Banco ABC Brasil (ABCB4) Q4 2025 earnings summary

Executive summary

• Net income for 2025 reached R$1.0 billion, up 3.2% year-over-year, with ROAE at 15.2% and all guidance targets met.

• 4Q25 net income was R$275.5 million, up 7.3% quarter-over-quarter and 13.4% year-over-year, with a 16.3% ROAE.

• Expanded credit portfolio grew 3.0% year-over-year to R$54.7 billion, in line with guidance.

• The year was marked by disciplined credit granting amid high interest rates and a slow economy.

• Consolidated financial statements for 2025 and 2024 were audited and present fairly the financial position in accordance with IFRS.

Financial highlights

• Net interest income rose 6.8% year-over-year to R$2.54 billion, with NIM stable at 4.3% for the year and 4.7% in 4Q25.

• Efficiency ratio improved to 39.2% for 2025, with 37.9% in 4Q25.

• Service revenues reached R$125.9 million in 4Q25, up 13.8% quarter-over-quarter.

• Coverage ratio for provisions was 501% for past due over 90 days.

• Earnings per share (basic) increased to R$4.25 from R$3.89 year-over-year.

Outlook and guidance

• 2026 guidance: credit portfolio growth of 6–10% overall, 12–18% for the middle segment.

• Expenses expected to grow 4–8%, with an efficiency ratio target of 37.5–39.5%.

• NIM expected to expand gradually, driven by a higher mix of middle segment and better product spreads.

• Asset quality expected to remain healthy, with default rates around 0.7% barring negative macro surprises.

• Guidance for 2026 is subject to market risks and management assumptions.