Banco do Estado do Rio Grande do Sul (BRSR6) investor relations material

Executive summary

• 9M 2026 net income was R$704.8m, down 25.7% YoY; Q3 net income fell 52.0% YoY to R$157.8m as higher credit losses weighed on results.

• Loan portfolio grew 3.2% YoY to R$66.142bn; 90-day delinquency rose to 4.74%.

• Strategy emphasizes cautious lending growth, stronger guarantees and returns, technology modernization, efficiency and customer experience.

Financial highlights

• 9M net interest income was R$5.016bn, up 4.7% YoY; Q3 was R$1.658bn, up 3.3% YoY. Risk-adjusted net interest income fell 4.2% to R$3.905bn in 9M.

• 9M net credit losses, net of recoveries, rose 56.3% YoY to R$1.111bn; administrative expenses increased 8.8% to R$3.906bn and commissions and fees rose 0.5% to R$1.587bn.

• Total funding was R$117.7bn at September-end, up 9.8% YoY; funds raised and managed totaled R$141.365bn, up 10.6% YoY.

Outlook and guidance

• 2026 guidance maintained: loan portfolio growth of 2%–7%, financial margin growth of 5%–10%, credit cost of 1.52%–2.5%, and administrative expense growth of 5%–9%.

• Management expects high interest rates and pressure on credit and funding costs to persist; it will not pursue loan growth at any price. Provisioning is expected to follow a straight-line path through year-end and early 2027.

• Payroll lending is expected to grow over the next five years, with focus on state and municipal payroll and internally originated INSS loans.