Banco do Estado do Rio Grande do Sul (BRSR6) Q4 2025 earnings summary

Executive summary

• Net income for 2025 reached R$1.6 billion, up 75.2% year-over-year, with ROE/ROAE at 14.9%, reflecting strong financial margin, service income, and digital transformation initiatives.

• Loan portfolio grew 4.8% to R$65.0 billion, mainly from company accounts and commercial lending, while rural and real estate portfolios remained stable.

• Administrative expenses were well managed, with growth below inflation, and a collective bargaining agreement led to six-hour workdays for over 3,000 employees.

• The bank prioritized higher-margin credit lines, streamlined its portfolio, and focused on profitability and risk management.

• Significant digital transformation and new service models expanded the corporate and foreign exchange segments.

Financial highlights

• Net interest income for 2025 was R$6.4 billion, up 8.6% year-over-year.

• Funding reached R$112.4 billion, a 15.4% increase year-over-year.

• Service fee income grew 1.6% to R$2.14 billion.

• Administrative expenses for 2025 were R$4.9 billion, up 5.2% year-over-year.

• Net income for 4Q2025 was R$656.9 million, up 99.8% sequentially.

Outlook and guidance

• 2026 guidance: loan portfolio growth 3–8%, net interest income 8–13%, cost of risk 1.2–2.2%, administrative expenses 5–9%.

• Focus remains on expanding company and individual accounts, with limited growth in rural and real estate portfolios.

• ROE is expected to remain strong as the bank consolidates its new business model.

• Continued investment in IT modernization and digital channels to support growth.