Banco do Estado do Rio Grande do Sul (BRSR6) Q2 2026 earnings summary

Executive summary

• Net income for 1H2026 was R$547.0 million, down 11.7% year-over-year, mainly due to higher credit risk losses and moderate growth in administrative expenses, partially offset by lower labor, tax, and civil provisions.

• Net income for 2Q2026 was R$325.4 million, up 46.8% sequentially from 1Q2026 but down 13.9% year-over-year.

• Return on average equity (ROAE) for 2Q2026 was 11.4%, up from 7.9% in 1Q2026 but down from 14.3% in 2Q2025.

• Digital transformation advanced, with 100% app-based accounts and expanded online services for individuals and corporates.

• Labor disputes largely resolved, with agreements covering nearly 600 employees, reducing future liabilities.

Financial highlights

• Financial margin for 1H2026 reached R$3,357.9 million (+5.5% YoY); annualized margin on interest-earning assets was 4.43%, down 0.17 p.p. YoY.

• Net interest income for 2Q2026 was R$1,622.1 million, down 6.6% sequentially and 1.1% year-over-year.

• Total loan portfolio stood at R$64.4 billion as of June 2026, stable versus December 2025, with growth in corporate working capital and foreign exchange credit offset by declines in rural and payroll-deductible loans.

• Total funding reached R$116.8 billion as of June 2026, up 12.2% year-over-year.

• Administrative expenses for 1H2026 totaled R$2,545.9 million, up 7.9% year-over-year, mainly due to higher personnel costs.

Outlook and guidance

• Guidance for 2026 revised: total credit portfolio growth range lowered to 2%-7%, financial margin and profitability expected below initial projections due to higher funding costs and product mix shift.

• Net interest income guidance set at 5%-10% growth; cost of risk expected between 1.5%-2.5%.

• Administrative expenses guidance unchanged at 5%-9% for the year.

• Expectation for capital ratio to gradually recover to near 14% over the next few years.

• Management continues to focus on digitalization, risk control, and expanding commercial relationships, especially with public sector payroll clients.