Banco BMG (BMGB4) Q1 2025 earnings summary

Executive summary

• Recurring net income reached R$115 million in 1Q25, up 21.7% year-over-year, with ROAE at 12.1% versus 9.9% in 1Q24, reflecting sustainable results and operational efficiency.

• Strategic focus on deepening client relationships, digitalization, and operational efficiency, targeting clients over 50 in classes C and D.

• Cross-selling index increased to 2.09 in 1Q25 from 1.87 in 1Q24, with digital origination up 22.5% YoY and 793 million clients.

• Enhanced customer service, with improved NPS and a 15-position rise in Bacen complaints ranking.

• ESG initiatives advanced, including age diversity certification and robust governance.

Financial highlights

• Credit portfolio reached R$26.8 billion in 1Q25, up 7.8% year-over-year, driven by payroll and personal credit products.

• Net income was R$115 million, up 21.7% year-over-year; net interest margin reached R$1,449 million, up 10.8% YoY.

• Efficiency ratio improved to 47.9%, a 5.8 p.p. year-over-year gain; operational expenses rose just 2.2%.

• Insurance segment expanded, with Bmg Seguridade premiums sold at R$297 million (+41.2% YoY) and Bmg Seguradora issued R$118 million in premiums (+66.5% YoY).

• Institutional funding grew 66.8% YoY, now 30% of total funding; total funding at R$33.5 billion.

Outlook and guidance

• Plans to expand to about 900 help! stores by end-2025, focusing on digital and physical integration and AI-driven efficiency.

• Strategic priorities include sustainable profitability, asset and capital quality, and digital transformation.

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