Brazilian banks shine on cloudy days, achieving two-digit revenue growth

A marketplace rollercoaster marked the twelvemonth 2024. After 2 years of precocious taxes, a little rhythm of involvement complaint cuts gave emergence to caller increases successful the 2nd fractional of the year. Banks, however, person positively amazed observers. The revenues of the 90 institutions that joined this variation successful the MELHORES E MAIORES (EXAME champion and biggest companies) ranking jumped from 1,44 trillion Brazilian reais successful 2023 to 1,65 trillion successful 2024, an summation of astir 15%.

Banks, of course, gain much with precocious interest. But prolonged periods of precise elevated involvement rates usually pb to an summation successful outgo failures, which weighs connected rentability. This was not what happened past year. The combined nett net of evaluated companies accrued adjacent much than revenue, rising to 21% and 196.75 cardinal reais.

“There was a fearfulness implicit the worsening of outgo failures successful 2024 that did not travel true. The system reacted well, and this inclination continues present successful 2025”, affirms Pedro Gonzaga, caput of investigation and spouse of Mantaro Capital. Total assets reached 15,58 trillion reais and nett patrimony reached 1,32 trillion.

Before the pandemic, immoderate of the biggest banks successful Brazil operated with person rentabilities, but aft the pandemic, the differences stood out. The summation of single-digit involvement rates to higher levels and the withdrawal of economical stimuli affected chiefly institutions exposed to the lower-income public.

In this environment, the standout was Itaú Unibanco erstwhile more. In summation to focusing much connected higher-income individuals and participating little successful tiny and medium-sized companies successful their portfolio, the slope successfully led the integer translation arsenic a vanguard among neobanks, which person overmuch little work costs owed to intensive exertion usage, specified arsenic Inter and Nubank.

In 2024, Itaú had a 9% gross increase, to 242,25 cardinal reais. With improvements successful ratio and rentability, nett profits accrued by 26%, reaching 42.12 cardinal reais. Returns implicit patrimony jumped to 22,2%, an summation of 1,2 percent points successful narration to the erstwhile year. On this year’s ranking, followed Banco bash Brasil, Bradesco, Caixa and Santander.

Elevated taxation rates should proceed to enactment these results: Selic taxes reached 15% successful June 2025, the highest it's been successful astir 2 decades. Indeed, successful the archetypal semester of this year, banks continued to amusement robust results. Itaú had its astir sizeable quarterly nett profits successful history, reaching 22,6 cardinal reais, an summation of 14,1% implicit the aforesaid play of the erstwhile year. Smoothing its operations, Bradesco besides showed an expressive betterment of its profitability aft years suffering with losses successful the PMEs portfolio.

But the fearfulness of outgo failures and sky-high involvement rates already causes institutions to dilatory down connected loans, focusing connected maintaining their portfolio quality. In Itaú, the recognition portfolio has grown 7,5% successful the archetypal semester successful examination to the aforesaid play successful 2024 – a little complaint than past year’s summation of 13%. Bradesco saw an 11.7% enlargement successful the portfolio, but the projection of 4% to 8% for this twelvemonth indicates a slowdown successful the 2nd semester. Santander was the astir cautious, with an enlargement of lone 1,5% successful their portfolio successful the archetypal fractional of the year.

One of this year’s superior concerns has been agrarian credit, with an expressive summation successful precocious loans and judicial recoveries for agrarian companies. Banco bash Brasil, proprietor of the biggest agribusiness portfolio successful Brazil, was the astir affected, with a 44,7% setback successful the archetypal semester, to 9,8 cardinal reais.

To Samuel Barros, caput of Ibmec successful Rio de Janeiro, the consolidated show of the assemblage – whether with higher oregon little involvement rates, oregon by adjusting concession velocity and measurement – is simply a show of its solidity. “It is an highly resilient segment, adjacent earlier marketplace oscillations.”

This resilience explains wherefore the assemblage is inactive among the favorites of organization investors. Classified arsenic defensive, it tends to payment successful immoderate scenario. “Banks triumph with precocious involvement rates, due to the fact that they maximize returns, and besides astatine debased rates, by expanding operations. In a state that hops from situation to crisis, it is simply a assemblage that protects portfolios”, notes Barros.