Grupo Supervielle S.A.

Good morning and welcome to the Grupo Supervielle first quarter 2020 earnings call. The slide presentation will accompany today's webcast, which is available in the investor section of Grupo Supervielle's investor relations website, www.gruposupervielle.com. As a reminder, all participants will be in listen-only mode. There will be an opportunity for you to ask questions at the end of today's presentation. As a reminder, today's conference is being recorded. At this time, I turn the call over to Ana Bartesaghi, Treasurer and IRO. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us today. Speaking during today's call will be Patricio Supervielle, our Chairman of the Board of Directors, who will discuss the overall macroenvironment, and Jorge Ramirez, our Chief Executive Officer and Vice Chairman of the Board, who will review our results for the quarter. Also joining us is Alejandra Norton, Chief Financial Officer, and Alejandra Steinfeld, Chief Operating Officer of the Bank. All will be available for the Q&A session. Please note that starting this quarter, as per central bank regulations, we have begun reporting results applying hyperinflation accounting in accordance with IFRS Rule IAS 29. For its of comparability, we have restated 2019 results quarterly and for the year applying IAS 29 to reflect the effects of inflation adjustment for each period. Therefore, all results in this presentation are presented adjusted for inflation as of March 31, 2020, unless otherwise noticed. For your convenience, we have also included in our earnings report managerial results in nominal terms. This means we are including first Q20 financial results ex-IS29, isolating the IS29 impact for the quarter and also showing quarterly figures for 2019 in nominal terms as they were previously reported until December 31st, 2019. You can find more details on hyperinflation accounting in our earnings report filed yesterday after the close of the market, as well as in the investor education presentation we have uploaded to our IR site, along with earnings materials for the quarter. Before we proceed, I would like to make the following safe harbor statement. Today's call will contain forward-looking statements which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties including as a result of the COVID-19 pandemic and I refer you to the forward-looking statement section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or change events or circumstances. I would now like to turn the call over to our chairman, Patricio Supervielle.

Thank you, Ana. Good morning, everyone. Thank you for joining us today. We hope you and your loved ones are healthy and safe in this challenging time. If you're following the presentation, please turn to slide two. I'm very proud of how quickly our team responded to the first signs of the COVID-19 pandemic, implementing protocols to ensure the health and well-being of our employees and customers while also maintaining the continuity of our operations. Through prudent management, we enter this crisis with a high level of liquidity and comfortable capitalization levels fortifying The organization's long-term sustainability in this rapidly changing environment. Going into this unprecedented period, we have already begun a transformational process spanning the organization. With a high set need to support our customers in a low-touch environment, we have accelerated our digital transformation, adding online functionalities and implemented significant redeployment of ATM infrastructure. We also made requisite adjustment to our operations to promote safe banking across all our customer segments. Importantly, we also provided financial relief in areas that I will go on the next slide. We are supporting our communities through monetary donations and supplies In addition to organizing opportunities for giving by our employees and customers, turning to our financial performance, we delivered high profitability this quarter despite the increasingly challenging macro environment. Efficiency also improved, reflecting the streamline undertaken last year and strict cost control. We reported sequentially higher cost of risk and low loan provision reflecting the adoption of rule IFRS S9 resulting in increased coverage. Both coverage and the NPL ratio benefited from the regulatory easing on debtor classification. Please turn to slide three. On March 19, the government established a nationwide mandatory lockdown which has been extended in several instances and remain current in place. Bank branches opened for specific customers on April 3rd with financial services deemed on essential business starting April 13. Since then, branches have been allowed to open gradually for specific transaction With prior appointment and complying with certain health and safety requirements. Meanwhile, all other banking activities are performed through digital means. To mitigate the economic impact of this health crisis, which resulted in a mandatory shelter in place and shutdown of non-essential businesses, The government and central bank adopted a series of social aid monetary and fiscal measures. As you can see on the left side of this page, some of these measures include a freeze on inflation-adjusted mortgages on permanent residence and auto loan installments and suspension of mortgage foreclosures until the end of September, postponement of credit card loans maturing between March 19 and April 30 and personal loans due through the end of June with penalty interest on unpaid balances waived between April and the end of June. Fees on ATM transactions are also waived until the end of June. Additional initiatives include several lending programs such as loans to SMEs at a 24% annual rate, zero interest rate financing to some eligible customers, and automatic refinancing on unpaid credit card balances due before the end of April in several installments and with a three-month grace period. Concurrently, the central bank also established measures aimed at encouraging bank lending. For example, lowered minimum reserve requirements for loans given to SMEs at preferential rates for salary and working capital needs, set limits on holdings of central bank loans or LILICs to provide an added liquidity for SME lending, and eased debtor classification and provisioning until the end of September providing an additional 60-day grace period before a loan is classified as non-performing. This applies to all commercial consumer and mortgage loans. Finally, while all time deposits carry a minimum interest rate of 26%, the central bank also introduced easing on minimum reserve requirements on time deposits. A detailed list of measures affecting our industry can be found on our press release. Please turn to slide four. Please review the recent actions we have taken to address this pandemic. We are rapidly advancing on three key pillars. First, ensuring the health of our people is our utmost priority. As I noted earlier, over 95% of our Non-branch employees were working from home in advance of the mandatory lockdown with some of our subsidiaries working 100% remotely, leveraging our IT resources. In our branches, teams were divided in two groups that rotate every 15 days and stricter sanitation and health procedures to protect employees and customers were also established. Secondly, we have made many operational adjustments to support our current and future customer needs, including accelerated digitalizations and a series of measures to promote safe banking. We are recognized leaders in the senior citizen segments, which is an important part of our customer base. Making special accommodation to help this vulnerable group, we added features on the mobile app to reduce the need for in-branch banking. We adapted and moved to our 24-hour lobbies our existing biometric recognition technology to withdraw money from the ATMs without a debit card. Additionally, we enabled biometric passcode generation for cash withdrawals without a debit card in the national ATM network. To facilitate adoption among this group of clients, we are encouraging the use of our digital channels across all communication platforms. Another important group is the SME segment. Here, we are supporting the payroll and working capital leads through loans promoted by the government and have launched specific credit lines for SMEs in the health and transportation sector. We are also adding new digital functionalities across our other segments, maintaining our best-in-class cybersecurity standards. Our third key pillar is ensuring long-term business continuity. Here, we are working on several fronts. We are continuing to proactively monitor our credit portfolio and while results for the quarter showed no material impact from the COVID-19 pandemic on our P&L, we expect to make provisions in the near future contingent upon the depth and length of the quarantine and related government measures. As always, we are maintaining our strong focus on cost controls and efficiency while enhancing our differentiating strategy to capture growth opportunities and remain flexible. While our longer range plans always considered a shift to a lower touch environment, we are now rapidly adapting to new normal customer behavior and continue to provide customized and elevated level of service that distinguishes Grupo Supervielle. On slide five, you can see how the use of digital channels has consistently accelerated across our customer segments between February and April. We are observing growth rates that range from the high 20s in usage to nearly doubling in some channels with consumer finance channels posting ever higher increases. Just to name a few. Use of our recently launched groundbreaking senior citizen app with face recognitions increased Invertil Online, our online broker, saw an increase of over 85% in new account openings. Visits to our bank's institutional website increased 97% reflecting higher traffic around customer transactions as well as new requirements in this low Thank you very much. We are even seeing much higher growth rates in our consumer finance digital channels, reflecting the successful migration of the call center operations to an automated chatbot and full automation of consumer finance banking transactions. Higher self-management of banking transactions is also contributing to a higher efficiency operation. Between January and May, we drove self-service banking transactions to give customers new ways to interact with us. These efforts resulted in an over 150% increase in loan origination across our non-branch channels. These type of transactions are helping us achieve greater efficiency across the business. In this environment of accelerated digital adoption, we are rapidly advancing on our strategy of transforming our company into a cutting-edge, cost-efficient player serving the evolving needs and aspirations of our customers. Please turn to slide six. We are committed to assisting our communities in Buenos Aires, Mendoza, and San Luis in the fight against COVID-19. With this goal in mind, we have made donations to well-recognized social agencies purchasing medical equipment and supplying food for the most vulnerable communities in our key markets. Please turn to slide seven to discuss the macroenvironment. Economic activity experienced a sharp contraction in March, down nearly 12% year-on-year. As we enter the third consecutive recessionary year, the impacts were deepened by the lockdown to contain the COVID-19 outbreak. Increased government social assistance together with financial relief for some affected companies has significantly accelerated monetary expansion. In this context, monetary policy interest rate continued to decline following 38% at the close of the quarter, down from 55% at year end. Inflation dropped below expectations to 7.8% in the quarter and declining to 1.5% in April, kept in check by the recessionary environment. In the meantime, the gap between the blue-chip rate and the Official of Exchange Rates continues to widen. Now, please turn to slide 8. Note that in the next two slides covering financial system loans and deposit trends, we have presented figures as published by the central bank, which are before adjusting for inflation. Starting with loans, system demand remain weak during the quarter with industry loans to the private sector growing below inflation both sequentially and year on year. Industry pressure denominated loans were up nearly 7% sequentially mainly driven by commercial loans. U.S. dollar system loans in original currency declined nearly 13% sequentially driven by Lower commercial loans following the trend observed over the past two quarters. Our total loan book was unchanged sequentially before adjusting for inflation. Turning to slide nine, system liquidity remains high both in local currency and in U.S. dollar deposits. On a sequential basis, Argentine peso deposits increased above inflation while we saw a slowdown in the outflow of U.S. denominated system deposits. Overall, total system deposits were up nearly 18% as a 25% increase in peso deposits more than offset the 7% decline in U.S. dollar denominated deposits measured in original currency. Our deposit base increased nearly 53% sequentially Reflecting our asset and liability strategy, peso deposits were up 74% sequentially, while U.S. dollars denominated deposits in original currency fell 13% slightly below the drop experienced in the fourth quarter. In April, industry deposits were up 5% sequentially, with peso deposits up nearly 7% and U.S. dollar deposits down nearly 2% in original currency. I will now turn over to Jorge, who will review our financial performance. Please, Jorge, go ahead.