" and its restatement as " Inflation adjustment of treasury shares ". The consideration paid, including directly attributable incremental cost, is deducted from equity until the shares are canceled or reissued, and is disclosed as “Cost of own shares in portfolio”.
As of March 31, 2023, the Grupo Supervielle share repurchase program has expired. Grupo Supervielle has acquired a total of 11,093,572 Class B Shares in ByMA and 591,384 ADRs in NYSE, reaching an execution of 86.3% of the program and 3.076% of the share capital.
15 | Prior commitment to merge IUDÚ Compañía Financiera S.A. and Tarjeta Automática S.A with Banco Supervielle S.A. |
On December 14, 2022, the board of directors of Banco Supervielle S.A. accepted a merger commitment by absorption, as absorbing company, with IUDÚ Compañía Financiera S.A. and Tarjeta Automática S.A., as absorbed companies.
The absorption of these two companies will make it possible to offer services to the consumer financing segment in a much more efficient manner, simplifying the corporate structure and completing the integration that began in September 2022 with the migration of clients and the IUDU financing portfolio to the Bank. Customers who have IUDU accounts will be able to maintain a 100% digital experience while having the rest of the Bank's service channels available.
On March 6, 2023, the board of directors of Banco Supervielle S.A. agreed to carry out a corporate reorganization, through a merger by absorption by which Banco Supervielle would absorb IUDÚ Compañía Financiera S.A. and Tarjeta
34
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Automática S.A., which would be dissolved without liquidation. The Merger date was set with effect on January 1, 2023, inclusive, date from which Banco Supervielle S.A. As absorbing and continuing company, it will assume the activities of IUDÚ Compañía Financiera S.A. and Tarjeta Automática S.A., assuming the rights and obligations corresponding to it. As of that date and while the Merger process is pending registration, the operations of both companies will be reported as carried out on behalf of and by order of Banco Supervielle S.A.
The shareholders of the companies Banco Supervielle S.A. (“Absorbing Company”), IUDU Compañía Financiera S.A. and Automatic Card S.A. (“Absorbed Companies”) approved in an ordinary and extraordinary meeting held on May 18, 2023, the merger by absorption of the Absorbing Company with the Absorbed Companies under the terms of article 82 and concordant of the General Law of Companies and its amendments and Article 77 et seq. of the Income Tax Law (text ordered in 1997 and its amendments). Once the current legal requirements have been met, the registration of said merger will proceed.
Such decision is subject to approval by the Central Bank of the Argentine Republic.
16 | ECONOMIC CONTEXT IN WHICH THE COMPANY OPERATES |
The Group operates in a complex economic context, whose main variables have been highly volatile, both nationally and internationally.
Economic activity in Argentina contracted by 0.7% in the last quarter of 2022, ending a streak of more than two years of GDP growth. As for inflation, it accelerated sharply in the first quarter, reaching 7.7% monthly in March, the highest record since the hyperinflation of the late 1980s.
In the fourth month of 2023, international reserves fell by USD 3,764 million in April. This was mainly explained by net payments to the IMF and other international organizations for more than USD 2.2 billion. In addition, reserve requirements in dollars were reduced by USD 500 million. On the other hand, the BCRA registered net purchases for USD 34 million in the exchange market, as a result of the inflow of foreign currency for the third edition of the “soybean dollar”. In this sense, the liquidations of the agro-export complex reached USD 2,435 million in April, 23.2% less than in the same month of the previous year and accumulating a decrease of 52.8% in the year. Meanwhile, the stock of credit cards in dollars, which shows a high correlation with the outflow of foreign currency from tourism, averaged USD 175 million during April, falling 8.4% compared to the previous year.
The nominal exchange rate accelerated its depreciation rate to 6.5% during April, closing the month at $222.58. Much of this rise occurred in the last week of the month, where the official dollar depreciated at a monthly rate of 8.2%. For its part, Argentina's TCRM rose 1.5% in April, accumulating a rise of 9.7% since last September.
Regarding interest rates, the Central Bank ordered an increase in the 28-day LELIQ rate, rising to 97% TNA. At the same time, the BCRA raised the yields of fixed terms to 97% TNA. The one-day pass rate rose to 91% TNA.
The expansion rate of the Monetary Base (MB) was 43.7% compared to the previous year in April, more than 65% below inflation. In the past month, the BM contracted by $240,762 million, data as of April 26, as a result of the absorption by sterilization with LELIQ and passes (-$1,385,828 million). On the other hand, the monetary base had as expansion factors the payment of interest for $604,395 million, operations with the public sector for $194,133 million, foreign currency purchases for $164,047 million and the other item for $182,490 million, the latter as a result of purchases by the BCRA of public securities in the secondary market. As in the previous month, the BCRA had to directly assist the treasury, registering a shipment of $100,000 million on April 21. On the side of private monetary aggregates, M2 showed growth of 80.3% and M3 expanded 95.2% with respect to the previous year.
Private sector deposits in pesos grew 5.2% compared to the same month of the previous year in April. In detail, term deposits grew 9.8% while sight deposits rose just 0.3% compared to the same month of the previous year. In annual terms, deposits accelerated to 111.3% year-over-year in April versus 110.3% year-over-year in March, driven mostly by an increase in time deposits of 138.7% versus to the previous year, while those on sight continued to run behind inflation with 98.9% compared to the previous year. Meanwhile, the stock of loans to the private sector in pesos 9.4% compared to the same month of the previous year. The most dynamic lines were commercial credit lines that grew 13.8% compared to the previous year, while those for consumption and with real guarantees lagged behind inflation with 6.2% and 5.1% respectively compared to past year. In annual terms, loans grew 80.7% compared to the previous year in April, with the most thriving commercial credit with an increase of 94.6% compared to the previous year, followed by those for consumption with 74.3% compared to the previous year and with real guarantee with 57.4% compared to the previous year.
35
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
The financial sector has significant exposure to the Argentine public sector, through rights, public securities, loans and other assets. The Bank's exposure to the Argentine public sector is as follows:
| | 03/31/2023 |
BCRA+ repo transactions | 236,946,591 | |
Treasury Bills | 80,804,243 | |
Other instruments issued by the provincial authorities | 14,343 | |
Total debt instruments | 317,765,177 | |
Loans to the Public Sector | 392,410 | |
Total exposure to the public sector | 318,157,587 | |
Percentage of total assets | | 42% |
Percentage of shareholder´s equity | | 281% |
In accordance with the provisions of note 1.1, non-financial public sector instruments are not covered by the impairment provisions of IFRS 9 "Financial Instruments".
The context of volatility and uncertainty continues at the date of issuance of these financial statements.
For all of the above, Grupo Supervielle's Management permanently monitors the evolution of the situations mentioned in the international markets and at the local level, to identify possible impacts on its patrimonial and financial situation, and determine the possible actions to be adopted.
17 | SUBSEQUENT EVENTS |
The Annual Ordinary Shareholders' Meeting held on April 27, 2023 approved the financial statements as of December 31, 2022 and the treatment of the results corresponding to the year ended on that date.
36
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE A - DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS, OTHER DEBT SECURITIES, EQUITY INSTRUMENTS
As of March 31, 2023 and December 31, 2022:
Items | HOLDING | POSITION | ||||
---|---|---|---|---|---|---|
Level of fair value | Book value 03/31/2023 | Book value 12/31/2022 | Level of fair value | Book value 12/31/2022 | Posición final | |
Debt securities at fair value through profit or loss |
|
|
|
|
|
|
Argentine | | | | | | |
Government Securities | |
|
|
|
|
|
Bono Tesoro vinc al U$S 28/04/23 | 1 | 7,216,113 | - | 7,216,113 | - | 7,216,113 |
Letra tesoro $ aj CER Desc Vto.18/07/23 | 1 | 6,432,381 | - | 6,432,381 | - | 6,432,381 |
Bono Tesoro $ aj CER Vto.14/10/24 | 1 | 1,863,337 | - | 1,863,337 | - | 1,863,337 |
Bono Tesoro $ aj CER Vto.14/02/25 | 1 | 1,785,385 | - | 1,785,385 | - | 1,785,385 |
Bono Nación Dual Vto.28/02/24 | 1 | 1,712,056 | 251 | 1,712,056 | - | 1,712,056 |
Letra Tesoro $ a desc. Vto.18/09/23 | 1 | 1,343,005 | - | 1,343,005 | - | 1,343,005 |
Bono Tesoro Vinc U$S Vto.30/04/24 C.G | 1 | 808,583 | - | 808,583 | - | 808,583 |
Letra tesoro $ aj CER Desc Vto.19/05/23 | 1 | 583,164 | 49,159 | 583,164 | - | 583,164 |
Bono Rep. Arg. Vinc al U$S 31/07/23 | 1 | 520,076 | 330,987 | 520,076 | - | 520,076 |
Letra Tesoro $ a desc. Vto.21/04/23 | 1 | 497,493 | - | 497,493 | - | 497,493 |
Others | 1 | 902,805 | 17,459,326 | -1,168,349 | - | -1,168,349 |
Letra del Tesoro Nacional en pesos a descuento con vencimiento 28 de febrero de 2023 | 1 | | 546,578 | - | - | - |
Letra del Tesoro Nacional en pesos a descuento con vencimiento 31 de marzo de 2023 | 1 | | 411,699 | - | - | - |
Bocon - Bono de consolidacion $ 8 serie (PR15) | 1 | 107,745 | 34,640 | 107,745 | - | 107,745 |
TV23 | 1 | 105,500 | - | 105,500 | - | 105,500 |
TDF24 | 1 | 25,138 | - | 25,138 | - | 25,138 |
S28A3 | 1 | 18,551 | 86,335 | 18,551 | - | 18,551 |
X16J3 | 1 | 251,191 | - | 251,191 | - | 251,191 |
X18L3 | 1 | 100,853 | - | 100,853 | - | 100,853 |
SPC10 | 1 | 207,900 | 242,974 | 207,900 | - | 207,900 |
Others | 1 | - | 4,948 | - | - | - |
| | | | | | |
Corporate Securities | | | | | | |
ON Cresud S27 CL41 $ V04/10/24 | 1 | 415,680 | - | 415,680 | - | 415,680 |
ON Capex CL.3 U$S Vto.27/02/2026 | 1 | 120,929 | - | 120,929 | - | 120,929 |
ON Cresud S27 CL42 U$S V04/05/26 | 1 | 94,983 | - | 94,983 | - | 94,983 |
ON Cia Gen. Comb. CL.30 Vto.10/03/2025 | 1 | 54,275 | - | 54,275 | - | 54,275 |
ON YPF Clase 39 8,50% U$S Vto.28/07/25 | 1 | 35,476 | 35,909 | 35,476 | - | 35,476 |
ON Luz Tres Picos 4 U$S 29/09/26 | 1 | 30,189 | 31,228 | 30,189 | - | 30,189 |
ON PyME Venturino $ Vto.05/10/23 | 2 | 3,074 | 4,474 | 3,074 | - | 3,074 |
37
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
Items | HOLDING | POSITION | ||||
---|---|---|---|---|---|---|
Level of fair value | Book value 03/31/2023 | Book value 12/31/2022 | Level of fair value | Book value 12/31/2022 | Posición final | |
ON Vista Energy 18 U$S Vto.03/03/27 | 1 | 1,044 | - | 1,044 | - | 1,044 |
Others | 1 | 1,933,978 | 2,281,309 | 1,933,978 | - | 1,933,978 |
Total Debt Securities at Fair value through profit or loss | | 27,170,904 | 21,519,817 | 25,099,750 | - | 25,099,750 |
| | | | | | |
OTHER DEBT SECURITIES | | | | | | |
Measured at fair value through profit or loss | | | | | | |
Argentine | | | | | | |
Government Securities | | | | | | |
Bono Tesoro $ Aj CER 1,50% Vto.25/03/24 | 1 | 723,870 | 866,851 | 723,870 | - | 723,870 |
Bono Tesoro $ Aj CER 1,40% Vto.25/03/23 | 1 | - | 575,920 | - | - | - |
Bono Tesoro $ Vto 06/02/2023 | 1 | - | 2,342,958 | - | - | - |
Bono del tesoro de la Nación especie T2V1 | 1 | 2,182,881 | 2,671,769 | 2,182,881 | - | 2,182,881 |
LT. REP ARG A DESC. V28/04/23 $ CG (S28A3) | 1 | 656,272 | | 656,272 | - | 656,272 |
LETRAS AJUST.A DESC.VTO.16/06/23 $ CG (X16J3) | 1 | 553,124 | 174,648 | 553,124 | - | 553,124 |
BONO DEL TESORO BONCER $ 2026 (TX26) | 1 | 187,904 | | 187,904 | - | 187,904 |
BONAR MONEDA DUAL FEBRERO 2024 (TDF24) | 1 | 281,725 | | 281,725 | - | 281,725 |
BONCER 1.55% 2024 (T2X4) | 1 | 195,862 | 196,654 | 195,862 | - | 195,862 |
BONO DEL TESORO BONCER $ 2026 (TX26) | 1 | 163,355 | 166,629 | 163,355 | - | 163,355 |
Others | 1 | - | 865,683 | - | - | - |
LETRAS AJUST.A DESC.VTO.16/06/23 $ CG (X16J3) | 1 | 54,130 | - | 54,130 | - | 54,130 |
| | | | | | |
Central Bank Bills | | | | | | |
Letra de liquidez del BCRA Vto.18/04/23 | 2 | 43,333,155 | - | 43,333,155 | - | 43,333,155 |
Letra de liquidez del BCRA Vto.20/04/23 | 2 | 40,278,504 | - | 40,278,504 | - | 40,278,504 |
Letra de liquidez del BCRA Vto.25/04/23 | 2 | 33,224,975 | - | 33,224,975 | - | 33,224,975 |
Letra de liquidez del BCRA Vto.11/04/23 | 2 | 29,310,990 | - | 29,310,990 | - | 29,310,990 |
Letra de liquidez del BCRA Vto.04/04/23 | 2 | 21,813,550 | - | 21,813,550 | - | 21,813,550 |
Letra de liquidez del BCRA Vto.05/04/23 | 2 | 21,767,416 | - | 21,767,416 | - | 21,767,416 |
Letra de liquidez del BCRA Vto.13/04/23 | 2 | 9,729,700 | - | 9,729,700 | - | 9,729,700 |
Letra de liquidez del BCRA Vto.27/04/23 | 2 | 9,454,490 | - | 9,454,490 | - | 9,454,490 |
Letra de liquidez del BCRA Vto.17/01/23 | 2 | - | 47,049,458 | - | - | - |
Letra de liquidez del BCRA Vto.19/01/23 | 2 | - | 41,005,434 | - | - | - |
Others | 2 | - | 124,119,557 | - | - | - |
| | | | | | |
Central Bank Notes | | | | | | |
Nota de liquidez del BCRA Vto.11/01/23 | 2 | - | 16,479,055 | - | - | - |
Nota de liquidez del BCRA Vto.04/01/23 | 2 | - | 5,891,233 | - | - | - |
Nota de liquidez del BCRA Vto.25/01/23 | 2 | - | 4,867,098 | - | - | - |
Nota de liquidez del BCRA Vto.18/01/23 | 2 | - | 3,270,705 | - | - | - |
| | | | | | |
38
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
Items | HOLDING | POSITION | ||||
---|---|---|---|---|---|---|
Level of fair value | Book value 03/31/2023 | Book value 12/31/2022 | Level of fair value | Book value 12/31/2022 | Posición final | |
Corporate Securities | | | | | | |
ON Tarj Naranja CL.53 $ V05/04/24 | 2 | 1,241,671 | 1,411,461 | 1,241,671 | - | 1,241,671 |
ON Tarj Naranja CL.55 $ V09/02/24 | 2 | 878,672 | 1,116,969 | 878,672 | - | 878,672 |
ON SPI Energy SA CL.1 US$ V.27/06/2026 | 1 | 847,195 | 964,423 | 847,195 | - | 847,195 |
ON MSU Energy CL.4 U$S VTO.20/05/24 | 2 | 276,125 | 274,727 | 276,125 | - | 276,125 |
ON Pampa Energia CL.15 $ Vto.11/07/24 | 1 | 231,085 | - | 231,085 | - | 231,085 |
ON Credicuotas Consumo 4 $ V21/03/24 | 2 | 221,796 | - | 221,796 | - | 221,796 |
ON MSU S.A S.10 U$S Vto.12/09/24 | 2 | 123,031 | 124,533 | 123,031 | - | 123,031 |
ON Center Gen/Med UVA Vto.12/11/24 | 2 | 115,152 | 129,003 | 115,152 | - | 115,152 |
ON Credicuotas C.S.1 $ V5/10/2023 | 2 | 109,839 | 146,103 | 109,839 | - | 109,839 |
ON Pro Mujer S. 1 $ Vto.06/02/24 | 2 | 13,149 | - | 13,149 | - | 13,149 |
Others | 1 | 10,427 | 605,355 | 10,427 | - | 10,427 |
| | | | | | |
Measured at amortized cost | | | | | | |
Argentine | | | | | | |
Government Securities | | | | | | |
Bono Rep. Arg. $ Vto.23/05/27 | - | 14,486,610 | 15,975,308 | 14,486,610 | - | 14,486,610 |
Bono Tesoro $ aj CER Vto.14/10/24 | - | 9,124,733 | - | 9,124,733 | - | 9,124,733 |
Bono Nación Dual Vto.28/02/24 | - | 7,328,217 | - | 7,328,217 | - | 7,328,217 |
Bono Tesoro $ aj CER Vto.14/02/25 | - | 6,765,307 | - | 6,765,307 | - | 6,765,307 |
Bonte Badlar $ Vto.23/11/27 | - | 5,077,734 | - | 5,077,734 | - | 5,077,734 |
Bono Nación Dual Vto.29/09/23 | | 4,560,428 | 4,839,532 | 4,560,428 | - | 4,560,428 |
Letra Tesoro $ a desc. Vto.18/09/23 | | 1,405,382 | 1,450,308 | 1,405,382 | - | 1,405,382 |
Bono Nación Dual Vto.31/07/23 | | 1,195,116 | 1,235,890 | 1,195,116 | - | 1,195,116 |
Letra Tesoro $ a desc. Vto.30/06/23 | | 1,074,120 | - | 1,074,120 | - | 1,074,120 |
Bono Tesoro BONCER 2% $ 2026 | | 373,333 | 1,923,111 | 373,333 | - | 373,333 |
Letra del Tesoro Nacional ajus CER a desc 19/05/2023 | | 730,117 | 239,701 | 730,117 | | 730,117 |
Others | | 4,807 | 20,526,982 | 4,807 | - | 4,807 |
| | | | | | |
Central Bank Bills | | | | | | |
Letra de liquidez del BCRA Vto.14/06/23 | | 2,987,432 | 3,093,096 | 2,987,432 | | 2,987,432 |
| | | | | | |
Central Bank Notes | | | | | | |
Nota de liquidez del BCRA Vto.22/03/23 |
| - | 14,985,923 | - | - | - |
Nota de liquidez del BCRA Vto.18/01/23 |
| - | 7,282,909 | - | - | - |
Nota de liquidez del BCRA Vto.15/03/23 |
| - | 4,550,140 | - | - | - |
Nota de liquidez del BCRA Vto.22/02/23 |
| - | 3,930,683 | - | - | - |
| | | | | | |
Corporate Securities | | | | | | |
39
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
Items | HOLDING | POSITION | ||||
---|---|---|---|---|---|---|
Level of fair value | Book value 03/31/2023 | Book value 12/31/2022 | Level of fair value | Book value 12/31/2022 | Posición final | |
FF Red Surcos XXIX lote 1 | | 1,942,069 | 1,960,575 | 1,942,069 | - | 1,942,069 |
FF Red Surcos XXIX lote 2 | | 107,582 | 108,430 | 107,582 | - | 107,582 |
Others | | 16 | 20 | 16 | - | 16 |
| | | | | | |
Total other debt securities | | 275,143,048 | 337,418,834 | 275,143,048 | - | 275,143,048 |
EQUITY INSTRUMENTS | | | | | | |
Measured at fair value through profit and loss | | | | | | |
Argentine | | | | | | |
Ternium Arg S.A.Ords."A"1 Voto Esc | 1 | 46,957 | 16,724 | 46,957 | - | 46,957 |
Aluar SA | 1 | 42,215 | 66,081 | 42,215 | - | 42,215 |
Pampa Energía S.A. | 1 | 30,284 | 56,643 | 30,284 | - | 30,284 |
Edenor SA | 1 | 27,969 | 56,803 | 27,969 | - | 27,969 |
Transener SA | 1 | 16,579 | 6,773 | 16,579 | - | 16,579 |
Holcim Arg | 1 | 1,717 | 1,726 | 1,717 | - | 1,717 |
YPF SA | 1 | 1,280 | 55,500 | 1,280 | - | 1,280 |
Cedear SPDR Dow Jones Ind | 1 | 663 | 677 | 663 | - | 663 |
Cedear SPDR S&P | 1 | 548 | 527 | 548 | - | 548 |
Cedear Financial Select Sector | 1 | 508 | 556 | 508 | - | 508 |
Others | 1 | 264 | 65,401 | 264 | - | 264 |
| | | | | | |
Measured at fair value with changes in OCI | | | | | | |
Argentine | | | | | | |
Others | 3 | 260,658 | 284,367 | 260,658 | - | 260,658 |
| | | | | | |
Total equity instruments | | 429,642 | 611,778 | 429,642 | - | 429,642 |
TOTAL | | 302,743,594 | 359,550,429 | 300,672,440 | - | 300,672,440 |
40
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE B – CLASSIFICATION OF LOANS AND OTHER FINANCING CREDIT ACCORDING TO STATUS AND COLLATERAL RECEIVED
As of March 31, 2023 and December 31, 2022 balances of loans and other financing are the following:
| 03/31/2023 | 12/31/2022 |
COMMERCIAL PORTFOLIO | | |
| | |
Normal situation | 114,056,784 | 127,653,972 |
-With "A" Preferred Collateral and Counter-guarantees | 2,698,155 | 3,285,437 |
-With "B" Preferred Collateral and Counter-guarantees | 9,571,982 | 10,923,459 |
- Without Preferred Collateral nor Counter-guarantees | 101,786,647 | 113,445,076 |
| | |
Subject to special monitoring | | |
- Under Observation | 2,118,576 | 2,216,441 |
-With "A" Preferred Collateral and Counter-guarantees | - | 256 |
-With "B" Preferred Collateral and Counter-guarantees | 2,116,478 | 2,204,349 |
- Without Preferred Collateral nor Counter-guarantees | 2,098 | 11,836 |
| | |
With problems | 1,537,508 | 1,780,768 |
-With "A" Preferred Collateral and Counter-guarantees | - | - |
-With "B" Preferred Collateral and Counter-guarantees | 1,363,334 | 1,598,899 |
- Without Preferred Collateral nor Counter-guarantees | 174,174 | 181,869 |
| | |
High risk of insolvency | 410,711 | 592,554 |
-With "A" Preferred Collateral and Counter-guarantees | - | 1,768 |
-With "B" Preferred Collateral and Counter-guarantees | 78,175 | 96,134 |
- Without Preferred Collateral nor Counter-guarantees | 332,536 | 494,652 |
| | |
Uncollectible | 75,672 | 3,014 |
-With "A" Preferred Collateral and Counter-guarantees | 1,452 | - |
-With "B" Preferred Collateral and Counter-guarantees | 930 | 1,132 |
- Without Preferred Collateral nor Counter-guarantees | 73,290 | 1,882 |
| | |
TOTAL COMMERCIAL PORTFOLIO | 118,199,251 | 132,246,749 |
41
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE B – CLASSIFICATION OF LOANS AND OTHER FINANCING CREDIT ACCORDING TO STATUS AND COLLATERAL RECEIVED
| 03/31/2023 | 12/31/2022 |
CONSUMER AND HOUSING PORTFOLIO | | |
| | |
Normal situation | 160,811,494 | 178,317,106 |
-With "A" Preferred Collateral and Counter-guarantees | 4,901,405 | 5,969,068 |
-With "B" Preferred Collateral and Counter-guarantees | 14,181,769 | 16,068,031 |
- Without Preferred Collateral nor Counter-guarantees | 141,728,320 | 156,280,007 |
| | |
Low Risk | 5,500,340 | 7,006,980 |
-With "A" Preferred Collateral and Counter-guarantees | 43,790 | 90,665 |
-With "B" Preferred Collateral and Counter-guarantees | 363,159 | 601,722 |
- Without Preferred Collateral nor Counter-guarantees | 5,093,391 | 6,314,593 |
| | |
Medium Risk | 5,080,564 | 4,590,572 |
-With "A" Preferred Collateral and Counter-guarantees | 14,274 | 26,294 |
-With "B" Preferred Collateral and Counter-guarantees | 237,521 | 201,697 |
- Without Preferred Collateral nor Counter-guarantees | 4,828,769 | 4,362,581 |
| | |
High Risk | 3,707,873 | 2,992,596 |
-With "A" Preferred Collateral and Counter-guarantees | 21,748 | 34,835 |
-With "B" Preferred Collateral and Counter-guarantees | 144,871 | 170,641 |
- Without Preferred Collateral nor Counter-guarantees | 3,541,254 | 2,787,120 |
| | |
Uncollectible | 1,283,872 | 1,537,550 |
-With "A" Preferred Collateral and Counter-guarantees | 10,873 | 10,458 |
-With "B" Preferred Collateral and Counter-guarantees | 64,905 | 198,033 |
- Without Preferred Collateral nor Counter-guarantees | 1,208,094 | 1,329,059 |
| | |
| | |
TOTAL CONSUMER AND HOUSING PORTFOLIO | 176,384,143 | 194,444,804 |
TOTAL GENERAL(1) | 294,583,394 | 326,691,553 |
The preceding note includes the classification of loans using the debtor classification system of the Central Bank of the Argentine Republic (DCS), The forecasts and guarantees granted are not included,
(1) Conciliation with Statement of Financial Position: | ||
Loans and other financing | 249,563,309 | 284,520,655 |
Other debt securities | 275,143,048 | 337,418,834 |
Computable items out of balance | 25,157,349 | 19,700,390 |
Plus allowances | 13,037,130 | 14,866,944 |
Plus IFRS adjusments non computable for DCS | 670,436 | 714,817 |
Less non deductible ítems for DCS | (2,092,372) | (1,403,614) |
Less debt securities measured at amortized cost and fair value with chages in OCI | (266,895,506) | (329,126,473) |
Total | 294,583,394 | 326,691,553 |
42
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE C - CONCENTRATION OF LOANS AND OTHER FINANCING
As of March 31, 2023 and December 31, 2022 the concentration of leans and other financing are the following:
Loans and other financing | ||||
| 03/31/2023 | 12/31/2022 | ||
| Balance | % over total portfolio | Balance | % over total portfolio |
10 largest customers | 24,100,351 | 8.2% | 26,675,165 | 8.2% |
50 following largest customers | 47,110,194 | 16.0% | 48,493,879 | 14.8% |
100 following largest customers | 32,698,695 | 11.1% | 37,528,929 | 11.5% |
Rest of customers | 190,674,154 | 64.7% | 213,993,580 | 65.5% |
TOTAL | 294,583,394 | 100.0% | 326,691,553 | 100.0% |
43
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE D – BREAKDOWN OF TOTAL LOANS AND OTHER FINANCING
As of March 31, 2023 the breakdown of leans and other financing are the following:
Past due portfolio | Remaining terms for maturity | Total | ||||||
1 month | 3 months | 6 months | 12 months | 24 months | Up to 24 months | |||
Non-financial Public Sector | - | 152,409 | 94,235 | - | 98,292 | 196,583 | 688,041 | 1,229,560 |
Financial Sector | - | 1,494,129 | 92,295 | 141,439 | 347,365 | 666,945 | 295,000 | 3,037,173 |
Non-financial private sector and residents abroad | 11,768,862 | 136,150,857 | 43,681,343 | 37,800,471 | 52,961,470 | 67,340,051 | 185,698,813 | 535,401,867 |
TOTAL | 11,768,862 | 137,797,395 | 43,867,873 | 37,941,910 | 53,407,127 | 68,203,579 | 186,681,854 | 539,668,600 |
44
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT
Changes in property, plant and equipment as of March 31, 2023 and December 31, 2022, are as follows:
Item | At the beginning of the period | Useful life | Additions | Disposals | Depreciation | Net carrying | ||||
| | | | | Accumulated | Disposals | Of the period | At the end of the period | 03/31/2023 | 12/31/2022 |
Cost model | | | | | | | | | | |
Furniture and facilities | 5,853,815 | 10 | 2,282 | (38,142) | (4,882,065) | 35,055 | (67,341) | (4,914,351) | 903,604 | 971,750 |
Machinery and equipment | 19,274,001 | 10 | 411,442 | (15,083) | (17,121,531) | 10,760 | (288,449) | (17,399,220) | 2,271,140 | 2,152,470 |
Vehicles | 914,807 | 5 | 12,426 | (20,445) | (401,086) | 15,345 | (40,273) | (426,014) | 480,774 | 513,721 |
Right of Use of Leased Properties | 6,603,211 | 50 | 322,547 | (802,498) | (3,780,482) | 800,690 | (516,885) | (3,496,677) | 2,626,583 | 2,822,729 |
Construction in progress | 2,932,895 | - | 72,944 | (4,108) | - | - | - | - | 3,001,731 | 2,932,895 |
Revaluation model | | | | | | | | | | |
Land and Buildings | 13,820,853 | 50 | - | - | (847,569) | - | (82,112) | (929,681) | 12,891,172 | 12,973,284 |
Total | 49,399,582 | | 821,641 | (880,276) | (27,032,733) | 861,850 | (995,060) | (27,165,943) | 22,175,004 | 22,366,849 |
The movements in investment properties as of March 31, 2023 and December 31, 2022 as follows:
Item | At the beginning of the period | Useful life | Additions | Disposals | Depreciation | Net carrying 03/31/2023 | Net carrying 12/31/2022 | |||
| | | | | Accumulated | Disposals | Of the period | At the end of the period | | |
Cost model | | | | | | | | | | |
Rent building | 395,406 | 5 | 5,948 | - | (75,995) | - | (19,996) | (95,991) | 305,363 | 319,412 |
Measurement at fair value | | | | | | | | | | |
Rent building | 20,257,072 | 50 | - | - | - | - | - | - | 20,257,072 | 20,257,072 |
Total | 20,652,478 | | 5,948 | - | (75,995) | - | (19,996) | (95,991) | 20,562,435 | 20,576,484 |
45
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE G - INTANGIBLE ASSETS
Intangible assets of the Group as of March 31, 2023 and December 31, 2022 are as follows:
Item | At the beginning of the period | Useful life | Additions | Disposals | Depreciation | Net carrying | ||||||
| | | | | At the beginning of the period | Disposals | Of the period | At the end of the period | 03/31/2023 | 12/31/2022 | ||
Measurement at cost | | | | | | | | | | | ||
Goodwill | 11,497,017 | | - | - | 631,803 | - | - | 631,803 | 12,128,820 | 12,128,820 | ||
Brands | 715,842 | | - | - | - | - | - | - | 715,842 | 715,842 | ||
Other intangible assets | 35,187,665 | 3 | 822,982 | (102,696) | (20,915,407) | 78,058 | (1,385,115) | (22,222,464) | 13,685,487 | 14,272,258 | ||
TOTAL | 47,400,524 | | 822,982 | (102,696) | (20,283,604) | 78,058 | (1,385,115) | (21,590,661) | 26,530,149 | 27,116,920 |
Depreciation for the period is included in the line "Depreciations and impairment of non-financial assets" in the statement of comprehensive income.
46
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE H – CONCENTRATION OF DEPOSITS
As of March 31, 2023 and December 31, 2022 the concentration of deposits are the following:
Number of customers | Deposits | |||
| 03/31/2023 | 12/31/2022 | ||
| Placement Balance | % over total portfolio | Placement Balance | % over total portfolio |
10 largest customers | 194,555,580 | 33.7% | 223,422,818 | 33.5% |
50 following largest customers | 122,879,419 | 21.3% | 148,233,124 | 22.2% |
100 following largest customers | 26,491,650 | 4.6% | 36,817,237 | 5.5% |
Rest of customers | 232,672,588 | 40.4% | 258,032,086 | 38.7% |
TOTAL | 576,599,237 | 100.0% | 666,505,265 | 100.0% |
47
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE I – BREAKDOWN OF FINANCIAL LIABILITIES FROM REMAINING TERMS
Item | Remaining terms for maturity | |||||||
| 1 month | 3 months | 6 months | 12 months | 24 months | Up to 24 months | Total | |
Deposits | | | | | | | | |
Non-financial public sector | 26,165,409 | 2,563,713 | - | - | - | - | 28,729,122 | |
Financial sector | 57,697 | - | - | - | - | - | 57,697 | |
Non-financial private sector and residents abroad | 500,559,083 | 39,411,367 | 18,242,968 | 208,017 | 335 | - | 558,421,770 | |
Liabilities at fair value through profit and loss | 2,071,154 | - | - | - | - | - | 2,071,154 | |
Other financial liabilities | 27,021,656 | 229,711 | 315,477 | 566,606 | 649,071 | 649,377 | 29,431,898 | |
Financing received from the Argentine Central Bank and other financial institutions | 964,900 | 1,399,819 | 994,458 | 1,703,097 | 1,239,846 | 625,815 | 6,927,935 | |
TOTAL | 556,839,899 | 43,604,610 | 19,552,903 | 2,477,720 | 1,889,252 | 1,275,192 | 625,639,576 |
As of March 31, 2023:
48
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE L - ASSETS AND LIABILITIES IN FOREIGN CURRENCY
As of March 31, 2023 and December 31, 2022:
Items | As of March 31, 2023 | As of March 31, 2023 (per currency) | As of December 31, 2022 | |||
Dollar | Euro | Real | Others | |||
ASSETS |
|
|
|
|
|
|
Cash and Due from Banks | 40,683,970 | 38,403,604 | 1,640,317 | 17,463 | 622,586 | 47,115,669 |
Debt securities at fair value through profit or loss | 10,620,932 | 10,620,932 | - | - | - | 1,740,429 |
Derivatives | 42,821 | 42,821 | - | - | - | 67,804 |
Other financial assets | 1,758,788 | 1,758,788 | - | - | - | 2,154,342 |
Loans and other financing | 21,634,232 | 21,632,320 | 1,249 | - | 663 | 22,153,942 |
Other Debt Securities | 16,394,584 | 16,394,584 | - | - | - | 11,837,534 |
Financial assets pledged as collateral | 1,235,947 | 1,235,947 | - | - | - | 1,180,524 |
Other non-financial assets | 309,288 | 308,381 | 907 | - | - | 162,352 |
TOTAL ASSETS | 92,680,562 | 90,397,377 | 1,642,473 | 17,463 | 623,249 | 86,412,596 |
| | | | | | |
LIABILITIES | | | | | | |
Deposits | 59,467,570 | 58,597,334 | 870,236 | - | - | 66,904,516 |
Non-financial public sector | 2,276,220 | 2,275,890 | 330 | - | - | 2,343,875 |
Financial sector | 7,499 | 7,499 | - | - | - | 1,860 |
Non-financial private sector and foreign residents | 57,183,851 | 56,313,945 | 869,906 | - | - | 64,558,781 |
Liabilities at fair value with changes in results | 260,946 | 260,946 | - | - | - | 1,057,948 |
Other financial liabilities | 4,513,653 | 4,031,626 | 456,757 | 33 | 25,237 | 5,197,423 |
Financing received from the Argentine Central Bank and other financial institutions | 2,778,912 | 2,778,912 | - | - | - | 2,082,164 |
Other non-financial liabilities | 429,957 | 429,953 | 1 | - | 3 | 362,119 |
TOTAL LIABILITIES | 67,451,038 | 66,098,771 | 1,326,994 | 33 | 25,240 | 75,604,170 |
| | | | | | |
NET POSITION | 25,229,524 | 24,298,606 | 315,479 | 17,430 | 598,009 | 10,808,426 |
49
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE R – LOAN LOSS RISK PROVISIONS
The balance of loan loss risk provisions as of March 31, 2023 is presented below:
Items | Balances at the beginning of fiscal period | ECL of the following 12 months | ECL of remaining life of the financial asset | Monetary inocme produced by provisions | ||
FI significant credit risk increase | FI with credit impairment | FI with credit impairment either purchased or produced | ||||
Other financial assets | 181,533 | (73,054) | - | - | (6,304) | 102,175 |
Loans and other financing | 14,866,944 | (1,026,659) | (353,509) | 2,383,634 | (2,833,280) | 13,037,130 |
Other financial entities | 6,739 | 1,850 | - | - | (1,533) | 7,056 |
Non-financial private sector and residents abroad | 14,860,205 | (1,028,509) | (353,509) | 2,383,634 | (2,831,747) | 13,030,074 |
Overdrafts | 341,869 | (78,440) | 35,555 | 64,258 | (64,848) | 298,394 |
Documents | 228,221 | (45,918) | (5,959) | 3,667 | (32,136) | 147,875 |
Mortgages | 525,002 | 6,563 | 7,817 | (106,446) | (77,290) | 355,646 |
Pledge loans | 833,940 | (45,980) | (73,666) | (78,677) | (113,475) | 522,142 |
Personal Loans | 5,189,411 | (111,858) | (168,554) | 923,331 | (1,041,221) | 4,791,109 |
Credit cards | 6,150,572 | (583,451) | (219,531) | 1,427,254 | (1,209,484) | 5,565,360 |
Financial lease | 109,628 | (1,883) | 31,230 | 2,585 | (25,272) | 116,288 |
Others | 1,481,562 | (167,542) | 39,599 | 147,662 | (268,021) | 1,233,260 |
Other debt securities | 47,257 | (1,665) | - | - | (8,140) | 37,452 |
Eventual commitments | 106,110 | 40,881 | - | - | (26,241) | 120,750 |
TOTAL PROVISIONS | 15,201,844 | (1,060,497) | (353,509) | 2,383,634 | (2,873,965) | 13,297,507 |
Separate Condensed Interim Financial Statements
For the three-month period ended on
March 31, 2023, presented on comparative basis in homogeneous currency
51
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
As of March 31, 2023and December 31, 2022
(Expressed in thousands of pesos in homogeneous currency)
| | Notes and Schedules | 03/31/2023 | 1/31/2022 |
| ASSETS | | | |
| Cash and due from banks | 2 and 5.1 | 476,007 | 440,263 |
| Cash | | | |
| Financial institutions and correspondents | | 476,007 | 440,263 |
| Other local and financial institutions | | 476,007 | 440,263 |
| Other financial assets | 3, 5.2 and 8 | 377,934 | 429,709 |
| Other debt securities | 3, 5.3 and A | 2,182,881 | 2,671,769 |
| Current income tax assets | | | |
| Investment in subsidiaries, associates and joint ventures | 4 and 5.4 | 95,894,294 | 95,252,514 |
| Intangible Assets | 5.5 and G | 14,389,218 | 14,428,558 |
| Deferred income tax assets | 8 | 81,062 | 171,339 |
| Other Non-financial assets | 5.6 and 8 | 128,368 | 135,698 |
| TOTAL ASSETS | | 113,529,764 | 113,529,850 |
| | | | |
| LIABILITIES | | | |
| Deferred income tax liability | 8 | 83,690 | 170,286 |
| Other Non-Financial Liabilities | 5.7 and 8 | 291,447 | 342,373 |
| TOTAL LIABILITIES | | 375,137 | 512,659 |
| | | | |
| SHAREHOLDERS' EQUITY | | | |
| Capital stock | 9 | 442,671 | 444,411 |
| Paid in capital | | 103,289,842 | 103,289,842 |
| Capital Adjustments | | 10,660,571 | 10,802,066 |
| Own shares in portfolio | | 14,051 | 12,311 |
| Comprehensive adjustment of shares in portfolio | | 1,142,651 | 1,001,156 |
| Cost of treasury stock | | (2,019,603) | (1,683,887) |
| Earnings Reserved | | 7,547,912 | 7,547,912 |
| Reserve | | (9,652,207) | (4,311,109) |
| Other comprehensive income | | 1,171,278 | 1,255,587 |
| Net Income for the period | | 557,461 | (5,341,098) |
| TOTAL SHAREHOLDERS' EQUITY | | 113,154,627 | 113,017,191 |
| TOTAL NET LIABILITIES AND SHAREHOLDERS' EQUITY | | 113,529,764 | 113,529,850 |
| | | | |
The accompanying notes and schedules are an integral part of the separate condensed interim financial statements.
52
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For three-month period on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
| | Notes | | |
| | | 03/31/2023 | 03/31/2022 |
| Interest income | 5.8 | 295,614 | 56,521 |
| Net interest income | | 295,614 | 56,521 |
| Net income from financial instruments at fair value through profit or loss | 5.9 | 15,203 | 197,578 |
| Result from derecognition of assets measured at amortized cost | | (59,142) | (5,123) |
| Exchange rate difference on gold and foreign currency | | 61,993 | 74,849 |
| NIFFI and Exchange Rate Differences | | 18,054 | 267,304 |
| Subtotal | | 313,668 | 323,825 |
| Other operating income | 5.10 | 202,444 | 686,241 |
| Result from exposure to changes in the purchasing power of the currency | | (556,635) | (610,894) |
| Net operating income | | (40,523) | 399,172 |
| Personnel expenses | 5.11 | (15,440) | (12,244) |
| Administration expenses | 5.12 | (87,418) | (111,713) |
| Depreciation and impairment of non-financial assets | | (39,340) | (55,160) |
| Other operating expenses | 5.13 | (9,095) | (15,596) |
| Operating income | | (191,816) | 204,459 |
| Profit of subsidiaries and associates | 5.14 | 766,847 | (159,668) |
| Income before taxes | 5.8 | 575,031 | 44,791 |
| Income tax | | (17,570) | (50,901) |
| Net income for the period | | 557,461 | (6,110) |
| | | | |
The accompanying notes and schdules are an integral part of the separate condensed interim financial statements.
53
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the three-month period on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
| | |
| 03/31/2023 | 03/31/2022 |
NUMERATOR | | |
Net income for the period attributable to owners of the parent company | 557,461 | (6,110) |
PLUS: Diluting events inherent to potential ordinary shares | - | |
Net income attributable to owners of the parent company adjusted by dilution | 557,461 | (6,110) |
| | |
DENOMINATOR | | |
| | |
Weighted average of ordinary shares | 442,897 | 456,722 |
PLUS: Weighted average of number of ordinary shares issued with dilution effect, | - | - |
Weighted average of number of ordinary shares issued of the year adjusted by dilution effect | 442,897 | 456,722 |
| | |
Basic Income per share | 1.26 | (0.01) |
Diluted Income per share | 1.26 | (0.01) |
The accompanying notes and schdules are an integral part of the separate condensed interim financial statements.
54
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the three-month period on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
| | | |
| | 03/31/2023 | 03/31/2022 |
| Net income for the period | 557,461 | (6,110) |
| Components of Other Comprehensive Income not to be reclassified to profit or loss | | |
| Participation of Other Comprehensive income of associates and joint ventures recorded through the utilization of the participation method | (157,444) | (255,348) |
| Income of the period from the participation of Other Comprehensive income of associates and joint ventures recorded through the utilization of the participation method | (157,444) | (255,348) |
| Total Other Comprehensive Income not to be reclassified to profit or loss | (157,444) | (255,348) |
| Components of Other Comprehensive Loss to be reclassified to profit or loss | | |
| Translation difference of Financial Statements | 31,657 | 17,823 |
| Conversion difference for the period | 31,657 | 17,823 |
| Gains or losses on financial instruments at fair value with changes in OCI (Point 4.1.2a of IFRS 9) | 41,478 | (29,071) |
| Loss for the period from financial instrument at fair value through other comprehensive income | 63,811 | (41,531) |
| Income tax | (22,333) | 12,460 |
| Total Other Comprehensive Loss to be reclassified to profit or loss | 73,135 | (11,248) |
| Total Other Comprehensive Income | (84,309) | (266,596) |
| Total Comprehensive Income | 473,152 | (272,706) |
| | | |
The accompanying notes and schdules are an integral part of the separate separate condensed interim financial statements.
55
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
For the three-month period ended on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Items | Capital Stock (Note 9) | Capital Adjustments | Paid in capital | Own shares in portfolio | Comprehensive adjustment of own shares in portfolio | Cost of treasury stock | Legal reserve | Other reserves | Retained earnings | Other comprehensive income | Total shareholders´ equity | ||
| | | | | | | | | | Revaluation of PPE | Conversion difference | Earnings or los accrued by financial institutions at FV through profit and loss | |
Balance at December 31, 2022 | 444,411 | 10,802,066 | 103,289,842 | 12,311 | 1,001,156 | (1,683,887) | 1,261,114 | 6,286,798 | (9,652,207) | 1,214,771 | 75,281 | (34,465) | 113,017,191 |
Acquisition of own shares | (1,740) | (141,495) | - | 1,740 | 141,495 | (335,716) | - | - | - | - | - | - | (335,716) |
Net Income for the period | - | - | - | - | - | - | - | - | 557,461 | - | - | - | 557,461 |
Other comprehensive income for the period | - | - | - | - | - | - | - | - | - | (157,444) | 31,657 | 41,478 | (84,309) |
Balance at March 31, 2023 | 442,671 | 10,660,571 | 103,289,842 | 14,051 | 1,142,651 | (2,019,603) | 1,261,114 | 6,286,798 | (9,094,746) | 1,057,327 | 106,938 | 7,013 | 113,154,627 |
The accompanying notes and schedules are an integral part of the separate financial statements.
56
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´
For the three-month period ended on March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Items | Capital Stock (Note 9) | Capital Adjustments | Paid in capital | Legal reserve | Other reserves | Retained earnings | Other comprehensive income | Total shareholders´ equity | ||
| | | | | | | Revaluation of PPE | Conversion difference | Earnings or los accrued by financial institutions at FV through profit and loss | |
Balance at December 31, 2022 | 456,722 | 11,803,222 | 103,289,842 | 1,261,114 | 9,731,078 | (7,153,546) | 2,837,141 | 960 | 29,071 | 122,255,604 |
Net Income for the period | - | - | - | - | - | (6,110) | - | - | - | (6,110) |
Other comprehensive income for the period | - | - | - | - | - | - | (255,348) | 17,823 | (29,071) | (266,596) |
Balance at March 31, 2023 | 456,722 | 11,803,222 | 103,289,842 | 1,261,114 | 9,731,078 | (7,159,656) | 2,581,793 | 18,783 | - | 121,982,898 |
The accompanying notes and schedules are an integral part of the separate financial statements.
57
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF CASH FLOW
For the three-month period ended on March 31,2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
03/31/2023 | 03/31/2022 | |
---|---|---|
CASH FLOW FROM OPERATING ACTIVITIES | | |
| | |
Net income for the period before Income Tax | 575,031 | 44,791 |
| | |
Adjustments to obtain flows from operating activities: | | |
Results of associates and join ventures | (766,847) | 159,668 |
Depreciation and impairment | 39,340 | 55,160 |
Exchange rate difference on gold and foreign currency | (61,993) | (74,849) |
Interests from loans and other financing | (295,614) | (56,521) |
Result from exposure to changes in the purchasing power of the currency | 556,635 | 610,894 |
Net income from financial instruments at fair value through profit or loss | (15,203) | (197,578) |
| | |
(Increases) / decreases from operating assets: | | |
Other debt securities | 863,516 | 1,195,970 |
Other assets | 302,917 | (802,155) |
| | |
Increases / (decreases) from operating liabilities: | | |
Other liabilities | (50,925) | (77,735) |
Income Tax Payments | (36,223) | - |
| | |
Net cash provided by / (used in) operating activities (A) | 1,110,634 | 857,645 |
| | |
CASH FLOW FROM INVESTING ACTIVITIES | | |
| | |
Payments: | | |
Purchase of subsidiaries | (719) | (212,142) |
| | |
Collections: | | |
Sale of PPE, intangible assets and other assets | - | 3,920 |
| | |
Net cash used in investing activities (B) | (719) | (208,222) |
| | |
CASH FLOWS FROM FINANCING ACTIVITIES | | |
| | |
Payments: | | |
Changes in the participation of subsidiaries that do not give rise to loss of control | - | (482,377) |
Collections: | | |
Repurchase of own shares | (335,716) | - |
Dividends collected | - | 970,408 |
| | |
Net cash used in financing activities (C) | (335,716) | 488,031 |
| | |
Effects of exchange rate changes and exposure to changes in the purchasing power of money on cash and cash equivalents (D) | (342,493) | (4,991) |
| | |
TOTAL CHANGES IN CASH FLOW | | |
Net increase / (decrease) in cash and cash equivalents (A+B+C+D) | 431,706 | 1,132,463 |
Cash and cash equivalents at the beginning of the period (Note 2) | 560,326 | 3,003,992 |
Result from exposure to changes in the purchasing power of the currency in cash and equivalents | (152,149) | (531,054) |
Cash and cash equivalents at the end of the period (Note 2) | 839,883 | 3,605,401 |
| | |
| | |
The accompanying notes and schedules are an integral part of the separate condensed interim financial statements
58
GRUPO SUPERVIELLE S.A.
Notes to Separate Financial Statements
As of March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
1. | ACCOUNTING STANDARDS AND BASIS OF PREPARATION |
Grupo Supervielle S.A. (hereinafter, “the Group”), is a company whose main activity is the investment in other companies, Its main income is given by the distribution of dividends of such companies and the raising of earnings of other financial assets.
The main investment of the Company accounts for the stake in Banco Supervielle S.A., a financial entity governed pursuant to Law N° 21,526 of Financial Statements and subject to provisions issued by the Argentine Central Bank, in virtue of which the entity has adopted valuation and disclosure guidelines pursuant to provisions included in Title IV, chapter I, Section I, article 2 of the Amended Text 2013 issued by the National Securities Commissions.
These separated condensed interim financial statements have been approved by the Board of Directors of the Company at its meeting held on May 22, 2023.
1.1. | Differences between the accounting framework established by the BCRA and IFRS |
These separated condensed interim financial statements have been prepared pursuant to: (i) provisions set by Intenational Accounting Standards N° 34, “Interim Financial Information” (IAS 34) and (ii) the accouting information framework set by the Argentine Central Bank which is based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and interpretations issued by the International Financial Reporting Standards Interpretation Committee, with the following exceptions:
• temporary exception from the application of IFRS 9 “Financial Instruments” on debt instruments of the Non-Financial Public Sector. Had IFRS 9 been applied to the debt instruments of the Non-Financial Public Sector, a net reduction in income tax of 455 million and 166 million would have been recorded in the Bank's equity as of March 31, 2023 and December 31, 2022 , respectively.
• exception for the valuation of dual bonds. Had IFRS 9 been applied, and the bonds valued at fair value through profit or loss, a reduction net of income tax of 78 million and 244 million would have been recorded in the Bank's equity as of March 31, 2023 and 31 December 2022, respectively.
In accordance with the provisions of IAS 34, the interim financial information will include an explanation of events and transactions, occurred since the end of the last reporting period, that are significant for understanding the changes in the financial position, performance Group financial statements and cash flow statements with the objective of updating the information corresponding to the latest financial statements for the year ended December 31, 2022 (hereinafter “annual financial statements”). Therefore, these condensed interim consolidated financial statements do not include all the information required by complete financial statements prepared in accordance with International Financial Reporting Standards, therefore, for an adequate understanding of the information included therein, they must be read in conjunction with the annual financial statements.
1.2. | Preparation basis |
These separated financial statements have been prepared applying accounting policies and measurement criteria consistent with those applied by the Group for the preparation of the annual financial statements, except as described in Note 1.1.
The Gruop´s Board has concluded that these financial statements reasonably express the financial position, financial performance and cash flows.
The preparation of financial statements requires that the Group carries out calculations and evaluations that affect the amount of incomes and expenses recorded in the period. In this sense, calculations are aimed at the estimation of, for example, credit risk provisions, useful life of property, plant and equipment, impairments and amortizations, recoverable value of assets, income tax charges and the reasonable value of certain financial instruments. Future real results may defer from calculations and evaluations as of the date of these separate financial statements preparation.
As of these financial statements issuance date, such statements are pending of transcription to Inventory and Balance Sheet Book.
59
GRUPO SUPERVIELLE S.A.
Notes to Separate Financial Statements
As of March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
1.2.1. | Going concern |
As of the date of these separate financial statements there are no uncertainties with respect to events or conditions that may raise doubts regarding the possibility that the Group continues to operate normally as a going concern.
1.2.2. | Measuring unit |
Figures included in these financial statements are expressed in thousands of Argentine pesos, unless otherwise stated.
The Group´s financial statements recognice changes in the currency purchasing power until August 31, 1995, As from such date, in virtue of existing economic stability conditions and pursuant to Communication “A” 2365 issued by the Argentine Central Bank, accounting measurements were not re-expressed until December 31, 2001. In virtue of Communication “A” 3702 issued by the Argentine Central Bank, the application of the method was resumed and became effective on January 1, 2002, Previous accouting measurements were considered to be expressed in the currency as of December 31, 2001.
Pursuant to Communication “A” 3921 issued by the Argentine Central Bank, in compliance with Decree 664/03 issued by the National Executive Power, the application of the re-expression of financial statements in homogeneous currency was interrupted as from March 1, 2003. Therefore, the Group applied said re-expression until February 28, 2003.
In turn, Law N° 27.468 (B.O. 04/12/2018) amended article 10° of Law N° 23,928 and its amendments, thus establishing that the abolition of all legal and regulating standards that set and authorize price indexing, monetary updating, cost changes or any other manner of re-increasing debts, taxes, prices or fees for goods, works or services does not include financial statements, regarding which the application of article 62 of the General Corporations Law N° 19550 (T.O 1984) and its amendments shall prevail. Likewise, the aforementioned legal body set de abolition of Decree N° 1269/2002 dated on July 16, 2002 and its amendments and instructed the National Executive Power, through its controlling agencies, to set the date as from which said regulations became into effect in relation with financial statements to be submitted. Therefore, on February 22, 2019, the Argentine Central Bank issued Communication “A” 6651 which established that financial statements shall be prepared in a homogeneous currency as from January 1, 2020. Therefore, these financial statements have been re-expressed as of September 30, 2022.
1.2.3. | Comparative information |
The balances for the year ended December 31, 2022 and for the three-month period ended March 31, 2022 that are disclosed in these financial statements for comparative purposes arise from the financial statements as of such dates, which were prepared with the regulations in force in said year/period.
It´s worth mentioning that, given the restatement of financial statements pursuant to IAS 29 and the provisions of Communication “A” 7211, the Group adjusted for inflation the figures included in the Statement of Financial Position, Income Statement, Other Comprehensive Income and Changes in the Shareholders’ Equity Statement and respective notes as of March 31, 2022 and December 31, 2022 in order to record them in homogeneous currency.
1.2.4. | Changes in accounting policies and new accounting standards |
With the approval of new IFRS, modifications or derogations of the standards in force, and once such changes are adopted through Adoption Bulletins issued by Federación Argentina de Consejos Profesionales en Ciencias Económicas (FACPCE), the Argentine Central Bank will determine the approval of such standards for financial entities, In general terms, no anticipated IFRS application shall be allowed unless upon adoption such anticipated measure is specified.
The following are changes that were made effective over the course of the quarter ended on March 31, 2023:
(a) | IFRS 17 “Insurance contracts” |
On May 18, 2017, IASB issued IFRS 17 “Insurance contracts” which provides a comprehensive framework based on principles for measurement and presentation of all insurance contracts. The new rule will supersede IFRS 4 Insurance contracts and requires that insurance contracts be measured using cash flows of existing enforcement and that income be recognized as the service is rendered during the coverage period. The standard will come into force for the fiscal years beginning as from January 1, 2023.
The Group evaluated that there will be no significant impact from the application of this standard.
60
GRUPO SUPERVIELLE S.A.
Notes to Separate Financial Statements
As of March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
(b) | Amendments to IAS 1 “Presentation of Financial Statements”, IFRS Practice Statement 2 and IAS 8 “Accounting Policies, changes in accounting estimates and errors” |
The IASB amended IAS 1, “Presentation of Financial Statements”, to require companies to disclose material accounting policy information rather than significant accounting policy information. The amendment also clarifies that accounting policy information is expected to be material or of relative importance if, without it, users of the financial statements would be unable to understand other material information, or of relative importance, in the financial statements concerning significant accounting standards. To support this amendment, the Board also amended IFRS Practice State 2, “Making Materiality Judgments”, to provide guidance on how to apply the concept of materiality to accounting policy disclosures.
The amendment to IAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors”, helps to distinguish between changes in accounting policies from changes in accounting estimates. This distinction is important because changes in accounting estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied retrospectively to past transactions and other past events as well as to those of the current period.
These amendments are applicable to annual periods beginning on or after January 1, 2023. Early application is allowed. Changes shall be applied prospectively.
The Group evaluated that there will be no significant impact from the application of this standard.
(c) | Amendments to IAS 12 Deferred tax related to assets and liabilities arising from a single transaction |
These amendments establish that deferred taxes arising from a single transaction that, on initial recognition, give rise to taxable and deductible temporary differences of the same value shall be recognized. This will generally apply to transactions such as leases (for lessees) and decommissioning or remediation obligations, where the recognition of deferred tax assets and liabilities will be required. These amendments shall be applied to transactions that occur on or after the beginning of the earliest comparative period presented. Likewise, deferred tax assets (to the extent that it is probable that they can be used) and deferred tax liabilities shall be recognized at the beginning of the earliest comparative period for all deductible or taxable temporary differences associated with:
-Right-of-use assets and lease liabilities, and
-Decommissioning, restoration and similar liabilities and the corresponding amounts recognized as part of the cost of the related asset.
The cumulative effect of initially applying the amendments is recognized as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at that date.
Previously, IAS 12 did not establish any particular accounting treatment for the tax effects of leases that were recognized on the balance sheet and for similar transactions, so different approaches were considered acceptable. Entities that are already recognizing deferred taxes on these transactions will not have an impact on their financial statements.
The amendments will be effective for fiscal years beginning on or after January 1, 2023 with early adoption permitted.
The Group evaluated that there will be no impact from the application of this standard.
The changes that have not entered into force as of March 31, 2023 are set out below:
(a) Amendments to IAS 16 – Leases
These amendments include requirements for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and leaseback after the transaction date. Sale and leaseback transactions where some or all of the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted.
The amendments will be effective for the annual periods beginning on or after January 1, 2024.
Grupo Supervielle is currently evaluating the impact that this amendment may have on its consolidated financial statements.
61
GRUPO SUPERVIELLE S.A.
Notes to Separate Financial Statements
As of March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
(b) Amendments to IAS 1 – Non-current assets with covenants.
These amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability.
The amendments will be effective for the annual periods beginning on or after January 1, 2024.
Grupo Supervielle is currently evaluating the impact that this amendment may have on its consolidated financial statements.
1.2.5. | Impairment of financial assets |
The Group evaluates, based on a prospective approach, expected credit losses (“ECL”) related to financial assets rated at amortized cost or fair value with changes in another comprehensive income, the exposure resulting from loan commitments and financial guarantee contracts with the scope set by Communication “A” 6847 issued by the Argentine Central Bank.
The Group measures ECL of financial instruments reflecting the following:
IFRS 9 sets forth the following “Three stages” model for the impairment based on changes in the credit quality from initial recognition:
The following chart summarizes the impairment requirements pursuant to IFRS 9 (for financial assets that do not entail impairment on credit value, either purchased or produced:
Changes in the credit quality since initial recognition | ||
Stage 1 | Stage 2 | Stage 3 |
(initial recognition) | (significant increase of credit risk since initial recognition) | (Impaired credit) |
12 months ECL | Lifetime ECL |
There have been no significant changes in the judgments and key assumptions adopted by the Group for the measurement of PCE, with respect to what was reported in the financial statements as of December 31, 2022.
62
GRUPO SUPERVIELLE S.A.
Notes to Separate Financial Statements
As of March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
1.3. | Critical accounting policies and estimates |
The preparation of consolidated financial statements pursuant to the accouting framework set by the Argentine Central Bank requires the utilization of certain key accouting forecasts. Likewise, such framework requires that the Senior Management takes decisions regarding the application of accounting standards set by the Argentine Central Bank and accounting policies of the Group.
The Group has identified the following areas that entail a higher judgement and complexity degree, or areas where assumptions and forecasts play a significant role for consolidated financial statements which play a key role in the understanding of underlying accounting/financial accouting reporting risks:
(a) | Fair value of derivatives and other isntruments |
The fair value of financial instruments that do not list in cative markets are defined through the utilization of valuation techniques. Such techniques are validated and regularly reviewed by qualified independent personnel of the area that developed such technqiues. All models are evaluated and adjusted before being utilized in order to make sure that results express current information and comparative market prices. Where possible, models only use observable information; however, certain factors, such as implied rates in the last available bidding for similar securities and spot rate curves, require the use of estimates. Changes in assumptions regarding such factors may impact on the fair value reported for financial instruments
(b) | Allowances for loan losses and advances |
The Group recognizes the allowance for loan losses under the expected credit loss method included in IFRS 9. The most significant judgements of the model relate to defining what is considered to be a significant increase in credit risk and in making assumptions and estimates to incorporate relevant information about past events, current conditions and forecasts of economic conditions. The impact of the forecasts of economic conditions are determined based on the weighted average of three internally developed macroeconomic scenarios that take into consideration the Group´s economic outlook as derived through forecast macroeconomic variables, which include Inflation rate, monthly economic activity estimator and private sector wage. A high degree of uncertainty is involved in making estimations using assumptions that are highly subjective and very sensitive to the risk factors.
Note 1.2 to the consolidated condensed interim financial statements provides more detail of how the expected credit loss allowance is measured.
(c) | Impairment of non-financial assets |
Intangible assets with finite lives and property, plants and equipment are amortized or depreciated along their useful lives in a lineal manner. The Group monitores the conditions related to these assets to determine whether events and circumstances justify a review of the amortization and remaining depreciation period and whether there are factors or circumstances that imply an impairment in the value of assets that cannot be recovered.
The Group has applied the judgement in the identification of impairment indicators for property, plant and equipment and intangible assets. The Group has determined that there were no indications of impairment for any of the periods presented in its financial statement; therefore, no recoverable value has been estimated, except for certain real property that, due to the post-pandemic macro context and a devaluation of the dollar well below inflation, generated deterioration.
(d) | Income tax and deferred tax |
A significant judgement is required to determine liabilities and assets from current and deferred taxes, The current tax is provisioned in accordance with the amounts expected to be paid and the deferred taz is provisioned over temporary differences between tax basis of assets and liabilities and book values to aliquots expected to be in force when reversing them.
Assets from deferred tax are recognized upon the possibility of relying on future taxable earnings against which temporary differences can be utilized, based on the Senior Management´s assumptions regarding amounts and opportunities of future taxable earnings, Later, it is necessary to determine whether assets from deferred tax are likely to be utilized and set off future taxable earnings, Real results may differ from estimates, such as changes in tax legislation or the result of the final review of affidavits issued by tax authorities and tax courts.
63
GRUPO SUPERVIELLE S.A.
Notes to Separate Financial Statements
As of March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Likely future tax earnings and the number of tax benefits are based on a medium term business plan prepared by the administration. Such plan is based on reasonable expactations.
2. | CASH AND DUE FROM BANKS |
Cash and equivalents are considered to be the total of the item Cash and Due from Banks and Investments with maturity up to 90 days from the date of their acquisition or constitution, according to the following detail:
| 03/31/2023 | 12/31/2022 | 03/31/2022 | 12/31/2021 |
Cash and due from banks | 476,007 | 440,263 | 944,022 | 1,034,248 |
Other financial assets | 363,876 | 120,063 | 2,661,379 | 1,969,744 |
Cash and cash equivalents | 839,883 | 560,326 | 3,605,401 | 3,003,992 |
Reconciliation between the balances of the Statement of Financial Position and those items considered cash equivalents in the Cash Flow Statement:
Item | 03/31/2023 | 12/31/2022 | 03/31/2022 | 12/31/2021 |
---|---|---|---|---|
Cash and due from Banks | | | | |
As per Statement of Financial Position | 476,007 | 440,263 | 944,022 | 1,034,248 |
As per the Statement of Cash Flows | 476,007 | 440,263 | 944,022 | 1,034,248 |
Other financial assets | | | | |
As per Statement of Financial Position | 377,934 | 429,709 | 3,346,291 | 2,814,458 |
Other financial assets not considered as cash equivalents | (14,058) | (309,646) | (684,912) | (844,714) |
As per the Statement of Cash Flows | 363,876 | 120,063 | 2,661,379 | 1,969,744 |
3. | FAIR VALUES |
Fair value is defined as the amount by which an asset may be exchanged or a liability may be settled, in an arm’s length orderly transaction between knowledgeable principal market participants (or more advantageous) at the date of measurement of the current market conditions regardless of whether such price is directly observable or estimated utilizing a valuation technique under the assumption that the Group is a going concern.
When a financial instrument is sold in a liquid and active market, its settled price in the market in a real transaction provides the best evidence of its fair value. When a stipulated price is not settled in the market or when it cannot be an indicator of a fair value of the instrument, in order to determine such fair value, another similar instrument’s fair value may be used, as well as the analysis of discounted flows or other applicable techniques, Such techniques are significantly allocated by the assumptions used.
The Group classifies the fair values of the financial instruments into 3 levels, according to the quality of the data used for their determination.
Fair Value level 1: The fair value of financial instruments traded in active markets (such as publicly-traded derivatives, debt securities or available for sale) is based on market quoted prices as of the date of the reporting period, If the quote price is available and there is an active market for the instrument, it will be included in level 1.
Fair Value level 2: The fair value of financial instruments which are not traded in active markets, such as over-the-counter derivatives, is determined using valuation techniques that maximize the use of observable market data and rely the least possible on the Group’s specific estimates, If all significant inputs required to fair value a financial instrument are observable, such instrument is included in level 2.
Fair Value level 3: If one or more significant inputs are not based on observable market data, the instrument is included in level 3.
The portfolio of financial instruments valued at fair value held by the Group is detailed below, at the end of the period ended March 31, 2023 and December 31, 2022:
64
GRUPO SUPERVIELLE S.A.
Notes to Separate Financial Statements
As of March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Portfolio of instruments at 03/31/2023 | FV Level 1 | FV Level 2 | FV Level 3 |
Assets | | | |
Other financial assets | 2,182,881 | - | - |
Other financial assets | 377,934 | - | - |
Total Assets | 2,560,815 | - | - |
Portfolio of instruments at 03/31/2022 | FV Level 1 | FV Level 2 | FV Level 3 |
Assets | | | |
Other Debt securities | 2,671,769 | - | - |
Other financial assets | 429,709 | - | - |
Total Assets | 3,101,478 | - | - |
Fair Value of Other Financial Instruments
The following chart includes a comparison between the fair value and the accounting value of financial instruments not recorded at fair value as of March 31, 2023 and December 31, 2022
Other Financial Instruments as of 03/31/2023 | Accounting value | Fair value | FV Level 1 | FV Level 2 | FV Level 3 |
Financial Assets |
|
|
|
|
|
Cash and due from banks | 476,007 | 476,007 | 476,007 | - | - |
Total Assests | 476,007 | 476,007 | 476,007 | - | - |
Other Financial Instruments as of 12/31/2022 | Accounting value | Fair value | FV Level 1 | FV Level 2 | FV Level 3 |
Financial Assets |
|
|
|
|
|
Cash and due from banks | 440,263 | 440,263 | 440,263 | - | - |
Total Assests | 440,263 | 440,263 | 440,263 | - | - |
65
GRUPO SUPERVIELLE S.A.
Notes to Separate Financial Statements
As of March 31, 2023 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
4. | INVESTMENT IN SUBSIDIARIES AND ASSOCIATES |
Subsidiary | Class | Market Value/Nominal | Number | Issuers’ last Financial Statements | Book value at 03.31.2023 | Book value at 12.31.2022 | |||
Main Activity | Capital Stock | Shareholders’ equity | | ||||||
Banco Supervielle S.A. | Ord. | 1 | 805,533,007 | Commercial Bank | 829,564 | 87,446,426 | 84,889,019 | 84,994,498 | |
IUDÚ Compañia Financiera S.A | Ord. | 1 | 32,179,951 | Financial Company | 931,223 | 9,756,241 | 471,041 | 466,392 | |
Sofital S.A.F.e.I.I. | Ord. | 1 | 20,854,642 | Financial operations and administration of securities | 21,544 | 4,266,591 | 2,668,177 | 2,644,835 | |
Tarjeta Automática S.A. | Ord. | 1 | 10,720,696 | Credit Cards | 136,509 | 502,604 | 39,040 | 38,201 | |
Supervielle Asset Management S.A. | Ord. | 1 | 1,336,915 | Mutual Fund Management | 1,407 | 1,888,740 | 1,794,306 | 1,479,056 | |
Espacio Cordial de Servicios S.A. | Ord. | 1.000 | 1,273 | Trading of products and services | 1,340 | 293,599 | 219,741 | 245,064 | |
Supervielle Seguros S.A. | Ord. | 1 | 1,543,750 | Insurance company | 1,625 | 3,704,030 | 3,522,667 | 3,319,482 | |
FF Fintech SUPV I | Ord. | - | 304,743,797 | Financial Trust | 120,039 | 366,209 | 330,634 | 352,785 | |
Micro Lending S.A.U. | Ord. | 1 | 132,223,770 | Commercial Bank | 132,224 | 833,703 | 833,703 | 753,515 | |
Invertir Online | InvertirOnline S.A.U | Ord. | 100 | 2.438 | Settlement and Clearing Agent | 244 | 447,210 | 458,640 | 310,105 |
| Portal Integral de Inversiones S.A.U | Ord. | 0,01 | 80,451,077 | Representations | 805 | 11,282 | | |
| IOL Holding S.A. | Ord. | 1 | 30,177,500 | Financial Company | 84,490 | 123,478 | 112,510 | 124,351 |
Supervielle Productores Asesores de Seguros S.A. | Ord. | 1 | 58,667,291 | Insurance Broker | 61,599 | 140,535 | 133,847 | 86,253 | |
Supervielle Agente de Negociación S.A.U. | Ord. | 1.000 | 55,027 | Settlement and Clearing Agent | 55,027 | 415,256 | 415,256 | 431,672 | |
Dólar IOL S.A.U. | Ord. | 3.000 | 1,500 | Services and exchange agency | 4,500 | 5,713 | 5,713 | 6,305 | |
Total Investments in subsidiaries, associates and joint ventures | 95,894,294 | 95,252,514 |
66
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
5. | COMPOSITION OF THE MAIN ITEMS OF THE SEPARATE STATEMENT OF COMPREHENSIVE INCOME |
| 03/31/2023 | 12/31/2022 |
| | |
5.1 Cash and due from banks | | |
Financial institutions and correspondents | 476,007 | 440,263 |
| 476,007 | 440,263 |
| | |
5.2 Other financial assets | | |
Debtors for cash operations to be settled | 363,876 | 367,799 |
Other investments | - | 58,555 |
Miscellaneous Debtors | 14,058 | 3,355 |
| 377,934 | 429,709 |
5.3 Other debt securities | | |
Public securities | 2,182,881 | 2,671,769 |
| 2,182,881 | 2,671,769 |
5.4 Investments in subsidiaries. associates and joint ventures | | |
Banco Supervielle S.A. | 84,889,019 | 84,994,498 |
IUDÚ Compañia Financiera S.A | 471,041 | 466,392 |
Sofital S.A.F. e I.I. | 2,668,177 | 2,644,835 |
Tarjeta Automática S.A. | 39,040 | 38,201 |
Supervielle Asset Management S.A. | 1,794,306 | 1,479,056 |
Espacio Cordial de Servicios S.A. | 219,741 | 245,064 |
Supervielle Seguros S.A. | 3,522,667 | 3,319,482 |
FF Fintech SUPV I | 330,634 | 352,785 |
Micro Lending S.A.U | 833,703 | 753,515 |
Invertir Online S.A.U e Portal Integral de Inversiones S.A.U. | 458,640 | 310,105 |
Supervielle Broker de Seguros S.A. | 133,847 | 86,253 |
Supervielle Agente de Negociación S.A.U. | 415,256 | 431,672 |
Dólar IOL S.A.U. | 5,713 | 6,305 |
IOL Holding S.A. | 112,510 | 124,351 |
| 95,894,294 | 95,252,514 |
5.5 Intangible Assets | | |
Goodwill – Businness combination | 11,929,284 | 11,929,284 |
Relations with clients | 1,744,092 | 1,783,432 |
Brand | 715,842 | 715,842 |
| 14,389,218 | 14,428,558 |
5.6 Other non-financial assets | | |
Retirement insurance | 115,692 | 119,073 |
Other non-financial assets | 12,676 | 16,625 |
| 128,368 | 135,698 |
| | |
5.7 Other non-financial liabilities | | |
Compensation and social charges payable | 8,802 | 7,533 |
Miscellaneous creditors | 282,645 | 334,840 |
| 291,447 | 342,373 |
| 03/31/2023 | 03/31/2022 |
---|---|---|
5.8. Interest income | | |
Earned interests | 6 | 182 |
Profit by government securities measure at amortized cost | 363,841 | 56,339 |
Profit by Public Securities operations | (68,233) | - |
| 295,614 | 56,521 |
| | |
| | |
5.9. Net from financial instruments at fair value through profit or loss | | |
Interest earned on Fixed Term Deposits | - | 84,850 |
Holding Result - CIF | 15,203 | 112,728 |
67
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
| 03/31/2023 | 03/31/2022 |
---|---|---|
| 15,203 | 197,578 |
5.10. Other operating income | | |
Subsidiaries’ advisory fees | 170,821 | 190,388 |
Royalties | 119 | 1,178 |
Other income | - | 482,380 |
Revaluation of retirement insurance contributions | 19,130 | 9,993 |
Foreign source commissions | 12,374 | 2,302 |
| 202,444 | 686,241 |
5.11. Personnel expenses | | |
Personnel expenses | 15,440 | 12,244 |
| 15,440 | 12,244 |
5.12. Administration expenses | | |
Bank expenses | 67 | 207 |
Professional fees | 22,962 | 25,639 |
Fees to directors and syndics | 38,140 | 59,735 |
Taxes. rates and contributions | 3,418 | 3,706 |
Insurance | - | 20 |
Expenses and office services | 3,853 | 5,160 |
Other expenses | 18,978 | 17,246 |
| 87,418 | 111,713 |
5.13. Other operating expenses | | |
Turnover tax from Service Activities | 8,547 | 9,578 |
Turnover tax from Financial Activities | 535 | 6,017 |
Cmpensatory interest | 13 | 1 |
| 9,095 | 15,596 |
5.14. Results from associates and joint ventures | | |
Results from equity investment in Banco Supervielle S.A | 51,967 | (3,929,226) |
Results from equity investment in IUDÚ Compañía Financiera S.A. | 4,649 | 4,009,361 |
Results from equity investment in Tarjeta Automática S.A. | 839 | (329,107) |
Results from equity investment in Supervielle Asset Management S.A. | 315,250 | 279,913 |
Results from equity investment in Espacio Cordial de Servicios S.A. | (25,324) | (160,314) |
Results from equity investment in Supervielle Seguros S.A. | 203,184 | 201,193 |
Results from equity investment in Sofital S.A.F. e I.I. | 23,343 | (102,095) |
Results from equity investment in Micro Lending S.A.U. | 80,188 | 30,103 |
Results from equity investment in InvertirOnline S.A. e Portal Integral de Inversiones S.A. | 148,535 | (51,485) |
Results from equity investment in FF Fintech S.A. | (22,870) | (17,247) |
Results from equity investment in Supervielle Productores Asesores de Seguros S.A. | 47,594 | - |
Results from equity investment in Bolsillo Digital S.A.U. | - | (63,953) |
Results from equity investment in Supervielle Agente de Negociación S.A.U. | (16,416) | 6,213 |
Results from equity investment in Dólar IOL S.A.U. | (592) | (1,865) |
Results from equity investment in IOL Holding S.A. | (43,500) | (31,159) |
| 766,847 | (159,668) |
6. | RESTRICTED ASSETS |
As of March 31, 2023 and December 31, 2022, the Group does not hold restricted assets,
7. | COMPANIES UNDER SECT, 33 OF CORPORATE LAW AND OTHER RELATED COMPANIES |
As of March 31, 2023 and December 31, 2022, corporations where Grupo Supervielle S.A. holds direct or indirect shares, and with which it consolidates its Financial Statements are the following:
68
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
Company | Condition | Legal Adress | Principal Activity | Percentage of direct participation | Percentage of direct and indirect participation | ||
---|---|---|---|---|---|---|---|
03/31/2023 | 12/31/2022 | 03/31/2023 | 12/31/2022 | ||||
Banco Supervielle S.A. (1) | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Commercial Bank | 97.10% | 97.10% | 99.90% | 99.90% |
IUDÚ Compañia Financiera S.A | Controlled | Reconquista 320, C.A.B.A., Argentina | Financial Company | 5.00% | 5.00% | 99.90% | 99.90% |
Tarjeta Automática S.A. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Credit Card and Consumer Loans | 7.85% | 7.85% | 99.91% | 99.91% |
Supervielle Asset Management S.A. | Controlled | San Martín 344, C.A.B.A., Argentina | Asset Management Company | 95.00% | 95.00% | 100.00% | 100.00% |
Sofital S.A.F. e I.I. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Financial operations and administration of marketable securities | 96.80% | 96.80% | 100.00% | 100.00% |
Espacio Cordial de Servicios S.A. | Controlled | Patricias Mendocinas 769, Ciudad de Mendoza, Argentina | Trading of products and services | 95.00% | 95.00% | 100.00% | 100.00% |
Supervielle Seguros S.A | Controlled | San Martin 344, C.A.B.A., Argentina | Insurance company | 95.00% | 95.00% | 100.00% | 100.00% |
Micro Lending S.A.U. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Financial Company | 100.00% | 100.00% | 100.00% | 100.00% |
Invertir Online S.A.U. | Controlled | San Martin 344, C.A.B.A., Argentina | Settlement and Clearing Agent | 100.00% | 100.00% | 100.00% | 100.00% |
Portal Integral de Inversiones S.A.U. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Representations | 100.00% | 100.00% | 100.00% | 100.00% |
IOL Holding S.A. | Controlled | Treinta y tres 1271, Montevideo, Uruguay | Financial Company | 99.99% | 99.99% | 100.00 | 100.00 |
Supervielle Productores Asesores de Seguros S.A. | Controlled | San Martin 344, C.A.B.A., Argentina | Insurance Broker | 95.24% | 95.24% | 100.00% | 100.00% |
Bolsillo Digital S.A.U. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Computer Services | - | - | 100.00% | 100.00% |
Supervielle Agente de Negociación S.A.U. | Controlled | Tres de Febrero 515, Rosario, Santa Fe | Settlement and Clearing Agent | 100.00% | 100.00% | 100.00% | 100.00% |
Dólar IOL S.A.U. | Controlled | Av. Colón 2535, Mar del Plata, Buenos Aires | Services and exchange agency | 100.00% | 100.00% | 100.00% | 100.00% |
(1) | Grupo Supervielle S.A.’s direct and indirect interest in Banco Supervielle votes amounts to 99,87% as of 03/31/23 and 12/31/22 |
In accordance with the resolutions of the Board of Directors dated January 28, 2022, Grupo Supervielle S.A. made an irrevocable capital contribution on account of future increases to IUDU Compañía Financiera S.A of $25,000,000 through the issuance of 1,762,666 common, registered, non-endorsable shares with a par value of $1 each and with the right to 1 vote per share, with an issue premium of $13.18306021 per share.
In accordance with the resolutions of the Board of Directors dated February 25, 2022, Grupo Supervielle S.A. and Banco Supervielle S.A, made irrevocable capital contributions to IUDÚ Compañía Financiera S.A. for $12,500,000 and $237,500,000, respectively, increasing the capital stock by $19,312,748, through the issuance of 19,312,748 new shares (with an issue premium of $11.94481738 per share).
In accordance with the resolutions of the Board of Directors dated March 30, 2022, Grupo Supervielle S.A. and Banco Supervielle S.A. made irrevocable capital contributions on account of future increases to IUDU Compañía Financiera S.A of $62,500,000 and $1,187,500.00 respectively, increasing the capital stock in the amount of $113,825,361 through the issuance of 113,825,361 common, registered shares , non-endorsable with par value of $1 each and with the right to 1 vote per share, with an issue premium of $9.98173543 per share. Said contributions were capitalized in the Assembly held on September 16, 2022.
In accordance with the resolution of the Board of Directors dated February 25, 2022 and March 30, 2022, IUDÚ Compañía Financiera S.A. has made irrevocable capital contributions to Tarjeta Automática S.A. for $150,000,000 each, increasing the capital stock in the amount of $67,776,590 through the issuance of 67,776,590 common, nominative, non-endorsable
69
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
shares with a par value of $1 each and with the right to 1 vote per share, with an issuance premium of $3,42630703 per share. Based on these contributions, the direct ownership of Grupo Supervielle in Tarjeta Automática S.A. it went from 87.5% to 13.40%. As a consequence of this transaction, Grupo Supervielle S.A. recorded a profit of 236,118 thousand pesos in its separate financial statements.
In accordance with the resolutions of the Board of Directors dated June 27, 2022, Grupo Supervielle S.A. and Banco Supervielle S.A. made irrevocable capital contributions on account of future increases to IUDU Compañía Financiera S.A of $50,000,000 and $950,000.00 respectively, increasing the capital stock in the amount of $103,701,474 through the issuance of 103,701,474 common, registered shares , non-endorsable with par value of $1 each and with the right to 1 vote per share, with an issue premium of $8.64306455 per share. Said contributions were capitalized in the Assembly held on September 16, 2022.
As resolved by the Board of Directors on June 27, 2022, IUDÚ Compañía Financiera S.A. has made an irrevocable capital contribution to Tarjeta Automática S.A. for $250,000,000 increasing the capital stock in the amount of $56,480,492 through the issuance of 56,480,492 common, registered, non-endorsable shares with a par value of $1 each and with the right to 1 vote per share, with a premium issue of $3,426307 per share. From said contribution, the direct ownership of Grupo Supervielle in Tarjeta Automática S.A. it went from 13.40% to 7.85%.
In accordance with the resolutions of the Board of Directors dated July 8, 2022, Grupo Supervielle S.A. made a capital contribution to IOL Holding S.A. for the sum of US$ 200,000 to be applied to working capital and investments. Said contributions will be capitalized in the next Assembly to be held.
In accordance with the resolutions of the Board of Directors dated August 16, 2022, Grupo Supervielle S.A. made an irrevocable capital contribution to InvertirOnline S.A.U of $70,165,000 through the issuance of 38 common, registered, non-endorsable shares with a nominal value of $100 each and with the right to 5 votes per share, with an issue premium of $1,846 .347.37 per share.
In accordance with the resolutions of the Board of Directors dated August 30, 2022, Grupo Supervielle S.A. and Banco Supervielle S.A. made irrevocable capital contributions on account of future increases to IUDU Compañía Financiera S.A of $37,500,000 and $712,500.00 respectively, increasing the capital stock in the amount of $82,428,856 through the issuance of 82,428,856 common, registered shares , non-endorsable with par value of $1 each and with the right to 1 vote per share, with an issue premium of $8.09875547 per share. Said contributions were capitalized in the Assembly held on September 16, 2022.
In accordance with the resolutions of the Board of Directors dated September 28, 2022, Grupo Supervielle S.A. and Banco Supervielle S.A. made irrevocable capital contributions on account of future increases to IUDU Compañía Financiera S.A of $12,500,000 and $237,500.00 respectively, increasing the capital stock in the amount of $27,476,285 through the issuance of 27,476,285 common, registered shares , non-endorsable with par value of $1 each and with the right to 1 vote per share, with an issue premium of $8.09875547 per share. Said contributions will be capitalized in the next Assembly to be held.
In accordance with the resolutions of the Board of Directors dated September 28, 2022, Grupo Supervielle S.A. and Banco Supervielle S.A. made irrevocable capital contributions on account of future increases to IUDÚ Compañía Financiera S.A of $12,500,000 and $237,500.00 respectively, increasing the capital stock in the amount of $27,476,285 through the issuance of 27,476,285 common, registered shares , non-endorsable with par value of $1 each and with the right to 1 vote per share, with an issue premium of $8.09875547 per share. These contributions were capitalized at the meeting held on March 27, 2023.
As resolved by the Board of Directors on February 23, 2023, Banco Supervielle S.A. made an irrevocable capital contribution to Bolsillo Digital S.A.U. for the sum of $100,000,000, through the issuance of 100,000,000 non-endorsable registered common shares of $1 par value each and with the right to 1 vote per share. These contributions were capitalized at the meeting held on March 27, 2023.
In accordance with what is mentioned in note 15 to the condensed interim consolidated financial statements, once said merger is completed, the participation of Grupo Supervielle S.A. at Banco Supervielle S.A. will be 97.1198%.
The following describes Controlled Companies’ shareholders’ equity and results:
As of March 31, 2023 – In thousands of pesos | ||||
Company | Assets | Liabilities | Shareholders’ equity | Net income |
Banco Supervielle S.A. (1) | 732,820,289 | 644,863,529 | 87,446,426 | 38,452 |
70
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
IUDÚ compañía Financiera S.A(1) | 16,465,000 | 6,708,759 | 9,712,259 | (46,826) |
Tarjeta Automática S.A. | 947,100 | 444,496 | 502,604 | 7,857 |
Supervielle Asset Management S.A. | 2,490,783 | 602,043 | 1,888,740 | 331,839 |
Sofital S.A. F. e I.I. | 4,276,914 | 10,323 | 4,266,591 | 29,863 |
Espacio Cordial de Servicios S.A. | 916,521 | 622,922 | 293,599 | (30,795) |
Micro Lending S.A.U. | 1,040,334 | 206,631 | 833,703 | 103,338 |
Portal Integral de Inversiones S.A.U. | 30,003 | 18,721 | 11,282 | (46,739) |
InvertirOnline S.A.U. | 18,865,834 | 18,418,624 | 447,210 | 148,387 |
IOL Holding S.A. | 124,318 | 840 | 123,478 | (28,673) |
Supervielle Seguros S.A. (2) | 6,622,114 | 2,918,084 | 3,704,030 | 925,507 |
Supervielle Productores Asesores de Seguros S.A. (3) | 350,446 | 209,911 | 140,535 | 49,972 |
Bolsillo Digital S.A.U. | 145,739 | 71,873 | 73,866 | (62,013) |
Supervielle Agente de Negociación S.A.U. | 786,304 | 371,048 | 415,256 | (12,765) |
Dólar IOL S.A.U. | 6,610 | 897 | 5,713 | (592) |
As of December 31, 2022 – In thousands of pesos | ||||
---|---|---|---|---|
Company | Assets | Liabilities | Shareholders’ equity | Net income |
Banco Supervielle S.A. (1) | 821,034,135 | 732,963,582 | 87,565,579 | (5,770,345) |
IUDÚ Compañia Financiera S.A | 16,696,804 | 6,894,425 | 9,759,085 | (3,968,872) |
Tarjeta Automática S.A. | 969,076 | 474,329 | 494,747 | (599,201) |
Supervielle Asset Management S.A. | 2,066,629 | 509,728 | 1,556,901 | 1,219,943 |
Sofital S.A. F. e I.I. | 4,245,406 | 10,186 | 4,235,220 | (83,829) |
Espacio Cordial de Servicios S.A. | 1,079,116 | 754,722 | 324,394 | (665,198) |
Micro Lending S.A.U. | 1,108,015 | 377,651 | 730,364 | 110,613 |
Portal Integral de Inversiones S.A.U. | 30,003 | 18,721 | 11,282 | (46,739) |
InvertirOnline S.A.U. | 16,693,829 | 16,395,006 | 298,823 | (212,993) |
IOL Holding S.A. | 124,318 | 840 | 123,478 | (28,673) |
Supervielle Seguros S.A. (2) | 6,412,051 | 2,921,715 | 3,490,336 | 711,812 |
Supervielle Productores Asesores de Seguros S.A. | 245,177 | 154,614 | 90,563 | 323 |
Bolsillo Digital S.A.U. | 274,754 | 246,550 | 28,204 | (249,946) |
Supervielle Agente de Negociación S.A.U. | 527,028 | 102,333 | 424,695 | 32,148 |
Dólar IOL S.A.U. | 7,106 | 801 | 6,305 | (11,925) |
As of March 31, 2023 and December 31,2022, balances with Grupo Supervielle S.A‘s controlled are as follows:
Assets | 03/31/2023 | 12/31/2022 |
| ||
Cash and due from banks | | |
Banco Supervielle S.A. | 623 | 1,234 |
InvertirOnline S.A.U. Cta. Cte. | 43 | 47 |
666 | 1,281 | |
| | |
Other financial assets | | |
Espacio Cordial Servicios S.A. | 306 | 191 |
IUDÚ Compañía Financiera S.A. | - | 3,165 |
71
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
| 306 | 3,356 |
Liabilities | | |
| | |
Other non-financial liabilities | | |
Debt with subsidiaries - IOL Holding | 138 | 142 |
138 | 142 |
As of March 31, 2023 and December 31,2022, results with Grupo Supervielle S.A‘s controlled are as follows:
03/31/2023 | 03/31/2022 | ||
Results | | | |
Interest income | | | |
Interests from current accounts – Banco Supervielle S.A. | 1 | 2 | |
Interests from current accounts – IUDÚ | - | 124 | |
Interest on paid account– IOL | 5 | 56 | |
| 6 | 182 | |
| | | |
Other operating income | | | |
Banco Supervielle S.A. | 168,622 | 174,769 | |
Sofital S.A.F. e I.I. | 139 | 143 | |
Supervielle Asset Management S.A. | 1,364 | 1,413 | |
Tarjeta Automática S.A. | - | 417 | |
IUDÚ Compañía Financiera S.A. | - | 13,979 | |
Espacio Cordial de Servicios S.A. | 816 | 846 | |
| 170,941 | 191,567 | |
Administrative expenses | | | |
Bank expenses – Banco Supervielle S.A. | 28 | 36 | |
Rent – Banco Supervielle S.A. | 1,345 | 1,551 | |
Legal and accounting consultancy services | 193 | 390 | |
Fees for market operations - InvertirOnline S.A.U. | - | 943 | |
Fees for market operations - SAN | 467 | - | |
2,033 | 2,920 | ||
| | | |
Net income from financial instruments at fair value through profit or loss | | | |
Interest from time deposits– IUDÚ Compañía Financiera | - | 84,850 | |
| - | 84,850 |
8. | LOAN AND DEBT ESTIMATED TERMS |
The composition of loans and debts in accordance with collection or payment estimated terms and interest rate accrued as of March 31, 2022 is as follows:
| Other financial assets | Current income tax assets | Other non-financial assets | Deferred income tax liabilities | Other non- financial liabilities |
---|---|---|---|---|---|
To mature: | | | | | |
1st. Quarter | 377,934 | 41,599 | - | 291,447 | 83,690 |
2nd. Quarter | - | 28,923 | - | - | - |
3rd. Quarter | - | 28,923 | - | - | - |
4th. Quarter | - | 28,923 | - | - | - |
Over a year | - | | 81,062 | - | - |
Subtotal to mature: | 377,934 | 128,368 | 81,062 | 291,447 | 83,690 |
Matured term | | | |
| �� |
Total | 377,934 | 128,368 | 81,062 | 291,447 | 83,690 |
At fixed rate | | | - | - | - |
At floating rate | 363,876 | - | - | - | - |
Not accrue interest | 14,058 | 128,368 | 81,062 | 291,447 | 83,690 |
Total | 377,934 | 128,368 | 81,062 | 291,447 | 83,690 |
72
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
9. | CAPITAL STOCK |
As of March 31, 2023 and December 31, 2022, the corporate capital stock is the following:
Capital Stock | Nominal Value |
Capital stock as of 03/31/2023 | 442,671 |
Capital stock as of 12/31/2022 | 456,722 |
Pursuant to the Corporate By-law, any share transfer or event enabling any changes in its condition or alterations in its stock holding structure shall be informed to the Argentine Central Bank.
On July 20, 2022, the Company's Board of Directors resolved to approve a Program for the Acquisition of Own Shares with a maximum amount to invest of 2,000,000 or the lower amount resulting from the acquisition until reaching 10% of the share capital. The price to be paid for the shares will be up to a maximum of US$2.20 per ADR on the New York Stock Exchange and up to a maximum of $138 per Class B share on Bolsas y Mercados Argentinos S.A. The Company will acquire shares for a term of 250 calendar days counted from the entry into force of the program, subject to any renewal or extension of the term that is approved by the Board of Directors.
Subsequently, on September 13, the Board of Directors of Grupo Supervielle S.A. approved to modify point 5 of the terms and conditions of the treasury stock acquisition plan approved on July 20, 2022 as follows: “5. The price to be paid for the shares will be up to a maximum of US$2.70 per ADR on the New York Stock Exchange and up to a maximum of $155 per Class B share on Bolsas y Mercados Argentinos S.A.” The remaining terms and conditions will remain in force as approved from time to time.
In the statement of changes in equity, the nominal value of the repurchased shares is shown as “treasury shares” and its restatement as “comprehensive adjustment of treasury shares”. The consideration paid, including directly attributable incremental expenses, is deducted from equity until the shares are canceled or reissued, and is disclosed as “cost of treasury shares”.
As of March 31, 2023, the Grupo Supervielle share repurchase program has expired. Grupo Supervielle has acquired a total of 11,093,572 Class B Shares in ByMA and 591,384 ADRs in NYSE, reaching an execution of 86.3% of the program and 3.076% of the share capital.
10. | FINANCIAL RISK FACTORS |
There have been no significant changes in the risk management policies to which the Group is exposed, with respect to what was reported in the financial statements as of December 31, 2022.
11. | SUBSEQUENT EVENTS |
The Annual Ordinary Shareholders' Meeting held on April 27, 2023 approved the financial statements as of December 31, 2022 and the treatment of the results corresponding to the year ended on that date. (See note 8 to the condensed interim consolidated financial statements)
73
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE A – OTHER DEBT SECURITIES
Item | HOLDING | |
---|---|---|
Balance at 03/31/2023 | Balance at 12/31/2022 | |
Argentine | | |
Measured at fair value with changes in ORI | | |
National Treasury bill in pesos adj,CER X19Y3 | 2,182,881 | 2,671,769 |
Total other debt securities | 2,182,881 | 2,671,769 |
Total | 2,182,881 | 2,671,769 |
74
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE G - INTANGIBLE ASSETS
Item | Gross carrying amount | Depreciation | Net carrying amount | ||||||||
At the beginning of the period | Increases | Disposals | At the end of the period | At the beginning of the period | Useful life | Disposals | Of the period | At the end of the period | 03/31/2023 | 12/31/2022 | |
Goodwill | 11,929,284 | - | - | 11,929,284 | - | | - | - | - | 11,929,284 | 11,929,284 |
Relations with clients | 2,517,787 | - | - | 2,517,787 | (734,355) | 16 | - | (39,340) | (773,695) | 1,744,092 | 1,783,432 |
Brand | 715,842 | - | - | 715,842 | - | | - | - | - | 715,842 | 715,842 |
Proprietary Software & Technology | 246,842 | - | - | 246,842 | (246,842) | 4 | - | - | (246,842) | - | - |
Total | 15,409,755 | - | - | 15,409,755 | (981,197) | | - | (39,340) | (1,020,537) | 14,389,218 | 14,428,558 |
75
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE L – ASSETS AND LIABILITIES IN FOREIGN CURRENCY
Items | Headquarters and branches in the country | As of 03/31/2023 | As of 03/31/2023 (per currency) | As of 12/31/2022 |
Dollar | ||||
ASSETS |
|
|
|
|
Cash and Due from Banks | 475,319 | 475,319 | 475,319 | 439,016 |
Other financial assets | 248,282 | 248,282 | 248,282 | 247,736 |
Other non-financial assets | 115,693 | 115,693 | 115,693 | 119,073 |
TOTAL ASSETS | 839,294 | 839,294 | 839,294 | 805,825 |
| | | | |
LIABILITIES | | | | |
Other non-financial liabilities | 263,045 | 263,045 | 263,045 | 247,736 |
TOTAL LIABILITIES | 263,045 | 263,045 | 263,045 | 247,736 |
| | | | |
NET POSITION | 576,249 | 576,249 | 576,249 | 558,089 |
76
Grupo Supervielle S.A.
INFORMATIVE REVIEW AS OF March 31, 2023
(in thousands of pesos)
Brief description of the business and evolution of operations
The Company's objective is to position itself as a leader in the local financial business through an offer of innovative, inclusive and accessible financial services. Its strategy, carried out through its different companies (banking and non-banking), allows access to each segment of the population with the product offer, the service model and the price/risk ratio required.
The result for the period ended March 31, 2023, shows a gain of 557,461, which represents a positive average return on equity of 2.0%. Said result originated mainly from the results of our investments in companies.
The Annual Ordinary Shareholders' Meeting held on April 27, 2023 approved the financial statements as of December 31, 2022 and the treatment of the results corresponding to the year ended on that date. Since the unallocated results were negative, it was approved to absorb them with an optional reserve, legal reserve and share premium.
Grupo Supervielle S.A. is the controlling company of the economic group as of March 31, 2023 and December 31, 2022, it had the following direct and indirect shareholdings in its controlled companies:
Company | Main Activity | Interest in capital stock | |
03/31/2023 | 12/31/2022 | ||
Banco Supervielle S.A. | Commercial Bank | 99.90% | 99.90% |
IUDÚ Compañia Financiera S.A | Financial Company | 99.90% | 99.90% |
Tarjeta Automática S.A. | Credit Card and Consumer Loans | 99.91% | 99.99% |
Supervielle Asset Management S.A. | Asset Management Company | 100.00% | 100.00% |
Sofital S.A.F. e I.I. | Financial operations and administration of marketable securities | 100.00% | 100.00% |
Espacio Cordial de Servicios S.A. | Trading of products and services | 100.00% | 100.00% |
Supervielle Seguros S.A. | Insurance company | 100.00% | 100.00% |
Micro Lending S.A.U. | Financing investments | 100.00% | 100.00% |
Invertir Online S.A.U. | Settlement and Clearing Agent | 100.00% | 100.00% |
Portal Integral de Inversiones S.A.U. | Representations | 100.00% | 100.00% |
IOL Holding S.A. | Financial Company | 100.00% | 100.00% |
Supervielle Productores Asesores de Seguros S.A. | Insurance Broker | 100.00% | 100.00% |
Bolsillo Digital S.A.U | Computer Services | 100.00% | 100.00% |
Supervielle Agente de Negociación S.A.U. | Settlement and Clearing Agent | 100.00% | 100.00% |
Dólar IOL S.A.U. | Services and exchange agency | 100.00% | 100.00% |
77
Grupo Supervielle S.A.
Informative Review as of March 31, 2023
(in thousands of pesos)
Brief description of Related Companies
Grupo Supervielle provides a wide range of financial and non-financial services to its clients and has more than 130 years of experience operating in Argentina. Supervielle focuses on offering quick solutions to its clients and effectively adapting to evolving changes within the industries in which the company operates. Grupo Supervielle operates multiple platforms and brands and has developed a diverse ecosystem to respond to the needs and digital transformation of its clients. Since May 2016, the shares of Grupo Supervielle have been listed on ByMA and NYSE. The subsidiaries of Grupo Supervielle are: (i) Banco Supervielle, which is the eighth largest private bank in Argentina in terms of loans; (ii) Supervielle Seguros, an insurance company; (iii) Supervielle Productores Asesores de Seguros, an insurance broker; (iv) Supervielle Asset Management, a mutual fund management company; (v) Supervielle Agente de Negociación, a broker that offers services to institutional and corporate clients, (vi) Invertir Online, a broker specializing in online trading; Portal Integral de Inversiones S.A.U, a platform that offers online content related to financial investments, (vii) Espacio Cordial, a company that offers non-financial retail products, assistance, services and tourism, and (viii) MILA, a company specialized in the auto loan financing. IUDÚ Financial Company S.A. and Tarjeta Automática S.A., two companies that operated in the consumer financing segment until September 2022, entered into a merger agreement with Banco Supervielle S.A. which is expected to be effective in the second half of 2023. Finally, the company's portfolio is made up of Bolsillo Digital S.A.U. a company that until recently provided payment facilitation services through its Boldi brand. Sofital, a holding company that owns shares of the same companies owned by Grupo Supervielle, is part of our Group. To date, Supervielle has 154 bank branches, virtual branches, its digital channels and a network of alliances, serving 1.7 million active customers.
As of March 31, 2023, Banco Supervielle S.A. It has assets of 732,820,289 and net worth attributable to the owners of the parent company of 87,446,426. The net result attributable to the owners of the parent company as of March 31, 2023 was positive of 38,452, which originated mainly from the financial margin and the service margin.
IUDÚ Compañia financier S.A. is a company that operated in the consumer financing segment until September 2022. The net result attributable to the owners of the parent as of March 31, 2023 showed a loss attributable to the owners of the parent of 46,826.
Tarjeta Automatica S.A. is a company that operated in the consumer financing segment until September 2022. The net result as of March 31, 2023 showed a profit of 7,857.
Supervielle Asset Management S.A. is a Mutual Investment Fund Management Company whose purpose is the promotion, direction and administration of mutual funds in accordance with the provisions of Law 24,083, its Regulatory Decree and any other legal or regulatory standard that contemplates said activity. The net result as of March 31, 2023 showed a profit of 331,839.
Sofital S.A.F. and I.I. is a company whose main activity is to carry out financial operations and administration of securities. The net result as of March 31, 2023 showed a profit of 29,863.
Espacio Cordial de Servicios S.A., is a company whose purpose is the commercialization of all kinds of goods and services related to insurance activities, tourism, health plans and/or services, and other goods and services. The net result as of March 31, 2023 showed a loss of 30,795.
Supervielle Seguros S.A., the insurance company of Grupo Supervielle S.A., has a net worth of 3,704,030 and assets of 6,622,114. As of March 31, 2023, it obtained a positive result of 925,507.
Micro Lending S.A.U., specializes in the financing of pledge loans, particularly used cars. As of March 31, 2023, it presented a profit of 103,338.
InvertirOnline S.A.U., is a specialized online trading platform, which occupies a leadership position among the top five in the online Broker segment in Argentina, and a benchmark within the Fintech sector in the country. InvertirOnline S.A.U obtained a profit of 213,178 as of March 31, 2023, and Portal Integral de Inversiones S.A.U. obtained negative results of 46,739 as of December 31, 2022. On the other hand, Dólar IOL S.A.U. earned a loss of 592 as of March 31, 2023.
IOL Holding S.A. is a company that brings together shareholdings in other companies dedicated to providing stock market services at a regional level. As of March 31, 2023, it obtained a negative result of 1,526.
Bolsillo Digital S.A.U. is a company that was dedicated to the commercialization of products and services related to the management and processing of payments. As of March 31, 2023, it presented a negative result of 62,003.
Supervielle Agente de Negociacion S.A.U. is a company whose main activity is to engage on its own account or that of third parties or associated with third parties, in the country or abroad, to act as agent in the categories in which it is duly registered by the National Securities Commission. As of March 31, 2023, it presented a negative result of 12,765.
78
Supervielle Productores Asesores de Seguros S.A. is a company whose purpose is to carry out the activity of intermediation, promoting the conclusion of life, patrimonial and pension insurance contracts, advising insured and insurable. As of March 31, 2023, it presented a profit of 49,972.
79
Grupo Supervielle S.A.
Informative Review as of MARCH 31, 2023
(in thousands of pesos)
SHAREHOLDERS´ EQUITY STRUCTURE, RESULTS, FUND GENERATION OR UTILIZATION STRUCTURE, MAIN RATIOS,
The following offers information related to Consolidated Financial Statements, on a comparative basis:
Statement of Financial Position | 03/31/2023 | 12/31/2022 | 12/31/2021 | 12/31/2020 | 12/31/2019 |
Total Assets | 761,084,976 | 849,005,420 | 925,794,471 | 894,515,749 | 728,114,410 |
Total Liabilities | 647,840,815 | 735,898,582 | 803,437,546 | 764,348,077 | 610,152,466 |
Changes in Shareholders’ Equity | 113,244,161 | 113,106,838 | 122,356,925 | 130,167,672 | 117,961,944 |
Total Liabilities plus Changes in Shareholders’ Equity | 761,084,976 | 849,005,420 | 925,794,471 | 894,515,749 | 728,114,410 |
Income Statement | 03/31/2023 | 12/31/2022 | 12/31/2021 | 12/31/2020 | 12/31/2019 |
Net income from interest | 24,459,093 | 24,943,465 | 25,699,711 | 31,777,506 | 8,561,793 |
Net income from commissions | 7,844,134 | 7,760,795 | 8,087,691 | 9,315,768 | 10,038,561 |
Net income before income tax | 1,689,793 | (408,761) | 504,853 | 3,602,593 | (2,855,659) |
Total comprehensive income attributable to owners of the parent company - Earnings | 473,152 | (811,761) | (994,750) | 1,831,531 | (6,125,077) |
Consolidated Cash Flow Statement | 03/31/2023 | 12/31/2022 | 12/31/2021 | 12/31/2020 | 12/31/2019 |
Total operating activities | 8,162,629 | (16,376,685) | 5,727,339 | 45,419,151 | 91,910,215 |
Total investment activities | (1,121,248) | (1,144,314) | (959,219) | (320,443) | (1,514,838) |
Total financing activities | (3,116,678) | (8,194,225) | (9,229,626) | (20,295,501) | (2,388,958) |
Effect of changes in exchange rate | 7,746,563 | 41,127,642 | 11,062,506 | 16,488,450 | 60,716,019 |
Net increase in cash and cash equivalents | 11,671,266 | 15,412,418 | 6,601,000 | 41,291,657 | 148,722,438 |
80
Grupo Supervielle S.A.
Informative Review as of march 31, 2023
(in thousands of pesos)
SHAREHOLDERS´ EQUITY STRUCTURE, RESULTS, FUND GENERATION OR UTILIZATION STRUCTURE, MAIN RATIOS,
The following offers information related to Consolidated Financial Statements, on a comparative basis:
Indicators (figures in thousands of pesos) | 03/31/2023 | 12/31/2022 | 12/31/2021 | 12/31/2020 | 12/31/2019 |
| | | | | |
Liquidity | 11.43% | 8.13% | 9.64% | 22.09% | 31.45% |
- Cash and cash equivalents (1) | 65,911,273 | 54,194,651 | 65,972,426 | 141,259,521 | 136,402,303 |
- Deposits | 576,599,237 | 666,505,265 | 684,010,102 | 639,398,205 | 433,716,909 |
| | | | | |
Solvency | 17.48% | 15.37% | 15.23% | 17.03% | 19.33% |
- Shareholders Equity | 113,244,161 | 113,106,838 | 122,356,925 | 130,167,672 | 117,961,944 |
- Total Liabilities | 647,840,815 | 735,898,582 | 803,437,546 | 764,348,077 | 610,152,466 |
| | | | | |
Immobilization of Capital | 11.70% | 10.76% | 9.47% | 9.78% | 10.08% |
-Immobilized Assets (2) | 89,030,034 | 91,326,690 | 87,644,839 | 87,494,393 | 73,390,348 |
-Total Assets | 761,084,976 | 849,005,420 | 925,794,471 | 894,515,749 | 728,114,410 |
| | | | | |
(1) Including cash, listed corporate and government securities and mutual funds shares
(2) Including the following items: Equity Investments, Miscellaneous Receivables, Premises and Equipment, Miscellaneous Assets, Intangible Assets and unallocated items
For Statement of Financial Position and Income Statement structure, the Group utilized the consolidated accounts, which follow the presentation of Financial Statement provisions set by Communication “A” 3147 and complementary provisions issued by the Argentine Central Bank related to the Accounting Informative Regime for the annual disclosure and guidelines set by Technical Pronouncement N°8 issued by the Argentine Federation of Economy Sciences Professional Councils and the General Ruling 622/13 issued by the National Securities Commission.
81
Grupo Supervielle S.A.
informative review as of March 31, 2023
(in thousands of pesos)
Adoption of International Financial Reporting Standards (IFRS)
The Argentine Central Bank, through Communication “A” 5541 and its amendments set the Implementation Plan for Convergence towards International Financial Report Standards (IFRS) issued by International Accounting Standards Board (IASB) and interpretations issued by the International Financial Reporting Standards Committee (IFRSC), for entities under its supervision, except for the application of section 5,5, (detriment of value) of IFRS 9 “Financial Instruments” and IAS 29 (which determines the obligatory restatement of financial statements in accordance with the detailed in note 1,2,b), for financial years started on January 1, 2018, Likewise, entities shall prepare their opening Financial Statements as from January 1, 2017 to be used as comparative base of the financial year to start on January 1, 2018, which will be the first Financial Statements submitted under these standards as of March 31, 2018.
On February 22, 2019 the Argentine Central Bank issued Communication "A" 6651, through which it established that as of January 1, 2020, the financial statements are prepared in constant currency, In this sense, Communication “A” 6849 issued by the Argentine Central Bank sets the re-expression frequency of the accounting information in a homogeneous currency on a monthly basis, and the index utilized to such ends accounts for the National Consumer Index drawn up by INDEC (basis month: December 2016) and for such items with previous initial date, IPIM issued by FACPCE is utilized, pursuant to Ruling JG 517/16, Likewise, transition date, in virtue of the retroactive application has been set on January 1, 2019.
Pursuant to Communication “A” 6430 and 6847 Financial Entities shall start to apply provisions on Financial Assets Impairment included in paragraph 5,5 of IFRS 9 as from fiscal years starting on 1 January, 2020, except for Non-financial Public Sector´s debt securities, which shall be temporarily excluded from the scope of said provisions, Likewise, Communication “A” 6938 issued by the Argentine Central Bank set the postponement of the application of the section targeted to “B” group Companies until January 1, 2021,a category that includes IUDÚ Compañia Financiera S.A., therefore, provisions of said Entity are held under the minimum provisions regulations set by the Argentine Central Bank, It is worth mentioning that through communications "A" 7108 and 7134, the Argentine Central Bank ordered the classification of financial entities into groups "A", "B" and "C", leaving IUDÚ Compañía Financiera classified as Group "C" as of October 1, 2020. However, IUDU Compañia Financiera S.A. has requested authorization from the BCRA to advance the application of point 5.5 of IFRS 9 to the current period, in accordance with what is mentioned in note 1.1.4 of these financial statements.
In turn, pursuant to Article 2, Chapter I, Section I, of Title IV of the modified text issued by the National Securities Commission, issuing entities, whose main assets are made up by investments in financial entities or insurance companies, are exempted from submitting their Financial Statements under IFRS and may choose their submission in accordance with the provisions issued by the Argentine Central Bank and the National Insurance Superintendence, respectively.
As for the aforementioned requirements, the following is set out:
• | Grupo Supervielle S.A.’s corporate purpose is, exclusively, the realization of financial and investment activities; |
• | The investment in financial entities and in the insurance company accounts for 80,6% of Grupo Supervielle S.A.’s assets, being the main assets of the Group, |
• | 96,07% of Grupo Supervielle S.A.’s incomes come from its equity investments in financial entities’ and insurance company results, |
• | Grupo Supervielle S.A. holds 99,90% direct and indirect stock investments in Banco Supervielle S.A. a 99,90% of IUDÚ Compañia Financiera S.A. and a 100% of Supervielle Seguros S.A., resulting in the Group’s control in those entities, |
Perspectives
For the year 2024, Grupo Supervielle plans to continue contributing with its credit generation to the growth and evolution of the Argentine economy.
82
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized,
| Grupo Supervielle S.A. | |||
Date: June 13, 2023 | By: | /s/ Mariano Biglia
| ||
|
|
| Name: | Mariano Biglia |
|
|
| Title: | Chief Financial Officer |