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 December, 2022

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 for the period ended on September 30, 2022, presented on comparative basis.


Graphic

Consolidated Condensed Interim Financial Statements

For the nine-month period ended on

September 30, 2022, presented on comparative basis


Contents

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION2

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION3

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME4

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY7

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS9

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS10

1. ACCOUNTING STANDARDS AND BASIS OF PREPARATION11

2. CRITICAL ACCOUNTING POLICIES AND ESTIMATES20

3. SEGMENT REPORTING21

4. FAIR VALUES24

5. CASH AND DUE FROM BANKS27

6. RELATED PARTY TRANSACTIONS28

7. COMPOSITION OF THE MAIN ITEMS OF THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND CONSOLIDATED INCOME STATEMENT28

8. CONSIDERATION OF THE RESULTS32

9. INSURANCE32

10. ASSET MANAGEMENT AND OTHER SERVICES32

11. ADDITIONAL INFORMATION REQUIRED BY THE BCRA32

12. FINANCIAL RISK FACTORS36

13. INTERNATIONAL FINANCING PROGRAMS36

14. ASSIGNMENT OF LOAN PORTFOLIO36

15. OWN SHARES ACQUISITION PROGRAM37

16. ECONOMIC CONTEXT IN WHICH THE COMPANY OPERATES37

17. SUBSEQUENT EVENTS38

SCHEDULE A - DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS, OTHER DEBT SECURITIES, EQUITY INSTRUMENTS40

SCHEDULE B – CLASSIFICATION OF LOANS AND OTHER FINANCING CREDIT ACCORDING TO STATUS AND COLLATERAL RECEIVED45

SCHEDULE C - CONCENTRATION OF LOANS AND OTHER FINANCING47

SCHEDULE D – BREAKDOWN OF TOTAL LOANS AND OTHER FINANCING48

SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT49

SCHEDULE G - INTANGIBLE ASSETS50

SCHEDULE H – CONCENTRATION OF DEPOSITS51

SCHEDULE I – BREAKDOWN OF FINANCIAL LIABILITIES FROM REMAINING TERMS52

SCHEDULE L - ASSETS AND LIABILITIES IN FOREIGN CURRENCY53

SCHEDULE R – LOAN LOSS RISK PROVISIONS54

SEPARATE CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION56

SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME57

EARNING PER SHARE58

SEPARTE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME59

SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY60

SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY61

SEPARATE CONDENSED INTERIM STATEMENT OF CASH FLOW62

1. ACCOUNTING STANDARDS AND BASIS OF PREPARATION63

2. FAIR VALUES69

3. INVESTMENT IN SUBSIDIARIES AND ASSOCIATES71

4. COMPOSITION OF THE MAIN ITEMS OF THE SEPARATE STATEMENT OF COMPREHENSIVE INCOME72

5. RESTRICTED ASSETS74

6. COMPANIES UNDER SECT, 33 OF CORPORATE LAW AND OTHER RELATED COMPANIES74

7. LOAN AND DEBT ESTIMATED TERMS78

8. CAPITAL STOCK78

9. CASH AND DUE FROM BANKS79

10. SUBSEQUENT EVENTS79

SCHEDULE A – OTHER DEBT SECURITIES80

SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT81

SCHEDULE G - INTANGIBLE ASSETS82

SCHEDULE L – ASSETS AND LIABILITIES IN FOREIGN CURRENCY83

INFORMATIVE REVIEW AS OF SEPTEMBER 30, 202284


Graphic

Consolidated Condensed Interim Financial Statements

For the nine-month period ended on

September 30, 2022, presented on comparative basis in homogeneous currency


1

GRUPO SUPERVIELLE S.A.

Name:

Grupo Supervielle S.A.

Financial year:

N° 47 started on January 1, 2022

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 6 to Separate Financial Statements

Composition of Capital Stock as of September 30, 2022

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 September 30, 2022 and December 31, 2021

(Expressed in thousands of pesos in homogeneous currency)

ASSETS

Notes and

Schedules

09/30/2022

12/31/2021

 

Cash and due from banks

4 and 5

34,719,311

54,096,981

 

Cash

13,081,598

20,907,525

 

Financial institutions and correspondents

21,421,164

32,123,360

 

Argentine Central Bank

18,842,143

30,116,599

 

Other local and financial institutions

2,579,021

2,006,761

 

Others

216,549

1,066,096

 

Debt Securities at fair value through profit or loss

4, 5, 7.1 and A

15,448,777

37,324,702

 

Derivatives

7.2 and 4

242,298

368,447

Reverse Repo transactions

4 and 7.3

9,571,157

71,161,797

Other financial assets

4, 7.4 and 5

8,209,749

23,072,259

 

Loans and other financing

4,7.5 and B

204,542,487

253,695,174

To the non-financial public sector

345,747

37,762

To the financial sector

522,870

127,598

 

To the Non-Financial Private Sector and Foreign residents

203,673,870

253,529,814

 

Other debt securities

4, 7.6 and A

210,915,818

131,202,696

 

Financial assets pledged as collateral

4 and 7.7

14,716,375

14,182,568

Deferred income tax assets

1,025,901

1,461,928

 

Investments in equity instruments

4 and A

385,005

438,899

 

Property, plant and equipment

F

17,142,838

18,326,065

Investment property

F

15,015,130

14,445,278

 

Intangible assets

G

19,193,703

18,969,090

 

Deferred income tax assets

6,134,049

5,328,349

Other non-financial assets

7.8

5,347,265

4,086,901

Inventories

7.9

202,627

227,147

 

TOTAL ASSETS

562,812,490

648,388,281

 

 

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 September 30, 2022 and December 31, 2021

(Expressed in thousands of pesos in homogeneous currency)

 

 

Notes and

Schedules

09/30/2022

12/31/2021

LIABILITIES

Deposits

4, 7.10 and H

428,013,979

479,052,479

Non-financial public sector

23,430,989

19,056,963

Financial sector

62,232

64,933

Non-financial private sector and foreign residents

404,520,758

459,930,583

Liabilities at fair value through profit or loss

4 and 7.11

395,601

3,409,848

Reverse Repo transactions

4

2,320,845

-

 

Other financial liabilities

4 and 7.12

18,287,031

39,492,682

 

Financing received from the Argentine Central Bank and other financial institutions

4 and 7.3

4,665,683

10,383,826

 

Unsubordinated debt securities

4 and 11.5

557,521

1,759,117

 

Provisions

7.14

1,365,828

1,517,365

Deferred income tax liabilities

77,288

102,527

 

Other non-financial liabilities

7.15

26,052,318

26,976,694

 

TOTAL LIABILITIES

481,736,094

562,694,538

 

 

SHAREHOLDERS' EQUITY

Capital stock

452,467

456,722

 

Paid in capital

72,339,947

72,339,947

Capital Adjustments

7,888,552

8,129,638

Own shares in portfolio

4,255

-

Comprehensive adjustment of shares in portfolio

241,086

-

Cost of treasury stock

(419,801)

-

 

Reserve

5,286,517

7,698,479

 

Retained earnings

(3,016,640)

(1,654,954)

Other comprehensive income

1,301,678

2,010,462

 

Net income for the period / year

(3,065,806)

(3,354,578)

 

Shareholders' Equity attributable to owners of the parent company

81,012,255

85,625,716

Shareholders' Equity attributable to non-controlling interests

64,141

68,027

TOTAL SHAREHOLDERS' EQUITY

81,076,396

85,693,743

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

562,812,490

648,388,281

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 the nine and three-month period on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Note

Nine-month period ending on

Three-month period ending on

09/30/2022

09/30/2021

09/30/2022

09/30/2021

Interest income

7.16

152,006,000

128,627,106

58,141,129

44,415,114

Interest expenses

7.17

(95,891,907)

(75,263,056)

(38,058,747)

(26,751,515)

Net interest income

56,114,093

53,364,050

20,082,382

17,663,599

Service fee income

7.19

19,701,350

20,649,227

6,209,968

7,036,603

Service fee expenses

7.20

(7,049,011)

(6,274,449)

(2,213,521)

(2,124,095)

Income from insurance activities

9

2,946,377

2,767,931

936,681

870,065

Net Service Fee Income

15,598,716

17,142,709

4,933,128

5,782,573

Subtotal

71,712,809

70,506,759

25,015,510

23,446,172

Net income from financial instruments (NIFFI) at fair value through profit or loss

7.18

12,149,250

12,657,684

3,939,525

3,883,765

Result from assets withdrawals rated at amortized cost

448,814

115,309

(22,404)

(25,039)

Exchange rate difference on gold and foreign currency

1,906,400

1,063,479

638,715

350,589

Subtotal

14,504,464

13,836,472

4,555,836

4,209,315

Other operating income

7.21

5,982,010

5,399,639

2,191,976

1,665,529

Result from exposure to changes in the purchasing power of the currency

(11,998,379)

(9,810,705)

(4,260,231)

(2,725,241)

Loan loss provisions

(8,691,111)

(11,919,906)

(2,243,520)

(3,142,715)

Net operating income

71,509,793

68,012,259

25,259,571

23,453,060

Personnel expenses

7.22

(34,638,584)

(31,939,396)

(10,877,042)

(10,111,205)

Administration expenses

7.23

(18,211,153)

(19,027,940)

(6,511,833)

(6,540,295)

Depreciations and impairment of non-financial assets

7.24

(5,637,837)

(5,202,093)

(1,824,309)

(1,734,208)

Other operating expenses

7.25

(15,378,125)

(13,743,929)

(5,481,013)

(4,766,722)

Operating income

(2,355,906)

(1,901,099)

565,374

300,630

(Loss) before taxes from continuing operations

(2,355,906)

(1,901,099)

565,374

300,630

Income tax

713,135

(61,893)

1,128,436

617,256

Net (loss) for the period

(3,069,041)

(1,839,206)

(563,062)

(316,626)

Net (loss) for the period attributable to owners of the parent company

(3,065,806)

(1,837,200)

(562,354)

(316,100)

Net (loss) for the period attributable to non-controlling interests

(3,235)

(2,006)

(708)

(526)

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

EARNING PER SHARE

For the nine and three-month period on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Nine-month period ending on

Three-month period ending on

09/30/2022

09/30/2021

09/30/2022

09/30/2021

NUMERATOR

Net (loss) for the period attributable to owners of the parent company

(3,065,806)

(1,837,200)

(562,354)

(316,100)

PLUS: Diluting events inherent to potential ordinary shares

-

-

-

-

Net (loss) attributable to owners of the parent company adjusted by dilution

(3,065,806)

(1,837,200)

(562,354)

(316,100)

DENOMINATOR

Weighted average of ordinary shares

456,332

456,722

455,565

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

456,332

456,722

455,565

456,722

Basic Income per share

(6.72)

(4.03)

(1.23)

(0.69)

Diluted Income per share

(6.72)

(4.03)

(1.23)

(0.69)

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 the nine and three-month period on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Nine-month period ending on

Three-month period ending on

09/30/2022

09/30/2021

09/30/2022

09/30/2021

Net (loss) for the period

(3,069,041)

(1,839,206)

(563,062)

(316,626)

Components of Other Comprehensive Income not to be reclassified to profit or loss

Revaluations of the year of property, plant and equipment and intangibles

-

(88,125)

-

-

Revaluations of property, plant and equipment and intangibles

-

(2,991)

-

-

Income tax

-

(85,134)

-

-

Net income from equity instrument at fair value through changes in other comprehensive income

(34,704)

(38,344)

2,718

(99,952)

Income for the period from equity instrument at fair value through other comprehensive income

(53,391)

(54,776)

4,182

(116,384)

Income for the period from hedging instrument at fair value through other comprehensive income

-

-

-

-

Income tax

18,687

16,432

(1,464)

16,432

Total Other Comprehensive Income not to be reclassified to profit or loss

(34,704)

(126,469)

2,718

(99,952)

Components of Other Comprehensive Income to be reclassified to profit or loss

Foreign currency translation difference in financial statements conversion

33,788

-

10,065

-

Foreign currency translation differences for the period

33,788

-

10,065

-

(Loss) from financial instrument at fair value through changes in other comprehensive income

(708,589)

(301,451)

297,943

381,630

(Loss) for the year from financial instrument at fair value through other comprehensive income

(1,084,014)

(396,178)

436,165

650,106

Income tax

375,425

94,727

(138,222)

(268,476)

Total Other Comprehensive Income to be reclassified to profit or loss

(674,801)

(301,451)

308,008

381,630

Total Other Comprehensive Income

(709,505)

(427,920)

310,726

281,678

Other comprehensive income attributable to owners of the parent company

(708,784)

(427,468)

310,529

281,410

Other comprehensive income attributable to non-controlling interests

(721)

(452)

197

268

Total Comprehensive (Loss)

(3,778,546)

(2,267,126)

(252,336)

(34,948)

Total comprehensive (loss) attributable to owners of the parent company

(3,774,590)

(2,264,668)

(251,825)

(34,690)

Total comprehensive (loss) attributable to non-controlling interests

(3,956)

(2,458)

(511)

(258)

TThe 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 nine-month period ended on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Items

Capital stock

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 attributable to parent company

Total

Shareholders´ equity attributable to non-controlling interest

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, 2021

456,722

8,129,638

72,339,947

-

-

-

883,232

6,815,247

(5,009,532)

1,357,324

673

652,465

85,625,716

68,027

85,693,743

Issue premium

-

-

-

-

-

-

-

272

-

-

-

-

272

70

342

Adquisición de acciones propias

(4,255)

(241,086)

-

4,255

241,086

(419,801)

-

-

-

-

-

-

(419,801)

-

(419,801)

Consideration of results approved by the General Assembly of Shareholders held on April 27, 2022:

Absorption of results

-

-

-

-

-

-

-

(1,992,892)

1,992,892

-

-

-

-

-

-

Dividend distribution

-

-

-

-

-

-

-

(419,342)

-

-

-

-

(419,342)

-

(419,342)

Net loss for the period

-

-

-

-

-

-

-

(3,065,806)

-

-

-

(3,065,806)

(3,235)

(3,069,041)

Other comprehensive (loss) / income for the period

-

-

-

-

-

-

-

-

-

-

33,788

(742,572)

(708,784)

(721)

(709,505)

Balance at September 30, 2022

452,467

7,888,552

72,339,947

4,255

241,086

(419,801)

883,232

4,403,285

(6,082,446)

1,357,324

34,461

(90,107)

81,012,255

64,141

81,076,396

The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial.


8

GRUPO SUPERVIELLE S.A.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY

For the nine-month period ended on September 30, 2022 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

Earnings or los accrued by financial institutions at FV through profit and loss

Balance at December 31, 2020

456,722

8,129,637

72,339,947

-

-

8,553,278

1,482,980

128,716

91,091,280

72,791

91,164,071

Impact of IFRS 9 Adjustments

-

-

-

-

-

(1,654,402)

-

566,403

(1,087,999)

(1,058)

(1,089,057)

Balance at December 31, 2020

456,722

8,129,637

72,339,947

-

-

6,898,876

1,482,980

695,119

90,003,281

71,733

90,075,014

Distribution of retained earnings by the shareholders’ meeting on April 27, 2021:

Constitution of reserves

-

-

-

883,233

6,815,246

(7,698,479)

-

-

-

-

-

Dividend distribution

-

-

-

-

-

(854,799)

-

-

(854,799)

-

(854,799)

Net loss for the period

-

-

-

-

-

(1,837,200)

-

-

(1,837,200)

(2,006)

(1,839,206)

Other comprehensive loss for the period

-

-

-

-

-

-

(88,038)

(339,431)

(427,469)

(452)

(427,921)

Balance at September 30, 2021

456,722

8,129,637

72,339,947

883,233

6,815,246

(3,491,602)

1,394,942

355,688

86,883,813

69,275

86,953,088

The accompanying notes and schedules are an integral part of the Consolidated Financial Statements.


9

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

For the nine-month period ended on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

09/30/2022

09/30/2021

CASH FLOW FROM OPERATING ACTIVITIES

Net (loss) for the period before Income Tax

(2,355,906)

(1,901,099)

Adjustments to obtain flows from operating activities:

5,637,837

5,202,093

Depreciation and impairment of non-financial assets

8,691,111

11,919,906

Loan loss provisions

Other adjustments

(1,906,400)

(1,063,479)

-Exchange rate difference on gold and foreign currency

(152,006,000)

(128,627,106)

- Interests from loans and other financing

95,891,907

75,263,056

- Interests from deposits and financing received

(12,149,250)

(12,657,684)

-Net income from financial instruments at fair value through profit or loss

(448,814)

(115,309)

-Result from derecognition of financial assets measured at amortized cost

11,998,379

9,810,705

-Result from exposure to changes in the purchasing power of the currency

342,238

361,266

-Interest on liabilities for financial leases

(2,408,357)

(2,127,715)

-Allowances reversed

(Increases) / decreases from operating assets:

Debt securities at fair value through profit or loss

21,048,188

12,478,282

Derivatives

126,149

103,137

Reverse Repo transactions

61,590,640

(39,600,257)

Loans and other financing

To the non-financial public sector

(307,985)

(24,965)

To the other financial entities

(395,272)

(71,150)

To the non-financial sector and foreign residents (*)

195,185,961

129,980,379

Other debt securities

(79,713,122)

(47,369,213)

Financial assets pledged as collateral

(533,807)

(1,228,757)

Investments in equity instruments

-

-

Other assets (*)

11,154,014

(5,083,758)

Increases / (decreases) from operating liabilities:

Deposits

Non-financial public sector

4,374,026

12,993,954

Financial sector

(2,701)

(70,521)

Private non-financial sector and foreign residents

(151,301,732)

(23,936,622)

Liabilities at fair value through profit or loss

(3,014,247)

(2,343,266)

Repo transaction s

-

(5,001)

Derivatives

2,320,845

-

Other liabilities (*)

(21,390,652)

932,186

Income Tax paid

(732,625)

(2,921,284)

Net cash (used in) / provided by operating activities (A)

(10,305,575)

(10,102,222)

CASH FLOW FROM INVESTING ACTIVITIES

Payments:

Purchase of PPE, intangible assets and other assets

(4,959,336)

(4,202,863)

Purchase of liability or equity instruments issued by other entities

-

(26,918)

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 nine-month period ended on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

09/30/2022

09/30/2021

CASH FLOW FROM INVESTING ACTIVITIES

Collections:

Disposals related to PPE, intangible assets and other assets

130,828

695,820

Purchase of liability or equity instruments issued by other entities

53,894

-

Net cash used in investing activities (B)

(4,774,614)

(3,533,961)

CASH FLOWS FROM FINANCING ACTIVITIES

Payments:

Interest on finance lease liabilities

(1,885,070)

(3,644,752)

Unsubordinated debt securities

(1,201,596)

(12,038,910)

Financing received from Argentine Financial Institutions

(126,211,724)

(54,623,620)

Subordinated debt securities

-

(514,882)

Dividend paid

(419,342)

(854,799)

Repurchase of own shares

(419,801)

-

Collections:

UnSubordinated debt securities

-

3,788,301

Financing received from Argentine Financial Institutions

120,493,581

54,270,593

Net cash used in financing activities (C)

(9,643,952)

(13,618,069)

Effects of exchange rate changes and exposure to changes in the purchasing power of money on cash and cash equivalents (D)

8,031,267

21,113,258

Net increase / (decrease) in cash and cash equivalents (A+B+C+D)

(16,692,874)

(6,140,994)

Cash and cash equivalents at the beginning of the period (NOTE 1.8)

74,282,129

98,932,343

Result from exposure to changes in the purchasing power of the currency of cash and equivalents

(17,375,613)

(27,986,362)

Cash and cash equivalents at the end of the period (NOTE 1.8)

40,213,642

64,804,987

(*) In the items "Loans and other financing - Non-Financial Private Sector and Residents Abroad", "Other Assets" and "Other Liabilities", 453,152 Assets taken in defense of credit and 2,122,112 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 November 9, 2022.

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 temporary exception of the application of IFRS 9 “Financial Instruments” on debt instruments of the Non-Financial Public Sector.

If IFRS 9 has been applied on debt debt instruments of the Non-Financial Public Sector, a net reduction of income tax of 165 million and 82 million would have been recorded in the Group's equity as of September 30, 2022 and December 31, 2021 , 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, 2021 (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.

As of the date of issuance of these financial statements, they are pending transcription to the Inventory and Balance Sheet Book.


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)

1.1.1Going concern

As of the date of these consolidated 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.

1.1.2Measuring unit

Figures included in these consolidated 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  September 30, 2022.    

1.1.3Comparative information

The balances for the year ended December 31, 2021 and for the nine-month period ended September 30, 2021 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. Certain figures of these financial statements have been reclassified in order to present the information in accordance with the regulations in force as of September 30, 2022.

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  September 30, 2021 and December 31, 2021  in order to record them in homogeneous currency.

Due to the application of point 5.5 of IFRS 9 in IUDÚ Compañía Financiera, explained in section note 1.1.4 referring to "Impairment of financial assets" for the purposes of presenting comparative information with that of the current period, it has been proceeded to :

(i) retroactively restate the figures of the Statement of Financial Position as of December 31, 2021 in order to present them as if the new accounting policies had been applied as of January 1, 2021, and

(ii) retroactively restate the figures of the Income Statement, Statement of Other Comprehensive Income and Statement of Changes in Equity as of September 30, 2021 in order to present them as if the new accounting policies had been applied as of January 1, 2021.

(iii) incorporate the effect of the application of point 5.5. of IFRS 9 for each period presented. See note 1.1.4

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


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)

(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 September 30, 2022:

(a)Amendments to IFRS 3 “Business Combinations”, IAS 16 “Property, plant and equipment” and IAS 37 “Provisions, contingent liabilities and contingent assets”  

IAS 16, 'Property, plant and equipment (PPE) - income before intended use'

IAS 16 requires that the cost of an asset includes any costs attributable to bringing the asset to the location and condition necessary for it to be able to operate in the manner intended by management. One of those costs is testing whether the asset is working properly.

The amendment to IAS 16 prohibits an entity from deducting from the cost of an item of PP&E any proceeds received from selling items produced while the entity is preparing the asset for its intended use (for example, the proceeds from selling samples produced when testing a machine to see if it is working properly). The proceeds from selling such samples, together with the costs of producing them, are now recognized in profit or loss. An entity will use IAS 2, “Inventory”, to measure the cost of those items. Cost will not include depreciation of the asset being tested because it is not ready for its intended use.

The amendment also clarifies that an entity is “testing whether the asset is working properly” when it assesses the technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment. Therefore, an asset may be able to operate as intended by management and subject to depreciation before it has achieved the level of operating performance expected by management.

The amendment requires entities to separately disclose the amounts of proceeds and costs relating to items produced that are not an output of the entity’s regular activities. An entity shall also disclose the line item in the statement of comprehensive income where the proceeds are included.

IAS 37 “Provisions, contingent liabilities and contingent assets - Onerous contracts – Cost of fulfilling a contract”

lAS 37 defines an onerous contract as one in which the unavoidable costs of meeting the entity’s obligations exceed the economic benefits to be received under that contract. Unavoidable costs are the lower of the net cost of exiting the contract and the costs to fulfill the contract. The amendment clarifies the meaning of “costs to fulfill a contract”.

The amendment explains that the direct cost of fulfilling a contract comprises:

*the incremental costs of fulfilling that contract (for example, direct labor and materials); and

*an allocation of other costs that relate directly to fulfilling contracts (for example, an allocation of the depreciation charge for an item of PP&E used to fulfill the contract).

The amendment also clarifies that, before a separate provision for an onerous contract is established, an entity recognizes any impairment loss that has occurred on assets used in fulfilling the contract, rather than on assets dedicated to that contract.

The amendment could result in the recognition of more onerous contract provisions, because previously some entities only included incremental costs in the costs to fulfill a contract.

IFRS 3 “Business Combinations - Reference to the Conceptual Framework”

The International Accounting Standards Board (“IASB”) has updated IFRS 3, “Business combinations”, to refer to the 2018 Conceptual Framework for Financial Reporting, in order to determine what constitutes an asset or a liability in a business combination. Prior to the amendment, IFRS 3 referred to the 2001 Conceptual Framework for Financial Reporting.

In addition, the IASB added a new exception in IFRS 3 for liabilities and contingent liabilities. The exception specifies that, for some types of liabilities and contingent liabilities, an entity applying IFRS 3 shall instead refer to IAS 37, “Provisions, Contingent Liabilities and Contingent Assets”, or IFRIC 21, “Levies”, rather than the 2018 Conceptual Framework. Without this new exception, an entity would have recognized some liabilities in a business combination that it would not recognize under IAS 37. Therefore, immediately after the acquisition, the entity would have had to derecognize such liabilities and recognize a gain that did not depict an economic Gain.


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)

The IASB has also clarified that the acquirer shall not recognize contingent assets, as defined in IAS 37, at the acquisition date.

The adoption of this new standard had no impact on the Group's financial statements.

(b)Annual Improvements 2018-2020

Fees included in the 10% test for derecognition of financial liabilities

The amendment to IFRS 9 establishes which fees should be included in the 10% test for derecognition of financial liabilities. Costs or fees could be paid to either third parties or the lender. Under the amendment, costs or fees paid to third parties will not be included in the 10% test.

Illustrative examples accompanying IFRS 16 Leases

Illustrative Example 13 accompanying IFRS 16 is amended to remove the illustration of payments from lessor relating to lease improvements. The reason for the amendment is to remove any potential confusion about the treatment of lease incentives.

Subsidiaries as First-time adopters of IFRS

IFRS 1 grants an exemption to subsidiaries that become a first-time adopter of IFRS after their parent. The subsidiary may measure the carrying amounts of its assets and liabilities that would have been included in the consolidated financial statements of its parent, based on the transition date to IFRS of the parent if no adjustments were made for reasons of consolidation and for the purposes of the business combination by which the parent acquired the subsidiary.

IFRS 1 was amended to allow entities that have taken this IFRS 1 exemption to also measure cumulative translation differences using the amounts reported by the parent, based on the transition date to IFRS of the parent. The amendment to IFRS 1 extends the above-mentioned exemption to cumulative translation differences in order to reduce costs for first-time adopters of IFRS. The amendment will also apply to associates and joint ventures that have taken the same exemption from IFRS 1.

Taxation in fair value measurements

The requirement for entities to exclude cash flows for taxation when measuring fair value measurement under IAS 41 “Agriculture” has been removed. The purpose of this amendment is to align it with the requirement included in the standard to discount cash flows after taxes.

The adoption of this new standard had no impact on the Group's financial statements.

(c) Impairment of financial assets

IUDÚ Compañía Financiera has requested authorization from the BCRA to advance the application of point 5.5 of IFRS 9 to the current period. Consequently, the adjustments to equity were made on January 1, 2021:

Provisions recorded in the Financial Statements as of 01/01/2021

(2,109,382)

Provisions in accordance with point 5.5 of IFRS 9 as of 01/01/2021

(3,560,767)

Variation ECL

(1,451,385)

Deferred tax

362,833

Adjustment to previous years

(1,088,552)

IUDÚ Compañía Financiera has opted for the application of the impairment of financial assets from the financial statements corresponding to the period ended September 30, 2022 as indicated in note 1.1.3.

IUDÚ Compañía Financiera, evaluates with a prospective approach the expected credit losses (“PCE”) associated with financial assets measured at amortized cost or at fair value with changes in other comprehensive income, the exposure derived from loan commitments and financial guarantee contracts with the scope established by Communication "A" 6847 of the BCRA.


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)

The most significant assumptions used to estimate PCE as of December 31, 2021 are set out below:

Parameter

Segment

Macroeconomic Variables

Base Scenario

Optimistic scenario

Pessimistic scenario

Default probability

Credit Cards Personal Loans

Salary YoY

50.70%

55.70%

45.60%

EMAE

138

140

136

Pledged Loans

Salary YoY

50.70%

55.70%

45.60%

Inflation Rate

46.80%

41.30%

52.40%

Loss Given Default

Credit Cards Personal Loans

Salario YoY

50.70%

55.70%

45.60%

Pledged Loans

Private Sector Loan YoY

64.10%

70.50%

57.70%

Salary YoY

50.70%

55.70%

45.60%

The weights assigned to each scenario as of September 30, 2022 are set forth below:

Base Scenario

60%

Optimistic scenario

10%

Pessimistic scenario

30%

The following sets forth changes that have not become in force as of September 30, 2022:

(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 Group is evaluating the impact of the application of this new standard.

(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 is evaluating the impact of the application of this new 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


16

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

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 is evaluating the impact of the application of this new standard.

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:

(a)a probability amount, weighed and unbiased, that is defined through the evaluation of a range of possible result;
(b)the temporal value of money; and
(c)the reasonable and sustainable information available at no cost nor excessive effort on the submission date on past events, current conditions and future economic condition forecasts.

IFRS 9 sets forth the following “Three stages” model for the impairment based on changes in the credit quality from initial recognition:

If, on the submission date, the credit risk of a financial instrument has not increased significantly since its initial recognition, the Group will classify such instrument in “Stage 1”.
If a significant increase in credit risk (“SICR”) is detected, from its initial recognition, the instrument is moved to “Stage 2”, but such instrument is not deemed to contain a credit impairment.
If the financial instrument contains credit impairment, it is moved to “Stage 3”.
For financial instruments in “Stage 1”, the Bank measures ECL at an amount equivalent to the amount of expected credit loss during the useful life term of the asset that result from potential default events within the next 12 months. As for Financial Instruments in “Stage 2” and “Stage 3”, the Group measures ECL during the useful life term of the asset (hereinafter “lifetime”). Note 1.3.1 includes a description of how the Group defines when a significant increase in credit risk has occurred.
A generalized concept in the measurement of ECL pursuant to IFRS 9 shall be considered prospective information.
Financial assets with impairment on credit value, either purchased or produced, account for those financial assets which have been impaired since initial recognition. ECL of this type of financial instruments is always measured during the asset lifetime (“Stage 3”).

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


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)

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, 2021.

1.2.1 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 

September 30, 2022

Total

ECL Staging

Stage 1
12-month ECL

Stage 2
Lifetime ECL

Stage 3
Lifetime ECL

Overdrafts

35,724,154

253,254

167,455

36,144,863

Documents

30,559,970

189,170

133,862

30,883,002

Mortgage loans

21,838,182

1,490,157

674,647

24,002,986

Pledge loans

6,161,493

858,190

401,758

7,421,441

Personal loans

28,279,385

5,449,127

2,219,268

35,947,780

Individuals and Business

24,009,903

5,088,888

1,171,424

30,270,215

Consumer finance

4,269,482

360,239

1,047,844

5,677,565

Credit cards

90,268,419

7,986,935

2,105,650

100,361,004

Individuals and Business

76,461,619

7,525,004

968,172

84,954,795

Consumer finance

13,806,800

461,931

1,137,478

15,406,209

Financial Lease

9,057,768

379,431

40,317

9,477,516

Others

48,218,296

2,185,815

2,088,819

52,492,930

Total

270,107,667

18,792,079

7,831,776

296,731,522

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
12-month ECL

Stage 2
Lifetime ECL

Stage 3
Lifetime ECL

Allowances for loan losses as of 12/31/2021

3,253,298

4,242,840

9,184,734

16,680,872

Transfers:

From Stage 1 to Etapa 2

(215,249)

1,375,569

-

1,160,320

From Stage 1 to Etapa 3

(228,709)

-

3,128,420

2,899,711

From Stage 2 to Etapa 3

-

(655,565)

1,648,670

993,105

From Stage 2 to Etapa 1

64,763

(389,510)

-

(324,747)

From Stage 3 to Etapa 2

-

14,849

(127,959)

(113,110)

From Stage 3 to Etapa 1

(39,633)

-

(213,393)

(253,026)

Net changes

777,305

(789,275)

(2,561,158)

(2,573,128)

Withdrawn financial assets

(1,064,940)

(1,014,257)

(5,543,100)

(7,622,297)

Exchange Differences and Others

55,061

57,940

354,848

467,849

Allowances for loan losses as of 09/30/2022

2,601,896

2,842,591

5,871,062

11,315,549

* IUDÚ Compañía Financiera S.A.´s balances of provisions are held under minimum provisions Standards pursuant to Communication “A” 6990 issued by the Argentine Central Bank.

 

Assets Before Allowances

Total

Stage 1
12-month ECL

Stage 2
Lifetime ECL

Stage 3
Lifetime ECL

Assets Before Allowances as of 12/31/2021

236,401,802

20,427,688

13,546,526

270,376,016

Transfers:

 

 

 

 

From Stage 1 to Etapa 2

(4,836,451)

4,836,451

-

-

From Stage 1 to Etapa 3

(1,667,174)

-

1,667,174

-

From Stage 2 to Etapa 3

-

(1,095,733)

1,095,733

-

From Stage 2 to Etapa 1

3,064,089

(3,064,089)

-

-

From Stage 3 to Etapa 2

-

109,742

(109,742)

-

From Stage 3 to Etapa 1

279,530

-

(279,530)

-

Net changes

(43,094,357)

(4,531,084)

(3,049,493)

(50,674,934)

Withdrawn financial assets

(1,064,940)

(1,014,257)

(5,543,100)

(7,622,297)

Exchange Differences and Others

3,105,887

169,156

504,208

3,779,251

Assets Before Allowances as of 09/30/2022

192,188,386

15,837,874

7,831,776

215,858,036

 

Assets Before Allowances

Total as of September 30,

2022

Stage 1

Stage 2

Stage 3

Promissory notes

35,724,154

253,254

167,455

36,144,863

Unsecured corporate loans

25,382,746

154,621

308,234

25,845,601

Overdrafts

9,789,734

111,956

133,862

10,035,552

Mortgage loans

21,838,182

1,490,157

674,647

24,002,986

Automobile and other secured loans

6,161,493

858,190

401,758

7,421,441

Personal loans

28,279,385

5,449,127

2,219,268

35,947,780

Credit card loans

37,778,714

5,118,606

2,105,650

45,002,970

Foreign Trade Loans

11,007,709

1,642,263

1,629,624

14,279,596

Other financings

6,748,949

308,054

95,496

7,152,499

Other receivables from financial transactions

419,552

72,215

55,465

547,232

Receivables from financial leases

9,057,768

379,431

40,317

9,477,516

Subtotal

192,188,386

15,837,874

7,831,776

215,858,036

Allowances for loan losses

(2,601,896)

(2,842,591)

(5,871,062)

(11,315,549)

Total

189,586,490

12,995,283

1,960,714

204,542,487

1.3.Consolidated Structured Entities


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)

The Group has securitized certain financial instruments, mainly loans, originated by personal and pledge loans through the transfers of said instruments to financial trusts that issue multiple classes of debt securities and participation certificates.

Note 11.4 details the financial trusts in which the entity is trustor as of  September 30, 2022.

The Group controls a structured entity when it is exposed to, or holds the right to, variable returns and has the capacity to allocate returns through its power to run the activities of the entity, Structured entities are consolidated as from the date on which the control is transferred to the Group. The consolidation of such entities is ceased on the date on which such control is terminated.

As for financial trusts, the Group has evaluated the following:

The purpose and design of the trust
Identification of relevant activities
Decision-making process on these activities
If the rights that the Group owns allow it to direct the relevant activities of the trust
If the Group is exposed, or is entitled to the variable results from its participation in said trust
If the Group has the capacity to affect said results through its power over the trust

In accordance with the aforementioned, the Group has decided that it holds control on such financial trusts and, therefore, such structured entities have been consolidated.

The following chart details the assets and liabilities of Structured Entities that have been consolidated by the Group as of  September 30, 2022:

09/30/2022

Assets

Loans

317,061

Financial assets

34,530

Other assets

24,959

Total Assets

376,550

Liabilities

Financial liabilities

(87,128)

Other liabilities

(24,933)

Total Liabilities

(112,061)

1.4. 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:


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)

Company

Condition

Legal Adress

Principal Activity

Percentage of Participation

09/30/2022

12/31/2021

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%

87.50%

99.99%

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%

Supervielle Productores Asesores de Seguros S.A

Controlled

San Martin 344, C.A.B.A., Argentina

Insurance Broker

95.24%

100.00%

95.24%

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 S,A votes amounts to 99.87% as of 09/30/22 and 12/31/21

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:


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)

(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.

(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.

The Bank´s clients receive the following services:

•     Personal and Business Banking Segment:


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)

-Small companies, individuals and companies that record anual sales of up to 100,000

-“Small and Medium Size Companies”, companies that record anual sales of over 100,000 up to 700,000

•    Corporate Baking Segment:

-Megras that record anual sales over 700,000 up to 2,500,000

-Big Companies, Grandes companies that record anual sales of over 2,500,000

The Group considers the business for the type of products and services offered, identifying the following operating segments:

a-Personal and Business Banking– Includes a wide range of financial products and services targeted to small companies, included in Entrepreneurs & SMSs, and high income people identified with so-called  Identité proposal. Likewise, the Bank offers services and products targeted to retirees and pensioners.
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. Consumer – Includes loans and other credit products targeted to middle and lower-middle income sectors and non-financial products and services.
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.
f-Asset Management and Other Services– Includes MFs administered by the Group.  Includes also assets, liabilities and results of Portal Integral de Inversiones S.A.U, InvertirOnline S.A.U., IOL Holding S.A, Supervielle Asset Management S.A., Dólar IOL S.A.U. and Bolsillo Digital S.A.U.

Operating results of the different operating segments of the Group are reviewed individually with the purpose of taking decisions over the allocation of resources and the performance appraisal of each segment. The performance of such segments will be evaluated based on operating earnings and losses and is measured consistently with operating earnings and losses of the consolidated earnings and losses statement.

When a transaction is carried out between operating segments, they are taken in an independent and equitative manner, as in cases of transactions with third parties. Later, income, expenses and results from transfers between operating segments are removed from the consolidation.

The Group does not present information by geographical segments because there are no operating segments in economic environments with risks and returns that are significantly different,

The following chart includes information by segment as of  September 30, 2022 and 2021, and December 31, 2021 respectively:

Result by segments

Personal and Business Banking

Corporate Banking

Bank Treasury

Consumer

Finance

Insurance

Asset Management and Other Services

Adjustments

Total as of 09.30.2022

Interest income

41,789,767

21,661,831

82,704,957

8,234,657

2,472

5,851

(2,393,535)

152,006,000

Interest expenses

(28,872,667)

(5,786,244)

(58,638,622)

(5,669,932)

-

-

3,075,558

(95,891,907)

Distribution of results by Treasury

9,401,642

(7,764,006)

(1,637,636)

-

-

-

-

-

Net interest income

22,318,742

8,111,581

22,428,699

2,564,725

2,472

5,851

682,023

56,114,093

Services Fee Income

12,913,217

1,420,679

118,304

2,951,465

-

2,689,136

(391,451)

19,701,350

Services Fee Expenses

(4,968,696)

(374,400)

(257,571)

(1,776,075)

-

(131,223)

458,954

(7,049,011)

Income from insurance activities

-

-

-

-

2,624,346

-

322,031

2,946,377

Net Service Fee Income

7,944,521

1,046,279

(139,267)

1,175,390

2,624,346

2,557,913

389,534

15,598,716

Subtotal

30,263,263

9,157,860

22,289,432

3,740,115

2,626,818

2,563,764

1,071,557

71,712,809

Net income from financial instruments at fair value through profit or loss

-

-

9,127,889

839,807

873,634

859,164

448,756

12,149,250

Income from withdrawal of assets rated at amortized cost

-

-

451,196

-

-

-

(2,382)

448,814

Exchange rate difference on gold and foreign currency

448,629

94,241

1,074,647

(21,526)

(72)

57,169

253,312

1,906,400

NIFFI And Exchange Rate Differences

448,629

94,241

10,653,732

818,281

873,562

916,333

699,686

14,504,464


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)

Result by segments

Personal and Business Banking

Corporate Banking

Bank Treasury

Consumer

Finance

Insurance

Asset Management and Other Services

Adjustments

Total as of 09.30.2022

Result from exposure to changes in the purchasing power of the currency

4,641,423

(3,017,814)

(10,529,241)

552,044

(1,214,444)

(657,319)

(1,773,028)

(11,998,379)

Other operating income

2,582,799

2,423,756

182,660

1,216,251

16,609

131,342

(571,407)

5,982,010

Loan loss provisions

(5,560,629)

(457,609)

68,372

(2,741,245)

-

-

-

(8,691,111)

Net operating income

32,375,485

8,200,434

22,664,955

3,585,446

2,302,545

2,954,120

(573,192)

71,509,793

Personnel expenses

(23,420,227)

(3,487,004)

(1,813,610)

(3,639,505)

(729,210)

(1,517,967)

(31,061)

(34,638,584)

Administration expenses

(12,807,186)

(1,125,313)

(859,822)

(2,548,735)

(568,960)

(605,269)

304,132

(18,211,153)

Depreciations and impairment of non-financial assets

(4,322,675)

(646,197)

(287,675)

(168,742)

(67,737)

(47,473)

(97,338)

(5,637,837)

Other operating expenses

(6,861,970)

(2,324,222)

(4,615,129)

(1,262,873)

(354)

(267,685)

(45,892)

(15,378,125)

Operating income

(15,036,573)

617,698

15,088,719

(4,034,409)

936,284

515,726

(443,351)

(2,355,906)

Result from associates and joint ventures

-

-

-

(271,883)

-

-

271,883

-

Result before taxes

(15,036,573)

617,698

15,088,719

(4,306,292)

936,284

515,726

(171,468)

(2,355,906)

Income tax

5,386,827

(53,466)

(4,977,947)

(301,187)

(418,199)

(206,042)

(143,121)

(713,135)

Net (loss) / income

(9,649,746)

564,232

10,110,772

(4,607,479)

518,085

309,684

(314,589)

(3,069,041)

Net (loss) / income for the period attributable to owners of the parent company

(9,649,746)

564,232

10,110,772

(4,607,479)

518,085

309,684

(311,354)

(3,065,806)

Net (loss) / income for the period attributable to non-controlling interest

-

-

-

-

-

-

(3,235)

(3,235)

Other comprehensive (loss) / income

(9,645)

(3,401)

(690,949)

-

-

33,788

(39,298)

(709,505)

Other comprehensive (loss) / income attributable to owners of the parent company

(9,645)

(3,401)

(690,949)

-

-

33,788

(38,577)

(708,784)

Other comprehensive (loss) / income attributable to non-controlling interest

-

-

-

-

-

-

(721)

(721)

Comprehensive (loss) / income for the year

(9,659,391)

560,831

9,419,823

(4,607,479)

518,085

343,472

(353,887)

(3,778,546)

Comprehensive (loss) / income attributable to owners of the parent company

(9,659,391)

560,831

9,419,823

(4,607,479)

518,085

343,472

(349,931)

(3,774,590)

Comprehensive (loss) / income attributable to non-controlling interests

-

-

-

-

-

-

(3,956)

(3,956)

Assets by segments

Personal and Business Banking

Corporate Banking

Bank Treasury

Consumer

Finance

Insurance

Asset Management and Other Services

Adjustments

Total as of 09.30.2022

Cash and due from banks

12,722,407

481,308

20,223,700

1,000,181

2,433

278,152

11,130

34,719,311

Debt securities at fair value through profit or loss

-

2,706,222

11,762,070

955,213

-

25,272

-

15,448,777

Loans and other financing

116,658,522

68,176,857

16,729,516

12,244,090

1,876,962

136,674

(11,280,134)

204,542,487

Other Assets

13,982,508

4,507,126

261,576,481

8,321,947

2,964,495

1,698,893

15,050,465

308,101,915

Total Assets

143,363,437

75,871,513

310,291,767

22,521,431

4,843,890

2,138,991

3,781,461

562,812,490

Liabilities by segments

Deposits

194,921,518

45,119,813

184,796,274

3,541,667

-

56,569

(421,862)

428,013,979

Financing received from the Argentine Central Bank and others financial institutions

31,137

112

4,634,435

11,039,981

-

94,747

(11,134,729)

4,665,683

Unsubordinated debt securities

12,036

4,244

541,241

-

-

-

-

557,521

Other liabilities

16,709,230

4,093,387

7,183,143

2,944,525

2,374,024

725,618

14,468,984

48,498,911

Total Liabilities

211,673,921

49,217,556

197,155,093

17,526,173

2,374,024

876,934

2,912,393

481,736,094

Result by segments

Personal and Business Banking

Corporate Banking

Bank Treasury

Consumer

Finance

Insurance

Asset Management and Other Services

Adjustments

Total as of 09.30.2021

Interest income

38,073,112

23,657,694

58,723,274

10,120,453

1,323

9,505

(1,958,255)

128,627,106

Interest expenses

(20,087,800)

(3,682,785)

(48,838,624)

(4,574,265)

-

-

1,920,418

(75,263,056)

Distribution of results by Treasury

6,248,151

(11,138,449)

4,890,298

-

-

-

-

-

Net interest income

24,233,463

8,836,460

14,774,948

5,546,188

1,323

9,505

(37,837)

53,364,050

Services Fee Income

13,129,529

1,233,551

74,102

3,368,709

-

3,335,194

(491,858)

20,649,227

Services Fee Expenses

(4,307,481)

(416,218)

(196,450)

(1,349,387)

-

(169,928)

165,015

(6,274,449)

Income from insurance activities

-

-

-

-

2,401,073

-

366,858

2,767,931

Net Service Fee Income

8,822,048

817,333

(122,348)

2,019,322

2,401,073

3,165,266

40,015

17,142,709

Subtotal

33,055,511

9,653,793

14,652,600

7,565,510

2,402,396

3,174,771

2,178

70,506,759


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)

Result by segments

Personal and Business Banking

Corporate Banking

Bank Treasury

Consumer

Finance

Insurance

Asset Management and Other Services

Adjustments

Total as of 09.30.2021

Net income from financial instruments at fair value through profit or loss

-

-

10,853,929

456,239

709,651

483,759

154,106

12,657,684

Income from withdrawal of assets rated at amortized cost

-

-

154,556

-

-

-

(39,247)

115,309

Exchange rate difference on gold and foreign currency

362,736

105,952

327,876

23,463

842

121,056

121,554

1,063,479

NIFFI And Exchange Rate Differences

362,736

105,952

11,336,361

479,702

710,493

604,815

236,413

13,836,472

Result from exposure to changes in the purchasing power of the currency

2,093,400

(3,073,985)

(5,864,767)

(765,398)

(888,849)

(572,767)

(738,339)

(9,810,705)

Other operating income

2,776,720

2,719,707

(1,030,124)

982,525

19,493

98,496

(167,178)

5,399,639

Loan loss provisions

(5,628,137)

(854,646)

(347,253)

(5,089,870)

-

-

-

(11,919,906)

Net operating income

32,660,230

8,550,821

18,746,817

3,172,469

2,243,533

3,305,315

(666,926)

68,012,259

Personnel expenses

(22,831,471)

(2,395,273)

(1,374,634)

(3,300,184)

(689,648)

(1,280,798)

(67,388)

(31,939,396)

Administration expenses

(13,655,730)

(1,009,161)

(1,019,918)

(2,113,090)

(623,040)

(803,430)

196,429

(19,027,940)

Depreciations and impairment of non-financial assets

(4,063,798)

(381,718)

(260,397)

(261,133)

(58,943)

(59,289)

(116,815)

(5,202,093)

Other operating expenses

(5,981,301)

(2,507,214)

(3,470,076)

(1,452,874)

(17,199)

(257,792)

(57,473)

(13,743,929)

Operating income

(13,872,070)

2,257,455

12,621,792

(3,954,812)

854,703

904,006

(712,173)

(1,901,099)

Result from associates and joint ventures

-

-

-

6,699

-

-

(6,699)

-

Result before taxes from continuing operations

(13,872,070)

2,257,455

12,621,792

(3,948,113)

854,703

904,006

(718,872)

(1,901,099)

Income tax

4,809,199

(343,661)

(4,262,895)

247,360

(196,744)

(307,161)

115,795

61,893

Net (loss) / income

(9,062,871)

1,913,794

8,358,897

(3,700,753)

657,959

596,845

(603,077)

(1,839,206)

Net (loss) / income for the period attributable to owners of the parent company

(9,062,871)

1,913,794

8,358,897

(3,700,753)

657,959

596,845

(601,071)

(1,837,200)

Net (loss) / income for the period attributable to non-controlling interest

-

-

-

-

-

-

(2,006)

(2,006)

Other comprehensive (loss) / income

-

-

(441,372)

-

(1,944)

-

15,396

(427,920)

Other comprehensive (loss) / income attributable to owners of the parent company

-

-

(441,372)

-

(1,944)

-

15,848

(427,468)

Other comprehensive (loss) / income attributable to non-controlling interest

-

-

-

-

-

-

(452)

(452)

Comprehensive (loss) / income for the year

(9,062,871)

1,913,794

7,917,525

(3,700,753)

656,015

596,845

(587,681)

(2,267,126)

Comprehensive (loss) / income attributable to owners of the parent company

(9,062,871)

1,913,794

7,917,525

(3,700,753)

656,015

596,845

(585,223)

(2,264,668)

Comprehensive (loss) / income attributable to non-controlling interests

-

-

-

-

-

-

(2,458)

(2,458)

Assets by segments

Personal and Business Banking

Corporate Banking

Bank Treasury

Consumer

Finance

Insurance

Asset Management and Other Services

Adjustments

Total as of 12.31.2021

Cash and due from banks

20,113,397

916,978

31,094,094

1,215,837

7,008

435,156

314,511

54,096,981

Debt securities at fair value through profit or loss

-

-

35,969,183

1,351,722

-

3,797

-

37,324,702

Loans and other financing

126,741,086

103,233,773

12,703,748

18,603,828

1,435,448

168,877

(9,191,586)

253,695,174

Other Assets

18,104,409

8,467,915

232,600,710

8,485,876

3,869,383

2,423,707

29,319,424

303,271,424

Total Assets

164,958,892

112,618,666

312,367,735

29,657,263

5,311,839

3,031,537

20,442,349

648,388,281

Liabilities by segments

Personal and Business Banking

Corporate Banking

Bank Treasury

Consumer

Finance

Insurance

Asset Management and Other Services

Adjustments

Total as of 12.31.2021

Deposits

230,308,877

51,604,690

186,860,902

11,165,283

-

125,841

(1,013,114)

479,052,479

Financing received from the Argentine Central Bank and others financial institutions

25,487

-

9,734,267

8,811,098

-

-

(8,187,026)

10,383,826

Unsubordinated debt securities

22,410

13,885

1,722,818

-

-

-

4

1,759,117

Other liabilities

23,614,590

7,152,856

17,668,507

6,085,123

2,644,540

1,187,731

13,145,769

71,499,116

Total Liabilities

253,971,364

58,771,431

215,986,494

26,061,504

2,644,540

1,313,572

3,945,633

562,694,538

4.FAIR VALUES


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)

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, as of  September 30, 2022 and December 31, 2021:

Instrument portfolio as of 09/30/2022

FV level 1

FV level 2

FV level 3

Assets

- Debt securities at fair value through profit or loss

15,444,268

4,509

-

- Derivatives

242,298

-

-

- Other financial assets

6,728,721

-

-

- Other debt securities

10,122,231

162,568,167

-

- Financial assets pledged as collateral

14,238,295

-

-

- Investments in Equity Instruments

186,387

-

198,618

Total Assets

46,962,200

162,572,676

198,618

Liabilities

- Liabilities at fair value through profit or loss

395,601

-

-

- Other financial liabilities

18,236,248

-

-

Total Liabilities

18,631,849

-

-

Instrument portfolio as of 12/31/2021

FV level 1

FV level 2

FV level 3

Assets

- Debt securities at fair value through profit or loss

36,807,353

517,349

-

- Derivatives

368,447

-

-

- Other financial assets

20,557,588

-

-

- Other debt securities

22,262,313

95,141,124

-

- Financial assets pledged as collateral

13,427,284

-

-

- Investments in Equity Instruments

260,757

-

178,142

Total Assets

93,683,742

95,658,473

178,142

Liabilities

- Liabilities at fair value through profit or loss

3,409,848

-

-

- Other financial liabilities

38,214,896

-

-

Total Liabilities

41,624,744

-

-

Below is shown the reconcilation of the financial instruments classiffied as Fair Value Level 3:

FV level 3

12/31/2021

Transfers

Additions

Disposals

P/L

09/30/2022

Assets

- Debt securities at fair value through profit or loss

178,142

-

74,446

-

(53,970)

198,618

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:

-Market or quoted prices for similar instruments.
-The estimated present value of instruments.


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)

The Group uses valuation techniques using spot rate curves that estimate yield curves based on market prices market. They are detailed below:

-Interpolation model: It consists of the determination of the value of financial instruments that do not have a market price at the closing date, based on quoted prices for similar assets (both in terms of issue, currency, and duration) in the active markets ( MAE, Bolsar or secondary) through the linear interpolation of them. This technique has been used by the Entity to determine the fair value of the instruments issued by the BCRA and Treasury Bills without quotation at the end of this period.

-Performance Curve Model under Nelson Siegel: This model proposes a continuous function to model the trajectory of the instant forward interest rate considering as a domain the term comprised until the next interest and / or capital payment. It consists in the determination of the instrument’s price estimating volatility through market curves. The Entity has used this model to estimate prices in debt securities or financial instruments with variable interest rate.

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 September 30, 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:

-Assets whose fair value is similar to book value: For financial assets and liabilities that are liquid or have short-term maturities (less than three months), the book value is considered to be similar to fair value.
-Fixed rate financial instruments: The fair value of financial assets was determined by discounting future cash flows at the current market rates offered, for each year, for financial instruments with similar characteristics. The estimated fair value of deposits with a fixed interest rate was determined by discounting future cash flows through the use of market interest rates for deposits with maturities similar to those of the Group's portfolio.

For listed assets and the quoted debt, fair value was determined based on market prices.

-Other financial instruments: In the case of financial assets and liabilities that are liquid or have a short term to maturity, it is estimated that their fair value is similar to their book value. This assumption also applies to savings deposits, current accounts and others.

The following chart includes a comparison between the fair value and the accounting value of financial instruments not recorded at fair value as of  September 30, 2022 and December 31, 2021  :

Other Financial Instruments as of 09/30/2022

Accounting value

Fair value

FV Level 1

FV Level 2

FV Level 3

Financial Assets

 

 

 

 

 

-Cash and due from Banks

34,719,311

34,719,311

34,719,311

-

-

-Other financial assets

1,481,028

1,481,028

1,481,028

-

-Loans and other financing

204,542,487

203,394,347

-

-

203,394,347

- Repo transactions

9,571,157

9,571,157

9,571,157

-

-

- Other Debt Securities

38,225,420

38,225,420

38,225,420

-

-

-Financial assets in as guarantee

478,080

478,080

478,080

-

-

289,017,483

287,869,343

84,474,996

-

203,394,347

Financial Liabilities

-Deposits

428,013,979

434,003,422

-

-

434,003,422

- Other financial liabilities

50,783

50,783

50,783

-

-

- Repo transactions

2,320,845

2,320,845

2,320,845

-

-

-Financing received from the BCRA and other financial institutions

4,665,683

5,350,304

-

-

5,350,304

- Unsubordinated debt securities

557,521

557,521

557,521

-

-


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)

Other Financial Instruments as of 09/30/2022

Accounting value

Fair value

FV Level 1

FV Level 2

FV Level 3

435,608,811

442,282,875

2,929,149

-

439,353,726

Other Financial Instruments as of 12/31/2021

Accounting value

Fair value

FV Level 1

FV Level 2

FV Level 3

Financial Assets

 

 

 

 

 

-Cash and due from Banks

54,096,981

54,096,980

54,096,980

-

-

-Other financial assets

2,514,671

2,514,670

2,514,670

-

-

-Loans and other financing

253,695,174

284,412,163

-

-

284,412,163

- Repo transactions

71,161,797

71,161,797

71,161,797

-

-

- Other Debt Securities

13,799,259

13,799,259

13,799,259

-

-

-Financial assets pledged as collateral

755,284

755,284

755,284

-

-

396,023,166

426,740,153

142,327,990

-

284,412,163

Financial Liabilities

-Deposits

479,052,479

481,350,643

-

-

481,350,643

-Other financial liabilities

1,277,786

1,277,786

1,277,786

-

-

-Finances received from the BCRA and other financial institutions

10,383,826

10,993,822

-

-

10,993,822

- Unsubordinated debt securities

1,759,117

1,759,117

1,759,117

-

-

 

492,473,208

495,381,368

3,036,903

-

492,344,465

5.CASH AND DUE FROM BANKS

The composition of the cash on each of the indicated dates is detailed below:

Item

09/30/2022

12/31/2021

09/30/2021

12/31/2020

Cash and due from banks

34,719,311

54,096,981

59,897,087

91,934,384

Debt securities at fair value through profit or loss

4,936,996

17,277,868

2,320,727

4,684,106

Money Market Funds

557,335

2,907,280

2,587,173

2,313,853

Cash and cash equivalents

40,213,642

74,282,129

64,804,987

98,932,343

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

09/30/2022

12/31/2021

09/30/2021

12/31/2020

Cash and due from Banks

As per Statement of Financial Position

34,719,311

54,096,981

59,897,087

91,934,384

As per the Statement of Cash Flows

34,719,311

54,096,981

59,897,087

91,934,384

Debt securities at fair value through profit or loss

As per Statement of Financial Position

15,448,777

37,324,702

22,243,114

24,746,301

Securities not considered as cash equivalents

(10,511,781)

(20,046,834)

(19,922,387)

(20,062,195)

As per the Statement of Cash Flows

4,936,996

17,277,868

2,320,727

4,684,106

Money Market Funds

As per Statement of Financial Position – Other financial assets

8,209,749

23,072,259

13,718,901

10,739,729

Other financial assets not considered as cash

(7,652,414)

(20,164,979)

(11,131,728)

(8,425,876)

As per the Statement of Cash Flow

557,335

2,907,280

2,587,173

2,313,853

         

Reconciliation of financing activities at September 30, 2022 is as follows:

Items

Balances at

12/31/2021

Cash Flows

Other non-cash movements

Balances at 09/30/2022

Collections

Payments

Unsubordinated debt securities

1,759,117

-

(1,201,596)

-

557,521

Financing received from the Argentine Central Bank and other financial institutions

10,383,826

120,493,581

(126,211,724)

-

4,665,683

Lease Liabilities

2,255,718

-

(1,885,070)

982,198

1,352,846

Total

14,398,661

120,493,581

(129,298,390)

982,198

6,576,050


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)

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 September 30, 2022 and December 31, 2021  amounts to the 35,12%.

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 shows the total credit assistance granted by the Group to key personnel, main shareholder trustees, their relatives up to the second degree of consanguinity or first degree of affinity (according to the BCRA definition of a related natural person) and any company related to any of the above whose consolidation is not required.

09/30/2022

12/31/2021

Aggregate total financial exposure

611,888

791,719

Number of recipient related parties

72

131

Individuals

63

115

Companies

9

17

Average total financial exposure

8,498

10,023

Single largest exposure

161,608

741,380

7.COMPOSITION OF THE MAIN ITEMS OF THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND CONSOLIDATED INCOME STATEMENT

7.1 Debt securities at fair value through profit or loss

09/30/2022

12/31/2021

Goverment securities

11,749,896

31,670,538

Corporate securities

2,755,364

5,029,770

Securities issued by the Argentine Central Bank

943,517

624,394

15,448,777

37,324,702

7.2 Derivatives

Debtor balances related to forward operations in foreign currency to be settled in pesos

133,182

356,213

Debtor balances related to forward operations in foreign currency

62,583

12,234

Sales options

46,533

-


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)

242,298

368,447

7.3 Repo Trasactions

Financial debtors from cash sales to be settled and active repos

-

13,037

Financial debtors for active repos of government securities

64,388

-

Financial debtors for active repos of I.R.M. with Argentine Central Bank

9,488,466

70,910,395

Accrued interest receivable for active repos

18,303

238,365

9,571,157

71,161,797

7.4 Other financial assets

Participation Certificates in Financial Trusts

143,146

142,855

Investments in Asset Management and Other Services

1,550,290

3,427,263

Other investments

1,273,776

861,784

Receivable from spot sales peading settlament

3,582,589

16,378,342

Several debtors

1,519,297

1,253,685

Miscellaneous debtors for credit card operations

243,120

1,071,729

Miscellaneous debtors for collections

40,665

83,087

Allowances

(143,134)

(146,486)

8,209,749

23,072,259

7.5 Loans and other financing

Nonfinancial public sector

345,747

37,762

Financial sector

522,870

127,598

Loans

553,166

170,445

Less: allowances

(30,296)

(42,847)

Nonfinancial private sector and foreign residents:

203,673,870

253,529,814

Loans

203,195,888

257,306,869

Overdrafts

9,711,848

8,358,051

Promissory notes

65,061,979

89,749,224

Mortgage loans

3,064,165

5,368,647

Automobile and other secured loans

6,834,615

5,790,746

Personal loans

33,461,693

47,777,420

Credit card loans

43,616,156

51,018,299

Foreign trade loans and U$S loans

10,567,548

18,021,684

Others

8,446,332

9,709,859

Interest and price differences accrued receivable

26,862,982

32,669,957

(documented interests)

(3,714,518)

(9,854,857)

IFRS adjustments

(716,912)

(1,302,161)

Receivables from financial leases

9,304,316

10,227,561

Others

2,458,919

2,633,377

Less: allowances

(11,285,253)

(16,637,993)

204,542,487

253,695,174

7.6 Other debt securities

Debt securities

3,736,792

366,192

Financial Trust Debt Securities

29,381

-

Goverment securities

31,141,835

36,073,567

Securities issued by the Argentine Central Bank

176,043,733

94,765,358

Others

48

80

Allowance

(35,971)

(2,501)

210,915,818

131,202,696

7.7 Financial assets pledged as collateral

Special guarantees accounts in the Argentine Central Bank

9,282,964

10,820,627

Deposits in guarantee

2,258,159

3,361,941

Forward purchases for repo operations

3,175,252

-

14,716,375

14,182,568

7.8 Other non-financial assets

Other Miscellaneous assets

3,027,551

2,083,010

Loans to employees

615,314

385,275

Payments in advance

1,415,195

1,312,556

Works of art and collector's pieces

70,735

81,075

Retirement insurance

106,239

115,701

Other non-financial assets

112,231

109,284

5,347,265

4,086,901

7.9  Inventories

Electronics

197,681

231,558

Home and Health care

5,433

-


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)

Allowances for impairment

(487)

(4,411)

202,627

227,147

7.10 Deposits

Non-financial sector

23,430,989

19,056,963

Financial sector

62,232

64,933

Current accounts

38,981,480

52,456,930

Savings accounts

162,148,319

157,997,750

special checking accounts

69,056,005

102,422,350

Fixed term and term investments

110,152,346

129,776,073

Investment accounts

12,266,914

6,305,115

Others

7,014,695

7,190,334

Interest and Adjustments

4,900,999

3,782,031

428,013,979

479,052,479

7.11 Liabilities at fair value through profit and loss

Liabilities for transactions in local currency

115,117

2,265,748

Liabilities for transactions in foreign currency

280,484

1,144,100

395,601

3,409,848

7.12 Other financial liabilities

Amounts payable for spot transactions pending settlement

4,319,659

21,345,019

Collections and other operations on behalf of third parties

12,494,796

14,936,250

Fees accrued to pay

3,070

11,343

Financial guarantee contracts

29,132

23,582

Liabilities associated with the transfer of financial assets not derecognised

87,528

915,988

Lease liability

1,352,846

2,255,718

Others

-

4,782

18,287,031

39,492,682

7.13 Financing received from the Argentine Central Bank and other financial institutions

Financing received from local financial institutions

3,509,210

1,720,409

Financing received from international institutions

1,156,473

8,663,417

4,665,683

10,383,826

7.14 Provisions

Provisions for unutilized balances

960,530

1,073,047

Eventual commitments

312,282

345,204

Other contingencies

93,016

99,114

1,365,828

1,517,365

7.15 Other non-financial liabilities

Payroll and social securities

9,566,762

10,386,775

Sundry creditors

8,901,886

9,765,995

Tax payable

5,860,584

5,746,000

Planned payment orders pending settlement

1,324,025

670,009

Revenue from contracts with customers (1)

296,390

305,127

Contribution to the deposit guarantee fund

60,512

66,265

Others non- financial liabilities

42,159

36,523

26,052,318

26,976,694

nine-month period ending on

three-month period ending on

09/30/2022

09/30/2021

09/30/2022

09/30/2021

7.16 Interest income

Interest on overdrafts

3,901,005

3,650,428

1,388,500

1,554,198

Interest on promissory notes

13,227,755

13,313,804

4,336,159

4,852,427

Interest on personal loans

19,610,865

24,488,472

5,844,196

7,822,623

Interest on promissory notes

8,665,282

8,933,428

3,679,434

2,812,192

Interest on credit card loans

8,781,978

7,421,824

3,002,319

2,314,520

Interest on mortgage loans

11,649,452

9,050,813

4,346,398

2,590,285

Interest on automobile and other secured loan

2,629,401

1,832,971

919,235

638,652

Interest on foreign trade loans and USD loans

876,859

1,694,537

247,203

488,973

Interest on financial leases

2,812,841

1,755,118

1,011,935

716,389

Interest on public and private securities measured at amortized cost

73,027,422

34,372,725

31,179,099

12,798,732

Others

6,823,140

22,112,986

2,186,651

7,826,123

152,006,000

128,627,106

58,141,129

44,415,114


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)

nine-month period ending on

three-month period ending on

09/30/2022

09/30/2021

09/30/2022

09/30/2021

7.17 Interest Expenses

Interest on current accounts deposits

38,677,288

25,408,687

17,177,308

9,182,090

Interest on time deposits

55,334,065

47,550,695

20,194,114

16,838,828

Interest on other liabilities from financial transactions

1,344,027

1,821,183

506,378

514,994

Interest on financing from the financial sector

215,085

220,175

36,096

125,234

Others

321,442

262,316

144,851

90,369

95,891,907

75,263,056

38,058,747

26,751,515

7.18 Net income from financial instruments at fair value through profit or loss

Income from corporate and government securities

11,032,437

9,673,640

3,695,576

3,006,863

Income from securities issued by the Argentine Central Bank

839,808

428,299

143,495

125,399

Derivatives

277,005

2,555,745

100,454

751,503

12,149,250

12,657,684

3,939,525

3,883,765

7.19 Service Fees Income

Commissions from deposit accounts

8,047,609

8,146,897

2,534,884

2,865,379

Commissions from credit and debit cards

6,088,874

6,112,555

1,935,140

2,026,506

Commissions from loans operations

218,365

168,392

42,302

67,694

Commissions from miscellaneous operations

5,255,251

6,082,818

1,671,819

2,035,798

Others

91,251

138,565

25,823

41,226

19,701,350

20,649,227

6,209,968

7,036,603

7.20 Services Fees expenses

Commissions paid

6,875,420

6,132,920

2,177,421

2,082,955

Export and foreign currency operations

173,591

141,529

36,100

41,140

7,049,011

6,274,449

2,213,521

2,124,095

7.21 Other operating incomes

Loans recovered and allowances reversed

2,408,357

2,127,715

838,661

534,318

Rental from safety boxes

497,788

470,279

166,242

165,286

Commissions from trust services

49,111

54,944

15,791

27,803

Adjust other credits

251,673

211,640

92,933

60,427

Sales of property. plant and equipment

20,818

9,748

(7,328)

5,915

Default interests

380,685

343,147

121,126

147,771

Others

2,373,578

2,182,166

964,551

724,009

5,982,010

5,399,639

2,191,976

1,665,529

7.22 Personnel expenses

Payroll and social securities

31,988,859

28,789,619

9,860,049

9,375,423

Personnel expenses

2,649,725

3,149,777

1,016,993

735,782

34,638,584

31,939,396

10,877,042

10,111,205

7.23 Administration expenses

Directors´ and statutory auditors´fees

504,340

606,764

187,351

199,738

Other fees

5,128,382

5,280,540

1,794,811

1,849,214

Advertising and publicity

1,499,842

1,377,906

621,462

595,102

Taxes

4,069,720

4,220,538

1,357,989

1,457,531

Maintenance. security and services

4,464,032

5,309,406

1,525,602

1,795,261

Rent

62,898

104,981

19,941

28,839

Others

2,481,939

2,127,805

1,004,677

614,610

18,211,153

19,027,940

6,511,833

6,540,295

7.24 Depreciation and impairment of non-financial assets

Depreciation of property. plant and equipment (Schedule F)

1,015,310

1,057,327

297,924

357,205

Depreciation of miscellaneous assets

450,136

378,314

156,137

113,507

Amortization of intangible assets (Schedule G)

2,926,562

2,425,487

946,620

856,211

Depreciation of rent asstes by right of use (Schedule F)

1,245,829

1,340,965

423,628

407,285

5,637,837

5,202,093

1,824,309

1,734,208

7.25 Other operating expenses

Promotions related with credit cards

1,190,530

965,768

398,033

361,344

Turnover tax

10,608,118

10,114,398

3,830,699

3,431,888

Result by initial recognition of loans

99,687

264,599

28,678

77,798

Charges paid to National Social Security Administration (ANSES)

130,036

126,858

26,078

43,638

Balance adjustments loans and credit cards

207,717

364,889

73,380

259,233

Operationaal losses

606,818

38,533

279,278

12,839

Interests for leases liabilities

342,238

361,266

73,626

167,346


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)

nine-month period ending on

three-month period ending on

09/30/2022

09/30/2021

09/30/2022

09/30/2021

Coverage services

10,037

22,042

2,498

5,800

Contributions made to deposit insurance fund

591,840

607,619

195,859

205,738

Charge for credit loss of others credits and for other provisions

771,727

296,822

349,356

86,068

Others

819,377

581,135

223,528

115,030

15,378,125

13,743,929

5,481,013

4,766,722

8.CONSIDERATION OF THE RESULTS

The Annual Ordinary Shareholders' Meeting held on April 27, 2022 approved the financial statements as of December 31, 2021 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 optional reserve.

Likewise, the partial reversal of the optional reserve set up for the distribution and payment of dividends was approved. Pursuant to the board meeting held on May 5, 2022, it was decided to approve the payment of cash dividends for 419,342 thousands of pesos.

9.INSURANCE

Income from insurances activities

The composition of the item “Result for insurance activities” as of September 30, 2022 and 2021  is as follows:

Items

nine-month period ending on

Three-month period ending on

09/30/2022

09/30/2021

09/30/2022

09/30/2021

Accrued premiums

4,274,985

4,604,981

1,388,937

1,619,195

Accrued claims

(665,093)

(950,569)

(207,988)

(387,394)

Production expenses

(663,515)

(886,481)

(244,268)

(361,736)

Total

2,946,377

2,767,931

936,681

870,065

10. ASSET MANAGEMENT AND OTHER SERVICES

As of September 30, 2022 and December 31, 2021, 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

09/30/2022

12/31/2021

09/30/2022

12/31/2021

09/30/2022

12/31/2021

Premier Renta CP en Pesos

65,666,110

83,666,905

65,567,329

83,547,234

11,437,974,280

11,713,447,317

Premier Renta Plus en Pesos

521,258

494,786

509,872

491,835

19,597,095

15,706,691

Premier Renta Fija Ahorro

10,392,830

15,310,081

9,996,108

15,210,364

801,951,617

2,136,780,683

Premier Renta Fija Crecimiento

178,924

189,696

177,209

189,169

4,842,134

4,571,392

Premier Renta Variable

425,030

680,602

420,812

675,290

6,120,282

8,944,577

Premier Abierto Pymes

1,139,507

1,729,551

1,091,240

1,725,950

77,380,032

99,988,028

Premier Commodities

648,588

496,759

564,074

374,301

22,049,055

15,200,277

Premier Capital

3,596,614

2,388,127

3,489,136

2,359,976

296,192,809

180,998,028

Premier Inversión

979,081

2,185,956

978,574

2,184,891

988,457,500

1,965,594,347

Premier Balanceado

1,189,523

1,998,208

1,188,575

1,996,647

107,272,240

169,137,724

Premier Renta Mixta

3,517,531

6,110,135

3,406,771

5,448,570

630,605,568

850,150,799

Premier Renta Mixta en Dólares

130,816

224,051

129,048

222,686

2,032,269

2,122,092

Premier Performance Dólares

358,712

866,683

357,534

860,370

4,262,624

6,455,272

Premier Global USD

348,105

441,276

347,074

440,423

2,352,384

2,430,000

Premier Estratégico

1,160,103

-

1,159,073

-

805,769,160

-

11.ADDITIONAL INFORMATION REQUIRED BY THE BCRA


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)

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.

Through Decree No, 1127/98 dated September 24, 1998, the National Executive Branch established the maximum coverage limit of the guarantee system, applicable to demand or time deposits, in pesos and/or foreign currency. Until February 28, 2019, such limit amounts to 450, pursuant to Communication “A” 5943. As from March 1, 2019, such limit amounted to 1,000 pursuant to Communication “A” 6654, As from May 1, 2020, the new limit amounts to $ 1,500, pursuant to Communication “A” 6973.

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.

11.2. RESTRICTED ASSETS

The Group has assets whose availability is restricted, according to the following detail:

Detail

09/30/2022

12/31/2021

Other receivables from financial transactions

Special guarantee accounts in the Argentine Central Bank

9,278,896

10,820,627

Guarantee deposits for term operations

2,263,800

-

Guarantee deposits for currency forward transactions

2,021,483

2,169,244

Guarantee deposits for forward exchange operations

872,127

1,107,336

Guarantee deposits for credit cards transactions

226,375

-

Other guarantee deposits

53,637

64,648

14,716,318

14,161,855

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 2021 and until September 30, 2022, the accounting books since September 2012 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:


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)

Below is a detail of the Guarantee Management trust where Banco Supervielle acts as a trustee as of September 30, 2022:

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 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,

-

-

Those initially mentioned in Exhibit V (DISERVEL S.R.L, INGENIAS S.R.L, GEOTECNIA (INV, CALVENTE), NEWEN INGENIERIA S.A., INGICIAP S.A., MERCADOS 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

Interconexion Electrica Rodeo S.A.

IUDÚ Compañia Financiera S.A. (Financial Trust CCF)

Assets in Trust: Personal Loans

Trustee: Equity TMF Trust Company (Argentina) S.A.

Financial Trust

Set-ip on

Initial Amount in Trust

Títulos Emitidos

Book value at 09/30/2022

Participation Certificates

Debt Securities

Participation Certificates

Debt Securities

26

31/3/2022

1,000,000

170,000

830,000

169,650

-

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, for an amount of up to US $ 2,300,000,000 (or its equivalent in other currencies or units of value)

The following describes issuances in force as of September 30, 2022 and December 31, 2021:

Issuance date

Currency

Nro, of Class

Amount

Amortization

Term

Maturity date

Rate

Book Value

09/30/2022

12/31/2021

02/14/18

$

E

1,607,667

3 equal and consecutive annual installments, 1° 02-14-21

60

02/14/2023

Floating Badlar of Private Banks + 4,05%

557,521

1,759,117

Total

557,521

1,759,117


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)

Global Program for the Issuance of Subordinated debt securities for up to V / N $ 750,000 (expanded to V / N $ 2,000,000),

As of September 30, 2022 and December 31, 2021, the Bank has no outstanding issues.

11.6.RESTRICTIONS IMPOSED ON THE DISTRIBUTION 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.

It is worth to be mentioned that pursuant to Communication “A” 6464 issued by the Argentine Central Bank, until March 31, 2020, financial entities, which, for the purpose of determining the distributable result, have not applied the additional of 1 percentage point on capital margins shall rely on previous authorization issued by the SEFyC.

On August 30, 2019 and with the purpose of stabilizing the exchange market, the Argentine Central Bank issued Communication “A” 6768, pursuant which financial entities shall rely on the previous authorization of Exchange and Financial Entities Superintendence before distributing its income. Over the course of such authorization process, the Comptroller Entity will assess, among other items, potential effects of the application of international accounting standards pursuant to Communication “A” 6430 (Paragraph 5.5 of IFRS 9 – Detriment of financial assets value) as well as the effects of the re-expression of financial statements pursuant to Communication “A” 6651.

On March 19, 2020 the Argentine Central Bank issued Communication “A” 6939 by means of which the suspension of income distribution of financial entities was made effective until June 30, 2020, extending it until December 31, 2021 through communication "A" 7035 of June 4, 2020.

Likewise, on December 17, 2020, through communication “A” 7181, the BCRA decided to extend said suspension in the distribution of results until June 30, 2021. Later on June 24, 2021 through Communication “A” 7312 again extended the extension until December 31, 2021.

On December 16, 2021, the Board of Directors of the Central Bank of the Argentine Republic (BCRA) established that the entities of the financial system may distribute as of next year up to 20% of the profits accumulated until December 31, 2021, in twelve monthly and consecutive installments, in accordance with the rules for distribution of results.

11.7. ACCOUNTS IDENTIFYING MINIMUM CASH INTEGRATION COMPLIANCE

As of  September 30,2022 and  December 31,2021, the minimum cash reserve was made up as folllows:

Item (*)

09/30/2022

12/31/2021

Current accounts in the Argentine Central Bank (**)

1,000,000

4,000,000

Sight accounts in the Argentine Central Bank (**)

17,556,074

14,658,247

Special accounts for previous credit payment (**)

8,835,041

6,095,650

Special accounts for acred. assets (**)

720,318

-

Total

28,111,433

24,753,897

(*) 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.

11.8. FINANCIAL AGENCY AGREEMENT OF THE PROVINCE OF SAN LUIS


36

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

As previously disclosed, on January 17, 2017, the Province of San Luis notified the Bank of its decision to exercise its right to terminate the financial agency agreement, effective as of February 28, 2017. Despite the termination of the financial agency agreement, since February 2017 the Bank continued to provide financial services to the government of the Province of San Luis and its employees following an agreement signed with the province which was successively renewed and remained in force until May 2, 2022. On May 5, 2022, the government of the Province of San Luis notified Banco Supervielle that on May 2, it had signed an agreement for the designation of Banco de la Nación Argentina as financial agent.

On July 26, the Bank closed the agreement to transfer the financial agent business that served the government of the Province of San Luis for almost 25 years, including the transfer of employees, branches and the assignment of the loan portfolio that involves agents and employees of the province. It does not include any private sector customers of the Bank in the province.

The operation was transferred in August and included almost 96 thousand customers (including San Luis employees and provincial social plans), Loans and credit card balances amounting to AR$ 4.139 million, 140 collaborators and 14 branches located in the Province. Another 4 branches were closed. The operation transferred accounted for approximately 2.4%, 4% and 10% of our total loans, employees and physical branches, respectively. Net revenues associated with this agency agreement in 2022 represented 2.2% of the Bank’s total revenues in this first half.

The Bank will continue to build on the strong franchise established over the past 25 years serving the private sector in this province through five physical branches in the most densely populated areas, together with its innovative virtual branches and serving more than 106.000 customers. The continuing operation includes a loan portfolio of over AR$ 6.000 million, which accounted to 60% of the total operation in the Province until de transfer.

12.FINANCIAL RISK FACTORS

There have been no significant changes in policies related to the administration of risks the Group may be exposed to regarding financial statements as of December 31, 2021 and in Note1.2.

In this regard, the risks in relation to the context in which the Company operates must be taken into account, as described in Note 16.

13.INTERNATIONAL FINANCING PROGRAMS

In December 2017, Banco Interamericano de Desarrollo (BID) granted Banco Supervielle S.A. a loan (tranche A) for USD 40,000,000, USD 35,000,000 of which are settled over a three-year term and the remaining USD 5,000,000 over a five-year term. In June 2018, the Bank was granted a loan (tranche B) for USD 93,500,000, USD 40,000,000 are settled over a year term and the remaining USD 53,500,000 are settled over ywo years and a half. As of December 31, 2020, Tranche B will be canceled in its entirety, and the USD 35,000,000 of Tranche A. In November 2022, the last installment of the longest tranche would be paid.

The Group has been in compliance with the financial covenants

14.ASSIGNMENT OF LOAN PORTFOLIO

IUDÚ Compañía Financiera transferred to Banco Supervielle S.A. its loan portfolio under the following terms: (a) assignment without recourse of loan portfolio, pledge loans and credit card contracts, (b) assignment of the contractual position held by IUDU and (c) assignment of the contractual position of IUDU with different vendors. The transfers of IUDÚ's financial products and services include the transfer to Banco Supervielle S.A. of the commercial exploitation rights of the respective user clients of such financial products and services.

The approximate amount of the assigned portfolio as of September 30, 2022 amounted to $17,901,000, which will be precisely established and paid by Banco Supervielle S.A. to IUDÚ as the assignments and partial and periodic migrations of the credit portfolio materialize.

Likewise, Tarjeta Automática S.A assigned its loan portfolio to the Bank under the following terms: (a) assignment without recourse of the loan portfolio originated by Tarjeta Automática S.A. in its line of business through personal loans granted and credit card contracts. Transfers of the financial products and services of Tarjeta Automática S.A. include the transfer to Banco Supervielle S.A. of the commercial exploitation rights of the respective clients, users of such financial products and services.


37

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 approximate amount of the assigned portfolio as of September 30, 2022 amounted to $275,000, which will be precisely established and paid by Banco Supervielle S.A. a Tarjeta Automática S.A. as the assignments and partial and periodic migrations of the credit portfolio materialize.

The transfer and technological migration of the credit portfolio of IUDÚ Compañía Financiera S.A. and Tarjeta Automática S.A. will be made after acceptance of the offer letters by Banco Supervielle S.A. and through 2 different migrations, by batches of clients, which will be completed approximately in the course of the month of December 2022.

15.OWN SHARES ACQUISITION PROGRAM

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 the date of issuance of these financial statements, Grupo Supervielle proceeded to repurchase 8,087,385 Class B ordinary shares for 735,674.

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.

In recent months, the behavior of international markets has been affected by the advance of the omicron variant of the coronavirus, the persistence of significant inflationary pressures and certain disruptive decisions in China, among others. Consequently, the global economic recovery continues its course, but at a slower pace than expected months ago. The new international scenario seems to be converging towards a scenario of more moderate economic growth with tightening financial conditions, added to additional inflationary pressures due to delays in production chains and the rise in the prices of some raw materials. In this line, the Federal Reserve of the United States has begun to reduce the liquidity injected into the markets (a process known as tapering) and, according to the latest projections of the members of the Monetary Policy Committee, during 2022 there would be three increases of rates.

In the case of Argentina, after the 9.9% drop in GDP in 2020, the economy managed to recover pre-pandemic levels in July 2021. Although during the second quarter of 2021 the GDP recovered 11.9% year-on-year, helped by the low base of comparison, in seasonally adjusted terms it expanded 4.1% against the second quarter of the year. This expansion was explained by the reinforcement of expansionary fiscal and monetary policies in the previous election, and the absence of mobility restrictions that were present in the second quarter of the year. According to INDEC, in November activity grew 1.7% in monthly terms. This positioned economic activity 3.7% above the monthly value of February 2020, the month prior to the implementation of the first measures due to the pandemic.

Fiscal accounts, meanwhile, accumulated a primary deficit of 3.6% of GDP in 2021 (result that excludes income from the Solidarity Contribution, and those from the transfer of Special Drawing Rights transferred by the International Monetary Fund). . In recent months, the red color of the public accounts has accelerated considerably, not so much due to a moderation in total revenues but more dynamism on the part of primary spending in an electoral context.

As a consequence of this increase in the deficit, assistance from the Central Bank to the Treasury has been increasing in the fourth quarter of 2021. The BCRA exhausted the financing channel for BCRA profit transfers (a total of $787,712 million ) in the month of October. In addition, $912,599 million transferred via Temporary Advances must be added.


38

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Throughout 2021, the BCRA assisted the Treasury for an equivalent to 3.7% of GDP, of which 2.5% of GDP was concentrated in the fourth quarter.

The issuance of pesos to cover the fiscal gap has been stressing the exchange front for several months. As a result, in recent months the BCRA has continued to take measures to stop the drain on foreign currency. During 2022, sales of dollars to the private sector, the use of foreign currency to intervene in the stock market, and the use of foreign currency for Treasury debt payments moderated. In any case, a net sale of the International Reserves for US$ 3,320 million is observed, closing the period at a level of US$ 37,625 million.

During 2022, the official exchange rate began to accelerate until reaching 43.37% in the 9 months that elapsed, still below the inflation rate for the same period, which in September indicated 66%. In detail, the official exchange rate defined daily by the BCRA through Communication "A" 3,500 went from $/US$ 102.75 to $/US$ 147.315 between the last business day of December and the last of September.

The main indicators in our country are:

• Accumulated inflation between December 31, 2021 and September 30, 2022 reached 66.01% (CPI)

• Between December 31, 2021 and September 30, 2022, the peso depreciated 43.50% against the US dollar, according to the exchange rate of Banco de la Nación Argentina.

• The monetary authority imposed greater exchange restrictions, which also affect the value of foreign currency in existing alternative markets for certain restricted exchange transactions in the official market.

In March 2022, the Government announced that it had reached an agreement with the International Monetary Fund.

Congress approved the agreement with the IMF on March 11, extending the financing for a 2.5-year term with a 10-year repayment period. The agreement with the IMF has the following important points:

• Argentina commits to gradually reduce its primary deficit from 2.5% of GDP in 2022, to 1.9% of GDP in 2023 and to 0.9% of GDP in 2024.

• Argentina commits to gradually reduce its financing from the National Treasury from 1% of GDP in 2022, to 0.6% of GDP in 2023 and 0% of GDP in 2024.

• Placement of real positive interest rates

• A comprehensive approach to reducing inflation, which is a multi-causal phenomenon, and the accumulation of reserves without modifying the current exchange policy regime.

As of the date of these financial statements, the Central Bank modified the interest rate of the LELIQ to 75%.

The financial sector has significant exposure to the Argentine public sector, through rights, public securities, loans and other assets. The Group's exposure to the Argentine public sector is as follows:

09/30/2022

BCRA+ Repo

185,859,075

Bonds issued by the National Treasury

42,845,238

Other provincial public securities

36,010

Total Public Securities

228,740,323

Loans to the Public Sector

345,747

Total Exposure to the Public Sector

229,086,070

Percentage of total assets

41%

Percentage of total Equity

283%

According to what is established in 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 interim condensed consolidated financial statements.

The Group's Management permanently monitors the evolution of the variables that affect its business, to define its course of action and identify the potential impacts on its equity and financial situation. The Group's financial statements must be read in the light of these circumstances.

17.SUBSEQUENT EVENTS


39

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

There are no events or operations that occurred after September 30, 2022 in addition to those disclosed in these financial statements that may significantly affect the financial position or results of the Group as of the closing date of this period.


40

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 September 30, 2022 and December 31, 2021:

Items

HOLDING

POSITION

Level of fair value

Book value 09/30/2022

Book value 12/31/2021

Book value 09/30/2022

Options

Final Position

DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

 

 

 

 

 

 

Argentine

Government Securities

 

 

 

 

 

Bono Rep.Arg.Vinculado U$S V30/11/2022

1

1,781,197

-

1,781,197

-

1,781,197

Bono Nación Dual Vto.29/09/23

1

1,716,036

-

1,716,036

-

1,716,036

Bono Nación Dual Vto.30/06/23

1

1,339,240

-

1,339,240

-

1,339,240

Bono Nación Dual Vto.31/07/23

1

855,345

-

855,345

-

855,345

Letra tesoro $ aj CER Desc Vto.16/12/22

1

811,581

-

811,581

-

811,581

Letra tesoro $ aj CER Desc Vto.19/05/23

1

750,322

4,932,383

750,322

-

750,322

Letra Tesoro $ a desc. Vto.16/12/22

1

731,869

3,010,680

731,869

-

731,869

Bono Tesoro $ Aj CER 1,50% Vto.25/03/24

1

601,057

-

601,057

-

601,057

Bono Tesoro vinc al U$S 28/04/23

1

537,841

-

370,769

-

370,769

Letra Tesoro $ a desc. Vto.31/01/23

1

497,815

-

497,815

-

497,815

Otros

1

1,823,255

22,996,349

1,594,726

-

1,594,726

Bonos tesoro Nac vinc USD

1

-

673,631

-

-

-

Bono Tesoro Nac Arg 2,5% $ 22/07/2021 (TC21)

1

-

-

0

-

0

Bocon - Bono de consolidacion $ 8 serie (PR15)

1

25,272

3,797

25,272

-

25,272

T2V2

1

46,530

46,530

46,530

X20E3

1

60,687

60,687

60,687

SPC10

1

161,378

161,378

161,378

Central Bank Bills

Central Bank Bills Mat. 10/06/2022

1

297,289

-

297,289

-

297,289

Central Bank Bills mat. 10/12/2022

1

646,228

-

646,228

-

646,228

Central Bank Bills mat. 01/11/2022

1

-

591,816

-

-

-

Central Bank Bills mat. 01/20/2022

1

-

32,577

-

-

-

Corporate Securities

On Ypf Clase 39 8,50% U$S Vto.07/28/25

1

22,246

-

22,246

-

22,246

On Pyme Venturino $ mat.10/05/23

2

4,509

21,162

-

21,162

On Luz Tres Picos 4 U$S 09/29/26

1

21,162

6,670

4,509

-

4,509


41

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Items

HOLDING

POSITION

Level of fair value

Book value 09/30/2022

Book value 12/31/2021

Book value 09/30/2022

Options

Final Position

On Santander Rio $ CL.25 Mat.06/10/22

-

422,896

On Ypf Energía Elec $ CL.7 Mat.05/20/22

87,783

others

1

2,717,918

4,566,120

2,717,918

-

2,717,918

 

Total Debt Securities at Fair value through profit or loss

15,448,777

37,324,702

15,053,176

-

15,053,176

OTHER DEBT SECURITIES

Measured at fair value through profit or loss

Argentine

Government Securities

Treasury Bond $ V at 06/02/2023

1

3,073,800

6,132,264

3,073,800

-

3,073,800

Treasury letter $ at desc. Mat.06/16/23

1

1,384,500

-

1,384,500

-

1,384,500

Treasury Bond $ Aj CER 1.50% Mat. 03/25/24

1

595,631

2,112,641

595,631

-

595,631

Treasury Bond $ Aj CER 1.40% Mat. 03/25/23

1

400,731

984,402

400,731

-

400,731

Treasury letter $ aj a Desc Mat. 04/21/23

1

282,000

-

282,000

-

282,000

Treasury letter $ aj CER Desc Mat. 01/20/23

1

46,686

-

46,686

-

46,686

Treasury letter $ at desc. Expiration 10/31/22

1

23,430

-

23,430

-

23,430

Vinc Treasury Bond at US$ 04/29/22

1

-

6,198,250

-

-

-

Treasury letter $ aj CER Desc Mat08/16/22

2

-

1,723,843

-

-

-

Treasury letter $ at desc. Mat 04/29/22

1

-

1,466,429

-

-

-

Others

1

-

1,683,358

-

-

-

Nation Treasury bond TV22

1

-

688,735

-

-

-

National Treasury Bill in pesos CER X16D2

1

280,322

-

280,322

-

280,322

National Treasury Bill in pesos CER X19Y3

1

2,144,227

-

2,144,227

-

2,144,227

DKL Treasury Bond 0.30% 04/28/23

1

-

87,029

0

-

0

National Treasury Bill in $ 03/31/22

1

-

300,836

0

-

0

Treasury Bond $ Aj CER 1.20% 2022

1

-

286,042

0

-

0

National Treasury Bill in pesos CER 02/28/22

1

-

610,506

0

-

0

Letter Adjust Disc.16/06/23 $ CG (X16J3)

1

121,197

-

121,197

121,197

Treasury Bond $ Aj CER $ 2026 (TX26)

1

110,810

-

110,810

110,810

National Treasury Bill in pesos CER 19/05/23 (X19Y3)

1

62,123

-

62,123

62,123

Treasury Bond $ Aj CER 1.55% 2024 (T2X4)

1

128,858

-

128,858

128,858

Treasury Bond $ Aj CER $ 2026 (TX26)

1

126,643

-

126,643

126,643

Treasury Bill $ Aj CER 04/21/2023

1

188,940

-

188,940

188,940

Central Bank Bills

Central Bank Bills mat.10/20/22

2

41,974,986

-

42,263,144

-

42,263,144


42

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Items

HOLDING

POSITION

Level of fair value

Book value 09/30/2022

Book value 12/31/2021

Book value 09/30/2022

Options

Final Position

Central Bank Bills mat.10/18/22

2

36,644,654

-

36,644,654

-

36,644,654

Central Bank Bills mat.10/11/22

2

14,668,455

-

14,668,455

-

14,668,455

Central Bank Bills mat.10/25/22

2

11,413,680

-

11,413,680

-

11,413,680

Central Bank Bills mat.10/27/22

2

9,474,370

-

9,474,370

-

9,474,370

Central Bank Bills mat.10/06/22

2

7,902,568

-

9,878,210

-

9,878,210

Central Bank Bills mat.01/18/22

2

-

29,343,345

-

-

-

Central Bank Bills mat.01/25/22

2

-

19,423,287

-

-

-

Central Bank Bills mat.01/11/22

2

-

13,956,424

-

-

-

Central Bank Bills mat.01/04/22

2

-

11,576,936

-

-

-

Others

2

-

20,465,366

-

-

-

 

Central Bank Notes

Central Bank Notes Mat.01/11/23

2

11,634,110

-

11,634,110

-

11,634,110

Central Bank Notes Mat.11/02/22

2

6,354,175

-

6,354,175

-

6,354,175

Central Bank Notes Mat.11/30/22

2

6,167,990

-

6,167,990

-

6,167,990

Central Bank Notes Mat.01/04/23

2

4,174,351

-

4,174,351

-

4,174,351

Central Bank Notes Mat.01/04/23

2

3,895,329

-

3,895,329

-

3,895,329

Central Bank Notes Mat.01/04/23

2

3,413,265

-

3,413,265

-

3,413,265

Central Bank Notes Mat.01/04/23

2

2,301,522

-

2,301,522

-

2,301,522

Corporate Securities

On Tarj Naranja CL.53 $ V04/05/24

2

1,120,294

-

1,120,294

-

1,120,294

On Tarj Naranja CL.55 $ V02/09/24

1

965,169

-

965,169

-

965,169

On Spi Energy SA CL.1 US$ V.06/27/2026

2

634,942

-

634,942

-

634,942

On Credicuotas C. S.2 $ 01/28/2024

2

220,223

184,827

220,223

-

220,223

On Msu Energy CL.4 U$S Mat.05/20/24

1

187,131

-

187,131

-

187,131

On MSU S.A. Cl. 2 UVA Mat.08/06/23

2

174,691

-

174,691

-

174,691

On Newsan SA CL.12 $ V.06/13/2023

2

115,005

88,491

115,005

-

115,005

On Credicuotas C. S.1 10/05/2023 $

2

112,362

-

112,362

-

112,362

On Cent ter Gen/Med UVA Mat.11/12/24

2

89,658

90,374

89,658

-

89,658

On MSU S.A S.10 U$S Mat.09/12/24

2

81,537

-

81,537

-

81,537

Others

1

32

53

32

-

32

Measurement at amortized cost

Argentine


43

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Items

HOLDING

POSITION

Level of fair value

Book value 09/30/2022

Book value 12/31/2021

Book value 09/30/2022

Options

Final Position

Government Securities

Treasury Bond $ Due 05/23/27

-

14,481,318

-

14,481,318

-

14,481,318

Treasury bill $ aj CER Desc Expiration date 05/19/23

-

2,164,856

-

2,164,856

-

2,164,856

Dual Nation Bond Expiration 09/29/23

-

2,016,290

-

2,016,290

-

2,016,290

Treasury bill $ aj CER Desc Expiration date 01/20/23

-

1,146,082

-

1,146,082

-

1,146,082

Treasury bill $ at desc. Expiration 09/18/23

-

983,217

-

983,217

-

983,217

Treasury bill $ aj CER Desc Expiration date 12/16/22

879,748

-

879,748

-

879,748

Treasury Bond $ Fixed Term 22% Maturity 05/21/22

500,425

13,799,231

Central Bank Notes

Central Bank Notes Mat.03/22/23

10,205,890

-

10,205,890

-

10,205,890

Central Bank Notes Mat.03/15/23

3,109,308

-

3,109,308

-

3,109,308

Central Bank Notes Mat.02/22/23

2,709,080

-

2,709,080

-

2,709,080

Corporate Securities

FF Red Surcos XXIX lote 1

15,142

-

15,142

-

15,142

FF Red Surcos XXIX lote 2

14,048

-

14,048

-

14,048

Others

16

27

16

-

16

Total other debt securities

210,915,818

131,202,696

212,679,193

-

212,679,193

EQUITY INSTRUMENTS

Measured at fair value through profit and loss

Argentine

Pampa Energía S.A.

1

54,922

41,022

54,922

-

54,922

YPF SA

1

52,352

15,990

52,352

-

52,352

Transener SA

1

20,066

12,107

20,066

-

20,066

Grupo Financiero Galicia SA

1

15,755

27,025

15,755

-

15,755

Loma Negra S.A.

1

10,566

26,715

10,566

-

10,566

Ternium Arg S.A.Ords."A"1 Voto Esc

1

9,062

55,553

9,062

-

9,062

Banco Francés SA

1

7,346

4,476

7,346

-

7,346

Transp. De Gas Del Sur

1

3,068

2,662

3,068

-

3,068

Edenor SA

1

2,349

5,748

2,349

-

2,349

Aluar SA

1

2,339

30,127

2,339

-

2,339

Others

1

8,562

39,332

8,562

-

8,562

Measured at fair value with changes in OCI


44

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Items

HOLDING

POSITION

Level of fair value

Book value 09/30/2022

Book value 12/31/2021

Book value 09/30/2022

Options

Final Position

Argentine

Others

3

198,618

178,142

198,618

-

198,618

Total equity instruments

385,005

438,899

385,005

-

385,005

Total

226,749,600

168,966,297

228,117,374

-

228,117,374


45

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 September 30, 2022 and December 31, 2021 balances of loans and other financing are the following:

09/30/2022

12/31/2021

COMMERCIAL PORTFOLIO

Normal situation

72,256,800

87,056,713

-With "A" Preferred Collateral and Counter-guarantees

1,757,185

3,552,256

-With "B" Preferred Collateral and Counter-guarantees

6,815,499

8,964,596

- Without Preferred Collateral nor Counter-guarantees

63,684,116

74,539,861

Subject to special monitoring

- Under Observation

1,545,305

2,937,471

-With "A" Preferred Collateral and Counter-guarantees

460

50

-With "B" Preferred Collateral and Counter-guarantees

1,534,322

2,641,456

- Without Preferred Collateral nor Counter-guarantees

10,523

295,965

With problems

1,633,639

8,433

-With "A" Preferred Collateral and Counter-guarantees

-

-

-With "B" Preferred Collateral and Counter-guarantees

1,120,942

-

- Without Preferred Collateral nor Counter-guarantees

512,697

8,433

High risk of insolvency

369,778

638,309

-With "A" Preferred Collateral and Counter-guarantees

2,758

4,501

-With "B" Preferred Collateral and Counter-guarantees

72,929

382,902

- Without Preferred Collateral nor Counter-guarantees

294,091

250,906

Uncollectible

2,485

2,087,800

-With "A" Preferred Collateral and Counter-guarantees

-

238,123

-With "B" Preferred Collateral and Counter-guarantees

930

1,504,264

- Without Preferred Collateral nor Counter-guarantees

1,555

345,413

TOTAL COMMERCIAL PORTFOLIO

75,808,007

92,728,726


46

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

09/30/2022

12/31/2021

CONSUMER AND HOUSING PORTFOLIO

Normal situation

134,668,565

166,020,314

-With "A" Preferred Collateral and Counter-guarantees

4,453,908

3,692,420

-With "B" Preferred Collateral and Counter-guarantees

12,942,816

13,842,684

- Without Preferred Collateral nor Counter-guarantees

117,271,841

148,485,210

Low Risk

3,785,157

4,374,230

-With "A" Preferred Collateral and Counter-guarantees

65,417

98,134

-With "B" Preferred Collateral and Counter-guarantees

311,606

407,651

- Without Preferred Collateral nor Counter-guarantees

3,408,134

3,868,445

Medium Risk

2,576,363

3,275,515

-With "A" Preferred Collateral and Counter-guarantees

9,197

11,597

-With "B" Preferred Collateral and Counter-guarantees

124,617

207,217

- Without Preferred Collateral nor Counter-guarantees

2,442,549

3,056,701

High Risk

2,815,800

4,818,032

-With "A" Preferred Collateral and Counter-guarantees

27,830

23,714

-With "B" Preferred Collateral and Counter-guarantees

145,938

255,737

- Without Preferred Collateral nor Counter-guarantees

2,642,032

4,538,581

Uncollectible

831,972

1,004,133

-With "A" Preferred Collateral and Counter-guarantees

9,195

28,834

-With "B" Preferred Collateral and Counter-guarantees

178,147

172,354

- Without Preferred Collateral nor Counter-guarantees

644,630

802,945

TOTAL CONSUMER AND HOUSING PORTFOLIO

144,677,857

179,492,224

TOTAL GENERAL(1)

220,485,864

272,220,950

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

204,542,487

253,695,174

Other debt securities

210,915,818

131,202,696

Computable items out of balance

(194,972,441)

(112,676,920)

Plus allowances

11,315,549

16,680,842

Plus IFRS adjusments non computable for DCS

861,696

1,480,645

Less non deductible ítems for DCS

-

(1,833)

Less Debt securities measured at amortized cost

(207,149,686)

(130,836,574)

Total

220,485,864

272,220,950


47

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE C - CONCENTRATION OF LOANS AND OTHER FINANCING

As of September 30, 2022 and December 31, 2021 the concentration of leans and other financing are the following:

Number of Clients

Loans and other financing

09/30/2022

12/31/2021

Balance

% over total portfolio

Balance

% over total portfolio

10 largest customers

17,884,737

8.1%

21,847,613

8.0%

50 following largest customers

29,362,487

13.3%

35,317,817

13.0%

100 following largest customers

25,144,880

11.4%

28,732,456

10.6%

Rest of customers

148,093,760

67.2%

186,323,064

68.4%

TOTAL

220,485,864

100.0%

272,220,950

100.0%


48

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE D – BREAKDOWN OF TOTAL LOANS AND OTHER FINANCING

As of September 30, 2022 the breakdown of leans and other financing are the following:

Item

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

-

105,747

67,738

-

67,001

147,119

588,476

976,081

Financial Sector

-

461,884

5,592

22,368

27,961

67,105

-

584,910

Non-financial private sector and residents abroad

19,098,352

100,207,467

38,212,961

30,730,508

40,353,524

51,078,548

138,691,204

418,372,564

TOTAL

19,098,352

100,775,098

38,286,291

30,752,876

40,448,486

51,292,772

139,279,680

419,933,555


49

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 September 30, 2022 and December 31, 2021, are as follows:

Item

At the beginning of the year

Useful

life

Revaluation

Additions

Disposals

Depreciation

Net carrying

Accumulated

Disposals

Of the year

At the end of the year

09/30/2022

12/31/2021

Cost model

Furniture and facilities

3,976,817

10

-

79,619

-

(3,211,445)

31,809

(146,201)

(3,325,837)

730,599

765,372

Machinery and equipment

13,401,966

10

-

171,612

(185,137)

(11,219,931)

140,057

(623,746)

(11,703,620)

1,684,821

2,182,035

Vehicles

682,016

5

-

168,605

(167,320)

(311,069)

98,875

(84,681)

(296,875)

386,426

370,947

Right of Use of Leased Properties

5,255,139

50

-

652,262

(1,218,843)

(2,564,858)

1,166,060

(1,245,829)

(2,644,627)

2,043,931

2,690,281

Construction in progress

2,310,133

-

-

667,451

(530,182)

-

-

-

-

2,447,402

2,310,133

Revaluation model

Land and Buildings

10,399,923

50

-

3,044

-

(392,626)

-

(160,682)

(553,308)

9,849,659

10,007,297

Total

36,025,994

-

1,742,593

(2,101,482)

(17,699,929)

1,436,801

(2,261,139)

(18,524,267)

17,142,838

18,326,065

The movements in investment properties as of September 30, 2022 and December 31, 2021 are as follows:

Item

At the beginning of the year

Useful

life

Additions

Disposals

Depreciation

Net carrying 09/30/2022

Net carrying 12/31/2021

Accumulated

Disposals

Of the year

At the end of the year

Cost model

Rent building

268,616

5

17,996

(37,444)

(35,203)

18,822

(30,815)

(47,196)

201,972

233,413

Measurement at fair value

Rent building

14,211,865

50

601,293

-

-

-

-

-

14,813,158

14,211,865

Total

14,480,481

619,289

(37,444)

(35,203)

18,822

(30,815)

(47,196)

15,015,130

14,445,278


50

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE G - INTANGIBLE ASSETS

Intangible assets of the Group as of September 30, 2022 and December 31, 2021 are as follows:

Item

At the beginning of the year

Useful life

Additions

Disposals

Depreciation

Net carrying

At the beginning of the year

Disposals

Of the year

At the end of the year

09/30/2022

12/31/2021

Measurement at cost

Goodwill

9,124,377

-

-

-

-

-

-

9,124,377

9,124,377

Brands

501,346

-

-

-

-

-

-

501,346

501,346

Other intangible assets

19,951,965

3,266,735

(76,568)

(10,608,598)

(38,992)

(2,926,562)

(13,574,152)

9,567,980

9,343,367

TOTAL

29,577,688

3,266,735

(76,568)

(10,608,598)

(38,992)

(2,926,562)

(13,574,152)

19,193,703

18,969,090

Depreciation for the year is included in the line "Depreciations and impairment of non-financial assets" in the statement of comprehensive income.


51

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE H – CONCENTRATION OF DEPOSITS

As of  September 30, 2022 and December 31, 2021  the concentration of deposits are the following:

Number of customers

Deposits

09/30/2022

12/31/2021

Placement Balance

% over total portfolio

Placement Balance

% over total portfolio

10 largest customers

153,176,852

35.8%

158,229,485

33.0%

50 following largest customers

85,108,768

19.9%

80,474,881

16.8%

100 following largest customers

20,892,522

4.9%

25,085,603

5.2%

Rest of customers

168,835,837

39.4%

215,262,510

44.9%

TOTAL

428,013,979

100.0%

479,052,479

100.0%


52

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

22,529,381

1,348,025

-

-

-

-

23,877,406

Financial sector

62,231

-

-

-

-

-

62,231

Non-financial private sector and residents abroad

370,002,248

28,298,983

13,094,937

145,070

335

-

411,541,573

Liabilities at fair value through profit and loss

395,601

-

-

-

-

-

395,601

Repo Transactions

2,267,741

-

-

-

-

-

2,267,741

Other financial liabilities

17,343,274

185,076

224,929

365,332

487,618

553,440

19,159,669

Financing received from the Argentine Central Bank and other financial institutions

1,751,606

903,785

688,230

653,939

1,234,786

1,138,843

6,371,189

Negotiable Debt securities

-

399,709

935,598

-

-

-

1,335,307

TOTAL

414,352,082

31,135,578

14,943,694

1,164,341

1,722,739

1,692,283

465,010,717

As of September 30, 2022:


53

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE L - ASSETS AND LIABILITIES IN FOREIGN CURRENCY

As of September 30, 2022 and December 31, 2021:

Items

As of September 30, 2021

As of September 30, 2022 (per currency)

As of December 31, 2021

Dollar

Euro

Real

Others

ASSETS

 

 

 

 

 

 

Cash and Due from Banks

25,030,800

23,621,649

1,033,905

18,318

356,928

35,665,853

Debt securities at fair value through profit or loss

6,768,015

6,768,015

-

-

-

1,291,150

Derivatives

62,583

62,583

-

-

-

12,235

Other financial assets

1,143,307

1,143,307

-

-

-

1,181,178

Loans and other financing

12,649,598

12,634,140

15,000

-

458

25,623,016

Other Debt Securities

2,932,289

2,932,289

-

-

-

6,198,363

Financial assets pledged as collateral

816,100

816,100

-

-

-

1,805,439

Other non-financial assets

126,157

126,157

-

-

-

201,468

TOTAL ASSETS

49,528,849

48,104,240

1,048,905

18,318

357,386

71,978,702

LIABILITIES

Deposits

37,759,530

37,200,209

559,321

-

-

47,867,452

Non-financial public sector

1,605,411

1,605,201

210

-

-

1,850,129

Financial sector

1,290

1,290

-

-

-

367

Non-financial private sector and foreign residents

36,152,829

35,593,718

559,111

-

-

46,016,956

Liabilities at fair value with changes in results

280,484

280,484

-

-

-

1,144,100

Other financial liabilities

4,063,654

3,630,981

422,610

22

10,041

4,288,032

Financing received from the Argentine Central Bank and other financial institutions

1,116,492

1,116,492

-

-

-

8,528,360

Other non-financial liabilities

359,255

359,252

1

-

2

613,911

TOTAL LIABILITIES

43,579,415

42,587,418

981,932

22

10,043

62,441,855

NET POSITION

5,949,434

5,516,822

66,973

18,296

347,343

9,536,847


54

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 September 30, 2022 is presented below:

Items

Balances at the beginning of fiscal year

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

126,218

111,490

-

-

(94,574)

143,134

Loans and other financing

16,680,872

1,107,105

477,951

565,549

(7,515,928)

11,315,549

Other financial entities

42,847

46,813

-

-

(59,364)

30,296

Non-financial private sector and residents abroad

16,638,025

1,060,292

477,951

565,549

(7,456,564)

11,285,253

Overdrafts

249,365

155,971

(23,069)

16,148

(158,511)

239,904

Documents

674,249

12,712

(236,335)

(193)

(179,209)

271,224

Mortgages

371,492

14,196

(31,930)

267,410

(247,136)

374,032

Pledge loans

521,191

36,124

25,429

183,551

(304,876)

461,419

Personal Loans

6,863,217

71,903

162,862

(630,999)

(2,572,934)

3,894,049

Credit cards

5,208,475

557,681

649,121

1,071,600

(2,978,708)

4,508,169

Financial lease

268,433

47,951

(48,887)

(7,905)

(103,280)

156,312

Others

2,481,603

163,754

(19,240)

(334,063)

(911,910)

1,380,144

Other debt securities

2,501

57,237

-

-

(23,767)

35,971

Eventual commitments

98,980

55,354

-

-

(61,403)

92,931

TOTAL PROVISIONS

16,908,571

1,331,186

477,951

565,549

(7,695,672)

11,587,585


Graphic

Separate Condensed Interim Financial Statements

For the nine-month period ended on

September 30, 2022, presented on comparative basis in homogeneous currency


56

GRUPO SUPERVIELLE S.A.

SEPARATE CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As of September 30, 2022 and December 31, 2021

(Expressed in thousands of pesos in homogeneous currency)

Notes and Schedules

09/30/2022

12/31/2021

ASSETS

 

Cash and due from banks

2, 9 and 4.1

431,101

724,345

 

Cash

-

8

 

Financial institutions and correspondents

431,101

724,337

 

Other local and financial institutions

431,101

724,337

 

Other financial assets

2,4.2 and 7

239,289

1,971,130

 

Other debt securities

2, 4.3 and A

2,424,549

688,734

Current income tax assets

-

21,059

Investment in subsidiaries, associates and joint ventures

3 and 4.4

68,166,433

72,313,123

 

Property, plant and equipment

4.5 and F

-

3,020

 

Intangible Assets

4.6 and G

10,180,900

10,277,964

 

Deferred income tax assets

7

51,484

2,333

Other Non-financial assets

4.7 and 7

98,002

143,671

 

TOTAL ASSETS

81,591,758

86,145,379

LIABILITIES

Deferred income tax liability

7

88,682

-

Other Non-Financial Liabilities

4.8 and 7

196,869

519,663

TOTAL LIABILITIES

285,551

519,663

SHAREHOLDERS' EQUITY

Capital stock

452,467

456,722

Paid in capital

72,339,947

72,339,947

Capital Adjustments

7,888,552

8,129,638

Own shares in portfolio

4,255

-

Comprehensive adjustment of shares in portfolio

241,086

-

Cost of treasury stock

(419,801)

-

Earnings Reserved

5,286,245

7,698,479

Reserve

(3,014,227)

(1,652,540)

Other comprehensive income

1,299,265

2,008,049

Net Income for the period

(2,771,582)

(3,354,579)

TOTAL SHAREHOLDERS' EQUITY

81,306,207

85,625,716

TOTAL NET LIABILITIES AND SHAREHOLDERS' EQUITY

81,591,758

86,145,379

 

The accompanying notes and schedules are an integral part of the separate condensed interim financial statements.


57

GRUPO SUPERVIELLE S.A.

SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the nine and three-month period on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Notes

Nine-month period ending on

Three-month period ending on

09/30/2022

09/30/2021

09/30/2022

09/30/2021

Interest income

4.9

611,396

283

414,849

28

Interest expenses

4.10

(2)

(67,337)

-

19,741

Net interest income

611,394

(67,054)

414,849

19,769

Net income from financial instruments at fair value through profit or loss

4.11

361,883

173,038

39,755

96,395

Result from derecognition of assets measured at amortized cost

(2,382)

(39,248)

1,206

(5,420)

Exchange rate difference on gold and foreign currency

206,294

186,713

80,617

22,430

NIFFI and Exchange Rate Differences

565,795

320,503

121,578

113,405

Subtotal

1,177,189

253,449

536,427

133,174

Other operating income

4.12

696,679

538,050

110,641

163,325

Result from exposure to changes in the purchasing power of the currency

(1,641,060)

(716,168)

(663,233)

(247,588)

Net operating income

232,808

75,331

(16,165)

48,911

Personnel expenses

4.13

(31,061)

(67,388)

(10,451)

(23,178)

Administration expenses

4.14

(251,340)

(418,300)

(54,860)

(111,272)

Depreciation and impairment of non-financial assets

(97,338)

(116,815)

(27,552)

(38,938)

Other operating expenses

4.15

(41,894)

(34,566)

(7,692)

(8,787)

Operating income

(188,825)

(561,738)

(116,720)

(133,264)

Profit of subsidiaries and associates

4.16

(2,485,721)

(1,368,262)

(352,387)

(236,703)

Income before taxes

(2,674,546)

(1,930,000)

(469,107)

(369,967)

Income tax

(97,036)

92,800

(93,249)

53,866

Net income for the period

(2,771,582)

(1,837,200)

(562,356)

(316,101)

The accompanying notes and schdules are an integral part of the separate condensed interim financial statements.


58

GRUPO SUPERVIELLE S.A.

SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

EARNING PER SHARE

For the nine and three-month period on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Nine-month period ending on

Three-month period ending on

09/30/2022

09/30/2021

09/30/2022

09/30/2021

NUMERATOR

Net income for the year attributable to owners of the parent company

(2,771,582)

(1,837,200)

(562,356)

(316,101)

PLUS: Diluting events inherent to potential ordinary shares

-

-

-

-

Net income attributable to owners of the parent company adjusted by dilution

(2,771,582)

(1,837,200)

(562,356)

(316,101)

DENOMINATOR

Weighted average of ordinary shares

456,332

456,722

456,722

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

456,332

456,722

456,722

456,722

Basic Income per share

(6.07)

(4.02)

(1.23)

(0.69)

Diluted Income per share

(6.07)

(4.02)

(1.23)

(0.69)

The accompanying notes and schdules are an integral part of the separate separate condensed interim financial statements.


59

GRUPO SUPERVIELLE S.A.

SEPARTE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the nine and three-month period on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Nine-month period ending on

Three-month period ending on

09/30/2022

09/30/2021

09/30/2022

09/30/2021

Net income for the period

(2,771,582)

(1,837,200)

(562,356)

(316,101)

Components of Other Comprehensive Income not to be reclassified to profit or loss

Gains or losses on equity instruments at fair value with changes in OCI (Points 5.7.5 of IFRS 9)

-

-

-

(63,263)

Profit for the period from equity instruments at fair value with changes in OCI

-

-

-

(63,263)

Participation of Other Comprehensive income of associates and joint ventures recorded through the utilization of the participation method

(703,274)

(442,866)

192,195

261,708

Income of the year from the participation of Other Comprehensive income of associates and joint ventures recorded through the utilization of the participation method

(703,274)

(442,866)

192,195

261,708

Total Other Comprehensive Income not to be reclassified to profit or loss

(703,274)

(442,866)

192,195

198,445

Components of Other Comprehensive Loss to be reclassified to profit or loss

Translation difference of Financial Statements

33,788

-

10,065

-

Conversion difference for the period

33,788

-

10,065

-

Gains or losses on financial instruments at fair value with changes in OCI (Point 4.1.2a of IFRS 9)

(39,298)

(31,038)

108,269

39,605

Loss for the year from financial instrument at fair value through other comprehensive income

(54,335)

(46,466)

144,360

55,058

Income tax

15,037

15,428

(36,091)

(15,453)

Total Other Comprehensive Loss to be reclassified to profit or loss

(5,510)

(31,038)

118,334

39,605

Total Other Comprehensive Income

(708,784)

(473,904)

310,529

238,050

Total Comprehensive Income

(3,480,366)

(2,311,104)

(251,827)

(78,051)

The accompanying notes and schdules are an integral part of the separate separate condensed interim financial statements.

.


60

GRUPO SUPERVIELLE S.A.

SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY

For the nine-month period ended on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Item

Capital Stock

(Note 8)

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, 2021

456,722

8,129,638

72,339,947

-

-

-

883,232

6,815,247

(5,007,119)

1,987,017

672

20,360

85,625,716

Acquisition of own shares

(4,255)

(241,086)

-

4,255

241,086

(419,801)

-

-

-

-

-

-

(419,801)

Consideration of results approved by the General Meeting of Shareholders held on April 27, 2022:

Absorption of results

-

-

-

-

-

-

-

(1,992,892)

1,992,892

-

-

-

-

Distribution of dividends

-

-

-

-

-

-

-

(419,342)

-

-

-

-

(419,342)

Net Income for the period

-

-

-

-

-

-

-

-

(2,771,582)

-

-

-

(2,771,582)

Other comprehensive income for the period

-

-

-

-

-

-

-

-

-

(703,274)

33,788

(39,298)

(708,784)

Balance at September 30, 2022

452,467

7,888,552

72,339,947

4,255

241,086

(419,801)

883,232

4,403,013

(5,785,809)

1,283,743

34,460

(18,938)

81,306,207

The accompanying notes and schedules are an integral part of the separate condensed interim financial statements.


61

GRUPO SUPERVIELLE S.A.

SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY

For the nine-month period ended on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Item

Capital Stock

(Note 8)

Capital Adjustments

Paid in capital

Legal reserve

Other reserves

Retained earnings

Other comprehensive income

Total shareholders´ equity

Revaluation of PPE

Earnings or los accrued by financial institutions at FV through profit and loss

Balance at December 31, 2020

456,722

8,129,637

72,339,948

-

-

8,553,278

1,640,562

(28,867)

91,091,280

Impact Adjustment IFRS 9

-

-

-

-

-

(1,654,402)

537,394

29,009

(1,087,999)

Balance at December 31, 2020

456,722

8,129,637

72,339,948

-

-

6,898,876

2,177,956

142

90,003,281

Distribution of results approved by the General Assembly of Shareholders held on April 27, 2021:

Constitution of reserves

-

883,233

6,815,246

(7,698,479)

-

-

-

Distribution of dividends

-

-

-

-

-

(854,799)

-

(854,799)

Reclassification of equity instruments

-

-

-

-

-

2,412

-

44,023

46,435

Net Income for the period

-

-

-

-

-

(1,837,200)

-

(1,837,200)

Other comprehensive income for the period

-

-

-

-

-

(442,866)

(31,038)

(473,904)

Balance at September 30, 2021

456,722

8,129,637

72,339,948

883,233

6,815,246

(3,489,190)

1,735,090

13,127

86,883,813

The accompanying notes and schedules are an integral part of the separate financial statements.


62

GRUPO SUPERVIELLE S.A.

SEPARATE CONDENSED INTERIM STATEMENT OF CASH FLOW

For the nine-month period ended on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

09/30/2022

09/30/2021

CASH FLOW FROM OPERATING ACTIVITIES

Net income for the period before Income Tax

(2,674,546)

(1,930,000)

Adjustments to obtain flows from operating activities:

Results of associates and join ventures

2,485,721

1,368,262

Depreciation and impairment

97,338

116,815

Exchange rate difference on gold and foreign currency

(206,294)

(186,713)

Interests from loans and other financing

(611,396)

(283)

Interest on deposits and financing received

2

67,337

Result from exposure to changes in the purchasing power of the currency

1,641,060

716,168

Net income from financial instruments at fair value through profit or loss

(361,883)

(173,038)

(Increases) / decreases from operating assets:

Other debt securities

(536,551)

1,158,766

Investments in Equity Instruments

-

(23,032)

Other assets

599,361

(180,423)

Increases / (decreases) from operating liabilities:

Other liabilities

(323,015)

(276,314)

Income Tax Payments

(21,410)

-

Net cash provided by / (used in) operating activities (A)

88,387

657,545

CASH FLOW FROM INVESTING ACTIVITIES

Payments:

Dividends paid

(419.342)

(854.799)

Purchase of subsidiaries

(367.360)

(202.517)

Collections:

Sale of liability or equity instruments issued by other entities

-

135,943

Sales of subsidiaries

-

187,474

Dividends collected

1,675,313

1,754,095

Net cash used in investing activities (B)

888,611

1,020,196

CASH FLOWS FROM FINANCING ACTIVITIES

Purchase of liability or equity instruments issued by other entities

(313,502)

-

Repurchase of own shares

(419,801)

-

Net cash used in financing activities (C)

(733,303)

-

Effects of exchange rate changes and exposure to changes in the purchasing power of money on cash and cash equivalents (D)

(858,816)

(186,482)

TOTAL CHANGES IN CASH FLOW

Net increase / (decrease) in cash and cash equivalents (A+B+C+D)

(615,121)

1,491,259

Cash and cash equivalents at the beginning of the period (Note 9)

2,103,872

974,129

Result from exposure to changes in the purchasing power of the currency in cash and equivalents

(575,951)

(342,972)

Cash and cash equivalents at the end of the period (Note 9)

912,800

2,122,416

The accompanying notes and schedules are an integral part of the separate condensed interim financial statements.


63

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of September 30, 2022 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 November 09, 2022.

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 temporary exception of the application of IFRS 9 "Financial Instruments" on debt instruments of the Non-Financial Public Sector

If the impairment model provided for in point 5.5 of IFRS 9 was applied, a reduction net of income tax of approximately 165 million and 82 million would have been recorded in the Group's equity as of September 30, 2022 and December 31, 2021, 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, 2021 (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., applying accounting policies and measurement criteria consistent with those applied for the preparation of the annual financial statements, except as described in Note 1.1.4. of the condensed interim consolidated financial statements.

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.

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.


64

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

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, 2021 and for the period ended September 30, 2021 disclosed in these interim condensed financial statements as of such dates, which were prepared with the regulations in force in said year. Certain figures of these financial statements have been reclassified in order to present the information in accordance with the regulations in force as of September 30, 2022.

It is worth mentioning that, given the restatement of financial statements pursuant to IAS 29 and the provisions of Communication “A” 7211, the Group has applied inflation adjustment of 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 September 30, 2021 and December 31, 2021 in order to record them in homogeneous currency.

Due to the application of point 5.5 of IFRS 9 in IUDÚ Compañía Financiera, explained in note 1.1.4 item II for the purpose of presenting the comparative information with that of the current period, the following has been carried out:

(i) retroactively restate the figures of the Statement of Financial Position as of December 31, 2021 in order to present them as if the new accounting policies had been applied as of January 1, 2021, and

(ii) retroactively restate the figures of the Statement of Income, Statement of Other Comprehensive Income and Statement of Changes in Equity as of September 30, 2021 in order to present them as if the new accounting policies had been applied as of January 1, 2021.

(iii) Incorporate the effect of the application of point 5.5. of IFRS 9 for each period presented. See note 1.1.4 of the condensed interim consolidated financial statements.

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 September 30, 2022:


65

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

(a)Amendments to IFRS 3 “Business Combinations”, IAS 16 “Property, plant and equipment” and IAS 37 “Provisions, contingent liabilities and contingent assets”  

IAS 16, 'Property, plant and equipment (PPE) - income before intended use'

IAS 16 requires that the cost of an asset includes any costs attributable to bringing the asset to the location and condition necessary for it to be able to operate in the manner intended by management. One of those costs is testing whether the asset is working properly.

The amendment to IAS 16 prohibits an entity from deducting from the cost of an item of PP&E any proceeds received from selling items produced while the entity is preparing the asset for its intended use (for example, the proceeds from selling samples produced when testing a machine to see if it is working properly). The proceeds from selling such samples, together with the costs of producing them, are now recognized in profit or loss. An entity will use IAS 2, “Inventory”, to measure the cost of those items. Cost will not include depreciation of the asset being tested because it is not ready for its intended use.

The amendment also clarifies that an entity is “testing whether the asset is working properly” when it assesses the technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment. Therefore, an asset may be able to operate as intended by management and subject to depreciation before it has achieved the level of operating performance expected by management.

The amendment requires entities to separately disclose the amounts of proceeds and costs relating to items produced that are not an output of the entity’s regular activities. An entity shall also disclose the line item in the statement of comprehensive income where the proceeds are included.

IAS 37 “Provisions, contingent liabilities and contingent assets - Onerous contracts – Cost of fulfilling a contract”

lAS 37 defines an onerous contract as one in which the unavoidable costs of meeting the entity’s obligations exceed the economic benefits to be received under that contract. Unavoidable costs are the lower of the net cost of exiting the contract and the costs to fulfill the contract. The amendment clarifies the meaning of “costs to fulfill a contract”.

The amendment explains that the direct cost of fulfilling a contract comprises:

*the incremental costs of fulfilling that contract (for example, direct labor and materials); and

*an allocation of other costs that relate directly to fulfilling contracts (for example, an allocation of the depreciation charge for an item of PP&E used to fulfill the contract).

The amendment also clarifies that, before a separate provision for an onerous contract is established, an entity recognizes any impairment loss that has occurred on assets used in fulfilling the contract, rather than on assets dedicated to that contract.

The amendment could result in the recognition of more onerous contract provisions, because previously some entities only included incremental costs in the costs to fulfill a contract.

IFRS 3 “Business Combinations - Reference to the Conceptual Framework”

The International Accounting Standards Board (“IASB”) has updated IFRS 3, “Business combinations”, to refer to the 2018 Conceptual Framework for Financial Reporting, in order to determine what constitutes an asset or a liability in a business combination. Prior to the amendment, IFRS 3 referred to the 2001 Conceptual Framework for Financial Reporting.

In addition, the IASB added a new exception in IFRS 3 for liabilities and contingent liabilities. The exception specifies that, for some types of liabilities and contingent liabilities, an entity applying IFRS 3 shall instead refer to IAS 37, “Provisions, Contingent Liabilities and Contingent Assets”, or IFRIC 21, “Levies”, rather than the 2018 Conceptual Framework. Without this new exception, an entity would have recognized some liabilities in a business combination that it would not recognize under IAS 37. Therefore, immediately after the acquisition, the entity would have had to derecognize such liabilities and recognize a gain that did not depict an economic Gain.

The IASB has also clarified that the acquirer shall not recognize contingent assets, as defined in IAS 37, at the acquisition date.


66

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

The adoption of this new standard had no impact on the Group's financial statements.

(b)Annual Improvements 2018-2020

Fees included in the 10% test for derecognition of financial liabilities

The amendment to IFRS 9 establishes which fees should be included in the 10% test for derecognition of financial liabilities. Costs or fees could be paid to either third parties or the lender. Under the amendment, costs or fees paid to third parties will not be included in the 10% test.

Illustrative examples accompanying IFRS 16 Leases

Illustrative Example 13 accompanying IFRS 16 is amended to remove the illustration of payments from lessor relating to lease improvements. The reason for the amendment is to remove any potential confusion about the treatment of lease incentives.

Subsidiaries as First-time adopters of IFRS

IFRS 1 grants an exemption to subsidiaries that become a first-time adopter of IFRS after their parent. The subsidiary may measure the carrying amounts of its assets and liabilities that would have been included in the consolidated financial statements of its parent, based on the transition date to IFRS of the parent if no adjustments were made for reasons of consolidation and for the purposes of the business combination by which the parent acquired the subsidiary.

IFRS 1 was amended to allow entities that have taken this IFRS 1 exemption to also measure cumulative translation differences using the amounts reported by the parent, based on the transition date to IFRS of the parent. The amendment to IFRS 1 extends the above-mentioned exemption to cumulative translation differences in order to reduce costs for first-time adopters of IFRS. The amendment will also apply to associates and joint ventures that have taken the same exemption from IFRS 1.

Taxation in fair value measurements

The requirement for entities to exclude cash flows for taxation when measuring fair value measurement under IAS 41 “Agriculture” has been removed. The purpose of this amendment is to align it with the requirement included in the standard to discount cash flows after taxes.

The adoption of this new standard had no impact on the Group's financial statements.

(c)Impairment of value of financial assets

IUDÚ Compañía Financiera has requested authorization from the BCRA to advance the application of point 5.5 of IFRS 9 to the current period. Consequently, the adjustments to equity were made on January 1, 2021:

Provisions recorded in the Financial Statements as of 01/01/2021

(2,109,382)

Provisions in accordance with point 5.5 of IFRS 9 as of 01/01/2021

(3,560,767)

Variation ECL

(1,451,385)

Deferred tax

362,833

Adjustment to previous years

(1,088,552)

IUDÚ Compañía Financiera has opted for the application of the impairment of financial assets from the financial statements corresponding to the period ended September 30, 2022 as indicated in note 1.1.3.

IUDÚ Compañía Financiera, evaluates with a prospective approach the expected credit losses (“PCE”) associated with financial assets measured at amortized cost or at fair value with changes in other comprehensive income, the exposure derived from loan commitments and financial guarantee contracts with the scope established by Communication "A" 6847 of the BCRA.

The most significant assumptions used to estimate PCE as of December 31, 2021 are set out below:


67

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Parameter

Segment

Macroeconomic Variables

Base Scenario

Optimistic scenario

Pessimistic scenario

Default probability

Credit Cards Personal Loans

Salary YoY

50.70%

55.70%

45.60%

EMAE

138

140

136

Pledged Loans

Salary YoY

50.70%

55.70%

45.60%

Inflation Rate

46.80%

41.30%

52.40%

Loss Given Default

Credit Cards Personal Loans

Salary YoY

50.70%

55.70%

45.60%

Pledged Loans

Private Sector Loan YoY

64.10%

70.50%

57.70%

Salary YoY

50.70%

55.70%

45.60%

The weights assigned to each scenario as of September 30, 2022 are set forth below:

Base Scenario

60%

Optimistic scenario

10%

Pessimistic scenario

30%

The following sets forth changes that have not become in force as of September 30, 2022:

(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 Group is evaluating the impact of the application of this new standard.

(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 is evaluating the impact of the application of this new 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


68

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

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 is evaluating the impact of the application of this new standard.

1.3. Key Accounting Polices and Forescasts

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.


69

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

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.

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.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 September 30, 2022 and December 31, 2021:

Portfolio of instruments at 09/30/2022

FV Level 1

FV Level 2

FV Level 3

Assets

Other financial assets

2,424,549

-

-

Other financial assets

239,289

-

-

Total Assets

2,663,838

-

-

Portfolio of instruments at 12/31/2021

FV Level 1

FV Level 2

FV Level 3

Assets


70

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Other Debt securities

688,734

-

-

Other financial assets

1,971,130

-

-

Total Assets

2,659,864

-

-

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 September 30,2022 and December 31, 2021:

Other Financial Instruments as of 09/30/2022

Accounting value

Fair value

FV Level 1

FV Level 2

FV Level 3

Financial Assets

 

 

 

 

 

Cash and due from banks

431,101

431,101

431,101

-

-

Total Assests

431,101

431,101

431,101

-

-

Other Financial Instruments as of 12/31/2021

Accounting value

Fair value

FV Level 1

FV Level 2

FV Level 3

Financial Assets

 

 

 

 

 

Cash and due from banks

724,345

724,345

724,345

-

-

Total Assests

724,345

724,345

724,345

-

-


71

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

3. INVESTMENT IN SUBSIDIARIES AND ASSOCIATES

 Subsidiary

Class

Market Value/Nominal

Number

Issuers’ last Financial Statements

Book value at 09.30.2022

Book value at 12.31.2021

Main Activity

Capital Stock

Shareholders’ equity

Banco Supervielle S.A.

Ord.

1

805,533,007

Commercial Bank

829,564

62,991,166

61,107,075

64,498,002

IUDÚ Compañia Financiera S.A

Ord.

1

32,179,951

Financial Company

643,599

3,820,030

171,234

120,019

Sofital S.A.F.e.I.I.

Ord.

1

20,854,642

Financial operations and administration of securities

21,544

2,969,716

1,885,299

2,029,391

Tarjeta Automática S.A.

Ord.

1

10,720,696

Credit Cards

80,029

70,298

5,521

15,340

Supervielle Asset Management S.A.

Ord.

1

1,336,915

Mutual Fund Management

1,407

869,280

825,816

1,086,902

Espacio Cordial de Servicios S.A.

Ord.

1.000

1,273

Trading of products and services

1,340

543,461

467,634

587,364

Supervielle Seguros S.A.

Ord.

1

1,543,750

Insurance company

1,625

2,408,168

2,288,165

2,473,893

FF Fintech SUPV I

Ord.

-

259,323,725

Financial Trust

118,482

255,265

226,810

193,240

Micro Lending S.A.U.

Ord.

1

132,223,770

Commercial Bank

132,224

486,670

506,902

439,444

Invertir Online

InvertirOnline S.A.U

Ord.

100

2,400

Settlement and Clearing Agent

240

221,806

242,420

325,382

Portal Integral de Inversiones S.A.U

Ord.

0,01

80,451,077

Representations

805

40,637

IOL Holding S.A.

Ord.

1

22,124,500

Financial Company

84,490

84,070

87,694

84,066

Supervielle Productores Asesores de Seguros S.A.

Ord.

1

58,667,288

Insurance Broker

61,599

61,271

58,355

Supervielle Agente de Negociación S.A.U.

Ord.

1.000

55,027

Settlement and Clearing Agent

55,027

277,688

284,692

Dólar IOL S.A.U.

Ord.

3.000

1,500

Services and exchange agency

4,500

8,815

8,816

Total Investments in subsidiaries, associates and joint ventures

68,166,433

72,313,123


72

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

4.COMPOSITION OF THE MAIN ITEMS OF THE SEPARATE STATEMENT OF COMPREHENSIVE INCOME

09/30/2022

12/31/2021

4.1 Cash and due from banks

Cash

-

8

Financial institutions and correspondents

431,101

724,337

431,101

724,345

4.2 Other financial assets

Mutual funds investments

201,377

1,379,527

Other investments

-

591,603

Miscellaneous Debtors

37,912

-

239,289

1,971,130

4.3 Other debt securities

Public securities

2,424,549

688,734

2,424,549

688,734

4.4 Investments in subsidiaries. associates and joint ventures

Banco Supervielle S.A.

61,107,075

64,498,002

IUDÚ Compañia Financiera S.A

171,234

120,019

Sofital S.A.F. e I.I.

1,885,299

2,029,391

Tarjeta Automática S.A.

5,521

15,340

Supervielle Asset Management S.A.

825,816

1,086,902

Espacio Cordial de Servicios S.A.

467,634

587,364

Supervielle Seguros S.A.

2,288,165

2,473,893

FF Fintech SUPV I

226,810

193,240

Micro Lending S.A.U

506,902

439,444

Portal Integral de Inversiones S.A.U

242,420

325,382

Supervielle Broker de Seguros S.A.

58,355

60,192

Supervielle Agente de Negociación S.A.U.

284,692

387,121

Dólar IOL S.A.U.

8,816

12,767

IOL Holding S.A.

87,694

84,066

68,166,433

72,313,123

4.5 Property. plant and equipment

Vehicles

-

3,020

-

3,020

4.6 Intangible Assets

Goodwill – Businness combination

8,402,959

8,402,959

Relations with clients

1,276,595

1,359,253

Brand

501,346

501,346

Proprietary Software & Technology

-

14,406

10,180,900

10,277,964

4.7 Other non-financial assets

Retirement insurance

81,148

93,299

Other non-financial assets

16,854

50,372

98,002

143,671

4.8 Other non-financial liabilities

Compensation and social charges payable

6,767

7,328

Miscellaneous creditors

190,102

512,335

196,869

519,663


73

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Nine-month period ended

Three-month period ended

09/30/2022

09/30/2021

09/30/2022

09/30/2021

4.9. Interest income

Earned interests

238

283

4

28

Profit by government securities measure at amortized cost

611,158

-

414,845

-

611,396

283

414,849

28

4.10. Interest income

Interest paid for overdraft

2

-

-

-

Holding Result - Public Securities valued at cost

-

67,337

-

(19,741)

2

67,337

-

(19,741)

4.11. Net from financial instruments at fair value through profit or loss

Interest earned on Fixed Term Deposits

78,042

29,210

-

29,210

Holding Result - CIF

283,841

143,828

39,755

67,185

361,883

173,038

39,755

96,395

4.12. Other operating income

Subsidiaries’ advisory fees

339,515

380,956

93,495

114,733

Royalties

2,109

2,266

582

714

Other income

316,470

41,265

-

41,265

Revaluation of retirement insurance contributions

30,275

46,887

13,061

3,347

Income from technology solutions

-

55,319

-

-

Foreign source commissions

8,310

11,357

3,503

3,266

696,679

538,050

110,641

163,325

4.13. Personnel expenses

Personnel expenses

31,061

67,388

10,451

23,178

31,061

67,388

10,451

23,178

4.14. Administration expenses

Bank expenses

380

718

100

186

Professional fees

76,488

77,256

9,619

8,380

Fees to directors and syndics

126,483

288,860

33,618

89,653

Taxes. rates and contributions

12,401

9,281

4,044

2,790

Insurance

178

221

-

-

Expenses and office services

5,770

11,367

1,149

2,149

Other expenses

29,640

30,597

6,330

8,114

251,340

418,300

54,860

111,272

4.15. Other operating expenses

Turnover tax from Service Activities

17,081

21,928

4,704

5,774

Turnover tax from Financial Activities

20,240

5,110

2,988

3,013

Tax Bs. Personal Shares and Participations Soc

4,560

7,527

-

-

Cmpensatory interest

13

1

-

-

41,894

34,566

7,692

8,787

4.16. Results from associates and joint ventures

Results from equity investment in Banco Supervielle S.A

(2,607,557)

(491,509)

(170,913)

(316,619)

Results from equity investment in IUDÚ Compañía Financiera S.A.

(210,568)

(1,597,515)

(498,287)

(247,497)

Results from equity investment in Tarjeta Automática S.A.

(326,289)

(425,056)

(5,902)

(149,366)

Results from equity investment in Supervielle Asset Management S.A.

552,427

638,357

85,879

244,411

Results from equity investment in Espacio Cordial de Servicios S.A.

(122,168)

(44,498)

22,960

31,518

Results from equity investment in Supervielle Seguros S.A.

493,906

647,666

270,979

160,575

Results from equity investment in Sofital S.A.F. e I.I.

(140,775)

37,076

(64,199)

23,905

Results from equity investment in Micro Lending S.A.U.

67,458

51,658

(24,839)

44,193

Results from equity investment in InvertirOnline S.A. e Portal Integral de Inversiones S.A.

(157,453)

(15,116)

15,635

(5,241)

Results from equity investment in FF Fintech S.A.

31,280

(84,809)

47,565

(20,248)

Results from equity investment in Supervielle Productores Asesores de Seguros S.A.

(1,837)

(22,450)

(7,983)

7,245

Results from equity investment in Bolsillo Digital S.A.U.

-

(59,701)

-

(8,576)

Results from equity investment in Supervielle Agente de Negociación S.A.U.

(1,238)

3,900

(3,423)

836

Results from equity investment in Dólar IOL S.A.U.

(3,952)

(6,265)

(1,042)

(1,839)

Results from equity investment in IOL Holding S.A.

(58,955)

-

(18,817)

-


74

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Nine-month period ended

Three-month period ended

09/30/2022

09/30/2021

09/30/2022

09/30/2021

(2,485,721)

(1,368,262)

(352,387)

(236,703)

5.RESTRICTED ASSETS

As of September 30, 2022 and December 31, 2021, the Group does not hold restricted assets,

6.COMPANIES UNDER SECT, 33 OF CORPORATE LAW AND OTHER RELATED COMPANIES

As of  September 30, 2022 and December 31, 2021, corporations where Grupo Supervielle S.A. holds direct or indirect shares, and with which it consolidates its Financial Statements are the following:

Company

Condition

Legal Adress

Principal Activity

Percentage of direct participation

Percentage of direct and indirect participation

09/30/2022

12/31/2021

09/30/2022

12/31/2021

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%

87.50%

99.91%

99.99%

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 09/30/22 and 12/31/21

In accordance with the resolution of the Board of Directors on March 3, 2021, Grupo Supervielle S.A. made a contribution to Play Digital S.A. of $ 6,832,612 on March 4, 2021 to subscribe 5,641,254 book-entry ordinary shares, with a par value of $ 1 and with the right to 1 vote per share.

In accordance with what was resolved by the Board of Directors on February 22, 2021, on March 4, 2021 Grupo Supervielle S.A. made a contribution to Bolsillo Digital S.A.U for $ 29,000,000, which was capitalized on the same


75

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

date, increasing the capital stock in the amount of $ 29,000,000, raising it from $ 68,100,000 to $ 97,100,000, through the issuance of 29,000,000 non-endorsable nominative ordinary shares with a par value of $ 1 each and with the right to 1 vote per share.

In accordance with what was resolved the Board of Directors on April 22, 2021, on April 30, 2021 Grupo Supervielle SA subscribed and integrated 28,572,291 ordinary, nominative, non-endorsable shares, with a par value of $ 1 each and one vote per share of Supervielle Productores Asesores de Seguros SA, accompanying the capital increase in proportion to its shareholding.

As resolved by the Board of Directors on September 28, 2021, Banco Supervielle S.A. subscribed and paid in 28,174,544 ordinary book-entry shares of $1 par value and with the right to 1 vote per share of Play Digital S.A. As of December 31, 2021, the participation of Banco Supervielle S.A. at Play Digital S.A. amounts to 3.51% of the share capital and votes.

As resolved by the Board of Directors on August 2, 2021, on August 23, 2021 Grupo Supervielle S.A. acquired 95% of the shares of IOL Holding S.A., a company based in the Oriental Republic of Uruguay whose objective is to nuclear shareholdings in other companies dedicated to providing stock market services at the regional level.

In accordance with the resolutions of the Board of Directors dated November 24, 2021, Grupo Supervielle S.A. made an irrevocable capital contribution to IUDU Compañía Financiera S.A of $25,000,000 through the issuance of 1,605,985 ordinary, registered, non-endorsable shares with a nominal value of $1 each and with the right to 1 vote per share, with a premium of issuance of $14.5667734 per share.

In accordance with the resolutions of the Board of Directors dated November 29, 2021, Grupo Supervielle S.A. made a capital contribution to IOL Holding S.A. for the sum of US$ 500,000 to be applied to working capital and investments, in line with what was considered by the Board of Directors at its meeting on August 2, 2021.

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 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%.


76

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

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.

The following describes Controlled Companies’ shareholders’ equity and results:

As of September 30, 2022 – In thousands of pesos

Company

Assets

Liabilities

Shareholders’ equity

Net income

Banco Supervielle S.A. (1)

542,933,129

479,745,752

62,991,166

(2,815,978)

IUDÚ compañía Financiera S.A(1)

21,412,479

17,592,449

3,820,030

(3,829,216)

Tarjeta Automática S.A.

441,449

371,151

70,298

(695,858)

Supervielle Asset Management S.A.

1,165,280

296,000

869,280

633,287

Sofital S.A. F. e I.I.

2,973,814

4,098

2,969,716

(37,162)

Espacio Cordial de Servicios S.A.

791,798

248,337

543,461

(149,609)

Micro Lending S.A.U.

599,261

112,591

486,670

52,622

Portal Integral de Inversiones S.A.U. (3)

67,052

26,415

40,637

(7,149)

InvertirOnline S.A.U.

12,050,734

11,828,928

221,806

(136,648)

IOL Holding S.A. (3)

84,425

355

84,070

(420)

Supervielle Seguros S.A. (2)

4,987,356

2,579,188

2,408,168

274,142

Supervielle Productores Asesores de Seguros S.A.

187,406

126,135

61,271

(1,930)

Bolsillo Digital S.A.U.

215,526

161,682

53,844

(140,961)

Supervielle Agente de Negociación S.A.U.

351,399

73,711

277,688

(2,122)

Dólar IOL S.A.U.

9,382

567

8,815

(3,952)

(1)The net equity and the net result attributable to the owners of the parent company are reported.
(2)The result is reported for three months.
(3)Balances are reported as of December 31, 2021

As of December 31, 2021 – In thousands of pesos

Company

Assets

Liabilities

Shareholders’ equity

Net income

Banco Supervielle S.A. (1)

630,185,863

560,537,183

69,377,450

(1,569,222)

IUDÚ Compañia Financiera S.A

31,289,091

25,864,516

5,424,575

(2,712,027)

Tarjeta Automática S.A.

752,144

734,613

17,531

(560,123)

Supervielle Asset Management S.A.

1,683,481

539,376

1,144,105

908,113

Sofital S.A. F. e I.I.

3,116,502

2,909

3,113,593

(37,267)

Espacio Cordial de Servicios S.A.

1,030,514

337,444

693,070

(55,111)

Micro Lending S.A.U.

658,272

224,224

434,048

102,597

Portal Integral de Inversiones S.A.U.

67,052

26,415

40,637

(7,149)

InvertirOnline S.A.U.

15,025,487

14,741,525

283,962

(74,804)

IOL Holding S.A.

84,425

355

84,070

(420)

Supervielle Seguros S.A. (2)

5,430,286

2,803,465

2,626,821

445,678

Supervielle Productores Asesores de Seguros S.A.

207,718

144,517

63,201

(34,887)

Bolsillo Digital S.A.U.

292,841

141,203

151,638

(103,872)

Supervielle Agente de Negociación S.A.U.

411,371

24,250

387,121

2,260

Dólar IOL S.A.U.

15,199

2,431

12,768

(8,065)

(1)Corresponds to the Shareholders´Equity and Net Income attributable to parent company.
(2)The result is reported for nine months.

As of  September 30,2022 and December 31, 2021, balances with Grupo Supervielle S.A‘s controlled are as follows:

Assets

09/30/2022

12/31/2021

Cash and due from banks

Banco Supervielle S.A.

2,026

4,679

InvertirOnline S.A.U. Cta. Cte.

35

643

2,061

5,322

Other debt securities

Fixed term - IUDU Financial Company

-

591,603

-

591,603

Other financial assets

Banco Supervielle S.A.

32,480

-

Tarjeta Automática

77

-

Espacio Cordial Servicios S.A.

157

-

IUDÚ Compañía Financiera S.A.

2,599

-

35,313

-

Liabilities

Other non-financial liabilities

Debt with subsidiaries - IOL Holding

97

111

97

111

As of September 30, 2022 and 2021, results with Grupo Supervielle S.A‘s controlled are as follows:

09/30/2022

09/30/2021

Results

Interest income

Interests from current accounts – Banco Supervielle S.A.

3

4

Interests from current accounts – IUDÚ

145

-

Interest on paid account– IOL

90

279


78

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

238

283

Other operating income

Banco Supervielle S.A.

311,662

349,717

Sofital S.A.F. e I.I.

255

282

Supervielle Asset Management S.A.

2,519

2,823

Tarjeta Automática S.A.

743

828

IUDÚ Compañía Financiera S.A.

24,935

27,983

Espacio Cordial de Servicios S.A.

1,509

1,589

341,623

383,222

Administrative expenses

Bank expenses – Banco Supervielle S.A.

71

210

Rent – Banco Supervielle S.A.

3,015

7,016

Legal and accounting consultancy services

696

1,133

Fees for market operations - InvertirOnline S.A.U.

1691

188

Fees for market operations - SAN

787

-

6,260

8,547

Net income from financial instruments at fair value through profit or loss

Interest from time deposits– IUDÚ Compañía Financiera

78,042

29,210

78,042

29,210

7.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 September 30, 2021 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

239,289

37,141

-

196,869

88,682

2nd. Quarter

-

20,287

-

-

-

3rd. Quarter

-

20,287

-

-

-

4th. Quarter

-

20,287

-

-

-

Over a year

-

-

51,484

-

-

Subtotal to mature:

239,289

98,002

51,484

196,869

88,682

Matured term

Total

239,289

98,002

51,484

196,869

88,682

At fixed rate

-

-

-

-

-

At floating rate

201,377

-

-

-

-

Not accrue interest

37,912

98,002

51,484

196,869

88,682

Total

239,289

98,002

51,484

196,869

88,682

8.CAPITAL STOCK

As of  September 30, 2022 and December 31, 2021, the corporate capital stock is the following:

Capital Stock

Nominal Value

Capital stock as of 09/30/2022

452,467

Capital stock as of 12/31/2021

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.


79

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

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 the date of issuance of these financial statements, Grupo Supervielle proceeded to repurchase 8,087,385 Class B ordinary shares for 735,674.

9.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:

09/30/2022

12/31/2021

09/30/2021

12/31/2020

Cash and due from banks

431,101

724,345

863,288

180,895

Other financial assets

201,377

1,379,527

1,259,128

793,234

Other debt securities

280,322

-

-

-

Cash and cash equivalents

912,800

2,103,872

2,122,416

974,129

Reconciliation between the balances of the Statement of Financial Position and those items considered cash equivalents in the Cash Flow Statement:

Item

09/30/2022

12/31/2021

09/30/2021

12/31/2020

Cash and due from Banks

As per Statement of Financial Position

431,101

724,345

863,288

180,895

As per the Statement of Cash Flows

431,101

724,345

863,288

180,895

Other financial assets

As per Statement of Financial Position

239,289

1,971,130

1,693,119

796,711

Other financial assets not considered as cash equivalents

(37,912)

(591,603)

(433,991)

(3,477)

As per the Statement of Cash Flows

201,377

1,379,527

1,259,128

793,234

Other financial assets

As per Statement of Financial Position

2,424,549

688,734

719,661

1,884,127

Other debt securities not considered as cash equivalents

(2,144,227)

(688,734)

(719,661)

(1,884,127)

As per the Statement of Cash Flows

280,322

-

-

-

10.SUBSEQUENT EVENTS

There are no events or operations that occurred after September 30, 2022 in addition to those disclosed in these financial statements that may significantly affect the financial position or results of the Group as of the closing date of this period.


80

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE A – OTHER DEBT SECURITIES

Item

HOLDING

Balance at 09/30/2022

Balance at 12/31/2021

Argentine

Measured at fair value with changes in ORI

Argentine National Bonus TV22

-

688,734

National Treasury bill in pesos adj.CER X16D2

280,322

-

National Treasury bill in pesos adj.CER X19Y3

2,144,227

-

Total other debt securities

2,424,549

688,734

Total

2,424,549

688,734


81

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT

Item

Gross carrying amount

Depreciation

Net carrying amount

At the beginning of the year

Increases

Disposals

At the end of the year

At the beginning of the year

Aliquot

Disposals

Of the period

At the end of the year

09/30/2022

12/31/2021

Vehicles

8,237

-

(8,237)

-

(5,217)

5,491

(274)

-

-

3,020

Total

8,237

-

(8,237)

-

(5,217)

5,491

(274)

-

-

3,020


82

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 year

Increases

Disposals

At the end of the year

At the beginning of the year

Useful life

Disposals

Of the period

At the end of the year

09/30/2022

12/31/2021

Goodwill

8,402,959

-

-

8,402,959

-

-

-

-

8,402,959

8,402,959

Relations with clients

1,763,354

-

-

1,763,354

(404,102)

-

(82,657)

(486,759)

1,276,595

1,359,252

Brand

501,346

-

-

501,346

-

-

-

-

501,346

501,346

Proprietary Software & Technology

172,878

-

-

172,878

(158,471)

-

(14,407)

(172,878)

-

14,407

Total

10,840,537

-

-

10,840,537

(562,573)

-

-

(97,064)

(659,637)

10,180,900

10,277,964


83

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 09/30/2022

As of 09/30/2022 (per currency)

As of 12/31/2021

Dollar

ASSETS

 

 

 

 

Cash and Due from Banks

370,013

370,013

370,013

720,659

Other financial assets

140,794

140,794

140,794

490,005

Other non-financial assets

81,147

81,147

81,147

93,299

TOTAL ASSETS

591,954

591,954

591,954

1,303,963

LIABILITIES

Other non-financial liabilities

140,794

140,794

140,794

490,005

TOTAL LIABILITIES

140,794

140,794

140,794

490,005

NET POSITION

451,160

451,160

451,160

813,958


84

Grupo Supervielle S.A.

INFORMATIVE REVIEW AS OF SEPTEMBER 30, 2022

(in thousands of pesos)

Brief description of the business and evolution of operations

The Company is focused on gaining a leading position in the local financial business by offering innovative, inclusive and accessible financial services, Its strategy, deployed by its different companies (banking and non-banking) enables the access to every population segment with the required product offer, service model and risk/reward relationship required.

The result for the year ended September 30, 2022, shows a loss of 3,065,806, which represents a negative average return on equity of 4.8%. Said result originated mainly from the results of our investments in companies.

On April 27, 2022 the Annual Ordinary Shareholders' Meeting held approved the financial statements as of December 31, 2021 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 optional reserve.

Likewise, the partial reversal of the optional reserve set up for the distribution and payment of dividends was approved. Pursuant to the board meeting held on May 5, 2022, it was decided to approve the payment of cash dividends for 419,342.

Grupo Supervielle S.A. is the parent company of the economic group and As of September 30,2022 and December 31,2021, recorded the following direct and indirect equity investments in its subsidiaries:

Company

Main Activity

Interest in capital stock

09/30/2022

12/31/2021

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%


85

Grupo Supervielle S.A.

Informative Review as of SEPTEMBER 30, 2022

(in thousands of pesos)

Brief description of Related Companies

Grupo Supervielle is a public limited company incorporated in the Argentine Republic in 1979 that operates as a financial services holding company and lists and trades its shares since May 19, 2016 on the Argentine Stock Exchanges and Markets (BYMA) and on the Argentine Stock Exchange. New York (NYSE).

Grupo Supervielle has a history of more than 130 years in Argentina providing financial and non-financial services to its clients. Focused on transforming and facilitating your experiences, it offers agile solutions and adapts to permanent changes. Grupo Supervielle brings together multiple platforms and brands such as Banco Supervielle S.A., the 8th largest private bank in Argentina in terms of loans and the 11th largest by adding public banks; IUDÚ Compañía Financiera, a comprehensive financial services company with a growing digital offering; Tarjeta Automática S.A., a distribution network for consumer financing mainly in the south of Argentina; Micro Lending (MILA), a company specialized in the financing of pledge loans for the purchase of automobiles; Espacio Cordial de Servicios, a marketer of retail products, assistance/services and tourism; Supervielle Seguros, an insurance company; Supervielle Productores Asesores de Seguros, an insurance broker; Supervielle Asset Management, a mutual fund management company; IOL Invertironline, a broker specializing in online trading; Supervielle Agente de Negociación S.A.U., a trading agent aimed at institutional and corporate clients; Bolsillo Digital SA, a company that provides payment solutions to retailers with Mobile POS and mobile wallet products through its Boldi brand. Thus, it forms a diverse ecosystem with a shared vision where the centrality of the client and digital transformation constitute its backbone. Finally, the portfolio of companies of the holding company is completed by a company whose main activity is holding shares in the same companies of Grupo Supervielle, Sofital S.A.F.e I.I.

Grupo Supervielle is accelerating transformation initiatives in all its service channels, moving towards omnichannel. This includes the development of a modern technological architecture, the evolution of its bank branch model and the incorporation of APIs to connect with third parties and prepare for Open Banking, while advancing in improving the customer experience.

As of December 31, 2021, Grupo Supervielle's infrastructure is supported by a strategic national presence through 298 access points, including 184 bank branches, 10 bank sales and collection centers, 79 IUDÚ Compañía Financiera sales points, 20 Tarjeta Automática branches, 5 Mila branches (in addition to its network of more than 500 related concessionaire agencies), 450 ATMs, 230 self-service terminals and 298 Supervielle ATMs with integrated biometrics and without the use of a password or card. Likewise, Grupo Supervielle offers solutions through its digital channels, applications and solutions developed for different business segments, and also offers products and services through its digital attacker platforms to clients located throughout the country.

As of  September 30, 2022, Banco Supervielle S.A. It has assets of 542,933,129 and equity attributable to the owners of the parent company of 62,991,166. The net result attributable to the owners of the parent company as of September 30, 2022 was negative 2,815,978, which originated mainly from the financial margin and the service margin.rgin and the service margin.

IUDÚ Compañia Financiera S.A,, is a financial service firm, subject to regulations issued by the Central Bank of the Argentine Republic, whose main business is made up by credit card and loan granting and the sale of insurance policies in Walmart Argentina’s outlets. As of September 30 2021, recorded negative results of 3,829,216. On November 2, 2020, the Extraordinary Assembly of IUDÚ Compañia Financiera S.A, resolved, among other things, to reform the bylaws including the modification of the name of the Company to “IUDÚ Compañía Financiera S.A.”. By Resolution No, 3/2021 of the B.C.R.A, no objections were made to the aforementioned change of company name, On April 19, 2021, said change was registered with the General Inspection of Justice.

Tarjeta Automática S.A.’s main activity includes the issuance and administration of credit cards and consumer loans. The year ended on September 30, 2022, recorded negative results of  695,858. In November 2012, Tarjeta Automática started to market credit cards, personal loans and insurance policies on account and behalf of IUDÚ Compañia Financiera S.A, collecting a monthly fee for such services.

Supervielle Asset Management S.A. is focused on the promotion, instruction and administration of investment mutual funds pursuant to Law 24,083, its Ruling Decree and any other legal or ruling standard addressing such activities. As of September 30, 2022, earnings amounted to 633,287.

Sofital S.A.F. e I.I. is a company whose main activity includes financial operations and the administration of marketable securities, As of September 30, 2022, earnings amounted to 37,162.

Espacio Cordial de Servicios S.A. is a company focused on the trading of all kinds of goods and services related to insurance, tourism, health plans and/or services and other goods and services. As of September 30, 2022, recorded negative results of 149,609.

Supervielle Seguros S.A., the insurance company of Grupo Supervielle S.A., records shareholders equity for 1,749,539 and assets for 2,408,168. As of September 30, 2022, earnings amounted to 274,142.


86

Micro Lending S.A.U, is specializes in the financing of pledge credits, particularly used cars. As of September 30, 2021, recorded a profit results of 52.622.

InvertirOnline S.A.U, is a specialized online trading platform, which occupies a leading position among the top five in the online Broker segment in Argentina, and a reference in the Fintech sector in the country. As of  September 30,2022 InvertirOnline S.A.U obtained  negative results of 136,648 and Portal Integral de Inversiones S.A.U, recorded a negative result of 7,149 as December 31,2021.

Bolsillo Digital S.A.U, is a company dedicated to the commercialization of products and services related to the management and processing of payments. As of September 30, 2022, recorded a negative result of 140,960.

Supervielle Agente de Negociación S.A.U.  is a company whose main activity is to engage on its own account or on behalf 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 September 30, 2022, it presented a profit  of 2,122.

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, property and social security contracts, advising insured and insurable. As of September 30, 2022, it presented a profit  of 1,930.

Dólar IOL S.A.U. is a company that provides home and exchange agency services. As of September 30, 2022, it obtained negative result of 3,952.

IOL Holding S.A. is a company that brings together shareholdings in other companies dedicated to providing stock services at a regional level. As of December 31, 2021, it obtained a negative result of 420.


87

Grupo Supervielle S.A.

Informative Review as of SEPTEMBER 30, 2022

(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

09/30/2022

12/31/2021

12/31/2020

12/31/2019

Total Assets

562,812,490

648,388,281

626,481,956

509,941,318

Total Liabilities

481,736,094

562,694,538

535,317,885

427,325,635

Changes in Shareholders’ Equity

81,076,396

85,693,743

91,164,071

82,615,683

Total Liabilities plus Changes in Shareholders’ Equity

562,812,490

648,388,281

626,481,956

509,941,318

Income Statement

09/30/2022

09/30/2021

12/31/2020

12/31/2019

Net income from interest

56,114,093

53,364,050

70,010,034

18,016,108

Net income from commissions

15,598,716

17,142,709

18,347,239

19,947,591

Net income before income tax

(2,355,906)

(1,901,099)

8,512,172

(7,441,056)

Total comprehensive income attributable to owners of the parent company - Earnings

(3,774,590)

(2,264,668)

7,410,599

(8,254,439)

Consolidated Cash Flow Statement

09/30/2022

09/30/2021

12/31/2020

12/31/2019

Total operating activities

(10,305,575)

(10,102,222)

8,511,676

(21,603,126)

Total investment activities

(4,774,614)

(3,533,961)

(4,093,289)

(3,292,643)

Total financing activities

(9,643,952)

(13,618,069)

(28,091,028)

(15,041,310)

Effect of changes in exchange rate

8,031,267

21,113,258

37,404,218

111,795,126

Net increase in cash and cash equivalents

(16,692,874)

(6,140,994)

13,731,576

71,858,048


88

Grupo Supervielle S,A,

Informative Review as of September 30, 2022

(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)

09/30/2022

12/31/2021

12/31/2020

12/31/2019

 

Liquidity

9.40%

15.51%

22.09%

31.45%

- Cash and cash equivalents (1)

40,213,642

74,282,129

98,932,345

95,530,550

- Deposits

428,013,979

479,052,479

447,808,146

303,757,445

 

 

 

 

 

Solvency

16.83%

15.23%

17.03%

19.33%

- Shareholders Equity

81,076,396

85,693,743

91,164,071

82,615,683

- Total Liabilities

481,736,094

562,694,538

535,317,885

427,325,635

 

 

 

 

 

Immobilization of Capital

11.27%

9.47%

9.78%

10.08%

-Immobilized Assets (2)

63,420,617

61,382,830

61,277,466

51,399,575

-Total Assets

562,812,490

648,388,281

626,481,956

509,941,318

(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.


89

Grupo Supervielle S,A,

informative review as of SEPTEMBER 30, 2022

(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 79,9% of Grupo Supervielle S,A,’s assets, being the main assets of the Group,

95,41% 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 2023, Grupo Supervielle plans to continue contributing with its credit generation to the growth and evolution of the Argentine economy.


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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: December 6, 2022

By:

/s/ Mariano Biglia

 

 

 

 

Name:

Mariano Biglia

 

 

 

Title:

Chief Financial Officer