New Risk • Jun 02
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Brazilian stocks, typically moving 8.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.4% average weekly change). Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (18% increase in shares outstanding). Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to R$82.00, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 6x in the Banks industry in Brazil. Total returns to shareholders of 832% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at R$37.33 per share. New Risk • May 25
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 18% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.4% average weekly change). Large one-off items impacting financial results. Shareholders have been diluted in the past year (18% increase in shares outstanding). Reported Earnings • May 11
First quarter 2026 earnings released: EPS: R$3.25 (vs R$1.05 in 1Q 2025) First quarter 2026 results: EPS: R$3.25 (up from R$1.05 in 1Q 2025). Revenue: R$1.39b (up 51% from 1Q 2025). Net income: R$273.5m (up 150% from 1Q 2025). Profit margin: 20% (up from 12% in 1Q 2025). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Banks industry in Brazil. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has increased by 92% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 25
Banco Mercantil do Brasil S.A., Annual General Meeting, Apr 23, 2026 Banco Mercantil do Brasil S.A., Annual General Meeting, Apr 23, 2026. Location: av. do contorno, edificio statement, 5.800, 12 andar, bairro savassi, city of belo horizonte, state of minas gerais, belo horizonte Brazil New Risk • Mar 12
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 99% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.5% average weekly change). Minor Risk Large one-off items impacting financial results. Reported Earnings • Mar 06
Full year 2025 earnings released: EPS: R$5.93 (vs R$7.20 in FY 2024) Full year 2025 results: EPS: R$5.93 (down from R$7.20 in FY 2024). Revenue: R$4.92b (up 12% from FY 2024). Net income: R$619.4m (down 18% from FY 2024). Profit margin: 13% (down from 17% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has increased by 99% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to R$77.29, the stock trades at a trailing P/E ratio of 9.5x. Average trailing P/E is 9x in the Banks industry in Brazil. Total returns to shareholders of 823% over the past three years. New Risk • Feb 13
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Brazilian stocks, typically moving 8.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to R$70.10, the stock trades at a trailing P/E ratio of 8.6x. Average trailing P/E is 8x in the Banks industry in Brazil. Total returns to shareholders of 717% over the past three years. New Risk • Jan 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Jan 02
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to R$65.00, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 8x in the Banks industry in Brazil. Total returns to shareholders of 674% over the past three years. Valuation Update With 7 Day Price Move • Dec 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to R$77.50, the stock trades at a trailing P/E ratio of 9.5x. Average trailing P/E is 8x in the Banks industry in Brazil. Total returns to shareholders of 802% over the past three years. Reported Earnings • Nov 07
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: R$1.32b (up 6.1% from 3Q 2024). Net income: R$261.1m (up 8.1% from 3Q 2024). Profit margin: 20% (in line with 3Q 2024). Reported Earnings • Aug 08
Second quarter 2025 earnings released: EPS: R$2.28 (vs R$1.50 in 2Q 2024) Second quarter 2025 results: EPS: R$2.28 (up from R$1.50 in 2Q 2024). Revenue: R$1.22b (up 22% from 2Q 2024). Net income: R$237.7m (up 51% from 2Q 2024). Profit margin: 20% (up from 16% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 53% per year whereas the company’s share price has increased by 58% per year. New Risk • Aug 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • May 15
First quarter 2025 earnings released First quarter 2025 results: Revenue: R$923.1m (flat on 1Q 2024). Net income: R$109.5m (down 26% from 1Q 2024). Profit margin: 12% (down from 16% in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 59% per year whereas the company’s share price has increased by 54% per year. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to R$38.65, the stock trades at a trailing P/E ratio of 5.4x. Average trailing P/E is 7x in the Banks industry in Brazil. Total returns to shareholders of 348% over the past three years. Announcement • Apr 02
Banco Mercantil do Brasil S.A., Annual General Meeting, Apr 30, 2025 Banco Mercantil do Brasil S.A., Annual General Meeting, Apr 30, 2025. Location: av. do contorno, edificiostatement, 5.800, 12 andar, bairro savassi, city of belo horizonte, state of minas gerais, belo horizonte Brazil Reported Earnings • Feb 06
Full year 2024 earnings released Full year 2024 results: Revenue: R$4.38b (up 34% from FY 2023). Net income: R$752.2m (up 79% from FY 2023). Profit margin: 17% (up from 13% in FY 2023). The increase in margin was driven by higher revenue. Reported Earnings • Nov 07
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: R$1.25b (up 39% from 3Q 2023). Net income: R$241.5m (up 89% from 3Q 2023). Profit margin: 19% (up from 14% in 3Q 2023). The increase in margin was driven by higher revenue. Reported Earnings • Aug 09
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: R$998.8m (up 28% from 2Q 2023). Net income: R$157.2m (up 82% from 2Q 2023). Profit margin: 16% (up from 11% in 2Q 2023). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Aug 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to R$36.52, the stock trades at a trailing P/E ratio of 7.4x. Average trailing P/E is 8x in the Banks industry in Brazil. Total returns to shareholders of 336% over the past three years. Reported Earnings • May 10
First quarter 2024 earnings released First quarter 2024 results: Revenue: R$991.4m (up 47% from 1Q 2023). Net income: R$165.1m (up 194% from 1Q 2023). Profit margin: 17% (up from 8.3% in 1Q 2023). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • May 03
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to R$26.00, the stock trades at a trailing P/E ratio of 6.5x. Average trailing P/E is 9x in the Banks industry in Brazil. Total returns to shareholders of 247% over the past three years. Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to R$24.80, the stock trades at a trailing P/E ratio of 6.2x. Average trailing P/E is 9x in the Banks industry in Brazil. Total returns to shareholders of 244% over the past three years. Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to R$29.00, the stock trades at a trailing P/E ratio of 7.2x. Average trailing P/E is 9x in the Banks industry in Brazil. Total returns to shareholders of 318% over the past three years. New Risk • Feb 09
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 0% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.8% average weekly change). Large one-off items impacting financial results. Reported Earnings • Feb 08
Full year 2023 earnings released Full year 2023 results: Revenue: R$3.27b (up 27% from FY 2022). Net income: R$420.9m (up 110% from FY 2022). Profit margin: 13% (up from 7.8% in FY 2022). The increase in margin was driven by higher revenue. New Risk • Feb 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.2% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to R$22.10, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 10x in the Banks industry in Brazil. Total returns to shareholders of 245% over the past three years. Valuation Update With 7 Day Price Move • Dec 26
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to R$18.20, the stock trades at a trailing P/E ratio of 5.7x. Average trailing P/E is 9x in the Banks industry in Brazil. Total returns to shareholders of 163% over the past three years. New Risk • Nov 15
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 38% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • Nov 13
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: R$896.2m (up 22% from 3Q 2022). Net income: R$127.9m (up R$112.3m from 3Q 2022). Profit margin: 14% (up from 2.1% in 3Q 2022). The increase in margin was driven by higher revenue. Reported Earnings • Aug 10
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: R$782.5m (up 19% from 2Q 2022). Net income: R$86.6m (up 34% from 2Q 2022). Profit margin: 11% (up from 9.8% in 2Q 2022). Reported Earnings • Mar 12
Full year 2022 earnings released: EPS: R$1.91 (vs R$1.77 in FY 2021) Full year 2022 results: EPS: R$1.91 (up from R$1.77 in FY 2021). Revenue: R$2.39b (up 6.0% from FY 2021). Net income: R$199.2m (up 8.0% from FY 2021). Profit margin: 8.3% (up from 8.2% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 16% per year. Reported Earnings • Nov 17
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: R$720.3m (up 18% from 3Q 2021). Net income: R$15.6m (down 61% from 3Q 2021). Profit margin: 2.2% (down from 6.6% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 19% per year. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 8 highly experienced directors. No independent directors (9 non-independent directors). Director André de Figueiredo Brazil was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Oct 03
Investor sentiment improved over the past week After last week's 15% share price gain to R$11.60, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 8x in the Banks industry in Brazil. Total returns to shareholders of 137% over the past three years. Board Change • Apr 26
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 8 highly experienced directors. No independent directors (9 non-independent directors). Director André de Figueiredo Brazil was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Is New 90 Day High Low • Feb 12
New 90-day high: R$17.79 The company is up 15% from its price of R$15.51 on 13 November 2020. The Brazilian market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is up 5.0% over the same period. Is New 90 Day High Low • Oct 20
New 90-day high: R$19.65 The company is up 36% from its price of R$14.44 on 22 July 2020. The Brazilian market is down 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is down 11% over the same period.