BRBI BR Partners (BRBI11) Q3 2024 earnings summary

Executive summary

• Third quarter 2024 saw robust activity in investment banking, capital markets, and treasury, with significant transaction volumes and revenue growth.

• Achieved record revenue and net income in 9M24, driven by strong operational performance and robust activity in M&A, restructuring, and debt capital markets.

• Client revenues grew 57.6% year-over-year, representing 76% of total revenue, with all business lines contributing to growth.

• Wealth management and investments under advisory grew 8.5% sequentially, reaching R$3.6 billion.

• Net income for 9M24 reached R$151.5 mn, up 35.3% from 9M23, with a net margin of 34.7%.

Financial highlights

• Consolidated total revenues in 3Q24 were R$157.7 million, up 47.6% year-over-year from R$106.8 million in 3Q23.

• Total revenue in 9M24 was R$437.3 mn, up 40.4% year-over-year; 3Q24 revenue was R$157.7 mn, up 47.6% vs. 3Q23.

• Net income for 3Q24 reached R$50.1 million, a 24.8% increase year-over-year, with a 23.7% return on shareholders' equity.

• ROAE reached 24.2% in 9M24, up 5.3 p.p. year-over-year.

• Basel Ratio improved to 25.2% at Sep/24, up from 17.4% a year earlier.

Outlook and guidance

• Domestic GDP growth for 2024 is projected at 3.1%, with 2025 expected to slow to 1.8% due to tighter monetary policy and lower commodity prices.

• Inflation expectations remain above target, with the IPCA forecast at 4.4% for 2024 and 4.0% for 2025.

• M&A activity remains strong with a favorable environment for strategic transactions and multi-sector consolidation opportunities.

• Local debt market is robust, with record issuance volumes and strong demand from institutional investors.

• The Central Bank is expected to continue monetary tightening, raising the Selic rate to rebalance the economy.