Grupo Supervielle Sa Class B · BCBA:SUPV
Grupo Supervielle Sa Class B — Santander's 23rd Annual Latin America Conference 2019
41 slides from Grupo Supervielle Sa Class B's conference presentation, Jan 16, 2019
Slide 1: Grupo Supervielle
GRUPO a SUPERVIELLE > SUPERVIELLE Tarjeta Automatica s.a. > SUPERVIELLE SeGUROS NAGEMENT "fn : . . Q invertirOnline.com
Slide 2: Disclaimer
COMPANY PRESENTATION j Disclaimer This presentation contains certain forward-looking statements that reflect the current views and/or expectations of Grupo Supervielle and its management with respect to its performance, business and future events. We use words such as “believe,” “anticipate,” “plan,
Slide 3: Supervielle
i“ SUPERVIELLE
Slide 4: Third quarter 2018 highlights
COMPANY PRESENTATION QV QQRe GRUPO a Third quarter 2018 highlights SUPERVIELLE Solid results despite challenging macro environment Attributable Comprehensive Income up 55.9% YoY and 84% QoQ to AR$874.5 million, taking into account increasing NPL coverage to 94%. ROAE of 22.4% in 3Q18, up from 20.7%
Slide 5: Macro dynamics in recent months: FX stabilizing
COMPANY PRESENTATION GRUPO - . . SUPERVIELLE j Macro dynamics in recent months.... ...fx stabilizing following implementation of new Monetary Policy framework my (AR$/US$) i +33% 1 {a2%) ee’ New Monetary Policy framework I 1 eeouss es PEPE Jun29 julé—jullé.—jul24—jul31. = Aug? = Aug13.— Aug23.- Aug2
Slide 6: Macro dynamics: inflation and interest rates
COMPANY PRESENTATION . oo. cruro > Macro dynamics in recent months..... SUPERVIELLE .closely monitoring inflation following sharp currency depreciation in previous months: Interest rates remains high but slightly decreased | INFLATION [%] | Next 12M avg. inflation expectation [% ] Mar Avr May Jun. J
Slide 7: 14.1% 10.0% 9.5% 14.2% 28.4% 36.2% 19.6% (1.5)%
14.1% 10.0% 9.5% 14.2% 28.4% 36.2% 19.6% (1.5)% 7
Slide 8: 146,123 146,123 120,789 120,789 92,202 96,570 81,558 96,570 92,202 81,558 8
146,123 146,123 120,789 120,789 92,202 96,570 81,558 96,570 92,202 81,558 8
Slide 9: 83,378 75,830 66,480 60,693 53,154 ´
83,378 75,830 66,480 60,693 53,154 ´ 9
Slide 10: Supervielle loan performance
COMPANY PRESENTATION . GRUPO - Supervielle loan performance SUPERVIELLE | Higher share of corporate segment loans mainly reflect the FX hike at quarter end; sequential decrease in consumer finance loans following risk management initiatives | | TOTAL LOAN PORTFOLIO BREAKDOWN BY SEGMENT Loans & Leasi
Slide 11: 97,185 75,673 56,409 55,540 47,171
97,185 75,673 56,409 55,540 47,171 11
Slide 12: Funding & deposit base
GRUPO a j Funding & deposit base SUPERVIELLE Expanded sight wholesale deposits to fund investment in high-margin 7-days Central Bank securities BBP enone cars mii Bp ePosits BREAKDOWN SEPTEMBER 2018 81.4% ; O5% Special 2 Checking Other Time 24.0% | 140, 307 | Accounts Deposits 6.5% a, Non interest B
Slide 13: Net Financial Income, NIM & NFM
COMPANY PRESENTATION Net Financial Income, NIM & NFM Net Financial Income (NII, NIFFI & Exchange rate differences) up 21% sequentially with NIM improving by 170 bps and NFM by 80 bps | AS Financial Income [AR$ Mill. ] | NIM 3,623.6 3,615.0 55 2.898,2 3Q17 4Q17 1Q18 2Q18 3Q18 NII mNIFFI & Exchange ra
Slide 14: Service fee income & income from insurance activities
Service fee income & income from insurance activities GRUPO a SUPERVIELLE Net service fee income up 2.2% QoQ; pick-up in income from insurance activity BBP \c7 SERVICE FEE INCOME? CARS Mill. 3Q17 4Q17 1Q18 2Q18 3Q18 9M17_— 9M18 BBP \e7 SERVICE FEE INCOME RATIO[%1" 252 228 293 243 a4 | 267 226 > . .
Slide 15: Credit card and personal loans NPL and delinquency
Credit Card Loans NPL Credit Card Loans Delinquency +90 Personal Loans NPL Personal Loans Delinquency +90 Retail Segment NPL Retail Segment Delinquency 15
Slide 16: Asset quality consumer finance
GRUPO a SUPERVIELLE ] Asset quality consumer finance NPL creation decreased sharply in 3Q18 and 3 month vintage data improved, reflecting that tighter credit scorings are turning in good results BBP «30 DAYS DELINQUENCY, 3 MONTH VINTAGE BBB CONSUMER FINANCE - NPL Creation [AR$ MIM.1 Jan? «3% 4,0% 4.
Slide 17: Efficiency
*Efficiency: Personnel, Administrative expenses and Depreciation & Amortization divided by the sum of Net interest income + Net income from financial instruments at fair value through profit or loss + Exchange rate differences on gold and foreign currency, net services fee income, income from insura
Slide 18: Profitability
GRUPO a Profitability SUPERVIELLE Net income up 56% YoY and 220% QoQ. Attributable comprehensive income up 56% YoY and 84% QoQ. ATTRIBUTABLE COMPREHENSIVE INCOME nexeeeed) soit etalhaye wey CAR$ Mill.] * Higher net financial income driven by investments in high margin Central Bank securities and loa
Slide 19: Capitalization
GRUPO a SUPERVIELLE Capitalization 2018 capital ratios impacted by high increase in RWA following FX hike BBD PITAL DEPLOYMENT [Tier | ratio %1 04 -0,3 -0,7 17,2 =s 58 13,1 Consolidated — Consolidated Consolidated pro Capital LoanGrowth Fx Impact on Consolidated pro proforma as proformaas formaasof
Slide 20: Supervielle 2018 guidance
COMPANY PRESENTATION Supervielle 2018 guidance rent | Maintain 2018 guidance in challenging economic backdrop FY 8 EXPE TIO Guidance (1) 40 -50 % _—=) 18 - 20% | GDP -0.3% -24% | | Continuous Change in Macro Assumptions? Guidance Assumptions Metric Inflation 31.8% 475% Badlar Rate (eop) 29%3 46% AR$
Slide 21: Supervielle
i“ SUPERVIELLE
Slide 22: Why Supervielle
GRUPO a SUPERVIELLE Js WHY SUPERVIELLE > Argentina: towards Fiscal Sustainability Great > Financial Sector: POTENTIAL Growth Potential Intact going into the | J oupy FUTURE Operating Leverage Differentiated Strategy to Capture Growth Leadership in Relevant Products and Markets 22
Slide 23: The Argentine banking business has potential for a growth cycle
COMPANY PRESENTATION The Argentine banking business has the potential for a growth cycle when the economy rebounds | Under-developed Banking & Insurance System Grhile Serazil @ Colombia (e)Peru (Dmexico S Argentina 15 Loans to the Private Sector as a % of GDP (%) as of December 2017 except Brazil (a
Slide 24: Small industry size and low leverage levels with ample room for growth
GRUPO a . . . SUPERVIELLE Small industry size and low leverage levels with ample room for growth | { ARGENTINA: Third largest economy of Latin America but small industry size Serazil @P mexico @ argentina Colombia Brrile (@) Peru > Small financial 246,4 (mi) industry 138,4 , 01,4 3) \ considering th
Slide 25: Ranking
GRUPO a SUPERVIELLE j Ranking Competition | Financial System in million of Ps as of September 2018 Argentine Financial system in ferme of Loans SS Gini ast y Deposits Loans Share Assets Share Deposits ) Share: Banco de la Nacién Argentina S.A. 390,991.6 16.7% 1,216,878.3 23.6% 1,019,373.0 26.8% Banc
Slide 26: Supervielle Seguros
8th Private Bank in terms SUPV of Loans Follow On Supervielle Seguros 26
Slide 27: Nationwide Network & Leadership in Core Products
GRUPO a SUPERVIELLE ] Nationwide Network & Leadership in Core Products Strong origination capacity for growth with the new capital DISTRIBUTION NETWORK AND CLIENT LEADERSHIP IN CORE PRODUCTS BASE WITH STRONG GROWTH POTENTIAL WITH COMPETITIVE ADVANTAGE . y CQeoraiat . SUPERVIELLE : = Branches): 203 =
Slide 28: Supervielle Strategy: One Client Vision
GRUPO a SUPERVIELLE J Supervielle Strategy: One Client Vision Corporate Consumer Banking Customers Finance Customers SUPERVIELLE Automatica sa. 1.4 Mill. 5K 412K ACTIVE CUSTOMERS Insurance SUPERVIELLE ELLE USER EXPERIENCE Asset Management SUPERVIELLE DIGITAL TRANSFORMATION AND EFFICIENCY Online Brok
Slide 29: Looking forward, Supervielle ranks high in KSF
| Looking forward, Supervielle ranks high in KSF GRUPO a SUPERVIELLE GROWTH customer DIVERSIFIED strategy base deposit base | Clear | | SIZEABLE | STRONG PRUDENT management to capital digital Avenues | ACCESS | transformation AGGRESSIVE | GROWTH Empowerment, FLEXIBILITY and FAST DECISIONS 29
Slide 30: Supervielle
i“ SUPERVIELLE
Slide 31: Key economic variables
COMPANY PRESENTATION Key economic variables Significant changes in market consensus along the year GDP3 Inflation Badlar Rate (eop) Monetary policy Rate (eop) FX Ar$ (eop)3 2018 (Januar ve 3.0% 19.4% 21%? 21.75% 21.9 38% 48.3 Source: Central Bank Market Expectation Survey (“REM”) 1 Macro assumptions
Slide 32: Lebac and Leliq revenues and expenses
1,389,257 1,374,256 1,298,644 1,340,754 1,111,790 1,254,833 1,121,400 1,072,538 1,070,299 931,061 854,511 774,815 709,104 773,432 722,449 630,310 Lebac (Financial Entities) Lebac (Non Financial Entities) Leliq Revenues Expenses 32
Slide 33: Assets & liabilities repricing dynamics
COMPANY PRESENTATION Assets & liabilities repricing dynamics equee,e | While AR$ liabilities reprice in an average of 33 days, AR$ loans are fully repriced in an average term of around 244 days Avg. Repricing % of (days) AR$ Assets Liabilities Total Assets 198 Total Liabilities 33 AR$ Loans 244 53%
Slide 34: Supervielle loan portfolio
Supervielle loan portfolio | Highly atomized, diversified and collateralized loan book | BREAKDOWN BY ECONOMIC ACTIVITY Families 21d 47 3°, individuals Commerce =id 8,3% Civil construction [xm 7,1% Servicies mad] 6,7% Manufactures fmm 5, 7% Chemicals & Plastics Ox Manufactures 5,0% Oil, Gas & Mining
Slide 35: Capital and liquidity
COMPANY PRESENTATION GRUPO a Capital. Robust capitalization coupled with ample liquidity SUPERVIELLE I levels and healthy balance sheet BP 208usT CAPITALIZATION BBB 200m For CONTINUED BALANCE SHEET GROWTH Risk weighted > coe eae (ie) I) isl (sk) al Jol [se [aoa loa [nse discretionary anticyclical bu
Slide 36: Interest Rates & Securities Breakdown
COMPANY PRESENTATION GRUPO a SUPERVIELLE J Interest Rates & Securities Breakdown BBP in teREST RATES (961 2Q18 1Q18 Interest earned on Loans 33.8% 30.9% 29.7% 30.4% 30.4% 287 336 AR$ 44.2% 38.4% 36.0% 35.7% 36.1% 580 810 U$s | 6.1% 5.6% 47% 4.9% 4.9% 50 120 Yield on Investment Porfolio 57.1% 39.0% 2
Slide 37: Interest Earning Assets
Interest Earning Assets Investment Portfolio Government and Corporate Securities! Securities Issued by the Central Bank? Total Investment Portfolio Loans Loans to the Financial Sector Overdrafts Promissory Notes Mortgage loans Automobile and Other Secured Loans Retail Banking Personal Loans Consumer
Slide 38: Interest Bearing Liabilities
GRUPO a SUPERVIELLE Interest Bearing Liabilities 3Q18 2Q18 1018 Avg. Avg. Avg. Avg. Avg. Avg. Avg. Avg. Avg. Balance Rate Balance Rate _ Balance Rate Balance Rate Balance Rate Time Deposits 23,546.8 25.4% 18,203.6 20.0% 15,7527 181% 14,245.5 17.0% 14,223.3 15.7% AR$ Time Deposits 19,1010 31.0% 15,85
Slide 39: Fx Position & NFI from US$ Operations
COMPANY PRESENTATION GRUPO a SUPERVIELLE | Fx Position & NFI from US$ Operations BBP GLOBAL NET POSITION LARS Mill Sep 18 Aug 18 Jul 18 Jun 18 May 18 Apr 18 Mar 18 Feb 18 Assets Cash and due from banks 385,131 367,849 379,620 326,765 294,210 309,554 238,814 294,603 Secuities at fair value through pr
Slide 40: Ratios
Ratios Key Indicators - Quarterly Profitability ROAE ROAA Net Interest Margin Net Financial Margin Net Fee Income Ratio Cost / Assets Efficiency Ratio Liquidity & Capital Loans to Total Deposits’ Liquidity Coverage Ratio (LCR)? Total Equity / Total Assets Proforma Consolidated Capital / Risk weighte
Slide 41: Thank you!
GRUPO | a SUPERVIELLE Thank you!
Grupo Supervielle — Santander's 23rd Annual Latin America Conference 2019 on 6ix