As of December 31, 2022 and 2021 the composition of the loan portfolio is as follows:

Expected credit loss allowance recognised in the period is affected by a range of factors as follows:

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

An analysis of changes in the gross carrying amount and the corresponding ECL allowance is, as follows:


	Assets Before Allowances				ECL Allowance
	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
Balance at the beginning of the year	282,576,354	23,960,325	15,889,180	322,425,859	3,555,515	5,147,174	10,869,777	19,572,466
Transfers
1 to 2	(4,339,851)	4,339,851	—	—	(122,595)	930,556	—	807,961
1 to 3	(674,849)	—	674,849	—	(24,667)	—	1,271,329	1,246,662
2 to 3	—	(530,731)	530,731	—	—	(179,202)	852,277	673,075
2 to 1	3,616,758	(3,616,758)	—	—	(4,539)	(1,293,359)	—	(1,297,898)
3 to 2	—	235,228	(235,228)	—	—	(54,830)	(183,335)	(238,165)
3 to 1	210,929	—	(210,929)	—	(58,052)	—	(144,059)	(202,111)
Additions	130,836,311	8,708,725	2,894,580	142,439,616	2,032,680	2,262,129	4,783,651	9,078,460
Disposals	(70,170,490)	(4,378,611)	(2,388,699)	(76,937,800)	(824,470)	(1,518,666)	(3,229,038)	(5,572,174)
Net changes of financial assets	(125,950,841)	(8,211,017)	787,273	(133,374,585)	(237,515)	(508,239)	685,215	(60,539)
Write-Offs	(1,417,679)	(1,955,244)	(9,267,030)	(12,639,953)	(1,417,679)	(1,955,244)	(9,267,030)	(12,639,953)
Exchange Differences and Others	5,002,541	202,515	695,057	5,900,113	136,997	95,935	621,336	854,268
Gross carrying amount at December 31, 2022	219,689,183	18,754,283	9,369,784	247,813,250	3,035,675	2,926,254	6,260,123	12,222,052


	Assets Before Allowances				ECL Allowance
	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
Balance at the beginning of the year	283,660,430	28,956,778	22,040,628	334,657,836	5,457,993	5,847,347	13,465,342	24,770,682
Transfers
1 to 2	(5,272,473)	5,272,473	—	—	(280,039)	1,438,353	—	1,158,314
1 to 3	(3,251,536)	—	3,251,536	—	(415,455)	—	4,850,154	4,434,699
2 to 3	—	(673,799)	673,799	—	—	(418,256)	771,356	353,100
2 to 1	4,815,840	(4,815,840)	—	—	55,760	(724,016)	—	(668,256)
3 to 2	—	849,906	(849,906)	—	—	200,549	(833,305)	(632,756)
3 to 1	1,069,850	—	(1,069,850)	—	(1,556)	—	(564,155)	(565,711)
Net changes of financial assets	2,149,875	(4,301,164)	1,703,495	(447,794)	1,532,578	554,927	3,314,566	5,402,071
Write-Offs	(2,844,265)	(1,807,285)	(10,163,515)	(14,815,065)	(2,844,265)	(1,807,286)	(10,163,515)	(14,815,066)
Exchange Differences and Others	2,248,633	479,256	302,993	3,030,882	50,499	55,556	29,334	135,389
Gross carrying amount at December 31, 2021	282,576,354	23,960,325	15,889,180	322,425,859	3,555,515	5,147,174	10,869,777	19,572,466

Collateral and other credit enhancements

Collateral is an instrument pledged as security for repayment of a loan, to be forfeited in the event of default. The Entity accepts collateral as security before a potential breach on behalf of a debtor occurs.

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

Grupo Supervielle monitors collateral held for financial assets considered to be credit-impaired as it becomes more likely that Grupo Supervielle will take possession of collateral to mitigate potential credit losses.


		Allowances
	Gross	for loans		Fair value of
Credit Impaired loans	exposure	losses	Book value	collateral
Overdrafts	173,411	129,221	44,190	—
Financial Lease	38,714	14,775	23,939	32,809
Promissory Notes	134,129	69,054	65,075	106,568
Mortgage loans	709,661	399,025	310,636	221,767
Personal loans	2,583,516	2,263,733	319,783	—
Pledge loans	405,197	292,372	112,825	112,825
Credit cards	2,354,959	2,175,042	179,917	—
Other	2,970,197	916,900	2,053,297	2,053,295
Total	9,369,784	6,260,123	3,109,661	2,527,264

Write-off policy

Grupo Supervielle writes off, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include: (i) ceasing enforcement activity and (ii) where Grupo Supervielle´s recovery method is foreclosing on collateral and the value of the collateral is such that there is no reasonable expectation of recovering in full.

Grupo Supervielle may write-off financial assets that are still subject to enforcement activity, The outstanding contractual amounts of such assets written off during the year ended on December 31, 2022 and 2021 amount to 7,865,755 and 15,387,785 respectively.Grupo Supervielle still seeks to recover amounts it is legally owed in full, but which have been partially written off due to no reasonable expectation of recovery.


	12.31.2022	12.31.2021
Balance at the beginning of the year	15,387,785	21,164,081
Additions	12,639,953	14,815,066
Disposals	(9,711,831)	(6,320,836)
Cash collection	(1,924,172)	(2,129,966)
Portfolio sales	(528,944)	(1,040,168)
Condonation	(7,258,715)	(3,150,702)
Exchange differences and other movements	(10,450,132)	(14,270,525)
Gross carrying amount	7,865,775	15,387,785