By Brazil Stock Guide – BR Partners (B3: BRBI11), the Brazilian investment bank led by banker Ricardo Lacerda, reported net income of R$35.1 million in the second quarter of 2026, down 22.4% from R$45.2 million a year earlier. Earnings were pressured by a combination of lower financial income and a sharp increase in personnel and administrative expenses.
Total revenue fell 6.6% to R$130.1 million. Although fee and service revenue rose 10.5% to R$85.9 million, the increase was not enough to offset a 28.2% decline in net interest and financial-instrument income, which fell to R$44.2 million.
The main drag came from income generated by the bank’s own capital, which declined 31.9% to R$25.7 million from R$37.7 million. Revenue from Treasury Sales & Structuring also fell 22.4% to R$18.5 million amid a slowdown in Brazilian corporate debt issuance and greater market volatility.
On the cost side, personnel expenses jumped 43.9% to R$50 million, while administrative expenses rose 39.8% to R$28 million. The increase in administrative costs was driven mainly by spending on third-party services, which more than doubled to R$12.1 million.
In nominal terms, growth in investment banking and wealth management added approximately R$8.2 million to revenue from a year earlier. At the same time, lower income from the bank’s own capital and Treasury operations reduced revenue by about R$17.4 million, while personnel and administrative expenses increased by roughly R$23.2 million.
Investment Banking Continues to Grow
Investment banking and capital-markets revenue rose 9.8% to R$81.1 million. During the quarter, BR Partners announced seven financial-advisory transactions, including mergers and acquisitions and corporate restructurings, and arranged 15 capital-markets deals.
Those transactions totaled R$1.9 billion and included Brazilian real estate receivables certificates, debentures, bank credit notes and real estate investment funds. Trading volume in derivatives and foreign exchange reached R$3.6 billion.
The investment and wealth-management division also expanded, with revenue rising 23.9% to R$4.8 million. Assets under management and advisory reached R$6.2 billion at the end of June, approximately 4% above the December level.
Lower Tax Rate Softens Earnings Decline
With financial income under pressure and costs rising, pre-tax profit fell 34.6% to R$41.8 million. A lower effective tax rate of 16%, compared with 29.2% a year earlier, cushioned part of the impact and limited the decline in net income to 22.4%.
Return on equity stood at 17.5%. In the first half of 2026, BR Partners recorded net income of R$72.8 million, down 17.6% from a year earlier, and distributed R$37.8 million in interim dividends.
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