Brazil’s Banese Posts Record R$ 147M Profit in 2024, Driven by Credit Growth and Innovation

Banese, the Banco do Estado de Sergipe, reported a record net profit of R$ 146.7 million ($24 million) in 2024, a remarkable 208.8% increase compared to the previous year.

This achievement reflects the bank’s strategic focus on credit expansion, service diversification, and financial inclusion efforts in Sergipe. The financial intermediation income rose by 13% year-over-year, reaching R$ 497.7 million ($83 million).

Meanwhile, the credit portfolio expanded by 14.9%, totaling R$ 4.611 billion ($769 million). These gains underscore Banese‘s ability to grow its lending activities while maintaining operational efficiency.

However, the bank faced challenges with rising delinquency rates, which climbed to 3.38% in the fourth quarter from 2.87% at the end of 2023. To address this, Banese increased its credit provisions by 9.4%, allocating R$ 236.2 million ($39 million) to mitigate risks.

Banese’s service revenue also saw significant growth, increasing by 11.9% to R$ 136.7 million ($23 million). The bank‘s payment solutions subsidiary, Mulvi, which manages Banese Card and Mulvi Pay, processed transactions worth R$ 4.5 billion ($750 million) in 2024.

This represents a year-over-year growth of 13.9%. This included R$ 1.2 billion ($200 million) in the fourth quarter alone. This represents an increase of 8.5% compared to the same period in 2023.

Banese’s Growth and Resilience

Administrative expenses rose by 6.4% to R$ 426.8 million ($71 million) as Banese invested in infrastructure and customer acquisition strategies. By year-end, the bank had grown its client base to over 871,200 customers and operated through a network of 63 branches across Sergipe.

Banese President Marco Queiroz credited these results to the dedication of employees and a commitment to innovation and financial inclusion. He highlighted how these efforts have contributed not only to the bank’s success but also to improving socioeconomic conditions in Sergipe.

Despite challenges from rising defaults in payroll-deductible loans, Banese maintained a strong return on equity (ROE) of 20.3%, up by 12.6 percentage points over the year. The bank’s ability to balance growth with risk management underscores its role as a key player in regional economic development.

Banese’s record-breaking performance positions it as a leader among regional banks in Brazil. It showcases how targeted strategies can drive sustainable growth, even amid challenges.

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