Grupo Supervielle Q2 Earnings Call Highlights

Grupo Supervielle returned to profitability in Q2 2026, reporting ARS 13 billion in attributable net income versus an ARS 18 billion loss in Q1. Adjusted net income reached ARS 36 billion, helped by stronger net financial income, lower inflation adjustments and improving credit costs. The workforce-reduction program cut 553 jobs in the first half and is expected to generate about ARS 42 billion in annualized personnel savings , with the full quarterly benefit beginning in Q3. However, management expects net interest margins to decline from Q2’s 20.3% as corporate loans reprice. Management lowered 2026 real loan-growth expectations to 10%–15% but cited improving credit trends, including a lower NPL ratio and cost of risk. Growth will focus on payroll and premium retail customers, strategic corporate sectors such as energy and mining, and financing opportunities linked to Argentina’s RIGI investment projects. Grupo Supervielle NYSE: SUPV reported a return to profitability in the second quarter of 2026, supported by stronger net financial income, lower inflation adjustment and early improvement in credit costs, while the Argentine financial group said its workforce-reduction program has largely been completed. Attributable net income totaled ARS 13 billion in the second quarter, compared with a loss of ARS 18 billion in the first quarter, according to Chief Financial Officer Mariano Biglia. Excluding ARS 23 billion of after-tax extraordinary severance charges, adjusted net income was ARS 36 billion and adjusted return on equity was 12.4%. Management said the completed rightsizing program would further improve the group’s underlying earnings capacity. After including a full quarter of salary savings, structural net income would have been ARS 42 billion, equivalent to a structural ROE of 14.4%, Biglia said. Rightsizing Program Near Completion The company reduced its workforce by 553 employees in the first half, including 262 during the second quarter. Banco Supervielle CEO Gustavo Paco Manriquez said annualized personnel savings are about ARS 42 billion, with the full quarterly benefit expected to begin in the third quarter. Biglia said the savings should be reflected in reported expenses and income during the third and fourth quarters. However, he also cautioned that lower funding costs that lifted margins in the second quarter are unlikely to provide the same benefit in the second half as assets reprice. Chairman and CEO Patricio Supervielle said the voluntary retirement program did not disrupt service levels, adding that the company’s net promoter score continued to improve. He said the efficiency agenda would remain ongoing, although investors should not expect another cost-reduction step of the magnitude seen in the first half. Margins Rise, but Management Sees Second-Half Pressure Net financial income increased 8% sequentially to ARS 295 billion. Net interest margin expanded 250 basis points from the prior quarter to 20.3%, exceeding the company’s full-year guidance at the time, as funding costs fell faster than yields on interest-earning assets. Management updated its 2026 net interest margin outlook to a range of 17% to 19%. Biglia said the margin should decline from the second-quarter level as corporate loans, which make up almost two-thirds of the loan portfolio, reprice more quickly than retail loans. The company said changes in its deposit mix were largely tactical. Biglia said the shift toward institutional deposits came primarily from corporate balances rather than retail or small- and medium-sized enterprise deposits, and was intended to optimize funding costs and duration. The broader strategy of building tran...