BR Advisory Partners Participações (BRBI11) Q1 2025 earnings summary

Executive summary

• Delivered resilient results in 1Q25 despite a challenging macroeconomic environment, with net income at R$43.1mn, up 2.4% sequentially but down 12.8% year-over-year.

• Client revenues comprised 78% of total revenue, though activity levels declined due to macro headwinds.

• Efficiency ratio improved to 46.9% from 51.9% in 4Q24, reflecting lower administrative expenses.

• Dividend of R$0.30/unit approved, totaling R$31.5mn, with a 9.1% annualized yield.

Financial highlights

• Total revenues reached R$127.5mn, down 11.4% sequentially and 7.3% year-over-year.

• Net margin was 33.8%, up from 29.3% in 4Q24 but down from 36.0% in 1Q24.

• ROAE stood at 21.6% for the quarter, up 1.1 p.p. sequentially but down 2.5 p.p. year-over-year.

• Compensation ratio was 26.7%, up from 24.2% in 4Q24.

• Basel Ratio improved to 20.1% from 18.0% in 4Q24.

Outlook and guidance

• Management continues to focus on operational efficiency and tactical capital management, leveraging the bank on high-rating clients.

• M&A activity is expected to remain subdued in 2025 due to international volatility and high debt costs, while restructuring services are gaining traction.

• Capital markets activity remained resilient in 1Q25, but a slowdown is anticipated as clients focus on cash preservation.

• Resilient performance expected despite ongoing macroeconomic challenges.