By Brasil Stock Guide – Brazil’s Porto (PSSA3) reported second-quarter 2025 net income of 878 million reais ($160 million), a 50% jump from a year earlier, according to InfoMoney. The performance was supported by diversified business operations and tighter cost controls, partly offsetting the impact from floods in Rio Grande do Sul that weighed on last year’s results.
Financial income surged 121% to 376 million reais in the quarter, with the company’s investment portfolio (excluding pension and ALM) generating 431 million reais, or 86.4% of the CDI benchmark, boosted by inflation-linked securities and gains in equities.
“Our administrative expenses are trending lower,” Chief Executive Officer Paulo Kakinoff said in a briefing on the results. The operational efficiency ratio improved by 0.9 percentage point to 10.9%, reflecting ongoing cost-reduction initiatives. “We are experiencing a unique moment generated by the diversification and strengthening of the Porto ecosystem’s business units, always focused on serving and caring for the 18 million people who choose us every day,” Kakinoff added.
In the insurance segment, revenue and premiums rose 5% to 5.4 billion reais, led by a 17% jump in life insurance and a 6% gain in property. Auto insurance premiums and the insured fleet both grew 3%, with 165,000 vehicles added in the quarter. The segment’s loss ratio improved by 2.1 percentage points as auto insurance was less affected by extreme weather compared with a year ago.
Health operations saw a 24% increase in covered lives to 751,000, while dental coverage also grew 24% to 1.1 million. The vertical’s revenue climbed 27% to 2 billion reais, with net income up 45% to 106 million reais.
Porto Bank’s revenue advanced 30% to 1.8 billion reais, driven by a 29% gain in cards, loans and financing, a 28% increase in consortia, and double-digit growth in capitalization and financial risk products. Risk-adjusted NIM rose two percentage points to 4.7%, helped by higher spreads and changes in interest revenue recognition. Quarterly net income jumped 31% to 204 million reais.
Porto Services posted 624 million reais in revenue, down 2% due to fewer assistance calls from embedded insurance services, following lower loss ratios during the period.