Banco BMG (BMGB4) Q2 2024 earnings summary

Executive summary

• Net profit reached BRL 105 million in Q2 2024, with ROAE at 10.8%, up 12% from the previous quarter; 1H24 net income totaled R$201 million, a significant increase from R$9 million in 1H23.

• Focused on core banking activities, divesting non-strategic assets like Granito, and emphasizing sustainable results, digital transformation, and customer satisfaction.

• Serves 10.2 million clients, with 68% holding credit products and 26% with insurance products.

• Received awards for customer service and published its first Sustainability Report in July 2024.

Financial highlights

• Credit portfolio totaled R$24.3 billion in 2Q24, down 2.4% sequentially, mainly due to R$1.2 billion in FGTS anticipation portfolio assignment.

• Net interest margin after cost of credit was R$746 million in 2Q24, up 4.5% sequentially and 20.3% year-over-year.

• Basel Ratio at 13.9% as of June 30, 2024, with Tier I at 10.3%.

• Efficiency ratio improved to 54.0% in 1H24, a 6.6 p.p. gain year-over-year.

• Funding balance increased 16.7% year-over-year to R$35,909 million.

Outlook and guidance

• Focus remains on sustainable result generation, cost efficiency, digital transformation, and strengthening client relationships.

• Ongoing initiatives in ESG, financial education, and digital insurance expected to support future growth.

• Continued prioritization of payroll and retail credit origination, with digitalization and operational improvements.