Grupo Supervielle Stock

Grupo Supervielle S.A. provides a range of financial and non-financial services to its clients.

The company focuses on offering fast solutions to its clients and effectively adapting to evolving changes within the industries in which it operates. The company operates multiple platforms and brands and has developed a diverse ecosystem to respond to its clients' needs and digital transformation.

As of December 31, 2022, the company had a distribution network that gained efficiency due to the process of consolidation and resizing of branches, including those brands which were part of the transfer of its business of financial agent services which it rendered to the government of the province of San Luis. During 2022, the company continued to build its ecosystem, and served more than 1.8 million active customers.

Financial Services

The company owns the eighth largest Argentine private bank in terms of loans. The company, through the bank (Banco Supervielle S.A. and its consolidated subsidiaries), serves 1.6 million individual customers, around 29,000 small businesses, 3,600 SMEs and 1,000 corporates, and it maintains a competitive leading position in certain strategic segments.

Through the bank, the company maintains a strong geographic presence in the city of Buenos Aires and the Greater Buenos Aires metropolitan area, which is Argentina's most commercially significant and highly populated area.

Moreover, the company is advancing on its omnichannel strategy and developing a hybrid model, including virtual branches to expand its footprint and offer banking services anywhere and anytime. This model combines the efficiencies of a virtual branch with the strength of face-to-face interactions.

In 2022, the company updated and expanded its services to SMEs and multi-segment businesses to branches which previously offered services only to senior citizens. In 2022, the total number of the company's currency in-person transactions declined to 2% of total transactions in December 2022. The company expects to continue to work towards expanding its digital footprint and increasing customer acquisition through digital channels, virtual branches and transformed branches. As of December 31, 2022, the bank's retail digital customers increased 46% to 793,000 customers.

In 2022, the bank increased the share of personal loans granted through digital and automatic channels to 34% of the total personal loans. As of December 31, 2022, asset management retail customers increased by 59% to 12,500 asset management retail customers, and assets under the company's management increased.

During 2022, the company also expanded the E&P, SMEs and middle market customers. As of November 30, 2022, the company also increased its share of total system customers by over 25 basis points to 5.31% of total customers, regaining its leading market position in leasing and posted share increases across payroll services, sight deposits and assets.

Insurance

The insurance business is continuously adapting its products to the needs of its customers. The company has access to customers through its distribution networks and intends to further develop its bancassurance distribution model by expanding the variety of insurance products offered.

In 2021, through a commercial partnership with the insurtech company 123 Seguros the company integrated the insurance platform of 123 Seguros into its online banking, which allows it to offer digital car insurance products through the bank's online banking, and its insurance business segment completed the building of its datawarehouse which was integrated into the bank's data system in order to create predictive models.

As of December 31, 2022, the company had issued 455,000 insurance policies to individuals and more than 3,000 insurance policies to commercial customers, and reached 1.91% market share among the insurance lines the company underwrites.

Investments and Savings Solutions

The company offers investments and savings solutions to its customers through a wide range of products. Through Supervielle Asset Management, the company has 15 mutual funds designed to meet customers' particular investment objectives and risk profiles.

As of December 31, 2022, the company had 117,249 customers through IOL invertironline. Additionally, the company contributes to improve financial education with around 6,500 participants attending financial courses education offered by IOL invertironline in 2022.

Payments

In 2020, the company joined Play Digital S.A. (Modo), the systemic payment solution for banks in Argentina, as shareholder, with the aim of expanding the offer of financial services to its clients throughout the country, integrating technologies that facilitate the use of its applications on mobile devices, allowing them to operate in the digital market for payments and transfers through a systemic solution of the highest quality standard. In 2021, the company integrated Modo into its Supervielle App, an online banking platform, and its Supervielle Jubilados App, which serves to provide services to senior citizens, such as information on check payments and payment receipts, and cash withdrawals. In 2022, the company's Supervielle App for individuals implemented a functionality through which individuals are able to make payments using quick-response (QR) codes using credit, debit and account debit cards.

Mobility-Cars

In 2018, the company started to develop its mobility car business with the acquisition of Micro Lending S.A.U. (MILA), a company that specializes in car financing. In December 2021, the company signed an agreement to finance the operation of KAVAK, a digital platform for the sale of used cars. As a result of this financing, KAVAK provides a wide range of financial and non-financial services to its customers and its customers receive exclusive benefits.

Non Financial Services and Products: Retail and Leisure, and Medical Plans

Building on its banking sector expertise, the company identifies cross-selling opportunities and offer targeted products to its customers at each point of contact though its brands Cordial and Tienda Supervielle marketplace which was used to sell home appliances, technology, home and furniture, sport products, wellness and beauty, and tourism among others. During 2022, the company sold more than 10,000 retail and leisure products, and as of December 31, 2022, the company had 313,000 active medical plans.

Strategy

The key elements of the company's strategy are to enhance the customer experience; accelerate client acquisition in profitable segments; expand digital adoption; and maintain healthy asset quality.

During 2022, the company revised its strategy for its consumer finance business and IUDÚ's digital banking services, which had negatively impacted its results of operations. As a result, the company transferred clients and loans to the bank and reduced its number of employees.

As of December 31, 2022, the company served more than 1.8 million customers through this ecosystem. Improving asset quality and funding are two other key pillars of the company's strategy where it is also advancing despite the challenging context.

Segments

The company operates through Personal and Business Banking; Corporate Banking; Bank Treasury; Consumer Finance; Insurance; and Asset Management and Other Services segments.

Personal and Business Banking segment

This segment offers a wide range of financial products and services designed to meet the needs of individuals, entrepreneurs and small businesses: personal loans, mortgage loans, unsecured loans, loans with special facilities for project and work capital financing, leasing, bank guarantee for tenants, salary advances, car loans, domestic and international factoring, international guarantees and letters of credit, payroll payment plans (planes sueldo), credit cards, debit cards, savings accounts, time deposits, checking accounts, and financial services and investments, such as mutual funds, insurance and guarantees, and benefit payments for senior citizens. In 2022, the company continued to offer these financial products and services to satisfy its customers' needs.

On July 26, 2022, the bank entered into an agreement with the Province of San Luis to transfer the bank's services as financial agent of the government of the Argentine province of San Luis. This transfer involved almost 96,000 customers in the province of San Luis, and the related infrastructure, including 140 employees, and 14 branches located in the province of San Luis.

The bank will continue to build on the strong franchise established over the past 25 years serving more than 106,000 private sector customers in the Argentine province of San Luis through 5 physical branches. The bank also provides financial services to other muncipalities in the province of San Luis. On May 23, 2018, the municipality of the city of San Luis appointed the bank as financial agent for a term of 2 years and the agreement was renewed in May 2020 and subsequently in May 2022, in each case for 2 additional years.

The bank also works with the public sector in municipalities in the provinces of Mendoza, San Juan, Cordoba, and Buenos Aires. It also works with some national universities.

As a result of the integration of the consumer finance business of IUDÚ into the bank, since the fourth quarter of 2022, the customers of IUDÚ are provided services through this segment.

Based on the assessment of their distinctive features, their needs and specific requirements, the company's customers are grouped in four strategic groups, such as SMEs customers, which comprise individuals engaged in commercial activities, and small and medium sized companies with revenues lower than Ps.3 billion per year; identite customers, which comprise high networth individuals belonging to serial ABC1 segments; mass affluent, which comprise individual customers who do not perform any commercial activities and are not included in the Identite segment; senior citizens customers, which comprise senior citizens who are paid pension benefits through accounts held in the bank; and consumer customers which were transferred from IUDÚ to the bank.

Personal and Business Banking segment - Retail Customers

Identite and Mass Affluent Segments: In 2022, the company promoted the acquisition of new customers, with 30,000 registrations in Identite and 9,000 registrations in Mass Affluent, and it grows in competitive net promoter score, which is an indicator of customer satisfaction, for the second consecutive year.

To improve its customer service in Identite and Mass Affluent, the company focused on achieving an end-to-end digital everyday banking payment experience, including payments and transfers through the Modo app, personal loans, credit cards, car loans, car insurance, time deposits, Plan Sueldo (which is explained below), recharges and access to omnichannel services. Likewise, the company consolidated its referral program and replaced its points reward system with a welcome cashback on debit cards, which it expects that will improve its customer acquisition.

In terms of products and services, Identite and Mass Affluent grew in the placement of personal loans, with 25 basis points increase in market share, obtained 75,000 new time deposit investors, increased four times in terms of orders and volume of operations in relation to government securitites and for the second consecutive year grew in mutual funds.

Senior Citizens: The bank acts as one of the paying agents of social security payments to senior citizens on behalf of the Argentine government pursuant to an agreement with ANSES (the Argentine Social Security Administration (Administración Nacional de la Seguridad Social)). the bank remains the private bank with the largest presence in this segment, with 960,000 customers, 661,000 of which are beneficiaries of retirement and pension plans. In 2022, the company developed new channels to attract senior citizens and launched 'Previsional', a referral program for this segment, in order to maintain the bank's leadership in the senior citizens segment.

In order to evolve its service model, the company provided more simple branch structures, as a result of which 95% of its senior citizens customers withdraw their pensions through its ATMs and cash dispensers. In this regard, the volume of customers who made transactions using digital channels increased to 41% in 2022, mainly driven by improved functionalities in the online and mobile pltaforms.

In addition, the company launched the service payment functionality in its senior citizens app and it supported the funding strategy to increase its customers' transactionality.

Additionally, the company continued to work on strengthening the financial education of its senior citizens segment through virtual training programs and face-to-face meetings at designated centers, among other initiatives.

Former IUDÚ Customers: During the fourth quarter of 2022, the company completed the transfer of IUDÚ's customers, loan portfolio and back-office to the bank and discontinued the IUDÚ app. As a result of this transfer, at the end of 2022, the company was serving more than 192,000 customers who took advantage of IUDÚ's operational efficiencies and had access to the bank's broad assortment of financial products and services.

Personal and Business Banking segment - Entrepreneurs and SMEs

SMEs Customers: During 2022, the company acquired more than 3,200 new customers, including customers with commercial activity and small and medium-sized companies. 28% of these new acquisitions were managed digitally and in 2022, The company continued improving onboarding and the end-to-end experience of this channel. Thus, the company reduced the onboarding time to an average of 14 days in December 2022. In addition, during 2022, the company added all credit policies into the onboarding rating engine, including franchise and professional policies. Additionally, the company created an onboarding support team which helped it increase its customer satisfaction, according to the surveys that the company conducts on its customers.

For digital acquisition, the company leveraged exclusive value propositions and credit lines, in synergy with subsegments in partnership with B2B companies.

With respect to the commercial management model, the company continued to focus on increasing the cross-sell rate, thus obtaining a comprehensive view of each customer through its Plan Sueldo, foreign trade, cash management and leasing products. The company also continued to promote its franchise, education, transportation and health strategic subsegments and it launched its professionals subsegment, which is aimed at providing services to accountants, lawyers and custom agents.

Products Offered:

Loans. The bank offers personal, car loans, mortgage loans, overdrafts, salary advances and guarantees for tenants. In 2022 the company launched a consumption financing product both for Online Banking and Mobile, which it will continue to develop during 2023.

Deposits: In 2020, the Argentine Central Bank established minimum interest rates for time deposits made by individuals and companies which continue in force as of the date of this annual report. As of December 31, 2022, 97% of total time deposits were made through digital channels.

Plan Sueldo: The company continued with the process of transformation in product operations, aiming at achieving high efficiency standards in onboarding, cross-sell and customer profitability. During 2022, the company improved its process automation through its Online Banking for commercial customers. In order to continue encouraging onboarding, at the time of registration an automatic email is sent both to the company and to the employee, informing them of the possibility of managing its products from any device. As a result, the corporate customers paying salaries enjoy a better experience when opening salary accounts, uploading payrolls and making payments.

Investment Products: During 2022, the company began to develop the Personal Finance Manager to unify the investment perspective and deploy new experiences and products. The company launched MEP Dollar together with IOL invertironline, which allows its customers to purchase bonds in Pesos and sell those bonds in U.S. dollars. MEP Dollar positioned the company at the forefront for making this operation available on Mobile and increased three times the operation of negotiable securities in terms of customers.

The company also created a new experience called 'Inversión Rápida' for the short-term T0 Premier Fund, becoming the first bank to offer 24-hour operations during business days, a competitive value proposition compared to other fintech competitors.

These innovations led to an increase in the cross-sell of investment products, evidencing that customers who invest through the bank increase six times their transactional balances, and consolidated the necessary capacities to escalate in 2023 with a comprehensive, personalized vision of the investment portfolio.

Insurance: In 2022, the insurance business grew by with a 145% increase in digital sales, a channel that represents 46% of the total volume of sales. The company streamlined the guarantee for tenants where 63% of sales were through digital channels, and obtained 2,885 car insurance policies, 43% of which were made through digital channels. Likewise, during this period the company improved the value proposition through discounts, promoted new products that offer better opportunities, such as home and protected technology, and the company moved forward in the integration with its partner 123 Seguro, including the companies Sura, Experta and San Cristóbal.

Corporate Banking segment

In order to respond to the daily operational and transactional needs of companies, the company worked with teams speacialized in leasing, cash management, COMEX, Plan Sueldo, insurance and investments, leveraged on a branch structure that enables coverage in the most densely populated industrial and commercial areas.

In 2022, the company decided to implement a selective development focused on value propositions for different areas, such as specialized solutions for wine production and its value chain, with loans for harvest and haulage and leasing for barrels.

Products offered to Corporate Customers

Loans: In 2022, the company promoted special loan facilities in line with the segment's needs which, together with a product reengineering to streamline onboarding, allowed it to improve commercial document discounting, overdrafts and unsecured loans.

With the aim of achieving a 100% digital experience, in the fourth quarter of 2022 the company improved its Supervielle Cheques app by optimizing the reading of physical checks and adding an electronic checks discounting function, among others.

Leasing: With a focus on financing capital goods for SMEs, the Financial and Operational Leasing and Sale & Lease Back products are marketed through the company's commercial officers and its branch network with specialized service and advice in order to promote the use of this capital assets financing tool. This model allowed the company to maintain its market positioning, reaching an 11.4% market share as of December 2022.

Foreign Trade: During 2022, the company increased its flow of operations, reaching a record market share level of 3.8% in 2022. Regarding innovations to improve customer management, the company launched the Sidom customs payment button for exports, a digital tool that simplifies transactions. Likewise, the company launched the first edition of the 'Supervielle Exporta' award, which recognizes export competitiveness of its foreign trade customers and promotes internationalization in new markets by participating in the Barcelona Business Week (Spain).

Cash Management: The company's cash management products were part of the bank's transformation, which allowed it to reorganize its offer, focusing on funding products and providing offers with differentiated value propositions for the management of collections and payments to different customers in an agile and dynamic manner. During 2022, the company introduced a supplier payment service that allows it to digitally manage 1,000 records in just 3 clicks through its Online Banking for commercial customers. In addition, the company began migration of collection and payment services to the cloud, in partnership with AWS and IBM, which will allow unlimited processing capacity. The company also developed functions for massive management of electronic check batches that significantly increased the operated quantity and volume. Regarding collection services, Cobranza Ágil Supervielle continues growing supported by a digital payment button, new self service terminals in the company's branch network and a higher capillarity thanks to a service agreement with Pago Fácil, a collections company with an extensive network in Argentina.

Bank Treasury segment

This segment is primarily responsible for the allocation of the bank's liquidity according to the needs of the Personal and Business Banking segment, the Corporate banking segment and its own needs. The bank Treasury segment implements the bank's financial risk management policies, manages the bank's trading desks, distributes treasury products, such as debt securities, and develops businesses with wholesale financial and non-financial clients. Below is a description of the services offered under this segment:

Trading Desk and Institutional Sales

The bank's trading desks trade financial assets on a proprietary and third-party basis, sell financial products, and implement the Asset and Liability Management Committee (ALCO) decisions, within the board's policies, regarding the bank's liquidity and financial risk management policies. The bank's trading operations include money market instruments, which include institutional investor deposits, public debt instruments, Central Bank debt notes, foreign exchange, stocks, futures, swaps and repos. Trades develop within the limits of a comprehensive risk map which sets limits on counterparty risk and on long and short positions for each asset class, depending on volatility, traders' seniority level, and other factors. The risk map also determines stop-loss policies. Banco Supervielle managed to grow in volume in all products operated, including foreign currency, public and private securities, stocks and derivatives. The bank managed to position itself as one of the benchmarks of the market among institutional investors in all types of operations.

Correspondent Banking

During 2022, commercial relations were maintained with foreign banks related to the management of correspondent accounts, the financing of foreign trade transactions and the operation of guarantees and letters of credit.

Capital Markets

The bank's Capital Markets and Structuring department objective is to originate and structure financing products to be placed in the Argentine capital markets and provide financial advice services which allow the customers of the bank, the company and its subsidiaries to optimize their financial resources and capital structure in order to maximize the profitability of their operations.

The sector is mainly focused on the structuring of financial trusts and syndicated credit facilities, in the organization and placement of negotiable obligations and in equity capital markets transactions and mergers and acquisitions, with a view to providing a comprehensive advice on each product, generating long term relationships with customers and investors.

During 2022, the company participated in 88 capital markets transactions, 70 of which were negotiable obligations and 18 of which were financial trusts. As a result, the bank consolidated itself as one of the most active banks in the Argentine securities market. Likewise, the most active sectors were agriculture, livestock and agro-industrial, which accounted to 45 of its transactions.

On the other hand, although the company continued to support large companies and frequent issuers, more than 54% of the capital market issuances were made by SMEs, which shows the bank's commitment to this customer segment.

The bank continued to promote the issuance of green, social and sustainable (SVS) bonds. During the year, the company participated in 6 SVS transactions, acting as dealer of the negotiable obligations issued under the General CNV Regime, dealer of a financial trust, and dealer of negotiable obligations issued under the SME unsecured scheme.

Consumer Finance segment

The company implemented a major restructuring of IUDÚ with the goal of running a more efficient operation and transferred IUDÚ's customers, loan portfolio and back-office to the bank through the merger of IUDÚ into the bank. The company expects that this transfer will allow it to take advantage of IUDÚ's operational efficiencies while the continue to offer the bank's broad assortment of financial products and services to its customers. At the same time, the company reduced its loan origination and focused on improving asset quality in this middle to low income customer segment.

On March 1, 2023, the bank and Dorinka (Dorinka S.R.L) agreed to terminate the financial service agreement that IUDÚ (the bank's consumer finance business) had entered into with Dorinka on August 24, 2021, pursuant to which IUDÚ offered its financial products and services through Dorinka's points of sale. The bank's decision to terminate this agreement is in line with the initiatives that it implemented during 2022 to protect profitability and asset quality in a segment that has been greatly affected by increased inflation and a challenging macroeconomic environment.

Insurance segment

The company's insurance business is operated by its subsidiaries Supervielle Seguros (Supervielle Seguros S.A.) and Supervielle Productores Asesores de Seguros (Supervielle Productores Asesores de Seguros S.A.). Supervielle Seguros offers insurance products, including life, home, protected technology, personal accidents, protected bags, ATMs, protected content, integral insurance product for entrepreneurs and SME customers and other insurance policies. These products may be accessed through any of the company's marketing channels, both in-person and digital, which includes the distribution network of the bank.

The company has been carrying out a digital transformation process focused on building capabilities in its IT area and in the areas dedicated to customer experience, which in 2022 included the sale of car insurance through its Online Banking, the implementation of SAP systems, the design and implementation of digital sales strategies, the development of projects based on customer insights, generation of support content for its commercial team and for social media and a new identity for the company. Likewise, the company's IT department continued developing the APIs strategy, managing to implement functionalities required to boost the business in digital channels. In 2022, the company reported 455,000 policies with individual customers and more than 3,000 with corporate customers.

During 2022, Supervielle Seguros consolidated its offers in the following products:

Protected Bag Insurance: Protected bag insurance is insurance for personal property contained in a bag, backpack, wallet, fanny pack or other bag that is either lost or stolen. Protected bag insurance can cover items, such as cellular phones, makeup, planners, lost documents, keys and locks. In addition, protected bag insurance may cover a certain amount of charges from fraudulent credit card use as a result of a lost or stolen bag.

Personal Accident Insurance: Personal accident insurance covers policy holders in the event that they suffer an accident, subject to certain exclusions.

Broken Bones: The broken bones insurance covers death as result of an accident up to the amount of the insured capital. A certain amount will be paid in the event of quadriplegia or paraplegia, according to the respective insurance plan and once such condition has been verified by a medical audit. This insurance also covers the simple breakage of bones produced as an immediate consequence of an accident.

Life Insurance: Supervielle Seguros markets its life insurance products to the bank's senior citizen customers and sells its products through its own sales force that works within the bank's branch network. The basic life insurance product includes coverage for death, and customers can add varying degrees of coverage for accidents, serious and terminal illnesses and transplants.

Home Insurance: Home insurance coverage includes fire insurance (building and content), theft of content, theft and damage of appliances, glass breakage, civil liability, personal accident coverage for domestic staff and home assistance service in cases of emergencies.

Technology Insurance: Technology insurance covers theft or accidental damage as a result of theft of electronic equipment (includes notebooks, cell phones, tablets, smartphones, cameras and GPSs). In case of theft or accidental damage as a result of theft, the cost of the stolen property or the cost of repair will be compensated up to the maximum insured amount (once the repair invoice is provided).

ATM Insurance: ATM insurance covers robbery at ATMs, death at the time of the assault and reimbursement of the costs of stolen documentation.

Protected Content: Protected content insurance covers theft and accidental damage of the personal effects that are inside a vehicle.

Integral insurance product for entrepreneurs and SME customers: Integral insurance product for entrepreneurs and SMEs customers completes the offer of services for the company's priority segment entrepreneurs and SMEs, with the particularity that is fully processed by Supervielle Seguros.

Other Insurance: Pets insurance to cover accidents and illnesses, and bicycle insurante to cover theft of bycicles.

Asset Management and Other Services segment

The company offers a variety of investment services to its customers, including mutual fund products through Supervielle Asset Management. Since May 2018, Supervielle also offers brokerage and investment products and services through IOL invertironline ('InvertirOnline S.A.U.' and 'Portal Integral de Inversiones S.A.U.').

SAM

Mutual Funds: SAM (Supervielle Asset Management S.A.) offers mutual funds services designed to meet customers' particular investment objectives and risk profiles through its 'Premier' funds family. As of December 31, 2022, SAM had approximately 14,938 customers.

The Premier funds family comprises a money market fund (Premier Renta Corto Plazo en Pesos), two short term fixed income funds in Pesos (Premier Renta Plus and Premier Renta Fija Ahorro), six fixed income and mixed income funds in Pesos (Premier Renta Fija Crecimiento, Premier Capital, Premier Commodities, Premier Inversión, Premier Balanceado and Premier Renta Mixta), two fixed income funds in U.S. dollars (Premier Renta Mixta en Dólares and Premier Performance), a variable income fund (Premier Renta Variable), an investment fund in SME assets (Premier FCI Abierto PyMEs), a fixed income LatAm fund (Premier Global Dólares) and a close fund (Adblick Ganadería). These Premier funds family are offered to the public online.

During 2022, the volume of funds managed for the company's corporate and institutional customers decreased in real terms, however, the individual segment grew by 59% in number of customers and 24% in managed funds, reaching a 5% share in relation to the total number of investors. This growth was driven by promotion actions and improvements in the Online Banking experience for retail customers, through which 99% of operations were channeled as of December 2022, exceeding two times the year-on-year rate.

Regarding its product portfolio, at the end of 2022 the company launched 'Inversión Rápida;, a simple way to invest and redeem the funds invested in the FCI Premier Money market fund as it allows to credit these funds at any time during business days. The company is the first bank to provide this service, which it intends in 2023 to expand to non-business days.

IOL Invertironline

IOL invertironline is a digital online broker that offers brokerage and savings and investment services based on an agile, simple, transparent and innovative platform, suitable for the profile of each client, with the objective of helping the company's clients increase their savings.

During 2022, the company focused on the challenges and opportunities of its business at the Argentine market. The company adapted its platform to improve user experience and presented new products that are much simpler and easier to operate, such as the one-click sale of MEP Dollar, which was implemented in addition to the one-click purchase created in 2021, and the Portafolio Simple of CEDEARs packages created by market professionals that may be acquired in a few steps. The company also launched its Mobile App, which is already installed on more than 77,000 devices and has a high customer satisfaction rates. During 2022, an average of 8,000 accounts were opened per month, totaling 117,000 active customers and 417,000 authorized accounts at the end of the year.

With the courses it offers at the IOL Academy, the company intends to provide personalized learning experiences and supports in discussion forums and seminars. Likewise, the company participates in initiatives aimed at strengthening financial education of high school students in Argentina. Among its achievements during 2022, the company improved the Python courses which are applied to Finance, Bitcoin and Cryptocurrency I, II, III, with an emphasis on student support, and it reduced the average completion time from 90.2 days to 42.3 days. Likewise, the company participated in training sessions at educational establishments to raise financial awareness in teenagers 14 to 16 years old.

Market Area

The company maintains a strong geographic presence in the city of Buenos Aires and the Greater Buenos Aires metropolitan area, which is Argentina's most commercially significant and highly populated area, and the company is a leader in terms of its banking network in some of Argentina's most dynamic regions, including Mendoza and San Luis. Moreover, the company is present across Argentina through its virtual and digital channels.

The company is accelerating its transformation initiatives across channels to develop its omnichannel model. This includes developing a modern technological architecture, evolving its bank branch model and adding API capabilities to connect with third parties and prepare its business for open banking.

The company has physical branches, ATMs (some of which have biometric identification systems) and self-service terminals.

Bank Distribution Network

Bank Branches

In 2022, the company advanced the transformation of its distribution network and the consolidation process and resizing of branches to achieve greater productivity:

Virtual Branches

One of the most innovative launches of the year was the company's Virtual Branches system, which combines different digital channels, leveraged on a robust technological infrastructure that provides a high level of security, with the service of more than 100 especially trained executives. In 2022, the company expanded its Virtual Branches footprint, reaching areas where it does not have physical presence. The company's Virtual Branches system offers the following services:

Video Call: The company provides 100% virtual customer service through a representative who answers queries, solves claims or receives loan applications. The option is available both in cash dispensers and in Online Individuals and Business Banking and in the company's apps for Individuals and Senior Citizens.

Human Chat: The company answers the most frequent questions from its customers through a Chat Bot and refer customers to personalized service, if required. In 2022, the company developed this channel with the incorporation of a mix of Artificial Intelligence and Language provided by an Amazon Web Services (AWS) solution.

Online Banking and Mobile Banking: The company continued to improve the experience of its online and mobile banking users for friendlier and safer interactions.

Deposits

As of December 31, 2022, the company's deposits included checking accounts, saving accounts, time deposits, and other deposits.

Loan Portfolio

Promissory Notes (factoring and check discounting and warrants)

Factoring and Check Discounting: Check discounting is used to finance working capital needs for businesses that have a diversified accounts receivable portfolio and customers or parties that issue checks and have a favorable credit history. Most of the company's check discounting transactions are with recourse to the assignor (i.e., the company secures repayment with a pledge over an assignment of the borrower's cash flow). However, some of the company's check discounting transactions are without recourse to the assignor, in which case it only has recourse to the endorser of the check. With respect to the company's operations with recourse, it evaluates the creditworthiness of both the assignor and the endorser of the check, specifically assessing each party's payment history, credit history and legal history by requiring a variety of documents to help it in its underwriting process. The company accepts checks that are issued in the ordinary course of business from the customer with a payment date generally no longer than 180 days.

Warrants. Warrants are granted to finance working capital needs for producers or sellers of commodities or non-commodities, such as sugar, soy, wheat, corn, sunflower, peanuts, cotton and yerba mate. The company takes collateral in respect of the warrants for at least 20% to 50% in excess of the value of the products and its liquidity in the event of an execution, depending on the type of product. The most significant risk the company faces when extending warrant financing relates to the quality and preservation of the underlying assets. To mitigate this risk, the company selects third-party companies to assess and monitor the value and quality of the underlying products. These third-party companies have been approved by the company's credit committee.

Foreign Trade Loans

Foreign trade loans are granted to finance exports and imports through pre-financing and financing loans for exports, international factoring and letters of credit for imports.

The company grants pre-financing and financing loans for exports with terms ranging from 90 to 180 days, depending on the transaction and such loans are solely denominated in U.S. dollars. Interest rates for pre-financing and financing loans for exports depend on the term of the loan and market conditions.

Mortgage Loans

The bank sets a fixed interest rate on these loans, but the remaining capital is adjusted on a monthly basis according to the UVA monthly evolution. Therefore, the loan has index-linked capital payments (the value of the capital and the installment is updated by inflation).

Receivables from Financial Leases

The company's financial leases are granted for financing acquisitions of capital assets, industrial equipment, road equipment and automobiles. The terms of these loans are typically between 18 and 60 months, varying based on the type of product or equipment and the useful life of such product or equipment. The company sets floating or fix interest rates for its financial leases based on prevailing market rates.

Automobile and Other Secured Loans

The company grants secured loans to finance automobile purchases. The maximum amount of the company's automobile loans is Ps.8,600,000 with a maximum term of 60 months. The company sets interest rates based on the term of the automobile loan and a loan-to-value ratio ranging from 50% to 75% of the value of the vehicle at the time of sale.

Corporate Unsecured Loans

Corporate Financial Loans: The company's corporate financial loans finance short term working capital needs of up to one year or medium-term working capital needs of up to three years for businesses that require monthly or periodic amortization. These loans are granted to customers with annual revenues in excess of Ps.5 billion. The company sets either a floating or fixed interest rate for its corporate financial loans based on the creditworthiness of the borrower's business and the term of the loan.

Loans to Small Businesses: The company's loans to small businesses are originated at the bank's branches based on a policy that requires adequate credit and legal history, a minimum credit score and a certain level of revenues. The company's loans to small businesses finance the working capital needs of businesses with annual revenues of up to Ps.500 million. The bank's branches may grant up to Ps.10 million of unsecured loans and Ps.60 million of factoring transactions and financial leases, and any excess amount must be evaluated by the bank's specialized credit analysis unit. The company sets either a floating or fixed interest rate for its loans to small businesses based on the creditworthiness of the borrower's business and the term of the loan. The interest rates for the company's loans to small business are generally higher than the interest rates for its corporate financial loans reflecting the difference in size and revenues of the businesses.

Overdrafts

The company grants overdrafts to businesses to finance working capital needs and ordinary course business activity. The company sets interest rates for its overdrafts on a monthly basis.

Personal Loans and Credit Card Loans (within the Personal and Business Banking segment)

The company's Personal and Business Banking segment originates loans based on scoring systems and policies specifically tailored to its Plan Sueldo services, pension and retiree services and general clientele. For a detailed discussion of the bank's credit application process, credit monitoring and review process and the risks associated with personal loans and credit card loans.

Retail banking in Argentina is heavily regulated, including with respect to maximum interest rates and fees.

Personal Loans and Credit Card Loans (within the Consumer Finance segment)

The personal and consumer loans offered by IUDÚ Compañía Financiera S.A. (IUDÚ) and Tarjeta Automática S.A. (Tarjeta) until September 2022 were unsecured products for personal use and are offered to the middle and lower-middle-income sectors. Due to the nature of these products, the company's pricing structure was higher compared to the Argentine financial system.

One of the principal sales channels for personal and consumer loans was through telemarketing typically targeting credit card customers or customers that took out a loan previously with IUDÚ, Tarjeta or another company and performed in accordance with the terms of such loan.

Starting September 2022 and until December 2022, this loan portfolio was transferred to the bank and since then it is serviced through the Personal and Business Banking Segment.

The maximum amount of the company's personal and consumer loans is Ps.10 million, while the average loan as of December 31, 2022, was Ps.147,000. The average term of the company's personal and consumer loans as of December 31, 2022, was 24 months, with a maximum of 84 months. The loans are granted at a fixed rate and are paid back in monthly installments and amortized based on the French amortization system, which consists of equal monthly installments amortized in a manner in which interest payments are higher at the beginning of the loan and decrease over the life of the loan, while principal payments are lower at the beginning of the loan and increase over the life of the loan.

Competition

Mutual Funds

The company's main competitors are Galicia Administradora de Fondos S.A.S.G.F.C.I.; Macro Fondos S.G.F.C.I.S.A.; ICBC Investments S.A.S.G.F.C.I.; Frances Administradora de Inversiones S.A.G.F.C.I.; Itaú Asset Management S.A.S.G.F.C.I.; HSBC Administradora de Inversiones S.A.S.G.F.C.I.; BNP Paribas Asset Management Arg S.A.S.G.F.C.I.; and Santander Río Asset Management G.F.C.I.S.A.

Online Trading Broker

IOL invertironline's main competitors are Allaria S.A.; Buenos Aires Valores S.A.; SBS Trading S.A.; Latin Securities S.A.; Balanz S.A.U.; Bull Market S.A.; and Invertir en Bolsa S.A.

History

Grupo Supervielle S.A. was founded in 1887. The company was incorporated in the city of Buenos Aires in 1979.