Banco do Estado do Rio Grande do Sul (BRSR6) investor relations material

Executive summary

• Net income for 2Q2026 was R$325.4 million, up 46.8% sequentially but down 13.9% year-over-year; 1H2026 net income was R$547.0–558.2 million, down 11.4%–11.7% year-over-year, mainly due to higher credit risk losses and a challenging economic environment.

• ROAE for 2Q2026 was 11.4%, up 3.5 percentage points sequentially but down year-over-year; 1H2026 ROAE averaged 9.6%.

• Digital transformation advanced, with over 90% of transactions via digital channels and 100% app-based accounts for individuals and corporates.

• Labor disputes largely resolved, with agreements covering almost 600 employees and voluntary settlements reducing provision expenses.

• Exclusive payroll services agreement renewed for R$1,234.0 million, strengthening the public sector client base.

Financial highlights

• Net interest income for 1H2026 was R$3,349.4 million (+6.1% YoY); financial margin for 1H2026 was R$3,357.9 million (+5.5% YoY).

• Total loan portfolio was R$64.4–64.5 billion as of June 2026, stable year-over-year, with growth in corporate and foreign exchange loans offset by declines in rural and payroll-deductible loans.

• Total funding reached R$116.8 billion (+12.2% YoY); assets under management grew 13.8% to R$22.6 billion.

• Administrative expenses for 1H2026 were R$2,545.9 million (+7.9% YoY), mainly due to higher personnel costs.

• Income from services was stable at R$1,049.1 million (+0.2% YoY).

Outlook and guidance

• Loan portfolio growth guidance revised to 2%–7%; net interest income guidance set at 5%–10%; cost of risk expected between 1.5%–2.5%.

• Administrative expenses guidance unchanged at 5%–9% for the year.

• Financial margin and profitability expected below initial projections due to higher funding costs and product mix shift.

• Focus remains on digitalization, risk control, and expanding commercial relationships, especially with public sector payroll clients.

• Expectation for capital ratios to gradually recover to historical levels over the next 2–3 years.