Banco do Estado do Rio Grande do Sul (BRSR6) Q3 2025 earnings summary

Executive summary

• Net income for the first nine months of 2025 reached R$995.96 million, up 50% year-over-year, with Q3 net income up 66.7% compared to Q3 2024, driven by higher financial margin, service income, and effective credit risk management, despite increased administrative and provision expenses.

• Total assets grew to R$158.8 billion, up 11.6% year-over-year, and shareholders' equity increased to R$11.1 billion, reflecting retained earnings and actuarial adjustments.

• Opened over 250,000 new digital accounts, nearing 300,000 by end of November, reflecting strong digitalization efforts.

• Integrated Vero Network into core business, expanding retail presence and product mix, with 408.6 million transactions totaling R$37.8 billion.

• Focused on productivity gains, digital transformation, and cost containment.

Financial highlights

• Net interest income for 9M25 was R$4.87 billion, up from R$4.18 billion in 9M24, with Q3 at R$1.6 billion, up 11% year-over-year.

• Loan portfolio grew 11.1% year-over-year to R$64.1 billion, with commercial loans at R$39.3 billion and long-term financing up 192.7%.

• Funding reached R$107.2 billion, up 14.6% year-over-year, and assets under management increased 12% to R$20.6 billion.

• Administrative expenses increased 3.4% in nine months, with personnel expenses up 5.7%.

• Service fee income for 9M25 was R$1.58 billion, a 1.3% increase year-over-year.

Outlook and guidance

• Strategy remains focused on receivables, cash flow, and small business lending, with plans to grow payroll portfolio as market stabilizes.

• Expects to benefit from potential SELIC rate decreases, improving spreads.

• Conservative approach to unsecured lending, prioritizing collateralized operations.

• Management expects continued focus on digital transformation, operational efficiency, and sustainable growth, with ongoing investments in IT and innovation.

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