Grupo Supervielle Sa Class B · BCBA:SUPV
Grupo Supervielle Sa Class B — Morgan Stanley Virtual Argentina Day in New York and Buenos Aires (July 2019)
46 slides from Grupo Supervielle Sa Class B's conference presentation, Jul 12, 2019
Slide 1: Supervielle September 2019
SUPERVIELLE SUPERVIELLE PY cordial Automatica s.a. SUPERVIELLE SeGUROS September, 2019 y ii SUPERVIELLE a ASSET Q invertirOnline.com 1 mila
Slide 2: Company values
novation Simplicity Nunbte Commitment Respect Efficiency Innovation Simplicity Nimble 2 Commitment Respect Efficiency Innovation Simplicity Nimble Commitment Respect Effie niitment Respect Efficiency Innovation Simplicity Nimble Commitment Respect Efficiency | Efficiency Innovation Simplicity Nimble
Slide 3: 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 4: Supervielle
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Slide 5: Central Bank FX intervention strategy change
Non-Intervention zone Since April 29, 2019 the Central Bank has changed its Fx intervention strategy 5
Slide 6: 2.1% 0.4% -3.8% 10.0% 28.4% -2.3% 15.6% 2.7%
2.1% 0.4% -3.8% 10.0% 28.4% -2.3% 15.6% 2.7% 6
Slide 7: Non-intervention zone
Non-Intervention Since April 29, 2019 the zone Central Bank has changed its Fx intervention strategy 7
Slide 8: Flexibility under volatile macro scenario
COMPANY PRESENTATION GRUPO - SUPERVIELLE J Flexibility under volatile macro Scenario Soft Loan Demand Loan Growth 0.4% QoQ 8.3% YoY Governance Peso Deposits Growth / Funding Apel Non interest bearing Deposits (ARS) 41% of total AR$ deposits Deposits Growth: 2.7% QoQ 48.8% YoY Costs Control Efficienc
Slide 9: 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 400K ACTIVE CUSTOMERS Insurance SUPERVIELLE ELLE USER EXPERIENCE Asset Management SUPERVIELLE DIGITAL TRANSFORMATION AND EFFICIENCY Online Brok
Slide 10: Our Digital Agenda
GRUPO a SUPERVIELLE | Our Digital Agenda Customer Episodes / Routine transactions in branches = Digital Onboarding = Cash Management Initiatives to drive higher efficiency in Senior Citizens Branches A leaner and more agile management structure that facilitates synergies across the platform = New Ap
Slide 11: Supervielle
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Slide 12: Second quarter 2019 highlights
COMPANY PRESENTATION GRUPO a Second quarter 2019 highlights SUPERVIELLE Pre-Tax Profit more than doubled QoQ underscoring flexibility of the franchise in volatile environment. Maintain focus on strategic digital initiatives QV LQ OLA Net Financial Income up 20% QoQ while NIM rose 300 bps to 22.1% dr
Slide 13: 163,849 166,145 163,849 166,145 146,123 141,115 146,123 120,789 141,115 120,789 13
163,849 166,145 163,849 166,145 146,123 141,115 146,123 120,789 141,115 120,789 13
Slide 14: 83,378 81,827 82,118 75,830 80,172
83,378 81,827 82,118 75,830 80,172 14
Slide 15: 97,185 109,677 112,638 94,906 75,673
97,185 109,677 112,638 94,906 75,673 15
Slide 16: Funding & deposit base
. . GRUPO a Funding & deposit base SUPERVIELLE | Reduced exposure to wholesale & institutional deposit sequentially given lower spreads at quarter end. Expanding share of retail & senior citizens deposits QoQ to 46% from 42% BBP Funoine cars mils 36.3% 21.5% 15.6% | | 0.8% [140,307] ~_ 62% ~ jjags,0
Slide 17: 12,038.0 5,477.7 6,560.3 7,238.6 5,258.1 3,615.0 4,386.2 • • • • 17
12,038.0 5,477.7 6,560.3 7,238.6 5,258.1 3,615.0 4,386.2 • • • • 17
Slide 18: Service fee income & income from insurance activities
—_ cruro > Service fee income & income from insurance activities SUPERVIELLE Net service fee income stable QoQ as soft loan origination and higher commissions paid, partially offset repricing on bundled services and non-credit related insurance BBP \c7 SERVICE FEE INCOME? CARS Mill. BBP come FROM IN
Slide 19: Credit card and loan NPL
Credit Card Loans NPL Credit Card Loans Delinquency +90 Personal Loans NPL Personal Loans Delinquency +90 Retail Segment NPL Retail Segment Delinquency • • • • 19
Slide 20: Asset quality consumer finance
Asset quality consumer finance Second consecutive quarter of lower NPL creation driven by earlier actions to tighten credit scoring standards BBP «30 DAYS DELINQUENCY, 3 MONTH VINTAGE Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov
Slide 21: Efficiency ratio definition
*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 22: Inflation adjustment in income tax provision
If inflation adjustment in income tax provision would have been considered as of March 31, 2019, the impact would have been Ps. 331 million and Ps. 333 million in 2Q19 and 1Q19, respectively, attributable net income would have been Ps. 1.6 Bn and Ps. 923 million in 2Q19 and 1Q19, respectively, and R
Slide 23: Capitalization
GRUPO a coo . SUPERVIELLE Capitalization Common Equity Tier 1 Ratio (Consolidated Proforma) of 11.9% in 2Q19, 10 bps above comparable Tier 1 Ratio of 11.8% in 1Q19 BBD AP ITAL DEPLOYMENT [Tier | ratio 961 09 0.2 01 (0.5) (0.8) (01) = — =_ _— 119 121 TIER1 Capital (Consolidated pro Geis Fx Impact on
Slide 24: Supervielle 2019 guidance
GRUPO - SUPERVIELLE Supervielle 2019 guidance While 1H19 net income is tracking ahead of full-year outlook, guidance is placed under revision given heightened volatility and uncertainty It is more challenging to calibrate guidance around many of the key business drivers for the back half of the year
Slide 25: Supervielle
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Slide 26: Argentine banking business growth potential
COMPANY PRESENTATION The Argentine banking business has the potential for a growth cycle when the economy rebounds | Under-developed Banking & Insurance System S argentina 15 Loans to the Private Sector as a % of GDP (%) as of December 2017 except Brazil (as of Dec-16) Insurance Premiums Written?” L
Slide 27: Small industry size and low leverage levels
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 brazil @Pmexico Sargentina @ Colombia GSrrile (@) Peru > Small financial 246.4 (mi) industry 01.4 31) Bea considering the u—" . siz
Slide 28: Competition
GRUPO a SUPERVIELLE Ranking Competition | Financial System in million of Ps as of June 2019 Argentine Financial Argentine Financial . System in terms of System in terms of Loans pore Deposits Assets Share Deposits ) Share: Banco de la Nacién Argentina S.A. 378,295.9 16.0% 1,130,969.3 18.5% 931,584.6
Slide 29: Supervielle Seguros
8th Private Bank in terms SUPV of Loans as of Follow On Mar 2019 Supervielle Seguros 29
Slide 30: Nationwide Network & Leadership in Core Products
GRUPO a SUPERVIELLE ] Nationwide Network & Leadership in Core Products Strong origination capacity for growth DISTRIBUTION NETWORK AND CLIENT LEADERSHIP IN CORE PRODUCTS BASE WITH STRONG GROWTH POTENTIAL WITH COMPETITIVE ADVANTAGE 2 Leasing” wy > ° SUPERVIELLE @) : = Branches): 204 = Branches: 79 (I
Slide 31: Key Macro Indicators
GRUPO a SUPERVIELLE J Key Macro Indicators GDP real growth (%) Primary fiscal balance (excludes interest) (as a % of GDP) 31 27 24 05 01 06 +10 24 3.1 37-420 3B 23 or (03) Fiscal balance (as a % of GDP) 15 09 08 09 410 18 24 29 -41 51 58 59 50 «8 cance of payments (as % of 28 24 15 22 04 A 04 21 160
Slide 32: Reserve requirements
1,300 bps *Minimum reserve requirements for new time deposits since Oct 1 to Jan31, 2019 are set up 100% in leliqs Since Feb 2019 Since July 2019 32
Slide 33: Lebac and Leliq
11.3% As % of GDP 1,389.3 8.1% 1,374.3 1,340.8 As % of GDP 1,298.6 1,279 1,254.8 6.7% As % of GDPe 1,111.8 1,121.4 5.6% 1,106 1,072.5 1,070.3 As % of GDP 1,039 982.2 931.1 5.0% 942.8 As % of GDP 927.6 854.5 774.8 788.5 825.0 773.4 744,0 709.1 722.4 Lebac (Financial Entities) Lebac (Non Financial Ent
Slide 34: August 28, 2019: Debt reprofiling
GRUPO a SUPERVIELLE J August 28, 2019: Debt reprofiling Reprofiling schedule a ae (holders as of July 31,19) Short Term > Retail > Holdings as of July 30, ea 2019 not affected by > Lecap debt reprofiling > Letes > 15% will be paid at ~ oe maturity > Lelinks > 25% will be paid 3 > Tidsalstisteii) mon
Slide 35: September 1, 2019: BCRA measures to control capital outflows
GRUPO a SUPERVIELLE | September 1, 2019: BCRA measures to control capital outflows Goods and Servicies Households Companies Dividends Non-residents Debt Exporters will have to sell USD from their exports to the central bank within 5 days after the payments (or 6 months after they obtained the permit
Slide 36: Capital & Liquidity
COMPANY PRESENTATION ; ar a Capital & Liquidity SUPERVIELLE | BD <aritauization BP Tanciste common ratio > aoe (a |. (a) a fas Um assets anticyclical buffer” > +10.5% including conservation buffer > 8.0% Total capital regulatory minimum > 6.0% Tier | regulatory minimurtiGEzaat > 4.5% CET1 regulatory
Slide 37: Assets & liabilities repricing dynamics
COMPANY PRESENTATION Assets & liabilities repricing dynamics equee,e | While AR$ liabilities reprice in an average of 54 days, AR$ total Assets are fully repriced in 158 days, and AR$ loans are fully repriced in an average term of approximately 249 days. Avg. Repricing % of (Eset (GEW79) AR$ Assets
Slide 38: Income statement
Net Interest Income NIFFI & Exchange Rate Differences Net Financial Income Net Service Fee Income (excluding income from insurance activities) Income from Insurance activities Loan Loss Provisions Personnel & Administrative Expenses Profit before income tax Attributable Net income Attributable Compr
Slide 39: Interest Rates & Securities Breakdown
COMPANY PRESENTATION GRUPO a SUPERVIELLE J Interest Rates & Securities Breakdown BBP in teREST RATES (961 2Q19 1Q19 4Q18 3Q18 2Q18 Interest earned on Loans 41.0% 39.7% 42.1% 33.8% 30.9% 129 1,012 AR$ 54.6% 52.1% 55.0% 44.2% 38.4% 245 1,617 U$S | 71% 6.8% 7.2% 6.1% 5.6% 33 150 Yield on Investment Por
Slide 40: Interest Earning Assets
Interest Earning Assets i) 1Q19 Q18 3Q Q18 Investment Portfolio Balance Rate falonce Rate Balance ate felonce Rate Balance Rate Government and Corporate Securities 10,557.4 18.4% 9,984.9 38.4% 10,113.11 21.6% 6,567.3 65.9% 3,7211 60.8% Securities Issued by the Central Bank 27,2683 70.5% 28,2423 55.7
Slide 41: Interest Bearing Liabilities
Interest Bearing Liabilities Time Deposits AR$ Time Deposits Fx Time Deposits Special Checking Accounts AR$ Special Checking Accounts Fx Special Checking Accounts Borrowings from Other Fin. Inst. & Unsub Negotiable Obligations Subordinated Loans & Negotiable Obligations Total Interest-Bearing Liabil
Slide 42: Balance sheet
450,562 415,146 421,594 393,171 400,518 424,469 432,668 385,131 326,765 36,404 46,206 39,165 64,231 91,919 90,253 102,321 56,629 22,457 469,108 479,243 494,621 496,663 498,128 505,975 521,106 571,211 641,893 4,446 33,705 13,494 9,686 5,569 3,387 3,565 3,659 2,885 33,946 34,695 35,233 36,127 30,052 2
Slide 43: Ratios
Ratios Key Indicators - Quarterly Profitability ROAE ROAA Net Interest 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 weighted assets? Tierl Capit
Slide 44: Supervielle loan portfolio
GRUPO a SUPERVIELLE Supervielle loan portfolio Atomized, diversified and collateralized loan book /f COLLATERALS OF THE CORPORATE PORTFOLIO | BREAKDOWN BY ECONOMIC ACTIVITY Families and individ|5 i! 45,4: Civil Constructi OY ME ivil Construction [a 10.0% S ¢ s& ; Large Total Commerce all 6.4% Middle
Slide 45: Company values
novation Simplicity Nunbte Commitment Respect Efficiency Innovation Simplicity Nimble 2 Commitment Respect Efficiency Innovation Simplicity Nimble Commitment Respect Effie niitment Respect Efficiency Innovation Simplicity Nimble Commitment Respect Efficiency | Efficiency Innovation Simplicity Nimble
Slide 46: Grupo Supervielle
GRUPO | a SUPERVIELLE