SUPV

Good morning, and welcome to Grupo Supervielle's first quarter 2026 earnings call. I'm Ana Bartesaghi, treasurer and IRO. Today's conference call is being recorded. For the Q&A session, please ensure your full name appears on Zoom. You can ask questions by voice or through the Q&A chat box. Speaking today are Patricio Supervielle, our Chairman and CEO, Gustavo Paco Manriquez, CEO of Banco Supervielle, and Mariano Biglia, our CFO. Diego Pisuli, CEO of InvertirOnline, will also be available during the Q&A session. Before we begin, please note this call may include forward-looking statements. Please refer to our earnings release and SEC filings for further details. Patricio, please go ahead.

Thank you, Ana. Good morning, everyone, and thank you for joining us today. The first quarter marked an early but important step in our earnings recovery, with underlying profitability returning to positive territory, excluding extraordinary severance charges. We maintain a disciplined approach to growth. Loans declined sequentially, reflecting seasonally lower demand in local currency lending and our continued focus on selective origination. U.S. dollar loans grew 13% in original currency terms, although peso appreciation masks growth when reported in local currency. We also further optimized our funding mix by reducing higher cost wholesale deposits and strengthening deposit quality. Asset quality showed early signs of stabilization. While the NPL ratio stood at 5.6% at quarter end, delinquency trends improved slightly through March, following the February peak.

In parallel, cost of risk improved by 400 basis points to 6% from 10% in the fourth quarter, supporting our view that credit costs peaked at the end of last year. During the quarter, we implemented a voluntary retirement plan to further align our operating model with evolving customer behavior as activity continues to migrate towards digital and virtual channels. With 15% of employees taking the voluntary retirement plan to date and 9% at quarter end, we are well-positioned for a structurally leaner cost base going forward. Paco will discuss this initiative and its profitability impact in greater detail. The related severance charges contribute to a net loss in the quarter. Excluding this effect, the business generated net income of ARS 6.7 billion, with an adjusted return on average equity of 2.5%.

Net interest margin remained a solid 17.7%, benefiting from lower funding costs, while our CET1 ratio stood at 15.4%, reflecting a strong capital position to support future growth. At the business level, we continued executing our ecosystem strategy and cross-selling initiatives, particularly through InvertirOnline, where assets under custody reached approximately $2.7 billion, up from $2.2 billion a year ago. Cuenta Digital, launched by the bank to drive client acquisition within our ecosystem, reached a peak of approximately 13,000 new accounts in March. We also continued advancing innovation at InvertirOnline with the launch of a differentiated AI-enabled investment experience powered by Claude, allowing customers to interact with their portfolios, access market insights, and manage investment decisions through natural language.

Overall, the quarter showed clear progress, with underlying profitability turning positive in March and other operating trends continuing to improve into April. Importantly, these results reflect disciplined execution by an experienced leadership team with active asset and liability management, improving efficiency, and protecting the franchise while maintaining a clear focus on profitability. Stepping back for a moment, let me frame the external drivers behind the quarter's performance and our outlook for the rest of the year. The year began with inflation running above expectation, high rate volatility, and tight monetary conditions weighing on activity and profitability across the system. Conditions improved as the quarter progressed, with interest rates declining by March. The policy framework also continues to evolve constructively.

Fiscal discipline, reserve accumulation, higher exports, the IMF staff-level agreement, and progress on structural reform, including the recent labor and glacier laws, are improving visibility and supporting exchange rate stability. Looking ahead, policy execution will remain critical, sustaining the fiscal anchor. Continuing to normalize monetary policy and easing FX restrictions in an orderly manner will be important to preserving confidence and reducing volatility. For the banking system, a more predictable macro environment should gradually improve financial intermediation. Lower inflation and more stable rates should support graded demand, while improved visibility allows us to deploy capital selectively and continue prioritizing profitable growth and disciplined risk management. In this context, Supervielle enters the next phase from a stronger position with improving credit trends, a better funding mix, and a structurally more efficient operating platform. With that, I will turn the call over to Paco, who will discuss the key drivers.

Thank you, Patricio, and good morning, everyone. Turning to slide five, I will walk through the main operation drivers of the quarter and the actions we are taking to improve the bank's earnings profile. Starting with the balance sheet, we continue to manage the business with a prudent approach, prioritizing asset quality and profitability over volume. Soft demand in local currency lending led us to remain disciplined, while we continue to optimize our funding mix, as Mariano will discuss shortly. We also further reinforce our senior leadership team with the appointment of Juan Manuel Trupia as Chief Treasury and Global Market Officer this month, capitalizing on evolving market opportunities. Our strategy is beginning to deliver the expected results. Asset quality improved as the quarter progressed, with the delinquency levels showing signs of stabilization through March.

This was supported by collection and refinancing initiatives implemented across the branch network since last December. In parallel, cost of risk declined significantly from 4th quarter heights, reinforcing our view that we have moved past the peak of the credit cycle. We also made important progress on a structural efficiency. During the quarter, we implemented a headcount rightsizing plan to align our operational model with changing customer behavior as clients continue migrating towards digital and virtual channels. These efficiencies are the result of work we have been doing for some time to redesign the model, the service model around simple, more agile customer experiences. We scale digital and virtual service channel, centralized key processes, and improved operation discipline across the network. This allowed us to execute the plan without compromising service quality.

Together with our ongoing technology-driven transformation, these initiatives position the banks for a more efficient, scalable, and cost base. Annual savings are expected to be approximately ARS 33 billion in personal expenses, supporting a more efficient earnings profile going forward. Taken together, the quarters show clear progress. Underlying monthly earnings turned positive in March, asset quality trends improved, and momentum continued into April. With that, I will hand the call over to Mariano, who will take you through the financial results, including how these initiatives are impacting results for the quarter and our guidance for the year.

Thank you, Paco, and good day to everyone. Let's turn to slide six. We reported an attributable net loss of ARS 17 billion in the quarter, improving from the ARS 21 billion loss in the prior quarter. As evidence of improving trends, adjusted net income was ARS 6.7 billion after excluding the one-time ARS 23.8 billion in severance charges, net of income tax related to the headcount optimization plan. The main improvement came from credit costs while loan loss provisions declining around 45% sequentially, reflecting the initiatives discussed. The 2nd driver was lower underlying costs. Excluding severance charges, expenses declined 13% sequentially, reflecting lower seasonal, administrative, and personal costs. Client net financial income also improved sequentially, supported by lower funding costs.

Market-related income normalized after a strong fourth quarter, while fee income remained subdued, reflecting lagged repricing and softer activity levels at yield and asset management. In sum, the quarter show a clear improvement in underlying trends, with margins stabilizing in March and credit quality beginning to normalize. Turning to slide seven, the quarter reflects an important step in the recovery of structural earnings. On this slide, you can see the work from reported to structural net income. Excluding the extraordinary severance charges, underlying net income was ARS 6.7 billion. This voluntary retirement initiative reduced the bank ecosystem workforce by 9% or 278 employees in the quarter. On a pro forma basis, salary-related expenses would have been approximately ARS 4.6 billion lower before taxes, reflecting these reductions.

As a result, structural net income reached ARS 9.7 billion, highlighting the earnings capacity of the business on a normalized basis. Since the end of March, we have implemented an additional 192 headcount reductions, bringing total headcount down by around 15% across the bank ecosystem. This positions us for structurally lower and more efficient cost base going forward. Turning to Slide eight. Total loans declined 5.6% sequentially, reflecting first quarter seasonality, subdued credit demand in local currency, and our continued focus on disciplined risk-adjusted origination. Retail balances declined sequentially, consistent with our cautious underwriting approach amid the still elevated delinquency levels, while corporate balances remained relatively resilient, supported by U.S. dollar loans, which expanded 13% in original currency, although peso appreciation decreased balances translated from dollar to pesos.

As credit conditions continue to stabilize, our objective remains to gradually resume growth while maintaining a balanced and profitable portfolio mix. Moving on to asset quality on slides nine. The NPL ratio stood at 5.6% at quarter end, up from 5% in December, reflecting the lagged impact of prior credit stress. Importantly, the NPL ratio peaked in February and then improved in March, with early signs of stabilization across key portfolios. Net cost of risk declined significantly to 6% in the quarter from 10.4% in the fourth quarter, reflecting the moderation in new inflows and the impact of our collection and refinancing initiatives. These actions, implemented since December and focused on both individual and SME clients, helped contain migration into more advanced delinquency buckets.

While we remain cautious, current trends reinforce our view that credit costs peaked in the fourth quarter of 2025, with asset quality now moving into a more stable phase. Turning to slide 10. We continued to improve the quality of our funding base. Total deposits declined 4.7% sequentially as we deliberately reduced higher cost wholesale peso funding. Year-over-year, retail and commercial deposits increased 22% in real terms, supported by stronger primary relationships and our remunerated account value proposition. Checking account balances declined low single digits, while time deposits and savings accounts grew 26% and 47% respectively. As a result, our mix improved with lower reliance on wholesale funding and a higher contribution from retail and commercial deposits. Turning to slide 11. Net financial income reached ARS 255 billion, declining 5% sequentially.

Client net financial income improved, supported by lower funding costs and a lower and more stable rate environment in March, while market-related net financial income normalized after a strong fourth quarter. Net interest margin stood at 17.7% compared to 18.8% in full Q25, reflecting rate volatility during most of the period. Importantly, margins improved toward March as volatility eased. Turning to our outlook. We are updating our 2026 expectations to reflect a more normalized operating environment and the trends we observed during the first quarter. We now expect real loan growth between 20% and 25% compared to our prior guidance of 25%-30%. Growth is expected to remain skewed toward corporate lending in the near term, while retail credit should gradually recover alongside improvements in economic activity, employment, and disposable income.

Deposits are now expected to expand between 10%-15%, below our prior guidance of 20%-25%, reflecting continuity of restricted monetary policy. On asset quality, we now expect the NPL ratio to range between 5%-5.5% during 2026. Importantly, cost of risk improved meaningfully in the first quarter, and we now expect full year net cost of risk between 5.3%-5.8% compared to our prior guidance of 5.5%-6%. We also now expect NIM to range between 15%-18%, above our prior guidance of 14%-16%. This reflects a higher expected inflation path, which should keep nominal rates and asset yields above our previous assumptions. At the same time, reserve requirements remain elevated, and the temporary shift toward corporate lending may continue to weigh on margins.

Turning to the next slide. We now expect net fee income growth broadly in line with inflation compared to our prior guidance of 5% real growth. This reflects continued growth in banking fees offset by softer asset management fees and brokerage activity normalizing against a strong 2025 comparison base. Adjusted operating expenses are expected to decline between 2% and 4%, driven by lower expenses at the banking ecosystem in real terms. This reflects the impact of a larger than originally expected headcount rightsizing and continued cost discipline, partially offset by investments supporting accelerated growth at IOL. We now expect reported ROE for the year of between 2% and 6% compared to our prior range of 4%-9%.

The lower range reflects the impact of the headcount optimization plan implemented during the first quarter, while the upper end continues to reflect upside from macro normalization, easing monitoring conditions, and stronger credit growth. Excluding extraordinary severance charges related to the efficiency program, adjusted ROE is expected to range between 6%-10%. Note this range does not yet reflect the benefit of approximately ARS 33 billion in annualized salary savings, which should support the underlying cost structure over time. Lastly, we continue to expect CET1 to end the year between 11% and 13% unchanged from our prior guidance, supporting disciplined growth while maintaining a strong capital position. This concludes our prepared remarks. We are now opening the floor for Q&A.

Thank you, Mariano. At this time, we will be conducting the question and answer session. As a reminder, to ask a question, you need to be connected to a Zoom platform. To ask a question, please press the Raise Your Hand button and press it again to withdraw. You can also send your questions in written form via the Q&A box. The first question comes from Ernesto Gabilondo from Bank of America. Hello. Good morning, Ernesto. Please go ahead.

Thank you, Ana. Good morning, Patricio, Paco, and Mariano, Diego. Thanks for the opportunity to ask questions. My first question will be on your reserve coverage ratio. When looking to this ratio is around 100%, which I think it's a little bit low, given that 30% of the loan book is integrated by consumer loans, and especially when compared to other Latin American banks in the region. Just wondering how should we expect the evolution of your reserve coverage ratio? I will make my next question.

We feel that we have an appropriate coverage ratio at this moment. I think this view is also among our peers. This reflects particularly a cautious view on retail origination for the time being focused on corporate origination with export-led industries and we feel comfortable. Of course if things change we will apply another policy. Do you want to add on that?

Yes. Hi, Ernesto. Thank you for your question. I will add to what Patricio mentioned, also that, although as we saw during the presentation that we have a 37% of retail loans of our total portfolio, 10% of that is, mortgages. It's not a consumer finance. On mortgages, we have a much lower statistics of probability of default or given default. That also explains part why our expected loss models require less provisions on that part of the portfolio. The other, 63, almost two-thirds of the portfolio is commercial, where we also normally require less provision. Nonetheless, we are above the 100%. That's also above the industry average.

Thank you. For example, in terms of cost to risk, it already peaked in the fourth quarter, and I believe the NPL ratio peaked in this first quarter. If you improve the NPL ratio throughout the year, probably that should allow the reserve coverage ratio also to go up. Am I right with that assumption?

regard, yes, because of the loan growth, when we grow in real terms, the NPL ratio will tend to dilute, and the coverage ratio should increase. It will also depend on the mix of the portfolio. If we grow more on the retail side, that will also require higher provisions. If we continue to have more weight on the commercial side, we will be closer and not much above the 100%.

Perfect. My second question is on regulation. Deposit requirements have been lowered, but continue to be high when compared to other countries. How do you see the government willing to reduce even more the requirement? Is there any other deregulation we should have in mind?

Well, in terms of, I think it's a good, very good question. Of course, this government, in addition to the fiscal anchor, they also are restrictive in their monetary policy, and to make sure that the anti-inflation program succeeds. It's still pending the easing of peso-denominated reserve requirements, which are, which I think they are still are the highest in the last 20 years.

I expect that when particularly this is my opinion when the government secures the refinancing of their of the bonds in the international market through these the guarantees that they are willing they are taking they are negotiating with the multilaterals I think that they will start to be softer in terms of peso reserve requirements. This is my opinion so I am optimistic on that. In addition to that there is also the on the agenda something extremely important which is the lifting of the foreign exchange controls for particularly for corporations. That is a constraint today on investment and capital locations for corporations.

Finally, another important agenda that I think is very important is unlocking the Social Security Sustainability Fund, particularly as a long-term funding vehicle for supporting mortgage securitization. That would be a big help for construction, for the value of properties, and I think it's, I mean, it's an agenda that is important. In summary, what we need is less restrictive monetary policy, deeper capital market, and a fully functioning foreign exchange framework.

Oh, thank you very much, Patricio. Very helpful. Just a last question from my side related to the RIGI projects. Is there any update you can provide us, and how is Supervielle expecting to participate in financing SMEs or suppliers related to these projects?

I think the RIGI project is going very well and there I think I understand that the full pipeline today is ARS 100 billion. Only one part of that has been already approved. The impact for us, for Banco Supervielle, is very important because what we do we concentrate on financing the value chain of dynamic industries such as energy and mining. Definitely this will help all the value chain, and we will be there.

Excellent. Thank you very much.

Thank you, Ernesto, for your question. Our next question comes from Diego Marquez with JP Morgan. Hello. Good morning, Diego. Please go ahead.

Good morning, Patricio, Paco, Mariano. Thanks for the space for questions. Just a quick question regarding the right sizing initiative and headcount reduction that we saw this quarter, just to get a sense of what impact we can expect in the coming quarters, and if we can expect a normalization and to what extent. If I can, a second question, just following up on what Ernesto was saying on NPLs. You mentioned a slight improvement in March compared to February. Just if you could give us a bit of more color on what you're seeing, maybe through April and what's driving this stabilization, if we could expect, you know, first Q to be the peak for this. Thank you.

regarding your first question, basically, this voluntary retirement program was designed to run mainly from March through May. the estimated annual savings so far are to be approximately 33 billion. this the impact of all the technology and the change of customer behavior basically is allowing the review of the infrastructure in order to basically make sure that we strengthen the operating platform, we improve scalability and we align the cost base of with the way the clients interact with the bank today. this is an agenda that you have to expect that we will be looking on a continuing basis.

We do not expect another program of similar magnitude during 2026.

We call rightsizing because we don't see any impact in our NPLs or quality service or whatever. That why we call it rightsizing because we don't see any impact in the organization. Going to the second part of the

Yes. Also let me add regarding the impact for the incoming quarters, as we said during the presentation, we expect ARS 33 billion savings annualized, and when this program is fully executed. We did the most part in the first quarter, but we are executing also in April and part in May. These 33 billion annualized savings cost, which is about ARS 8 billion per quarter, will be fully captured in the third and fourth quarter of this year.

also with this rightsizing, we are preparing the bank for the next month, for the future, no? for the competition, for the new value proposition, more digital, for the customers, so we are preparing them, the bank for the future.

The ARS 33 billion is what we have already achieved in terms of annual savings by now, by today. Okay?

Exactly.

Exactly. Regarding the second question, what we expect for NPLs now is that they will be quite stable. The range of 5.5-5.7 and decreasing by the end of the year, where we have a guidance of 5%-5.5% NPL ratio. What we did to achieve this improvement we saw between February and March, and now we've seen it more stabilized is first with what we saw the peak in interest rates that impacted so negatively on delinquency across the industry. We were much more stringent on rate origination particularly in unsecured loans on the retail side. So that helped us stop delinquency and that's why we are seeing first an important reduction in the cost of risk.

The NPL has a lag, so that's why it increased quarter-over-quarter, but we think it reached a peak or close to a peak. Also very important was a collection initiative that we launched in between December and February, where we put effort across all our channels, including our commercial network, to contain delinquency and to increase to improve collections. That gave very good results that translated in this decrease of NPL month-over-month in March.

I think, Diego, that the NPL figures shows that we are implemented certain initiatives in order to control the risk. Yes, the NPLs also. I think we did different initiatives against the market.

Yes. That includes, and not only, of course, all the efforts to contact clients and try to I mean, making an effort to collect all the.

All the branches.

all is due. Also, we have been implementing structural changes in the way we collect to make sure that basically the quality of collection remains over for the future. This is very important. Better procedures, better way of working, this is very important. Of course, this requires technology behind, this is already an agenda, an important agenda.

No, very clear. Thank you. Pleasure. Nice to hear you.

Thank you, Dio, for your question. Our next questions come from Arnon Shir-Hai with Citi. Hello. Good morning, Arnon.

Hello. Good morning. Thanks for the opportunity. My question is in line with Diego's question, related to NPLs and collections. We saw a stabilization recently, but to what extent is this improvement dependent on the collection initiatives rather than genuinely recovering environment repayment capacity? Thank you.

I think it's both effects from having more restrictive origination policies, as I said, mainly on the unsecured retail portfolio, but also the collection efforts. Collection efforts were not only introduced to collect past due loans, but also to prevent loans that were performing, but according to measures or indicators that we have, we saw customers at a risk of being past due and generating new delinquency. These efforts were intended to prevent going those loans into delinquency or early delinquency turning into NPLs later. I think it's both effects.

Si.

Okay, great. Thank you.

Thank you, Hernán.

Yeah.

We have a question from Pedro Offenhenden with Latin Securities. Hello. Good morning, Pedro.

Hi, everyone. Good morning. Thank you for taking my question. I wanted to ask for some color on Invertir Online this quarter. What were the drivers of the decline in revenue and net income with customers growing and so assets under custody only modestly down?

thank you, Pedro, for your question. I think this quarter reflects a trend we've been experiencing in the business for the last year. a year ago, a meaningful part of our brokerage activity was FX driven. this of course brought activity, transaction, volume and revenue. after the lifting of the restrictions in the FX market in April, part of this or a significant part of this disappear. what is important is that despite this shift or change, we managed to keep growing our accounts. We now have 2.3 million accounts open in Invertir Online, and as you mentioned, activity and transactions are roughly the same that we had when the restrictions were in place. also, the AUC grew 25% year-over-year in dollar terms.

In the same period, we grew our asset management business from USD 120 million in AUM to USD 350 million AUM. What we saw was a shift from the nature of the activity from our customers from one very intensive in FX transactions to a more stable investment operations. For us, what we did last year and been doing last time and we're going to do ahead is monetize these customers, this broad base of customers, in a more recurring and resilient way and not dependent on market distortions. We are adding more investment products for our customers, especially for retail customers. We are also improving our advisory relationships, and we are focusing on development of our high-value customers activities or segments.

Something that we accomplished in the last year was what is growing the AUC I mentioned before was if you look which segments explain the growth the high-value customer affluent customers and the ones that are advisor grew twice as fast than the AUC of retail customers. Retails were growing too so we were executing well on that front. The share of the revenues that was explained by these affluent customers was close to 10-11% last year and now it's 20% and it's growing.

I believe that if we look at the experience in other countries and other markets, when the macroeconomic environment normalize and the FX rate is more stable, the interest rates are low and stable, and also the inflation is under control, the capital market expands. I think we have a good strategy to capitalize on that, and we believe and we are optimistic that in Argentina this will happen. The capital markets is still in its infancy. We are, I think, well-positioned to capitalize on the development that it will have in the future as we have in other countries as an example.

Thank you, Diego. Super clear. Just if I may, a quick follow-up on the bank. There was a bit of movement on deposits this quarter. Could you give us some color on the increase in public sector deposits and savings account? How should we expect the deposit mix going forward?

Well, in terms of funding, as you know, the government is pursuing a constrained monetary policy. I think basically now they are also aware that volatility in rates is harmful. The dollar deposits continue to grow at this point, although maybe at a slower rate than in the first quarter. We are already at record levels in the past 20 years. I think that the policy, the strategy we started last April of remunerating accounts selectively for certain classes of individuals corporations is having a very good effect, and it's already we already see the results. we need this will grow over time because basically what it helps us is to attract funding for individuals and in affluent individuals and corporations, and also build primary relationships. looking forward, peso constraints particularly will continue with this government policy to exist. I don't know if you're aware, but the peso to loan deposit in the system is very high at this point. in order to have the industry grow in terms of funding loans, we need to see the growth in peso deposits.

I think this is related to the I think to the success of the stabilization program to the government securing the external financing for their debts and therefore allowing for more monetization of pesos in the country which will fund deposits and fund loans.

Perfect. Patricio, thank you.

Thank you, Pedro, for both questions. We have a question from Camila Acevedo with UBS. Hello. Good morning, Camila. Thank you also for your question.

Hi, everyone. Good morning. I would like to follow up on previous questions on the headcount rightsizing plan. Excluding these extraordinary changes and also, given your medium-term goal of accelerating ROE, reaching high single digits or low double-digit ROE by year-end, what specific levers, other than this, the plan, will drive the acceleration in the coming quarters? I also have another question, if I may, related to the expansion of your presence in key industrial hubs in the country focused on oil and gas and mining, right? What is the pipeline for corporates in these sectors, and how do you expect the agreement with the U.S. to impact your corporate deal flow? Thanks.

Okay. I think basically the first question relates to the process to grow in terms of return on equity. Do you want to explain that?

Exactly. Thank you, Camila, for your question. The main drivers of the ROE improvement for incoming quarters and the following year, I will mention, first, of course, the efficiency achieved in headcount reduction that we explained well in detail. Second, improvement in asset quality, which we also talked about. Stabilization of loan loss provisions will also lead us to foster loan growth also on the retail side, which now we are very stringent. In order to achieve higher ROE, we want to resume growth on both the commercial and the retail side of the loan book.

Right now we are growing on the commercial side, both in pesos and dollars, but we want to grow also, when we think that the moment is appropriate on the retail side. That is the third point, and the fourth is growth in fees. We want to grow the banking net service fee income, but also in Banorte online, which Diego explained well in detail before, and on asset management. Those are the key line items I would say.

We are changing our mix in cost of funds. That the main focus for Juan Manuel Trupia, the recently appointment as Chief of Treasury. We are implementing new initiatives in term of new value proposition, new products, basically for the lending size. We are communicating in the next weeks, a strategic alliance with a big car factory sales in order to sell cars, with a huge alliance with us. The personal loan size. Now we are selling the new.

Cohort.

Cohort. The new sales since February are showing good results in term of delinquency. We are in the next weeks we will increasing the personal loan sales in order to capture more spread and obviously more revenues. Add in your comments, Mario. Regarding your second question, see, we have a clear focus and we always said it that we want to concentrate our the financing of the value chains of dynamic industries. That includes precisely oil and gas and mining. We have in the past two years opened selective branches in particular points where- We want to deliver service, but most important, most importantly, we have on the credit side we have specialized people that are looking on the oil industry. They and we have a team which is dedicated to the oil industry.

also we have presence in Añelo.

Exactly this. Exactly. We have presence in Añelo. We have presence in also in mining areas in San Juan. Basically we have the infrastructure, we have the team, we have the drive, we have the funding. The funding is particularly dollar funding because this is related with all these companies they are looking for dollar funding. This is precisely what we do. We are very optimistic, and this will not change with any change of government. I mean, this is something, a secular growth that is in Argentina. That is a fantastic opportunity for the banking industry.

You can mention the ON that we launch on Tuesday, the ON USD MEP.

Yeah. We, I mean, we are tapping, of course, a particular opportunities to attract low-cost funding. For instance, we last week, we sold in the market a bond, a one-year bond at with a very low cost of.

3.25.

3.5%.

ARS 20 million.

Basically we are looking, tapping into, all this funding, pool base, in order to make sure that we have what is necessary to deliver to our clients.

Okay.

I hope I have answered your question.

Yes, yes. All perfect.

Yeah, it's perfect. Thanks a lot.

Thank you, Camila.

Thank you.

Okay. I think we can go to some of the written questions in the Q&A. I had some maybe it were already, I think in terms of NPL and NIM, I think we already answered those. Regarding maybe the announced 9% headcount reduction or 15, how much annual savings do you expect this to generate? I think it's already answered, ARS 33 billion pesos. This question maybe, and do you plan to reinvest any of these savings into technology or other strategic initiatives?

No.

Uh-

No, those will be savings that will impact the bottom line.

Exactly.

Actually.

We have some others. Well, no. Go back to the previous one, Federico T. Cevero from ATCap, I think. Should we expect additional non-recurring structuring charges throughout the year? How will this impact your full year return on equity?

Sí in what Mariano already said. Return on equity guidance stands at a wide range.

Sí.

Eh-

Overall

What the key assumptions may be among those. I think there is another question asking more or less the same, Mariano.

Yes. Regarding the ROE guidance, it has a wide range, mainly due to economic monetary policy from the central bank that we can see throughout the second part of the year. If we have an easing of the monetary policy, that will allow deposits to grow faster, that will fuel loan growth, as Patricio also explained. That's the main driver. That will also help interest rates keep going down or at a stable range, also help the delinquency to be contained and PS to grow. That's the upside we see. The downside would be that this restricted monetary policy keeps throughout all year.

That's the lower and the higher part of the ROE range. It's important to highlight that we give an adjusted ROE without the impact of the retirement plan costs and the reported ROE guidance that includes it. The range is for both, the explanation is for both the same. It's important also to highlight that in the reported ROE we include the cost of the retirement plan both what has already been incurred as of March 31st and what we expect to incur in the second quarter.

We have another question from Ricardo Cavanagh with Itaú. Hello, good morning, Ricardo.

Hi. Hello, good morning, all. Well, thanks for this quite interesting conference call. What I'm seeing in the market is that corporates are issuing debt at very low spreads compared to the sovereign. Of course, on a lower sovereign spread would come in hand with much better conditions for banks. My question is, would you imagine under any scenario the prospects of sovereign risk premium compressing over, let's say, the next six to twelve months?

Well, I think, definitely, what, for instance, yesterday there was a very successful debt emission by that's the city of Buenos Aires, and over I think it was six times over subscribed, and with rates in the region of 7% for I think it's the tenure was

10 years

10 years. I think this is a very good sign. It was a very good timing because after Fitch announcement but in my opinion it will impact on the sovereign risk. I cannot say exactly how much but I think it will impact because definitely this is not a private company. This is a state. There's a state within Argentina the Capital Federal that is getting funds at 7%. I think definitely this will impact on the sovereign risk.

In addition, if the government succeeds in refinancing all the what is due in, on bonds on 2026 and 2027 with guarantees from multilaterals, this will also give more tranquility and help, you know, compress the sovereigns. This is my opinion.

Uh, well-

I'm sorry, Ricardo.

Sorry.

No, go ahead.

No, well, thanks. Thanks for that answer, and Patricio, I have a question for you regarding if these times that we are living in Argentina reminds you of any additional time, in particular in the past, where the banking sector faces certain issues and also certain opportunities, no? That is my question.

Well,

Given your long track record in the industry.

No, thank you. I think, of course, we can refer back to the convertibility, because the convertibility was also a stabilization program, very successful in the first five, six years. That stabilization program was tremendously transformational of Argentina, also of the financial industry. You can see it. We saw at that time an increase, I think, of loans to GDP up to 25%, so it grew a lot. You see the type of potential that a financial industry has when you have a successful stabilization program. I do not buy into the fact that we will have a, you know, very international inflation rates, in the next 12 month.

I think stabilizations if you see Israel, Uruguay, Chile, they take a few years, maybe up to 10 years. The trend is there, and definitely would have an impact on the growth of the financial industry. Just only look at one figure. For instance, mortgages to GDP is 1% of GDP here, and in Chile it's 15x that. We have a lot of agendas on the financial industry to capitalize with a stabilization program. We need to see, of course, that this goes on with the next government and also that the entire political spectrum also buys into the fiscal anchor that this is very important.

I expect that eventually they will do because this is gonna be a winning theme for elections. Okay.

Okay. Thank you all very much. Thank you.

Thank you.

I think there's a question I would like to work to answer there, which is regarding the acceleration.

Yes. I was going to ask that.

Okay.

It's repeat investor. Can you accelerate-

Transformation

How can you accelerate your transformation?

Can you accelerate-

to a fintech-like business model like Revolut or Nubank?

Okay. First of all, these are you're talking of two great financial companies best in class and I think the way forward for us is first of all to make sure that we have an agenda of literally I would say radically diminishing the cost to serve of individual clients. This is an agenda that Paco is pursuing and will continue to pursue over the next few years. I'm talking of unit economics. I mean we wanna make sure that every individual that works with the bank has very low cost to serve compatible with the revenue we get from these active customers. That's my first part of the question.

of course, with that you need to continue working on technology. On the second part is also it is very important that we in our case are working with clusters, not like a universal bank for agenda. We're working with clusters, and the clusters are for us at this stage, working, making sure that we have good value propositions for salary accounts, good value propositions for senior citizens, and good value propositions for investor type of or affluent clients. Those affluent clients, we are capturing them through a cross-sell, let's say strategy with InvertirOnline that is a very successful fintech, by the way, the largest in the country, and it's growing.

It's growing particularly the focus today is grow on high value clients, as Diego explained just before, which includes affluent individuals, corporations and IFAs. The second part is we wanna make sure that Banco Supervielle is very strong on enterprises because this is not the focus of Revolut or Nu. This is so or even Mercado Pago. We want to focus on the value chain of dynamic industries. This is gonna be a way to defend and grow for the financial industry and particularly for us.

Well, I think we reached the end of today's Q&A session and conference call. Thank you for joining us today. Thank you. We appreciate all your questions and your interest in our company. We look forward to meeting more of you over the coming months and providing financial and business updates next quarter. Maybe there were some questions on the Q&A box that we can go through after the call. Thank you all of you for joining.

Good morning, welcome to Grupo Supervielle's fourth quarter 2025 earnings call. I'm Ana Bartesaghi, treasurer and IRO. Today's conference call is being recorded. For the Q&A session, please ensure your full name appears on Zoom. You can ask questions by voice or through the Q&A box. Speaking today are Patricio Supervielle, our Chairman and CEO, and Mariano Biglia, our CFO. Gustavo Manriquez, Banco Supervielle CEO, and Diego Pizzulli, CEO of Invertir Online, will also be available during the Q&A session. Before we begin, please note this call may include forward-looking statements. Please refer to our earnings release and SEC filing for further details.

Thank you, Ana. Good morning, everyone, and thank you for joining us today. In the Q4, we delivered results within our guidance range and positioned the balance sheet for industry recovery. The period was marked by elevated system-wide credit stress, which we were not immune to. However, in several key areas, we outperformed the industry. Let me walk you through the key drivers of our quarter results. First, loan growth continued to outperform the industry. Total loans grew 8% sequentially and 37% year-over-year. Growth was led by corporates, which expanded 25% quarter-over-quarter and now represent 63% of the portfolio. Retail balances declined sequentially as we prioritized risk-adjusted returns and tightened underwriting in response to the more volatile environment. Second, asset quality reflect the peak of the stress cycle.

The NPL ratio increased to 5%, consistent with industry strengths, rapid loan growth since 2024, and the significantly restrictive monetary conditions early in the year. Cost of risk reached the upper end of our guidance range, also reflecting updated macroeconomic assumptions under IFRS 9. Third, funding remained resilient despite strategic deleveraging. Total deposits declined sequentially as we reduce wholesale institutional funding to optimize the balance sheet. In contrast, core transactional balances remain resilient. US dollar deposits increased 42% year-over-year, gaining 60 basis points of market share, while remunerated accounts continued gaining traction among payroll and SME clients. Fourth, we reported an attributable net loss of ARS 19.5 billion, narrowing significantly from the Q3 loss. The improvement reflected margin recovery and strict cost control, despite elevated cost of risk based on updated macro assumptions and system-wide credit stress.

Encouragingly, NIM rebounded sequentially, supported by lower funding costs and better investment portfolio yields, while personnel expenses declined 6% sequentially. Importantly, CET1 strengthened to 15.4%, up 220 basis points quarter-over-quarter, preserving flexibility for 2026 growth. In sum, fourth Q25 was a transition quarter marked by strong loan growth, peak cost of risk, margin recovery, and solid capital. Let me now turn to the broader environment. The Q4 marked the peak of an exceptionally tight monetary policy, followed by early signs of normalization after the midterm elections. Leading up to the elections, high real interest rates and elevated reserve requirements significantly constrained liquidity across the financial system. While these measures helped stabilize the exchange rate and contain inflation, they weighed on margins, credit demand, and asset quality. Following the October elections, conditions began to improve.

The strengthened legislative mandate reinforced the government's reform agenda. Since then, we have observed declining interest rates, gradually improving liquidity, and a recovery in sovereign bond prices. While reserve requirements remain elevated, they have started to ease. Looking into 2026, the foundation for financial recovery is in place. Fiscal discipline continues, FX reserve accumulation supports stability, disinflation should allow nominal rates to decline. As monetary conditions normalize, we expect economic activity to recover gradually, creating the basis for renewed credit expansion. Policy execution will remain critical. Maintaining disinflation, normalizing monetary conditions, and advancing FX liberalization in an orderly manner are essential to consolidating recovery.

If that path is maintained, we believe it should translate into lower volatility, more stable funding conditions, and greater predictability for businesses and households. In that environment, a disciplined and well-organized banking system will play a central role, and we believe Supervielle is well-positioned to participate in that expansion. Let me briefly close with strategy. We continue executing on the roadmap presented last year, centered on profitable growth, targeted segments, and ecosystem integration. At the core is a customer-centric and technology-enabled model. At the bank, our purpose is clear: to accompany customers in their daily lives with simple and agile financial experiences. That purpose guide the evolution of the App Supervielle as a true financial hub, integrating payments, savings, investments, and services into a unified experience. More than 70% of transactions are digital, reinforcing both engagement and operating efficiency.

Our AI-powered WhatsApp interactions and the integration of the Tienda Supervielle with Mercado Libre expand distribution while preserving our tech and touch model. The remunerated account in pesos and US dollars for payroll and SME accounts continue to strengthen our funding base, deepen primary relationships, and increase client balances. Adoption has been solid, reinforcing the quality and stability of our deposit mix. Integration between the bank and IOL is accelerating. Cross-selling initiatives are bringing high-value brokerage clients into the banking platform, while offering our banking base seamless access to investment products. At IOL, our strategic focus is clear. As Argentina leading retail digital broker, IOL operates a scalable technology-driven platform that allow us to grow assets and revenues with strong operating leverage.

We see a significant opportunity in the development of the Argentina's domestic capital market, which remains at an early stage relative to the size of the economy and the financial savings potential. As macro conditions normalize, we expect deeper financial intermediation and greater participation in investment products. To capture that opportunity, we are focusing more on affluent clients, corporations, and IFAs, segments that allow us to accelerate growth in assets under custody while enhancing the quality and stability of our revenue mix. Our objective is not only to grow accounts, but to scale assets under custody in a disciplined and profitable way, leveraging our digital capabilities, ecosystem integration with the bank, and a differentiated product offering across local and international markets. Looking ahead, our priorities are aligned with Argentina's normalization cycle.

At the bank, we are positioned to capture the next credit expansion as monetary conditions normalize and liquidity requirements ease. Supported by a strong capital base and disciplined risk management, we will scale corporate lending across the value chains of dynamic industries and selectively expand retail credit as consumer confidence strengthens. At the same time, we will continue reinforcing the App Supervielle as a core financial hub of our ecosystem, driving engagement, efficiency, and operating leverage. At IOL, the opportunity is equally structural. As inflation declines and risk appetite returns, Argentina's domestic capital market has significant room to expand. Across both platforms, AI is becoming a transversal capability, enhancing productivity, optimizing processes, and elevating the client experience. With that, I will turn the call over to Mariano to review our financial performance in greater detail.

Thank you, Patricio. Good day to everyone. Let's turn to slide six. We reported an attributable net loss of nearly ARS 20 billion in the Q4, improving materially from the ARS 55 billion loss in the prior quarter. November marked a turning point, with declining rates supporting better margins toward year-end. Client-led financial income increased 21% sequentially, driven by lower funding costs combined with higher loan volumes and yields, despite a greater share of commercial loans in the mix. Market-related net financial income improved by ARS 85 billion sequentially, reflecting lower funding costs and improved spreading results as sovereign bond prices recovered and investment portfolio yields normalized. Inflation adjustment increased 10%. Net fee income rose modestly sequentially, supported by brokerage activity. Personnel, administrative, and D&A increased 6% sequentially, partially reflecting seasonal factors and commercial initiatives.

For the full year, however, expenses declined 9% in real terms, confirming structural efficiency gains. Loan loss provisions increased 75% sequentially, reflecting higher system-wide delinquency and, to a lesser extent, updated macroeconomic assumptions within our ECL framework. This was the primary driver of the quarterly loss. Turning to the loan portfolio. Loans increased 8% sequentially, outperforming 2% system growth and 37% year-over-year, in line with the industry. Commercial lending drove expansion up 25% sequentially and 64% year-over-year, representing 63% of the portfolio. Growth was concentrated in working capital and export-related sectors where risk-adjusted returns remain attractive. Retail loans declined 4% sequentially and increased 8% year-over-year, reflecting stricter underwriting standards and deliberate moderation in origination amid elevated rates and higher system-wide delinquency.

Our goal remains to return to a more balanced retail corporate mix as credit conditions stabilize. Turning to asset quality, the NPL ratio increased to 5% from 3.9% in the prior quarter, roughly in line with industry trends, reflecting higher delinquency levels amid system-wide credit stress and the seasoning of prior retail growth. Net cost of risk rose to 10.4% in the quarter. For the full year, net cost of risk was 6.2%. Coverage remained sound at 112%. Importantly, trends began improving toward year-end. December and January trends reflect the outcome of our collection and refinancing initiatives at the branch level, targeting individual and SME customers, reducing migration into advanced delinquency buckets, and showing moderation in net cost of risk.

While we remain cautious, current indicators suggest the Q4 likely marked the peak in provisioning under current assumptions. Moving to deposits, deliberate balance sheet optimization resulted in a 6% sequential decline in total deposits, particularly in higher cost wholesale institutional funding, as we actively adjusted our liability mix to improve funding quality and reduce cost volatility. By contrast, core transactional balances increased significantly, with checking accounts up 39% and retail savings accounts rising 29%, supported by December seasonality and the continued traction of our remunerated account strategy. Year-over-year, retail and commercial deposits increased 17% in real terms, reflecting stronger primary relationships and funding stability. Turning to page 10, net financial income reached ARS 246 billion in the quarter, up 82% sequentially and 1% year-over-year, recovering from extraordinary short-term pressures in the prior quarter.

This was driven mainly by three factors. First, peso cost of funds declined approximately 400 basis points as deposits repriced following the drop in market rates, coupled with lower wholesale funding. Second, market-related NIM improved materially, rising to 26% from 11% in the prior quarter, driven by bond price recovery and a less volatile rate environment. Third, loan portfolio NIM improved 1.7 percentage points to 16.9% sequentially as we repriced the credit book. Let's now turn to the next slide to review our perspectives for the year. We expect real growth in loans between 25% and 30%, led by corporate lending as financial intermediation normalizes. Retail credit is expected to progressively regain momentum alongside improvement in economic activity, employment, and disposable income. Under current regulations, peso-denominated loans are expected to grow faster than dollar loans.

Deposits are projected to expand between 20% and 25%, supported by stronger client relationships. In our base case, peso deposits are expected to lead growth, while the recent implementation of the tax amnesty law provides additional upside potential for $ balances. For asset quality, we expect the NPL ratio to range between 5% and 6% for the year, with a temporary peak in Q1 2026 reflecting the lagged effects of last year's volatility. Underlying trends are stabilizing. Cost of risk is projected between 6% and 6.5%, consistent with normalization. NIM is expected to range between 14% and 16%. While interest rate volatility and reserve requirements remain high, improving funding dynamics and disciplined asset pricing should support margins. A temporary shift toward corporate lending may moderate margins, but positions the balance sheet for sustainable growth.

Turning to slide 10, we expect net fee income to expand around 5% in real terms, driven by banking and brokerage activity. Structural operating expenses are anticipated to remain broadly stable in real terms, reflecting sustained cost discipline and headcount efficiencies, partially offset by depreciation and higher taxable revenues. In terms of profitability, we project full year ROE guidance of 4%-9% range, reflecting upside opportunities from macro improvements and the relaxation of restrictive monetary policies, stronger credit growth, the increased opportunity to expand affluent clients in IOL, and additional efficiency opportunities at the bank. We expect our ROE to improve sequentially as margins recover and operating leverage builds. We anticipate ending the year with a CET1 ratio of between 11% and 13%. This concludes our prepared remarks. We are now opening the floor for Q&A.

Thank you, Mariano. At this time, we will be conducting the Q&A session. As a reminder, to ask a question, you need to be connected to a Zoom platform. To ask a question, please press the Raise Your Hand button. Press it again to withdraw your question. You can also send your questions in written form via the Q&A box. We will ask you to limit yourself to one question and a follow-up, and then you can ask again. The first question comes from Brian Flores with Citi. Hello. Good morning, Brian. Please go ahead.

Hi, team. Good morning. Thank you for the opportunity. I have a question on capital. Your core CET1 ratio rose above 15% in the quarter, we saw, as you mentioned, it was aided by the election recovery and some shifts in the investment portfolio. Given that you mentioned 2026 is slated for renewed expansion in lending, I just wanted to check with you how much of this capital buffer is truly structural and how much do you think it's a temporary reflection of, you know, the higher real rates and the lower risk-weighted asset density? Just wanted to understand if we could see this ratio revert towards the 13% levels we saw now that the growth re-accelerates. Also, if I may, if you are planning on changing anything regarding your dividend policy here on capital. Thank you.

Thank you, Brian, for your question. Regarding the capital levels, as you said, we ended the year with above 15% of tier one capital ratio. With that, we can fund the growth expected for 2026. According to our guidance, by the end of the year, the capital ratio will be in a range between 11% and 13%. The increase in the capital ratio, compared to September, is in part related to off-balance sheet losses, because as of September, our investment portfolio had lower market prices that set an off-balance sheet loss that was reduced during the Q4. That has an impact on deferred tax assets, which are deduction for capital.

Disappearing the, this deduction, or most of it, that's why we could increase our capital, seeing that the result for the quarter was negative, and we had a loan growth in the quarter. From now on, that those extraordinary movements in off-balance sheet results were mostly neutralized, so we don't expect big changes in that part of the composition of capital during 2026. The capital level will be set by reinvestment of utilities for profits and the loan growth that we now foresee between 25% and 30% in real terms for the year. So those are the capital dynamics on the tier one ratio that we see for 2026.

Regarding to dividends, as we had a negative result in 2025, we're not expecting to pay dividends in 2026. Profits during the year will be reinvested, and only in 2027 we will decide, or the shareholders will decide, on profits of 2026. So far, for the next shareholders meeting, we are not recommending any dividend distribution.

So-

Brian, basically, sorry, to complement. We believe that, with our current capital base-

It is sufficient to fund loan growth, projected for 2026, while remaining comfortably between the range of CET1 that we announced.

No, perfect. If I just follow up, Patricio, Mariano, and team, we have this sense speaking with investors that maybe there are limited catalysts for more enthusiasm in maybe the Argentine bank space. Just wanted to, of course, Patricio, I think you mentioned in your remarks maybe the FX liberalization, maybe the reforms. If you could elaborate a bit on what do you think could maybe help a bit on the market sentiment, right? Particularly for the banking segment, I think it would be great color here.

Well, I think that there are various catalysts. Let me first start with the state of the nation address that was given by President Milei on Sunday. We have seen a very confident president talking to the chamber and also stating that he's going to go for a extremely reformist agenda, a very ambitious reformist agenda, which I think this is very good because it encompasses a lot of institutional building for Argentina. I think this is positive.

What I think, besides all the laws that have either been passed, like labor reform or probably, I think in the next, in the near future, the glaciers law, which is gonna help for investment in the mining industry. I think that it will be essential if the government at a certain point decides to go to the top international markets. That would be a very strong signal for refinancing the treasury, but at the same time impacting on the domestic rates, and eventually lowering liquidity requirements.

At this stage, the government is securing a restrictive monetary policy, because they want to build reserves, they don't want to have a volatility on the dollar. I think it's all connected in a way. That by itself would be one of the factors instilling confidence in the banking system. At the same time, with all these laws passed, particularly the system reform, and what is going on in the dynamic industries, I think it will improve the job market and eventually this will also help instill more confidence. I understand your question and I am positive, we need to wait.

No, super useful. Thank you, team.

Thank you, Brian. The next questions comes from Pedro Leduc with Itaú. Hello, good morning, Pedro. Please go ahead.

Hi, good morning. Morning, Ana and team. Thank you so much for hosting the call and taking our question. First on your loan book growth outlook for the year. You also grew a lot loans in the Q4, I'm trying to reconcile it with the still staggering pace of NPLs that we are seeing. You even mentioned in the guidance that it will tick up again in the Q1. Q4 again was the peak of provisions. Just trying to reconcile everything that you're still seeing NPLs going up, you want to grow loan book at a pretty fast pace, you feel like provisions are, you know, have peaked.

Trying to put all of this together and maybe trying to really understand on the provision side, if it wasn't, if it weren't more prudent for you to increase coverage along the year as you exactly want to keep growing on a fast pace. Thank you.

Mariano will complement, but what we have seen is a clear improvement in collection trends in December. This continued in January, and this continued in February. I think that there is a peak. Of course, the NPL ratio reflects prior period delinquencies and but collection, as I said, performance has improved. Most importantly, we see the early signs, of course, of risk stabilization. I don't know if you want to complement on.

Yes. As Patricio explained, loan loss provisions, particularly for the retail segment, they are charged in advance of NPLs. When we see delinquency in a certain product, mainly in retail products, we make most of the charge before-

A credit gets to 90 days past due, which is the moment where we recognize it as a non-performing loan. In the Q4, we saw a peak in loan loss provisions that most probably will translate into a peak of NPLs in the Q1. The actions that Patricia explains that we were taking, and we engaged also during December and January, the branch network in adding efforts, collection efforts to contain delinquency, to resume payments in individuals and smaller SMEs. That is translated into early indicators of improvements. That will most probably reduce charges in the Q1 of 2026 and have the NPLs of the Q1 as a peak and reduce since then.

That's very clear position, Gustavo. If I may, I wanna follow up regarding your ROE guidance of 4%-9%. I really like the slide that you put there, you know, the main assumptions behind it. It's very useful. As the year starts, however, Q1, do you think we already be in the positive territory for ROEs or not just yet?

In terms of ROEs, we believe that we can expect sequential improvements throughout 2026. We saw as we mentioned, just recently, just now in Q4 2025, we saw recovery in NIM. The cost of risk stabilization that we see in the collections, which makes us construct with a constructive view on the regularization of credit costs. Interest rate volatility that we have seen in the first two months of the year, they have decreased. This should help enhance margin and profitability. We expect our ROE basically to move into double digits by the end of 2026. As we continue expanding the loan book, we look forward to higher margin lending, higher margin retail lending. With sustained cost discipline, we should see the pass back to high teens ROEs by late 2027 and 2028.

That's very clear, Patricia. Thank you. It's very useful.

Thank you, Pedro. The next questions come from Pedro Oheguy, with Latin Securities. Hello, good morning, Pedro.

Good morning. Thank you for taking my call. My question, I wanted to ask on the, on the progress release, you highlighted a decision to deleverage the balance sheet during the quarter. Should we view this as a temporary adjusting to response to volatility, or can we see it again moving forward?

Yes, thank you Pedro for your question. These are mainly tactical movements because the reduction in the balance sheet size is related to wholesale deposits. Where on the other hand, we have reserve requirements and treasury securities. These are tactical movements. It's not that, you know, what we expect for the rest of the year. When we see opportunities, we can expand our balance sheet in order to improve profitability. I think there is a more structural trend behind what we mentioned, which is a tactical move. And that relates to the strong growth we see in remunerated payroll and SME accounts from clients who activated these accounts.

This mostly consists of new balances and not just simply money that was there and not being remunerated. The funds, they come from either from mutual funds or for individuals from digital wallets. This is helping us to improve and increase a stable source of funding. I wanna stress this is very important for us acquiring principality with our clients.

Okay. Super clear. Thank you.

Thank you, Pedro. The next question comes from, I saw, Carlos, from Marcos Ceri with Allaria. Hello, good morning, Marcos.

Good morning. Thank you for the presentation. My question is if you expect to lower non-cost deposits to keep growing in the quarter?

Can you, can you repeat the question? I didn't understand, sorry.

Yes. we saw that low cost deposits had a growth towards the end of the quarter. we want to know if you expect that trend to continue in this Q1 of 2026.

This is our focus. The focus is basically, of course, there is a seasonality in the Q4. The focus is to have the, what we call the CASA deposits, which is Current Account and Savings Account, to continue growing in 2026. We have a very strong focus on that, and this is gonna help us improve our quality of funding. Thank you.

Okay, thank you. Thank you.

Thank you. Pedro, I see your hand again. You have another question?

I did. It was more related to IOL InvertirOnline. Here we had a very nice performance as I, as I'm seeing it, especially on the bottom line, 8.1 billion Argentine pesos. This operationally, assets under management, active customers also trending very well. I see that you increased the headcount here. Maybe just walk us over, I know, some of the initiatives that's undertaking there, what drove this quarter's profits upward, and maybe a glimpse of what we should expect from IOL in 2026? Thank you.

Yeah, I will defer this to Diego. Only saying that, in this market, the is a nascent market. We've seen over the last few years high inflation and, but with declining inflation, there will be more risk appetite for investors.

Yes, thank you, Pedro, for your question. Many things were in place in last quarter that are going on this year also. We started to focus more on affluent clients. We believe that with the normalization in Argentina, this will be the highest valuable customers we can develop. We are focusing our efforts in building not only products for them, but also advisors that can handle the growing number of customers we have in our wealth management business, also in SMEs and IFAs.

That was part of the switch we saw or the trend you saw in Q4 lines going on this Q1 and will be the trend we are focusing on for 2026, 2027, and also 2028. We believe that the normalization in Argentina will open a lot of opportunities for us and for our business in regarding the high value customers. Regarding the retail customers, of course, IOL is the leader in Argentina. We have 2,100,000 accounts. We have a great UX, and we make experience of operating our platform very straightforward for our customers. It's very easy for them to operate.

Last year there were some opportune trade trails that arised, and we were there for our customers to execute, like, some FX transactions in the market. Also, Cauciones, that was a product that was very high demand last year. I believe our platform allowed retail customers to operate easy, and that's why they made us the leader in operating retail.

Very good and much success there in 2026.

Thank you.

Thank you, Pedro.

Sorry. Let me complement something else about IOL is that asset management is a business that is starting to appear important in IOL InvertirOnline. It already represent 10% of the brokerage fee revenues. They are launching, they already have their proprietary funds. They just launched the third fund, very successful. A few weeks ago, already almost $30 million in deposits. It's a peso fund. Also the first fund they launched, it is a dollar fund, is the third largest in the country, and this is quite amazing. I believe that we have a very strong franchise. Sorry.

No. Good. Thank you so much for that.

Thank you, Pedro. We have a question from Carlos Gomez-Lopez with HSBC. Hello, good morning, Carlos.

Hello, good morning. I hope you can hear me.

Yes, we can.

Thank you very much. I wanted to ask first, around, I remember around this time last year, we had high growth, and you had a contraction of spreads. I would like to know how spreads, both for corporates and for individuals, are evolving right now, in light of the NPLs that we have had. Second, we're already in March, the middle of March. How is deposit growth and loan growth going so far? Because if you look at the aggregate figures, there's barely any expansion, and it seems a bit challenging to get to the growth targets for both deposits and loans that you put in your guidance. Thank you.

Hi, Carlos. Thank you for your question. Regarding spreads, we don't see contractions in spreads so far. We have all the spreads both on corporates and retail. Only regarding NPLs is that we are growing more on the corporate side than on the retail side. In fact, this gave us a composition of the loan portfolio with higher weight of corporate loans. We are not reducing spreads. That's in pesos and in dollars. In fact, we see that for longer term loans, there are higher spreads, although this is still a small portion of the portfolio because most of the commercial portfolio is in pesos and is for working capital.

We are seeing some room to grow in longer term, which has higher spreads. Regarding the evolution of loans and deposits during the Q1, the first months of the Q1, we see a good evolution as Patricia explained before. Again, there is some seasonality, that in December it increases not only loans, but also savings accounts and current accounts. Aside of that, we continue with the trends which we saw in the Q4. Still we are being very prudent on the retail portfolio side. As I also explained before, we may have an active account movement, increasing our wholesale deposits.

If I can follow up on on the spreads, the reality is that this second half of the year has been very challenging for the system as a whole. The system as whole has barely been able to make money even in the Q4. Which makes you wonder, I mean, are the spreads, are they quite in Argentina, given the level of NPLs and the level of provisions? Is the system profitable, or do you need to see an adjustment? If we need to see more growth, I mean, that would be problematic. It would mean that as things are today, the banks are not making money.

Well, I mean, this has to do of course with NIMs, and NIMs, they depend on interest rate volatility, inflation. We just mentioned that interest rate volatility, we started to see a decline. That would be important to have to preserve good margins. With inflation going down, government is a very strong statement saying that inflation will go down by the second half of the year. That will help in decrease the interest rates, nominal interest rates. We could expect eventually a flexibilization or in terms of our reserve requirements.

If there is an increase, as the government is looking for, of peso demand, that will fuel deposits, and that will allow expanding, the balance sheet and, of course, So more leverage for the banking system, and this will be a positive effect for the return on equity. That's the way, the way forward. That's a positive way forward, and this is what we're looking for.

Okay. Thank you so much.

Thank you, Carlos. We have, our next questions comes from Kaio Prato with UBS. Hello, good morning, Kaio. How are you?

Hi, Ana. Good morning. Good morning, everyone. Thanks for the opportunity. I just have one follow-up here on my side, please. Is on the retail credit portfolio. We saw, as you mentioned, some contraction sequentially on the portfolio again, I think. In your slide, you mentioned about the retail segment resuming gradually, as far as I'm understood. Just wondering if you can provide us a brief update about the retail segment at the system level as well. How are you seeing, first your credit models after this uptick on NPLs? The overall consumer demand and the overall banking appetite for this segment, not only from you, but also from other banks, and especially fintechs that might gain some traction at this current environment. Would be good to have an overview on the segment.

When do you think it should start to recover, at least on your side, as well? Thank you.

Thank you. Please, Kaio. Yes, I think as you said, on the Q1, saw a contraction on the retail portfolio, and we aim to grow gradually into 2026, only when we see improvement of conditions to grow in this segment. Far, as we said, we see better early indicators, collections for this segment. What will be very important is the level of activity, the decrease in the volatility of interest rates that we saw it in July and October and up to some extent continued in January.

This is very important in order to resume activity across all the industries in Argentina, because right now it is very uneven between very dynamic industries and industries that still have low levels of activity. That will allow us to resume growth.

Oh, one or two things. Obviously, our main focus is obviously lending money to our customers, customer base. We adjusted our credit models in order to do that. Basically, our focus is our inaudible customers. Also, as Mariano mentioned before, we have all the retail branches, all the retail segment, focused on collections. We have an excellent results in order to do that. It's different things that as we do in the past. We maintain our focus, we adjust our models, and we want to keep in track our existing customers. Also, we are looking for new customer with new credit models in order to increase our credit and our retail credit book.

Basically, we are changing some things in order to be more effective, obviously get more profitability for that product.

In terms of looking forward for 2026, retail acceleration will depend on continued disinflation, reduction in nominal rates, improved consumer confidence, particularly on the job market and disposable income, and eventually lower liquidity requirements. Fintechs are, yes, they are on the screen. We are conscious and this, they will start loaning to certain segments. We understand that, and it's good competition.

Okay, that's clear. Thank you very much. Thank you.

Thank you, Kaio. We have a couple of questions in the Q&A box. One is from Mat￭as Catardi with Allaria. He says, "If the government allows banks to lend in $ to borrowers without $ link income, how would Correo position itself competitively? Would $ lending improve spreads and return on equity structurally, or would it mainly shift balance sheet composition?" Go.

I think that this is an ongoing discussion in the financial system, because there is a lot of liquidity in dollars that are not being used by banks. We believe that we have a cautious approach. Currency mismatch continues to be a risk. We need a fiscal anchor for quite a time, and eventually also central bank independence, a state agenda for the entire political spectrum, but we're not there yet. Still, we have a selective approach, and we would be open to basically lend top-tier companies that have good protections and so on. We are looking for, and if the regulations change, we will go for selective opportunities.

The current regulations allow to lend dollars because you have the deposits base in order to. You can lend dollars to the exports chain. If you have loans or loans from external.

Financing.

financing, you can lend. Actually, you can lend dollars to the companies.

Not with deposits, but yes, with the rest of the-

Not from the customer deposits. Exactly. We have a selective approach on that.

We have a couple of questions coming from Ernesto Gabilondo with Bofa. Let me read some of them. We have a couple of minutes, maybe further ones that I think we have not answered yet. The deposit requirement is expected to decline from 50% to 45% by the end of March. Is there any further timeline to continue reducing this requirement to improve basic liquid? Or does management believe the Milei administration will maintain a restricted monetary policy to preserve fiscal surplus and manage FX stability ahead of the 2027 presidential election?

We don't have any news about it.

Only until the end of March.

I don't know. I don't know.

That's the only thing we have. No, it's because it's the regulation is maturing-

Okay.

the reduction with,

Yes.

Which was,

It will end also.

Set up with securities. That's the only thing.

We will probably continue with the same.

We believe that it will be, in fact, Milei in the state of the nation Address, he mentioned that they will continue to maintain a restrictive monetary policy. This is dynamic. They need to see if it's too much a hindrance for economic activity, and if they are more at ease with the building of foreign reserves, which frankly, they are doing a very good job, maybe they will be less restrictive.

Our

I think the bias will be restrictive.

Yes. Our base case scenario for the guidance or embedding the guidance is without any assumption of further.

Exactly.

with everybody.

This is important. We are very fortunate. Very important.

Yes. Agreed.

They have been, they will be an upside.

Yes. I think the first one was already in terms of asset quality, NPLs, cost of risk. I think Mariano walked through that. Assumption behind guidance, I think it's in the presentation, but I don't know, Mariano, if you want to go quickly, and this is the last question we do have.

Yes. The assumptions, the macroeconomic assumptions we have in our guidance is inflation of 22.4%, a GDP growth of 3.7%, at a rate of 1,750 ARS per USD by the end of 2026.

Thank you all of you for participating. I think this is the last question. The earnings call today comes to an end. We appreciate your interest in our company, and we look forward to meeting more of you over the coming months and providing financial and business updates next quarter. In the interim, we remain available to answer any questions, I'm sorry, that you may have. Have a nice day.

Good morning, and welcome to Grupo Supervielle's Third Quarter 2025 Earnings Call. I'm Ana Bartesaghi, Treasurer and IRO. Today's conference call is being recorded. [Operator Instructions] Speaking today are Patricio Supervielle, our chairman and CEO; and Mariano Biglia, our CFO. We're also pleased to welcome Alejandro Catterberg, President of Poliarquía Consultores, one of Argentina's leading political analysts, who will briefly share his perspectives on the post-election political and reform outlook. Gustavo Paco Manriquez, Banco Supervielle's CEO; and Diego Pizzulli, CEO of InvertirOnline, will also be available during the Q&A session. Before we begin, please note this call may include forward looking statements. Please refer to our earnings release and SEC filings for further details.

Ana. Good morning, everyone, and thank you for joining us today. Let me begin with a broader macro perspective, which is quite encouraging. Following the recent midterm elections, Argentina is entering a new era. The path towards normalization and reform is gradually taking shape, and the financial system is poised to play a critical role in enabling this transition. We see the expansion of credit and a more dynamic banking sector as essential drivers of sustained economic recovery and inclusive growth. In this new environment, we are committed to returning to deliver profitability and sustain long-term value. And we are doing so supported by strategic initiatives that continue to unlock the full value of our franchise. While we are optimistic about the future, the most recent quarter presented some challenges. Systemic pressures and a very tight monetary policy characterized by unsustainably high real interest rates and historic reserve requirements ahead of the elections had a severe impact on economic activity and particularly the entire banking sector. This dynamic significantly compressed financial margins and constrained lending capacity. As a result, we recorded a net loss of ARS 50.3 billion, in third quarter 2025. Encouragingly, we are now beginning to see early signs of stabilization. Post-election confidence is improving, interest rates have declined sharply with room for additional reduction and monetary conditions are slowly easing. As we consider what these early improvements may signal for the broader environment, Alejandro Catterberg will briefly discuss the political landscape and what's ahead for the government reform agenda. But first, let me quickly walk you through a few highlights from the quarter on the following slide. Starting with loan growth, which remains solid, up 8% in real terms, slightly ahead of the system. Growth was led by the corporate segment, while retail declined slightly as we further tightened origination standards. Asset quality weakened as expected with the NPL ratio rising to 3.9%, mainly driven by the retail side. However, our NPL ratio -- share of individuals remains below our retail loan share, highlighting our focus on payroll and pension customers. On the funding side, deposit growth was strong, up 15% quarter-on-quarter in real terms and over 40% year-on-year. Dollar deposits climbed to another record high, up 31% sequentially. Our remunerated account strategy continues to gain traction and helping deepen client relationships. Profitability was most impacted, mainly due to margin compression and a higher cost of risk. Partially mitigating this, we maintain a tight control on cost, which declined 2% quarter-on-quarter and 12% year-to-date in real terms. We maintain a sound capital base to support growth as monetary policy continues to ease and loan demand resumes. Our CET1 ratio reached 13.2% at quarter end and rose to 14.5% in October, supported by lower deferred asset tax deductions. We are on track with executing our strategy, scaling our SuperApp, enhancing customer engagement and expanding cross-sell opportunities, particularly at [ Yole ], where we saw another strong quarter of volume and fee growth. While the quarter had its challenges, we are focused on controlling what we can control and continue to invest in our business to further advance our competitive position and ensuring long-term success. With that, I'll hand it over to Mariano to go deeper into our financial performance and perspectives.

Thank you, Patricio, and good day to all. Our third quarter results were heavily impacted by temporary macro and regulatory headwinds, which drove a 43% sequential decline in net financial income. With 1-day interest rates increasing to a peak of over 90% and 150% when adjusted by reserve requirements, funding costs increased by ARS 56 billion. Deposit rates adjusted almost immediately, while loan repricing lags due to longer duration, creating a temporary squeeze on spreads. Additionally, local market volatility ahead of the midterm elections impacted bond prices, resulting in weaker investment portfolio yields. In parallel, the Central Bank raised minimum reserve requirements by over 23 percentage points and moved compliance from a monthly average to a daily basis, further tightening liquidity, which had a negative impact of nearly ARS 21 billion. Lastly, the sharp rise in real interest rates generated a negative spread on our UVA mortgage portfolio, which impacted financial margin by close to ARS 18 billion. As a result, our peso NIM declined to 11.7% and total NIM fell to 10.8%, down 1,100 basis points and 1,000 basis points, respectively, quarter-over-quarter. Let's now turn to the next slide to review our 2025 -- turning to Slide 5. We are resetting our expectations for full year 2025. We now anticipate real loan growth of between 35% to 40%, led by corporate lending with retail gradually resuming growth as disposable income improves. Deposits are forecast to grow 30% to 35% with further share gains in U.S. dollar-denominated deposit balances. Regarding asset quality, we now expect an NPL ratio between 4.7% to 5.1%, reflecting asset quality trends among consumers and the result of the more challenging environment in recent months. Consequently, net cost of risk is now projected at 5.8% to 6.3%. NIM is now anticipated between 15% to 18% as high interest rates and reserve requirements through late October weighed on 4Q results. Turning to Slide 6. We now forecast net fee income growth of 5% in real terms. We are reinforcing our focus on operational efficiencies, including reductions in headcount and non-staff expenses. We now expect operating expenses in real terms to decline 8% to 10%. We now expect full-year ROE to range between negative 5% and 0%. Lastly, we anticipate ending the year with a CET1 ratio between 12.5% and 13.5%. Looking ahead, we intend to provide the 2026 preliminary outlook of key variables early next year, once there is greater clarity around reserve requirements, liquidity conditions, economic activity and the broader macroeconomic framework. Additional details on our quarterly performance and outlook are available in the appendix of our earnings presentation. This concludes our prepared remarks. We are pleased to welcome Alejandro Catterberg for a brief overview of Argentina's political outlook before we move to Q&A.

Thank you. Thank you for the invitation, Patricio, Ana. Thank you for having me here. Thank you, people for joining. My idea is just to give a brief analysis of what happened or what the election give us and what are the scenarios that we should start thinking from now on for Argentina. I would like to make basically 4 points. And then I don't know if we have time for Q&A. Happy to answer. Number one is that after a year of huge volatility, uncertainty, a big number of self-inflicted mistakes and damage by the government, it ended up quite positive for the government. Of course, as we all know, the election end up being better than expected a few weeks or months before the election, probably worse than what the government could have got if they decided to follow a different strategy and path by the beginning of the year. But that is in the past. But basically, with the result of the election, the government had a huge opportunity to begin the second stage of their administration with a lot of -- in control, in political control and with huge opportunities in front of them. A few numbers of trends had been confirmed by what happened this year and especially in the elections. Number one, it's something that some of you heard me before saying is that we have a confirmation that we have a huge change in the political cycle. The political cycle that lasts for 20 years and that was basically dominated by the Kirchner and the other hand of the same coin Macri was over in 2023. This election cycle basically confirmed that. We no longer had Juntos por el Cambio. All of the parties that were part from Juntos por el Cambio suffered huge defeats or very bad electoral results. The radical party performed or got less than 1% at the national state. They lost a huge number of seats in the Congress. Coalición Cívica led by Elisa Carrió, they had extremely bad results. They lost 4 of the seats they control in the House. The PRO party in the provinces that they run outside La Libertad Avanza, they performed very badly. Clearly, that idea that we have, and I've been saying that there was before and after 2023 has been consolidated with this electoral cycle. We are seeing the implosion of the political parties at the national level or the traditional political parties. We are seeing the implosion and the disappearance and the loss of influence of the leaders that dominate Argentina over the last 20 years. I'm talking about Mauricio Macri and Cristina Kirchner. We are seeing a huge fragmentation and atomization of politics in Argentina. As a consequences of all of that, we are seeing a greater role from the governors and the provinces. The governors and the provinces are becoming the main players besides, of course, La Libertad Avanza and Javier Milei. And that is changing the Argentina economy and politics, and we should -- and I believe this trend will continue, and we are moving forward to a different organization of politics with a much more fragmented distribution of power with the governors and the provinces becoming more -- having a higher degree of autonomy, less constrained by the national political leaders. And of course, that has correlated with some economic trends that we are having here in Argentina with this or many of these provinces starting to receive investments in the extractive industries for the first time in their history. And finally, as a consequence of all of this, we are seeing a consolidation of Javier Milei and La Libertad Avanza and especially the decisions that the President took after the victory. The changes within the government that the President made after the victory clearly sends the signal that he is concentrating most of the power that somehow he had delegated in other advisers like Guillermo Francos, Santiago Caputo. And the key post in the government is being fulfilled by Karina Milei people and Javier Milei himself. Also that is the broader picture of the things and the trends we have seen after the election. Number three, going to the Congress that we're going to see from December 10 in a few days from now and the agenda that is coming, you have probably read this, but there was a huge change and some positive surprises, especially in the Senate because all of the tight race of -- most of the tight race end up being on the favor of La Libertad Avanza. So La Libertad Avanza end up getting 3 extra Senators that better than what we thought and the Peronism end up losing 3 extra Senators out of the expectation. So the Peronists went from 34 Senators to 28. That is a key piece of information, guys, because the Senate has always been the most difficult part of the political system in Argentina to go through reforms. The Peronist has always been traditionally dominated by the Peronist because the Peronist traditionally dominate the provinces and the small provinces. Since the Peronist are losing the provinces, as I said before, are fading away, that translates into the Senate and the number of seats that the Peronist is now controlling the Senate is no longer the majority. And at some point, they may even lose the first minority. So it opened the door for the Senate to approve reforms. La Libertad Avanza until today has 6 Senators plus 9 from the PRO, 15 in total. They go from 6 to 21. The PRO go from 9 to 5. So they go from 15 to 26. They need to get 11 Senators to get the majority. And basically, those 11 Senators are very easy to reach. They need to make agreements with number of Governors that are willing to collaborate with the government and with -- and are willing to vote for many of the reforms. There is a, how do you call, the chair game, in which now the government has more chairs than -- there are more governors than chairs. So the governor will have the incentives to collaborate. And I don't find any difficulty. So I don't expect any difficulty for the government to be able to gather a majority in the Senate during the summer in which they're going to be discussing the reforms. In the House, the picture is quite similar. La Libertad Avanza has moved from 44 to 91 plus 18 from the PRO. So there are only 20 seats away from having the majority in the House, and there is 46 seats in the hands of the governors who they could easily reach agreements to get to that number. So the reform seasons will start in a few weeks from now. The government will be able to approve for the first time in the administration, their budget. So like Milei and La Libertad Avanza run the country the last 2 years without a budget. Next year, we will have a budget being approved by the Congress. And a big number of reforms will be discussed. Basically some labor reforms, some tax reforms, some other reforms regarding, for example, criminal policies or judicial things or many other aspects, many of the things that were left behind in the [ buses law ] last year are going to be put it back on the table. Other issues like the Glacier Law will probably be discussed and there is a high probability that will be approved that is critical for the mining industry because basically, they will send the decisions regarding Glacier's policy to the provinces of each province decided what to do with that. And on top of that, we have other reforms coming, institutional reforms that will be very important. The most important of all, the government will have a new chance to complete the Supreme Court and to nominate some new judges into the Supreme Court. So I do expect that this or most of this reform will be approved during the summer. I don't know if one of them or the other will be a fully game changer. At some point, I think they are relevant and they change and increased productivity in the long term in Argentina. But also what happens with the economic policies and the normalization of the economy, interest rates and all of the stuff are as relevant as the reforms coming from the Congress. Finally, my last comment is that I have received many questions from clients or from investors like you guys saying, well, listen, Ale, I have saw this picture before, I have saw this movie before. In 2017, Macri won the midterm selection with almost the same amount of support and votes that Milei got and almost exactly in the same provinces that Milei won last month. So we all know what happened with Macri a few months after he won the midterm election. And I have to say that I find some differences this time with the previous time. And most of the differences, I think, plays on the favor of Javier Milei or that the chance that these times work it out better. On the economic side, clearly, by this time, Milei has done the dirty work and the fiscal adjustment is already done. Mauricio Macri got to the midterm elections without having done the fiscal adjustment, and he was forced to do it after the 2018 crisis. The adjustment in relative prices clearly has been probably better under -- or has moved faster under Milei than what Macri was able to do by 2017. We have a good emerging markets environment right now. Macri, 2 months after winning the midterm election faced one of the toughest drought in the agricultural sector, while Milei is going to face one of the greatest harvest in 2 or 3 months from now. Macri by this time has used all of the markets or has, how you say, consume all of the access to the market. Milei has not been able to go back to the markets. They will go back to the market probably starting next year. By this time, Macri had an energy deficit of more than $5 billion. Argentina now because of how Vaca Muerta is producing has a surplus of energy account by more than $7 billion. That is on the economic side. On the political side, clearly, Milei is facing a weaker Peronism and a much weaker Cristina Kirchnerism that Macri was facing. Milei has a very favorable Senate, much more favorable than what Macri had, even though the House was more easy for Macri than for Milei. But on the whole, I think the chances to move forward with the reforms should be easier now for Milei than what it was for Macri after the 2017 election. We have governors who are -- who have a more important role and have the incentive to collaborate with the government because basically, they don't have another place to go right now. We have an administration and probably a President that is much more committed into pushing the reforms and going deeper with surplus than what Macri was. Macri and Milei still had very similar public opinion support by the time. We finished our November survey and the trust and confidence index that I do for Universidad Di Tella increased 16% this month. Milei approval rating went up 6 points this month. So basically, we are going back to the numbers that we have seen around June, July this year before the whole deterioration process started. We have not reached the highest point that Milei was able to achieve by the beginning of 2025. But clearly, after the election, Milei recovered almost all of the deterioration that he suffered during the last 3 or 4 months of huge uncertainty. And on top of all of that, besides the economy and the political considerations, we have something that could be a game changer or it is a game changer, and that is the full support in economical terms and in political terms of the U.S. Government and President Trump. So all of that context, in my opinion, creates the conditions to make the story or the probabilities of Milei to move forward and have a third year of administration clearly better than what Mauricio Macri had as a third year. So for me, Argentina and the government has a huge opportunity in front of us. I hope that the government and the President had learned from the mistakes he made in the last few months and some of the mistakes he made in the first year of his administration. I hope that this time, he pushed for good judges to go to the Supreme Court. I hope that this time, he's able to -- or he delivered on the promises and the agreement that he made with the governors. I hope that this time, he's able to change part of his narrative style and the way he communicate and his constant aggression against some of the independent media. But to put it in a simple ways, I think it's up to the government and up to Milei not to lose this opportunity. So with that said, Ana, thank you very much.

Thank you, Alejandro. At this time, we are conducting the Q&A session. [Operator Instructions] The first question comes from Ernesto Gabilondo with Bank of America.

My first question will be on your loan growth expectations. You have guided between 35%, 40% this year. I know that you don't have a guidance for next year yet, but can you give us some color on what are your growth expectations per segment? And maybe Alejandro can also add to this question. Can you share the names and amounts of private investments announcements so far, so we can detect the potential lending activity in the different regions and sectors? And then my second question is on your ROE expectations. You have mentioned to expect an ROE between minus 5% to 0% this year. And then again, you will provide guidance next year. But any color on how should we think about the ROE next year? Just the general trends, high single digit or low double digit, I think, will be very helpful.

Ernesto, thank you for your questions. I'll take it first and then be complemented probably by Mariano. In terms of loans, loan growth this year was constrained by tight monetary conditions. But since the midterm elections, we see the first signs of a turn. Real rates are falling, reserve requirements easing and credit demand improving. In 4Q 2025 and early 2026, we see growth coming mainly from corporates and SMEs, particularly in the oil and gas chain with retail coming maybe probably later picking up in the second quarter of 2026 as rates and employment conditions improve. In terms of -- if, let's say -- all what we heard from Alejandro in terms of macro reforms and the deflation continues, we see real loan growth in 2026 reaching in the area of 30% to 40%. And that's, I think, for -- in terms of loan growth. To fund this growth, by the way, let me add that our strategy of remunerated accounts for corporates and payroll clients have been also now extended to the entire ecosystem that will -- this will strengthen our funding base. And I think it anticipates what fintechs will do when they start to play like Mercado Pago. So I think it's the right move. So in short, corporate and SME lending will lead the recovery and retail resume as of second Q '26. And we think that 2026 will be a strong year. [indiscernible] do you want to complement something on loans?

No. I think that's...

Okay. And then in terms of ROE for 2026, we have a long-term view, which is constructive and particularly so after the outcome of the midterm elections. So -- but there are several drivers that support a positive trajectory for us in terms of ROE starting in 2026 and extending beyond. The first one is the releveraging -- the gradual releveraging of banks. And this is, of course, connected to the reforms that are implemented by the government to expected improving consumer confidence, disposable income and also an increase in money demand by Argentines. And I think that we can expect also that with money demand, there will be lower liquidity requirements as of 2026, creating more room to leverage and to expand. Also, we plan -- we will be looking to international markets if conditions are there to tap debt. We are doubling down on cost controls to lift operating leverage. And we are also, as I mentioned before, advancing our key strategic initiatives such as the remunerated account now extended to the entire old ecosystems. So basically, all of this with, let's say, focus on fee growth, better asset liability management and prudent underwriting, I think will give us the way to improve ROE. Importantly, we are investing for the long term, and we are conscious that certain initiatives have longer paybacks, but they are designed to build durable earnings power for our franchise. So while the path to 15% and 20% ROE may be extended, we are building all the necessary blocks basically to -- and put it in place. And we believe that as leverage normalizes and reform takes traction, Supervielle can converge towards ROE levels in line with peers in the region.

I think I might also ask about some big initiatives that Argentina has for the next year.

The investments that -- the private investments that have been announced so far in the different regions and sectors, I think, will be very helpful.

Ernesto, I don't have the exact list of especially the mining big projects that have been going on. But clearly, when you look at the geography and the political geography of Argentina, what we are seeing is a rapid change in the economic dynamics that, that is creating. I mean provinces that has basically traditionally lived from public funds that we were receiving from federal coparticipation now has starting to receive direct investment and direct projects that are becoming a reality. So for example, provinces in the whole north, you go to Jujuy, you go to Salta, Rioja, San Juan, Catamarca with all big mining projects from silver to gold to lithium. Mendoza , who has been a province that traditionally has rejected mining because they are more concerned about the impact of mining in tourism and in the wine industry, whatever. Finally, last year, Governor Cornejo has jumped into mining and basically are starting copper projects. As you all know, we have the same -- and as Chile, and I don't know and nobody has found the reason why the Chilean side of the Los Andes could have huge reserves of copper and not the Argentinian side. So Mendoza has started. Neuquén and the south provinces of Patagonia with, of course, Vaca Muerta and the oil and gas industry. So -- and on top of that, you have the traditional all of the La Pampa region with Córdoba, Mendoza and all of the agricultural production that so far it's about to have a good impact next year. So in general terms, the extractive industries are booming, are accelerating. Many rigid projects have been approved. And I think that will have an impact that -- the way I like to analyze Argentina, especially on the political and social side is, is having an impact on the distribution of political power. And I think that trend will continue, even though we don't have Milei or we have someone is coming back, et cetera, et cetera, et cetera. And also on the long-term view, we are seeing a shift in Argentina that is starting to distribute the power that -- economic and political power that has been so concentrated in Buenos Aires and in La Pampas more to the provinces.

Sorry, let me add to Alejandro. With all these investments that are being announced by the -- all the debt emissions by the oil and gas industry, they will have -- as soon as they start being invested, all the value chains of these industries will start to move. So this will ignite growth and loan demand precisely in the value chains that we are focusing because we -- by the way, we just -- we opened recently a branch in Añelo and another branch in the -- where the ecosystem of mining in San Juan is. So even though we were present before, now we have a more direct presence and because we want to focus on that.

But let me add something on the political side. Probably one of the things that will start showing up as a concern, and I tend to believe that will start to happen next year as long as inflation demands or people worry about inflation end up vanishing away, it has gone from by far being the #1 problem to now being shared with another problem. What I tend to believe in the long term in Argentina will happen and as in many other countries, it's a labor problem. So probably what we will start seeing is demands from some sector of the society that will suffer from losing job in the unproductive industries in the suburbs of Buenos Aires City and jobs being created on the new provinces, and I don't know how labor demanded are in these industries. So if you want to -- if you ask me what consequence or what negative implications these changes could have for this government on the next government and also if you add artificial intelligence and the impact that, that will have on labor as a general and globally. Probably what we will start seeing next year or in the next -- or in the future years is that the problems and the tensions and the social tensions changes from related to inflation towards relating to employment generation.

And just a follow-up with Patricio on the ROE expectation. So you were mentioning that Supervielle is positioned for the long term, but the ROE of 15% to 20% may be extended. So considering what you posted in or what you're guiding for this year, would it be reasonable to see around a single-digit ROE next year and then moving to your medium-term target by 2027, 2028?

Mariano, do you want to answer?

Ernesto, yes, let me complement on this. I think for next year, although we haven't given guidance because we still want to see how the monetary policy, the regulation evolves after the elections. But it's reasonable to think that we will reach our medium-term target ROE for the end of next year. So for the full year, we will be on high single digits or low double digits depending on the pace on how fast the things that we need to happen, evolve. That is lower interest rates. We are already seeing that in November, which is an inflection point for interest rates. Also minimum cash requirements. We are already seeing some flexibilizations with the last regulations decreasing non-remunerated cash requirements. There's still some way to go looking forward. Cash requirements are still on 50% level for site deposits, which still extremely high. So we need that to continue easing. And then also improvement in NPLs, we think will happen next year that will allow us not only to reduce cost of risk, but to resume real growth on the retail side. And that is something that we think can happen when economic activity improves with more loose monetary policy, with economic conditions improving, not only on an average for the country, but also across industry. We know there are some industries that are still lagging in the recovery of activity and some of those industries have a lot of employment. So those dynamics should allow us to lower cost of risk, increase in retail. And again, with a lower of cash requirements, increase the weight of the loan portfolio in our balance sheet. That is what will lead us to our target for medium-term ROE. And depending on how fast that happens, we will be on lower single -- double digits or if it take more time on single -- higher single digits.

Our next question comes from Brian Flores with Citi.

I have 2 questions here. I think the first one is a bit on growth. You mentioned in the presentation that you want to achieve a more balanced loan mix between corporate and retail. You're probably prioritizing corporate, as you were mentioning the strong demand and the unlocking of a lot of pent-up demand perhaps. Just wanted to clarify if this means that corporate loans could reach around 50% of the loan mix in 2026? And also, naturally, this brings lower yields. So just wondering if we should see a recovery in risk-adjusted NIMs by the second half of 2026, perhaps? And then I'll ask my second question.

We believe that the right approach, considering also the competitive landscape of new banks coming into the country, I mean starting to work in the country, we believe that the right approach is to have a balanced approach in terms of serving enterprises, SMEs and families or individuals. Having said that, loan demand will resume as of second Q 2026 for -- we believe it will resume if -- with consumer confidence improving and better maybe disposable income for individuals. And -- but to answer your question, today, I think the balance between enterprises and Mariano will confirm that, enterprises and individuals is tilted towards enterprises, corporations. So it means more than 50%. I believe that this will continue to be the case, in my opinion, maybe the first half of 2026. And then when we see the conditions for individuals and loan demand arise -- raising again, then it will probably go back to 50%, 50-50 or maybe higher, being optimistic at the end of the fourth quarter 2026, being optimistic, maybe more retail demand, so in order to have higher NIMs. I don't know if you want to complement the question.

I think regarding the weight of corporate and retail, that is very complete. What I can add maybe is that on the corporate side, although maybe it will -- we expect it to be more balanced with retail for the end of next year. But also we can start to see maybe in the second half of the year, a change in tenors. Because remember that right now, and this is true also across the industry, almost all lending is for working capital. It's very short term. So what we could see happening next year is that we can see more loan demand for longer-term investments and not only working capital. So that will also help to these yields.

No, super clear. And then on risk-adjusted NIMs, should we think about, let's say, a U-shaped recovery by late 2026, as you mentioned, cost of risk coming down perhaps. Is this maybe a correct observation, Mariano?

Yes, I think it could be earlier than that. As you know, with the expected loss model that is pro cycle, we are already provisioning all the deterioration that -- even the early deterioration that we see in the -- particularly in the retail portfolio. So when we see conditions improving, cost of risk should decrease very fast and not only having to see an important recovery in real terms in the growth of the retail portfolio. So in that case, we should be able to see a recovery in risk-adjusted NIMs for the retail portfolio, and that will also translate into the whole portfolio maybe earlier in the year and not having to wait for the second [indiscernible].

No, super clear. And my second question is on risk management because obviously, we're all excited about the Argentina story. And I think Alejandro started saying that one of the key concerns that we receive, I think, is we have been here before. And Patricio, you mentioned a lot of optimism, right, in not only the political, but also, I would say, the economic landscape. But I just wanted to hear your thoughts on what if, right, what could happen if things do not go well, if the reserve requirements remain high? Are there any considerations by you or the Board regarding any alternatives, could be partnerships, asset sales, M&A, if the base case scenario does not pan out and we have, let's say, a less bullish scenario?

Well, yes, I mean the -- I think that the risk scenario that a lot of people are talking about is the policy that the government is having about reserves, foreign reserves. And they are -- I think there is a certain risk that, for instance, you have people -- a lot of people traveling abroad, spending money abroad because you have this sensation that is relatively cheap. And at the same time, the Central Bank is not building reserves. So well, we -- I can understand the way the reason because they have the support of the U.S.A. and so on. But eventually, things are volatile in the world, and that could potentially be a problem. I think, of course, they want to focus on inflation and make sure that rapidly inflation comes down. And this is why I think they are keeping a tight control on FX. Regarding our franchise, I think what we're doing, we are working always to improve our resiliency in terms of the way we originate the way our origination standards for individuals. We anticipated earlier than other banks that the deterioration that took place this year. So we are -- I think we are good in this. And at the same time, since Paco came -- arrived to the company, to the bank, he's implemented a complete reshuffle of the culture of the bank in order basically -- in order to become much more customer-centric and have people more accountable. So we have people now that are completely engaged, aligned and committed to going the extra mile. We are working with -- in the ecosystem -- in our ecosystem, we have a very strong company in our own ecosystem, which is InvertirOnline, which is in the verge of the next stage of InvertirOnline because they already achieved something which is quite remarkable is they are the most and by far, the biggest digital broker in the country for retail investors. This is fantastic what they did in the last 4 years. But now they are -- they will maintain this. They are very efficient, and they have the scale and the technology, but now they will go to the second stage, which is to concentrate on wealthy people, wealthier and affluent people in enterprises, in IFAs. And they have the teams to do that, the engineers, and they will invest more on that to make sure that we get fast to this stage. And this engine gives us the opportunity to do a fantastic cross-sell with -- in order to acquire bank clients. So I think we are prepared to competition. We are prepared for what is coming. And we've lived for different previous crisis and so on.

No. Also, Patricio, we are always open to make some strategic alliances. So we are open in order to define the new future for Argentina in our industry. So yes, we are open. We are analyzing a lot of them. But basically, also, we have a conversation with a huge retailers in order to make some strategic alliances. So yes, we are open. We understand the change in the transformation in the world about this industry. So yes, we are open, and we want to make a new bank, a very attractive bank. So yes, we are open for new businesses.

Maybe our next question comes from Camila Azevedo from UBS. [Operator Instructions]

I'll keep it brief. I want to comment -- I want you to address more on asset quality topics. So could you please give more color about the NPL dynamics during the quarter? Do you think that the numbers seen in the quarter was the peak? Or are you seeing any signs of peak? When should we expect it to happen in both segments? And which would be the comfortable coverage ratio level that you imagine given this context?

Well, first of all, asset quality deterioration this quarter mirrors system-wide trends as the credit cycle adjust to the macroeconomic environment. After a very unusually benign period of NPLs, low NPLs, they rose across existing and new customers, driven by pressure on disposable income and tariff adjustments and also the shift to a disinflationary environment where debt no longer erodes in real terms. This was most visible in retail. We had anticipated this deterioration because -- and a tightening origination criteria in personal auto and car loans since the beginning of the year and reinforcing collection and also client support. Unfortunately, the sharp pre-election rate hikes added further stress to -- through our individual NPL shares, but our individual NPL share in the market remains below our retail loan share. So this is showing relative resilience. We believe that these NPLs are -- going forward, I think we believe that this trend is manageable, and we expect gradual improvement as macro conditions and consumer confidence normalizes. I don't know if you want to add or, Mariano, complement.

Yes, I can just complement on the NPL expectations. Maybe we can see a peak in the fourth quarter as a rollover of early deterioration comes NPL maybe at the end or during the fourth quarter. And also when conditions improve, not only we will see NPLs decreasing, but also loan growth increasing. So that will also dilute NPLs, and we will see that number improving. But for the impact of high interest rates on economic activity in the third quarter, we still can see [indiscernible] the NPL ratio increasing in the fourth quarter. And I think that will be the peak.

Super clear. Yes, the coverage ratio, please.

And regarding the coverage ratio, as I mentioned before, we follow the expected loss models. So when NPLs are very low, coverage tends to go very high. In fact, in the past, we were above 200%. So now that those provisions are being used. So that's why we see the coverage decreasing, but it should always remain above 100% compared to NPL. So we should see it in the range of 110%, 120%.

The next questions come from Ricardo Cavanagh with Itau.

As I look into 2026, for me, it's not just another year. It has a big déjà vu of Argentina of the '90s with positive expectations for credit and credit to GDP was double where it stands. So my question would be, which are the new actions that you believe you still need to take? And which are the new risks that you think you still need to face in order to generate new results in a new and different environment? Perhaps the first question is if you agree with this possibility or with this positive outlook as well.

I think that we need to make sure that there is -- we need to make sure that we increase the leverage of the bank. This is a challenge of all banks, but in our case, it's our challenge. And I think that we will -- it's clear that savings in Argentina is still a pending issue for Argentina. The share of savings of GDP is still very low. So in order -- we need to build a bridge in order to make sure that the bank gets leveraged. And this bridge, I believe, will come in international markets. So we will be looking in order -- we will tap international debt markets if conditions arise. And flavor of this is what we already did with multilaterals where we -- 45 days ago, we got up to $270 million in terms of facilities 3 years from multilaterals because we have a focus in SMEs. So -- and another thing that I think for me, it's very interesting. I don't know whether it will happen or not. It's first in -- to try to repeat what we did in 2017, where we also tapped in peso-linked debt. This is not yet the case because there is not yet a market for peso-linked debt. But we did this in 2017. And also something that maybe for this stage is maybe a dream, but this is my dream at least. I think that if confidence is built in Argentina, then there will be a possibility of rotating assets. I mean let's say, doing originating loans and maybe sell those loans to the local capital market or maybe international markets if there is a -- this is something that could happen. And so we are always looking to this opportunity because this will be a fantastic way of growing without consuming capital.

I think we have the last questions come from Pedro Offenhenden from Latin Securities.

I had one question on how do you assess liquidity conditions in the system going forward -- in the system and in the bank going forward? And if you see liquidity as a potential constraint for great growth in 2026?

As the monetary base remains very small even in historical terms, we're already seeing a rebound in money demand after the elections. This is key, the increasing money demand. This should support system-wide deposit growth. And as confidence consolidates, we could expect that a gradual lengthening of deposit duration, that is people investing in -- more people investing in time deposits. Another thing, another issue, which is central also is the Central Bank favoring financial intermediation because as of today, around 30% to 35% of deposits of the system come from money markets. And this is not normal. And if you want -- if the Central Bank wants to, let's say, to favor credit to the private sector, then they need to go to eventually regulate differentiated reserve requirements for -- to make deposits more attractive than money market funds. And for us to also to tackle the liquidity constraints, I think we have the right strategy because the rollout of the [Foreign Language] and cash management solutions for corporates, payroll accounts and all the entire ecosystem, I think, positions us well to capture more stable and high-quality deposits. And as I said before, finally, we will try to tap the international markets if conditions arise.

Thank you, Pedro. So I think we had some in the Q&A, but I think all of them were addressed. [ Ignacio ] [indiscernible], I think all of them mainly were addressed. The rest of the KPIs in terms of guidance, we are going to provide them maybe at the beginning of the year formally. So we will have more, as Mariano mentioned, clarity in terms of what happens with requirements and rate as well. Then from Cap Securities, [indiscernible], we already discussed about NPLs. And then in terms of shares canceled, they are automatically being canceled after 3 years of being in the treasury held by the treasury. So I think by the end of the year, be this next year, 3% of the capital has been canceled and -- but not more than that. So I think with no more questions, I think we arrived to the end of the Q&A session. Thank you all for joining us. A lot of people today. We're sorry, we delayed a bit, and we know there is another call from another bank at the same time. So thank you all for joining.

I do appreciate your question. It was a difficult quarter, but it was -- I'm optimistic for 2026. And we do have the 2 -- I think the 2 best CEOs of Argentina for -- to tackle for the bank. And with Paco and Diego for InvertirOnline. So I think we -- I'm very optimistic about the future. Thank you very much.