Banco BMG (BMGB4) Q2 2025 earnings summary

Executive summary

• Net income for 1H25 reached R$240 million, up 19.4% year-over-year, with ROAE at 12.7% for 1H25 and 14.3% in 2Q25; recurring net income for 2Q25 was R$125 million, up 18.9% YoY.

• Financial margin after cost of credit rose 19.3% YoY to R$891 million in 2Q25; efficiency ratio improved to 50.8% in 1H25, reflecting operational efficiency and digital investments.

• Expanded customer base to over 10 million, with cross-sell index at 2.25 products per customer (+15% YoY); digital and physical distribution channels grew.

• Retail insurance segment grew, with Bmg Corretora premiums at R$265 million (+8.5% YoY) and Bmg Seguradora at R$112 million (+30.5% YoY); nearly 10 million policies.

• Received multiple awards, including Great Place to Work, recognition for mental health initiatives, and ESG achievements.

Financial highlights

• Net income for 1H25 was R$240 million (+19.4% YoY); 2Q25 net income was R$125 million (+18.9% YoY); financial margin after cost of credit for 1H25 was R$1,665 million (+14.0% YoY).

• Net interest margin at 17.8% in 2Q25; efficiency ratio improved to 50.8% in 1H25 and 53.9% in 2Q25.

• Total credit portfolio at R$24,680 million in June 2025 (+1.7% YoY); funding balance reached R$35,748 million (+6.9% QoQ).

• Free cash reached R$6.8 billion (+33.2% YoY); dividend yield at 10.8%.

• Interest on Shareholders’ Equity provisioned at R$121.9 million for 1H25.

Outlook and guidance

• Focus on sustainable profitability, asset quality, and remixing assets toward payroll and personal credit.

• Planned expansion to around 900 stores in 2025 and ongoing digital transformation.

• Announced capital increase of at least R$35.4 million and up to R$49.5 million to reinforce capital base.

• Ongoing strategy to be a recurring issuer in the capital market to enhance liquidity.

• Anticipates INSS marketplace to become operational in September, providing an additional origination channel.