Banco BMG (BMGB4) Q1 2025 earnings summary

Executive summary

• Recurring net income reached R$115 million in 1Q25, up between 19% and 22% year-over-year, with ROE/ROAE at 12.1% versus 9.9% in 1Q24, reflecting sustainable results and operational efficiency.

• Strategic focus on evolving from a transactional to a relational bank, increasing cross-selling index to 2.09 in 1Q25 from 1.87 in 1Q24.

• Expanded customer base and digital origination, with 22.5% YoY growth in digital origination and 793 million clients.

• Enhanced customer service, improving NPS and moving up 15 positions in Bacen complaints ranking.

• Acquisition of the remaining 40% stake in Bmg Seguradora announced, aiming for 100% ownership and reinforcing insurance as a strategic segment.

Financial highlights

• Total credit portfolio reached R$26.8 billion in 1Q25, up 7.8% year-over-year; secured loans (consignados + FGTS) represent 71% of the portfolio.

• Net interest margin reached R$1,449 million, up 10.8% year-over-year; net interest margin after cost of credit at R$774 million, up 8.4%.

• Operational efficiency ratio improved to 47.9% in 1Q25 from 51.4% in 4Q24, with a 4% reduction in quarterly expenses.

• Insurance premiums issued reached BRL 118 million, with a return on capital of 98% and a combined ratio of 78%.

• Financial margin continued to grow, supported by core products and reduced credit costs.

Outlook and guidance

• Plans to expand to about 900 help! stores by end-2025, with continued focus on digital and physical integration.

• Strategic priorities for 2025 include increasing addressable market, product offering, and efficiency through AI and digitalization.

• Portfolio assignment to be used opportunistically based on market conditions and profitability.

• Regulatory changes (CMN Resolution 4,966/21) impact capital base, Basel ratio, and provisioning, affecting comparability with prior periods.