By Brazil Stock Guide – Banco BMG SA (BMGB4) more than doubled its annual profit in 2025, driven in part by deferred tax effects and improved operating performance.
Net income attributable to controlling shareholders reached 579 million reais, a 129.2% increase from the previous year, while return on average equity climbed to 12.9%.
Total net income for the period amounted to 587.3 million reais, compared with 279.3 million reais a year earlier. Earnings per share rose to 0.9885 real from 0.4342 real in 2024.
Profit before income tax and social contribution totaled 368.8 million reais, versus 121.9 million reais a year earlier. Deferred tax income of 452.9 million reais helped offset current tax expenses of 234.4 million reais.
Net interest income declined to 2.62 billion reais from 4.71 billion reais in 2024, reflecting higher funding costs, as interest expenses rose to 6.11 billion reais from 4.03 billion reais. Provisions for expected credit losses totaled 1.53 billion reais, compared with 1.89 billion reais in the prior year.
The bank’s total consolidated loan portfolio stood at 23.34 billion reais at year-end, down 11.5% from the previous year. Total funding reached 32.35 billion reais, up 0.9% year on year, with customer deposits accounting for 68.5% of the funding base.
Shareholders’ equity attributable to controlling shareholders rose to 4.64 billion reais at Dec. 31, 2025, from 4.35 billion reais a year earlier. The Basel capital ratio stood at 13.2% at year-end.
Banco BMG said it paid 323.6 million reais in interest on equity related to the 2025 fiscal year. On Jan. 21, 2026, the lender announced a private capital increase of at least 156 million reais and up to 214 million reais to strengthen its capital base and support its Basel ratio, with the transaction still underway.
The bank operates through retail and wholesale segments, focusing on payroll-deductible loans, personal credit, insurance and financial services.