BUENOS AIRES, Argentina–(BUSINESS WIRE)–Grupo Supervielle S.A. (NYSE:SUPV); (BASE:SUPV), (“Supervielle” or the “Company”) a universal financial services group headquartered in Argentina with a nationwide presence, provides additional information in connection with the notice received by Banco Supervielle (the “Bank”) from the Province of San Luis (the “Province”) of the Province’s decision to terminate the Financial Agent Contract that the Bank has with the Province, invoking the September 2016 amendment to such contract.
The Bank has maintained a presence in the Province of San Luis for more than 20 years. In 1996 the Bank acquired Banco de San Luis and was appointed as exclusive paying agent for the government of the Province of San Luis to provide financial agency and tax collection services to the Province and serve as payor bank for provincial government employees. This financial agent contract was renewed twice through 2021.
Today, the Bank has a strong private sector business franchise in the Province. The Bank is positioned as a universal bank providing full-service banking to individual consumers and small and medium-size companies. The Bank provides its corporate customers with a wide range of financial services and has a primary focus on infrastructure and construction projects.
As of September 30, 2016, Supervielle´s total loan portfolio was Ps. 33.264 million, of which Ps. 748 million (2%) were attributable to payroll loans to provincial employees. There were no outstanding loans to the provincial government as of that date. As of September 30, 2016, Supervielle’s consolidated total deposits were Ps 30.417 million, of which Ps. 1.690 million (4%) were deposits made by the government of the Province. Related net revenue (NII + Fees) represented approximately 4% of Supervielle´s consolidated net revenues for the first nine months of 2016.
The Bank has 298 employees, 22 branches and 3 service centers in the Province. The Bank also has 129 ATMs and self-service terminals in the Province.
Supervielle will continue analyzing the possible courses of action. The Company currently considers that its economic, financial and asset situation will not be materially affected and remains committed to continuing its presence in the Province.
Separately, in a press conference held earlier today, the Minister of Finance of the Province, Ms. Natalia Zavala Chacur, officially announced the termination of the Financial Agency Contract signed by the Province with the Bank and stated that the provincial government has indicated that it will invite banks, including Supervielle, to participate in the selection of a new financial agent.
About Grupo Supervielle S.A. (NYSE: SUPV; BCBA: SUPV)
Grupo Supervielle S.A. (“Supervielle”) is a universal financial services group located in Argentina that owns the fifth largest private domestically-owned bank in terms of assets. Headquartered in Buenos Aires, Supervielle offers retail and corporate banking, treasury, consumer finance, insurance, asset management and other products and services nationwide to a broad customer base including: individuals, small and medium-sized enterprises and medium to large-sized companies. With origins dating back to 1887, Supervielle operates through a multi-brand and multi-channel platform with a strategic national footprint. As of September 30, 2016, Supervielle had total assets of AR$44.4 billion under Argentine Banking GAAP, 325 access points and over 2 million customers. Grupo Supervielle had 363,777,615 shares outstanding and a free float of 40.3% as of September 30, 2016. For information about Grupo Supervielle, visit www.gruposupervielle.com.
Safe Harbor Statement
This press release contains certain forward-looking statements that reflect the current views and/or expectations of Grupo Supervielle and its management with respect to its performance, business and future events. We use words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “seek,” “future,” “should” and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) changes in general economic, financial, business, political, legal, social or other conditions in Argentina or elsewhere in Latin America or changes in either developed or emerging markets, (ii) changes in regional, national and international business and economic conditions, including inflation, (iii) changes in interest rates and the cost of deposits, which may, among other things, affect margins, (iv) unanticipated increases in financing or other costs or the inability to obtain additional debt or equity financing on attractive terms, which may limit our ability to fund existing operations and to finance new activities, (v) changes in government regulation, including tax and banking regulations, (vi) changes in the policies of Argentine authorities, (vii) adverse legal or regulatory disputes or proceedings, (viii) competition in banking and financial services, (ix) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of Grupo Supervielle, (x) increase in the allowances for loan losses, (xi) technological changes or an inability to implement new technologies, (xii) changes in consumer spending and saving habits, (xiii) the ability to implement our business strategy and (xiv) fluctuations in the exchange rate of the Peso. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Grupo Supervielle’s filings with the U.S. Securities and Exchange Commission (SEC) and Comision Nacional de Valores (CNV). Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. Grupo Supervielle is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.