GRUPO SUPERVIELLE S.A.
TABLE OF CONTENTS
Item | |
1. | Financial Statements for the for the period ended on June 30, 2021, presented on comparative basis. |
Consolidated Condensed Interim Financial Statements
For the six-month period ended on
June 30, 2021, presented on comparative basis
Contents | ||
CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION | 2 | |
CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION | 3 | |
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME | 4 | |
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY | 7 | |
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS | 9 | |
1. | ACCOUNTING STANDARDS AND BASIS OF PREPARATION | 11 |
2. | SEGMENT REPORTING | 23 |
3. | INCOME TAX | 27 |
4. | FAIR VALUES | 28 |
5. | RELATED PARTY TRANSACTIONS | 30 |
6. | COMPOSITION OF THE MAIN ITEMS OF THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND CONSOLIDATED INCOME STATEMENT | 31 |
7. | DIVIDENDS | 34 |
8. | INSURANCE | 34 |
9. | ASSET MANAGEMENT AND OTHER SERVICES | 35 |
10. | ADDITIONAL INFORMATION REQUIRED BY THE BCRA | 35 |
11. | FINANCIAL RISK FACTORS | 38 |
12. | INTERNATIONAL FINANCING PROGRAMS | 38 |
13. | IMPACT OF COVID-19 ON GROUP`S OPERATIONS | 39 |
SCHEDULE A - DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS, OTHER DEBT SECURITIES, EQUITY INSTRUMENTS | 42 | |
SCHEDULE B - CLASSIFICATION OF LOANS AND OTHER FINANCING CREDIT ACCORDING TO STATUS AND COLLATERAL RECEIVED | 45 | |
SCHEDULE C - CONCENTRATION OF LOANS AND OTHER FINANCING | 47 | |
SCHEDULE D - BREAKDOWN OF TOTAL LOANS AND OTHER FINANCING | 48 | |
SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT | 49 | |
SCHEDULE G - INTANGIBLE ASSETS | 50 | |
SCHEDULE H - CONCENTRATION OF DEPOSITS | 51 | |
SCHEDULE I - BREAKDOWN OF FINANCIAL LIABILITIES FROM REMAINING TERMS | 52 | |
SCHEDULE L - ASSETS AND LIABILITIES IN FOREIGN CURRENCY | 53 | |
SCHEDULE R - LOAN LOSS RISK PROVISIONS | 54 | |
SEPARATE CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION | 56 | |
SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME | 57 | |
EARNING PER SHARE | 58 | |
SEPARTE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME | 59 | |
SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY | 60 | |
SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY | 61 | |
SEPARATE CONDENSED INTERIM STATEMENT OF CASH FLOW | 62 | |
1. | ACCOUNTING STANDARDS AND BASIS OF PREPARATION | 63 |
2. | FAIR VALUES | 66 |
3. | INVESTMENT IN SUBSIDIARIES AND ASSOCIATES | 67 |
4. | COMPOSITION OF THE MAIN ITEMS OF THE SEPARATE STATEMENT OF COMPREHENSIVE INCOME | 68 |
5. | RESTRICTED ASSETS | 70 |
6. | COMPANIES UNDER SECT, 33 OF CORPORATE LAW AND OTHER RELATED COMPANIES | 70 |
7. | INCOME TAX | 73 |
8. | LOAN AND DEBT ESTIMATED TERMS | 74 |
9. | CAPITAL STOCK | 74 |
10. | CASH AND DUE FROM BANKS | 75 |
11. | SUBSEQUENT EVENTS | 75 |
SCHEDULE A - OTHER DEBT SECURITIES | 76 | |
SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT | 77 | |
SCHEDULE G - INTANGIBLE ASSETS | 78 | |
SCHEDULE L - ASSETS AND LIABILITIES IN FOREIGN CURRENCY | 79 | |
INFORMATIVE REVIEW AS OF JUNE 30, 2021 | 80 |
Consolidated Condensed Interim Financial Statements
For the six-month period ended on
June 31, 2021, presented on comparative basis in homogeneous currency
1 |
GRUPO SUPERVIELLE S.A.
Name: | Grupo Supervielle S.A. |
Financial year: | N° 43 started on January 1, 2021 |
Legal Address: | Bartolomé Mitre 434 Ciudad Autónoma de Buenos Aires |
Core Business: | Carry out, on its own account or third parties' or related to third parties, in the country or abroad, financing activities through cash or instrument contributions to already-existing or to-be-set-up corporations, whether controlling such corporations or not, as well as the purchase and sale of securities, shares, debentures and any kind of property values, granting of fines and/or guarantees, set up or transfer of loans as guarantee, including real, or without it not including operations set forth by the Financial Entities Law and any other requiring public bidding. |
Registration Number at the IGP: | 212,617 |
Date of Registration at IGP: | October 15, 1980 |
Amendment of by-laws (last): | April 24, 2018 (Registration in progress) |
Expiration date of the Company's By-Laws: | October 15, 2079 |
Corporations Article 33 Companies general Law | Note 6 to Separate Financial Statements |
Composition of Capital Stock as of June 30, 2021
Shares | Capital Stock | |||||||||||||||||||
Quantity | Class | N.V. $ |
Votes per share |
Subscribed in thousands of $ |
Integrated in thousands of $ | |||||||||||||||
61,738,188 | A: Non endorsable, common shares of a nominal value | 1 | 5 | 61,738 | 61,738 | |||||||||||||||
394,984,134 | B: Non endorsable, common shares of a nominal value | 1 | 1 | 394,984 | 394,984 | |||||||||||||||
456,722,322 | 456,722 | 456,722 |
2 |
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
As of June 30, 2021 and December 31, 2020
(Expressed in thousands of pesos in homogeneous currency)
Notes and Schedules | 06/30/2021 | 12/31/2020 | ||||||||
ASSETS | ||||||||||
Cash and due from banks | 1.9 and 4 | 25,889,622 | 45,962,544 | |||||||
Cash | 9,313,744 | 16,032,146 | ||||||||
Financial institutions and correspondents | 16,383,430 | 29,739,495 | ||||||||
Argentine Central Bank | 14,701,951 | 24,593,256 | ||||||||
Other local and financial institutions | 1,681,479 | 5,146,239 | ||||||||
Others | 192,448 | 190,903 | ||||||||
Debt Securities at fair value through profit or loss | 1.9, 4, 6.1 and A | 16,167,758 | 12,371,899 | |||||||
Derivatives | 6.2 and 4 | 827,064 | 180,397 | |||||||
Reverse Repo transactions | 6.3 and 4 | 41,251,468 | 28,015,929 | |||||||
Other financial assets | 1.9, 6.4 and 4 | 4,345,632 | 5,369,322 | |||||||
Loans and other financing | 4,6.5 and B | 124,373,233 | 132,812,473 | |||||||
To the non-financial public sector | 69,970 | 29,489 | ||||||||
To the financial sector | 930 | 15,117 | ||||||||
To the Non-Financial Private Sector and Foreign residents | 124,302,333 | 132,767,867 | ||||||||
Other debt securities | 4, 6.6 and A | 70,364,068 | 51,714,031 | |||||||
Financial assets pledged as collateral | 4 and 6.7 | 7,840,876 | 6,147,078 | |||||||
Deferred income tax assets | 304,662 | - | ||||||||
Investments in equity instruments | 4 and A | 134,077 | 145,787 | |||||||
Property, plant and equipment | F | 8,753,803 | 8,902,589 | |||||||
Investment property | F | 7,510,493 | 7,516,886 | |||||||
Intangible assets | G | 8,498,372 | 8,500,172 | |||||||
Deferred income tax assets | 2,851,552 | 3,785,777 | ||||||||
Other non-financial assets | 6.7 | 1,818,243 | 1,695,488 | |||||||
Inventories | 6.8 | 100,451 | 88,935 | |||||||
TOTAL ASSETS | 321,031,374 | 313,209,307 |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statement.
3 |
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
As of June 30, 2021 and December 31, 2020
(Expressed in thousands of pesos in homogeneous currency)
Notes and Schedules | 06/30/2021 | 12/31/2020 | ||||||||
LIABILITIES | ||||||||||
Deposits | 4, 6.10 and H | 243,203,850 | 223,881,435 | |||||||
Non-financial public sector | 14,934,221 | 9,914,730 | ||||||||
Financial sector | 123,539 | 71,956 | ||||||||
Non-financial private sector and foreign residents | 228,146,090 | 213,894,749 | ||||||||
Liabilities at fair value through profit or loss | 4 and 6.11 | 1,490,914 | 2,509,000 | |||||||
Derivatives | 6.15 | - | 2,500 | |||||||
Other financial liabilities | 4 and 6.12 | 9,963,291 | 9,436,530 | |||||||
Financing received from the Argentine Central Bank and other financial institutions | 4 and 6.13 | 4,943,821 | 7,333,245 | |||||||
Unsubordinated debt securities | 4 and 10.4 | 1,280,829 | 5,297,145 | |||||||
Current income tax liabilities | - | 1,614,512 | ||||||||
Subordinated debt securities | 4 and 10.4 | 1,220,266 | 1,429,285 | |||||||
Provisions | 6.14 | 616,667 | 853,574 | |||||||
Deferred income tax liabilities | 14,842 | 52,642 | ||||||||
Other non-financial liabilities | 6.16 | 13,609,669 | 15,222,012 | |||||||
TOTAL LIABILITIES | 276,344,149 | 267,631,880 | ||||||||
SHAREHOLDERS' EQUITY | ||||||||||
Capital stock | 456,722 | 456,722 | ||||||||
Paid in capital | 36,166,317 | 36,166,317 | ||||||||
Capital Adjustments | 3,836,023 | 3,836,023 | ||||||||
Reserve | 3,848,851 | - | ||||||||
Retained earnings | (283,173 | ) | - | |||||||
Other comprehensive income | 734,536 | 1,088,939 | ||||||||
Net income for the period | (107,979 | ) | 3,993,034 | |||||||
Shareholders' Equity attributable to owners of the parent company | 44,651,297 | 45,541,035 | ||||||||
Shareholders' Equity attributable to non-controlling interests | 35,928 | 36,392 | ||||||||
TOTAL SHAREHOLDERS' EQUITY | 44,687,225 | 45,577,427 | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 321,031,374 | 313,209,307 |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
4 |
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the six and three-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
Six-month period ended on | Three-month period ended on | |||||||||||||||||
Notes | 06/30/2021 | 06/30/2020 | 06/30/2021 | 06/30/2020 | ||||||||||||||
Interest income | 6.17 | 42,101,739 | 39,846,118 | 21,642,443 | 19,173,334 | |||||||||||||
Interest expenses | 6.18 | (24,253,318 | ) | (16,549,546 | ) | (12,792,621 | ) | (7,003,465 | ) | |||||||||
Net interest income | 17,848,421 | 23,296,572 | 8,849,822 | 12,169,869 | ||||||||||||||
Service fee income | 6.20 | 6,805,624 | 7,244,937 | 3,419,422 | 3,435,341 | |||||||||||||
Service fee expenses | 6.21 | (2,074,967 | ) | (2,053,010 | ) | (1,037,835 | ) | (993,494 | ) | |||||||||
Income from insurance activities | 8 | 948,837 | 1,096,088 | 466,051 | 584,308 | |||||||||||||
Net Service Fee Income | 5,679,494 | 6,288,015 | 2,847,638 | 3,026,155 | ||||||||||||||
Subtotal | 23,527,915 | 29,584,587 | 11,697,460 | 15,196,024 | ||||||||||||||
Net income from financial instruments (NIFFI) at fair value through profit or loss | 6.19 | 3,957,909 | 1,464,664 | 2,168,714 | 982,185 | |||||||||||||
Result from assets withdrawals rated at amortized cost | 70,167 | 113,559 | (25,081 | ) | 95,146 | |||||||||||||
Exchange rate difference on gold and foreign currency | 356,409 | 597,936 | 184,817 | 449,364 | ||||||||||||||
Subtotal | 4,384,485 | 2,176,159 | 2,328,450 | 1,526,695 | ||||||||||||||
Other operating income | 6.22 | 2,295,473 | 2,604,002 | 920,704 | 1,307,561 | |||||||||||||
Result from exposure to changes in the purchasing power of the currency | (3,677,024 | ) | (2,337,555 | ) | (1,694,047 | ) | (961,617 | ) | ||||||||||
Loan loss provisions | (3,382,350 | ) | (5,905,233 | ) | (1,859,188 | ) | (3,403,603 | ) | ||||||||||
Net operating income | 23,148,499 | 26,121,960 | 11,393,379 | 13,665,060 | ||||||||||||||
Personnel expenses | 6.23 | 10,912,992 | 11,234,741 | 5,181,508 | 5,597,165 | |||||||||||||
Administration expenses | 6.24 | 6,243,191 | 6,306,988 | 3,429,687 | 3,428,724 | |||||||||||||
Depreciations and impairment of non-financial assets | 6.25 | 1,733,767 | 1,455,487 | 873,720 | 740,238 | |||||||||||||
Other operating expenses | 6.26 | 4,488,384 | 4,204,077 | 2,315,071 | 2,239,692 | |||||||||||||
Operating income | (229,835 | ) | 2,920,667 | (406,607 | ) | 1,659,241 | ||||||||||||
Income before taxes from continuing operations | (229,835 | ) | 2,920,667 | (406,607 | ) | 1,659,241 | ||||||||||||
Income tax | (121,752 | ) | 785,078 | (88,377 | ) | 241,829 | ||||||||||||
Net income for the period | (108,083 | ) | 2,135,589 | (318,230 | ) | 1,417,412 | ||||||||||||
Net income for the period attributable to owners of the parent company | (107,979 | ) | 2,134,155 | (317,995 | ) | 1,416,584 | ||||||||||||
Net income for the period attributable to non-controlling interests | (104 | ) | 1,434 | (235 | ) | 828 |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
5 |
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
EARNING PER SHARE
For the six and three-month period ended June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
Six-month period ended on | Three-month period ended on | |||||||||||||||
Item | 06/30/2021 | 06/30/2020 | 06/30/2021 | 06/30/2020 | ||||||||||||
NUMERATOR | ||||||||||||||||
Net income for the period attributable to owners of the parent company | (107,979 | ) | 2,134,155 | (318,230 | ) | 1,416,584 | ||||||||||
PLUS: Diluting events inherent to potential ordinary shares | - | - | - | - | ||||||||||||
Net income attributable to owners of the parent company adjusted by dilution | (107,979 | ) | 2,134,155 | (318,230 | ) | 1,416,584 | ||||||||||
DENOMINATOR | ||||||||||||||||
Weighted average of ordinary shares | 456,722 | 456,722 | 456,722 | 456,722 | ||||||||||||
PLUS: Weighted average of number of ordinary shares issued with dilution effect | - | - | - | - | ||||||||||||
Weighted average of number of ordinary shares issued of the period adjusted by dilution effect | 456,722 | 456,722 | 456,722 | 456,722 | ||||||||||||
Basic Income per share | (0.24 | ) | 4.67 | (0.79 | ) | 3.10 | ||||||||||
Diluted Income per share | (0.24 | ) | 4.67 | (0.79 | ) | 3.10 |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
6 |
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the six and three-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
Six-month period ended on | Three-month period ended on | |||||||||||||||
06/30/2021 | 06/30/2020 | 06/30/2021 | 06/30/2020 | |||||||||||||
Net income for the period | (108,083 | ) | 2,135,589 | (318,230 | ) | 1,417,412 | ||||||||||
Components of Other Comprehensive Income not to be reclassified to profit or loss | ||||||||||||||||
Revaluations of the period of property, plant and equipment and intangibles | (1,495 | ) | - | (1,495 | ) | - | ||||||||||
Income tax | (42,563 | ) | - | (42,563 | ) | - | ||||||||||
Revaluations of property, plant and equipment and intangibles | (44,058 | ) | - | (44,058 | ) | - | ||||||||||
Income for the period from equity instrument at fair value through other comprehensive income | 30,801 | (1,559 | ) | 32,162 | (475 | ) | ||||||||||
Income tax | - | 467 | (408 | ) | 142 | |||||||||||
Net income from equity instrument at fair value through changes in other comprehensive income | 30,801 | (1,092 | ) | 31,754 | (333 | ) | ||||||||||
Total Other Comprehensive Income not to be reclassified to profit or loss | (13,257 | ) | (1,092 | ) | (12,304 | ) | (333 | ) | ||||||||
Components of Other Comprehensive Loss to be reclassified to profit or loss | ||||||||||||||||
Loss for the period from financial instrument at fair value through other comprehensive income | (523,089 | ) | 679,247 | 274,281 | 781,822 | |||||||||||
Income tax | 181,583 | (168,126 | ) | (57,911 | ) | (195,110 | ) | |||||||||
Net income from financial instrument at fair value through changes in other comprehensive income | (341,506 | ) | 511,121 | 216,370 | 586,712 | |||||||||||
Total Other Comprehensive Loss to be reclassified to profit or loss | (341,506 | ) | 511,121 | 216,370 | 586,712 | |||||||||||
Total Other Comprehensive Income | (354,763 | ) | 510,029 | 204,066 | 586,379 | |||||||||||
Other comprehensive income attributable to owners of the parent company | (354,403 | ) | 509,506 | 203,918 | 585,778 | |||||||||||
Other comprehensive income attributable to non-controlling interests | (360 | ) | 523 | 148 | 601 | |||||||||||
Total Comprehensive Income | (462,846 | ) | 2,645,618 | (114,164 | ) | 2,003,791 | ||||||||||
Total comprehensive income attributable to owners of the parent company | (462,382 | ) | 2,643,661 | (114,077 | ) | 2,002,362 | ||||||||||
Total comprehensive income attributable to non-controlling interests | (464 | ) | 1,957 | (87 | ) | 1,429 |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
7 |
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
For the six-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
Other comprehensive income | ||||||||||||||||||||||||||||||||||
Items |
Capital stock |
Capital adjustments |
Paid in capital |
Legal reserve |
Other reserves |
Retained earnings |
Revaluation of PPE |
Earnings or loss accrued by financial institutions at FV through profit and loss | Total Shareholders´ equity attributable to parent company |
Total Shareholders' equity attributable to non-controlling interest |
Total Shareholders' equity | |||||||||||||||||||||||
Re-expressed Balance at December 31, 2020 | 456,722 | 3,836,023 | 36,166,317 | - | - | 4,276,207 | 741,415 | 64,351 | 45,541,035 | 36,392 | 45,577,427 | |||||||||||||||||||||||
Adjustment to Prior Year Income | - | - | - | - | - | (283,173 | ) | - | 283,173 | - | - | - | ||||||||||||||||||||||
Balance at December 31, 2020 | 456,722 | 3,836,023 | 36,166,317 | - | - | 3,993,034 | 741,415 | 347,524 | 45,541,035 | 36,392 | 45,577,427 | |||||||||||||||||||||||
Distribution of retained earnings by the shareholders' meeting on April 27, 2021: | ||||||||||||||||||||||||||||||||||
Constitution of reserves | - | - | 441,572 | 3,407,279 | (3,848,851 | ) | - | - | - | - | - | |||||||||||||||||||||||
Dividend distribution | - | - | - | - | - | (427,356 | ) | - | - | (427,356 | ) | - | (427,356 | ) | ||||||||||||||||||||
Net Income for the period | - | - | - | - | - | (107,979 | ) | - | - | (107,979 | ) | (104 | ) | (108,083 | ) | |||||||||||||||||||
Other comprehensive income for the period | - | - | - | - | - | - | (44,014 | ) | (310,389 | ) | (354,403 | ) | (360 | ) | (354,763 | ) | ||||||||||||||||||
Balance at June 30, 2021 | 456,722 | 3,836,023 | 36,166,317 | 441,572 | 3,407,279 | (391,152 | ) | 697,401 | 37,135 | 44,651,297 | 35,928 | 44,687,225 |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
8 |
GRUPO SUPERVIELLE S.A.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
For the six-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos)
Other comprehensive income | ||||||||||||||||||||||||||||||||||
Items |
Capital stock |
Capital adjustments | Paid in capital |
Legal reserve |
Other reserves |
Retained earnings |
Revaluation of PPE |
Earnings or loss accrued by financial institutions at FV through profit and loss |
Total Shareholders´ equity |
Total Shareholders´ |
Total Shareholders´ equity | |||||||||||||||||||||||
Balance at December 31, 2019 | 456,722 | 3,836,023 | 41,702,513 | 239,749 | 17,608,263 | (22,719,903 | ) | 138,824 | 8,615 | 41,270,806 | 32,862 | 41,303,668 | ||||||||||||||||||||||
Distribution of retained earnings by the shareholders' meeting on April 28, 2020: | ||||||||||||||||||||||||||||||||||
Constitution of reserves | - | - | - | - | 6,639,780 | (6,639,780 | ) | - | - | - | - | - | ||||||||||||||||||||||
Dividend distribution | - | - | - | - | (651,155 | ) | - | - | (651,155 | ) | - | (651,155 | ) | |||||||||||||||||||||
Net Income for the period | - | - | - | - | - | 2,134,155 | - | - | 2,134,155 | 1,434 | 2,135,589 | |||||||||||||||||||||||
Other comprehensive income for the period | - | - | - | - | - | - | - | 509,506 | 509,506 | 523 | 510,029 | |||||||||||||||||||||||
Balance at June 30, 2020 | 456,722 | 3,836,023 | 41,702,513 | 239,749 | 23,596,888 | (27,225,528 | ) | 138,824 | 518,121 | 43,263,312 | 34,819 | 43,298,131 |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
9 |
GRUPO SUPERVIELLE S.A.
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS
For the six-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
06/30/2021 | 06/30/2020 | |||||||
CASH FLOW FROM OPERATING ACTIVITIES | ||||||||
Net income / (loss) for the period before Income Tax | (229,835 | ) | 2,920,667 | |||||
Adjustments to obtain flows from operating activities: | ||||||||
Depreciation and impairment of non-financial assets | 1,733,767 | 1,455,487 | ||||||
Loan loss provisions | 3,382,350 | 5,905,233 | ||||||
Other adjustments | ||||||||
- Exchange rate difference on gold and foreign currency | (356,409 | ) | (597,936 | ) | ||||
- Interests from loans and other financing | (42,101,739 | ) | (39,846,118 | ) | ||||
- Interests from deposits and financing received | 24,253,318 | 16,549,546 | ||||||
- Net income from financial instruments at fair value through profit or loss | (3,957,909 | ) | (1,464,664 | ) | ||||
- Result from derecognition of financial assets measured at amortized cost | (70,167 | ) | (113,559 | ) | ||||
- Result from exposure to changes in the purchasing power of the currency | 3,677,024 | 2,337,555 | ||||||
- Interest on liabilities for financial leases | 96,950 | 123,690 | ||||||
- Allowances reversed | (796,618 | ) | (416,178 | ) | ||||
(Increases) / decreases from operating assets: | ||||||||
Debt securities at fair value through profit or loss | 2,896,983 | 85,562 | ||||||
Derivatives | (646,667 | ) | 340,354 | |||||
Reverse Repo transactions | (13,235,539 | ) | (6,959,309 | ) | ||||
Loans and other financing | ||||||||
To the non-financial public sector | (40,481 | ) | (251,962 | ) | ||||
To the other financial entities | 14,187 | (337,814 | ) | |||||
To the non-financial sector and foreign residents | 47,981,541 | 41,493,906 | ||||||
Other debt securities | (18,650,037 | ) | (78,596,561 | ) | ||||
Financial assets pledged as collateral | (1,693,798 | ) | 1,962,755 | |||||
Investments in equity instruments | (25,453 | ) | (41,220 | ) | ||||
Other assets | 27,827 | 20,681 | ||||||
Increases / (decreases) from operating liabilities: | ||||||||
Deposits | ||||||||
Non-financial public sector | 5,019,491 | (1,625,175 | ) | |||||
Financial sector | 51,583 | (19,919 | ) | |||||
Private non-financial sector and foreign residents | (10,001,977 | ) | 71,716,272 | |||||
Liabilities at fair value through profit or loss | (1,018,086 | ) | (153,624 | ) | ||||
Derivatives | (2,500 | ) | - | |||||
Repo transactions | - | 421,849 | ||||||
Other liabilities | (736,098 | ) | 1,257,061 | |||||
Income Tax paid | (761,977 | ) | (1,110,307 | ) | ||||
Net cash provided by / (used in) operating activities (A) | (5,190,269 | ) | 15,056,272 | |||||
CASH FLOW FROM INVESTING ACTIVITIES | ||||||||
Payments: | ||||||||
Purchase of PPE, intangible assets and other assets | (1,107,438 | ) | (1,071,976 | ) |
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
10 |
GRUPO SUPERVIELLE S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
06/30/2021 | 06/30/2020 | |||||||
CASH FLOW FROM INVESTING ACTIVITIES | ||||||||
Collections: | ||||||||
Disposals related to PPE, intangible assets and other assets | 336,487 | 28,638 | ||||||
Sales of liabilities and equity instruments issued by other entities | 67,964 | - | ||||||
Net cash used in investing activities (B) | (702,987 | ) | (1,043,338 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Payments: | ||||||||
Interest on finance lease liabilities | (1,366,164 | ) | (1,059,950 | ) | ||||
Financing received from Argentine Financial Institutions | (5,918,042 | ) | (5,297,151 | ) | ||||
Unsubordinated debt securities | (20,178,608 | ) | (33,064,753 | ) | ||||
Subordinated debt securities | (209,019 | ) | (67,634 | ) | ||||
Dividends paid | (427,356 | ) | (651,154 | ) | ||||
Collections: | ||||||||
Financing received from Argentine Financial Institutions | 1,901,726 | 3,553,540 | ||||||
UnSubordinated debt securities | 17,789,184 | 29,689,922 | ||||||
Subordinated debt securities | - | 124,756 | ||||||
Net cash used in financing activities (C) | (8,408,279 | ) | (6,772,424 | ) | ||||
Effects of exchange rate changes and exposure to changes in the purchasing power of money on cash and cash equivalents (D) | 7,987,616 | 1,135,203 | ||||||
Net increase / (decrease) in cash and cash equivalents (A+B+C+D) | (6,313,919 | ) | 8,375,713 | |||||
Cash and cash equivalents at the beginning of the year (NOTE 1.8) | 49,461,172 | 47,760,445 | ||||||
Result from exposure to changes in the purchasing power of the currency of cash and equivalents | (10,560,598 | ) | (2,500,001 | ) | ||||
Cash and cash equivalents at the end of the year (NOTE 1.8) | 32,586,655 | 53,636,157 |
(*) In the items 'Purchase of PPE,intangible asstes and other assets' and 'Other liabilities' 682,822 and 6,393 corresponding to non-monetary transactions were eliminated.
The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.
11 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
1. | ACCOUNTING STANDARDS AND BASIS OF PREPARATION |
Grupo Supervielle S.A. (hereinafter, 'the Group'), is a company whose main activity is investment in other companies, Its main income comes from the distribution of dividends from these companies and the obtaining of income from other financial assets.
The consolidated financial statements of Grupo Supervielle S.A. they have been consolidated, line by line with the financial statements of Banco Supervielle S.A., IUDÚ Compañía Financiera S.A., Sofital S.A. F. e I.I., Tarjeta Automática S.A., Supervielle Asset Management S.A., Espacio Cordial Servicios S.A., Supervielle Seguros S.A., InvertirOnline S.A.U., InvertirOnline,Com Argentina S.A.U., Micro Lending S.A.U., Supervielle Productores Asesores de Seguros S.A., Bolsillo Digital S.A.U., Futuros del Sur S.A. and Easy Cambio S.A..
The main investment of the Company is its shareholding in Banco Supervielle S.A., a financial entity included in Law No. 21.526 of Financial Institutions and subject to BCRA regulations, for which the valuation and exposure guidelines used have been adopted by said Entity (see Note 1.1) in accordance with that established in Title IV, Chapter I, Section I, Article 2 of the 2013 Orderly Text of the National Securities Commission (CNV).
These Consolidated Condensed Interim Financial Statements have been approved by the Board of Directors of the Company at its meeting held on August 25, 2021.
1.1. | Differences between the accounting framework established by the BCRA and IFRS |
These consolidated financial statements have been prepared pursuant to: (i) provisions set by Intenational Accounting Standards N° 34, 'Interim Financial Information' (IAS 34) and (ii) the accouting information framework set by the Argentine Central Bank which is based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and interpretations issued by the International Financial Reporting Standards Interpretation Committee with the following exceptions:
(i) | Temporary exception of IFRS 9 'Financial Instruments' application over debt instruments of the non-financial public sector, |
(ii) | Temporary exception of the application of Section 5.5 (Value Impairment) for Group C entities, a category that includes IUDÚ Compañia Financiera S.A.. Therefore, provisions of the aforementioned entity are held under minimum provisions standards set by the Argentine Central Bank. See note 1.2.4 |
In accordance with the provisions of IAS 34, the interim financial information will include an explanation of events and transactions, occurred since the end of the last reporting period, that are significant for understanding the changes in the financial position, performance Group financial statements and cash flow statements with the objective of updating the information corresponding to the latest financial statements for the year ended December 31, 2020 (hereinafter 'annual financial statements'). Therefore, these condensed interim consolidated financial statements do not include all the information required by complete financial statements prepared in accordance with International Financial Reporting Standards, therefore, for an adequate understanding of the information included therein, they must be read in conjunction with the annual financial statements.
1.1.1 | Impairment of financial assets |
Pursuant to Communication 'A' 6430 and 6847 Financial Entities shall start to apply provisions on Financial Assets Impairment included in paragraph 5.5 of IFRS 9 as from fiscal years starting on 1 January, 2020, except for Non-financial Public Sector´s debt securities, which shall be temporarily excluded from the scope of said provisions. Likewise, Communication 'A' 7181 issued by the Argentine Central Bank set the postponement of the application of the section targeted to 'C' group Companies until January 1, 2022,a category that includes IUDÚ Compañía Financiera S.A.; therefore, provisions of said Entity are held under the minimum provisions regulations set by the Argentine Central Bank. It is worth mentioning that through communications 'A' 7108 and 7134, the Argentine Central Bank ordered the classification of financial entities into groups 'A', 'B' and 'C', leaving IUDÚ Compañía Financiera classified as Group 'C' as of October 1, 2020.
Upon the application of impairment model included in section 5.5 of IFRS 9, a decrease of about 1,086.4 million and 1,065.6 million would have been recorded in the shareholders ´equity as of June 30, 2021 and December 31, 2020 respectively.
12 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
06/30/2021 | 12/31/2020 | |||||||
Provisions recorded in financial statements | 9,363,653 | 9,812,718 | ||||||
Provisions pursuant to section 5.5 of IFRS 9 | 10,915,713 | 11,335,030 | ||||||
Difference (*) | 1,552,060 | 1,522,312 |
(*) These balances do not include the effect of income tax
1.2. Preparation basis
These consolidated condensed interim financial statements have been prepared in acoordance whith the accounting framework established by B.C.R.A. described in Note 1.2.4.
The Gruop´s Board has concluded that these consolidated condensed interim financial statements reasonably express the financial position, financial performance and cash flows.
The preparation of financial statements requires that the Group carries out calculations and evaluations that affect the amount of incomes and expenses recorded in the year. In this sense, calculations are aimed at the estimation of, for example, credit risk provisions, useful life of property, plant and equipment, impairments and amortizations, recoverable value of assets, income tax charges and the reasonable value of certain financial instruments. Future real results may defer from calculations and evaluations as of the date of these consolidated condensed interim financial statements preparation.
As of these financial statements issuance date, such statements are pending of transcription to Inventory and Balance Sheet Book.
1.2.1 | Going concern |
As of the date of these consolidated condensed interim financial statements there are no uncertainties with respect to events or conditions that may raise doubts regarding the possibility that the Group continues to operate normally as a going concern.
1.2.2 | Measuring unit - IAS 29 (Financial reporting in hyperinflationary economies) |
Figures included in these consolidated condensed interim financial statements are expressed in thousands of Argentine pesos, unless otherwise stated.
The Group´s consolidated financial statements recognice changes in the currency purchasing power until August 31, 1995. As from such date, in virtue of existing economic stability conditions and pursuant to Communication 'A' 2365 issued by the Argentine Central Bank, accounting measurements were not re-expressed until December 31, 2001. In virtue of Communication 'A' 3702 issued by the Argentine Central Bank, the application of the method was resumed and became effective on January 1, 2002. Previous accouting measurements were considered to be expressed in the currency as of December 31, 2001.
Pursuant to Communication 'A' 3921 issued by the Argentine Central Bank, in compliance with Decree 664/03 issued by the National Executive Power, the application of the re-expression of financial statements in homogeneous currency was interrupted as from March 1, 2003. Therefore, the Group applied said re-expression until February 28, 2003.
In turn, Law N° 27,468 (B.O. 04/12/2018) amended article 10° of Law N° 23,928 and its amendments, thus establishing that the abolition of all legal and regulating standards that set and authorize price indexing, monetary updating, cost changes or any other manner of re-increasing debts, taxes, prices or fees for goods, works or services does not include financial statements, regarding which the application of article 62 of the General Corporations Law N° 19,550 (T.O 1984) and its amendments shall prevail. Likewise, the aforementioned legal body set de abolition of Decree N° 1269/2002 dated on July 16, 2002 and its amendments and instructed the National Executive Power, through its controlling agencies, to set the date as from which said regulations became into effect in relation with financial statements to be submitted. Therefore, on February 22, 2019, the Argentine Central Bank issued Communication 'A' 6651 which established that financial statements shall be prepared in a homogeneous currency as from January 1, 2020. Therefore, these consolidated financial statements have been re-expressed as of June 30, 2021.
13 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
1.2.3 | Comparative information |
The balances for the year ended December 31, 2020 and for the six-month period ended June 30, 2020 that are disclosed in these condensed interim financial statements for comparative purposes arise from the financial statements as of such dates, which were prepared with the regulations in force in said year. Certain figures of these financial statements have been reclassified in order to present the information in accordance with the regulations in force as of June 30, 2021.
It s worth mentioning that, given the restatement of financial statements pursuant to IAS 29 and the provisions of Communication 'A' 7211, the Bank has applied the following:
(i) | Inflation adjustment of figures included in the Statement of Financial Position, Income Statement, Other Comprehensive Income and Changes in the Shareholders' Equity Statement and respective notes as of June 30, 2020 and December 31, 2020 in order to record them in homogeneous currency. |
(ii) | Recognition of an adjustment to prior year income of 283,173 in accordance with Communication 'A' 7211, which established that monetary income corresponding to items of a monetary nature that are measured at fair value with offsetting entry in other comprehensive income shall be recorded in income (loss) for the period as of January 1, 2021. For comparative purposes, balances were adjusted as of June 30, 2020. |
1.2.4 | Changes in accounting policies and new accounting standards |
With the approval of new IFRS, modifications or derogations of the standards in force, and once such changes are adopted through Adoption Bulletins issued by Federación Argentina de Consejos Profesionales en Ciencias Económicas (FACPCE), the Argentine Central Bank will determine the approval of such standards for financial entities. In general terms, no anticipated IFRS application shall be allowed unless upon adoption such anticipated measure is specified.
The following are changes that were made effective over the course of the quarter ended on June 30, 2021:
(a) Changes in the Accounting Framework set by the Argentine Central Bank - monetary income accrued with respect to items of a monetary nature that are measured at fair value with changes in Other Comprehensive Income (OCI)
Through Communication 'A' 7211, the Argentine Central Bank established that monetary income accrued with respect to items of a monetary nature that are measured at fair value with changes in Other Comprehensive Income (OCI) shall be recorded in the relevant accounts of income (loss) for the period. Consequently, it further established that in fiscal year 2021, retained earnings shall be adjusted and recorded in the account 'Adjustments to retained earnings' in order to include monetary income accrued with respect to the aforementioned items that was recorded in OCI as at the beginning of the comparative year. Furthermore, the Communication established that the comparative information to include in the Financial Statements for Quarterly/Annual Publication corresponding to the fiscal year 2021 -both interim and annual- shall take into account the exposure criterion laid down with respect to the involved items of each statement. Accordingly, the comparative information has been modified to comply with the above-mentioned publication.
(b) Changes in IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 - Reference interest rate reform (IBOR)
With the purpose of working out issues resulting from the implementation of the reference interest rate reform (IBOR), on August 27, the IASB released changes in standards. The most important changes are related to the accounting of financial instruments at amortized cost. Such changes require that financial entities update contractual cash flows resulting from the reference interest rate reform through the modification of the effective interest rate pursuant to paragraph B5.4.5 of IFRS 9. Therefore, no impact on income is recorded as a result of such modification. Said change shall be applied only when necessary as a direct consequence of the application of the reference interest rate reform (IBOR). IFRS 16 was also modified; thus, requiring lessees to utilize the same modification when accounting changes in leasing payments to be produced as a result of the reference interest rate reform (IBOR).
The Group considers that such changes have no significant effect in its financial statements.
(c) Amendments to IFRS 16 'Leases': lease concessions in a COVID-19 environment
Many lessors have granted, or expect to grant, lease concessions to lessees as a consequence of the COVID-19 pandemic. These concessions can be diverse, including grace periods and deferral of lease payments, sometimes followed by an increase in lease payments in future periods. IFRS 16 contains requirements that apply to these concessions. However, the IASB pointed out that it could be difficult to impose such requirements to a potentially large number of lease concessions related to the COVID-19 pandemic, especially in light of many other challenges faced by stakeholders during the pandemic.
14 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
As a result of this, the IASB provided lessees (but not lessors) with relief in the form of an optional exemption to assess whether a COVID-19-related lease concession is a lease modification. Lessees can elect to account for lease concessions in the same way as they would if they were not lease modifications. In many cases, this will result in accounting for the concession as a variable lease payment. This simplification only applies to lease concessions that occur as a direct consequence of the COVID-19 pandemic. Lessees who make use of the exemption shall disclose such fact as well as the amount recognized in income (loss) that arises from the COVID-19-related lease concessions. If a lessee chooses to apply the practical expedient to a lease, it will apply it consistently to all lease agreements with similar characteristics and under similar circumstances. The amendment will be applied retrospectively in accordance with IAS 8; however, lessees are neither required to restate figures from previous fiscal years nor disclose them pursuant to paragraph 28 (f) of IAS 8.
The Group considers that such changes have no significant effect in its financial statements.
The following sets forth changes that have not become in force as of June 30, 2021:
(a) Sale or contribution of assets between an investor and its associate or joint Venture - changes in IFRS 10 and IAS 28.
IASB carried out changes specifically on IFRS 10 'Consolidated Financial Entities' and IAS 28 'Investments in associates and joint ventures'. Such changes clarify the accounting of sales or contribution of assets between the investor and its associates and joint ventures and confirm that the accounting treatment depends on whether non-monetary assets sold or contributed to the associate or joint venture account for a 'business' (as defined in IFRS 3).
When non-monetary assets account for a business, the investor will recognize earnings or losses of the sale or contribution of assets. If assets do not account for a business, earnings or losses are recognized by the investor only up to the amount recognized by the investor in the associate or joint venture. These changes are applied with retroactive effect.
IASB has decided to delay the application date for this modification until the research project over the interest method is concluded.
The Group is evaluating the impact of the application of this new standard.
(b) IFRS 17 'Insurance contracts'
On May 18, 2017, IASB issued IFRS 17 'Insurance contracts' which provides a comprehensive framework based on principles for measurement and presentation of all insurance contracts. The new rule will supersede IFRS 4 Insurance contracts and requires that insurance contracts be measured using cash flows of existing enforcement and that income be recognized as the service is rendered during the coverage period. The standard will come into force for the fiscal years beginning as from November 1, 2023.
The Group is evaluating the impact of the application of this new standard.
(c) Annual Improvements 2018-2020
Fees included in the 10% test for derecognition of financial liabilities
The amendment to IFRS 9 establishes which fees should be included in the 10% test for derecognition of financial liabilities. Costs or fees could be paid to either third parties or the lender. Under the amendment, costs or fees paid to third parties will not be included in the 10% test.
Illustrative examples accompanying IFRS 16 Leases
Illustrative Example 13 accompanying IFRS 16 is amended to remove the illustration of payments from lessor relating to lease improvements. The reason for the amendment is to remove any potential confusion about the treatment of lease incentives.
15 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Subsidiaries as First-time adopters of IFRS
IFRS 1 grants an exemption to subsidiaries that become a first-time adopter of IFRS after their parent. The subsidiary may measure the carrying amounts of its assets and liabilities that would have been included in the consolidated financial statements of its parent, based on the transition date to IFRS of the parent if no adjustments were made for reasons of consolidation and for the purposes of the business combination by which the parent acquired the subsidiary.
IFRS 1 was amended to allow entities that have taken this IFRS 1 exemption to also measure cumulative translation differences using the amounts reported by the parent, based on the transition date to IFRS of the parent. The amendment to IFRS 1 extends the above-mentioned exemption to cumulative translation differences in order to reduce costs for first-time adopters of IFRS. The amendment will also apply to associates and joint ventures that have taken the same exemption from IFRS 1.
Taxation in fair value measurements
The requirement for entities to exclude cash flows for taxation when measuring fair value measurement under IAS 41 'Agriculture' has been removed. The purpose of this amendment is to align it with the requirement included in the standard to discount cash flows after taxes.
Effective date
All amendments will become effective on January 1, 2022. Early application is allowed.
The Group is evaluating the impact of the application of this new standard.
(d) | Amendments to IAS 1 'Presentation of Financial Statements', IFRS Practice Statement 2 and IAS 8 'Accounting Policies, changes in accounting estimates and errors' |
The IASB amended IAS 1, 'Presentation of Financial Statements', to require companies to disclose material accounting policy information rather than significant accounting policy information. The amendment also clarifies that accounting policy information is expected to be material or of relative importance if, without it, users of the financial statements would be unable to understand other material information, or of relative importance, in the financial statements concerning significant accounting standards. To support this amendment, the Board also amended IFRS Practice State 2, 'Making Materiality Judgments', to provide guidance on how to apply the concept of materiality to accounting policy disclosures.
The amendment to IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', helps to distinguish between changes in accounting policies from changes in accounting estimates. This distinction is important because changes in accounting estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied retrospectively to past transactions and other past events as well as to those of the current period.
These amendments are applicable to annual periods beginning on or after January 1, 2023. Early application is allowed. Changes shall be applied prospectively.
The Group is evaluating the impact of the application of this new standard.
1.3 Impairment of financial assets
The Group evaluates, based on a prospective approach, expected credit losses ('ECL') related to financial assets rated at amortized cost or fair value with changes in another comprehensive income, the exposure resulting from loan commitments and financial guarantee contracts with the scope set by Communication 'A' 6847 issued by the Argentine Central Bank.
The Group measures ECL of financial instruments reflecting the following:
(a) | a probability amount, weighed and unbiased, that is defined through the evaluation of a range of possible result; |
(b) | the temporal value of money; and |
(c) | the reasonable and sustainable information available at no cost nor excessive effort on the submission date on past events, current conditions and future economic condition forecasts. |
16 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
IFRS 9 sets forth the following 'Three stages' model for the impairment based on changes in the credit quality from initial recognition:
· If, on the submission date, the credit risk of a financial instrument has not increased significantly since its initial recognition, the Group will classify such instrument in 'Stage 1'.
· If a significant increase in credit risk ('SICR') is detected, from its initial recognition, the instrument is moved to 'Stage 2', but such instrument is not deemed to contain a credit impairment.
· If the financial instrument contains credit impairment, it is moved to 'Stage 3'.
· For financial instruments in 'Stage 1', the Bank measures ECL at an amount equivalent to the amount of expected credit loss during the useful life term of the asset that result from potential default events within the next 12 months. As for Financial Instruments in 'Stage 2' and 'Stage 3', the Group measures ECL during the useful life term of the asset (hereinafter 'lifetime'). Note 1.3.1 includes a description of how the Group defines when a significant increase in credit risk has occurred.
· A generalized concept in the measurement of ECL pursuant to IFRS 9 shall be considered prospective information.
· Financial assets with impairment on credit value, either purchased or produced, account for those financial assets which have been impaired since initial recognition. ECL of this type of financial instruments is always measured during the asset lifetime ('Stage 3').
The following chart summarizes the impairment requirements pursuant to IFRS 9 (for financial assets that do not entail impairment on credit value, either purchased or produced:
Changes in the credit quality since initial recognition | |||
Stage 1 | Stage 2 | Stage 3 | |
(initial recognition) | (significant increase of credit risk since initial recognition) | (Impaired credit) | |
12 months ECL | Lifetime ECL |
There have been no significant changes in the judgments and key assumptions adopted by the Bank for the measurement of PCE, with respect to what was reported in the financial statements as of December 31, 2020.
1.3.1 Maximum exposure to credit risk
The chart below includes an analysis of credit risk exposure of the financial instruments for which expected credit loss provisions are recognized. The gross amount of financial assets books included in the chart accounts for the maximum credit risk exposure of such assets.
June 30, 2021 | ||||||||||||||||
ECL Staging | ||||||||||||||||
Loan Type |
Stage 1 12-month ECL |
Stage 2 Lifetime ECL |
Stage 3 Lifetime ECL | Total | ||||||||||||
Overdrafts | 17,240,438 | 361,959 | 290,871 | 17,893,268 | ||||||||||||
Documents | 23,109,795 | 662,817 | 125,937 | 23,898,549 | ||||||||||||
Mortgage loans | 10,399,962 | 1,549,056 | 1,120,080 | 13,069,098 | ||||||||||||
Pledge loans | 1,918,060 | 336,887 | 239,155 | 2,494,102 | ||||||||||||
Personal loans | 20,763,850 | 3,634,700 | 1,386,290 | 25,784,840 | ||||||||||||
Individuals and Business | 17,165,167 | 2,364,725 | 746,951 | 20,276,843 | ||||||||||||
Consumer finance | 3,598,683 | 1,269,975 | 639,339 | 5,507,997 | ||||||||||||
Credit cards | 49,198,841 | 3,749,798 | 1,380,264 | 54,328,903 | ||||||||||||
Individuals and Business | 42,246,335 | 3,309,779 | 568,945 | 46,125,059 | ||||||||||||
Consumer finance | 6,952,506 | 440,019 | 811,319 | 8,203,844 | ||||||||||||
Financial Lease | 3,868,564 | 251,144 | 82,092 | 4,201,800 | ||||||||||||
Others | 28,568,266 | 3,412,006 | 4,693,789 | 36,674,061 | ||||||||||||
Total | 155,067,776 | 13,958,367 | 9,318,478 | 178,344,621 |
17 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
1.3.2 Allowances for loan loss
Allowances for loan losses recognized in the year is affected by a range of factors as follows:
· | Transfers between Stage 1 and Stage 2 or 3 given financial instruments experience significant increases (or decreases) in credit risk or are impaired over the period, and the resulting 'increase' between ECL at 12 months and Lifetime; |
· | Additional assignments for new financial instruments recognized during the period, as well as write-offs for withdrawn financial instruments; |
· | Impact on the calculation of ECL of changes in DP, EAD and LGD during the period, resulting from the regular updating of model inputs; |
· | Impact on the measurement of ECL as a result of changes in models and assumptions; |
· | Impact resulting from time elapsing as a consequence of the current value updating; |
· | Conversion to local currency for foreign-currency-denominated assets and other movements; and |
· | Financial assets withdrawn during the period and application of provisions related to assets withdrawn from the balance sheet during the period. |
The following charts explain changes in the provision for credit risk between the beginning and end of the year due to the following factors:
Allowance | ||||||||||||||||
Stage 1 12-month ECL |
Stage 2 Lifetime ECL |
Stage 3 Lifetime ECL | Total | |||||||||||||
Allowances for loan losses as of 12/31/2020 | 1,565,284 | 2,081,958 | 6,154,656 | 9,801,898 | ||||||||||||
Transfers: | ||||||||||||||||
From Stage 1 to Etapa 2 | (148,020 | ) | 757,116 | - | 609,096 | |||||||||||
From Stage 1 to Etapa 3 | (16,362 | ) | - | 418,532 | 402,170 | |||||||||||
From Stage 2 to Etapa 3 | - | (361,244 | ) | 847,682 | 486,438 | |||||||||||
From Stage 2 to Etapa 1 | 33,751 | (168,772 | ) | (135,021 | ) | |||||||||||
From Stage 3 to Etapa 2 | - | 19,769 | (82,157 | ) | (62,388 | ) | ||||||||||
From Stage 3 to Etapa 1 | (288 | ) | - | (121,208 | ) | (121,496 | ) | |||||||||
Net changes | 314,411 | (161,104 | ) | (476,303 | ) | (322,996 | ) | |||||||||
Withdrawn financial assets | (483,080 | ) | (206,824 | ) | (807,999 | ) | (1,497,903 | ) | ||||||||
Exchange Differences and Others | 37,897 | 17,681 | 148,277 | 203,855 | ||||||||||||
Allowances for loan losses as of 06/30/2021 | 1,303,593 | 1,978,580 | 6,081,480 | 9,363,653 |
* | IUDÚ Compañía Financiera S.A.´s balances of provisions are held under minimum provisions Standards pursuant to Communication 'A' 6990 issued by the Argentine Central Bank. |
Assets Before Allowances | ||||||||||||||||
Stage 1 12-month ECL |
Stage 2 Lifetime ECL |
Stage 3 Lifetime ECL | Total | |||||||||||||
Assets Before Allowances as of 12/31/2020 | 120,877,314 | 12,342,493 | 9,394,564 | 142,614,371 | ||||||||||||
Transfers: | ||||||||||||||||
From Stage 1 to Etapa 2 | (3,957,736 | ) | 3,957,736 | - | - | |||||||||||
From Stage 1 to Etapa 3 | (538,795 | ) | - | 538,795 | - | |||||||||||
From Stage 2 to Etapa 3 | - | (997,586 | ) | 997,586 | - | |||||||||||
From Stage 2 to Etapa 1 | 1,971,758 | (1,971,758 | ) | - | - | |||||||||||
From Stage 3 to Etapa 2 | - | 77,240 | (77,240 | ) | - | |||||||||||
From Stage 3 to Etapa 1 | 171,370 | - | (171,370 | ) | - | |||||||||||
Net changes | (7,030,778 | ) | (892,005 | ) | (770,721 | ) | (8,693,504 | ) | ||||||||
Withdrawn financial assets | (483,080 | ) | (206,824 | ) | (807,999 | ) | (1,497,903 | ) | ||||||||
Exchange Differences and Others | 1,004,599 | 94,460 | 214,863 | 1,313,922 | ||||||||||||
Assets Before Allowances as of 06/30/2021 | 112,014,652 | 12,403,756 | 9,318,478 | 133,736,886 |
18 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Assets Before Allowances | Total as of June 30, | |||||||||||||||
Stage 1 | Stage 2 | Stage 3 | 2021 | |||||||||||||
Promissory notes | 23,109,795 | 662,817 | 125,937 | 23,898,549 | ||||||||||||
Unsecured corporate loans | 9,278,762 | 679,312 | 2,780,874 | 12,738,948 | ||||||||||||
Overdrafts | 4,653,317 | 222,055 | 290,872 | 5,166,244 | ||||||||||||
Mortgage loans | 10,399,962 | 1,549,056 | 1,120,080 | 13,069,098 | ||||||||||||
Automobile and other secured loans | 1,918,060 | 336,887 | 239,155 | 2,494,102 | ||||||||||||
Personal loans | 20,763,850 | 3,634,700 | 1,386,290 | 25,784,840 | ||||||||||||
Credit card loans | 18,597,717 | 2,338,022 | 1,380,264 | 22,316,003 | ||||||||||||
Foreign Trade Loans | 12,929,824 | 2,322,519 | 1,717,412 | 16,969,755 | ||||||||||||
Other financings | 3,738,804 | 367,052 | 108,684 | 4,214,540 | ||||||||||||
Other receivables from financial transactions | 2,755,997 | 40,193 | 86,818 | 2,883,008 | ||||||||||||
Receivables from financial leases | 3,868,564 | 251,143 | 82,092 | 4,201,799 | ||||||||||||
Subtotal | 112,014,652 | 12,403,756 | 9,318,478 | 133,736,886 | ||||||||||||
Allowances for loan losses | (1,303,593 | ) | (1,978,580 | ) | (6,081,480 | ) | (9,363,653 | ) | ||||||||
Total | 110,711,059 | 10,425,176 | 3,236,998 | 124,373,233 |
1.4 Critical accounting policies and estimates
The preparation of financial statements in accordance with the accounting framework established by the Argentine Central Bank requires the use of certain critical accounting estimates. It also requires Management to exercise its judgment in the process of applying the accounting standards established by the Argentine Central Bank to establish the Group's accounting policies.
The Group has identified the following areas that involve a higher degree of judgment or complexity, or areas in which the assumptions and estimates are significant for the consolidated financial statements that are essential for understanding the underlying accounting / financial reporting risks:
a) Fair value of derivatives and other financial instruments
The fair value of financial instruments not listed in active markets is determined by using valuation techniques. Such techniques are regularly validated and reviewed by qualified personnel independent from the area which developed them. All models are assessed and adjusted before being used in order to ensure that results reflect current information and comparable market prices. As long as possible, models rely on observable inputs only; however, certain factors, such as implicit rates in the last available tender for similar securities and spot rate curves, require the use of estimates. Changes in the assumptions of these factors may affect the reported fair value of financial instruments.
b) Allowances for loan losses and advances.
The Group recognizes the allowance for credit risks under the expected credit losses method included in IFRS 9. The most significant judgments of the model relate to defining what is considered to be a significant increase in credit risk, determining the life of revolving facilities, and in making assumptions and estimates to add relevant information about past events, current conditions, and forecasts of economic conditions. The impact of the forecasts of economic conditions is determined in accordance with the weighted average of three internally developed macroeconomic scenarios that take into consideration the Bank's economic prospects derived from expected macroeconomic variables, which include inflation rate, monthly economic activity estimator, and private sector salary. A high degree of judgment is involved in making estimations that are highly subjective and very sensitive to risk factors.
Note 1.3 provides more detail of how the allowance for expected credit loss (ECL) is measured.
19 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
c) | Impairment of Non-Financial Assets |
Intangible assets with finite lives and property, plants and equipment are amortized or depreciated along their useful lives in a straight-line method. The Group reviews the conditions related to these assets to determine whether events and circumstances justify a review of the amortization and remaining depreciation period and whether there are factors or circumstances that imply an impairment in the value of assets that cannot be recovered.
The Group has applied the judgment in the identification of impairment indicators for property, plant and equipment and intangible assets. The Group has defined that there was no evidence of impairment for any period included in the consolidated Financial Statements. Given the aforementioned, no recoverable value has been calculated.
The evaluation process for potential impairment of an asset of indefinite useful life is subject to and require a significant judgment in many points over the course of the analysis, including the identification of its cash-generating unit, the identification and allocation of assets and liabilities to a cash-generating unit and the definition of their recoverable value. The recoverable value is compared with the carrying value in order to define the non-recoverable portion of such value. When calculating the recoverable value of the cash-generating unit in virtue of the assessment of annual or regular impairment, the Group use estimates and significant judgments on future cash flows of the cash-generating unit. Its cash flow forecasts are based on assumptions that account for the best use of its cash-generating unit.
Although the Group believes that assumptions and forecasts used are suitable in virtue of the information available for the administration, changes in assumptions or circumstances may require changes in the assessment. Negative changes in assumptions utilized in an impairment tests of indefinite useful life intangible assets may result in the reduction or removal of the excess of fair value over the book value, which would result in the potential recognition of the impairment.
The Group decided that it would not be necessary to recognize an impairment loss in indefinite useful life intangible assets under such conditions.
d) | Income tax and deferred tax |
A significant judgment is required to determine liabilities and assets from current and deferred taxes. The current tax is measured at the amount expected to be paid to the taxation authority using the tax rates that have been enacted or substantially enacted by the end of the reporting period. The deferred tax is measured over temporary differences between tax basis of assets and liabilities and book values at the tax rates that are expected to apply when the asset is realized or the liability settled.
Assets from deferred tax are recognized upon the possibility of relying on future taxable earnings against which temporary differences can be used, based on the Senior Management´s assumptions regarding amounts and opportunities of future taxable earnings. Later, it is necessary to determine whether assets from deferred tax are likely to be used and set off future taxable earnings. Real results may differ from estimates, such as changes in tax legislation or the result of the final review of affidavits issued by tax authorities and tax courts.
Likely future tax earnings and the number of tax benefits are based on a medium term business plan prepared by the administration. Such plan is based on reasonable expectations.
1.5 Consolidation
A subsidiary is an entity (or subsidiary), including structured entities, in which the Group has control because it (i) has the power to manage relevant activities of the subsidiary (ii) has exposure, or rights, to variable returns from its involment with the subsidiary, and (iii) has the ability to use its power over the subsidiary in order to affect the amount of the investor´s returns. The existence and the effect of the substantive rights, including substantive rights of potential vote, are considered when evaluating whether the Group has power over the other entity. For a right to be substantive, the right holder must have the practical competence to exercise such right whenever it is necessary to make decisions on the direction of the entity's relevant activities. The Group can have control over an entity, even when it has less voting powers than those required for the majority.
Accordingly, the protecting rights of other investors, as well as those related to substantive changes in the subsidiary´ activities or applicable only in unusual circumstances, do not prevent the Group from having power over a subsidiary. The subsidiaries are consolidated as from the date on which control is transferred to the Group, ceasing its consolidation as from the date on which control ceases.
20 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
The following chart provides the subsidiaries which are object to consolidation:
Percentage of Participation | ||||||||||||||||||||||||
06/30/2021 | 12/31/2020 | |||||||||||||||||||||||
Company | Condition | Legal Adress |
Principal Activity | Direct |
Direct and Indirect | Direct |
Direct and Indirect | |||||||||||||||||
Banco Supervielle S.A. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina |
Commercial Bank | 97.10 | % | 99.90 | % (1) | 97.10 | % | 99.90 | % (1) | |||||||||||||
IUDÚ Compañía Financiera S.A. | Controlled | Reconquista 320, C.A.B.A., Argentina |
Financial Company | 5.00 | % | 99.90 | % | 5.00 | % | 99.90 | % | |||||||||||||
Tarjeta Automática S.A. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina |
Credit Card and Consumer Loans | 87.50 | % | 99.99 | % | 87.50 | % | 99.99 | % | |||||||||||||
Supervielle Asset Management S.A. | Controlled | San Martín 344, C.A.B.A., Argentina |
Asset Management and Other Services | 95.00 | % | 100.00 | % | 95.00 | % | 100.00 | % | |||||||||||||
Sofital S.A.F. e I.I. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina |
Financial operations and administration of marketable securities | 96.80 | % | 100.00 | % | 96.80 | % | 100.00 | % | |||||||||||||
Espacio Cordial de Servicios S.A. | Controlled | Patricias Mendocinas 769, Ciudad de Mendoza, Argentina |
Trading of products and services | 95.00 | % | 100.00 | % | 95.00 | % | 100.00 | % | |||||||||||||
Supervielle Seguros S.A. | Controlled | San Martin 344, C.A.B.A., Argentina |
Insurance company | 95.00 | % | 100.00 | % | 95.00 | % | 100.00 | % | |||||||||||||
Micro Lending S.A.U. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina |
Financial Company | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | |||||||||||||
InvertirOnline S.A.U. | Controlled | San Martin 344, C.A.B.A., Argentina | Financial Broker | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | |||||||||||||
InvertirOnline.Com Argentina S.A.U. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Representations | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | |||||||||||||
Supervielle Productores Asesores de Seguros S.A. | Controlled | San Martin 344, C.A.B.A., Argentina | Insurance Broker | 95.24 | % | 100.00 | % | 95.20 | % | 100.00 | % | |||||||||||||
Bolsillo Digital S.A.U. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina |
Computer Services | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | |||||||||||||
Futuros del Sur S.A. | Controlled | Tres de Febrero 515, Rosario, Santa Fe |
Settlement and Clearing Agent | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | |||||||||||||
Easy Cambio S.A. | Controlled | Av. Colón 2535, Mar del Plata, Buenos Aires |
Services and exchange agency | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % |
(1) | Grupo Supervielle S.A.'s direct and indirect interest in Banco Supervielle S,A votes amounts to 99.87% as of 06/30/21 and 12/31/2020 . |
(2) | All the subsidiaries carry out their activities in Argentina, the local and functional currency being Argentine pesos. |
1.6. | Consolidated Structured Entities |
The Group has securitized certain financial instruments, mainly loans, originated by personal and pledge loans through the transfers of said instruments to financial trusts that issue multiple classes of debt securities and participation certificates.
21 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Regarding the financial statements as of June 30, 2021 the following consolidated structured entities have been consolidated as of the date of these consolidated financial statements:
Financial | Due of principal | Securitized | Issued Securities | |||||||||||||||||||
Issuers | Trust | Set-up on | obligation | Amount | Type | Amount | Type | Amount | ||||||||||||||
Micro Lending S.A.U. | III | 06/08/2011 | 10/12/2016 | $ | 39,779 | VDF TV A VDF B | VN$ | 31,823 | CP | VN$ | 1,592 | |||||||||||
Micro Lending S.A.U. | IV | 09/01/2011 | 06/29/2017 | $ | 40,652 | VDF TV A VDF B | VN$ | 32,522 | CP | VN$ | 1,626 | |||||||||||
IUDÚ Compañia Financiera S.A | 23 | 02/26/2021 | 12/17/2021 | $ | 920,000 | VDF | VN$ | 736,000 | CP | VN$ | 184,000 | |||||||||||
IUDÚ Compañia Financiera S.A | 24 | 05/28/2021 | 04/15/2022 | $ | 699,000 | VDF | VN$ | 559,200 | CP | VN$ | 139,800 |
Regarding the financial statements as of December 31, 2020 the following consolidated structured entities have been consolidated as of the date of these consolidated financial statements:
Financial | Due of principal | Securitized | Issued Securities | |||||||||||||||||||
Issuers | Trust | Set-up on | obligation | Amount | Type | Amount | Type | Amount | ||||||||||||||
Micro Lending S.A.U. | III | 06/08/2011 | 10/12/2016 | $ | 39,779 | VDF TV A VDF B | VN$ | 31,823 | CP | VN$ | 1,592 | |||||||||||
Micro Lending S.A.U. | IV | 09/01/2011 | 06/29/2017 | $ | 40,652 | VDF TV A VDF B | VN$ | 32,522 | CP | VN$ | 1,626 |
The Group controls a structured entity when it is exposed to, or holds the right to, variable returns and has the capacity to allocate returns through its power to run the activities of the entity, Structured entities are consolidated as from the date on which the control is transferred to the Group. The consolidation of such entities is ceased on the date on which such control is terminated.
As for financial trusts, the Group has evaluated the following:
· | The purpose and design of the trust |
· | Identification of relevant activities |
· | Decision-making process on these activities |
· | If the rights that the Group owns allow it to direct the relevant activities of the trust |
· | If the Group is exposed, or is entitled to the variable results from its participation in said trust |
· | If the Group has the capacity to affect said results through its power over the trust |
In accordance with the aforementioned, the Group has decided that it holds control on such financial trusts and, therefore, such structured entities have been consolidated.
The following chart details the assets and liabilities of Structured Entities that have been consolidated by the Group as of June 30, 2021, and December 31,2020:
06/30/2021 | 12/31/2020 | |||||||
Assets | - | |||||||
Loans | 1,171,197 | - | ||||||
Financial assets | 99,514 | - | ||||||
Other assets | 33,412 | - | ||||||
Total Assets | 1,304,123 | |||||||
Liabilities | - | |||||||
Financial liabilities | 761,584 | - | ||||||
Other liabilities | 19,482 | - | ||||||
Total Liabilities | 781,066 | - |
Transactions with non-controlling interest
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in a separate reserve within equity attributable to owners of the Group.
22 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
1.7. | Foreign currency translation |
(a) | Functional and presentation currency |
Figures included in the consolidated financial statements as per each entity of the Group are expressed in the functional currency, that is, in the currency of the main economic setting where it operates. Consolidated financial ftatements are expressed in Argentine pesos, which is the functional currency and the reporting currency of the Group.
(b) | Transactions and balances |
Transactions in foreign currency are converted in the functional currency at the reference Exchange rate released by the Argentine Central Bank and those carried out in other currencies, at the repo rate in US dollars for the reference Exchange rate released by the Argentine Central Bank. Earnings and losses in foreign currency that result in the liquidation of such transactions and the conversion of monetary assets and liabilities denominated in foreign currency at closing exchange rates, are recognized in the integral income statement, under 'Difference of exchange rate in gold and foreign currency', except when such items are deferred in the shareholders' equity for transactions classified as cash flow hedging, when applicable.
As of June 30, 2021 and December 31, 2020 the balances in US dollars were converted at the reference exchange rate determined by the Argentine Central Bank. In the case of foreign currencies other than US dollars, they have been converted to this currency using the types of passes reported by the Argentine Central Bank.
1.8. | Cash and due from banks |
Cash and due from banks includes cash available, freely available deposits in local banks and correspondent banks abroad, which are liquid short-term instruments and have a maturity of less than three months from the date of origination.
Assets recorded in cash and due from Banks are recorded at amortized cost which is close to its fair value.
Cash equivalents are made up by highly liquid short-term securities with three-month or shorter initial maturities, with fair value rating.
The composition of the cash on each of the indicated dates is detailed below:
Item | 06/30/2021 | 12/31/2020 | 06/30/2020 | 12/31/2019 | ||||||||||||
Cash and due from banks | 25,889,622 | 45,962,544 | 47,620,939 | 45,048,243 | ||||||||||||
Debt securities at fair value through profit or loss | 5,529,671 | 2,341,816 | 3,248,300 | 969,959 | ||||||||||||
Money Market Funds | 1,167,362 | 1,156,812 | 2,766,918 | 1,742,243 | ||||||||||||
Cash and cash equivalents | 32,586,655 | 49,461,172 | 53,636,157 | 47,760,445 |
For their part, the reconciliations between the balances of those items considered cash equivalents in the Statement of Cash Flow and those reported in the Statement of Financial Position as of the indicated dates are set out below:
Items | 06/30/2021 | 12/31/2020 | 06/30/2020 | 12/31/2019 | ||||||||||||
Cash and due from Banks | ||||||||||||||||
As per Statement of Financial Position | 25,889,622 | 45,962,544 | 47,620,939 | 45,048,243 | ||||||||||||
As per the Statement of Cash Flows | 25,889,622 | 45,962,544 | 47,620,939 | 45,048,243 | ||||||||||||
Debt securities at fair value through profit or loss | ||||||||||||||||
As per Statement of Financial Position | 16,167,758 | 12,371,899 | 5,419,115 | 969,959 | ||||||||||||
Securities not considered as cash equivalents | (10,638,087 | ) | (10,030,083 | ) | (2,170,815 | ) | - | |||||||||
As per the Statement of Cash Flows | 5,529,671 | 2,341,816 | 3,248,300 | 969,959 | ||||||||||||
Money Market Funds | ||||||||||||||||
As per Statement of Financial Position - Other financial assets | 4,345,632 | 5,369,322 | 4,584,988 | 3,604,303 | ||||||||||||
Other financial assets not considered as cash | (3,178,270 | ) | (4,212,510 | ) | (1,818,070 | ) | (1,862,060 | ) | ||||||||
As per the Statement of Cash Flow | 1,167,362 | 1,156,812 | 2,766,918 | 1,742,243 |
23 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Reconciliation of financing activities at June 30, 2021 and December 31,2020 is as follows:
Balances at | Cash Flows | Other non-cash | Balances at | |||||||||||||||||
Items | 12/31/2020 | Collections | Payments | movements | 06/30/2021 | |||||||||||||||
Unsubordinated debt securities | 5,297,145 | 1,901,726 | (5,918,042 | ) | - | 1,280,829 | ||||||||||||||
Subordinated debt securities | 1,429,285 | - | (209,019 | ) | - | 1,220,266 | ||||||||||||||
Financing received from the Argentine Central Bank and other financial institutions | 7,333,245 | 17,789,184 | (20,178,608 | ) | - | 4,943,821 | ||||||||||||||
Lease Liabilities | 1,480,955 | - | (1,366,164 | ) | 1,214,639 | 1,329,430 | ||||||||||||||
Total | 15,540,630 | 19,690,910 | (27,671,833 | ) | 1,214,639 | 8,774,346 |
2. | SEGMENT REPORTING |
The Group determines operating segments based on performance reports which are reviewed by the Board and key personnel of the Senior Management and updated upon changes.
With the purpose of implementing a strategic vision focused on the individual client and Small and Medium Size Companies that require and values closeness and digital service models, the Retail Banking sector turned into a new area of Personal and Business Banking.
The Bank´s clients receive the following services:
• | Personal and Business Banking Segment: |
- | Small companies, individuals and companies that record anual sales of up to 100,000 |
- | 'Small and Medium Size Companies', companies that record anual sales of over 100,000 up to 700,000 |
• | Corporate Baking Segment: |
- | Megras that record anual sales over 700,000 up to 2,500,000 |
- | Big Companies, Grandes companies that record anual sales of over 2,500,000 |
The Group considers the business for the type of products and services offered, identifying the following operating segments:
a- | Personal and Business Banking- Includes a wide range of financial products and services targeted to small comoanies, included in Entrepreneours & SMSs, and high income people identified with so-called Identité proposal. Likewise, the Bank offers services and products targeted to retirees and pensioneers. |
b- | Corporate Banking - Includes advisory services at a corporate and financial level, as well as the administration of assets and loans targeted to corporate clients. |
c- | Bank Treasury - This segment is in charge of the assignment of liquidity of the Entity in accordance with the different commercial areas´ needs and its own needs. Treasury implements financial risk administration policies of the Bank, administers trading desk operations, distributes financial products, such as negotianle securities and develops business with the financial sector clients and whole sale non-financial sector clients,Consumer - Includes loans and other credit products targeted to middle and lower-middle income sectors and non-financial products and services. |
d- | Consumer Finance- Includes loans and other credit products targeted to middle and lowed-middle income sectors and non-financial products and services. |
e- | Insurance: Includes insurance products, with a focus on life insurance, to targeted customers segments. |
f- | Asset Management and Other Services- Includes MFs administered by the Group. Includes also assets, liabilities and results of InvertirOnline.Com Argentina S.A.U. and InvertirOnline S.A.U., Supervielle Asset Management S.A., Easy Cambio S.A. and Bolsillo Digital S.A.U. |
Operating results of the different operating segments of the Group are reviewed individually with the purpose of taking decisions over the allocation of resources and the performance appraisal of each segment. The performance of such segments will be evaluated based on operating earnings and losses and is measured consistently with operating earnings and losses of the consolidated earnings and losses statement.
When a transaction is carried out between operating segments, they are taken in an independent and equitative manner, as in cases of transactions with third parties. Later, income, expenses and results from transfers between operating segments are removed from the consolidation.
24 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
The Group does not present information by geographical segments because there are no operating segments in economic environments with risks and returns that are significantly different,
The following chart includes information by segment as of June 30, 2021 and 2020 and December 31, 2020:
Result by segments |
Personal and Business Banking |
Corporate Banking |
Bank Treasury | Consumer Finance | Insurance |
Asset Management and Other Services | Adjustments |
Total as of 06,30,2021 | ||||||||||||||||||||||||
Interest income | 13,084,405 | 7,620,837 | 18,591,217 | 3,443,189 | 316 | 3,281 | (641,506 | ) | 42,101,739 | |||||||||||||||||||||||
Interest expenses | (6,514,365 | ) | (1,223,913 | ) | (15,658,126 | ) | (1,455,014 | ) | - | - | 598,100 | (24,253,318 | ) | |||||||||||||||||||
Distribution of results by Treasury | 1,592,365 | (3,391,736 | ) | 1,799,371 | - | - | - | - | - | |||||||||||||||||||||||
Net interest income | 8,162,405 | 3,005,188 | 4,732,462 | 1,988,175 | 316 | 3,281 | (43,406 | ) | 17,848,421 | |||||||||||||||||||||||
Services Fee Income | 4,296,659 | 387,454 | 23,798 | 1,160,079 | - | 1,097,335 | (159,701 | ) | 6,805,624 | |||||||||||||||||||||||
Services Fee Expenses | (1,435,150 | ) | (141,039 | ) | (67,442 | ) | (408,626 | ) | - | (62,637 | ) | 39,927 | (2,074,967 | ) | ||||||||||||||||||
Income from insurance activities | - | - | - | - | 823,603 | - | 125,234 | 948,837 | ||||||||||||||||||||||||
Net Service Fee Income | 2,861,509 | 246,415 | (43,644 | ) | 751,453 | 823,603 | 1,034,698 | 5,460 | 5,679,494 | |||||||||||||||||||||||
Subtotal | 11,023,914 | 3,251,603 | 4,688,818 | 2,739,628 | 823,919 | 1,037,979 | (37,946 | ) | 23,527,915 | |||||||||||||||||||||||
Net income from financial instruments at fair value through profit or loss | - | - | 3,423,290 | 154,215 | 199,578 | 137,728 | 43,098 | 3,957,909 | ||||||||||||||||||||||||
Income from withdrawal of assets rated at amortized cost | - | - | 87,079 | - | - | - | (16,912 | ) | 70,167 | |||||||||||||||||||||||
Exchange rate difference on gold and foreign currency | 112,734 | 34,893 | 84,492 | 11,413 | 176 | 52,222 | 60,479 | 356,409 | ||||||||||||||||||||||||
NIFFI And Exchange Rate Differences | 112,734 | 34,893 | 3,594,861 | 165,628 | 199,754 | 189,950 | 86,665 | 4,384,485 | ||||||||||||||||||||||||
Other operating income | 1,005,223 | 886,260 | 102,778 | 299,742 | 6,752 | 30,934 | (36,216 | ) | 2,295,473 | |||||||||||||||||||||||
Result from exposure to changes in the purchasing power of the currency | 214,357 | (846,287 | ) | (1,776,248 | ) | (491,404 | ) | (322,341 | ) | (214,028 | ) | (241,073 | ) | (3,677,024 | ) | |||||||||||||||||
Loan loss provisions | (2,412,552 | ) | (193,151 | ) | (4,187 | ) | (772,460 | ) | - | - | - | (3,382,350 | ) | |||||||||||||||||||
Net operating income | 9,943,676 | 3,133,318 | 6,606,022 | 1,941,134 | 708,084 | 1,044,835 | (228,570 | ) | 23,148,499 | |||||||||||||||||||||||
Personnel expenses | (7,773,358 | ) | (794,939 | ) | (504,579 | ) | (1,161,069 | ) | (240,678 | ) | (416,266 | ) | (22,103 | ) | (10,912,992 | ) | ||||||||||||||||
Administration expenses | (4,504,916 | ) | (336,766 | ) | (330,626 | ) | (697,713 | ) | (169,546 | ) | (264,660 | ) | 61,036 | (6,243,191 | ) | |||||||||||||||||
Depreciations and impairment of non-financial assets | (1,358,865 | ) | (128,122 | ) | (87,976 | ) | (88,714 | ) | (18,219 | ) | (12,937 | ) | (38,934 | ) | (1,733,767 | ) | ||||||||||||||||
Other operating expenses | (1,970,462 | ) | (791,923 | ) | (1,114,821 | ) | (487,520 | ) | (5,710 | ) | (86,355 | ) | (31,593 | ) | (4,488,384 | ) | ||||||||||||||||
Operating income | (5,663,925 | ) | 1,081,568 | 4,568,020 | (493,882 | ) | 273,931 | 264,617 | (260,164 | ) | (229,835 | ) | ||||||||||||||||||||
Result from associates and joint ventures | - | - | - | 831 | - | - | (831 | ) | - | |||||||||||||||||||||||
Result before taxes | (5,663,925 | ) | 1,081,568 | 4,568,020 | (493,051 | ) | 273,931 | 264,617 | (260,995 | ) | (229,835 | ) | ||||||||||||||||||||
Income tax | 1,970,333 | (155,813 | ) | (1,505,827 | ) | (139,982 | ) | (33,289 | ) | (77,097 | ) | 63,427 | 121,752 | |||||||||||||||||||
Net income | (3,693,592 | ) | 925,755 | 3,062,193 | (633,033 | ) | 240,642 | 187,520 | (197,568 | ) | (108,083 | ) | ||||||||||||||||||||
Net income for the period attributable to owners of the parent company | (3,693,592 | ) | 925,755 | 3,062,193 | (633,033 | ) | 240,642 | 187,520 | (197,464 | ) | (107,979 | ) | ||||||||||||||||||||
Net income for the period attributable to non-controlling interest | - | - | - | - | - | - | (104 | ) | (104 | ) | ||||||||||||||||||||||
Other comprehensive income | - | - | (308,553 | ) | - | (972 | ) | - | (45,238 | ) | (354,763 | ) | ||||||||||||||||||||
Other comprehensive income attributable to owners of the parent company | - | - | (308,553 | ) | - | (972 | ) | - | (44,878 | ) | (354,403 | ) | ||||||||||||||||||||
Other comprehensive income attributable to non-controlling interest | - | - | - | - | - | - | (360 | ) | (360 | ) | ||||||||||||||||||||||
Comprehensive income for the period | (3,693,592 | ) | 925,755 | 2,753,640 | (633,033 | ) | 239,670 | 187,520 | (242,806 | ) | (462,846 | ) | ||||||||||||||||||||
Comprehensive income attributable to owners of the parent company | (3,693,592 | ) | 925,755 | 2,753,640 | (633,033 | ) | 239,670 | 187,520 | (242,342 | ) | (462,382 | ) | ||||||||||||||||||||
Comprehensive income attributable to non-controlling interests | - | - | - | - | - | - | (464 | ) | (464 | ) |
25 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Assets by segments |
Personal and Business Banking |
Corporate Banking |
Bank Treasury | Consumer Finance | Insurance |
Asset Management and Other Services | Adjustments |
Total as of 06,30,2021 | ||||||||||||||||||||||||
Cash and due from banks | 8,997,090 | 397,806 | 15,693,152 | 383,356 | 1,305 | 599,556 | (182,643 | ) | 25,889,622 | |||||||||||||||||||||||
Debt securities at fair value through profit or loss | - | - | 14,762,482 | 1,394,243 | - | 11,033 | - | 16,167,758 | ||||||||||||||||||||||||
Loans and other financing | 58,064,928 | 51,455,845 | 7,905,675 | 10,531,195 | 710,591 | 62,836 | (4,357,837 | ) | 124,373,233 | |||||||||||||||||||||||
Other Assets | 3,394,445 | 1,919,343 | 124,552,755 | 3,462,912 | 1,818,701 | 780,697 | 18,671,908 | 154,600,761 | ||||||||||||||||||||||||
Total Assets | 70,456,463 | 53,772,994 | 162,914,064 | 15,771,706 | 2,530,597 | 1,454,122 | 14,131,428 | 321,031,374 | ||||||||||||||||||||||||
Liabilities by segments | ||||||||||||||||||||||||||||||||
Deposits | 118,067,448 | 23,097,180 | 98,067,850 | 4,145,076 | - | 23,891 | (197,595 | ) | 243,203,850 | |||||||||||||||||||||||
Financing received from the Argentine Central Bank and others financial institutions | 7,477 | - | 4,394,167 | 4,717,191 | - | - | (4,175,014 | ) | 4,943,821 | |||||||||||||||||||||||
Unsubordinated debt securities | 13,717 | 8,964 | 1,258,148 | - | - | - | - | 1,280,829 | ||||||||||||||||||||||||
Other liabilities | 7,356,502 | 2,469,737 | 4,913,586 | 3,063,673 | 1,227,924 | 498,873 | 7,385,354 | 26,915,649 | ||||||||||||||||||||||||
Total Liabilities | 125,445,144 | 25,575,881 | 108,633,751 | 11,925,940 | 1,227,924 | 522,764 | 3,012,745 | 276,344,149 |
Result by segments |
Personal and Business Banking |
Corporate Banking |
Bank Treasury | Consumer Finance | Insurance |
Asset Management and Other Services | Adjustments |
Total as of 06,30,2020 | ||||||||||||||||||||||||
Interest income | 14,464,313 | 8,666,920 | 14,199,525 | 2,781,261 | - | 44,594 | (310,495 | ) | 39,846,118 | |||||||||||||||||||||||
Interest expenses | (4,789,959 | ) | (778,516 | ) | (10,434,883 | ) | (898,303 | ) | - | - | 352,115 | (16,549,546 | ) | |||||||||||||||||||
Distribution of results by Treasury | 2,881,138 | (4,761,020 | ) | 1,879,881 | - | - | - | 1 | - | |||||||||||||||||||||||
Net interest income | 12,555,492 | 3,127,384 | 5,644,523 | 1,882,958 | - | 44,594 | 41,621 | 23,296,572 | ||||||||||||||||||||||||
Services Fee Income | 4,900,372 | 464,845 | 16,578 | 1,187,336 | - | 846,480 | (170,674 | ) | 7,244,937 | |||||||||||||||||||||||
Services Fee Expenses | (1,460,621 | ) | (106,325 | ) | (26,387 | ) | (440,355 | ) | - | (24,630 | ) | 5,308 | (2,053,010 | ) | ||||||||||||||||||
Income from insurance activities | - | - | - | - | 954,670 | - | 141,418 | 1,096,088 | ||||||||||||||||||||||||
Net Service Fee Income | 3,439,751 | 358,520 | (9,809 | ) | 746,981 | 954,670 | 821,850 | (23,948 | ) | 6,288,015 | ||||||||||||||||||||||
Subtotal | 15,995,243 | 3,485,904 | 5,634,714 | 2,629,939 | 954,670 | 866,444 | 17,673 | 29,584,587 | ||||||||||||||||||||||||
Net income from financial instruments at fair value through profit or loss | - | - | 897,567 | 59,183 | 247,307 | 117,025 | 143,582 | 1,464,664 | ||||||||||||||||||||||||
Income from withdrawal of assets rated at amortized cost | - | - | 113,559 | - | - | - | - | 113,559 | ||||||||||||||||||||||||
Exchange rate difference on gold and foreign currency | 141,510 | 39,447 | 257,363 | 17,608 | (83 | ) | 35,321 | 106,770 | 597,936 | |||||||||||||||||||||||
NIFFI And Exchange Rate Differences | 141,510 | 39,447 | 1,268,489 | 76,791 | 247,224 | 152,346 | 250,352 | 2,176,159 | ||||||||||||||||||||||||
Other operating income | 708,051 | 1,543,503 | 87,211 | 250,077 | 6,965 | 19,882 | (11,687 | ) | 2,604,002 | |||||||||||||||||||||||
Result from exposure to changes in the purchasing power of the currency | 197,471 | 328,264 | (1,959,540 | ) | (579,451 | ) | (229,829 | ) | (101,256 | ) | 6,786 | (2,337,555 | ) | |||||||||||||||||||
Loan loss provisions | (2,443,148 | ) | (2,782,006 | ) | 31,270 | (711,349 | ) | - | - | - | (5,905,233 | ) | ||||||||||||||||||||
Net operating income | 14,599,127 | 2,615,112 | 5,062,144 | 1,666,007 | 979,030 | 937,416 | 263,124 | 26,121,960 | ||||||||||||||||||||||||
Personnel expenses | (8,351,315 | ) | (742,391 | ) | (496,769 | ) | (1,112,175 | ) | (194,502 | ) | (254,890 | ) | (82,699 | ) | (11,234,741 | ) | ||||||||||||||||
Administration expenses | (4,483,867 | ) | (316,691 | ) | (304,107 | ) | (771,076 | ) | (168,612 | ) | (226,897 | ) | (35,738 | ) | (6,306,988 | ) | ||||||||||||||||
Depreciations and impairment of non-financial assets | (1,155,989 | ) | (90,198 | ) | (68,162 | ) | (86,754 | ) | (12,291 | ) | (3,156 | ) | (38,937 | ) | (1,455,487 | ) | ||||||||||||||||
Other operating expenses | (2,532,493 | ) | (929,037 | ) | (304,433 | ) | (369,690 | ) | (173 | ) | (47,071 | ) | (21,180 | ) | (4,204,077 | ) | ||||||||||||||||
Operating income | (1,924,537 | ) | 536,795 | 3,888,673 | (673,688 | ) | 603,452 | 405,402 | 84,570 | 2,920,667 | ||||||||||||||||||||||
Result from associates and joint ventures | - | - | - | 1,224 | - | - | (1,224 | ) | - | |||||||||||||||||||||||
Result before taxes from continuing operations | (1,924,537 | ) | 536,795 | 3,888,673 | (672,464 | ) | 603,452 | 405,402 | 83,346 | 2,920,667 | ||||||||||||||||||||||
Income tax | 625,414 | 139,618 | (1,524,981 | ) | 138,121 | (208,730 | ) | (140,134 | ) | 185,614 | (785,078 | ) | ||||||||||||||||||||
Net income | (1,299,123 | ) | 676,413 | 2,363,692 | (534,343 | ) | 394,722 | 265,268 | 268,960 | 2,135,589 | ||||||||||||||||||||||
Net income for the period attributable to owners of the parent company | (1,299,123 | ) | 676,413 | 2,363,692 | (534,343 | ) | 394,722 | 265,268 | 267,526 | 2,134,155 | ||||||||||||||||||||||
Net income for the period attributable to non-controlling interest | - | - | - | - | - | - | 1,434 | 1,434 | ||||||||||||||||||||||||
Other comprehensive income | 146,281 | 103,224 | 260,524 | - | - | - | 510,029 | |||||||||||||||||||||||||
Other comprehensive income attributable to owners of the parent company | 146,281 | 103,224 | 260,524 | - | - | - | (523 | ) | 509,506 | |||||||||||||||||||||||
Other comprehensive income attributable to non-controlling interest | - | - | - | - | - | - | 523 | 523 | ||||||||||||||||||||||||
Comprehensive income for the period | (1,152,842 | ) | 779,637 | 2,624,216 | (534,343 | ) | 394,722 | 265,268 | 268,960 | 2,645,618 | ||||||||||||||||||||||
Comprehensive income attributable to owners of the parent company | (1,152,842 | ) | 779,637 | 2,624,216 | (534,343 | ) | 394,722 | 265,268 | 267,003 | 2,643,661 | ||||||||||||||||||||||
Comprehensive income attributable to non-controlling interests | - | - | - | - | - | - | 1,957 | 1,957 |
26 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Assets by segments |
Personal and Business Banking |
Corporate Banking |
Bank Treasury | Consumer Finance | Insurance |
Asset Management and Other Services | Adjustments |
Total as of 12,31,2020 | ||||||||||||||||||||||||
Cash and due from banks | 15,472,162 | 668,564 | 29,187,267 | 302,233 | 2,727 | 525,535 | (195,944 | ) | 45,962,544 | |||||||||||||||||||||||
Debt securities at fair value through profit or loss | - | - | 11,062,649 | 1,296,902 | - | 12,348 | - | 12,371,899 | ||||||||||||||||||||||||
Loans and other financing | 65,763,927 | 52,937,484 | 7,297,906 | 9,203,187 | 742,004 | 61,914 | (3,193,949 | ) | 132,812,473 | |||||||||||||||||||||||
Other Assets | 10,739,389 | 10,432,589 | 74,494,761 | 3,852,119 | 1,572,608 | 1,163,296 | 19,807,629 | 122,062,391 | ||||||||||||||||||||||||
Total Assets | 91,975,478 | 64,038,637 | 122,042,583 | 14,654,441 | 2,317,339 | 1,763,093 | 16,417,736 | 313,209,307 | ||||||||||||||||||||||||
Liabilities by segments | ||||||||||||||||||||||||||||||||
Deposits | 117,596,938 | 20,283,501 | 81,708,330 | 4,467,338 | - | 26,516 | (201,188 | ) | 223,881,435 | |||||||||||||||||||||||
Financing received from the Argentine Central Bank and others financial institutions | 18,812 | - | 7,262,267 | 3,174,391 | - | - | (3,122,225 | ) | 7,333,245 | |||||||||||||||||||||||
Unsubordinated debt securities | 29,948 | 15,776 | 5,251,421 | - | - | - | - | 5,297,145 | ||||||||||||||||||||||||
Other liabilities | 9,375,924 | 2,598,643 | 7,398,871 | 2,529,861 | 1,074,193 | 679,402 | 7,463,161 | 31,120,055 | ||||||||||||||||||||||||
Total Liabilities | 127,021,622 | 22,897,920 | 101,620,889 | 10,171,590 | 1,074,193 | 705,918 | 4,139,748 | 267,631,880 |
27 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
3. | INCOME TAX |
Law 27,451 has recently been enacted, which mainly establishes the following accounting impacts
(a) | Article 27 of the Law stipulates that the inflation adjustment, positive or negative, corresponding to the first and second fiscal year beginning on January 1, 2019, should allocate a sixth (1/6) in that fiscal period and the remaining five sixth (5/6), in equal parts, in the next five (5) immediate fiscal periods. |
In turn, it is clarified that said provision does not preclude the allocation of the remaining thirds corresponding to previous periods, calculated in accordance with the previous version of article 194 of the Income Tax Law.
(b) | Article 48 of the Law 27,451 establishes that until the fiscal years beginning as of January 1, 2021 inclusive, the tax rate will be thirty percent (30%) -Dividends or distributed profits will be 7%. |
The following table reconciles the statutory income tax rate in Argentina to the Group´s effective tax rate as of June 30, 2021
06/30/2021 | ||||
Current income tax | 774,674 | |||
Income tax - deferred method | (1,035,446 | ) | ||
Income Tax | (260,772 | ) | ||
Income tax allotted in the Income Statement | (121,752 | ) | ||
Income tax allotted in Other comprehensive income | (139,020 | ) | ||
Total Income Tax Charge | (260,772 | ) |
The following is a reconciliation between the income tax charged to income as of June 30,2021, that which would result from applying the current tax rate on the accounting profit:
06/30/2021 | ||||
Income before taxes | (229,835 | ) | ||
Tax rate | 27 | % | ||
Income for the year at tax rate | (62,055 | ) | ||
Permanent differences at tax rate: | ||||
- Contribution SGR | (264,250 | ) | ||
- Tax inflation adjustment | 134,568 | |||
- Adjustment DDJJ | 26,496 | |||
- Corrections to the deferred | 17,481 | |||
- Non-deductible results | 26,008 | |||
Income tax | (121,752 | ) |
3.1 | Deferred tax |
The net position of the deferred tax is as follows:
06/30/2021 | ||||
Deferred tax assets | 2,851,552 | |||
Deferred tax liability | (14,842 | ) | ||
Net assets by deferred tax | 2,836,710 |
Deferred tax assets / (liabilities) are summarized as follows:
Items |
Balance at 12/31/2020 |
(Charge)/Credit to Income |
(Charge)/Credit to OCI |
Balance at 06/30/2021 | ||||||||||||
Shelters | 116,979 | 41,413 | - | 158,392 | ||||||||||||
Organization and development expenses | (293,681 | ) | (143,371 | ) | - | (437,052 | ) | |||||||||
Intangible assets | (1,104,732 | ) | 3,641 | - | (1,101,091 | ) | ||||||||||
Investments | (53,888 | ) | 8,701 | - | (45,187 | ) | ||||||||||
Others | (8,592 | ) | 641 | - | (7,951 | ) | ||||||||||
Retirement plans | 145,176 | 57,817 | - | 202,993 | ||||||||||||
Forecasts of eventual commitments | 6,524 | 930 | - | 7,454 | ||||||||||||
Loan Loss Reserves | 2,430,146 | (4,803 | ) | - | 2,425,343 | |||||||||||
Property, plant and equipment | (1,547,590 | ) | (1,575,685 | ) | - | (3,123,275 | ) | |||||||||
Shareholding | (790 | ) | 445 | - | (345 | ) | ||||||||||
Foreign Currency | (53,737 | ) | 161,785 | (166,144 | ) | (58,096 | ) | |||||||||
Sale and replacement | 47,766 | (1,792 | ) | - | 45,974 | |||||||||||
Provisions | 154,501 | 21,688 | - | 176,189 | ||||||||||||
Loan origination costs | 1,176 | - | - | 1,176 | ||||||||||||
Right to use leased assets | 370,238 | 95,061 | - | 465,299 | ||||||||||||
Staff rewards | 114,452 | (15,645 | ) | - | 98,807 | |||||||||||
Inflation adjustment credit | 3,162,021 | (243,456 | ) | - | 2,918,565 | |||||||||||
Bankruptcies | 247,165 | 862,350 | - | 1,109,515 | ||||||||||||
Total | 3,733,134 | (730,280 | ) | (166,144 | ) | 2,836,710 |
28 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
The net position of the deferred tax is as follows:
06/30/2021 | ||||
Deferred taxes to be recovered in more than 12 months | 3,422,994 | |||
Deferred taxes to be recovered in 12 months | 2,682,167 | |||
Subtotal - Deferred tax assets | 6,105,161 | |||
Deferred taxes to be paid in more than 12 months | 3,235,275 | |||
Deferred taxes to be paid in 12 months | 33,176 | |||
Subtotal - Deferred tax liabilities | 3,268,451 | |||
Total Net Assets by deferred Tax | 2,836,710 |
According to the analysis carried out by the Group, it is considered that the assets detailed above meet the requirements to consider them recoverable and thus carry out the corresponding recognition.
3.2 | Income tax - Deferred tax |
In June 2021, a law was enacted that establishes a new tiered aliquot structure for income tax with three segments based on the level of accumulated net taxable income. The new aliquots are:
-25% for accumulated net taxable income of up to AR$ 5 million;
-30% for the second tax bracket, which is for net taxable income of up to AR$ 50 million;
-35% for net taxable income of more than AR$ 50 million.
Said modification will be applicable for fiscal years beginning on or after January 1, 2021.
4. | FAIR VALUES |
Fair value is defined as the amount by which an asset may be exchanged or a liability may be settled, in an arm's length orderly transaction between knowledgeable principal market participants (or more advantageous) at the date of measurement of the current market conditions regardless of whether such price is directly observable or estimated utilizing a valuation technique under the assumption that the Group is a going concern.
When a financial instrument is sold in a liquid and active market, its settled price in the market in a real transaction provides the best evidence of its fair value. When a stipulated price is not settled in the market or when it cannot be an indicator of a fair value of the instrument, in order to determine such fair value, another similar instrument's fair value may be used, as well as the analysis of discounted flows or other applicable techniques. Such techniques are significantly allocated by the assumptions used.
The Group classifies the fair values of the financial instruments into 3 levels, according to the quality of the data used for their determination.
Fair Value level 1: The fair value of financial instruments traded in active markets (such as publicly-traded derivatives, debt securities or available for sale) is based on market quoted prices as of the date of the reporting period. If the quote price is available and there is an active market for the instrument, it will be included in level 1.
Fair Value level 2: The fair value of financial instruments which are not traded in active markets, such as over-the-counter derivatives, is determined using valuation techniques that maximize the use of observable market data and rely the least possible on the Group's specific estimates. If all significant inputs required to fair value a financial instrument are observable, such instrument is included in level 2.
Fair Value level 3: If one or more significant inputs are not based on observable market data, the instrument is included in level 3.
The portfolio of financial instruments held by the Group is detailed below, as of June 30, 2021 and December 31, 2020:
Instrument portfolio as of 06/30/2021 | FV level 1 | FV level 2 | FV level 3 | |||||||||
Assets | ||||||||||||
- Debt securities at fair value through profit or loss | 15,782,788 | 384,970 | - | |||||||||
- Derivatives | 827,064 | - | - | |||||||||
- Other financial assets | 3,218,534 | - | - | |||||||||
- Other debt securities | 5,787,025 | 57,361,286 | - | |||||||||
- Financial assets pledged as collateral | 7,559,700 | - | - | |||||||||
- Investments in Equity Instruments | 56,893 | 77,184 | - | |||||||||
Total Assets | 33,232,004 | 57,823,440 | - | |||||||||
Liabilities | ||||||||||||
- Liabilities at fair value through profit or loss | 1,490,914 | - | - | |||||||||
- Other financial liabilities | 8,686,726 | - | - | |||||||||
Total Liabilities | 10,177,640 | - | - |
29 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Instrument portfolio as of 12/31/2020 | FV level 1 | FV level 2 | FV level 3 | |||||||||
Assets | ||||||||||||
- Debt securities at fair value through profit or loss | 12,072,160 | 299,739 | - | |||||||||
- Derivatives | 180,397 | - | - | |||||||||
- Other financial assets | 4,269,813 | - | - | |||||||||
- Other debt securities | 7,962,102 | 35,318,391 | - | |||||||||
- Financial assets pledged as collateral | 5,874,564 | - | - | |||||||||
- Investments in Equity Instruments | 108,936 | 36,851 | - | |||||||||
Total Assets | 30,467,972 | 35,654,981 | - | |||||||||
Liabilities | ||||||||||||
- Liabilities at fair value through profit or loss | 2,509,000 | - | - | |||||||||
- Derivatives | 2,500 | - | - | |||||||||
- Other financial liabilities | 9,182,051 | - | - | |||||||||
Total Liabilities | 11,693,551 | - | - |
According to IFRS, the estimated residual value of an instrument at inception is generally the transaction price. In the event that the transaction price differs from the determined fair value, the difference will be recognized in the income statement on a proportional basis during the duration of the instrument. As of June 30, 2021, no differences have been recorded with respect to the transaction price.
Fair Value of Other Financial Instruments
The following chart includes a comparison between the fair value and the accounting value of financial instruments not recorded at fair value as of June 30, 2021 and December 31, 2020 :
Other Financial Instruments as of 06/30/2021 |
Accounting value | Fair value | FV Level 1 | FV Level 2 | FV Level 3 | |||||||||||||||
Financial Assets | ||||||||||||||||||||
-Cash and due from Banks | 25,889,622 | 25,889,622 | 25,889,622 | - | - | |||||||||||||||
-Other financial assets | 1,127,098 | 1,127,098 | 1,127,098 | - | - | |||||||||||||||
-Loans and other financing | 124,373,233 | 136,359,145 | - | - | 136,359,145 | |||||||||||||||
- Repo transactions | 41,251,468 | 41,251,468 | 41,251,468 | - | - | |||||||||||||||
- Other Debt Securities | 7,215,757 | 7,215,757 | 7,215,757 | - | - | |||||||||||||||
-Financial assets in as guarantee | 281,176 | 281,176 | 281,176 | - | - | |||||||||||||||
200,138,354 | 212,124,266 | 75,765,121 | - | 136,359,145 | ||||||||||||||||
Financial Liabilities | ||||||||||||||||||||
-Deposits | 243,203,850 | 244,374,837 | - | 244,374,837 | ||||||||||||||||
- Other financial liabilities | 1,276,565 | 1,276,565 | 1,276,565 | - | - | |||||||||||||||
-Financing received from the BCRA and other financial institutions | 4,943,821 | 5,214,212 | - | - | 5,214,212 | |||||||||||||||
- Unsubordinated debt securities | 1,280,829 | 1,280,829 | 1,280,829 | - | - | |||||||||||||||
- Subordinated debt securities | 1,220,266 | 1,291,199 | 1,291,199 | - | - | |||||||||||||||
251,925,331 | 253,437,642 | 3,848,593 | - | 249,589,049 |
Other Financial Instruments as of 12/31/2020 |
Accounting value | Fair value | FV Level 1 | FV Level 2 | FV Level 3 | |||||||||||||||
Financial Assets | ||||||||||||||||||||
-Cash and due from Banks | 45,962,544 | 45,962,545 | 45,962,545 | - | - | |||||||||||||||
-Other financial assets | 1,099,509 | 1,099,508 | 1,099,508 | - | - | |||||||||||||||
-Loans and other financing | 132,812,473 | 140,867,501 | - | - | 140,867,501 | |||||||||||||||
- Repo transactions | 28,015,929 | 28,015,929 | 28,015,929 | - | - | |||||||||||||||
- Other Debt Securities | 8,433,538 | 8,433,538 | 8,433,538 | - | - | |||||||||||||||
-Financial assets pledged as collateral | 272,514 | 272,515 | 272,515 | - | - | |||||||||||||||
216,596,507 | 224,651,536 | 83,784,035 | - | 140,867,501 | ||||||||||||||||
Financial Liabilities | ||||||||||||||||||||
-Deposits | 223,881,435 | 224,732,783 | - | - | 224,732,783 | |||||||||||||||
-Other financial liabilities | 254,479 | 254,479 | 254,479 | - | - | |||||||||||||||
-Finances received from the BCRA and other financial institutions | 7,333,245 | 7,026,957 | - | - | 7,026,957 | |||||||||||||||
- Unsubordinated debt securities | 5,297,145 | 5,297,145 | 5,297,145 | - | - | |||||||||||||||
- Subordinated debt securities | 1,429,285 | 1,494,234 | 1,494,234 | - | - | |||||||||||||||
238,195,589 | 238,805,598 | 7,045,858 | - | 231,759,740 |
30 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
5. | RELATED PARTY TRANSACTIONS |
Related parties are considered to be all those entities that directly, or indirectly through other entities, control over another, are under the same control or may exercise significant influence over the financial or operational decisions of another entity.
The Group controls another entity when it has power over the financial and operating decisions of other entities and in turn obtains benefits from it, On the other hand, the Group considers that it has joint control when there is an agreement between the parties regarding the control of a common economic activity.
Finally, those cases in which the Group has significant influence is due to the power to influence the financial and operating decisions of another entity but not being able to exercise control over them, For the determination of such situations, not only the legal aspects are observed but also the nature and substance of the relationship.
Additionally, related parties are considered to be the key personnel of the Group's Management (members of the Board and managers of the Group and its subsidiaries), as well as the entities over which key personnel may exercise significant influence or control.
Controlling Entity
Mr, Julio Patricio Supervielle is the main shareholder of the Groups, with registered address on Bartolomé Mitre 434, 5th floor, Autonomous City of Buenos Aires, Julio Patricio Supervielle´s interest in the capital and votes of the Group as of June 30, 2021 and December 31, 2020 amounts to the 35,12% and 35,12% respectively.
Transactions with related parties
The financings, including those that were restructured, were granted in the normal course of business and on substantially the same terms, including interest rates and guarantees, as those in force at the time to grant credit to non-related parties, Likewise, they did not imply a risk of bad debts greater than normal nor did they present any other type of unfavorable conditions.
31 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
6. | COMPOSITION OF THE MAIN ITEMS OF THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND CONSOLIDATED INCOME STATEMENT |
6.1 Debt securities at fair value through profit or loss
06/30/2020 | 12/31/2020 | |||||||
Goverment securities | 14,848,835 | 11,109,555 | ||||||
Corporate securities | 384,970 | 503,392 | ||||||
Securities issued by the Argentine Central Bank | 933,953 | 758,952 | ||||||
16,167,758 | 12,371,899 |
6.2 Derivatives | ||||||||
Debtor balances related to forward operations in foreign currency to be settled in pesos | 825,270 | 179,734 | ||||||
Debtor balances related to forward operations in foreign currency | 1,794 | 663 | ||||||
827,064 | 180,397 |
6.3 Repo Trasactions | ||||||||
Financial debtors for active repos of government securities | 1,810,622 | - | ||||||
Financial debtors for active repos of I.R.M. with Argentine Central Bank | 39,283,012 | 27,947,978 | ||||||
Accrued interest receivable for active repos | 157,834 | 67,951 | ||||||
41,251,468 | 28,015,929 |
6.4 Other financial assets | ||||||||
Participation Certificates in Financial Trusts | 80,858 | 51,201 | ||||||
Investments in Asset Management and Other Services | 1,461,976 | 1,916,193 | ||||||
Other investments | 522,011 | 671,343 | ||||||
Receivable from spot sales peading settlament | 1,165,661 | 1,351,302 | ||||||
Several debtors | 586,062 | 1,042,862 | ||||||
Miscellaneous debtors for credit card operations | 439,440 | 255,422 | ||||||
Miscellaneous debtors for collections | 89,624 | 80,999 | ||||||
4,345,632 | 5,369,322 |
6.5 Loans and other financing | ||||||||
To the non-financial public sector | 69,970 | 29,489 | ||||||
To the financial sector | 930 | 15,117 | ||||||
Overdrafts | 5,113,743 | 3,125,918 | ||||||
Promisory notes | 34,372,929 | 39,317,758 | ||||||
Mortgage loans | 12,834,580 | 13,049,673 | ||||||
Automobile and other secured loans | 2,376,328 | 2,228,212 | ||||||
Personal loans | 25,148,938 | 25,599,263 | ||||||
Credit cards loans | 21,527,693 | 23,929,534 | ||||||
Foreign trade Loans | 13,955,078 | 12,354,863 | ||||||
Receivables from financial leases | 3,931,631 | 3,623,265 | ||||||
Others | 5,041,413 | 9,539,381 | ||||||
124,373,233 | 132,812,473 |
6.6 Other debt securities | ||||||||
Goverment securities | 13,011,268 | 16,391,073 | ||||||
Securities issued by the Argentine Central Bank | 57,352,711 | 35,318,391 | ||||||
Others | 89 | 4,567 | ||||||
70,364,068 | 51,714,031 |
6.7 Financial assets pledged as collateral | ||||||||
Special guarantees accounts in the Argentine Central Bank | 4,871,904 | 4,650,482 | ||||||
Deposits in guarantee | 2,968,972 | 1,496,596 | ||||||
7,840,876 | 6,147,078 |
6.8 Other non-financial assets | ||||||||
Other Miscellaneous assets | 777,110 | 756,585 | ||||||
Loans to employees | 102,419 | 294,837 | ||||||
Payments in advance | 728,898 | 403,492 | ||||||
Works of art and collector's pieces | 40,534 | 40,534 | ||||||
Retirement insurance | 59,014 | 179,529 | ||||||
Other non-financial assets | 110,268 | 20,511 | ||||||
1,818,243 | 1,695,488 |
6.9 Inventories | ||||||||
Electronics | 83,982 | 70,535 | ||||||
Home and Health care | 18,213 | 20,190 | ||||||
Tools and Workshop Equipment | 656 | 325 | ||||||
Obsolescence Reserve | (2,400 | ) | (2,115 | ) | ||||
100,451 | 88,935 |
6.10 Deposits | ||||||||
Non-financial sector | 14,934,221 | 9,914,730 | ||||||
Financial sector | 123,539 | 71,956 | ||||||
Current accounts | 22,760,150 | 24,236,167 | ||||||
Savings accounts | 114,462,540 | 125,885,465 | ||||||
Non-financial sector | 86,280,371 | 59,480,420 | ||||||
4,643,029 | 4,292,697 | |||||||
243,203,850 | 223,881,435 |
32 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
6.11 Liabilities at fair value through profit and loss | ||||||||
Liabilities for transactions in local currency | 1,490,914 | 2,509,000 | ||||||
1,490,914 | 2,509,000 |
6.12 Other financial liabilities | ||||||||
Amounts payable for spot transactions pending settlement | 1,871,089 | 1,707,596 | ||||||
Collections and other operations on behalf of third parties | 5,968,761 | 6,206,234 | ||||||
Fees accrued to pay | 3,794 | 6,796 | ||||||
Financial guarantee contracts | 14,025 | 24,854 | ||||||
Liabilities associated with the transfer of financial assets not derecognised | 771,690 | - | ||||||
Lease liability | 1,329,430 | 1,480,955 | ||||||
Others | 4,502 | 10,095 | ||||||
9,963,291 | 9,436,530 |
6.13 Financing received from the Argentine Central Bank and other financial institutions | ||||||||
Financing received from local financial institutions | 972,285 | 808,600 | ||||||
Financing received from international institutions | 3,971,536 | 6,524,645 | ||||||
4,943,821 | 7,333,245 |
6.14 Provisions | ||||||||
Provisions for unutilized balances | 386,350 | 583,568 | ||||||
Eventual commitments | 219,924 | 259,186 | ||||||
Other contingencies | 10,393 | 10,820 | ||||||
616,667 | 853,574 |
6.15 Derivative | ||||||||
Credit balances related to foreign currency forward transactions payable in pesos | - | 2,500 | ||||||
- | 2,500 |
6.16 Other non-financial liabilities | ||||||||
Payroll and social securities | 5,517,499 | 6,894,009 | ||||||
Sundry creditors | 4,564,382 | 4,587,854 | ||||||
Tax payable | 2,438,676 | 2,258,919 | ||||||
Planned payment orders pending settlement | 871,576 | 1,121,414 | ||||||
Revenue from contracts with customers | 153,772 | 236,443 | ||||||
Contribution to the deposit guarantee fund | 33,536 | 116,381 | ||||||
Others non- financial liabilities | 30,228 | 6,992 | ||||||
13,609,669 | 15,222,012 |
6.17 Interest income
Six-month period ended on |
Three-month period ended on | |||||||||||||||
06/30/2021 | 06/30/2020 | 06/30/2021 | 06/30/2021 | |||||||||||||
Interest on overdrafts | 1,048,009 | 2,229,686 | 572,110 | 993,900 | ||||||||||||
Interest on promissory notes | 4,230,261 | 3,603,821 | 2,033,221 | 1,509,850 | ||||||||||||
Interest on personal loans | 8,332,082 | 9,131,998 | 4,213,344 | 4,483,514 | ||||||||||||
Interest on promissory notes | 3,060,308 | 4,292,898 | 1,399,714 | 1,787,859 | ||||||||||||
Interest on credit card loans | 2,553,394 | 2,394,257 | 1,210,593 | 856,287 | ||||||||||||
Interest on mortgage loans | 3,229,937 | 2,501,690 | 1,653,161 | 1,134,085 | ||||||||||||
Interest on automobile and other secured loan | 597,099 | 460,030 | 304,252 | 219,401 | ||||||||||||
Interest on foreign trade loans and USD loans | 602,721 | 1,048,681 | 265,502 | 518,681 | ||||||||||||
Interest on financial leases | 519,312 | 471,770 | 278,816 | 228,766 | ||||||||||||
Interest on public and private securities measured at amortized cost | 10,785,906 | - | 6,019,403 | (3,952,293 | ) | |||||||||||
Others | 7,142,710 | 13,711,287 | 3,692,327 | 11,393,284 | ||||||||||||
42,101,739 | 39,846,118 | 21,642,443 | 19,173,334 |
33 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
6.18 Interest expenses | ||||||||||||||||
Interest on current accounts deposits | 8,112,478 | 2,784,709 | 4,417,092 | 1,342,206 | ||||||||||||
Interest on time deposits | 15,354,381 | 11,490,317 | 7,960,713 | 4,880,225 | ||||||||||||
Interest on other liabilities from financial transactions | 653,028 | 1,913,369 | 325,336 | 591,983 | ||||||||||||
Interest from financing from financial sector | 47,466 | 88,210 | 41,359 | 80,214 | ||||||||||||
Others | 85,965 | 272,941 | 48,121 | 108,837 | ||||||||||||
24,253,318 | 16,549,546 | 12,792,621 | 7,003,465 |
6.19 Net income from financial instruments at fair value through profit or loss | ||||||||||||||||
Income from corporate and government securities | 2,904,445 | 1,319,562 | 1,799,816 | 948,666 | ||||||||||||
Income from securities issued by the Argentine Central Bank | 151,435 | 67,255 | 85,673 | 17,396 | ||||||||||||
Derivatives | 902,029 | 77,847 | 283,225 | 16,123 | ||||||||||||
3,957,909 | 1,464,664 | 2,168,714 | 982,185 |
6.20 Service fee income | ||||||||||||||||
Commissions from deposit accounts | 2,640,492 | 3,146,179 | 1,435,218 | 1,497,491 | ||||||||||||
Commissions from credit and debit cards | 2,042,818 | 2,123,658 | 975,059 | 873,105 | ||||||||||||
Commissions from loans operations | 50,344 | 151,203 | 28,798 | 46,700 | ||||||||||||
Commissions from miscellaneous operations | 2,023,306 | 1,748,823 | 954,183 | 976,435 | ||||||||||||
Others | 48,664 | 75,074 | 26,164 | 41,610 | ||||||||||||
6,805,624 | 7,244,937 | 3,419,422 | 3,435,341 |
6.21 Service fee expenses | ||||||||||||||||
Commissions paid | 2,024,778 | 2,029,089 | 1,032,368 | 980,348 | ||||||||||||
Export and foreign currency operations | 50,189 | 23,921 | 5,467 | 13,146 | ||||||||||||
2,074,967 | 2,053,010 | 1,037,835 | 993,494 |
6.22 Other operating incomes | ||||||||||||||||
Loans recovered and allowances reversed | 796,618 | 416,178 | 240,902 | (117,235 | ) | |||||||||||
Insurance commissions | (2,999 | ) | 47,079 | 1,522 | 22,700 | |||||||||||
Rental from safety boxes | 152,481 | 206,160 | 74,544 | 98,468 | ||||||||||||
Commissions from trust services | 13,569 | 9,891 | 5,800 | 2,638 | ||||||||||||
Returns of risk funds | 428,607 | 1,017,382 | 120,914 | 925,710 | ||||||||||||
Sales of property. plant and equipment | 75,599 | 85,163 | 35,176 | 41,198 | ||||||||||||
Miscellaneous credit adjustments | 1,917 | 9,466 | 230 | 6,614 | ||||||||||||
Default interests | 97,678 | 225,803 | 70,418 | 81,238 | ||||||||||||
Others | 732,003 | 586,880 | 371,198 | 246,230 | ||||||||||||
2,295,473 | 2,604,002 | 920,704 | 1,307,561 |
6.23 Personnel expenses | ||||||||||||||||
Payroll and social securities | 9,706,117 | 10,308,316 | 4,831,989 | 5,247,363 | ||||||||||||
Personnel expenses | 1,206,875 | 926,425 | 349,519 | 349,802 | ||||||||||||
10,912,992 | 11,234,741 | 5,181,508 | 5,597,165 | |||||||||||||
6.24 Administration expenses | ||||||||||||||||
Directors´ and statutory auditors´fees | 203,492 | 203,721 | 132,262 | 143,144 | ||||||||||||
Other fees | 1,715,490 | 1,877,879 | 956,829 | 1,103,974 | ||||||||||||
Advertising and publicity | 391,363 | 368,110 | 222,198 | 186,941 | ||||||||||||
Taxes | 1,381,364 | 1,102,532 | 729,808 | 524,003 | ||||||||||||
Maintenance. security and services | 1,756,895 | 2,020,299 | 995,008 | 1,110,488 | ||||||||||||
Rent | 38,067 | 56,596 | 18,602 | 28,114 | ||||||||||||
Others | 756,520 | 677,851 | 374,980 | 332,060 | ||||||||||||
6,243,191 | 6,306,988 | 3,429,687 | 3,428,724 |
34 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
6.25 Depreciation and impairment of non-financial assets | ||||||||||||||||
Depreciation of property. plant and equipment (Schedule F) | 350,026 | 316,784 | 174,369 | 165,420 | ||||||||||||
Depreciation of miscellaneous assets | 132,390 | 160,241 | 65,977 | 80,650 | ||||||||||||
Amortization of intangible assets (Schedule G) | 784,558 | 484,574 | 406,493 | 251,648 | ||||||||||||
Depreciation of rent asstes by right of use (Schedule F) | 466,793 | 493,888 | 226,881 | 242,520 | ||||||||||||
1,733,767 | 1,455,487 | 873,720 | 740,238 |
6.26 Other operating expenses | ||||||||||||||||
Promotions related with credit cards | 302,181 | 314,489 | 159,189 | 127,765 | ||||||||||||
Turnover tax | 3,340,917 | 2,540,073 | 1,704,301 | 1,224,754 | ||||||||||||
Result by initial recognition of loans | 93,391 | 99,009 | 55,170 | 32,207 | ||||||||||||
Charges paid to National Social Security Administration (ANSES) | 41,606 | 121,728 | 18,629 | 61,026 | ||||||||||||
Balance adjustments loans and credit cards | 52,822 | 78,243 | 30,993 | 29,780 | ||||||||||||
Operationaal losses | 12,846 | 31,204 | 137 | 10,114 | ||||||||||||
Interests for leases liabilities | 96,950 | 123,690 | 32,666 | 64,184 | ||||||||||||
Coverage services | 8,120 | 9,834 | 3,841 | 3,720 | ||||||||||||
Contributions made to deposit insurance fund | 200,920 | 152,211 | 103,730 | 79,242 | ||||||||||||
Charge for credit loss of others credits and for other provisions | 105,366 | - | 57,110 | - | ||||||||||||
Shareholders Personal Property Tax | 3,763 | - | 3,763 | - | ||||||||||||
Others | 229,502 | 733,596 | 145,542 | 606,900 | ||||||||||||
4,488,384 | 4,204,077 | 2,315,071 | 2,239,692 |
7. | DIVIDENDS |
On April 27, 2021, the Shareholders' General Meeting approved the following distribution of retained earnings for the year ended on December 31, 2020:
* | Optional reserve for future dividend distribution: 341,000(*) |
* | Legal reserve: 352,343(*) |
* | Other reserve: 2,718,768(*) |
(*) Values expressed in currency of 12,31,2020
8. | INSURANCE |
The composition of 'Income from insurance activities' as of June 30, 2021 and 2020, is as follows:
Six-month period ended on |
Three-month period ended on | |||||||||||||||
Items | 06/30/2021 | 06/30/2020 | 06/30/2021 | 06/30/2020 | ||||||||||||
Accrued premiums | 1,492,742 | 1,456,495 | 763,094 | 713,932 | ||||||||||||
Accrued losses | (281,559 | ) | (142,477 | ) | (153,048 | ) | (38,396 | ) | ||||||||
Production expenses | (262,346 | ) | (217,930 | ) | (143,995 | ) | (91,228 | ) | ||||||||
Total | 948,837 | 1,096,088 | 466,051 | 584,308 |
35 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
9. | ASSET MANAGEMENT AND OTHER SERVICES |
As of June 30, 2021 and December 31, 2020, Banco Supervielle S.A. is the depository of the Asset managed by Supervielle Asset Management S.A. In accordance with CNV General Resolution No, 622/13, below are the portfolio, net worth and number of units of the Mutual Funds mentioned earlier.
Asset Management and Other | Portfolio | Net Worth | Number of Units | |||||||||||||||||||||
Services | 06/30/2021 | 12/31/2020 | 06/30/2021 | 12/31/2020 | 06/30/2021 | 12/31/2020 | ||||||||||||||||||
Premier Renta CP en Pesos | 24,742,949 | 40,999,159 | 24,700,058 | 40,957,000 | 5,470,391,726 | 12,597,963,038 | ||||||||||||||||||
Premier Renta Plus en Pesos | 246,435 | 189,861 | 243,414 | 183,823 | 15,278,713 | 11,899,481 | ||||||||||||||||||
Premier Renta Fija Ahorro | 6,873,818 | 1,944,220 | 6,808,753 | 1,931,117 | 1,983,310,848 | 59,317,777 | ||||||||||||||||||
Premier Renta Fija Crecimiento | 97,076 | 83,566 | 94,783 | 82,892 | 4,435,281 | 3,983,791 | ||||||||||||||||||
Premier Renta Variable | 177,272 | 212,738 | 173,726 | 209,614 | 5,231,394 | 6,689,975 | ||||||||||||||||||
Premier Abierto Pymes | 1,057,305 | 1,063,164 | 1,020,899 | 1,036,194 | 115,808,375 | 119,588,138 | ||||||||||||||||||
Premier Commodities | 411,793 | 292,689 | 300,321 | 288,175 | 24,357,723 | 25,702,973 | ||||||||||||||||||
Premier Capital | 880,349 | 217,249 | 877,362 | 216,026 | 136,977,458 | 36,842,932 | ||||||||||||||||||
Premier Inversión | 723,162 | 832,128 | 696,826 | 805,918 | 1,277,534,420 | 1,576,391,366 | ||||||||||||||||||
Premier Balanceado | 1,485,798 | 1,351,161 | 1,433,855 | 1,350,167 | 253,733,905 | 253,733,905 | ||||||||||||||||||
Premier Renta Mixta | 1,810,795 | 4,020,720 | 1,612,585 | 3,559,731 | 483,186,064 | 1,072,064,209 | ||||||||||||||||||
Premier Renta Mixta en Dólares | 117,265 | 127,375 | 115,829 | 127,375 | 1,974,139 | 2,083,508 | ||||||||||||||||||
Premier Performance Dólares | 551,290 | 594,262 | 548,227 | 589,432 | 7,294,241 | 7,724,190 | ||||||||||||||||||
Premier Global USD | 488,972 | 554,002 | 488,589 | 553,439 | 4,810,128 | 5,444,411 |
10. | ADDITIONAL INFORMATION REQUIRED BY THE BCRA |
10.1. | CONTRIBUTION TO THE DEPOSIT INSURANCE SYSTEM |
Law No, 24485 and Decree No, 540/95 established the creation of the Deposit Insurance System to cover the risk attached to bank deposits, in addition to the system of privileges and safeguards envisaged in the Financial Institutions Law.
Through Decree No, 1127/98 dated September 24, 1998, the National Executive Branch established the maximum coverage limit of the guarantee system, applicable to demand or time deposits, in pesos and/or foreign currency. Until February 28, 2019, such limit amounts to 450, pursuant to Communication 'A' 5943. As from March 1, 2019, such limit amounted to 1,000 pursuant to Communication 'A' 6654, As from May 1, 2020, the new limit amounts to $ 1,500, pursuant to Communication 'A' 6973.
This regime does not include deposits made by other financial institutions (including time deposit certificates acquired through a secondary transaction), deposits made by persons directly or indirectly related to the entity, deposits of securities, acceptances or guarantees, and those set up after July 1, 1995 at an interest rate higher than that periodically set forth by the Argentine Central Bank on the basis of the daily survey carried out by that agency (*). Excluded from the regime are also the deposits whose ownership was acquired through endorsement and placements offering incentives additional to the interest rate. The system has been implemented through the creation of the so-called 'Deposit Guarantee Fund' (F,G,D,), which is managed by the company Seguros de Depósitos S.A. (SEDESA) and whose shareholders are the Central Bank and the financial institutions in the proportion determined for each of them by that agency on the basis of contributions made to such fund.
(*) Enforced on January 20, 2019, pursuant to provision 'A' 6435, such exclusions are as follows: Sight deposits with agreed-upon rates exceeding reference rates and term deposits and investments exceeding 1,3 times such rate. Reference rates are released on a regular basis by the Argentine Central Bank in accordance with a mobile average of the last five banking business days of passive rates that may arise for term deposits of up to 100 (or its equivalent in other currencies) from the survey to be carried out by said institution.
10.2. | RESTRICTED ASSETS |
As of June 30, 2021 and December 31, 2020 Grupo Supervielle's following assets are restricted:
Detail | 06/30/2021 | 12/31/2020 | ||||||
Other receivables from financial transactions | ||||||||
Special guarantee accounts in the Argentine Central Bank | 4,871,904 | 4,650,483 | ||||||
4,871,904 | 4,650,483 | |||||||
Miscellaneous Receivables | ||||||||
Guarantee deposits for currency forward transactions | 2,257,589 | 753,510 | ||||||
Guarantee deposits for credit cards transactions | 515,231 | 528,797 | ||||||
Other guarantee deposits | 182,893 | 201,546 | ||||||
2,955,713 | 1,483,853 |
36 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
10.3. | COMPLIANCE OF PROVISIONS ISSUED BY THE NATIONAL SECURITIES COMMISSION |
Pursuant to General Ruling N° 629 issued by the National Securities Commission, supporting documentation of our accounting and administration operations for the financial years 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019,2020 and until June 30, 2021, the accounting books since September 2012 up to date and all corporate books are safeguarded in the registered headquarters.
Any other documentation or book, older than the date specified above for each case, is safeguarded by the firm AdeA S.A., whose warehouse is located on Ruta Provincial N°36, Km 31,500, Bosques, Partido de Florencio Varela, Buenos Aires Province.
10.4. | ISSUANCE OF NEGOTIABLE DEBT SECUTITIES |
Banco Supervielle S.A.
Global Program for the issuance of simple Negotiable Debt securities, not convertible into shares, for an amount of up to US $ 2,300,000,000 (or its equivalent in other currencies or units of value)
The following describes issuances in force as of June 30, 2021 and December 31, 2020:
Issuance | Nro, of | Book Value | |||||||||||||||||||||||
date | Currency | Class | Amount | Amortization | Term | Maturity date | Rate | 06/30/2021 | 12/31/2020 | ||||||||||||||||
12/22/17 | $ | C | 659,750 |
3 installments: 12-22-2020 33,33%, 06-22-2021 33,33%, and upon maturity 33,34%, | 48 | 12/22/2021 | Floating Badlar + 4,25% | 222,009 | 556,850 | ||||||||||||||||
02/14/18 | $ | E | 1,607,667 | 3 equal and consecutive annual installments, 1° 02-14-21 | 60 | 02/14/2023 | Floating Badlar of Private Banks + 4,05% | 1,058,820 | 1,979,577 | ||||||||||||||||
06/30/20 | u$s | G | 30,000,000 | Quarterly: 12-22-20, 06- 22-21, 06-30-21 | 12 | 06/30/2021 | 2% Nominal Annual | - | 2,760,718 | ||||||||||||||||
Total | 1,280,829 | 5,297,145 |
Global Program for the Issuance of Negotiable Debt securities for up to V / N $ 750,000 (expanded to V / N $ 2,000,000),
The following chart provides the main terms and conditions of issuances underway as of June 30, 2021 and December 31, 2020:
Nro, of | Maturity | Book Value | ||||||||||||||||||||||||||||||
Issuance date | Currency | Class | Amount | Amortization | Term | date | Rate | 06/30/2021 | 12/31/2020 | |||||||||||||||||||||||
11/18/2014 | US$ | IV | 13,441 | 100% at mat, | 84 Months | 11/18/2021 | 7 | % | 1,220,266 | 1,429,285 | ||||||||||||||||||||||
Total | 1,220,266 | 1,429,285 |
10.5. | FINANCIAL TRUSTS |
The detail of the financial trusts in which The Entity acts as Trustee or as Settler is summarized below:
As Trustee:
Banco Supervielle S.A.
Below is a detail of financial trusts:
Below is a detail of the Guarantee Management trust where the Bank acts as a trustee as of June 30, 2021:
Financial trust |
Indenture executed on | Due of principal obligation |
Original principal amount |
Principal balance | Beneficiaries | Settlers |
Fideicomiso de Administración Interconexión 500 KV ET Nueva San Juan - ET Rodeo Iglesia | 09/12/2018 | The Term of this Trust Fund Contract will be in force over 24 months as from 09/12/2018, or until the expiration of liabilities through Disbursements (Termination Date'), 30 days (thirty days) after the maturity of this Trust Agreement without the parties' having agreed upon an Extension Commission, the Trustor of the trust account shall receive USD 6.000 (six thousand US Dollars) at the exchange rate in force in Banco Supervielle as a fine, | - | - | Those initially mentioned in Exhibit V (DISERVEL S.R.L, INGENIAS S.R.L, GEOTECNIA (INV, CALVENTE), NEWEN INGENIERIA S.A., INGICIAP S.A., MERCADOS ENERGETICOS, DISERVEL S.R.L) and providers of works, goods and services included in the Project to be assigned by the Trustee with prior consent of the Trustor | Interconexion Electrica Rodeo S.A. |
37 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
As of 09/30/2020, Banco Supervielle S.A. as Trustee, is undergoing a negotiation process for the Contract 'Extension Commission', On 10/07/2020, the Trustor accepted the extension commission and the Bank accepted the request for the extension of the Trust contract sent by IERSA on 09-16-20.
As Settler
IUDÚ Compañia Financiera S.A. (Financial Trust CCF)
Assets in Trust: Personal Loans
Trustee: Equity TMF Trust Company (Argentina) S.A.
Initial | Títulos Emitidos | Book value at 06/30/2021 | ||||||||||||||||
Financial Trust | Set-ip on |
Amount in Trust |
Participation Certificates |
Debt Securities |
Participation Certificates |
Debt Securities | ||||||||||||
23 | 2/26/2021 | 920,000 | 184,000 | 736,000 | 184,000 | - | ||||||||||||
24 | 05/28/2021 | 699,000 | 139,800 | 559,200 | 139,800 | - |
Micro Lending S.A.U. (Financial Trust Micro Lending)
The following are financial trusts where Micro Lending S.A.U acts as settler:
Financial | Securitized | Issued Securities | |||||||||||||||||||||
Trust | Set-up on | Amount | Type | Amount | Type | Amount | Type | Amount | |||||||||||||||
III | 06/08/2011 | $ | 39,779 |
VDF TV A Mat: 03/12/13 | VN$ | 31,823 |
VDF B Vto: 11/12/13 | VN $ | 6,364 |
CP Vto: 10/12/16 | VN $ | 1,592 | |||||||||||
IV | 09/01/2011 | $ | 40,652 |
VDF TV A Mat: 06/20/13 | VN$ | 32,522 |
VDF B Vto: 10/20/13 | VN $ | 6,504 |
CP Vto: 06/29/17 | VN $ | 1,626 |
10.6. | RESTRICTIONS IMPOSED ON THE DISTRIBUTION OF DIVIDENDS |
Pursuant to regulations set by the Argentine Central Bank, 20% of the profits for the year, net of possible prior year adjustments, where applicable, are to be allocated to the Legal Reserve.
Pursuant to the amended text on distributions of dividends, financial entities shall comply with a series of requirements, as follows: i) They shall not be subject to the provisions of Sections 34 and 35 bis of the Financial Institutions Law; ii) No liquidity assistance loans shall have been granted to them; iii) they shall be in compliance with information regimes; iv) they shall not record shortfalls in the compiled minimum capital (without computing for such purposes the effects of the individual exemptions granted by the Superintendence of Financial and Foreign Exchange Institutions) or minimum cash, v) they shall have complied with additional capital margin when applicable.
The entities not facing any of these situations may distribute dividends in accordance with provisions set forth in said amended text, provided the entity´s liquidity or solvency is not jeopardized.
It is worth to be mentioned that pursuant to Communication 'A' 6464 issued by the Argentine Central Bank, until March 31, 2020, financial entities, which, for the purpose of determining the distributable result, have not applied the additional of 1 percentage point on capital margins shall rely on previous authorization issued by the SEFyC.
On August 30, 2019 and with the purpose of stabilizing the exchange market, the Argentine Central Bank issued Communication 'A' 6768, pursuant which financial entities shall rely on the previous authorization of Exchange and Financial Entities Superintendence before distributing its income. Over the course of such authorization process, the Comptroller Entity will assess, among other items, potential effects of the application of international accounting standards pursuant to Communication 'A' 6430 (Paragraph 5.5 of IFRS 9 - Detriment of financial assets value) as well as the effects of the re-expression of financial statements pursuant to Communication 'A' 6651.
38 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
On March 19, 2020 the Argentine Central Bank issued Communication 'A' 6939 by means of which the suspension of income distribution of financial entities was made effective until June 30, 2020, extending it until December 31, 2021 through communication 'A' 7035 of June 4, 2020.
Likewise, on December 17, 2020, through communication 'A' 7181, the BCRA decided to extend said suspension in the distribution of results until June 30, 2021. Later on June 24, 2021 through Communication 'A' 7312 again extended the extension until December 31, 2021.
10.7. | ACCOUNTS IDENTIFYING MINIMUM CASH INTEGRATION COMPLIANCE |
As of June 30, 2021 and December 31, 2020, the minimum cash reserve was made up as folllows:
Item | 06/30/2021 | 12/31/2020 (*) | ||||||
Current accounts in the Argentine Central Bank | 4,700,000 | 9,586,497 | ||||||
Sight accounts in the Argentine Central Bank | 10,669,231 | 10,288,224 | ||||||
Special guarantee accounts in the Argentine Central Bank | 4,622,667 | 3,521,513 | ||||||
Special accounts for previous credit payment | 384,803 | - | ||||||
Total | 20,376,701 | 23,396,234 |
(*) Historical values without inflation adjustment
It is worth mentioning that on those dates, the Group was in compliance with minimum cash integration requirements.
10.8. | CONTRACT AS A FINANCIAL AGENT BY THE PROVINCE OF SAN LUIS |
On January 17, 2017, Banco Supervielle S.A. received a communication from the Ministry of Public Treasury of the Province of San Luis giving notice of the termination of the Financial Agent Contract that Banco Supervielle has with the Province, effective as of February 28, 2017. The communication also states that, without prejudice to the exercise of the right to terminate the contract, the Province may continue to operate with the Bank until a new financial agent is selected.
Since February 2017, the Bank has continued rendering financial services to the Government of San Luis Province and its employees.
On June 7, 2018, the Province ratified said agreement over a 12-month period, thus regularizing the Bank´s role as exclusive payment agent, which has not been interrupted since 20 years ago. Such agreement has been renewed several times and according to the last renewal signed, it expires on May 31, 2021.
In January 2019, the government of San Luis Province disclosed the terms and conditions of the auction to be held by the Province for the new financial agent agreement. The Bank submitted its offer on March 15, 2019, Only two offers were submitted. On December 6, 2019, the Government of San Luis issued Decree N°8589 by means of which the auction was closed without assigning such financial agent agreement.
As of the date of these financial statements, the Group continues to provide financial services to the provincial government of the Province of San Luis and its employees.
11. | FINANCIAL RISK FACTORS |
There have been no significant changes in policies related to the administration of risks the Group may be exposed to regarding financial statements as of December 31, 2020 and in Note1.3.
12. | INTERNATIONAL FINANCING PROGRAMS |
In December 2017, Banco Interamericano de Desarrollo (BID) granted Banco Supervielle S.A. a loan (tranche A) for USD 40,000,000, USD 35,000,000 of which are settled over a three-year term and the remaining USD 5,000,000 over a five-year term.In June 2018, the Bank was granted a loan (tranche B) for USD 93,500,000, USD 40,000,000 are settled over a year term and the remaining USD 53,500,000 are settled over ywo years and a half. As of December 31, 2020, Tranche B will be canceled in its entirety, and the USD 35,000,000 of Tranche A.
39 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
In turn, in September 2019, the Entity was granted a senior non-guaranteed syndicated loan for USD 80,000,000 (eighty million US Dollars) at a three-year term and a Libor interest rate +3,40% by the FMO, the Dutch development bank, as organizer, and Proparco, a subsidiary of the French Development Agency. Such funds were immediately allocated among Small and Medium Size Companies Clients of our portfolio who run their businesses in regional exporting economies in different sectors. During the month of November 2020, the first capital installment for USD 20,000,000 was paid and in June 2021 the second installment, whereby the balance is USD 40,000,000.
It is worth to be mentioned that such agreement is subject to the compliance of certain financial covenants, certain 'do and do not do' conditions as well as certain reporting requirements.
As of June 30, 2021 and the date of issuance of these financial statements, the Group was in compliance with the financial covenants of both loans.
13. | IMPACT OF COVID-19 ON GROUP`S OPERATIONS |
In response to the ongoing Covid-19 pandemic, countries around the world, including Argentina, have adopted extraordinary measures to contain the spread of the virus. As a result of these imposed measures, the different countries have shown an immediate impact on their economies with a rapid decline in production and activity indicators. While the long-term impact on the global economy and financial markets is still uncertain, it is expected to be significant; however, accelerated vaccination programs could lead to a rapid global recovery in 2021.
In response, since the beginning of 2020, most governments have implemented fiscal aid packages to sustain the income of part of the population and reduce the risks of breakdown in payment chains, avoiding financial and economic crises, as well as company bankruptcies. Argentina was no exception and the government acted as soon as the pandemic was declared.
Argentine GDP is expected to improve in 2021 due to the statistical base effect from 2020, and to benefit from favorable external conditions following the increase in commodities prices. Nevertheless, after a period of relaxation of the aforementioned restrictive measures in 2020 and following a large rise in the number of infections since March 2021, on April 8, 2021 the government announced a national night-time curfew and additional restrictions. These measures were not sufficient to contain a severe second wave spread of the virus and the weekly growth rate has been steadily accelerating with approximately 3,6 million confirmed cases as of May 26, 2021. To prevent a more severe health crisis in Argentina, the national government imposed greater restrictions on mobility from May 22, 2021 with strict isolation at the national level declared until May 31, 2021.
In order to prevent a more severe health crisis in Argentina, the national government imposed further restrictions on mobility during April and May, in which the economic activity suffered and fell 0.3% and 2% per month (without seasonality), respectively, the epidemiological situation started to show certain deceleration in the growth rate of cases as vaccination accelerated. As of the date of this report, the population vaccinated with two doses is approximately 1/4 of the total population, the one vaccinated with a single dose is 1/3 and the unvaccinated one is around 40%. However, countries that achieved a high level of vaccination are suffering again as a result of the advance of the third wave. Going forward forward, it will be important to closely monitor the dynamics of the Delta variant, which could lead to the return of global mobility restrictions.
In order to mitigate the economic impact of COVID-19 pandemic and measures taken to contain spread of the virus, the Argentine government has adopted additional social aid, monetary and fiscal measures, including the following:
• | The expansion of the Productive Recovery Program ['REPRO' for its Spanish acronym] to assist the economic sectors affected by the new isolation, including the gastronomic sector to this program |
• | An increase in the amount of the complementary salary for workers in critical sectors and health, |
• | An additional amount of AR$18 billion for social assistance for families benefiting from the 'Alimentar' card, |
• | The expansion of the 'Progresar Program' with scholarships for the completion of primary and high school education, professional training and university degrees, |
• | The extension of the Universal Child Allowance and Family Allowances, |
• | Greater economic assistance to the Culture and Tourism sectors, |
• | Tax benefits for healthcare-related businesses, |
40 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
According to the information published by the government, the social aid, monetary and fiscal measures would represent an expense equivalent to 1,3% of GDP in 2021, which is expected to be financed through the higher revenues collected by the Extraordinary Contribution from Large Fortunes.
These measures could generate a greater tax effort for the Government, and given that Argentina does not have access to international financial markets, it could be financed with an increase in the monetary base, as was the case in 2020, with the consequent impact on macroeconomic variables.
The following are the main local indicators:
· | GDP estimated fall as of December 2020 amounted to a 9,9%, |
· | Accrued inflation between January 1, 2021 and June 30, 2021 amounted to a 25,3% (Consumer Price Index - CPI), |
· | Between January 1, 2021 and June 30, 2021, the peso recorded a 13,75% depreciation against the USD, according to the Exchange rate released by Argentine Central Bank (Communication 'A' 3500). |
· | The monetary authority implemented additional Exchange restrictions which, in turn, affected the foreign currency value in existing alternative markets for certain Exchange operations restricted in the official market. |
These measures, aimed at restricting the access to the exchange market with the purpose of containing the demand of dollars, entail the Argentine Central Bank´s prior authorization request for certain operations; thus, the following operations impact for the Bank:
· | Payment of dividends and earnings to non-residents |
· | Payment of financial loans granted to non-residents: those companies that register scheduled capital maturities between 10/15/2020 and 03/31/2021 shall submit a capital refinancing program of at least the 60%, with new external indebtedness and an average life of two years and shall be allowed to acquire only the equivalent to the 40% of agreed-upon capital commitments |
· | Payment of debt securities issuance with public registration |
· | Payment of indebtedness among residents in foreign currency |
Additionally, the exchange regime mandated the registration and settlement of funds resulting from the following operations and concepts in local currency:
· | Exports of goods and services |
· | Collection of prefinancings, advances and post-financing of exports of goods |
· | Exports of services |
· | Disposal of non-produced non-financial assets |
· | Disposal of external assets |
Such exchange restrictions, or those to be issued, might affect the Bank's capacity to access the Mercado Único y Libre de Cambios (MULC) for the acquisition of necessary foreign currency to address financial obligations, Assets and liabilities in foreign currency as of December 31, 2020 have been estimated in accordance with MULC´s quotations in place.
Likewise, in October 2020, the Government launched a set of measures aimed at contributing with the development of exportable goods and promoting the local market and construction industry.
With the purpose of mitigating the economic isolation, the Argentine Central Bank issued the following set of pre-emptive measures:
• Communication 'A' 6937 reduced position restriction over the maximum position in liquidity bills of the Argentine Central Bank (LELIQ) with the purpose of making liquidity available and encouraging credit line provisions for Small and Medium Size Companies at a preferential rate (Not exceeding the 24% annually), Communication 'A' 7054 modifies the standards on Minimum Cash' due to the authorization of financing lines at a 24% subsidized rate, which includes a special tranche for investments in national capital goods and another tranche with minimum requirements for companies that have not had access to banking loans, As from July 1, 2020, 'Medium and Small Size Clients' are included in the item of 'Decrease of minimum cash demand in average in pesos' provided such funds are allocated in the acquisition of machinery and equipment produced for national Small and Medium Size companies, among other modifications. As of the date of these financial statements, loans of the 24% rate, 0% rate and subsidized rate loans for working capital and investment have been granted at rates of 35% and 30% for amounts of 10.7 billion and 819 million, respectively. Effective as of October 16, 2020, through Communication 'A' 7140, the regulations on 'Line of financing for productive investment of MSMEs' were approved.
41 |
GRUPO SUPERVIELLE S.A.
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
Presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
• Communications 'A' 6942 and 'A' 6949, determined that the postponement of the maturity of loans granted by local financial institutions that would become effective on March 20 and April 12, and cancelled any punitive interest over unpaid balances in loans granted by financial entities, Communication 'A' 7044 and '7107' extended maturities for loans granted by local financial entities until December 31, 2020 and unpaid installments are deferred until such loan's life termination. By means of Communication 'A' 7181, it was extended until June 30, 2021. The automatic deferral period for loans ended on June 30, 2021, so customers which want to postpone installments due from April 1, 2021 shall agree to a voluntary refinancing with the bank. Through Communication 'A' 7285, the Argentine Central Bank established that financial entities shall add unpaid installments of credit assistance granted to employer customers reached by the REPRO II Program, to the month following the end of the loan term, considering only the accrued compensatory interest at the contractual rate.
• Communication 'A' 6939 suspended, until June 30, 2020, the distribution of dividends for financial entities, Such measure was extended through Communication 'A' 7035 until December 31, 2020. Subsequently, through communication 'A' 7181 it was extended until June 31, 2021 and then through communication 'A' 7312 it was extended again until December 31, 2021.
• Communication 'A' 6945 established that, until June 30, 2020, any operation carried out through ATMs shall not be subject to any charge or commission, Communication 'A' 7107 extended such term until December 31, 2020, Communication 'A' 7181 extended the term until June 30, 2021.
• Through Communication 'A' 6964 the Central Bank ruled that all unpaid balances of credit card financing due between April 13 and April 30, 2020, should be automatically rescheduled in nine equal consecutive monthly installments beginning after a 3-month grace period, Interest rates on such unpaid balances should not exceed an annual nominal rate of 43%. At the same time, through Communication 'A' 7095, the Central Bank determined that the unpaid balances of credit card financing due between September 1 and September 30, 2020 should be automatically rescheduled in nine equal consecutive monthly installments beginning after a 3-month grace period, Interest rates on such unpaid balances may not exceed an annual nominal rate of 40%.
• Communication 'A' 6980 established that non-adjustable term deposits under ARS 1 million made up by individuals as from April 20, 2020, will entail a minimum rate of 70% of the LELIQ average auction, Communication 'A' 7018 extended the scope of such measures over all term deposits regardless of their minimum amount. Later, Communication 'A'7027 increased the minimum rate equivalent to 79% LELIQ average auction. And, as from August 1, 2020, an additional increase from such 79% to an 87% was set for term deposits of individuals exceeding the ARS 1 million.
• Communication 'A' 7285 established that financial entities shall add unpaid installments of credit assistance, not subject to the Credit Cards Law, granted to employer customers reached by the Productive Recovery Program II, corresponding to maturities that operate from the effective date of this communication, to the month following the end of the loan term, considering only the accrued compensatory interest at the expected contractual rate.
• On August 6, 2021, through Decree 494/2021, in order to contain and mitigate the spread of the COVID-19 pandemic, as well as to preserve public health, the President of the Nation established the parameters to define epidemiological and health alarm situations, which are in force from August 7, 2021 to October 1, 2021 included.
The volatile and uncertain context remains as of the issuance of these financial statements.
The Group's Board monitors the evolution of variables that may affect its business; thus, defining the course of action and identifying any potential impact on its equity and financial situation, The Bank's financial statements must be read in virtue of said circumstances.
42 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE A - DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS, OTHER DEBT SECURITIES, EQUITY INSTRUMENTS
As of June 30, 2021 and December 31, 2020:
HOLDING | POSITION | |||||||||||||||||||||||
Item |
Fair value |
Level of fair value |
Book value 06/30/2021 |
Book value 12/31/2020 |
Without options | Options |
Final Position | |||||||||||||||||
DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | ||||||||||||||||||||||||
Argentine | ||||||||||||||||||||||||
Government Securities | ||||||||||||||||||||||||
Argentine Bonus U$S STEP, 11/30/2021 | 1 | 3,958,250 | 989,483 | 3,958,250 | - | 3,958,250 | ||||||||||||||||||
Treasury Bill $ aj CER disc, Mat,08/05/21 | 1 | 2,804,255 | 203,044 | 2,804,255 | - | 2,804,255 | ||||||||||||||||||
Treasury Bill $ aj CER disc, Mat,02/28/22 | 1 | 2,098,523 | - | 2,098,523 | - | 2,098,523 | ||||||||||||||||||
Argentine National Bonus 2,5% $ 07/22/2021 | 1 | 1,219,068 | 2,710 | 1,219,068 | - | 1,219,068 | ||||||||||||||||||
Bocon - Consolidation Bonus $ 8 serie | 1 | 639,639 | 1,394 | 639,639 | - | 639,639 | ||||||||||||||||||
Treasury Bonus $ Mat,10/17/23 | 1 | 635,861 | 452,456 | 635,861 | - | 635,861 | ||||||||||||||||||
Treasury Bonus $ disc Mat,05/23/22 | 1 | 448,734 | - | 448,734 | - | 448,734 | ||||||||||||||||||
Argentine National Bonus 15,5% $ 10/17/2026 | 1 | 391,172 | 27,256 | 391,172 | - | 391,172 | ||||||||||||||||||
T,D, Cdad de Bs As $ TV CL,22 Mat,03/29/24 | 1 | 376,609 | 238,621 | 376,609 | - | 376,609 | ||||||||||||||||||
Argentine Bonus $ dic, Mat 07/30/21 | 1 | 232,799 | - | 232,799 | - | 232,799 | ||||||||||||||||||
Argentine Bonus U$S STEP | 1 | 385,271 | 537,947 | 385,271 | - | 385,271 | ||||||||||||||||||
Argentine National Bonus 2,5% $ 07/22/2021 (TC21) | 1 | 6,703 | 6,776 | 6,703 | - | 6,703 | ||||||||||||||||||
Bocon - Consolidation Bonus $ 8 serie (PR15) | 1 | 4,330 | 5,573 | 4,330 | - | 4,330 | ||||||||||||||||||
Others | 1 | 1,572,602 | 8,644,294 | 81,688 | - | 81,688 | ||||||||||||||||||
Central Bank Bills | ||||||||||||||||||||||||
Liquidity Central Bank Bills Mat, 07/06/2021 | 1 | 383,555 | - | 383,555 | - | 383,555 | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 07/08/2021 | 1 | 456,743 | - | 456,743 | - | 456,743 | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 07/15/2021 | 1 | 93,655 | - | 93,655 | - | 93,655 | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 01/07/2021 | 1 | - | 373,691 | - | - | - | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 01/26/2021 | 1 | - | 366,465 | - | - | - | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 12/31/2021 | 1 | - | 18,799 | - | - | - | ||||||||||||||||||
Corporate Securities | ||||||||||||||||||||||||
On Santander Rio $ CL,25 Mat,06/10/22 | 2 | 262,038 | - | 262,038 | - | 262,038 | ||||||||||||||||||
On Telecom Arg $ CL,6 Mat,12/10/21 | 2 | 70,755 | 90,102 | 70,755 | - | 70,755 | ||||||||||||||||||
On Ypf Energy S,A Cl,7 $ Mat,05/20/22 | 2 | 52,177 | - | 52,177 | - | 52,177 | ||||||||||||||||||
On Ypf S,A Cl,5 $ Mat,01/24/21 CG | 1 | - | 209,638 | - | - | - | ||||||||||||||||||
On Telecom Arg $ CL,7 Mat,12/10/23 | 1 | - | 203,650 | - | - | - | ||||||||||||||||||
Others | 1 | 75,019 | 75,019 | - | 75,019 |
43 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
HOLDING | POSITION | |||||||||||||||||||||||
Item |
Fair value |
Level of fair value |
Book value 06/30/2021 |
Book value 12/31/2020 |
Without options | Options |
Final Position | |||||||||||||||||
Total Debt Securities at Fair value through profit or loss | 16,167,758 | 12,371,899 | 14,676,844 | - | 14,676,844 | |||||||||||||||||||
OTHER DEBT SECURITIES | ||||||||||||||||||||||||
Measured at fair value through profit or loss | ||||||||||||||||||||||||
Argentine | ||||||||||||||||||||||||
Government Securities | ||||||||||||||||||||||||
Treasury Bonus Step al U$S 04/29/22 | 1 | 3,740,136 | 6,016,321 | 3,740,136 | - | 3,740,136 | ||||||||||||||||||
Treasury Bill $ Aj CER1,50% Mat,03/25/24 | 1 | 613,178 | 745,602 | 613,178 | - | 613,178 | ||||||||||||||||||
Treasury Bill $ Aj CER1,40% Mat,03/25/23 | 1 | 467,101 | 392,481 | 467,101 | - | 467,101 | ||||||||||||||||||
Bono Pcia Bs As $ Canc Deuda Mat,09/07/22 | 2 | 8,575 | - | 8,575 | - | 8,575 | ||||||||||||||||||
Treasury Bill $ Aj CER1,20% Mat 03/18/22 | - | 313,311 | - | - | - | |||||||||||||||||||
Treasury Bill $ Aj CER1,30% Mat,09/20/22 | - | 158,772 | - | - | - | |||||||||||||||||||
Treasury Bonus Nac, $ Aj, CER 05/08/21 | - | 130,020 | - | - | - | |||||||||||||||||||
Treasury Bonus BONCER 2% $ 2026 | - | 125,819 | - | - | - | |||||||||||||||||||
Treasury Bonus Nac, $ Badlar 08/05/21 | - | 79,735 | - | - | - | |||||||||||||||||||
Argentine National Bonus T2V1 | - | 162,075 | - | - | - | |||||||||||||||||||
Argentine National Bonus TV22 | 1 | 419,722 | 779,893 | 419,722 | - | 419,722 | ||||||||||||||||||
Treasury Bill $ 172D AJCER Desc Mat 05/21/21 (X21Y1) | - | 40,599 | - | - | - | |||||||||||||||||||
Treasury Bill $ Aj CER X31M2 | 1 | 147,298 | - | 147,298 | - | 147,298 | ||||||||||||||||||
Treasury Bill $ Aj CER X28F2 | 1 | 236,170 | - | 236,170 | - | 236,170 | ||||||||||||||||||
Treasury Bonus $ AJ,CER 1,20%-Mat,03/18/2022 C,G, (TX22) | 1 | 163,388 | - | 163,388 | - | 163,388 | ||||||||||||||||||
Centrak Bank Bills | ||||||||||||||||||||||||
Liquidity Central Bank Bills Mat, 07/15/21 | 2 | 9,846,240 | - | 9,846,240 | - | 9,846,240 | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 07/20/21 | 2 | 9,796,030 | - | 9,796,030 | - | 9,796,030 | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 07/22/21 | 2 | 9,776,090 | - | 9,776,090 | - | 9,776,090 | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 07/13/21 | 2 | 8,398,037 | - | 8,398,037 | - | 8,398,037 | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 07/27/21 | 2 | 6,322,283 | - | 6,322,283 | - | 6,322,283 | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 07/08/21 | 2 | 4,994,800 | - | 4,994,800 | - | 4,994,800 | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 07/06/21 | 2 | 4,958,700 | - | 4,958,700 | - | 4,958,700 | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 01/19/21 | 2 | 3,260,531 | - | 3,260,531 | - | 3,260,531 | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 01/19/21 | 2 | - | 12,289,344 | - | - | - | ||||||||||||||||||
Liquidity Central Bank Bills Mat, 01/05/21 | 2 | - | 4,987,012 | - | - | - | ||||||||||||||||||
Others | 2 | - | 18,042,036 | - | - | - | ||||||||||||||||||
Corporate Securities | ||||||||||||||||||||||||
Others | 1 | 32 | 40 | 32 | - | 32 |
44 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
HOLDING | POSITION | |||||||||||||||||||||||
Item |
Fair value |
Level of fair value |
Book value 06/30/2021 |
Book value 12/31/2020 |
Without options | Options |
Final Position | |||||||||||||||||
Measured at amortized cost | ||||||||||||||||||||||||
Argentine | ||||||||||||||||||||||||
Government Securities | ||||||||||||||||||||||||
Treasury Bonus $ Fixed rate 22% Mat,05/21/22 | 6,954,787 | 6,998,313 | 6,954,787 | - | 6,954,787 | |||||||||||||||||||
Argentine Sovereign Bond, $ Badlar+200 04/03/2022 | 260,954 | 317,599 | 260,954 | - | 260,954 | |||||||||||||||||||
National Treasury Bonus T2V1 | - | 130,582 | - | - | - | |||||||||||||||||||
Corporate securities | ||||||||||||||||||||||||
Ohers | 16 | 4,477 | 16 | - | 16 | |||||||||||||||||||
Total other debt securities | 70,364,068 | 51,714,031 | 70,364,068 | - | 70,364,068 | |||||||||||||||||||
EQUITY INSTRUMENTS | ||||||||||||||||||||||||
Measured at fair value through profit and loss | ||||||||||||||||||||||||
Argentine | ||||||||||||||||||||||||
Loma Negra S.A, | 1 | 14,117 | 3,984 | 14,117 | - | 14,117 | ||||||||||||||||||
Pampa Energía S.A, | 1 | 13,555 | 10,384 | 13,555 | - | 13,555 | ||||||||||||||||||
Grupo Financiero Galicia S.A | 1 | 6,398 | 93,845 | 6,398 | - | 6,398 | ||||||||||||||||||
YPF S.A | 1 | 5,157 | 223 | 5,157 | - | 5,157 | ||||||||||||||||||
Banco Macro S.A | 1 | 3,568 | 172 | 3,568 | - | 3,568 | ||||||||||||||||||
Ternium Arg S.A,Ords,'A'1 Voto Esc | 1 | 2,365 | 66 | 2,365 | - | 2,365 | ||||||||||||||||||
Aluar S.A | 1 | 1,531 | 65 | 1,531 | - | 1,531 | ||||||||||||||||||
Telecom Argentina S.A | 1 | 1,518 | 43 | 1,518 | - | 1,518 | ||||||||||||||||||
Bolsas y Mercados Arg, $ Ord, (BYMA) | 1 | 1,495 | 80 | 1,495 | - | 1,495 | ||||||||||||||||||
Banco Francés SA | 1 | 1,436 | 65 | 1,436 | - | 1,436 | ||||||||||||||||||
Others | 1 | 5,753 | 270 | 5,753 | - | 5,753 | ||||||||||||||||||
Measured at fair value with changes in OCI | ||||||||||||||||||||||||
Argentine | ||||||||||||||||||||||||
Ohers | 77,184 | 36,590 | 77,184 | - | 77,184 | |||||||||||||||||||
Total equity instruments | 134,077 | 145,787 | 134,077 | - | 134,077 | |||||||||||||||||||
Total | 86,665,903 | 64,231,717 | 85,174,989 | - | 85,174,989 |
45 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE B - CLASSIFICATION OF LOANS AND OTHER FINANCING CREDIT ACCORDING TO STATUS AND COLLATERAL RECEIVED
As of June 30, 2021 and December 31, 2020 balances of loans and other financing are the following:
06/30/2021 | 12/31/2020 | |||||||
COMMERCIAL PORTFOLIO | ||||||||
Normal situation | 44,457,007 | 46,148,555 | ||||||
-With 'A' Preferred Collateral and Counter-guarantees | 2,057,599 | 2,691,910 | ||||||
-With 'B' Preferred Collateral and Counter-guarantees | 7,387,804 | 8,943,080 | ||||||
- Without Preferred Collateral nor Counter-guarantees | 35,011,604 | 34,513,565 | ||||||
Subject to special monitoring | ||||||||
- Under Observation | 3,742,431 | 3,675,207 | ||||||
-With 'A' Preferred Collateral and Counter-guarantees | - | 26,506 | ||||||
-With 'B' Preferred Collateral and Counter-guarantees | 1,856,961 | 1,849,105 | ||||||
- Without Preferred Collateral nor Counter-guarantees | 1,885,470 | 1,799,596 | ||||||
With problems | 24,229 | 526,223 | ||||||
-With 'A' Preferred Collateral and Counter-guarantees | 542 | 148,358 | ||||||
-With 'B' Preferred Collateral and Counter-guarantees | - | 186,544 | ||||||
- Without Preferred Collateral nor Counter-guarantees | 23,687 | 191,321 | ||||||
High risk of insolvency | 437,753 | 2,788,964 | ||||||
-With 'A' Preferred Collateral and Counter-guarantees | 133,584 | - | ||||||
-With 'B' Preferred Collateral and Counter-guarantees | 178,801 | 2,174,477 | ||||||
- Without Preferred Collateral nor Counter-guarantees | 125,368 | 614,487 | ||||||
Uncollectible | 1,942,500 | 11,280 | ||||||
-With 'A' Preferred Collateral and Counter-guarantees | - | - | ||||||
-With 'B' Preferred Collateral and Counter-guarantees | 1,279,529 | - | ||||||
- Without Preferred Collateral nor Counter-guarantees | 662,971 | 11,280 | ||||||
TOTAL COMMERCIAL PORTFOLIO | 50,603,920 | 53,150,229 |
46 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE B - CLASSIFICATION OF LOANS AND OTHER FINANCING CREDIT ACCORDING TO STATUS AND COLLATERAL RECEIVED
06/30/2021 | 12/31/2020 | |||||||
CONSUMER AND HOUSING PORTFOLIO | ||||||||
Normal situation | 76,272,891 | 89,099,895 | ||||||
-With 'A' Preferred Collateral and Counter-guarantees | 2,140,565 | 3,047,383 | ||||||
-With 'B' Preferred Collateral and Counter-guarantees | 7,148,244 | 8,507,028 | ||||||
- Without Preferred Collateral nor Counter-guarantees | 66,984,082 | 77,545,484 | ||||||
Low Risk | 4,059,166 | 194,720 | ||||||
-With 'A' Preferred Collateral and Counter-guarantees | 115,423 | 25,643 | ||||||
-With 'B' Preferred Collateral and Counter-guarantees | 350,973 | 3,326 | ||||||
- Without Preferred Collateral nor Counter-guarantees | 3,592,770 | 165,751 | ||||||
Medium Risk | 1,371,718 | 379,649 | ||||||
-With 'A' Preferred Collateral and Counter-guarantees | 33,349 | 4,672 | ||||||
-With 'B' Preferred Collateral and Counter-guarantees | 41,372 | 4,064 | ||||||
- Without Preferred Collateral nor Counter-guarantees | 1,296,997 | 370,913 | ||||||
High Risk | 1,445,561 | 548,203 | ||||||
-With 'A' Preferred Collateral and Counter-guarantees | 17,028 | 15,426 | ||||||
-With 'B' Preferred Collateral and Counter-guarantees | 15,154 | 73,946 | ||||||
- Without Preferred Collateral nor Counter-guarantees | 1,413,379 | 458,831 | ||||||
Uncollectible | 627,127 | 1,016,296 | ||||||
-With 'A' Preferred Collateral and Counter-guarantees | 54,540 | 43,945 | ||||||
-With 'B' Preferred Collateral and Counter-guarantees | 108,068 | 214,723 | ||||||
- Without Preferred Collateral nor Counter-guarantees | 464,519 | 757,628 | ||||||
Uncollectible classified as such under regulatory requirements | - | - | ||||||
-With 'A' Preferred Collateral and Counter-guarantees | - | - | ||||||
-With 'B' Preferred Collateral and Counter-guarantees | - | - | ||||||
- Without Preferred Collateral nor Counter-guarantees | - | - | ||||||
TOTAL CONSUMER AND HOUSING PORTFOLIO | 83,776,463 | 91,238,763 | ||||||
TOTAL GENERAL(1) | 134,380,383 | 144,388,992 |
The preceding note includes the classification of loans using the debtor classification system of the Central Bank of the Argentine Republic (DCS), The forecasts and guarantees granted are not included,
(1) Conciliation with Statement of Financial Position:
Loans and other financing | 124,373,233 | 132,812,473 | ||||||
Other debt securities | 70,364,068 | 51,714,031 | ||||||
Computable items out of balance | (60,356,918 | ) | (40,137,512 | ) | ||||
Plus allowances | 9,363,653 | 9,801,898 | ||||||
Plus IFRS adjusments non computable for DCS | 645,544 | 828,259 | ||||||
Less non deductible ítems for DCS | (2,079 | ) | (4,231 | ) | ||||
Less Debt securities measured at amortized cost | (70,364,036 | ) | (50,763,438 | ) | ||||
Total | 134,380,383 | 144,388,992 |
47 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE C - CONCENTRATION OF LOANS AND OTHER FINANCING
As of June 30, 2021 and December 31, 2020 the concentration of leans and other financing are the following:
Loans and other financing | ||||||||||||||||
06/30/2021 | 12/31/2020 | |||||||||||||||
Number of Clients | Balance |
% over total portfolio | Balance |
% over total portfolio | ||||||||||||
10 largest customers | 13,351,307 | 9.9 | % | 14,189,737 | 9.8 | % | ||||||||||
50 following largest customers | 19,610,121 | 14.5 | % | 20,100,674 | 13.9 | % | ||||||||||
100 following largest customers | 12,843,188 | 9.6 | % | 12,704,524 | 8.8 | % | ||||||||||
Rest of customers | 88,575,767 | 66.0 | % | 97,394,057 | 67.5 | % | ||||||||||
TOTAL | 134,380,383 | 100.0 | % | 144,388,992 | 100.0 | % |
48 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE D - BREAKDOWN OF TOTAL LOANS AND OTHER FINANCING
As of June 30, 2021 the breakdown of leans and other financing are the following:
Remaining terms for maturity | ||||||||||||||||||||||||||||||||
Item |
Past due portfolio | 1 month | 3 months | 6 months | 12 months | 24 months |
Up to 24 months | Total | ||||||||||||||||||||||||
Non-financial Public Sector | - | 54,893 | 2,879 | 4,318 | 8,637 | 5,019 | - | 75,746 | ||||||||||||||||||||||||
Financial Sector | - | 1,382 | 650 | 18 | - | - | - | 2,050 | ||||||||||||||||||||||||
Non-financial private sector and residents abroad | 15,803,920 | 48,220,396 | 22,545,509 | 19,188,824 | 35,262,684 | 27,904,643 | 101,413,181 | 270,339,157 | ||||||||||||||||||||||||
TOTAL | 15,803,920 | 48,276,671 | 22,549,038 | 19,193,160 | 35,271,321 | 27,909,662 | 101,413,181 | 270,416,953 |
49 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT
Changes in property, plant and equipment as of June 30, 2021 and December 31, 2020, are as follows:
Depreciation | Net carrying | |||||||||||||||||||||||||||||||||||||||||||
Item | At the beginning of the year | Useful life | revaluation | Additions | Disposals | Accumulated | Disposals | Of the period | At the end of the period | 06/30/2021 | 12/31/2020 | |||||||||||||||||||||||||||||||||
Cost model | ||||||||||||||||||||||||||||||||||||||||||||
Furniture and facilities | 1,904,265 | 10 | - | 53,986 | (19,505 | ) | (1,546,082 | ) | 33,931 | (57,739 | ) | (1,569,890 | ) | 368,856 | 358,183 | |||||||||||||||||||||||||||||
Machinery and equipment | 6,374,775 | - | - | 72,609 | (178,918 | ) | (5,348,901 | ) | 159,288 | (202,424 | ) | (5,392,037 | ) | 876,429 | 1,025,874 | |||||||||||||||||||||||||||||
Vehicles | 326,923 | 5 | - | 47,971 | (39,176 | ) | (150,530 | ) | 43,437 | (32,046 | ) | (139,139 | ) | 196,579 | 176,393 | |||||||||||||||||||||||||||||
Right of Use of Leased Properties | 2,690,623 | 50 | - | 682,822 | (850,836 | ) | (1,186,541 | ) | 576,514 | (466,793 | ) | (1,076,820 | ) | 1,445,789 | 1,504,082 | |||||||||||||||||||||||||||||
Construction in progress | 800,064 | - | - | 147,133 | (60,213 | ) | - | - | - | - | 886,984 | 800,064 | ||||||||||||||||||||||||||||||||
Revaluation model | ||||||||||||||||||||||||||||||||||||||||||||
Land and Buildings | 5,272,904 | 50 | (1,495 | ) | 1,581 | (10,392 | ) | (234,911 | ) | 9,296 | (57,817 | ) | (283,432 | ) | 4,979,166 | 5,037,993 | ||||||||||||||||||||||||||||
Total | 17,369,554 | (1,495 | ) | 1,006,102 | (1,159,040 | ) | (8,466,965 | ) | 822,466 | (816,819 | ) | (8,461,318 | ) | 8,753,803 | 8,902,589 |
The movements in investment properties as of June 30, 2021 and December 31, 2020 are as follows:
Depreciation | Net carrying | |||||||||||||||||||||||||||
Item |
At the beginning of the year | Useful life | Accumulated | Of the period |
At the end of the period |
Net carrying 06/30/2021 |
Net carrying 12/31/2020 | |||||||||||||||||||||
Cost model | ||||||||||||||||||||||||||||
Rent building | 56,507 | 50 | (11,007 | ) | (6,393 | ) | (17,400 | ) | 39,107 | 45,500 | ||||||||||||||||||
Measurement at fair value | ||||||||||||||||||||||||||||
Rent building | 7,471,386 | 50 | - | - | - | 7,471,386 | 7,471,386 | |||||||||||||||||||||
Total | 7,527,893 | (11,007 | ) | (6,393 | ) | (17,400 | ) | 7,510,493 | 7,516,886 |
50 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE G - INTANGIBLE ASSETS
Intangible assets of the Group as of June 30, 2021 and December 31, 2020 are as follows:
Depreciation | Net carrying | ||||||||||||||||||||||||||||||||||||
Item |
At the beginning of the year |
Useful life | Additions | Disposals |
At the beginning of the year | Disposals |
Of the period |
At the end of the period | 06/30/2021 | 12/31/2020 | |||||||||||||||||||||||||||
Measurement at cost | |||||||||||||||||||||||||||||||||||||
Goodwill | 4,561,728 | - | - | - | - | - | - | 4,561,728 | 4,561,728 | ||||||||||||||||||||||||||||
Brands | 250,647 | - | - | - | - | - | - | 250,647 | 250,647 | ||||||||||||||||||||||||||||
Other intangible assets | 7,309,274 | 790,551 | (7,813 | ) | (3,621,477 | ) | 20 | (784,558 | ) | (4,406,015 | ) | 3,685,997 | 3,687,797 | ||||||||||||||||||||||||
TOTAL | 12,121,649 | 790,551 | (7,813 | ) | (3,621,477 | ) | 20 | (784,558 | ) | (4,406,015 | ) | 8,498,372 | 8,500,172 |
Depreciation for the year is included in the line 'Depreciations and impairment of non-financial assets' in the statement of comprehensive income.
51 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE H - CONCENTRATION OF DEPOSITS
As of June 30, 2021 and December 31, 2020 the concentration of deposits are the following:
Deposits | ||||||||||||||||
06/30/2021 | 12/31/2020 | |||||||||||||||
Number of customers | Placement Balance | % over total portfolio | Placement Balance | % over total portfolio | ||||||||||||
10 largest customers | 88,350,767 | 36.3 | % | 61,481,810 | 27.5 | % | ||||||||||
50 following largest customers | 33,648,317 | 13.8 | % | 37,386,737 | 16.7 | % | ||||||||||
100 following largest customers | 10,403,176 | 4.3 | % | 11,856,603 | 5.3 | % | ||||||||||
Rest of customers | 110,801,590 | 45.6 | % | 113,156,285 | 50.5 | % | ||||||||||
TOTAL | 243,203,850 | 100.0 | % | 223,881,435 | 100.0 | % |
52 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE I - BREAKDOWN OF FINANCIAL LIABILITIES FROM REMAINING TERMS
As of June 30, 2021:
Remaining terms for maturity | ||||||||||||||||||||||||||||
Item | 1 month | 3 months | 6 months | 12 months | 24 months | Up to 24 months | Total | |||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||
Non-financial public sector | 12,847,259 | 1,979,808 | 197,688 | 92,139 | - | - | 15,116,894 | |||||||||||||||||||||
Financial sector | 123,539 | - | - | - | - | - | 123,539 | |||||||||||||||||||||
Non-financial private sector and residents abroad | 201,072,599 | 27,698,999 | 1,194,041 | 202,441 | 618 | 840 | 230,169,538 | |||||||||||||||||||||
Liabilities at fair value through profit and loss | 1,191,555 | - | - | - | - | - | 1,191,555 | |||||||||||||||||||||
Other financial liabilities | 8,347,013 | 142,740 | 225,530 | 399,581 | 427,835 | 530,625 | 10,073,324 | |||||||||||||||||||||
Financing received from the Argentine Central Bank and other financial institutions | 106,959 | 643,468 | 4,069,387 | 966,995 | 98,505 | 16,597 | 5,901,911 | |||||||||||||||||||||
Negotiable Debt securities | - | 214,253 | 433,476 | 831,859 | 987,203 | - | 2,466,791 | |||||||||||||||||||||
Subordinated debt securities | - | - | 1,332,697 | - | - | - | 1,332,697 | |||||||||||||||||||||
TOTAL | 223,688,924 | 30,679,268 | 7,452,819 | 2,493,015 | 1,514,161 | 548,062 | 266,376,249 |
53 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE L - ASSETS AND LIABILITIES IN FOREIGN CURRENCY
As of June 30, 2021 and December 31, 2020:
As of June 30, | As of June 30, 2021 (per currency) | As of December | ||||||||||||||||||||||
Items | 2021 | Dollar | Euro | Real | Others | 31, 2020 | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash and Due from Banks | 16,461,927 | 15,311,104 | 942,996 | 18,111 | 189,716 | 25,563,976 | ||||||||||||||||||
Debt securities at fair value through profit or loss | 4,270,666 | 4,270,666 | - | - | - | 2,313,804 | ||||||||||||||||||
Derivatives | 1,794 | 1,794 | - | - | - | 663 | ||||||||||||||||||
Other financial assets | 1,741,737 | 1,741,616 | 121 | - | - | 1,421,171 | ||||||||||||||||||
Loans and other financing | 19,190,846 | 19,189,357 | 1,069 | - | 420 | 19,077,085 | ||||||||||||||||||
Other Debt Securities | 3,740,200 | 3,740,200 | - | - | - | 6,016,403 | ||||||||||||||||||
Financial assets pledged as collateral | 1,807,120 | 1,807,120 | - | - | - | 657,380 | ||||||||||||||||||
Other non-financial assets | 100,981 | 100,981 | - | - | - | 301,705 | ||||||||||||||||||
TOTAL ASSETS | 47,315,271 | 46,162,838 | 944,186 | 18,111 | 190,136 | 55,352,187 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Deposits | 30,331,375 | 29,803,694 | 527,681 | - | - | 31,580,995 | ||||||||||||||||||
Non-financial public sector | 1,029,944 | 1,029,779 | 165 | - | - | 1,132,283 | ||||||||||||||||||
Financial sector | 628 | 628 | - | - | - | 2,579 | ||||||||||||||||||
Non-financial private sector and foreign residents | 29,300,803 | 28,773,287 | 527,516 | - | - | 30,446,133 | ||||||||||||||||||
Liabilities at fair value with changes in results | - | - | - | - | - | |||||||||||||||||||
Other financial liabilities | 3,041,576 | 2,728,197 | 303,835 | 15 | 9,529 | 2,980,379 | ||||||||||||||||||
Financing received from the Argentine Central Bank and other financial institutions | 3,963,633 | 3,963,633 | - | - | - | 6,517,032 | ||||||||||||||||||
Negotiable Debt securities | - | - | - | - | - | 2,760,718 | ||||||||||||||||||
Subordinated debt securities | 1,220,266 | 1,220,266 | - | - | - | 1,429,284 | ||||||||||||||||||
Other non-financial liabilities | 329,713 | 329,712 | - | - | 1 | 476,250 | ||||||||||||||||||
TOTAL LIABILITIES | 38,886,563 | 38,045,502 | 831,516 | 15 | 9,530 | 45,744,658 | ||||||||||||||||||
NET POSITION | 8,428,708 | 8,117,336 | 112,670 | 18,096 | 180,606 | 9,607,529 |
54 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE R - LOAN LOSS RISK PROVISIONS
The balance of loan loss risk provisions as of June 30, 2021 is presented below:
ECL of remaining life of the financial asset | ||||||||||||||||||||||||
Items |
Balances at the beginning of fiscal year |
ECL of the following 12 months |
FI significant credit risk increase |
FI with credit impairment |
FI with credit impairment either purchased or produced |
Monetary inocme produced by provisions | ||||||||||||||||||
Other financial assets | 50,645 | 2,605 | - | - | (10,760 | ) | 42,490 | |||||||||||||||||
Loans and other financing | 9,801,898 | 89,293 | 451,047 | 1,392,704 | (2,371,289 | ) | 9,363,653 | |||||||||||||||||
Other financial entities | - | 32,111 | - | 172 | (6,528 | ) | 25,755 | |||||||||||||||||
Non-financial private sector and residents abroad | 9,801,898 | 57,182 | 451,047 | 1,392,532 | (2,364,761 | ) | 9,337,898 | |||||||||||||||||
Overdrafts | 306,576 | 14,403 | 15,070 | 134,628 | (95,111 | ) | 375,566 | |||||||||||||||||
Documents | 662,063 | 34,266 | 53,807 | (33,095 | ) | (144,893 | ) | 572,148 | ||||||||||||||||
Mortgages | 433,163 | 3,331 | (13,723 | ) | 63,203 | (98,201 | ) | 387,773 | ||||||||||||||||
Pledge loans | 245,007 | 10,453 | 11,181 | 70,647 | (68,157 | ) | 269,131 | |||||||||||||||||
Personal Loans | 1,822,845 | 92,218 | 635,109 | 406,024 | (597,360 | ) | 2,358,836 | |||||||||||||||||
Credit cards | 1,697,877 | 2,911 | (141,346 | ) | 754,198 | (467,519 | ) | 1,846,121 | ||||||||||||||||
Financial lease | 317,022 | (90,848 | ) | 53,306 | (27,373 | ) | (50,943 | ) | 201,164 | |||||||||||||||
Others | 4,317,345 | (9,552 | ) | (162,357 | ) | 24,300 | (842,577 | ) | 3,327,159 | |||||||||||||||
Other debt securities | 93 | - | - | - | (19 | ) | 74 | |||||||||||||||||
Eventual commitments | 10,821 | 2,204 | - | - | (2,632 | ) | 10,393 | |||||||||||||||||
TOTAL PROVISIONS | 9,863,457 | 94,102 | 451,047 | 1,392,704 | (2,384,700 | ) | 9,416,610 |
Separate Condensed Interim Financial Statements
For the six-month period ended on
June 30, 2021, presented on comparative basis in homogeneous currency
56 |
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
As of June 30, 2021 and December 31, 2020
(Expressed in thousands of pesos in homogeneous currency)
Notes and Schedules | 06/30/2021 | 12/31/2020 | ||||||||
ASSETS | ||||||||||
Cash and due from banks | 4.1 and 10 | 150,513 | 90,438 | |||||||
Cash | 4 | 5 | ||||||||
Financial institutions and correspondents | ||||||||||
Other local and financial institutions | 150,509 | 90,433 | ||||||||
Other financial assets | 4.2, 8 and 10 | 668,873 | 398,315 | |||||||
Other debt securities | 4.3 and A | 419,722 | 941,969 | |||||||
Current income tax assets | 8 | 105,494 | 37,903 | |||||||
Investments in equity instruments | - | 25,008 | ||||||||
Investment in subsidiaries, associates and joint ventures | 3 and 4.4 | 38,298,896 | 39,030,892 | |||||||
Property, plant and equipment | 4.5 and F | 2,345 | 2,926 | |||||||
Intangible Assets | 4.6 and G | 5,176,816 | 5,215,169 | |||||||
Deferred income tax assets | 8 | 19,489 | 58,788 | |||||||
Other Non-financial assets | 4.7 and 8 | 112,210 | 174,821 | |||||||
TOTAL ASSETS | 44,954,358 | 45,976,229 | ||||||||
LIABILITIES | ||||||||||
Other Non-Financial Liabilities | 4.8 and 8 | 303,061 | 435,194 | |||||||
TOTAL LIABILITIES | 303,061 | 435,194 | ||||||||
SHAREHOLDERS' EQUITY | ||||||||||
Capital Stock | 456,722 | 456,722 | ||||||||
Paid in capital | 36,166,317 | 36,166,317 | ||||||||
Capital adjustments | 3,836,023 | 3,836,023 | ||||||||
Earnings Reserved | 3,848,851 | - | ||||||||
Reserve | (313,077 | ) | - | |||||||
Other comprehensive income | 764,440 | 1,088,939 | ||||||||
Net Income for the period | (107,979 | ) | 3,993,034 | |||||||
TOTAL SHAREHOLDERS' EQUITY | 44,651,297 | 45,541,035 | ||||||||
TOTAL NET LIABILITIES AND SHAREHOLDERS' EQUITY | 44,954,358 | 45,976,229 |
The accompanying notes and schedules are an integral part of the separate condensed interim financial statements,
57 |
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the six and three-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
Six-month period ended on | Three-month period ended on | ||||||||||||||||||
Notes | 06/30/2021 | 06/30/2020 | 06/30/2021 | 06/30/2020 | |||||||||||||||
Interest income | 4.9 | 128 | 3,592 | 10 | 3,584 | ||||||||||||||
Interest expenses | 4.10 | (43,535 | ) | (40,312 | ) | (119,347 | ) | 16,774 | |||||||||||
Net interest income | (43,407 | ) | (36,720 | ) | (119,337 | ) | 20,358 | ||||||||||||
Net income from financial instruments at fair value through profit or loss | 4.11 | 38,318 | 217,785 | 31,373 | 56,462 | ||||||||||||||
Result from derecognition of assets measured at amortized cost | (16,912 | ) | - | (16,912 | ) | - | |||||||||||||
Exchange rate difference on gold and foreign currency | 82,133 | 106,639 | 75,581 | 99,129 | |||||||||||||||
NIFFI And Exchange Rate Differences | 103,539 | 324,424 | 90,042 | 155,591 | |||||||||||||||
Subtotal | 60,132 | 287,704 | (29,295 | ) | 175,949 | ||||||||||||||
Other operating income | 4.12 | 187,343 | 153,249 | 87,810 | 76,482 | ||||||||||||||
Result from exposure to changes in the purchasing power of the currency | (234,266 | ) | 15 | (87,692 | ) | 42,234 | |||||||||||||
Net operating income | 13,209 | 440,968 | (29,177 | ) | 294,665 | ||||||||||||||
Personnel expenses | 4.13 | 22,103 | 82,700 | 6,658 | 41,883 | ||||||||||||||
Administration expenses | 4.14 | 153,499 | 221,478 | 105,343 | 154,533 | ||||||||||||||
Depreciation and impairment of non-financial assets | 38,934 | 38,934 | 19,467 | 19,467 | |||||||||||||||
Other operating expenses | 4.15 | 12,889 | 21,124 | 8,182 | 13,856 | ||||||||||||||
Operating income | (214,216 | ) | 76,732 | (168,827 | ) | 64,926 | |||||||||||||
Profit of subsidiaries and associates | 4.16 | 86,771 | 1,895,558 | (183,025 | ) | 1,179,474 | |||||||||||||
Income before taxes | (127,445 | ) | 1,972,290 | (351,852 | ) | 1,244,400 | |||||||||||||
Income tax | (19,466 | ) | (161,865 | ) | (33,859 | ) | (172,183 | ) | |||||||||||
Net income of the period | (107,979 | ) | 2,134,155 | (317,993 | ) | 1,416,583 |
The accompanying notes and schdules are an integral part of the separate condensed interim financial statements,
58 |
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME EARNING PER SHARE
For the six and three-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
Six-month period ended on | Three-month period ended on | |||||||||||||||
Item | 06/30/2021 | 06/30/2020 | 06/30/2021 | 06/30/2020 | ||||||||||||
NUMERATOR | ||||||||||||||||
Net income for the period attributable to owners of the parent company | (107,979 | ) | 2,134,155 | (317,993 | ) | 1,416,583 | ||||||||||
PLUS: Diluting events inherent to potential ordinary shares | - | - | - | - | ||||||||||||
Net income attributable to owners of the parent company adjusted by dilution | (107,979 | ) | 2,134,155 | (317,993 | ) | 1,416,583 | ||||||||||
DENOMINATOR | ||||||||||||||||
Weighted average of ordinary shares | 456,722 | 456,722 | 456,722 | 456,722 | ||||||||||||
PLUS: Weighted average of number of ordinary shares issued with dilution effect, | - | - | - | - | ||||||||||||
Weighted average of number of ordinary shares issued of the period adjusted by dilution effect | 456,722 | 456,722 | 456,722 | 456,722 | ||||||||||||
Basic Income per share | (0.24 | ) | 4.67 | (0.70 | ) | 3.10 | ||||||||||
Diluted Income per share | (0.24 | ) | 4.67 | (0.70 | ) | 3.10 |
The accompanying notes and schdules are an integral part of the separate condensed interim financial statements,
59 |
GRUPO SUPERVIELLE S.A.
SEPARTE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the six and three-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
Six-month period ended on | Three-month period ended on | |||||||||||||||
06/30/2021 | 06/30/2020 | 06/30/2021 | 06/30/2020 | |||||||||||||
Net income from the period | (107,979 | ) | 2,134,155 | (317,993 | ) | 1,416,583 | ||||||||||
Components of Other Comprehensive Income not to be reclassified to profit or loss | ||||||||||||||||
Equity instrument at fair value through other comprehensive income | 31,628 | - | 31,628 | - | ||||||||||||
Income for the period from equity instrument at fair value through other comprehensive income | 31,628 | - | 31,628 | - | ||||||||||||
Participation of Other Comprehensive income of associates and joint ventures recorded through the utilization of the participation method | (352,251 | ) | 509,506 | 143,103 | 585,777 | |||||||||||
Income of the period from the participation of Other Comprehensive income of associates and joint ventures recorded through the utilization of the participation method | (352,251 | ) | 509,506 | 143,103 | 585,777 | |||||||||||
Total Other Comprehensive Income not to be reclassified to profit or loss | (320,623 | ) | 509,506 | 174,731 | 585,777 | |||||||||||
Components of Other Comprehensive Loss to be reclassified to profit or loss | ||||||||||||||||
Gains or losses on financial instruments at fair value with changes in ORI (Point 4.1.2a of IFRS 9) | (35,318 | ) | - | 27,649 | - | |||||||||||
Loss for the period from financial instrument at fair value through other comprehensive income | (50,757 | ) | - | 39,601 | - | |||||||||||
Income tax | 15,439 | - | (11,952 | ) | - | |||||||||||
Total Other Comprehensive Loss to be reclassified to profit or loss | (35,318 | ) | - | 27,649 | - | |||||||||||
Total Other Comprehensive Income | (355,941 | ) | 509,506 | 202,380 | 585,777 | |||||||||||
Total Comprehensive Income | (463,920 | ) | 2,643,661 | (115,613 | ) | 2,002,360 | ||||||||||
Total comprehensive income attributable to parent company | (463,920 | ) | 2,643,661 | (115,613 | ) | 2,002,360 |
The accompanying notes and schedules are an integral part of the separate condensed interim financial statements,
60 |
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
For the six-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
Other comprehensive income | ||||||||||||||||||||||||||||||||||||
Item |
Capital |
Capital Adjustments | Paid in capital | Legal reserve |
Other reserves | Retained earnings |
Revaluation of PPE |
Earnings or los accrued by financial institutions at FV through profit and loss |
Total shareholders´ equity | |||||||||||||||||||||||||||
Re-expressed Balance at December 31, 2020 | 456,722 | 3,836,023 | 36,166,317 | - | - | 4,276,207 | 820,198 | (14,432 | ) | 45,541,035 | ||||||||||||||||||||||||||
Adjustment to prior year income | - | - | - | - | - | (283,173 | ) | 268,670 | 14,503 | - | ||||||||||||||||||||||||||
Balance at December 31, 2020 | 456,722 | 3,836,023 | 36,166,317 | - | - | 3,993,034 | 1,088,868 | 71 | 45,541,035 | |||||||||||||||||||||||||||
Distribution of retained earnings by the shareholders' meeting on April 27, 2021: | ||||||||||||||||||||||||||||||||||||
Constitution of reserves | - | - | - | 441,572 | 3,407,279 | (3,848,851 | ) | - | - | - | ||||||||||||||||||||||||||
Dividend distribution | - | - | - | - | - | (427,356 | ) | - | (427,356 | ) | ||||||||||||||||||||||||||
Reclassification of equity instruments | - | - | - | - | - | (29,904 | ) | - | 31,442 | 1,538 | ||||||||||||||||||||||||||
Net Income for the period | - | - | - | - | - | (107,979 | ) | - | - | (107,979 | ) | |||||||||||||||||||||||||
Other comprehensive income for the period | - | - | - | - | - | - | (352,251 | ) | (3,690 | ) | (355,941 | ) | ||||||||||||||||||||||||
Balance at June 30, 2021 | 456,722 | 3,836,023 | 36,166,317 | 441,572 | 3,407,279 | (421,056 | ) | 736,617 | 27,823 | 44,651,297 |
The accompanying notes and schedules are an integral part of the separate condensed interim financial statements,
61 |
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
For the six-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
Other comprehensive income | ||||||||||||||||||||||||||||||||||||
Item |
Capital |
Capital Adjustments |
Paid in capital |
Legal reserve |
Other reserves |
Retained earnings |
Revaluation of PPE |
Earnings or los accrued by financial institutions at FV through profit and loss |
Total shareholders´ equity | |||||||||||||||||||||||||||
Balance at December 31, 2019 | 456,722 | 3,836,023 | 41,702,513 | 239,749 | 17,608,262 | (22,719,903 | ) | 138,824 | 8,615 | 41,270,805 | ||||||||||||||||||||||||||
Distribution of retained earnings by the shareholders' meeting on April 28, 2020: | ||||||||||||||||||||||||||||||||||||
Constitution of reserves | - | - | - | - | 6,639,780 | (6,639,780 | ) | - | - | - | ||||||||||||||||||||||||||
Dividend distribution | - | - | - | - | (651,154 | ) | - | - | - | (651,154 | ) | |||||||||||||||||||||||||
Net Income for the period | - | - | - | - | - | 2,134,155 | - | - | 2,134,155 | |||||||||||||||||||||||||||
Other comprehensive income for the period | - | - | - | - | - | - | - | 509,506 | 509,506 | |||||||||||||||||||||||||||
Balance at June 30, 2020 | 456,722 | 3,836,023 | 41,702,513 | 239,749 | 23,596,888 | (27,225,528 | ) | 138,824 | 518,121 | 43,263,312 |
The accompanying notes and schedules are an integral part of the separate condensed interim financial statements,
62 |
GRUPO SUPERVIELLE S.A.
SEPARATE CONDENSED INTERIM STATEMENT OF CASH FLOW
For the six-month period ended on June 30, 2021 and 2020
(Expressed in thousands of pesos in homogeneous currency)
06/30/2021 | 06/30/2020 | |||||||
CASH FLOW FROM OPERATING ACTIVITIES | ||||||||
Net income for the period before Income Tax | (127,445 | ) | 1,972,290 | |||||
Adjustments to obtain flows from operating activities: | ||||||||
Results of associates and join ventures | (86,771 | ) | (1,895,558 | ) | ||||
Depreciation and impairment | 38,934 | 38,934 | ||||||
Exchange rate difference on gold and foreign currency | (82,133 | ) | (106,639 | ) | ||||
Interests from loans and other financing | (128 | ) | (3,592 | ) | ||||
Interests from deposits and financing receivables | 43,535 | 40,312 | ||||||
Result from exposure to changes in the purchasing power of the currency | 234,266 | (15 | ) | |||||
Net income from financial instruments at fair value through profit or loss | (38,318 | ) | (217,785 | ) | ||||
(Increases) / decreases from operating assets: | ||||||||
Other debt securities | 433,794 | (739,740 | ) | |||||
Investments in equity instruments | 21,651 | - | ||||||
Other assets | 71,868 | 746,300 | ||||||
Increases / (decreases) from operating liabilities: | ||||||||
Other liabilities | (132,061 | ) | (16,282 | ) | ||||
Income Tax paid | - | (102,060 | ) | |||||
Net cash provided by / (used in) operating activities (A) | 377,192 | (283,835 | ) | |||||
CASH FLOW FROM INVESTING ACTIVITIES | ||||||||
Payments: | ||||||||
Purchase of investments in subsidiaries | (103,099 | ) | (219,346 | ) | ||||
Dividends Paid | (427,356 | ) | (651,154 | ) | ||||
Collections: | ||||||||
Sale of liability or equity instruments issued by other entities | 67,964 | - | ||||||
Dividends collected | 569,616 | 575,901 | ||||||
Net cash used in investing activities (B) | 107,125 | (294,599 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net cash used in financing activities (C) | - | - | ||||||
Effects of exchange rate changes and exposure to changes in the purchasing power of money on cash and cash equivalents (D) | (29,913 | ) | 204,924 | |||||
TOTAL CHANGES IN CASH FLOW | ||||||||
Net increase / (decrease) in cash and cash equivalents (A+B+C+D) | 454,404 | (373,510 | ) | |||||
Cash and cash equivalents at the beginning of the year (NOTE 10) | 487,015 | 1,434,492 | ||||||
Result from exposure to changes in the purchasing power of the currency in cash and equivalents | (122,220 | ) | (165,248 | ) | ||||
Cash and cash equivalents at the end of the year (NOTE 10) | 819,199 | 895,734 |
The accompanying notes and schedules are an integral part of the separate financial statements
63 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
1. | ACCOUNTING STANDARDS AND BASIS OF PREPARATION |
Grupo Supervielle S.A. (hereinafter, 'the Group'), is a company whose main activity is the investment in other companies, Its main income is given by the distribution of dividends of such companies and the raising of earnings of other financial assets.
The main investment of the Company accounts for the stake in Banco Supervielle S.A., a financial entity governed pursuant to Law N° 21,526 of Financial Statements and subject to provisions issued by the Argentine Central Bank, in virtue of which the entity has adopted valuation and disclosure guidelines pursuant to provisions included in Title IV, chapter I, Section I, article 2 of the Amended Text 2013 issued by the National Securities Commissions.
The issuance of these Consolidated Financial Statements as of the six-month period ended on June 30, 2021 was passed by the Board of the Company over the course of its meeting held on August 25, 2021.
1.1. | Differences between the accounting framework established by the BCRA and IFRS |
These financial statements have been prepared pursuant to: (i) provisions set by Intenational Accounting Standards N° 34, 'Interim Financial Information' (IAS 34) and (ii) the accouting information framework set by the Argentine Central Bank which is based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and interpretations issued by the International Financial Reporting Standards Interpretation Committee with the following exceptions:
(i) Temporary exception of IFRS 9 'Financial Instruments' application over debt instruments of the non-financial public sector,
(ii) Temporary exception of the application of Section 5,5 (Value Impairment) for Group C entities, a category that includes IUDÚ Compañia Financiera S.A., Therefore, provisions of the aforementioned entity are held under minimum provisions standards set by the Argentine Central Bank, See note 1.2.4.
In accordance with the provisions of IAS 34, the interim financial information will include an explanation of events and transactions, occurred since the end of the last reporting period, that are significant for understanding the changes in the financial position, performance Group financial statements and cash flow statements with the objective of updating the information corresponding to the latest financial statements for the year ended December 31, 2020 (hereinafter 'annual financial statements'), Therefore, these condensed interim consolidated financial statements do not include all the information required by complete financial statements prepared in accordance with International Financial Reporting Standards, therefore, for an adequate understanding of the information included therein, they must be read in conjunction with the annual financial statements.
1.2. | Preparation basis |
These separated interim financial statements have been prepared applying accounting policies and measurement criteria consistent with those applied by the Group for the preparation of the annual financial statements, except as described in Note 1.2.4
The Gruop´s Board has concluded that these consolidated financial statements reasonably express the financial position, financial performance and cash flows.
The preparation of financial statements requires that the Group carries out calculations and evaluations that affect the amount of incomes and expenses recorded in the period. In this sense, calculations are aimed at the estimation of, for example, credit risk provisions, useful life of property, plant and equipment, impairments and amortizations, recoverable value of assets, income tax charges and the reasonable value of certain financial instruments. Future real results may defer from calculations and evaluations as of the date of these separate financial statements preparation.
As of these financial statements issuance date, such statements are pending of transcription to Inventory and Balance Sheet Book.
1.2.1. | Going concern |
As of the date of these separate Financial Statements there are no uncertainties with respect to events or conditions that may raise doubts regarding the possibility that the Group continues to operate normally as a going concern.
64 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
1.2.2. | Measuring unit- IAS 29 (Financial reporting in hyperinflationary economies |
Figures included in these financial statements are expressed in thousands of Argentine pesos, unless otherwise stated.
The Group´s financial statements recognice changes in the currency purchasing power until August 31, 1995, As from such date, in virtue of existing economic stability conditions and pursuant to Communication 'A' 2365 issued by the Argentine Central Bank, accounting measurements were not re-expressed until December 31, 2001. In virtue of Communication 'A' 3702 issued by the Argentine Central Bank, the application of the method was resumed and became effective on January 1, 2002, Previous accouting measurements were considered to be expressed in the currency as of December 31, 2001.
Pursuant to Communication 'A' 3921 issued by the Argentine Central Bank, in compliance with Decree 664/03 issued by the National Executive Power, the application of the re-expression of financial statements in homogeneous currency was interrupted as from March 1, 2003. Therefore, the Group applied said re-expression until February 28, 2003.
In turn, Law N° 27.468 (B.O. 04/12/2018) amended article 10° of Law N° 23,928 and its amendments, thus establishing that the abolition of all legal and regulating standards that set and authorize price indexing, monetary updating, cost changes or any other manner of re-increasing debts, taxes, prices or fees for goods, works or services does not include financial statements, regarding which the application of article 62 of the General Corporations Law N° 19550 (T.O 1984) and its amendments shall prevail. Likewise, the aforementioned legal body set de abolition of Decree N° 1269/2002 dated on July 16, 2002 and its amendments and instructed the National Executive Power, through its controlling agencies, to set the date as from which said regulations became into effect in relation with financial statements to be submitted. Therefore, on February 22, 2019, the Argentine Central Bank issued Communication 'A' 6651 which established that financial statements shall be prepared in a homogeneous currency as from January 1, 2020. Therefore, these financial statements have been re-expressed as of June 30, 2021.
1.2.3. | Comparative information |
The balances for the year ended December 31, 2020 and for the six-month period ended June 30, 2020 that are disclosed in these condensed interim financial statements for comparative purposes arise from the financial statements as of such dates, which were prepared with the regulations in force in said year. Certain figures of these financial statements have been reclassified in order to present the information in accordance with the regulations in force as of June 30, 2021.
It is worth mentioning that, given the restatement of financial statements pursuant to IAS 29 and the provisions of Communication 'A' 7211, the Bank has applied the following:
(i) | Inflation adjustment of figures included in the Statement of Financial Position, Income Statement, Other Comprehensive Income and Changes in the Shareholders' Equity Statement and respective notes as of June 30, 2020 and December 31, 2020 in order to record them in homogeneous currency, |
(ii) | Recognition of an Adjustment to prior year income of 283,173 in accordance with Communication 'A' 7211, which established that monetary income corresponding to items of a monetary nature that are measured at fair value with offsetting entry in other comprehensive income shall be recorded in income (loss) for the period as of January 1, 2021, For comparative purposes, balances were adjusted as of June 30, 2020. |
1.2.4. | Changes in accounting policies and new accounting standards |
With the approval of new IFRS, modifications or derogations of the standards in force, and once such changes are adopted through Adoption Bulletins issued by Federación Argentina de Consejos Profesionales en Ciencias Económicas (FACPCE), the Argentine Central Bank will determine the approval of such standards for financial entities, In general terms, no anticipated IFRS application shall be allowed unless upon adoption such anticipated measure is specified.
The following are changes that were made effective over the course of the quarter ended on June 30, 2021:
(a) | Impairment of financial assets |
Pursuant to Communication 'A' 6430 and 6847 Financial Entities shall start to apply provisions on Financial Assets Impairment included in paragraph 5,5 of IFRS 9 as from fiscal years starting on 1 January, 2020, except for Non-financial Public Sector´s debt securities, which shall be temporarily excluded from the scope of said provisions. Likewise, Communication 'A' 7181 issued by the Argentine Central Bank set the postponement of the application of the section targeted to 'C' group Companies until January 1, 2022, a category that includes IUDÚ Compañia Financiera S.A.; therefore, provisions of said Entity are held under the minimum provisions regulations set by the Argentine Central Bank, It is worth mentioning that through communications 'A' 7108 and 7134, the Argentine Central Bank ordered the classification of financial entities into groups 'A', 'B' and 'C', leaving IUDÚ Compañía Financiera classified as Group 'C' as of October 1, 2020.
65 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
(b) | Changes in the Accounting Framework set by the Argentine Central Bank - monetary income accrued with respect to items of a monetary nature that are measured at fair value with changes in Other Comprehensive Income (OCI) |
Through Communication 'A' 7211, the Argentine Central Bank established that monetary income accrued with respect to items of a monetary nature that are measured at fair value with changes in Other Comprehensive Income (OCI) shall be recorded in the relevant accounts of income (loss) for the period, Consequently, it further established that in fiscal year 2021, retained earnings shall be adjusted and recorded in the account 'Adjustments to retained earnings' in order to include monetary income accrued with respect to the aforementioned items that was recorded in OCI as at the beginning of the comparative year. Furthermore, the Communication established that the comparative information to include in the Financial Statements for Quarterly/Annual Publication corresponding to the fiscal year 2021 -both interim and annual- shall take into account the exposure criterion laid down with respect to the involved items of each statement. Accordingly, the comparative information has been modified to comply with the above-mentioned publication.
(c) | Changes in IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 - Reference interest rate reform (IBOR) |
With the purpose of working out issues resulting from the implementation of the reference interest rate reform (IBOR), on August 27, 2020 the IASB released changes in standards. The most important changes are related to the accounting of financial instruments at amortized cost. Such changes require that financial entities update contractual cash flows resulting from the reference interest rate reform through the modification of the effective interest rate pursuant to paragraph B5.4.5 of IFRS 9. Therefore, no impact on income is recorded as a result of such modification, Said change shall be applied only when necessary as a direct consequence of the application of the reference interest rate reform (IBOR), IFRS 16 was also modified; thus, requiring lessees to utilize the same modification when accounting changes in leasing payments to be produced as a result of the reference interest rate reform (IBOR).
The Group considers that this modification does not have a significant impact on its financial statements.
(d) | Amendments to IFRS 16 'Leases': lease concessions in a COVID-19 environment |
Many lessors have granted, or expect to grant, lease concessions to lessees as a consequence of the COVID-19 pandemic. These concessions can be diverse, including grace periods and deferral of lease payments, sometimes followed by an increase in lease payments in future periods, IFRS 16 contains requirements that apply to these concessions. However, the IASB pointed out that it could be difficult to impose such requirements to a potentially large number of lease concessions related to the COVID-19 pandemic, especially in light of many other challenges faced by stakeholders during the pandemic.
As a result of this, the IASB provided lessees (but not lessors) with relief in the form of an optional exemption to assess whether a COVID-19-related lease concession is a lease modification. Lessees can elect to account for lease concessions in the same way as they would if they were not lease modifications. In many cases, this will result in accounting for the concession as a variable lease payment. This simplification only applies to lease concessions that occur as a direct consequence of the COVID-19 pandemic. Lessees who make use of the exemption shall disclose such fact as well as the amount recognized in income (loss) that arises from the COVID-19-related lease concessions, If a lessee chooses to apply the practical expedient to a lease, it will apply it consistently to all lease agreements with similar characteristics and under similar circumstances. The amendment will be applied retrospectively in accordance with IAS 8; however, lessees are neither required to restate figures from previous fiscal years nor disclose them pursuant to paragraph 28 (f) of IAS 8.
The Group considers that this modification does not have a significant impact on its financial statements.
1.3. | Critical accounting policies and estimates |
The accounting policies are consistent with those used in the financial statements as of December 31, 2020.
The preparation of financial statements requires the Entity to make estimates and evaluations that affect the amount of the assets and liabilities recorded, and the disclosure of contingencies, as well as the income and expenses recorded in the year, In this sense, estimates are made to calculate, for example, provisions for uncollectible, useful lives of property, plant and equipment, depreciation and amortization, the recoverable value of assets, the charge for income tax, , some labor positions and the contingency, labor, civil and commercial lawsuits, Actual future results may differ from the estimates and evaluations made at the date of preparation of these Separated Financial Statements.
66 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
2. | FAIR VALUES |
Fair value is defined as the amount by which an asset may be exchanged or a liability may be settled, in an arm's length orderly transaction between knowledgeable principal market participants (or more advantageous) at the date of measurement of the current market conditions regardless of whether such price is directly observable or estimated utilizing a valuation technique under the assumption that the Group is a going concern.
When a financial instrument is sold in a liquid and active market, its settled price in the market in a real transaction provides the best evidence of its fair value. When a stipulated price is not settled in the market or when it cannot be an indicator of a fair value of the instrument, in order to determine such fair value, another similar instrument's fair value may be used, as well as the analysis of discounted flows or other applicable techniques, Such techniques are significantly allocated by the assumptions used.
The Group classifies the fair values of the financial instruments into 3 levels, according to the quality of the data used for their determination.
Fair Value level 1: The fair value of financial instruments traded in active markets (such as publicly-traded derivatives, debt securities or available for sale) is based on market quoted prices as of the date of the reporting period, If the quote price is available and there is an active market for the instrument, it will be included in level 1.
Fair Value level 2: The fair value of financial instruments which are not traded in active markets, such as over-the-counter derivatives, is determined using valuation techniques that maximize the use of observable market data and rely the least possible on the Group's specific estimates, If all significant inputs required to fair value a financial instrument are observable, such instrument is included in level 2.
Fair Value level 3: If one or more significant inputs are not based on observable market data, the instrument is included in level 3.
The portfolio of financial instruments held by the Group is detailed below, at the close of the period ended on June 30, 2021 and December 31, 2020:
Portfolio of instruments at 06/30/2021 | FV Level 1 | FV Level 2 | FV Level 3 | |||||||||
Assets | ||||||||||||
- Other Debt securities | 419,722 | - | - | |||||||||
- Other financial assets | 668,873 | - | - | |||||||||
Total Assets | 1,088,595 | - | - |
Portfolio of instruments at 12/31/2020 | FV Level 1 | FV Level 2 | FV Level 3 | |||||||||
Assets | ||||||||||||
- Other financial assets | 398,315 | - | - | |||||||||
Total Assets | 398,315 | - | - |
Fair Value of Other Financial Instruments
The following chart includes a comparison between the fair value and the accounting value of financial instruments not recorded at fair value as of June 30, 2021 and December 31, 2020:
Other Financial Instruments as of 06/30/2021 |
Accounting value | Fair value | FV Level 1 | FV Level 2 | FV Level 3 | |||||||||||||||
Financial Assets | ||||||||||||||||||||
-Cash and due from banks | 150,513 | 150,513 | 150,513 | - | - | |||||||||||||||
Total Assests | 150,513 | 150,513 | 150,513 | - | - |
Other Financial Instruments as of 12/31/2020 |
Accounting value | Fair value | FV Level 1 | FV Level 2 | FV Level 3 | |||||||||||||||
Financial Assets | ||||||||||||||||||||
-Cash and due from banks | 90,438 | 90,438 | 90,438 | - | - | |||||||||||||||
Total Assests | 90,438 | 90,438 | 90,438 | - | - |
67 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
3. | INVESTMENT IN SUBSIDIARIES AND ASSOCIATES |
Market | Issuers' last Financial Statements | |||||||||||||||||||||||||||||
Subsidiary | Class |
Value/ Nominal | Number | Main Activity |
Capital Stock |
Shareholders' equity |
Book value at 06.30.2021 |
Book value at 12.31.2020 | ||||||||||||||||||||||
Banco Supervielle S.A. | Ord. | 1 | 805.533.007 | Commercial Bank | 829.564 | 35.109.485 | 34.064.219 | 34.503.903 | ||||||||||||||||||||||
IUDÚ Compañia Financiera S.A | Ord. | 1 | 12.847.878 | Financial Company | 256.957 | 3.191.121 | 159.392 | 181.840 | ||||||||||||||||||||||
Sofital S.A.F.e.I.I. | Ord. | 1 | 20.854.642 | Financial operations and administration of securities | 21.544 | 1.563.613 | 1.043.546 | 1.088.060 | ||||||||||||||||||||||
Tarjeta Automática S.A. | Ord. | 1 | 201.635.159 | Credit Cards | 230.440 | 131.276 | 114.866 | 252.697 | ||||||||||||||||||||||
Supervielle Asset Management S.A. | Ord. | 1 | 1.407.277 | Mutual Fund Management | 1.407 | 338.980 | 322.031 | 441.050 | ||||||||||||||||||||||
Espacio Cordial de Servicios S.A. | Ord. | 1.000 | 1.340 | Trading of products and services | 1.340 | 335.665 | 281.864 | 319.868 | ||||||||||||||||||||||
Supervielle Seguros S.A. | Ord. | 1 | 1.543.750 | Insurance company | 1.625 | 1.267.257 | 1.205.760 | 1.164.785 | ||||||||||||||||||||||
FF Fintech SUPV I | - | - | 655.000 | Financial Trust | 177.128 | 145.997 | 117.658 | 109.472 | ||||||||||||||||||||||
Micro Lending S.A.U. | Ord. | 1 | 201.635.159 | Financial Company | 201.635 | 168.461 | 171.412 | 167.680 | ||||||||||||||||||||||
Invertir Online | InvertirOnline S.A.U | Ordinarias | 100 | 2.400 | Settlement and Clearing Agent | 240 | 482.209 | 504.986 | 509.924 | |||||||||||||||||||||
InvertirOnline.Com Argentina S.A.U | Ordinarias | 0,01 | 80.451.077 | Representations | 805 | 23.891 | ||||||||||||||||||||||||
Supervielle Productores Asesores de Seguros S.A. | Ord. | 1 | 33.571.920 | Insurance Broker | 35.250 | 33.451 | 31.859 | 16.246 | ||||||||||||||||||||||
Bolsillo Digital S.A.U | Ord. | 1 | 97.100.000 | Computer Services | 97.100 | 79.189 | 79.189 | 72.573 | ||||||||||||||||||||||
Futuros del Sur S.A. | Ord. | 1.000 | 55.027 | Settlement and Clearing Agent | 55.027 | 192.618 | 193.910 | 192.378 | ||||||||||||||||||||||
Easy Cambio S.A. | Ord. | 3.000 | 1.500 | Services and exchange agency | 4.500 | 7.903 | 8.204 | 10.416 | ||||||||||||||||||||||
subsidiaries, associates and joint ventures | 38.298.896 | 39.030.892 |
68 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
4. | COMPOSITION OF THE MAIN ITEMS OF THE SEPARATE STATEMENT OF COMPREHENSIVE INCOME |
06/30/2021 | 12/31/2020 | |||||||
4.1 Cash and due from banks | ||||||||
Cash | 4 | 5 | ||||||
Financial institutions and correspondents | 150,509 | 90,433 | ||||||
150,513 | 90,438 | |||||||
4.2 Other financial assets | ||||||||
Mutual funds investments | 668,686 | 396,576 | ||||||
Miscellaneous Debtors | 187 | 1,739 | ||||||
668,873 | 398,315 | |||||||
4.3 Other debt securities | ||||||||
Public securities | 419,722 | 941,969 | ||||||
419,722 | 941,969 | |||||||
4.4 Investments in subsidiaries. associates and joint ventures | ||||||||
Banco Supervielle S.A. | 34,064,219 | 34,503,903 | ||||||
IUDÚ Compañía Financiera S.A. | 159,392 | 181,840 | ||||||
Sofital S.A.F. e I.I. | 1,043,546 | 1,088,060 | ||||||
Tarjeta Automática S.A. | 114,866 | 252,697 | ||||||
Supervielle Asset Management S.A. | 322,031 | 441,050 | ||||||
Espacio Cordial de Servicios S.A. | 281,864 | 319,868 | ||||||
Supervielle Seguros S.A. | 1,205,760 | 1,164,785 | ||||||
FF Fintech SUPV I | 117,658 | 109,472 | ||||||
Micro Lending S.A.U | 171,412 | 167,680 | ||||||
Invertir Online S.A.U e invertir Online.com Argentina | 504,986 | 509,924 | ||||||
Supervielle Broker de Seguros S.A. | 31,859 | 16,246 | ||||||
Bolsillo Digital S.A.U. | 79,189 | 72,573 | ||||||
Futuros del Sur S.A. | 193,910 | 192,378 | ||||||
Easy Cambio S.A. | 8,204 | 10,416 | ||||||
38,298,896 | 39,030,892 | |||||||
4.5 Property. plant and equipment | ||||||||
Vehicles | 2,345 | 2,926 | ||||||
2,345 | 2,926 | |||||||
4.6 Intangible Assets | ||||||||
Goodwill - Businness combination | 4,201,055 | 4,201,055 | ||||||
Relations with clients | 707,107 | 734,657 | ||||||
Brand | 250,648 | 250,648 | ||||||
Proprietary Software & Technology | 18,006 | 28,809 | ||||||
5,176,816 | 5,215,169 | |||||||
4.7 Other non-financial assets | ||||||||
Overdrafts to employees | - | 2,896 | ||||||
Retirement insurance | 52,078 | 171,925 | ||||||
Other non-financial assets | 60,132 | - | ||||||
112,210 | 174,821 | |||||||
4.8 Other non-financial liabilities | ||||||||
Compensation and social charges payable | 11,108 | 20,719 | ||||||
Miscellaneous creditors | 291,953 | 325,893 | ||||||
Provision for long-term incentive | - | 88,582 | ||||||
303,061 | 435,194 |
69 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Six-month period ended on | Three-month period ended on | |||||||||||||||
06/30/2021 | 06/30/2020 | 06/30/2021 | 06/30/2020 | |||||||||||||
4.9 Interest income | ||||||||||||||||
Earned interests | 128 | 3,592 | 10 | 3,584 | ||||||||||||
128 | 3,592 | 10 | 3,584 | |||||||||||||
4.10 Interest expenses | ||||||||||||||||
Profit by government securities measure at amortized cost | (43,535 | ) | (40,312 | ) | (119,347 | ) | 16,774 | |||||||||
(43,535 | ) | (40,312 | ) | (119,347 | ) | 16,774 | ||||||||||
4.11 Net from financial instruments at fair value through profit or loss | ||||||||||||||||
Interests from Time Deposits | - | 60,305 | - | 6,213 | ||||||||||||
Income from Holding - MF | 38,318 | 37,365 | 31,373 | (56,507 | ) | |||||||||||
Income from Holding -Government Securities | - | 120,115 | - | 106,756 | ||||||||||||
38,318 | 217,785 | 31,373 | 56,462 | |||||||||||||
4.12 Other operating income | ||||||||||||||||
Subsidiaries' advisory fees | 133,098 | 130,388 | 62,712 | 63,308 | ||||||||||||
Royalties | 776 | 812 | 390 | 396 | ||||||||||||
Revaluation of retirement insurance contributions | 21,768 | 22,049 | 4,710 | 12,778 | ||||||||||||
Income from technology solutions | 27,657 | - | 15,954 | - | ||||||||||||
Foreign source commissions | 4,044 | - | 4,044 | - | ||||||||||||
187,343 | 153,249 | 87,810 | 76,482 | |||||||||||||
4.13 Personnel expenses | ||||||||||||||||
Personnel expenses | 22,103 | 82,700 | 6,658 | 41,883 | ||||||||||||
22,103 | 82,700 | 6,658 | 41,883 | |||||||||||||
4.14 Administration expenses | ||||||||||||||||
Bank expenses | 266 | 490 | 89 | 168 | ||||||||||||
Professional fees | 34,435 | 38,960 | 22,822 | 27,670 | ||||||||||||
Fees to directors and syndics | 99,593 | 138,964 | 71,389 | 103,894 | ||||||||||||
Taxes. rates and contributions | 3,245 | 9,867 | 2,288 | 6,396 | ||||||||||||
Insurance | 111 | 548 | - | 95 | ||||||||||||
Expenses and office services | 4,609 | 5,441 | 2,033 | 2,483 | ||||||||||||
Other expenses | 11,240 | 27,208 | 6,722 | 13,827 | ||||||||||||
153,499 | 221,478 | 105,343 | 154,533 | |||||||||||||
4.15 Other operating expenses | ||||||||||||||||
Turnover tax from Service Activities | 8,078 | 7,052 | 3,953 | 3,186 | ||||||||||||
Turnover tax from Financial Activities | 1,048 | 6,615 | 466 | 3,213 | ||||||||||||
Tax from Personal Assets Company Shares and Participations | 3,763 | 7,454 | 3,763 | 7,454 | ||||||||||||
Compensatory interests | - | 3 | - | 3 | ||||||||||||
12,889 | 21,124 | 8,182 | 13,856 | |||||||||||||
4.16 Results from associates and joint ventures | ||||||||||||||||
Results from equity investment in Banco Supervielle S.A | (87,436 | ) | 1,345,840 | (225,121 | ) | 766,973 | ||||||||||
Results from equity investment in IUDÚ Compañía Financiera S.A. | (22,448 | ) | (17,297 | ) | (12,599 | ) | (5,465 | ) | ||||||||
Results from equity investment in Tarjeta Automática S.A. | (137,831 | ) | (117,880 | ) | (76,405 | ) | (54,910 | ) | ||||||||
Results from equity investment in Supervielle Asset Management S.A. | 196,953 | 199,245 | 114,159 | 132,788 | ||||||||||||
Results from equity investment in Espacio Cordial de Servicios S.A. | (38,004 | ) | (3,040 | ) | (18,556 | ) | (5,314 | ) | ||||||||
Results from equity investment in Supervielle Seguros S.A. | 243,521 | 328,069 | 102,828 | 192,671 | ||||||||||||
Results from equity investment in Sofital S.A.F. e I.I. | 6,585 | 105,112 | 6,740 | 82,287 | ||||||||||||
Results from equity investment in Micro Lending S.A.U. | 3,732 | (22,712 | ) | 855 | 40,007 | |||||||||||
Results from equity investment in InvertirOnline S.A. e InvertirOnline.Com Argentina S.A. | (4,937 | ) | 95,081 | (48,644 | ) | 43,956 | ||||||||||
Results from equity investment in FF Fintech S.A. | (32,277 | ) | (1,304 | ) | (13,439 | ) | 1,073 | |||||||||
Results from equity investment in Supervielle Productores Asesores de Seguros S.A. | (14,846 | ) | (14,083 | ) | (6,344 | ) | (14,222 | ) | ||||||||
Results from equity investment in Bolsillo Digital S.A.U. | (25,560 | ) | (4,872 | ) | (15,542 | ) | (3,533 | ) | ||||||||
Results from equity investment in Futuros del Sur S.A. | 1,532 | 3,399 | 10,190 | 3,163 | ||||||||||||
Results from equity investment in Easy Cambio S.A. | (2,213 | ) | - | (1,147 | ) | - | ||||||||||
86,771 | 1,895,558 | (183,025 | ) | 1,179,474 |
70 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
5. | RESTRICTED ASSETS |
As of June 30, 2021 and December 31, 2020, the Group does not hold restricted assets,
6. | COMPANIES UNDER SECT, 33 OF CORPORATE LAW AND OTHER RELATED COMPANIES |
As of June 30, 2020 and December 31, 2020, corporations where Grupo Supervielle S.A. holds direct or indirect shares, and with which it consolidates its Financial Statements are the following:
Company | Condition | Legal Adress | Principal Activity |
Percentage of direct participation |
Percentage of direct and indirect participation | |||||||||||||
06/30/2021 | 12/31/2020 | 06/30/2021 | 12/31/2020 | |||||||||||||||
Banco Supervielle S.A. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Commercial Bank | 97,10 | % | 97,10 | % | 99,90 | % | 99,90 | % | |||||||
IUDÚ Compañia Financiera S.A. | Controlled | Reconquista 320, C.A.B.A., Argentina | Financial Company | 5,00 | % | 5,00 | % | 99,90 | % | 99,90 | % | |||||||
Tarjeta Automática S.A. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Credit Card and Consumer Loans | 87,50 | % | 87,50 | % | 99,99 | % | 99,99 | % | |||||||
Supervielle Asset Management S.A. | Controlled | San Martín 344, C.A.B.A., Argentina | Asset Management Company | 95,00 | % | 95,00 | % | 100,00 | % | 100,00 | % | |||||||
Sofital S.A.F. e I.I | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Financial operations and administration of marketable securities | 96,80 | % | 96,80 | % | 100,00 | % | 100,00 | % | |||||||
Espacio Cordial de Servicios S.A. | Controlled | Patricias Mendocinas 769, Ciudad de Mendoza, Argentina | Trading of products and services | 95,00 | % | 95,00 | % | 100,00 | % | 100,00 | % | |||||||
Supervielle Seguros S.A. | Controlled | San Martin 344, C.A.B.A., Argentina | Insurance company | 95,00 | % | 95,00 | % | 100,00 | % | 100,00 | % | |||||||
Micro Lending S.A.U. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Financial Company | 100,00 | % | 100,00 | % | 100,00 | % | 100,00 | % | |||||||
InvertirOnline S.A.U. | Controlled | San Martin 344, C.A.B.A., Argentina | Settlement and Clearing Agent | 100,00 | % | 100,00 | % | 100,00 | % | 100,00 | % | |||||||
InvertirOnline,Com Argentina S.A.U. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Representations | 100,00 | % | 100,00 | % | 100,00 | % | 100,00 | % | |||||||
Supervielle Productores Asesores de Seguros S.A. | Controlled | San Martin 344, C.A.B.A., Argentina | Insurance Broker | 95,24 | % | 95,20 | % | 100,00 | % | 100,00 | % | |||||||
Bolsillo Digital S.A.U. | Controlled | Bartolomé Mitre 434, C.A.B.A., Argentina | Computer Services | 100,00 | % | 100,00 | % | 100,00 | % | 100,00 | % | |||||||
Futuros del Sur S.A. | Controlled | Tres de Febrero 515, Rosario, Santa Fe | Settlement and Clearing Agent | 100,00 | % | 100,00 | % | 100,00 | % | 100,00 | % | |||||||
Easy Cambio S.A. | Controlled | Av. Colón 2535, Mar del Plata, Buenos Aires | Services and exchange agency | 100,00 | % | 100,00 | % | 100,00 | % | 100,00 | % |
(1) | Grupo Supervielle S.A.'s direct and indirect interest in Banco Supervielle votes amounts to 99,87% as of 06/30/20 and 12/31/20, |
71 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
On March 13, 2020, Grupo Supervielle S.A. and Sofital, integrated capital contributions to Supervielle Productores Asesores de Seguros S.A. for $ 30,000,000 and $ 1,498,800, respectively, as approved by the Extraordinary Meeting on March 12, 2020, increasing the share capital in the amount of $ 31,498,800, by issuing 31,498,000 new ordinary shares, Said capital increase is in the process of authorization by the corresponding regulators.
On March 13, 2020, Grupo Supervielle S.A. integrated a capital contribution to Futuros del Sur S.A. for $ 50,000,000 conformed as approved by the Extraordinary Assembly on March 12, 2020, increasing the share capital in the amount of $ 50,000,000, by issuing 50,000 ordinary shares with a nominal value of $ 1,000 each, Said capital increase is in the process of authorization by the corresponding regulators.
On March 13, 2020, Grupo Supervielle S.A. added a capital contribution to Bolsillo Digital S.A.U. for $ 48,000,000 as approved by the Extraordinary Meeting on March 12, 2020, increasing the share capital in the amount of 48,000,000, by issuing 48,000,000 ordinary shares, Said capital increase is in the process of authorization by the corresponding regulators.
As resolved by the Board of Directors on September 24, 2020, Grupo Supervielle S.A. made a capital contribution to Bolsillo Digital S.A.U, of $ 12,500,000 on October 5, 2020, which was capitalized on the same date, increasing the capital stock in the amount of $ 12,500,000 to $ 60,600,000, through the issuance of 12,500,000 non-endorsable registered common shares of par value of $ 1 each and entitled to 1 vote per share.
On October 16, 2020 Grupo Supervielle S.A. acquired 100% of the capital stock of Easy Cambio S.A., represented by 1,500 ordinary, nominative, non-endorsable shares, with a par value of $ 3,000 each and entitled to 1 vote per share.
As resolved by the Board of Directors on October 13, 2020, Grupo Supervielle S.A. made an irrevocable contribution to Play Digital S.A. of $ 34,571,700 on October 20, 2020 to subscribe 32,514,069 ordinary, book-entry shares, with a nominal value of $ 1 each and with the right to 1 vote per share. In addition, As resolved by the Board of Directors on December 2, 2020, Grupo Supervielle S.A. subscribed, on December 18, 2020, 9,233,052 ordinary, book-entry shares, with a par value of $ 1 each and with the right to one vote per share of Play Digital S.A. at a total price of $ 10,471,188.
In accordance with the resolution of the Board of Directors on March 3, 2021, Grupo Supervielle S.A. made a contribution to Play Digital S.A. of $ 6,832,612 on March 4, 2021 to subscribe 5,641,254 book-entry ordinary shares, with a par value of $ 1 and with the right to 1 vote per share. As of June 30, 2021, the participation of Grupo Supervielle S.A. in Play Digital it amounts to 3,487% of the share capital and votes.
In accordance with what was resolved by the Board of Directors on February 22, 2021, on March 4, 2021 Grupo Supervielle S.A. made a contribution to Bolsillo Digital S.A.U for $ 29,000,000, which was capitalized on the same date, increasing the capital stock in the amount of $ 29,000,000, raising it from $ 68,100,000 to $ 97,100,000, through the issuance of 29,000,000 non-endorsable nominative ordinary shares with a par value of $ 1 each and with the right to 1 vote per share.
In accordance with what was resolved the Board of Directors on April 22, 2021, on April 30, 2021 Grupo Supervielle SA subscribed and integrated 28,572,291 ordinary, nominative, non-endorsable shares, with a par value of $ 1 each and one vote per share of Supervielle Productores Asesores de Seguros SA, accompanying the capital increase in proportion to its shareholding.
In accordance with what was resolved the Board of Directors on June 23, 2021, on June 30, 2021, Banco Supervielle S.A. acquired from its controlling shareholder Grupo Supervielle S.A. its equity interest in Play Digital S.A. of 41,747,121 common book-entry shares with a par value of AR$ 1 and entitled to 1 vote per share, plus an irrevocable capital contribution capitalization in the amount of $ 6,832,612, for reasons of strategic and commercial convenience.
72 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
The following describes Controlled Companies' shareholders' equity and results:
As of June 30, 2021 - In thousands of pesos | ||||||||||||||||
Company | Assets | Liabilities |
Shareholders' equity | Net income | ||||||||||||
Banco Supervielle S.A. (1) | 310,402,402 | 275,133,361 | 35,109,485 | (146,295 | ) | |||||||||||
IUDÚ Compañia Financiera S.A. | 14,942,887 | 11,751,766 | 3,191,121 | (445,686 | ) | |||||||||||
Tarjeta Automática S.A. | 401,595 | 270,319 | 131,276 | (157,522 | ) | |||||||||||
Supervielle Asset Management S.A. | 480,651 | 141,671 | 338,980 | 220,996 | ||||||||||||
Sofital S.A. F. e I.I. | 1,566,452 | 2,839 | 1,563,613 | (11,657 | ) | |||||||||||
Espacio Cordial de Servicios S.A. | 526,578 | 190,913 | 335,665 | (38,388 | ) | |||||||||||
Micro Lending S.A.U. | 260,437 | 91,976 | 168,461 | 2,753 | ||||||||||||
InvertirOnline,Com Argentina S.A.U. (2) | 51,418 | 27,527 | 23,891 | 2,494 | ||||||||||||
InvertirOnline S.A.U. | 10,562,227 | 10,080,018 | 482,209 | (4,499 | ) | |||||||||||
Supervielle Seguros S.A. (3) | 2,566,933 | 1,299,676 | 1,267,257 | 504,753 | ||||||||||||
Supervielle Productores Asesores de Seguros S.A. | 99,761 | 66,310 | 33,451 | (15,587 | ) | |||||||||||
Bolsillo Digital S.A.U, | 107,051 | 27,862 | 79,189 | (25,677 | ) | |||||||||||
Futuros del Sur S.A. | 201,479 | 8,861 | 192,618 | 208 | ||||||||||||
Easy Cambio S.A. | 9,329 | 1,426 | 7,903 | (2,487 | ) |
(1) | The net equity and the net result attributable to the owners of the parent company are reported. |
(2) | Corresponds to the Financial Statement of InvertirOnline S.A.U, as of December 31, 2020. |
(3) | The result is reported for twelve months. |
As of December 31, 2020 - In thousands of pesos | ||||||||||||||||
Company | Assets | Liabilities | Shareholders' equity | Net income | ||||||||||||
Banco Supervielle S.A. (1) | 302,598,371 | 266,852,197 | 35,564,333 | 2,771,358 | ||||||||||||
IUDÚ Compañia Financiera S.A. | 13,455,257 | 9,818,450 | 3,636,807 | (787,571 | ) | |||||||||||
Tarjeta Automática S.A. | 474,660 | 185,862 | 288,798 | (290,810 | ) | |||||||||||
Supervielle Asset Management S.A. | 697,061 | 232,905 | 464,156 | 391,264 | ||||||||||||
Sofital S.A. F. e I.I. | 1,635,334 | 5,754 | 1,629,580 | 184,486 | ||||||||||||
Espacio Cordial de Servicios S.A. | 691,742 | 317,689 | 374,053 | (55,495 | ) | |||||||||||
Micro Lending S.A.U, | 304,392 | 138,683 | 165,709 | (6 | ) | |||||||||||
InvertirOnline,Com Argentina S.A.U. | 51,418 | 27,527 | 23,891 | 2,494 | ||||||||||||
InvertirOnline S.A.U. | 7,727,660 | 7,240,952 | 486,708 | 100,653 | ||||||||||||
Supervielle Seguros S.A. (2) | 2,365,613 | 1,137,295 | 1,228,318 | 238,406 | ||||||||||||
Supervielle Productores Asesores de Seguros S.A. | 47,255 | 30,197 | 17,058 | (32,967 | ) | |||||||||||
Bolsillo Digital S.A.U. | 107,218 | 34,529 | 72,689 | (29,540 | ) | |||||||||||
Futuros del Sur S.A. | 251,916 | 59,506 | 192,410 | 107,364 | ||||||||||||
Easy Cambio S.A. | 17,531 | 7,141 | 10,390 | (985 | ) |
(1) | Corresponds to the Shareholders´Equity and Net Income attributable to parent company. |
(2) | The result is reported for six months. |
As of June 30, 2021 and December 31,2020, balances with Grupo Supervielle S.A's controlled are as follows:
Assets | 06/30/2021 | 12/31/2020 | ||||||
Cash and due from banks | ||||||||
Banco Supervielle S.A. | 1,557 | 1,789 | ||||||
InvertirOnline S.A.U. Cta. Cte. | 148,293 | 86,076 | ||||||
149,850 | 87,865 | |||||||
Other financial assets | ||||||||
IUDÚ Compañía Financiera S.A. | - | 1,534 | ||||||
Tarjeta Automática S.A. | - | 45 | ||||||
Espacio Cordial De Servicios S.A. | 186 | 159 | ||||||
186 | 1,738 | |||||||
Liabilities | ||||||||
Other non financial liabilities | ||||||||
Debt with subsidiary- Sofital | 18 | - | ||||||
Provisions - Banco Supervielle S.A. | 219 | 97 | ||||||
237 | 97 |
73 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
As of June 30, 2021 and 2020, results with Grupo Supervielle S.A's controlled are as follows:
06/30/2021 | 06/30/2020 | |||||||
Results | ||||||||
Interest income | ||||||||
Interests from current accounts - Banco Supervielle S.A. | 1 | 23 | ||||||
Interests from current accounts - IUDÚ Compañía Financiera S.A. | - | 2,686 | ||||||
Interest on paid account- IOL | 126 | 883 | ||||||
127 | 3,592 | |||||||
Other operating income | ||||||||
Banco Supervielle S.A. | 122,184 | 119,689 | ||||||
Sofital S.A.F. e I.I. | 99 | 99 | ||||||
Supervielle Asset Management S.A. | 986 | 966 | ||||||
Tarjeta Automática S.A. | 289 | 284 | ||||||
IUDÚ Compañía Financiera S.A. | 9,777 | 9,579 | ||||||
Espacio Cordial de Servicios S.A. | 539 | 584 | ||||||
133,874 | 131,201 | |||||||
Administrative expenses | ||||||||
Bank expenses - Banco Supervielle S.A. | 92 | 328 | ||||||
Rent - Banco Supervielle S.A. | 2,947 | 4,192 | ||||||
Legal and accounting consultancy services | 397 | 565 | ||||||
Fees for market operations - InvertirOnline S.A.U. | 26 | 1244 | ||||||
3,462 | 6,329 | |||||||
Net income from financial instruments at fair value through profit or loss | ||||||||
Interest from time deposits- IUDÚ Compañía Financiera | - | 60,306 | ||||||
- | 60,306 |
7. | INCOME TAX |
The following is a reconciliation between the income tax charged to income as of June 30,2021, that which would result from applying the current tax rate on the accounting profit:
06/30/2021 | ||||
Comprehensive Income of the financial year Income Tax | (127,445 | ) | ||
Tax Rate in Force | 30 | % | ||
Result of financial year before Income Tax at the tax rate | (38,233 | ) | ||
Permanent differences (at tax rate): | ||||
- Result of equity investments | (26,032 | ) | ||
- Untaxed results | 3,537 | |||
- Tax Inflation adjustment | 27,029 | |||
- Corrections to the deferred | 13,359 | |||
- Others | 874 | |||
Income Tax/(Breakdown) of the fiscal year | (19,466 | ) | ||
- Deferred tax rate difference | (39,298 | ) | ||
- Affidavit adjustment 2020 | (27,638 | ) | ||
- Others | (12,478 | ) | ||
Income tax balance in favor | (98,880 | ) |
74 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
The detail of the accumulated tax loss and its prescription date are reported below
Tax break
Year | Amount | Tax deferred | DJ 2020 | Prescribes | ||||||||||||
2021 | (237,474 | ) | (71,242 | ) | (27,638 | ) | 2026 |
The evolution of liabilities balance from deferred tax is expressed as follows:
Item | Deferred income tax assets | Deferred income tax liabilities | ||||||
At the beginning of the year | 108,778 | (49,990 | ) | |||||
Changes of the fiscal year | (35,928 | ) | (3,371 | ) | ||||
At the end of the period | 72,850 | (53,361 | ) |
In June 2021, a law was enacted that establishes a new tiered aliquot structure for income tax with three segments based on the level of accumulated net taxable income. The new aliquots are:
-25% for accumulated net taxable income of up to AR$ 5 million;
-30% for the second tax bracket, which is for net taxable income of up to AR$ 50 million;
-35% for net taxable income of more than AR$ 50 million.
Said modification will be applicable for fiscal years beginning on or after January 1, 2021.
The impacts that this change produces on current tax 50,755 ( income) and and balances of deferred assets and liabilities, net 5,072 (gains), have been recorded in these financial statements, considering the effective rate that is applicable to the estimated date of the reversal of such deferred assets and liabilities.
8. | LOAN AND DEBT ESTIMATED TERMS |
The composition of loans and debts in accordance with collection or payment estimated terms and interest rate accrued as of June 30, 2021 is as follows:
Other financial assets |
Current income tax assets |
Other non- financial assets |
Deferred income tax assets |
Other non- financial liabilities | ||||||||||||||||
To mature: | ||||||||||||||||||||
1st. Quarter | 668,873 | 105,494 | 73,153 | - | 303,061 | |||||||||||||||
2nd. Quarter | - | - | 13,019 | - | - | |||||||||||||||
3rd. Quarter | - | - | 13,019 | - | - | |||||||||||||||
4th. Quarter | - | - | 13,019 | - | - | |||||||||||||||
Over a year | - | - | 19,489 | - | ||||||||||||||||
Subtotal to mature: | 668,873 | 105,494 | 112,210 | 19,489 | 303,061 | |||||||||||||||
Matured term | - | - | - | - | - | |||||||||||||||
Total | 668,873 | 105,494 | 112,210 | 19,489 | 303,061 | |||||||||||||||
At fixed rate | ||||||||||||||||||||
At floating rate | 668,687 | - | - | - | - | |||||||||||||||
Not accrue interest | 186 | 105,494 | 112,210 | 19,489 | 303,061 | |||||||||||||||
Total | 668,873 | 105,494 | 112,210 | 19,489 | 303,061 |
9. | CAPITAL STOCK |
As of June 30, 2021, and 2020 the corporate capital stock is the following:
Capital Stock |
Nominal Value | |||
Capital stock as of 06/30/2021 | 456,722 | |||
Capital stock as of 06/30/2020 | 456,722 |
75 |
GRUPO SUPERVIELLE S.A.
Notes to Separate Condensed Interim Financial Statements
As of June 30, 2021 presented on comparative basis
(Expressed in thousands of pesos in homogeneous currency)
Pursuant to the Corporate By-law, any share transfer or event enabling any changes in its condition or alterations in its stock holding structure shall be informed to the Argentine Central Bank.
10. | CASH AND DUE FROM BANKS |
Cash and equivalents are considered to be the total of the item Cash and Due from Banks and Investments with maturity up to 90 days from the date of their acquisition or constitution, according to the following detail:
06/30/2021 | 12/31/2020 | 06/30/2020 | 12/31/2019 | |||||||||||||
Cash and due from banks | 150,513 | 90,438 | 17,392 | 203,884 | ||||||||||||
Other financial assets | 668,686 | 396,577 | 878,342 | 1,230,608 | ||||||||||||
Cash and cash equivalents | 819,199 | 487,015 | 895,734 | 1,434,492 |
Reconciliation between the balances of the Statement of Financial Position and those items considered cash equivalents in the Cash Flow Statement:
Item | 06/30/2021 | 12/31/2020 | 06/30/2020 | 12/31/2019 | ||||||||||||
Cash and due from Banks | ||||||||||||||||
As per Statement of Financial Position | 150,513 | 90,438 | 17,392 | 203,884 | ||||||||||||
As per the Statement of Cash Flows | 150,513 | 90,438 | 17,392 | 203,884 | ||||||||||||
Other financial assets | ||||||||||||||||
As per Statement of Financial Position | 668,873 | 398,315 | 880,346 | 1,232,041 | ||||||||||||
Other financial assets not considered as cash equivalents | (187 | ) | (1,738 | ) | (2,004 | ) | (1,433 | ) | ||||||||
Total | 668,686 | 396,577 | 878,342 | 1,230,608 |
11. | SUBSEQUENT EVENTS |
In accordance with what was resolved the Board of Directors on July 20, 2021, on August 5, 2021 Grupo Supervielle S.A. sold and transferred to its subsidiary Banco Supervielle S.A. its shareholding of 100% of the capital of Bolsillo Digital S.A.U., composed of 97,100,000 ordinary, nominative, non-endorsable shares, with a nominal value of $ 1 and 1 vote each.
76 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE A - OTHER DEBT SECURITIES
HOLDING | ||||||||
Item | Balance at 06/30/21 | Balance at 12/31/20 | ||||||
Argentine | ||||||||
Argentine National Bonus T2V1 | - | 162,076 | ||||||
Argentine National Bonus TV22 | 419,722 | 779,893 | ||||||
Total other debt securities | 419,722 | 941,969 | ||||||
Total | 419,722 | 941,969 |
77 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT
Gross carrying amount | Depreciation | Net carrying amount | ||||||||||||||||||||||||||||||||||||||||||
Item |
At the beginning of the year | Increases | Disposals |
At the end of the period |
At the beginning of the year | Aliquot | Disposals |
Of the period |
At the end of the period | 06/30/2021 | 12/31/2020 | |||||||||||||||||||||||||||||||||
Vehicles | 5,811 | - | - | 5,811 | (2,885 | ) | 5 | - | (581 | ) | (3,466 | ) | 2,345 | 2,926 | ||||||||||||||||||||||||||||||
Total | 5,811 | - | - | 5,811 | (2,885 | ) | - | (581 | ) | (3,466 | ) | 2,345 | 2,926 |
78 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE G - INTANGIBLE ASSETS
Gross carrying amount | Depreciation | Net carrying amount | ||||||||||||||||||||||||||||||||||||||||||
Item |
At the beginning of the year | Increases | Disposals |
At the end of the period |
At the beginning of the year |
Useful life | Disposals |
Of the period |
At the end of the period | 06/30/2021 | 12/31/2020 | |||||||||||||||||||||||||||||||||
Goodwill | 4,201,055 | - | - | 4,201,055 | - | - | - | - | - | 4,201,055 | 4,201,055 | |||||||||||||||||||||||||||||||||
Relations with clients | 881,588 | - | - | 881,588 | (146,931 | ) | - | - | (27,550 | ) | (174,481 | ) | 707,107 | 734,657 | ||||||||||||||||||||||||||||||
Brand | 250,648 | - | - | 250,648 | - | - | - | - | - | 250,648 | 250,648 | |||||||||||||||||||||||||||||||||
Proprietary Software & Technology | 86,430 | - | - | 86,430 | (57,621 | ) | - | - | (10,803 | ) | (68,424 | ) | 18,006 | 28,809 | ||||||||||||||||||||||||||||||
Total | 5,419,721 | - | - | 5,419,721 | (204,552 | ) | - | - | (38,353 | ) | (242,905 | ) | 5,176,816 | 5,215,169 |
79 |
GRUPO SUPERVIELLE S.A.
(Expressed in thousands of pesos in homogeneous currency)
SCHEDULE L - ASSETS AND LIABILITIES IN FOREIGN CURRENCY
Headquarters and branches | As of June 30, 2021 (per currency) | As of | ||||||||||||||
Items | in the country | As 06/30/2021 | Dollar | 12/31/2020 | ||||||||||||
ASSETS | ||||||||||||||||
Cash and Due from Banks | 149,599 | 149,599 | 149,599 | 82,685 | ||||||||||||
Other financial assets | 275,626 | 275,626 | 275,626 | 311,592 | ||||||||||||
Other non-financial assets | 52,078 | 52,078 | 52,078 | 171,925 | ||||||||||||
TOTAL ASSETS | 477,303 | 477,303 | 477,303 | 566,202 | ||||||||||||
LIABILITIES | ||||||||||||||||
Other non-financial liabilities | 278,329 | 278,329 | 278,329 | 402,017 | ||||||||||||
TOTAL LIABILITIES | 278,329 | 278,329 | 278,329 | 402,017 | ||||||||||||
NET POSITION | 198,974 | 198,974 | 198,974 | 164,185 |
80 |
Grupo Supervielle S.A.
INFORMATIVE REVIEW AS OF JUNE 30, 2021
(in thousands of pesos)
Brief description of the business and evolution of operations
The Company is focused on gaining a leading position in the local financial business by offering innovative, inclusive and accessible financial services, Its strategy, deployed by its different companies (banking and non-banking) enables the access to every population segment with the required product offer, service model and risk/reward relationship required.
The result of the period ended on June 30, 2021, yields a profit of 107,979, which represents a return on average net worth negative of 0.5%, This result was originated, mainly, by the results of our investments in companies.
On April 27, 2021, the General Ordinary and Extraordinary Shareholders' Meeting approved the following distribution of the results of the 2020 fiscal year:
· | Optional reserve for future dividends: 341,000 (*) |
· | Optional reserve: 2,718,768 (*) |
· | Legal reserve 352,343 (*) |
(*) Values expressed in currency of 12,31,2020
Grupo Supervielle S.A. is the parent company of the economic group and As of June 30, 2021 and December 31, 2020, recorded the following direct and indirect equity investments in its subsidiaries:
Interest in capital stock | ||||||||||
Company | Main Activity | 06/30/2021 | 12/31/2020 | |||||||
Banco Supervielle S.A. | Commercial Bank | 99,90 | % | 99,90 | % | |||||
IUDÚ Compañia Financiera S.A. | Financial Company | 99,90 | % | 99,90 | % | |||||
Tarjeta Automática S.A. | Credit Card and Consumer Loans | 99,99 | % | 99,99 | % | |||||
Supervielle Asset Management S.A. | Asset Management Company | 100,00 | % | 100,00 | % | |||||
Sofital S.A.F. e I.I. | Financial operations and administration of marketable securities | 100,00 | % | 100,00 | % | |||||
Espacio Cordial de Servicios S.A. | Trading of products and services | 100,00 | % | 100,00 | % | |||||
Supervielle Seguros S.A. | Insurance company | 100,00 | % | 100,00 | % | |||||
Micro Lending S.A.U. | Financing investments | 100,00 | % | 100,00 | % | |||||
Invertir Online S.A.U. | Settlement and Clearing Agent | 100,00 | % | 100,00 | % | |||||
InvertirOnline,Com Argentina S.A.U. | Representations | 100,00 | % | 100,00 | % | |||||
Supervielle Productores Asesores de Seguros S.A. | Insurance Broker | 100,00 | % | 100,00 | % | |||||
Bolsillo Digital S.A.U. | Computer Services | 100,00 | % | 100,00 | % | |||||
Futuros del Sur S.A. | Settlement and Clearing Agent | 100,00 | % | 100,00 | % | |||||
Easy Cambio S.A. | Services and exchange agency | 100,00 | % | 100,00 | % |
81 |
Grupo Supervielle S.A.
INFORMATIVE REVIEW AS OF JUNE 30, 2021
(in thousands of pesos)
Brief description of Related Companies
Banco Supervielle S.A. is a private equity bank founded by the Supervielle family, and has a history of 133 years in the Argentine financial system and a leading competitive position in certain market segments that are strategic for the company. Banco Supervielle's philosophy focuses on agility as a key part of its work culture, putting the client at the center of all its actions through the generation of profitable value propositions and promoting digital adoption. It is the main subsidiary of Grupo Supervielle, Since May 2016, the Group's shares have been listed on Byma and on the NYSE, As of December 31, 2020, its infrastructure supports its multi-channel distribution strategy, with a strategic national presence through 277 access points, 13 bank payment, sales and collection points; 79 points of sale of Iudú Compañía Financiera located in Walmart supermarkets, 457 ATMs, 221 self-service terminals and 256 express boxes with biometric identification. On the other hand, the Bank also offers financial services through 20 Automatic Card consumer financing centers, 5 MILA branches for customer support, completing the network with points of sale through 579 related agencies. Likewise, Supervielle offers solutions through its digital channels, applications and solutions developed for different business segments, and also offers products and services through Grupo Supervielle's digital attackers platforms to clients located throughout the country. As of June 30, 2021, the Bank records 310,402,402 worth assets and shareholders' equity attributable to parent company of 35,109,485. Net income recorded in the six months period ended on June 30, 2021 amounted to 146,295 which mainly resulted from the financial margin and the service margin.
IUDÚ Compañia Financiera S.A,, is a financial service firm, subject to regulations issued by the Central Bank of the Argentine Republic, whose main business is made up by credit card and loan granting and the sale of insurance policies in Walmart Argentina's outlets. As of June 30, 2021, recorded negative results of 445,686. On November 2, 2020, the Extraordinary Assembly of IUDÚ Compañia Financiera S.A, resolved, among other things, to reform the bylaws including the modification of the name of the Company to 'IUDÚ Compañía Financiera S.A.'. By Resolution No, 3/2021 of the B.C.R.A, no objections were made to the aforementioned change of company name, On April 19, 2021, said change was registered with the General Inspection of Justice.
Tarjeta Automática S.A.'s main activity includes the issuance and administration of credit cards and consumer loans. The period ended on June 30, 2021, recorded negative results of 157,522. In November 2012, Tarjeta Automática started to market credit cards, personal loans and insurance policies on account and behalf of IUDÚ Compañia Financiera S.A, collecting a monthly fee for such services.
Supervielle Asset Management S.A. is focused on the promotion, instruction and administration of investment mutual funds pursuant to Law 24,083, its Ruling Decree and any other legal or ruling standard addressing such activities. As of June 30, 2021, earnings amounted to 220,996.
Sofital S.A.F. e I.I. is a company whose main activity includes financial operations and the administration of marketable securities, As of June 30, 2021, negative results to 11,657.
Espacio Cordial de Servicios S.A. is a company focused on the trading of all kinds of goods and services related to insurance, tourism, health plans and/or services and other goods and services. As of June 30, 2021, recorded negative results of 38,388.
Supervielle Seguros S.A., the insurance company of Grupo Supervielle S.A., records shareholders equity for 1,267,257 and assets for 2,566,933. As of June 30, 2021, earnings amounted to 540,753.
Micro Lending S.A.U, is specializes in the financing of pledge credits, particularly used cars. As of June 30, 2021, recorded a profit results of 2,753.
InvertirOnline S.A.U, is a specialized online trading platform, which occupies a leading position among the top five in the online Broker segment in Argentina, and a reference in the Fintech sector in the country. As of June 30, 2021 InvertirOnline S.A.U obtained negative results of 4,499 and InvertirOnline,Com Argentina S.A.U, it presented a profit of 2,494 as December 31,2020.
Bolsillo Digital S.A.U, is a company dedicated to the commercialization of products and services related to the management and processing of payments. As of June 30, 2021, recorded a negative result of 25,677.
Futuros del Sur S.A. is a company whose main activity is to engage on its own account or on behalf of third parties or associated with third parties, in the country or abroad, to act as agent in the categories in which it is duly registered by the National Securities Commission. As of June 30, 2021, presented a profit of 208.
82 |
Grupo Supervielle S.A.
INFORMATIVE REVIEWAS OF JUNE 30, 2021
(in thousands of pesos)
Brief description of Related Companies
Supervielle Productores Asesores de Seguros S.A., is a company whose purpose is to carry out the activity of intermediation, promoting the conclusion of life, property and social security contracts, advising insured and insurable. As of June 30, 2021, it presented a negative result of 15,587.
Easy Cambio S.A. is a society that provides home and exchange agency services. As of June 30, 2021, it obtained negative result of 2,487.
83 |
Grupo Supervielle S.A.
INFORMATIVE REVIEWAS OF JUNE 30, 2021
(in thousands of pesos)
SHAREHOLDERS´ EQUITY STRUCTURE, RESULTS, FUND GENERATION OR UTILIZATION STRUCTURE, MAIN RATIOS,
The following offers information related to Consolidated Financial Statements, on a comparative basis:
Statement of Financial Position | 06/30/2021 | 12/31/2020 | 12/31/2019 | |||||||||
Total Assets | 321,031,374 | 313,209,307 | 254,944,880 | |||||||||
Total Liabilities | 276,344,149 | 267,631,880 | 213,641,216 | |||||||||
Changes in Shareholders' Equity | 44,687,225 | 45,577,427 | 41,303,664 | |||||||||
Total Liabilities plus Changes in Shareholders' Equity | 321,031,374 | 313,209,307 | 254,944,880 |
Income Statement | 06/30/2021 | 06/30/2020 | 06/30/2019 | |||||||||
Net income from interest | 17,848,421 | 23,296,572 | 6,031,380 | |||||||||
Net income from commissions | 5,679,494 | 6,288,015 | 6,787,322 | |||||||||
Net income before income tax | (229,835 | ) | 2,920,667 | (59,991 | ) | |||||||
Total comprehensive income attributable to owners of the parent company - Earnings | (462,382 | ) | 2,643,661 | (862,697 | ) |
Consolidated Cash Flow Statement | 06/30/2021 | 06/30/2020 | 06/30/2019 | |||||||||
Total operating activities | (5,190,269 | ) | 15,056,272 | 40,150,908 | ||||||||
Total investment activities | (702,987 | ) | (1,043,338 | ) | (1,103,403 | ) | ||||||
Total financing activities | (8,408,279 | ) | (6,772,424 | ) | (12,081,632 | ) | ||||||
Effect of changes in exchange rate | 7,987,616 | 1,135,203 | 41,235,371 | |||||||||
Net increase in cash and cash equivalents | (6,313,919 | ) | 8,375,713 | 68,201,244 |
84 |
Grupo Supervielle S.A.
INFORMATIVE REVIEW AS OF JUNE 30, 2021
(in thousands of pesos)
SHAREHOLDERS´ EQUITY STRUCTURE, RESULTS, FUND GENERATION OR UTILIZATION STRUCTURE, MAIN RATIOS,
The following offers information related to Consolidated Financial Statements, on a comparative basis:
Indicators (figures in thousands of pesos) | 06/30/2021 | 12/31/2020 | 12/31/2019 | |||||||||
Liquidity | 13.40 | % | 22.09 | % | 31.45 | % | ||||||
- Cash and cash equivalents (*1) | 32,586,655 | 49,461,172 | 47,760,445 | |||||||||
- Deposits | 243,203,850 | 223,881,435 | 151,863,366 | |||||||||
Solvency | 16.17 | % | 17.03 | % | 19.33 | % | ||||||
- Shareholders Equity | 44,687,225 | 45,577,427 | 41,303,664 | |||||||||
- Total Liabilities | 276,344,149 | 267,631,880 | 213,641,216 | |||||||||
Immobilization of Capital | 9.24 | % | 9.73 | % | 10.08 | % | ||||||
-Immobilized Assets (*2) | 29,666,991 | 30,489,847 | 25,697,189 | |||||||||
-Total Assets | 321,031,374 | 313,209,307 | 254,944,880 |
(*1) Including cash, listed corporate and government securities and mutual funds shares,
(*2) Including the following items: Equity Investments, Miscellaneous Receivables, Premises and Equipment, Miscellaneous Assets, Intangible Assets and unallocated items,
For Statement of Financial Position and Income Statement structure, the Group utilized the consolidated accounts, which follow the presentation of Financial Statement provisions set by Communication 'A' 3147 and complementary provisions issued by the Argentine Central Bank related to the Accounting Informative Regime for the annual disclosure and guidelines set by Technical Pronouncement N°8 issued by the Argentine Federation of Economy Sciences Professional Councils and the General Ruling 622/13 issued by the National Securities Commission.
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Grupo Supervielle S.A.
INFORMATIVE REVIEW AS OF JUNE 30, 2021
(in thousands of pesos)
Adoption of International Financial Reporting Standards (IFRS)
The Argentine Central Bank, through Communication 'A' 5541 and its amendments set the Implementation Plan for Convergence towards International Financial Report Standards (IFRS) issued by International Accounting Standards Board (IASB) and interpretations issued by the International Financial Reporting Standards Committee (IFRSC), for entities under its supervision, except for the application of section 5,5, (detriment of value) of IFRS 9 'Financial Instruments' and IAS 29 (which determines the obligatory restatement of financial statements in accordance with the detailed in note 1,2,b), for financial years started on January 1, 2018. Likewise, entities shall prepare their opening Financial Statements as from January 1, 2017 to be used as comparative base of the financial year to start on January 1, 2018, which will be the first Financial Statements submitted under these standards as of March 31, 2018.
On February 22, 2019 the Argentine Central Bank issued Communication 'A' 6651, through which it established that as of January 1, 2020, the financial statements are prepared in constant currency, In this sense, Communication 'A' 6849 issued by the Argentine Central Bank sets the re-expression frequency of the accounting information in a homogeneous currency on a monthly basis, and the index utilized to such ends accounts for the National Consumer Index drawn up by INDEC (basis month: December 2016) and for such items with previous initial date, IPIM issued by FACPCE is utilized, pursuant to Ruling JG 517/16, Likewise, transition date, in virtue of the retroactive application has been set on January 1, 2019.
Pursuant to Communication 'A' 6430 and 6847 Financial Entities shall start to apply provisions on Financial Assets Impairment included in paragraph 5,5 of IFRS 9 as from fiscal years starting on 1 January, 2020, except for Non-financial Public Sector´s debt securities, which shall be temporarily excluded from the scope of said provisions. Likewise, Communication 'A' 6938 issued by the Argentine Central Bank set the postponement of the application of the section targeted to 'B' group Companies until January 1, 2021,a category that includes IUDÚ Compañia Financiera S.A,,; therefore, provisions of said Entity are held under the minimum provisions regulations set by the Argentine Central Bank, It is worth mentioning that through communications 'A' 7108 and 7134, the Argentine Central Bank ordered the classification of financial entities into groups 'A', 'B' and 'C', leaving IUDÚ Compañía Financiera classified as Group 'C' as of October 1, 2020.
In turn, pursuant to Article 2, Chapter I, Section I, of Title IV of the modified text issued by the National Securities Commission, issuing entities, whose main assets are made up by investments in financial entities or insurance companies, are exempted from submitting their Financial Statements under IFRS and may choose their submission in accordance with the provisions issued by the Argentine Central Bank and the National Insurance Superintendence, respectively.
As for the aforementioned requirements, the following is set out:
• | Grupo Supervielle S.A.'s corporate purpose is, exclusively, the realization of financial and investment activities; |
• | the investment in financial entities and in the insurance company accounts for 81.1% of Grupo Supervielle S.A.'s assets, being the main assets of the Group. |
• | 95.13% of Grupo Supervielle S.A.'s incomes come from its equity investments in financial entities' and insurance company results. |
• | Grupo Supervielle S.A. holds 99,90% direct and indirect stock investments in Banco Supervielle S.A. a 99,90% of IUDÚ Compañia Financiera S.A, and a 100% of Supervielle Seguros S.A., resulting in the Group's control in those entities. |
Perspectives
For the financial year 2021, Grupo Supervielle expects to keep its contribution to the Argentine economy evolution and growth through its credit origination.
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Grupo Supervielle SA published this content on 13 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 September 2021 20:11:11 UTC.