Supervielle Returns to Profit Amid Workforce Reductions
Grupo Supervielle (NYSE:SUPV) reported a net income of AR$12.8 billion for the second quarter, reversing from an AR$18.2 billion loss in the previous quarter. This turnaround was largely driven by significant cost-cutting measures, including layoffs that reduced its workforce by 17%. These reductions are expected to generate annualized personnel savings of AR$42 billion once fully implemented. Adjusted net income reached AR$36.2 billion for the quarter with an adjusted return on average equity (ROAE) of 12.4%, which could climb further to 14.4% if all cost-saving measures were in place from the start. The bank also improved its efficiency ratio and reduced loan loss provisions, while net interest income rose sequentially. Despite these gains, Supervielle still posted an attributable net loss of AR$5.4 billion for the first half compared to a profit last year. Total loans fell 1.4% in Q2 following a larger drop in Q1, and delinquency rates increased slightly due to higher interest rate impacts on small business borrowers.
Topics: banking cost-cutting earnings report layoffs profit recovery