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
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|
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1. | Financial Statements for the for the period ended on September 30, 2022, presented on comparative basis. |
Consolidated Condensed Interim Financial Statements
For the nine-month period ended on
September 30, 2022, presented on comparative basis
Contents
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)
09/30/2021 | ||
---|---|---|
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)
1.1.1 | Going 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.
1.1.2 | Measuring 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.
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:
IFRS 9 sets forth the following “Three stages” model for the impairment based on changes in the credit quality from initial recognition:
The following chart summarizes the impairment requirements pursuant to IFRS 9 (for financial assets that do not entail impairment on credit value, either purchased or produced:
Changes in the credit quality since initial recognition |
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 | Stage 2 | Stage 3 | ||
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 | Stage 2 | Stage 3 | ||
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 | Stage 2 | Stage 3 | ||
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 |
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% |
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 | 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 | 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) |
| | | | | | | |
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:
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:
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:
For listed assets and the quoted debt, fair value was determined based on market prices.
The following chart includes a comparison between the fair value and the accounting value of financial instruments not recorded at fair value as of 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 | | | |||
Non‑financial public sector | 345,747 | 37,762 | |||
Financial sector | 522,870 | 127,598 | |||
Loans | 553,166 | 170,445 | |||
Less: allowances | (30,296) | (42,847) | |||
Non‑financial 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.
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:
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:
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 |
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
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.
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) |
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) |
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 |
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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
| ||
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| Name: | Mariano Biglia |
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| Title: | Chief Financial Officer |