Banco do Estado do Rio Grande do Sul (BRSR6) Q2 2025 earnings summary

Executive summary

• Net income for 1H2025 reached R$619.2 million, up 42.4% year-over-year, with 2Q25 net income at R$377.7 million, up 56.4% quarter-on-quarter and 52.7% year-over-year.

• ROAE improved to 14.3% in 2Q25, a 4.4 percentage point increase from 1Q25 and 5.0 points year-over-year.

• Total assets grew 13.6% year-over-year to R$156,054.2 million, with loan portfolio up 17.0% to R$64,018.3 million.

• Moody's upgraded the issuer rating to AA-.br, and Fitch reaffirmed BB- and AA+ (bra) with a stable outlook.

• Digital transformation, new products, and improved client experience drove growth.

Financial highlights

• Net interest income for 2Q25 was R$1.64 billion, up 6.4% sequentially and 9.8% year-over-year; 1H25 net interest income reached R$3.18 billion, up 9.5% year-over-year.

• Administrative expenses in 2Q25 were R$1.2 billion, up 3.5% from 1Q25 and 5.2% year-over-year; 1H25 expenses totaled R$2.36 billion, up 4.6% year-over-year.

• Service fee income in 2Q25 was R$525.5 million, up 0.8% sequentially and 2.7% year-over-year; 1H25 service fees totaled R$1.05 billion, up 1.8% year-over-year.

• Efficiency ratio improved to 63.4% from 64.9% year-over-year.

• Earnings per share for 1H2025 was R$1.51, up 43% year-over-year.

Outlook and guidance

• 2025 guidance maintained: loan portfolio growth 6–10%, financial margin 7–12%, credit cost 1.2–2.2%, administrative expenses 7–11%.

• Continued focus on company lending with cautious credit appetite due to high interest rates.

• Positive expectations for year-end results, with ongoing digital and operational improvements.

• Management highlights risks from market competition, regulatory changes, and macroeconomic uncertainties.

• No major surprises expected in agribusiness portfolio; risk remains controlled.