Grupo Supervielle S.A.

Good morning, everyone, and welcome to Grupo Superviel's fourth quarter and year-end 2024 earnings call. I'm Ana Barthezayi, Trasher 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&A session, ensure your first and last name appear on the Zoom platform. Questions can be asked by voice or through the Q&A box. Speaking today will be Patricio Superviel, our Chairman and CEO, Gustavo Paco Manriquez, Banco Superviel CEO, Diego Pizzulli, CEO of Invertir Online, and Mariano Biglia, our CFO. All will be available during the Q&A session. Before we begin, I'd like to remind you that today's call may include forward-looking statements, which are based on management's current expectations and beliefs and subject to risks and uncertainties. For more details, refer to the forward-looking statement section in our earnings release and recent SEC filings. Patricio, please go ahead.

Thank you, Ana. Good morning, everyone, and thank you for joining us today. As we enter 2025, we look back on 2024 as a year of significant transformation, not just for SuperVL, but for Argentina's financial system as a whole. Last year marked an inflection point to banks, as we were able to return to our core purpose, financing growth and creating value for the communities we serve. At SuperVL, we anticipated this shift early on. took decisive action and continued to make the right long-term investment to drive sustainable value. With a clear focus on profitable growth, we prioritized completing the digital transformation started in 2020 while expanding our loan book and strengthening our deposit base as conditions improved. This approach enabled us to gain market share across key segments while maintaining strong asset quality and solid capital ratios. In the fourth quarter, driven by an improving macro environment, we saw continued momentum. Our loan book expanded 27% quarter-over-quarter and 107% year-on-year, more than doubling the 50% industry growth while gaining 90 basis points of market share. Higher margin retail loans increased to 48% of our total portfolio, up from 44% in the prior quarter and from 40% a year ago. Our deposit base grew 7% sequentially with U.S. dollar deposits reaching record levels up 178% year over year and gaining 80 basis points during the year. We continued to operate from a position of strength with the non-performing loan ratio increasing slightly to 1.3% but still within historical low levels. A CTE1 ratio of 16.1% positions us well to continue to drive growth. net interest margin stood at 25%, adjusting to current inflation and interest rate levels, with annual profitability reaching an ROE of 15.7% in line with our target for the year, as we successfully executed on our strategic roadmap. Beyond the numbers, 2024 was about laying the groundwork for long-term sustainable growth. The second half of the year, in particular, clearly demonstrated the impact of our transformation efforts. We successfully implemented a major digitalization strategy which has fundamentally enhanced our operating model. We are now a more agile, tech-driven institution ready to scale. In Vertino 9, further solidify our position as Argentina's leading digital retail brokerage platform, well positioned to contribute significantly to our fee income and profitability, as Diego Pizzulli will discuss shortly. This was also a year of leadership and organizational readiness with our two key businesses, led by two exceptional CEOs that report directly to me. Paco Manrique, appointed CEO of Banco Supervial last October, has swiftly redefined our commercial strategy to position the bank for 2025 and beyond. While Diego Pissulli continues to drive IOL in Virginia Online's expansion, I'm very pleased to have these two outstanding leaders as partners working together to take Grupo Supervial to the next level of profitability and growth. As we move forward, our strategic focus remains clear. We are committed to consolidating profitability, driving sustainable growth and strengthening our culture as a key enabler for our success. By building on our solid foundation, executing with discipline and capitalizing on new opportunities, we are well positioned to enhance shareholder value while expanding our role in Argentina's evolving financial landscape. Profitability, growth and culture, these three pillars define our vision and will continue guiding us into the future. with confidence in our strategy, we approach 2025 with optimism. Now let me discuss some of the specifics of our strategy. Our strategic growth priorities are centered on developing value propositions that can compete effectively with fintechs that are not easily replicable by incumbent banks. A strong focus on funding and payroll loans is key to becoming the principal bank for more of our customers. Pensioner banking has been a historically strong segment for SuperVL and we are committed to reinforcing our leadership position in this segment. At the same time, we continue to expand our presence in dynamic industries and value chains, such as oil and gas and mining, where Argentina's resource wealth presents significant long-term growth opportunities. Pent-up demand is fueling credit expansion and creating a unique opportunity to accelerate long growth. To capture this demand, we are shifting our portfolio mix towards higher-margin retail lending, optimizing capital efficiency and profitability. As a result, retail loans are expected to reach 50% to 60% of total loans, up from 40% at year-end 2023. Our capital allocation strategy is focused on driving balance sheet growth while maintaining strong risk management disciplines. Our differentiated business model is designed to drive higher profitability and long-term value creation. With industry-leading net interest margins and a stronger return on equity, as we optimize capital efficiency, expand fee-based income, and continue to streamline costs and headcount, we are well positioned to generate sustainable capital, supporting continued growth and reinforcing our competitive advantage in Argentina's evolving financial landscape. Lastly, Inverterio 9 is in the strongest position to play an even larger role in our profitability as we expand the product offering further integrated into our banking ecosystem and capture the nascent and growing opportunities in Argentina's financial market by offering a broad range of financial services tailored to the retail wealth and small business segments. I am excited about the opportunities ahead and confident that Superville is positioned to play a leading role in Argentina's economic recovery. With that, let me turn it over to Paco, who will provide an overview of key initiatives being undertaken at Banco Superville and views ahead.

Thank you, Patricio, and good day to all. Since joining Banco Superior in October, my priority has been to sharpen our strategic focus, accelerating growth and positioning the bank for long-term sustainable profitability. Given Argentina's involving microeconomic environment of lower inflation, declining nominal interest rate, and a surge in dollar deposits, we revitalize our commercial approach to capitalize on this positive dynamics and position ourselves for 2025, which we expect to be a year of real economic acceleration. Our streamlined structure now enables faster decision-making and greater operational efficiency, ensuring that we can swiftly adapt to market opportunities and better serve our customers. At the same time, we are conducting a comprehensive risk management, and in the near term, all customers are expected to have some great offer, enhancing precipitability, cross-sell opportunities, and growth. During the fourth quarter, we moved, shifted on quick wins, leveraging our existing customer base to drive immediate growth results while laying the groundwork for the future growth. In turn, our customer base expanded by 3.6%, reflecting improvement, acquisition, and engagement. The loan portfolio increased 27% quarter over quarter, doubling industry growth year on year. A key milestone was the record level of personal loan origination, up to 54% sequentially, underscoring our ability to meet rising credit demand. Lastly, we maintained a disciplined approach to cost reduction. Lowering headcount by 2.4% in the quarter, these results underscore our ability to drive profitable growth while maintaining operational efficiency, ensuring a strong foundation for 2025 and beyond. Turning to slide 6 at Banco Superviel, we are taking bold steps to deepen our customer focus, concentrating on the most profitable segments and products where we can rapidly differentiate and win. Notably, profitability is our main KPI. Starting with our customer-centric and technology-enabled strategy, on this front, we are shaping our credit and service capabilities, streamlining service model and leveraging technology to the faster and more disruptive. Rather than acting as a universal player, we are focusing on the most profitable segments where we can truly complete head-to-head and win. We are an experiential financial industry leader executing shifts that set us apart and reinforce our leadership in the key segments. Next, we are implementing a cluster-based strategy and segmenting our customer and marketing strategy. We provide highly tailored, differentiated value proposition aimed at incentive deposits and bundle solutions that enhance customer retention. This approach creates a unique competitive advantage that are difficult to replicate. Let me briefly touch on two such segments. In payroll and corporate solutions, we are rolling out of a shared benefits model designed to attract both companies and their employees. Our end-to-end payroll account offering aims to drive customer acquisition and deepen relations with corporates, making Superville the preferred banking partner for the payroll solutions. Also, in the SME segment, we are enhancing credit options and cash management solutions. Through strategic partnerships with leading Argentine companies, we have reinforced our presence in the key industries and products. We are also prioritizing targeted corporate segments where we can create differentiated value long-term relationships. Our focus is on the high-growth industries such as oil and gas, mining, and other export-driven sectors, while executing disciplinated capital allocation and strengthening our position as the principal bank for these companies. Reflecting this commitment, a dedicated team from Banco Superviel recently participated in the Minery Convention in Toronto, the world-leading mining industry event, which was also attended by Argentine government officials and provincial leaders. This alliance with our strategy to deepen relationships is a key sector that drives the country's economic growth. The province of Mendoza remains a strategic market for Banco Superior, where we have a long-standing leadership position and deepened road customer relationships. We are committed to strengthening our presence in the province, further solidification of our role as the leading financial institution in the region. We are also pursuing a selective expansion in the public sector banking, complementing our corporate banking strategy by providing tailored financial solutions to government institutions and state-linked organizations. Lastly, we are boosting, enhancing, and cross-hailing with your customers, offering them a comprehensive suite of investment banking and vintage solutions, capturing high-value customers and broadening our reach. Currently, 97% of your customers do not bank with us, presenting a significant, a huge opportunity to capture high-value clients and broaden our reach. In sum, 2024 was a year of transformation and 2025 will be a year of acceleration. By executing with speed, focusing on high-value segment and driving synergies across our ecosystem, our own ecosystem. We are building a stronger, more sustainable profitability Banco Superior, well-positioning for long-term success. Let me now turn the call to Diego Pizzulli, CEO of EOL, Inverting Online, who will review 2024 performance key strategy initiatives and expectations for 2025.