ASUP: Net loss in Q3 from margin compression, but strong loan/deposit growth and positive 2026 outlook

Q3 2025 saw a net loss due to margin compression and high costs, but strong loan and deposit growth, especially in corporates, and easing monetary conditions signal recovery. Asset quality weakened but is expected to improve, with 2026 guidance pointing to robust loan growth and higher ROE.

Based on Grupo Supervielle SA Sponsored ADR Class B [ASUP] Q3 2025 Audio Transcript — Nov. 26 2025

Attributable net loss of AR$50.3 billion in 3Q25 was driven by regulatory tightening, high interest rates, and record reserve requirements, but post-election optimism and easing conditions signal a gradual recovery. Key segments saw mixed results, with strong loan growth in corporate banking and digital innovation recognized regionally.

Original document: Grupo Supervielle SA Sponsored ADR Class B [ASUP] Interim report — Nov. 26 2025

Navigated a volatile pre-election quarter with strong loan and deposit growth, but profitability was pressured by high interest rates and rising NPLs. Post-election, early normalization is underway, with improved capital ratios and a positive outlook for 2025.

Original document: Grupo Supervielle SA Sponsored ADR Class B [ASUP] Slides Release — Nov. 26 2025

Attributable Net Loss of AR$50.3 Billion Amid Regulatory and Monetary Pressures Ahead of Mid-Term Elections; Sound Capital and Liquidity Position Underpins Growth Strategy

Improving Market Sentiment and Policy Clarity Post-Election Set the Stage for Gradual Recovery

BUENOS AIRES, Argentina--(BUSINESS WIRE)--November 25, 2025--

Grupo Supervielle S.A. (; BYMA: SUPV), ("Supervielle" or the "Company") a universal financial services group headquartered in Argentina with a nationwide presence, today reported results for the three- and nine-month period ended September 30, 2025.

Starting 1Q20, the Company began reporting results applying Hyperinflation Accounting, in accordance with IFRS rule IAS 29 ("IAS 29") as established by the Central Bank.

Commenting on third quarter 2025 results, Patricio Supervielle, Grupo Supervielle's Chairman & CEO, noted: "We are encouraged with what we are seeing in Argentina. The results of the mid-term elections have opened a new and promising chapter for the country and the financial sector as well. We are already seeing the first signs of normalization as interest rates are coming down, liquidity is improving, treasury bond prices have recovered significantly, and consumer confidence is gradually returning. This renewed optimism, together with the government's clear mandate to move forward with long-awaited reforms, is paving the way for a recovery in economic activity and loan demand. Since November, with improving market dynamics and lower funding costs, signaling a gradual recovery in the current operating environment, the bank's performance began to reflect this shift. Additionally, IOL posted record results in October.

These positive developments followed an exceptionally challenging third quarter. The monetary tightening implemented to stabilize the exchange rate led to unsustainably high interest rates and historically high remunerated and non-remunerated reserve requirements that sharply reduced peso liquidity and pressured margins across the financial system. These temporary and extraordinary conditions also impacted credit demand and asset quality across the system, leading to a NIM of nearly 11%, down from close to 21% in the prior quarter, resulting in an attributable quarterly net loss of Ps.50.3 million. Importantly, we are now seeing these conditions begin to reverse, with rates down significantly and reserve requirements starting to ease post-elections.

Throughout this, our core fundamentals remained solid. We maintained a strong capital position with a 13.2% ratio, achieved a 9% sequential increase in fees and continued to deliver efficiency gains, reducing personnel and administrative expenses by 12% year-to-date. While the non-performing loan ratio rose to 3.9%, it aligned to market averages consistent with our more selective origination approach to retail lending. In turn, cost of risk increased to 6.4% in the quarter. Moreover, our non-banking subsidiaries - insurance, asset management, and online retail brokerage - continued to post solid results despite the challenging context in the quarter.

Beyond the short-term headwinds, our strategic initiatives continue to move forward. The evolution of our Supervielle SuperApp remains on track; integrating artificial intelligence, personalization, and open ecosystems to simplify our clients' financial lives. We are attracting new payroll and SME clients through our remunerated account offering, deepening engagement through our official store on Mercado Libre, and enhancing our hybrid customer service model on WhatsApp combining technology with human interaction. The integration of IOL is showing renewed growth momentum reinforcing our banking ecosystem. During the quarter, we also expanded our physical presence with the opening of two new branches to serve the value chains of dynamic industries. One located in Añelo, Province of Neuquén a key hub for Vaca Muerta Oil & Gas development, and the other in the Province of San Juan where Mining is a key industry. These initiatives reflect our long-term commitment to supporting Argentina's economic growth through strategic sectors. We also very recently became an official sponsor of Argentina's national soccer team for the 2026 FIFA World Cup, a partnership that reflects the strength of our brand. Moreover, IOL posted a 4% sequential increase in its active client base, with assets under custody up 33%, transaction volumes rising 22% and fees advancing 47%.

Looking ahead, we remain confident that as financial conditions continue to normalize and reforms advance to drive GDP growth, credit will once again become a key driver of growth in Argentina. This presents a valuable opportunity to further deepen our relationships with corporate customers and become their primary bank, supporting their evolving needs through enhanced cash management solutions and integrated financial services. With a solid balance sheet, a clear strategic vision, and the commitment of our teams, we are well positioned to support our clients and communities in this new phase of recovery and growth," concluded Mr. Supervielle.

Third quarter 2025 Highlights

PROFITABILITY

During the quarter, the Company reported an Attributable Net Loss of AR$50.3 billion in 3Q25, compared to Net Income of AR$14.4 billion in 2Q25 and AR$11.7 billion in 3Q24.

9M25 Net Loss of AR$26.9 billion compared to AR$118.3 billion net income in 9M24.

During the third quarter of 2025, the environment in which the Company operated was affected by pre-electoral systemic and temporary factors. In this context, the government prioritized containing FX and inflation, while the Central Bank implemented highly contractionary monetary measures that affected the financial system and, in particular, the profitability of the banking sector.

Among the main measures, the Central Bank increased reserve requirements to record levels, with effective ratios exceeding 50% of total deposits (including more than 35% in cash), and shifted compliance from a monthly average to a daily basis. Liquidity across the financial system became extremely limited, further constraining credit supply and amplifying pressure on margins.

Additionally, interest rates remained exceptionally high, peaking at more than 40% in real terms for very short-term instruments. These unsustainable levels accelerated the repricing of liabilities relative to assets and weighed on economic activity, pressured employment, and dampened loan demand and asset quality.

Overall, these measures negatively impacted the financial margin and credit growth. In parallel, strict cost control discipline contributed to reducing operating expenses in real terms. In contrast, Net fee income increased in real terms during the period, supported by effective repricing of banking services and higher brokerage fees.

Loan loss provisions increased, YoY reflecting the continued expansion of the loan portfolio, mainly driven by higher retail loan growth since March 2024, a segment that requires higher provisioning levels than commercial loans, together with a deterioration in macroeconomic variables ahead of mid-term elections. The monetary tightening implemented in 3Q25 to stabilize the exchange rate led to unsustainably high interest rates, impacted economic activity, employment and household disposable income, and therefore asset quality across all customers' segments.

During 3Q25, the Company reported a Loss before income tax of AR$81.2 billion, compared to Net Profit before income tax of AR$14.5 billion in 2Q25 and AR$14.1 billion in 3Q24. The sequential decline mainly reflects a 43.1% decrease, or AR$94.7 billion, in Net Financial Income, reflecting the rise in cost of funding following the increase in interest rates and a faster repricing of liabilities than assets, the extraordinary levels of reserve requirements in the quarter, and a negative spread in the mortgage portfolio. Profitability was also impacted by higher Loan Loss Provisions which increased 23.8%, or AR$11.2 billion reflecting the deterioration in macroeconomic variables and the sharp increases in real interest rates ahead of mid-term elections which have weighed on household disposable income and affected credit performance across all customers segments and across industry. These effects were partially mitigated by lower operating expenses and higher fee income. Operating expenses declined 2.0%, or AR$2.5 billion, reflecting the Company's strict cost control discipline, while Net Service Fee Income increased 7.1%, or AR$3.7 billion, driven by banking fee repricing and a higher contribution from the brokerage business during the quarter.

YoY, the decline in profit before income tax was mainly driven by a 41.0% decrease, or AR$87.0 billion, in Net Financial Income, reflecting the aforementioned factors, together with a 330.1% increase, or AR$44.8 billion, in Loan Loss Provisions as a result of the growth of the loan portfolio since March 2024, and particularly retail lending albeit at a more moderate pace since 2Q25, and of the abovementioned macroeconomic trend in the quarter. These effects were partially mitigated by lower personnel and administrative expenses, as well as higher fee and insurance income.

In 9M25, the Company reported a Loss Before Income Tax of AR$55.3 billion, compared to a gain of AR$186.6 billion recorded in 9M24, mainly due to the abovementioned impacts in Net Financial Margin and Loan Loss Provisions, and despite a 12% decline in personnel and administrative expenses, as well as higher fee income. Moreover, 9M24 had benefited from an exceptionally strong financial margin driven by extraordinary gains on government securities.