Banco BMG (BMGB4) Q1 2026 earnings summary

Executive summary

• Strategy centers on client-centric omnichannel service, targeting clients aged 50+ in C and D classes, leveraging both physical and digital channels to serve a broad addressable market of over 103 million people, including retirees and private payroll customers.

• Over 9 million clients achieved, with 91% service satisfaction and improved Central Bank complaints ranking.

• Expansion of physical presence to 955 stores, up by 121 year-over-year, and franchisees to reach underserved areas.

• Strong ESG commitment, donating 1% of net income to socio-environmental causes and investing R$31 million in social initiatives.

• Efficiency ratio improved to 52.5% from 57.8% in 4Q25, reflecting cost discipline and operational improvements.

Financial highlights

• Recurring net income reached R$147 million in 1Q26, up 28% year-over-year from R$115 million in 1Q25.

• ROAE was 15.3% in 1Q26, up from 10.7% in 1Q25.

• Net revenue per client grew 13% year-over-year to R$56 per month.

• Net interest margin after cost of credit was R$853 million, up 10.1% year-over-year.

• Cost-to-serve per client decreased to R$28/month, with an efficiency ratio improving to 47.9%.

Outlook and guidance

• Focus on sustainable growth, expanding profitable payroll and personal credit products, digital origination, and operational efficiency.

• Continued modernization of technology platform and increased use of AI for efficiency.

• Expectation of continued evolution each quarter despite a challenging market.

• Continued strengthening of capital base, with a pro forma Basel Index of 12.9% after a R$214 million capital increase.