Grupo Supervielle Sa Class B · BCBA:SUPV
Grupo Supervielle Sa Class B — Santander Argentina 2019 Equity Conference
44 slides from Grupo Supervielle Sa Class B's conference presentation, Apr 8, 2019
Slide 1: Santander Argentina 2019 Equity Conference
GRUPO y- SUPERVIELLE > SUPERVIELLE Tarjeta Automatica s.a. Santander Ri O Arg fa , supenvitee 2019 Equity Conference ~” / vei g i \ ae j ; a ay April 2019 , eee | y i " Ch Jy sir dl /977 Yf Vp AD iE y= (19 invertirOntine.com y= u y A MR. mila
Slide 2: novation Simplicity Nunbte Commitment Respect Efficiency Innovation Simplicity Nimble
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: novation Simplicity Nunbte Commitment Respect Efficiency Innovation Simplicity Nimble
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 5: Supervielle
i“ SUPERVIELLE
Slide 6: Macro dynamics in 2018 and beginning 2019
COMPANY PRESENTATION Macro dynamics in 2018 and beginning 2019 ... aura, Pe | Challenging macro backdrop in 2018. FX stabilizing and interest rates declined in 4Q18, but still remain high. Economic activity seems to have reached an inflection point in Dec’18 BP iNe.ation 5%) - BD cori) Jan Feb 2019e
Slide 7: Reserve requirements February 2019
1,300 bps *Minimum reserve requirements for new time deposits since Oct 1 to Jan31, 2019 are set up 100% in leliqs February 2019 7
Slide 8: 10.0% (3.8)% 14.1% 9.5% 28.4% (2.3)% 36.2% (1.5)%
10.0% (3.8)% 14.1% 9.5% 28.4% (2.3)% 36.2% (1.5)% 8
Slide 9: Fourth quarter 2018 highlights
COMPANY PRESENTATION GRUPO a Fourth quarter 2018 highlights SUPERVIELLE Attributable net income up 51% YoY in challenging macro backdrop. Sequentially flat when excluding additional LLPs to achieve 100% NPL Coverage goal ahead of plan VV VRe Attributable Comprehensive Income of AR$935.3 million, up
Slide 10: 146,123 141,115 146,123 141,115 120,789 120,789 92,202 96,570 96,570 92,202 10
146,123 141,115 146,123 141,115 120,789 120,789 92,202 96,570 96,570 92,202 10
Slide 11: 83,378 80,172 75,830 66,480 60,693 • • ´
83,378 80,172 75,830 66,480 60,693 • • ´ 11
Slide 12: Supervielle loan performance
. GRUPO - Supervielle loan performance SUPERVIELLE Loan book reflects lower loan demand in recessionary environment, AR$ appreciation on US$- denominated loans and risk management initiatives | | TOTAL LOAN PORTFOLIO BREAKDOWN BY SEGMENT Loans & Leasing Portfolio [AR$ Mill. CORPORATE RETAIL CONSUMER
Slide 13: 97,185 94,906 75,673 56,409 55,540 • • •
97,185 94,906 75,673 56,409 55,540 • • • 13
Slide 14: Funding & deposit base
GRUPO a Funding & deposit base SUPERVIELLE | Weight of retail deposits increased by 450 bps QoQ reaching 44% of total deposits BBP runoine cars mis By ©: Posits BREAKDOWN 54.4% DECEMBER 2018 21.5%) B.2% Special 5 Checking Other . 24.0% | 140,307 | Accounts ime it 6.5% — | 135,054 | eposits Non inter
Slide 15: Net Financial Income, NIM & NEM
cruro > j Net Financial Income, NIM & NEM SUPERVIELLE Net Financial Income up 20% QoQ reflecting higher avg. asset & deposit volumes, and interest rates, partially offset by higher cost of funds. NFM expanded 210 bps sequentially. BP vec Financial Income [AR$ Mill.] | f NIM2 TOTAL 19.6% 19.2% 20.9%
Slide 16: Service fee income & income from insurance activities
Service fee income & income from insurance activities GRUPO a SUPERVIELLE Net service fee income up 4% QoQ; driven by higher deposit and credit card fee income, partially offset by higher commissions paid and soft corporate loan origination BBP 7 SERVICE FEE INCOME? [ARS Mill. 4Q17 1Q18 2Q18 §=3Q18
Slide 17: Credit card, personal loans and retail 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 • 17
Slide 18: Asset quality consumer finance
GRUPO a SUPERVIELLE ] Asset quality consumer finance NPL creation and 3-month vintage remain well below peak levels of 1H18 reflecting tighter credit scorings. However, steep inflation following 101% AR$ devaluation resulted in some deterioration. By +30 DAYS DELINQUENCY, 3 MONTH VINTAGE BBP consume
Slide 19: 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 20: Profitability
GRUPO a Profitability sureRviEwte Attributable Comprehensive Income up 98% YoY and 7% QoQ. Net Income up 51% YoY, and flat QoQ when excluding voluntary increase in LLPs to achieve 100% NPL Coverage Ratio ahead of plan ATTRIBUTABLE COMPREHENSIVE INCOME [AR$ Mill.] * AQ18 Attributable Net Income, down
Slide 21: Tier 1 capital
TIER1 BS Capital Injection in BS made in Dec18 but approved in Jan 19 Capital Retained at the Holding Level • • • • 21
Slide 22: FY2018 results fairly in line with guidance
COMPANY PRESENTATION GRUPO a SUPERVIELLE j FY2018 results fairly in line with guidance FY 2018 EXPECTATIONS (3) . FY'18 Guidance reported figures Total Loan Growth” 40-50 % 32.1% xX 4.6 - 5.1%! 5.8% x 18 - 20% Cost of Risk AR$ 2.9 - 3.3 Bill. 1. This assumed we were not increasing our NPL Coverage R
Slide 23: Supervielle 2019 guidance
Supervielle 2019 guidance sont 2019 MACRO FY 2019 ASSUMPTION EXPECTATIONS > GDP® expected to contract by 1.3% in 2019 Total Loan 21-31% Efficiency 61-63% - . - (e) > Inflation® reaching 32% for rowth Rio full year 2019 > Average Deposit rate” . AR$ (BADLAR) expected to reach Cost of Risk MRCS 3.3-3.
Slide 24: Supervielle
i“ SUPERVIELLE
Slide 25: Why Supervielle
GRUPO a SUPERVIELLE Js WHY SUPERVIELLE > Argentina: towards Fiscal Sustainability Great > Financial Sector: POTENTIAL Growth Potential Intact going into the >sUPV FUTU RE Operating Leverage Differentiated Strategy to Capture Growth Leadership in Relevant Products and Markets 25
Slide 26: Argentine banking has potential for a growth cycle when the economy rebounds
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 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 brazil @Pmexico Sargentina @ Colombia GSrrile (@) Peru > Small financial 246.4 (mi) industry 01.4 31) Bea considering the u—" . siz
Slide 28: Competition: 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 29: Supervielle Seguros
8th Private Bank in terms SUPV of Loans as of Follow On Dec 2018 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 with the new capital DISTRIBUTION NETWORK AND CLIENT LEADERSHIP IN CORE PRODUCTS BASE WITH STRONG GROWTH POTENTIAL WITH COMPETITIVE ADVANTAGE . y CQeoraiat . SUPERVIELLE : = Branches: 204 =
Slide 31: 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 397K ACTIVE CUSTOMERS Insurance SUPERVIELLE ELLE USER EXPERIENCE Asset Management SUPERVIELLE DIGITAL TRANSFORMATION AND EFFICIENCY Online Brok
Slide 32: 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 32
Slide 33: Supervielle
i“ SUPERVIELLE
Slide 34: Lebac and Leliq revenues and expenses
1,374,256 1,298,644 1,389,257 1,340,754 1,111,790 1,254,833 1,121,400 1,072,538 1,070,299 927,638 854,511 931,061774,816 825,038 788,529 709,104 773,432 743,977 722,449 Lebac (Financial Entities) Lebac (Non Financial Entities) Leliq Revenues Expenses 34
Slide 35: Assets & liabilities repricing dynamics
COMPANY PRESENTATION Assets & liabilities repricing dynamics equee,e | While AR$ liabilities reprice in an average of 43 days, AR$ loans are fully repriced in an average term of around 235 days Avg. Repricing % of Liabilities (GEW79) AR$ Assets Total Assets 185 Total Liabilities 43 AR$ Loans 235 54%
Slide 36: Capital and liquidity levels
COMPANY PRESENTATION levels and healthy balance sheet BP 208usT CAPITALIZATION > 0-2.5% 228 ug Lea%] [8.2%] [13.9%] [19.6%] [14.0%] anticyclical buffer ** 100 bps of > +10.5% including adtoal Cen ; remaineat Grupo conservation buffer renee > 8.0% Total capital regulatory minimum > 6.0% Tier | regula
Slide 37: Interest Rates & Securities Breakdown
COMPANY PRESENTATION GRUPO a SUPERVIELLE J Interest Rates & Securities Breakdown BBP in teREST RATES (961 4Q18 3Q18 2Q18 1Q18 Interest earned on Loans 42.1% 33.8% 30.9% 29.7% 30.4% 830 1171 AR$ 55.0% 44.2% 38.4% 36.0% 35.7% 1,082 1,931 U$S | 7.2% 6.1% 5.6% 47% 4.9% 12 229) Yield on Investment Porfol
Slide 38: Interest Earning Assets
Interest Earning Assets Investment Portfolio Government and Corporate Securities! Securities Issued by the Central Bank? Total Investment Portfolio Loans Loans to the Financial Sector Overdrafts Promissory Notes Mortgage loans Automobile and Other Secured Loans Retail Banking Personal Loans Consumer
Slide 39: Interest Bearing Liabilities
GRUPO a SUPERVIELLE Interest Bearing Liabilities 2Q18 1Q QI7 Time Deposits 26,7741 37.3% 23,5468 25.4% 18,203.6 20.0% 15,752.7 18.1% 14,2455 17.0% AR$ Time Deposits 22,043.6 44.9% 19,1010 31.0% 15,8541 22.8% 13,858.4 20.5% 12,566.1 19.2% Fx Time Deposits 4,730.6 17% 4,445.8 17% 2,349.6 1.0% 18943 0.
Slide 40: Fx Position & NFI from US$ Operations
COMPANY PRESENTATION GRUPO a SUPERVIELLE | Fx Position & NFI from US$ Operations BBP GLOBAL NET POSITION (US$ Mil. Dec 18 Nov 18 Oct 18 Sep 18 Jun 18 Mar 18 Assets Cash and due from banks 432,668 369,227 421,725 385,131 326,765 Secuities at fair value through profit or loss | 102,321 101,932 53,328
Slide 41: Key Indicators - Quarterly
GRUPO a SUPERVIELLE Ratios | Key Indicators - Quarterly 3Q18 Q18 1Q1 Q17 Profitability ROAE 22.6% 22.4% 12.6% 20.6% 13.3% Loans/Total Deposits ratio was restated in previous quarters due to the inclusion in the ROAA 2.6% 2.7% 18% 3.3% 2.2% balance sheet of the securitized and transferred loans, Net
Slide 42: Supervielle loan portfolio
. . La Supervielle loan portfolio aura, re Highly atomized, diversified and collateralized loan book | BREAKDOWN BY ECONOMIC ACTIVITY /f COLLATERALS OF THE CORPORATE PORTFOLIO 3.0%, innit Services a 10.3% SMEs Markets Large Total corivans Lt 7.8% Collateralized Civil construction \x!/ 7.8% Portfolio
Slide 43: novation Simplicity Nunbte Commitment Respect Efficiency Innovation Simplicity Nimble
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 44: Grupo Supervielle
GRUPO | a SUPERVIELLE
Grupo Supervielle — Santander Argentina 2019 Equity Conference on 6ix