Grupo Supervielle Q3 2024 Earnings Call Transcript

Quartr
Provided by Quartr
November 26, 2024

There are 9 speakers on the call.

Operator

Good morning, everyone, and welcome to Grupo Supervielle Third Quarter 2024 Earnings Call. I'm Anna Barthesay, Treasurer and IRO. Today's conference call is being recorded. As a reminder, all participants will be in listen only mode. To ask questions during the Q and A session, ensure your first and last name appear on the Zoom platform.

Operator

Questions can be asked by voice or through the Q and A box. Speaking today will be Francisco Supervielle, our Chairman and CEO Gustavo Paco Manrique, Banco Supervielle's recently appointed CEO and Maria Noviglia, our Chief Financial Officer. Also joining us for Q and A is Thibaut Pizzulli, CEO of Libertadine. All will be available during the Q and A session. Before we begin, I'd like to remind you that today's call may be may include forward looking statements, which are based on management's current expectations and beliefs and subject to risks and uncertainties.

Operator

For more details, refer to the forward looking statements section in our earnings release and recent SEC filings. Andricio, please go ahead.

Speaker 1

Thank you, Anna. Good morning, everyone, and thank you for joining us today. Turning to Slide 3. Earlier this year, we began an heightened effort to drive targeted credit expansion. And today, we are pleased to report that sustained loan growth momentum continued in the Q3 and into the Q4 today.

Speaker 1

Our loan book expanded 15% sequentially and 60% year to date in real terms, gaining 60 basis points in market share since the beginning of the year. Furthermore, higher margin retail loans including personal and auto gained share of our total portfolio. Total deposits were up in the high teens mainly driven by US deposits which stand at a record high following the tax amnesty. Year to date, deposits gained 60 basis points in market share. Fee income also showed strong growth sequentially with solid contributions across our banking, asset management and online brokerage platforms.

Speaker 1

Asset quality remains strong with the non performing loans ratio steadied at a historic low. At the same time, net interest margin normalized reflecting lower inflation and the evolving interest rate environment. Now moving to an update of our business highlights. 1st, mobile transactions represented 56% of total transactions cementing it as our leading channel and reflecting strong customer adoption. On the retail side, our loan book delivered exceptional growth, expanding 44% quarter over quarter.

Speaker 1

Car loans stood out, doubling in volume and reinforcing our position as the number 2 lender in this segment. Mortgages and personal loans also grew 42% 41%, respectively. These achievements highlight our commitment to delivering tailored financial solutions that meet the evolving needs of our customers supported by a seamless digital experience. 2nd, our corporate loan book remains stable in real terms quarter over quarter and up 54% to date. Encouragingly, we observed a significant uptick in demand for U.

Speaker 1

S. Dollar denominated loans in October underscoring the momentum in key export oriented sectors particularly oil and gas where we're offering attractive tailored financial solutions. 3rd, Invartion Online continues to strengthen its position as the leading online brokerage platform in the country, contributing 21% of our total fee income this quarter. We are pleased to report that our active clients reached a record 580,000 representing a 14% sequential increase with transaction volumes up 21% during the same period. This good performance reflects the strong appeal of our integrated digital services.

Speaker 1

Noteworthy, Ratino 9 is playing a key role complementing Banco Superviel in channeling corporate debt issuances to its retail customer base. Moreover, assets under custody reached a record of $1,200,000,000 Lastly, we continue to expand our insurance operation achieving a 36% quarterly growth in car insurance. A key milestone this quarter was launch of our digital insurance solutions for corporate clients through our virtual hub, which enhances our ability to meet the evolving needs of businesses while streamlining accessibility and services. Looking ahead, while profitability bottomed out in the Q3 as anticipated on our prior earnings call, we are seeing a rebound in the Q4 and are on track to meet our full year guidance of 15% return on equity. Longer term, we see significant opportunities to further deepen market penetration.

Speaker 1

Credit remains underutilized in Argentina, represented just 6% of GDP. At the same time, our ongoing focus on digital innovation, our operational efficiency equips us to serve our clients more effectively and drive shareholder value. Our strategic initiatives combined with our strong capital base position us well to support Argentina's ongoing recovery. Before Mariano discusses the financial details of the quarter, I want to make to take a moment to formally introduce and welcome Gustavo Paco Manriquez, the new CEO of Banco Superviel as well introduce Diego Picculli, who has been leading Invati Online since July 2022 and will be available in the Q and A session. Banco Supervielle is the largest operation in the group.

Speaker 1

We are pleased to welcome Paco who assumed the CEO position in the bank on October 1. As CEO, Paco brings over a decade of experience leading 1 of the leading private banks in Argentina as well as a broad international experience. We have accomplished a lot over the past few years in positioning the bank to meet the evolving and changing customer banking needs. Paco will now steer the bank through its next growth phase. We are excited about the prospects ahead for the bank and look forward to working with Paco as we realize these opportunities.

Speaker 1

With that, let me turn the call over to Paco so that he can introduce himself and say a few words.

Speaker 2

Thank you, Patricio, for the warm welcome and good morning for all of you. It's a pleasure to be participating in my first earning call at Supervielle. This is an exciting time for the banking sector in Argentina as the country continues its economic recovery. Here at Banco Supervielle, we are well positioned to be a significant participant in the recovery. And I'm impressed with the high level of technology and human capital that we have here in the bank, which combined which is strong capitalizations, plays the bank well to maximize the potential energy.

Speaker 2

And I look forward to leading the bank through its next growth phase. While it's very early days, I just assumed my new position on October 1, my near term and long term priorities will be focused basically pursuing growth initiatives while improving profitability. I have found very attractive opportunities to further expand our business, leveraging our geographic footprint and position in key business segments. I expect to share a little bit more of my perspective when we present the 4th quarter results, basically the next quarter results. Over the coming months, I look forward to meet you, our institutional shareholders, another member of the investment community, both here in Argentina and abroad.

Speaker 2

Now let me turn the call over to Mariano to review of all our financial performances.

Speaker 3

Thank you, Paco. As anticipated in our prior call, we reported a lower ROE this quarter of 5% in real terms, as we transition our asset base from a large share of government securities to growing private sector loans, although still at historic low leverage levels. This was mainly driven by a 29% sequential drop in net financial income, reflecting the decline in inflation and the yield on government securities and loans, partially offset by a lower cost of funding amidst the lower interest rate environment. As we transition from government securities to private sector loans, margins are reduced in this first stage and are expected to increase as we complete the transition and also grow in higher margin loans. Operating expenses increased 2% quarter on quarter, impacted by severance charges reported in the quarter.

Speaker 3

Note that included these one time charges, operating expenses would have declined nearly 5% sequentially. By contrast, ROE benefited from a 25% increase in net fee income, driven by good performances across all businesses, particularly brokerage and asset management fees, as we increase assets under management and active customers at Inverteo Line. A 22% contraction in loan loss provisions, reflecting healthy growth also contributed to profitability. This was complemented by a 35% decline in other net losses attributable to lower turnover tax and provisions for strategic initiatives together with a 31% drop in inflation adjustment benefiting from lower inflation in the quarter. Turning to Slide 6.

Speaker 3

We continue to shift our asset base towards a larger mix of private sector loans, reaching 39% of total assets from 36% in the 2nd quarter, as shown in the bar chart. By contrast, investment in government securities and Central Bank repos declined 17 percentage points sequentially to 23% of total assets. Loan growth was driven primarily by a 44% increase in retail loans, reflecting our ability to capture rising credit demand across Argentina's improving economic landscape. Car loans remain the standout performer within Britain. Moving on to Slide 7.

Speaker 3

Total deposits grew 17% sequentially, supported by a 90% increase in U. S. Dollar denominated deposits in original currency. Growth was largely driven by the recent tax amnesty program, which has driven significant inflows of funds into the financial system. As a result, U.

Speaker 3

S. Deposits share of total deposits increased by 12 percentage points to 28%. This positive trend continued into October with U. S. Deposits up 12%.

Speaker 3

Peso deposits, in turn, remained stable. Lastly, the loan to deposit ratio stood at 58%. Turning to Slide 8. As anticipated, the climate inflation has reduced the impact of inflation linked instruments in our portfolio. Peso yields also came down driven by a lower interest rate environment and the Central Bank's policy adjustment.

Speaker 3

This reflects the broader normalization of monetary policy, which has reduced the unusually high spreads seen in prior quarters. These headwinds were partially offset by a decline in our funding costs, in tandem with policy rate adjustments. As a result, net financial income declined 29% sequentially to MXN161 1,000,000,000. Looking ahead, growth in higher NIM led in products together with an increased leverage are expected to positively contribute to improved net financial income. Turning to Slide 9.

Speaker 3

CET1 ratio declined 2 10 basis points sequentially to slightly over 19% at quarter end. This reflects sequentially higher risk weighted assets due to the continued acceleration of private sector loan growth, along with higher deductions on deferred taxes. Capitalization level provides ample flexibility to continue expanding our loan portfolio, while maintaining a prudent approach to risk management. On Slide 10, we discuss Argentina's evolving macroeconomic landscape. A key highlight this quarter was the successful tax amnesty program, which brought in over $20,000,000,000 in deposits.

Speaker 3

Importantly, inflation has eased more rapidly than expected with 2024 projections now revised to show improvement to an annual rate of 120%, down from 127% in Europe. The regulation initiatives and fiscal discipline achieving a surplus of 0.5% as of October are driving a gradual economic recovery. Throughout the year, we have seen significant improvement across many of the key macro drivers. However, some challenges remain, the most important in growth in the Central Bank's net reserves, which remain negative. Additionally, maintaining public support is crucial as reforms continue to be rolled out and economic activity and employment recover.

Speaker 3

To further support this recovery, a key milestone will be the lifting of FX restrictions. In conclusion, we are encouraged by the improving macroeconomic indicators and the progress made towards a more sustainable, open and competitive economic environment in Argentina. More specifically, the financial sector is in the early stages of recovery with loan growth inflecting positively. With respect to Grupo Supervielle, we have a solid foundation in place and are well positioned to benefit as demand continues to recover. To wrap up, let's look ahead at our perspectives for the remainder of 2024 on Slide 11.

Speaker 3

Based on 4th quarter performance to date, we maintain our ROE guidance of 15% for the full year. As inflation continues to ease, we now expect peso loans for 2024 to expand between 70% to 80% in real terms, up from prior expectations of 40%, with retail loans increasing share of total loans. The NPL ratio is expected to remain below 1% this year and to start converging in 2025 to levels aligned with higher credit demand, up from the current historical lows. In turn, net cost of risk is anticipated to remain at 9 months, 24 levels for the full year. Note that following the anticipated NIM contraction experienced in 3Q, we expect NIM for the Q4 to stabilize at 3Q levels.

Speaker 3

In terms of fee income, we expect repricing of the bulk of bank fees to individuals to lag inflation and thus to grow below inflation levels. By contrast, brokerage and asset management fees are anticipated to grow significantly above inflation as monthly active users and assets under management increase. Lastly, as credit demand continues to recover, we now anticipate closing the year with a CET1 ratio between 16% to 18% compared to our previous expectations of 17% to 20%. Looking ahead to 2025, we expect inflation levels to continue resilient to around 30%, which together with growth in economic activity, employment and salaries in real terms will create additional opportunities for growth. In this environment, Superviel remains committed to leveraging its diverse product portfolio, solid capital base and customer first approach to deliver long term value.

Speaker 3

This ends our prepared remarks. We are ready to open the floor for questions. Anna, please go ahead.

Operator

Thank you, Mariano. At this time, we will be conducting the question and answer The first question comes from Ernesto Avedondo with Bank of America.

Speaker 4

Good morning. Thank you, Ana, and hi, good morning, Patricio, Gustavo and Mariano, and good morning to all your team and welcome, Gustavo. Thank you for the opportunity to ask questions. My first question will be on your net interest income. So considering that all the Argentine banks are transitioning from lower investment securities, but at the same time to higher financial interests from a stronger loan book expansion, When do you expect in your case that NII will return to a G over G growth?

Speaker 4

And for this assumption, how should we consider the evolution of the loan to deposit ratio and your capital ratio? Yes.

Speaker 3

Hi, Ernesto. Thank you for your question. As you said, we are transitioning to changing the mix of our assets with growing our loan portfolio. First, as interest rates declined sharply during the 1st 6 months of the year, We increased also anticipated demand. We increased our loan portfolio 60% year to date, and we continue expanding throughout the rest of the year.

Speaker 3

In this transition, we also reduced our securities portfolio where we don't have the extraordinary results that we saw mainly in the Q1 of the year. So NIM has been decreasing, but we expect NIM to start recovering as we continue this transition, but also we review interest rates, which are which continue to decline, but at a lower pace. And we also transition within our loan growth to a higher weight in higher yield products, mainly personal loans, car loans. So that will balance the mix between individuals and corporates. And that will allow us to sustain a good level of NIM as well as inflation continues to decrease, which has also a lower impact in the inflation adjustment line item of the income statement.

Speaker 3

And then regarding capital, as we continue

Operator

Okay. We are sorry. So, Mariano, I think you can go on. Okay. And I thought, can you hear us well?

Speaker 4

Yes, yes, perfect.

Operator

No, it's something

Speaker 3

that we have. Okay. We have those connections. I'm sorry. So I was saying we will continue growing our loan portfolio, changing the mix in product

Operator

and

Speaker 3

also we will the leverage of the balance sheet. So that will allow us also to sustain our financial income. And then as we continue our low growth in real terms at high growth rates, we'll continue to use capital. So that's why we now project a capital ratio at the end of the year lower than the one we are reporting at the end of the 3rd year. So it will go from 19% to between 17% 18%.

Speaker 3

And we'll continue that trend depending on the level of growth we achieved, the demand we see for credit into 2025.

Speaker 4

Thank you, Mariano. Just a follow-up on this. So loan to deposit ratio remains kind of low for all the Argentine banks, given what you said now this normalization, loan book expansion. How should we think about the evolution of this loan to deposit ratio? Should we expect, for example, next year to be at 60% and then 26% at 70%.

Speaker 4

Just wanted to understand how should we think about the evolution of this?

Speaker 3

Yes. You're correct, Ernesto. We expect that rate to continue to increase as we transition from Central Bank and Treasury Securities to loans. So now we are close to 60%. And during 2025, we expect to increase that ratio to levels of 70%.

Speaker 3

Note also that, that increase isn't as sharp as important as our loan growth because we will also be growing deposits. So we grow loan at a higher pace, but we also grow in deposits. So it won't go to 90% in 1 year. And we expect it to go from 60%, which is the level we are now, to the range of 70%.

Speaker 4

Perfect. Thank you. And then for my second question is on your investment securities held to maturity. So given the impact of lower rates, inferior inflation, is there a possibility that you'll have to recognize an impairment at some point? I don't know if you have talked to your external auditor and I don't know if they have recommended something about this.

Speaker 3

No. Regarding securities that we held to maturity and according to IFRS, we accrue the internal rate of return at the beginning of the instrument. So in the case of these inflation linked bonds, the majority of them because then we have also a trading portfolio, which is at market value, but the vast majority of our inflation linked bonds are held to maturity. So that's according to our today accounting standards, they accrue inflation and we will continue doing that at maturity. We will only recognize a loss if the bond is trading below its book value and we sell them.

Speaker 3

But our intention is to keep that because that was a hedge against inflation, which now seems like it isn't as necessary as before, but it's still they are covering against inflation and any uptick in inflation that we will see. But also regarding our balance sheet composition, it's also important to remind that we are our loan portfolio growth position positioning our balance sheet in loan in fixed rate. So with the inflation linked bonds, we only cover our shareholders' equity and then we are positioning fixed rate in order to take any profits from interest rate declines.

Speaker 4

Declines.

Operator

Our next question comes from Carlo Gomez Lopez at

Speaker 5

Hello, good morning. First of all, welcome and good luck to Gustavo in his new role. We hope he's very, very successful here like he was in his previous one. So for the bank, I don't think you have given us your economic forecast for next year, not that anybody really knows. But what are you counting on in terms of GDP growth, inflation, the currency for 2025?

Speaker 5

And also, you mentioned that you will be consuming some capital, obviously, since you're growing so fast. I mean, if you are consuming about 2% of CET1 per quarter, I mean, that suggests that within, I would say, 6 quarters or so, you might want to add capital to your growing business. Is that a realistic conclusion? Thank you.

Speaker 1

Let me take that answer first to answer first initially and then I pass it on to Mariano. We in terms of what we have seen in the Q3 compared to the Q2, there was a huge increase in retail loan penetration. And we plan to continue to pursue on this trend in order to have I'm not sure

Speaker 3

on this

Operator

call, right? This is for me. Thank you,

Speaker 1

Jens. In order to have a balance sheet that is strong in terms of NIM creation, so basically, this is going to be a feature of and I believe that with declining inflation, the credit penetration among individuals would be a feature an expanding feature of all the banking system, but in our case, certainly it would be the case. So, Mariano, do you want to continue on adding on that, please?

Speaker 3

Yes, sure. Thank you, Patricio. And thank you, Carlos, for your question. Let me tell you first what are our projections, which we are working with. Regarding GDP, we now foresee a GDP decline for this year at 2.9%, which is a lower decline that we expected some quarters ago because we are seeing good levels of activity and the economy is starting to grow in the 4th quarter more rapidly.

Speaker 3

So that will reduce the make a smaller reduction in the GPP for this year. And for 2025, we expect an increase between 4% 5%, which is a very strong increase in activity that we expect also it will foster employment. And then regarding inflation, we expect this year to end at 120%. And for next year, we expect a level of 30%, which is a very sharp decline in inflation, supported by the last monthly inflation figures. And with that trend, we expect interest rate to continue declining, maybe not as fast as this year.

Speaker 3

So they can go as low as 30% or 31% during 2025. And the exchange rate where we expect the government to continue the growing peg of 2%. And if inflation continues to go down, they may also lower that the valuation monthly rate of from 2% to 1%.

Speaker 5

Okay. And in terms of your capital needs?

Speaker 3

Regarding capital needs, with our current capital, we can grow 100% in real terms. And although we foresee a very high growth for next year, which will be higher than 50%, maybe 68% also real terms. We are not expecting to consume all that capital within next year. And when I say 100%, I refer with a capital ratio not going below 80% which is above the regulatory level. So clearly, it will be lower than the end of this year.

Speaker 3

So it will lower than 17% next year because growth we expect it to be very strong also and we also expect to outperform the industry. But we are not expecting a need to raise capital in 2025.

Operator

25. Our next questions come from Brian Flores with Citi.

Speaker 6

Hi, Tim. Good morning. My first question is a follow-up on Carlos' question, because I think it's very important. You have grown year to date risk weighted assets, 180%, loans only 60%, right? Your Tier 1 is at 19%.

Speaker 6

The systems ratio is at 34%. And as you have said, you have gained 60 bps in market share. So maybe a question for Paco, right, that is beginning here. You mentioned your priority is to grow. So it seems that the position on capital is limited, right?

Speaker 6

So how are you thinking about growing from a strategic perspective? Can you like mention the segments that you want to attack? And then also I know I'm sorry to insist on this point, but I know Mariano mentioned you do not see any needs to raise capital on 2025. However, for example, Galicia just mentioned that they expect to end 2025 with the levels of Tier 1 that you already have in 2024. So just can you just maybe help us understand how could you continue gaining market share when everybody is overfunded and it seems like in a better position to grow just it will be great.

Speaker 6

And then I'll ask my second question. Thank you.

Speaker 2

Thank you, Carlos. I've been here for 40 days. In those in this area, we are working very hard and very fast in order to define initiatives for the next year, in order to grow very fast and very deep. We I have been looking all the areas because I want to make a huge growth in commercial sites, commercial volumes in term of a plan swale law like payroll services accounts, also increasing our we allow those provisional sites also and increase our Cajal overall saving accounts and checking accounts. Basically that in the individual size.

Speaker 2

And also we want to increase our volumes, our position and also market shares in corporate size, basically in SME segment and also big corporate. So we are defining a very strong, very deep and very extended plan in order to have all the initiatives, all the plans in place in order to grow and present plan for growing for the next year, I will present very quickly in the next quarter. So we are working on that. If I may

Speaker 1

add, I would say that as I said in the previous answer, we are already we will focus in hiring loans and this has been already what we saw the comparison between Q3 and Q2. There is already you can see some hints of the things we could do next year to make sure that our growth is not only strong, but also very profitable. So we can build capital and sustain our growth looking forward. We understand your comparisons you've made with other banks, but we are pretty confident that the way we are building at this in terms of our strategic plan will make sure that the growth is sustainable.

Speaker 2

One more thing Carlos. I can't speak or explain more about this plan or this initiative because we are building up and they are strategic, But you will have a full disclosure and full explanation in the next quarter. But believe me, we are working on that. And I feel confident to reach an excellent plan for the next year for the bank. So in a couple of months, I will show you the plan in the next quarter.

Speaker 6

Super clear. Thank you very much. And also, Michael, question

Speaker 2

I can't say more. So sorry, Carlos, I can't say more.

Speaker 6

No, don't worry. We'll, of course, touch upon that plan as soon as it is possible. My second question is on the investment platform, right? We know it's very successful and it's can you maybe elaborate a bit on what are the plans for this investment platform? Where do you see it maybe in the next, I don't know, 18 months?

Speaker 6

Because I know, obviously, real wages could also bring some tailwinds here, right, as people have more available income to not only save, as you mentioned, increase deposits, but also maybe invest, right? So how are you thinking strategically about this initiative? Because we know it's very well positioned in the market. So it would be great to hear from you.

Speaker 1

Yes, sure.

Speaker 7

Thank you, Graham, for the question. So in a more stable economic environment, we believe that some avenues growth for you all will come from our business in the U. S. Securities. Today, this is very frictional for Argentinians because of regulations, but it's something Argentineans like and used to use a lot when we were able to offer that for them.

Speaker 7

We believe our free cash customer will transition to a more invest on hold and also to invest in equities and sovereign bonds and decrease their exposure to FX in Argentina, retail mainly saving dollars. I'm thinking dollars. We believe that will this will continue, but reduce the amount of dollars they are saving and start investing. That's our goal to show them the path to do that. Of course, we think that Argentina will still want to buy dollars and we are working on different options to give our customers the best available options for them to invest at the best price.

Speaker 7

So this nowadays is stolarmeb in the future we believe could be another different vehicle or form. So we are working on that too. We are also looking for our small business in private banking and SMBs. In private banking, we have a small but growing business and we want to expand the customers in that business and also expand the business with them with new products for both cellular for them. For a small and medium business, we are looking for a streamlined operation.

Speaker 7

We are very close to launch 24 hours onboarding and also 20 fourseven cash management feature. So and a financial advisor for them to help them make financial decisions. So we believe that those will be the avenues. Also we are working in investment as a service product. We are working very hard with the Super Heavy LeBank.

Speaker 7

They will be our 1st customer too. So we're thinking that product as a way to reach more customers. The customers that are not yet in Europe, we believe would be very well satisfied with our products. So this is something that we are very excited about too.

Speaker 1

Thank you, Diego. Let me add a little bit. I think that it's very interesting that what we have built in terms of technology over the last year and a half in terms of an IP infrastructure in the bank and in Latin online that allows us to today to replace and substitute another provider that we have technology provider that we had in the past in order for the cash in and cash out of customers. And what was done in a few minutes, now it's done in seconds. So it's an outstanding performance.

Speaker 1

And this capability is I think it's very interesting because what Diego mentioned in terms of investment as a service that they will provide to Banco Supervielle for our clients to transact investment products both individuals and corporates. This service Invati Online will be able to replicate it in other institutions. So that's a strategic point. Another one is that the retail base of Invati Online is so huge that it has become a relevant player in all distribution of capital markets transactions. To the point that big corporations are already not only addressing a Banco Superviel to make distribution, but also directly in Verfi Online to make distribution of particularly dollar denominated obligations or transactions.

Speaker 1

So I think this is quite relevant. And we believe that capital markets are in its infancy in Argentina as well as credit. So we have a way forward, very interesting.

Speaker 6

No, perfect. Super clear. And just a quick follow-up, Patricio, because as you speak of it, I can see your enthusiasm and your excitement. Do you think this is an asset that will always be part of Supervielle? Or I mean is it on the table at some point to create value, spin it off?

Speaker 6

Just thinking about this.

Speaker 1

For us, what is on the table is what is the best for investors, for our investors, the investors of Grupo Superviel. If we believe that there is an opportunity to deliver value by, let's say, finding an investor directly at Investec online, a strategic investor, of course, we will consider it because this is part of our strategy to gain value. But let me just let me spell out something. As of today, 97% of clients of Invertero 9 are clients from other banks. Only 2.5%, 3% of Invertio 9 clients are Bank of Supergirl clients.

Speaker 1

So that's just to give you a flavor of the opportunities ahead, not only in terms of cross selling, but also in terms of IMBR-two zero nine continuing to be a disruptor in the financial system.

Speaker 6

Perfect. Thank you. Thank you very much.

Operator

Thank you, Brian. The next question comes from Marina Martens with Laden Securities.

Speaker 8

So I have a question regarding your loan book. So while the Q3 showed a slowdown in loan expansion, year to date you still remain above the industry. Looking ahead, do you expect to continue outpacing the industry and gaining market could we also see a rebound in the Commercial segment?

Speaker 3

Hi, Marina. Thank you for your question. Yes, regarding loan growth, the lines that we expect to be more dynamic looking forward are personal loans and car loans in the retail segment. But also we will continue growing on the commercial side, mainly our medium sized corporates that we are targeting, also focusing on the key and most dynamic sectors of the economy, such as the oil and gas sectors, but also across sectors where our corporate client base. We so far, we grew mainly in very short term lending as factoring.

Speaker 3

But for the future, when economic rebound and in the second stage of growth is fostered by economic growth and consumption. We will also expect to grow not only the retail side, but also in normal term for corporate such as leasing for example.

Speaker 2

I would like to add something. Hi, Marina. In order to in terms of oil and gas, we are increasing our capacity and our structure in Newquen in order to capture more businesses and volumes in that sector. So we are increasing our participation, our focus over there.

Speaker 8

Thank you.

Operator

Thank you, Mariana. I don't know, Carlos, if I see your hand raised again. I don't know if you have any question.

Speaker 1

No? No.

Operator

No, I think not. Okay. So I think we can end up our Q and A session today. Thank you for joining us. We appreciate your interest in our company and we look forward to meeting more of you over the coming months and providing financial business updates next quarter.

Operator

I'd like

Speaker 2

to make a

Operator

I'm sorry. Hello?

Speaker 1

A closing statement. Sorry, before you go. I would like to say that I'm very glad to be here in this room with my 2 partners, Diop Sulli, CEO of INVENTIO 9 and Paco Manriquez and CEO of Bango SuperBL. I think that now we have a very strong management team with strong skills in order to build the strategy we need to deliver strong value in the next few years. I am conscious that as of today in the competitive scenario that we have where we compete with Fintechs, neobanks and traditional banks, we need to deliver value proposition on individuals, but also make sure that we continue building on what we are very good franchise on the corporate side.

Speaker 1

Diego and Paco are they have their interest is completely aligned with the loan value creation because they are both, let's say, beneficiaries of a strong stock option plan, which I think is also a feature of the philosophy we want to instill in the company in the terms of that the people that work here think as own business owners and they take decisions to deliver value. Thank you very much.

Operator

Thank you. We close. Okay. So have a nice day. See you next time, next earnings release or with you in many questions many meetings we may have in the future.

Operator

Goodbye.

Powered by Quartr
Earnings Conference Call
Grupo Supervielle Q3 2024
00:00 / 00:00