Grupo Supervielle S.A. (NYSE:SUPV) Q2 2019 Earnings Conference Call - Final Transcript

Aug 13, 2019 • 09:00 am ET


Grupo Supervielle S.A. (NYSE:SUPV) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Grupo Supervielle Second Quarter 2019 Earnings Call. A slide presentation will accompany today's webcast, which is available in the Investors section of Grupo Supervielle's Investor Relations website, [Operator Instructions] As a reminder, today's conference call is being recorded.

At this time, I would like to turn the call over to Ana Bartesaghi, Treasurer and IRO. Please go ahead.

Ana Bartesaghi

Thank you. Good morning, everyone, and thank you for joining us today. Speaking during today's call will be Patricio Supervielle, our Chairman of the Board of Directors, who will discuss the overall banking environment, and Jorge Ramirez, our Chief Executive Officer and Vice Chairman of the Board, who will review our results for the quarter. Also joining us is Alejandra Naughton, Chief Financial Officer and Alejandro Stengel, Chief Operating Officer of the Bank. All will be available for the Q&A session.

Before we proceed, I would like to make the following Safe Harbor statements. Today's call will contain forward-looking statements, and I refer you to the forward-looking statement section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances.

I'd now like to turn the call over to our Chairman, Patricio Supervielle.

Patricio Supervielle

Thank you, Ana. Good morning, everyone. Thank you for joining us today. If you're following the presentation, please turn to slide 3.

I will begin my presentation this morning touching on the key highlights of the second quarter results. We are planning to spend time updating you on our digital initiatives on this call. But given recent political events, we will focus on our performance and leave more time for Q&A. The resiliency and flexibility of our business model was evidenced in results for the quarter. Overall credit demand remains weak, as we are conducting business in an ongoing challenging macro environment. Against this backdrop, pretax income more than doubled. Additionally, we delivered good revenue generation and increased our NPL coverage to almost 108%.

Becoming a leaner and more efficient organization is a key strategic focus for us -- of ours. And although we are making progress, some of this has been offset by weaker performance in consumer finance and wage inflation. Jorge will discuss this in greater detail in a moment.

We delivered solid results in the quarter, but we remain cautious as to the remainder of the year as interest rates remain consistently high and weak economic activity has been impacting several key industry sectors. As a result, we continue to closely monitor our loan portfolio. While we are facing challenging times in the near term, we do have a long track record of operating in uncertain environments. It is important for us to continue to make the necessary investments to operate in a changing capital and banking world and to do so efficiently.

Moving on to the macro on slide 4. Macroeconomic imbalances have been trending towards normalization over the past quarters.