Grupo Supervielle (NYSE:SUPV) reported a return to profitability in the second quarter of 2026, supported by stronger net financial income, lower inflation adjustment and early improvement in credit costs, while the Argentine financial group said its workforce-reduction program has largely been completed.
Attributable net income totaled ARS 13 billion in the second quarter, compared with a loss of ARS 18 billion in the first quarter, according to Chief Financial Officer Mariano Biglia. Excluding ARS 23 billion of after-tax extraordinary severance charges, adjusted net income was ARS 36 billion and adjusted return on equity was 12.4%.
Rightsizing Program Near Completion
The company reduced its workforce by 553 employees in the first half, including 262 during the second quarter. Banco Supervielle CEO Gustavo Paco Manriquez said annualized personnel savings are about ARS 42 billion, with the full quarterly benefit expected to begin in the third quarter.
Biglia said the savings should be reflected in reported expenses and income during the third and fourth quarters. However, he also cautioned that lower funding costs that lifted margins in the second quarter are unlikely to provide the same benefit in the second half as assets reprice.
Chairman and CEO Patricio Supervielle said the voluntary retirement program did not disrupt service levels, adding that the company’s net promoter score continued to improve. He said the efficiency agenda would remain ongoing, although investors should not expect another cost-reduction step of the magnitude seen in the first half.
Margins Rise, but Management Sees Second-Half Pressure
Net financial income increased 8% sequentially to ARS 295 billion. Net interest margin expanded 250 basis points from the prior quarter to 20.3%, exceeding the company’s full-year guidance at the time, as funding costs fell faster than yields on interest-earning assets.
Management updated its 2026 net interest margin outlook to a range of 17% to 19%. Biglia said the margin should decline from the second-quarter level as corporate loans, which make up almost two-thirds of the loan portfolio, reprice more quickly than retail loans.
The company said changes in its deposit mix were largely tactical. Biglia said the shift toward institutional deposits came primarily from corporate balances rather than retail or small- and medium-sized enterprise deposits, and was intended to optimize funding costs and duration. The broader strategy of building transaction deposits from core retail and corporate customers remains unchanged, management said.
Grupo Supervielle also expects net fee income to decline 5% to 8% in real terms this year because of softer banking activity. Adjusted operating expenses are now expected to decline between 4% and 6%, reflecting the headcount actions.
Credit Trends Improve as Lending Remains Selective
Total loans declined just over 1% from the first quarter but were nearly 9% higher year over year. Commercial lending increased modestly, aided by U.S. dollar loans that grew 6% in original currency, while retail loans declined 2% amid subdued demand and selective underwriting.
The nonperforming loan ratio improved 10 basis points sequentially to 5.5%, compared with a 7.6% ratio for the broader financial system, according to Biglia. Quarterly NPL formation declined for a second consecutive quarter and was about 20% below its fourth-quarter peak, while retail NPL formation fell 21%.
Net cost of risk improved to 5.6% from 6% in the first quarter. Management said its collections, refinancing and customer-outreach programs, introduced in December, have begun to show results, and newer loan origination cohorts are performing meaningfully better.
Still, executives said credit costs remain elevated, particularly among SMEs. The company maintained its 2026 cost-of-risk guidance of 5.3% to 5.8%, though management said it expects results to trend toward the lower end of that range if improvements continue.
Lower Loan-Growth Outlook, Focus on Strategic Sectors
Grupo Supervielle lowered its expected real loan growth for 2026 to between 10% and 15%, from an earlier expectation above 20%. Management said the revised range implies a meaningful pickup in the second half after a 7% decline in the first half, but depends on improving macroeconomic conditions and demand.
Growth efforts will focus on payroll customers, the Identité premium segment and senior citizens in retail banking, alongside energy, oil and gas, mining and regional economies in corporate banking. The group also plans to begin financing person-to-person vehicle transactions listed on Mercado Libre through an agreement with Flash Argentina in the fourth quarter.
Management sees opportunities tied to Argentina’s export-oriented sectors and projects approved under the RIGI investment framework. Patricio Supervielle said 21 RIGI projects representing about $47 billion of planned investments had been approved, primarily in energy, mining and infrastructure. The company intends to target financing across those projects’ value chains and expects opportunities to become more visible in 2027.
The group raised its common equity tier 1 capital guidance to 12% to 14%, citing softer loan growth. Reported ROE guidance was tightened to 2% to 4%, while adjusted ROE excluding severance charges is expected to be 8% to 10% for 2026. Biglia said the company expects loan growth, lower credit costs and the full impact of cost savings to support ROE closer to 15% in 2027, though it has not issued formal guidance for that year.
IOL Shifts Toward Assets and Longer-Term Investors
At IOL invertironline, assets under custody reached $3 billion. Diego Pizzulli, CEO of IOL invertironline, said lower customer activity reflected a more stable Argentine macroeconomic environment after earlier periods of market volatility, rather than customers leaving the platform.
Pizzulli said the business is shifting from high-volume, short-term trading toward more investor-oriented activity, including affluent clients, enterprises and independent financial advisers. He said the company is prioritizing growth in assets under custody and assets under management, while making investments in advisory capabilities, products and services that may weigh on near-term profitability but are intended to support a more sustainable business over time.
About Grupo Supervielle (NYSE:SUPV)
Grupo Supervielle (NYSE: SUPV) is a diversified Argentine financial services holding company headquartered in Buenos Aires. Through its principal subsidiary, Banco Supervielle, the group offers retail and commercial banking products including checking and savings accounts, consumer and corporate loans, credit and debit cards, treasury services and foreign exchange solutions. These services cater to individual customers, small and medium-sized enterprises and larger corporates throughout Argentina’s provincial and urban centers.
Beyond traditional banking, Grupo Supervielle operates in insurance and asset management.
