Renta 4 Banco S.A. (R4) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months of 2024 reached €23.2M, up 20.7% year-over-year; Q3 net profit was €8.1M, a 55.1% increase compared to Q3 2023.

• Total client assets at September 2024 were €34.6B, up 16.9% year-over-year; proprietary network assets reached €21.2B.

• Number of clients in the proprietary network grew 6% to 131,300; net new client assets in the proprietary network were €1.3B in the first nine months.

• Latin American subsidiaries contributed 12.37% of consolidated Q3 profit.

Financial highlights

• Net commissions for the first nine months were €79.8M, up 16.8% year-over-year; Q3 net commissions were €25.5M, up 19.3%.

• Gross margin for the first nine months was €106.8M, up 16.7%; Q3 gross margin was €37.3M, up 27.9%.

• Operating profit for the first nine months was €32.1M, up 20.1%; Q3 operating profit was €11.3M, up 57.3%.

• EPS for the first nine months was €0.57, up 20.7% year-over-year.

• Return on Equity (ROE) stood at 20.61%, well above the industry average.

Outlook and guidance

• Positive expectations for Q4 based on strong client asset levels, over 130,000 client accounts, and robust solvency and liquidity ratios.

• Anticipates continued growth in net fees and assets under management, with corporate finance strengthened by the Sigrun Partners team.