SUPV

Business Context and Reporting Period

Company: Grupo Supervielle S.A. (Supervielle Group S.A.)
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Six months ended June 30, 2025
Currency: Argentine Pesos (ARS) in homogeneous currency (thousands)
Core Business: Investment holding company with primary operations in banking (Banco Supervielle S.A.), asset management, insurance, and fintech services. The Group operates in a complex Argentine economic environment characterized by high inflation (15.09% cumulative H1 2025) and exchange rate volatility.

Key Financial Metrics

Material Changes vs. Prior Period

• Significant Profit Decline: Net income attributable to the parent company dropped by approximately 78% year-over-year, from 100.6 billion ARS to 22.0 billion ARS. Operating income similarly decreased from 162.7 billion ARS to 24.5 billion ARS.
• Revenue Composition Shift: Net interest income fell significantly (40% decrease) to 348.6 billion ARS, while Net Service Fee Income increased by 19% to 107.0 billion ARS, driven by growth in insurance and asset management segments.
• Increased Credit Provisions: Loan loss provisions more than doubled to 78.2 billion ARS (from 29.5 billion ARS), reflecting a deterioration in credit quality or increased provisioning standards.
• Balance Sheet Expansion: Total assets grew 15.7% to 6.03 trillion ARS, primarily driven by an increase in loans to the non-financial private sector (up to 2.85 trillion ARS) and deposits (up to 4.16 trillion ARS).
• Exchange Rate Impact: The Group recorded a negative result of 73.8 billion ARS from exposure to changes in the purchasing power of the currency, compared to 257.2 billion ARS in the prior period.

Guidance, Outlook, Risks, and Unusual Items

• Economic Context: The Group operates under a new floating exchange rate regime implemented in April 2025 following an IMF agreement. Inflation reached 15.09% in H1 2025. The peso depreciated from 1,032.50 to 1,194.08 against the USD during the period.
• Public Sector Exposure: Total exposure to the Argentine public sector (Central Bank, Treasury Bills, Loans) is 1.24 trillion ARS, representing 21% of total assets and 133% of shareholders' equity. Note 1.1 states that non-financial public sector debt instruments are temporarily excluded from IFRS 9 impairment provisions.
• Tax Contingencies: A provision of 33.3 billion ARS was established for Turnover Tax (IIBB) contingencies related to operations with Central Bank securities in Buenos Aires City and Province.
• Treasury Stock: The Group holds 18.5 million Class B shares (approx. 4.06% of capital) as treasury stock. The cost of these shares (24.4 billion ARS) restricts the distribution of unallocated earnings and free reserves.
• Outlook: Management plans to continue contributing to credit generation for the Argentine economy in 2026. The outlook depends on the implementation of structural reforms and fiscal discipline.

Investor Verification Checklist

• Public Sector Risk: Verify the sustainability of the 133% equity-to-public-sector-exposure ratio and the potential impact if IFRS 9 impairment rules are fully applied to public debt.
• Credit Quality: Investigate the drivers behind the 165% increase in loan loss provisions and the classification of loans in Stage 2 and Stage 3.
• Inflation Accounting: Confirm the methodology used for restating financial statements in homogeneous currency and its impact on reported profitability.
• Dividend Capacity: Assess the impact of the treasury stock cost restriction (24.4 billion ARS) and regulatory capital requirements on future dividend distributions.
• Segment Performance: Review the divergence between the loss in the "Personal and Business Banking" segment (-56.2 billion ARS) and the profit in "Bank Treasury" (47.8 billion ARS) to understand the Group's reliance on treasury operations.