GRUPO SUPERVIELLE S.

SUPV
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Grupo Supervielle S A : ´s Financial Statements as of June 30, 2020

10/13/2020 | 12:30pm

Consolidated Condensed Interim Financial Statements

For the six-month period ended on

June 30, 2020, presented on comparative basis in homogeneous currency

Contents

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION............................................

2

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME .................................

4

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY..........

7

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS ............................................................

9

1. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES OF THE UNAUDITED

CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS ..................................................................

11

2.

SEGMENT REPORTING .......................................................................................................................................

27

3.

FAIR VALUES .........................................................................................................................................................

30

4.

RELATED PARTY TRANSACTIONS..................................................................................................................

31

5.

COMPOSITION OF THE MAIN ITEMS OF THE CONSOLIDATED COMPREHENSIVE INCOME.......

32

6.

DIVIDENDS..............................................................................................................................................................

34

7.

INSURANCE ............................................................................................................................................................

34

8.

MUTUAL FUNDS ....................................................................................................................................................

34

9.

ADDITIONAL INFORMATION REQUIRED BY THE BCRA .........................................................................

35

10.

CONTRACT AS A FINANCIAL AGENT BY THE PROVINCE OF SAN LUIS .............................................

38

11.

FINANCIAL RISK FACTORS ...............................................................................................................................

38

12.

INTERNATIONAL FINANCING PROGRAMS ..................................................................................................

38

13.

IMPACT OF COVID-19 ON SOCIETY OPERATIONS .....................................................................................

39

SCHEDULE A - DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS, OTHER DEBT

SECURITIES, EQUITY INSTRUMENTS...........................................................................................................................

41

SCHEDULE B - CLASSIFICATION OF LOANS AND OTHER FINANCING CREDIT ACCORDING TO STATUS

AND COLLATERAL RECEIVED .......................................................................................................................................

44

SCHEDULE C - CONCENTRATION OF LOANS AND OTHER FINANCING ............................................................

46

SCHEDULE D - BREAKDOWN OF TOTAL LOANS AND OTHER FINANCING ....................................................

47

SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT..............................................................................................

48

SCHEDULE G - INTANGIBLE ASSETS ............................................................................................................................

49

SCHEDULE H - CONCENTRATION OF DEPOSITS ......................................................................................................

50

SCHEDULE I - BREAKDOWN OF FINANCIAL LIABILITIES FROM REMAINING TERMS ...............................

51

SCHEDULE L - ASSETS AND LIABILITIES IN FOREIGN CURRENCY....................................................................

52

SCHEDULE R - LOAN LOSS RISK PROVISIONS ..........................................................................................................

53

SEPARATE CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION.....................................................

55

SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME ..........................................

56

EARNING PER SHARE ........................................................................................................................................................

57

SEPARTE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME .............................................

58

SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY...................

59

SEPARATE CONDENSED INTERIM STATEMENT OF CASH FLOW .......................................................................

60

1. BASIS OF PREPARATION OF THE UNAUDITED SEPARATE CONDENSED INTERIM FINANCIAL

STATEMENTS .......................................................................................................................................................................

61

2.

FAIR VALUES .........................................................................................................................................................

64

3.

INVESTMENT IN SUBSIDIARIES AND ASSOCIATES ...................................................................................

65

4. COMPOSITION OF THE MAIN ITEMS OF THE SEPARATE STATEMENT OF COMPREHENSIVE

INCOME..................................................................................................................................................................................

66

5.

RESTRICTED ASSETS ..........................................................................................................................................

67

6.

COMPANIES UNDER SECT. 33 OF CORPORATE LAW AND OTHER RELATED COMPANIES ..........

67

7.

CAPITAL STOCK ...................................................................................................................................................

70

8.

CASH FLOW STATEMENT AND EQUIVALENTS...........................................................................................

71

9.

SUBSEQUENT EVENTS ........................................................................................................................................

71

SCHEDULE A - OTHER DEBT SECURITIES ..................................................................................................................

71

SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT..............................................................................................

72

SCHEDULE G - INTANGIBLE ASSETS ............................................................................................................................

73

SCHEDULE L - ASSETS AND LIABILITIES IN FOREIGN CURRENCY ...................................................................

74

Additional Information pursuant to Art, 12, Chapter III, Title IV of standards issued by the National Securities

Commission .............................................................................................................................................................................

76

INFORMATIVE REVIEW AS OF JUNE 30, 2020 ...................................................................................................................

78

Consolidated Condensed Interim Financial Statements

For the six-month period ended on

June 30 2020, presented on comparative basis in homogeneous currency

Name: Financial year:

Legal Address: Core Business:

1

GRUPO SUPERVIELLE S.A.

Grupo Supervielle S.A.

N° 42 started on January 1, 2020

Bartolomé Mitre 434, piso 5 Ciudad Autónoma de Buenos Aires

Carry out, on its own account or third parties' or related to third parties, in the country or abroad, financing activities through cash or instrument contributions to already-existing or to-be-set-up corporations, whether controlling such corporations or not, as well as the purchase and sale of securities, shares, debentures and any kind of property values, granting of fines and/or guarantees, set up or transfer of loans as guarantee, including real, or without it not including operations set forth by the Financial Entities Law and any other requiring public bidding.

Registration Number at the IGP:

Date of Registration at IGP:

Amendment of by-laws (last):

Expiration date of the Company's By-Laws: Corporations Article 33 Companies general Law

212,617

October 15, 1980

April 24, 2018 (Registration in progress)

October 15, 2079

Note 6 to Separate Condensed Interim Financial Statements

Composition of Capital Stock as of June 30, 2020

Shares

Capital Stock

Votes per

Subscribed

Integrated

Quantity

Class

N.V. $

in thousands

in thousands

share

of $

of $

61,738,188

A: Non endorsable, common shares

1

5

61,738

61,738

of a nominal value

394,984,134

B: Non endorsable, common shares

1

1

394,984

394,984

of a nominal value

456,722,322

456,722

456,722

2

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As of June 30, 2020 and December 31, 2019

(Expressed in thousands of pesos in homogeneous currency)

ASSETS

Notes and

06/30/2020

12/31/2019

Schedules

Cash and due from banks

1.8 and 3

31,705,003

29,992,168

Cash

9,055,417

9,940,681

Financial institutions and correspondents

22,621,896

20,017,511

Argentine Central Bank

18,542,448

18,092,397

Other local and foreign financial institutions

4,079,448

1,925,114

Others

27,690

33,976

Debt Securities at fair value through profit or loss

1.8, 3 and A

3,607,931

645,779

Derivatives

3

66,000

292,602

Repo transactions

3

4,633,359

-

Other financial assets

1.8 and 3

3,052,587

2,381,901

Loans and other financing

3 and B

95,711,142

100,984,231

To the non-financial public sector

200,543

32,797

To the financial sector

298,196

73,293

To the Non-Financial Private Sector and Foreign residents

95,212,403

100,878,141

Other debt securities

3 and A

64,450,082

12,122,179

Financial assets in guarantee

3

4,751,970

6,058,734

Current income tax assets

-

116,385

Investments in equity instruments

3 and A

44,003

16,561

Property, plant and equipment

F

5,261,799

4,546,090

Investment properties

F

3,984,891

4,605,912

Intangible assets

G

4,946,198

4,966,885

Deferred income tax assets

2,161,897

1,524,928

Other non-financial assets

2,134,223

1,470,299

Inventories

39,562

50,498

TOTAL ASSETS

226,550,647

169,775,152

The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements .

3

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As of June 30, 2020 and December 31, 2019

(Expressed in thousands of pesos in homogeneous currency)

Notes and

06/30/2020

12/31/2019

Schedules

LIABILITIES

Deposits

3 and H

158,604,239

101,107,381

Non-financial public sector

5,131,751

6,213,758

Financial sector

18,656

31,917

Non-financial private sector and foreign residents

153,453,832

94,861,706

Liabilities at fair value through profit or loss

3

113,041

215,321

Repo transactions

3

644,149

363,291

Other financial liabilities

3

10,538,160

10,355,847

Financing received from the Argentine Central Bank and

3

7,996,501

10,243,392

other financial institutions

Negotiable Obligations Issued

3 and 9.4

5,882,718

6,913,832

Current income tax liabilities

682,130

-

Subordinated negotiable obligations

3 and 9.4

2,489,706

2,408,052

Provisions

728,977

769,048

Deferred income tax liabilities

308,970

575,113

Other non-financial liabilities

9,735,089

9,324,778

TOTAL LIABILITIES

197,723,680

142,276,055

SHAREHOLDERS' EQUITY

Capital stock

456,722

456,722

Paid in capital

27,764,641

27,764,641

Capital Adjustments

2,401,296

2,401,296

Reserves

15,869,923

11,882,824

Retained earnings

(19,547,052)

(11,794,339)

Other comprehensive income

358,280

98,162

Net income for the period/year

1,499,975

(3,332,089)

Shareholders' Equity attributable to owners of the parent

28,803,785

27,477,217

company

Shareholders' Equity attributable to non-controlling interests

23,182

21,880

TOTAL SHAREHOLDERS' EQUITY

28,826,967

27,499,097

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

226,550,647

169,775,152

The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements .

4

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the six and three-month period ended on June 30, 2020 and 2019 (Expressed in thousands of pesos in homogeneous currency)

Notes

Six-month period ended on

Three-month period ended

on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

Interest income

5.1

26,528,693

25,466,792

12,765,196

12,537,079

Interest expenses

5.2

(11,018,334)

(21,451,228)

(4,662,757)

(10,517,428)

Net interest income

15,510,359

4,015,564

8,102,439

2,019,651

Service fee income

5.5

4,823,524

5,004,095

2,287,176

2,469,272

Service fee expenses

5.6

(1,366,850)

(1,156,067)

(661,)

(622,695)

Income from insurance activities

7

729,752

670,826

389,020

332,105

Net Service Fee Income

4,186,426

4,518,854

2,014,749

2,178,682

Subtotal

19,696,785

8,534,418

10,117,188

4,198,333

Net income from financial instruments (NIFFI) at fair

5.3

975,142

14,598,027

653,918

7,212,969

value through profit or loss

Result from assets withdrawals rated at amortized cost

5.4

(2,178,233)

-

(2,190,492)

-

Exchange rate difference on gold and foreign currency

398,093

(115,412)

299,177

383,359

Subtotal

(804,998)

14,482,615

(1,237,397)

7,596,328

Other operating income

5.7

1,733,689

1,598,243

870,546

729,832

Result from exposure to changes in the purchasing

776,725

(3,358,916)

1,692,795

(1,573,021)

power of the currency

Loan loss provisions

(3,931,578)

(4,826,839)

(2,266,046)

(1,774,569)

Net operating income

17,470,623

16,429,521

9,177,086

9,176,903

Personnel expenses

5.8

7,479,850

7,992,753

3,726,473

4,211,856

Administration expenses

5.9

4,199,058

4,241,168

2,282,772

2,172,471

Depreciations and impairment of non-financial assets

5.10

969,032

889,019

492,835

455,683

Other operating expenses

5.11

2,798,986

3,346,522

1,491,140

1,711,124

Operating income

2,023,697

(39,941)

1,183,866

625,769

Income before taxes from continuing operations

2,023,697

(39,941)

1,183,866

625,769

Income tax

522,687

532,683

161,003

(229,295)

Net income for the period

1,501,010

(572,624)

1,022,863

855,064

Net income for the period attributable to owners of the

1,499,975

(571,952)

1,022,232

854,279

parent company

Net income for the period attributable to non-

1,035

(672)

631

785

controlling interests

The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements..

5

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

EARNING PER SHARE

For the six and three-month period ended on June, 30 2020 and 2019 (Expressed in thousands of pesos in homogeneous currency)

Six-month period

Three-month period

Item

ended on

ended on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

NUMERATOR

Net income for the period attributable to owners of the

1,499,975

(571,952)

1,022,232

854,279

parent company

PLUS: Diluting events inherent to potential ordinary shares

-

-

-

-

Net income attributable to owners of the parent company

1,499,975

(571,952)

1,022,232

854,279

adjusted by dilution

DENOMINATOR

Weighted average of ordinary shares

456,722

456,722

456,722

456,722

PLUS: Weighted average of number of ordinary shares

-

-

-

-

issued with dilution effect.

Weighted average of number of ordinary shares issued of the

456,722

456,722

456,722

456,722

period adjusted by dilution effect

Basic Income per share

3.28

(1.25)

2.24

1.87

Diluted Income per share

3.28

(1.25)

2.24

1.87

The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements

6

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the six and three-month period ended on June, 30 2020 and 2019 (Expressed in thousands of pesos in homogeneous currency)

Six-month period ended

Three-month period

on

ended on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

Net income for the period

1,501,010

(572,624)

1,022,863

855,064

Components of Other Comprehensive Income not to be

reclassified to profit or loss

Income for the period from equity instrument at fair value

(1,038)

-

(316)

-

through other comprehensive income

Income tax

311

-

94

-

Net income from equity instrument at fair value

(727)

-

(222)

-

through changes in other comprehensive income

Total Other Comprehensive Income not to be

(727)

-

(222)

-

reclassified to profit or loss

Components of Other Comprehensive Loss to be

reclassified to profit or loss

Loss for the period from financial instrument at fair value

373,047

(3,451)

441,339

(1,109)

through other comprehensive income

Income tax

(111,935)

1,035

(129,900)

333

Net income from financial instrument at fair value

261,112

(2,416)

311,439

(776)

through changes in other comprehensive income

Total Other Comprehensive Loss to be reclassified to

261,112

(2,416)

311,439

(776)

profit or loss

Total Other Comprehensive Income

260,385

(2,416)

311,217

(776)

Other comprehensive income attributable to owners of the

260,118

(2,413)

310,898

(775)

parent company

Other comprehensive income attributable to non-

267

(3)

319

(1)

controlling interests

Total Comprehensive Income

1,761,395

(575,040)

1,334,080

854,288

Total comprehensive income attributable to owners of the

1,760,093

(574,365)

1,333,130

853,504

parent company

Total comprehensive income attributable to non-

1,302

(675)

950

784

controlling interests

The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements..

7

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY

For the six-month period ended on June, 30 2020 and 2019 (Expressed in thousands of pesos in homogeneous currency)

Other comprehensive income

Earnings or

Total

Total

Shareholders´ equity

Total

Capital

Capital

Paid in

Legal

Other

Retained

los accrued by

Shareholders´ equity

Items

attributable to non-

Shareholde

stock

adjustments

capital

reserve

reserves

earnings

Revaluation

financial

attributable to

controlling interest

rs´equity

of PPE

institutions at

parent company

FV through

profit and loss

Re-expressed Balance at December 31, 2019

456,722

2,401,296

27,764,641

159,620

11,723,204

(15,126,428)

92,426

5,736

27,477,217

21,880

27,499,097

Distribution of retained earnings by the

shareholders' meeting on April 28, 2020:

Constitution of reserves

-

-

-

-

4,420,624

(4,420,624)

-

-

-

-

-

Dividend distribution

-

-

-

-

(433,525)

-

-

-

(433,525)

-

(433,525)

Net Income for the period

-

-

-

-

-

1,499,975

-

-

1,499,975

1,035

1,501,010

Other comprehensive income for the period

-

-

-

-

-

-

-

260,118

260,118

267

260,385

Balance at June 30, 2020

456,722

2,401,296

27,764,641

159,620

15,710,303

(18,047,077)

92,426

265,854

28,803,785

23,182

28,826,967

The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.

8

GRUPO SUPERVIELLE S.A.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY

For the six-month period ended on June, 30 2020 and 2019 (Expressed in thousands of pesos in homogeneous currency)

Other comprehensive income

Total

Earnings or

Total

Capital

Shareholders´ equity

Total

Capital

Legal

Other

Retained

los accrued by

Shareholders´ equity

Items

adjustmen

Paid in capital

attributable to non-

Shareholde

stock

reserve

reserves

earnings

Revaluation

financial

attributable to

ts

controlling interest

rs´equity

of PPE

institutions at

parent company

FV through

profit and loss

Re-expressed Balance at December 31, 2018

456,722

2,401,296

27,764,090

159,619

9,358,992

(8,290,061)

-

-

31,850,658

26,624

31,877,282

IFRS 9 Impact Adjustments

-

-

-

-

-

(610,593)

-

-

(610,593)

(468)

(611,061)

Balance at December 31, 2018

456,722

2,401,296

27,764,090

159,619

9,358,992

(8,900,654)

-

-

31,240,065

26,156

31,266,221

Other movements

-

-

551

-

-

-

-

-

551

96

647

Distribution of retained earnings by the

shareholders' meeting on April 26, 2019:

Constitution of reserves

-

-

-

-

2,044,660

(2,044,660)

-

-

-

-

-

Dividend distribution

-

-

-

-

(444,317)

-

-

(444,317)

-

(444,317)

Net Income for the period

-

-

-

-

-

(571,952)

-

-

(571,952)

(672)

(572,624)

Other comprehensive income for the period

-

-

-

-

-

-

-

(2,413)

(2,413)

(3)

(2,416)

Balance at June 30, 2019

456,722

2,401,296

27,764,641

159,619

11,403,652

(11,961,583)

-

(2,413)

30,221,934

25,577

30,247,511

The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements..

9

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

For the six-month period ended on June, 30 2020 and 2019 (Expressed in thousands of pesos in homogeneous currency)

06/30/2020

06/30/2019

CASH FLOW FROM OPERATING ACTIVITIES

Net income for the period before Income Tax

2,023,697

(39,941)

Adjustments to obtain flows from operating activities:

Depreciation and impairment of non-financial assets

(969,032)

889,019

Loan loss provisions

3,931,578

4,826,839

Other adjustments

- Exchange rate difference on gold and foreign currency

(398,093)

115,412

-

Interests from loans and other financing

(26,528,693)

(25,466,792)

-

Interests from deposits and financing

11,018,334

21,451,228

- Net income from financial instruments at fair value through profit or loss

(975,142)

(14,598,027)

- Result from assets withdrawals rated at amortized cost

2,178,233

-

- Result from exposure to changes in the purchasing power of the currency

(776,725)

3,358,916

- Interest on liabilities for financial leases

82,350

130,

-

Allowances reversed

(277,082)

(268,773)

(Increases) / decreases from operating assets:

Debt securities at fair value through profit or loss

(2,276,053)

17,133,369

Derivatives

226,602

(110,150)

Repo transactions

(4,633,359)

(50,912)

Loans and other financing

To the non-financial public sector

(167,746)

12,391

To the other financial entities

(224,903)

(238,108)

To the non-financial sector and foreign residents

27,625,817

43,926,425

Other debt securities

(52,327,903)

3,009,571

Financial assets in guarantee

1,306,764

(2,411,249)

Investments in equity instruments

(27,442)

5,158

Other assets

1,575,277

(3,068,339)

Increases / (decreases) from operating liabilities:

Deposits

Non-financial public sector

(1,082,007)

(5,045,707)

Financial sector

(13,261)

(6,173)

Private non-financial sector and foreign residents

47,747,160

(21,440,271)

Liabilities at fair value through profit or loss

(102,280)

2,064,561

Derivatives

-

(164,647)

Repo operations

280,858

616,435

Other liabilities

666,771

2,589,502

Income Tax paid

(739,219)

(488,568)

Total operating activities (A)

7,144,501

26,731,616

CASH FLOW FROM INVESTING ACTIVITIES

Payments:

Purchase of PPE, intangible assets and other assets

(529,445)

(598,991)

Purchase of investments in subsidiaries

-

(229,479)

The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.

10

GRUPO SUPERVIELLE S.A.

CONSOLIDATED STATEMENT OF CASH FLOWS For the six-monthperiod ended on June, 31 2020 and 2019 (Expressed in thousands of pesos in homogeneous currency)

06/30/2020

06/30/2019

CASH FLOW FROM INVESTING ACTIVITIES

Collections:

Purchase of PPE, intangible assets and other assets

22,576

93,848

Total investing activities (B)

(506,869)

(734,622)

CASH FLOWS FROM FINANCING ACTIVITIES

Payments:

Changes in the ownership of subsidiaries that do not result in loss of control

-

647

Interest on finance lease liabilities

(705,692)

(355,890)

Financing received from Argentine Financial Institutions

(22,013,806)

(14,841,328)

Unsubordinated negotiable obligations

(3,526,730)

(3,047,005)

Subordinated negotiable obligations

(45,029)

(200,262)

Dividends paid

(433,525)

(444,317)

Collections:

Financing received from Argentine Financial Institutions

19,766,915

7,464,280

Unsubordinated negotiable obligations

2,365,871

3,380,183

Subordinated negotiable obligations

83,060

-

Total Financing activities (C)

(4,508,936)

(8,043,692)

EFFECT OF CHANGES IN THE EXCHANGE RATE (D)

6,229,029

27,453,628

NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D)

8,357,725

45,406,930

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR

31,797,894

82,088,435

(NOTE 1.8)

Result from exposure to changes in the purchasing power of the currency of cash

(4,739,374)

(30,272,149)

and equivalents

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (NOTE 1.8)

35,416,245

97,223,216

The accompanying notes and schedules are an integral part of the Consolidated Condensed Interim Financial Statements.

  1. In the items "Loans and other financing - non-financialsector and foreign residents"and "Other Assets", "Purchase of PPE,intangible asstes and other assets" and "Other liabilities" and "Purchase of PPE,intangible asstes and other assets" and "Other assets" 914,118, 509,124 and 621,021 corresponding to non-monetary transactions were eliminated.

11

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

1. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES OF THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Grupo Supervielle S.A. (hereinafter, "the Group"), is a company whose main activity is investment in other companies, Its main income comes from the distribution of dividends from these companies and the obtaining of income from other financial assets.

The consolidated financial statements of Grupo Supervielle S.A. they have been consolidated, line by line with the financial statements of Banco Supervielle S.A., Cordial Compañía Financiera S.A., Sofital S.A. F. e I.I., Tarjeta Automática S.A., Supervielle Asset Management S.A., Espacio Cordial Servicios S.A., Supervielle Seguros S.A., InvertirOnline S.A.U., InvertirOnline,Com Argentina S.A.U., Micro Lending S.A.U., Supervielle Productores Asesores de Seguros S.A., Bolsillo Digital S.A.U. and Futuros del Sur S.A.

The main investment of the Company is its shareholding in Banco Supervielle S.A., a financial entity included in Law No. 21.526 of Financial Institutions and subject to BCRA regulations, for which the valuation and exposure guidelines used have been adopted by said Entity (see Note 1.1) in accordance with that established in Title IV, Chapter I, Section I, Article 2 of the 2013 Orderly Text of the National Securities Commission (CNV).

These consolidated financial statements have been approved by the Board of Directors of the Company at its meeting held on August 20, 2020.

1.1. Preparation basis

These condensed interim financial statements have been prepared pursuant to: (i) provisions set by Intenational Accounting Standards N° 34, "Interim Financial Information" (IAS 34) and (ii) the accouting information framework set by the Argentine Central Bank which is based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and interpretations issued by the International Financial Reporting Standards Interpretation Committee with the following exceptions:

  1. Temporary exception of IFRS 9 "Financial Instruments" application over debt instruments of the non- financial public sector,
  2. Temporary exception of the application of Section 5.5 (Value Impairment) for Group B entities, a category that includes Cordial Compañia Financiera S.A.. Therefore, provisions of the aforementioned entity are held under minimum provisions standards set by the Argentine Central Bank.

Pursuant to IAS 34, interim financial information shall include an explanation of events and transactions that have taken place as from the end of the last annual period being reported and are relevant for the understanding of changes in the financial situation, financial performance and cash flows of the Group with the purpose of relying on updated information as per the last financial statements of the fiscal year ended on December 31, 2019 ( hereinafter, "annual financial statements"). Given the aforementioned, these condensed interim financial statements do not include all the information to be required by complete financial statements prepared pursuant to International Financial Reporting Standards; hence, in virtue of a suitable understanding of the information included therein, such statements must be read jointly with annual financial statements as of December 31, 2019.

The Gruop´s Board has concluded that these interim condensed financial statements reasonably express the financial position, financial performance and cash flows.

It is worth to be mentioned that interim condensed financial statements have been prepared by applying accounting policies and measurement criteria consistent with those applied by the Group for the preparation of annual financial statements, except for what has been set forth in Note 1.1.4.

The preparation of financial statements requires that the Group carries out calculations and evaluations that affect the amount of incomes and expenses recorded in the period. In this sense, calculations are aimed at the estimation of, for example, credit risk provisions, useful life of property, plant and equipment, impairments and amortizations, recoverable value of assets, income tax charges and the reasonable value of certain financial instruments. Future real results may defer from calculations and evaluations as of the date of these separate financial statements preparation.

As of these financial statements issuance date, such statements are pending of transcription to Inventory and Balance Sheet Book.

12

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

1.1.1 Going concern

As of the date of these consolidated condensed interim financial statements there are no uncertainties with respect to events or conditions that may raise doubts regarding the possibility that the Group continues to operate normally as a going concern.

1.1.2 Measuring unit

Figures included in these condensed interim financial statements are expressed in thousands of Argentine pesos, unless otherwise stated.

The Group´s interim condensed financial statements recognice changes in the currency purchasing power until August 31, 1995. As from such date, in virtue of existing economic stability conditions and pursuant to Communication "A" 2365 issued by the Argentine Central Bank, accounting measurements were not re-expressed until December 31, 2001. In virtue of Communication "A" 3702 issued by the Argentine Central Bank, the application of the method was resumed and became effective on January 1, 2002. Previous accouting measurements were considered to be expressed in the currency as of December 31, 2001.

Pursuant to Communication "A" 3921 issued by the Argentine Central Bank, in compliance with Decree 664/03 issued by the National Executive Power, the application of the re-expression of financial statements in homogeneous currency was interrupted as from March 1, 2003. Therefore, the Group applied said re-expression until February 28, 2003.

In turn, Law N° 27,468 (B.O. 04/12/2018) amended article 10° of Law N° 23,928 and its amendments, thus establishing that the abolition of all legal and regulating standards that set and authorize price indexing, monetary updating, cost changes or any other manner of re-increasing debts, taxes, prices or fees for goods, works or services does not include financial statements, regarding which the application of article 62 of the General Corporations Law N° 19,550 (T.O 1984) and its amendments shall prevail. Likewise, the aforementioned legal body set de abolition of Decree N° 1269/2002 dated on July 16, 2002 and its amendments and instructed the National Executive Power, through its controlling agencies, to set the date as from which said regulations became into effect in relation with financial statements to be submitted. Therefore, on February 22, 2019, the Argentine Central Bank issued Communication "A" 6651 which established that financial statements shall be prepared in a homogeneous currency as from January 1, 2020. Therefore, these condensed interim financial statements have been re-expressed as of June 30, 2020.

1.1.3 Comparative information

The information included in these condensed interim financial statements and in the aforementioned notes as of December 31, 2019 and June 30, 2019 is presented, exclusively with comparative purposes regarding the information as of June 30, 2020.

It is worth to be mentioned that, Communication "A" 6778, issued by the Argentine Central Bank, required the retroactive application of the impairment model set forth in section 5.5 of IFRS 9 with temporary withdrawal of non- financial public sector´s debt instruments and the re-expression of financial statements pursuant to IAS 29. In virtue of the aforementioned, the Group has applied the following:

  1. Retroactive re-expression of figures included in the Financial Situation as of December 31, 2019 for the purpose of submitting such figures as if the new accounting policies had been in force since January 1, 2019, and
  2. Retroactive re-expression of figures included in the Income Statement, Other Comprehensive Income and
    Changes in the Shareholders' Equity Statement as of March 31, 2019 for the purpose of submitting such figures as if the new accounting policies had been in force since January 1, 2019.

1.1.4 Changes in accounting policies and new accounting standards

With the approval of new IFRS, modifications or derogations of the standards in force, and once such changes are adopted through Adoption Bulletins issued by Federación Argentina de Consejos Profesionales en Ciencias Económicas (FACPCE), the Argentine Central Bank will determine the approval of such standards for financial entities. In general terms, no anticipated IFRS application shall be allowed unless upon adoption such anticipated measure is specified.

The following are changes that were made effective over the course of the quarter ended on June 30, 2020:

13

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

  1. Impairment of financial assets

Pursuant to Communication "A" 6430 and 6847 Financial Entities shall start to apply provisions on Financial Assets Impairment included in paragraph 5.5 of IFRS 9 as from fiscal years starting on 1 January, 2020, except for Non-financial Public Sector´s debt securities, which shall be temporarily excluded from the scope of said provisions. Likewise, Communication "A" 6990 issued by the Argentine Central Bank set the postponement of the application of the section targeted to "B" group Companies until January 1, 2021,a category that includes Cordial Compañía Financiera S.A.; therefore, provisions of said Entity are held under the minimum provisions regulations set by the Argentine Central Bank.

Upon the application of impairment model included in section 5.5 of IFRS 9, a decrease of about 452,9 million and 869,5 million would have been recorded in the shareholders ´equity as of June 30, 2020 and December 31, 2019 respectively.

June 30, 2020

December 31, 2019

Provisions recorded in

8,033,936

6,660,618

financial statements

Provisions pursuant to section

8,680,878

7,902,704

5.5 of IFRS 9

Difference (*)

646,942

1,242,086

(*) These balances do not include the effect of income tax

IFRS 9 foresees an expected credit los model, by means of which financial assets are classified in three impairment stages, based on changes in credit quality as from its initial recognition and show how a Company measures impairment loss and applies the effective interest method. Note 1.2 offers greater detail on how expected credit loss is measured.

Pursuant to Communication "A" 6778 issued by the Argentine Central Bank, Financial Entities shall apply the following in virtue of the effects of the application of section 5.5 of IFRS 9:

  1. Utilized internal models that shall meet IFRS 9 requirements; thus, applying such models to all assets included in such regulation with temporary exception abovementioned, and
  2. Apply the Regulation retroactively, thus setting the transition date on January 1, 2019.

The following chart includes the reconciliation between uncollectibility risk provisions as of 12-31-2019 pursuant to the criteria set by the Amended Text on "Debtors Classification" and "Minimum Uncollectibility Risk Provisions" set by the Argentine Central Bank and the new uncollectibility risk provisions pursuant the expected credit loss model set by IFRS 9 with temporary exceptions above mentioned in the first paragraph:

Credit risk

Credit risk

provision

provision

pursuant to

pursuant to

minimum-

Re-

Category of financial instrument

Reclassifications

IFRS 9 (as per

provisions-related

measurements

scope of

Standards set by

Communication

the Argentine

"A" 6847)

Central Bank

Loans and other financing

-

-

-

-

Other financial assets

72,200

-

208,807

281,007

Loans and other financing

-

-

-

-

Other Financial Entities

13,722

-

-

13,722

NFPS and Res. Abroad

-

-

-

-

Advances

730,851

-

945,028

1,675,879

Documents

862,361

-

(448,968)

413,393

Mortgage loans

484,249

-

39,753

524,002

Pledge loans

49,136

13,763

47,734

110,633

Personal loans

1,145,065

11,679

(218,035)

938,709

Credit Cards

720,261

-

(105,563)

614,698

Financial Lease

86,597

-

71,213

157,810

Others

2,466,195

-

(539,469)

1,926,726

Debt securities

4,122

-

(83)

4,039

Contingent commitments

417

-

(417)

-

TOTAL

6,635,176

25,442

-

6,660,618

  • Cordial Compañía Financiera S.A.´s balances of provisions are held under minimum provisions Standards pursuant to
    Communication "A" 6990 issued by the Argentine Central Bank.

14

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Note 1.2 includes further information on the definition of credit risk provision pursuant to the expected credit loss model set by IFRS 9 with scope set by the Argentine Central Bank.

  1. Re-expressionby inflation of financial statements

Pursuant to IAS 29 "Financial Information in hyperinflationary economies", financial statements of an entity, whose functional currency accounts for that currency of a hyperinflationary economy shall be expressed in terms of a current measurement unit as of the reporting fiscal year closing date regardless of whether such statements are based on the historical cost method or a current cost method. To such ends, in general terms, such entity shall calculate the inflation recorded as from the acquisition date or revaluation date, when applicable, in non-monetary items. Such requirements also include the comparative information of financial statements.

With the purpose of stating whether an economy is classified as Hyperinflationary in accordance with IAS 29, the provision sets forth a series of factors to be considered, which includes an accrued inflation rate in three years close to or higher than the 100%. That is the reason why, pursuant to IAS 29, the Argentine economy must be considered as a high inflation economy as from July 1, 2018.

In short, pursuant to IFRS 29 re-expression mechanism, monetary assets and liabilities shall not be re-expressed since such assets and liabilities are expressed in a measurement unit in force as of the reported period closing. Assets and liabilities subject to adjustments tied to specific agreements, shall be adjusted pursuant to such agreements. Non- monetary items measured at current values at the end of the reported period, such as the realization net value or others, shall be re-expressed. The remaining non-monetary assets and liabilities shall be re-expressed in accordance with a general price index. The loss or earning of a net monetary position shall be included in the net income of the reported period in a separate item. It is worth to be mentioned that earnings or losses over the monetary position of instruments at fair value through profit and loss in OCI is included in Other Comprehensive Income of the period/fiscal year. Upon the sale of such instruments its result is reclassified in the line "Results from sale or withdrawal of financial instruments rated at amortized cost" in the net income of the period/fiscal year.

Pursuant to Communication "A" 6651, issued by the Argentine Central Bank on February 22, 2019, financial statements shall be prepared in a constant currency as from fiscal years starting on January 1, 2020. In this sense, Communication "A" 6849 issued by the Argentine Central Bank sets the re-expression frequency of the accounting information in a homogeneous currency on a monthly basis, and the index utilized to such ends accounts for the National Consumer Index drawn up by INDEC (basis month: December 2016) and for such items with previous initial date, IPIM issued by FACPCE is utilized, pursuant to Ruling JG 517/16. Likewise, transition date, in virtue of the retroactive application has been set on January 1, 2019.

(c) Other Changes in the Accounting Framework set by the Argentine Central Bank

Pursuant to Communication "A" 6847, financial entities will be allowed to re-categorize, as from Januray 1,2020, instruments of the non-financial public sector rated at fair value through profit and loss and at fair value through profit and loss in OCI at an amortized cost criterion, while utilizing the accounting value of such date as addition value. As for instruments affected by this option, interest accrual and accessories shall be interrupted as long as the accounting value is above its fair value. Upon such measurement, the abovementioned financial instruments, at fair value as of June 30, 2020 there would be no significant impact on equity and results for the period.

(d) Definition of a business - Changes in accordance to IFRS 3

On October 22, 2018, IASB released changes, which include the definition of business with the purpose of helping entities determine whether a transaction must be recorded as a combination of business or the acquisition of an asset. Such changes:

  1. Clarifies that, the definition of business, an acquired group of activities and assets, shall include at least a good and a substantial process that together shall contribute significantly to the capacity of developing products;
  2. Removes the evaluation of whether market players can replace the lack of processes or goods and continue

with the production of products;

(iii) Add explanatory guidelines and examples to help entities evaluate whether a substantial process has been acquired;

  1. Restrict definitions of a business or product by focusing on goods and services granted to clients and remove the reference to the capacity of reducing costs, and
  2. Add an optional concentration trial that enables a simplified evaluation of whether a set of activities and acquired businesses are not a business.

15

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Entities need to apply changes in transactions which acquisitions date as from the beginning of the first annual period over which it has been informed as of January 1, 2020.

The Entity does not see any initial effect unless a combination of businesses is made effective.

(e) Definition of significant or relatively significant Changes to IAS 1 and IAS 8

On October 31, 2018, IASB released these changes with the purpose of improving the understanding of the definition of significant or relatively significant, coordinating the drawing up of the definition in IFRS and the Conceptual Framework to avoid any misunderstanding whatsoever that may stem from the different definitions, in that sense, IASB has added support requirements in IAS 1 in the definition to add importance and clarity in its application. Additionally, said board provides existing guides regarding the definition of significant and relatively significant in a single place together with the definition.

This change affects mainly section 7 of IAS 1, section 5 of IAS 8 and removes section 6 of IAS 8. Such change is applicable in a prospective manner to annual periods as from January 1, 2020.

The Entity considers that such changes have no significant effect in its financial statements.

(f) Changes in the Financial Information Conceptual Framework

IASB has issued a new Conceptual Framework. Said change will not imply any changes in the accounting standards in force. However, entities that utilize the Conceptual Framework to define accounting policies for those transactions, events or situations that are not included in the accounting standards in force, apply a new Conceptual Framework as from January 1, 2020, thus evaluating whether their accounting policies are still the most suitable ones.

The Entity considers that such changes have no significant effect in its financial statements.

  1. Change in the Reference Interest rate (IBOR) - Changes to IFRS 9

On September 26, 2019, IASB released a change that requires additional disclosures regarding the uncertainty resulting from the reform in the reference interest rate. Such release accounts for the first reaction to potential effects that IBOR reform may produce in financial statements and modifies specific cash flow coverage accounting requirements assuming that the reference interest rate is not modified as a result of such reform. These changes have become effective as from January 1, 2020 with retroactive effect.

The Group considers that such changes have no significant effect in its financial statements.

The following sets forth changes that have not become in force as of June 30, 2020:

  1. Sale or contribution of assets between an investor and its associate or joint Venture - changes in IFRS 10 and IAS 28.

IASB carried out changes specifically on IFRS 10 "Consolidated Financial Entities" and IAS 28 "Investments in associates and joint ventures". Such changes clarify the accounting of sales or contribution of assets between the investor and its associates and joint ventures and confirm that the accounting treatment depends on whether non- monetary assets sold or contributed to the associate or joint venture account for a "business" (as defined in IFRS 3).

When non-monetary assets account for a business, the investor will recognize earnings or losses of the sale or contribution of assets. If assets do not account for a business, earnings or losses are recognized by the investor only up to the amount recognized by the investor in the associate or joint venture. These changes are applied with retroactive effect.

IASB has decided to delay the application date for this modification until the research project over the interest method is concluded.

The Group is evaluating the impact of the application of this new standard.

  1. IFRS 17 "Insurance contracts"

On May 18, 2017, IASB issued IFRS 17 "Insurance contracts" which provides a comprehensive framework based on principles for measurement and presentation of all insurance contracts. The new rule will supersede IFRS 4 Insurance contracts and requires that insurance contracts be measured using cash flows of existing enforcement and

16

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

that income be recognized as the service is rendered during the coverage period. The standard will come into force for the fiscal years beginning as from November 1, 2021.

The Group is evaluating the impact of the application of this new standard.

1.2 Impairment of financial assets

The Group evaluates, based on a prospective approach, expected credit losses ("ECL") related to financial assets rated at amortized cost or fair value with changes in another comprehensive income, the exposure resulting from loan commitments and financial guarantee contracts with the scope set by Communication "A" 6847 issued by the Argentine Central Bank.

The Group measures ECL of financial instruments reflecting the following:

  1. A probability amount, weighed and unbiased, that is defined through the evaluation of a range of possible result;
  2. The temporal value of money; and
  3. The reasonable and sustainable information available at no cost nor excessive effort on the submission date on past events, current conditions and future economic condition forecasts.

IFRS 9 sets forth the following "Three stages" model for the impairment based on changes in the credit quality from initial recognition:

  • If, on the submission date, the credit risk of a financial instrument has not increased significantly since its initial recognition, the Group will classify such instrument in "Stage 1".
  • If a significant increase in credit risk ("SICR") is detected, from its initial recognition, the instrument is moved to "Stage 2", but such instrument is not deemed to contain a credit impairment.
  • If the financial instrument contains credit impairment, it is moved to "Stage 3".
  • For financial instruments in "Stage 1", the Bank measures ECL at an amount equivalent to the amount of expected credit loss during the useful life term of the asset that result from potential default events within the next 12 months.
    As for Financial Instruments in "Stage 2" and "Stage 3", the Group measures ECL during the useful life term of the asset (hereinafter "lifetime"). Note 1.2.1 includes a description of how the Group defines when a significant increase in credit risk has occurred.
  • A generalized concept in the measurement of ECL pursuant to IFRS 9 shall be considered prospective information.
  • Financial assets with impairment on credit value, either purchased or produced, account for those financial assets which have been impaired since initial recognition. ECL of this type of financial instruments is always measured during the asset lifetime ("Stage 3").

The following chart summarizes the impairment requirements pursuant to IFRS 9 (for financial assets that do not entail impairment on credit value, either purchased or produced:

Changes in the credit quality since initial recognition

Stage 1

Stage 2

Stage 3

(initial recognition)

(significant increase of credit

(Impaired credit)

risk since initial recognition)

ECL over the next

ECL during the financial instrument lifetime

12 months

The following describes the Group´s judgements and assumptions for ECL measurement:

1.2.1. Significant increase in credit risk

The Group considers that a financial asset has experienced a significant credit risk increase when one or more than the following qualitative and quantitative criteria have been observed:

17

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Individuals and Businesses

  • Maximum delay at a financial asset level between 31 and 90 days
  • Maximum situation Argentine Central Bank over 1.
  • At a Client level, an Internal Behavior Score below cutting point.1

Corporate Banking

  • Maximum situation Argentine Central Bank over 1.
  • Hold an Internal Rating of Classification "C" (Default probability over 30%).

Consumer Finance

  • Maximum delay at a financial asset level between 31 and 90 days

Sectoral Analysis - Covid-19 Risk

In virtue of the fact that internal impairment models do not reflect the current pandemic context properly as historical information is utilized, for this quarterly closing, a sectoral analysis produced by the Bank has been included as additional definition of the significant risk increase.

In such analysis the companies 'default risk is evaluated according the type of activity depending on the impact level such companies have suffered given their features.

In this sense, such analysis has been applied in Small and Medium Size companies and E&P, such additional definition of significant risk increases for "Real State", "Entertainment" and "Tourism & Gastronomy" activities. Such impact was measured as of June closing, though remaining activities are still under assessment in virtue of the evaluation of future impacts.

1.2.2. Individual and collective evaluation basis

Expected losses are estimated both in a collective and individual manner.

The Group´s individual estimation is aimed at calculating expected losses for significantly impaired risks. In these cases, the amount of credit losses is calculated as the difference between expected cash flows discounted at the effective interest rate of the operation and the value in the books of the instrument.

For collective estimation of expected credit losses, instruments are distributed in groups of assets depending on credit risk features. Exposures within each group are segmented in accordance with the similar features of the credit risk, including the debtor´s payment capacity pursuant to contractual conditions. These risk features need to play a key role in the estimation of future flows of each group. Credit risk features may consider the following factors, among others:

Entity

Parameter

Segment

Personal loans (1)

Credit cards (1)

Advances

Default Probability

Documents

(DP)

Mortgage loans

Individual and

Refinancing

Businesses

Others

Personal loans

Credit cards

Severity (LGD)

Advances

Mortgage loans

Refinancing

1 Definition of cutting point for SICR - Payroll Plan High CL PC=>400. Remaining CL=>500. | Open market High Income CL=>700. Remaining CL =>700. | Retirees: High Income CL =>610. Remaining CL =>610.

18

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Others

Entity

Parameter

Segment

Small Companies

Default Probability

Medium Companies

(DP) (2)

Big Companies

Financial Sector

Corporate

Advances

Banking

Documents

Severity (LGD)

Leasing

Unsecured loans

Others

OCIF

Credit cards closed

Credit cards opened

Default Probability

Cash loan

Consumer

(DP)

Consumer and Directed Cash Loan

Refinancing

Finance

Consumer Loans Tarjeta Automática

Credit Cards

Severity (LGD)

Loans

Refinancing

  1. For personal loans and credit cards, the segment dimension is added, since there is sufficient materiality. The segments are: Retirees, High Income Open Market, High Income Salary Plan, Non High Income Open Market, Non High Income Salary Plan, Entrepreneurs and SMEs, Former Retirees and Ex Salary Plan.
  2. The segments to calculate the probability of default in Business Banking were grouped by company size in Stage 1. For stages 2 and 3, the probability of default was calculated including all the business banking segments to form a statistical materiality group enough.
  3. As of the date of these financial statements, the balances of provisions related to Cordial Compañía Financiera S.A., are established under the Minimum Provision Standards as set forth in Communication "A" 6990 of the B.C.R.A.

Credit risk features utilized for the abovementioned segments are the following, among others: type of financial instrument, debtor´s activity sector, activity geographical area, type of guarantee, time elapsed of submitted financial statements and other key factors to calculate expected cash flows.

The suitable segmentation of financial instruments is monitored and reviewed on a regular basis by the Credit Risk and Stress Test Area.

1.2.3 Definition of default and impaired credit

The Group considers that a financial instrument is in default when such instrument entails one or more of the following criteria:

Individuals and Businesses

  • Financial instruments delinquent after 90 days in contractual payments.

Corporate Banking

  • Financial instruments with B.C.R.A. situation greater than or equal to 3.

Consumer Finance

  • Financial instruments delinquent after 90 days in contractual payments.

19

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Abovementioned criteria are applied in a consistent manner to all financial instruments and are aligned with the definition of default utilized by the Bank in virtue of the administration of credit risk. Likewise, such definition is consistently applied to define DP, Exposure at Default ("hereinafter, "EAD") and Loss Given Default (hereinafter, "LGD").

1.2.4. Measurement of Expected Credit Loss - Explanation of inputs, assumptions and calculation techniques

ECL is measured on a 12-month basis or along the instrument´s lifetime, depending on whether a significant increase in credit risk has been recorded since initial recognition or whether an asset is considered to contain credit impairment. ECLs account for the product discounted from Default Probability (DP), Exposure at Default (EAD) and Loos Given Default (LGD), defined as follows:

  • DP accounts for the probability of debtor´s breaching his/her financial obligation (pursuant to the "Definition of credit default and impairment" set forth in Note 1.2.3), either during the next 12 months or the remaining lifetime (DP lifetime) of the financial asset.
  • EAD is based on the amounts the Group expects to owe at the moment of the default, during the next 12 months or the remaining lifetime (DP lifetime) of the financial asset (EAD Lifetime). For example, for a revolving commitment, the Group includes the current available balance plus any additional amount expected to become available until the current contractual limit at the moment of the default, when applicable.
  • LGD accounts for the Group´s expectation regarding the loss amount in an exposure under default.

LGD changes depending on the counterparty type, the type and time elapsed of the claim and the availability of guarantees or any other credit support. LGD is expressed as a loss percentage for the exposure unit at the moment of default (EAD) and is calculated on a 12-month basis or along the instrument lifetime, where the 12-month LGD accounts for the loss percentage expected to incur if the default takes place within the next 12 months and lifelong LGD accounts for the loss percentage expected to incur if the default takes place during the remaining lifetime of the financial asset.

.

ECL is defined by projecting DP, LGD and EAD for each future month and each individual or collective exposure. These three components are multiplied and adjusted pursuant to the survival (that is, the exposure has not been pre- settled or entered into default in a previous month). The aforementioned effectively calculates ECL for each future month, which is later discounted as of submission date and is added. The discount rate utilized for the calculation of ECL accounts for the original or rough effective interest rate of such date.

As for the calculation of parameters utilized for the calculation of the aforementioned ECL, the Entity based its calculation on the internal model development know-how for the calculation of parameters, thus adapting the development of such models pursuant to IFRS 9.

The Group includes prospective economic information in its definition of DP, EAD and LGD over 12 months or Lifetime. See Note 1.2.5 for the explanation of prospective information and its consideration in the calculation of ECL.

1.2.5 Prospective information considered in expected credit loss models

The evaluation of significant credit increases and the calculation of ECL include prospective information. The Group carried out a historical analysis and identifies key economic variable that affect the credit risk and expected credit losses for each portfolio.

Forecasts of these economic variable ("base economic scenario") are provided on a six-month basis by the Research team of the Group and offer a better estimated outlook of the economy for the next 12 months. The impact of such economic variables on DP and LGD resulted from the statistic regression analysis to understand the impact the changes in these variables has had historically on default rates and LGD components.

In addition to the base economic scenario, the Research team of the Group also provides two potential scenarios together with scenario analysis. The number of other scenarios is defined in accordance with the analysis of the main products to ensure the lineal effect between the future economic scenario and related expected credit losses. The number of scenarios and its features are re-evaluated on a six-month basis, except a situation occurs in the macroeconomic framework that justifies a greater regularity.

As of January 1, 2020 and as of June 30, 2020, as for its portfolios, the Group concluded that three scenarios have properly captured non-lineal items. Scenario analysis are defined by means of a combination of statistic and know-how judgement analysis, taking into account the range of potential results of which each scenario is representative. The evaluation of

20

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

credit risk significant increases is carried out by means of the utilization of DP lifetime in the base scenario and other scenarios, multiplied by the related analysis of each scenario, together with qualitative and quantitative and backstop indicators (See Note 1.2.1). The aforementioned is defined if the financial instrument is in Stage 1, Stage 2 or Stage 3 and, therefore, whether to register a 12-month ECL or Lifetime. As with any economic forecast, projections and probabilities of occurrence are subject to a high degree of inherent uncertainty, and therefore actual results may be significantly different than projected. The Group considers that these forecasts account for its best calculation of potential results and has analyzed the non-lineal and asymmetric impacts within the different portfolios of the Group to establish that chosen scenarios are representative of the range of potential scenarios.

The most significant assumptions utilized to calculate ECL as of June 30, 2020 are as follows:

Parameter

Segment

Macroeconomic

Optimistic

Base

Pessimistic

variable

scenario

scenario

scenario

Individuals

and Businesses

Default

Corporate

EMAE

124.04

120.67

115.37

probability

banking

Consumer

finance

The following are estimations assigned to each scenario as of June 30, 2020:

Base scenario

80%

Optimistic scenario

10%

Pessimistic scenario

10%

Sensitivity analysis

The chart below includes changes in ECL as of June 30, 2020 that would result from reasonably potential changes in the following parameters:

June 30, 2020

ECL previsions

8,218,821

Total portfolio

104,998,440

Irregular Portfolio Coverage

128.69%

ECL per Scenario

Favorable Impact

8,102,455

High Impact

8,341,147

Coverage Ratio per Scenario

Favorable Impact

126.86%

High Impact

130.60%

1.2.6 Maximum exposure to credit risk

The chart below includes an analysis of credit risk exposure of the financial instruments for which expected credit loss provisions are recognized. The gross amount of financial assets books included in the chart accounts for the maximum credit risk exposure of such assets.

June 30, 2020

Total

Stage 1

Stage 2

Stage 3

Advances

28,604,835

579,605

1,218,479

30,402,919

Documents

13,684,064

328,321

361,051

14,373,436

Mortgage loans

8,093,032

2,655,301

969,673

11,718,006

Pledge loans

766,371

415,786

257,865

1,440,022

Personal loans

30,915,097

1,768,362

1,124,875

33,808,334

21

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

June 30, 2020

Total

Stage 1

Stage 2

Stage 3

Individuals and Business

13,087,421

1,401,480

599,961

15,088,862

Consumer finance

17,827,676

366,882

524,914

18,719,472

Credit cards

30,208,260

3,283,713

484,586

33,976,559

Individuals and Business

26,342,580

2,952,015

353,619

29,648,214

Consumer finance

3,865,680

331,698

130,967

4,328,345

Financial Lease

2,863,438

108,530

167,385

3,139,353

Others

31,819,284

3,807,778

2,818,492

38,445,554

Total

146,954,381

12,947,396

7,402,406

167,304,183

1.2.7 Guarantees and other credit improvements

A guarantee is an instrument by means of which the Entity´s debtor or a third party is committed upon any obligation default, to be offered as support for such debt settlement. The Entity accepts a guarantee with support before a potential breach on behalf of a debtor.

The Argentine Central Bank classifies these guarantees in three types: Preferred "A" (considered self-settleable), Preferred "B" (made up by mortgage or pledge loans) and remaining guarantees (mainly bank guarantees and fines).

In virtue of the administration of guarantees, the Group relies on a specific area devoted to the review of the legal compliance and suitable instrumentation of received guarantees. In accordance with the type of guarantees, the guarantors may be natural or legal persons (in the case of mortgages, pledges, fines, guarantees and liquid funds) and international top level Financial Entities (for credit letters stand by).

The Group monitors guarantees related to financial assets considered as impaired credits since such guarantee is likely to be executed to mitigate potential credit losses.

1.2.8 Credit risk provision

Credit risk provision recognized in the period is affected by a range of factors as follows:

  • Transfers between Stage 1 and Stage 2 or 3 given financial instruments experience significant increases (or decreases) in credit risk or are impaired over the period, and the resulting "increase" between ECL at 12 months and
    Lifetime;
  • Additional assignments for new financial instruments recognized during the period, as well as write-offs for withdrawn financial instruments;
  • Impact on the calculation of ECL of changes in DP, EAD and LGD during the period, resulting from the regular updating of model inputs;
  • Impact on the measurement of ECL as a result of changes in models and assumptions;
  • Impact resulting from time elapsing as a consequence of the current value updating;
  • Conversion to local currency for foreign-currency-denominated assets and other movements; and
  • Financial assets withdrawn during the period and application of provisions related to assets withdrawn from the balance sheet during the period. The following charts explain changes in the provision for credit risk between the beginning and end of the period due to the following factors:

Stage 1

Stage 2

Stage 3

ECL at 12

ECL

ECL Lifetime

Total

months

Lifetime

Credit risk provision as of 12/31/2019

1,288,194

665,102

4,707,322

6,660,618

Transfers:

From Stage 1 to Etapa 2

(69,245)

393,944

-

324,699

From Stage 1 to Etapa 3

(7,586)

-

209,674

202,088

From Stage 2 to Etapa 3

-

(215,732)

580,614

364,882

22

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

From Stage 2 to Etapa 1

6,676

(94,880)

-

(88,204)

From Stage 3 to Etapa 2

-

5,353

(41,783)

(36,430)

From Stage 3 to Etapa 1

961

-

(48,410)

(47,449)

Net changes

1,061,496

826,655

54,106

1,942,257

Withdrawn financial assets

(328,927)

(411,855)

(747,206)

(1,487,988)

Direct charge

(149,350)

(63,751)

(17,980)

(231,081)

Difference of quotation and other

29,873

31,986

95,896

157,755

movements

Credit risk provision as of 06/30/2020

1,832,092

1,136,822

4,792,233

7,761,147

*Cordial Compañía Financiera S.A.´s balances of provisions are held under minimum provisions Standards pursuant to Communication "A" 6990 issued by the Argentine Central Bank.

1.2.9 Account withdrawal policy

The Bank withdraws, partially or as a whole, financial assets from the balance sheet, once all recovery efforts have been used up and has concluded that there are no reasonable expectations. Indicators of lack of reasonable recovery expectation include (i) the cease of execution activities and (ii) when the Bank´s recovery method is given by the guarantee execution and the value of the guarantee is not enough for a total reasonable recovery expectation.

The Group may withdraw financial assets from its balance sheet which are still subject to execution activities. Contractual amounts pending of collection of such withdrawn assets during the period ended on June 30, 2020 amount to 2,687,055. The Group seeks to recover amounts legally owed as a whole, but partially withdrawn in the balance sheet since there is no reasonable recovery expectation.

1.3. Critical accounting policies and estimates

The preparation of condensed interim financial statements in accordance with the accounting framework established by the Argentine Central Bank requires the use of certain critical accounting estimates. It also requires Management to exercise its judgment in the process of applying the accounting standards established by the Argentine Central Bank to establish the Group's accounting policies.

The Group has identified the following areas that involve a higher degree of judgment or complexity, or areas in which the assumptions and estimates are significant for the consolidated financial statements that are essential for understanding the underlying accounting / financial reporting risks:

a) Fair value of derivatives and other financial instruments

The fair value of financial instruments that do not list in active markets are measured through the use of valuation techniques. Such techniques are validated and regularly reviewed by qualified independent personnel of the area that developed such techniques. All models are evaluated and adjusted before being use in order to make sure that results express current information and comparative market prices. As long as possible, models use only observable information; however, factors such as credit risk (own or counterparty), volatilities and correlations require the use of estimates. Changes in assumptions regarding such factors may impact on the fair value reported for financial instruments.

b) Allowances for loan losses and advances.

As of January 1, 2020, the Group adopted retroactively to January 1, 2019, with the scope mentioned in Note 1.1.4.

(A)., section 5.5. of IFRS 9 referring to the impairment of financial assets. In this sense, the Group evaluates the expected credit losses (ECL) on a prospective basis of the credit risk associated with the financial assets measured at amortized cost, to the debt instruments measured at fair value with changes in other comprehensive income, to accounts receivable for leases, as well as commitments and guarantees granted not measured at fair value, with the exception of debt instruments of the Non-Financial Public Sector that are temporarily excluded from the provisions for impairment of financial assets, contained in section 5.5 of IFRS 9, as well as the provisions of Cordial Compañía Financiera S.A. as provided in Communication "A" 6990 of the B.C.R.A.

The measurement of expected credit losses is an area that requires the use of complex models and significant assumptions about future economic conditions and credit behavior (for example, the probability that the customer will go into default and that losses will result for the Group). The explanation of the inputs, assumptions and estimation techniques used to measure the ECL is presented in more detail in Note 1.2, including the key sensitivities of the ECL to changes in these elements.

It should be noted that, in the application of accounting requirements to measure ECL, significant judgments are necessary, such as:

23

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

  1. Determination of the criterion of significant increase in credit risk
  2. Choice of appropriate models and assumptions for the measurement of ECL
  3. Establishment of the number and relative weight of the prospective scenarios for each portfolio segment and the associated ECL, and
  4. Establishment of groups of similar financial assets for the purpose of measuring ECL.

c) Impairment of Non-Financial Assets

Intangible assets with finite lives and property, plants and equipment are amortized or depreciated along their useful lives in a straight-line method. The Group reviews the conditions related to these assets to determine whether events and circumstances justify a review of the amortization and remaining depreciation period and whether there are factors or circumstances that imply an impairment in the value of assets that cannot be recovered.

The Group has applied the judgment in the identification of impairment indicators for property, plant and equipment and intangible assets. The Group has defined that there was no evidence of impairment for any period included in the consolidated Financial Statements. Given the aforementioned, no recoverable value has been calculated.

The evaluation process for potential impairment of an asset of indefinite useful life is subject to and require a significant judgment in many points over the course of the analysis, including the identification of its cash-generating unit, the identification and allocation of assets and liabilities to a cash-generating unit and the definition of their recoverable value. The recoverable value is compared with the carrying value in order to define the non-recoverable portion of such value. When calculating the recoverable value of the cash-generating unit in virtue of the assessment of annual or regular impairment, the Group use estimates and significant judgments on future cash flows of the cash- generating unit. Its cash flow forecasts are based on assumptions that account for the best use of its cash-generating unit.

Although the Group believes that assumptions and forecasts used are suitable in virtue of the information available for the administration, changes in assumptions or circumstances may require changes in the assessment. Negative changes in assumptions utilized in an impairment tests of indefinite useful life intangible assets may result in the reduction or removal of the excess of fair value over the book value, which would result in the potential recognition of the impairment.

The Group decided that it would not be necessary to recognize an impairment loss in indefinite useful life intangible assets under such conditions.

d) Income tax and deferred tax

A significant judgment is required to determine liabilities and assets from current and deferred taxes. The current tax is measured at the amount expected to be paid to the taxation authority using the tax rates that have been enacted or substantially enacted by the end of the reporting period. The deferred tax is measured over temporary differences between tax basis of assets and liabilities and book values at the tax rates that are expected to apply when the asset is realized or the liability settled.

Assets from deferred tax are recognized upon the possibility of relying on future taxable earnings against which temporary differences can be used, based on the Senior Management´s assumptions regarding amounts and opportunities of future taxable earnings. Later, it is necessary to determine whether assets from deferred tax are likely to be used and set off future taxable earnings. Real results may differ from estimates, such as changes in tax legislation or the result of the final review of affidavits issued by tax authorities and tax courts.

Likely future tax earnings and the number of tax benefits are based on a medium term business plan prepared by the administration. Such plan is based on reasonable expectations.

1.4. Changes in loans and other financing

Under certain circumstances, the Group renegotiates or changes contractual cash flows of loans granted to clients. In these cases, the Group evaluates whether the new terms are substantially different from initial terms. The Group carries out this practice while taking into account the following:

  1. If the client is in financial difficulties, the Bank evaluates whether such change only reduces contractual cash flows to amounts expected to be paid by the borrower.
  2. Significant extension of the term when the borrower does not have financial difficulties.
  3. Significant change in the interest rate.

24

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

  1. Change in the currency in which the loan is denominated.
  2. Integration of guarantees or credit improvements that significantly affect the credit risk related to the loan.

If, after the change, the loan terms are substantially different, the Group withdraws the original financial instrument and recognizes a new asset at fair value and recalculates a new effective interest rate for such asset. Therefore, renegotiation date is considered as the initial recognition date in virtue of the calculation of impairment and the definition of a new significant increase in credit risk. However, the Group also evaluates whether the new recognized asset is considered as an impaired asset, especially when the renegotiation stemmed from the lack of payment capacity on behalf of the client. The differences in the accounting value are recognized in the results as well as losses and earnings resulting from the withdrawal of such financial asset.

If the terms of the loan after the change are not substantially different, the renegotiation or change will not produce the withdrawal of the financial asset, and the Group will recalculate the gross accounting value based on reviewed funds flow while recognizing a guarantee or loss from the change in results. The new gross accounting value is recalculated as the value discounted from the modified funds flow at the initial effective interest rate.

1.5. Consolidation

A subsidiary is an entity (or subsidiary), including structured entities, in which the Group has control because it (i) has the power to manage relevant activities of the subsidiary (ii) has exposure, or rights, to variable returns from its involment with the subsidiary, and (iii) has the ability to use its power over the subsidiary in order to affect the amount of the investor´s returns. The existence and the effect of the substantive rights, including substantive rights of potential vote, are considered when evaluating whether the Group has power over the other entity. For a right to be substantive, the right holder must have the practical competence to exercise such right whenever it is necessary to make decisions on the direction of the entity's relevant activities. The Group can have control over an entity, even when it has less voting powers than those required for the majority.

Accordingly, the protecting rights of other investors, as well as those related to substantive changes in the subsidiary´ activities or applicable only in unusual circumstances, do not prevent the Group from having power over a subsidiary. The subsidiaries are consolidated as from the date on which control is transferred to the Group, ceasing its consolidation as from the date on which control ceases.

The following chart provides the subsidiaries which are object to consolidation:

Percentage of Participation

Company

Condition

Legal Adress

Principal

06/30/2020

12/31/2019

Activity

Direct

Direct and

Direct

Direct and

Indirect

Indirect

Bartolomé Mitre

Commercial

Banco Supervielle S.A.

Controlled

434, C.A.B.A.,

97.10%

99.90% (1)

97.10%

99.90% (1)

Bank

Argentina

Cordial Compañía

Reconquista 320,

Financial

Controlled

C.A.B.A.,

5.00%

99.90%

5.00%

99.90%

Financiera S.A.

Company

Argentina

Bartolomé Mitre

Tarjeta Automática S.A.

Controlled

434, C.A.B.A.,

Credit Card

87.50%

99.99%

87.50%

99.99%

Argentina

Supervielle Asset

Bartolomé Mitre

Controlled

434, C.A.B.A.,

Mutual Fund

95.00%

100.00%

95.00%

100.00%

Management S.A.

Argentina

Bartolomé Mitre

Sofital S.A.F. e I.I.

Controlled

434. C.A.B.A.,

Real State

96.80%

100.00%

96.80%

100.00%

Argentina

San Martín

Espacio Cordial de

719/731. 1° Piso.

Controlled

Ciudad de

Retail Services

95.00%

100.00%

95.00%

100.00%

Servicios S.A.

Mendoza.

Argentina

Reconquista 320.

Supervielle Seguros S.A.

Controlled

1° Piso. C.A.B.A.,

Insurance

95.00%

100.00%

95.00%

100.00%

Argentina

Bartolomé Mitre

Financial

Micro Lending S.A.U.

Controlled

434. C.A.B.A.,

100.00%

100.00%

100.00%

100.00%

Company

Argentina

InvertirOnline S.A.U.

Controlled

San Martin 323.

Clearing and

100.00%

100.00%

100.00%

100.00%

11° Piso.

settlement agent

25

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Percentage of Participation

Company

Condition

Legal Adress

Principal

06/30/2020

12/31/2019

Activity

Direct

Direct and

Direct

Direct and

Indirect

Indirect

C.A.B.A.,

Argentina

San Martin 323.

InvertirOnline.Com

Controlled

11° Piso.

Representations

100.00%

100.00%

100.00%

100.00%

Argentina S.A.U.

C.A.B.A.,

Argentina

Supervielle Productores

Reconquista 320.

Asesores de Seguros

Controlled

1° Piso. C.A.B.A.,

Insurance Broker

95.20%

100.00%

95.00%

100.00%

S.A.

Argentina

Bartolomé Mitre

Computer

Bolsillo Digital S.A.U.

Controlled

434, C.A.B.A.,

100.00%

100.00%

100.00%

100.00%

Services

Argentina

03 de Febrero

Clearing and

Futuros del Sur S.A.

Controlled

515, Rosario,

100.00%

100.00%

100.00%

100.00%

settlement agent

Santa Fe

  1. Grupo Supervielle S,A,'s direct and indirect interest in Banco Supervielle S,A votes amounts to 99.87% as of 06/30/20 and 12/31/2019.
  2. All the subsidiaries carry out their activities in Argentina, the local and functional currency being Argentine pesos.

1.6. Consolidated Structured Entities

The Group has securitized certain financial instruments, mainly loans, originated by personal and pledge loans through the transfers of said instruments to financial trusts that issue multiple classes of debt securities and participation certificates.

Regarding the financial statements as of December 31, 2019 the following consolidated structured entities have been consolidated as of the date of these consolidated condensed interim financial statements:

Financial

Due of

Securitized

Issued Securities

Issuers

Set-up on

principal

Trust

Amount

Type

Amount

Type

Amount

obligation

Cordial Compañía

21

06/24/2019

06/15/2022

$ 1,000,000

VDF

VN$ 220,000

CP

VN$

Financiera S.A.

780,000

Cordial Compañía

22

11/13/2019

01/15/2021

$ 571,560

VDF

VN$ 469,260

CP

VN$

Financiera

102,300

Micro Lending S.A.U.

III

06/08/2011

10/12/2016

$ 39,779

VDF TV A

VN$ 31,823

CP

VN$ 1,592

VDF B

VN $ 6,364

Micro Lending S.A.U.

IV

09/01/2011

06/29/2017

$ 40,652

VDF TV A

VN$ 32,522

CP

VN$ 1,626

VDF B

VN $ 6,504

Micro Lending S.A.U.

XVIII

12/01/2017

10/15/2022

$ 119,335

VDF TV A

VN $ 89,501

CP

VN$ 22,543

VDF TV B

VN $ 7,291

The Group controls a structured entity when it is exposed to, or holds the right to, variable returns and has the capacity to allocate returns through its power to run the activities of the entity, Structured entities are consolidated as from the date on which the control is transferred to the Group. The consolidation of such entities is ceased on the date on which such control is terminated.

As for financial trusts, the Group has evaluated the following:

  • The purpose and design of the trust
  • Identification of relevant activities
  • Decision-makingprocess on these activities
  • If the rights that the Group owns allow it to direct the relevant activities of the trust
  • If the Group is exposed, or is entitled to the variable results from its participation in said trust
  • If the Group has the capacity to affect said results through its power over the trust

In accordance with the aforementioned, the Group has decided that it holds control on such financial trusts and, therefore, such structured entities have been consolidated.

26

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

The following chart details the assets and liabilities of Structured Entities that have been consolidated by the Group as of June 30, 2020:

06/30/2020

12/31/2019

Assets

Loans

770,422

1,811,432

Financial assets

74,103

123,634

Other assets

228,756

331,342

Total Assets

1,073,281

2,266,408

Liabilities

Financial liabilities

366,283

1,618,115

Other liabilities

49,783

47,289

Total Liabilities

416,066

1,665,404

1.7. Foreign currency translation

  1. Functional and presentation currency

Figures included in the consolidated financial statements as per each entity of the Group are expressed in the functional currency, that is, in the currency of the main economic setting where it operates. Consolidated condensed interim financial ftatements are expressed in Argentine pesos, which is the functional currency and the reporting currency of the Group.

  1. Transactions and balances

Transactions in foreign currency are converted in the functional currency at the reference Exchange rate released by the Argentine Central Bank and those carried out in other currencies, at the repo rate in US dollars for the reference Exchange rate released by the Argentine Central Bank. Earnings and losses in foreign currency that result in the liquidation of such transactions and the conversion of monetary assets and liabilities denominated in foreign currency at closing exchange rates, are recognized in the integral income statement, under "Difference of exchange rate in gold and foreign currency", except when such items are deferred in the shareholders' equity for transactions classified as cash flow hedging, when applicable.

As of June 30, 2020 and December 31, 2019 the balances in US dollars were converted at the reference exchange rate determined by the Argentine Central Bank. In the case of foreign currencies other than US dollars, they have been converted to this currency using the types of passes reported by the Argentine Central Bank.

1.8. Cash and due from banks

Cash and due from banks includes cash available, freely available deposits in local banks and correspondent banks abroad, which are liquid short-term instruments and have a maturity of less than three months from the date of origination.

Assets recorded in cash and due from Banks are recorded at amortized cost which is close to its fair value.

Cash equivalents are made up by highly liquid short-term securities with three-month or shorter initial maturities, with fair value rating.

The composition of the cash on each of the indicated dates is detailed below:

Item

06/30/2020

12/31/2019

06/30/2019

12/31/2018

Cash and due from banks

31,705,003

29,992,168

37,756,087

58,866,776

Debt securities at fair value through profit or loss

2,162,649

645,779

58,041,179

22,076,108

Money Market Funds

1,548,593

1,159,947

1,425,950

1,145,551

Cash and cash equivalents

35,416,245

31,797,894

97,223,216

82,088,435

For their part, the reconciliations between the balances of those items considered cash equivalents in the Statement of Cash Flow and those reported in the Statement of Financial Position as of the indicated dates are set out below:

27

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Items

06/30/2020

12/31/2019

06/30/2019

12/31/2018

Cash and due from Banks

As per Statement of Financial Position

31,705,003

29,992,168

37,756,087

58,866,776

As per the Statement of Cash Flows

31,705,003

29,992,168

37,756,087

58,866,776

Debt securities at fair value through profit or loss

As per Statement of Financial Position

3,607,931

645,779

59,833,701

26,412,661

Securities not considered as cash equivalents

(1,445,282)

-

(1,792,522)

(4,336,553)

As per the Statement of Cash Flows

2,162,649

645,779

58,041,179

22,076,108

Money Market Funds

As per Statement of Financial Position - Other financial

3,052,587

2,381,901

4,173,729

2,997,782

assets

Other financial assets not considered as cash

(1,503,994)

(1,221,954)

(2,747,779)

(1,852,231)

As per the Statement of Cash Flow

1,548,593

1,159,947

1,425,950

1,145,551

Reconciliation of financing activities at June 30, 2020 and December 31, 2019 is as follows:

Items

Balances at

Cash Flows

Other non-cash

Balances at

12/31/2019

Inflows

Payments

movements

06/30/2020

Unsubordinated Negotiable Obligations

6,913,832

2,365,871

(3,526,730)

129,745

5,882,718

Subordinated Negotiable Obligations

2,408,052

83,060

(45,029)

43,623

2,489,706

Financing received from the Argentine Central

10,243,392

19,766,915

(22,013,806)

-

7,996,501

Bank and other financial institutions

Lease Liabilities

1,075,035

(705,692)

903,289

1,272,632

Total

20,640,311

22,215,846

(26,291,257)

1,076,657

17,641,557

2. SEGMENT REPORTING

The Group determines operating segments based on performance reports which are reviewed by the Board and key personnel of the Senior Management and updated upon changes.

With the purpose of implementing a strategic vision focused on the individual client and Small and Medium Size Companies that require and values closeness and digital service models, the Retail Banking sector turned into a new area of Individuals and Businesses.

In this sense, Small and Medium Size Companies clients and the loan portfolio have been transferred from the Corporate Division to the Individuals and Businesses area. Such change became effective on Junuary 1, 2020. The comparative information as of June 30, 2019 and December 31, 2019 was modified with the purpose of showing the new organization and making it comparable to information as of June 30, 2020.

As from January 1, 2020, the Bank´s clients receive the following services:

  • Individuals and Businesses Segment:
    • Small companies, individuals and companies that record anual sales of up to 100,000
    • "Small and Medium Size Companies", companies that record anual sales of over 100,000 up to 700,000
  • Corporate Baking Segment:
    • Megras that record anual sales over 700,000 up to 2,500,000
    • Big Companies. Grandes companies that record anual sales of over 2,500,000

The Group considers the business for the type of products and services offered, identifying the following operating segments:

a- Individuals and Businesses - Includes a wide range of financial products and services targeted to small

comoanies, included in Entrepreneours & SMSs, and high income people identified with so-called Identité proposal. Likewise, the Bank offers services and products targeted to retirees and pensioneers.

b- Corporate Banking - Includes advisory services at a corporate and financial level, as well as the administration of assets and loans targeted to big clients.

c- Treasury: This segment is in charge of the assignment of liquidity of the Entity in accordance with the different commercial areas´ needs and its own needs, Treasury implements financial risk administration policies of the Bank, administers trading desk operations, distributes financial products, such as

28

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

negotianle securities and develops business with the financial sector clients and whole sale non-financial sector clients.

d- Consumer - Includes loans and other credit products targeted to middle and lowed-middle income sectors and non-financial products and services.

e- Insurance: Includes insurance products, with a focus on life insurance, to targeted customers segments.

f- Mutual Fund Administration and Other Segments - Includes MFs administered by the Group, Includes also assets, liabilities and results of Micro Lending S.A.U., Invertir Online,Com Argentina S.A.U., InvertirOnline S.A.U., Bolsillo Digital S.A.U and Futuros del Sur S.A

Operating results of the different operating segments of the Group are reviewed individually with the purpose of taking decisions over the allocation of resources and the performance appraisal of each segment. The performance of such segments will be evaluated based on operating earnings and losses and is measured consistently with operating earnings and losses of the consolidated earnings and losses statement.

When a transaction is carried out between operating segments, they are taken in an independent and equitative manner, as in cases of transactions with third parties. Later, income, expenses and results from transfers between operating segments are removed from the consolidation.

The Group does not present information by geographical segments because there are no operating segments in economic environments with risks and returns that are significantly different.

The following chart includes information by segment as of June 30, 2020 and 2019:

Result by segments

Interest income Interest expenses

Distribution of results by Treasury

Net interest income

Services Fee Income

Services Fee Expenses

Income from insurance activities

Net Service Fee Income

Subtotal

Net income from financial instruments at fair value through profit or loss

Income from withdrawal of assets rated at amortized cost

Exchange rate difference on gold and foreign currency

NIFFI And Exchange Rate Differences

Other operating income

Result from exposure to changes in the purchasing power of the currency Loan loss provisions

Net operating income

Personnel expenses Administration expenses

Depreciations and impairment of non- financial assets

Other operating expenses

Operating income

Result from associates and joint ventures

Result before taxes

Income tax

Net income

Net income for the period attributable to owners of the parent company

Net income for the period attributable to non-controlling interest

Individuals

Adm.

and

Corporate

Treasury

Consumer

Insurance

MF and

Adjustments

Total as of

Businesses

Banking

other

06.30.2020

Banking

segments

9,544,313

5,717,209

9,592,498

1,862,729

-

30,551

(218,607)

26,528,693

(3,195,650)

(588,752)

(6,861,058)

(596,554)

-

(13,403)

237,083

(11,018,334)

1,918,200

(3,169,785)

1,251,585

-

-

-

-

-

8,266,863

1,958,672

3,983,025

1,266,175

-

17,148

18,476

15,510,359

3,150,055

325,291

107,738

794,132

-

563,552

(117,244)

4,823,524

(941,977)

(75,605)

(43,225)

(306,080)

-

(17,487)

17,524

(1,366,850)

-

-

-

-

635,599

-

94,153

729,752

2,208,078

249,686

64,513

488,052

635,599

546,065

(5,567)

4,186,426

10,474,941

2,208,358

4,047,538

1,754,227

635,599

563,213

12,909

19,696,785

-

-

578,961

39,403

164,652

75,345

116,781

975,142

-

-

(2,178,233)

-

-

-

-

(2,178,233)

92,733

27,181

171,319

11,623

(55)

23,616

71,676

398,093

92,733

27,181

(1,427,953)

51,026

164,597

98,961

188,457

(804,998)

473,882

993,305

89,912

130,230

4,637

63,491

(21,768)

1,733,689

(262,772)

(148,196)

1,792,588

(380,241)

(153,015)

(70,528)

(1,111)

776,725

(1,616,700)

(1,862,191)

20,914

(473,491)

-

(110)

-

(3,931,578)

9,162,084

1,218,457

4,522,999

1,081,751

651,818

655,027

178,487

17,470,623

(5,541,066)

(501,057)

(343,010)

(714,595)

(129,495)

(195,567)

(55,060)

(7,479,850)

(2,977,484)

(214,136)

(205,046)

(611,054)

(112,258)

(166,690)

87,610

(4,199,058)

(733,579)

(53,277)

(88,196)

(57,180)

(8,183)

(2,617)

(26,000)

(969,032)

(1,615,454)

(608,530)

(282,861)

(242,269)

(114)

(35,201)

(14,557)

(2,798,986)

(1,705,499)

(158,543)

3,603,886

(543,347)

401,768

254,952

170,480

2,023,697

-

-

-

815

-

-

(815)

-

(1,705,499)

(158,543)

3,603,886

(542,532)

401,768

254,952

169,665

2,023,697

518,174

72,956

(1,094,952)

94,871

(138,968)

(96,552)

121,784

(522,687)

(1,187,325)

(85,587)

2,508,934

(,661)

262,800

158,400

291,449

1,501,010

(1,187,325)

(85,587)

2,508,934

(,661)

262,800

158,400

290,414

1,499,975

-

-

-

-

-

-

1,035

1,035

Other comprehensive income

Other comprehensive income attributable to owners of the parent company

Other comprehensive income attributable to non-controlling interest

74,682

52,699

133,003

-

-

-

1

260,385

74,682

52,699

133,003

-

-

-

(266)

260,118

-

-

-

-

-

-

267

267

Comprehensive income for the period

(1,112,643)

(32,888)

2,641,937

(,661)

262,800

158,400

291,450

1,761,395

29

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Result by segments

Comprehensive income attributable to owners of the parent company Comprehensive income attributable to non- controlling interests

Assets by segments

Cash and due from banks

Debt securities at fair value through profit or loss

Loans and other financing Other Assets

Total Assets

Liabilities by segments

Deposits

Financing received from the Argentine Central Bank and others financial institutions

Unsubordinated Negotiable obligations Other liabilities

Total Liabilities

Result by segments

Interest income

Interest expenses

Distribution of results by Treasury

Net interest income

Services Fee Income

Services Fee Expenses

Income from insurance activities

Net Service Fee Income

Subtotal

Net income from financial instruments at fair value through profit or loss

Exchange rate difference on gold and foreign currency

NIFFI And Exchange Rate Differences

Other operating income

Result from exposure to changes in the purchasing power of the currency Loan loss provisions

Net operating income

Personnel expenses Administration expenses Depreciations and impairment of non- financial assets

Other operating expenses

Operating income

Result from associates and joint ventures

Result before taxes from continuing operations

Income tax

Net income

Net income for the period attributable to owners of the parent company

Net income for the period attributable to non-controlling interest

Other comprehensive income

Other comprehensive income attributable to owners of the parent company

Other comprehensive income attributable to non-controlling interest

Comprehensive income for the period

Comprehensive income attributable to owners of the parent company

Individuals

Adm.

and

Corporate

Treasury

Consumer

Insurance

MF and

Adjustments

Total as of

Businesses

Banking

other

06.30.2020

Banking

segments

(1,112,643)

(32,888)

2,641,937

(,661)

262,800

158,400

290,148

1,760,093

-

-

-

-

-

-

1,302

1,302

Individuals

Adm.

and

Corporate

Treasury

Consumer

Insurance

MF and

Adjustments

Total as of

Businesses

Banking

other

06.30.2020

Banking

segments

8,635,909

398,157

21,763,028

399,844

2,938

4,585,253

(4,080,126)

31,705,003

-

-

3,341,328

201,235

-

65,368

-

3,607,931

46,507,893

40,562,666

3,768,212

5,268,015

543,287

62,241

(1,001,172)

95,711,142

2,660,550

5,102,759

72,367,153

2,622,865

1,405,572

569,653

10,798,019

95,526,571

57,804,352

46,063,582

101,239,721

8,491,959

1,951,797

5,282,515

5,716,721

226,550,647

82,798,146

16,184,930

61,153,113

2,563,124

-

-

(4,095,074)

158,604,239

13,337

-

7,899,235

956,295

-

72,929

(945,295)

7,996,501

39,272

22,149

6,174,363

-

-

7,781

(360,847)

5,882,718

5,338,516

1,936,855

5,258,088

1,681,368

964,138

4,597,326

5,463,931

25,240,222

88,189,271

18,143,934

80,484,799

5,200,787

964,138

4,678,036

62,715

197,723,680

Individuals

Adm. MF

and

Corporate

Total as of

Treasury

Consumer

Insurance

and other

Adjustments

Businesses

Banking

06.30.2019

segments

Banking

13,285,001

7,947,726

1,843,711

3,289,647

-

176,136

(1,075,429)

25,466,792

(4,782,151)

(2,078,774)

(13,566,444)

(2,107,659)

-

(108,033)

1,191,833

(21,451,228

)

2,215,273

(2,836,932)

621,659

-

-

-

-

-

10,718,123

3,032,020

(11,101,074)

1,181,988

-

68,103

116,404

4,015,564

2,970,010

671,620

23,925

1,079,240

-

389,783

(130,483)

5,004,095

(687,051)

(57,933)

(35,771)

(397,770)

-

(20,799)

43,257

(1,156,067)

-

-

-

-

554,618

-

116,208

670,826

2,282,959

613,687

(11,846)

681,470

554,618

368,984

28,982

4,518,854

13,001,082

3,645,707

(11,112,920)

1,863,458

554,618

437,087

145,386

8,534,418

7,823

-

14,131,691

(67,525)

275,700

91,217

159,121

14,598,027

819,137

149,870

(1,079,673)

(1,109)

-

9,258

(12,895)

(115,412)

826,960

149,870

13,052,018

(68,634)

275,700

100,475

146,226

14,482,615

767,204

496,758

85,400

197,171

4,430

102,372

(55,092)

1,598,243

(1,057,624)

(1,249,509)

(263,911)

(668,592)

(244,995)

(185,375)

311,090

(3,358,916)

(2,094,198)

(1,454,118)

26,910

(1,295,266)

-

(10,167)

-

(4,826,839)

11,443,424

1,588,708

1,787,497

28,137

589,753

444,392

547,610

16,429,521

(5,852,997)

(606,653)

(353,870)

(764,596)

(94,508)

(223,025)

(97,104)

(7,992,753)

(2,966,410)

(200,575)

(206,449)

(631,666)

(138,258)

(131,795)

33,985

(4,241,168)

(665,607)

(61,672)

(64,503)

(62,313)

(4,443)

(4,560)

(25,921)

(889,019)

(1,771,762)

(852,798)

(252,613)

(387,584)

(1,273)

(69,909)

(10,583)

(3,346,522)

186,648

(132,990)

910,062

(1,818,022)

351,271

15,103

,987

(39,941)

-

-

-

3,255

-

-

(3,255)

-

186,648

(132,990)

910,062

(1,814,767)

351,271

15,103

444,732

(39,941)

(103,156)

(56,350)

(126,908)

271,860

(133,439)

(30,012)

(354,678)

(532,683)

83,492

(189,340)

783,154

(1,542,907)

217,832

(14,909)

90,054

(572,624)

83,492

(189,340)

783,154

(1,542,907)

217,832

(14,909)

90,726

(571,952)

-

-

-

-

-

-

(672)

(672)

-

-

(2,297)

-

(117)

-

(2)

(2,416)

-

-

(2,297)

-

(117)

-

1

(2,413)

-

-

-

-

-

-

(3)

(3)

83,492

(189,340)

780,857

(1,542,907)

217,715

(14,909)

90,052

(575,040)

83,492

(189,340)

780,857

(1,542,907)

217,715

(14,909)

90,727

(574,365)

30

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Result by segments

Comprehensive income attributable to non- controlling interests

Individuals

Adm. MF

and

Corporate

Total as of

Treasury

Consumer

Insurance

and other

Adjustments

Businesses

Banking

06.30.2019

segments

Banking

-

-

-

-

-

-

(675)

(675)

Individuals

Adm. MF

and

Corporate

Total as of

Assets by segments

Treasury

Consumer

Insurance

and other

Adjustments

Businesses

Banking

12.31.2019

segments

Banking

Cash and due from banks

Debt securities at fair value through profit or loss

Loans and other financing Other Assets

Total Assets

Liabilities by segments

8,737,149

1,161,964

19,163,798

364,799

3,845

2,750,064

(2,189,451)

29,992,168

-

-

354,759

105,371

-

185,649

-

645,779

47,517,441

43,703,955

4,230,470

6,590,342

515,689

34,925

(1,608,591)

100,984,231

2,683,777

1,335,366

20,524,958

3,119,019

1,239,693

611,816

8,638,345

38,152,974

58,938,367

46,201,285

44,273,985

10,179,531

1,759,227

3,582,454

4,840,303

169,775,152

Individuals

Adm. MF

and

Corporate

Total as of

Treasury

Consumer

Insurance

and other

Adjustments

Businesses

Banking

12.31.2019

segments

Banking

Deposits

72,034,254

12,083,178

17,807,558

1,852,021

-

-

(2,669,630)

101,107,381

Financing received from the Argentine

Central Bank and others financial

14,318

-

10,221,962

1,078,869

-

52,276

(1,124,033)

10,243,392

institutions

Unsubordinated Negotiable obligations

123,256

86,976

6,685,927

-

-

17,673

-

6,913,832

Other liabilities

5,297,751

1,565,434

4,945,277

3,632,838

861,022

2,934,922

4,774,206

24,011,450

Total Liabilities

77,469,579

13,735,588

39,660,724

6,563,728

861,022

3,004,871

980,543

142,276,055

3. FAIR VALUES

The portfolio of financial instruments held by the Group is detailed below, as of June 30, 2020 and December 31, 2019:

Instrument portfolio as of 06/30/2020

FV level 1

FV level 2

FV level 3

Assets

- Debt securities at fair value through profit or loss

3,503,141

104,790

-

- Derivatives

66,000

-

-

- Other financial assets

2,371,272

-

-

- Other debt securities

1,522,895

57,509,298

-

- Financial assets in guarantee

4,548,706

-

-

- Investments in Equity Instruments

35,064

8,939

-

Total Assets

12,047,078

57,623,027

-

Liabilities

- Liabilities at fair value through profit or loss

113,041

-

-

- Other financial liabilities

5,885,769

-

-

Total Liabilities

5,998,810

-

-

Instrument portfolio as of 12/31/2019

FV level 1

FV level 2

FV level 3

Assets

- Debt securities at fair value through profit or loss

461,802

179,807

4,170

- Derivatives

292,602

-

-

- Other financial assets

878,522

-

-

- Other debt securities

-

8,145,974

-

- Financial assets in guarantee

5,593,951

-

-

- Investments in Equity Instruments

6,584

9,977

-

Total Assets

7,233,461

8,335,758

4,170

Liabilities

- Liabilities at fair value through profit or loss

215,321

-

-

- Other financial liabilities

6,811,896

-

-

Total Liabilities

7,027,217

-

-

31

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Under IFRS, the estimated residual value of an instrument at inception is generally the transaction price. In the event that the transaction price differs from the determined fair value, the difference will be recognized in the income statement proportionally for the duration of the instrument. As of June 30, 2020, there have been no differences regarding the transaction price.

Fair Value of Other Financial Instruments

The following chart includes a comparison between the fair value and the accounting value of financial instruments not recorded at fair value as of June 30, 2020 and December 31, 2019:

Other Financial Instruments

Accounting value

Fair value

FV Level 1

FV Level 2

FV Level 3

as of 06/30/2020

Financial Assets

-Cash and due from Banks

31.705.003

31.705.003

31.705.003

-

-

-Other financial assets

681.315

681.315

681.315

-

-Loans and other financing

95.711.142

100.279.408

-

-

100.279.408

- Repo transactions

4.633.359

4.633.359

4.633.359

-

- Other Debt Securities

5.417.889

4.768.455

4.768.455

-

-

-Financial assets in as guarantee

203.264

203.264

203.264

-

-

138.351.972

142.270.804

41.991.396

-

100.279.408

Financial Liabilities

-Deposits

158,604,239

158,604,239

-

-

158,604,239

- Other financial liabilities

4,652,391

4,652,391

4,652,391

-

-

- Repo transactions

644,149

644,149

644,149

-

-

-Finances received from the

7,996,501

7,369,682

-

-

7,369,682

BCRA and other financial

institutions

- Negotiable obligations issued

5,882,718

5,882,718

5,882,718

-

-

- Subordinated Negotiable

2,489,706

2,654,970

2,654,970

-

-

Obligations

180,269,704

179,808,149

13,834,228

-

165,973,921

Other Financial Instruments as of

Accounting

Fair value

FV Level 1

FV Level 2

FV Level 3

12/31/2019

value

Financial Assets

-Cash and due from Banks

29,992,168

29,992,168

29,992,168

-

-

-Other financial assets

1,503,379

1,503,379

1,503,379

-

-

-Loans and other financing

100,984,231

105,104,817

-

-

105,104,817

- Other Debt Securities

3,976,205

4,070,245

4,070,245

-

-

-Financial assets in as guarantee

464,783

464,783

464,783

-

-

136,920,766

141,135,392

36,030,575

-

105,104,817

Financial Liabilities

-Deposits

101,107,381

101,109,244

-

-

101,109,244

-Other financial liabilities

3,543,951

3,543,950

3,543,950

-

-

-Repo transactions

363,291

363,291

363,291

-

-

-Finances received from the BCRA and

10,243,392

9,971,315

-

-

9,971,315

other financial institutions

- Negotiable obligations issued

6,913,832

6,913,832

6,913,832

-

-

- Subordinated Negotiable Obligations

2,408,052

2,690,020

2,690,020

-

-

124,579,899

124,591,652

13,511,093

-

111,080,559

4. RELATED PARTY TRANSACTIONS

Related parties are considered to be all those entities that directly, or indirectly through other entities, control over another, are under the same control or may exercise significant influence over the financial or operational decisions of another entity.

The Group controls another entity when it has power over the financial and operating decisions of other entities and in turn obtains benefits from it. On the other hand, the Group considers that it has joint control when there is an agreement between the parties regarding the control of a common economic activity.

32

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Finally, those cases in which the Group has significant influence is due to the power to influence the financial and operating decisions of another entity but not being able to exercise control over them. For the determination of such situations, not only the legal aspects are observed but also the nature and substance of the relationship.

Additionally, related parties are considered to be the key personnel of the Group's Management (members of the Board and managers of the Group and its subsidiaries), as well as the entities over which key personnel may exercise significant influence or control.

Controlling Entity

Mr. Julio Patricio Supervielle is the main shareholder of the Groups, with registered address on Bartolomé Mitre 434, 5th floor, Autonomous City of Buenos Aires. Julio Patricio Supervielle´s interest in the capital and votes of the Group as of June 30, 2020 and December 31, 2019 amounts to the 35.12% and 57.89%, respectively.

Related party transactions

The financing, including the ones that were restructured, were granted in the normal course of business and in substantially the same terms, including interest rates and guarantees, as those in force at the time to grant credit to unrelated parties. Likewise, they did not imply a higher than normal risk of bad debt or presented other types of unfavorable conditions.

5. COMPOSITION OF THE MAIN ITEMS OF THE CONSOLIDATED COMPREHENSIVE INCOME

Six-month period ended

Three-month period

on

ended on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

5.1 Interest income

Interest on overdrafts

1,484,477

2,549,202

661,717

1,266,408

Interest on promissory notes

2,399,347

3,332,622

1,005,226

1,731,965

Interest on personal loans

6,079,889

7,851,086

2,985,028

3,806,961

Interest on promissory notes

2,858,120

3,440,002

1,190,319

1,638,443

Interest on credit card loans

1,594,045

3,041,948

570,097

1,464,556

Interest on mortgage loans

1,665,572

2,110,758

755,050

1,152,913

Interest on automobile and other secured loan

306,278

400,444

146,072

204,422

Interest on foreign trade loans and USD loans

698,189

1,056,278

345,326

537,809

Interest on financial leases

314,094

753,042

152,307

349,179

Interest on public and private securities measured at

8,558,401

847,569

4,606,107

334,009

amortized cost

Others

570,281

83,841

347,947

50,414

26,528,693

25,466,792

12,765,196

12,537,079

5.2 Interest expenses

Interest on current accounts deposits Interest on time deposits

Interest on other liabilities from financial transactions Interest from financing from financial sector Others

1,854,000

4,374,275

893,612

2,196,374

7,650,007

11,405,163

3,249,149

5,405,059

1,273,880

4,828,518

394,129

2,465,321

58,728

175,456

53,404

72,285

181,719

667,816

72,463

378,389

11,018,334

21,451,228

4,662,757

10,517,428

5.3 Net income from financial instruments at fair value thro profit or loss

Income from corporate and government securities

878,536

1,143,507

631,601

224,963

Income from securities issued by the Argentine Central Bank

44,777

13,446,940

11,582

7,074,084

Derivatives

51,829

7,580

10,735

(86,078)

975,142

14,598,027

653,918

7,212,969

33

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Six-month period ended

Three-month period ended

on

on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

5.4 Result from assets withdrawals rated at amortized cost

Result from withdrawl or sale of government securities Result from exposure to changes in the purchasing power of the currency on government securities

5.5 Service fee income Commissions from deposit accounts Commissions from credit and debit cards Commissions from loans operations Commissions from miscellaneous operations Others

5.6 Service fee expenses

Commissions paid

Export and foreign currency operations

5.7 Other operating incomes

Loans recovered and allowances reversed

Insurance commissions

Rental from safety boxes

Commissions from trust services

Returns of risk funds

Sales of property, plant and equipment

Miscellaneous credit adjustments

Default interests

Others

5.8 Personnel expenses

Payroll and social securities Personnel expenses

5.9 Administration expenses Directors´ and statutory auditors´fees Other fees

Advertising and publicity Taxes

Maintenance, security and services Rent

Others

66,592

-

54,333

-

(2,244,825)

-

(2,244,825)

-

(2,178,233)

-

(2,190,492)

-

2,094,659

2,049,573

996,998

989,010

1,413,886

1,583,953

581,295

771,441

100,668

191,973

31,092

85,846

1,164,329

1,089,317

650,089

584,668

49,982

89,279

27,702

38,307

4,823,524

5,004,095

2,287,176

2,469,272

1,350,924

1,105,847

652,695

594,369

15,926

50,220

8,752

28,326

1,366,850

1,156,067

661,

622,695

277,082

268,773

(78,053)

126,013

31,344

21,071

15,113

16,251

137,257

163,262

65,558

81,392

6,585

16,484

1,756

15,144

677,351

152,628

616,318

84,474

6,302

7,508

4,403

3,675

56,700

89,992

27,429

42,330

150,335

300,543

54,087

113,824

390,733

577,982

163,935

246,729

1,733,689

1,598,243

870,546

729,832

6,863,056

7,293,036

3,493,583

3,870,996

616,794

699,717

232,890

340,860

7,479,850

7,992,753

3,726,473

4,211,856

135,633

173,094

95,302

105,654

1,250,252

599,338

735,003

328,163

245,079

316,140

124,460

166,593

734,042

837,483

348,870

395,715

1,345,072

972,345

739,339

478,494

37,681

39,416

18,718

23,933

451,299

1,303,352

221,080

673,919

4,199,058

4,241,168

2,282,772

2,172,471

34

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

5.10 Depreciation and impairment of non-financial assets

Depreciation of property, plant and equipment (Schedule F)

Depreciation of miscellaneous assets Amortization of intangible assets (Schedule G) Depreciation of rent asstes by right of use (Schedule F)

Six-month period ended

Three-month period ended

on

on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

210,908

251,581

110,133

124,623

106,685

86,366

53,696

50,738

322,619

236,018

167,542

122,579

328,820

315,054

161,464

157,743

969,032

889,019

492,835

455,683

5.11 Other operating expenses

Promotions related with credit cards

209,380

282,934

85,063

134,810

Turnover tax

1,691,126

2,215,631

815,415

1,126,643

Result by initial recognition of loans

65,918

136,313

21,443

66,655

Charges paid to National Social Security Administration

81,044

117,169

40,630

64,370

(ANSES)

Operationaal losses

20,775

40,338

6,734

28,265

Balance adjustments loans and credit cards

52,093

80,569

19,827

55,759

Interests for leases liabilities

82,350

130,

42,732

64,672

Coverage services

6,547

10,283

2,476

2,093

Contributions made to deposit insurance fund

101,339

145,775

52,758

74,093

Others

488,414

187,063

404,062

93,764

2,798,986

3,346,522

1,491,140

1,711,124

6. DIVIDENDS

On April 28, 2020, the Shareholders' General Meeting approved the following distribution of retained earnings for the year ended on December 31, 2019 which shows a profit of 4,257,933 (historical values without inflation adjustment):

  • Reserve for future dividends: 426,000
  • Other reserve: 3,831,933

7. INSURANCE

The composition of "Income from insurance activities" as of June 30, 2020 and 2019, is as follows:

Six-month period ended

Three-month period

Item

on

ended on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

Accrued premiums

969,703

1,028,523

475,321

513,758

Accrued losses

(94,858)

(74,965)

(25,563)

(15,036)

Production expenses

(145,093)

(282,732)

(60,738)

(166,617)

Total

729,752

670,826

389,020

332,105

8. MUTUAL FUNDS

As of June 30, 2020 and December 31, 2019, Banco Supervielle S.A. is the depository of the Mutual Funds managed by Supervielle Asset Management S.A. In accordance with CNV General Resolution No. 622/13, below are the portfolio, net worth and number of units of the Mutual Funds mentioned earlier.

Mutual Fund

Portfolio

Net Worth

Number of Units

06/30/2020

12/31/2019

06/30/2020

12/31/2019

06/30/2020

12/31/2019

Premier Renta CP en Pesos

28,097,364

15,938,793

28,050,530

15,914,397

8,505,351,987

3,958,398,573

Premier Renta Plus en Pesos

128,672

123,980

127,967

121,768

10,578,769

10,250,999

Premier Renta Fija Ahorro

1,009,384

528,679

988,242

521,939

23,390,973

12,851,475

Premier Renta Fija Crecimiento

57,926

53,299

57,141

52,998

3,622,219

3,688,485

Premier Renta Variable

152,137

189,004

150,992

186,285

7,099,105

6,982,580

35

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Premier Abierto Pymes

715,367

636,513

637,578

635,081

92,249,899

91,559,624

Premier Commodities

61,592

23,898

44,372

15,440

6,494,007

2,596,034

Premier Capital

173,911

146,597

143,530

146,211

32,579,552

36,057,519

Premier Inversión

774,176

153,755

645,392

153,677

1,677,321,963

442,160,

Premier Balanceado

1,169,767

708,645

1,168,770

707,999

303,705,471

249,317,925

Premier Renta Mixta

1,914,254

151,364

1,464,052

151,242

574,442,715

76,562,093

Premier Renta Mixta en Dólares

113,996

147,908

113,503

147,363

2,483,313

2,815,589

Premier Performance Dólares

442,810

515,567

442,316

514,411

7,741,462

9,312,208

Premier Global USD

690,600

793,897

690,177

791,448

9,350,964

11,338,023

  1. ADDITIONAL INFORMATION REQUIRED BY THE BCRA
  1. DEPOSIT GUARANTEE INSURANCE SYSTEM

Law No. 24485 and Decree No. 540/95 established the creation of the Deposit Insurance System to cover the risk attached to bank deposits, in addition to the system of privileges and safeguards envisaged in the Financial Institutions Law.

Through Decree No. 1127/98 dated September 24, 1998, the National Executive Branch established the maximum coverage limit of the guarantee system, applicable to demand or time deposits, in pesos and/or foreign currency. Until February 28, 2019, such limit amounts to 450, pursuant to Communication "A" 5943. As from March 1, 2019, the new limit amounts to 1,000 pursuant to Communication "A" 6654.

This regime does not include deposits made by other financial institutions (including time deposit certificates acquired through a secondary transaction), deposits made by persons directly or indirectly related to the entity, deposits of securities, acceptances or guarantees, and those set up after July 1, 1995 at an interest rate higher than that periodically set forth by the Argentine Central Bank on the basis of the daily survey carried out by that agency (*). Excluded from the regime are also the deposits whose ownership was acquired through endorsement and placements offering incentives additional to the interest rate. The system has been implemented through the creation of the so-called "Deposit Guarantee Fund" (F.G.D.), which is managed by the company Seguros de Depósitos S.A. (SEDESA) and whose shareholders are the Central Bank and the financial institutions in the proportion determined for each of them by that agency on the basis of contributions made to such fund.

  1. Enforced on January 20, 2019, pursuant to provision "A" 6435, such exclusions are as follows: Sight deposits with agreed-upon rates exceeding reference rates and term deposits and investments exceeding 1.3 times such rate. Reference rates are released on a regular basis by the Argentine Central Bank in accordance with a mobile average of the last five banking business days of passive rates that may arise for term deposits of up to 100 (or its equivalent in other currencies) from the survey to be carried out by said institution.

9.2. RESTRICTED ASSETS

As of June 30, 2020 and December 31, 2019 Grupo Supervielle's following assets are restricted:

Detail

06/30/2020

12/31/2019

Other receivables from financial transactions

Special guarantee accounts in the Argentine Central Bank

2,855,992

2,408,939

2,855,992

2,408,939

Miscellaneous Receivables

Trust guarantee deposits

13,385

3,800

Guarantee deposits for currency forward transactions

608,171

2,456,803

Guarantee deposits for credit cards transactions

364,896

317,525

Guarantee deposits for repo transactions

64,396

23,880

Other guarantee deposits

185,864

160,831

1,236,712

2,962,839

9.3. COMPLIANCE OF PROVISIONS ISSUED BY THE NATIONAL SECURITIES COMMISSION

Pursuant to General Ruling N° 629 issued by the National Securities Commission, supporting documentation of our accounting and administration operations for the financial years 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 and

36

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

until June30, 2020, the accounting books since September 2012 up to date and all corporate books are safeguarded in the registered headquarters.

Any other documentation or book, older than the date specified above for each case, is safeguarded by the firm AdeA S.A., whose warehouse is located on Ruta Provincial N°36, Km 31,500, Bosques, Partido de Florencio Varela, Buenos Aires Province.

9.4. ISSUANCE OF NEGOTIABLE OBLIGATIONS Banco Supervielle S.A.

The following describes issuances in force as of June 30, 2020 and December 31, 2019:

Issuance

Curren

Nro. of

Amount

Amortization

Term

Maturity date

Rate

Book Value

date

cy

Class

06/30/2020

12/31/2019

Floating Badlar

50% on 2-9-2020 and

of Private

Banks +

02/09/17

$

A

4,150,140

50% at maturity on 8-9-

42

08/09/2020

1,535,708

4.321.476

4.50%. with a

2020

minimum 18%

nominal annual

3 installments:

12/22/17

$

C

659,750

12-22-2020 33.33%.

48

12/22/2021

Floating Badlar

664,859

757.860

06-22-2021 33.33%. and

+ 4.25%

upon maturity 33.34%.

3 equal and consecutive

Floating Badlar

02/14/18

$

E

1,607,667

annual installments. 1°

60

02/14/2023

of Private

1,565,401

1.816.824

02-14-21

Banks + 4.05%

06/30/20

u$s

G

30,000,000

Quarterly: 12-22-20, 06-

12

06/30/2021

2% Nominal

2,108,969

-

22-21,06-30-21

Annual

Total

5,874,937

6,896,160

As of June 30, 2020, the Group held Negotiable Obligations in its own portfolio, issued by Banco Supervielle S.A., in the amount of 360,847.

The following chart provides the main terms and conditions of issuances underway as of June 30, 2020 and December 31, 2019:

Issuance date

Currency

Nro. of

Amoun

Amortization

Term

Maturity

Rate

Book Value

Class

t

date

06/30/2020

12/31/2019

08/20/2013

US$

III

22,500

100% at mat,

84 Months

08/20/2020

7%

1,534,837

1.486.019

11/18/2014

US$

IV

13,441

100% at mat,

84 Months

11/18/2021

7%

954,869

922.033

Total

2,489,706

2,408,052

Micro Lending S.A.U.: Program for the Issuance of Negotiable Obligations

The following is a detail of the issues in effect as of June 30, 2020 and December 31, 2019:

Class

Issuance

Maturity

FV (in

Rate

06/30/2020

12/31/2019

Date

Date

thousands)

Clase III

10/04/2017

10/05/2020

35,000

Floating BADLAR + 7,0%

7,781

17,672

Total

7,781

17,672

9.5. FINANCIAL TRUSTS

The detail of the financial trusts in which The Entity acts as Trustee or as Trustee is summarized below:

As Trustee:

Banco Supervielle S.A.

Below is a detail of financial trusts:

Below is a detail of the Guarantee Management trust where the Bank acts as a trustee as of June 30, 2020:

37

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Indenture

Original

Principal

Financial trust

executed

Due of principal obligation

principal

Beneficiaries

Settlers

balance

on

amount

The Term of this Trust Fund

Contract will be in force over

Those initially mentioned in

24 months as from 09/12/2018,

Exhibit V (DISERVEL S.R.L.,

or until the expiration of

INGENIAS S.R.L,

liabilities through

Fideicomiso de

GEOTECNIA (INV.

Disbursements (Termination

Administración

CALVENTE), NEWEN

Date"). 30 days (thirty days)

Interconexión

INGENIERIA S.A., INGICIAP

Interconexion

after the maturity of this Trust

500 KV ET

09/12/2018

-

-

S.A., MERCADOS

Electrica Rodeo

Agreement without the parties'

Nueva San Juan

ENERGETICOS, DISERVEL

S.A.

having agreed upon an

- ET Rodeo

S.R.L.) and providers of works,

Extension Commission, the

Iglesia

goods and services included in

Trustor of the trust account

the Project to be assigned by

shall receive USD 6,000 (six

the Trustee with prior consent

thousand US Dollars) at the

of the Trustor

exchange rate in force in Banco

Supervielle as a fine.

As Settler

Banco Supervielle S.A.(Supervielle Créditos Financial Trust)

On Febriary 29, 2020 the Fideicomiso Financiero Supervielle Créditos 97, whose trutee is TMF Trust Company (Argentina) S.A. was re-included in the Bank´s loan portfolio for an amount of 84,419,269, such trust fund did not conatin PC.

Cordial Compañía Financiera S.A.(Cordial Compañía Financiera Financial Trust)

Assets in Trust:Personal Loans

Trustee:Equity TMF Trust Company (Argentina) S.A.

Financial Trust

Set-ip on

Initial Amount in

Securities issued

Trust

Participation

Debt Securities

Certificates

21

06/24/2019

1,000,000

780,000

220,000

22

11/13/2019

571,560

102,300

469,260

Micro Lending S.A.U.(Financial Trust Micro Lending)

The following are financial trusts where Micro Lending S.A.U acts as settler:

Financial

Set-up on

Securitized

Issued Securities

Trust

Amount

Type

Amount

Type

Amount

Type

Amount

III

06/08/2011

$ 39,779

VDF TV A

VN$ 31,823

VDF B

VN $ 6,364

CP

VN $ 1,592

Mat: 03/12/13

Vto: 11/12/13

Vto: 10/12/16

VDF TV A

VDF B

CP

IV

09/01/2011

$ 40,652

Mat: 06/20/13

VN$ 32,522

Vto: 10/20/13

VN $ 6,504

Vto: 01/20/17

VN $ 1,626

Mat: 06/15/18

Vto: 08/15/18

Vto: 11/15/21

XVIII

12/01/2017

$ 119,335

VDF TV A

VN$ 89,501

VDF TV B

VN $ 7,291

CP

VN $

Mat : 05/15/19

Vto: 08/15/19

Vto: 10/15/22

22,543

9.6. RESTRICTIONS IMPOSED ON THE DISTRIBUTION OF DIVIDENDS

Pursuant to regulations set by the Argentine Central Bank, 20% of the profits for the year, net of possible prior year adjustments, where applicable, are to be allocated to the Legal Reserve.

Pursuant to the amended text on distributions of dividends, financial entities shall comply with a series of requirements, as follows: i) They shall not be subject to the provisions of Sections 34 and 35 bis of the Financial Institutions Law; ii) No liquidity assistance loans shall have been granted to them; iii) they shall be in compliance with information regimes;

  1. they shall not record shortfalls in the compiled minimum capital (without computing for such purposes the effects of the individual exemptions granted by the Superintendence of Financial and Foreign Exchange Institutions) or minimum cash, v) they shall have complied with additional capital margin when applicable.

38

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

The entities not facing any of these situations may distribute dividends in accordance with provisions set forth in said amended text, provided the entity´s liquidity or solvency is not jeopardized.

It is worth to be mentioned that pursuant to Communication "A" 6464 issued by the Argentine Central Bank, until March 31, 2020, financial entities, which, for the purpose of determining the distributable result, have not applied the additional on capital margins shall rely on previous authorization issued by the SEFyC.

On August 30, 2019 and with the purpose of stabilizing the exchange market, the Argentine Central Bank issued Communication "A" 6768, pursuant which financial entities shall rely on the previous authorization of Exchange and Financial Entities Superintendence before distributing its income. Over the course of such authorization process, the Comptroller Entity will assess, among other items, potential effects of the application of international accounting standards pursuant to Communication "A" 6430 (Paragraph 5.5 of IFRS 9 - Detriment of financial assets value) as well as the effects of the re-expression of financial statements pursuant to Communication "A" 6651.

On March 19, 2020 the Argentine Central Bank issued Communication "A" 6939 by means of which the suspension of income distribution of financial entities was made effective until June 30, 2020.

Later, on June 4, 2020, through Communication "A" 7035, the Argentine Central Bank postponed such suspension in the distribution of income until December 31, 2020.

9.7. ACCOUNTS IDENTIFYING MINIMUM CASH INTEGRATION COMPLIANCE

As of June 30, 2020 and December 31, 2019, the minimum cash reserve was made up as folllows:

Item

06/30/2020

12/31/2019 (*)

Current accounts in the Argentine Central Bank

10,606,616

8,554,797

Sight accounts in the Argentine Central Bank

8,107,611

7,909,938

Special guarantee accounts in the Argentine Central

Bank

2,669,604

1,975,535

Special accounts for previous credit payment

290,249

1,836

Total

21,674,080

18,442,106

(*) Historical values without inflation adjustment

It is worth mentioning that on those dates, the Group was in compliance with minimum cash integration requirements.

10. CONTRACT AS A FINANCIAL AGENT BY THE PROVINCE OF SAN LUIS

On January 17, 2017, Banco Supervielle S.A. received a communication from the Ministry of Public Treasury of the Province of San Luis giving notice of the termination of the Financial Agent Contract that Banco Supervielle has with the Province, effective as of February 28, 2017. The communication also states that, without prejudice to the exercise of the right to terminate the contract, the Province may continue to operate with the Bank until a new financial agent is selected.

Since February 2017, the Bank has continued rendering financial services to the Government of San Luis Province and its employees.

On June 7, 2018, the Province ratified said agreement over a 12-month period, thus regularizing the Bank´s role as exclusive payment agent, which has not been interrupted since 20 years ago. Such agreement has been renewed several times and according to the last renewal signed, it expires on August 30, 2020.

In January 2019, the government of San Luis Province disclosed the terms and conditions of the auction to be held by the Province for the new financial agent agreement. The Bank submitted its offer on March 15, 2019. Only two offers were submitted. On December 6, 2019, the Government of San Luis issued Decree N°8589 by means of which the auction was closed without assigning such financial agent agreement.

As of these financial statements, the Bank continues rendering financial services to the government of San Luis province and its employees.

11. FINANCIAL RISK FACTORS

There have been no significant changes in policies related to the administration of risks the Group may be exposed to regarding financial statements as of December 31, 2019 and in Note1.2.

12. INTERNATIONAL FINANCING PROGRAMS

39

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

Banco Supervielle S.A. keeps active the The Foreign Trade Financing Facilitation Program of the Inter-American Development Bank (IDB), whose line amounts to USD 20,000,000 (USD 20 million).

In turn, in September 2019, the Entity was granted a senior non-guaranteed syndicated loan for USD 80,000,000 (eighty million US Dollars) at a three-year term and a Libor interest rate +3.40% by the FMO, the Dutch development bank, as organizer, and Proparco, a subsidiary of the French Development Agency. Such funds were immediately allocated among Small and Medium Size Companies Clients of our portfolio who run their businesses in regional exporting economies in different sectors.

It is worth to be mentioned that such agreement is subject to the compliance of certain financial covenants, certain "do and do not do" conditions as well as certain reporting requirements.

As of December 31, 2019, the Entity did not meet the non-performing loan ration nor the coverage. Therefore, on January 29, 2020, the Entity started the process to receive a waiver with BID, which was made effective on February 18, 2020. As a result of such waiver, BID waives its right to accelerate such debt resulting from the breach in non-performing loan ratios and coverage ratios over a period that started on October 1, 2019 and finished in December 31, 2019. Likewise, on April 16, 2020 and August 11, 2020 new exemptions were requested thus extending the agreed terms until December 31, 2020.

13. IMPACT OF COVID-19 ON SOCIETY OPERATIONS

On December 2019, a new strain of coronavirus (COVID-19) appeared in Wuhan, China. Since then, COVID-19 has been extended over more than 100 countries, including Argentina. On March 11, 2020, the World Health Organization declared COVID-19 pandemic. The pandemic is likely to produce an economic slowdown of a potentially long duration and a global recession is likely to take place.

Since February 2020, the Argentine Government has adopted different measures in response to a COVID-19 outbreak in the country aimed at preventing a massive infection, including the Argentine borders closing, the suspension of domestic flights and, since March 19, 2020, the mandatory lockdown in the whole country; thus allowing only exceptional and essential activities. On May 11, 2020, certain non-essential activities were added gradually, with certain differences between each Province and Buenos Aires City. Banking activities have been considered essential activities since April 11, 2020; thus, opening branches only with previous appointment. From March 20 to April 10, 2020, branches had been closed with exclusive attention for pensioners' specific dates. During such period, banking activities were carried out only through digital channels.

During such time, all transactions were processed almost exclusively through digital channels. We also requested our administrative and back-office employees to do home office; thus, providing them with the necessary hardware infrastructure and remote access, while commercial branches operate under additional safety measures to protect the health of both its clients and employees.

With the purpose of mitigating the isolation-related economic impact, the Central Bank issued a series of preventive measures that include the following:

  • Communication "A" 6937 reduced position restriction over the maximum position in liquidity bills of the Argentine Central Bank (LELIQ) with the purpose of making liquidity available and encouraging credit line provisions for Small and Medium Size Companies at a preferential rate (Not exceeding the 24% annually). Communication "A" 7054 modifies the standards on Minimum Cash" due to the authorization of financing lines at a 24% subsidized rate, which includes a special tranche for investments in national capital goods and another tranche with minimum requirements for companies that have not had access to banking loans. As from July 1, 2020, "Medium and Small Size Clients" are included in item of "Decrease of minimum cash demand in average in pesos" provided such funds are allocated in the acquisition of machinery and equipment produced for national Small and Medium Size companies, among other modifications. As of these financial statements issuance, loans of 24% rates and 0% rates have been granted for 7,095 million and 264 million respectively.
  • Communications "A" 6942 and "A" 6949, determined that the postponement of the maturity of loans granted by local financial institutions that would become effective on March 20 and April 12, and cancelled any punitive interest over unpaid balances in loans granted by financial entities. Communication "A" 7044 extended regulations on maturities for loans granted by local financial entities until September 30 and unpaid installments are deferred until such loans life termination.
  • Communication "A" 6939 also suspended, until June 30, 2020, the distribution of dividends for financial entities. Such measure was extended through Communication "A" 7035 until December 31, 2020.

40

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

  • Communication "A" 6945 established that, until June 30, 2020, any operation carried out through ATMs shall not be subject to any charge or commission. Communication "A" 7044 extended such term until September 30, 2020.
  • Communication "A" 6964 determined that unpaid balance of credit card financing to be registered between April 13, 2020 and April 30, 2020. Such balances will be refinanced automatically over at least one year with three- month grace period in 9 monthly equal and consecutive installments. Likewise, pursuant to Communication "A" 6993 dated on April 24, 2020, the Argentine Central Bank established a zero-interest-rate financing policy, applicable only to eligible clients to be defined by AFIP in the future. Additionally, through Communication "A" 7082 opened the possibility of granting "Zero Culture Rate Loans" at 24 months under a 12-month grace period.
  • Decree 312/2020 issued by the Argentine Central Bank suspended the closing of bank accounts. Through Decree 544/2020 issued on July 1, 2020, the Argentine Central Bank extended until December 31, 2020, the suspension on the obligation of closing and disqualification of bank accounts set by Article 1° of Law 25,730, as well as the application of fines included in such law.
  • Communication "A" 6980 established that non-adjustable term deposits under ARS 1 million made up by individuals as from April 20, 2020, will entail a minimum rate of 70% of the LELIQ average auction. Communication "A" 7018 extended the scope of such measure over all term deposits regardless of their minimum amount. Later, Communication "A" 7027 increased the minimum rate equivalent to 79% LELIQ average auction. And, as from August 1, 2020, an additional increase from such 79% to an 87% was set for term deposits of individuals exceeding the ARS 1 million.

Some of these measures may affect negatively our income, while isolation consequences for the economic activity may affect some of our clients´payment capacity regarding their loans; thus, increasing credit loss provisions. However, how much our business will be affected will depend on future events, which highly uncertain and cannot be forecasted. Certain factors that may compensate such negative impacts, include (i) the reduction of funding cost, which has decreased since the beginning of the pandemic crisis and (ii) the structure of our liabilities, over which we believe will not produce any liquidity restrictions resulting from the pandemic.

41

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE A - DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS, OTHER DEBT SECURITIES, EQUITY INSTRUMENTS

As of June, 30 2020 and December 31, 2019:

HOLDING

POSITION

Item

Fair value

Level of fair

Book value

Book value

Without

Options

Final Position

value

06/30/2020

12/31/2019

options

DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

Argentine

Government Securities

Treasury Bill $ disc. Mat. 08/13/20

1

509,513

-

509,513

-

509,513

Treasury Bill $ Mat. 09/11/20

1

472,750

-

472,750

-

472,750

National Treasury Bond $ Aj. CER 03/25/24

1

291,016

-

291,016

-

291,016

Treasury Bill $ disc. Mat. 07/13/20

1

271,553

-

271,553

-

271,553

Argentine National Bonus U$S 8% Bonar 2020

1

226,882

-

226,882

-

226,882

Argentine National Bonus $ Badlar+200 04/03/2022

1

214,612

-

214,612

-

214,612

Trasury Bill $ Cap. Mat.04/30/20

1

195,881

-

195,881

-

195,881

Discount Securities Denominated in pesos

1

120,874

-

120,874

-

120,874

Argentine Bonus U$S 7.125% 06/28/2117

1

118,095

-

118,095

-

118,095

Treasury Bill $ disc. Mat.07/31/20

1

105,765

-

105,765

-

105,765

Argentine National Bonus 2.5% $ 07/22/2021 (TC21)

1

4,521

17,026

4,521

-

4,521

Bocon - Consolidation Bonus $ 8 serie (PR15)

1

6,966

21,397

6,966

-

6,966

Others

1

567,918

497,820

567,918

-

567,918

Central Bank Bills

Liquidity Central Bank Bills Mat. 07/02/20

1

163,834

-

163,834

-

163,834

Liquidity Central Bank Bills Mat.07/16/20

1

13,788

-

13,788

-

13,788

Corporate Securities

On Ypf S.A Cl.5 $ Mat.01/24/21 CG

1

165,292

-

165,292

-

165,292

On Pan American Energy $ 12 Mat.11/19/20 CG

2

104,790

-

104,790

-

104,790

Vcp Pyme Catalinas Coop.3 V04/12/20 $ CG

3

-

2,945

-

-

0

Others

1

53,881

106,591

53,881

-

53,881

Total Debt Securities at Fair value through profit or loss

3,607,931

645,779

3,607,931

-

3,607,931

OTHER DEBT SECURITIES

Measured at fair value through profit or loss

Argentine

Government Securities

Treasury Bonus $ Aj. CER 1,50% Mat.03/25/24

1

632,956

-

1,103,492

-

1,103,492

Treasury Bonus $ Aj. CER 1,40% Mat.03/25/23

1

320,258

-

501,258

-

501,258

Treasury Bonus $ Aj. CER 1,20% Mat.03/18/22

1

237,685

-

237,685

-

237,685

Treasury Bills $ Mat.09/18/2020

1

202,858

-

202,858

-

202,858

Treasury Bonus $ Aj. CER 1,30% Mat.09/20/22

1

102,122

-

102,122

-

102,122

Treasury Bills $ Mat..12/22/2020

1

27,016

-

27,016

-

27,016

Centrak Bank Bills

42

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

HOLDING

POSITION

Item

Fair value

Level of fair

Book value

Book value

Without

Options

Final Position

value

06/30/2020

12/31/2019

options

Liquidity Central Bank Bills Mat 07/07/20

2

17,888,256

-

17,888,256

-

17,888,256

Liquidity Central Bank Bills Mat.07/08/20

2

17,373,388

-

17,373,388

-

17,373,388

Liquidity Central Bank Bills Mat.07/02/20

2

10,489,080

-

10,489,080

-

10,489,080

Liquidity Central Bank Bills Mat.07/14/20

2

4,933,230

-

4,933,230

-

4,933,230

Liquidity Central Bank Bills Mat.07/21/20

2

2,857,126

-

2,857,126

-

2,857,126

Liquidity Central Bank Bills Mat.07/28/20

2

1,674,611

-

1,674,611

-

1,674,611

Liquidity Central Bank Bills Mat 07/23/20

2

1,308,983

-

1,308,983

-

1,308,983

Liquidity Central Bank Bills Mat 07/16/20

2

984,624

-

984,624

-

984,624

Liquidity Central Bank Bills Mat 01/07/20

2

-

6,174,767

-

-

-

Liquidity Central Bank Bills Mat 01/08/20

2

-

1,042,830

-

-

-

Liquidity Central Bank Bills Mat 01/03/20

2

-

617,112

-

-

-

Liquidity Central Bank Bills Mat 01/06/20

2

-

282,874

-

-

-

Liquidity Central Bank Bills Mat 01/02/20

2

-

28,355

-

-

-

Corporate Securities

Others

32

36

32

-

32

Measured at amortized cost

Argentine

Government Securities

National Treasury Bond Tf Mat. 11/21/2020

4,377,440

3,510,226

4,377,440

-

4,377,440

Treasury Bonus $ Fix Rate 22% Mat.05/21/22

460,407

-

460,407

-

460,407

Argentine Sovereign Bond. $ Badlar+200 04/03/2022

241,509

-

241,509

-

241,509

Treasury Bill $ Vto. 09/18/2020

298,765

-

35,631

-

35,631

Treasury Bill $ Mat. 12/22/2020

35,610

-

35,610

-

35,610

Treasury Bill U$S Mat. 02/28/2020

4

3

4

-

4

Others

887

-

887

-

887

Corporate securities

Ohers

3,235

465,976

3,235

-

3,235

Total other debt securities

64,450,082

12,122,179

64,838,484

-

64,838,484

EQUITY INSTRUMENTS

Measured at fair value through profit and loss

Argentine

Grupo Financiero Galicia SA

1

20,135

6,584

20,135

-

20,135

Pampa Energía S.A.

1

10,189

-

10,189

-

10,189

Banco Macro SA

1

2,101

-

2,101

-

2,101

Loma Negra S.A.

1

1,332

-

1,332

-

1,332

Transp. De Gas Del Sur

1

609

-

609

-

609

Ternium Arg S.A.Ords."A"1 Voto Esc

1

519

-

519

-

519

Central Puerto S.A. Ord. 1 voto Esc

1

179

-

179

-

179

Measured at fair value with changes in OCI

43

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

HOLDING

POSITION

Item

Fair value

Level of fair

Book value

Book value

Without

Options

Final Position

value

06/30/2020

12/31/2019

options

Argentine

Ohers

8,939

9,977

8,939

-

8,939

Total equity instruments

44,003

16,561

44,003

-

44,003

Total

68,102,016

12,784,519

68,490,418

-

68,490,418

44

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE B - CLASSIFICATION OF LOANS AND OTHER FINANCING CREDIT ACCORDING TO STATUS AND COLLATERAL RECEIVED

As of June 30, 2020 and December 31, 2019 balances of loans and other financing are the following:

06/30/2020

12/31/2019

COMMERCIAL PORTFOLIO

Normal situation

41,372,402

46,175,100%

-With "A" Preferred Collateral and Counter-guarantees

2,004,752

1,396,131

-With "B" Preferred Collateral and Counter-guarantees

8,151,297

9,889,184

- Without Preferred Collateral nor Counter-guarantees

31,216,353

34,890,481

Subject to special monitoring

- Under Observation

1,194,666

276,365

-With "A" Preferred Collateral and Counter-guarantees

17,952

12,132

-With "B" Preferred Collateral and Counter-guarantees

1,044,936

156,336

- Without Preferred Collateral nor Counter-guarantees

131,778

107,897

With problems

180,209

113,538

-With "A" Preferred Collateral and Counter-guarantees

3,578

6,966

-With "B" Preferred Collateral and Counter-guarantees

124,665

42,852

- Without Preferred Collateral nor Counter-guarantees

51,966

63,720

High risk of insolvency

3,664,233

4,088,910

-With "A" Preferred Collateral and Counter-guarantees

-

21,474

-With "B" Preferred Collateral and Counter-guarantees

1,504,564

1,583,468

- Without Preferred Collateral nor Counter-guarantees

2,159,669

2,483,968

Uncollectible

11,591

24,231

-With "A" Preferred Collateral and Counter-guarantees

-

-

-With "B" Preferred Collateral and Counter-guarantees

1,638

1,762

- Without Preferred Collateral nor Counter-guarantees

9,953

22,469

TOTAL COMMERCIAL PORTFOLIO

46,423,101

50,678,840

45

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE B - CLASSIFICATION OF LOANS AND OTHER FINANCING CREDIT ACCORDING TO STATUS AND COLLATERAL RECEIVED

06/30/2020

12/31/2019

CONSUMER AND HOUSING PORTFOLIO

Normal situation

54,325,181

51,829,837

-With "A" Preferred Collateral and Counter-guarantees

1,814,742

789,643

-With "B" Preferred Collateral and Counter-guarantees

6,308,779

7,030,581

- Without Preferred Collateral nor Counter-guarantees

46,201,660

44,009,613

Low Risk

764,212

1,859,547

-With "A" Preferred Collateral and Counter-guarantees

66,778

103,121

-With "B" Preferred Collateral and Counter-guarantees

69,971

226,445

- Without Preferred Collateral nor Counter-guarantees

627,463

1,529,981

Medium Risk

829,

1,508,146

-With "A" Preferred Collateral and Counter-guarantees

30,218

53,155

-With "B" Preferred Collateral and Counter-guarantees

67,981

146,530

- Without Preferred Collateral nor Counter-guarantees

731,248

1,308,461

High Risk

1,201,570

1,919,007

-With "A" Preferred Collateral and Counter-guarantees

31,669

27,260

-With "B" Preferred Collateral and Counter-guarantees

152,088

110,037

- Without Preferred Collateral nor Counter-guarantees

1,017,813

1,781,710

Uncollectible

434,448

335,308

-With "A" Preferred Collateral and Counter-guarantees

13,732

5,668

-With "B" Preferred Collateral and Counter-guarantees

112,926

79,023

- Without Preferred Collateral nor Counter-guarantees

307,790

250,617

Uncollectible classified as such under regulatory requirements

-

2,180

-With "A" Preferred Collateral and Counter-guarantees

-

-

-With "B" Preferred Collateral and Counter-guarantees

-

-

- Without Preferred Collateral nor Counter-guarantees

-

2,180

TOTAL CONSUMER AND HOUSING PORTFOLIO

57,554,858

57,454,025

TOTAL GENERAL(1)

103,977,959

108,132,865

The preceding note includes the classification of loans using the debtor classification system of the Central Bank of the Argentine Republic (DCS). The forecasts and guarantees granted are not included.

  1. Conciliation with Statement of Financial Position:

Loans and other financing

95,711,142

100,984,231

Other debt securities

64,450,082

12,122,179

Computable items out of balance

(56,183,265)

(4,973,545)

plus allowances

7,760,135

6,660,618

plus IFRS adjusments non computable for DCS

478,567

494,125

less non deductible ítems for DCS

(4,318)

(6,149)

less Debt securities measured at amortized cost

(64,417,649)

(12,122,139)

Total

103,977,959

108,132,865

46

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE C - CONCENTRATION OF LOANS AND OTHER FINANCING

As of June 30, 2020 and December 31, 2019 the concentration of leans and other financing are the following:

Loans and other financing

Number of Clients

06/30/2020

12/31/2019

Balance

% over total

Balance

% over total

portfolio

portfolio

10 largest customers

13,103,575

12.6%

13,740,086

12.7%

50 following largest customers

18,094,374

17.4%

19,223,455

17.8%

100 following largest customers

9,723,864

9.4%

10,394,237

9.6%

Rest of customers

63,056,146

60.6%

64,775,087

59.9%

TOTAL

103,977,959

100.0%

108,132,865

100.0%

47

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE D - BREAKDOWN OF TOTAL LOANS AND OTHER FINANCING

As of June 30, 2020 the breakdown of leans and other financing are the following:

Past due

Remaining terms for maturity

Item

Up to 24

Total

portfolio

1 month

3 months

6 months

12 months

24 months

months

Non-financial Public Sector

-

178,220

4,067

6,316

13,298

29,924

5,528

237,353

Financial Sector

-

27,967

254,501

7,842

25,336

8,437

-

324,083

Non-financial private sector

17,767,509

54,463,894

29,868,881

26,363,355

46,495,420

40,760,541

86,777,992

302,497,592

and residents abroad

TOTAL

17,767,509

54,670,081

30,127,449

26,377,513

46,534,054

40,798,902

86,783,520

303,059,028

48

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE F - PROPERTY, PLANT AND EQUIPMENT

Changes in property, plant and equipment as of June 30, 2020 and December 31, 2019, are as follows:

At the

Useful

Depreciation

Net carrying

Item

beginning of

Additions

Disposals

Of the

At the end of

life

Accumulated

Disposals

06/30/2020

12/31/2019

the year

period

the period

Cost model

Furniture and facilities

1,228,326

10

25,305

(114,215)

(933,344)

114,213

(43,721)

(862,852)

276,564

294,982

Machinery and equipment

3,501,449

10

145,422

(208,137)

(3,041,385)

207,978

(121,854)

(2,955,261)

483,473

460,064

Vehicles

196,624

5

9,018

(14,803)

(84,307)

8,724

(17,666)

(93,249)

97,590

112,317

Right of Use of Leased

1,708,199

50

509,124

(369,230)

(643,560)

347,720

(328,820)

(624,660)

1,223,433

1,064,639

Properties

Construction in progress

545,445

-

20,987

(60,443)

-

-

-

-

505,989

545,445

Revaluation model

Land and Buildings

2,168,174

50

637,300

(6,588)

(99,531)

3,062

(27,667)

(124,136)

2,674,750

2,068,643

Total

9,348,217

1,347,156

(773,416)

(4,802,127)

681,697

(539,728)

(4,660,158)

5,261,799

4,546,090

The movements in investment properties as of June 30, 2020 and December 31, 2019 are as follows:

At the

Useful

Net carrying

Item

beginning of

Disposals

life

06/30/2020

12/31/2019

the year

Measurement at fair value

Rent building

4,605,912

50

(621,021)

3,984,891

4,605,912

Total

4,605,912

(621,021)

3,984,891

4,605,912

49

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE G - INTANGIBLE ASSETS

Intangible assets of the Group as of June 30, 2020 are as follows:

Depreciation

Net carrying

At the

Useful

Item

beginning of

Additions

Disposals

At the

life

Of the

At the end of

the year

beginning of

Disposals

06/30/2020

12/31/2019

period

the period

the year

Measurement at cost

Goodwill

3,058,834

-

-

-

-

-

-

-

3,058,834

3,058,834

Brands

166,875

-

-

-

-

-

-

-

166,875

166,875

Other intangible assets

3,265,677

-

312,433

(11,162)

(1,524,501)

661

(322,619)

(1,846,459)

1,720,489

1,741,176

TOTAL

6,491,386

-

312,433

(11,162)

(1,524,501)

661

(322,619)

(1,846,459)

4,946,198

4,966,885

Depreciation for the year is included in the line "Depreciations and impairment of non-financial assets" in the statement of comprehensive income.

50

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE H - CONCENTRATION OF DEPOSITS

As of June 30, 2020 and December 31, 2019 the concentration of deposits are the following:

Deposits

Number of customers

06/30/2020

12/31/2019

Placement

% over total

Placement

% over total

Balance

portfolio

Balance

portfolio

10 largest customers

46,784,716

29.5%

13,533,437

13.4%

50 following largest customers

27,401,139

17.3%

13,315,981

13.2%

100 following largest customers

8,198,887

5.2%

6,825,633

6.8%

Rest of customers

76,219,497

48.1%

67,432,330

66.7%

TOTAL

158,604,239

100.0%

101,107,381

100.0%

51

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE I - BREAKDOWN OF FINANCIAL LIABILITIES FROM REMAINING TERMS

As of June 30, 2020:

Remaining terms for maturity

Item

1 month

3 months

6 months

12 months

24 months

Up to 24

Total

months

Deposits

Non-financial public sector

4,812,774

291,849

55,061

-

-

-

5,159,684

Financial sector

18,656

-

-

-

-

-

18,656

Non-financial private sector and residents

124,795,166

15,427,463

17,331,646

2,433,375

2,763

-

159,990,413

abroad

Liabilities at fair value through profit

113,041

-

-

-

-

-

113,041

and loss

Repo operations

644,149

-

-

-

-

-

644,149

Other financial liabilities

9,087,585

274,769

280,612

360,530

511,171

488,933

11,003,600

Financing received from the Argentine

Central Bank and other financial

264,422

1,515,228

5,866,719

228,610

397,566

114,220

8,386,765

institutions

Negotiable Obligations issued

-

1,265,046

418,735

3,262,772

1,393,570

933,258

7,273,381

Subordinated negotiable obligations

-

1,641,336

33,881

33,329

980,868

-

2,689,414

TOTAL

139,735,793

20,415,691

23,986,654

6,318,616

3,285,938

1,536,411

195,279,103

52

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE L - ASSETS AND LIABILITIES IN FOREIGN CURRENCY

As of June 30, 2020 and December 31, 2019:

Items

As of June 30, 2020

As of June 30, 2020 (per currency)

As of December 31,

Dollar

Euro

Real

Others

2019

ASSETS

Cash and Due from Banks

15,011,770

14,324,070

569,474

12,258

105,968

15,785,964

Debt securities at fair value through profit or

464,245

464,245

-

-

-

800,738

loss

Other financial assets

825,103

825,009

85

9

-

1,308,033

Loans and other financing

20,319,791

20,317,632

1,727

-

432

24,403,174

Other Debt Securities

68

68

-

-

-

74

Financial assets in guarantee

552,372

552,372

-

-

-

5,115,384

Other non-financial assets

139,892

139,892

-

-

-

203,640

TOTAL ASSETS

37,313,241

36,623,288

571,286

12,267

106,400

47,617,007

LIABILITIES

Deposits

20,066,584

19,665,990

400,594

-

-

26,508,974

Non-financial public sector

1,108,541

1,108,426

115

-

-

2,466,519

Financial sector

114

114

-

-

-

10,294

Non-financial private sector and foreign

18,957,929

18,557,450

400,479

-

-

24,032,161

residents

Liabilities at fair value through profit or loss

10,586

10,586

-

-

-

-

Other financial liabilities

5,294,427

5,165,988

122,572

10

5,857

4,647,984

Financing received from the Argentine Central

7,141,220

7,141,220

-

-

-

9,173,199

Bank and other financial institutions

Negotiable obligations Issued

2,108,969

2,108,969

-

-

-

-

Subordinated negotiable obligations

2,489,706

2,489,706

-

-

-

2,408,052

Other non-financial liabilities

339,562

339,562

-

-

-

387,423

TOTAL LIABILITIES

37,451,054

36,922,021

523,166

10

5,857

43,125,632

NET POSITION

(137,813)

(298,733)

48,120

12,257

100,543

4,491,375

53

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

SCHEDULE R - LOAN LOSS RISK PROVISIONS

The balance of loan loss risk provisions as of June 30, 2020 is presented below:

ECL of remaining life of the financial asset

Balances at the

ECL of the

FI

FI with credit

FI with credit

Monetary

significant

impairment

impairment

inocme

Items

beginning of

following 12

credit risk

either

produced by

fiscal year

months

increase

purchased or

provisions

produced

Other financial assets

281,007

(1,095)

-

158,864

(52,506)

386,270

Loans and other financing

Other financial entities

13,722

(12,759)

-

-

(115)

848

Non-financial private sector and

6,361,850

811,651

630,364

568,503

(1,001,894)

7,370,474

residents abroad

Advances

1,675,879

76,151

75,919

35,020

(222,936)

1,640,033

Documents

413,393

174,745

33,986

101,949

(86,647)

637,426

Mortgages

524,002

627,730

56,438

89,024

(155,230)

1,141,964

Pledge loans

110,633

(4,852)

21,174

(5,391)

(14,545)

107,019

Personal Loans

938,709

29,332

85,155

62,485

(133,511)

982,170

Credit cards

614,698

(80,300)

(1,054)

(76,298)

(54,692)

402,354

Financial lease

157,810

(28,434)

(33,119)

(192)

(11,496)

84,569

Others

1,926,726

17,279

391,865

361,906

(322,837)

2,374,939

Other debt securities

4,039

-

-

-

(484)

3,555

TOTAL PROVISIONS

6,660,618

797,797

630,364

727,367

(1,054,999)

7,761,147

Separate Condensed Interim Financial Statements

For the six-month period ended on

June 30, 2020, presented on comparative basis in homogeneous currency

55

GRUPO SUPERVIELLE S.A.

SEPARATE CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As of June 30, 2020 and December 31, 2019

(Expressed in thousands of pesos in homogeneous currency)

Notes and

06/30/2020

12/31/2019

Schedules

ASSETS

Cash and due from banks

2 and 8

11,579

135,742

Cash

4

2

Financial institutions and correspondents

Other local and foreign financial institutions

11,575

135,740

Other financial assets

2 amd 8

586,116

820,267

Other debt securities

8 and A

139,995

-

Current income tax assets

18,211

49,785

Investment in subsidiaries, associates and joint ventures

3

24,970,836

23,562,390

Property, plant and equipment

F

2,335

2,722

Intangible Assets

G

3,491,599

3,517,134

Other Non-financial assets

145,124

169,312

TOTAL ASSETS

29,365,795

28,257,352

LIABILITIES

Deferred income tax liabilities

273,593

480,882

Other Non-Financial Liabilities

288,417

299,253

TOTAL LIABILITIES

562,010

780,135

SHAREHOLDERS' EQUITY

Capital Stock

456,722

456,722

Capital adjustments

2,401,296

2,401,296

Paid in capital

27,764,641

27,764,641

Earnings Reserved

15,869,923

11,882,824

Retained earnings

(19,547,052)

(11,794,339)

Other comprehensive income

358,280

98,162

Net Income for the period

1,499,975

(3,332,089)

TOTAL SHAREHOLDERS' EQUITY

28,803,785

27,477,217

TOTAL NET LIABILITIES AND SHAREHOLDERS'

29,365,795

28,257,352

EQUITY

The accompanying notes and schedules are an integral part of the separate condensed interim financial statements.

56

GRUPO SUPERVIELLE S.A.

SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the six and three-month period ended on June 30, 2020 and 2019

(Expressed in thousands of pesos in homogeneous currency)

Six-month period ended on

Three-month period ended

Notes

on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

Interest income

4.1

2,391

66,142

2,386

22,726

Interest expenses

4.2

(26,839)

(1,725)

11,168

(1)

Net interest income

(24,448)

64,417

13,554

22,725

Net income from financial instruments at fair value through

4.3

144,997

209,072

37,592

112,092

profit or loss

Exchange rate difference on gold and foreign currency

70,998

(7,827)

65,998

9,172

NIFFI And Exchange Rate Differences

215,995

201,245

103,590

121,264

Subtotal

191,547

265,662

117,144

143,989

Other operating income

4.4

102,030

89,620

50,920

33,921

Result from exposure to changes in the purchasing power of the

10

301,262

28,118

(8,795)

currency

Net operating income

293,587

656,544

196,182

169,115

Personnel expenses

4.5

55,060

97,103

27,885

46,457

Administration expenses

4.6

147,455

84,005

102,885

54,788

Depreciation and impairment of non-financial assets

25,922

25,922

12,961

12,961

Other operating expenses

4.7

14,063

12,658

9,223

10,273

Operating income

51,087

436,856

43,228

44,636

Profit of subsidiaries and associates

4.8

1,341,122

(672,254)

864,369

817,445

Income before taxes

1,392,209

(235,398)

907,597

862,081

Income tax

(107,766)

336,554

(114,635)

7,802

Net income of the period

1,499,975

(571,952)

1,022,232

854,279

The accompanying notes and schdules are an integral part of the separate condensed interim financial statements.

57

GRUPO SUPERVIELLE S.A.

SEPARATE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

EARNING PER SHARE

For the six and three-month period ended on June 30, 2020 and 2019 (Expressed in thousands of pesos in homogeneous currency)

Item

Six-month period ended on

Three-month period ended on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

NUMERATOR

Net income for the period attributable to owners of the

parent company

1,499,975

(571,952)

1,022,232

854,279

PLUS: Diluting events inherent to potential ordinary

shares

-

-

-

-

Net income attributable to owners of the parent company

adjusted by dilution

1,499,975

(571,952)

1,022,232

854,279

DENOMINATOR

Weighted average of ordinary shares

456,722

456,722

456,722

456,722

PLUS: Weighted average of number of ordinary shares

-

-

-

-

issued with dilution effect.

Weighted average of number of ordinary shares issued of

456,722

456,722

456,722

456,722

the period adjusted by dilution effect

Basic Income per share

3.28

(1.25)

2.24

1.87

Diluted Income per share

3.28

(1.25)

2.24

1.87

The accompanying notes and schdules are an integral part of the separate condensed interim financial statements.

58

GRUPO SUPERVIELLE S.A.

SEPARTE CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the six and three-month period ended on June 30, 2020 and 2019 (Expressed in thousands of pesos in homogeneous currency)

Six-month period ended on

Three-month period ended

on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

Net income from the period

1,499,975

(571,952)

1,022,232

854,279

Components of Other Comprehensive Income not to be reclassified to

profit or loss

Income of the period from the participation of Other Comprehensive

260,118

(2,413)

310,898

(775)

income of associates and joint ventures recorded through the utilization of

the participation method

Total other comprehensive income

260,118

(2,413)

310,898

(775)

Total Comprehensive Income

1,760,093

(574,365)

1,333,130

853,504

Total comprehensive income attributable to parent company

1,760,093

(574,365)

1,333,130

853,504

The accompanying notes and schedules are an integral part of the separate condensed interim financial statements

59

GRUPO SUPERVIELLE S.A.

SEPARATE CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY

For the six-month period ended on June 30, 2020 and 2019 (Expressed in thousands of pesos in homogeneous currency)

Other comprehensive income

Earnings

or los

Capital

accrued by

Total

Capital

Paid in

Legal

Other

Retained

financial

Item

Stock

Revaluation of

shareholders´

Adjustments

capital

reserve

reserves

earnings

institutions

(Note 7)

PPE

equity

at FV

through

profit and

loss

Re-expressed Balance at December 31, 2019

456,722

2,401,296

27,764,641

159,620

11,723,204

(15,126,428)

92,426

5,736

27,477,217

Distribution of retained earnings by the shareholders' meeting on

April 28, 2020:

Constitution of reserves

-

-

-

-

4,420,624

(4,420,624)

-

-

-

Dividend distribution

-

-

-

-

(433,525)

-

-

-

(433,525)

Net Income for the period

-

-

-

-

-

1,499,975

-

-

1,499,975

Other comprehensive income for the period

-

-

-

-

-

-

-

260,118

260,118

Balance at June 30, 2020

456,722

2,401,296

27,764,641

159,620

15,710,303

(18,047,077)

92,426

265,854

28,803,785

Other comprehensive

income

Earnings

or los

Capital

Capital

Paid in

Legal

Other

Retained

accrued by

Total

Item

Stock

financial

shareholders´

Adjustments

capital

reserve

reserves

earnings

Revaluation

(Note 7)

institutions

equity

of PPE

at FV

through

profit and

loss

Re-expressed Balance at December 31, 2018

456,722

2,401,296

27,764,090

159,619

9,358,992

(8,290,061)

-

-

31,850,658

IFRS 9 Impact Adjustments

-

-

-

-

-

(610,593)

-

-

(610,593)

Balance at December 31, 2018

456,722

2,401,296

27,764,090

159,619

9,358,992

(8,900,654)

-

-

31,240,065

Other movements

-

-

551

-

-

-

-

-

551

Distribution of retained earnings by the shareholders' meeting on

April 26, 2019:

Constitution of reserves

-

-

-

-

2,044,660

(2,044,660)

-

-

-

Dividend distribution

-

-

-

-

(444,317)

-

-

(444,317)

Net Income for the period

-

-

-

-

-

(571,952)

-

(571,952)

Other comprehensive income for the period

-

-

-

-

-

-

(2,413)

(2,413)

Balance at June 30, 2019

456,722

2,401,296

27,764,641

159,619

11,403,652

(11,961,583)

-

(2,413)

30,221,934

The accompanying notes and schedules are an integral part of the separate condensed interim financial statements

60

GRUPO SUPERVIELLE S.A.

SEPARATE CONDENSED INTERIM STATEMENT OF CASH FLOW

For the six-month period ended on June 30, 2020 and 2019 (Expressed in thousands of pesos in homogeneous currency)

06/30/2020

06/30/2019

CASH FLOW FROM OPERATING ACTIVITIES

Net income for the period before Income Tax

1,392,209

(235,398)

Adjustments to obtain flows from operating activities:

Results of associates and join ventures

(1,341,122)

672,254

Depreciation and impairment

25,922

25,922

Exchange rate difference on gold and foreign currency

(70,998)

7,827

Interests from loans and other financing

(2,391)

(66,142)

Interests from deposits and financing

26,839

1,725

Result from exposure to changes in the purchasing power of the currency

(10)

(301,262)

Net income from financial instruments at fair value through profit or loss

(144,997)

(209,072)

(Increases) / decreases from operating assets:

Other debt securities

(492,503)

(630,947)

Other assets

496,870

1,390,782

Increases / (decreases) from operating liabilities:

Other liabilities

(10,841)

(163,596)

Income Tax paid

(67,949)

(592,215)

TOTAL OPERATING ACTIVITIES (A)

(188,971)

(100,122)

CASH FLOW FROM INVESTING ACTIVITIES

Payments:

Purchase of PPE, intangible assests and other assets

-

(13,769)

Dividends paid

(433,525)

(444,317)

Purchase of investments in subsidiaries

-

(229,479)

Contributions made to subsidiaries

(146,036)

(100%,387)

Collections:

Dividends collected

383,423

781,678

TOTAL INVESTING ACTIVITIES (B)

(196,138)

(702,274)

CASH FLOWS FROM FINANCING ACTIVITIES

Payments:

Changes in the ownership of subsidiaries that do not result in loss of control

-

554

Unsubordinated negotiable obligations

-

(50,693)

TOTAL FINANCING ACTIVITIES (C)

-

(50,139)

EFFECT OF CHANGES IN THE EXCHANGE RATE (D)

119,468

754,090

TOTAL CHANGES IN CASH FLOW

NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D)

(265,641)

(98,445)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD

955,055

1,425,948

(NOTE 8)

Result from exposure to changes in the purchasing power of the currency in cash

(93,054)

(460,655)

and equivalents

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (NOTE 8)

596,360

866,848

The accompanying notes and schedules are an integral part of the separate condensed interim financial statements

61

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of June 30, 2020 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

1. BASIS OF PREPARATION OF THE UNAUDITED SEPARATE CONDENSED INTERIM FINANCIAL STATEMENTS

Grupo Supervielle S.A. (hereinafter, "the Group"), is a company whose main activity is the investment in other companies. Its main income is given by the distribution of dividends of such companies and the raising of earnings of other financial assets.

The main investment of the Company accounts for the stake in Banco Supervielle S.A., a financial entity governed pursuant to Law N° 21,526 of Financial Statements and subject to provisions issued by the Argentine Central Bank, in virtue of which the entity has adopted valuation and disclosure guidelines pursuant to provisions included in Title IV, chapter I, Section I, article 2 of the Amended Text 2013 issued by the National Securities Commissions.

The issuance of these Consolidated Condensed Interim Financial Statements as of the three-month period ended on June 30, 2020 was passed by the Board of the Company over the course of its meeting held on August 20, 2020.

1.1. Preparation basis-

These condensed interim financial statements have been prepared pursuant to: (i) provisions set by Intenational Accounting Standards N° 34, "Interim Financial Information" (IAS 34) and (ii) the accouting information framework set by the Argentine Central Bank which is based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and interpretations issued by the International Financial Reporting Standards Interpretation Committee with the following exceptions:

  1. Temporary exception of IFRS 9 "Financial Instruments" application over debt instruments of the non- financial public sector,
  2. Temporary exception of the application of Section 5.5 (Value Impairment) for Group B entities, a category that includes Cordial Compañia Financiera S.A.. Therefore, provisions of the aforementioned entity are held under minimum provisions standards set by the Argentine Central Bank.

Pursuant to IAS 34, interim financial information shall include an explanation of events and transactions that have taken place as from the end of the last annual period being reported and are relevant for the understanding of changes in the financial situation, financial performance and cash flows of the Group with the purpose of relying on updated information as per the last financial statements of the fiscal year ended on December 31, 2019 ( hereinafter, "annual financial statements"). Given the aforementioned, these condensed interim financial statements do not include all the information to be required by complete financial statements prepared pursuant to International Financial Reporting Standards; hence, in virtue of a suitable understanding of the information included therein, such statements must be read jointly with annual financial statements.

The Group´s Board has concluded that these interim condensed financial statements reasonably express the financial position, financial performance and cash flows.

It is worth to be mentioned that interim condensed financial statements have been prepared by applying accounting policies and measurement criteria consistent with those applied by the Group for the preparation of annual financial statements, except for what has been set forth in Note 1.1.4.

The preparation of financial statements requires that the Group carries out calculations and evaluations that affect the amount of incomes and expenses recorded in the period. In this sense, calculations are aimed at the estimation of, for example, credit risk provisions, useful life of property, plant and equipment, impairments and amortizations, recoverable value of assets, income tax charges and the reasonable value of certain financial instruments. Future real results may defer from calculations and evaluations as of the date of these separate financial statements preparation.

As of these financial statements issuance date, such statements are pending of transcription to Inventory and Balance Sheet Book.

1.1.1 Going concern

As of the date of these separate condensed interim Financial Statements there are no uncertainties with respect to events or conditions that may raise doubts regarding the possibility that the Group continues to operate normally as a going concern.

62

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of June 30, 2020 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

1.1.2 Measuring unit

Figures included in these condensed interim financial statements are expressed in thousands of Argentine pesos, unless otherwise stated.

The Group´s interim condensed financial statements recognice changes in the currency purchasing power until August 31, 1995. As from such date, in virtue of existing economic stability conditions and pursuant to Communication "A" 2365 issued by the Argentine Central Bank, accounting measurements were not re-expressed until December 31, 2001. In virtue of Communication "A" 3702 issued by the Argentine Central Bank, the application of the method was resumed and became effective on January 1, 2002. Previous accouting measurements were considered to be expressed in the currency as of December 31, 2001.

Pursuant to Communication "A" 3921 issued by the Argentine Central Bank, in compliance with Decree 664/03 issued by the National Executive Power, the application of the re-expression of financial statements in homogeneous currency was interrupted as from March 1, 2003. Therefore, the Group applied said re-expression until February 28, 2003.

In turn, Law N° 27,468 (B.O. 04/12/2018) amended article 10° of Law N° 23,928 and its amendments, thus establishing that the abolition of all legal and regulating standards that set and authorize price indexing, monetary updating, cost changes or any other manner of re-increasing debts, taxes, prices or fees for goods, works or services does not include financial statements, regarding which the application of article 62 of the General Corporations Law N° 19,550 (T.O 1984) and its amendments shall prevail. Likewise, the aforementioned legal body set de abolition of Decree N° 1269/2002 dated on July 16, 2002 and its amendments and instructed the National Executive Power, through its controlling agencies, to set the date as from which said regulations became into effect in relation with financial statements to be submitted. Therefore, on February 22, 2019, the Argentine Central Bank issued Communication "A" 6651 which established that financial statements shall be prepared in a homogeneous currency as from January 1, 2020. Therefore, these condensed interim financial statements have been re-expressed as of June 30, 2020.

1.1.3 Comparative information

The information included in these condensed interim financial statements and in the aforementioned notes as of December 31, 2019 and June 30, 2019 is presented, exclusively with comparative purposes regarding the information as of June 30, 2020.

It is worth to be mentioned that, Communication "A" 6778, issued by the Argentine Central Bank, required the retroactive application of the impairment model set forth in section 5.5 of IFRS 9 with temporary withdrawal of non-financial public sector´s debt instruments and the re-expression of financial statements pursuant to IAS 29. In virtue of the aforementioned, the Group has applied the following:

  1. Retroactive re-expression of figures included in the Financial Situation as of December 31, 2019 for the purpose of submitting such figures as if the new accounting policies had been in force since January 1, 2019, and
  2. Retroactive re-expression of figures included in the Income Statement, Other Comprehensive Income and Changes in the Shareholders' Equity Statement as of June 30, 2019 for the purpose of submitting such figures as if the new accounting policies had been in force since January 1, 2019.

1.1.4 Changes in accounting policies and new accounting standards

With the approval of new IFRS, modifications or derogations of the standards in force, and once such changes are adopted through Adoption Bulletins issued by Federación Argentina de Consejos Profesionales en Ciencias Económicas (FACPCE), the Argentine Central Bank will determine the approval of such standards for financial entities. In general terms, no anticipated IFRS application shall be allowed unless upon adoption such anticipated measure is specified.

The following are changes that were made effective over the course of the quarter ended on June 30, 2020:

(a) Impairment of financial assets

Pursuant to Communication "A" 6430 and 6847 Financial Entities shall start to apply provisions on Financial Assets Impairment included in paragraph 5.5 of IFRS 9 as from fiscal years starting on January 1, 2020, except for Non-financial Public Sector´s debt securities, which shall be temporarily excluded from the scope of said provisions. Likewise, Communication "A" 6990 issued by the Argentine Central Bank set the postponement of the application of the section

63

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of June 30, 2020 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

targeted to "B" group Companies until January 1, 2021,a category that includes Cordial Compañía Financiera S.A.; therefore, provisions of said Entity are held under the minimum provisions regulations set by the Argentine Central Bank.

Upon the application of impairment model included in section 5.5 of IFRS 9, a decrease of about 452,9 million and 869,5 million would have been recorded in the shareholders ´equity as of June 30, 2020 and December 31, 2019 respectively.

(b) Re-expression by inflation of financial statements

Pursuant to IAS 29 "Financial Information in hyperinflationary economies", financial statements of an entity, whose functional currency accounts for that currency of a hyperinflationary economy shall be expressed in terms of a current measurement unit as of the reporting fiscal year closing date regardless of whether such statements are based on the historical cost method or a current cost method. To such ends, in general terms, such entity shall calculate the inflation recorded as from the acquisition date or revaluation date, when applicable, in non-monetary items. Such requirements also include the comparative information of financial statements.

With the purpose of stating whether an economy is classified as Hyperinflationary in accordance with IAS 29, the provision sets forth a series of factors to be considered, which includes an accrued inflation rate in three years close to or higher than the 100%. That is the reason why, pursuant to IAS 29, the Argentine economy must be considered as a high inflation economy as from July 1, 2018.

In short, pursuant to IFRS 29 re-expression mechanism, monetary assets and liabilities shall not be re-expressed since such assets and liabilities are expressed in a measurement unit in force as of the reported period closing. Assets and liabilities subject to adjustments tied to specific agreements, shall be adjusted pursuant to such agreements. Non-monetary items measured at current values at the end of the reported period, such as the realization net value or others, shall be re-expressed. The remaining non-monetary assets and liabilities shall be re-expressed in accordance with a general price index. The loss or earning of a net monetary position shall be included in the net income of the reported period in a separate item. It is worth to be mentioned that earnings or losses over the monetary position of instruments at fair value through profit and loss in OCI is included in Other Comprehensive Income of the period/fiscal year. Upon the sale of such instruments its result is reclassified in the line "Results from sale or withdrawal of financial instruments rated at amortized cost" in the net income of the period/fiscal year.

Pursuant to Communication "A" 6651, issued by the Argentine Central Bank on February 22, 2019, financial statements shall be prepared in a constant currency as from fiscal years starting on January 1, 2020. In this sense, Communication "A" 6849 issued by the Argentine Central Bank sets the re-expression frequency of the accounting information in a homogeneous currency on a monthly basis, and the index utilized to such ends accounts for the National Consumer Index drawn up by INDEC (basis month: December 2016) and for such items with previous initial date, IPIM issued by FACPCE is utilized, pursuant to Ruling JG 517/16. Likewise, transition date, in virtue of the retroactive application has been set on January 1, 2019.

  1. Other Changes in the Accounting Framework set by the Argentine Central Bank

Pursuant to Communication "A" 6847, financial entities will be allowed to re-categorize, as from Januray 1,2020, instruments of the non-financial public sector rated at fair value through profit and loss and at fair value through profit and loss in OCI at an amortized cost criterion, while utilizing the accounting value of such date as addition value. As for instruments affected by this option, interest accrual and accessories shall be interrupted as long as the accounting value is above its fair value. Upon such measurement, the abovementioned financial instruments, at fair value as of June 30, 2020 there would be no significant impact on equity and results for the period.

1.2 Critical accounting policies and estimates

The accounting policies are consistent with those used in the financial statements as of December 31, 2019.

The preparation of financial statements requires the Entity to make estimates and evaluations that affect the amount of the assets and liabilities recorded, and the disclosure of contingencies, as well as the income and expenses recorded in the year. In this sense, estimates are made to calculate, for example, provisions for uncollectible, useful lives of property, plant and equipment, depreciation and amortization, the recoverable value of assets, the charge for income tax, , some labor positions and the contingency, labor, civil and commercial lawsuits. Actual future results may differ from the estimates and evaluations made at the date of preparation of these Separated Condensed Interim Financial Statements.

64

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of June 30, 2020 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

2. FAIR VALUES

The portfolio of financial instruments held by the Group is detailed below, at the close of the period ended on June 30,

2020 and December 31, 2019:

Portfolio of instruments at 06/30/2020

FV Level 1

FV Level 2

FV Level 3

Assets

- Other financial assets

586,116

-

-

Total Assets

586,116

-

-

Portfolio of instruments at 12/31/2019

FV Level 1

FV Level 2

FV Level 3

Assets

- Other financial assets

820,267

-

-

Total Assets

820,267

-

-

Fair Value of Other Financial Instruments

The following chart includes a comparison between the fair value and the accounting value of financial instruments not recorded at fair value as of June 30, 2020 and December 31, 2019:

Other Financial Instruments as of 06/30/2020

Accounting

Fair value

FV Level 1

FV Level 2

FV Level 3

value

Financial Assets

-Cash and due from banks

11,579

11,579

11,579

-

-

Total Assests

11,579

11,579

11,579

-

-

Other Financial Instruments as of 12/31/2019

Accounting

Fair value

FV Level 1

FV Level 2

FV Level 3

value

Financial Assets

-Cash and due from banks

135,742

135,742

135,742

-

-

Total Assests

135,742

135,742

135,742

-

-

65

GRUPO SUPERVIELLE S.A.

Notes to Separate Condensed Interim Financial Statements

As of June 30, 2020 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

3. INVESTMENT IN SUBSIDIARIES AND ASSOCIATES

Market

Issuers' last Financial Statements

Book value

Book value at

Subsidiary

Class

Value/Nom

Number

Capital

Shareholder

Main Activity

at 06.30.2020

12.31.2019

inal

Stock

s' equity

Banco Supervielle S.A.

Ord.

1

805.533.007

Commercial Bank

829,564

22,791,489

21,978,930

20,743,680

Cordial Compañía Financiera S.A.

Ord.

1

12.847.878

Financial Company

256,957

2,715,266

135,739

147,254

Sofital S.A.F.e.I.I.

Ord.

1

20.854.642

Financial operations and administration of securities

21,544

1,027,874

653,953

614,307

Promotion, spreading, creation, purchase-sale,

professional services and other activities related with the

creation and functioning of credit, debit and similar cards

Tarjeta Automática S.A.

Ord.

1

397.091.618

for the acquisition of all type of goods, products, services,

453,819

288,021

252,018

330,501

or other type, processing clients' accounts, Clearing

and/or compensation among clients, and/or adhered

entities and/or admitted in the system,

Supervielle Asset Management S.A.

Ord.

1

1.336.915

Mutual Fund Management

1,407

190,642

181,111

201,334

Espacio Cordial de Servicios S.A.

Ord.

1.000

1.273

Trading of products and services

1,340

280,249

242,300

244,324

Supervielle Seguros S.A.

Ord.

1

1.393.391

Insurance company

14,667

991,956

915,989

853,187

FF Fintech SUPV I

-

-

655.000

Financial Trust

64,874

68,360

68,360

58,072

Micro Lending S.A.U.

Ord.

1

362.000.000

Financing investments

362,000

90,066

88,876

103,997

InvertirOnline S.A.U

Ord.

100

2,400

Settlement and Clearing Agent

240

311,176

Invertir Online

InvertirOnline.Com

Ord.

0,01

80,451,077

Representations

804

14,246

324,961

261.658

Argentina S.A.U

Supervielle Productores Asesores de

Ord.

1

30.095.000

Insurance Broker

31.599

23.424

22.345

108

Seguros S.A.

Bolsillo Digital S.A.U

Ord.

1

48.100.000

Computer Services

48.100

47.370

47.370

34

Futuros del Sur S.A.

Ord.

1

50.560

Settlement and Clearing Agent

50.560

58.885

58.884

3.934

Total investments in subsidiaries, associates and joint ventures

24,970,836

23,562,390

66

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

4. COMPOSITION OF THE MAIN ITEMS OF THE SEPARATE STATEMENT OF COMPREHENSIVE INCOME

Six-month period

Three-month period

ended on

ended on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

4.1 Interest income

Earned interests

2,391

10

2,386

5

Profit by government securities measure at amortized cost

-

66,132

-

22,721

2,391

66,142

2,386

22,726

4.2 Interest expenses

Expenses from NO issuance

-

(2)

-

(2)

Lost interest from NO issuance

-

(32)

-

-

Profit by government securities measure at amortized cost

(26,839)

(1,691)

11,168

1

(26,839)

(1,725)

11,168

(1)

4.3 Net from financial instruments at fair value through profit or loss

Interests from Time Deposits

40,150

9,285

4,137

3,305

Income from Holding - MF

24,877

74,550

15,983

61,225

Income from Holding -Government Securities

79,970

125,237

17,472

47,562

144,997

209,072

37,592

112,092

4.4 Other operating income

Subsidiaries' advisory fees

86,810

65,708

42,149

31,161

Third parties' advisory fees

-

1,104

-

698

Royalties

540

518

263

251

Other income

-

2,780

-

2,780

Revaluation of retirement insurance contributions

14,680

19,374

8,508

(1,013)

Income from sale of shares

-

136

-

44

102,030

89,620

50,920

33,921

4.5 Personnel expenses

Personnel expenses

55,060

97,103

27,885

46,457

55,060

97,103

27,885

46,457

4.6 Administration expenses

Bank expenses

326

1,190

111

313

Professional fees

25,938

29,612

18,421

17,853

Fees to directors and syndics

92,519

26,607

69,170

19,327

Taxes, rates and contributions

6,569

10,677

4,258

8,331

Insurance

365

1,797

64

636

Expenses and office services

3,622

3,594

1,653

1,464

Other expenses

18,116

10,528

9,208

6,864

147,455

84,005

102,885

54,788

4.7 Other operating expenses

Turnover tax from Service Activities

4,695

3,382

2,120

1,610

Turnover tax from Financial Activities

4,403

3,197

2,138

2,584

Prescription of tax credits

-

224

-

224

Personal property tax shares and equity

4,963

-

4,963

-

Compensatory interests

2

855

2

855

Lost interests

-

5,000

-

5,000

14,063

12,658

9,223

10,273

67

GRUPO SUPERVIELLE S.A.

(Expressed in thousands of pesos in homogeneous currency)

4.8 Results from associates and joint ventures Results from equity investment in Banco Supervielle S.A

Results from equity investment in Cordial Compañía Financiera S.A. Results from equity investment in Tarjeta Automática S.A.

Results from equity investment in Supervielle Asset Management S.A.

Results from equity investment in Espacio Cordial de Servicios S.A. Results from equity investment in Supervielle Seguros S.A. Results from equity investment in Sofital S.A.F. e I.I.

Results from equity investment in Micro Lending S.A.U. Results from equity investment in InvertirOnline S.A. e InvertirOnline.Com Argentina S.A.

Results from equity investment in FF Fintech S.A.

Results from equity investment in Supervielle Productores Asesores de Seguros S.A.

Results from equity investment in Bolsillo Digital S.A.U. Results from equity investment in Futuros del Sur S.A.

5. RESTRICTED ASSETS

Six-month period ended

Three-month period

on

ended on

06/30/2020

06/30/2019

06/30/2020

06/30/2019

975,132

(814,222)

589,735

619,143

(11,516)

(51,458)

(3,638)

(31,313)

(78,482)

(128,757)

(36,558)

(65,143)

132,653

133,951

88,407

67,869

(2,024)

(5,456)

(3,538)

15,700

218,421

261,224

128,276

150,052

69,981

(119,687)

54,785

24,964

(15,121)

12,338

26,636

16,200

63,303

40,657

29,265

24,467

(868)

(824)

715

(4,481)

(9,376)

(20)

(9,469)

(13)

(3,244)

-

(2,353)

-

2,263

-

2,106

-

1,341,122

(672,254)

864,369

817,445

As of June 30, 2020 and December 31, 2019, the Group does not hold restricted assets.

6. COMPANIES UNDER SECT. 33 OF CORPORATE LAW AND OTHER RELATED COMPANIES

As of June 30, 2020 and December 31, 2019, corporations where Grupo Supervielle S.A. holds direct or indirect shares, and with which it consolidates its Financial Statements are the following:

Percentage of direct

Percentage of direct

Principal

and indirect

Company

Condition

Legal Adress

participation

Activity

participation

06/30/2020

12/31/2019

06/30/2020

12/31/2019

Bartolomé Mitre

Commercial

Banco Supervielle S.A.

Controlled

434. C.A.B.A..

97.10%

97.10%

99.90%

99.90%(1)

Bank

Argentina

Cordial Compañía

Reconquista