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Buenos Aires, March 2, 2022
LETTER FROM THE CHAIRMAN
To the Shareholders:
As Chairman of the Board of Directors, I hereby submit the Annual Report of Grupo Supervielle
S.A. corresponding to the year ended December 31, 2021.
By way of introduction I would like to make an overview of the macroeconomic context in the
period under analysis.
During 2021, the world continued to be impacted by the Covid-19 pandemic that broke out in
China at the end of 2019 and its new variants that emerged throughout the year. According to
the latest estimates available from the International Monetary Fund (IMF), the world economy
expanded by 5.9%, as a result of the recovery following the crisis caused by the pandemic and
the restrictions on mobility that the different countries of the world were imposing to contain
the spread of the virus that generated the 3.5% drop in 2020. Commodities continued
recovering in 2021 and the prices of the commodities exported by Argentina grew by 20.1%
year-on-year, while the average annual increase was 39.6%. Regarding interest rates, the
Federal Reserve maintained its target throughout 2021 for a continued economic recovery,
although the acceleration of inflation in the US, which reached 7% in 2021, could trigger a
movement in interest rates in 2022.
Domestically, the macroeconomic environment in 2021 was mainly marked by the recovery
from the Covid-19 health crisis (which strongly impacted the economic level as a consequence
of the Social, Preventive and Mandatory Lockdown during 2020), and by the legislative elections
held in November.
The main factors that drove the reactivation of the economic activity were the increase in the
price of commodities, which allowed a greater supply of dollars, and, fundamentally, the
progress of the vaccination campaign as from January 2021. As a consequence, mobility was
normalized and most of the economic sectors resumed their activities on a regular basis. In this
context, the support policies deployed by the Government during the health emergency were
gradually lifted, which made it possible to reduce the public sector's financial deficit in the first
months of the year. However, in the months prior to the November 2021 legislative elections,
public spending and monetary issuance accelerated.
As for the level of economic activity, according to data published by INDEC from the Monthly
Estimator of Economic Activity, the economy averaged a growth of 10.3%, after three
continuous years in recession.
The nominal exchange rate ended 2021 at AR$ 102.75, which meant a devaluation of the peso
of approximately 22.1%. The dynamics of the exchange rate was stable under a controlled
depreciation scheme implemented by the BCRA, which was consistently below the monthly
inflation rates recorded during the year. Inflation for the year was 50.9%. Regarding monetary
policy, the monetary authority maintained interest rates at levels similar to those recorded at
the end of 2020, with the monetary policy rate standing at 38% throughout the year.
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Regarding fiscal accounts, the national public sector recorded a primary deficit of approximately
2.2% of GDP in 2021, while the financial deficit was 3.7% of GDP. These results include
extraordinary revenues both in terms of the Solidarity Contribution and the distribution of
special drawing rights made by the International Monetary Fund.
The dynamics of the financial system continued to be affected by the Covid-19 pandemic
throughout 2021 and by the regulations implemented by the Central Bank during 2020 in the
framework of the pandemic, many of which remained in place throughout the year. Continuing
with the contraction of the financial system in real terms in recent years, the ratio of total private
sector loans and deposits of the financial system to GDP remains at levels below the average
observed in other countries in the region and the world, with this ratio estimated at levels of 9%
and 16% respectively, below the levels recorded in 2020. The financial system continues to
maintain historically high levels of solvency and liquidity indicators.
Grupo Supervielle closed fiscal year 2021 with an AR$ 860 million inflation-adjusted net loss
attributable to owners of the controlling company, a AR$ 961 million comprehensive loss
attributable to owners, assets for AR$ 392,239 million, loans and other financing for AR$
157,900 million, deposits for AR$ 288,458 million and attributable net equity for AR$ 53,374
million. Return on equity was -1.6%, measured in real terms. Our results for the year were
impacted by several factors, including: low demand for credit from the private sector which is
at historic lows; increasing Central Bank regulations on volumes and pricing of bank assets and
liabilities which together have put very significant pressure on the financial margin; an increase
in 2021 in turnover tax, mainly from the City of Buenos Aires but also from other Provinces;
higher expenses incurred in accelerating our strategy to capture operating efficiencies and an
increase in loan loss provisions in IUDÚ faced with the impact of the pandemic in 2020 and the
measures adopted by the BCRA to automatically reschedule loan installment maturities.
During 2021 we made significant progress across the company towards achieving our strategic
objectives. Aiming to improve ROE and drive value creation, our strategic initiatives are focused
on six key pillars: improving customer experience, attracting new customers, advancing digital
transformation, driving efficiency, improving funding and maintaining good quality of assets.
As for Banco Supervielle, our main subsidiary, investments in innovation and digital
transformation began to show results during the year, increasing the customer base by more
than 53,000 customers to close to 1.5 million by December 2021. More than 80% of these new
customers are digital, increasing the number of digitalized customers by 32% during the year. In
relation to the loan portfolio, we increased our market share with respect to the previous year,
recovered our leadership position in the leasing market and maintained an important share in
factoring. The transformation of the bank's branch network and the adjustment of branch size,
together with larger self-service areas and virtual hubs (which allow our customers to operate
from any location and efficiently extend our reach), allowed us to reduce operating expenses.
We have also advanced our strategy to reduce the cost of funding. Our initiatives to capture a
greater proportion of our customers' disposable income and become the principal bank for more
customers evolved positively, and we continued to increase our share of demand deposits from
both retail and corporate customers.
On the other hand, we are moving forward towards the transformation of our IUDÚ subsidiary
from a face-to-face business model for sale of personal loans and credit cards to a 100% digital
banking platform that provides the widest range of digital financial services, including retail
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deposits that reduce its funding cost and seeking to attract a lower risk customer base,
leveraging on its position as a regulated financial institution.
While maintaining throughout the year the focus on asset quality, the portfolio quality ratio at
consolidated level improved to 4.3% of the non-performing portfolio at the end of December,
while the bank's portfolio ratio was 2.6%, reaching pre-pandemic levels.
The insurance segment continued to operate through Supervielle Seguros and Supervielle
Productores Asesores de Seguros. In 2021, it continued to consolidate existing insurance
businesses while expanding its product offer to include income loss, bicycle and pet insurance
policies. Continuing with the digital transformation initiated in 2020, we continued developing
technological capabilities that enhance the business in digital channels, designing and
implementing digital sales strategies and deploying the sale of auto insurance through the
bank's online banking.
SAM, our mutual fund manager, increased managed assets by 90% during the year, presenting
a behavior similar to that observed in the mutual fund industry, with an 80% growth in its
portfolio of individual customers which more than doubled the volume invested in funds as of
December 2021.
Our online broker, IOL invertironline, grew by 36% in the number of active customers reaching
110 thousand customers at the end of the year. During 2021, an average of 10,000 accounts
were opened per month, totaling 324,000 enabled accounts at the end of the year. The company
also renewed its image with a new logo. It also introduced changes in the platform to optimize
its navigation, with a more intuitive and accessible menu. Its financial education contents were
highly demanded, as they are well known for adapting to each investor profile. Within the
courses platform, an important milestone in 2021 was the launching of the school of brokers,
which enabled students to sit for an exam before the Argentine Securities and Exchange
Commission.
Likewise, in 2021 we changed the image of our payment facilitator app IUDÚ PAGO with its new
name Boldi. Through this application we offer companies and natural persons engaged in
commercial activities the possibility of charging their services and/or products through debit
and credit cards using an mPOS and a payment link.
At Grupo Supervielle we are committed to our employees, customers and communities, so as
to achieve a sustainable growth while protecting the environment and acting with social
responsibility. We integrate the sustainability strategy to our business model and promote a
responsible culture among our employees. We report on our non-financial performance in a
clear and transparent way, in connection with environmental, social and corporate governance
factors. In 2021 we defined our ESG objectives for 2022, 2023 and 2024 in each of the following
pillars: Environment, Social and Corporate Governance. In the environmental pillar, for the first
time we offset 20% of our 2020 carbon footprint. While our goal is to continue on the path of
mitigation, reducing our emissions, we offset our carbon footprint by restoring native forests.
In the Social pillar, we launched a comprehensive program to promote a diverse and inclusive
culture at work. In the Corporate Governance pillar, we continued to be part of the BYMA
Sustainability Index for the third consecutive year as a leading organization in environmental,
social, sustainable development and corporate governance matters.
Finally, to strengthen our ESG commitment, we will begin disclosing additional metrics in our
2021 Sustainability Report, in accordance with the criteria defined by the Sustainability
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Accounting Standards Board (SASB). This enhanced disclosure will expand our current
reporting under the Global Reporting Initiative to more broadly integrate ESG criteria into the
Company's strategic planning.
The outlook for the current year for Argentina offers international positive aspects that could
contribute to an improvement in the level of economic activity, although there are also some
risks associated with this recovery. In the first place, an expected improvement in world trade
and a rise in agricultural commodity prices that would keep them at high levels would have a
positive impact. However, other factors could have a negative impact, such as the expected
weak performance of the economy of Argentina's main trading partner, Brazil, together with a
possible impact on commodity prices as a result of the expected rise in international interest
rates and the risks associated with the appearance of new strains of Covid-19 that could
eventually affect the normal development of world economies. Also important, 2022 will also
be marked in Argentina by the dynamics of macroeconomic variables within the framework of
the agreement being negotiated with the International Monetary Fund.
According to economic consulting firms participating in the BCRA’s Relevamiento de
Expectativas de Mercado as of January 2022 an economic growth rate is expected for Argentina
of 3.0%, mainly as a result of the 2021 statistical drag. Likewise, the inflation rate is expected to
accelerate to 55.0% in 2022 and the nominal exchange rate is expected to end at levels of AR$
160.0, which implies a year-on-year depreciation of 58.6% and thus an acceleration in the
devaluation rate compared to 2021.
Looking ahead, the financial services industry in Argentina continues to face important
macroeconomic and regulatory challenges that go beyond this year.
Finally, I would like to especially thank our teams, suppliers, shareholders and customers, key
players of our past, present and future. To all, on behalf of the board, thank you for your support
and confidence.
Julio Patricio Supervielle
Chairman
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LIST OF OFFICERS
Board of Directors
Chairman
Julio Patricio Supervielle
First Vice-Chairman
Jorge Oscar Ramírez
Second Vice-Chairman
Emérico Alejandro Stengel
Directors
Atilio María Dell‘Oro Maini
Eduardo Pablo Braun
Laurence Nicole Mengin de Loyer
José María Orlando
Hugo Enrique Santiago Basso
Eduardo Pablo Braun and José María Orlando are “independent” directors pursuant to the
provisions established by the Rules of the Argentine Securities and Exchange Commission.
Laurence Mengin de Loyer is a Non-Independent Director pursuant to the CNV Rules while she
is an Independent Director pursuant to Rule 10A-3 of the Exchange Act.
Members of the Statutory Audit Committee
Statutory Auditors
Enrique José Barreiro
Carlos Alfredo Ojeda
María Valeria Del Bono Lonardi
Alternate Statutory Auditors
Roberto Aníbal Boggiano
Carlos Enrique Lose
Jorge Antonio Bermúdez
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Certifying Accountant for the Financial Statements for the Fiscal Year ended 12/31/2021
Santiago José Mignone (regular member)
Maria Mercedes Baño (alternate member)
Price Waterhouse & Co. S.R.L.
CEO
Julio Patricio Supervielle
Corporate Areas reporting to the CEO
CFO
Mariano Biglia
Chief of Legal Affairs and AML
Sergio Gabriel Gabai
CHRO – Chief of Human Resources
Martín Gallo
Chief Office of Technology
Sergio Mazzitello
Corporate Areas reporting to the Board of Directors
CRO
Javier Conigliaro
Head of Internal Audit
Sergio Gustavo Vázquez
Chief Compliance Officer
Moira Almar
Chief Executive Officers of Grupo Supervielle Subsidiaries
Banco Supervielle
Emérico Alejandro Stengel
IUDÚ Compañía Financiera / Tarjeta Automática / Micro Lending S.A. / Espacio Cordial de
Servicios (Consumer Segment)
Juan Martín Monteverdi
Supervielle Seguros
Diego Squartini
Supervielle Asset Management
Guillermo Guichandut
IOL invertironline
Christel Sasse
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TABLE OF CONTENTS
I. ABOUT GRUPO SUPERVIELLE ................................................................................... 9
II. MAIN INDICATORS .............................................................................................. 10
III. ANNUAL REPORT ................................................................................................ 11
A. EVOLUTION OF THE ECONOMY A ND OF THE FINANCIAL SYSTEM ...................... 11
A.1. Macroeconomic Context in 2021 ........................................................................ 11
A.2. The Financial System in 2021 .............................................................................. 17
A.3. Insurance Market ......................................................................................................... 19
A.4. The Mutual Funds Industry in 2021 .............................................................................. 20
A.5. 2022 Outlook ................................................................................................................ 22
B. EVOLUTION OF GRUPO SUPERVIELLE ........................................................................ 24
B.1. Evolution of Supervielle Ecosystem ................................................................... 24
B.2. Awards and Indexes ............................................................................................... 24
B.3. Evolution of Operations ........................................................................................ 25
B.4. Human Resources Management and Organizational Development ............................. 51
B.5. Sustainability ........................................................................................................... 61
C. BOARD OF DIRECTORS ........................................................................................................ 69
C.1. Board Committees .................................................................................................. 70
D. RISK GOVERNANCE ........................................................................................................ 77
Risk Management in Banco Supervielle ............................................................................... 78
F. DIVIDENDS PAID AND RECEIVED ......................................................................................... 91
G. ANALYSIS OF THE BALANCE SHEET AND RESULTS .................................................. 91
IV. COMPLIANCE WITH THE C ODE OF CORPORATE GOVERNANCE ................................. 99
A)
B)
C)
D)
E)
F)
G)
DUTIES OF THE BOARD ................................................................................................ 99
CHAIRMAN OF THE BOARD OF DIRECTORS AND CORPORATE SECRETARY ................ 103
BOARD COMPOSITION, APPOINTMENT AND SUCCESSION ....................................... 104
COMPENSATION ........................................................................................................ 105
CONTROL ENVIRONMENT ......................................................................................... 106
ETHICS, INTEGRITY AND COMPLIANCE ...................................................................... 108
SHAREHOLDERS AND STAKEHOLDERS ....................................................................... 112
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I. ABOUT GRUPO SUPERVIELLE
Grupo Supervielle S.A. is a corporation
[sociedad anónima] organized in Argentina
in 1979 that operates as a financial services
holding company and whose shares are
listed on and traded in Bolsas y Mercados
Argentinos (BYMA) and in the New York
Stock Exchange (NYSE) since May 19, 2016.
facilitating
transforming and
We have a history of more than 130 years in
Argentina providing financial and non-
financial services to our customers. Focused
their
on
experiences, we offer agile solutions and
adapt to permanent changes. We bring
together multiple platforms and brands
such as Banco Supervielle S.A., the 8th
largest private bank in Argentina in terms of
loans and the 11th largest in terms of public
banks; IUDÚ Compañía Financiera (IUDÚ), a
comprehensive financial services company
with a growing digital offer; Tarjeta
Automática, a distribution network that
mainly markets
in the
IUDÚ products
southern
region of Argentina; Micro
Lending (MILA), a company specialized in
the financing of car loans; Espacio Cordial
de Servicios, a marketer of retail, assistance,
services and tourism products; Supervielle
Seguros, an insurance company; Supervielle
Productores Asesores de Seguros, an
insurance
Supervielle Asset
Management, a mutual fund management
invertironline, a broker
company;
specializing in online trading; Supervielle
Agente de Negociación S.A., a trading agent
institutional and corporate
aimed at
customers; and Bolsillo Digital, a company
that provides payment solutions to retailers
broker;
IOL
centricity
with mPOS and e-wallet products through
its Boldi brand. Thus, we form a diverse
ecosystem with a shared vision where
customer
digital
transformation are the backbone. Finally,
our portfolio of companies is completed by
a company whose main activity is the
holding of stakes in the same companies of
Grupo Supervielle, Sofital S.A.F.e I.I.
and
As of December 31, 2021, our infrastructure
is supported by a strategic national
presence through 298 access points, which
include 184 bank branches, 10 bank sales
and collection centers, 79 IUDÚ Compañía
Financiera points of sale located inside
Walmart/Chango Más Supermarkets and
Hypermarkets, 20 Tarjeta Automática
branches, and 5 Mila branches (in addition
to its network of more than 500 related car
dealers). Additionally, Banco Supervielle has
a network of 450 ATMs, 230 self-service
terminals and 298 cardless and pinless
ATMs with integrated biometrics. We also
offer solutions through our digital channels
and applications developed for different
business segments, and we also offer
products and services through our Banco
Supervielle, IUDÚ and IOL invertironline
platforms, to customers located throughout
the country.
As of December 31, 2021, we had AR$
392,169 million
in assets according to
Generally Accepted Accounting Principles
issued by the Central Bank of Argentina, 2
million active
customers and 4,811
employees.
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II. MAIN INDICATORS
Grupo Supervielle S.A. at Consolidated Level
MAIN INDICATORS
Net income for the year attributable to owners of the
controlling company
Comprehensive income (loss) for the year attributable to
owners of the controlling company
Assets (Ps. thousands)
Liabilities (Ps. thousands)
Total Stockholders' Equity (Ps. thousands)
Equity attributable to owners of controlling interest
Equity attributable to non-controlling interests
ROAE(1)
ROAE - Comprehensive Income
ROAA(2)
ROAA - Comprehensive Income
Net Income from Services / (Net Income from Services +
Gross Financial Margin)(3)
Net Income from Services / Administrative Expenses(3)
Non Performing Loans / Total Loans
Provisions / Non Performing Loans
Dec. 2021
Dec. 2020
%
Change
N/A
N/A
4.0%
5.1%
-2.7%
-2.7%
-2.5%
(860.404)
4.809.242
(961.344)
5.943.190
392,239,229 377,231,725
338,822,577 322,337,918
53,416,652 54,893,807
53,373,922 54,849,977
43,830
9.9%
11.4%
1.3%
1.5%
42,730
-1.6%
-1.8%
-0.2%
-0.2%
20.7%
19.1%
30.7%
4.3%
109.9%
31.1%
3.7%(4)
191.5%(4)
(1) Net income for the year attributable to owners of the controlling company divided by
average shareholders' equity, calculated on a daily basis.
(2) Net income for the year attributable to owners of the controlling company divided by
average assets, calculated on a daily basis.
(3) Includes income from insurance activity.
(4) Ratio impacted by the rules imposed by the BCRA in the framework of the Covid-19
pandemic regarding the relaxation of the classification of debtors and the automatic
rescheduling of unpaid loan installments by customers.
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III. ANNUAL REPORT
A. EVOLUTION OF THE ECONOMY AND OF THE FINANCIAL SYSTEM
A.1. Macroeconomic Context in 2021
i) International Scenario 1
In 2021, according to recent available
estimates of the International Monetary
Fund (IMF), the world economic activity
expanded by 5.9%, as a result of the
recovery from the crisis caused by the
Covid-19 pandemic, which broke out by late
2019 in China and escalated during the first
two months of 2020.
and
emerging
This performance is mainly explained by the
GDP increase by 5% and 6.5% in developed
countries,
countries
respectively. As regards
the recovery
dynamics, most economies showed an
improvement since the last quarter of 2020.
However, as from the first and second
quarters of 2021, the activity level started
to definitely grow as a result of the lifting of
the
mobility
commencement of vaccination campaigns.
Anyway, certain countries were not so
stable in recovery terms given the need to
impose restrictive measures during certain
fairly short periods where large foci of
contagion were generated.
restrictions
following
In respect of the vaccination campaign, a
key factor which explains the growth of the
economic activity, by late December 2021,
48.4% of the world population had a full
vaccination scheme, to wit: the United
States, the United Kingdom, France, Italy
and Canada where 62.2%, 69.5%, 73.5%,
74% and 77.2%, respectively, of the people
were fully vaccinated. As to Latin America,
led the vaccination
Chile and Uruguay
1 Provisional data. Source: IMF World Economic
Outlook, published in January 2021.
efforts in the region ahead of the other
countries, reaching 86.1% and 76.8% of the
vaccinated people as of December 2021. On
the other hand, Brazil, Colombia, Peru,
the
Bolivia and Paraguay accelerated
campaign between the second and third
quarters of the year, fully vaccinating over
half of their population. As for Argentina,
vaccination began in January 2021, but the
dynamics accelerated sharply from July;
thus, by December 2021, about 71% of the
population had been vaccinated with two
doses.
As regards emerging economies, the GDP in
Latin America and the Caribbean grew by
6.8% during 2021 (it had dropped by 6.9% in
2020), 0.3% higher than the
increase
forecast for all emerging countries. On the
other hand, Brazil’s GDP increased by 4.7%,
lower than that projected for the region.
China, in turn, grew in 2021 by 8.1%
becoming the only country in the world with
a positive growth rate both in 2020 and
2021. Finally, India’s GDP recorded a 9%
increase approximately.
As regards developed countries, the 5%
increase of its total GDP, pursuant to data
published by the IMF, is the result of a 5.6%
increase in the USA, 5.2% in Europe and
7.2% in the United Kingdom. In summary,
the European countries that showed the
strongest recovery were France and Italy,
with the GDP increasing by 6.7% and 6.2%,
respectively, and, to a lesser extent, Spain
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and Germany whose GDP increased by 4.9%
and 2,7%, respectively. On the other hand,
Japan’s GDP recorded a 1.6% increase while
Canada’s GDP increased by 4.7%.
a
During 2021, the currencies of most of
Argentina’s trade partners depreciated as
against the US dollar. Only China, Vietnam
and Canada
nominal
evidenced
appreciation of their currencies. In contrast,
the Chilean peso depreciated by 16%, the
Brazilian real by 10% and the euro by 8%.
During the first half of the year most of the
currencies remained neutral as against the
US dollar while the trend to depreciation
intensified during the second half of 2021 as
a result of the strengthening of the US dollar
at world level. As to Argentina, the peso
depreciated by 23% in a context in which
the BCRA (Central Bank of Argentina)
decelerated the depreciation rate in an
inflation rate.
attempt to reduce the
Anyway, prices continued accelerating and
the exchange rate ended at 18% below the
inflation rate, resulting in an appreciation in
real terms of 3.4% on average in the year
and of 17.4% year-on-year pursuant to the
Multilateral Real Exchange Rate
Index
prepared by the BCRA. This was thus the
greatest annual appreciation in real terms
since 2008.
The recovery of commodities2, which had
begun in April 2020, with the lifting of
mobility restrictions at world level and the
reopening of world trade, continued in
2021. The price of commodities grew by
32.4% accumulated as of October 2021 and
hit its record in the year during such month,
to then fall by 4.1% until December. As a
result, prices accumulated a 27.1% increase
year-on-year as compared to the closing of
2020 and 34% taking into account the
average of each year. In contrast, the prices
of commodities exported by Argentina,
measured by the commodities price index
prepared by the BCRA, grew by 20.1% year-
on-year while they increased by 39.6% as
compared to the annual average, the
highest ever recorded since 1997.
In respect of interest rates, the Federal
Reserve of the United States decided to
maintain
its target at 0.25% (with a
minimum lower than 0% and a median of
0.125%) throughout 2021 to extend the
economic recovery. However, acceleration
of inflation in the US, which reached 7% in
2021 and hit its peak since 1982, could
possibly be a factor of change in interest
rates in 2022. In fact, the most recent dot
plot of the Federal Reserve reflects that 10
out of 18 participants expect three rate rises
for this year. Thus, according to the median
of such projections, the interest rate target
in 2022 might go to 0.875% from the current
0.125%. In turn, in November, the Federal
Reserve started to reduce the pace of
purchase of Treasury bonds and mortgage-
backed securities by USD15 billion, which
were later reduced further in December to
USD30 billion. As a consequence, this
process known as tapering might end in
March 2022, approximately three months
earlier than originally planned.
financial markets
reflected
Global
heterogeneous behaviors at world level in
line with the discrepancies in the economic
recovery and their monetary policy3. In the
first half of 2021, according to the MSCI
index, global equities accumulated an
11.4% rise while those of emerging markets
rose by 6.5% and those of developed
markets rose by 12.2%. However, as from
June,
intensified.
Specifically, stocks from emerging countries
dropped by 10.4% in the second half of the
year, while those of developed markets
increased by 7.1%. As a result, global stock
contrasts
these
2 According to Bloomberg’s CBOM index.
3 Taking as a reference the MSCI indices prepared by
MSCI Inc.
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markets ended with a rise of 16.8%, mainly
led by developed markets which grew by
20.1% in contrast to emerging markets
which accumulated a drop of 4.6%.
ii) National Scenario
The macroeconomic scenario in 2021 was
mainly marked by the recovery following
the COVID-19 health crisis which had a
strong impact on the activity level as a result
of the Mandatory, Preventive and Social
Lockdown (ASPO) during 2020. The main
factors for reactivation included the rise in
the price of commodities, which allowed a
greater US dollar supply and basically the
launching of the vaccination campaign as
from January 2021, which led to a dramatic
reduction in COVID-19 cases and in the
death toll. As a result, mobility restrictions
were lifted and most of the economic
sectors went back to normal, which,
together with a persistent monetary
issuance to finance the fiscal deficit and the
rise of the price of commodities, drove a
strong inflationary process which had been
slowed down by the sharp drop in 2020. In
this context, the Argentine Government’s
support policies deployed during the health
crisis were gradually removed, which
allowed a reduction in the financial deficit
of the Public Sector. However, this process
Economic Activity
According to data published by INDEC [the
Argentine Statistics and Census Bureau]
based on the Monthly Economic Activity
Indicator, which comprise up to November,
the economy averaged a 10.3% growth
after three years on a row in recession. As
regards the annual dynamics, the economic
activity recorded a year-on-year growth
Foreign Trade and Foreign Exchange Market
trade
2021,
During
balance
the
accumulated a surplus of USD14,747
million, which implied an improvement over
the positive result of USD12,528 million
reached in 2020, and thus trade surpluses
was not alien to the November 2021
Legislative Elections which changed the
dynamics of this variable, worsening its
performance and accelerating monetary
issuance by
late of the year. Finally,
Argentina continued with the negotiations
with the International Monetary Fund with
a view to restructuring the maturities of
outstanding principal and interest agreed
under the Stand-By Agreement entered into
in 2018. While there were speculations of
an agreement following the elections, such
agreement could not be reached, thus
affecting the dynamics of the financial
variables of the economy and especially
international reserves. Anyway, Argentina
honored all payments on their due dates in
2021, partly thanks to the accumulated
reserves resulting from the agricultural
sector’s foreign currency settlement, which
was the highest ever given the record
harvest
the prices of
and
commodities which were on average
approximately 38% above the price levels of
2020.
levels,
rate of 2.9% in the first quarter, 17.9% in the
second quarter and 11.9% in the third
quarter. Monthly data (deseasonalized)
reflect the recovery as, from June onwards,
the economy only fell in October and grew
at an average rate of 1.2% (June: 2.8%, July:
1.2%, August: 1.5%, September: 0.9%,
October: -0.9%, November: 1.7%).
were recorded in three consecutive years
after six years of negative results. The trade
balance dynamics is mainly the result of
three factors: the strong recovery of the
economic activity, the dynamics of the
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foreign exchange gap and the prices of
commodities. The first two resulted in
imports reaching 49%, above 2020 levels,
i.e. USD63,186 million. The best performing
imports in 2021 were fuels and lubricants
(121.3%) and parts and accessories for
capital goods (56.6%). On the other hand,
exports also recorded a great performance
with USD77,934 million, 42% up against
2020, being
the highest since 2012,
including the rise of 49.9% in industrial
manufacturing and of 45.1% in fuels and
energy.
As regards international reserves, in 2021
and
in contrast to 2019 and 2020,
accumulated reserves were recorded in the
amount of USD275 million, ending the year
with a stock of USD39,662 million. During
the year, there were two distinct periods:
from March to July
where reserves
increased by USD2,965 million thanks to the
seasonality of the agricultural sector’s
foreign exchange settlement and August,
when the BCRA increased its reserves by
USD4,274 million by reason of Special
Drawing Rights (SDRs) distributed by the
IMF to all member countries in the context
of the global crisis caused by the COVID-19
pandemic. As regards the final result and
the most relevant components giving rise to
this dynamics, the Central Bank of Argentina
purchased foreign currency for USD5,049
Labor Market
In 2021, salaries showed an accumulated
growth of 49,5% as of November (last
available data). Private sector registered
employees’ salaries accumulated 53.1% and
in the non-registered private sector 39%. In
turn, the accumulated increase in the public
sector was much lower, by 54.5%.
recovery
The employment level during 2021 showed
a strong
the
normalization of the economic activity,
which not only recovered the level shown
prior to the breakout of the pandemic in
line with
in
million, accumulated USD3,187 million and
USD1,199 million from Public Sector and
minimum cash transactions, respectively,
International
honored
Agencies for USD2,028 million, while in
terms of
foreign
exchange gap, some USD7,133 were
drained.
intervention of the
payments
to
The nominal exchange rate ended 2021 at
$102.75, which meant a rise of the USD
value during the year of $18.6 or a peso
devaluation of approximately 22.1%. The
exchange rate dynamics throughout the
year was stable under a controlled
depreciation scheme implemented by the
BCRA which was constantly below monthly
inflation rates recorded during the year.
During 2021, the exchange restrictions
imposed by late 2019 continued and even
some were tightened which maintained and
even increased the foreign exchange rate
gap during certain months. In fact the blue
chip swap (arising from the difference in the
quotation of Argentine stocks measured in
pesos and in US dollars) reached 115%
above
in
the official exchange
November as a result of the uncertainty
caused by the legislative election held
during such month. Then, foreign exchange
tensions reduced and the gap ended the
year approximately at 105%.
rate
February 2010, but was even higher than
such record. Taking into account the data
the
total number of
until October,
registered
increased
workers
approximately by 394,907 in terms of work
positions as compared to December 2020,
which implied a rise of 3.3%. This is mainly
the result of an increase in the number of
registered workers in the private sector
(111,325), registered workers in the public
sector (69,127), private household workers
(2,323) and self-employed/Small Taxpayers’
14
(212,132).
Simplified Scheme workers
Anyway, as compared
total
the
to
employment composition prior to the
outbreak of the pandemic, a change can be
perceived: registered workers in the private
sector went from 49.7% to 48.1% (but have
not yet recovered the February 2020 level),
registered workers in the public sector went
from 23.3% to 26.9% (above the pre-
pandemic level) and self-employed workers
went from 19.8% to 21%.
Fiscal Accounts
The Argentine Public Sector recorded in
fiscal deficit without
2021 a primary
extraordinary revenues of $980,241 million
(approximately 2.2% of the GDP) while the
financial deficit was $1,664,482 million
(3.7% of the GDP). During the year, fiscal
accounts improved significantly due to two
factors: in the first place, an additional of
approximately $311,373 million (0.7% of
the GDP) was collected on account of the
Extraordinary Solidarity Contribution. On
the other hand, in September, revenues for
$427,401 million (1% of the GDP) were
recorded from the extraordinary allocation
of Special Drawing Rights (SDRs) by the IMF
under the context of the global COVID-19
pandemic crisis. Thus, without considering
these extraordinary revenues, the primary
deficit would have amounted to $1,719,013
million (3.8%) and the financial deficit
would have amounted
to $2,403,254
million (5.4% of the GDP). During 2021,
revenues grew by 83.4% year-on-year
(21.5% above inflation rates) and 68.2%
without considering the aforementioned
extraordinary revenues. The recovery in
revenues was partly linked to the economic
recovery throughout the year while the
increased by 49.6%,
primary expense
reaching 9.6% below inflation rates. Its
components
included the year-on-year
12.2% drop in real terms of social benefits,
which had strongly increased in 2020. In
turn, the capital expenditure and the
expense on subsidies reflected a material
On the other hand, unemployment rates of
the first, second and third quarters were
10.2%, 9.6% and 8.2%,
respectively,
averaging 9.3% in the first 3 quarters of the
year. The average unemployment rate
showed a drop of 240 basis points as
compared to the first three quarters of 2020
(from 11.7% in 2020 to 9.3% in 2021). In
addition, the activity rate went from 42.4%
in the third quarter of 2020 to 46.7% in the
third quarter of 2021.
growth, with 54.3% and 31.4% year-on-year
in real terms, respectively. The
rises
acceleration in the subsidy expenditure
results from the fact that rates remained
frozen throughout the whole year and
accumulated more than two years without
adjustments.
In 2021, $684,241 million were paid as
interest, a 26% rise against 2020 (-16.5% in
real terms), representing 7.7% of the total
revenues of the Argentine Public Sector
(11.2%
in 2020). Without considering
extraordinary revenues, interest expense
accounted for 8.4% of total revenues.
financed
in 2020 amounted
to be
issuance.
As in 2020, one of the critical aspects was
access to financing by the Argentine
Treasury as a large portion of the primary
through
deficit had
In fact, the BCRA
monetary
financial aid
to
$1,700,312 million, 2% higher than the
financial deficit for the year. However, in
September, when the revenues for SDRs
allocation were computed, the Treasury
paid $427,401 million on account of
Temporary Advances and reduced its stock.
Excluding this drop, the BCRA’s monetary
assistance to the Treasury in 2021 ended in
$2,127,713 million, 88% of the financial
deficit (without considering the revenues
for SDRs of for the Extraordinary Solidarity
Contribution). More precisely, Temporary
Advances totaled $912,599 million (123.8%
higher than in 2020) while profit transfers
15
amounted to $787,712 million (a 51% fall).
On the other hand, in 2021 the Government
secured net financing
in the domestic
market for approximately $748,712 million,
77% higher than the $424,000 million
secured in 2020. Treasury debt placements
where especially influenced as from June
when due to the BCRA’s Communication A
7290, banks were authorized to use
Treasury bonds for their minimum cash
requirements.
Monetary Policy
to
During 2021, the BCRA adopted a monetary
policy in line with that implemented during
2020, and as access to the debt market
remained restricted for Argentina, once
again the BCRA was forced to provide
the Treasury
financial assistance
throughout 2021. In such context, the
monetary authority maintained
interest
rates at levels similar to those recorded by
late 2020, with the monetary policy rate
(interest rate of securities issued by the
Central Bank “Leliqs”) at 38% throughout
the year in order to absorb part of the
greater monetary base issued throughout
the year. However, the rates remained
negative in real terms with a view to
sustaining the economic recovery through
credit policies for the most affected sectors
through Líneas de Financiamiento a la
Inflation
The general inflation rate (measured by the
Consumer Price Index) reflected a 50.9%
increase while the core inflation (excluding
the effect of regulated and seasonal goods
prices) was at 54.9%. This accounts for an
increase of 14.8% and 15.4%, respectively,
as compared to the 2020 inflation rate. The
inflation dynamics during 2021 was
relatively similar in the four quarters and
was regularly above 3% on a monthly basis.
After an average monthly inflation rate of
4.1% in the first quarter, price increase
decelerated in the second quarter and in
part of the third quarter as a result of the
exchange
ever-increasing
appreciation. In fact, the inflation rate
during such quarters was of 3.5% and 3%
foreign
the main vehicle
Inversión Productiva (LFIP) which continued
to channel
being
production credits for Micro, Small and
Medium-Sized Companies under favorable
financial terms.
its
continued with
As regards the foreign exchange policy, the
BCRA
controlled
depreciation scheme in 2021. However, in
an attempt to reduce the acceleration and
inflationary inertia and unlike 2020, the
monetary authority started to decelerate
foreign exchange
the pace of
depreciation, which was below the inflation
rate throughout the year. In fact, while in
2020 depreciation was 0.2% on average
above monthly inflation rates, in 2021 such
percentage was -1.67%, causing a strong
appreciation of the real exchange rate.
the
as,
implemented price
per month on average, respectively. Finally,
the
somewhat
quarter was
last
in November, the
heterogeneous
government
freeze
measures which took the inflation rate to
2.5%. Anyway, the inflation rate accelerated
again in December to 3.8% returning to
values close to those recorded in the first
quarter. On the other hand, seasonal prices
grew by 50.1% while regulated prices grew
only by 37.7%, evidencing the continuation
of the rate freeze.
At geographic level, the greatest year-on-
year
in the
increases were recorded
Patagonia area (51.6%), in the Greater
Buenos Aires (GBA) area (51.4%), both
above average, and in the Northwest region
16
(50.8%), very close to the national rate. In
contrast,
in the Cuyo, Pampeana and
Northeast regions the inflation rate was
below the national average (50.6%, 50.5%
and 49.7%, respectively).
As regards inflation components during
2021, goods recorded an increase in prices
of 53.7% while services rose by 44.2%.
These data show an increase in the relative
price imbalance.
A.2. The Financial System in 2021
The dynamics of the financial system
continued to be affected by the Covid-19
pandemic throughout 2021, like in the vast
majority of countries. However,
the
economic activity started to grow as of the
first and second quarters of 2021, with the
lifting of mobility restrictions as a result of
the vaccination campaigns. Therefore,
although
remained
certain measures
effective that had been implemented by the
Central Bank
in 2021 to mitigate the
financial pressure on debtors and to
promote the access to financing for those
most affected by the recession caused by
the pandemic, other measures were
gradually lifted.
Liquidity and Solvency
The financial system liquidity management
remained high, as in recent years. In fact,
the broad liquidity ratio (including not only
cash but also BCRA instruments and the
Argentine Treasury Bonds eligible
as
reserve requirements) of the banks on
aggregate reached 66.3%, recording an
increase of 4.2% as compared to the close
of 2020. Besides, the foreign exchange
liquidity of the financial system continued
Deposits and Loans
Due to the contraction of the financial
system in real terms in recent years, the
deposit and loan to GDP ratio in the private
financial system is below the average of
other countries in the region and the world.
ii)
respectively,
that were discontinued:
Measures
i)
automatic 12-month refinancing of unpaid
balances of credit cards due in April and
September 2020 at a 43% and 40% interest
rate,
automatic
rescheduling of outstanding loan payments
due as of the end of April 2020 and
throughout 2020,
iii) freezing of UVA
instalments, iv) flexibilization of criteria for
debtor classification and allowance for loan
loss provisions, v) prohibition to charge fees
on
that
certain products. Measures
continued in force: i) payment by financial
entities of a minimum interest rate on time
deposits, ii) suspension of distribution of
dividends of financial entities and iii) grant
of credit
loans to SMES at
lines and
preferential rates, among other.
to be historically high, ending at 81.8% in
2021, a 3.6% increase as compared to 2020.
The solvency ratios of the financial system
continued to be historically high. The
regulatory capital adequacy ratio of the
sector totaled 26.2% of the risk weighted
assets (RWA), according to October data,
which represents an excess adequacy of
almost two times (222%) that stipulated by
applicable regulations.
The penetration both of deposits and loans
continues being
levels
recorded before the 1999-2002 crisis.
lower than the
17
in Pesos
According to September 2021 data, the
deposit to GDP ratio was 15.9% and the loan
to GDP ratio was 9.0% as compared to
18.6% and 11.7%, respectively, in 2020. The
total deposits in the private sector financial
system increased by 51.8% in 2021, totaling
$9,296,964 million, only a 0.6% above
inflation. Deposits in Pesos recorded a
58.8% growth, or 5.2%
in real terms,
reaching $7,742,706 million and USD
totaled
deposits measured
$1,554,258 million, up by 24.4%, (17.5%
below the price increase) while deposits
measured in USD showed a slight recovery
of 0.9% after the sharp 17.7% fall in 2020.
According to type of deposits in Pesos in the
private sector, the CER/UVA adjusted time
deposits showed a greater increase: 200.8%
in nominal terms and 99.4% in real terms, in
a scenario of great price acceleration.
Although they remain a small part of the
deposits in Pesos in the private sector, their
share on the total went from 1.1% to 2,1%
in 2021. Savings and checking accounts
showed a good performance, with increases
Interest Rates
The BADLAR interest rate of Private Banks
closed the year at practically the same level
at which it closed in December 2020 (34.3%
in 2020 vs. 34.1% in 2021), in line with the
dynamics of the LELIQ rate, which remained
at 38% throughout 2021 and both remained
negative in real terms. Throughout the year,
the monetary authority maintained limits
on minimum interest rates to be paid both
by 2.6 p.p. with respect to the end of
interest rates showed a
2020. Thus,
considerable stability throughout 2021,
causing real rates to be negative, especially
of 63.5% and 57.1%, 8.3% and 4.1% above
inflation respectively. Like in 2020, the good
performance of savings accounts was due to
the direct transfers to the private sector
made by the Government due to the health
crisis.
Besides, total private sector loans at year
end amounted to $4,423,908 million, an
year-on-year increase of 40.6% on average
(-6.8% in real terms). Private sector loans in
Pesos grew by 48%, 1.9% below inflation,
after the 9.8% increase in real terms in
2020, reaching a credit to GDP ratio
penetration of 7.9%, and maintaining a very
low percentage of USD loans granted, which
only represent 1.1% of the total
loan
penetration. The breakdown of loans by
product showed that car loans increased by
123.3% (48%
in real terms) while the
discount of commercial papers increased by
56.8% (3.9% above inflation). Mortgage
loans were the worst performing loans in
2021, with a 30.6% increase, i.e. 13.5%
below inflation.
retail
lower
than
time deposits
on
$1,000,000 (37%) and for time deposits
higher than $1,000,000 (34%). The TM20 for
private banks (for time deposits above
$20,000,000) recorded a similar behavior,
with a slight 0.4% decrease (34.3% in 2020
as compared to 33.9% in 2021). The call rate
for private banks was 29.2%, increasing
in the first four months of the year. The
year-on-year BADLAR rate was on average
14.3% below the year-on-year inflation rate
from January to April 2021.
18
A.3. Insurance Market
in Retirement
As of September 30, 2021, there were 191
insurance companies, 17 of which are
engaged
Insurance, 36
exclusively
in Life Insurance (including:
Collective, Individual, Retirement, Health,
Personal Accidents and Funeral), 12
exclusively in Occupation Risks and 5 in
Public Passenger Transportation. The
remaining 121 companies are engaged in
other property and casualty
insurance
operations, or in "mixed" operations (i.e.
they cover both property and personal
insurance).
Since the gradual opening of the local
the number of
reinsurance market,
operators decreased from 26 in 2016 to 16
in 2020. The market is formed by 11
Domestic entities, 5 Branches of Foreign
Entities and 114 Authorized Reinsurers.
Intermediation in the market is in the hands
of insurance brokers (individuals and legal
persons) and reinsurance brokers, which
total 42,263 agents. Insurance Brokers act
as "intermediaries" between
insurance
companies and users and must meet a
series of requirements in order to be able to
act and manage the contracts that are
entered into. As of June 30, 2020, there
were 41,435 individual brokers and 805
authorized companies. The number of
brokers in the reinsurance market remained
stable at 25. Of the insurance market's total
production, Insurance Brokers accounted
for 43.7%, Broker Companies for 23.5%,
Direct Sales for 21.3% and Insurance Agents
[Agentes Institorios] for 11.4%.
The sector’s activity is measured by the
number of net premiums issued. During
fiscal year 2020 the total amount for
the
In
is
indicator
importance of
premiums issued in the market was of
$738.9 billion, a 56% growth in nominal
terms as compared to the prior year.
Insurance penetration is measured by the
ratio of net premiums issued to Gross
turn, another
Domestic Product.
significant
the average
insurance spending per capita. Those ratios
are used to measure the size of the
domestic Insurance sector as compared to
international markets. The
ratio of
premiums issued to Gross Domestic Product
(GDP) shows
the
insurance sector in the Argentine economy.
That ratio was of 3.08% in 2020 (including
local insurance and reinsurance). Premiums
issued per capita: it indicates the average
insurance spending per capita (includes
only premiums issued for local insureds). In
addition, in 2020, the insurance spending
per capita was of $15,589 (does not include
reinsurance). More than $700 billion were
spent in premiums, more than 84.7% of
which correspond to Property Insurance
and the rest to Personal Insurance. 78.9% of
issued by
the
Corporations,
followed by 19.4% by
cooperative and mutual companies. The
market was led by car insurance, with
insurance,
$265.2 billion spent
representing 44.7% of Property Insurance,
thus leading the sector. Occupational Risks
insurance amounted to $177.8 billion,
making it the second line of business with
the highest production
the
segment).
total premiums are
(30% of
in car
Life and Credit Life
lines of Grupo
Supervielle together totaled approximately
i.e., 50% of the total
$53.5 billion,
production of Personal Insurance.
19
Brokerage Market
Intermediation in the market is in the hands
of insurance brokers (individuals and legal
persons) and reinsurance brokers, which
total 42,263 agents. Insurance brokers are
the "intermediaries" between
insurance
companies and users who must meet a
series of requirements in order to be able to
act and manage the contracts that are
entered into.
As of June 30, 2020, there were 41,435
individual brokers, while the number of
authorized companies amounted to 803.
Brokerage
Total
Brokers
Individuals
Legal Persons
Reinsurance Brokers
2020
2019
% Change
42,263
42,238
41,435
803
25
40,480
40,454
39,694
760
4.40
4.41
4.39
5.66
26
-3.85
2022 Outlook
The 2022 outlook for the insurance market
is challenging, although the
insurance
market as a whole is expected to grow to
the extent that the macroeconomic context
so allows.
A.4. The Mutual Funds Industry in 2021
insurance
Non-compulsory
are
expected to grow, given their low market
insurance
penetration and a greater
awareness of the population at large.
lines
The Mutual Funds Industry grew by 94%
measured in terms of average balances for
December 2021 as compared to December
of the previous year, well above the
20
inflation rate and the devaluation of
currency and stocks. The financial and
capital market conditions favor this growth
by virtue of the limitations to operate in the
rate
exchange market,
controlled by the BCRA and the restrictions
imposed on foreign trade.
interest
the
Non-bank related fund managers showed
an annual growth below average of 68%,
with a share of 33% of the total managed
funds as compared to 38% in the previous
year. The remaining bank-related fund
managers reached an annual growth of
109%, with a share of 67% of managed
funds as compared to 62% in the previous
year. This situation is due to the greater
increase of the T+0 and T+1 products (cash
management), which are concentrated in
bank-related fund managers, above the rest
of the products that have a greater share in
the non-bank related fund managers.
An analysis by product type places Money
Market funds (T+0) as the first product in
terms of market share, 49% over the total,
growing above average in the last two years
as it represented 46% in 2019 and 47% in
2020. The return on this product has been
around 36% in the year, and although it is
not enough to cover the inflation rate,
same-day
low
volatility, make it the favorite of companies
for liquidity management purposes. This
product of bank-related fund managers
accounts for 91% of managed funds.
redemption and very
income funds
in
The fixed and mixed
Argentine pesos with a T+2 redemption
term comes second in terms of market
share, 23% over the total. They showed
above-average growth in the last two years
going from 15% in 2019 to 21% in 2020.
There are portfolios designed to obtain
returns in line with the evolution of the
official exchange rate (dollar linked), with
inflation or another combination of
financial assets of higher volatility and
expected return. This product of non-bank
related fund managers accounts for 59% of
managed funds.
The short term Argentine peso fixed income
funds with a T+1 redemption term is the
third group of products in terms of market
share, 10% over the total. This group of
products is also growing above average, as
it had an 8% share in previous years. These
are low volatility funds with a return similar
the BADLAR rate. With a yearly return of
around 43%, this product is an investment
alternative to the traditional time deposit
with an advantage as regards liquidity and a
similar return with low volatility. This
product of bank-related fund managers
accounts for 76% of managed funds.
The remaining groups of products show a
growth lower than the industry average,
with a reduction of its share in total
managed funds. The SME and Infrastructure
investment funds -oriented to
specific
Insurance Companies clients- went down
from 7% in 2020 to 6% in 2021; the fixed and
mixed income foreign assets funds fell from
9% in 2020 to 6% in 2021 following the
impact of the rules regulating exchange
market transactions and other regulations
that impose that at least 75% of the
financial asset portfolios must be in pesos;
Argentina's dollar-denominated fixed and
mixed income funds fell from 4% in 2020 to
3% in 2021; and variable income and total
return funds also fell from 4% in 2020 to 3%
in 2021.
An analysis of the year's variations by type
of customer shows that the growth of
Corporate customers reached 117% and the
growth of
Integrated Placement and
Distribution Agents (ACDIs) was 165%.
Below average is the growth of Individuals
with 64% and Institutional Customers with
60%. Thus, in terms of managed funds by
type of customer Corporate customers are
at the top with 53% (47% in 2020), followed
by Institutional customers with 33% (40% in
2020), Individuals with 6% (7% in 2020) and
ACDIs with 9% (6% in 2020).
21
A.5. 2022 Outlook
According to recent estimates of the
International Monetary Fund, the world
economy is expected to grow 4.4% in 2022
(reflecting a slight downward correction
with respect to previous projections, which
showed a 4.9% increase).
In
fact,
(especially
restrictions.
This recovery would be the result of a 3.9%
growth in advanced economies and 4.8% in
emerging economies. According to the IMF,
the world economic growth will vary from
country to country and will depend on
several factors. On the one hand, it will
depend on the ability of governments to
contain the circulation of the Omicron
variant and other variants that may arise
during the year without establishing strong
mobility
since
November there has been a sharp increase
in the number of cases of COVID-19
worldwide as a result of the advance of the
Omicron variant, which, despite proving to
be less lethal than previous strains, has
forced some countries to impose mobility
restrictions
Europe).
Moreover, the activity dynamics in 2022 will
depend on the normalization of supply
chains, which has led to an acceleration of
inflation at global level. In this regard, and
given this situation, financial conditions are
expected to become tougher in 2022, which
may also strongly affect the level of activity,
especially
economies.
Specifically, the start of the rate hike cycle
in the United States and the end of tapering,
expected for March 2022 based on the last
FOMC meeting, are two factors that would
impact the dynamics of economies and
markets worldwide. Finally, there are also
more focused risks that can expand rapidly,
such as the problems in the real estate
in China and, mainly, a new
sector
escalation in the conflict between Russia
and Ukraine.
emerging
in
in
Regarding Argentina, both positive and
are
negative
international
aspects
highlighted that could affect the level of
activity. First, an improvement in world
trade of 6% is projected for 2022 after the
strong rise of 9.3% estimated for 2021. On
the other hand, the IMF estimates that
agricultural commodity prices will grow by
3.1% in 2022, which will keep them high; it
also forecasts a 4.8% rise in China's GDP.
However, Argentina's main trading partner,
Brazil, is expected to grow by only 0.3%,
which may affect exports during 2022. This
is subject to the risks associated with the
emergence of new strains of COVID-19,
which could eventually affect the normal
performance of the economies, although
recent trends would not suggest such a risk.
On the other hand, 2022 will be marked by
the dynamics of macroeconomic variables
within the framework of the agreement
IMF. As announced by the
with the
Government in the last days of January
2022, it would be an Extended Facilities
Agreement (EFF) of two and a half years'
duration and repayment over ten years.
Although a formal agreement has not yet
been announced, such agreement would
have the following guidelines: the gradual
reduction of the primary deficit of 2.5% of
GDP in 2022, 1.9% of GDP in 2023 and 0.9%
of GDP in 2024, with public spending
growing slightly above inflation; a gradual
but decisive
reduction of monetary
assistance to the treasury of 1% of GDP in
2022, 0.6% of GDP in 2023 and 0% in 2024;
the setting of positive real interest rates;
the reduction of inflation from a multi-
causal approach and the accumulation of
reserves without major modifications to the
current exchange rate regime.
In this
context, in the first days of 2022 the BCRA
raised the interest rate of the LELIQ from
38% to 40% and the rates of guaranteed
time deposits
to
$10,000,000 from 37% to 39%, while
creating a 180-day LELIQ with a rate of 44%.
It should be taken into account that the
individuals up
for
22
agreement with the IMF must be approved
by the Argentine Congress.
On the other hand, the actions of the
Federal Reserve in relation to the level of
interest rates will play a key role. As
aforementioned, most of the participants in
the last dot plot expect three rate hikes this
year. It should be noted that a rate hike is
usually accompanied by a strengthening of
the dollar at global level and a fall in
commodity
be
detrimental,
emerging
economies.
prices, which may
especially
for
According to economic consulting firms
participating in the BCRA’s Relevamiento de
Expectativas de Mercado as of January 2022
an economic growth rate is expected for
Argentina of 3.0%, mainly as a result of the
2021 statistical drag. In turn, they estimate
that output will expand by 0.5% in the first
quarter of 2022 and will contract by 0.2% in
the
2022
(deseasonalized).
quarter
second
of
to
according
the BCRA's
Likewise,
Relevamiento de Expectativas de Mercado
as of January 2022, the inflation rate is
expected to accelerate from 50.9% at the
close of 2021 to 55.0% (year-on-year
variation December - December) in 2022.
Then, analysts project a drop in the inflation
rate for 2023, ending the year at 45.0%. On
the other hand, the nominal exchange rate
is expected to end at $160.0, which implies
a depreciation of 58.6% year-on-year, an
acceleration in the devaluation rate as
compared to 2021.
is expected
As regards the financial system, a good
dynamics
in a context of
continued economic recovery, considering
that the current high level of liquidity will,
when the demand for loans recovers, allow
an acceleration of the savings channeling
process to sustain and accelerate economic
recovery and increase the levels of credit to
GDP penetration, which are lower than
those reached during the 1999-2002 crisis.
23
B. EVOLUTION OF GRUPO SUPERVIELLE
B.1. Evolution of Supervielle Ecosystem
Grupo Supervielle is a platform that
financial and non-financial
offers
than 2 million
services
customers.
to more
ecosystem
and
initiatives
During 2021, we continued to expand
accelerate
our
transformation
in all our
customer service channels, moving
towards the omnichannel concept. This
includes the development of a modern
technology architecture, the evolution
of our bank branch model and the
incorporation of APIs to connect our
ecosystem with
third parties and
for Open Banking, while
prepare
making progress
improving the
in
customer experience.
Our ecosystem as of December 31, 2021
consisted of:
B.2. Awards and Indexes
Sustainability Index
In February 2021, BYMA (Bolsas y Mercados
Argentinos) together with the IDB (Inter-
American Development Bank) and with the
the Earth
academic endorsement of
Institute of Columbia University, presented
the
Index,
Supervielle
following which, Grupo
the BYMA
to be part of
continues
third
the
for
Sustainability
Sustainability
rebalanced
Index
consecutive year since its launching in
December 2018.
The Index is non-commercial in nature and
evaluates the performance of the most
liquid issuers listed on BYMA (members of
the Merval index in recent years), in the
four ESG-D pillars, based on the information
reported and available to the general
is based on
public. The methodology
24
IndexAmericas and the data collection is
carried out by Refinitiv.
Eikon Awards
in
their
excellence
Our subsidiary Banco Supervielle received
two Eikon awards from Imagen magazine
for
corporate
communication. Supervielle was recognized
in the General Digital Campaign category for
the launching of the Workplace tool in
2020; and in the Influencers Campaign
category, thanks to the #Influencers Action
that turned our employees into internal
Influencers.
One of the awards was for the launching of
Workplace from Facebook in the General
Digital
The
implementation of this tool as the new
corporate communication network was key
Campaign
category.
B.3. Evolution of Operations
B.3.1. Banco Supervielle
Regulatory Environment 2021
the
Leliq
rates and
In 2021 the main regulations established by
the BCRA in 2020 continued which affect
the financial margin, such as those related
to time deposit rates, credit cards and limit
on the number of subsidized credit facilities.
repo
Besides
transactions with the Central Bank were
negative in real terms and remained fixed
during the year. This regulatory scenario
strongly reduced spreads, that were also
affected by a reduced demand for credit.
Additionally, the rise on taxes (turnover tax,
income tax, municipal rates) increased the
operating costs.
Once the Central Bank provision that
provided for rescheduling of payments was
lifted, the levels of delinquency increased
The index identifies and highlights leading
companies
Social,
Sustainable Development and Corporate
Governance (ESG-D).
Environmental,
in
in a context of pandemic,
it
because,
dynamic
a much more
fostered
communication
as
and
another communication channel among all
employees.
consolidated
The other award was for the Influencers
category. Supervielle was recognized for its
#Influencers of
Internal Communication
program, through which our employees, in
addition to volunteering and with the
consent of
the
fundamental role of creating content,
sharing important information about their
area within the organization and promoting
actions within their teams.
teams, play
their
but are still lower than pre-pandemic levels
(2018-2019).
In 2021 we advanced with some initiatives
intended to improve funding, focusing on
the sale of transactional products that
generate sight deposits of commercial
continued
customers
on
management
customer
reciprocities. In the fourth quarter checking
accounts recorded a growth above the
financial system average.
the
new
and
of
During the year we continued with the
restructuring process, adequacy of our
branch network and digital transformation.
25
Internal Organization
In the second half of 2020 we had organized
according
Individuals,
to Experiences:
Corporates, and Payment Methods, that
show our interaction with customers, from
the moment when we are chosen by
customers to every single interaction that
may be necessary to meet their needs for
products, services, inquiries, and advice.
their
tribe. We also have
In each of these worlds of experiences there
are autonomous and self-regulated squads
that work to achieve their shared mission
the
with
Omnichannel Service Model tribe, which is
cross sectional to all experiences, the goal
of which is to transform distribution and
sales channels of Banco Supervielle and
improve customer experience.
Expertise or Excellence Centers (COEs)
distribute talent, resources, and knowledge
Business Segments
1. Personal and Business Banking
Banco Supervielle’s Personal and Business
Banking area offers a wide array of financial
products and services designed to meet the
needs of individuals and entrepreneurs and
small businesses: Personal Loans, Mortgage
Loans, Unsecured Loans, Loans with Special
Facilities for Project and Work Capital
Financing, Leasing, Bank Guarantee for
Tenants, Salary Advances, Car Loans,
Domestic and
International Factoring,
International Guarantees and Letters of
Credit,
Payroll Payment Plan (Planes
Sueldo), Credit Cards, Payment to Suppliers,
Debit Cards, Savings Accounts, Time
Deposits, Checking Accounts, and financial
services and investments such as Mutual
Funds,
Insurance and Guarantees, and
Senior Citizens Benefit Payments. In 2021
financial
we continued offering these
to all the squads so that they may achieve
their goal orderly and in a knowledgeable
way, based on best practices of each field.
We have a Transformation Office (ATO) the
mission of which is to guarantee alignment
of the Bank’s strategic objectives and
escalate the agile methodology
in our
organization as a way to do things. The ATO
in the pursuit of
works with teams
objectives, to ensure that customers are
always at the center of all our actions.
Within that structure, the role of technology
is vital. We focus on the technology as a
facilitator of technology-based businesses.
We choose the Agile methodology to
transform information into ideas, and ideas
into answers to the needs of our customers.
products and services continued, in line
with the needs of our customers.
on
placed
development
To promote digital transformation, focus
was
and
strengthening of automatic self-service
channels. Thus, the service model continues
evolving, and we are working to achieve
maximum efficiency and the best service in
each contact.
In 2021 we continued improving the self-
service model with the deployment and
strengthening of own experience cash
(cardless and pinless cash
dispenser
dispenser with biometric
identification,
100% Supervielle experience).
line with
the growth of digital
In
transformation, development continued of
the Agile methodology as a work tool in the
26
leading to better results.
organization,
Interaction and
communication gave
employees a comprehensive view of the
needs and restrictions so as to establish
clear targets, design the best actions and
favor the speed of
implementation of
required changes.
The service model continued changing,
striking a balance between maximum
contact efficiency (through automatic self-
service channels and personalized services)
required by each
and service
customer profile and each
strategic
segment of Banco Supervielle.
levels
Based on the assessment of their distinctive
features,
specific
requirements, the customers of Personal
their needs,
and
Personal Segment
In 2021, we boosted customer acquisition,
with 32% more new customers than in
2020.
We launched an MVP of the "Transferí tus
ingresos" action, as an alternative to Plan
Sueldo, with the aim of increasing sight
Senior Citizens Segment
Banco Supervielle maintains a strong
presence in this segment, paying more than
1,200,000 ANSES benefits on a monthly
basis, considering retirement, pensions, and
social plans.
In 2021, and as a consequence of the
pandemic, we carried out actions aimed at
customers and
taking
responding to their transactional needs.
care of our
debit
cards
through
We continued providing training on the use
digital
of
communications, tutorials on the website
and brochures at branches. As a result,
more than 270 thousand customers make
monthly purchases with their debit card.
We continue focusing on providing the best
and Business segment are grouped in four
strategic segments.
1. The SMEs segment is made up of
natural persons engaged in commercial
activities, small one-person ventures,
and small and medium sized companies
with revenues lower than $3 billion per
year.
2. The Identité segment includes natural
persons of the ABC1 segment.
3. The Personal segment, which includes
with no
individual
customers
commercial activities (not included in
the Identité segment).
4. The Senior Citizens segment, which
includes senior citizens who receive
their pension benefits through the
bank.
deposits, which we will seek to escalate
during 2022.
We relaunched the referral program, where
new customers, instead of earning points,
now receive a cashback on their debit cards,
improving
lead generation and sight
deposits.
experience to our customers, improving our
customer service model, adding new own
experience cash dispensers (cash dispenser
with biometric identification) located in the
lobby of branches, thus allowing customers
to make transactions during extended hours
from 5 a.m. to 9 p.m., 7 days a week, and
increasing the withdrawal limit to $120,000.
As a result of this implementation, during
2021 more than 300,000 customers used
our own experience cash dispensers to
withdraw their pension payment.
In order to facilitate access by our elderly
customers to digital tools and reduce their
face-to-face transactions, we continued
adding functionalities to the "Supervielle
27
Jubilados" App. Today, the application
already allows customers to provide proof
of life through facial recognition without
having to go to a branch, check their
pension collection date, download their
payment
account
check
movements, transfer money to other
accounts, pay with QR and now we also
have Human Chat, a 24 hour-service for our
customers to make live queries. We thus
had 170,000 customers download the App.
their
slip,
As we continue to focus on improving the
value proposition, in 2021 we provided
discounts to senior citizen on one day only,
which is simpler for the customer, and
clearer when it comes to communicating.
Identité Segment (High Income)
The 35% increase in the customer base in
2021 was significant in this segment, equal
to 22 thousand new customers.
As in the Personal Segment, we launched
the MVP "Transferí tus ingresos" for new
customer generation. We also relaunched
the referral program in Identité, where we
offered new customers the benefit of
cashback on their debit card.
During the year we developed an important
at
brand
positioning
aimed
plan
Entrepreneurs and SMEs Segment
Business development during 2021 was
influenced by the
impact of Covid-19,
although in the second half of the year we
achieved a recovery
in many business
indicators.
Throughout the year, we worked on
bringing value proposal tools to commercial
channels and make progress on the
acquisition of new customers, focusing on
Entrepreneurs and SMEs. We offered
comprehensive value proposals and created
policies and tools for early customer rating,
with attractive
lines according to the
segment.
Now, on Tuesdays, our senior citizens get a
25% discount at supermarkets and a 50%
discount at any pharmacy countrywide.
In order to be close to our customers during
the pandemic, we held a series of talks
called "Te acompañamos” dealing with
topics of interest for this segment, such as
health and entertainment, in addition to
interviews with special guests. In 2021 we
held 4 live virtual chats, moderated by a
specialist, in which our customers could ask
questions and interact with the moderator
and the guest. These talks are available on
our senior citizen’s web space, so that any
customer can listen to them again at any
time.
consolidating the Bank in the market for this
in Mendoza we
line,
segment. In this
launched a positioning plan to strengthen
our presence in Identité.
Finally, we used digital channels to attract
new customers. In 2021, 57% of Identité
new customers were acquired through the
digital channel, it being the main means for
lead generation.
hard
In line with the context and strategy, we
worked
continuous
on
improvement of the digital channel: we
implemented
digital
onboarding for individual customers.
end-to-end
the
In addition, for digital onboarding we
leveraged on value propositions and
exclusive credit lines, in synergy with sub-
segments and partnership with B2B
companies. We were present in (traditional
and digital) media with global campaigns,
focusing on investment in major markets,
such as AMBA and Córdoba. We also
28
participated in multiple events related to
Entrepreneurs and SMEs.
Additionally, we placed credit lines for
support of SMEs as established by the BCRA.
Regarding the commercial customer service
model, we
focusing on
continued
generation of customers with a high cross-
sell rate, in an attempt to become their
strategic partner and principal bank, so that
they rely on us
for their payments,
collections and payroll payments. To
achieve this, our pillars were the products:
Plan Sueldo, Comex, Cash Management and
Leasing, where we generated greater
funding and, therefore, greater profitability.
We continued developing the differentiated
customer service model at branches. In line
with our customer centric approach, we
launched campaigns for customers to be
acquainted with their account officer, who
are experts in assisting segment companies.
We also began to materialize the remote or
virtual service model, to achieve greater
granularity throughout the country where
we do not have physical facilities. In line
with the new digital channels, Banco
Supervielle is committed to provide a close
and efficient service with a deep financial
expertise on SMEs. To such end, the average
number of customers served by our
business executives is lower than market
levels.
During 2021 we worked hard on the analysis
of portfolios and their allocations, in order
to achieve a much greater efficiency in both
customer service and customer acquisition.
Thus, we ensure that customers are
adequately served to boost their business,
in line with our Human Banking principle.
During the year we also focused on
managing
the early delinquency of
customers to ensure a greater collection.
Performance of Strategic Subsegments in 2021
During 2021, we worked hard on strengthening the four Strategic Subsegments: Education,
Franchises, Health and Transportation.
Franchises
During 2021 and thanks to the support of
the Asociación de Marcas y Franquicias, we
offered
financing with minimum and
differentiated requirements to more than
40 brands and their franchisees in pre-
approved amounts of up to AR$ 3,000,000.
Due
the
to
qualifications
franchisees to have access to the
implementation of new
for
parameters
and
differentiated value proposition, at year
end there was a year-on-year 20% increase
in the number of franchisees. Leveraged by
this increase in linking, the volume of assets
was boosted by 66% and liabilities by 67%.
finances
Supervielle
Banco
initial
investments offering preferential rates,
lenient requirements, with a clear focus on
start-ups that rely on a worldwide proven
business such as Franchising.
Transportation
The transportation subsegment improved
its performance in sales times, reducing
response times to 72 hours. It was the
subsegment with the highest number of
new customers
aggregate).
in the year
(307
in
The re-launching of the value proposition
and the commercial allocations of up to AR$
29
15 million boosted relations in the sub-
segment: it grew 10% in stock, 71% in
assets, 126% in liabilities and 13% in net
Planes Sueldo.
At Banco Supervielle we will continue
boosting this synergy through agreements
with the main aggregators and strategic
partners.
Health
This Sub-segment, as a result of the
generation of commercial allocations of up
to AR$ 15 million to
finance health
establishments in 72 hours, generated the
possibility of linking 219 customers, which
its total portfolio thus reaching 1414
customers.
Education
2021, we
re-launched
and
During
positioned the sub-segment with higher
profitability and number of customers. In
this last item, an increase of 2% was
generated, which in nominal terms implies
21% of the total portfolio of the bank's Plan
Sueldo.
Deposits
The Liabilities area is responsible for time
deposits, accounts and safe deposit boxes
offered through the different customer
service and commercialization channels.
Since
last year, the Central Bank of
Argentina has set minimum interest rates
for time deposits for less than AR$ 1 million
made by individuals and companies.
Loans
In 2021, we set out to provide a wide array
loans, through agile and
of personal
efficient management processes, improving
credit qualification times. At the same time,
channels were
sales
strengthened, and new financing lines were
loans
launched
in order
increase
tools
and
to
Stock growth was above the overall
portfolio. The partnership with Bionexo, the
main health marketplace, in addition to the
attributions for Health customers approved
in 4Q 2021, positioned the Subsegment
with very good prospects for 2022.
As regards education, Banco Supervielle
partners with Revista Colegio and is present
in different educational fora, taking the
proposal to the next
level based on
customer experience.
In line with our customer-centric approach,
focusing on agility and simplicity in the
bank-person contact, we strengthened the
operations in the different digital channels,
achieving an 18% increase in the number of
processed transactions.
As a result, by the end of 2021, 90% of time
deposits were made by our customers
through digital channels.
origination. The above, together with the
developments made to increase the supply
through digital platforms resulted in a
47.6% increase in placements as compared
to 2020. The digital share increased by 29%
in 2021, when in 2020 the increase had
been 12% over the previous year. This is
30
mainly due to the new experience in Mobile
and the addition of the loan application
function
the Senior Citizens and
Onboarding Apps. Finally, progress was
in
made in terms of sales security in our digital
channels, where fraud cases decreased to
less than 1% of total sales.
Plan Sueldo
During 2021, we continued with the process
of reconversion
in product operations,
aiming at achieving high efficiency
standards in onboarding, cross-sell, and
customer profitability.
In connection with this, we automated
processes aimed at user self-service, thus
allowing them to have a modern and agile
experience. During 2021, employees who
began to receive their salaries through the
Bank were able to carry out their own On
Insurance
In 2021, the placement of insurance grew by
331% as compared to 2020. In turn, 30% of
the total volume was sold digitally.
We promoted new products that provide
better opportunities for customers, as in
the case of bicycle insurance. In addition,
we improved our value proposition through
bonuses to enhance user experience.
strong growth was
A
in
Guarantees for Tenants, where 56% of sales
recorded
Public Sector
With respect to the Province of San Luis, we
continued providing services as financial
agent. This agreement was approved again
on a quarterly basis in 2021, thus extending
the agreement that has been in force for the
past 4 years.
On the other hand, we also renewed the
financial agent agreements of
three
municipalities in the Province of Mendoza:
Boarding without having to go to a branch.
In turn, they had access to the Bank's
different products at preferential costs
and/or rates.
To a great extent, these actions boosted
Plan Sueldo's business, increasing market
share, and encouraging us to continue
searching for innovative alternatives that
allow us to be an agile, friendly, and simple
bank.
were made through the digital channel. We
improved the form filling process on the
website, which, together with 24 hour
approvals, allowed for a greater agility in
operations.
In 2021, 1,000 auto insurance policies were
sold, 68% through the digital channel. We
entered into an agreement with the new
partner 123 Seguro and with Allianz, Sancor
and Orbis.
Luján de Cuyo and San Martín, where the
agreement was renewed for another 4
years, and Godoy Cruz, renewed for only 1
year. Finally, we are no longer the financial
agent of the Municipality of Las Heras,
Province of Mendoza, but we continued
providing services to this municipality, such
as the payment of salaries to municipal
employees.
31
2. Corporate Banking
The Corporate Banking department of
Banco Supervielle
four
is
commercial areas:
formed by
1) AMBA Corporate Banking, which deals
with companies operating in the city of
Buenos Aires and Greater Buenos Aires.
2) Corporate Banking for the Interior, which
deals with the commercial relations in the
Provinces of Mendoza, Córdoba, Tucumán,
San Juan, Neuquén, and Santa Fe.
3) Mutual Guarantee Societies “MGS” and
Value Chain, which operates at
the
Headquarters in the City of Buenos Aires.
4) Products and Services, which operates
from the Headquarters in the City of Buenos
Aires and provides services to companies
located both in AMBA and in the Interior.
in
The customer service model consists of
synergy with
constant
working
commercial teams specialized in Leasing,
Cash Management, Foreign Trade, Plan
Sueldo, Insurance and Investments, and is
aimed at meeting the daily operational and
transactional needs of the companies
instruments and
through
customized
Wine Sector
During 2021, Banco Supervielle's Wine
Division ratified its position as a benchmark
in the wine industry by remaining the only
Argentine bank with a specialized team to
serve the sector. This year we became the
number one bank in credit assistance to
wineries (source: Área del Vino, taking into
account both public and private banks).
In the Wine Division, we provide services
across the entire industry cluster, with
specific products and services for each
player involved in the wine business.
services. This synergy is also present in the
rest of Grupo Supervielle’s companies:
Supervielle Asset Management, Supervielle
Seguros, IUDÚ, etc. The objective is to
become the first transactional bank of
choice for our customers and improve
customer profitability.
We strongly believe that providing high
quality customer services is one of the main
drivers for generation of new businesses
and support of our business relations. Our
business and support officers are highly
skilled and play a critical role
in the
relationship with companies. Therefore, we
have various service points in regional
branches in the most densely populated
areas.
industrial
Communication, assistance, negotiation,
and operational activities are carried out at
Corporate Banking nodes.
commercial
and
In 2021, focus was also placed on risk
management, using RAROC tools in order to
strike a balance between profitability and
portfolio quality ratios.
During this year focus continued on acting
as financial brokers in the relationship
between wineries and grape producers and
their main suppliers.
The quarterly wine industry report has
become a permanent reference material for
the executives of sector companies. All
reports are available on the bank's website.
The presentation of the annual report is
already a classic in the industry's agenda. In
2021, the presentation was once again
virtual, which allowed us to reach industry
32
executives connected in different parts of
the world.
This year we continued to support wine
tourism with the renewed proposal of the
in which
Wineries Gastronomic Circuit,
cardholders
from
learn more about the
elsewhere can
industry's processes and enjoy
the
province's typical cuisine.
from Mendoza and
in
During most of the year, the Wine Division
Innovation
team participated
Program
the wine
industry, organized by the Universidad
financed by CAF
Nacional de Cuyo,
(Corporación Andina de Fomento) and
for companies
the
in
Mutual Guarantee Societies (SGR)
In 2021, the Guarantee System is composed
of 55 Entities (including Mutual Guarantee
Societies and Official Guarantee Funds).
In view of the economic and market
situation, the strategy of the SGR Division
was to maintain a prudent policy and
continue operating with the main Sector
Entities with which it has had a relationship
for several years.
Likewise, new entities were added, so that
the number of Companies with which the
Bank operates represents 60% of the total
(compared to 53% in 2020).
Banco Supervielle also maintained
its
leading position in the sector, and was
recognized as the “MGS’s Bank” by the
Cámara Argentina de Sociedades y Fondos
de Garantías
[Argentine Chamber of
Guarantee Societies and Funds] (Casfog)
and by the Supervisory Authority (Ministry
of Production/Sepyme).
Banco Supervielle also remained a leader in
terms of product development and
innovation, extending operations to other
companies of Grupo Supervielle.
In
addition, Check Discounting continued
consolidating
in the Securities Market
through Invertir Online.
coordinated by the Chilean consulting firm
Transforme. This is the second stage of the
process that began
in 2018 with the
Innovation Week and will culminate in the
creation of an
in
Mendoza's ICT hub. This new program
lasted 9 months and one of the ideas
contributed by our Wine Division was
recognized as one of the most outstanding.
Innovation Center
In November, Banco Supervielle's Wine
Division won the "Fortaleza en Innovación"
award in the Large Companies category,
granted by the Fundación de la Universidad
Nacional de Cuyo.
to
In 2021 we worked on the development of
value chain financing, as part of our
objective
comprehensive
achieve
relations with each of our customers,
developing value propositions for
large
companies that generate new businesses
with their suppliers and customers.
The service model is based on working in
constant synergy and cross-sectionally with
all the Bank's commercial teams (SMEs,
Entrepreneurs & SMEs and Corporate
Banking) as well as with other Departments
such as Segments, Sales Force, Credit,
Finance, Securities Market, and companies
of Grupo Supervielle
IOL
invertironline).
(SAM and
We worked with companies from different
sectors (Food, Supermarkets, Agriculture,
Wineries, etc.) contemplating the financing
of both the commercial chain (customers)
and suppliers, with the use of tools whose
design was adapted to the particular
characteristics of each activity.
33
Loans
As regards commercial loans, a renewed
offer of special facilities was developed to
suit the needs of the different corporate
segments together with sales in digital and
in-person channels, enhancing services such
as invoice discounting, echeqs, overdrafts
and loans. The offer to SMEs was also
improved by joining the Fogar, Fondefin,
Fondep and Mipyme plans and by offering
production and investment loans.
the
continued
communication
strongly
During 2021 we
developing
and
management strategy to position the bank
at the top in order to obtain a growing
market share in the different regions where
it does business, participating in different
credit and financing programs, as well as in
for
the offer of
subsidized
lines
Leasing
With focus on financing capital goods for
SMEs, the financial leasing, operational
leasing and sale & lease back products
continue being offered through the bank’s
branches and business centers under a
specialized service model that provides
advice and enhances the use of this
financing tool that has tax benefits.
Foreign Trade
increase
The
in the bank’s volume of
transactions as a result of commercial
actions, clusters built with differentiated
pricing in FX and the support of service
indicators contributed to the achievement
of two historical records in market share by
number of transactions.
With respect to the service standard, we
handled a daily average of 83% of the
transactions entered before the cut-off
time.
In addition, in order to continue improving
customer experience, we maintained our
(Global Payment
performance
the 90% average
Innovation), above
in GPI
development and investment. To this end,
we participated almost exclusively
in
development programs and agreements
with financial entities with a view to
promoting productive activities.
to
improving customer
With a view
experience, we
the
reviewed
fully
management process of credit products. As
implementing
a result, we continued
changes in the management model with
focus on digital transformation, introducing
invoice
the
leasing,
discounting,
foreign
different
management models and current processes
and detecting points of improvement to
obtain significant customer-centric benefits
for the bank.
for
loans, agreements,
agile methodology
analyzing
trade,
Throughout 2021, based on the productive
investment line that allowed continuous
placement, we entered into 507 contracts
for an amount of AR$ 6,186 million, thus
achieving a significant improvement in our
market share and maintaining our leading
position. The placements were mainly for
companies in the Transportation & Logistics
and Industrial sectors.
established by SWIFT. With this adoption,
payments are promptly and safely sent
within the banking hours of the receiving
entity.
Along the same innovative line, and as a
result of our commitment to offer a
differentiated value proposition to Comex
customers, we partnered with SIDOM, with
34 new customers during the year. In this
way we had access to target companies
such as Fiat and Nestlé, among others.
This step reflects our continuous search to
the
provide
management systems of exporting and
solutions
boost
and
34
importing companies with agile and simple
digital tools.
for
A relevant and disruptive fact for the
market was the launching of a Payment
Button
import duties, which was
developed together with SIDOM (Uniendo
into
Mercados S.A.) and which put
operation the product SIDOM Pay. Using
the same environment and within a few
Payment Methods Experience
In 2021 progress was made in the bank’s
positioning
the Payment Methods
industry, with 117,000 MODO users, above
expected levels.
in
As for Debit Cards, there was an increase in
consumption driven, in part, by a migration
of benefits from Credit Cards to Debit Cards.
In addition, we expanded capillarity in
supermarkets (adding offers for subsidized
low
income segments), promoted the
development of self-service functionalities
in digital channels and automated the
additionality process.
In relation to Credit Cards, we implemented
the Visa tokenization project. At the same
minutes, customers can formalize, generate
VEP [e-payment tickets] and pay duties by
debit to the Supervielle account.
Banco Supervielle continues to be the only
bank in the Argentine financial system to
operate
International Factoring
market through FCI (formerly Factor Chain
International).
in the
time, there was an improvement in the
processes, mainly due
to: accounting
reengineering and the development of an
automatic registration process for ABM
credit card rejections.
On the other hand, we had an increase in
the market share of purchases vis-a-vis
market standards.
In addition, the app
incorporated the
service payment functionality and the
notiplush, for customer communications.
We also generated new partnerships with
the Chamber of Commerce of Río Cuarto
(Córdoba), the San Luis Shopping Center
and the Municipality of Luján de Cuyo.
Cash Management –Supervielle Collection and Payment
Our Cash products were part of the bank's
transformation, which allowed us
to
reorganize our offer, focusing on funding
products and providing offers with
differentiated value propositions for the
management of collections and payments
to different customer clusters in an agile
and dynamic manner. It was a year in which
the migration to digital and self-service
channels consolidated.
During 2021 we set out to leverage the
cross-sell of collection and payment
products. To this end, the business and
technology teams were strengthened in
order to generate new digital products and
improve user experience.
The Middle Office teams were also unified
improve customer experience and
to
standardize customer
service models.
These teams are relevant because they
solve queries and complaints, which betters
the relationship with our customers.
We also guarantee end-to-end support in
the implementation process, ensuring that
those who purchase our collection and
payment products receive technical and
commercial advice at all times. In this way,
we promote the use of the products from
the moment they are purchased.
In terms of collections, our Cobranza Ágil
improved by new TAS
Supervielle was
35
terminals that were installed throughout
our service branch network. We gained
capillarity thanks to a service agreement
with Pago Fácil. This allowed us, on the one
hand, to migrate transactions at bank
counters to self-service terminals and, on
the other hand, to make more than 7,000
collection points available to our customers.
In terms of payments, the 100% digital
Multiple Transfer functionality was made
available to customers, and with only 3-
clicks they can upload and send and process
hundreds of payments to suppliers from our
Online Business Banking.
Echeqs, launched by the bank in July 2019,
became a highly accepted product. In 2020
Omnichannel Service Model – Onboarding
Another major milestone of the digital
is
transformation we are undergoing
related to the new capabilities of acquiring
customers through the Onboarding digital
channel. We closed the year with some 45
thousand new registrations, of which 18
thousand were credit customers who
purchased a credit card package, and 7
thousand of these were Identité segment
customers. Onboarding now accounts for
45% of all new registrations in the Personal
Personal Online Banking (OBI)
In 2021, there was an increase in new
customers through this channel compared
to 2020. In the Personal and Identité
segments, the increase was 15%, from 159
thousand new customers to 278 thousand
through OBI.
the bank already had a very complete range
of functionalities that were increased in
2021, which allowed market share to
continue growing.
and
payments
Finally, the transformation process of the
collections
teams
undoubtedly generated an improvement in
the delivery of our transactional products,
allowing us to focus on and provide a
substantial
in the agility,
monitoring and evolution of our products,
placing the customer at the center and
providing digital solutions in a complex year
for the management of collections and
payments.
improvement
(physical)
is
and Identité segments. A significant fact
that shows how we are facing the challenge
of
customer
traditional
acquisition channels
the additional
capacity to acquire customers through
Onboarding in territories without physical
branches, a.k.a. Virtual Branches. The last
year's new customer acquisitions showed
that 10% of our new customers came from
these territories.
At the same time, we launched the first OBI
functionalities and
version, enhancing
customer experience.
We added a chat functionality to the
platform, with 6,348 initiated conversations
in the first 7 days, which represent 58% of
the total initiated conversations in the
channels where chat is available.
Mobile
In 2021 we had a strong growth in new
customers through this channel, improving
by 36% over 2020. Thus, we went from 231
thousand new customers to 315 thousand
generated through Mobile, with an App
store rating of 3.8 points.
At the same time, we launched the new
App, which has better functionalities and an
36
improved experience
payments, cards, and loans, among other.
in wire transfers,
Branches
semi-enclosed
"Espacios 24" with
During 2021, we implemented 21 24-hour
Lobby
terminals
available 24x7, providing greater security
through
terminals and
security turnstiles. We also set up 13
"Espacios PyME" at branch offices, which
resulted in 95% of cash withdrawals being
carried out through terminals, “Espacio 24”
thus achieving a higher than 45% NPS.
3. Treasury and Finance
Trading Desk and Institutional Sales
In 2021 we increased our Trading Desk
transactions in government securities and
derivatives for our own portfolio as well as
for third parties, reaching a market share of
in October. Additionally, we
3.09%
the development of
continued with
the
increasing
algorithmic
strategies applied.
trading,
Correspondent Banking
During 2021, commercial relations were
maintained with foreign banks related to
correspondent
the management
of
4. Capital Markets and Structuring
for
The main objective of the Capital Market
and Structuring area is to originate and
structure
the
financing products
Argentine corporate Capital Markets. The
idea is to provide financial advice services
which allow both its customers and Grupo
Supervielle and its subsidiaries to optimize
resources and capital
their
the
to maximize
in order
structure
profitability of their operations.
financial
We reached 21 thousand new users with
biometric
the
principal registration channel.
registration,
this being
At the same time, we implemented the
MVP for the Virtual Individual HUB in San
Luis, resulting in 1,300 individual customers
being assisted through video calls, thus
leading to an NPS of over 80%.
Finally, we carried out the consolidation of
branches, where 50 thousand customers
from 6 branches were migrated.
The share in the total institutional deposits
positioned Banco Supervielle among the
major banks of the system in this market.
Additionally, we placed 42 corporate debt
issues throughout the year, against 20
issues in 2020.
the
financing
accounts,
transactions
guarantees and letters of credit.
of Comex
the operation of
and
The sector
is mainly focused on the
Organization and Placement of Negotiable
Obligations, structuring of Financial Trusts
and Syndicated Loans, IPOs, Private Capital
Transactions and Mergers and Acquisitions,
with a view to providing comprehensive
advice on each product, generating long
term relationships with customers and
investors.
The capital market during 2021 was more
dynamic than in 2020, a year strongly
37
affected by the Pandemic. In 2021 we
continued to increase our presence in the
debt market by accompanying our
customers in the issuance of Negotiable
Obligations for an amount close to AR$ 42
billion. Several of them are frequent issuers.
and
Likewise, we continued to consolidate our
position as a benchmark in the placement of
secured
financial
instruments for Small and Medium-Sized
Enterprises (SMEs). We placed a total of
seventeen SME Negotiable Obligations and
six SME Financial Trusts in 2021.
unsecured
through
Within the segment of SME´s Secured
Negotiable Obligations
the
Simplified Regime, we were a benchmark
for the market during 2021, with the Bank
acting as Guarantor, Arranger and/or Dealer
in 12 transactions.
5. Support Areas
Information Technology
In 2021 the Information Technology Area of
Banco Supervielle continued developing the
comprehensive transformation process so
as to continue acting as an agile technology
area that provides tools to improve time to
market and providing new business
opportunities to the organization, with
focus on the generation of business
opportunities and of technology-based
businesses.
Under an agile and modern operating
model, based on employees, processes, and
technologies, supported by a reference
architecture, we continued searching for
improvements
flexibility and
to our
efficiency. In 2021 we consolidated the
current model, fully integrated to digital
transformation and all its domains, with
initiatives already implemented, such as:
Centers of Excellence in Agility, Analytics
and Architecture, Lines of Experimentation,
Lines,
Multidisciplinary Cells,
Service
In 2021, the Bank acted as Dealer in the first
issue of an SVS (Social, Green, Sustainable)
SME Negotiable Obligation for the company
SION SA.
regards
Financial
As
Trusts, Banco
Supervielle participated as dealer of the
Unicred Factoring Series XII and XIII, XIV,
COMAFI Leasing Series XV, R.G. Albanesi
Series XII and HAB Series I and II.
In 2021, the Mergers & Acquisitions
segment continued providing advice to
different companies on Valuations and
M&A.
Operational Backbone, and a Technological
Governance Office.
Additionally, we also carried out a series of
transformation initiatives to generate new
customer experiences and to strengthen
existing services and satisfy customer
demand. This technological strategy, which
is part of the continuous integration with
the ecosystem, was key for accelerating the
implementation of
the bank’s digital
line with
transformation strategy,
applicable regulations. Some of these
initiatives include:
in
•
new
digital
of
Implementation
capabilities: based on a data lake that
turns us into a data based organization,
with a 360 degree view of customers
and advanced analytics and AI models.
• Consolidation of the Way to the Cloud,
moving towards a continuous migration
of solutions within a multi –cloud
solution strategy, aimed at reducing
operating costs and increasing flexibility
38
to adapt to the needs of a volatile
environment.
• Evolution of Digital Channels, through a
new efficient customer service model in
our offices, with an architecture that
enables terminals to be available 24x7,
using technologies such as biometrics,
in an omnichannel engine that enabled
us to
launch new apps based on
customer experience, with high ratings
in app stores.
• Launching of the video assisted Virtual
Hub, a new model of virtual branch, an
important
improvement within the
concept of digital banking.
• Growth of the API catalog, with a 90%
increase in the number of productive
APIs as compared to December 2020.
• Strengthening of the comprehensive
Service Continuity program, and of the
Operations
2021 was a turning point for Operations and
Central Services teams, that led the change
of the management model based on metrics
with direct effect on achieving efficiency
and improving service levels that have an
impact on customer experience, such as
through
shorter
workshops and
to
commercial channels.
times,
training delivered
reprocessing
We analyzed the implementation of new
initiatives and of those launched during the
prior year, automatized more than 16
processes, participated in the creation of
the first cells with the operations team,
introduced the first formal cell to the
management area (Delivery).
We reduced office spaces that were not in
use due to home office implementation,
Assets-Assets scheme on the most
critical components under a mature
DRP and with no impact on services,
reducing the number of incidents per
year and improving by 30% the core
system
for
channels.
• Evolution of
availability window
the Banking Core,
exceeding the modernization objective
established for the year.
of
experimentation
environment, giving way to innovation
on concepts such as blockchain and
asset tokenization.
• Creation
an
• Update of in-person channels, with the
acquisition of 160 terminals during
2021.
and because we will not go back to the
traditional office model as we realized that
now our teams are more efficient.
the
different
During recent months we moved forward
with the reorganization of the management
area, separating the teams so as to serve
directly
Experiences
(Individuals, Payment Methods, Businesses
and Service Channels), as a prior step to the
great 2022 challenge: implementation of
Agility to Operations as a usual interaction
model
identified
activities/products/processes which are
strategically key
for the growth and
escalation of the business.
previously
to
B.3.2. Consumer Finance Segment: IUDÚ Compañía Financiera
The consumer finance business is carried
IUDÚ Compañía
out mainly
through
Financiera.
IUDÚ Compañía Financiera
(IUDÚ) started operations in August 2011,
39
when Grupo Supervielle acquired GE
Money, the financial services division of
General Electric. The shareholders of IUDÚ
Compañía Financiera are Banco Supervielle
S.A. and Grupo Supervielle S.A.
As of 2022, and due to the transformation
of the IUDÚ business model that is under
way,
finance segment
changed its name to IUDÚ Digital Financial
Services segment.
the consumer
Cordial Compañía Financiera was a
company specialized in credit and consumer
finance services to individuals. The business
model implemented in the past provided
financial solutions to its target segments,
mainly C2 and C3. Following a deep digital
and cultural transformation process, and
the change of name before the Central Bank
for that of IUDÚ Compañía Financiera, the
new brand was launched to the market. The
comprehensive proposition of digital
financial services is currently consolidating
with the development of new products such
investments,
as
aimed at a wide segment of bankarized
customers with a 100% digital experience.
funding products and
During 2021 IUDÚ launched new services
and products through a 100% digital
onboarding
cutting-edge
app with
technology. The app is available at Google
Play and App Store and enables users to
easily create a digital account with CBU
[Standardized Bank Code] and have access
to a virtual VISA debit card, apply for
personal loans and credit cards, make all
kinds of transactions through the mobile
phone and pay with a QR code through the
MODO app. Development of this proposal
will continue in 2022, offering new products
and making operations easier, promoting at
the same time financial education through
tools that will help customers in their
decision making process.
We maintained the strategic alliances in the
Retail sector, mainly with Chango Más
(formerly Walmart); we were among the
largest private MasterCard credit card
issuers, and we continued strengthening
and improving our value proposition.
In line with the company’s principle “the
best digital experience, placing customers’
time and savings first,” the main pillars of
IUDÚ are:
Transparency and clarity: offer
(i)
customers easy access to information, and
clear communication of the products with
benefits.
Savings and control: of time and
(ii)
costs for traditional banking products.
Greater yield: they pay less for
(iii)
financial products, and have access to
benefits promotions with IUDÚ debit and
credit cards. They also receive monthly
interest on the balance of their bank
accounts.
Digital Access and greater product
payments,
credit,
such
as
(iv)
offer:
investments, etc.
The omnichannel concept enables IUDÚ not
only to be available through any Android or
IOS compatible device but also to be
physically present in 22 provinces through
99 points of sales of its 2 main marketing
channels:
Chango Más (formerly Servicios
●
Financieros Walmart)
●
Tarjeta Automática
40
Channels and Regions
Walmart, Chango Más and Tarjeta Automática Consumer Networks
In September 2021 an agreement was
into with Grupo De Narváez
entered
whereby we
the exclusive
financial partner of Chango Más stores.
remained
We also implemented new digital sales
processes for personal loans and credit
cards remotely, without going to the bank’s
offices. We intend to implement a new
Digital Onboarding process,
virtually
operated by our sales force.
We implemented a new origination system
which reduced the granting of loans and/or
IUDÚ App
In November 2020 we launched IUDÚ with
a first MVP of asset products through the
app available at App Store and Google Play
for IOS and Android operating systems. The
app is user friendly and uses cutting-edge
technology
recognition and
face
security. It only requires customers to
upload some data, scan their ID and take a
selfie.
for
In November 2021 we added the digital
account to the existing personal loan and
Products
During 2021 we marketed the following
products:
• Open Credit Card: for purchases in
stores accepting MasterCard. Said cards
may be obtained 100% digitally using
the IUDÚ app, at the booths located at
Chango Más
(formerly Walmart
Argentina S.R.L.) and at any of the 20
Tarjeta Automática S.A.’s offices.
• Personal Loans: cash loans with fixed
interest rate.
• Consumer
Loans:
for purchasing
specific products, the transaction is
completed upon delivery of said
products.
credit cards from 40 to 7 minutes, thus
considerably improving productivity and
customer service.
We maintained special product offers at the
commercial events of the main partner
(Chango Más).
As regards the commercial strategy, we
expanded our value proposition with new
products available
in our own stores
network to satisfy the needs of customers
and prospects.
credit
Contactless MasterCard
card
proposals. With the app anyone over 18
may become a customer and open an
interest bearing savings account 100%
online, in a few minutes and free of charge.
Customers have access to a virtual debit
card that may be linked to e-wallets. It may
also be used to make payments via QR code
because IUDÚ is integrated to MODO, the e-
wallet system of all Banks.
•
•
• Car Loans: marketed through MILA (a
Supervielle
Protected
subsidiary
of Grupo
specialized in car loans).
Insurance: a wide array of Personal
Accidents,
Bag,
Unemployment, Total Protection and
Pets insurance policies.
Interest bearing digital accounts:
opening of savings accounts free of
opening,
charge
maintenance and ATM transactions,
yielding a 15% interest rate on the
balance. Customers may make transfers
to other savings accounts using CBU or
CVU, make deposits, cardless cash
withdrawals, schedule large amount
regards
as
41
transfers, receive and apply for Debines
[Immediate Debit], make withdrawals
at Banelco and Link ATMs in Argentina,
pay credit card charges or
IUDÚ
personal loans. In the near future, due
to
IOL
invertironline, customers will be able to
integration with
an
2021 Projects
During 2021 we continued working on the
strengthening of the business and on the
implementation of the following strategic
pillars:
the
consolidated
structural
1. We
transformation process aimed at becoming
a customer-centric, agile, and horizontal
structure. The design of an agile
organization was based on the customers’
lifecycle and the three main tribes that are
focused on customer acquisition, loyalty
and delinquency/close in order to generate
a better customer experience.
2. Customer segments were expanded to
include not only mid and
low socio-
economic level customers but also mid
socio-economic level customers.
3. New liability products were added to the
value proposition, that will enable the
development of a retail deposit franchise.
4. The application assessment process
provide
continued
reengineering
flexibility and speed to credit policy
implementation while maintaining said
policy at prudent risk levels.
to
5. Changes were
implemented to the
origination policy to maintain repayment
capacity, mainly of those segments mostly
affected by the macroeconomic situation
resulting from the pandemic.
6. We continued working on screening
collection
implementation,
strategy
IUDÚ Competitive Advantages
IUDÚ Competitive Advantages are:
make investments and pay services
through the app.
• Debit Card: a virtual Visa card, to pay
virtually which may be linked to e-
wallets. The physical card will be
implemented soon.
management tool optimization and of
predictive models review to guarantee
collection levels.
7. We successfully implemented ERP- SAP
S4 HANA and new financial CORE software.
8. We increased product cross selling.
9. We adapted the structure to the new
situation, thus cutting down expenses.
10. We focused on the quality of the
portfolio, thus reducing exposure.
for
customers
Other 2021 projects: we continued working
on digital channel reengineering with
developments of websites and APIs; we
implemented new activation processes for
inactive customers and cross selling for
active customers, we carried out an account
and non-
launching
customers, we launched the Sumás blog as
part of IUDÚ’s financial education program,
we integrated the IUDÚ app to MODO, so
that customers may make transfers and
payments via a QR code, we launched the
IUDÚ Car App, whereby car dealers may
grant car loans, we automated critical and
most used customer service processes so as
to improve service level, quality and reduce
response times, and we implemented NPS,
satisfaction
and
response
measurements.
customer
• Comprehensive proposal for digital
financial services through the IUDÚ app,
42
which offers
product
management.
immediate access to
self-
and
acquisition
• Offices throughout the country and
self-management, a
100% digital
unique feature within the financial
industry.
• Cobranding agreement with Chango
Más for the marketing of financial
products.
• Wide portfolio of products related to
deposits, loans, and investments to
address the needs of a wide customer
segment.
In 2022 we will be launching new products
that will help consolidate IUDÚ in the
market, with a full offer of digital financial
2022 Projects
In 2022 IUDÚ’s strategy will be oriented to
the development and growth of the
portfolio of digital customers and the
acquisition of new customers. IUDÚ will
seek to become the most comprehensive
financial services
for digital
proposal
available in the market.
The main projects will be the following:
• Development of new products: USD
denominated savings accounts, time
deposits and other
investment and
products, which will
insurance
complete the digital services offered
through the IUDÚ App and through the
branch network as well.
Credit and Collection
the credit
The Board approves
risk
strategies and policies submitted by the Risk
Management Committee as set forth by the
BCRA regulations. Credit strategy and policy
at developing business
are
opportunities in line with IUDÚ’s business
plan, while maintaining
adequate
prudential risk levels.
aimed
IUDÚ has in place rules, procedures, and
tools (credit policy manual, scoring system,
negative credit history, verification process,
savings
products and services: Time deposits, USD
denominated
and
investments such as Mutual Funds, Cedear
and purchase of MEP US dollars due to the
integration with IOL invertironline.
accounts,
We will also boost the new brand within the
network of Chango Más stores through the
Cobranding
agreement and we will
continue working on the synergy among
distribution channels so as to offer a
comprehensive digital oriented proposal to
all customers.
to
improve
• The implementation of new IUDÚ app
customer
versions
experience, and new functionalities
such as payment of utilities, turning the
cards on and off, virtual credit cards,
payment of credit card purchases in
installments, among other.
• Completing the automation of all the
arrangements required by customers,
limit,
such as
cancellation of products, request for
debt
filing
clearance
chargebacks, 100% digital.
increase of credit
certificate,
policy)
that make
recovery
risk
management more efficient taking into
account the type of customer. The Credit
Risk & Stress Test Department regularly
monitors risk exposure.
In 2021 we introduced changes to the
origination policy to verify the repayment
capacity, mainly of those segments mostly
affected by the macroeconomic situation
resulting from the pandemic.
43
Collection Management
Collection is managed by a team of experts
who apply specific processes
for the
different stages, as follows:
• Early delinquency;
• Advanced delinquency; and
• Delinquency that requires the filing of a
court proceeding to obtain payment.
In 2021 we continued reviewing the
screening strategies, optimizing collection
tools, and reviewing predictive models to
obtain a better approach to nonperforming
customers and improve efficiency.
Consumer Finance Segment: Espacio Cordial de Servicios
finance
Cordial Servicios has been part of the
consumer
sector of Grupo
Supervielle since August 2018. It was
established in October 2012 and started
doing business in December of such year. Its
object is the sale of any type of goods and
insurance, tourism,
services related to
health care plans and/or services and other
goods and services provided for in its
corporate by-laws.
country,
During 2021 Cordial continued operating in
the already developed direct and indirect
channels. The direct channel continued
developing through POS located at services
Branches of Banco Supervielle throughout
the
home
appliances, health care plans, security
plans, prepaid services, and tourism. The
Services and Assistance category continued
developing in partnership with Walmart
and Chango Más, with 100 additional POS
and stores.
selling mainly
The services and assistance category
continued developing the digital channel
with the sale of health care plans through a
strong online strategy in the social media
and developing and launching digital self-
management products for the subsidiaries
of the Supervielle consumer division and
the launching of new digital products.
During 2021 14,085 home appliances were
sold, generating an income of over AR$ 149
million, and 125,000
service plans,
generating an income of over AR$ 916
million.
The goal of Cordial Servicios for 2022 is to
increase income from the 78 existing points
of sale and the already developed indirect
sales channels, focusing on
improving
customer experience. As regards insurance,
services, and assistance we will develop
new products for all channels, strengthen
the digital strategy and continue developing
new alliances.
As regards indirect channels, the telephone
channel continued to be used for the sale of
prepaid health care services.
Consumer Finance Segment: Microlending S.A.U (Mila)
Microlending S.A.U (Mila) is a Company
engaged in the origination of car loans and
was acquired by Grupo Supervielle on May
2, 2018.
In 2021 Mila, directly and through third
parties, originated car loans for a total of
AR$ 2,915 million from 5,540 transactions.
That represented a 143% year-on-year
growth in terms of capital and 118% in
terms of number of transactions.
abovementioned
performance
The
in an economic environment
occurred
featured by a slight increase in the sale of
cars, both new and second hand. In 2021 a
44
total of 381,777 new cars were sold. As
compared to 2020, the sale of new cars
increased by 18%.
car
loans,
The goal of MILA for 2022 is to increase the
number of
the
development of three strategic pillars:
greater commercial efficiency and greater
capillarity of the commercial network,
launching of new financial products and the
through
B.3.3. Insurance Segment
Supervielle Seguros
insurance policies,
Supervielle Seguros S.A. is focused on the
marketing of
in
particular Personal Accidents, Protected
Bag, Life, Home, Protected Content, Total
Protection, Broken Bones, Pets, Bicycles,
Multi-Peril and Protected Technology
through the networks of Banco Supervielle
S.A., IUDÚ Compañía Financiera S.A. and the
digital channel, as well as on the issuance of
Credit Related and other
insurance
intended to meet the needs of our different
channels and customers. The sales channel
of Supervielle Productores Asesores de
Seguros was recently
in the
segment.
included
In 2020 the company began a digital
transformation process, and a capabilities
building process was carried out both in the
area of Systems and of products,
particularly
in the area of Customer
Experience that enabled us to move
forward
in the organizational
transformation process.
in 2021
2021 Highlights were:
• Sale of Car insurance through Banco
Supervielle’s online banking.
leveraging of synergies within Grupo
Supervielle.
Collection will continue being key, in an
effort to maintain delinquency indicators
and court and out-of-court collection at
stable levels.
by
the
• Continued
the
development
Technology Department of the APIs
strategy, which was
successfully
implemented. This provided Supervielle
technological
Seguros with
capabilities required to leverage the
business on the digital channels.
Implementation of SAP.
•
• Design and implementation of digital
sales strategies: concept tests oriented
to market performance.
Implementation of projects based on
customer insight: customer retention,
marketing, and communication plan.
• Development of new products: Lost
Profit Insurance (Brokers channel), NCR
Products, Bicycle and Pet Insurance.
• Creation of content for social media and
support material for the commercial
team: Easy Policies, tutorial videos and
product manuals.
•
• Development of the new identity of
through
Supervielle
communication,
identity and style
manuals, creation of the voice and tone
to accompany the customer journey.
Seguros:
Supervielle Productores Asesores de Seguros (Supervielle Broker de Seguros)
In 2019 Grupo Supervielle created a new
company, Supervielle Productores Asesores
de Seguros, focused on Entrepreneurs and
SMEs, and SMEs, Medium and Large
Companies. This allows an improvement in
risk management, offering advisory services
to our customers and adding value to the
45
comprehensive
Supervielle.
proposal
of
Grupo
We added a team of insurance specialists in
each region so as to provide advisory
services and create synergies to detect new
business opportunities.
Our goal for 2022 is to consolidate the
business and offer new products, so as to
meet all the needs of our customers.
We have a highly experienced team and the
necessary technological tools to offer
services of excellence to our customers,
both internal and external.
B.3.4. Supervielle Asset Management (SAM)
SAM offers mutual fund services designed
to cover a broad range of possibilities in
investment objectives and risk profiles. It
manages the PREMIER family of funds.
in Pesos
The PREMIER family of funds consists a
Money Market Fund (Premier Renta Corto
Plazo en Pesos), two Argentina Short Term
Fixed Income funds in Pesos (Premier Renta
Plus, Premier Renta Fija Ahorro), six
Argentina Fixed Income and Mixed Income
(Premier Renta Fija
funds
Crecimiento, Premier Capital, Premier
Commodities, Premier Inversión, Premier
Balanceado and Premier Renta Mixta), two
Argentina Fixed Income funds in US dollars
(Premier Renta Mixta en Dólares and
Premier Performance), a Variable Income
fund (Premier Renta Variable), and an
Investment Fund in SME assets (Premier FCI
Abierto PyMEs) and a Fixed Income Latam
fund (Premier Global Dólares) and a close
fund (Adblick Ganadería).
Assets managed at the end of 2021 show an
increase of 90%
(on average as of
December), similar to industry results. The
managed funds as of December amounted
to AR$ 73,705 MM, on average, which
represents a 2.05% market share.
The Money Market
fund showed an
increase of 87%, mainly due to the
investments of corporate and institutional
customers,
the
managed funds in December 2021.
representing 73% of
The Argentina Short Term Fixed Income
funds in pesos (T+1) showed the greatest
growth ( 370%), and represented 12% at the
close of 2021 as compared to 5% in 2020.
The Argentina Short Term Fixed and Mixed
Income funds in pesos (T+2) grew by 50%,
and its share on the total managed funds
decreased from 13% in 2020 to 10% in 2021.
As regards the type of portfolio customers,
the volume of corporate investors grew by
155%, institutional investors fell by 12% and
individual investors grew by 118%. Thus, the
customer base changed as compared to the
previous year, and at present corporate
investors represent 79% (59% in December
2020), institutional investors represent 18%
(38% in December 2020) and individual
investors represent 3% (3% in December
2020). The decrease of
Institutional
customers was mainly due to a change in
regulations that fix limits on money market
fund investments to maintain liquidity of
fixed, mixed, and variable income funds.
through
Products are marketed
the
channels of the Depositary Company, Banco
Supervielle, representing 99% of managed
assets, and External Dealers, which account
for the remaining 1% of the managed
assets.
Banco Supervielle places funds through the
in-person channel of its Branch network,
Centro Integral de Inversiones (Call center)
and mainly through the Home Banking
digital channel.
Transactions carried out by corporate
Banking
customers
represented 57% of total transactions in
December 2021, and rises to 94% if we take
through
Home
46
into account the Business and Personal
Banking division.
In December 2021, 97% of the transactions
carried out by individual customers were
made through Home Banking.
The objectives for 2022 are based on the following pillars:
• Digital Platform: redefinition of digital platform: Mobile- FCI Premier
•
Internal Channels: redefinition of incentives for the sale of mutual funds. Investments
squad.
• ACDIs: Placement agreements with Markets and AlyCs [Clearing and Settlement
Agents].
B.3.5. IOL invertironline
to
seize
IOL invertironline is a fintech which was
established in 2000. The objective of its
founder was
the growth
opportunity of the e-trading segment in the
region, where both the financial sector and
the new technologies were lagging behind
as compared to more developed regions. It
was acquired by Grupo Supervielle in May
2018.
IOL
(IOL)
is
Invertironline
At present
its main
in “Online Trading,”
engaged
purpose being “To reinvent the way people
invest so as to help them boost their income
and savings,” and its mission “To be the
most valued and number 1 investment
platform in Latin America.” To that end, its
value proposition is to offer an agile, simple,
transparent, innovative platform that suits
the profile of each customer.
Some of our competitive advantages are:
• Over 20 years of experience in the
market.
• Designed from scratch as a 100% online
broker.
• Wide array of services through a user-
friendly platform.
“1 to N” scalability.
•
• Proprietary technology. Knowledge of
the Fix Protocol.
• The most visited
Investments and
Finance website in Argentina.
• Education platform to democratize
trading services.
• Leading position in social media.
•
IOL is the agent with the largest number
of custody accounts.
and
[Agente
Portfolio
Securities
Pursuant to Provision No. 2.392 of the
Argentine
Exchange
Commission dated September 22, 2014,
InvertirOnline S.A.U. was registered as
Clearing and Settlement Agent with
Proprietary
de
Liquidación y Compensación Propio] under
number 273. Additionally, pursuant to
Provision No. 2.926 of the same agency,
dated November 24, 2015, the Company
was registered as Mutual Fund Clearing and
Proprietary
Distribution Agent with
portfolio
y
Distribución Integral de Fondos Comunes de
Inversión] under No. 1.
[Agente de Colocación
In 2021 we focused on consultancy services
such as Zendesk,
through platforms
Clevertap,
to better understand our
customers’ behavior and detect their needs
promptly. We opened 10,000 monthly
accounts on average, reaching a total of
324,000 accounts at year end, which
resulted in an increase in the number of
active customers, from 80,000 in 2020 to
110,000 in 2021, generating approximately
420,000 transactions per month. Due to our
integration with Banco Supervielle, the
bank’s customers can have access to our
services with a single click, generating
47
synergies among Grupo Supervielle’s
companies.
In 2021 we also worked on rebranding. We
changed from invertironline.com to IOL
invertironline, and we presented a new logo
and a new palette in the web.
Within the courses platform, an important
milestone in 2021 was the launching of the
school of brokers, which enabled students
to sit for an exam before the CNV and start
a career.
Due to our customer base, IOL continues to
be among the top companies in the BYMA
ranking as regards traded volume.
B.3.6. Bolsillo Digital
Bolsillo Digital S.A.U. (Bolsillo Digital or
Boldi) is a Grupo Supervielle company,
under the control of Banco Supervielle. It is
registered as “Payment Services Supplier”
with the corresponding Register since
07/24/2020, under No. 33.540.
From the business point of view, Bolsillo
Digital is a Fintech that is part of the growing
industry of payment methods. We design
and develop collection processing products
and
to
merchants and individuals, facilitating their
the digital payment
integration with
system.
services, offering
solutions
The main activity of Boldi is to provide
focus on the
payment services with
“Payment Method Aggregator” business,
and has an active participation in the
growth of Grupo Supervielle’s role of
acquirer.
Bolsillo Digital also seeks to develop
digitalization, reduce the use of cash, and
foster financial inclusion, offering more
opportunities to merchants, independent
professionals, SMEs, and entrepreneurs.
is
to contribute
the
Our vision
development of a payment and collection
ecosystem within Banco Supervielle, where
to
In 2022 we will continue strengthening the
relationship with our customers to provide
advisory services and to simplify the
operations with a view to improving their
investments. Some of those projects are the
development of a mobile app for customers
to easily operate
their
investments, as well as the development of
one-click products that will help customers
in their decision making process.
view
and
Besides, the next year we will carry on with
the integration through APIs with other
platforms, such as IUDÚ, to increase our
portfolio, achieving a synergy among their
services and our investments platform.
find
solutions
customers
to
issuance, acquiring, wallet, collection,
online payment, ecommerce services,
among other.
related
Relaunching of IUDÚ PAGO, now BOLDI
In June 2020 we launched IUDÚ PAGO, a
“payment facilitator” whereby enterprises
and individuals may charge their services
and/or products through debit and credit
card using an mPOS and a payment link. The
value proposition also includes e-wallet
products such as recharge of SUBE card and
mobile phones and a Prepaid card (for
purchases and withdrawals).
Later, throughout 2021 we developed and
implemented new functionalities:
•
Implementation of payment of services
through the app.
• Launching and
communication of
for
exclusive promotions at Boldi
customers of Supervielle cards.
Implementation of Push notifications in
the app for instant communication with
customers.
•
• Purchase in China of new Contactless
MAGIC POS terminals bearing the Boldi
brand, the latest model in the market.
48
•
•
• Development of EMV technology (chip)
for POS terminals (in stock and new) to
make our customers’ sales more secure.
Integration via API with Andreani for
the delivery of prepaid cards and POS
terminals, to improve the SLA.
Implementation of Lexis Nexis PLD
control to customers’ stock.
Integration
Web
to
http://www.boldi.com.ar of a 24x7
Chatbot for fast and user-friendly self-
management.
Implementation of Bi Model for Boldi
data ingestion in Lake DW.
the Boldi
•
•
• POS terminal purchase and payment in
•
cash at Pago Fácil.
Implementation of new Ahora 24 and
Ahora 30 payment plans.
aspects:
in 2021
all product
Additionally,
IUDÚ PAGO was
rebranded as “BOLDI.” This name derives
from PSP: Bolsillo Digital. The new brand
app,
affected
onboarding, customer dashboard, internal
Boldi self-management system, Boldi’s
website, etc. Together with the marketing
team we implemented an ambitious plan to
gradually launch the new brand, mainly in
the digital media but also in the traditional
media such as outdoor advertising, radio,
local newspapers in Mendoza and San Luis,
where Banco Supervielle has a leading
market position.
As regards alliances, in 2021 we continued
entering
into agreements with various
chambers of commerce in the city of San
Luis, Villa Mercedes (San Luis), Yerba Buena
B.3.7. Supervielle Agente de Negociación S.A.U.
In 2021 Supervielle Agente de Negociación
continued developing its trading operation
with its own portfolio and began providing
brokerage services to third parties, such as
the US$ Linked Notes.
(Tucumán) and San Martín (Mendoza). We
also entered into an significant agreement
with the Municipality of Luján de Cuyo and
another one with the Municipality of Godoy
Cruz to become the collection agent of local
rates. In terms of large customers, we
implemented Boldi in corporate and SMEs
customers, which reported good volumes at
the end of 2021.
At year end we had 6,910 new customers
terminals), who processed
(with POS
transactions for 671 million pesos.
In 2022, our functionalities roadmap will
focus on the development of a web
checkout API to escalate the business’s
volume. In turn, as part of the financial
interoperability promoted by the BCRA, we
will
implement QR collection as an
alternative sales method for Bolsillo Digital
merchants. Thus we will further digitalize
the use of the physical POS. Thus, we will
implement
and
fraud
a
prevention tool of VISA
INC for CNP
(E-Commerce), ensuring a
transactions
safer sales channel and
increasing the
business volume.
detection
Focused on a marketing strategy, we will
continue developing digital campaigns,
aimed at boosting digital sales through the
E-Commerce channel. The 2022 focus for
the marketing strategy will be to boost the
brand and the use of the product
in
Mendoza and San Luis as the main markets.
The goal for 2022 is to leverage services to
third parties, with a focus on fixed income
transactions with
and
corporate customers.
institutional
49
B.3.8. Regionalization
On August 23, 2021, Grupo Supervielle S.A.
purchased 95% of IOL Holdings S.A., a
Uruguayan company whose object is to
acquire shares in stock exchange companies
in the region. Sofital S.A.F. e I.I. (a subsidiary
of Grupo Supervielle S.A.) purchased the
remaining 5% of the capital stock.
In turn, IOL Holding S.A. purchased 100% of
the shares of another Uruguayan company
(IOL Agente de Valores S.A.) whose object is
to act as a securities broker with the
B.3.9. Digital Innovation Entrepreneurships
The strong belief that Fintech capabilities
have a direct impact on the “customer
centric” culture boosted the creation of the
Fondo Corporativo de Capital Emprendedor
(Fideicomiso Fintech Supervielle I), which
allows the Company to partner with Fintech
companies (digital solutions applied to
finance) and Insurtech companies (digital
solutions applied to insurance) which are
within the strategic verticals of Grupo
Supervielle. The goal is twofold: to generate
a financial return on investments and to
create commercial synergies to add value.
At present the company’s portfolio is made
up of 4 companies: 123Seguro, Blended,
Avancargo and Increase, Sixclovers and
Lemon Cash.
B.3.10. Other Companies
Sofital
Sofital is mainly a holding company.
authorization of Banco Central del Uruguay.
The object of IOL Agente de Valores S.A. is
to carry out online transactions through a
dedicated platform,
the
brokerage of third party securities. It is
aimed mainly at Latin American individuals
(provided
in
Uruguay) who want
carry out
to
transactions in the US market.
they are not domiciled
focusing on
In 2021 Grupo Supervielle consolidated and
moved forward in the integration of digital
products with our SMS customers and the
insurance
retail segment offering an
improved customer experience and digital
interaction with our companies.
synergies obtained
The cooperation with fintech start-ups and
the
from Grupo
Supervielle businesses enable us to launch
value propositions
focused on our
customers’ needs, co-creating enhanced
solutions.
Banco Supervielle continues participating in
the Arfintech fund together with another 7
local capital banks and has a portfolio of 10
companies
insurance, payment,
security, SMEs and blockchain segments.
in the
50
B.4. Human Resources Management and Organizational Development
Grupo Supervielle is an ecosystem formed by businesses and business units with a total 4,811
employees and diversity at its core. All subsidiaries work synergically searching for talent
opportunities among the different companies.
Business Units
Banco Supervielle
IUDÚ Compañía Financiera
Tarjeta Automática
Espacio Cordial de Servicios
IOL invertironline
Mila Micro Lending Argentina
Supervielle Asset Management
Supervielle Broker de Serguros
Supervielle Seguros
Other
Total
HeadCount
3,498
477
325
110
205
23
13
24
130
4
4,811
Women
Men
1,731
288
263
69
70
4
2
11
72
2
2,512
50%
60%
81%
63%
34%
17%
15%
46%
55%
50%
52%
1,767
189
62
41
135
19
11
13
58
2
2,299
50%
40%
19%
37%
66%
83%
85%
54%
45%
50%
48%
Banco Supervielle
Development
Creation of the Department Concept
In 2021, within the framework of cultural
and digital transformation we seek to
design organizational artifacts that support
leaders in the management of their teams:
"Competency Model, Performance Model,
360 Feedback, Pulse Surveys." Working in
an organic way and in synergy with other
teams to establish a culture with a leader at
Performance Model
From Performance Management (GDD) we
moved to a Performance Model, a key tool
for leaders to drive team performance. This
tool allows the organization to leverage its
Talent strategy and obtain the desired
results. In turn, it allows teams to use it as a
guide to advance their development and
the organization's
in
work
priorities.
line with
The new Performance Model is composed
of two parts:
the center, strengthening their role by being
inspiring and
"a humane, encouraging,
transforming" leader. That is why we work
on developing a talent tool that gives
autonomy to the leader to visualize and
manage the information of their team, and
seeking
the Supervielle
to
experience.
improve
The WHAT (objectives): what we do every
day, our goals and our results; the HOW
(behaviors): the behaviors and attitudes we
bring into play to achieve these goals;
together, the PERFORMANCE MODEL.
The WHAT
for two key
is designed
moments: The setting of the objectives that
people/teams have to carry out throughout
the year (aligned to the strategic pillars of
the organization) and the measurement of
their achievement once a year (which drives
Variable
bonus,
the
annual
the
51
Remuneration according to the percentage
of fulfillment of each of them).
is designed to analyze the
The HOW
that people
attitudes and behaviors
implement to achieve the defined goals; it is
the way in which they acted, which will be
the current
analyzed
Supervielle competency model.
relation
to
in
and
This model empowers each of the bank's
employees in the different instances, but
also seeks to put the leader at the center. A
leader focused on generating, supporting,
and encouraging conversations about
competencies, with
objectives
continuous feedback and the definition of
action plans. This model is implemented
through the Rankmi tool, used to digitalize
all
to
instances, providing autonomy
employees and leaders to self-manage the
information they upload and also as an area
to have management analytics.
Our Competencies
In 2021 we introduced new competencies,
which we personified through characters in
a live show in Workplace, in videos where
different referents of the organization who
were part of the construction told us why
competencies had to be changed.
Today we see how people start to make
them their own, talk about them and share
them even on LinkedIn, behaving in a way
that defines them.
These competencies deal with the capacity
to solve, flexibility to adapt, curiosity to
learn in an agile and exponential way,
Leader Model
Within the Agile Evolution project we work
on
Leader Model
SoyLíder@Supervielle.
Supervielle
the
Supervielle Leader, our Model to Power
your Dreams.
At the beginning of 2021, together with the
communication of this model, we started
with the Loading of objectives; 86% of
employees used this tool, exceeding our
expected goal. In July and November, we
launched the Competency Analysis (1st and
2nd instance, respectively). This was a key
milestone because competencies were also
new, and it was still a great opportunity to
continue developing them and make them
part of our day-to-day work.
This model also includes 360° feedback and
the creation of action plans
linked to
strategic pillars, competencies, pulse survey
statements and open action plans.
Thanks to continuous feedback, anyone
within the organization can give and receive
feedback while action plans provide the
possibility
concrete
agreements that arise from development
to
conversations, enabling employees
identify what they want to work on and
recording all this in a tool.
generating
of
as
so
capacity to lead change through our own
actions, cooperating and working with
others with agility, listening, talking and
inquiring
to have multiple
perspectives
for decision-making, with
focus on objectives, generating impact and
keeping customers at the center in all our
actions, focusing on the needs of people
and the business. With an
inspiring,
leader who
encouraging, and humane
introduces new behaviors and supports the
transformation process of others through a
close and simple communication: "Human
Banking."
We understand that transformation can
only be successful if organization leaders
actively participate by adopting new
behaviors and skills and therefore being
52
role models of how we want to do things to
get the best results.
That is why we started by building the
SoyLíder@Supervielle model, designed to
supplement the Soy Líder competency, to
leaders:
implement
Encouraging &
Humane,
Transforming, a leader who Drives his own
dreams, people's dreams and Supervielle's
dreams.
the
Inspiring,
features of
Tools that Boosted the Department
In 2020 focus was placed on the integration
of the Rankmi platform and its first uses in
MVPs, which enabled us to test the tool in
real time and
live the experience of
integrating the business. In 2021 we worked
on the launching of each module across the
entire organization. The modules we
implemented are the performance model
(Objectives Loading, Competency Analysis
Pulse Surveys - Wellbeing and Leadership
In 2021, we identified the need together
with
leaders and Business Partners to
conduct pulse surveys on Leadership
(perception of the leader's quality and
ability to relate with, and guide team
members), and Well-Being (perception of
how people are doing). We did this by
conducting a pulse survey with focus on
these features and also for our leaders to
access information in real time. This survey
was well received by employees who can
respond in a simple, fast way and see results
Players UP (Emerging Talent)
program
professionals
In 2021, our challenge was to rethink the
and
young
determine whether it was a program for
external or internal talent. Based on this
approach, we decided to promote internal
talent, so it was a program exclusively for
organization employees. It is key to provide
the organization with resourceful talents
Cultural transformation cannot happen if
we do not have leaders who embrace the
decision to go towards it and who get the
tools and knowledge that will help them
achieve it. Small daily behavioral changes
basis, continuous learning and a growth
mindset are prerequisites to move in that
direction.
twice per year), continuous feedback, and
pulse survey. Today we continue working to
improve user experience.
All communications of these processes are
centralized in WorkPlace. In 2021 there
were 80 postings with 390 comments and
2155 reactions.
in an agile and quick way. Leaders have
direct access to the results, thus having
autonomy to visualize them, use different
filters, communicate them to their teams
and agree on action plans to continue
working on the climate and needs of their
teams.
We conducted two pulse surveys, one in
September and the other one in December,
with a high participation level in both cases.
to digital and
with the tools and skills for the future,
cultural
contributing
transformation. Therefore, we designed a
program where employees may voluntarily
participate and where they can meet others
as a team within a learning space.
53
In September, a call was made to all bank
employees through WorkPlace, where the
interested
and
participants had to go through different
steps and activities
interviews,
Gaming platform) to be selected.
registered
parties
(video
present
prototypes, with
2 virtual hackathons were held, where the
challenge was to work in teams and design
and
the
participation
referents.
Participants had to show their leadership
and learning abilities, as the challenge
requires the use of various platforms and
in activities
digital tools, participation
business
of
Employee Training and Development
During 2021, more than 88,000 hours of
training were delivered, 55% of which were
asynchronous and 45% synchronous, both
in a virtual context. On average, each
employee participated
in 25 hours of
training.
In general, topics dealt with in 2020 and
prior years were continued in 2021, related
to
personal
team
management tools, mandatory regulations,
expertise,
and
where creativity and
essential
resolution.
for problem
innovation are
creation and
During kick off, the 16 selected employees
were asked to make their own avatar with
individual characteristics and then work in
teams in the joint creation of one avatar
with super powers.
The 8-month program is currently running
and, so far, workshops and labs on Agile
Mindset, Growth Mindset, Powerful
questions and interviews with organization
leaders and referents were conducted.
language development and new ways of
work organization. In 2021, the Virtual
Campus, that had been in place for two
years, reached over 3500 active users of
Banco Supervielle, and all of Grupo
Supervielle’s companies were added to the
platform.
In 2021 Grupo Supervielle made emphasis
on the following training courses:
Internal Coaching Program
The
internal coaching training program
continued, with 240 employees and 31,000
topics,
hours, covering conversational
emotional intelligence, team development
and coordination of actions.
Zoom - Commercial Customer Service Model + Business Skills
the model
implemented
Following the new commercial customer
service model proposed in 2020, this year
training
we
process, which
synchronous
workshops, asynchronous capsules, and
This
spaces
management model was supplemented by
a Business Skills training program, with
concepts.
included
review
to
strong focus on the enhancement of these
skills.
More than 1,500 employees were trained,
representing a total of 5,600 hours of
training,
to
them
for reaching
methodologies and skills
customers
products
remotely.
and marketing
introducing
54
Sustainable Business School
We advanced with the training program for
E&P Executives, SMEs, and Corporate
Banking Officers to strengthen technical
knowledge related to credit analysis. A total
of 160 people were trained, representing
more than 2,000 hours of training.
Development of New Networking Skills
We encouraged our employees to master
digitalization tools and acquire knowledge
about the impact of digitalization. To this
end, we added new courses on digital tools
in our Campus and synchronous and
asynchronous training courses on the
impact of digitalization on the business. We
Roles
also added content developed by "Mujer
Financiera" and the training proposals of
the Academies and Competencies, which
we will see below. During the year, more
than 300 employees took part in these
training courses.
We also have role-based training programs
for the Branch Network. There are training
courses on campus for each position, with 3
levels of complexity. In total, we have 27
courses at different levels, with more than
3,000 participants.
We Promote the Value of Learning
We promote self-learning, where the
learner is the one who takes the initiative.
In this context, we promoted the "Viernes
de Campus" campaign, an initiative that
originated in one of our branches and was
extended to the rest.
English
English lessons continued for Corporate
those
Managers, Executives and all
employees that regularly use English for
their activity.
Mandatory Regulations
Emphasis was placed on developing the
regulatory aspects: IFRS Standards, Anti-
Money Laundering provisions and SOX
rules, among other.
Scholarships
A scholarship program was launched to
cooperate in the development of the bank’s
employees, either
business, or other specific training.
in their managerial,
Internal Trainers
We continued working on the development
internal trainers. This year we
of our
focused on the design of an Online Program,
which we made available in our Campus.
55
This program provides Facilitators with
techniques and tools to design powerful
and impactful learning experiences.
Project #EvoAgil: Driving Cultural Transformation.
As part of our Transformation process, we
identified 5 critical roles (including the role
of Leader applied to all positions), and
through a process of co-creation and
participatory design, we developed new
role profiles focused on key behaviors, and
Academies
Based on the initiative of promoting self-
learning, we are developing our Strategic
Academies, which address 6 strategic skills
in line with the transformation process the
Bank is undergoing: CX, data analytics,
agility, digital marketing, cybersecurity, and
IT architecture.
Our Academies are open to all employees,
so that they can learn these skills, which are
fundamental for their development and our
transformation, regardless of the area to
which they belong.
training gaps, which allowed us to build
training Roadmaps that are now available
on Campus.
With this concept in mind, we launched the
CX Academy (levels 1 to 3). This Academy
the possibility of obtaining a
offers
Certification
issued by a renowned CX
consulting firm. In 2021 we also launched
the Data Analytics Academy (levels 1 to 6)
which also has an asynchronous course,
with synchronous training spaces focused
on practices, and lectures where topics of
interest are discussed in depth.
More than 1,500 employees participated in
at least one training course and more than
2,000 hours of training were delivered.
Leaders in Competencies Training Program
In order to promote the adoption of our
new Competencies model, we focused on
Conversations with
Agreements, Team Experimentation.
Results,
Team
designing and
implementing a training
program for leaders. With the support of a
specialized consulting firm, we co-created
with our
leaders asynchronous and
synchronous training in Competencies.
The topics we addressed were: Growth
Productivity,
Mindset, Well-being &
Internal Communications
In 2021, focus continued on leveraging
internal
Workplace,
our main
as
The program reached 600 leaders in more
than 14 meetings, with 8 different topics
during the 2nd semester of 2021. Of the
total number of
leaders
leaders, 225
least one of these
in at
participated
meetings (38%), totaling 895 synchronous
hours.
communication
customer
experience campaigns under the slogan
channel,
56
#modocliente and the communication of
the digital transformation process with our
#TransformarseEsSupervielle
and
strengthening of our employer brand to be
an attractive place to work.
Workplace continues to be a success, we
Imagen Magazine
were recognized by
winning an Eikon award for best social
media communication campaign, we were
also recognized as a success story by
Facebook and invited to tell our strategy of
use. We have 95% of active users. An active
user is one who comments, likes, shares,
and reads publications.
We continued generating engagement
through #HolaCeo, a monthly live broadcast
with Alejandro Stengel where employees of
Banco Supervielle can be in contact with
him and with guests.
We continued with our in-house Influencers
program: employees were told who to
follow in Workplace taking into account the
topics they need to be informed of. In
addition, an annual digital transformation
campaign was launched to introduce the
agile methodology,
its roles and the
processes and projects on which the
organization is working. The program and
Compensations and Benefits
Benefit Management
in
During 2021, in line with the Health area,
improvements were implemented in the
Corporate Health Program of Grupo
and
Supervielle,
ophthalmology services, with
increased
reimbursements of the costs of medical
appointments, focusing on achieving a
level by the healthcare
better service
provider countrywide.
psychology
launched
We
various health-related
actions, such as the Flu Vaccination
campaign,
continued online medical
consultations and the implementation of
more than 300 influencers were recognized
by imagen magazine with an Eikon award
for the best campaign with Influencers.
The third edition of the OOPS! Another
chance to outdo yourself event was held,
where two leaders of Banco Supervielle
went on stage to talk about their mistakes
and lessons learned.
We continued using StarMeUp. In 2021 over
half of the employees sent stars to their
teams, up by 2% against 2020, and more
than 16,000 recognitions were made during
the year.
la
The second season was released of "Players
de
LinkedIn
documentary where teams tell how digital
transformation is lived from within.
Transformación"
a
the
launched a cycle of financial
We also
inclusion with
influencer "Mujer
Financiera." These actions led us to double
our engagement rate from last year to more
than 8%, making us the 3rd bank in the
market.
In addition, we launched our Supervielle
Talent show, with 3 categories: Singing,
multitalent and photo. The final, was
broadcast live with the presence of our CEO,
to all employees, with over 2,500 views.
various workshops such as healthy cooking,
breast cancer prevention and quit smoking
workshops.
The in-company health care advice service
continued online so that our employees
could have an exclusive and improved
communication channel to make inquiries.
We offer our employees an extended paid
Maternity Leave
the
maternity leave provided for in the law.
in addition
to
As regards wellness, the practice of sports
at home was encouraged, and the running
57
team and Yoga classes continued, as well as
Mindfulness and family gym classes.
In the second half of the year, the men's and
women's soccer, women's volleyball and
men's basketball teams returned to training
in person.
As regards school supplies for employees
with school children from K-2 to Senior V,
and in line with the innovating and services
culture, the online platform was improved
so that employees receive a customized
school kit.
We generated virtual initiatives, such as a
playful contest for Children's Day. We held
a virtual Benefits Fair, so that all our
employees could learn about the benefits
for being part of Grupo
they have
Supervielle, participating in various games
for prizes. We celebrated Bank Employees’
Day through a virtual game with questions
and trivia about the characteristics and
details of our industry and our company.
Compensation Management
With a view to rewarding the employees’
for their performance, retaining talent, and
maintaining
company’s
the
competitiveness, the salary structure was
reviewed taking into account market trends
and business needs.
Two reviews were carried out throughout
the year (compensation window) to analyze
and determine promotions and salary
adjustments to the payroll, analyzing the
market benchmark, internal equity and
different management and talent variables,
review of past
employee potential,
management
market
shortages.
assessments,
In relation to variable
incentives, the
schemes that compensate the Financial
Banking and Corporate Banking businesses
were reviewed and modified in line with
market practices and organizational needs.
With a view to improving the purchasing
power of employees, different events were
held together with different suppliers so
that employees could buy online products
of leading Argentine brands at exclusive
prices.
to
the
Improvements were made
Comprehensive Platform of Financial
Products for Employees so that the offer is
automatically calculated according to their
income, aligned to the credit levels of the
best salary plans, thus
improving our
employees’ experience in the process of
purchasing bank products.
We also started for the first time an
"Employee Experience" initiative in which
the Benefits team is participating in an
interdisciplinary group to understand the
different types and situation of employees,
in which one of the topics to work on in
2022 will be the launching of new benefits
linked to work-life balance, remote work
and wellness.
and
Likewise, the annual bonus policy was
the new
linked
reviewed
performance model, taking into account the
objectives of each business and each person
within the payment conditions.
to
Data Visualization Dashboards continued
being implemented through the Qlik Sense
tool to maximize data analysis so as to be
able to make decisions based on dynamic
data.
Data for the Qlik Sense Dashboards are
taken from the payroll system and the data
bases managed by HR teams; the data are
consolidated for the purpose of analysis and
conclusions, taking into account multiple
variables simultaneously so as to be able to
make decisions based on dynamic data.
58
IUDÚ
Employee Training & Communication
continued
2021 we
During
the
organizational transformation process and
"Agility
continued
Program" to achieve this methodology,
based on ceremonies within a Scrum
framework.
implementing
the
Development
During 2021 we continued with individual
and group PDAs together with leaders and
their teams in the Agile framework. We also
worked on the Performance Management
process, with peer and internal customer
Jobs
We also continued with the training and
communication
through
Workplace.
process
feedback, as well as on new performance
competency assessments. We also trained
all
the
their
development and use of OKrs in order to
increase the value of result-based work.
leaders and
teams
in
In 2021, we conducted more than 130
searches for employees, 70% of which were
digital profiles.
We conducted a company-wide referral
program, covering 25% of the positions
through this modality.
We continued with 100% digital induction,
advancing with new market practices and
improving the experience of new hires.
We work on employer branding, managing
the positioning on LinkedIn, and today there
are more than 15,000 followers since the
launching of IUDÚ.
Management of HR Business Partners
The HRBP area accompanied
IUDÚ's
transformation and was reorganized for
internal customer purposes. Thus, each
Squad or Area had an HRBP referent, who
also played the role as a focal point in tasks
such as employment, training, development
and communications.
The HRBPs accompanied the Staff Area
teams in the induction to agility, staffing
and multidisciplinary work.
Personnel administration
We also conducted a pulse survey to know
how they experienced the transformation,
the immersion in agile values and their
degree of satisfaction with the company.
We worked intensively on Vuca context
tools, emotional
intelligence, effective
communication, focus and productivity,
observer theory and basic linguistic acts,
which was valued by our employees,
reaching a participation and satisfaction
level above 95%.
We
Onboarding
continued working
on Digital
in order to optimize the
59
recording process of data, incorporated into
the Human Resources WP Library, which
was the basis for BOT implementation.
Employee Self Service was launched, which
is a self-service tool for leaves of absence,
vacations, salary information, among other.
IOL invertironline
Talent Attraction
In 2021, we continued working on the
Employer Brand and expanded our
community, reaching 20,000 followers on
LinkedIn.
We also diversified our
recruitment
sources, adding 125 employees to the team
throughout the year.
As part of the company's rebranding, we
accompanied
launching with a
merchandising kit for all employees and a
virtual launching event.
the
Throughout the year we had the possibility
of working 100% remotely, or attending
coworking spaces if necessary. In addition
to this, in December we opened new
offices, to guarantee all IOLers a space
where they can work in person if necessary.
Development
In 2021 we carried out the performance
assessment, including the possibility for
IOLers to receive 360º feedback from other
employees and thus enrich the process. A
Training
Regarding the work climate at IOL, during
2021 we promoted different actions, both
virtual and on-site, to generate team
satisfaction and commitment, as well as
recreational spaces. In July we conducted
the climate survey to inquire into the
general satisfaction level of teams, and also
into the different aspects of work climate.
The participation rate in the survey was 73%
and the overall satisfaction level reached
8.53% (out of 10%) as compared to 7.91% in
2020.
The activities carried out included: Face-to-
face after-office events in Buenos Aires and
Tucumán, Virtual Escape Rooms, team
Games and Year-end Party, attended by
IOLers from all over the country.
total of 437 feedback lines were obtained.
All areas received feedback from third
parties, enriching the Growth feedback
delivered by leaders at the end of the
process.
During 2021 we delivered 3,000 hours of
training. The training we offered to IOLers
included, in addition to workshops on agility
and leadership, courses on language and
technical competencies required for each
role.
60
B.5. Sustainability
Our commitment at Grupo Supervielle vis-à-
vis
our employees, customers and
communities is to grow in a sustainable
way, protecting the environment and acting
in a socially responsible manner. Our
sustainability strategy is part of our business
Our Environmental Responsibility
model which promotes a responsible
culture among our employees. We openly
and transparently report on our non-
including
financial
performance,
environmental,
corporate
governance (ESG) factors.
social, and
We work to reduce the impact of our operations on the environment by implementing a
responsible environmental management system.
Energy Management
We implement programs that promote energy efficiency and expand the sustainable use of
renewable resources.
In 2021 we:
• Acquired renewable energy from wind
power sources for the supply of 35
branches in the City of Buenos Aires and
Greater Buenos Aires.
• Replaced
including
lighting fixtures,
another 42 branches to the LED lighting
system, in addition to the 143 already
migrated in 2020.
• Measured Scope 1 and 2 of our carbon
in our head office and
footprint
branches.
• And, for the first time, we offset 20% of
our 2020 carbon footprint with the
retirement of 1085 TONCO2eq VCS
(Verified Carbon Standard) certified
carbon units, thus offsetting 20% of our
2020 scope 1 and 2 emissions for a total
through
ambitious
of 5,424.72 TONCO2eq. The traceability
of the carbon credits subscribed has
been verified by VERRA, a global
the
that,
organization
development and management of
standards, helps the private sector
achieve
sustainable
development and climate action goals.
As part of this offset, we also generated
a positive local impact by purchasing
2,500 trees that will be planted in Lanín
the
National Park
Asociación Amigos de la Patagonia,
Province of Neuquén. Our goal is to
continue on the path of mitigation,
reducing our emissions and offsetting
our carbon footprint by restoring native
forests.
together with
Management of Natural Resources, Supplies, and Waste
We adopt internal processes that promote
the efficient use of natural resources used
in daily operations and reduce the negative
impact on the environment of waste
generated in processes and consumption.
In 2021:
• We donated to Garrahan Hospital a
total of 9,664 kilos of paper and 15.4
kilos of plastic lids.
• We donated 780 PCs, 838 monitors, 83
electronic equipment devices, and 114
scrap equipment that were donated to
Fundación Equidad in order to give a
second life to our equipment and at the
61
to
the
and
equipment
same time generate a positive impact
the
community
on
environment.
is
This
conditioned by Equidad and then
social
schools
donated
organizations in different regions of the
country.
institutions
received equipment with more than
14,993 beneficiaries. Those parts that
cannot be reused are sent to final
disposal
current
legislation.
Thirty-four
according
and
to
• We donated office furniture, chairs,
cabinets, and desks from our branches
to more than 40 social organizations
and public agencies.
• We recycled 80,000 disposed of debit
and credit cards and turned them into
urban furniture made from recycled
plastics. We donated 4 benches and 6
waste baskets that were installed at
Sustainable finance
We develop financial products and services
promoting the financing of companies and
positive
a
projects
environmental and social impact.
generate
that
In 2021:
Awareness Campaign
learning
raise awareness and encourage
We
appropriate
in environmental
matters in order to promote a culture of
sustainability among Grupo Supervielle's
employees, suppliers and customers.
In 2021:
• We posted 61 press releases
our
in
Workplace,
internal
communication network, 46% of which
were related to the environment and
the care of natural resources.
In
addition, we held a virtual training
event with specialists in sustainable
consumption.
Plaza de La Paz in the city of Mendoza,
and 5 benches and 6 waste baskets for
the Luis Menotti Pescarmona green
space in the city of Godoy Cruz and also
5 benches and 6 waste baskets to be
installed
the open spaces of
Universidad de La Matanza.
in
• We installed bio-digester systems in 2
branches in the province of San Luis.
• We placed waste differentiating
baskets in 150 branches, completing
100% of the network and corporate
buildings.
• We started to replace plastic cups with
paper cups at the head office and
branches.
• We began to deliver to employees at
the head office and branches eco-
friendly flatware kits to avoid the
consumption of single-use plastics.
to
according
• All Corporate Banking Customers were
the
categorized
Environmental and Social Risk Policy.
• 367 socio-environmental assessment
reports were conducted in accordance
with the Environmental and Social Risk
Policy.
• We held a virtual event
for all
employees, as part of our "Hola CEO"
cycle, on sustainable finance with the
specialist Matías Kelly. We reached
1,700
222
viewers who made
comments.
• As part of the 2020 carbon footprint
awareness
compensation
and
initiatives, we carried out an action with
40 volunteers
the
Asociación Amigos de la Patagonia to
remove exotic species and plant 100
native trees at the Reserva Natural del
Pilar.
together with
62
Social
We work to be an agent of change that creates sustainable social value, to generate a positive
impact on our customers, employees, and communities.
Customers
We expand the use of financial products
and services (financial inclusion) to those
who already have an account with Grupo
Supervielle, facilitating the adoption of new
financial
tools and promoting
digital
education.
As of December 2021:
• 96% of our customers’ monetary
transactions were
through digital
channels, 64% of which were made
Employees
through ATMs, self-service terminals,
and own experience cash dispensers,
25% through home banking and 7%
through mobile devices. Furthermore,
88% of time deposits were made
through digital channels, while 26% of
personal loans were originated through
digital channels.
• We released 35 educational tutorials
for customers that were posted in our
website with 3,400 views.
We create opportunities for our employees
to grow and develop their full potential. We
promote a diverse and
inclusive work
culture that values each person and their
contribution.
During 2021, more than 88,000 hours of
virtual training were completed, 55% of
which were asynchronous and 45%
synchronous. On average, each employee
participated in 25 training hours.
Diversity
We are developing the diversity strategy,
advancing with the diagnostic stages, the
creation of the DEI (Diversity, Equity, and
Inclusion) forum and the action plan.
Community
We promote social investment with an
impact on projects and programs related to
elderly,
education,
children,
the
institutional strengthening, and actions that
promote culture and the arts.
Senior Citizens
In partnership with Escuela Argentina de
Negocios,
de Morón,
Universidad de Mendoza and Asociación
Civil Surcos.
Universidad
• Through our program Hacelo Vos
Tecnología sin Edad, we trained 687
customers over 55 years of age in e-
banking and digital inclusion in online
courses
Escuela
together with
Argentina de Negocios, Universidad de
Morón and Universidad de Mendoza.
26.2% of new users downloaded the
Jubilados APP. There was a 34.6%
increase in the use of the debit card for
purchases by course participants. An
increase of 26.6% was recorded in the
use of own experience cash dispensers
63
identification and a
with biometric
16.2% increase in sight deposits by
course participants. Although only a
few advanced Online Banking courses
were delivered, there was a 2.2%
increase in the use of Online Banking
and a 5% increase in new Supervielle
App users, 45% of whom already had an
OBI [Online Banking Individual] user
before starting the course. There was
an increase of 49.8% in transfers and
OBI operations. The average age of the
participants is 70 years old.
• Our Hacelo Vos fanpage on Facebook
grew by 54% in the number of followers
Children
In partnership with Banco de Alimentos,
Pilares, Casa Rafael and Vergel.
• We donated 556,211 meals to Banco de
Alimentos, to feed 413,304 people. In
turn, of the total number of meals,
29,499 came from the rewards program
of our customers and employees.
• We supported the operation of the
JugArte
the
Fundación Casa Rafael, which seeks to
stimulate
and
sociability in some 40 children between
4 and 7 years of age who live in
psychosocial risk environments.
space program of
cognitive
abilities
• We supported Fundación Pilares in the
operation of the Centro CONIN Barracas
as part of the Centro COPIF, reaching
103 children, 113 adult caregivers
(usually mothers) and 11 pregnant
women. We also participated in the
“1.000 personas por
la niñez”
campaign. As part of the Capitanes
volunteer program, we painted a mural
and improved the flatroof at the CPI
(Early Childhood Center) Pilarcitos
building, located in Nueva Pompeya and
Education
In partnership with Cimientos, Bisblick,
Anpuy, Consejo Empresario Mendocino,
Fundación
Fundación
Compromiso,
Conciencia, Potrero Digital and Mayma.
and 74% in interactions. It was used to
disseminate safety and health care tips,
and
during
lockdown, with an increase of 807% in
content viewers.
accompaniment
as
• We carried out the 7th edition of the
literary contest Grandes Autores,
Relatos Cortos, with the participation
of 887 customers over 55 years of age
and 60 volunteers. There were 3
winners, 7 finalists and 43 special
mentions at the ceremony held virtually
together with employees, the jury and
special guests.
children
promotes
attended by
from
75
vulnerable neighborhoods. We also
support the Haciendo LUPA program,
which
comprehensive
literacy with a playful approach, aimed
at 200 children from the neighborhoods
of Barracas, Nueva Pompeya and Bajo
Flores. We support the Social and
Solidarity Economy Program through
the patronage law. The objective of this
program is to support, and strengthen
the working skills of 40 women, who are
children
of
the mothers
participating
childhood
programs. A Christmas campaign was
carried out in which we donated one
million pesos together with furniture,
equipment, and toys.
supported
the activities of
Fundación Vergel at Hospital de Clínicas
and Hospital de Niños Dr. R. Gutiérrez in
the City of Buenos Aires. 70 art kits with
the book "Xul Solar para pintar" of
Ronda publishing house were delivered,
5 podcasts were made, and 320 virtual
classes were given by 3 artists.
early
the
in
• We
• We granted scholarships to 70 high
school students
in San Luis and
Mendoza, together with Fundación
school
Cimientos,
promote
to
64
In 2021, 23 students
completion.
graduated in Mendoza. In addition, 19
volunteers
from Grupo Supervielle
organized virtual meetings to work on
topics such as job search, preparation of
résumés and job interviews.
• For the third consecutive year, we
granted a scholarship for a low-income,
high-potential student at the Liceo
Francés in the City of Buenos Aires.
• We granted
scholarships
to 19
university and college students in order
to offer equal opportunities to young
students with high potential and low
economic
in
partnership with San Benito, Bisblick
and Anpuy. During 2021, 2 students
graduated, one of them as a French
Language Teacher and the other as a
Nurse.
resources. We work
•
• We supported the opening of the
afternoon shift at the Anpuy Center for
65 youths; 144 hours of academic
support were provided, two group
meetings were held with 120 young
people, 110 personal interviews were
held with scholarship recipients, among
other activities. $106,500 were raised
through the solidarity points exchange
program, equal to 69 teaching hours, 18
school supplies kits, 2 backpacks with all
school supplies and 6 3-month school
scholarships.
In partnership with Consejo Empresario
Mendocino, we granted scholarships to
20 primary and high school heads in
educational
and
leadership. In December, 28 school
heads and 2 supervisors graduated.
Three GAP (Peer Support) groups were
formed with Vistage methodology, with
the participation of 40 school heads
In
graduated
the program.
addition, 7 schools participating
in
these GAP groups took part in the
Banco
programs
Supervielle
Junior
Achievement of Mendoza.
by
developed
together with
management
from
• 9 volunteer mentors
Supervielle assisted Mayma
from Grupo
in the
were
impact.
submitted,
second edition of the training program
for entrepreneurs with social and
Sixty-two
environmental
projects
35
in
entrepreneur teams participated
them, 8 Latam webinars and 2 events
were held - Ideatón and Tejer Latam-, 5
local networking workshops were
organized, and 16 projects were
completed, presenting their business
models.
• We granted 360 scholarships
Management
Potrero Digital,
for
Community
and
Programming training in partnership
with
Fundación
Compromiso and the Municipality of
the City of Mendoza. 900 persons
enrolled, 140 of which -92 women and
48 men- completed the courses. Over
714 hours of training were delivered in
the
programming,
on
community management, design and
animation, supplementary languages,
English, and socio-emotional skills.
Twelve PCs were donated to enable
proper access to the courses.
courses
• 59 scholarships were granted to youths
from social organizations and our
employee’s
through
Construyendo mi Futuro program,
aimed at introducing them to their first
paid
at Banco
experience
Supervielle.
children
job
• We provided financial education to 591
youngsters aged 15 to 18 in partnership
Junior Achievement, Consejo
with
Empresario Mendocino
(CEM) and
Grupo Supervielle volunteers. The
workshops were delivered through the
virtual platform by teachers and Grupo
Supervielle volunteers. A special edition
was held for the children of Grupo
Supervielle's employees.
• Throughout 2021, we
supported
Asociación Conciencia in its program
Multiplicar Conciencia 2021, with the
participation of 38,109 children, young
people and families from the education
and community programs.
65
Institutional Strengthening
In partnership with CIPPEC, RAP, GDFE,
Educar 2050 and Aportes de Gestión.
• We support CIPPEC in the design of
policies for the reform of the pension
law in Argentina through a study in
in the
search of stable balances
Argentine pension system.
• We accompanied the community of
RAP politicians with
the aim of
generating an analysis, reflection and
dialogue
strong
process, with
participation of business and academic
representatives, dealing with seven
the
for
axes
country's
development:
Education, Institutional Infrastructure,
Sustainable Development, International
Integration, Federalism, Social Inclusion
and Citizen Security.
considered
long-term
critical
• We were the founding members of the
public-private consortium District 33,
City of Mendoza, together with 6
Art and Culture
Patronage
We donated AR$49,680,000 for cultural
projects under the Patronage Law of the
Autonomous City of Buenos Aires. We aided
6 cultural heritage projects, 8 projects
related to children, 3 projects for the
elderly, 5 art projects, 3 education projects
and 11 projects in various cultural areas,
including
literature, theater, music and
audiovisual arts. Contributions include the
development of digital tools to facilitate
inclusive access to Argentine art and to the
cultural heritage of the Museo Moderno;
the municipal
companies,
and
provincial government, and 4 academic
institutions. Nineteen meetings were
held during 9 months to promote the
economic development of the city and
the province through creative impact
and job-creation industries in the fields
of
technological
entrepreneurship. A Public Policy
document was issued that provides
further insight on, and boosts talent
formation and
in the
sector.
job creation
knowledge
and
• We assisted in the development of the
Aportes 2021 Award of the Asociación
Civil Aportes de Gestión para el Tercer
Sector. This award seeks to recognize
in the
NGOs as agents of change
communities where
they develop
projects and/or generate actions that
have an
impact on various social
problems.
Convent,
Santo Domingo
the restoration of the Chapel of the Virgin of
the
the
rehabilitation of La Casa del Teatro, the Xul
Solar Museum and the remarkable bar "La
Giralda." In addition, we contributed to the
Potrero Digital project, which provides
scholarships in digital trades aimed at social
integration, training and employment for
youths over 16 years of age with fewer
opportunities. For the second year in a row,
we were recognized for our patronage
management in 2021.
Museo Moderno and Parroquia Nuestra Señora del Socorro
• We continued sponsoring the Museo de
Arte Moderno de Buenos Aires and
their exhibition program, educational
activities, courses and workshops on
Argentine Art, publication of catalogs,
film and music festivals and the digital
program
#MuseoModernoEnCasa,
providing art content to our customers
through virtual guided tours. Four
meetings were held with an average of
local
70 people per event where
66
cultural topics were discussed. Thanks
to the contribution made through the
Patronage Law, a new
library was
opened inside the Museum.
• We continued to support the choir
“Cantoría de
la Parroquia Nuestra
Señora del Socorro” promoting music
and culture in the city of Buenos Aires.
Volunteering
We supported 24 volunteer projects
through our Capitanes program. More than
317 volunteers participated in social and
environmental initiatives, 62% of whom are
women. Our volunteers provided school
support and delivered financial talks to
youths from Cimientos, Bisblick and Anpuy.
They were also in charge of reading the
stories presented at the Grandes Autores,
Relatos Cortos contest and acted as
mentors for the Mayma and Construyendo
Mi Futuro programs.
Actions in case of catastrophe
Fires in San Luis
• We made donations for the purchase of basic equipment for fire fighters of the city of Merlo,
province of San Luis.
Corporate Governance
We operate in accordance with the highest corporate governance standards, promoting
transparency, ethical behavior, respect for the principle of legality and sustainability in our
activities and our value chain.
Respect for the principle of legality
review
regularly
We
the degree of
compliance with the laws and regulations
applicable to us and
implement the
necessary corrective actions.
In 2021:
• 86% of Banco Supervielle's employees
attended the Anti Money Laundering
and Terrorism Financing course.
In 2020 we were recognized by the
Institutional Investor publication as the
•
•
second Best ESG for Latin America in the
Financials/Banks category.
• For the third year in a row we were part
of the BYMA Sustainability Index, as a
leading organization in environmental,
social, sustainable development and
corporate governance matters.
• We were part of BYMA's Corporate
Governance Panel, in which companies
that
adopt Corporate
Governance practices in addition to
those required by Argentine
laws
participate.
voluntarily
Transparency
We provide clear, precise and objective
information in order to allow interested
parties to accurately assess the impact of
Grupo Supervielle's decisions and activities
on their respective interests.
67
Ethical behavior
• We promote an ethical behavior based
on our values and a culture of integrity,
both
in the development of our
activities and in the decision-making
process, in the interaction among our
employees and with our stakeholders.
•
and
In 2021, no breach was recorded of
and
economic
social
regulations in the social and economic
areas.
laws
Procurement and contracting practices for goods and services
We generated a directory of sustainable
suppliers in order to make the supply chain
more sustainable. We
incorporated 41
approved suppliers in the following areas:
catering, office supplies, printing, training,
staff uniforms, cleaning services and
supplies, and furniture. We delivered a
training course for internal buyers to raise
awareness on responsible consumption and
the importance of adding more sustainable
suppliers
the purchasing decision
together with an instructional video that
was shared with all Grupo Supervielle
employees.
to
68
C. BOARD OF DIRECTORS
Board of Directors
The Board’s responsibility is to promote and review the general business and risk policies and
strategies and to control that measures are taken at management level to identify, monitor and
mitigate the assumed risks.
The Board’s duty is to manage Grupo Supervielle businesses and approve general policies and
strategies.
The Board of Grupo Supervielle is made up of three to nine directors. The Shareholders' Meeting
may also appoint the same number or less of alternate Directors.
At present, the Board of Directors is made up of eight members, with no alternate directors.
Chairman
Julio Patricio Supervielle
First Vice-Chairman
Jorge Oscar Ramírez
Second Vice-Chairman
Emérico Alejandro Stengel
Directors
Atilio Dell’ Oro Maini
Eduardo Pablo Braun
Laurence Nicole Mengin de Loyer
José María Orlando
Hugo Enrique Santiago Basso
Eduardo Pablo Braun and José María Orlando are “independent” directors pursuant to the
provisions established by the Rules of the Argentine Securities and Exchange Commission.
Laurence Mengin de Loyer is a Non-Independent Director pursuant to the CNV Rules while she
is an Independent Director pursuant to Rule 10A-3 of the Exchange Act.
In 2021, the Board of Directors conducted the yearly self-assessment in line with the guidelines
and criteria of the Nominations and Remuneration Committee and the Ethics, Compliance &
Corporate Governance Committee. As a result of such process, an annual report was prepared
that included, without limitation: the Board of Directors’ structure, culture, information and
resources, processes and dynamics and a self-assessment of each director on their performance
in the Board and in the committee in which they are members. Such report was sent to the
Nominations and Remuneration Committee for consideration.
Statutory Audit Committee
The Statutory Audit Committee is in charge of supervising and monitoring that the company’s
management of Grupo Supervielle S.A. is carried out according to law.
Statutory auditors are appointed by the Annual Shareholders' Meeting for a term of one year
and may be re-elected. Alternate statutory auditors take office in case of temporary or
permanent absence of statutory auditors.
69
As of this date, the Statutory Audit Committee is made up as follows:
Statutory Auditors
Enrique José Barreiro
Carlos Alfredo Ojeda
María Valeria del Bono Lonardi
Alternate Statutory Auditors
Carlos Enrique Lose
Roberto Aníbal Boggiano
Jorge Antonio Bermúdez
Corporate Governance
The Code of Corporate Governance
adopted by Grupo Supervielle seeks to
reflect the best corporate governance
practices based on stringent standards of
complete information, efficiency, control,
ethics, investor protection, equal treatment
of investors and corporate transparency, so
as to create and preserve value for the
Bank,
customers,
shareholders,
employees and the general public.
its
The Code of Corporate Governance adheres
to the guidelines of the Rules of the
Exchange
Argentine
Commission (CNV Rules).
Securities
and
Grupo Supervielle has also adopted a Code
the main
that establishes
of Ethics
guidelines of professional performance and
C.1. Board Committees
C.1.1. Audit Committee
The audit committee has no executive
duties and acts pursuant to the provisions
of the by-laws, the Internal Rules and the
applicable laws, in particular the Capital
Markets Law, the Rules of the Argentine
Securities and Exchange Commission, the
rules of the U.S. Securities and Exchange
Commission, the governance standards of
moral conduct and for all employees of the
Company and their suppliers and other
stakeholders.
Rights of Minority Shareholders
at
their
For Grupo Supervielle, it is important that
minority shareholders have an active
participation
Shareholders’
Meetings. Grupo Supervielle’s commitment
is to ensure that minority shareholders
exercise their rights. Therefore, there are no
restrictions
their
whatsoever
participation at Shareholders’ Meetings.
The Board of Directors may
introduce
voting recommendations and/or notify
shareholders of any motion proposed for
consideration at the Shareholders’ Meeting.
on
the New York Stock Exchange,
the
resolutions of the Superintendence of
Insurance, the standards of Bolsas y
Mercados Argentinos S.A., the Minimum
Internal Control Rules of the Central Bank of
Argentina and the resolutions of the
Financial Information Unit, among other
control agencies.
70
is
in charge of
The Audit Committee
assisting the Board in the supervision of
financial statements and the control of
compliance with the policies, processes,
procedures and rules set forth by Grupo
Supervielle S.A. and its subsidiaries.
The Audit Committee is made up of three
directors, two of which are independent
directors pursuant to the criteria of the
Exchange
Argentine
Commission.
Securities
and
C.1.2. Anti-Money Laundering and Terrorist Financing Committee (AML and TF)
and
in
Terrorist
of
Grupo Supervielle has an Anti-Money
Financing
Laundering
Committee
verifying
charge
compliance with current regulations on
anti-money
terrorist
financing applicable directly and at
subsidiary
level, to ensure that Grupo
Supervielle and its subsidiaries have an
adequate compliance level in line with the
best practices in that matter.
laundering
and
C.1.3 Risk Management Committee
The Risk Management Committee is in
charge of dealing at institutional level with
strategies and policies applicable to the
management of credit, market, interest
rate, liquidity, operational and any other
risks that may affect Grupo Supervielle and
its subsidiaries and of submitting to the
Board of Directors, for approval, the
strategy and policy documents on risk
management. Besides, it is in charge of
defining the risk appetite and tolerance
levels of Grupo Supervielle at consolidated
level and of approving the threshold and
The Anti-Money Laundering and Terrorist
Financing Committee is made up of two
directors (one of whom is the Compliance
Officer with UIF and Chairman of the
Committee and the other is the alternate
compliance officer) and the Chief of
Prevention of Money Laundering and
Terrorist Financing area.
the Annual Capital
limit structure for risk management. It must
also evaluate the capital adequacy ratio,
analyzing
Self-
Assessment Report (IAC), and define the
policy and methodological framework for
stress tests as part of the risk management
of Grupo Supervielle.
The Risk Management Committee is made
up of at least two directors, the CEO, the
CFO and the CRO.
C.1.4 Ethics, Compliance and Corporate Governance Committee
The Ethics, Compliance & Corporate
Governance Committee is a body of Grupo
Supervielle, the decisions of which are also
applicable to all its subsidiaries, and is in
charge of assisting the Board of Directors in
the adoption of
the best corporate
governance practices to maximize the
growth capacity of Grupo Supervielle and its
subsidiaries
value
to
destruction. It is also in charge of assisting
prevent
and
the Board of Directors in the supervision of
the ethics & compliance program.
It is made up of at least two directors, the
Chief Compliance Officer, the Chief of Legal
Affairs and AML, the CRO, the Head of
Internal Audit and the Head of Corporate
Affairs.
71
C.1.5. Nominations and Remuneration Committee
Nominations and Remuneration
The
Committee is a body of Grupo Supervielle,
the decisions of which are also applicable to
all its subsidiaries, and is in charge of
assisting the Board of Directors in matters
related to the appointment of Directors and
senior officers and succession plans;
the Board
compensation policies
members
and
in human
employees
and
senior
in general, and
officers
for
C.1.6. Disclosure Committee
The Disclosure Committee is a body of
Grupo Supervielle, the decisions of which
are also applicable to all its subsidiaries, in
charge of ensuring the timeliness, quality
relevant
and
information of Grupo Supervielle S.A. and
its subsidiaries that must be disclosed to
holders of company securities and the
markets where those securities are listed.
transparency
the
of
C.1.7. Fintech Committee
The Fintech Committee is in charge of
analyzing and making decisions about the
company’s
fintech
participation
in
endeavors and
related products and
projects, including the execution of cost
for each
estimates and
investments
C.1.8. Cybersecurity Committee
The Cybersecurity Committee’s main
objective is to assess and implement the
policies proposed as regards information
security and, in particular, cybersecurity,
including the definitions of risk appetite and
information security risk map. In addition,
the Cybersecurity Committee must see to
the compliance of such policies, including
training
and performance
resources,
assessment policies (including bonuses and
variable compensation).
This Committee is made up of at least three
non-executive directors. The chairman of
the Committee must be an independent
director pursuant to the criteria of the
Argentine
Exchange
Committee.
Securities
and
It is made up of at least three directors of
Grupo Supervielle (including the Chairman
of the Audit Committee), the CEO, the CFO,
the Investor Relations Officer, the Chief of
Legal Affairs and AML, the Head of Internal
Audit and the company’s accountant.
endeavor and the follow up of their
evolution.
The Fintech Committee is made up of at
least one director and other officers of the
Company or its subsidiaries.
the contingency plan for cybersecurity
events.
The Cybersecurity Committee is made up of
two directors, the CEO of Grupo Supervielle,
the CEO of Banco Supervielle, the Head of
the CIOs of Grupo
Technology and
Supervielle’s companies, the CRO and the
CISOs of Grupo Supervielle’s companies.
72
C.1.9. Committee for the Analysis of Operations with Related Parties
the Analysis of
for
The Committee
Operations with Related Parties is a body of
Grupo Supervielle with consultation and
supervision powers in charge of monitoring
that transactions among affiliates are in line
with the Policy of Approval of Operations
with
Connected
Counterparties and Related Persons and
sees that they are carried out
in a
transparent way and pursuant to the
provisions of applicable regulations.
Related
Parties,
It is made up of at least one director (which
must be the Chairman of the Ethics,
Compliance and Corporate Governance
Committee), the CEO, the CEO of the
affiliate involved in the transaction, the
Chief of Legal Affairs, the Chief Compliance
Officer, the CRO and the Chief Financial
Officer.
C.2. Compensation Policy for the Board of Directors and Senior Management
for
The members of the Board of Directors and
of the Statutory Audit Committee receive
compensation
their performance
pursuant to the provisions of the Argentine
Companies Law and the rules of the
Argentine
Exchange
Commission.
Securities
and
total compensation of Directors
The
determined or approved by the Annual
Shareholders' Meeting pursuant to Section
234 of the Argentine Companies Law,
cannot exceed the limits established by the
CNV and by Section 261 of the Argentine
Companies Law.
If the performance by any Director of
technical and administrative tasks justifies
payment of compensation in excess of the
amounts established by the CNV, said
payments may only be made if they are
expressly agreed by the Shareholders’
Meeting, to which end the matter must be
included in the agenda of the Annual
Shareholders’ Meeting.
to
total of compensations paid
The
Directors of Grupo Supervielle, paid, or
accrued for by Grupo Supervielle S.A. or its
subsidiaries, amounted in 2021 to AR$
384,989,802.55.
The Nominations
and Remuneration
Committee is in charge of approving all
incentive systems and of determining fixed
compensation policies and performance
Senior
assessment
Management and other members of the
staff, excluding the members of the Board
of Directors. The most relevant features of
the system are:
systems
the
for
Information relating to design and structure
of compensation processes
of
of
concept
underlying
the
The
compensation
Grupo
structure
Supervielle and its subsidiaries is to strike an
adequate balance between obtaining
results and managing risks in general. The
design of compensation processes aims at
remunerating and recognizing employees’
contribution
the achievement of
individual, unit and company goals in an
environment of healthy competition and
merit and performance-based payment,
within a robust risk control framework.
to
Description of the measures which take into
account current and
in
compensation processes
future
risks
component
the
variable
The
compensation
Supervielle
executive officers is determined considering
of Grupo
of
73
the achievement of individual objectives,
those of their business units and the goals
of each company, as well as
the
achievement of specific goals aimed at
keeping the different risks within the
desired thresholds.
Some of the risks considered
incentives plans include:
in the
1) Credit Risk
The objectives of the Credit and Commercial
areas of Personal and Business Banking and
of Corporate Banking are to keep credit risk
below desirable parameters, such as: (i)
delinquency; (ii) ratio of non-performing
portfolio (determined by the Board of
Directors) to total portfolio, and (iii) loan
loss provisions, among other.
2) Strategic Risk
The objectives of the Chief Executive Officer
and CFO are to alert about any deviations
from the main performance variables of the
bank’s finances vis-a-vis the annual plan,
and to take measures to adjust said
deviations.
3) Market, Liquidity, Rate and Securitization
Risk
The objectives of the bank’s Chief Financial
Officer are to achieve profitability targets by
executing miscellaneous operations within
a
framework that ensures that risks
assumed are within those ranges accepted
by the Bank and those permitted by the
regulatory body.
Profitability is determined by the applicable
policies in the financial area, which are
monitored by the Assets and Liabilities
Committee (ALCO)
Description of the method implemented by
Grupo Supervielle and its subsidiaries to
calculate performance-based compensation
during the evaluation period.
a
has
department
variable
Each
compensation scheme based on
the
achievement of individual objectives and
those of the company. Individual objectives
define a performance score that impacts on
the
compensation.
Achievement of the objectives of the
company and/or business unit
is an
indicator for increasing or reducing the
variable incentive amount.
calculation
of
Variable compensation schemes for risk
into account -among the
takers take
results-
and
objectives
compliance degrees of the risk level which
are monitored to determine whether the
determined risk appetite was met or not.
expected
Description of the method implemented to
adjust compensation taking into account
the
long-term performance
deferral policy of the organization)
(including
Grupo Supervielle timely established for
long-term
certain senior executives a
performance bonus, which is paid by way of
a retirement insurance policy. However,
this program has not been implemented
since 2019.
Description of the different types of variable
compensation used by Grupo Supervielle
and its subsidiaries and justification of
same.
Variable compensation is only paid in cash,
in the understanding that this is the most
direct
of
and
compensation.
convenient
way
74
Departments Reporting to the Board of Directors
SOX /Internal Control Department
and
Securities
Given its condition of foreign issuer before
the US
Exchange
Commission, Grupo Supervielle created the
SOX Department, reporting directly to the
CFO of Grupo Supervielle
to ensure
alignment with the criteria outlined in the
“Internal Control Framework” issued by the
Committee of Sponsoring Organizations of
the Treadway Commission (“COSO” Report)
and meet the requirements of Sections 302,
404 and 906 of the Sarbanes Oxley Law
(SOX). Its main activities during 2020 were:
SOX
Definition of the annual scope of
a)
and
certification process,
the
generation of the control matrix supporting
said processes.
Inclusion of the accounting and
b)
financial reporting processes of companies
acquired by Grupo Supervielle during this
year in the annual certification process.
Compliance Department
is
an
The Compliance Department
independent area whose mission
is to
"foster a culture of integrity, promote the
application of the best practices established
for the financial
industry and ensure
compliance with the applicable regulations
in order to avoid regulatory sanctions to the
company and its executives, material losses
and
risk of Grupo
Supervielle."
reputational
the
At Grupo Supervielle we promote the
creation of an ethical culture that demands
that each of our employees act with
integrity and transparency.
Within the framework of this culture, we
demand integrity to do the right thing,
transparency in the information provided to
to corrupt
customers, zero
tolerance
c)
Monitoring of compliance with the
execution of controls defined as key for
each process.
for
the
Advice
d)
continuous
implementation of the best internal control
practices for the main processes of Grupo
Supervielle’s companies.
Continuous
training of Grupo
e)
Supervielle’s
personnel,
companies’
including the duties and responsibilities of
each line of defense.
Implementation of
remediation
f)
actions in case of deviations detected by the
internal or external audit.
Additionally, the Head of SOX certification
of Grupo Supervielle was included as a
permanent guest in the Operational Risks
Committee
Internal Audit
the
Committee.
and
practices, the adequate conduct in the
markets where the Group is present, we
condemn misleading or forced sales, and we
tolerate discrimination and
do not
corruption in any of its forms.
At Grupo Supervielle we work on the
implementation of policies that ensure the
sustainability of the business, generating a
impact on ethics, compliance,
positive
governance,
responsibility and
environmental protection.
social
an
from
independent
the Compliance
During 2021,
Department,
area
reporting directly to the Ethics, Compliance
and Corporate Governance Committee of
the Board of Directors, we continue working
on this culture of integrity with focus on the
following pillars:
75
Regulatory Compliance
We monitored 303 regulations issued by
BCRA, CNV, AFIP, focusing on those that
should be implemented by the business.
action plans ranging from reinforcement of
values and coaching
the persons
reported, to their dismissal, if appropriate.
to
We reviewed the websites of Grupo
Supervielle's
Banco
companies
Supervielle's Home Banking in order to
verify compliance with the obligations
established by the different regulators.
and
We approved different Policies for Grupo
Supervielle companies related to expenses
and investments, dividends, confidentiality
and use of Privileged Information.
We drafted and implemented the Operating
Model for Compliance, which establishes
the regulatory framework, the reporting
structure within the governance model and
the obligations of the entities of Grupo
Supervielle S.A. related to Compliance.
This model describes the functions of the
the area
Compliance Department as
responsible for the implementation and
supervision of such function and establishes
guidelines of conduct and obligations to all
the companies controlled by Grupo
Supervielle S.A. and its employees.
Integrity Program for the Prevention
of Corruption
We included the Adhesion and Integrity
Manifestation
the
for
purchasing system.
suppliers
in
We conducted 45 anti-corruption reviews in
different operations carried out by Banco
Supervielle.
We created the registry of relations with the
public sector.
We drafted the "Guide for relations with the
public administration and for prevention of
corrupt practices."
Ethics & Values Line
At the Compliance Department we dealt
with 51 complaints received through the
Ethics Line.
All the complaints were investigated and
managed by different areas, establishing
Product Governance
In order to launch products and services to
customers with the best quality standards
and appropriate to our customer segments,
the Product, Service and Channel Approval
Committee approved the launching of 10
products/services/channels.
Training
During 2021 we continued training through
that
different postings
addressed various topics of the Code of
Ethics and awareness-raising on specific
topics.
in Workplace
We made 54 publications in Workplace of
companies of Grupo
the different
Supervielle
the main
that addressed
guidelines of the Code of Ethics, the
dissemination of the Ethics Line and
regulatory reports.
We also published the Operating Model of
Compliance, a tutorial for the approval of
new products, services and channels and a
Practical Guide for relations with the Public
Sector and for the Prevention of Corrupt
Practices.
The aspects of the Code of Ethics addressed
were Gift Policy, Use of Social Media,
Dignified Treatment, Diversity and Respect,
Anti-Corruption.
face-to-face
Additionally, we delivered
training courses for 45 Managers of the
AMBA, AMBA SUR and MDQ Divisions on
"Compliance & Good Practices."
92% of our employees completed the E-
Learning Course on the Code of Ethics of
Grupo Supervielle.
in
The Compliance Department continued
working
line with the best market
practices to guarantee transparency and
proper conduct by its employees and the
company.
76
D. RISK GOVERNANCE
Grupo Supervielle promotes a strong and
efficient risk management, an adequate
framework to optimize the use of capital
and identify good opportunities in business,
markets and geographic areas in which it
operates, seeking the best risk-benefit ratio
for their shareholders. Risk management is
a duty of the whole organization and
provides the framework to become an
innovative and customer-centric entity
recognized for its agile, simple and friendly
operation, promoting a robust risk culture.
related
issued
The Central Bank of Argentina
relevant guidelines
to good
corporate governance practices and risk
management for financial entities, which
have been fully complied with by the entity.
The Board of Directors of Banco Supervielle
considers that the guidelines and criteria
for the comprehensive management of the
Risk Governance
Banks’s risks are critical components of
their corporate governance structure. The
entity is exposed to the following typical
banking risks, such as credit risk, market
liquidity risk,
risk,
securitization
and
technological risks, reputation and strategic
risks, in addition cybersecurity risks which
are becoming increasingly common.
interest rate risk,
operational
risk,
A relevant change in 2021 was that the
former Credit Department was made a part
of the Risk Management Department,
which resulted in a restructuring of tasks in
the new structure under the responsibility
in
of the Chief Risk Officer, gaining
efficiency, agility and quality of service
provided
external
internal
customers.
and
to
Pursuant to the guidelines set forth by the Central Bank of Argentina for risk management and
corporate governance, Banco Supervielle implemented a risk management program which
introduces the new local regulations and the guidelines recommended by the Basel Committee
on Banking Supervision.
The Board of Directors of Grupo Supervielle defined a Corporate Governance model to ensure
the correct alignment of the management of the business units with a control and risks
environment according to international standards. Thus, at Grupo Supervielle level, the
organizational structure is defined as follows:
a) The CFO (Chief Financial Officer) of Grupo Supervielle, reports directly to the CEO of Grupo
Supervielle, to ensure an adequate management control framework and to carry out all the
duties related to information that, as a public company, it must provide to current and
prospective shareholders.
b) The CRO (Chief Risk Officer) of Grupo Supervielle, in charge of the Risk Management
Department, reporting directly to the Board of Directors of Grupo Supervielle, and in turn to the
Board of Directors of Banco Supervielle, since he/she is also the CRO of Banco Supervielle. Thus,
the principle of good corporate governance is met of separating business management from risk
management.
77
The risk governance structure is completed with the Board Committees and Senior Management
of the specific areas.
Risk Management in Banco Supervielle
Corporate Principles for Risk Management
Risk management of Banco Supervielle is based on five pillars which are the general principles
described below:
Pillar I: Independence between risks control and business and management functions.
Pillar II: Risk control and management integrated in a highly professional corporate structure.
Pillar III: Decision making by a multi-member body with a high involvement of the Board of
Directors and the Senior Management.
Pillar IV: Risks in line with the Risk Appetite defined by the Board and constantly monitored.
Pillar V: Risks management based on three lines of defense and a comprehensive vision at Grupo
Supervielle level.
2021 Risks Management Highlights
The 2021 risks management highlights are
described, by departments and areas of the
Risk Management Department.
By way of summary, the main duties of
these departments include:
• The Risk Management Department is
responsible for the development and
implementation of
adequate
framework for risk management to
an
credit,
and
identify, evaluate, monitor,
mitigate
operational,
technological, reputational, and socio-
environmental risks
faced by the
organization in the management of its
business.
This Department is responsible for the
development of models for credit
management and must maintain them
levels,
at adequate performance
78
applying best practice methodologies.
It implements credit policies in all
business units. Likewise, as to credit
risk, it is in charge of estimating loan
loss provisions
in accordance with
international standards, guaranteeing
the adequate estimation of future
credit losses in line with IFRS 9. Within
its mission, it is important to provide
information and strategies for the
different risk areas. As part of its
mission, this Department coordinates
and analyzes credit portfolio evolution,
proposing actions to anticipate and
mitigate the deterioration of the
quality of the Bank's credit portfolio
and collections.
This Department is also in charge of
maintaining the Business Continuity
Plan, as well as fraud prevention and
detection.
tasks
update
its
and
include
Additionally,
of
development
and
methodologies,
calibration of the different quantitative
models and generation and calibration
of the economic capital engines linked
to the risks it manages.
modeling
It also includes the preparation and
monitoring of the risk appetite set by
the Board of Directors or the Risk
Management Committee, as well as
the action plans to be followed based
on the contingency plans related to the
risk dashboard or the individual stress
tests under its responsibility.
and
Large
• The Credit Department for SMEs,
Medium
Companies,
Financial Institutions and the Public
Sector is responsible for coordination
the process of
and control of
evaluation, analysis and credit decision
making aimed at small, medium and
large Financial Institutions and the
Public Sector in order to ensure a risk
portfolio that complies with the Bank's
credit policy guidelines.
Additionally, this Department provides
credit analysis support to the Finance
Department and other companies of
Grupo Supervielle.
• The
is
Special
responsible
coordination
Risk Management
for
Department
programming,
and
control of the teams and processes for
all stages of companies’ delinquency
management, in order to prevent and
attack delinquency and optimize the
level of collections, minimizing the
level of delinquent debtors and the
deterioration of the relationship with
them, for which purpose it works in
close contact with the business areas of
Corporate Banking and Personal and
Business Banking.
• The Individuals’ Credit Recovery Squad
is responsible for control and follow up
of the evolution of individuals’ debts in
the different products and segments to
develop strategies, plans and actions
for an optimized collection. It is also in
charge of coordinating and controlling
the action of external collection firms.
is responsible for
Furthermore,
evaluating
the
investigating
situation of certain significant debts to
maximize
recovery,
minimizing the deterioration of the
relationship with debtors and the
debtor level.
level of
it
and
the
It also coordinates and controls the referral
of files to legal firms for purposes of
bringing
legal actions against
delinquent debtors.
timely
• The
monitoring
Financial
is
Risk Management
in charge of control,
Department
identification,
and
measurement of financial risks within the
regulatory BCRA framework, as well as of
execution
and
management) tasks inherent in Stress
Tests and the Capital Self-Assessment
Report (CAR), in order to evaluate capital
adequacy against the risk profile. Financial
risks include market, interest rate, liquidity,
(regulatory
all
of
79
it manages. It also
securitization, concentration of funding
sources and strategic risks. As part of its
mission, this Department develops and
updates methodologies, modeling and
calibration of the different quantitative
models and generation and calibration of
the economic capital engines linked to the
includes the
risks
preparation and monitoring of the risk
control dashboard based on the indicators
set by the Board of Directors or the Risk
Committee based on risk appetite and
tolerance, as well as the action plans to be
followed based on the contingency plans
linked to said dashboard or the individual
stress tests under its responsibility.
•
is
• The Information Security Department of
Banco Supervielle
in charge of the
protection of
information assets and
the
establishes mechanisms
administration and control of the logical
security of the different technological
its
environments of
information resources.
the bank and
for
The department is responsible for the
protection of information assets and for
implementation and maintenance of the
security policy established by the Board of
Directors of Grupo Supervielle.
The duties of the Information Security
include: strategy, policies,
department
Risk Management Department
During 2021, the following areas
reported to this Department:
• Non-Financial Risk Area
• Risk Intelligence Area
that
Grupo
practices, procedures and organizational
structure
Supervielle
companies must have in place for the
evaluation,
identification,
measurement, mitigation and monitoring
of cybersecurity risks.
analysis,
level
strategy
definition
The Information Security Department
is
Supervielle
at Grupo
responsible
and
for
consistent
implementation of a
for
security
information
Grupo Supervielle companies. To have
an agile, efficient, innovative security
community that
is reliable and a
source of permanent consultation. It is
also in charge of automating repetitive
processes/tasks and defining cross-
teams (X-Teams) that can provide
to all Grupo
security
Supervielle companies. In addition,
this department determines
the
maturity level of information security
in Grupo Supervielle’s companies and,
on that basis, set new maturity
objectives according
risk
appetite of Grupo Supervielle. To this
end,
it seeks to standardize the
security practices of each company in
order to obtain measurable and
comparable results.
services
the
to
• Analytical Solutions
for Risk
Models
• Forecasting
• Credit Policies
Credit Risk (standalone balance sheet
of Banco Supervielle)
Credit Risk is the possibility that an Entity
suffers losses and/or impairment of its
assets as a result of non-performance or
irregular performance of its debtors or
counterparties with the terms agreed in
the credit agreements. Any event that
implies an impairment of the current value
of credits granted is considered a credit
risk, irrespective of whether there is or not
an actual non-performance by
the
counterparty.
The Bank has customer scoring models
intended to determine the maximum risk
is willing to assume,
limits which
establishing credit facilities, the contract
terms and the guarantees to be posted. To
it
80
such end, the Entity uses Scoring Models
and Rating Models to manage the Credit
Risk and obtain an objective score for each
customer, which is then associated with a
probability of default (PD). These models
are used for decisions related to loan
granting and the associated limits, and
later for loan pricing. Such models and their
cut off are key for loan granting policies.
Banco Supervielle reports are reviewed by
the Risk Management Committee and the
Board of Directors. Such reports analyze
the credit risk and the entity’s evolution in
terms of exposure at different granularity
levels (Commercial Banking, Segments,
Teams, Products, etc.)
Regarding Risk Appetite, Banco Supervielle
has a Drill Down indicators approach, to
wit: NPL (Non-Performing Loan), Non
Performing Portfolio Coverage Ratio and
Cost of Risk. Likewise, during 2020 the
entity developed a portfolio limits scheme
linked to individual and economic group
concentration, concentration of the main
debtors, supplier value chain, economic
activities, facility risk rating and foreign
currency exposure.
In addition to the aforementioned models,
Banco Supervielle has developed RAROC
Measurement
Management
and
methodologies to monitor the risk-return
ratio of its businesses.
Throughout 2021, Banco
Supervielle
continued working on the development of
scoring and rating models, studying new
Machine Learning methodologies at the
time of development. The admission
models for the Senior Citizens and the
Non-Financial Risks
Entrepreneurs & SMEs segment (Legal
Entities and Individuals) were re-estimated
and the rating model for companies was
the development
adjusted.
started of a summarized rating model,
which seeks to evaluate the behavior of
SMEs by means of algorithms that reduce
the intervention of qualitative variables.
Likewise,
During 2021 we continued with the
quarterly
model
of
them within
performance,
predictive metrics
line with best
practices.
monitoring
keep
in
to
During 2021, the Credit Policy framework
was reviewed, generating changes mainly in
relation to the granting of
loans to
Entrepreneurs and SMEs, seeking to attract
customers by generating efficiency in the
granting process. Massive rating policies
were implemented to rate most of the
portfolio.
Analysis carried out by the Risk Intelligence
Department have also been implemented,
different
which
processes
from
collection
individuals, policy modifications, etc.
improving
as:
allowed
such
Progress was made on the expected credit
loss approach under IFRS 9, focusing on
improvements on parameter estimate
methodologies (PD, EAD and LGD), aligning
parameter definitions to the credit process.
The forward looking model was redesigned.
Finally, we continued with the validation
plan in force for the different models
implemented, obtaining a positive result for
all the models validated by an independent
third party.
During 2021,
the Non-Financial Risk
Department made significant progress in
to
the
operational and technological risks in the
Grupo
Digital
Transformation
inclusion of
related
issues
that
Supervielle has been facing, seeking to
provide risk support from the very design of
products and services. The role of risk
first at Banco
partner was created
of
consists
Supervielle.
This
role
81
participating in the design of processes and
producers, providing a comprehensive view
of operational and technological risks.
Likewise, it provides visibility on operational
losses and expected business
losses,
focusing on information timeliness. All of
this is done in an attempt to provide
adequate risk management in a timely and
efficient manner.
In addition to the Operational Incident
Incident
(RIO), Reputational
Reports
Reports (RIR) were implemented, which are
used by both the decision making and
affected areas to report and follow up on
reputational
they are
incidents until
resolved.
of
terms
fraud management,
In
approximately 96% more cases were
analyzed than in 2020 at Banco Supervielle.
In the case of IUDÚ, this percentage rises to
185%. In this context, a 40% improvement
fraud.
In addition,
was achieved in response times to customer
claims. Cooperation agreements were
entered into with other financial entities in
order to act in an agile manner when faced
with claims from customers who were
victims of
joint
communication actions were implemented
with the security and communications areas
in order
raise awareness among
customers about fraud prevention. At IUDÚ,
these actions were supplemented by
training employees to detect cases of
identity theft. We began implementing a
prevention system that includes machine
fraudulent
to
learning models
patterns and behaviors.
study
to
Finally, in the area of socio-environmental
risks, we participated in roundtables on the
sustainable finance protocol of Argentina.
Likewise, we continued reviewing cases. We
have a restricted companies indicator.
Credit Department for SMEs, Medium and Large Companies, Financial
Institutions, and the Public Sector
and
Credit
Department,
With the Credit Department reporting
to the Risk Management Department,
the Credit Department for SMEs,
Medium
Large Companies,
Financial Institutions and the Public
Sector absorbed the supervision of the
SME
the
Entrepreneurs & SME Area and the
Individual Credit
Corporate and
Authorization
This
Desks.
organizational reengineering made it
significant
possible
operational
efficiencies without
affecting the quality of the services
internal and external
provided to
achieve
to
to
customers. The following are the main
management milestones: 1) active
contribution
improve portfolio
quality through permanent portfolio
monitoring, 2) support provided to the
Special Risks Department
the
analysis and recovery strategies in
relevant cases, and 3) the credit advice
provided to the Capital Markets
Department
in the evaluation of
capital market transactions and the
positioning as a leading player in the
Guarantee
Negotiable
SMEs
Obligations segment.
in
Special Risks Department
In 2021 and within the framework of the
merger of Departments,
the Credit
Recovery Department became part of the
Risk Management Department and was
renamed Special Risks Department (RREE).
82
The RREE continues to be formed as
follows: (i) the Delinquency Management
Area, which includes Business and Personal
Banking, Corporate and Finance, from early
to late delinquency (early and late) and (ii)
the Special Cases & Restructuring area,
which manages high-risk credit assets and
advises on restructuring matters. The team
also has an Administration and Control
area that interacts with the Risk, Credit,
Market Relations, Sox, and Audit areas,
among others.
The team worked on three objectives:
a) control of corporate delinquencies
and monitoring of high-risk credit
assets,
Individual Credit Recovery Squad
During 2021, the Individual Credit Recovery
Department merged with
the Risk
Management Department, formed by the
management teams of Early and Late
Delinquency, Legal Internal Audit, and the
Emerix Cell.
We actively worked on the consequences
of the Covid-19 crisis, intensifying the
management of deferred loans, zero-rate
loans (FOGAR), credit portfolio, open
market and write-off recovery.
launched for
Special campaigns were
customers in financial distress, offering
restructuring and refinancing, always in
compliance with BCRA regulations and
seeking to support customers in such
Financial Risk Management Department
This department of Banco Supervielle deals
with the following risks:
•
Liquidity Risk and Risk of Concentration
of Funding Sources
Interest Rate Risk
•
• Market Risk
(price, exchange rate,
interest rate and options).
b) recovery of sensitive loans, and
c)
follow-up and management of
rescheduled cases under B.C.R.A.
Com A 6949 et seq. which included
the training of our teams at the
commercial areas focused on the
main segments of customers who
facilities which
requested such
were due on April 2021 and did not
result
in debtors’
delinquency.
increase
in
complex
experience is always at the center.
times
that
so
customer
The Emerix core, developed by the Agile
Cell under the same name, was key to
portfolio administration, management,
providing high flexibility for the creation of
special
evolutionary
improvements on its refinancing simulator,
and other modules that allow greater
efficiency
and
in
identification of early warnings.
management
campaigns,
The focus was placed on positioning the
Recovery teams as strategic players within
the organization to incorporate collection
as an important part of the customer's life
cycle.
• Securitization Risk
the
securitization activity and the interest
rate and credit risks involved).
(integrating
• As of 2021,
the
Financial Risk
Management Department took over the
execution of Stress Tests, together with
and
the
presentation of the Annual Capital Self-
Assessment Report.
organization,
design,
83
The Risk Management Committee delegates
the responsibility for
implementing the
policies and strategies related to these risks
to the Assets and Liabilities Committee
(ALCO), composed of senior management
staff and representatives of the business
units in which financial risk arises. This
appropriate
committee
interdisciplinary
an
expeditious treatment of changes in market
environment
provides
the
for
conditions that result in an alteration of
financial risk exposure.
During 2021, the Financial Risk Management
Department, which deals with all the
aforementioned risks, participated in the
design of tools and reports to support the
decisions to meet the objectives of the
Financial Planning Department and the
Trading desk, with active participation in the
ALCO Committee.
Liquidity Risk and Risk of Concentration of Funding Sources
Banco Supervielle developed a system to
manage
Liquidity Risk and Risk of
Concentration of Funding Sources which
includes risk appetite and defines the risk
levels and types the bank is willing to
assume to carry out the budget plan
without relevant deviations, even under
stress conditions.
Core metrics used
management include:
for
liquidity
risk
•
Ratio
Coverage
Liquidity
(LCR):
measures the high-quality liquid assets
to total net cash outflows ratio during a
30-day period. Banco Supervielle
calculates this ratio on a daily basis.
• Net Stable Funding Ratio
(NSFR):
measures Banco Supervielle’s capacity,
Interest Rate Risk
at standalone and consolidated level, to
finance its activities with sufficiently
stable sources to mitigate the risk of
future stress situations deriving from its
funding. Banco Supervielle calculates
this ratio on a daily basis.
(ALCO).
Committee
Additionally, daily monitoring is carried out
on follow-up metrics by the Assets and
Liabilities
Such
indicators intend to disaggregate the main
LCR components through the assessment of
the entity’s liquidity and warning about
possible
that might
jeopardize the guidelines on risk appetite.
With the monitoring indicators dashboard,
the Committee assesses the availability of
liquid assets in case of an outflow of more
volatile deposits.
changes
trend
This type of risk is the potential impact of
fluctuations in the interest rate prevailing in
the market on the interest margin and the
bank’s economic value.
holding period used for assessing the
interest rate risk exposure, and due to its
importance to assess the actions that may
modify the balance sheet structure.
analysis
presents
Banco Supervielle uses the interest rate gap
analysis to manage the interest rate risk.
basic
This
sheet
representation of
structure and detects
rate
concentrations at different time periods.
The gap accumulated during the first ninety
days draws special attention as it is the
a
the balance
interest
The management of balance sheet interest
rate risk seeks to maintain the bank’s
exposure in line with the risk appetite
profile accepted by the Board in case of
interest rate movements in the market.
With this goal in mind, interest rate risk
management depends on the monitoring of
two metrics:
84
• MVE – Var Approach: measures the
the estimated
difference between
the market
economic value with
and the estimated
interest curve
economic value with the interest rate
curve arising from the simulation of
different stress scenarios. This is the
approach used by the entity to calculate
the economic capital arising from this
risk.
• NIM – EaR Approach: measures the
change
in expected accruals for a
specified term (12 months) in case of a
shift of the interest curve originated in
a
stress
scenarios.
simulation of different
the
the
publication
Following
of
Communication “A” 6397, the Central Bank
of Argentina described the guidelines
applicable to the interest rate risk in the
investment portfolio. The rules make a
distinction between
impact of
fluctuations in the interest rate levels on the
underlying value of assets, liabilities and the
entity’s off-balance sheet items (economic
value or MVE) on the one hand, and the
alterations that might be caused by such
rate movements on income and expense
sensitive to them, affecting the net interest
income (NII). As aforesaid, this same
criterion was used by Banco Supervielle at
standalone and consolidated level so that
the new rules implied a readjustment of the
management model
the proposed
measurement methodology, maintaining
certain criteria and including others.
to
rate
flattening
5.4. of Communication “A” 6397 to measure
the impact of six fluctuation scenarios on
the economic value of equity (∆EVE) of
entities. These scenarios include parallel up
in market
and parallel down changes
interest
or
curves,
steepening of such curves, as well as short
term rate up or down. A market rate base
curve is considered for every significant
currency of each entity’s balance sheet. As
Banco Supervielle belongs to Group “A” of
financial
institutions, pursuant to the
classification provided for in para. 4.1. of
the
Institution
and
Authorities,”
consolidated level it must use an internal
measurement system (IMS) for the net
interest margin (∆NIM) measurement. As
Banco Supervielle is for the moment not
identified by the Central Bank of Argentina
as a domestic systematically
important
bank (D-SIB), it is not bound to have its own
internal measurement system (IMS) for the
economic
(∆EVE)
of
measurement.
standalone
rules on
“Financial
equity
value
at
Irrespective of regulatory provisions, Banco
Supervielle has been working with internal
measurement systems (IMS) to measure
the impact of rate changes, both on the
economic value of equity (∆EVE) and on net
interest margin (∆NIM). Development of
these systems included the establishment
of assumptions for the determination of the
maturity of different items of assets and
liabilities that do not have a defined
maturity or with implied or explicit behavior
options.
Banco
the
Standardized Framework described in para.
Supervielle must
use
Market Risk
Banco Supervielle defines Market Risk as
the risk from deviations in the trading book
value as a result of market fluctuations
during the period required to settle
portfolio positions.
The measurement, control and follow up by
the Financial Risk Management Department
85
encompasses transactions with a risk of loss
of the entity’s equity, at consolidated and
standalone level, as a result of changes in
market factors. This risk derives from the
changes in the risk factors under analysis
(interest rate risk, exchange rate risk, equity
risk and options risk), as well as liquidity risk
of the different products and markets in
which the entity operates.
to
Due
its business profile, Banco
Supervielle is the entity with the greatest
exposure to this risk, while IUDÚ Compañía
Financiera has a much lower exposure,
more associated with the entity’s liquidity
management. For such reason, market risk
controls of Banco Supervielle’s trading book
are more detailed and thorough.
thresholds
In order to measure risk of the different
positions and establish a structure of limits
and
for management and
control purposes, Banco Supervielle uses
the VaR (value at risk) model, which is the
maximum expected loss in the value of a
financial assets portfolio in normal market
conditions over a determined time horizon
and subject
level of
confidence. On this basis, indicators are
defined to detect the level in which a
potential market risk may be identified so as
to take preventive action.
to a specified
As regards market risk, focus is on the
trading book managed by the Trading Desk
of Banco Supervielle, although a more
is carried out which
stringent control
includes liquidity management positions.
Thus, regarding a more comprehensive
trading book, controls are limited to the risk
the VaR
exposure assumed, as per
methodology, in relation to the Regulatory
Capital (RC).
Controls on the Trading Desk of Banco
Supervielle are more
stringent. The
approved strategies and policies are
reflected in what is internally known as
Uniform Risks Map, which explains in detail
the transactions that the Trading Desk is
the entity’s
portfolio, maximum
authorized to carry out. That document
refers to the control framework applicable
to
risk appetite. Thus,
limitations are set on the position of certain
financial instruments, maximum VaR on the
diversified
loss
admissible before implementation of a stop
loss policy and conditions that could give
rise to the implementation of a stop gain
strategy.
is
supplemented by action plans that must be
implemented when
limits are
exceeded.
scheme
control
those
This
Financial
Risk Management
The
Department compares the profitability
obtained with the implied risks based on the
daily report provided to the Trading Desk
for monitoring the assumed risk exposure.
When the diversified VaR methodology is
used, information must be supplied related
to the contribution made by each portfolio
asset to the aggregated VaR measurement
and basically if such asset generates risk
diversification or not. For such reason, the
variables referred to in the daily report
include the VaR component of each asset,
enabling a sensitivity analysis of the impact
of each asset on the total risk exposure.
in VaR
To contribute to the assumed risk analysis
with alternative measurement metrics
capable of mitigating the usual criticism on
the VaR methodology, Banco Supervielle
recognizes the change in market conditions
on risk exposure through an adjustment of
calculation.
volatilities used
According to the methodology used, returns
on assets recorded on most recent dates
have a greater impact on the calculation of
volatilities. Concurrently, the entity makes
an assumed risk measurement and follow-
up with an Expected Shortfall methodology,
thus analyzing the universe of unexpected
losses in the distribution tail beyond the
critical point indicated by the VaR.
In 2021 we implemented the What If
scenario impact analysis to the trading
portfolio.
86
Stress Test
In compliance with the “guidelines for risk
management in Financial Institutions”
established by
the Central Bank of
Argentina, Banco Supervielle developed a
stress test program within the framework
of the Entity’s risks management. Such
program evolved with the new upgrades to
tools and methodologies used to that end.
Stress tests show the risk profile of an
Entity and its resilience to internal and/or
external disturbances, and are used
together with other risk management tools
in the decision making process.
Stress tests are defined as the assessment
of the economic/financial situation of the
Entity vis-a-vis various adverse yet possible
scenarios in order to know and analyze the
Information Security Department
The Information Security Area is responsible
for the information assets protection and
for the implementation and maintenance of
the security policy established by the Bank’s
Board of Directors.
into account
The guidelines for management of Banco
Supervielle’s information security generally
the provisions of
take
Communications “A” 4609, “A” 6375 and
companion provisions of the Central Bank of
Argentina which are the framework for the
management of matters related to the
protection of IT assets and the management
of Operational and Technological risk.
Information Security
Management of
includes:
strategy, policies, practices,
procedures and organization structure
which Banco Supervielle must rely on to
identify, analyze, assess, measure, mitigate
and monitor cybersecurity risks.
During 2021 we implemented the 24x7
Security Monitors
which
significantly improves the security posture
service,
Bank’s capacity to face those scenarios and
their associated impact.
Stress tests are mainly important to:
• Provide a prospective risk assessment;
• Overcome model and historical data
limitations;
• Support
external
and
internal
communication;
• Establish capital and liquidity planning
procedures;
• Determine risk tolerance levels;
• Develop
contingency
risk
and
in possible stress
mitigation plans
situations.
different
and maturity in terms of detection and
reaction to cyber-attacks. Within this
framework, different platforms were
analyzed;
playbooks were
implemented and adapted to proceed
appropriately in case of incidents; and
dashboards were developed
the
management and visualization of incidents,
trends and other issues necessary for day-
to-day operations. Being one of the main
sources of cyber-attacks, the mandatory
assessment of Swift's security was carried
out and resulted in a very positive level of
compliance,
level of
compliance and security by almost 45% with
respect to the previous year.
increasing
the
for
At Grupo Supervielle
level, a single
Information Security Policy was approved
for all its subsidiaries. Likewise, Grupo
Supervielle's
gradually
internalized the security rules drafted by
Banco Supervielle's Security COE.
companies
87
Economic Capital
entities
In compliance with the guidelines for
risk management
financial
the Central Bank of
established by
Argentina, Banco Supervielle developed an
internal, integrated and global process to
assess the economic capital sufficiency
based on risk capital, and annually prepares
the Capital Self-Assessment Report (CSR).
Economic capital is that required to cover
the entity’s expected and unexpected losses
originating in all the risks to which the entity
is exposed. Therefore, economic capital
estimates are used to determine the capital
or own resources Banco Supervielle would
require to cover such losses.
The risks used by Banco Supervielle to establish methodologies for economic capital calculation,
weighted as of December 2021, were as follows:
88
E. SHARE STRUCTURE – SHAREHOLDERS – SHARE BEHAVIOR
Class B shares of Grupo Supervielle are
listed on the ByMA (formerly MERVAL) and
MAE since March 19, 2016, under the
symbol “SUPV.” Grupo Supervielle’s ADS,
which represent 5 Class B shares each, are
listed on the New York Stock Exchange with
the symbol "SUPV.”
Class A
Shares
Class B Shares
Total
Controlling Shareholder
61,738,188
Class B Shares
ADRs (Class B shares)
98,684,713
73,397,576
160,422,901
73,397,576
222,901,845
222,901,845
Total
61,738,188
394,984,134
456,722,322
All common shares have the same economic rights, but Class A shares are entitled to five votes
per share while Class B shares are entitled to one vote per share.
89
The following chart shows the share price evolution and the volume operated by Grupo
Supervielle in BYMA during 2021.
The following chart shows the share price evolution and the volume operated by Grupo
Supervielle in NYSE during 2021.
90
F. DIVIDENDS PAID AND RECEIVED
in
its
capital
As a general rule, each year, the Board of
Directors is in favor of the efficient use of
capital
distribution
recommendation made at the General
the
Shareholders’ Meeting. Therefore,
Board may recommend reinvesting profits
when investment opportunities exist or
is a
distributing dividends when there
capital surplus.
During 2021, as resolved by the Ordinary
and Extraordinary General Shareholders'
Meeting of April 27, 2021 and after the
release of the optional reserve created for
the distribution of dividends approved by
the Board of Directors on April 29, 2021,
pursuant to the provisions of General
Resolution No. 777/2018 of the CNV, which
establishes that "the distribution of profits,
shall be dealt with in the currency of the
date of the shareholders' meeting by using
the price index corresponding to the month
prior to its meeting, a cash dividend was
paid in the amount of Ps. 385 169,488.60 to
be paid as of May 14, 2021. The amount
distributed
to
84.333405670% of the capital stock of Ps.
456,722,322 and Ps. 0.84333405670 for
each
Ps.
4.21667028350 per ADS.
outstanding
equivalent
share
was
and
Additionally, in 2021, the company received the following dividends from its subsidiaries:
Dividends received from subsidiaries
Date
Dividend ($)
Supervielle Seguros S.A.
April
190,000,000
November
190,000,000
Supervielle Asset Management
April
296,400,328
IOL invertironline
September
316,553,660
Sofital
Total
April
May
33,880,770
14,520,116
1,041,354,874
G. ANALYSIS OF THE BALANCE SHEET AND RESULTS
Consolidated Data
Consolidated Balance Sheet
(in thousands of Pesos)
Assets
Cash on hand and cash in banks
As of
December
31, 2021
As of
December
31, 2020
32,574,118 55,357,647
91
Securities at fair value through profit or loss
Derivatives
Repos
Other financial assets
Loans and other financing
Non financial public sector
Other financial entities
Non-financial private sector and residents abroad
Other debt securities
Financial assets used as security
Assets for income tax, current
Investments in equity instruments
Property, plant and equipment
Investment property
Intangible assets
Assets for deferred income tax
Other non financial assets
Inventories
Total Assets
Liabilities
Deposits
Liabilities at fair value through profit or loss
Derivatives
Repos
Other financial liabilities
Financing received from the BCRA and other
Issued negotiable obligations
Liabilities for current income tax
Subordinated negotiable obligations
Provisions
Liabilities for deferred income tax
Other non financial liabilities
Total Liabilities
Shareholders’ Equity
Shareholders’ equity attributable to the owners of the
controlling company
Shareholders’ equity attributable to non-controlling interests
Total Liabilities and Shareholders’ Equity
Consolidated Comprehensive Income Statement
(In thousands of Pesos)
Interest income
Interest expense
Net Interest income
221,858
22,738
76,832
19,757,685 14,900,812
217,271
42,849,578 33,742,602
13,892,799
6,466,853
157,900,248 159,960,374
35,517
18,207
157,800,678 159,906,650
79,002,785 62,284,781
7,403,589
-
175,587
11,034,912 10,722,347
9,053,396
11,422,105 10,237,674
4,559,619
2,042,059
107,114
392,239,229 377,231,725
8,539,934
880,290
264,280
2,602,840
2,460,899
136,775
8,698,123
2,053,216
-
-
288,458,097 269,644,541
3,021,859
3,011
-
23,780,242 11,365,430
8,832,217
6,379,922
1,944,531
1,721,443
1,028,051
63,403
16,243,827 18,333,510
338,822,577 322,337,918
53,416,652 54,893,807
6,252,548
1,059,240
-
-
913,671
61,736
53,373,922 54,849,977
42,730
43,830
392,239,229 377,231,725
As of
December
31, 2021
As of
December
31, 2020
97,583,644
103,420,472
(60,499,508) (43,130,268)
54,453,376
42,920,964
92
Fee income
Fee expense
Income from Insurance Activities
Net fee income
Subtotal
Net income (loss) from measurement of financial instruments at fair value
through profit or loss
Income (loss) from assets written off at amortized cost
Difference in quotation of gold and foreign currency
Financial income and holding gains (losses)
Other operating income
Income (loss) from exposure to changes in the currency’s purchasing power
Loan loss
Net operating income
Benefits to personnel
Administration expenses
Depreciation and impairment of assets
Other operating expenses
Operating income (loss)
Income before tax on continuing business activities
Income tax on continuing activities
Net Income (loss) for the year
Net income (loss) for the year attributable to the owners of the controlling
company
Net income (loss) for the year attributable to non-controlling interests
Other comprehensive income (loss)
Other comprehensive income attributable to non-controlling interests
Other comprehensive income attributable to non-controlling interests
Comprehensive Income (loss) for the year
Comprehensive income for the year attributable to the owners of the
controlling company
Comprehensive income for the year attributable to non- controlling
interests
16,665,264
(5,080,481)
2,271,246
13,856,029
56,776,993
17,348,966
(5,355,317)
2,522,921
14,516,570
68,969,946
8,889,470
5,004,594
991,715
254,187
1,606,801
992,383
7,603,110
10,136,040
5,865,898
5,520,403
(8,158,870)
(6,759,527)
(7,283,448) (13,215,203)
62,464,224
56,991,118
27,422,841
25,591,322
15,565,847
15,355,578
3,633,207
4,226,935
9,920,618
11,846,768
5,921,711
(29,485)
5,921,711
(29,485)
1,109,382
831,902
4,812,329
(861,387)
(860,404)
4,809,242
(983)
(101,057)
(100,940)
(117)
(962,444)
3,087
1,135,110
1,133,948
1,162
5,947,439
(961,344)
5,943,190
(1,100)
4,249
Standalone Information
Standalone Comprehensive Income (loss) Statement (in thousands of pesos)
As of December 31,
Interest income
Interest expense
Net interest income
Net income (loss) from financial instruments measured at fair value through
profit or loss
Result from recognition of assets measured at amortized cost
Difference in quotation of gold and foreign currency
Other operating income
Income (loss) from exposure to the currency’s purchasing power
Net operating income
2021
2020
188
(24,062)
(23,874)
53,743
-
53,743
177,565
319,926
(23,633)
131,090
393,182
(609,905)
44,425
-47,960
141,972
347,576
-156,857
658,400
93
Presonnel Expenses
Administration expenses
Depreciation and impairment of assets
Other operating expense
Operating income (loss)
Income from subsidiaries, associated and joint businesses
Income before tax on continuing activities
Income tax on continuing activities
Net Income (loss) for the year
Other comprehensive income (loss)
Income tax on other comprehensive income
Comprehensive income (loss) for the year
Consolidated Cash Flow (in thousands of pesos)
Cash flow from operating activities
Cash flow from investment activities
Cash flow from financing activities
Effect of exchange rate change
Total cash flow change
36,411
283,825
93,752
29,435
(398,998)
(390,594)
(789,592)
70,812
(860,404)
(136,323)
7,423
(989,304)
178,253
467,626
93,786
35,703
(116,968)
4,163,880
4,046,912
(762,330)
4,809,242
1,135,265
(1,317)
5,943,190
As of
December 31.
2021
8,975,720
(4,836,400)
(12,563,419)
10,697,803
2,273,704
As of
December 31,
2020
33,441,236
(5,512,423)
(21,475,352)
9,246,019
15,699,480
During the year ended December 31, 2021,
the net loss attributable to owners of the
controlling entity amounted to Ps.860.4
million, a decrease of Ps.5,669.6 million as
compared to the net income of Ps.4,809.2
million in 2020, originated in a decrease of
in
result of
the
Ps.4,554.5 million
investments
in related entities (Banco
Supervielle S.A. recorded a net loss of
Ps.928.8 million as compared to income of
Ps.2,897.2 million in 2020).
Income by Business
(In thousands of Pesos)
Income from interests in Banco Supervielle S.A.
Income from interests in Cordial Compañía Financiera S.A.
Income from interests in Tarjeta Automática S.A.
Income from interests in Supervielle Asset Management S.A.
Income from interests in Espacio Cordial de Servicios S.A.
Income from interests in Supervielle Seguros S.A.
Income from interests in Sofital S.A.F. e I.I.
Income from interests in Micro Lending S.A.U.
12/31/2021 12/31/2020
(928,852)
2,897,150
(81,863)
(47,379)
(295,113)
(293,532)
503,825
443,542
(30,106)
(56,736)
532,591
725,593
19,820
254,050
62,654
13,823
94
Income from interests in InvertirOnline S.A.U. and InvertirOnline.Com
Argentina S.A.U.
Income from interests in Bolsillo Digital S.A.U.
Income from interests in Futuros del Sur S.A.
Income from interests in FF Fintech
Income from interests in Supervielle Productores Asesores de Seguros
S.A.
Income from interests in Easy Cambio S.A.
(48,064)
165,175
(35,949)
(35,719)
1,401
129,271
(64,225)
5,517
(20,007)
(37,817)
(4,857)
(1,849)
942
-
(390,594)
4,163,880
Income from interests in IOL Holding S.A.
Total
Administration expenses
The administration expenses of Grupo
Supervielle S.A. as of December 31, 2021
and 2020 were:
Items
(In thousands of Pesos)
Banking expenses
Professional fees
Fees of directors and statutory auditors
Taxes, charges and assessments
Insurance
Office expenses and services
Other expenses
Total
Benefits to Personnel
The benefits
to personnel of Grupo
Supervielle S.A. as of December 31, 2021
and 2020 were:
Items
(In thousands of Pesos)
Personnel Expenses
Total
Total as of
12/31/2021
Total as of
12/31/2020
528
51,756
189,885
7,413
296
7,584
26,363
283,825
981
74,969
297,363
21,302
805
11,449
60,757
467,626
Total as of
31/12/2021
Total as of
31/12/2020
36,411
36,411
178,253
178,253
95
Net income from measurement of financial instruments at fair value through
profit or loss
Items
(In thousands of Pesos)
Interest from Time Deposits
Income from holding of government bonds
Income from holding of mutual funds
Total
12/31/2021
12/31/2020
39,905
-
137,660
177,565
72,633
144,667
102,626
319,926
Financial income (expense) and holding
gains (losses) provided by assets mainly
consist of revaluation of, and interest on,
time deposits in Financial Instruments and
income from temporary
not allocated
investments in liquidity funds.
Other Income and Expense
On December 1, 2008 and on January 16,
2010, Grupo Supervielle entered into a
services contract with Banco Supervielle for
the provision of financial, strategic and
commercial advisory services for the search
and generation of new businesses and
expansion of existing businesses.
In addition, Grupo Supervielle entered into
similar agreements with Tarjeta Automática
S.A., Supervielle Asset Management S.A.
and Sofital S.A.F. e I.I., effective as from
January 1, 2009, with IUDÚ Compañía
Financiera S.A. effective as from August 1,
2011 and with Espacio Cordial de Servicios
S.A. effective as from December 26, 2013.
As of December 31, 2021 and 2020, the
Income Tax
As of December 31, 2021, the Company
recorded a charge for income tax of Pesos
70,812 thousand on its taxable assets,
mainly derived from financial income on the
investment portfolio. Income from interests
income for such services amounted to Pesos
293,129.9
thousand
292,208.3
thousand, respectively.
and
and
S.A.
In 2013, Grupo Supervielle S.A. entered into
agreements with Espacio Cordial de
Servicios
IUDÚ Compañía
Financiera S.A. to grant licenses to use
certain brands on behalf of the Company
with the intent to promote the marketing of
goods and services provided by the
aforementioned
which
agreements were amended on January 2,
2020. These agreements resulted in an
income for the Company of Pesos 1,755.6
thousand and Pesos 1,893.0 thousand as of
December 31, 2021 and 2020, respectively.
companies,
in other companies is not considered for
determination of the taxable income (it is
paid at company level) and dividends are
exempt.
96
Regulatory Capital
The table below presents the consolidated minimum capital position of Banco Supervielle.
Consolidated Information
CAPITAL STOCK PAYMENT
Tier 1 (a) Capital
Tier 1 (b) Capital Deductible Items
Supplementary Shareholders' Equity (Tier 2
Capital)
In Millions of $
Change
12/31/2021 12/31/2020 Amount
%
43,019
(6,964)
30,444
12,575
(7,206)
242
41.3%
-3.4%
11
1,091
(1,080)
-99.0%
36,066
24,329
11,737
48.2%
CAPITAL REQUIREMENT
Requirement for Credit Risk
Requirement for Operational Risk
Requirement for Market Risk
EXCESS CAPITAL
Basic Shareholders' Equity (a) - (b)
RISK WEIGHTED ASSETS
15,028
10,451
4,806
3,298
965
552
14,301
10,028
20,799
15,267
36,055
32,425
4,576
1,508
414
6,498
5,239
43.8%
45.7%
74.9%
45.4%
52.2%
55.2%
23,238
12,817
126,312
(93,888)
-74.3%
Pro forma consolidated Tier 1 capital ratio of Grupo Supervielle amounted to 12.7 % as of
December 31, 2021. This ratio includes $1,603.2 million which the Company maintains as
liquidity excess and could be applied to the growth of its business and its subsidiaries.
Proposed Loss Absorption and Profit Distribution
The loss for fiscal year 2021 amounted to
the Board
$860,404
proposes that
it be absorbed by the
statutory reserve.
thousand, and
If the above proposal is approved by the
Shareholders' Meeting, the shareholders'
equity of Grupo Supervielle S.A. will be as
follows:
Capital Stock
Capital Adjustment
Additional Paid-in Capital
Statutory Reserve
Optional Reserve
Other Comprehensive Income
Total Shareholders’ Equity
12.31.2021
In Thousands of $
456,722
4,713,494
43,558,993
531,832
2,903,748
1,209,133
53,373,922
97
Without prejudice to the absorption of
losses for the year, the Board of Directors
also proposes that the optional reserve be
partially set aside to pay a dividend of
the
Ps.286,960
obligation to pay personal property tax on
shares and interests and the withholding tax
on dividends and similar profits. This would
to offset
thousand
the
provide a means of
aforementioned tax without affecting the
Company.
recovering
this proposal
the
If
shareholders’ equity of Grupo Supervielle
S.A. will be as follows:
is approved,
Capital Stock
Capital Adjustment
Additional Paid-in Capital
Statutory Reserve
Optional Reserve
Other Comprehensive Income
Total Shareholders’ Equity
12.31.2021
In Thousands of $
456,722
4,713,494
43,558,993
531,832
2,616,788
1,209,133
53,086,962
98
IV. COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE
GRUPO SUPERVIELLE S.A.
(the “Company”)
COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE
AS OF DECEMBER 31, 2021
A) DUTIES OF THE BOARD
1. The Board creates an ethical work culture and sets the company’s vision, mission, and
values
The Board of Directors of Grupo Supervielle
complies with this duty, and sets the
company’s vision, mission, and values, and
implements an ethical and good faith
the regulatory
conduct,
line with
requirements applicable
to corporate
executives.
in
Those values are included in the Code of
Ethics approved by the Board, which sets
the basic principles and practices of good
corporate governance as well as the
defense of honesty, ethics and
legal
provisions applicable to the Company’s
businesses. The Code of Ethics is published
the
Company’s
in
https://www.gruposupervielle.com/Spanis
h/nuestro-enfoque/gobierno-
corporativo/default.aspx
website:
for
In addition, the Company has an Ethics,
Compliance and Corporate Governance
these
Committee which provides
matters and which is formed by 2 Board
members. This Committee’s duties and
responsibilities are published
the
Company’s website:
https://www.gruposupervielle.com/Spanis
h/nuestro-enfoque/gobierno-
corporativo/default.aspx#comites
in
2. The Board sets the general corporate strategy and approves the strategic plan to be
developed by the management. In so doing, the Board considers environmental, social, and
corporate governance factors. The Board uses key performance indicators to supervise its
implementation, in furtherance of the best interests of the Company and its shareholders.
The Board complies with this duty, and
defines the strategic objectives of the
Company which are communicated to
Senior Executives for implementation, who,
in turn, inform the different business areas
of the Company of the scope and goals, so
that the personnel is aligned accordingly.
For application of this duty, the Board
approves the annual Budget considering the
macroeconomic scenario, the different
variables, the business challenges and
corporate
social
environmental,
governance factors, and carries out a
and
quarterly performance assessment.
particular, the Company has a Risks
In
risk
Committee which, among other duties, is in
indicators
charge of monitoring
corresponding to the Social-Environmental
Risk. The Risk Management Committee is
made up of at least 2 Board members and
other Senior officers. In addition, as stated
below, the Company regularly publishes a
Sustainability Report that is structured on
leadership,
the basis of our values:
innovation,
efficiency,
simplicity,
commitment and respect. These values
99
confer a unique identity to the Supervielle
organization and guide the relationship with
the community of customers, suppliers,
employees and peers. Grupo Supervielle
aligns its vision to the expectations and
needs of its stakeholders. The materiality
analysis becomes a key process to identify
such expectations and to develop action
plans, objectives and strategies
that
promote sustainable development. The
Sustainability Report includes indicators,
follow-up data on
measurements and
economic factors (ethical and transparency
standards; profitability and economic
sustainability; commitment to customers;
market positioning of our value proposition;
in the
generation of economic value
environment;
of
financial
disadvantaged groups);
factors
(quality employment, education and
training of people; diversity and equal
opportunities;
non-
gender
discrimination; management of labor and
to manage
union
good
employee health
community
chain
management; human rights assessment;
development of products and services
and
relations;
inclusion
social
relations; capacity
safety;
value
equity;
designed to provide a social benefit); and
environmental
(resource optimization;
effluent and waste management and
reduction; credit evaluation policies and
procedures with environmental and social
criteria).
into account Grupo
The Budget takes
Supervielle’s objectives, and establishes
specific goals and metrics for each of the
subsidiaries.
performance
The aim of this follow-up is to assess
business
and make
corrections to ensure that the objectives
in the annual budget are
established
achieved. It includes the position of each
portfolio,
income,
a breakdown of
expenses, and other items for each of the
companies of Grupo Supervielle and for
Grupo Supervielle at consolidated level.
is submitted by Senior
This analysis
Executives to the Board on a quarterly basis,
and includes the results for the period at
consolidated level of Grupo Supervielle, and
monitors the key indicators and the general
and specific situation of each subsidiary.
3. The Board supervises senior executives and sees that an adequate internal control system is
developed, implemented, and maintained in line with clear reporting guidelines.
in place
The Board complies with this duty. Grupo
rules and
Supervielle has
procedures
intended to guarantee an
adequate level of internal control and to
mitigate all risks inherent in the Company’s
activity. The Board of Directors has three
defense barriers to protect the Company’s
internal control environment. The first line
of defense: business Executives whose
duties include, in addition to running the
business, identifying risks and events of
default, such as taking action to manage
and deal with them. The first line of defense
reports to the CEO. The second line: the
Risks and Compliance departments which
establish standards and supervise risks. This
line reports to the Board of
second
Directors. The third
independent
line:
assurance suppliers who report to the
Board of Directors: Internal Audit, External
Audit and other independent advisors. The
Internal Audit assesses: a) the effectiveness
of the organization’s first and second
defense barriers; b) adjustment to and
compliance with procedures and policies; c)
risks (low, medium, high) and also controls
that the organization operates within the
appetite parameters established by the
Board of Directors.
In addition, the Company has an Audit
Committee made up of three directors, two
of which are independent; the duties of the
in the
Audit Committee are published
website:
Company’s
https://www.gruposupervielle.com/Spanis
h/nuestro-enfoque/gobierno-
corporativo/default.aspx#comites
100
Besides, as a foreign issuer listed on the US
Securities and Exchange Commission,
Grupo Supervielle has a SOX Department
reporting directly to the CFO to ensure
alignment to the criteria set forth in the
“Internal Control Framework issued by the
Committee of Sponsoring Organizations of
the Treadway Commission (“COSO Report”)
and to meet the requirements of sections
302, 404 and 906 of the Sarbanes Oxley Act
(SOX). Its main duties are: (i) to define the
yearly scope of the SOX certification process
and the generation of control matrices
underlying said processes; (ii) to include in
financial
the annual certification process accounting
and
reporting processes of
companies acquired by Grupo Supervielle
during that fiscal year; (iii) to monitor
compliance with key controls of each
process; (iv) to advise on the constant
introduction of the best internal control
practices for the main processes; (v) to
provide on-going training to the personnel;
and (vi) to promote remediation plans for
any deviations detected by the internal or
independent audit.
4. The Board designs the corporate governance structures and practices, appoints the officer
responsible of their implementation, monitors their effectiveness and suggests changes
when required.
The Board complies with this duty. The
Code of Corporate Governance of Grupo
Supervielle sets forth the guidelines for
the organization,
performance
particularly the Board and the Senior
Executives regarding the corporate object,
the
shareholders,
investors, suppliers and stakeholders.
relationship with
for all
of
standards
The Code stipulates the conduct guidelines
and corporate governance practices of
Grupo Supervielle, which are based on
stringent
complete
information, efficiency, control, ethics,
investor protection, equal treatment to
investors and corporate transparency, so as
to create and preserve value for the
Company, the shareholders, customers,
employees and the public in general.
The Board is in charge of the creation,
dissemination and update of the Code of
Corporate Governance.
in
is
the Company’s website:
The Code of Corporate Governance
published
https://www.gruposupervielle.com/Spanis
h/nuestro-enfoque/gobierno-
corporativo/default.aspx#marco-de-
referencia
turn,
In
governance
Compliance and Corporate Governance
the Company's
scheme has
corporate
an Ethics,
practices
Committee whose function is to assist the
Board of Directors in the adoption of the
best
corporate
of
governance, aimed at maximizing the
growth capacity of Grupo Supervielle and its
controlled companies and preventing the
destruction of value.
good
the
functions,
Among other
the Ethics,
Compliance and Corporate Governance
Committee must: (i) prepare and submit to
the consideration of the Board of Directors
for its approval the Corporate Governance
Code and
codes, policies and
procedures related to Ethics & Compliance
issues that shall aim at a progressive
convergence
international
towards
standards of ethics, compliance and
corporate governance by Grupo Supervielle
and its controlled companies; (ii) propose to
the Board of Directors an agenda related to
ethics and compliance issues; (iii) define
policies and procedures related to ethics
and compliance; (iv) promote, follow up and
supervise compliance with the Corporate
Governance Code and the codes, policies
to Ethics &
and procedures
Compliance and report to the Board of
Directors any deviation that may occur and
it deems
make the recommendations
appropriate; (v) submit to the Board of
Directors the Annual Report on compliance
with the Corporate Governance Code; (vi)
related
101
(vii)
and
Securities
Supervielle;
take cognizance of the rules issued by the
Argentine
Exchange
Commission, the Central Bank of Argentina,
the Superintendence of
Insurance of
Argentina, the Superintendence of Bodies
Corporate and,
in general, any other
controlling agency and of the effects that
the application of such rules may have on
the corporate governance practices of
Grupo
make
recommendations to the Board of Directors
regarding the adoption of the provisions
contained in RG 797/2019 of the Argentine
Securities and Exchange Commission
regarding
Corporate
Code
Governance, in Communications A 5201
and A 7100 of the Central Bank of Argentina
and
the
Superintendence of Insurance of Argentina
that may be applicable; (viii) be informed of
the
the Basel
Committee and make recommendations to
the Board of Directors for their gradual and
progressive adoption; (ix) review the results
of the inspections of the Central Bank of
Argentina and other regulatory agencies
and take into account the comments of the
to ethics,
external auditors
recommendations of
regulations
related
the
the
of
of
in
ethics
governance,
compliance and corporate governance
issues; (x) report the Board of Directors on
corporate
and
compliance issues it deems relevant, as well
as on incidents and complaints; (xi) propose
to the Board of Directors possible changes
to internal regulations of Committees in
order to improve the execution of their
objectives and functions; (xii) propose to
the Board of Directors policies and
procedures for the evaluation and self-
evaluation of the Board of Directors and its
members and of the Board Committees;
(xiii) define policies and guidelines related
to parties related to Grupo Supervielle; (xiv)
regularly review the Code of Ethics and the
Corporate Governance Codes in force; (xv)
exercise such other powers as are assigned
to the Committee by the Board of Directors.
The duties and responsibilities of the Ethics,
Compliance and Corporate Governance
Committee are published in the Company’s
website:
https://www.gruposupervielle.com/Spanis
h/nuestro-enfoque/gobierno-
corporativo/default.aspx#comites
5. The members of the Board have sufficient time to perform their duties in a professional and
efficient manner. The Board and its committees have clearly stated rules applicable to their
operations and organization, which are communicated through the company’s webpage.
The Board complies with this duty. The
Directors devote the necessary time and
efforts to regularly monitor the matters
related to the Company’s management.
The Board and the Board’s Committees
receive disaggregated data on matters that
are submitted for their consideration with
due anticipation to the holding of meetings,
so that they can analyze said data
thoroughly and be prepared to make
efficient decisions.
if deemed
The Board may decide,
convenient and necessary or
legally
applicable, to create Board committees,
determine their composition, duties and
scope, and approve their internal rules in
line with the powers vested by the by-laws
and the law. Each committee has its own
internal rules and reports to the Board on a
regular basis. The Company informs the
shareholders of the composition of each
committee.
state
clearly
duties,
The Internal Rules approved and in force of
their
each Committee
responsibilities,
powers,
composition and operation.
The duties and responsibilities of the Board
Committees are published in the Company’s
website:
https://www.gruposupervielle.com/Spanis
h/nuestro-enfoque/gobierno-
corporativo/default.aspx#comites.
102
B) CHAIRMAN OF THE BOARD OF DIRECTORS AND CORPORATE SECRETARY
6. The Chairman of the Board of Directors is in charge of conducting the Board meetings,
drafting the agenda, jointly with the other members, and ensuring that the directors receive
with due anticipation the necessary materials to be adequately informed so as to have an
efficient participation at meetings. Chairmen of the committees have the same
responsibilities at their respective meetings.
The Board complies with this duty. The
Chairman of the Company is in charge,
among other, of ensuring the effective
operation of the Board of Directors and the
compliance with
the procedures and
governance rules, and of organizing and
tasks
coordinating
among the members of the Board. The
Secretary assists the Chairman
in the
performance of these tasks.
the distribution of
The Board’s agenda allows the directors
enough time to make an efficient decision-
making process, based on high quality and
thorough debates and analysis.
The chairmen of the Board’s Committees
have the same responsibilities for their
meetings and are assisted by a secretary of
the Committee.
7. The Chairman of the Board of Directors monitors the adequate internal operation of the
Board through the implementation of formal annual assessment processes.
The Board complies with this duty. The
Chairman is assisted by the Nominations
and Remuneration Committee and by the
Ethics,
Corporate
Governance Committee, who prepare and
regularly review the criteria and guidelines
for the self-assessment process of the
Board.
Compliance
and
The duties and responsibilities of the
Nominations and Remuneration Committee
and of
the Ethics, Compliance and
Corporate Governance Committee are
published in the Company’s website:
https://www.gruposupervielle.com/Spanis
h/nuestro-enfoque/gobierno-
corporativo/default.aspx#comites.
8. The Chairman creates a positive and constructive work environment for all the members of
the Board and ensures that they receive continued training to be updated and prepared to
perform their duties.
The Chairman creates a positive and
and
constructive work environment,
promotes debate and active participation of
the Board’s members.
The Board designs and implements on a
yearly basis a training program for directors
and approves the training programs for
the
senior executives,
together with
Nominations and Remuneration Committee
and the Chief of Human Resources.
Training policies set forth the general
guidelines for training plans, based on the
business objectives, and are constantly
reviewed to ensure that they reflect the
needs of the organization.
103
9. The Corporate Secretary assists the Chairman of the Board in his duties and in the
communication among shareholders, Board members and senior executives.
The Board complies with this duty and
appoints a Board’s Secretary, who assists
the Chairman in the development of their
duties. At present, a member of the Board
of Directors acts as Secretary.
The mission of the Board’s Secretary is to
provide for the adequate development of
the Board’s meetings and the Shareholders’
Meetings, particularly:
(i) provide any
required information to the members of the
Board and the shareholders, (ii) supervise
the adequate registration of the corporate
documents, (iii) assist the Chairman of the
Board in the preparation and compliance
with the agenda for Board’s meetings and
Shareholders’ meetings, (iv) distribute to
the directors the relevant information in
connection with the Board’s meetings and
the documents to be considered thereat, (v)
distribute among the shareholders the
relevant information in connection with the
Shareholders’ meetings and the documents
to be considered
(vi) keep
adequate records of these meetings in the
books of minutes; and (vii) keep an
adequate record of the work papers of the
Board and of the presentations made by the
executives of Grupo Supervielle and by
independent advisors.
thereat;
10. The Chairman of the Board ensures that all the members of the Board participate in the
debate and approval of a succession plan of the company’s CEO.
The Board complies with this duty and, to
such effect, it relies on the Nominations and
Remuneration Committee.
This Committee analyses
the Human
Resources Strategic Plan and submits to the
Board’s consideration and approval the
proposals for the appointment of the CEO,
the COO, senior and other executives.
and
Besides,
Compensations designs the succession
plans, which are regularly reviewed.
Appointments
the
C) BOARD COMPOSITION, APPOINTMENT AND SUCCESSION
11. Pursuant to the applicable criteria of the Argentine Securities and Exchange Commission,
there must be at least two independent directors in the Board.
The Board complies with this duty. At
present, the Company’s Board of Directors
is made up of 8 members, 2 of whom are
independent directors, in compliance with
the criteria of the Argentine Securities and
Exchange Commission.
12. The Company has an Appointments Committee made up of at least three (3) members and
presided over by an independent director. If the Chairman of the Board presides over the
Appointments Committee, they must not participate in the appointment of their own
successor.
The Board complies with this duty. Grupo
Supervielle has an Nominations and
Remuneration Committee made up of 4
directors, 3 of whom are non-executive
directors, and presided over by an
independent director.
The chairman of the Board of Directors does
not
and
Remuneration Committee.
Nominations
chair
the
104
13. The Board, through its Appointments Committee, prepares a succession plan for its
members that is used as a guide for the preselection process of candidates to cover
vacancies, and considers the non-binding recommendations of its members, the CEO and
the shareholders.
The Board complies with this duty. In line
with the provisions of its Internal Rules, the
Nominations and Remuneration Committee
of Grupo Supervielle assists the Board in the
appointment of directors and senior
executives and prepares their succession
plans.
In turn, Grupo Supervielle promotes an
equality culture, doing away with any type
of discrimination and inequality based on
identity, disability,
age, gender, gender
race, ethnics, nationality, religion or sexual
orientation. In such framework, specific
strategies and action plans are developed to
identify and guarantee the removal of any
hindrances that may be faced by women, on
joining, participating in, being promoted in,
the
regarding
also
and
compensation and recognition.
Company,
14. The Board implements an induction program for newly appointed members
The Board complies with this duty. The
Nominations and Remuneration Committee
of Grupo Supervielle, by delegation of the
Board, coordinates the induction process
for the newly appointed members of the
Board and Senior Executives.
D) COMPENSATION
15. The Company has a Compensations Committee made up of at least three (3) members, who
are independent or non-executive directors.
During the year under consideration, the
Board partially complied with this. The
Nominations and Remuneration Committee
of Grupo Supervielle is made up of 4
members of the Board, 3 of which are non-
executive, and is chaired by an independent
director.
16. The Board, through the Compensations Committee, sets forth a compensation policy for the
CEO and the members of the Board of Directors.
The Board complies with this duty. Pursuant
to the provisions of its Internal Rules, the
Nominations and Remuneration Committee
is in charge, among other, of assisting the
Board in the preparation of principles,
parameters and guidelines related to the
compensation policies applicable to Board
members, Senior Executives and
the
fee
including
in general,
personnel
schemes, fixed and variable wages and
incentive plans, retirement plans and
related benefits, as the case may be, in line
with the applicable regulatory provisions.
addition,
the Nominations
In
and
Remuneration Committee is in charge of
assessing on a yearly basis the economic
incentives scheme for Senior Executives,
which may be prepared by an independent
firm. The Committee works jointly with the
Risk Management Committee
the
assessment of incentives to the personnel,
generated by the economic
incentives
scheme.
in
105
E) CONTROL ENVIRONMENT
17. The Board determines the company’s risk appetite and monitors and ensures the existence
of a risk management system that identifies, assesses, decides the course of action and
monitors the risks to which the Company is exposed, including – among other, the
environmental and social risks and those associated with its business in the short and long
term.
related
The Board complies with this duty. Within
its corporate governance structure, the
Board of Grupo Supervielle has a Risk
Management Committee which is in charge
of: (i) dealing at institutional level with
strategies and policies applicable to the
management of credit risk, market risk,
interest rate risk, liquidity risk, operational
risk, and any other risks that may affect the
Company and its subsidiaries pursuant to
applicable
the best
regulations and
practices, and verifying that they are
adequately
implemented and complied
with; (ii) submitting to the Board’s approval
the documents
risk
management strategies and policies, which
are reviewed on a yearly basis to ensure
their applicability; (iii) defining risk appetite
and
levels of Grupo
Supervielle at consolidated level and the
global risk profile, which must be approved
by the Board; (iv) approving the risk
management threshold and limit structure
and becoming acquainted with
the
evolution of the respective indicators; (v)
regularly monitoring the different risks to
which the Company is exposed and the
application of strategies and policies
defined for the management of said risks;
(vi) evaluating the capital adequacy vis-a-vis
the risk profile of Grupo Supervielle, and
Self-
analyzing
the Annual Capital
tolerance
risk
the
to
the
results
on
Assessment Report prior to the approval by
the Board; (vii) defining the policy and
methodological framework for stress tests
within risk management and approving
scenarios that enable the carrying out of
individual and comprehensive stress tests,
and making
evaluating
recommendations
applicable
contingency plans; (viii) designing efficient
information channels and systems to keep
risk
the Board duly
the
management; and
and
methodological
the
developments
quantitative models used to manage the
different
for
calculation of the economic capital for every
risk, among other.
informed on
(ix) approving
framework
the models
risks and
applicable
to
The Risk Management Committee holds
monthly meetings and the minutes of these
meetings are submitted to the Board’s
consideration.
The Company has a Chief Risk Officer, who
reports to the Board. The duties and
responsibilities of the Risk Management
Committee are published in the Company’s
website:
https://www.gruposupervielle.com/Spanis
h/nuestro-enfoque/gobierno-
corporativo/default.aspx#comites.
18. The Board monitors and reviews the effectiveness of independent internal audits and
provides the resources required for the implementation of a risk based annual audit plan,
and provides for a direct reporting line to the Audit Committee.
The Board complies with this duty. Grupo
Supervielle has an Audit Committee made
up of 3 directors, two of whom are
the
independent,
in compliance with
criteria established by
Securities and Exchange Commission.
the Argentine
This body is in charge of assisting the Board
in the supervision of accounting statements
106
and of verifying the enforcement of policies,
procedures, proceedings and rules of the
Company and its subsidiaries.
the
system
systems
supervises
verifies
internal
As regards the supervision of
controls, the Audit Committee: (i) verifies
that the Company has adequate internal
its
and
control
implementation;
the
(ii)
implementation of
the administrative
accounting system and of the reliability of
financial
and of
that
information, or of other significant facts
that are submitted to the Argentine
Securities and Exchange Commission and
in compliance with the
the markets,
applicable reporting scheme; (iii) verifies
that the Company has adequate rules and
procedures
its
implementation; (iv) verifies and assesses
the performance of the Internal Audit,
providing
the necessary human and
economic resources and approving the
Annual Audit Plan and any additional ad-hoc
supervises
and
audits; (v) follows up on the enforcement of
the audit work plan and issues an opinion
upon presentation and publication of the
financial statements; (vi) issues an opinion
on the appointment or replacement of the
Head of Internal Audit; and (vii) analyzes the
financial statements of the Company and of
its subsidiaries, among other functions,
prior to their submission to the Board of
Directors and with the necessary depth to
verify their reasonableness, reliability and
clarity. In addition, the Audit Committee
supervises the enforcement of the risk
management reporting policies of the
Company.
The Audit Committee holds monthly
meetings and
these
meetings are submitted to the Board’s
consideration.
the minutes of
The Company has a Head of Internal Audit,
who reports to the Audit Committee.
19. The internal auditor or the members of the internal audit area are independent and highly
qualified.
The Board complies with this duty. Pursuant
to the provisions of its by-laws, the Internal
Audit area is part of the organizational
structure of Grupo Supervielle, and reports
to the Audit Committee.
Audit Committee has unrestricted access to
all Senior Executives of Grupo Supervielle
information and documents
and to all
deemed necessary for fulfillment of their
duties.
Internal auditors are independent officers
and are in charge of auditing the different
areas and activities of Grupo Supervielle
and of reporting on its adequate operation,
and,
of making
recommendations intended to protect the
company’s property, optimize available
resources and promote compliance with
laws, rules and regulations.
applicable,
if
responsible
The Board and the Audit Committee are
the
for ensuring
directly
independence and objectivity of
the
Internal Audit area. To that end, internal
auditors must be free of interferences
regarding
scope,
procedures,
schedule and
content of reports. In such framework, the
audit
frequency,
selection,
internal auditors have no
Moreover,
responsibility or power over any of the
audited activities or the employees working
Therefore, internal auditors
on them.
cannot exert internal controls, or develop
procedures, or
implement systems, or
prepare records, or participate in other
activities that may affect their opinion. Each
business unit is responsible for their audits.
In the performance of their duties, internal
auditors must show the highest level of
professional objectivity during collection,
evaluation
of
information on the matter under review,
and must take care not to be unduly
influenced by third party opinions or by
their own interests at the time of issuing
communication
and
107
their opinion. Any circumstance that might
compromise
or
objectivity of internal auditors must be
immediate
communicated
independence
their
the
to
superiors, who will take such actions as are
necessary for the case.
20. The Board has an Audit Committee that acts based on rules. The majority of its members
and its Chairman are independent directors. The CEO is not a member. The majority of its
members have professional expertise in finance and accounting.
The Board partially complies with this duty.
The Company has an Audit Committee
made up of 3 independent directors, two of
whom are independent, in compliance with
the provisions of the Argentine Securities
and
The
Chairwoman of the Audit Committee is a
non independent director. The CEO is not a
member of this committee.
Commission.
Exchange
All the Directors who are members of the
Audit Committee of Grupo Supervielle are
the management,
highly qualified
in
finance, accounting and auditing of large
companies and banks. In addition, the
Chairwoman of the Audit Committee is a
Financial Expert as provided for by Section
407 of the Sarbanes Oxley Act.
The duties and responsibilities of the Audit
Committee are published in the Company’s
website:
https://www.gruposupervielle.com/Spanis
h/nuestro-enfoque/gobierno-
corporativo/default.aspx#comites.
21. The Board, with the opinion of the Audit Committee, approves the selection and monitoring
policy of independent auditors, which determines the indicators to be considered for making
a recommendation to the shareholders’ meetings regarding the replacement or not of the
independent auditor.
The Board complies with this duty. The
Rules of the Audit Committee set forth that
the obligation of this committee is to give an
opinion on the proposals made by the Board
regarding the appointment of independent
auditors or
said
appointment.
revocation of
the
The opinion must contain, at least: (i) track
record assessment; (ii) the grounds for the
continuity or not of a certified accountant in
that position, and
in case of
appointment of a new independent auditor,
(iii)
F) ETHICS, INTEGRITY AND COMPLIANCE
the opinion must include a detailed report
of the discrepancies, if any, found in the
accounting statements of the Company.
When the Board of Directors approves the
financial statements for each fiscal year, the
Audit Committee, in line with the provisions
of its internal rules, must issue an opinion
on the independent auditor’s planning,
performance and independence during the
year. The Committee includes such opinion
and the grounds thereof in the Annual
Performance Report.
22. The Board approves a Code of Ethics and Conduct that embodies the ethical and integrity
values and principles and the corporate culture. The Code of Ethics and Conduct is
communicated and applies to all the directors, executives and employees of the Company.
The Board complies with this duty.
Grupo Supervielle has a Code of Ethics
approved by the Board of Directors, based
on a set of essential values that distinguish
108
and identify Grupo Supervielle and that
must be respected by its members in their
daily actions with customers, suppliers,
employees and control entities.
fair treatment among employees and with
customers, suppliers and the community in
general, and (v) transparency and respect
regarding
arrangements made with
customers so as to provide a quality service.
This Code applies to all employees of Grupo
Supervielle and its subsidiaries, including
temporary hires, or those under trial period,
members of
independent
the Board,
advisors, suppliers and any third parties
who, by reason of their relationship with
the
Grupo
reputation of the company or any of its
subsidiaries.
Supervielle, may
affect
Ethical values are a distinctive element of
Grupo Supervielle and must be respected by
its members in their daily activities with
stakeholders. Employees are required to
have: (i) leadership to be market referents;
(ii) innovation to challenge boundaries and
seek new solutions for customers; (iii)
commitment to offer sustainable solutions
to
the demands of customers and
stakeholders; (iv) respect towards others,
listening and understanding customers’
needs and promoting constructive personal
and business relationships; (v) efficiency to
add value and give prompt quality
responses, making a responsible and
sustainable use of available resources, and
(vi) capacity to make customers’ life easier,
respecting their time, operating robust and
simple processes and making decisions that
take customers into account.
In addition, the Code of Ethics sets forth a
framework of ethics and transparency that
enables the building of long term and trust-
based relationships with stakeholders. The
code promotes a culture of integrity and
compliance with regulations and the best
practices, with the aim of promoting the
development of
and
a
competitive commercial environment.
sustainable
The Code of Ethics sets forth: (i) the
promotion of equal opportunities and
nondiscrimination; (ii) the provision of a
safe and healthy work environment; (iii) the
promotion of
respectful, honest and
committed relations with stakeholders; (iv)
The Code of Ethics also sets guidelines for
(i) non-
specific situations, such as:
disclosure of customer and proprietary
information and prohibition to use said
information to obtain a personal benefit; (ii)
guidelines for cases of conflict of interests;
(iii) a corporate gift policy; (iv) guidelines for
a kind
relationship with government
officers, customers, suppliers, competitors
and the Company and for the provision of
agile and quality services; (v) compliance
with applicable regulations and policies; (vi)
anti-money
terrorist
financing guidelines and (vii) guidelines for
hiring employees.
laundering
and
The Code of Ethics is published in the
website:
Company’s
https://www.gruposupervielle.com/Spanis
h/nuestro-enfoque/gobierno-
corporativo/default.aspx.
Grupo Supervielle makes available to all its
employees, customers and suppliers an
Ethics Line, which is outsourced. It is an
anonymous and independent information
service to communicate any irregular event
affecting the interests of the Company and
its subsidiaries. The Ethics Line seeks to
channel information related to behavior
inconsistent with
values,
independence,
guaranteeing
confidentiality and anonymity of
the
reporting persons, and prohibiting any type
of retaliation or negative consequence to
the employees who make such reports.
Telephone No. 0800-777-7813
Web: https://eticagruposupervielle.line
aseticas.com/
Username: Supervielle
Password: supervielle
corporate
the
During the year under consideration, a total
of 51 complaints were received at Grupo
Supervielle’s level, 39 of which are related
109
to Banco Supervielle and 12 to the
Consumer Division (IUDÚ). The complaints
dealt with three main topics: mistreatment,
customer claims for poor service and other
irregular conducts. All complaints were duly
dealt with and investigated through the
corresponding channels, and applicable
correction and/or penalty actions were
taken.
23. The Board establishes and regularly reviews an Ethics and Integrity Program, based on risks,
size and economic capacity of the Company. The senior executives openly support the plan,
and appoint an internal executive to develop, coordinate, supervise and regularly assess the
program’s efficiency. The program provides for: (i) regular training to directors, executives
and employees on topics related to ethics, integrity and compliance; (ii) internal channels to
report anomalies, which are open to third parties and are duly communicated; (iii) a
protection policy to prevent retaliation against those who make reports; and an internal
investigation system that respects the rights of the investigated parties and imposes
effective penalties for the violation of the Code of Ethics and Conduct; (iv) integrity policies
in bidding processes; (v) mechanisms for regular risk analysis, monitoring of third party or
business partners commercial record (including due diligence to verify any anomalies,
misconducts or the existence of vulnerabilities during mergers and acquisitions), including
suppliers, distributors, service providers, agents and brokers.
is
to
committed
The Board complies with this duty. Grupo
Supervielle
the
implementation of an culture of integrity
that promotes strict compliance with the
laws, regulations, internal codes and good
practices applicable to the industry. Grupo
Supervielle requires that its employees act
with honesty and transparency in their
relationship with the Public Administration
so as to prevent any act that could be
construed as bribery, influence peddling or
any form of corruption, and has zero
tolerance towards this kind of conducts.
To that end, Grupo Supervielle has in place
an Integrity Program for the Prevention of
Corrupt Practices which consists of a set of
internal
actions, mechanisms
and
integrity,
procedures for promotion of
at
and
supervision
preventing, detecting and fixing anomalies
and preventing punishable
conducts
pursuant to the aforementioned rules. It is
made up as follows:
control,
aimed
(ii)
crimes.
performance of their tasks so as to
prevent
internal
regulations are embodied in the
Code of Ethics, the Gifts and Travel
Policy and the Donation Policy.
Said
Guidelines of conduct with third
parties: in the relationship with
public agencies transparency and
accountability are key elements for
the promotion of
integrity and
prevention of corrupt practices.
Therefore, the Integrity Program
sets specific rules and procedures
to prevent crimes
in bidding
processes,
administrative
contracts or in any other interaction
with the public administration. In
turn, prior to the hiring of services
from third parties to act on behalf
of Grupo Supervielle, the business
area carries out a due diligence so
as to become acquainted with its
intermediaries
prevent
improper conducts by those acting
on its behalf.
and
in
(i)
Integrity Policies to prevent crimes
and
improper conducts: set of
policies and procedures applicable
to all directors, executives and
the
that
employees
guide
(iii)
continued
Training: The Company has in place
anti-corruption
a
training program addressed
to
and
directors,
executives
110
(iv)
program
is
The
employees.
implemented through the Chief
Compliance Officer in coordination
with the Chief Human Resources
is
attendance
Officer,
mandatory for all employees.
and
promote
laws
to
Internal Investigations and Ethics
Line: The Compliance Department
may
internal
investigations on a specific issue or
In those cases, certain
report.
records, books and accounts may
be audited or investigated so as to
prevent and detect violations of
and
anti-corruption
procedures,
ensure
and
compliance with this Program and
other
and
procedures. All employees must
cooperate if so required. The Ethics
Line is available to all employees
and suppliers of Grupo Supervielle,
and may be used to report any
alleged violation of that policy. That
report shall give rise to an internal
investigation that must guarantee
the rights of
investigated
parties, which shall result on the
imposition of applicable penalties.
internal
policies
the
Retaliation against employees that
make such reports in good faith is
forbidden; the right to defense of
the reported party is guaranteed.
investigations
Besides,
regarding alleged fraudulent acts
are conducted by the Chief Risk
Officer through a special unit to
address these cases.
internal
The Board of Directors is in charge of
Integrity
reviewing and modifying the
Program for the Prevention of Corrupt
Practices, with the recommendation of the
Ethics,
Corporate
Governance Committee.
Compliance
and
The Compliance Department is in charge of
the interpretation, control and supervision
of the policy and is responsible for ensuring
its effective compliance. It carries out the
regular risk analysis for the consequent
adaptation of the Integrity Program for the
Prevention of Corrupt Practices, as well as
the continuous monitoring and evaluation
of its effectiveness. The Chief Compliance
Officer is internally responsible for the
development,
and
supervision of the Integrity Program.
coordination,
24. The Board ensures the existence of formal mechanisms to prevent and deal with conflicts of
interest. In the case of transactions with related parties, the Board approves a policy that
sets forth the role of each corporate body and defines how to identify, manage and
communicate transactions that are harmful for the Company or for certain investors only.
is
The Board complies with this duty. The
Company has in place a Conflict of Interest
Policy that
intended to define the
framework to prevent and manage conflicts
of interest so as to avoid or limit their
the Company’s
negative effects on
interests.
Said Conflict of Interest Policy supplements
laws, rules and regulations on values related
to disclosure and negotiation, and to
policies and procedures established in other
corporate governance documents of the
Company. In particular, the Rules of the
Audit Committee and the Code of Ethics
provide additional information regarding
the procedures
review disclosure,
to
conduct and preparation of reports on non-
compliance.
is addressed
It applies to Grupo Supervielle S.A. and its
to all
subsidiaries, and
members of the Board, the Statutory Audit
Committee,
and
employees regardless of their employment
terms.
Executives
Senior
The Policy sets forth the obligation of
reporting parties to report those facts that
might give rise to a conflict of interest as
soon as possible to their
immediate
superior and to the Chief Compliance
111
Officer so as to be removed from that
position that creates the conflict of interest.
if an employee
Besides,
is also a
shareholder, manager, director or senior
executive of a competitor or supplier of
Grupo Supervielle, they must promptly
report this fact to the Chief Compliance
Officer, who shall evaluate the situation
jointly with
the Audit Committee.
Executives, managers, professionals and
technicians carrying out activities not
related to Grupo Supervielle must reveal all
the details related to that fact to the Chief
Compliance Officer. Current or potential
conflicts of interest involving controlling
shareholders, the Board members, the
Statutory Audit Committee members and
the Senior Executives must be reported to
the Chairman of the Board, the Chairman of
the Audit Committee and the Chairman of
the Ethics, Compliance and Corporate
Governance Committee.
The Policy sets forth that those persons that
do not avoid or duly report conflicts of
interest affecting or likely to affect them will
be liable for direct and indirect damages to
the Company arising from their conduct and
shall be subject to penalties pursuant to
applicable laws and the contracts in force.
Besides, the Board of Directors of Grupo
Supervielle approved a Policy of Approval of
Operations with Related Parties, Connected
Counterparties and Related Persons that
regulates and sets forth the fora of analysis
and the conditions for the approval of
related
transactions with
parties,
related persons,
and
counterparties
pursuant to the provisions of the Argentine
Securities and Exchange Commission and
the Central Bank of Argentina, as applicable,
and the rules of the US Securities and
Exchange Commission.
The aforementioned Policy is intended to
ensure that said transactions be carried out
with transparency, fairness and objectivity,
under terms and conditions in line with
applicable
in
financial statements, and be in line with
good corporate governance practices.
laws, be clearly reported
Counterparties
Besides, Grupo Supervielle has a Committee
for the Analysis of Operations with Related
Parties,
and Related
Persons, which is governed by Internal Rules
and has consultancy and supervision
powers to apply the corresponding Policy in
order to ensure the transparency of these
transactions and that they are carried out
pursuant to the conditions set forth in
applicable regulations.
G) SHAREHOLDERS AND STAKEHOLDERS
25. Financial and non-financial information is disclosed on the Company’s website, which may
be accessed by all investors. The website has a special area for consideration of investment
inquiries.
The Board complies with this duty. Grupo
website
Supervielle’s
www.gruposupervielle.com
is a public
website and is updated on a regular basis
with relevant corporate information, as
follows:
- Institutional information: includes the
history of the Company, a description of its
the
businesses,
composition of
the
leadership team and the recognitions and
awards obtained.
corporate
- Commitment: describes the company's
purpose and general strategy. This section
also sets out the ESG (environmental, social
and
strategy,
defines the materiality matrix and includes
the Sustainability Reports existing to date.
The corporate bylaws,
the Corporate
Governance Code and the main corporate
governance)
112
policies are also are included and there is a
description of the duties of the Board of
Directors' committees and the strategies
and policies for risk management. This
section also describes our Culture in terms
inclusion, work
of
methodologies,
internal
communication and volunteering.
diversity
training,
and
shareholding
- Investors: provides information on share
performance,
structure,
financial information including quarterly
results, results and annual reports and 20-F
Form, among other reports, regulatory
filings with the Argentine Securities and
Exchange Commission and the US Securities
and Exchange Commission, calendar of
corporate events, presentations and other
developments.
- Development and investor education:
information of interest is presented and
educational tools are available for investor
convenience.
On the other hand, Grupo Supervielle
constantly promotes contact with investors.
In order to reflect the intrinsic value of the
Company, the Board of Directors has
explicitly established an active
investor
relations policy. In order to achieve this
objective, we try to provide truthful,
reliable and consistent information. For
such reason, multiple tasks are carried out
in order to generate a fluid communication
with investors. When engaging with their
shareholders, Grupo Supervielle's teams
follow the same principles that have been
defined
(i) easy
for all stakeholders:
to
accessibility;
legitimate concerns; (iii) transparency in the
commitments assumed; and (iv) disclosure
of relevant information.
response
timely
(ii)
The Company’s website has a direct line to
contact the Investors Relations Department
and the members of the team through the
following
IR-
GrupoSupervielle@gruposupervielle.com.a
r.
e-mail:
26. The Board must ensure that there is a procedure for identification and classification of
stakeholders and a channel to communicate with them.
The Board complies with this duty. In 2020
Grupo Supervielle issued the consolidated
2020 Sustainability Report, which includes
data and indicators of the Company and its
subsidiaries and provides for a procedure
identification and classification of
for
stakeholders
the
that
Stakeholders Involvement Plan.
included
in
is
Involvement with a wide
range of
stakeholders enables Grupo Supervielle to
clearly identify who they are and classify
them according to their level of influence,
impact, risk, size, closeness, among other.
The aim is to have a better understanding of
the social and environmental impacts of
commercial activities, including the indirect
from projects and
impacts derived
businesses that are financed. This has an
effect on risk mitigation, crisis anticipation,
and eventually, provides tools to solve them
efficiently.
a
Considering the size of their operations and
diversity of stakeholders, Grupo Supervielle
adopts
involvement
decentralized
approach. This means that different teams
of Grupo Supervielle must interact regularly
with their stakeholders in matters of mutual
interest to explore possible associations and
seek opportunities to create value.
teams
As to involvement with their stakeholders,
Grupo Supervielle
the
principles of easy accessibility, timely
response
concerns,
transparency in the commitments assumed,
and disclosure of relevant information.
legitimate
follow
to
To identify their stakeholders, the relevant
teams use the interaction and business
113
impact criteria, classify their profiles and
design adequate communication channels
for each of them. Said communication
channels must enable reception, analysis,
and timely response to inquiries, and are
additional to the public information that
stakeholders may obtain through the
website www.gruposupervielle.com.
The 2020 Sustainability Report, prepared
pursuant to the GRI (Global Reporting
Initiative)
the
the
stakeholders
Company’s
communication channels for an adequate
service.
included
and
Standards,
27. Prior to the holding of Shareholders’ Meetings, the Board delivers to the shareholders, a
“provisional information package” to allow them – through a formal communication
issue opinions dissenting with the
channel- to make non-binding comments and
recommendations made by the Board. At the time of delivery of the final package, the Board
must expressly refer to the comments received, as deemed necessary.
The Board of Grupo Supervielle makes
recommendations as regards votes and/or
informs shareholders of any proposals of
motions prior
the holding of
Shareholders’ Meetings.
to
by
proposals made
To that end, the Board prepares a
document with vote recommendations and
motion
other
shareholders and issues a document –
prepared by the Information Disclosure
Committee and later approved by the Board
– which is published as a relevant fact in the
Information Highway of the
Financial
Argentine
Exchange
Commission and as a relevant filing in the
US Securities and Exchange Commission
and in the Company’s website.
Securities
and
item of
the principle of symmetric information, and
contains disaggregated and complete
information on each
the
Shareholders’ Meeting agenda.
Although there are yet no plans regarding a
formal communication channel to receive
non-binding comments and issue opinions
dissenting with those of the Board, the
Company has adequate means (website and
contact data) which may be used to channel
any said comments and opinions through
Relations Department.
the
Comments received and the corresponding
answers must be disclosed
to all
shareholders through publication as a
relevant fact in the Financial Information
Highway and as a relevant filing in the US
Securities and Exchange Commission and in
the Company’s website.
Investor
information
to all
This
shareholders at the same time, respecting
is disclosed
28.
According to the company’s by-laws, shareholders may receive information packages for
Shareholders’ Meetings through virtual means and participate in said meetings through
electronic communication means enabling the simultaneous transmission of sound,
images and words, thus ensuring the principle of equal treatment of participants.
The Board complies with this duty.
During the year under consideration, the
Company amended its bylaws to regulate
the holding of remote virtual meetings, in
accordance with the requirements of
applicable regulations. This
implies the
possibility for shareholders to receive
information packages on
line prior to
Shareholders’ Meetings, and also in printed
form and through other physical channels
provided for this purpose.
29.
The Dividend Distribution Policy is in line with the strategy and clearly sets forth the
criteria, frequency and terms for any dividend distribution.
114
The Board complies with this duty. The
Code of Corporate Governance of Grupo
Supervielle has a specific section on the
guidelines for dividend distribution. to the
extent there are available funds to make
any dividend payment pursuant to law,
declaration and payment shall be decided
by the shareholders at the annual general
shareholders’ meeting.
Prior to the Shareholders’ Meeting, the
to
Board makes a
shareholders
dividend
distribution and payment, which will
depend on a number of factors, including,
recommendation
regarding
requirements,
without limitation, operating results, cash
flows, financial condition, capital levels,
legal
and
regulatory requirements and investment
opportunities and acquisitions, in line with
the Company-defined strategy.
contractual
As a general rule, the Board makes
recommendations in favor of an efficient
use of capital,
the Board will
i.e.
recommend reinvestment profits when
investment opportunities,
are
there
whether organic or
inorganic, or will
recommend a dividend distribution when
there is capital surplus.
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115