Digital Banks Lead Profitability Gains Among Brazilian Lenders, Reports Central Bank

Brasilia, November 21, 2024 – Brazilian banks saw an improvement in profitability during the first half of 2024, with digital banks playing a key role in the growth, according to the country’s central bank. In its latest Financial Stability Report, the central bank highlighted that net interest income and service revenues are expected to continue rising in the second half of the year.

The report revealed that the return on equity (ROE) for Brazil’s banking system increased to 15.11% by June 30, 2024, up from 14.23% at the end of December 2023. This growth reflects a positive trend in the profitability of both traditional and digital banks operating in Brazil.

Digital banks, which have gained significant popularity in recent years, are credited with leading this profitability surge, benefiting from increased customer adoption and digital service offerings. The central bank’s report suggests that the upward trajectory in earnings is expected to continue as more consumers and businesses embrace digital banking solutions.