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

Executive summary

• Net income reached R$619.2 million in 1H2025, up 42.4% year-over-year, and R$377.7 million in 2Q25, up 56.4% sequentially and 52.7% year-over-year, driven by higher financial margin, improved service income, and moderate expense growth.

• ROAE improved to 14.3% in 2Q25, a 4.4 percentage point increase year-over-year.

• Loan portfolio grew to R$64.0 billion as of June 2025, up 17.0% year-over-year.

• Funding surpassed R$100 billion for the first time, reaching R$104.1 billion at June 2025, up 11.3% year-over-year.

• Moody's upgraded the issuer rating to AA-.br, and Fitch reaffirmed BB- and AA+ (bra) with a stable outlook.

Financial highlights

• Net interest income for 2Q25 was R$1.64 billion, up 6.4% sequentially and 9.8% year-over-year; 1H25 net interest income reached R$3.18 billion, up 9.5% year-over-year.

• Administrative expenses increased 5.2% year-over-year and 3.5% quarter-on-quarter, totaling R$2.36 billion in 1H25.

• Service fee income in 2Q25 was R$525.5 million, up 2.7% year-over-year; 1H25 service fees totaled R$1.05 billion, up 1.8% year-over-year.

• Efficiency ratio improved to 63.4% from 64.9% year-over-year.

• Earnings per share for 1H2025 was R$1.51, up 43% year-over-year.

Outlook and guidance

• 2025 guidance maintained: loan portfolio growth 6–10%, financial margin 7–12%, credit cost 1.2–2.2%, administrative expenses 7–11%.

• Continued focus on company lending with cautious credit appetite due to high Selic rates and market competition.

• Expectation of sustained positive results through year-end.

• Moderate growth anticipated in service revenues due to regulatory and market constraints.

• Management highlights risks from market competition, regulatory changes, and macroeconomic uncertainties.