v3.25.4
Business segment reporting
 12 Months Ended
Dec. 31, 2025
Business Segment Reporting  
Business segment reporting

 

44.Business segment reporting

In accordance with IFRS 8, an operating segment is defined as a component of an entity:

(a)That engages in activities from which it can generate income and incur expenses (including income and expenses arising from transactions with other components of the same entity);
(b)Whose operational results are regularly reviewed by the entity’s chief decision-maker responsible for operational decisions regarding the allocation of resources to the segment and assessment of its performance; and
(c)For which separate financial information is available.

Based on these guidelines, the Bank has identified the following reportable operating segments:

• Commercial Bank

• Global Wholesale Bank (SCIB)

The Bank operates across two segments: the Commercial Segment, catering to both individual and corporate clients (excluding global corporate clients, who are served in the Global Wholesale Banking Segment), and the Global Wholesale Banking Segment, which encompasses Investment Banking and Markets operations, including the Treasury and Equity Business Departments.

The Bank operates both in Brazil and internationally through its branches in Cayman and Luxembourg, as well as its subsidiary in Spain, serving Brazilian clients. Accordingly, it does not present geographical segmentation.

 

The Income Statements and other relevant data are as follows:

     
Thousand of Reais 2025
Income Statement Commercial Banking  Global Wholesale Banking Total
NET INTEREST INCOME 53,125,730 4,508,588 57,634,318
Equity instrument income 7,579 77,949 85,528
Income from companies accounted for by the equity method 373,830 84,483 458,313
Net fee and commission income 15,396,640 2,098,816 17,495,456
Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) (1) (4,206,481) 4,337,744 131,263
Other operating expense (net) (703,532) (104,789) (808,321)
TOTAL INCOME 63,993,766 11,002,791 74,996,557
Personnel expenses (10,568,513) (1,130,833) (11,699,346)
Other administrative expenses (8,208,448) (1,030,644) (9,239,092)
Depreciation and amortization (2,466,865) (158,918) (2,625,783)
Provisions (net) (4,894,082) (84,596) (4,978,678)
Impairment losses on financial assets (net) (28,817,676) (722,186) (29,539,862)
Impairment losses on non-financial assets (net) (312,712) (84,234) (396,946)
Other non-financial gains (losses) 212,144 - 212,144
OPERATING PROFIT BEFORE TAX (1) 8,937,614 7,791,380 16,728,994
Currency Hedge(1) (363,712) - (363,712)
ADJUSTED OPERATING INCOME BEFORE TAX (1) 8,573,902 7,791,380 16,365,282
       
Thousand of Reais 2024
Income Statement Commercial Banking  Global Wholesale Banking Total
NET INTEREST INCOME 51,563,173 5,115,387 56,678,560
Equity instrument income 5,109 78,538 83,647
Income from companies accounted for by the equity method 259,321 53,665 312,986
Net fee and commission income 14,943,536 2,261,673 17,205,209
Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) (1) (1,487,662) 1,616,667 129,005
Other operating expense (net) (479,848) (172,273) (652,121)
TOTAL INCOME 64,803,629 8,953,657 73,757,286
Personnel expenses (10,534,033) (1,063,963) (11,597,996)
Other administrative expenses (7,835,919) (982,589) (8,818,508)
Depreciation and amortization (2,599,134) (131,884) (2,731,018)
Provisions (net) (4,582,750) (12,488) (4,595,238)
Impairment losses on financial assets (net) (28,450,756) (33,274) (28,484,030)
Impairment losses on non-financial assets (net) (252,550) 63 (252,487)
Other non-financial gains (losses) 1,912,219 - 1,912,219
OPERATING PROFIT BEFORE TAX (1) 12,460,706 6,729,522 19,190,228
Currency Hedge(1) 664,616 - 664,616
ADJUSTED OPERATING INCOME BEFORE TAX (1) 13,125,322 6,729,522 19,854,844

 

       
Thousand of Reais 2023
Income Statement Commercial Banking Global Wholesale Banking Total
NET INTEREST INCOME 44,651,967 2,232,067 46,884,034
Equity instrument income 3,514 18,665 22,179
Income from companies accounted for by the equity method 184,889 54,347 239,236
Net fee and commission income 13,269,837 2,370,128 15,639,965
Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) (1) (1,125,430) 4,920,116 3,794,686
Other operating expense (net) (595,993) (119,797) (715,790)
TOTAL INCOME 56,388,784 9,475,526 65,864,310
Personnel expenses (9,753,972) (1,059,954) (10,813,926)
Other administrative expenses (7,866,949) (881,766) (8,748,715)
Depreciation and amortization (2,621,353) (119,597) (2,740,950)
Provisions (net) (4,404,408) (20,004) (4,424,412)
Impairment losses on financial assets (net) (26,582,759) (1,425,327) (28,008,086)
Impairment losses on non-financial assets (net) (250,044) (129) (250,173)
Other non-financial gains (losses) 1,043,603 - 1,043,603
OPERATING PROFIT BEFORE TAX (1) 5,952,902 5,968,749 11,921,651
Currency Hedge(1) (163,165) - (163,165)
ADJUSTED OPERATING INCOME BEFORE TAX (1) 5,789,737 5,968,749 11,758,486
(1) Includes, within the Commercial Bank, the foreign exchange hedge of the dollar investment (a strategy to mitigate the tax effects and exchange rate fluctuations of offshore investments on net income), with its result recorded in 'Gains (losses) on financial assets and liabilities,' fully offset in the Tax line.

 

     
  2025
Other aggregates: Commercial Banking Global Wholesale Banking Total
Total assets 1,180,389,914 89,639,551 1,270,029,465
Loans and advances to customers 484,676,332 79,872,224 564,548,556
Customer deposits 475,642,024 117,686,772 593,328,796

 

       
  2024
Other aggregates: Commercial Banking Global Wholesale Banking Total
Total assets 1,143,663,122 95,133,688 1,238,796,810
Loans and advances to customers 484,849,401 81,240,513 566,089,914
Customer deposits 446,780,888 158,287,275 605,068,163