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

Executive summary

• Net income for 2025 reached R$1.6 billion, a 75.2% year-over-year increase, with ROE/ROAE at 14.9%, reflecting robust profitability and successful portfolio restructuring.

• Fourth quarter 2025 net income was R$656.9 million, up 131% year-over-year and 99.8% sequentially.

• Total assets grew 10.9% to R$163.5 billion, with equity up 7.3% to R$11,178.4 million.

• The year saw significant digital transformation, new service models, and expansion in corporate and foreign exchange segments.

• Administrative expenses remained below inflation, aided by a collective bargaining agreement that shifted over 3,000 employees to six-hour shifts, improving cost structure.

Financial highlights

• Net interest income for 2025 was R$6.4 billion, up 8.6% year-over-year.

• Loan portfolio reached R$65.0 billion at year-end, up 4.8% year-over-year, mainly from commercial and company accounts.

• Total funding reached R$112.4 billion, a 15.4% year-over-year increase.

• Administrative expenses for 2025 were R$4.9 billion, up 5.2% year-over-year.

• Service fee income grew 1.6% year-over-year to R$2.14 billion.

Outlook and guidance

• 2026 guidance: loan portfolio growth of 3–8%, net interest/financial margin growth of 8–13%, cost of risk 1.2–2.2%, and administrative expenses 5–9%.

• Focus remains on expanding company and individual accounts, with limited growth in rural and real estate loans.

• ROE is expected to remain strong, though not necessarily at the 2025 level, as the bank consolidates market share and operational improvements.