[Foreign language] Obrigado, Nathan! É um prazer estar aqui.
Thank you, Nathan. It's a pleasure to be here to discuss our results. We are effectively reaching two years and so of our management. We started it by the end of 2023, and then we established the guidelines and the goals for our work. Now, we have been consolidating everything that we have devised last year to change the portfolios, change a bit the rural portfolio, loans, adapt our company's accounts portfolio, and we have seen the results, the consolidation of this work the bank has been implemented. Our net income reached BRL 1.6 billion, ROE of 14.9%. Our loan portfolio grew 4.8% year-on-year, especially in companies account.
Our total funding reached 112.4 billion, 15.4% year-on-year growth in our net interest income, increased in 8.6, and our cost of credit, cost of risk is 1.6%. Our costs are well managed. Basically, almost only the effect of the collective bargaining agreement, and all their administrative expenses are below the inflation rate. We have consolidated these numbers this year, and as you know, we had the problem regarding the seventh and eighth hour here in the bank, and we managed to reach a collective bargaining agreement. Over 3,000 employees started working for six hours. This will bring benefits ahead.
We are pretty pleased with the development of our bank, which was expressive, a robust growth, based on this work to streamline the bank's portfolio, regarding the growth of those more profitable accounts and portfolio, and leaving the special credits within the adequate pool, considering our bank. We increased our rural loan adequately in proportion, and also real estate credit. We've had some funding problems because the savings accounts are not very attractive at the moment, but the Central Bank has implemented some changes. We are waiting to see how it's going to be developed, but we are pretty—all in all, we are pretty happy with the development of our bank, and we'll check about the changes of the tax reform laws will bring.
We're still waiting to see what's going to be like for the companies, and these tax regulation changes will bring. But effectively, I can say that we've had a 2025 that is pretty pleasing. We are very happy about it. Our ROAE is consolidating above two digits. It was always used to be below one digit, but now it's two, and the bank has a more structured position right now. Initially, I would like to tell this to our friends and, coworkers, and our directors, our officers are here to compliment on these numbers and results. Thank you, Nathan.
[Non-English content]
Thank you, Mr. CEO. Now we're going to greater detail on the quarter and year, numbers.
[ Non-English content ]
I hand over to Mr. Gonzaga.
[Foreign language]
Hello, good afternoon, everyone. Now I'm going to go into greater detail regarding the bank's results for 2025, year-over-year, and also quarter-over-quarter results. As you can see, we have delivered the last quarter of 2025 of BRL 656.9 million, growth year-over-year for the fourth quarter, around 131%. If you compare the four quarters of this year, and the growth of 98%, if you consider, if you compare the third quarter to the fourth quarter. The net income in 2024 was BRL 916 million, and in 2025, it was BRL 1.6 billion.
In terms of ROAE, in the past year, and also comparing the last quarter of 2024 to 2025, there was an increase of 23.8%, ROAE of 11.6 percentage points in the past quarter of 2025. Annualized percentage was 5.8%-9.1% in the final quarter of 2024, versus 14.9 for the fourth, final quarter of 2025. Placing an ROAE in of 5.8% upwards in terms of ROAE profitability, which is really expressive, as mentioned before.
[ Non-English content ]
In terms of net interest income, we managed to reach 2024, a 4.5% growth if you compare 2024 to 2025, and a growth of 0.8% quarter-on-quarter. And if you compare 2024 to 2025, we reached an increase of 8.6%. In the year, in 2024, it reached BRL 5.9 billion, in 2025, BRL 6.4 billion. The loan portfolio was BRL 62.1 billion in 2024, BRL 60.5 million in December 2025. 4.8% increase if you compare this, December 2024 to December 2025, and 1.5% if you compare September 2025 to December 2025.
Our guidance was 4.8%, a little below what we managed or we wanted to reach, but it was a pretty well-consolidated portfolio, and credit lines with higher profitability had a good performance in this portfolio. Both for companies and individual accounts, we had a very good annualized performance. In the past quarter, the account's profitability decreased a little. This was expected. In the company's accounts, we had highlights of the Conta Única in our debit accounts, cards, and also the working capital. But in the final balance, if you compare the final balance with the average balance, when it comes to the second or the third day, we have the payroll, we have a series of amounts that are paid, so there is a decrease.
But as the month goes on, that is a very good result for this portfolio, for this accounts. And so they deliver a pretty expressive and robust performance, which helps or really helped build the performance of the bank, the retail accounts for both company and-- companies and individuals' accounts. In terms of exchange, in foreign exchange, in Rio Grande do Sul, in terms of exports, we had a good work and a performance of 34.9%. It adds spread, margin, and service to this portfolio. And so foreign exchange has been contained, and companies, they have a natural swap. They come with a natural hedge for the operation. In terms of asset quality, in the 90 days number, we had a slight increase in terms of delinquency in the fund.
But this is natural because we have, due to Resolution 4966, there is the result of this. In next month, we will have a natural flow of the credit that entered in January 2025, and it will start to be written off naturally. So from April on, April 2026 on, we will have better results. But even in January, we could see, for this portfolio, with a little under 180 days, we had some written off credits. And we will have percentage equalization in less attenuated line of growth, which is natural. We have a very expressive retail portfolio, and it has some delinquency rate, but it's part of the game. And we have 23.6% of these loans of Stage Three Credit is up to date.
They are up to date, and they have been paid, but they have to do with a cash flow regime. In terms of cost of risk, there is a slight increase, 1.4. We will go up to 1.6%. We need to be careful with the increase of cost of risk, but it's part of the routine game, part of the work. And it's also a result of Ordinance 4,966, which changed the framework in terms of default rate after 90 days, and this will be corrected in time for the whole market and financial institutions. In terms of administrative expenses, there was 6.2 increase, at 1.2 increase in terms of other administrative expenses, and personal expenses reached 8.5%.
There were some adjustments regarding our framework to 6 hours. This is embedded in this percentage of growth. This will be corrected as the year goes on, of 2026. Other administrative expenses account for 1.2% only, below IPCA. It's almost a residual growth. We have worked in terms of renting and all types of expenses. We have been negotiating them and working them, trying to streamline these expenses in terms of branches, to control to keep this administrative expenses under control. In terms of service income, we have a very strong competition. Central Bank. Sorry.
... Whatever the expense is talking about?
Just a second.
[ Non-English content ]
Thank you, Nathan. In terms of other operating expenses, well, we had some events that took place later. We can give you further explanation on them if you want to. But we had an expense related to a labor suit. We had to adjust some things, but the residual of all the stock, it was the residual. So from now on, labor's lawsuits will have to do with monetary annualization and actualization based on the Selic interest rate. We also had other operating expenses, some due to a labor lawsuit. It was negative for us. It has been judged and passed into judgment. But in due time, we'll revert this operating expense, but anyway, it's recorded there.
[Foreign language]
We had a-
2002, 2003, 2004.
... lawsuit, which started in 2003, 2004, related to an expense that we acknowledged as a fiscal, rebate, expense. But the fiscal authority said no, and then we went on and discussed that in the, in the suit, and we had to wait on the judiciary to decide on that. And it had to do with the remodeling of the financial institutions that also, restructured the bank. And then we had the pension funds for Brasil, and it was a natural... we thought it was a natural expense of the bank.
The judiciary said no, but in fact, it was, so there was what we call the reversal of this operating provision, and this is the value that we adjusted by the end of this understanding, because this is the final judicial sentence in terms of the legal part of it, in terms of legal discussions. So it's not up for discussion anymore, and it's more about the bureaucratic part of this lawsuit. It hasn't been passed into judgment yet. It's not a final lawsuit yet, but and so if you put it all together, we had this effect on our balance sheet in terms of recurring expenses, and we had to go back to the origin, delivering this as a recurring form to the balance.
So performing all of these adjustments, we reached this positive number of BRL 844.3 million in the last line over there, in the total line. Well, it's part of the game, and these things happen. We also had concomitant actions to offset this in terms of reversing this judicial decisions. It was a final decision, and it was a government lawsuit, and now we are appealing this decision, and we trust we will be able to reverse this first decision. But we had to mark this in the provision. We also had some labor adjustments, as I said before, as I mentioned before, but we had a positive balance, which helped to increase our result even more, which was an exceptional result.
In terms of service fees, it wasn't what we expected, but the central bank managed to make some cuts and benefits to clients in the past. We were not charging for some of these fees yet, but we'll start charging for these fees and adjust ourselves to the market. We cannot charge anything that we want. We need to be careful related to the credit card. The market says something, we cannot play against the market, otherwise, we will lose our base of clients. So this is an revenue that has been loaded or carried with the slighter or reduced speed. Digital banks removed a lot of margin, especially in terms of credit cards, annual fees, and all of this package that come, they decreased the growth, and we have worked really hard to increase our client base.
We need offers to provide the customers with, to prove to our clients that our services are good. Once the clients get used to our service, then we can start charging some fees, if possible, or when we have the opportunity to do that. But we have a positive number for service fees in terms of, and it's an annual growth. Oh, usually corrected based on the IPCA. In terms of funding, with 87% of costs funding, really good, excellent performance. 15.4% in the portfolio, we ended with BRL 112.4 million, 4.9% growth. This is, and if we add everything, we have BRL 132 billion in terms of funding. We equalized this portfolio to balance, to offset with the banking.
In the pre-fixed area, we are really well-placed in terms of our assets. Pre-fixed assets and post-fixed funding in terms of liabilities, we almost have a perfect balance, doing away with any volatility in terms of Selic interest rate, for example. And the cost of funding is a very positive one, and the balance in terms of pre-fixed products is also really robust.
[ Non-English content ] Next. Our capital it's an excellent result 19.5% of growth in terms of Basileia ratio a comfortable based on ratio as you said before there was a funding of BRL 1.85 billion in LF Financial letters of credit in 2025 for the LF. It based in Selic interest rate so it's growing it has to do with our needs from capital based on the based of ratio and theres a redemtion bond in tier two $300 million in January in 2026 we recovered this fifth year so this base of ratio presented in picture of the balance will decrease a little bit may be reaching the levels of November of 2025 due to this written, of this redemption which was programed we anticipated this funding to be protected in terms of capital and we have another LF which will be redeem in 2026 and 2027.
So we have available credit we have a good base of ratio we are prepared. So our guidance we wanted to reach 8.8 We reach 4.8%. There are some explanations for this guidance. We stagnated the growth in real estate portfolio.
[Foreign language] Stagnamos o crescimento
and also reduced the growth in the rural portfolio. And there was a mix of credits with higher profitability in the accounts. And there was a migração, which reduced the
[Foreign language] arrefecimento na base do saldo.
The payroll loan. There was a decrease in this payroll loan portfolio, and the higher profitability portfolio had an excellent performance throughout the year, which I discussed before. So there was a migration from one portfolio to another portfolio, giving priority to those which are more profitable. In terms of net interest income. We wanted to go from our range was 7%-12%. We reached 8.6%. Our cost of risk was 1.6%, and our administrative expenses was good, and we were below our guidance, 6.7%. So the lower, the better, the better. The lower, the better, right? So it was good. So the net interest income for 2026, we aim to reach 8%-13%, and cost of risk, 1.2%-2.2%, and expenses, 5%-9%.
With a total loan portfolio guidance for 2026, ranging from 3%-8%. So this is our, results, our performance. We are very, pleased with this, to deliver this results to our clients, to our investors, those who believe in the, the role of Banrisul, to our shareholders. This is what we wanted to deliver, and we did our homework, and we worked really hard to deliver these results. Thank you very much.
[Foreign language] Obrigado, diretor Gonzaga -
Thank you, Director Gonzaga, for your presentation and for detailing the figures.
[Foreign language] Então, antes de passar aqui pra sessão de Q&A, perguntas e respostas, é, só passar umas orientações rápidas, padrão. Então, caso você deseje fazer alguma pergunta por áudio, por favor, pressione o botão Reação, em seguida, clique em Levantar a Mão. Se a sua pergunta for respondida, você pode sair da fila clicando em Abaixar a Mão.
Então, senhoras e senhores, vamos iniciar a nossa sessão de perguntas e respostas. Vamos começar com a abertura aqui do áudio pro Antonio Ruette, Bank of America. Antonio, tudo bem? Nos escuta?
Hello, Antonio, can you hear us?
[Foreign language] Oi, pessoal, boa tarde. Escuto, sim.
[Foreign language] Ótimo, estamos aqui com vocês.
[Foreign language] Boa, legal! É, muito obrigado pelo tempo de vocês. Eu tenho duas perguntas aqui do meu lado, que vão pra entender um pouquinho melhor o guidance, né? Então, quando a gente olha pra cost of risk, pra provisão, né, o seu guidance, ele é bastante aberto, né? Então compreende bastante coisa que, dada o novo perfil da carteira, né, então quando a gente olha pra expansão da carteira, como o próprio Diretor Gonzaga agora falou, foi muito mais focada em linhas mais arriscadas, né, em 2025. Dada essa composição, será que a gente não poderia estar falando então de um cost of risk aqui, de provisão de carteira mais próxima ao topo desse guidance dado, né? E já engatando na minha segunda pergunta: esse deveria ser o perfil de carteira ainda, que a gente vai ver em 2026, né?
[Foreign language] Esse guidance de 3-8, ele é mais focado em quais linhas, né? Então a gente deveria continuar vendo mortgage, payroll e rural crescendo mais devagar, e as linhas comerciais mais fortes? Perfeito, obrigado.
Tá. Bem, boa tarde. Sim, concordo com você. A nossa expectativa ainda, nas linhas de crédito rural, né, nosso apetite é ficar com o bom cliente, que pagou, levou, liquida o custeio dele no ano, a gente faz de novo. Então, nós não temos muito apetite naquelas linhas de investimento para o crédito rural, então a carteira vai ficar constante com o estoque da própria carteira, né? Não tem um apetite de crescimento, no caso. Crédito mobiliário, a gente está financiando alguns empreendimentos e se comprometendo com as empresas e com as incorporadoras, que os apartamentos serão, a gente vai dar a escada, vai financiar os apartamentos produzidos pelos empreendimentos. Portanto, a carteira tem uma liquidação recorrente, no ano seguinte, o que vai ser reposto, o crescimento da carteira vai ser pelos créditos novos, das incorporadoras.
Também quando passa de incorporadora, passa pro comprador final, e a carteira não vai ter, não vai ter aumento de saldo, vai ficar estagnada. Ou coisa rara, vai ter uma renovação de carteira, vai ter um crédito concedido, vai ser só pra manter o saldo e ficar dentro do balanço da carteira. A carteira de desenvolvimento também não fala muita expressão, não tem, não tem um crescimento expressivo, e não vai ter crescimento também, porque também tem a liquidação recorrente. É, então, esse grupo de especializados não vão aumentar os créditos. Tá? Não vai acontecer. Mas são carteiras que entregam rentabilidade baixa, conhecido em todo o mercado.
Dentro dessa carteira de crédito comercial, que a gente está tem uma entrada, a gente vai entrar no crédito de exchange, we are going to go into this portfolio, make this portfolio grow, this give us margin, it's simply zero percent in default. The default rate is simply zero percent.
And those portfolios that deliver results like overdraft, in Banrisul, overdraft has a different bias.
[Foreign language] Nós somos o segundo maior, segundo maior saldo de cheque especial, nós temos a metade dos cheques especiais do Rio Grande do Sul, tá? Do Brasil. Nós temos uma chamada, Banricompras, que é o cheque que pela própria eletrônica na praça. Mas ele é um serviço feito para pagamento, concorre com Visa e Mastercard. Ele, na prática, ele tem um saldo e não tem o mesmo tipo de cheque. Tá?
[Foreihn language] E ele utiliza, temos um valor expressivo, né, pra nesse ano, mais de BRL 10 bilhões por ano. É, e esse, ele, recorrentemente, ele utiliza esse valor durante o ano, e descasa da folha de pagamento do cliente. Então ele sempre fica com um valor, é, de saldo devedor, é, até chegar sua folha. E conta com 30 dias, senão, é, não tem miudagem. Fomos no restaurante almoçou agora, pagou com o Banricompras, vai, dá, faz 30 dias que vai no Banri. Doze de março, que vai se dar o pagamento. Nem é doze, vai dar o dia quatorze de março, 30 dias. Fevereiro, trinta. Tá? É, vai no posto de gasolina, tem 60 dias. Se você to the
Petrol station, to the oil station, you have 60 days to pay. It's all over the city of Porto Alegre and the State.
In any other gas station, most of them will give 60 days to pay. There is a default rate, but it's a low rate. According to my experience and our models, we have been following this. I'm not worried about this portfolio. If the margin is 5%, excluding growth margin and income tax, you have BRL 100 million in that portfolio, and 5% delinquency rate. But it's BRL 15 million. If you have BRL 50 million in the portfolio, you have BRL 30 million on the default.
[Foreign language] Varejo é varejo... tem inadimplência.
But there is this delinquency rate is expected in the retail, but they do deliver a margin. Even, the overdraft portfolio has the same behavior.
Credit cards have the same behavior, but the margins are not expected. We have the delinquency rate. If I had BRL 100 million in 5%, and then if I reach BRL 200 million, that will be the same rate of 5%, but I will get more, because I sold more. So this, we have this company's portfolio, this Conta Única, and the Conta Única delinquency rate is residual, very, very low for the company's portfolio. We work with a very good working capital. They only pay that fixed interest. This, and other lines of loan for companies' accounts, we have expected. ...
Delinquency rate. In terms of payroll loan, it's not expected to growth, only to renew this with better advantages and-
For those-
For those loans that will be paid up this year, that is starting 2021 or 2022. And then we have a rate that will be higher with a shorter period, because we used to work with 140 months, 120 months. But now, we cannot work with more than 84 months. And the loan of INSS, we only have a small number of clients who can get a INSS loan with 96-month period. And then, for the payroll loan, we have a portfolio of 76, 75 months, depending on the client's age, age bracket. Well, we can expect a delinquency rate, but it's not to be, we will not afraid of that.
We want to give a very good result for the bank, considering all of these aspects.
[Foreign language] Ok, obrigado.
Thank you very much.
Sim, sim, sim. Foi, foi bem endereçado, Diretor Gonzaga. Obrigado, Antônio.
Thank you very much, Antônio.
[Foreign language] Algum follow-up, Antônio?
Any follow-up, Antônio?
[Foreign language] Tá ok?
Thank you.
[Foreign language] Então vamos, vamos avançando aqui. Vamos abrir também a oportunidade aqui pro Mateus Raffaelli, do Itaú BBA.
Mateus Raffaelli from Itaú BBA.
[Foreign language] Mateus, boa tarde.
[Foreign language] Boa tarde, pessoal. Obrigado aí pelo espaço.
Good afternoon, everyone. Thank you for-
[Foreign language] Queria fazer uma pergunta aqui com relação à PDD e à inadimplência.
This Q&A session. I have a question regarding PDD and delinquency rate.
[Foreign language] Se a gente exclui a provisão ali de BRL 257 million dos depósitos judiciais, o PDD do 3T teria subido consideravelmente, né?
This Provision for Doubtful Accounts would have gone up considerably.
[Foreign language] E aí, é
I would like to understand more.
[Foreign language] querendo entender um pouquinho melhor aqui, o que exatamente está puxando esse índice pra cima e, consequentemente, essa PDD? Quanto que é realmente a 4.95? Quanto que é a deterioração, de fato, dos portfólios? E se tá tendo deterioração, onde é que, onde é que tá puxando aqui?
What is the delinquency rate upwards? What about the Resolution 4966 ordinance or the deterioration of the portfolio? What is it?
[Foreign language] E aí, também, se puder comentar, enfim, de marca pra vocês aí, a dinâmica para 2026, isso seria interessante. Obrigado.
Could you talk about the dynamics for the 2026 in terms of delinquency rate or default rate, please?
[Foreign language] Olá, Mateus, boa tarde.
Hello, Mateus.
[Foreign language] Obrigado aí pela pergunta.
Thank you for your questions.
[Foreign language] Em relação à PDD e ao indicador de inadimplência-
Regarding PDD or the provision for doubtful accounts and delinquency rate.
[Foreign language] Nós saímos de 21.92, onde a gente provisionava por data, e aí 180, 240 dias, no máximo, a operação baixava pra prejuízo.
Or 200-
[Foreign language] Com a 49 meia meia, nós adotamos a política de baixar pra prejuízo em 540 ou 720 dias.
We would write it, write them off.
With the 4966 ordinance, we adopted the policy to write them off around 720 days, tops.
So they will be longer in the portfolio-
[Foreign language] E, por consequência-
In the active portfolio
[Foreign language] Nesse primeiro período-
Consequently, in this first period.
[Foreign language] uma maior-
There will be a higher-
[Foreign language] elevação dos valores provisionados
elevation of the provisioned amounts.
[Foreign language] consequentemente, também no indicador de inadimplência, nós fechamos aí com 4.2-
Consequently, in the delinquency rate indicator, we had 4.2%.
[Foreign language] É, final, em-
By the end of it.
2025.
In 2025.
Para 2026-
For 2026
[Foreign language] A ideia é que fique mais ou menos em torno disso, aí, vai ficar-
Our idea is to have this something around that.
[Foreign language] Em torno disso, isso. Nós não temos nenhuma preocupação, assim, é, com relação a valores expressivos.
Around this, this rate for...
We do not have any worries about expressive amounts-
Because, as Mr. Gonzaga said.
because, as Mr. Gonzaga said, we decided to operate with small and medium-sized companies in the retail.
We decided to operate with small and medium-sized companies in the retail.
[Foreign language] Então, milhares de milhares de operações every day-
Thousands of thousands operations every day.
[Foreign language] de baixo valor-
Low-cost operations
[Foreign language] e de boa margem.
with good margin.
[Foreign language] É, nisso-
And then-
[Foreign language] A gente tem um crescimento de carteira, então, já foi mencionado, é esse 4.8.
We have a portfolio growth of 4.8%.
[Foreign language] A pessoa jurídica cresceu 20%.
And company-
[Foreign language] Nós chegamos a-
Company's accounts grew 20%.
[Foreign language] BRL 16 bilhões de carteira de pessoa jurídica, praticamente o dobro, em relação à 2 anos atrás.
We reached BRL 16 billion in the company's accounts portfolio, the double, if you consider-
[Foreign language] É-
We doubled this, considering the amount two years ago.
[Foreign language] basicamente, operações com recebíveis e com colaterais.
Especially receivables and collateral, credit cards.
Foreign language] Nossa carteira de cobrança-
Our collection portfolio in this period-
[Foreign language] nesse período, então, tanto pra liquidação das parcelas da pessoa jurídica, quanto pra garantia das operações de crédito-
For the payment of installments and to guarantee credit, operations.
[Foreign language] cresceu muito no último ano.
They grew impressively in the past year.
[Foreign language] É, uma vez que nós modernizamos todo o nosso sistema-
We have modernized all of our system.
[Foreign language] de cobrança bancária-
of collection, banking collection systems
[Foreign language] e estamos entregando um produto super moderno aí para os nossos clientes.
We are delivering a super modern product to our clients. Now-
[Foreign language] Em relação à recebíveis e cartões de crédito, que contribuiu muito pra manutenção da tendência aqui, a Vero temos dado aí um-
Regarding credit card receivables, they help for the-
[Foreign language] suporte bastante grande
The result. Vero has given us-
[Foreign language] Nós estamos aí com mais de 120,000 clientes-
A very good support.
[Foreign language] credenciados na Vero-
Very reliable support, 100
[Foreign language] na Vero, transacionando por dia-
and 20,000 clients transacting every day.
[Foreign language] com cartão de crédito e mais do Banricompras.
with credit cards operations, plus Banricompras, service.
[Foreign language] Então, assim, fechando aí pra te responder.
All in all, I'll tell you that there's nothing that worries us in terms of significant amounts, because the portfolio has grown based on a large client base, based on receivables, especially. For 2026, we want to follow the same pathway. We imagine, as you saw in the guidance, grow around the market projections for credit growth. It talks about 8.9%. That's the pathway the bank wants to follow. Giving priority to short-term operations and also operations based on receivables for companies, accounts, and for individual accounts. We will focus on personal accounts, and also, as I said, the payroll loan will not be increased. We'll not make it grow, because we have a portfolio of a 150-month with an interest rate, which was lower than we are using today.
So the refinancing of these operations is not viable, especially in the state in which the margin was reduced. The state changed the criteria to provide margins. It went from 40% to 35%, and it changed the growth margin of growth salary. Today, the state authorizes the margin based on the net amount. So considering all the obligatory figures and amounts, and based on these discounts, they will authorize the margin. This gives us more security, is safer for the market. The client has less debt to pay for. So we maintain the purpose of these two previous years for 2026.
Thank you very much.
Thank you very much. Great.
We remodeled the collection services.
Yes. Mateus, let me just add, Director, Mr. Gonzaga also reminded us of this. We are restructuring the collection services. McKinsey has helped us. We have hired their services to have a predictive control over the whole portfolio and anticipate possible issues in the credit portfolio management. We have implemented Asia, and we work with a collection hub that we call Finances. Up-to-date finances, we can connect all of our branches, all of our digital channels to collect these, the services, including companies and firms specialized in collection services. We have implemented Serasa. The bank didn't use this marketplace in Serasa and other services, and Serasa is the second-best collection service to recover
Services, recover payments. Thank you very much.
Thank you, Mateus, for your question, and thank you, Doctor, even more for addressing it. Now, let's move on to Mr. Carlos Gomes from HSBC.
Hello, Carlos.
Is it in Portuguese?
Tudo bem, vamos tentar português.
Yes, let me try Portuguese.
[Foreign language] A minha pergunta, na realidade, é uma continuação da pergunta do Antônio. Os senhores estão falando tudo do que não vai crescer. Não vai crescer consignado, não vai crescer rural, não vai crescer. Pode explicar mais em detalhe por que não crescer rural? Esse é um problema que o Banco do Brasil já existiu. Por problema que se mobiliário, juros, outro motivo? Essa é minha pergunta. E a segunda pergunta é distinta para as instituições que estão em questões de processos grandes, processos jurídicos longos, mais grandes. Temos que contar com coisas grandes, positivas e negativas, das oportunidades legais do banco, que podem afetar o resultado. Obrigado.
[Foreign langauge] Ok. Carlos, resumindo, a gente está falando em por que não crescer em rural e mobiliário, nas linhas especializadas? E a segunda é se há alguns passivos, alguma coisa que possa-
... loans, and what about liabilities that can have an impact moving forward?
Tá bom.
Well, in terms of real estate and rural loans. Well, real estate loans in Brazil, it's about funding, and the natural funding for this in Brazil is the savings account. In Brazil, the new generation that generates wealth, they do not have this habit of putting money in the savings accounts. So only older people have savings accounts, or mostly. So this product is not providing a very good result. So the Central Bank, from 2026 on, and in 2027, it will implement a new law, a new regulation for the concession of real estate loans. So we're still waiting. The market hasn't found its position yet. We are implementing some services, and we are working with some builders to finance apartments for the final users, final clients, and also used apartments and used houses.
We can provide loans for these. Well, the portfolio growth has to do with what is paid for monthly, based on the installments. So we do not expect it to grow, but we expect it to continue. In terms of rural loans. We, in the bank management, we decided that the bank will have a size of rural loan. We are a regional bank. We operate mostly in Rio Grande do Sul, so we have to provide rural loan. The bank cannot be exposed or cannot exposed half of its assets in rural loans. That's why we decided to have this. We have an equity as a reference for this loan. As we increase our net income, and we will grow this rural loan, and we will manage these loans. We have some priorities for some projects.
We have the working, the payment of the rural loans for the, for paying for the crops, and for some products like irrigation, soil correction. We have some loans for these services. They are paid every six months or every year. But for longer loans, our appetite has been decreased. So these loans are not expected to grow, but they will be expected to continue. We want to grow, we want to increase our share in the company's accounts, because the corporate accounts is a very good option. We do not work with Petrobras. We do not work with other big companies, but we have companies, they that have their payroll with us.
We have IPE operations, these clients that have their payrolls with us, these companies that have their payroll with us. We will continue; we will make them grow. But, yeah, they have their... But the rural loans are not going to grow, but they have a certain weight in the mix of the product services. But for the company's accounts, we want to make them grow. We have. And for the companies, sorry, for the individual accounts, we also want to grow. We want more clients in the digital accounts, and we also want to make our retail services grow based on these individual accounts. Lower values, but a very higher margin. This is our priority. Thank you very much. What about future liabilities?
No, no, in terms of future liabilities, well, our PDD, our provision for doubtful accounts, and labor portfolio, and labor liabilities, we are very well protected in this position. We changed the personnel management. Now, our employees, they works for six hours. This has protected us from these liabilities. We have some liabilities still, but we have been provided for them. They have been accrued—they were accrued for, and then we will reverse these provisions as time goes by. We have some money in our cash, in our credit operations, in our loans operations. We have a positive margin, and then we will go little by little, with no rush, and then we will negotiate for those, with those, that will get the money or-
We need to pay.
Thank you, Carlos.
Now, let's listen to Olavo Arthuzo from UBS.
Good afternoon, Nathan.
[Foreign language] Olavo-
Good afternoon, everyone.
Thank you.
I will try to approach a topic we-
We have been discussing not only in this quarter, but also in the previous quarters.
... which was a positive surprise on our side and also on the side of the investors regarding the profit. And also-
The-
[Foreign language] Como vocês mostraram na apresentação, fechou o ano aí próximo dos 15%, pensando no lucro reportado, né?
Uh,
[Foreign language] Então, acho que a pergunta agora, que não só a gente aqui percebeu e tá tentando também, sentar e fazer umas contas pra entender não só 26, mas daqui pra frente-
Basicamente, qual que é o nível, né, de ROE, de retorno, que vocês estão mais ou menos pensando, projetando?
The return
[Foreign language] tanto pra 26, pros próximos anos? E acho que colocando de outra forma, esse nível de 15% de ROE, ele é sustentável, na opinião de vocês? E se não, mais ou menos, a gente poderia ver o banco voltar pra aquela casa de 10-11%? Seria algo mais ou menos próximo ali, ao mais normal do banco voltar?
[Foreign language] então eu acho que o sumário me dá a entender a cabeça de vocês sobre esse percentual do ROE que vocês reportaram em 2025. O que vocês acham dele, né? Esse número daqui pra frente em relação a tudo isso que vocês deram de forecast pra gente, em relação ao crescimento da carteira, o múltiplo EA PBT, o OpEx também. Acho que seria mais essa visão pra entender a cabeça de vocês sobre o outlook desse ROE que a gente viu muito forte em 2025. Muito obrigado, pessoal! A nossa cabeça é muito positiva, tá? Strong. Esse 14.9 que você citou. Esse 14.9. Eu não sei se a gente vai trabalhar com 14.9 em 2-3 anos, mas deixa eu abaixar o microfone um pouco. A nossa cabeça é muito positiva, tá?
Então, 14.9 entrega esse ano, né? Fora da curva positivamente, daquilo que vinha nos últimos anos. Nós estamos remodelando o banco, a gente sabe que isso não é de uma noite, não é de uma tarde. Consolidando os modelos, avançando no share de participação no mercado. Evidentemente, nós temos um espaço muito grande pra avançarmos lá, porque a nossa participação ainda é pequena no share do mercado do Rio Grande do Sul. Nós temos uma rede de agências em todo o Estado, e nós atendemos em nove prefeituras. Trabalhamos presencialmente em 98% do PIB do Rio Grande do Sul, tá? Gerando 95% do PIB do Rio Grande do Sul, cobrindo 98% da população também.
Também temos operado muito forte nos nossos canais de digital de venda. Nós estamos remodelando o banco, remodelando as nossas estruturas, muito conforme o Olavo falou antes mesmo. Começamos também preparando agora uma modelagem de crédito, essa contratação que o diretor Olavo comentou, que está na McKinsey, na área de cobrança. Faz parte do jogo, estamos no esporte, o banco, então crescer no share é cobrar com segurança, ter modelos bem ajustados, com performance positiva mesmo, porque a rentabilidade passa muito pelo controle da cobrança, né? Muito forte, é um pilar fundamental na operação. O diretor Olavo comentou, a nossa cobrança, nós estamos com quatro E's de cada um modelo de cobrança, por exemplo, o crédito rural.
Cobrança do crédito rural é outro script, cobrança do crédito mobiliário é outro script, e cobrança do crédito comercial, da pessoa jurídica, é outro script. Então, nós temos desenhado todo esse quadro, tá? Uma performance boa em tudo isso. Um aumento da base de cliente, aumento da carteira, avanço no share, mix adequado. Mix adequado de produto, com maior rentabilidade, com direcionamento dos créditos é bem desenhado, aquilo que a gente quer no crédito comercial, a gente sonha com um retorno talvez—não estou dizendo 14.9, vai melhorar muito, vai sim, crescer. Não posso dizer 14.9, porque não posso errar. Eu não posso errar. Eu te digo, eu não—Não, claro, não, mas eu estou curioso, tá? Não, não, perfeito. Muito obrigado, obrigado pela resposta.
Be mistaken. Well, yeah, no problem. Thank you very much!
[Foreign language] Obrigado, Olavo, obrigado pela pergunta aqui.
Thank you, Olavo, for your questions.
[Foreign language] Vamos avançando aqui já pra parte final da nossa sessão. Gostaria de abrir aqui o microfone pra Fernanda, Fernanda Saião, do JP Morgan. Tudo bem, Fernanda? Seja bem-vinda.
Hello, Nathan. Good morning, I mean, good afternoon. Thank you for allowing us to ask questions. Well, regarding the rural portfolio, which is still a representative segment, 20% of the total portfolio. Well, we talked about limiting this portfolio. I would like to understand your motivation to be a little bit more cautious in this segment, and whether this represent a structural change for the rural portfolio? And second question, could you talk about the expectation of the fees growth for 2026? The tariffs.
Yes, the growth of fees, yes. Thank you, Fernanda. Well, in terms of rural appetite for the rural portfolio, and second, fees. Well, in terms of the rural, we need to understand the size of rural. Well, we are a retail bank.
I think your mic is off.
[Foreign language] É?
Can you hear me?
[Foreign language] Não?
Not quite.
[Foreign language] Sim, sim.
I can hear you, yes.
[Foreign language] Tá ok, tão ouvindo?
Can you hear? Is it better?
[Foreign langauge] OK, legal. Obrigado, Fernanda.
I can hear you. Thank you, Fernanda.
[Foreign language] O tamanho do banco, nós não podemos ampliar muito mais a nossa carteira do rural.
Well, we cannot make the rural portfolio grow so much more, and bend the bank's balance or hinder the balance. We need to be-
[Foreign language] Com essa visão.
We need to manage the bank with this view. We are a retail bank. We need to have a
... well distributed loans. We will continue with the rural loans, but we want to have a limit, a threshold, to maintain the equity of the bank. It's hard to achieve profitability if you make a portfolio grow and grow. Even if it's 100% paid up, if it has a zero default rate, if the margin is not so good, if the profit's not so good, well, we need to reconsider that. We need to grow, make other lines grow. The companies and the individual accounts, and especially small, medium-sized companies. And since I came back to the bank, we've realized that we needed to make the company's accounts grow more, because we have an acquiring company, which is Vero, and they help us. They support us in these procedures.
In terms of individual accounts, now we will work more with the private payroll loans, because in the public payroll loans, our portfolios are on their limits, I would say, or almost their limit. We have a tradition of working with the public payroll loans for... So it has almost reached the maturity. So we need to have this bird's-eye view to understand our portfolio mix, to make sure we keep the profitability of the bank in a proper fashion, and to maintain the bank's financial equity. Otherwise, we will unbalance this. We all love the rural loans, but we have a limit. Also the real estate loan is very, very important for the economy of the country. It generates jobs. It's a good portfolio.
However, in order for you to buy a, an apartment, a house, you need to have a safe or a good, interest rate. The interest rate in Brazil is very high, so there's not a lot of funding. So we would like to make this portfolio grow, but we need to be careful about the bank's profitability. What we've been doing here is about trying to find the right balance to make the portfolios and the fundings of the institution, and the profitabilities all work out for the bank. So this year, the ROAE had a very good, robust performance, as we have seen, and we want to continue this. And in order to keep up with this ROAE and this profitability, we want to follow this pathway, this safe pathway, to make the institution grow.
Perfecto, Fernanda.
Thank you very much, Fernanda. Do you have a follow-up on your side?
No, that's super clear.
No, that's super clear. Could you discuss the fees, as the aspects of the fees and the perspectives on fees, please?
Well-
As I mentioned before... Just a second. Sorry.
As I mentioned before-
As I mentioned before-
fees, well-
We have... The fees have a limit imposed by the Central Bank.
Yes.
I mean, it has decreased this. They have, they have a limit for the consumer. It's good for the consumers, but it has a certain effect on the banking systems inside at Vero. I mean, even at Vero, the market has changed. We have worked with this offset. It's all embedded in this unique fee. And then we consolidate the revenues that could come from fees. They will be consolidated based on the anticipated receivables. So instead of waiting for 30 days or for more days, they will get the money on demand. It will appear in a different fashion. It's a very important point. In terms of companies' accounts, for small and medium-sized company, individual companies, we will make this grow.
We will make the service fees grow as we advance in this market. And another aspect is that we need to increase the client base. If you have more clients, we will have more fees. We have been increasing this in the company's accounts. We have been working to make this base grow, to grow in terms of lots of clients, bulk clients. We have an excellent payroll in the state with working with municipalities. Now, with this new change brought by the company benefit, and there will be a change in this market. We have lost, we have lost, some of this at Vero, but we are working along with the municipalities to make this grow again. This will help us compose an important revenue in terms of benefits paid by companies.
But anyway, the idea here is to make the client base grow in the company size and in individual accounts side. Also, the currency portfolio is a very good way to make this grow. We want to double this base, but-
... abrupt, too rapid.
This will not be quick growth. This growth will take time. We will maintain our bases and make them grow. Maybe, based on the IPCA or, but they will be consolidated and persistently, and little by little, we'll reach, we expect to reach good results.
[Foreign language] Perfeito, Fernanda, obrigado.
Thank you, Fernanda.
[Foreign language] Você já respondeu, Fernanda.
I don't know if I answered your question.
[Foreign language] Respondeu, Fernanda.
Yes. Thank you very much.
[Foreign langauge] Obrigado, obrigado, obrigado a você! Então vamos pra última, pra última pergunta aqui.
Thank you. Now, moving on to the final question.
[Foreign language] Eu gostaria de chamar o Eduardo Nishio, da Genial. Tudo bem, Nishio?
[Foreign language] Muito bem! Boa tarde, boa tarde a todos.
Hello, everyone
[Foreign language] É, boa tarde, Fernando, Gonzaga, Natália-
Fernando, Gonzaga, Natália
[Foreign language] e demais executivos. Eu tenho uma pergunta em relação ao guidance e às despesas e eficiência do banco. Eu queria entender um pouquinho mais do planejamento da remodelação de vocês da do footprint. O que a gente vê nos bancos nacionais é uma redução drástica aí de agências. O Banrisul vem mantendo o número de agências. Eu queria saber um pouquinho mais sobre esse footprint e das despesas administrativas, que rodam aí acima da inflação já faz um tempo. Como que vocês tão investindo esse delta acima da inflação, e o que vocês pretendem com isso? E também dar uma direção sobre essa eficiência, que tá rolando em números altos, 60%. E vocês aí veem esse número chegar até quanto, em quanto tempo?
Eu acho que é isso. No geral, queria saber um pouquinho mais dessas despesas. Obrigado.
[Foreign language] Bem, quanto ao modelo de agência, nós a gente vem remodelando nossas agências. Agências sem portas de segurança. O cliente chega, entra direto na agência. No fundo da agência, vai ter lá uma porta rotatória, que é os caixas, né, que é uma coisa basicamente eles tá também tendo um outro projeto, caixa mínimo, né? Caixa tem 1, 2 caixas por agência, e não são todas as agências que tem caixa. Nós estamos consolidando 2, 3 agências num mesmo ponto, tá? Criando, assim, um modelo de agência de pessoas jurídicas, exclusiva pra pessoa jurídica. Nós temos muitas cidades específicas, Porto Alegre, Pelotas, Caxias. Cidades que a gente concentra em uma agência, separa uma agência, uma agência sem, não tem caixa não, tem apenas um escritório de negócios, né? Sem gerente, só um gerente.
É um modelo. O banco vai continuar com o modelo presencial, nós não vamos fechar agências pequenas. Isso não, não vamos fazer. O que nós estamos mudando é o modelo de agência, vai ser um escritório, uma agência de negócios. Vai ter 2, 3 empregados, 4 empregados, uma sala dela, pra atender o cliente. E aí, nós temos um outro modelo de negócio, nesses pequenos municípios, é um produto que se chama Banri Ponto, que é o Banrisul, é o banco do RS, é pra atendimento, um correspondente bancário, tá? Pra atender o nosso mercado no negócio, como na operação do dia a dia, um recebimento, conta de água, de luz. Isso tem no mercado, não adianta, o pessoal vai lá, paga sua conta de água. Então ele vai no correspondente bancário.
Nós estamos com um novo modelo de negócio no nosso país, e ele vai ser mais rentável do que ele já é, porque é rentável, é importante. A cada 5 correspondentes, cada 10 correspondentes, nós vamos abrir uma pequena agência, que é rentabilidade. E toda a estrutura é da bancária, do negócio dele lá, né? Não é um funcionário dele, ele é apenas um correspondente bancário nosso. Então, isso tem uma economia de longo prazo. Em recorrentando, nós vamos entrar de forma, nós temos base de trabalho, também, a médio prazo vai dar uma economia fantástica pro banco. Nós não temos, nós não vamos demitir funcionário, mas claramente... Tá, então, é, isso não, isso vai acontecer ao longo do tempo.
E nossa expectativa de eficiência operacional, de eficiência, ele vai cair, ele vai cair rapidamente. Ele vai é um projeto que nós temos, e ele vai ser entregue...
We have a project, and we will deliver that
[Foreign language] num espaço, é, bem breve de tempo, aí, não- As soon as possible próximos semestres. In the next semester- Vai melhorar bastante a eficiência operacional... we will improve our operating efficiency in-
[Foreign language] Eu acho que era isso mesmo.
Which was the other question? Well, that's it.
[Foreign language] É interessante, você falou que a eficiência pode cair rapidamente?
[Foreign language] É, vai, vai, paulatinamente, mas vai cair.
[Foreign language] É, bacana. É, poderia explicar um pouco mais essa-
Yes, little by little, gradually, will go down. Could you talk a little bit more about this expected reduction? This will this be based on revenue or costs? We will increase our revenue and also contain the expenses. We will work on the two ends of this. Both things will need to be dealt with, will need to be managed, the income and the cost. As you-
[Foreign language] Vai se aposentando, empregados que têm um tempo longo de casa...
as you, as our old employees, they retire, and then we have to welcome new staff. This makes a difference in the human resource department's cost, let's say, let's say. So, human resources will have a change in this. And this will have a reflection in the payroll.
With these new models of branches, this new model of service provision, this will have an impact, and it will also increase our work on the increase of income. So we need to work on several pillars to make this work. In order to complement, we have reviewed several investments in innovation and technology-
...
There is an expectation in terms of, we will gain more scalability and productivity. Yes, yes, that's it. We will have some innovations and which will pay off. In the first semester of 2026, we will scale up in the digital channels very strongly to distribute credit products. Today, we still have a small size. The idea is to scale to scale in our app, digital platforms. We've been modernizing our ATMs part, and cash services in the branches will be able to distribute credit. And we also have the banking correspondent. We implement credit services in these platforms, in all these partners, the strategic partners. We will then reduce the back office in the branches, centralizing some of these services. This will give us some gains in scale, efficiency, and cost reduction.
Our managers, our employees, will be devoted to the business, to the service provision, to the service they provide to our clients. So this will make us growth in terms of revenue and income. The main motto for this year is to grow in incomes, with new business, more services, more credit, more businesses that really make sense and add value to the bank. 2026 will be a hallmark. We will change. It will be a paradigm shift. In terms of collection, for example, we had a model in which we depended on the branches' footprints to collect. Now, with this new system of collection that we've been developing, this will move to digital channels. So small retails, more clients will be charged through these digital channels. So in the branches, the managers will deal with very special products.
Rural loans that cannot be easily renegotiated, that need more service. Real estate loans, it's another type of loan that requires a face-to-face relationship with the clients. And maybe big companies also will need to continue being managed by relationship managers of the bank. This year, like Mr. Gonzaga, we have directed 300 new colleagues to the relationship managers platform. It means that we'll have more professionals negotiating and talking to our clients, with more businesses, more deals, with digitalized platforms, lower cost platforms. So we'll re-qualify our business and reduce our costs and increase our efficiency.
Legal, uh-
Thank you very much.