Minas Gerais Development Bank Achieves R$134.5 Million Profit, Expands Regional Impact

The Banco de Desenvolvimento de Minas Gerais (BDMG) reported a record profit of R$134.5 million ($23.6 million) in 2024, marking a 38% increase from the previous year.

The state-owned development bank announced these results alongside significant growth in lending activities throughout Minas Gerais, Brazil’s second-most populous state.

BDMG increased its total disbursements by 18.8% to R$3.54 billion ($621.1 million) in 2024. These funds supported both public and private financing for municipalities and businesses across the state.

The bank served over 5,000 companies and numerous local governments, reaching 775 of the state’s 853 municipalities. “These robust results confirm BDMG’s solid, efficient operational growth,” said Gabriel Viégas Neto, President of BDMG.

“The bank has successfully enhanced the quality of its disbursements, generating significant economic and social impact.” Investment project financing grew by 23% to R$2 billion ($350.9 million).

The bank disbursed R$505 million ($88.6 million) to micro and small enterprises, increasing its small business client base by 10%. Medium and large business financing rose 18% to R$2.6 billion ($456.1 million).

Brazil’s BDMG Expands Financing Amid Economic Challenges

Agribusiness received the largest sectoral allocation at R$1.46 billion ($256.1 million), representing a 46% increase. Cooperative financing surged 193% to R$264 million ($46.3 million).

Innovation project funding showed remarkable growth of 625%, jumping from R$79 million to R$573 million ($100.5 million). Municipal governments received R$486 million ($85.3 million), a 48% increase from 2023.

Infrastructure project financing also grew 48% to R$486 million ($85.3 million). BDMG maintained strong financial indicators despite challenging economic conditions.

The bank’s loan portfolio reached R$7.1 billion ($1.2 billion), nearly 20% higher than the previous year. Non-performing loans stood at 1.3%, slightly up from 0.9% but remaining below market averages.

The bank’s equity increased to R$2.3 billion ($403.5 million) from R$2.1 billion ($368.4 million) in 2023. BDMG secured R$3.1 billion ($543.9 million) in funding during 2024, with 75% from domestic sources and 25% from international partners.

A significant December deal brought US$220 million from the Development Bank of Latin America and Caribbean for energy efficiency and green financing projects. BDMG received recognition for its sustainability initiatives, winning the Green-ALIDE Award for financing environmentally beneficial projects.

Looking ahead, Viégas predicts a more challenging 2025 due to GDP slowdown and persistent inflation. Two major international funding arrangements with the Inter-American Development Bank and the New Development Bank await approval, pending resolution of state fiscal matters.

These potential funding sources will help BDMG continue supporting sustainable development initiatives throughout Minas Gerais despite anticipated economic headwinds.

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