Banco BMG (BMGB4) Q4 2025 earnings summary

Executive summary

• Net income for 2025 reached R$561 million, up 27.2% year-over-year, with ROAE at 14.4% for the year and 19.0% in 4Q25.

• Financial margin for 2025 was R$5,607 million (+2.5% YoY), with margin after cost of credit at R$3,361 million (+8.8% YoY).

• Efficiency ratio for 2025 was 54.2%, up 1.4 p.p. from 2024, reflecting ongoing cost management.

• Credit portfolio ended 2025 at R$23,193 million, down 11.9% year-over-year, mainly due to reduction in non-strategic US payroll loans.

• Celebrated 95 years with a strong, recognized brand, expanding digital and physical channels, and focusing on clients aged 50+.

Financial highlights

• Net income for 2025 was R$561 million (+27.2% YoY); 4Q25 net income was R$172 million (+38% YoY).

• ROAE improved to 14.4% in 2025 and 19.0% in 4Q25; efficiency ratio at 57.8% in 4Q25.

• Financial margin after cost of credit for 2025 was R$3,361 million (+8.8% YoY).

• Dividend yield over the last 12 months was 11.2%.

• Total funding at R$33,287 million (+1.1% YoY); institutional market funding at R$12.6 billion (+32.3% YoY).

Outlook and guidance

• Capital increase of up to R$214 million planned for Mar/26 to reinforce Basel Index and support growth.

• Focus on profitability, asset quality, digital transformation, and expanding insurance and digital offerings.

• Private payroll loan origination expected to reach 30%-35% of new business, becoming a main growth driver in 2026.