Form 6-K Grupo Supervielle S.A. For: Sep 30

Name:	Grupo Supervielle S.A.
Financial year:	N° 47 started on January 1, 2022
Legal Address:	Bartolomé Mitre 434 Ciudad Autónoma de Buenos Aires
Core Business:	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:	212,617
Date of Registration at IGP:	October 15, 1980
Amendment of by-laws (last):	April 24, 2018 (Registration in progress)
Expiration date of the Company’s By-Laws:	October 15, 2079
Corporations Article 33 Companies general Law	Note 6 to Separate Financial Statements

Composition of Capital Stock as of September 30, 2022

Shares				Capital Stock
Quantity	Class	N.V. $	Votes per share	Subscribed in thousands of $	Integrated in thousands of $
Quantity	Class	N.V. $	Votes per share	Subscribed in thousands of $	Integrated in thousands of $
61,738,188	A: Non endorsable, common shares of a nominal value	1	5	61,738	61,738
394,984,134	B: Non endorsable, common shares of a nominal value	1	1	394,984	394,984
456,722,322				456,722	456,722

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As of September 30, 2022 and December 31, 2021

(Expressed in thousands of pesos in homogeneous currency)

ASSETS	Notes and Schedules	09/30/2022	12/31/2021
Cash and due from banks	4 and 5	34,719,311	54,096,981
Cash		13,081,598	20,907,525
Financial institutions and correspondents		21,421,164	32,123,360
Argentine Central Bank		18,842,143	30,116,599
Other local and financial institutions		2,579,021	2,006,761
Others		216,549	1,066,096
Debt Securities at fair value through profit or loss	4, 5, 7.1 and A	15,448,777	37,324,702
Derivatives	7.2 and 4	242,298	368,447
Reverse Repo transactions	4 and 7.3	9,571,157	71,161,797
Other financial assets	4, 7.4 and 5	8,209,749	23,072,259
Loans and other financing	4,7.5 and B	204,542,487	253,695,174
To the non-financial public sector		345,747	37,762
To the financial sector		522,870	127,598
To the Non-Financial Private Sector and Foreign residents		203,673,870	253,529,814
Other debt securities	4, 7.6 and A	210,915,818	131,202,696
Financial assets pledged as collateral	4 and 7.7	14,716,375	14,182,568
Deferred income tax assets		1,025,901	1,461,928
Investments in equity instruments	4 and A	385,005	438,899
Property, plant and equipment	F	17,142,838	18,326,065
Investment property	F	15,015,130	14,445,278
Intangible assets	G	19,193,703	18,969,090
Deferred income tax assets		6,134,049	5,328,349
Other non-financial assets	7.8	5,347,265	4,086,901
Inventories	7.9	202,627	227,147
TOTAL ASSETS		562,812,490	648,388,281

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

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As of September 30, 2022 and December 31, 2021

(Expressed in thousands of pesos in homogeneous currency)

	Notes and Schedules	09/30/2022	12/31/2021
LIABILITIES
Deposits	4, 7.10 and H	428,013,979	479,052,479
Non-financial public sector		23,430,989	19,056,963
Financial sector		62,232	64,933
Non-financial private sector and foreign residents		404,520,758	459,930,583
Liabilities at fair value through profit or loss	4 and 7.11	395,601	3,409,848
Reverse Repo transactions	4	2,320,845	-
Other financial liabilities	4 and 7.12	18,287,031	39,492,682
Financing received from the Argentine Central Bank and other financial institutions	4 and 7.3	4,665,683	10,383,826
Unsubordinated debt securities	4 and 11.5	557,521	1,759,117
Provisions	7.14	1,365,828	1,517,365
Deferred income tax liabilities		77,288	102,527
Other non-financial liabilities	7.15	26,052,318	26,976,694
TOTAL LIABILITIES		481,736,094	562,694,538

SHAREHOLDERS' EQUITY
Capital stock		452,467	456,722
Paid in capital		72,339,947	72,339,947
Capital Adjustments		7,888,552	8,129,638
Own shares in portfolio		4,255	-
Comprehensive adjustment of shares in portfolio		241,086	-
Cost of treasury stock		(419,801)	-
Reserve		5,286,517	7,698,479
Retained earnings		(3,016,640)	(1,654,954)
Other comprehensive income		1,301,678	2,010,462
Net income for the period / year		(3,065,806)	(3,354,578)
Shareholders' Equity attributable to owners of the parent company		81,012,255	85,625,716
Shareholders' Equity attributable to non-controlling interests		64,141	68,027
TOTAL SHAREHOLDERS' EQUITY		81,076,396	85,693,743
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		562,812,490	648,388,281

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

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the nine and three-month period on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

	Note	Nine-month period ending on		Three-month period ending on
	Note		09/30/2022	09/30/2021	09/30/2022	09/30/2021
Interest income	7.16	152,006,000	128,627,106	58,141,129	44,415,114
Interest expenses	7.17	(95,891,907)	(75,263,056)	(38,058,747)	(26,751,515)
Net interest income		56,114,093	53,364,050	20,082,382	17,663,599
Service fee income	7.19	19,701,350	20,649,227	6,209,968	7,036,603
Service fee expenses	7.20	(7,049,011)	(6,274,449)	(2,213,521)	(2,124,095)
Income from insurance activities	9	2,946,377	2,767,931	936,681	870,065
Net Service Fee Income		15,598,716	17,142,709	4,933,128	5,782,573
Subtotal		71,712,809	70,506,759	25,015,510	23,446,172
Net income from financial instruments (NIFFI) at fair value through profit or loss	7.18	12,149,250	12,657,684	3,939,525	3,883,765
Result from assets withdrawals rated at amortized cost		448,814	115,309	(22,404)	(25,039)
Exchange rate difference on gold and foreign currency		1,906,400	1,063,479	638,715	350,589
Subtotal		14,504,464	13,836,472	4,555,836	4,209,315
Other operating income	7.21	5,982,010	5,399,639	2,191,976	1,665,529
Result from exposure to changes in the purchasing power of the currency		(11,998,379)	(9,810,705)	(4,260,231)	(2,725,241)
Loan loss provisions		(8,691,111)	(11,919,906)	(2,243,520)	(3,142,715)
Net operating income		71,509,793	68,012,259	25,259,571	23,453,060
Personnel expenses	7.22	(34,638,584)	(31,939,396)	(10,877,042)	(10,111,205)
Administration expenses	7.23	(18,211,153)	(19,027,940)	(6,511,833)	(6,540,295)
Depreciations and impairment of non-financial assets	7.24	(5,637,837)	(5,202,093)	(1,824,309)	(1,734,208)
Other operating expenses	7.25	(15,378,125)	(13,743,929)	(5,481,013)	(4,766,722)
Operating income		(2,355,906)	(1,901,099)	565,374	300,630
(Loss) before taxes from continuing operations		(2,355,906)	(1,901,099)	565,374	300,630
Income tax		713,135	(61,893)	1,128,436	617,256
Net (loss) for the period		(3,069,041)	(1,839,206)	(563,062)	(316,626)
Net (loss) for the period attributable to owners of the parent company		(3,065,806)	(1,837,200)	(562,354)	(316,100)
Net (loss) for the period attributable to non-controlling interests		(3,235)	(2,006)	(708)	(526)

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

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

EARNING PER SHARE

For the nine and three-month period on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

	Nine-month period ending on		Three-month period ending on
	09/30/2022	09/30/2021	09/30/2022	09/30/2021
NUMERATOR
Net (loss) for the period attributable to owners of the parent company	(3,065,806)	(1,837,200)	(562,354)	(316,100)
PLUS: Diluting events inherent to potential ordinary shares	-	-	-	-
Net (loss) attributable to owners of the parent company adjusted by dilution	(3,065,806)	(1,837,200)	(562,354)	(316,100)

DENOMINATOR

Weighted average of ordinary shares	456,332	456,722	455,565	456,722
PLUS: Weighted average of number of ordinary shares issued with dilution effect.	-	-	-	-
Weighted average of number of ordinary shares issued of the year adjusted by dilution effect	456,332	456,722	455,565	456,722

Basic Income per share	(6.72)	(4.03)	(1.23)	(0.69)
Diluted Income per share	(6.72)	(4.03)	(1.23)	(0.69)

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

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the nine and three-month period on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

	Nine-month period ending on		Three-month period ending on
	09/30/2022	09/30/2021	09/30/2022	09/30/2021
Net (loss) for the period	(3,069,041)	(1,839,206)	(563,062)	(316,626)
Components of Other Comprehensive Income not to be reclassified to profit or loss
Revaluations of the year of property, plant and equipment and intangibles	-	(88,125)	-	-
Revaluations of property, plant and equipment and intangibles	-	(2,991)	-	-
Income tax	-	(85,134)	-	-
Net income from equity instrument at fair value through changes in other comprehensive income	(34,704)	(38,344)	2,718	(99,952)
Income for the period from equity instrument at fair value through other comprehensive income	(53,391)	(54,776)	4,182	(116,384)
Income for the period from hedging instrument at fair value through other comprehensive income	-	-	-	-
Income tax	18,687	16,432	(1,464)	16,432
Total Other Comprehensive Income not to be reclassified to profit or loss	(34,704)	(126,469)	2,718	(99,952)
Components of Other Comprehensive Income to be reclassified to profit or loss
Foreign currency translation difference in financial statements conversion	33,788	-	10,065	-
Foreign currency translation differences for the period	33,788	-	10,065	-
(Loss) from financial instrument at fair value through changes in other comprehensive income	(708,589)	(301,451)	297,943	381,630
(Loss) for the year from financial instrument at fair value through other comprehensive income	(1,084,014)	(396,178)	436,165	650,106
Income tax	375,425	94,727	(138,222)	(268,476)
Total Other Comprehensive Income to be reclassified to profit or loss	(674,801)	(301,451)	308,008	381,630
Total Other Comprehensive Income	(709,505)	(427,920)	310,726	281,678
Other comprehensive income attributable to owners of the parent company	(708,784)	(427,468)	310,529	281,410
Other comprehensive income attributable to non-controlling interests	(721)	(452)	197	268
Total Comprehensive (Loss)	(3,778,546)	(2,267,126)	(252,336)	(34,948)
Total comprehensive (loss) attributable to owners of the parent company	(3,774,590)	(2,264,668)	(251,825)	(34,690)
Total comprehensive (loss) attributable to non-controlling interests	(3,956)	(2,458)	(511)	(258)

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

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY

For the nine-month period ended on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Items	Capital stock	Capital adjustments	Paid in capital	Own shares in portfolio	Comprehensive adjustment of own shares in portfolio	Cost of treasury stock	Legal reserve	Other reserves	Retained earnings	Other comprehensive income			Total Shareholders´ equity attributable to parent company	Total Shareholders´ equity attributable to non-controlling interest	Total Shareholders´equity
Items	Capital stock	Capital adjustments	Paid in capital	Own shares in portfolio	Comprehensive adjustment of own shares in portfolio	Cost of treasury stock	Legal reserve	Other reserves	Retained earnings						Total Shareholders´equity	Revaluation of PPE	Conversion difference	Earnings or los accrued by financial institutions at FV through profit and loss
Balance at December 31, 2021	456,722	8,129,638	72,339,947	-	-	-	883,232	6,815,247	(5,009,532)	1,357,324	673	652,465	85,625,716	68,027	85,693,743
Issue premium	-	-	-	-	-	-	-	272	-	-	-	-	272	70	342
Adquisición de acciones propias	(4,255)	(241,086)	-	4,255	241,086	(419,801)	-	-	-	-	-	-	(419,801)	-	(419,801)
Consideration of results approved by the General Assembly of Shareholders held on April 27, 2022:
Absorption of results	-	-	-	-	-	-	-	(1,992,892)	1,992,892	-	-	-	-	-	-
Dividend distribution	-	-	-	-	-	-	-	(419,342)	-	-	-	-	(419,342)	-	(419,342)
Net loss for the period	-	-	-	-	-	-	-		(3,065,806)	-	-	-	(3,065,806)	(3,235)	(3,069,041)
Other comprehensive (loss) / income for the period	-	-	-	-	-	-	-	-	-	-	33,788	(742,572)	(708,784)	(721)	(709,505)
Balance at September 30, 2022	452,467	7,888,552	72,339,947	4,255	241,086	(419,801)	883,232	4,403,285	(6,082,446)	1,357,324	34,461	(90,107)	81,012,255	64,141	81,076,396

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

GRUPO SUPERVIELLE S.A.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY

For the nine-month period ended on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos)

Items	Capital stock	Capital adjustments	Paid in capital	Legal reserve	Other reserves	Retained earnings	Other comprehensive income		Total Shareholders´ equity attributable to parent company	Total Shareholders´ equity attributable to non-controlling interest	Total Shareholders´equity
Items	Capital stock	Capital adjustments	Paid in capital	Legal reserve	Other reserves	Retained earnings					Total Shareholders´equity	Revaluation of PPE	Earnings or los accrued by financial institutions at FV through profit and loss
Balance at December 31, 2020	456,722	8,129,637	72,339,947	-	-	8,553,278	1,482,980	128,716	91,091,280	72,791	91,164,071
Impact of IFRS 9 Adjustments	-	-	-	-	-	(1,654,402)	-	566,403	(1,087,999)	(1,058)	(1,089,057)
Balance at December 31, 2020	456,722	8,129,637	72,339,947	-	-	6,898,876	1,482,980	695,119	90,003,281	71,733	90,075,014
Distribution of retained earnings by the shareholders’ meeting on April 27, 2021:
Constitution of reserves	-	-	-	883,233	6,815,246	(7,698,479)	-	-	-	-	-
Dividend distribution	-	-	-	-	-	(854,799)	-	-	(854,799)	-	(854,799)
Net loss for the period	-	-	-	-	-	(1,837,200)	-	-	(1,837,200)	(2,006)	(1,839,206)
Other comprehensive loss for the period	-	-	-	-	-	-	(88,038)	(339,431)	(427,469)	(452)	(427,921)
Balance at September 30, 2021	456,722	8,129,637	72,339,947	883,233	6,815,246	(3,491,602)	1,394,942	355,688	86,883,813	69,275	86,953,088

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

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

For the nine-month period ended on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

	09/30/2022	09/30/2021
CASH FLOW FROM OPERATING ACTIVITIES

Net (loss) for the period before Income Tax	(2,355,906)	(1,901,099)

Adjustments to obtain flows from operating activities:	5,637,837	5,202,093
Depreciation and impairment of non-financial assets	8,691,111	11,919,906
Loan loss provisions
Other adjustments	(1,906,400)	(1,063,479)
-Exchange rate difference on gold and foreign currency	(152,006,000)	(128,627,106)
- Interests from loans and other financing	95,891,907	75,263,056
- Interests from deposits and financing received	(12,149,250)	(12,657,684)
-Net income from financial instruments at fair value through profit or loss	(448,814)	(115,309)
-Result from derecognition of financial assets measured at amortized cost	11,998,379	9,810,705
-Result from exposure to changes in the purchasing power of the currency	342,238	361,266
-Interest on liabilities for financial leases	(2,408,357)	(2,127,715)
-Allowances reversed

(Increases) / decreases from operating assets:
Debt securities at fair value through profit or loss	21,048,188	12,478,282
Derivatives	126,149	103,137
Reverse Repo transactions	61,590,640	(39,600,257)
Loans and other financing
To the non-financial public sector	(307,985)	(24,965)
To the other financial entities	(395,272)	(71,150)
To the non-financial sector and foreign residents (*)	195,185,961	129,980,379
Other debt securities	(79,713,122)	(47,369,213)
Financial assets pledged as collateral	(533,807)	(1,228,757)
Investments in equity instruments	-	-
Other assets (*)	11,154,014	(5,083,758)

Increases / (decreases) from operating liabilities:
Deposits
Non-financial public sector	4,374,026	12,993,954
Financial sector	(2,701)	(70,521)
Private non-financial sector and foreign residents	(151,301,732)	(23,936,622)
Liabilities at fair value through profit or loss	(3,014,247)	(2,343,266)
Repo transaction s	-	(5,001)
Derivatives	2,320,845	-
Other liabilities (*)	(21,390,652)	932,186
Income Tax paid	(732,625)	(2,921,284)

Net cash (used in) / provided by operating activities (A)	(10,305,575)	(10,102,222)

CASH FLOW FROM INVESTING ACTIVITIES

Payments:
Purchase of PPE, intangible assets and other assets	(4,959,336)	(4,202,863)
Purchase of liability or equity instruments issued by other entities	-	(26,918)

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

GRUPO SUPERVIELLE S.A.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

For the nine-month period ended on September 30, 2022 presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

	09/30/2022	09/30/2021
CASH FLOW FROM INVESTING ACTIVITIES

Collections:
Disposals related to PPE, intangible assets and other assets	130,828	695,820
Purchase of liability or equity instruments issued by other entities	53,894	-

Net cash used in investing activities (B)	(4,774,614)	(3,533,961)

CASH FLOWS FROM FINANCING ACTIVITIES

Payments:
Interest on finance lease liabilities	(1,885,070)	(3,644,752)
Unsubordinated debt securities	(1,201,596)	(12,038,910)
Financing received from Argentine Financial Institutions	(126,211,724)	(54,623,620)
Subordinated debt securities	-	(514,882)
Dividend paid	(419,342)	(854,799)
Repurchase of own shares	(419,801)	-
Collections:
UnSubordinated debt securities	-	3,788,301
Financing received from Argentine Financial Institutions	120,493,581	54,270,593

Net cash used in financing activities (C)	(9,643,952)	(13,618,069)

Effects of exchange rate changes and exposure to changes in the purchasing power of money on cash and cash equivalents (D)	8,031,267	21,113,258

Net increase / (decrease) in cash and cash equivalents (A+B+C+D)	(16,692,874)	(6,140,994)
Cash and cash equivalents at the beginning of the period (NOTE 1.8)	74,282,129	98,932,343
Result from exposure to changes in the purchasing power of the currency of cash and equivalents	(17,375,613)	(27,986,362)
Cash and cash equivalents at the end of the period (NOTE 1.8)	40,213,642	64,804,987

(*) In the items "Loans and other financing - Non-Financial Private Sector and Residents Abroad", "Other Assets" and "Other Liabilities", 453,152 Assets taken in defense of credit and 2,122,112 rights of use of leased real estate were eliminated. , both corresponding to non-monetary transactions.

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

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

1.	ACCOUNTING STANDARDS AND BASIS OF PREPARATION

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., IUDÚ Compañia Financiera S.A., Sofital S.A. F. e I.I., Tarjeta Automática S.A., Supervielle Asset Management S.A., Espacio Cordial de Servicios S.A., Supervielle Seguros S.A., InvertirOnline S.A.U., Portal Integral de Inversiones S.A.U., Micro Lending S.A.U., Supervielle Productores Asesores de Seguros S.A ., Bolsillo Digital S.A.U., Supervielle Agente de Negociación S.A.U., Dólar IOL S.A.U. y IOL Holding 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 Condensed Interim Financial Statements have been approved by the Board of Directors of the Company at its meeting held on November 9, 2022.

1.1.	Preparation basis

These consolidated 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 temporary exception of the application of IFRS 9 “Financial Instruments” on debt instruments of the Non-Financial Public Sector.

If IFRS 9 has been applied on debt debt instruments of the Non-Financial Public Sector, a net reduction of income tax of 165 million and 82 million would have been recorded in the Group's equity as of September 30, 2022 and December 31, 2021 , respectively.

In accordance with the provisions of IAS 34, the interim financial information will include an explanation of events and transactions, occurred since the end of the last reporting period, that are significant for understanding the changes in the financial position, performance Group financial statements and cash flow statements with the objective of updating the information corresponding to the latest financial statements for the year ended December 31, 2021 (hereinafter “annual financial statements”). Therefore, these condensed interim consolidated financial statements do not include all the information required by complete financial statements prepared in accordance with International Financial Reporting Standards, therefore, for an adequate understanding of the information included therein, they must be read in conjunction with the annual financial statements.

The Group's Management has concluded that these interim condensed financial statements fairly present the financial position, financial performance and cash flows.

It should be noted that these interim condensed financial statements have been prepared applying accounting policies and measurement criteria consistent with those applied by the Group for the preparation of the annual financial statements except for the changes in accounting standards described in Note 1.1.4.

The preparation of condensed consolidated interim financial statements requires the Group to make estimates and evaluations that affect the amount of assets and liabilities recorded, and the disclosure of contingencies, as well as the income and expenses recorded in the period. In this regard, estimates are made to calculate, for example, provisions for credit risk, the useful lives of property, plant and equipment, depreciation and amortization, the recoverable value of assets, the tax charge on earnings and the fair value of certain financial instruments. The actual future results may differ from the estimates and evaluations made at the date of preparation of these interim condensed consolidated financial statements.

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

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

1.1.1

Going concern

As of the date of these consolidated 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 consolidated financial statements are expressed in thousands of Argentine pesos, unless otherwise stated.

The Group´s consolidated 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 consolidated financial statements have been re-expressed as of September 30, 2022.

1.1.3Comparative information

The balances for the year ended December 31, 2021 and for the nine-month period ended September 30, 2021 that are disclosed in these financial statements for comparative purposes arise from the financial statements as of such dates, which were prepared with the regulations in force in said year. Certain figures of these financial statements have been reclassified in order to present the information in accordance with the regulations in force as of September 30, 2022.

It´s worth mentioning that, given the restatement of financial statements pursuant to IAS 29 and the provisions of Communication “A” 7211, the Group adjusted for inflation the figures included in the Statement of Financial Position, Income Statement, Other Comprehensive Income and Changes in the Shareholders’ Equity Statement and respective notes as of September 30, 2021 and December 31, 2021 in order to record them in homogeneous currency.

Due to the application of point 5.5 of IFRS 9 in IUDÚ Compañía Financiera, explained in section note 1.1.4 referring to "Impairment of financial assets" for the purposes of presenting comparative information with that of the current period, it has been proceeded to :

(i) retroactively restate the figures of the Statement of Financial Position as of December 31, 2021 in order to present them as if the new accounting policies had been applied as of January 1, 2021, and

(ii) retroactively restate the figures of the Income Statement, Statement of Other Comprehensive Income and Statement of Changes in Equity as of September 30, 2021 in order to present them as if the new accounting policies had been applied as of January 1, 2021.

(iii) incorporate the effect of the application of point 5.5. of IFRS 9 for each period presented. See note 1.1.4

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

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

(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 September 30, 2022:

(a)	Amendments to IFRS 3 “Business Combinations”, IAS 16 “Property, plant and equipment” and IAS 37 “Provisions, contingent liabilities and contingent assets”

IAS 16, 'Property, plant and equipment (PPE) - income before intended use'

IAS 16 requires that the cost of an asset includes any costs attributable to bringing the asset to the location and condition necessary for it to be able to operate in the manner intended by management. One of those costs is testing whether the asset is working properly.

The amendment to IAS 16 prohibits an entity from deducting from the cost of an item of PP&E any proceeds received from selling items produced while the entity is preparing the asset for its intended use (for example, the proceeds from selling samples produced when testing a machine to see if it is working properly). The proceeds from selling such samples, together with the costs of producing them, are now recognized in profit or loss. An entity will use IAS 2, “Inventory”, to measure the cost of those items. Cost will not include depreciation of the asset being tested because it is not ready for its intended use.

The amendment also clarifies that an entity is “testing whether the asset is working properly” when it assesses the technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment. Therefore, an asset may be able to operate as intended by management and subject to depreciation before it has achieved the level of operating performance expected by management.

The amendment requires entities to separately disclose the amounts of proceeds and costs relating to items produced that are not an output of the entity’s regular activities. An entity shall also disclose the line item in the statement of comprehensive income where the proceeds are included.

IAS 37 “Provisions, contingent liabilities and contingent assets - Onerous contracts – Cost of fulfilling a contract”

lAS 37 defines an onerous contract as one in which the unavoidable costs of meeting the entity’s obligations exceed the economic benefits to be received under that contract. Unavoidable costs are the lower of the net cost of exiting the contract and the costs to fulfill the contract. The amendment clarifies the meaning of “costs to fulfill a contract”.

The amendment explains that the direct cost of fulfilling a contract comprises:

*the incremental costs of fulfilling that contract (for example, direct labor and materials); and

*an allocation of other costs that relate directly to fulfilling contracts (for example, an allocation of the depreciation charge for an item of PP&E used to fulfill the contract).

The amendment also clarifies that, before a separate provision for an onerous contract is established, an entity recognizes any impairment loss that has occurred on assets used in fulfilling the contract, rather than on assets dedicated to that contract.

The amendment could result in the recognition of more onerous contract provisions, because previously some entities only included incremental costs in the costs to fulfill a contract.

IFRS 3 “Business Combinations - Reference to the Conceptual Framework”

The International Accounting Standards Board (“IASB”) has updated IFRS 3, “Business combinations”, to refer to the 2018 Conceptual Framework for Financial Reporting, in order to determine what constitutes an asset or a liability in a business combination. Prior to the amendment, IFRS 3 referred to the 2001 Conceptual Framework for Financial Reporting.

In addition, the IASB added a new exception in IFRS 3 for liabilities and contingent liabilities. The exception specifies that, for some types of liabilities and contingent liabilities, an entity applying IFRS 3 shall instead refer to IAS 37, “Provisions, Contingent Liabilities and Contingent Assets”, or IFRIC 21, “Levies”, rather than the 2018 Conceptual Framework. Without this new exception, an entity would have recognized some liabilities in a business combination that it would not recognize under IAS 37. Therefore, immediately after the acquisition, the entity would have had to derecognize such liabilities and recognize a gain that did not depict an economic Gain.

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

The IASB has also clarified that the acquirer shall not recognize contingent assets, as defined in IAS 37, at the acquisition date.

The adoption of this new standard had no impact on the Group's financial statements.

(b)Annual Improvements 2018-2020

Fees included in the 10% test for derecognition of financial liabilities

The amendment to IFRS 9 establishes which fees should be included in the 10% test for derecognition of financial liabilities. Costs or fees could be paid to either third parties or the lender. Under the amendment, costs or fees paid to third parties will not be included in the 10% test.

Illustrative examples accompanying IFRS 16 Leases

Illustrative Example 13 accompanying IFRS 16 is amended to remove the illustration of payments from lessor relating to lease improvements. The reason for the amendment is to remove any potential confusion about the treatment of lease incentives.

Subsidiaries as First-time adopters of IFRS

IFRS 1 grants an exemption to subsidiaries that become a first-time adopter of IFRS after their parent. The subsidiary may measure the carrying amounts of its assets and liabilities that would have been included in the consolidated financial statements of its parent, based on the transition date to IFRS of the parent if no adjustments were made for reasons of consolidation and for the purposes of the business combination by which the parent acquired the subsidiary.

IFRS 1 was amended to allow entities that have taken this IFRS 1 exemption to also measure cumulative translation differences using the amounts reported by the parent, based on the transition date to IFRS of the parent. The amendment to IFRS 1 extends the above-mentioned exemption to cumulative translation differences in order to reduce costs for first-time adopters of IFRS. The amendment will also apply to associates and joint ventures that have taken the same exemption from IFRS 1.

Taxation in fair value measurements

The requirement for entities to exclude cash flows for taxation when measuring fair value measurement under IAS 41 “Agriculture” has been removed. The purpose of this amendment is to align it with the requirement included in the standard to discount cash flows after taxes.

The adoption of this new standard had no impact on the Group's financial statements.

(c)

Impairment of financial assets

IUDÚ Compañía Financiera has requested authorization from the BCRA to advance the application of point 5.5 of IFRS 9 to the current period. Consequently, the adjustments to equity were made on January 1, 2021:

Provisions recorded in the Financial Statements as of 01/01/2021	(2,109,382)
Provisions in accordance with point 5.5 of IFRS 9 as of 01/01/2021	(3,560,767)
Variation ECL	(1,451,385)
Deferred tax	362,833
Adjustment to previous years	(1,088,552)

IUDÚ Compañía Financiera has opted for the application of the impairment of financial assets from the financial statements corresponding to the period ended September 30, 2022 as indicated in note 1.1.3.

IUDÚ Compañía Financiera, evaluates with a prospective approach the expected credit losses (“PCE”) associated with financial assets measured at amortized cost or at fair value with changes in other comprehensive income, the exposure derived from loan commitments and financial guarantee contracts with the scope established by Communication "A" 6847 of the BCRA.

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

The most significant assumptions used to estimate PCE as of December 31, 2021 are set out below:

Parameter	Segment	Macroeconomic Variables	Base Scenario	Optimistic scenario	Pessimistic scenario
Default probability	Credit Cards Personal Loans	Salary YoY	50.70%	55.70%	45.60%
	Credit Cards Personal Loans			EMAE	138	140	136
		Pledged Loans	Salary YoY	50.70%	55.70%	45.60%
		Pledged Loans		Inflation Rate	46.80%	41.30%	52.40%

Loss Given Default	Credit Cards Personal Loans	Salario YoY	50.70%	55.70%	45.60%
	Credit Cards Personal Loans	Salario YoY	50.70%	55.70%	45.60%
		Pledged Loans	Private Sector Loan YoY	64.10%	70.50%	57.70%
		Pledged Loans		Salary YoY	50.70%	55.70%	45.60%

The weights assigned to each scenario as of September 30, 2022 are set forth below:

Base Scenario	60%
Optimistic scenario	10%
Pessimistic scenario	30%

The following sets forth changes that have not become in force as of September 30, 2022:

(a)

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 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, 2023.

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

(b)

Amendments to IAS 1 “Presentation of Financial Statements”, IFRS Practice Statement 2 and IAS 8 “Accounting Policies, changes in accounting estimates and errors”

The IASB amended IAS 1, “Presentation of Financial Statements”, to require companies to disclose material accounting policy information rather than significant accounting policy information. The amendment also clarifies that accounting policy information is expected to be material or of relative importance if, without it, users of the financial statements would be unable to understand other material information, or of relative importance, in the financial statements concerning significant accounting standards. To support this amendment, the Board also amended IFRS Practice State 2, “Making Materiality Judgments”, to provide guidance on how to apply the concept of materiality to accounting policy disclosures.

The amendment to IAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors”, helps to distinguish between changes in accounting policies from changes in accounting estimates. This distinction is important because changes in accounting estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied retrospectively to past transactions and other past events as well as to those of the current period.

These amendments are applicable to annual periods beginning on or after January 1, 2023. Early application is allowed. Changes shall be applied prospectively.

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

(c)

Amendments to IAS 12 Deferred tax related to assets and liabilities arising from a single transaction

These amendments establish that deferred taxes arising from a single transaction that, on initial recognition, give rise to taxable and deductible temporary differences of the same value shall be recognized. This will generally apply to transactions such as leases (for lessees) and decommissioning or remediation obligations, where the recognition of deferred tax assets and liabilities will be required. These amendments shall be applied to transactions that occur on or

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

after the beginning of the earliest comparative period presented. Likewise, deferred tax assets (to the extent that it is probable that they can be used) and deferred tax liabilities shall be recognized at the beginning of the earliest comparative period for all deductible or taxable temporary differences associated with:

-Right-of-use assets and lease liabilities, and

-Decommissioning, restoration and similar liabilities and the corresponding amounts recognized as part of the cost of the related asset.

The cumulative effect of initially applying the amendments is recognized as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at that date.

Previously, IAS 12 did not establish any particular accounting treatment for the tax effects of leases that were recognized on the balance sheet and for similar transactions, so different approaches were considered acceptable. Entities that are already recognizing deferred taxes on these transactions will not have an impact on their financial statements.

The amendments will be effective for fiscal years beginning on or after January 1, 2023 with early adoption permitted.

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:

(a)a probability amount, weighed and unbiased, that is defined through the evaluation of a range of possible result;

(b)the temporal value of money; and

(c)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 1.3.1 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

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)


Stage 1	Stage 2	Stage 3
(initial recognition)	(significant increase of credit risk since initial recognition)	(Impaired credit)
12 months ECL	Lifetime ECL

There have been no significant changes in the judgments and key assumptions adopted by the Group for the measurement of PCE, with respect to what was reported in the financial statements as of December 31, 2021.

1.2.1 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.

Loan Type	September 30, 2022			Total
		ECL Staging
		Stage 1 12-month ECL	Stage 2 Lifetime ECL		Stage 3 Lifetime ECL
Overdrafts	35,724,154	253,254	167,455		36,144,863
Documents	30,559,970	189,170	133,862	30,883,002
Mortgage loans	21,838,182	1,490,157	674,647	24,002,986
Pledge loans	6,161,493	858,190	401,758	7,421,441
Personal loans	28,279,385	5,449,127	2,219,268	35,947,780
Individuals and Business	24,009,903	5,088,888	1,171,424	30,270,215
Consumer finance	4,269,482	360,239	1,047,844	5,677,565
Credit cards	90,268,419	7,986,935	2,105,650	100,361,004
Individuals and Business	76,461,619	7,525,004	968,172	84,954,795
Consumer finance	13,806,800	461,931	1,137,478	15,406,209
Financial Lease	9,057,768	379,431	40,317	9,477,516
Others	48,218,296	2,185,815	2,088,819	52,492,930
Total	270,107,667	18,792,079	7,831,776	296,731,522

1.2.2 Allowances for loan loss

Allowances for loan losses recognized in the year 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 year, and the resulting “increase” between ECL at 12 months and Lifetime;

●

Additional assignments for new financial instruments recognized during the year, as well as write-offs for withdrawn financial instruments;

●

Impact on the calculation of ECL of changes in DP, EAD and LGD during the year, 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 year and application of provisions related to assets withdrawn from the balance sheet during the year.

The following charts explain changes in the provision for credit risk between the beginning and end of the period due to the following factors:

	Allowance			Total
		Stage 1 12-month ECL	Stage 2 Lifetime ECL	Total	Stage 3 Lifetime ECL
Allowances for loan losses as of 12/31/2021	3,253,298	4,242,840	9,184,734	16,680,872
Transfers:
From Stage 1 to Etapa 2	(215,249)	1,375,569	-	1,160,320
From Stage 1 to Etapa 3	(228,709)	-	3,128,420	2,899,711
From Stage 2 to Etapa 3	-	(655,565)	1,648,670	993,105
From Stage 2 to Etapa 1	64,763	(389,510)	-	(324,747)
From Stage 3 to Etapa 2	-	14,849	(127,959)	(113,110)
From Stage 3 to Etapa 1	(39,633)	-	(213,393)	(253,026)
Net changes	777,305	(789,275)	(2,561,158)	(2,573,128)
Withdrawn financial assets	(1,064,940)	(1,014,257)	(5,543,100)	(7,622,297)
Exchange Differences and Others	55,061	57,940	354,848	467,849
Allowances for loan losses as of 09/30/2022	2,601,896	2,842,591	5,871,062	11,315,549

* IUDÚ 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.

	Assets Before Allowances			Total
		Stage 1 12-month ECL	Stage 2 Lifetime ECL	Total	Stage 3 Lifetime ECL
Assets Before Allowances as of 12/31/2021	236,401,802	20,427,688	13,546,526	270,376,016
Transfers:
From Stage 1 to Etapa 2	(4,836,451)	4,836,451	-	-
From Stage 1 to Etapa 3	(1,667,174)	-	1,667,174	-
From Stage 2 to Etapa 3	-	(1,095,733)	1,095,733	-
From Stage 2 to Etapa 1	3,064,089	(3,064,089)	-	-
From Stage 3 to Etapa 2	-	109,742	(109,742)	-
From Stage 3 to Etapa 1	279,530	-	(279,530)	-
Net changes	(43,094,357)	(4,531,084)	(3,049,493)	(50,674,934)
Withdrawn financial assets	(1,064,940)	(1,014,257)	(5,543,100)	(7,622,297)
Exchange Differences and Others	3,105,887	169,156	504,208	3,779,251
Assets Before Allowances as of 09/30/2022	192,188,386	15,837,874	7,831,776	215,858,036

	Assets Before Allowances			Total as of September 30, 2022
		Stage 1	Stage 2	Total as of September 30, 2022	Stage 3
Promissory notes	35,724,154	253,254	167,455	36,144,863
Unsecured corporate loans	25,382,746	154,621	308,234	25,845,601
Overdrafts	9,789,734	111,956	133,862	10,035,552
Mortgage loans	21,838,182	1,490,157	674,647	24,002,986
Automobile and other secured loans	6,161,493	858,190	401,758	7,421,441
Personal loans	28,279,385	5,449,127	2,219,268	35,947,780
Credit card loans	37,778,714	5,118,606	2,105,650	45,002,970
Foreign Trade Loans	11,007,709	1,642,263	1,629,624	14,279,596
Other financings	6,748,949	308,054	95,496	7,152,499
Other receivables from financial transactions	419,552	72,215	55,465	547,232
Receivables from financial leases	9,057,768	379,431	40,317	9,477,516
Subtotal	192,188,386	15,837,874	7,831,776	215,858,036
Allowances for loan losses	(2,601,896)	(2,842,591)	(5,871,062)	(11,315,549)
Total	189,586,490	12,995,283	1,960,714	204,542,487

1.3.Consolidated Structured Entities

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

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.

Note 11.4 details the financial trusts in which the entity is trustor as of September 30, 2022.

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-making process 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.

The following chart details the assets and liabilities of Structured Entities that have been consolidated by the Group as of September 30, 2022:

	09/30/2022
Assets
Loans	317,061
Financial assets	34,530
Other assets	24,959
Total Assets	376,550
Liabilities
Financial liabilities	(87,128)
Other liabilities	(24,933)
Total Liabilities	(112,061)

1.4.	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:

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Company	Condition	Legal Adress	Principal Activity	Percentage of Participation
								09/30/2022		12/31/2021
								Direct	Direct and Indirect	Direct	Direct and Indirect
Banco Supervielle S.A.	Controlled	Bartolomé Mitre 434, C.A.B.A., Argentina	Commercial Bank	97.10%	99.90% ⁽¹⁾	97.10%	99.90% ⁽¹⁾
IUDÚ Compañia Financiera S.A	Controlled	Reconquista 320, C.A.B.A., Argentina	Financial Company	5.00%	99.90%	5.00%	99.90%
Tarjeta Automática S.A.	Controlled	Bartolomé Mitre 434, C.A.B.A., Argentina	Credit Card and Consumer Loans	7.85%	99.91%	87.50%	99.99%
Supervielle Asset Management S.A.	Controlled	San Martín 344, C.A.B.A., Argentina	Asset Management and Other Services	95.00%	100.00%	95.00%	100.00%
Sofital S.A.F. e I.I.	Controlled	Bartolomé Mitre 434, C.A.B.A., Argentina	Financial operations and administration of marketable securities	96.80%	100.00%	96.80%	100.00%
Espacio Cordial de Servicios S.A.	Controlled	Patricias Mendocinas 769, Ciudad de Mendoza, Argentina	Trading of products and services	95.00%	100.00%	95.00%	100.00%
Supervielle Seguros S.A.	Controlled	San Martin 344, C.A.B.A., Argentina	Insurance company	95.00%	100.00%	95.00%	100.00%
Micro Lending S.A.U.	Controlled	Bartolomé Mitre 434, C.A.B.A., Argentina	Financial Company	100.00%	100.00%	100.00%	100.00%
InvertirOnline S.A.U.	Controlled	San Martin 344, C.A.B.A., Argentina	Financial Broker	100.00%	100.00%	100.00%	100.00%
Portal Integral de Inversiones S.A.U	Controlled	Bartolomé Mitre 434, C.A.B.A., Argentina	Representations	100.00%	100.00%	100.00%	100.00%
IOL Holding S.A.	Controlled	Treinta y tres 1271, Montevideo, Uruguay	Financial Company	99.99%	100.00%	99.99%	100.00%
Supervielle Productores Asesores de Seguros S.A	Controlled	San Martin 344, C.A.B.A., Argentina	Insurance Broker	95.24%	100.00%	95.24%	100.00%
Bolsillo Digital S.A.U.	Controlled	Bartolomé Mitre 434, C.A.B.A., Argentina	Computer Services	-	100.00%	-	100.00%
Supervielle Agente de Negociación S.A.U.	Controlled	Tres de Febrero 515, Rosario, Santa Fe	Settlement and Clearing Agent	100.00%	100.00%	100.00%	100.00%
Dólar IOL S.A.U.	Controlled	Av. Colón 2535, Mar del Plata, Buenos Aires	Services and exchange agency	100.00%	100.00%	100.00%	100.00%

(1)

Grupo Supervielle S.A.’s direct and indirect interest in Banco Supervielle S,A votes amounts to 99.87% as of 09/30/22 and 12/31/21

2.	CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of 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:

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

(a)	Fair value of derivatives and other financial isntruments

The fair value of financial instruments not listed in active markets is determined by using valuation techniques. Such techniques are regularly validated and reviewed by qualified personnel independent from the area which developed them. All models are assessed and adjusted before being used in order to ensure that results reflect current information and comparable market prices. As long as possible, models rely on observable inputs only; however, certain factors, such as implicit rates in the last available tender for similar securities and spot rate curves, require the use of estimates. Changes in the assumptions of these factors may affect the reported fair value of financial instruments.

(b)	Allowances for loan losses and advances

The Group recognizes the allowance for loan losses under the expected credit loss method included in IFRS 9. The most significant judgements of the model relate to defining what is considered to be a significant increase in credit risk and in making assumptions and estimates to incorporate relevant information about past events, current conditions and forecasts of economic conditions. The impact of the forecasts of economic conditions are determined based on the weighted average of three internally developed macroeconomic scenarios that take into consideration the Group´s economic outlook as derived through forecast macroeconomic variables, which include Inflation rate, monthly economic activity estimator and private sector wage. A high degree of uncertainty is involved in making estimations using assumptions that are highly subjective and very sensitive to the risk factors.

Note 1.2 provides more detail of how the expected credit loss allowance is measured.

(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 lineal manner. The Group monitores 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 judgement in the identification of impairment indicators for property, plant and equipment and intangible assets. The Group has determined that there were no indications of impairment for any of the periods presented in its financial statement; therefore, no recoverable value has been estimated, except for certain real property that, due to the post-pandemic macro context and a devaluation of the dollar well below inflation, generated deterioration.

(d)	Income tax and deferred tax

A significant judgement is required to determine liabilities and assets from current and deferred taxes, The current tax is provisioned in accordance with the amounts expected to be paid and the deferred taz is provisioned over temporary differences between tax basis of assets and liabilities and book values to aliquots expected to be in force when reversing them.

Assets from deferred tax are recognized upon the possibility of relying on future taxable earnings against which temporary differences can be utilized, 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 utilized 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 expactations.

3.	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.

The Bank´s clients receive the following services:

• Personal and Business Banking Segment:

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

-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:

Personal and Business Banking– Includes a wide range of financial products and services targeted to small companies, included in Entrepreneurs & SMSs, and high income people identified with so-called Identité proposal. Likewise, the Bank offers services and products targeted to retirees and pensioners.

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

Bank 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 negotiable securities and develops business with the financial sector clients and whole sale non-financial sector clients. Consumer – Includes loans and other credit products targeted to middle and lower-middle income sectors and non-financial products and services.

Consumer Finance– Includes loans and other credit products targeted to middle and low-middle income sectors and non-financial products and services.

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

Asset Management and Other Services– Includes MFs administered by the Group. Includes also assets, liabilities and results of Portal Integral de Inversiones S.A.U, InvertirOnline S.A.U., IOL Holding S.A, Supervielle Asset Management S.A., Dólar IOL S.A.U. and Bolsillo Digital S.A.U.

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 September 30, 2022 and 2021, and December 31, 2021 respectively:

Result by segments	Personal and Business Banking	Corporate Banking	Bank Treasury	Consumer Finance	Insurance	Asset Management and Other Services	Adjustments	Total as of 09.30.2022
Interest income	41,789,767	21,661,831	82,704,957	8,234,657	2,472	5,851	(2,393,535)	152,006,000
Interest expenses	(28,872,667)	(5,786,244)	(58,638,622)	(5,669,932)	-	-	3,075,558	(95,891,907)
Distribution of results by Treasury	9,401,642	(7,764,006)	(1,637,636)	-	-	-	-	-
Net interest income	22,318,742	8,111,581	22,428,699	2,564,725	2,472	5,851	682,023	56,114,093
Services Fee Income	12,913,217	1,420,679	118,304	2,951,465	-	2,689,136	(391,451)	19,701,350
Services Fee Expenses	(4,968,696)	(374,400)	(257,571)	(1,776,075)	-	(131,223)	458,954	(7,049,011)
Income from insurance activities	-	-	-	-	2,624,346	-	322,031	2,946,377
Net Service Fee Income	7,944,521	1,046,279	(139,267)	1,175,390	2,624,346	2,557,913	389,534	15,598,716
Subtotal	30,263,263	9,157,860	22,289,432	3,740,115	2,626,818	2,563,764	1,071,557	71,712,809
Net income from financial instruments at fair value through profit or loss	-	-	9,127,889	839,807	873,634	859,164	448,756	12,149,250
Income from withdrawal of assets rated at amortized cost	-	-	451,196	-	-	-	(2,382)	448,814
Exchange rate difference on gold and foreign currency	448,629	94,241	1,074,647	(21,526)	(72)	57,169	253,312	1,906,400
NIFFI And Exchange Rate Differences	448,629	94,241	10,653,732	818,281	873,562	916,333	699,686	14,504,464

GRUPO SUPERVIELLE S.A.

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

Presented on comparative basis

(Expressed in thousands of pesos in homogeneous currency)

Result by segments	Personal and Business Banking	Corporate Banking	Bank Treasury	Consumer Finance	Insurance	Asset Management and Other Services	Adjustments	Total as of 09.30.2022
Result from exposure to changes in the purchasing power of the currency	4,641,423	(3,017,814)	(10,529,241)	552,044	(1,214,444)	(657,319)	(1,773,028)	(11,998,379)
Other operating income	2,582,799	2,423,756	182,660	1,216,251	16,609	131,342	(571,407)	5,982,010
Loan loss provisions	(5,560,629)	(457,609)	68,372	(2,741,245)	-	-	-	(8,691,111)
Net operating income	32,375,485	8,200,434	22,664,955	3,585,446	2,302,545	2,954,120	(573,192)	71,509,793
Personnel expenses	(23,420,227)	(3,487,004)	(1,813,610)	(3,639,505)	(729,210)	(1,517,967)	(31,061)	(34,638,584)
Administration expenses	(12,807,186)	(1,125,313)	(859,822)	(2,548,735)	(568,960)	(605,269)	304,132	(18,211,153)
Depreciations and impairment of non-financial assets	(4,322,675)	(646,197)	(287,675)	(168,742)	(67,737)	(47,473)	(97,338)	(5,637,837)
Other operating expenses	(6,861,970)	(2,324,222)	(4,615,129)	(1,262,873)	(354)	(267,685)	(45,892)	(15,378,125)
Operating income	(15,036,573)	617,698	15,088,719	(4,034,409)	936,284	515,726	(443,351)	(2,355,906)
Result from associates and joint ventures	-	-	-	(271,883)	-	-	271,883	-
Result before taxes	(15,036,573)	617,698	15,088,719	(4,306,292)	936,284	515,726	(171,468)	(2,355,906)
Income tax	5,386,827	(53,466)	(4,977,947)	(301,187)	(418,199)	(206,042)	(143,121)	(713,135)
Net (loss) / income	(9,649,746)	564,232	10,110,772	(4,607,479)	518,085	309,684	(314,589)	(3,069,041)
Net (loss) / income for the period attributable to owners of the parent company	(9,649,746)	564,232	10,110,772	(4,607,479)	518,085	309,684	(311,354)	(3,065,806)
Net (loss) / income for the period attributable to non-controlling interest	-	-	-	-	-	-	(3,235)	(3,235)
Other comprehensive (loss) / income	(9,645)	(3,401)	(690,949)	-	-	33,788	(39,298)	(709,505)
Other comprehensive (loss) / income attributable to owners of the parent company	(9,645)	(3,401)	(690,949)	-	-	33,788	(38,577)	(708,784)
Other comprehensive (loss) / income attributable to non-controlling interest	-	-	-	-	-	-	(721)	(721)
Comprehensive (loss) / income for the year	(9,659,391)	560,831	9,419,823	(4,607,479)	518,085	343,472	(353,887)	(3,778,546)
Comprehensive (loss) / income attributable to owners of the parent company	(9,659,391)	560,831	9,419,823	(4,607,479)	518,085	343,472	(349,931)	(3,774,590)
Comprehensive (loss) / income attributable to non-controlling interests	-	-	-	-	-	-	(3,956)	(3,956)

Assets by segments	Personal and Business Banking	Corporate Banking	Bank Treasury	Consumer Finance	Insurance	Asset Management and Other Services	Adjustments	Total as of 09.30.2022
Cash and due from banks	12,722,407	481,308	20,223,700	1,000,181	2,433	278,152	11,130	34,719,311
Debt securities at fair value through profit or loss	-	2,706,222	11,762,070	955,213	-	25,272	-	15,448,777
Loans and other financing	116,658,522	68,176,857	16,729,516	12,244,090	1,876,962	136,674	(11,280,134)	204,542,487
Other Assets	13,982,508	4,507,126	261,576,481	8,321,947	2,964,495	1,698,893	15,050,465	308,101,915
Total Assets	143,363,437	75,871,513	310,291,767	22,521,431	4,843,890	2,138,991	3,781,461	562,812,490

Liabilities by segments
Deposits	194,921,518	45,119,813	184,796,274	3,541,667	-	56,569	(421,862)	428,013,979
Financing received from the Argentine Central Bank and others financial institutions	31,137	112	4,634,435	11,039,981	-	94,747	(11,134,729)	4,665,683
Unsubordinated debt securities	12,036	4,244	541,241	-	-	-	-	557,521
Other liabilities	16,709,230	4,093,387	7,183,143	2,944,525	2,374,024	725,618	14,468,984	48,498,911
Total Liabilities	211,673,921	49,217,556	197,155,093	17,526,173	2,374,024	876,934	2,912,393	481,736,094

Result by segments	Personal and Business Banking	Corporate Banking	Bank Treasury	Consumer Finance	Insurance	Asset Management and Other Services	Adjustments	Total as of 09.30.2021
Interest income	38,073,112	23,657,694	58,723,274	10,120,453	1,323	9,505	(1,958,255)	128,627,106
Interest expenses	(20,087,800)	(3,682,785)	(48,838,624)	(4,574,265)	-	-	1,920,418	(75,263,056)
Distribution of results by Treasury	6,248,151	(11,138,449)	4,890,298	-	-	-	-	-
Net interest income	24,233,463	8,836,460	14,774,948	5,546,188	1,323	9,505	(37,837)	53,364,050
Services Fee Income	13,129,529	1,233,551	74,102	3,368,709	-	3,335,194	(491,858)	20,649,227
Services Fee Expenses	(4,307,481)	(416,218)	(196,450)	(1,349,387)	-	(169,928)	165,015	(6,274,449)
Income from insurance activities	-	-	-	-	2,401,073	-	366,858	2,767,931
Net Service Fee Income	8,822,048	817,333	(122,348)	2,019,322	2,401,073	3,165,266<