Banco do Estado do Rio Grande do Sul S.A. (BRSR6) Earnings Call Transcripts

Banco do Estado do Rio Grande do Sul S.A.'s Latest Earnings Call - Q1 FY2026

In Q1 2026, Banco do Estado do Rio Grande do Sul S.A. (BRSR6:BR) reported a net income of BRL 221.6 million, reflecting an 8.2% decrease year-over-year. The bank's return on average equity (ROAE) fell to 7.9%, down 1.4 percentage points from the prior year. Management indicated that while the results were below expectations, they remain optimistic about future growth, particularly in credit granting, as they have resolved prior funding mismatches and labor issues. The bank's strong funding position and strategic focus on more profitable lines of credit could drive future performance despite current challenges in the economic environment.

Reported metrics

Guidance from management

Management maintained a cautious outlook on credit growth, particularly in the payroll loan segment, while expressing confidence in the bank's ability to manage risk and improve profitability in the coming quarters.

What management said

I just wanted to add something with 2 points here. Foreign exchange portfolio has an opportunity to grow. We grew 27% last year and we can grow even more because it's away from the average share of Banrisul in other products. Now in more profitability lines, we have to analyze them not based on delinquency but based on the income that will generate. As Mr. Gonzaga said, we can make this portfolio growth based on our ...

The quarter was a one-off in terms of formation and cost of risk of 2% will be maintained as a guidance. Let me check on this point because it seems to be this formation of new problematic assets. Our NPL were a little higher.

What analysts pressed on

Analysts expressed concerns regarding the rising cost of risk and the impact of delinquency rates on future profitability. There were questions about the bank's appetite for credit growth amidst a challenging economic environment and the sustainability of recent performance improvements.

Main topics on the call

• Credit Portfolio Management — The bank has successfully managed its credit portfolio, reducing mismatches from over BRL 20 billion to BRL 4 billion. CEO Fernando Lemos stated, "This alone gives us peace of mind because the bank can continue without f...
• Labor Issues Resolution — Management highlighted the resolution of labor lawsuits, stating they have reached an agreement with around 40% of affected employees. This was described as a significant step towards stabilizing the bank's operations an...
• Decline in Net Income — Net income for Q1 2026 decreased by 8.2% year-over-year to BRL 221.6 million. CFO Luiz Gonzaga noted that the previous year's performance was "outside the curve," indicating that the current results are not reflective of...
• Increased Cost of Risk — The cost of risk increased to 1.9%, up 0.4% from the previous year, attributed to higher delinquency rates. Gonzaga mentioned that the bank is managing this risk but acknowledged it as a concern moving forward.

Read the full Banco do Estado do Rio Grande do Sul S.A. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 24 Banco do Estado do Rio Grande do Sul S.A. earnings call transcripts on record, spanning February 12, 2020 to May 14, 2026. Based on this history, Banco do Estado do Rio Grande do Sul S.A. reports quarterly. The most recent call on file is dated May 14, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

BRSR6

Exchange

BOVESPA

Country

BR

Sector

Financials

Industry

Banks

Calls on record

24

First call

February 12, 2020

Most recent

May 14, 2026

Reporting cadence

quarterly