BRBI BR Partners (BRBI11) Q2 2024 earnings summary

Executive summary

• Achieved record revenue and net income in 6M24, with total revenue of R$279.6 million, up 36.6% year-over-year, and net income of R$101.4 million, up 41.2%, driven by strong operational performance across all business lines, especially Investment Banking and Capital Markets.

• Client revenues grew 57.1% year-over-year in 6M24, representing 75% of total revenues.

• Investment Banking executed over R$14.8 billion in deal volume YTD, with robust M&A and restructuring mandates.

• Awarded in three categories by The M&A Advisor, including Investment Banking Firm of the Year for South America, and upgraded to AA by Fitch Ratings.

• Wealth Management assets under advisory reached R$3.3 billion, up 21% quarter-over-quarter.

Financial highlights

• Total revenue for 6M24 was R$279.6 million, up 36.6% year-over-year; net income reached R$101.4 million, up 41.2%.

• Client revenues in 6M24 totaled R$208.7 million, up 57.1% year-over-year, representing 75% of total revenues.

• Net margin improved to 36.3% in 6M24.

• Efficiency ratio was 43.9% in 6M24; compensation ratio at 27.5%.

• Dividend payout of R$0.30 per unit, totaling R$31.5 million, with a payout ratio of 62.1% and a dividend yield of 8.4%.

Outlook and guidance

• Expectation to maintain ROAE above 20% if favorable market conditions persist.

• Strong pipeline in investment banking and capital markets, with continued momentum in primary debt issuance and wealth management inflows.

• M&A activity remains elevated compared to 2023, with a favorable environment for strategic transactions and continued strong restructuring activity.

• Capital markets remain active despite Selic at 10.5%, with record R$662 billion in debt issued in the 12 months to June 2024.

• Continued investment in restructuring and wealth management divisions to drive future growth.