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 June, 2020

 

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, 5th Floor

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  x            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  x

 

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  x

 

 

 

 

 

 

GRUPO SUPERVIELLE S.A.

 

TABLE OF CONTENTS

 

Item  
1. 1Q20 Grupo Supervielle earings results.

 

 

 

 

 

 

 

 

 

Index    
     
First Quarter 2020 Highlights   6 
Financial Highlights & Key Ratios   9 
Managerial Information. Non-restated figures   10 
Review Of Consolidated Results   13 
Comprehensive Income & Profitability   15 
Comprehensive Income & Profitability Breakdown   16 
Net Financial Income   17 
Result from exposure to changes in the purchasing power of the currency   29 
Net Service Fee Income   30 
Income from Insurance Activities   30 
Loan Loss Provisions   31 
Efficiency, Personnel, Administrative & Other Expenses   33 
Other Operating Income (expenses), net   34 
Other Comprehensive Income, net of tax   34 
Income Tax   34 
Review Of Consolidated Balance Sheet   36 
Total Assets and Investment Portfolio   36 
Loan Portfolio   37 
Risk management   38 
Asset Quality   39 
Funding   42 
Foreign Currency Exposure   45 
Liquidity & Capitalization   45 
Minimum Cash Reserve Requirements   48 
Results By Segment   50 
RELEVANT EVENTS   57 
CREDIT RATINGS   52 
REGULATORY CHANGES   53 
Subsequent Events   64 
Appendix: Definition of ratios   64 
Grupo Supervielle Financial Statements   66 
About Grupo Supervielle S.A.   70 

 

4

 

 

1Q20 Net Income of AR$454 million and Comprehensive net income of AR$405 million, both figures including inflation adjustment effects

 

Buenos Aires, May 28, 2020 - Grupo Supervielle S.A. (NYSE: SUPV; BYMA: SUPV), (“Supervielle” or the “Company”) a universal financial services group headquartered in Argentina with a nationwide presence, today reported results for the three-month period ended March 31, 2020.

 

Starting 1Q20, the Company began reporting results applying Hyperinflation Accounting, in accordance to IFRS rule IAS 29 (“IAS 29”) as established by the Central Bank. For ease of comparison, figures for all quarters of 2019 have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through March 31, 2020. More information can be found in the Section “Hyperinflation Accounting in Argentina” on page 56. This report also includes Managerial figures which exclude the IAS29 adjustment for 1Q20 and present 1Q19, 2Q19, 3Q19 and 4Q19 figures as they were previously reported according to Central Bank Rules until December 31, 2019 and before the adoption of Rule IAS29 this quarter.

 

Details with regard to the Argentine government’s social aid, monetary and fiscal measures to mitigate the economic impact of the COVID-19 pandemic can be found on page 56, while the specific measures taken by Grupo Supervielle in response to the pandemic may be found on page 11.

 

Management Commentary

 

Commenting on first quarter 2020 results, Jorge Ramirez, Grupo Supervielle's CEO, noted: “As we navigate this unprecedented global health and economic crisis, we are focusing on three key strategic areas: protecting the health of our employees and customers, while supporting our communities through donations to social agencies and other initiatives, ensuring operational continuity and accelerating our digital transformation to optimize our customers’ experience. Importantly, our high liquidity and comfortable capitalization levels strengthen our long-term sustainability in a rapidly changing environment.

 

Responding early to the COVID-19 pandemic, we established remote working for over 95% of non-branch employees, rotation of half of our branch staff every two weeks and 100% remote work for some of our subsidiaries, in advance of the mandatory shelter-in-place established by the government on March 19, 2020. Stricter sanitation procedures were set up across our branches that remain open for limited transactions. More recently, as restrictions are being gradually lifted, we have implemented back-to-work protocols for essential employees to safeguard their health and wellbeing.

 

With a focus on supporting our customers, we have rapidly adjusted operations, accelerated digitalization and implemented a series of measures to promote safe banking and provide financial relief. For example, for senior citizens, which are a significant portion of our customer base, we adapted our ATM network infrastructure, we added functionalities to our online applications as well as in transactional channels and updated procedures to facilitate their banking needs. This has translated in a significant increase in the use of digital and automatic transactional channels. We are also supporting SMEs with their payroll and working capital needs through loans promoted by the government; and have launched specific credit lines for SMEs in the health and transportation sectors. On the digital transformation front, we are also adding functionalities across personal and corporate banking, as well as consumer finance to rapidly meet current and future needs.

 

Looking ahead, the path to economic recovery remains uncertain and is largely dependent on the depth and duration of this global health crisis and the government’s measures to contain the outbreak and actions to mitigate the economic impact. The pace of the recovery will also depend on the resolution of the Argentine sovereign debt restructuring, and a combination of all of the above factors will certainly impact the overall system asset quality We will continue to closely monitor our loan portfolio and make adjustments accordingly.

 

In this environment, as I mentioned earlier, we remain focused on implementing the highest possible standards to protect the health of our employees and customers, ensure continuity of our operations and accelerate initiatives, such as the digital transformation process, that will enhance our ability to continue to provide the customized and elevated level of service that distinguishes our Company,”, concluded Mr. Ramirez.

 

5

 

 

 

First Quarter 2020 Highlights

 

PROFITABILITY

 

Profit before income tax of AR$797.0 million in 1Q20 compared to a AR$631.8 million loss in 1Q19 and a AR$928.4 million loss in 4Q19. Excluding the impact of IAS29, Profit before income tax, would have been Ps.1.8 billion in 1Q20 up 137.8% YoY and 72.9% QoQ.

 

QoQ improvement was explained by: i) a 15.2% decrease in Personnel & Administrative Expenses, (ii) a smaller impact of inflation adjustment due to deceleration in inflation in 1Q20 compared to 4Q19, and (iii) an increase in Net Service Fee Income mainly from fees repricing throughout the quarter. These were partially offset by (i) lower Net Financial Income as 4Q19 benefitted from price improvements in reprofiled government short term treasury notes and (ii) higher LLP based on expected losses according to IFRS9.

 

 

 

·Attributable Net income of AR$453.4 million in 1Q20, compared to AR$1.4 billion loss in 1Q19 and AR$759.4 million loss in 4Q19. Excluding the impact of IAS29, Attributable Net income would have been AR$1.5 billion in 1Q20 increasing 148.8% YoY and remaining stable as compared to 4Q19. 1Q20 net income reflects an AR$343.2 million charge in Income Tax compared to an AR$168.6 million gain in 4Q19.

 

 

 

ROAE of 7.7% in 1Q20 compares to -20.1% in 1Q19 and -13.1% in 4Q19. ROAE in 1Q20 benefitted from deceleration in the inflation pace (7.8% in the quarter) compared to ROAE in 4Q19 and 1Q19 when inflation peaked at 11.7% and 11.8% respectively. Excluding the impact of IAS29, ROAE would have been 26.4% in 1Q20 compared to 13.6% in 1Q19 and 28.4% in 4Q19.

 

 

ROAA of 1.0% in 1Q20 compared to -2.2% in 1Q19 and -1.7% in 4Q19. Excluding the impact of IAS29, ROAA would have been 3.5% in 1Q20 compared to 1.5% in 1Q19 and 3.7% in 4Q19.

 

 

 

Revenues were down 8.5% YoY and flat QoQ. Excluding adoption of IAS29, Total revenues would have increased 36.8% YoY and 5.6% QoQ.

 

MARGIN

 

Net Financial Income of AR$7.4 billion was down 11.7% YoY and 13.8% QoQ. In 4Q19, NFI income was AR$1.3 billion benefitted from price improvements in reprofiled short term AR$ and US$ Argentine treasury notes held by Supervielle. Excluding this non recurring income in 4Q19, NFI in 1Q20 would have increased 0.9% mainly explained by a 950 basis points (bps) decrease in AR$ cost of funds following the decline in market interest rates, while interest on loans continued to benefit from additional repricing in personal loans, partially offset by a 2,600 bps decrease in the average yield of the Central Bank 7 days Leliqs, from 68.7% to 42.4%. Excluding the impact of IAS29, Net Financial Income, would have been Ps. 7.2 billion in 1Q20 increasing 32.1% YoY but down 5.5% QoQ. Excluding non recurring income in 4Q19, comparable non restated NFI figures would have reflected a 10.7% increase QoQ.

 

Net Interest Margin (NIM) of 22.8% was up 388 bps YoY, but declined 592 bps QoQ. Excluding the price improvement impact of reprofiled short term Argentine treasury notes held by Supervielle in 4Q19, NIM would have decreased 180 bps in the quarter. This decrease reflects the strong increase in assets, mainly driven by: i) an increase in holdings of Central Bank Leliqs by raising wholesale deposits to take advantage of higher spreads on Leliqs; and ii) the abovementioned 2,600 bps decline in the average yield of the Central Bank Leliqs. These effects were partially offset by the 950 bps decrease in AR$ cost of funds following the decline in market interest rates, and the continued lagged repricing of the AR$ portfolio. AR$ Loan portfolio NIM in the quarter was 30.0% compared to 28.3% in 4Q19.

 

 

6

 

 

 

 

 

Note: In 1Q20 and 4Q19, AR$3.8 billion and AR$1.3 billion yield from investments in 7-day Central Bank securities had been recorded in NII since the Company changed in October 2019, the classification of these securities into “at Fair value through other comprehensive income”. 4Q19 NIFFI account, still recorded AR$1.4 billion of these securities yield before the change in classification was made.

 

ASSET QUALITY

 

The total NPL ratio increased by 140 bps YoY but declined 70 bps QoQ to 6.7% in 1Q20. QoQ performance was explained by a 80 bps decrease in Personal and Business Segment NPL and 720 bps decrease in Consumer Finance NPL. QoQ decline benefitted from Central Bank regulatory easing amid the pandemic on debtor classifications (adding a 60 days grace period before the loan is classified as NPL) and the suspension of mandatory reclassification of customers that are non performing with other banks, but performing with Supervielle.

 

Loan loss provisions (LLP) totaled AR$1.6 billion in 1Q20, decreasing 45.4% YoY but increasing 32.0% QoQ. In 1Q20, levels of provisioning reflect expected losses arising from adoption of Central Bank implementation of IFRS9 rule, effective on January 1, 2020 except for consumer finance segment, but includes only a non-material amount for a Covid-19 potential impact.. The coverage ratio increased to 99.6%, from 83.0% in 4Q19, due to increased loan loss provisions in the quarter and benefitting from the above mentioned regulatory easing. As of March 31, 2020 collateralized non-performing commercial loans increased to 61% of total, from 58% as of December 31, 2019 and 20% as of June 30, 2019.

 

 

 

 

 

EXPENSES & EFFICIENCY

 

Efficiency ratio was 60.4% in 1Q20 declining 410 bps from 1Q19 and 1,600 bps from 4Q19. Excluding non-recurring severance and early retirement charges of AR$880 million in 4Q19, efficency in 1Q20 improved 620 bps QoQ mainly due to the decrease in administrative expenses reflecting streamlining undertaken in 2019 and strict cost control actions implemented by the Company while revenues remained flat.

 

 

 

 

 

7

 

 

LIQUIDITY

 

Loans to deposits ratio of 68.1% was down from 74.9% as of March 31, 2019 and from 103.5% as of December 31, 2019. AR$ loans to AR$ deposits ratio was 62.3% compared to 78.3% on March 31, 2019 and 107.6% as of December 31, 2019. The ratio reflects the QoQ 60.9% increase in AR$ deposits following the increase in AR$ wholesale and institutional deposits raised to fund increased investments in Central Bank 7-day Leliqs and the 14.8% increase in core peso franchise deposits, while AR$ loans remained flat. The 4Q19 ratio reflected the Company’s decision to deleverage its balance sheet and year end liquidity management. As of March 31, 2020, the Liquid US$ Assets to US$ deposits ratio was 61%, while Liquid AR$ Assets to AR$ deposits ratio was 60%.

 

Total Deposits measured in AR$ unit at the end of 1Q20 declined 16.5% YoY but increased 41.5% QoQ to AR$135.8 billion. AR$ deposits rose 3.1% YoY and 60.9% QoQ. Foreign currency deposits (measured in US$) declined 58.2% YoY and 4.1% QoQ, following industry trends since August 2019.

 

ASSETS

 

Loans measured in AR$ unit at the end of 1Q20 declined 24.0% YoY and 7.2% QoQ to AR$92.2 billion. The AR$ Loan portfolio rose 17.9% YoY and 6.9% QoQ. FX loans, measured in US$, declined 39.4% YoY and 8.0% QoQ. YoY and QoQ inflation was 48.4% and 7.8% respectively.

 

Total Assets down 19.8% YoY but up 22.4% QoQ, to AR$197.0 billion. QoQ performance reflects the increase in holdings of Central Bank Leliqs by raising wholesale deposits to take advantage of higher spreads on Leliqs, following the balance sheet deleveraging in prior quarter.

 

CAPITAL

 

Common Equity Tier 1 Ratio as of March 31, 2020, was 13.3%, compared to the 11.3% reported as of December 31, 2019 and 11.9% reported as of March 31, 2019. The QoQ increase reflects initial IAS29 adjustment on non monetary assets, and Central Bank regulatory easing on provisions amid the Covid-19 pandemic that allows banks to consider as Tier 1 Common Equity, the difference between expected loss provisions recorded following IFRS9, and provisions recorded as of November 30, 2019 under the previous accounting framework. On a proforma basis, if having impacted by December 31, 2019 inflation adjustment, Tier 1 ratio would have been 12.1%.

 

8

 

 

Financial Highlights & Key Ratios

 

Information stated in terms of the measuring unit current at the end of the reporting period, including the corresponding financial figures for previous periods provided for comparative purposes.

 

Highlights                            
(In millions of Ps. stated in terms of the
measuring unit current at the end of the reporting period)
      % Change 
INCOME STATEMENT  1Q20   4Q19   3Q19   2Q19   1Q19   QoQ   YoY 
Net Interest Income   7,030.1    4,910.0    1,932.7    1,910.0    1,894.1    43.2%   271.2%
NIFFI & Exchange Rate Differences   410.3    3,717.6    4,762.0    7,231.8    6,535.1    -89.0%   -93.7%
Net Financial Income   7,440.4    8,627.6    6,694.7    9,141.8    8,429.2    -13.8%   -11.7%
Net Service Fee Income (excluding income from insurance activities)   1,737.6    1,511.2    1,710.4    1,730.4    1,899.4    15.0%   -8.5%
Income from Insurance activities   323.4    368.7    327.4    302.6    321.4    -12.3%   0.6%
RECPPC   -869.3    -1,874.3    -1,775.9    -907.4    -1,694.8    -53.6%   -48.7%
Loan Loss Provisions   -1,580.6    -1,197.2    -2,544.7    -1,694.9    -2,896.6    32.0%   -45.4%
Personnel & Administrative Expenses   5,380.5    6,343.6    5,410.2    6,125.7    5,551.2    -15.2%   -3.1%
Profit before income tax   797.0    -928.4    -2,390.1    983.6    -631.8    -185.8%   -226.2%
Attributable Net income   453.4    -759.4    -2,179.7    1,130.5    -1,353.5    -159.7%   -133.5%
Attributable Comprehensive income   405.2    -676.2    -2,179.0    1,141.2    -1,355.0    -159.9%   -129.9%
Earnings per Share (AR$)   1.0    -1.7    -4.8    2.5    -3.0           
Earnings per ADRs (AR$)   5.0    -8.3    -23.9    12.4    -14.8           
Average Outstanding Shares (in millions)   456.7    456.7    456.7    456.7    456.7           
BALANCE SHEET   mar 20    dec 19    sep 19    jun 19    mar 19    QoQ    YoY 
Total Assets   196,973.1    160,885.0    195,007.4    228,173.3    245,587.4    22.4%   -19.8%
Average Assets1   189,314.9    175,470.2    209,761.6    227,076.6    241,756.2    7.9%   -21.7%
Total Loans & Leasing   92,230.8    99,342.6    105,408.7    111,250.9    121,396.1    -7.2%   -24.0%
Total Deposits   135,795.5    95,950.4    122,914.5    152,599.4    162,713.1    41.5%   -16.5%
Attributable Shareholders’ Equity   26,481.0    26,075.7    26,754.8    31,678.2    28,291.6    1.6%   -6.4%
Average Attributable Shareholders’ Equity1   23,595.0    23,130.8    24,540.5    25,105.3    26,898.4    2.0%   -12.3%

 

KEY INDICATORS   1Q20   4Q19   3Q19   2Q19   1Q19          
Profitability & Efficiency                                   
ROAE   7.7%   -13.1%   -35.5%   18.0%   -20.1%          
ROAA   1.0%   -1.7%   -4.2%   2.0%   -2.2%          
Net Interest Margin (NIM)   22.8%   28.8%   17.4%   22.0%   19.0%          
Net Fee Income Ratio   21.7%   17.9%   23.3%   18.2%   20.8%          
Cost / Assets   12.3%   15.8%   11.4%   11.8%   9.9%          
Efficiency Ratio   60.4%   76.3%   75.6%   65.2%   64.5%          
Liquidity & Capital                                   
Total Loans to Total Deposits   68.1%   103.5%   85.8%   72.9%   74.9%          
AR$ Loans to AR$ Deposits   62.3%   107.6%   82.2%   78.5%   78.3%          
US$ Loans to US$ Deposits   97.2%   92.1%   95.9%   60.9%   66.8%          
Liquidity Coverage Ratio (LCR)3   130.2%   150.3%   141.7%   164.5%   143.9%          
Total Equity  / Total Assets   13.4%   16.2%   13.7%   13.9%   11.5%          
Capital / Risk weighted assets 4   14.0%   12.2%   12.8%   12.9%   13.2%          
Tier1 Capital / Risk weighted assets  5   13.3%   11.3%   11.8%   11.9%   11.9%          
Risk Weighted Assets / Total Assets   69.8%   89.2%   76.7%   68.5%   45.3%          
Asset Quality                                   
NPL Ratio   6.7%   7.4%   6.9%   5.1%   5.3%          
Allowances  as a % of Total Loans   6.6%   6.3%   6.0%   5.5%   5.3%          
Coverage Ratio   99.6%   83.0%   86.1%   107.7%   100.0%          
Cost of Risk   6.8%   5.0%   9.6%   6.0%   9.8%          
MACROECONOMIC RATIOS                                   
Retail Price Index (%)6   7.8%   11.7%   12.5%   9.5%   11.8%          
Avg. Retail Price Index (%)   50.5%   52.1%   54.1%   56.3%   51.2%          
UVA (var)   9.5%   14.3%   8.5%   12.0%   9.4%          
Pesos/US$ Exchange Rate   64.47    59.90    57.56    42.45    43.35           
Badlar Interest Rate (eop)   27.6%   39.4%   58.9%   47.5%   45.7%          
Badlar Interest Rate (avg)   33.2%   48.1%   54.7%   50.9%   41.8%          
Monetary Policy Rate (eop)   38.0%   55.0%   78.4%   62.7%   68.2%          
Monetary Policy Rate (avg)   45.6%   65.3%   71.5%   66.8%   55.8%          
OPERATING DATA                                   
Active Customers (in millions)   1.8    1.8    1.8    1.8    1.8           
Access Points   316    316    317    318    316           
Employees7   5,055    5,019    5,134    5,135    5,203    0.7%   -2.8%

 

9

 

 

1.Average Assets and average Shareholder´s Equity calculated on a daily basis

 

2.Total Portfolio: Loans and Leasing before Allowances. According to IFRS, this line item includes Securitized Loan Portfolio and loans transferred with recourse.

 

3.This ratio includes the liquidity held at the holding company level.

 

4.Regulatory capital divided by risk weighted assets taking into account operational and market risk. Since January 1, 2020, financial institutions which are controlled by non-financial institutions (as in our case in relation with the Bank) shall comply with the Minimum Capital requirements, among others on a consolidated basis comprising the non-financial holding and all its subsidiaries (excluding insurance companies and non-financial subsidiaries). As of March 31, 2020, the calculation methodology has not been released and therefore we continue to calculate this ratio adding to the Bank’s regulatory capital ratio, the amount of liquidity held at the holding company level. In previous quarters this ratio was named as Proforma Ratio .

 

5.Tier 1 capital divided by risk weighted assets taking into account operational and market risk. Applies same disclosure as in footnote 4.

 

6.Source: INDEC

 

7.These figures do not include temporary employees

 

Managerial Information. Non-restated figures

 

The 1Q20 management information included hereunder is not serived directly from accounting records as it is an estimate of non-restated figures excluding the impact of IAS 29 effective January 1, 2020. This information is only provided for comparative purposes with figures disclosed in previous years before the adoption of rule IAS 29.

 

Highlights - Non-restated figures                         
(In millions of Argentine Ps.)                      % Change 
INCOME STATEMENT  1Q20   4Q19   3Q19   2Q19   1Q19   QoQ   YoY 
Net Interest Income   6,840.0    4,412.3    1,523.8    1,370.7    1,218.3    55.0%   461.4%
NIFFI & Exchange Rate Differences   397.4    3,245.5    3,754.4    5,189.6    4,259.4    -87.8%   -90.7%
Net Financial Income   7,237.5    7,657.8    5,278.1    6,560.3    5,477.7    -5.5%   32.1%
Net Service Fee Income (excluding income from insurance activities)   1,692.5    1,348.7    1,348.5    1,241.7    1,227.8    25.5%   37.8%
Income from Insurance activities   289.6    266.8    258.1    217.2    204.0    8.5%   42.0%
Loan Loss Provisions   -1,541.8    -1,368.1    -2,007.4    -1,210.8    -1,893.0    12.7%   -18.6%
Personnel & Administrative Expenses   5,231.1    5,690.4    4,265.4    4,395.8    3,597.7    -8.1%   45.4%
Profit before income tax   1,780.4    1,029.8    -116.5    1,566.1    748.7    72.9%   137.8%
Attributable Net income   1,465.7    1,466.2    301.0    1,901.5    589.1    0.0%   148.8%
Attributable Comprehensive income   1,417.2    1,570.3    732.1    1,909.3    615.4    -9.8%   130.3%
Earnings per Share (AR$)   3.2    3.2    0.7    4.2    1.3           
Earnings per ADRs (AR$)   16.0    16.1    3.3    20.8    6.4           
Average Outstanding Shares (in millions)   456.7    456.7    456.7    456.7    456.7           
BALANCE SHEET   mar 20    dec 19    sep 19    jun 19    mar 19           
Total Assets   192,679.5    146,493.1    159,815.8    166,144.7    163,849.3    31.5%   17.6%
Average Assets1   169,586.3    156,563.6    165,375.6    162,952.7    156,037.7    8.3%   8.7%
Total Loans & Leasing   92,230.8    92,154.9    87,524.6    82,117.7    81,827.1    0.1%   12.7%
Total Deposits   135,795.5    89,008.2    102,060.3    112,638.3    109,676.8    52.6%   23.8%
Attributable Shareholders’ Equity   22,685.2    21,680.0    20,109.7    19,377.6    17,771.0    4.6%   27.7%
Average Attributable Shareholders’ Equity1   22,182.6    20,638.5    19,347.7    18,015.9    17,361.2    7.5%   27.8%
PROFITABILITY   1Q20   4Q19   3Q19   2Q19   1Q19          
ROAE   26.4%   28.4%   6.2%   42.2%   13.6%          
ROAA   3.5%   3.7%   0.7%   4.7%   1.5%          

 

10

 

 

1Q20 Earnings

 

Call Dial-In Information

 

Date:Friday May 29, 2020

 

Time:9:00 AM ET; 10:00 AM (Buenos Aires Time)

 

Dial-in Numbers:1-877-407-0789 (U.S. and Canada), 1-201-689-8562 (International), 0-800-444-6247 (Argentina), or 0800-756-3429 (U.K.)

 

Webcast:http://public.viavid.com/index.php?id=139692

 

Replay:From Friday May 29, 2020, 12:00 PM ET through Friday June 12, 2020, 11:59 PM ET. Dial-in number: +1-844-512-2921 (U.S./Canada) or +1-412-317-6671 (international). Pin number: 13703230

 

11

 

 

Supervielle Measures in the ongoing COVID-19 pandemic environment

 

The ongoing COVID-19 pandemic and government measures taken to contain the spread of the virus are adversely affecting the Company businesses. Branches were required to remain closed during the second half of March 2020, and have subsequently only gradually been allowed to open with limited operations. As of the date, banks are permitted to open to provide limited services to clients with prior appointments, provided that certain health and safety requirements set forth by the Central Bank are complied with. Details with regard to the Argentine government’s social aid, monetary and fiscal measures to mitigate the economic impact of the COVID-19 pandemic which also impact the Company’s operations, can be found on page 56.

 

Since early March 2020, Supervielle’s management has been actively monitoring the evolution of the ongoing COVID-19 pandemic and the impact it may have on the business. Measures have been taken rapidly as the situation continued to evolve, focusing mainly in protecting the Company’s employees and customers and ensuring the continuity of business operations. On March 13, 2020, even before the nationwide lockdown was declared, the Company implemented a protocol, which included enhancing online security measures, by which a significant part of its workforce began to work remotely.

 

The Company has taken other measures such as the implementation of a back-to-work protocol for essential employees, which included the rotation of teams within the Company’s branches, the incorporation of medical personnel to the crisis management teams, online psychological assistance for employees, and online yoga and gym classes. As of the date of this earnings report, approximately 96% of the Company’s non branch employees are working remotely, while the branch staff are divided into two teams which rotate every 2 weeks.

 

Since the beginning of the COVID-19 pandemic crisis in Argentina, the Company has been encouraging its customers to use its digital channels. Since the senior citizens’ segment (which are a significant portion of Supervielle’s customers base and are more vulnerable to the effects of the virus) is generally less familiar with the online or mobile banking platforms, the Company implemented a direct and free exclusive telephone line to assist them and released tutorials through social media . Additionally, the Company made numerous debit cards reprints and deliveries as well as debit card resets for non-user clients, adapted the existing biometric recognition technology for customers to withdraw money from the ATMs without a debit card. Additional features have been released in the mobile app for senior citizens with the purpose of reducing their need to personally attend a branch.

 

With respect to SMEs, the Company has made available loans promoted by the Argentine government at a 24% interest rate, to assist them with payroll payments and working capital needs. The Company has also launched specific credit lines for SMEs in the health and the transportation sectors. As of the date of this earnings release report, the Bank has granted loans at a 24% interest rate for an approximate amount of Ps. 8 billion.

 

Grupo Supervielle has announced donations of Ps.13 million to social organizations located throughout the country, funds which will be applied to social initiatives related to the COVID-19 pandemic, such as the purchase of medical equipment for health centers and the provision of food for the most vulnerable communities in the City of Buenos Aires and the Provinces of Buenos Aires, Mendoza and San Luis.

 

The Company faces various risks arising from the economic impact of the pandemic and related government measures which are difficult to predict accurately at this time. These risks include (i) a higher risk of impairment of the Company’s assets, (ii) lower revenues as a consequence of the temporary restrictions on charging certain fees to customers, and as a result of lower interest rates on loans promoted by the Central Bank, (iii) a possible significant increase in loan defaults and credit losses, with a consequent increase in loan loss provisions, and (iv) a decrease in credit demand and in the business activity in general, particularly new retail lending. Certain factors that could offset tthese risks include (i) the reduction of the cost of funding, which has been decreasing since the beginning of the COVID-19 pandemic crisis, and (ii) the structure of its liabilities, as the Company estimates will not face liquidity contraints as a result of the pandemic.

 

12

 

 

The Company continues to monitor the impact of the ongoing COVID-19 pandemic on its business, and will implement all possible actions to preserve health of its employees and to ensure continuity of operations. Grupo Supervielle will continue focusing on improving efficiency while keeping its differentiated strategy to capture growth, remaining flexible under this particularly volatile and challenging scenario. The ultimate impact of the pandemic on its business, results of operations and financial condition remains highly uncertain and will depend on future developments outside of the Company control, including the intensity and duration of the pandemic and the government measures taken in order to contain the virus or mitigate the economic impact.

 

Review Of Consolidated Results

 

Supervielle offers financial products and services mainly through Banco Supervielle (the “Bank”), a universal commercial bank, and Cordial Compañía Financiera (“CCF”), a consumer finance company which is consolidated with the Bank’s operations. The Bank and CCF, Supervielle’s main assets, comprised 92.2% and 4.1% respectively of total assets as of March 31, 2020. Supervielle also operates Tarjeta Automática, a consumer finance company with a distribution network mainly in southern Argentina; MILA, a car financing company; Espacio Cordial de Servicios, a retail company cross-selling related non-financial products and services; Supervielle Seguros, an insurance company; Supervielle Productores Asesores de Seguros, an insurance broker company, Supervielle Asset Management; InvertirOnline.com, an online broker; and Supervielle Agente de Negociación (previously Futuros del Sur), a recently acquired brokerage firm.

 

Comprehensive Income & Profitability. Figures as reported (stated in terms of the measuring unit current at the end of March 31, 2020) compared to non restated for inflation figures.

 

YoY comparison:                            
                             
Income Statement                     
Real vs. Non restated (In millions of
Argentine Ps.)
  1Q20 as
reported
   1Q19 as
reported
   % Var   IAS 29
1Q20
   1Q20 non
restated
   1Q19 non
restated
   % Var non
restated
 
Net interest income   7,030.1    1,894.1    271.2%   190.0    6,840.0    1,218.3    461.4%
NIFFI & Exchange Rate Differences   410.3    6,535.1    -93.7%   12.9    397.4    4,587.8    -91.3%
Net Financial Income   7,440.4    8,429.2    -11.7%   203.0    7,237.5    5,806.1    24.7%
Net Service Fee Income   2,060.9    2,220.8    -7.2%   78.8    1,982.1    1,431.7    38.4%
Result from exposure to changes in the purchasing power of the currency   -869.3    -1,694.8    -48.7%   -869.3    0.0    0.0    - 
Loan loss provisions   -1,580.6    -2,896.6    -45.4%   -38.7    -1,541.8    -1,893.0    -18.6%
Net Operating Revenue   7,870.5    6,882.7    14.4%   -602.9    8,473.4    5,549.3    52.7%
Personnel & administrative expenses   5,380.5    5,551.2    -3.1%   149.4    5,231.1    3,597.7    45.4%
Depreciation & Amortization   451.9    411.2    9.9%   194.6    257.3    200.4    28.4%
Other expenses, net   -422.0    -727.9    -42.0%   -13.1    -408.9    -469.6    -12.9%
Profit before income tax   797.0    -631.8    na    -983.4    1,780.4    748.7    na 
Income tax expense   343.2    723.1    -53%   29.8    313.5    159.1    97.0%
Attributable net income   453.4    -1,353.5    na    -1,012.3    1,465.7    589.1    148.8%
Attributable comprehensive income   405.2    -1,355.0    na    -1,012.0    1,417.2    615.4    130.3%

 

13

 

 

QoQ comparison:                            
                             
Income Statement                            
Real vs. Non Restated (In millions of
Argentine Ps.)
  1Q20 as
reported
   4Q19 as
reported
   % Var   IAS 29
1Q20
   1Q20 non
restated
   4Q19 non
restated
   % Var non
restated
 
Net interest income   7,030.1    4,910.0    43.2%   190.0    6,840.0    4,412.3    55.0%
NIFFI & Exchange Rate Differences   410.3    3,717.6    -89.0%   12.9    397.4    3,245.5    -87.8%
Net Financial Income   7,440.4    8,627.6    -13.8%   203.0    7,237.5    7,657.8    -5.5%
Net Service Fee Income   2,060.9    1,879.9    9.6%   78.8    1,982.1    1,615.5    22.7%
Result from exposure to changes in the purchasing power of the currency   -869.3    -1,874.3    -53.6%   -869.3    0.0    0.0    - 
Loan loss provisions   -1,580.6    -1,197.2    32.0%   -38.7    -1,541.8    -1,368.1    12.7%
Net Operating Revenue   7,870.5    8,118.6    -3.1%   -602.9    8,473.4    8,780.7    -3.5%
Personnel & administrative expenses   5,380.5    6,343.6    -15.2%   149.4    5,231.1    5,690.4    -8.1%
Depreciation & Amortization   451.9    568.2    -20.5%   194.6    257.3    253.8    1.4%
Other expenses, net   -422.0    -1,452.8    -71.0%   -13.1    -408.9    -931.2    -56.1%
Profit before income tax   797.0    -928.4    na    -983.4    1,780.4    1,029.8    72.9%
Income tax expense   343.2    -168.6    na    29.8    313.5    -437.5    -171.6%
Attributable net income   453.4    -759.4    na    -1,012.3    1,465.7    1,466.2    0.0%
Attributable comprehensive income   405.2    -676.2    na    -1,012.0    1,417.2    1,570.3    -9.8%

 

14

 

 

The results restated for inflation corresponding to 4Q19 and 1Q19 contain the effect of three and twelve month inflation as of March 2020, which reached 7.8%% and 48.4%% respectively. Attributable Net income of AR$453.5 million in 1Q20, compared to net losses of AR$1.1 billion in 1Q19 and AR$695.4 million in 4Q19. Excluding the impact of IAS29, Net Income was AR$1.5 billion, increasing 148.8% YoY and remaining unchanged from 4Q19.

 

Comprehensive Income & Profitability

 

Income Statement
(In millions of Ps. stated in terms of
the measuring unit current at the
                      % Change 
end of the reporting period)  1Q20   4Q19   3Q19   2Q19   1Q19   QoQ   YoY 
Consolidated Income Statement Data NIIF:                                   
Interest income   13,068.4    12,388.4    11,715.2    11,909.6    12,270.2    5.5%   6.5%
Interest expenses   -6,038.3    -7,478.4    -9,782.5    -9,999.6    -10,376.1    -19.3%   -41.8%
Net interest income   7,030.1    4,910.0    1,932.7    1,910.0    1,894.1    43.2%   271.2%
Net income from financial instruments at fair value through profit or loss   316.5    3,204.4    5,528.6    6,854.5    7,008.4    -90.1%   -95.5%
Exchange rate difference on gold and foreign currency   93.9    513.3    -766.6    377.3    -473.3    -81.7%   -119.8%
NIFFI & Exchange Rate Differences   410.3    3,717.6    4,762.0    7,231.8    6,535.1    -89.0%   -93.7%
Net Financial Income   7,440.4    8,627.6    6,694.7    9,141.8    8,429.2    -13.8%   -11.7%
Fee income   2,407.0    2,145.9    2,397.6    2,321.3    2,405.5    12.2%   0.1%
Fee expenses   -669.4    -634.7    -687.2    -590.9    -506.2    5.5%   32.3%
Income from insurance activities   323.4    368.7    327.4    302.6    321.4    -12.3%   0.6%
Net Service Fee Income   2,060.9    1,879.9    2,037.8    2,033.0    2,220.8    9.6%   -7.2%
Subtotal   9,501.3    10,507.6    8,732.6    11,174.8    10,650.0    -9.6%   -10.8%
Result from exposure to changes in the purchasing power of the currency   -869.3    -1,874.3    -1,775.9    -907.4    -1,694.8    -53.6%   -48.7%
Other operating income   819.1    682.6    732.8    726.1    824.1    20.0%   -0.6%
Loan loss provisions   -1,580.6    -1,197.2    -2,544.7    -1,694.9    -2,896.6    32.0%   -45.4%
Net Operating Income   7,870.5    8,118.6    5,144.7    9,298.6    6,882.7    -3.1%   14.4%
Personnel expenses   3,561.9    4,257.7    3,414.9    4,008.4    3,588.1    -16.3%   -0.7%
Administration expenses   1,818.5    2,085.9    1,995.4    2,117.2    1,963.2    -12.8%   -7.4%
Depreciations and impairment of  assests   451.9    568.2    577.0    574.6    411.2    -20.5%   9.9%
Other operating expenses   1,241.1    2,135.3    1,547.7    1,614.7    1,552.0    -41.9%   -20.0%
Operating income   797.0    -928.4    -2,390.1    983.6    -631.8    -185.8%   -226.2%
Profit before income tax   797.0    -928.4    -2,390.1    983.6    -631.8    -185.8%   -226.2%
Income tax   343.2    -168.6    -208.2    -148.0    723.1    -303.6%   -52.5%
Net income for the year   453.8    -759.8    -2,181.9    1,131.6    -1,354.9    -159.7%   -133.5%
Net income for the year attributable to parent company   453.4    -759.4    -2,179.7    1,130.5    -1,353.5    -159.7%   -133.5%
Net income for the year attributable to non-controlling interest   0.4    -0.4    -2.2    1.2    -1.4    -200.7%   -127.7%
Other Comprehensive Income, net of tax   -48.2    83.2    0.7    10.8    -1.6    -157.9%   3001.0%
Comprehensive income   405.5    -676.6    -2,181.2    1,142.4    -1,356.4    -159.9%   -129.9%
Attributable to owners of the parent company   405.2    -676.2    -2,179.0    1,141.2    -1,355.0    -159.9%   -129.9%
Attributable to non-controlling interests   0.3    -0.4    -2.2    1.2    -1.4    -189.2%   -124.2%
ROAE   7.7%   -13.1%   -35.5%   18.0%   -20.1%          
ROAA   1.0%   -1.7%   -4.2%   2.0%   -2.2%          

 

Profit before income tax of AR$797.2 million in 1Q20 compared to losses of AR$631.8 million in 1Q19 and AR$928.4 million in 4Q19. Excluding the impact of IAS29, Profit before income tax, would have been Ps.1.8 billion in 1Q20 up 137.8% YoY and 72.9% QoQ.

 

QoQ improvement was explained by: i) a 15.2% decrease in Personnel and Administrative Expenses, that excluding the AR$880 million in non recurring severance and early retirement charges in 4Q19 decreased 3% reflecting a combination of strict cost control actions implemented by the Company, the streamling of operations in 2019, and salaries increases following the bargaining agreements between banks and unions during the quarter which included fixed sums of money for all employees and (ii) a decrease in Result from exposure to changes in the purchasing power of the currency due to slower growth pace in inflation in 1Q20 compared to 4Q19, and (iii) an increase in Net Service Fee Income mainly from fees repricing throughout the quarter surpassing the increase in inflation. These were partially offset by (i) lower Net Financial Income as 4Q19 benefitted from price improvements in reprofiled Argentine short term treasury notes and (ii) higher LLP based on expected losses according to IFRS9.

 

15

 

 

Attributable Net income of AR$453.5 million in 1Q20, compared to losses of AR$1.4 billion in 1Q19 and AR$ 759.4 million in 4Q19. Excluding the impact of IAS29, Attributable Net income would have been AR$1.5 billion in 1Q20 increasing 148.8% YoY and remaining stable from 4Q19. 1Q20 net income includes an AR$343 million charge in Income Tax compared to an AR$170.3 million gain in 4Q19.

 

Attributable Comprehensive Income of AR$ 405.2 million in 1Q20 compared to losses of AR$1.4 billion in 1Q19 and AR$676.2 million in 4Q19. Excluding the impact of IAS29, Attributable Comprehensive income would have been AR$1.4 billion in 1Q20 increasing 130.3% YoY but decreasing 9.8% QoQ.

 

Other Comprehensive Income in 1Q20 of AR$48.2 million loss compared to AR$1.6 million loss in 1Q19 and AR$83.2 million gain in 4Q19. 1Q20 loss reflects the impact of inflation on the results of securities classified as available for sale. According to Central Bank regulation, results from securities which are classified as available for sale, the OCI shall include its respective result from the changes in the purchasing power of the currency.

 

ROAE of 7.7% in 1Q20 compares with -20.1% in 1Q19 and -13.1% in 4Q19. ROAE in 1Q20 benefitted from a deceleration in the inflation pace (7.8% in the quarter) compared to ROAEs in 4Q19 and 1Q19 when inflation peaked at 11.7% and 11.8% respectively. Excluding the impact of IAS29, ROAE would have been 26.4% in 1Q20 compared to 13.6% in 1Q19 and 28.4% in 4Q19.

 

ROAA of 1.0% in 1Q20 versus -2.2% in 1Q19 and -1.7% in 4Q19. Excluding the impact of IAS29, ROAA would have been 3.5% in 1Q20 compared to 1.5% in 1Q19 and 3.7% in 4Q19.

 

Comprehensive Income & Profitability Breakdown

 

Excluding the Consumer Finance lending business, 1Q20 ROAE reached 12.6%, above the reported consolidated ROAE of 7.7%.

 

    1Q20    1Q19 
    GS (1)    CFL(2)    GS excl. CFL (3)    GS    CFL    GS excl. CFL 
Net Financial Income /Average Assets**   16.1%   24.4%   15.7%   22.4%   11.4%   23.1%
LLP / Avg. Assets**   3.4%   8.5%   3.1%   4.8%   14.6%   4.2%
ROA**   1.0%   -9.0%   1.5%   -2.2%   -17.6%   -1.3%
ROE**   7.5%   -29.6%   12.6%   -20.1%   -76.9%   -12.8%
Assets / Shareholders´equity   7.60    3.27    8.20    8.99    4.38    9.58 

 

(1)refers to Grupo Supervielle

 

(2)refers to Consumer Finance Lending business (including CCF, Mila and TA)

 

(3)refers to Grupo Supervielle excluding the Consumer Finance Lending business

 

**Annualized ratios

 

Consumer Finance lending business performance in 1Q20, before the Covid-19 outbreak, reflected an increase in financial margin driven by lower cost of funds following the decline in market interest rates and a continued improvement in asset quality after the tightening of its underwriting policies and reducing exposure.

 

Net Financial Income

 

(Net Interest Income -NII-, Net Income from Financial Instruments -NIFFI- & Exchange Rate Differences on Gold and Foreign Currency)

 

Net Financial Income of AR$7.4 billion, down 11.7% YoY and 13.8% QoQ. In 4Q19, NFI income had recorded AR$1.3 billion results from price improvements of reprofiled short term Argentine AR$ and US$ treasury notes held by Supervielle. Excluding this non recurrent income in 4Q19, NFI in 1Q20 would have increased 0.9%, mainly explained by a 950 bps decrease in AR$ cost of funds following the trend of decreasing market interest rates, while interest on loans continued to benefit from additional repricing in personal loans. These impacts were partially offset by a 2,600 bps decrease in the average yield of the Central Bank 7 days Leliqs, from 68.7% to 42.4%.

 

16

 

 

Excluding the impact of IAS29, Net Financial Income, would have been Ps. 7.2 billion in 1Q20 increasing 32.1% YoY but down 5.5% QoQ. Excluding non recurring income in 4Q19, comparable non restated NFI figures would have increased 10.7% sequentially.

 

Net Financial Income
(In millions of Ps. stated in terms of the
measuring unit current at the end of the
                      % Change 
reporting period)   1Q20   4Q19   3Q19   2Q19   1Q19   QoQ    YoY 
Net Interest Income   7,030.1    4,910.0    1,932.7    1,910.0    1,894.1    43.2%   271.2%
NIFFI & Exchange rate differences   410.3    3,717.6    4,762.0    7,231.8    6,535.1    -89.0%   -93.7%
Net Financial Income   7,440.4    8,627.6    6,694.7    9,141.8    8,429.2    -13.8%   -11.7%

 

Note: In 1Q20 and 4Q19, AR$3.8 billion and AR$1.3 billion yield from investments in 7-day Central Bank securities had been recorded in NII since the Company changed in October 2019, the classification of these securities into “at Fair value through other comprehensive income”. 4Q19 NIFFI account, still recorded AR$1.4 billion of these securities yield before the change in classification was made.

 

Net Interest Income was AR$7.0 billion, compared to AR$1.9 billion in 1Q19 and AR$4.9 billion in 4Q19. In the quarter, NII benefitted from (i) a 950 bps decrease in AR$ cost of funds following the decrease in market interest rates, (ii) the lagged repricing of the AR$ loan portfolio, and iii) higher average volumes of Central Bank Leliqs. These were partially offset by a 11.6% increase in the average balance of high cost interest bearing liabilities to fund increased investments in Central Bank 7-day Leliqs. In the previous quarter the Company had decided to deleverage its balance sheet reducing wholesale institutional funding.

 

Moreover, QoQ and YoY comparisons were impacted by the change in the classification and therefore accounting methodology for all new Central Bank Securities and sovereign bonds acquired by the Company since October 2019. In 1Q20 and 4Q18, AR$ 3.8 billion and AR$1.3 billion yield from investments in high margin 7-day Central Bank securities has been recorded in NII following the Fair value through other comprehensive income methodology since October 2019. In previous quarters, when those securities were classified as Held for trading securities, yields from those investments were recorded in NIFFI following the Fair value through profit or loss accounting methodology while deposits to fund those marginal investments were reflected in Net Interest Income.

 

As of March 31, 2020 and as of December 31, 2019, AR$ 41.3 billion and AR$7.8 billion respectively of short-term securities issued by the Central Bank -7 day high-yield Leliqs- were classified in the available for sale category, and accordingly valued at fair value through other comprehensive income methodology together with the cost of the higher balance of interest-bearing liabilities raised to fund those investments, both reflected in Net Interest Income. In previous quarters the balance of these securities was classified as held for trading and accordingly valued at market price recording profits in NIFFI while the cost of the higher balance of interest-bearing liabilities raised to fund those investments, was recorded as interest expenses within Net Interest Income.

 

Below is a breakdown of the securities portfolio held as of March 31, 2020, between securities held for trading purposes, securities held to maturity, and securities available for sale. The accounting methodology is different for each security class.

 

a)Amortized cost (“Held to maturity”): Assets measured at amortized cost are those held for the purpose of collecting contractual cash flows. Interest income is recognized in net interest margin. Assets in this category include the Company’s loan portfolio and certain government (mainly holdings of Bote) and corporate securities. Since January 1, 2020, the reprofiled Letes held by the Company were changed from Held for trading to this security class, as allowed by the Central Bank through Communication A 6847. When changed to this category, the Letes were recorded at the market price as of December 31, 2019, and since then have accrued implicit yield, unless the market price decreases below the recorded value. If market value is lower than book value, accrual of interests and exchange rate difference must be suspended until the market price reaches the prior level. No negative impact was reflected in the quarter in interest income nor in other comprehensive impact when prices decreased along 1Q20 below the December 31, 2019 level.

 

17

 

 

b)Fair value through other comprehensive income (“Available for sale”): Assets measured at fair value through other comprehensive income are those held for the purpose of both collecting contractual cash flows and selling financial assets. Interest income is recognized in net interest margin in the income statement, while changes in fair value are recognized in other comprehensive income.

 

c)Fair value through profit or loss (“Held for trading”): Assets measured at fair value through profit or loss are those held for the purpose of trading financial assets. Changes in fair value are recognized in the "Net income from financial instruments" line item of the income statement. Assets in this category include most government securities (including Letes and Lecaps that were reprofiled) and securities issued by the Central Bank, other than those classified as amortized cost. As mentioned above, since January 1, 2020, all reprofiled Letes held by the Company, were re-classified to “Held to maturity”, from “Held for trading”. Additionally, on January 20, 2020, the Company entered into the exchange offered by the Argentine government for some of the reprofiled Lecaps held, and received Lebads payable at 6 and 9 months term, which were classified as “Available for sale”. Any further price changes in these Lebads will be therefore recognized at fair value through other comprehensive income. In May, 2020, the Company participated in a voluntary Argentine US$ Treasury notes (LETES) swap for Treasury Bonds in Pesos adjustable by CER (BONCER) which were also classified as “Available for sale”. 100% of Supervielle holdings of Letes were swaped for Boncer.

 

Securities Breakdown1                    
(In millions of Ps. stated in terms of the measuring unit current at the end of the reporting period)  mar 20   dec 19   sep 19   jun 19   mar 19 
Held for trading   487.1    612.8    38,002.7    56,781.9    52,307.6 
Government Securities2   186.0    508.9    1,860.3    3,533.3    4,522.9 
Securities Issued by the Central Bank   -    -    35,953.0    53,157.4    47,779.5 
Corporate Securities   301.1    104.0    189.4    91.1    5.3 
Held to maturity   8.8    3,773.4    4,612.4    4,293.0    4,930.4 
Government Securities   -    3,767.5    4,590.5    4,256.8    4,870.5 
Securities Issued by the Central Bank   -    -    -    -    - 
Corporate Securities   8.8    5.9    22.0    36.3    60.0 
Available for sale   46,657.0    7,746.2    10.5    12.4    21.5 
Government Securities3   5,373.0    -    -    -    6.6 
Securities Issued by the Central Bank   41,274.2    7,730.5    -    -    - 
Corporate Securities   9.8    15.7    10.5    12.4    15.0 
Total   47,152.9    12,132.4    42,625.7    61,087.3    57,259.6 
US$ Gov Sec, in Guarantee (Held for trading)4   1,416.5    1,330.4    978.5    2,492.8    2,424.4 
AR$ Gov Sec.in Time Deposits  (Held to maturity)   -    62.5    -    -    - 
Total (incl. US$ Gov Sec. in Guarantee)   48,569.4    13,525.3    43,604.2    63,580.1    59,684.1 

 

1.Includes securities denominated in AR$ and US$

 

2.Includes AR$4.7 billion BOTE 2020 and AR$ 298 million of AR$ Treasury Notes (Lecaps) and AR$65 million of Lebads.l. On January 20, 2020, the Company entered into the exchange offered by the Government regarding the AR$ (Lecaps) reprofiled notes, receiving Lebads, and classified the Lebads as Available for Sale. On January 1, 2020, the Company changed the Letes held, from the category Held for Trading to Held to maturity.

 

18

 

 

Net Income from financial instruments and Exchange rate differences of AR$410.3 million compared to AR$6.5 billion in 1Q19 and AR$3.7 billion in 4Q19. Comparisons were impacted by the abovementioned changes in the classification of Central Bank Securities to the “Available for Sale” category, from the “Held for Trading” security class. In 4Q19, AR$ 1.1 billion yield from investments in high margin 7-day Central Bank securities was recorded in NII while in previous quarter yields from those investments were registered in NIFFI.

 

NIFFI & Exchange rate differences on gold and foreign currency              % Change 
(In millions of Ps. stated in terms of the measuring unit current at the end of the reporting period)  1Q20   4Q19   3Q19   2Q19   1Q19   QoQ   YoY 
Income from:                                   
- Government and corporate securities   234.3    1,772.8    -1,231.4    238.7    871.7    -86.8%   -73.1%
- Term Operations   39.0    48.7    705.9    -74.2    88.9    -20.0%   -56.1%
- Securities issued by the Central Bank   31.5    1,382.8    6,054.1    6,690.0    6,047.8    -97.7%   -99.5%
-Result from derecognition of assets measured at amortized cost   11.6    0.0    0.0    0.0    0.0           
Subtotal   316.5    3,204.4    5,528.6    6,854.5    7,008.4    -90.1%   -95.5%
Exchange rate differences on gold and foreign currency   93.9    513.3    -766.6    377.3    -473.3    -81.7%   -119.8%
Total   410.3    3,717.6    4,762.0    7,231.8    6,535.1    -89.0%   -93.7%

 

In 4Q19, government and corporate securities reflected the AR$0.70 billion gain on the U$S short term treasury notes -Letes-, and the AR$ 0.6 billion gain on the AR$ short term treasury notes -Lecaps- due to price improvements of reprofiled short term AR$ and U$S local treasury notes held by Supervielle.

 

Net Income from US$ denominated operations and securities was AR$225.1 million mainly explained by gains on foreign currency trading with corporate and institutional customers. 4Q19 included the price improvement of reprofiled short term U$S Argentine treasury notes (Letes).

 

Net Income from US$ denominated operations and Securities                      % Chg. 
(In millions of Ps. stated in terms of the measuring unit current at the end of the reporting period)  1Q20   4Q19   3Q19   2Q19   1Q19   QoQ 
Financial Income from U$S Operations   131.0    1,080.9    183.1    -18.4    491.2    -87.9%
NIFFI   96.1    1,080.9    185.7    -21.2    354.1    -91.1%
US$ Government Securities3   57.1    1,032.2    -520.2    53.0    265.2    -94.5%
Term Operations   39.0    48.7    705.9    -74.2    88.9    -20.0%
Interest Income   34.9    0.0    -2.6    2.8    137.1      
US$ Government Securities2   34.9    0.0    -2.6    2.8    137.1      
Exchange rate differences on gold and foreign currency   94.1    513.3    -766.6    377.3    -473.3    -81.7%
Total Income from U$S Operations1   225.1    1,594.1    -583.4    358.9    17.8      

 

1. Includes Gains On Trading From Fx Operations, including retail and corporate and institutional customers

 

2. Securities Held To Maturity

 

3. Securities Held For Trading

 

Net Interest Margin (NIM) of 22.8% was up 384 bps YoY, but declined 597 bps QoQ. Excluding the benefit in 4Q19 from the price improvement in reprofiled short term Argentine treasury notes held by Supervielle in 4Q19, NIM would have decreased 180 bps in the quarter. This decrease reflects: i) the strong increase in assets, mainly driven by higher holdings in Central Bank Leliqs acquired by applying wholesale deposits raised to take advantage of higher spreads on Leliqs, and ii) the abovementioned 2,600 bps decline in the average yield of the Central Bank Leliqs. This was partially offset by the 950 bps decrease in AR$ cost of funds following the decline in market interest rates, and continued lagged repricing of the AR$ loan portfolio. AR$ Loan portfolio NIM in the quarter was 30.0% compared to 28.3% in 4Q19.

 

19

 

 

 

The Tables below provides further information about NIM breakdown corresponding to the Loan Portfolio and Investment Portfolio, Average Assets and Average Liabilities, as well as interest rates both on assets and liabilities and market rates.

 

NIM Analysis   1Q20   4Q19   3Q19   2Q19   1Q19   QoQ (bps)    YoY (bps) 
Total NIM   22.8%   28.8%   17.4%   22.1%   18.9%   -597    388 
AR$ NIM   26.1%   31.2%   27.9%   26.2%   22.3%   -512    380 
U$S NIM   7.5%   20.7%   -17.2%   8.4%   7.1%   -1322    44 
Loan Portfolio   23.9%   21.7%   18.6%   18.9%   18.2%   216    573 
AR$ NIM   30.0%   28.3%   24.2%   24.3%   23.2%   177    683 
U$S NIM   4.2%   3.9%   5.4%   5.3%   4.7%   29    -50 
Investment Portfolio   19.8%   49.0%   18.1%   29.3%   19.4%   -2925    33 
AR$ NIM   20.0%   40.5%   26.0%   32.2%   21.4%   -2053    -147 
U$S NIM   15.9%   139.3%   -57.0%   8.7%   4.3%   -12334    1162 

 

Average Assets   1Q20   4Q19   3Q19   2Q19   1Q19   QoQ (bps)    YoY (bps) 
Total Interest Earning Assets (IEA)   100.0%   100.0%   100.0%   100.0%   100.0%          
AR$ (as % of IEA)   82.3%   76.8%   76.7%   76.6%   77.9%   553    439 
US$ (as % of IEA)   17.7%   21.3%   27.5%   29.8%   30.1%   -365    -1245 
Loan Portfolio (as % of IEA)   68.0%   80.1%   68.8%   68.1%   66.7%   -1214    135 
AR$ (as % of Loan Portfolio)   76.2%   73.2%   70.2%   71.5%   72.7%   304    350 
US$  (as % of Loan Portfolio)   23.8%   26.8%   29.8%   28.5%   27.3%   -304    -350 
Investment Portfolio  (as % of IEA)   32.0%   19.9%   31.2%   31.9%   33.3%   1214    -135 
AR$  (as % of Investment Portfolio)   95.3%   91.5%   91.1%   87.5%   88.4%   387    694 
US$ (as % of Investment Portfolio)   4.7%   8.5%   8.9%   12.5%   11.6%   -387    -694 
Average Liabilities   1Q20   4Q19   3Q19   2Q19   1Q19   QoQ (bps)    YoY (bps) 
Total Interest Bearing Deposits & Low & Non-Interest Bearing Deposits   100.0%   100.0%   100.0%   100.0%   100.0%          
AR$   74.6%   68.1%   65.8%   64.9%   66.9%   650    774 
US$   25.4%   31.9%   34.2%   35.1%   33.1%   -650    -774 
Total Interest-Bearing Liabilities   65.2%   61.5%   63.9%   63.9%   65.8%   368    -63 
AR$   74.6%   67.4%   72.7%   72.8%   75.0%   723    -40 
US$   25.4%   32.6%   27.3%   27.2%   25.0%   -723    40 
Low & Non Interest Bearing Deposits   34.8%   38.5%   36.1%   36.1%   34.2%   -368    63 
AR$   74.7%   69.3%   53.7%   51.0%   51.3%   534    2342 
US$   25.3%   30.7%   46.3%   49.0%   48.7%   -534    -2342 

 

Interest Rates   1Q20   4Q19   3Q19   2Q19   1Q19   QoQ (bps)    YoY (bps) 
Interest earned on Loans   41.0%   45.1%   41.8%   41.4%   39.6%   -403    139 
AR$   51.6%   59.2%   56.5%   55.1%   52.0%   -754    -36 
US$   7.2%   6.7%   7.2%   7.1%   6.8%   53    35 
Yield on Investment Porfolio   39.4%   76.1%   35.8%   56.0%   49.2%   -3673    -982 
AR$   41.5%   71.4%   58.3%   63.0%   50.1%   -2985    -860 
US$   -2.5%   126.2%   -177.1%   7.1%   42.1%   -12877    -4466 
Cost of Funds   17.5%   22.6%   24.3%   22.6%   21.5%   -506    -393 
AR$   22.8%   32.3%   36.2%   34.1%   31.5%   -948    -864 
U$S   2.0%   1.9%   1.2%   1.1%   1.3%   14    70 
Market Interest Rates   1Q20   4Q19   3Q19   2Q19   1Q19   QoQ (bps)    YoY (bps) 
Monetary Policy Rate (eop)   38.0%   55.0%   78.4%   62.7%   68.2%   -1700    -3020 
Monetary Policy Rate (avg)   45.6%   65.3%   71.5%   66.8%   55.8%   -1964    -1017 
Badlar Interest Rate (eop)   27.6%   39.4%   58.9%   47.5%   45.7%   -1188    -1814 
Badlar Interest Rate (avg)   33.2%   48.1%   54.7%   50.9%   41.8%   -1481    -855 
TM20 (eop)   27.0%   40.5%   60.9%   48.6%   48.9%   -1350    -2190 
TM20 (avg)   33.8%   49.2%   57.0%   53.4%   43.5%   -1542    -973 

 

20

 

 

The Table below provides further information about Interest-Earning Assets and Interest-Bearing Liabilities. Sequentially, assets repriced faster than cost of funds.

 

(In millions of Ps. stated in terms of the measuring unit current at the end of the reporting period)

 

    1Q20     4Q19            3Q19            2Q19            1Q19         
Interest Earning Assets   Avg. Balance    Avg. Rate    Avg. Balance    Avg. Rate    Avg. Balance    Avg. Rate    Avg. Balance    Avg. Rate    Avg. Balance    Avg. Rate 
Investment Portfolio                                                  
Government and Corporate Securities   7,660.5    26.7%   7,573.3    91.7%   11,358.6    -72.0%   14,711.9    18.4%   15,470.1    32.4%
Securities Issued by the Central Bank   32,188.3    42.4%   15,960.8    68.7%   33,411.9    72.5%   37,998.8    70.5%   43,757.1    55.3%
Total Investment Portfolio   39,848.8    39.4%   23,534.1    76.1%   44,770.5    35.8%   52,710.7    56.0%   59,227.2    49.3%
Loans                                                  
Loans to the Financial Sector   241.3    4.8%   393.7    49.7%   804.9    39.3%   1,027.2    12.3%   156.4    35.0%
Overdrafts   5,926.9    52.7%   7,016.7    61.5%   8,046.6    70.8%   7,185.0    67.0%   6,947.5    70.1%
Promissory Notes   9,153.4    57.8%   8,785.0    68.8%   9,915.4    68.4%   10,349.0    63.0%   10,202.9    59.6%
Mortgage loans   8,498.3    40.7%   8,371.6    59.3%   8,612.8    38.9%   8,684.6    50.6%   8,673.1    41.9%
Automobile and Other Secured Loans   1,256.0    48.4%   1,473.8    52.1%   1,888.0    50.4%   2,059.0    42.6%   2,450.6    30.4%
Retail Banking Personal Loans   14,725.7    63.1%   15,781.8    62.2%   18,769.0    61.5%   21,742.6    53.2%   24,509.9    50.7%
Consumer Finance Personal Loans   3,048.7    80.4%   3,325.3    73.2%   3,858.0    65.2%   4,676.0    61.3%   5,148.5    56.8%
Corporate Unsecured Loans   11,607.9    54.5%   12,246.7    64.7%   9,857.5    54.7%   10,919.7    57.3%   12,290.7    55.6%
Retail Banking Credit Card Loans   10,246.0    29.0%   10,254.2    34.7%   9,880.7    40.2%   10,224.8    48.4%   11,301.7    42.6%
Consumer Finance Credit Card Loans   2,402.5    38.3%   2,364.5    39.5%   2,352.5    31.5%   2,393.9    43.3%   2,498.3    46.9%
Receivables from Financial Leases   3,199.9    19.2%   3,864.5    23.1%   4,530.6    24.7%   5,077.1    26.2%   5,317.8    28.8%
Total Loans excl. Foreign trade and U$S loans1   70,306.7    49.9%   73,877.8    56.6%   78,516.0    54.0%   84,338.8    53.1%   89,497.5    50.4%
Foreign Trade Loans & US$ loans   18,413.9    7.3%   22,213.1    6.6%   27,514.9    7.2%   28,654.5    7.1%   29,203.2    6.7%
Total Loans   88,720.6    41.0%   96,090.9    45.1%   106,030.8    41.8%   112,993.3    41.4%   118,700.8    39.6%
Securities Issued by the Central Bank in Repo Transaction   1,894.9    43.8%   266.8    58.1%   3,337.9    70.4%   120.8    62.7%   157.8    37.9%
Total Interest-Earning Assets   130,464.4    40.6%   119,891.8    51.2%   154,139.2    40.7%   165,824.8    46.1%   178,085.7    42.9%

 

1.In 1Q20, 4Q19, 3Q19, 2Q19 and 1Q19 include AR$2.7 billion, AR$ 3.6 billion, AR$4.1 billion, AR$3.6 billion and AR$ 3.2 billion respectively of US$ loans, mainly credit cards with US$ balances.

 

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Interest Bearing
Liabilities & Low &
Non-Interest Bearing
Deposits
   1Q20     4Q19     3Q19     2Q19     1Q19         
(In millions of Ps. stated in terms of the measuring unit current at the end of the reporting period)   Avg.
Balance
    Avg.
Rate
    Avg.
Balance
    Avg.
Rate
    Avg.
Balance
    Avg.
Rate
    Avg.
Balance
    Avg.
Rate
    Avg.
Balance
    Avg.
Rate
 
Time Deposits   49,135.4    34.0%   38,477.4    47.4%   51,439.1    46.6%   49,701.4    41.3%   60,014.1    38.0%
AR$ Time Deposits   44,763.3    37.2%   34,663.9    52.4%   45,542.0    52.4%   42,582.4    48.0%   51,916.7    43.6%
FX Time Deposits   4,372.1    1.7%   3,813.5    1.8%   5,897.1    1.1%   7,119.0    1.1%   8,097.4    1.4%
Special Checking Accounts   22,759.2    16.1%   18,053.9    20.3%   26,652.8    23.6%   32,383.0    26.0%   33,475.8    24.7%
AR$ Special Checking Accounts   14,600.5    25.0%   7,931.5    45.6%   13,802.4    45.4%   18,414.7    45.5%   22,136.1    37.1%
FX Special Checking Accounts   8,158.6    0.3%   10,122.3    0.4%   12,850.4    0.2%   13,968.3    0.3%   11,339.6    0.4%
Borrowings from Other Fin. Inst. & Medium Term Notes   14,682.0    22.2%   20,605.2    33.2%   21,900.9    36.1%   28,385.0    35.8%   28,941.7    32.3%
Subordinated Loans and Negotiable Obligations   2,158.8    7.2%   2,388.5    4.8%   2,335.0    7.3%   2,231.0    6.9%   2,207.8    6.5%
Total Interest-Bearing Liabilities   88,735.4    26.8%   79,524.9    36.3%   102,327.8    37.5%   112,700.5    34.8%   124,639.3    32.5%
                                                   
Low & Non-Interest Bearing Deposits                                                  
Savings Accounts   27,669.7    0.2%   28,116.0    1.3%   33,657.2    1.6%   36,733.3    1.4%   35,934.9    0.3%
AR$ Savings Accounts   17,951.1    0.3%   17,330.7    2.1%   16,051.1    3.3%   17,427.1    2.9%   17,526.9    0.5%
FX Savings Accounts   9,718.6    0.0%   10,785.3    0.0%   17,606.2    0.0%   19,306.2    0.0%   18,408.1    0.0%
Checking Accounts   19,693.3         21,634.5         24,148.9         26,873.5         28,762.7      
AR$ Checking Accounts   17,420.9         17,167.9         14,979.1         15,024.7         15,640.3      
FX Checking Accounts   2,272.4         4,466.6         9,169.9         11,848.8         13,122.4      
Total Low & Non-Interest Bearing Deposits   47,363.0         49,750.5         57,806.1         63,606.8         64,697.6      
                                                   
Total Interest-Bearing Liabilities & Low & Non-Interest Bearing Deposits   136,098.5    17.5%   129,275.5    22.6%   160,133.9    24.3%   176,307.3    22.6%   189,336.9    21.5%
AR$   101,583.3    22.8%   88,084.6    32.3%   105,446.2    36.2%   114,465.1    34.1%   126,665.2    31.5%
FX   34,515.2    2.0%   41,190.9    1.9%   54,687.7    1.2%   61,842.2    1.1%   62,671.7    1.3%

 

 

AR$ Liabilities. Avg. Balance   1Q20        4Q19        1Q19     
(In millions of Ps. stated in terms of the measuring unit current at the end of the reporting period)   Avg. Balance    Avg.
Rate
    Avg. Balance    Avg.
Rate
    Avg. Balance    Avg.
Rate
 
Interest-Bearing Liabilities                              
Time Deposits   44,763.27    37.2%   34,663.94    52.4%   51,916.70    43.6%
Special Checking Accounts   14,600.52    25.0%   7,931.53    45.6%   22,136.13    37.1%
Borrowings from Other Fin. Inst. & Medium Term Notes   6,847.45    41.4%   10,990.49    57.4%   19,445.23    45.6%
Subordinated Loans and Negotiable Obligations   0.00    -    0.00    -    0.00    - 
Total Interest-Bearing Liabilities   66,211.25    34.9%   53,585.95    52.4%   93,498.06    42.5%
Low & Non-Interest Bearing Deposits                              
Savings Accounts   17,951.13    0.3%   17,330.71    2.1%   17,526.86    0.5%
Checking Accounts   17,420.89    0.0%   17,167.93    0.0%   15,640.31    0.0%
Total Low & Non-Interest Bearing Deposits   35,372.02    0.2%   34,498.64    1.1%   33,167.17    0.3%
                               
Total Interest-Bearing Liabilities & Low & Non-Interest Bearing Deposits   101,583.27    22.8%   88,084.59    32.3%   126,665.23    31.5%

 

22

 

 

US$ Liabilities. Average Balance   1Q20        4Q19        1Q19     
(In millions of Ps. stated in terms of the measuring unit current at the end of the reporting period)   Avg. Balance    Avg.
Rate
    Avg. Balance    Avg.
Rate
    Avg. Balance    Avg.
Rate
 
Interest-Bearing Liabilities                              
Time Deposits   4,372.13    1.7%   3,813.46    1.8%   8,097.40    1.4%
Special Checking Accounts   8,158.64    0.3%   10,122.35    0.4%   11,339.62    0.4%
Borrowings from Other Fin. Inst. & Medium Term Notes   7,834.59    5.5%   9,614.70    5.6%   9,496.45    5.2%
Subordinated Loans and Negotiable Obligations   2,158.82    7.2%   2,388.48    4.8%   2,207.77    6.5%
Total Interest-Bearing Liabilities   22,524.18    2.3%   25,938.99    2.5%   31,141.24    2.1%
Low & Non-Interest Bearing Deposits                              
Savings Accounts   9,718.62         10,785.34         18,408.07      
Checking Accounts   2,272.41         4,466.57         13,122.40      
Total Low & Non-Interest Bearing Deposits   11,991.02         15,251.91         31,530.47      
                               
Total Interest-Bearing Liabilities & Low & Non-Interest Bearing Deposits   34,515.20    1.5%   41,190.90    1.9%   62,671.71    1.1%

 

In the quarter, AR$ loans benefitted from continuing repricing in Personal Loans and lagged repricing in commercial loans, as Peso loans rates decreased on average 675 bps QoQ, while market interest rates decreased 1,480 bps in the quarter.

 

In 4Q19, AR$ and US$ yield on investment portfolio benefitted from price improvements of reprofiled Argentine short term AR$ and US$ treasury notes. In 3Q19, the investment portfolio was impacted by price declines after the debt reprofiling announced by the Argentine government in August 2019.

 

AR$ cost of funds decreased 950 bps in the quarter due to a 1,750 bps decrease in AR$ rate of interest bearing liabilities following market interest rates which was partially offset by a 23.6% increase in AR$ Interest Bearing Liabilities average volumes while AR$ Low & Non-Interest Bearing Deposits average volumes increased 2.5%.

 

US$ cost of funds decreased 40 bps in the quarter following industry trends.

 

Yield on interest-earning assets includes interest income on loans as well as results from the Company’s AR$ and dollar denominated investment portfolio. Yield on interest-bearing liabilities includes interest expenses but it does not include the exchange rate differences and net gains or losses from currency derivatives or from the adjustment to FX fluctuation of the FX liabilities. The yield on interest-bearing liabilities shown on this table for 1Q20 lacks the negative impact of the 8% increase of the FX rate as of March 31, 2020 compared to the FX rate as of December 31, 2019, thus presenting an inaccurate rate. The full impact is seen when also taking into account the Exchange rate differences on gold and foreign currency line in the income statement.

 

23

 

 

Assets & Liabilities. Repricing Dynamics

 

ASSETS    mar-20   dec-19   sep-19   jun-19   mar-19 
AR$    Avg.
Repricing
(days)
   % of
total AR$
Assets
   Avg.
Repricing
(days)
   % of
total AR$
Assets
   Avg.
Repricing
(days)
   % of
total AR$
Assets
   Avg.
Repricing
(days)
   % of
total AR$
Assets
   Avg.
Repricing
(days)
   % of
total AR$
Assets
 
Total AR$ Assets     134         167         150         158         154      
Cash     1         3         1         3         3      
Cash (without interest rate risk)          16%        16%        8%        12%        2%
Government & Corporate Securities     39    31%   104    11%   57    31%   44    38%   72    31%
Total AR$ Loans     215    40%   184    59%   217    47%   249    44%   257    44%
Prommisory Notes     30    6%   50    9%   70    6%   93    6%   49    6%
Corporate Unsecured Loans     140    6%   100    10%   135    6%   158    5%   154    6%
Mortgage     30    6%   30    8%   30    6%   28    6%   28    5%
Personal Loans     538    11%   475    15%   516    14%   541    15%   524    16%
Auto Loans     367    1%   245    1%   260    1%   300    1%   424    1%
Credit Cards     121    8%   110    12%   98    9%   103    8%   104    8%
Overdraft     19    4%   18    5%   21    5%   15    4%   21    3%
Other Loans     75    2%   58    2%   67    2%   48    2%   59    2%
Receivable From Financial Leases     379    1%   371    1%   405    2%   402    2%   425    2%
Other Assets (without interest rate risk)          9%        12%        9%        5%        5%
US$     Avg.
Repricing
(days)
    % of
total U$S
Assets
    Avg.
Repricing
(days)
    % of
total U$S
Assets
    Avg.
Repricing
(days)
    % of
total U$S
Assets
    Avg.
Repricing
(days)
    % of
total U$S
Assets
    Avg.
Repricing
(days)
    % of
total U$S
Assets
 
Total U$S Assets     261         278         254         216         244      
Cash     1    15%   3    16%   1    17%   3    17%   3    16%
Cash (without interest rate risk)          20%        21%        17%        25%        21%
Government & Corporate Securities     1    0%   28    1%   44    2%   101    3%   178    5%
Total U$S Loans     322    51%   343    50%   306    55%   280    44%   316    47%
Receivable From Financial Leases     583    5%   599    5%   657    5%   654    3%   639    3%
Other Assets (without interest rate risk)          6%        5%        3%        5%        5%
LIABILITIES                                                    
AR$     Avg.
Repricing
(days)
    % of
total u$s
Liabilities
    Avg.
Repricing
(days)
    % of
total u$s
Liabilities
    Avg.
Repricing
(days)
    % of
total u$s
Liabilities
    Avg.
Repricing
(days)
    % of
total u$s
Liabilities
    Avg.
Repricing
(days)
    % of
total u$s
Liabilities
 
Total AR$ Liabilities     35         67         49         54         35      
Deposits     29    86%   42    78%   34    79%   43    77%   20    76%
Private Sector Deposits     29    83%   42    74%   32    75%   43    74%   20    73%
Checking Accounts (without interest rate risk)          34%        43%        32%        29%        24%
Special Checking Accounts     1    13%   2    1%   1    10%   3    12%   3    20%
Time Deposits     27    29%   31    25%   25    31%   32    28%   31    30%
Public Sector Deposits     34    3%   42    4%   78    4%   34    3%   24    2%
Other Sources of funding     90    6%   187    9%   175    7%   185    6%   72    18%
Other Liabilities (without interest rate risk)          5%        6%        4%        5%        5%
US$     Avg.
Repricing
(days)
    % of
total u$s
Liabilities
    Avg.
Repricing
(days)
    % of
total u$s
Liabilities
    Avg.
Repricing
(days)
    % of
total u$s
Liabilities
    Avg.
Repricing
(days)
    % of
total u$s
Liabilities
    Avg.
Repricing
(days)
    % of
total u$s
Liabilities
 
Total U$S Liabilities     66         75         81         96         206      
Deposits     20    66%   13    67%   12    68%   25    82%   37    77%
Private Sector Deposits     20    62%   13    61%   12    58%   25    66%   37    58%
Checking Accounts (without interest rate risk)          27%        29%        26%        47%        42%
Special Checking Accounts     1