Grupo Supervielle S A : First Quarter 2024 Grupo Supervielle 1Q24 Earnings Report

GRUPO SUPERVIELLE S.A.

REPORTS 1Q24 CONSOLIDATED RESULTS

Content

First quarter 2024 Highlights	4
Financial highlights & Key ratios	7
Review of consolidated results	11
Profitability & Comprehensive Income	11
Net financial income	12
Cost of risk & Asset quality	20
Net service fee income & Income from insurance activities	23
Non-interestexpenses & Efficiency	25
Results from exposure to changes in the purchasing power of the currency	27
Other comprehensive income, net of tax	28
Income tax	28
Loan portfolio	30
Risk management	31
Funding	33
CER - UVA exposure	36
Foreign currency exposure	36
Liquidity & reserve requirements	37
Capital	38
Results by segment	40
Credit ratings	48
Key Events During the Quarter	48
Appendix I: Investment Securities Classification and Accounting Methodology. ...	51
Appendix II: Assets & Liabilities. Repricing dynamics	53
Appendix III: Definition of Ratios	54
Appendix IV: Banco Supervielle Financial Figures & Key Ratios	55
Appendix V: Regulatory Environment	56
About Grupo Supervielle S.A	65

Grupo Supervielle Reports 1Q24 Results

Delivering improved profitability of AR$46.5 billion in 1Q24 with ROE at 33.8%

Buenos Aires, May 22, 2024 - Grupo Supervielle S.A. (NYSE: SUPV; BYMA: SUPV), ("Supervielle" or the "Company") a universal financial services group headquartered in Argentina with a nationwide presence, today reported results for the three month period ended March 31, 2024.

Starting 1Q20, the Company began reporting results applying Hyperinflation Accounting, in accordance with IFRS rule IAS 29 ("IAS 29") as established by the Central Bank.

Management Commentary

Commenting on first quarter 2024 results, Patricio Supervielle, Grupo Supervielle's Chairman & CEO, noted:"We delivered a robust first quarter, reporting another record high ROAE of nearly 34% in real terms. This was driven by an unusually high Net Interest Margin (NIM) of 62%, sequentially improved efficiencies, and lower loan loss provisions.

While there is still much work to do, the policies implemented over the last five months are resulting in a gradual transition in Argentina. Previously plagued by high inflation levels, deep fiscal deficits, and a limited financial sector, the country is now experiencing declining inflation, a more orderly Central Bank, and a gradual resurgencein loan demand. This shift is expected to contribute to building a more sustainable, robust, and competitive financial system. In this context, we are strategically diversifying our asset portfolio, gradually shifting towards a larger share of private-sector loans and reducing our portfolio of large holdings of high-margin Central Bank Securities and Government Bonds. As this transition unfolds, we anticipate a gradual adjustment from ourexceptionally high NIM levels experienced in recent quarters until loan demand reaches sufficient strength.

Importantly, we regained market share in loans this quarter. Our total loan book expanded by 2.6% sequentiallyin real terms, gaining 40 bps in market share as the macroeconomic and political environment began to normalize and confidence returned. Corporate loans saw a 60 bp share increase, while within retail loans, car loans market share expanded by 40 bps. More recently, Supervielle became the first private bank in the country to launch new 30-yearmortgage loans, which were unavailable except during a short period between 2017 and 2018.

Asset quality metrics posted further sequential improvement, reflecting our focus on middle-market, corporate, and payroll loans in the current economic slowdown. As a result, the NPL ratio reached a historic low of 1.1% inthe quarter and the coverage ratio improved to 264%.

We remain steadfast in our efforts to attract new clients and capture a higher share of wallet among SMEs and Corporates, while addressing customer pain points and improving NPS. During the quarter, we scaled our Virtual Hub service model for companies in the Entrepreneurs & SMEs segment seeking to achieve greater efficiency andenhance the customer experience.

Advancing on the retail front, we continued to expand our digital client base, which accounted for 64% of total clients, up 2 pps sequentially and 7 pps year-on-year. Today, 51% of transactions are completed through our App, compared to just 37% a year ago. We are confident that our Human Banking retail relationship model will continue to further enhance customer satisfaction, increase cross-selling, and strengthen NPS. The adoption of our 24/7 "Inversion Rápida" distinctive feature, unique among Argentine banks to effectively compete with the fintech world continues to see good traction, with customers up 25% sequentially. Our Insurance business remains pivotal within our financial ecosystem, solidifying its position through continuous expansion of our digital offering,exemplified by the launch of new life and home insurance products.

Our online retail brokerage platform, IOL, continues to perform well, gaining additional share and further consolidating its leading position. The new Crypto offering, launched in January in partnership with Ripio, gained good traction among existing IOL customers. While still in the early stages, we are seeing sustained growth incustomers and transactions.

Lastly, we are proud to have recently received Gold recognition in The Country Awards for Financial Innovators in the Americas, presented by Fintech Americas, for our Virtual Hub Video Call service model. Thisaward reflects innovative customer-centricservice with our Human Banking philosophy.

Looking ahead, we firmly believe that lifting FX restrictions and passing necessary reforms through Congress are crucial steps towards resuming sustainable growth. We stand ready to capitalize on a sustained improvement

in the macro environment supported by our strong 25% Tier 1 capital ratio and solid and agile foundation,"

concluded Mr. Supervielle.

3

First quarter 2024 Highlights

PROFITABILITY

Profit (Loss) Before Income

Tax (AR$ Milion)

Attributable Net Income of AR$46.5 billion in 1Q24, compared to a net gain of AR$2.2 billion in 1Q23 and AR$34.1 billion in 4Q23.

61,204

6,554

72,395

The sharp YoY increase in Net Income reflects the successful execution of the Company's strategic plan implemented in 2022 and 2023 to optimize operations, consolidate businesses, grow in profitable products and increase cross-sell.

Attributable Net Income (AR$

Mil.)

46,467

34,061

2,162

1Q23

4Q23

1Q24

ROAE increased to 33.8% in 1Q24 from 2.0% in 1Q23 and 26.9% in 4Q23.

ROAA was 7.4% in 1Q24 compared to 0.3% in 1Q23 and positive 5.3% in 4Q23.

Profit before income tax increased to AR$72.4 billion in 1Q24 compared to a gain of AR$6.6 billion in 1Q23 and AR$61.2 billion in 4Q23.

QoQ performance is explained by: i) a 19.4%, or AR$23.1 billion decrease, in expenses, mainly due to lower personnel expenses as previous quarter reflected higher personnel expense provisions, and higher D&A mainly due to the impairment on the goodwill of Mila to reflect the business fair value, ii) a 2.4%, or AR$7.0 billion, increase in Net Financial Income reflecting high level on AR bonds gains and lower cost of funds following the lifting of floors on interest rate deposits, iii) a 39.7%, or AR$5.5 billion, decrease in Net Loan loss provisions as previous quarter reflected the impact of the Fx depreciation and the update of economic variables in the Company's expected loss models, and iv) a 14.6%, or AR$ 7.4 billion, decline in other expenses net as the prior quarter recorded higher charges related to the year- end valuation of the Bank's real estate assets at market value and a higher provision to execute several strategic initiatives in different business units. These were partially offset by the following performance: i) lower fees which lagged inflation in the quarter, and ii) a 34.6%, or AR$ 27.3 billion, increase in the loss from exposure to inflation given the 52% inflation in the quarter and higher net monetary assets.

4

1Q23 4Q23 1Q24

Revenues (net financial income + net fee income

• turnover tax) amounted to AR$307.5 billion in 1Q24, compared to AR$135.0 billion in 1Q23 and AR$299.8 billion in 4Q23. Higher sequential revenues were mainly explained by a 2.4%, or AR$ 7.0 billion, increase in Net Financial Income and a 21.8%, or AR$5.3 billion, decrease in turnover tax. These were partially offset by: a 14.4%, or AR$ 4.6 billion, decrease in Net Service Fee income (including insurance).

The YoY increase was mainly explained by a 137.2%, or AR$173.0 billion, increase in Net Financial Income, and a 12.1%, or AR$2.6 billion, decrease in turnover tax due to lower interest earned on loans. These were partially offset by: a 9.9%, or AR$ 3.0 billion, decrease in Net Service Fee income (including insurance).

FINANCIAL MARGIN

Net Financial Income reached AR$299.1 billion in 1Q24 increasing 137.2% YoY and 2.4% QoQ. The QoQ performance is explained by: i) higher results from the sale of government securities previously recorded at amortized cost, ii) higher yield on higher volumes of inflation linked government securities capturing the inflation peak in December 2023 and January 2024, and iii) a positive impact from the lifting of floors on interest rate deposits resulting in a 744-bps decline in cost of funds while interest rates on loans increased 326-bps reflecting their longer maturity. These were partially offset by: i) weak credit demand in first months of the quarter although loan portfolio demand started to recover at the quarter-end, and ii) lower

yield on Central Bank repos following the decline in interest rates.

Adjusted Net Financial Income (calculated as Net Financial Income + Result from exposure to inflation) was AR$192.9 billion in 1Q24, increasing 82.5% YoY but declining 9.5% QoQ reflecting negative interest rates on real terms.

Net Interest Margin (NIM) reached 61.9% compared to 21.9% in 1Q23 and 62.2% in 4Q23. 1Q24 NIM remained at an unusually high level resulting from the sale of government securities previously recorded at amortized cost, high AR$ spreads on government securities and loans, and the decline in cost of funds reflecting the lifting of floors on interest rate deposits. 4Q23 NIM had benefitted from asset and liability management in the context of the sharp peso devaluation in December. The YoY performance reflects the increase in net financial income resulting from higher spreads on government securities and loans.

ASSET QUALITY

The total NPL ratio was 1.1% in 1Q24 improving 300 bps and 10 bps from 4.1% in 1Q23 and 1.2% in 4Q23, respectively. The QoQ and YoY performances reflect the shift in loans to middle-market corporates and payroll customers along with significantly lower exposure to consumer loans, better retail customer behavior and the sale of delinquent retail loans, mainly open market.

Loan loss provisions (LLPs) totaled AR$8.0 billion in 1Q24, decreasing 30.2% YoY and 47.9% QoQ. Net loan loss provisions, which is equivalent to loan loss provisions net of recovered charged-offloans and reversed allowances, amounted to AR$8.4 billion in 1Q24 compared to AR$11.0 billion in 1Q23 and AR$13.9 billion in 4Q23. The YoY performance reflects a healthier loan mix with lower share of consumer finance loans, the tightening in underwriting policies and a shift to commercial loans and payroll loans. The QoQ performance also reflects a healthier loan mix, while provisions in 4Q23 had been impacted by: i) the FX depreciation in December 2023 in provisions related to US$ financing, ii) the update of macroeconomic variables in the expected loss model to capture expectations of a worsening macroeconomic outlook, and iii) a top-downanalysis on certain economic activities that could be highly impacted by a worsened macroeconomic environment.

5

The Coverage Ratio increased to 263.7% as of March 31, 2024, from 115.9% as of March 31, 2023, and 262.4% as of December 31, 2023.

NON-INTEREST EXPENSES & EFFICIENCY

Efficiency ratio improved to 34.0% in 1Q24, from 71.8% in 1Q23 and 43.4% in 4Q23. The QoQ performance was explained by a 14.7% decrease in total expenses and a 3.0% increase in Revenues mainly reflecting higher financial margin.

			Personnel Expenses			Administrative
			D&A	43.4%		Efficiency Ratio (%)
	71.8%	17,019	34.0%
	10,426		8,950
				35,808
	30,645		28,639
	56,532	66,492	58,637
	1Q23	4Q23		1Q24

LIQUIDITY

Loans to Deposits Ratio was 43.6% as of March 31, 2024, compared to 44.9% as of March 31, 2023, and 32.2% as of December 31, 2023, reflecting weak credit demand in recent years.

The AR$ loans to AR$ deposits ratio was 46.1% as of March 31, 2024, compared to 45.9% as of March 31, 2023, and 34.8% as of December 31, 2023.

Total Deposits of AR$1,774.8 billion increasing 207.8% YoY and 14.6% QoQ in nominal terms. Total private sector deposits amounted to AR$ 1,683.8 billion and increased 207.1% YoY and 16.3% QoQ in nominal terms compared to industry growth of 170.7% YoY and 16.4% QoQ. In real terms, total deposits decreased 20.6% YoY and 24.4% QoQ while average

deposits decreased 22.8% YoY but remained flat QoQ reflecting assets and liability management in a context of negative real interest rates and a tight monetary policy. Total private sector deposits decreased 20.8%, and 23.3% YoY in real terms. The leverage ratio (Assets to shareholder´s equity) decreased 210 bps to 4.6x from 6.7x as of March 31, 2023, and 140 bps from 6.0x as of December 31, 2023.

AR$ deposits amounted to AR$1,512.9 billion, expanding 192.6% YoY and 15.6% QoQ in nominal terms, compared to AR$ industry deposit increases of 141.7% YoY and 17.3% QoQ. In real terms, AR$ deposits declined 24.6% YoY and 23.8% QoQ while average AR$ deposits decreased 27.3% YoY and 3.8% QoQ reflecting asset & liability management.

The QoQ and YoY performance of AR$ industry deposits in real terms reflect the impact of negative interest rates in real terms together with the use by importers of their peso deposits to pay the Bopreal bonds issued by the Central Bank to address their commercial debt.

The QoQ performance of AR$ deposits in real terms was mainly driven by the following decreases: i) 20.4%, or AR$ 248.8 billion, in Wholesale funding reflecting asset & liability management following the decrease in market interest rates, ii) 32.8%, or AR$68.9 billion, in Checking Accounts following industry trends, iii) 30.2%, or AR$66.3 billion, in Saving accounts following seasonality and industry trend, iv) 14.7%, or AR$ 28.4 billion, in Time Deposits from retail and corporate customers, and v) 41.3%, or AR$58.6 billion, in non-financial public sector reflecting liability management.

Foreign currency deposits (measured in US$) amounted to US$ 305.5 million, increasing 7.3% YoY and 2.9% QoQ while industry FX deposits increased 5.4% YoY and 7.0% QoQ. As of March 31, 2024, FX deposits represented 15% of total deposits.

Total Assets down 17.8% QoQ and 12.9% YoY, to AR$ 2,572.0 billion as of March 31, 2024. Average AR$ Assets decreased 1.0% QoQ.

The QoQ performance mainly reflects a 33.8% decline in Repos & Central Bank Securities on asset & liability management following the industry trend. This was partially offset by QoQ increases of: i) 8.2% in Government securities, and ii) 2.6% in Loans to the private sector, which started to gain traction in March following the sharp decline in market interest rates and the lifting of floors on Deposit interest rates by the Central Bank. This gradual mix-shift in assets towards a larger share of private-sector loans while reducing the Company's portfolio of large holdings of Repos with the Central Bank is expected to continue during the remainder of 2024. Average dynamics showed a different trend in the quarter compared to 4Q23 with average volumes of Repos & Central Bank Securities increasing 25.1% and the average loan portfolio declining 21.2% as loan growth picked-up towards the end of March.

6

The YoY performance reflects weak credit demand in the context of high inflation and high nominal interest rates in the period. YoY, Average AR$ Assets decreased 17.9%.

Loans expanded 198.9% YoY and 55.5% QoQ in nominal terms to AR$774.6 billion. In real terms, gross loans decreased 22.9% YoY but increased 2.6% QoQ gaining 40 bps in market share in March 2024 (taking into account the daily average balance of loans of the financial system). YoY performance was impacted by weak credit demand during last twelve months in a context of YoY inflation at 287.9%. QoQ performance reflects an acceleration in the origination of corporate loans mainly for working capital credit lines and foreign trade lines at quarter-end following the declines in market interest rates and inflation. On March 11, 2024 the Central Bank lifted the floor on time deposit interest rates, reduced the monetary policy interest rate. All passive and active market interest rates declined following this decision. On the retail front, car loans origination increased in the quarter, while other retail credit lines continued to reflect weak credit demand impacted by the decline in consumption and high nominal interest rates during most of the quarter.

CAPITAL

Common Equity Tier 1 Ratio as of March 31, 2024,

was 24.7% increasing 370 bps and 1,000 bps when compared to December 31, 2023, and March 31, 2023, respectively.

On March 21, 2024, the Central Bank ruled, through

Communication "A" 7982, that starting April 2024,

financial institutions must present their monthly reports, reflecting consolidated operations including non-financial holdings and all of its subsidiaries (excluding insurance companies). In accordance with this rule, the Tier 1 ratio would have been 25.6% as of March 31, 2024, compared to the reported 24.7%.

Tier 1 Capital Ratio reflects the Bank´s organic capital creation in 1Q24 together with inflation adjustment of capital which more than offset the expansion in Risk weighted assets.

Financial highlights & Key ratios

Information stated in terms of the measuring unit current at the end of the reporting period, including the corresponding financial figures for previous periods provided for comparative purposes.

Highlights
(In millions of Ps. stated in terms of the measuring unit current at the end of the reporting period)		% Change
INCOME STATEMENT	1Q24	4Q23	3Q23	2Q23	1Q23	QoQ	YoY
Net Interest Income		213,674	209,004	151,210	122,332	94,869	2.2%	125.2%
NIFFI & Exchange Rate Differences	85,383	83,018	25,903	29,475	31,219	2.8%	173.5%
Net Financial Income		299,058	292,021	177,113	151,807	126,089	2.4%	137.2%
Net Service Fee Income (excluding	22,515	26,441	28,784	25,253	24,064	-14.9%	-6.4%
income from insurance activities)
Income from Insurance activities	4,913	5,586	5,106	4,795	6,361	-12.1%	-22.8%
RECPPC			-106,146	-78,859	-46,108	-23,602	-20,361	34.6%	421.3%
Loan Loss Provisions		-7,973	-15,298	-10,110	-11,107	-11,430	-47.9%	-30.2%
Personnel & Administrative Expenses	-87,276	-102,300	-88,158	-93,587	-87,177	-14.7%	0.1%
Profit (Loss) before income tax	72,395	61,204	35,370	28,245	6,554	18.3%
Attributable Net income (Loss)	46,467	34,061	22,041	19,614	2,162	36.4%
Earnings per Share (AR$)	21.4	76.9	49.8	44.3	4.8
Earnings per ADRs (AR$)	107.1	384.7	248.9	221.4	24.1
Average Outstanding Shares (in	442.7	442.7	442.7	442.9	448.1
1
millions)
Other Comprehensive Income (Loss)	-5,982	5,311	-558	379	-327
Comprehensive Income (Loss)	40,485	39,371	21,483	19,994	1,835
BALANCE SHEET		mar24	dec 23	sep 23	jun 23	mar 23	QoQ	YoY
Total Assets			2,571,997	3,128,136	3,002,135	3,237,862	2,952,013	-17.8%	-12.9%
Average Assets	2		2,528,230	2,561,237	3,031,096	2,916,031	3,006,025	-1.3%	-15.9%
Total Loans & Leasing	3	774,599	755,270	891,479	934,392	1,005,043	2.6%	-22.9%
Loans and financing & off balance	888,356	924,300	1,030,996	1,043,892	1,102,621	-3.9%	-19.4%
guarantees
Total Deposits			1,774,840	2,348,514	2,252,246	2,525,393	2,236,450	-24.4%	-20.6%
Attributable Shareholders' Equity	560,224	519,739	480,368	458,885	438,892	7.8%	27.6%
Average Attributable Shareholders'	549,109	506,031	476,838	445,614	438,565	8.5%	25.2%
2
Equity

KEY INDICATORS	1Q24	4Q23	3Q23	2Q23	1Q23
Profitability & Efficiency
ROAE	33.8%	26.9%	18.5%	17.6%	2.0%
ROAA	7.4%	5.3%	2.9%	2.7%	0.3%
Net Interest Margin (NIM)	61.9%	62.2%	29.2%	26.6%	21.9%
Net Fee Income Ratio	8.4%	9.9%	16.1%	16.5%	19.4%
Cost / Assets	15.2%	18.6%	13.0%	14.4%	13.0%
Efficiency Ratio	34.0%	43.4%	51.7%	62.5%	71.8%
Liquidity & Capital
Total Loans to Total Deposits	43.6%	32.2%	39.6%	37.0%	44.9%
AR$ Loans to AR$ Deposits	46.1%	34.8%	41.0%	37.3%	45.9%
US$ Loans to US$ Deposits	29.3%	17.8%	25.8%	33.1%	36.3%
Liquidity Coverage Ratio (LCR)4	109.9%	112.6%	110.6%	118.7%	106.7%
Total Equity / Total Assets	21.8%	16.6%	16.0%	14.2%	14.9%
Total Capital / Risk weighted assets 5	24.7%	16.9%	16.2%	16.2%	15.2%
Tier1 Capital / Risk weighted assets 6	24.7%	21.0%	16.9%	15.7%	14.7%
Risk Weighted Assets / Total Assets	61.0%	51.3%	56.6%	52.7%	60.5%
Asset Quality
NPL Ratio7	1.1%	1.2%	1.7%	2.5%	4.1%
Allowances as a % of Total Loans	2.8%	3.1%	3.1%	3.7%	4.8%
Coverage Ratio	263.7%	262.4%	182.8%	147.9%	115.9%
Cost of Risk	4.1%	6.9%	4.5%	4.3%	4.8%
Net Cost of Risk	3.8%	6.0%	4.1%	3.2%	4.0%

7

MACROECONOMIC RATIOS	1Q24	4Q23	3Q23	2Q23	1Q23
7	51.6%	53.3%	34.8%	23.8%	21.7%
Retail Price Index (QoQ var %)
Retail Price Index (YoY var %)	287.9%	211.4%	138.3%	115.6%	104.3%
UVA (var)	69.6%	37.2%	23.9%	25.0%	17.8%
Pesos/US$ Exchange Rate	857.42	808.48	350.01	256.68	208.99
Badlar Interest Rate (eop)	70.9%	109.6%	113.9%	92.3%	72.4%
Badlar Interest Rate (avg)	101.6%	124.3%	103.5%	86.0%	70.1%
Monetary Policy Rate (eop)	80.0%	100.0%	118.0%	97.0%	78.0%
Monetary Policy Rate (avg)	96.0%	125.8%	108.2%	90.9%	75.5%
OPERATING DATA
Bank- Active Customers (in millions)	1.44	1.54	1.54	1.52	1.56
IOL-Active Customers (in millions)	0.49	0.48	0.36	0.22	0.14
Bank Branches	136	137	144	151	154
Bank Employees	3,197	3,196	3,248	3,292	3,320
Other Subsidiaries Employees	463	467	456	462	472

1. As of March 31, 2024, the Company´s treasury held 14,050,492 Class B Shares. These shares were repurchased by the company under the buyback program launched in 2022. As of the date of this report, the Company holds these shares in the treasury portfolio.
2. Average Assets and average Shareholders' Equity calculated on a daily basis.
3. Loans and Leasing before Allowances.
4. Includes liquidity held at the holding company level.
5. Regulatory capital divided by risk weighted assets. Since January 1, 2020, financial institutions which are controlled by non-financial institutions (this is the case of Supervielle in relation with the Bank) shall comply with the Minimum Capital requirements, among others on a consolidated basis comprising the non-financial holding company and all its subsidiaries (excluding insurance companies and non-financial subsidiaries). On March 21, 2024, the Central Bank ruled, through Communication "A" 7982, that starting April 2024 financial institutions must present their monthly reports reflecting consolidated operations including non-financial holding and all its subsidiaries (excluding insurance companies). In accordance with this rule, the Tier 1 ratio would have been 25.6% as of March 31, 2024, compared to the reported 24.7%. As of March 31, 2024, the Company continued to calculate this ratio adding to the Bank's regulatory capital ratio, the amount of liquidity held at the holding company level.
6. Tier 1 capital divided by risk weighted assets. Applies same disclosure as in footnote 5.
7. Source: INDEC

8

Managerial information. Non-restated figures

1Q24, 4Q23, 3Q23, 2Q23 and 1Q23 managerial information included hereunder is not derived directly from accounting records as it is an estimate of non-restated figures excluding the impact of IAS 29 effective January 1, 2020. This information is only provided for comparative purposes with figures disclosed in previous years before the adoption of rule IAS 29.

Income Statement - Non-restated Figures

Argentine Banking GAAP:

Interest income

Interest expenses

Net interest income

Net income from financial instruments at fair value through profit or loss Exchange rate differences on gold and foreign currency

					% Change
1Q24	4Q23	3Q23	2Q23	1Q23	QoQ	YoY
433,771.2	281,284.5	207,144.5	127,729.5	83,593.6	54.2%	418.9%
-242,046.9	(163,738.6)	(149,825.9)	(90,788.3)	(60,679.1)	47.8%	298.9%
191,724.3	117,545.8	57,318.5	36,941.1	22,914.5	63.1%	736.7%
69,911.6	44,641.7	10,178.2	8,361.6	7,099.5	56.6%	884.7%
1,381.3	2,947.7	47.9	742.8	414.7	-53.1%	233.1%

NIFFI & Exchange Rate Differences	71,292.9	47,589.4	10,226.1	9,104.4	7,514.2	49.8%	848.8%
Net Financial Income	263,017.2	165,135.3	67,544.6	46,045.5	30,428.7	59.3%	764.4%
Fee income	26,190.6	18,939.0	14,299.2	10,341.6	8,331.6	38.3%	214.4%
Fee expenses	(6,050.5)	(4,776.8)	(3,247.4)	(2,757.5)	(2,530.1)	26.7%	139.1%
Income from insurance activities	2,936.2	2,284.4	1,572.8	1,132.6	1,278.6	28.5%	129.6%
Net Service Fee Income	23,076.2	16,446.6	12,624.6	8,716.7	7,080.1	40.3%	225.9%
Other operating income	6,417.4	40,042.5	2,953.3	2,951.7	2,070.8	-84.0%	209.9%
Loan loss provisions	(7,321.6)	(4,008.5)	(3,902.1)	(3,287.4)	(2,742.2)	82.6%	167.0%
Net Operating Income	285,189.2	217,615.8	79,220.5	54,426.5	36,837.3	31.1%	674.2%
Personnel expenses	52,647.9	37,373.8	21,633.7	19,209.3	13,614.2	40.9%	286.7%
Administrative expenses	25,804.9	19,721.5	12,052.5	9,087.5	7,396.7	30.8%	248.9%
Depreciation & Amortization	2,116.2	2,451.2	1,319.8	1,319.6	1,102.3	-13.7%	92.0%
Turnover Tax	16,934.2	13,144.5	7,533.4	5,403.4	5,205.8	28.8%	225.3%
Other expenses	33,355.9	14,798.1	3,606.6	1,475.9	1,968.3	125.4%	1594.7%
Profit before income tax	154,330.1	130,126.6	33,074.5	17,930.7	7,550.2	18.6%	-19.5%
Income tax expense	(7,449.3)	6,859.2	(6,664.6)	(3,221.0)	(3,252.4)	-208.6%	-
Net income	161,779.3	123,267.4	39,739.1	21,151.6	10,802.7	31.2% 1397.6%
Attributable to owners of the parent	161,630.2	123,160.8	39,705.1	21,134.1	10,793.8	31.2%	1397.4%
company
Attributable to non-controlling	149.1	106.6	34.0	17.5	8.9	39.9%	1570.2%
interests
Other comprehensive income, net of tax	(9,126.3)	14,046.2	(170.6)	151.3	(47.2)	na	na
Comprehensive income	152,653.0	137,313.6	39,568.5	21,302.9	10,755.5	11.2% 1319.3%
Attributable to owners of the parent	152,514.0	137,192.6	39,534.7	21,285.3	10,746.6	11.2%	1319.2%
company
Attributable to non-controlling	139.0	121.0	33.8	17.6	8.8	14.9%	1477.5%
interests
ROAE	132.2%	180.6%	87.6%	63.4%	41.0%
ROAA	28.7%	35.7%	13.8%	9.7%	6.0%

1Q24 Earnings

Videoconference Information

Date:Thursday, May 23, 2024

Time:10:00 AM ET (11:00 AM Buenos Aires Time)

Register in advance for this webinar:

https://us06web.zoom.us/webinar/register/WN_hADxmP7VSr6i_dJUgNw4YA

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Overview

During the last few years, Argentina has continued to face significant macroeconomic and regulatory challenges, such as minimum rates on time deposits, caps on interest rates for certain loans, regulated-rate loans, limits on LELIQ holdings, and restrictions on the foreign exchange market. In December 2023, President Milei took office and the new administration focused on achieving a fiscal surplus and introducing significant structural reforms that could contribute to macroeconomic and financial stabilization beyond 2024. With the aim of accumulating reserves and eliminating the financial deficit, the initial measures of the new administration intended to restart the relative prices of the economy, correct the exchange rate and subsidies for public utility rates, and increase tax revenues.

In this regard, the domestic environment during the period under review was marked by the initial measures of the national government under the mandate of Javier Milei, which impacted the foreign exchange, monetary, and fiscal fronts. The foreign exchange front was marked by a sharp devaluation of the exchange rate against the U.S.$, which rose to AR$800 compared to an exchange rate of AR$366.50, and by the new import regime under which payments abroad were deferred, allowing the government to accumulate around US$12 billion in net international reserves. The Central Bank of Argentina recently slightly relaxed the import system by easing import payments for SMEs. With this "shock," the Central Bank reversed the exchange balance and began to have positive net reserves.

On the fiscal front, since taking office, the new government´s focus has been on reducing public spending in real terms, achieving a 35% decrease, mainly through a dilution of expenses associated with social benefits and economic subsidies, while capital expenditures also fell in the quarter. In this way, the government achieved a financial surplus of 0.2% of GDP in the first quarter.

Finally, to stabilize the macroeconomic environment and reduce inflation levels, the government implemented a strict monetary policy, reducing the monetary base by 21% in real terms by absorbing pesos through passive repo transactions and issuing "Bopreal" (Bonos para la Reconstrucción de una Argentina Libre) to reduce exporters' commercial debt, while the National Treasury through primary auctions contributed in this regard despite the impact on the monetary base generated by interest on remunerated liabilities. Likewise, the Central Bank significantly reduced the interest rate on passive repo transactions, which since mid-December became the monetary policy rate. It decreased from 126% to 40% (latest data as of May 14, 2024). Thus, the interest paid by the Central Bank on remunerated debt decreases, and a generalized decrease in all interest rates in the financial system occurred, leaving them below the inflation rate of the period.

Regarding the macroeconomic evolution, after reaching a peak of 25.5% inflation in December 2023 and 20.6% in January 2024, as a result of the previously explained policies, inflation began a downward path, reducing levels to 13.2% in February, 11% in March and 8.8% in April, reducing inflation expectations for the coming months. As a counterpart to these restrictive monetary, exchange, and fiscal policies translating into a disinflationary path, there is a deep contraction in economic activity, which has fallen for the sixth consecutive month since September 2023 and, since the current government took office, contracted by 3.7% (February vs. November, seasonally adjusted series of EMAE). The decline in economic activity, combined with large inventories accumulated by companies in 2023, causes prices not only to not rise but also to see, in some cases, price declines due to the need to rotate stocks.

On the political front, on December 27,2024, the government sent a bill to Congress called "Bases and Starting Points for the Freedom of Argentines." The project contained over 600 articles and included labor, fiscal (although the fiscal chapter was ultimately eliminated), and deregulation measures in various sectors. The project was approved in general in February with 146 affirmative votes, 109 negative votes, 3 absences, and one abstention. However, when the project was voted in particular, i.e., article by article, it was mostly rejected, and the ruling party decided to withdraw the project and start over. In April, a new bill, "Bases," was sent parallel to a bill with fiscal measures. Both bills were approved in general and in particular. They still need to pass through the Senate.

Regarding the relationship with the IMF, with the assumption of the new government and in view of the economic measures taken, the IMF disbursed US$4.6 billion in January 2024. The amount did not correspond to a new line

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