Porto () recorded a net profit of R$739.1 million in the third quarter of 2024. The value is 32.3% higher than that obtained in the same period last year.
The company’s return on equity (ROAE) went from 18.5% in the second quarter to 22.9%. All business verticals exceeded 20% profitability, says the company.
Net revenue grew 11% compared to the third quarter of 2023, to R$9.5 billion. The company attributed the double-digit increase in revenue to the growth of its base, which totaled 18 million customers at the end of the period.
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The Porto Seguro vertical, which corresponds to approximately 60% of the result, recorded a slight drop in revenue, of 0.2%, compared to a year ago. The detractor of this line of the balance sheet was car insurance, whose revenues fell 4.6%.
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On the other hand, revenue stability was guaranteed by growth of 8.1% in property insurance and 10.4% in life insurance.
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Paulo Kakinoff, CEO of Porto, recalls that “auto” insurance now represents more than 80% of the company’s revenue. Today, this share has been reduced to just over a third and even though it is growing, it still “tends to represent less than a third”.
According to him, the only way to gain market share in this segment today is with aggressive approaches, which Porto does not adopt.
The insurance loss ratio, which had stood at 52.5% in the second quarter, with the impact of the floods in Rio Grande do Sul, fell to 50.8% in the period ending in September.
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Revised projections
Porto’s third quarter balance sheet was accompanied by two guidance revisions. Now, the company predicts that the health accident rate will be between 77.5% and 77.9%. The previous forecast was between 77.7% and 78.2%.
The other review was regarding revenue from the banking vertical, which is expected to grow between 18% and 24% – the previous guidance pointed to growth between 13% and 19%.
These are two verticals that made a relevant contribution to Porto’s quarterly results. Revenues from the healthcare business grew 41.5% year-on-year, while the number of beneficiaries reached 641 thousand lives, a growth of 25.7%. The division’s profit more than doubled (an increase of 104.7%), to R$76.7 million.
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In the Porto Bank vertical, revenues grew 24.1% – the company reports that all businesses in the division expanded in the period. Highlight is the consortium part, with growth of 37.6%.
Finally, the Porto Serviços vertical, about to complete one year as an independent division, earned R$620.1 million in the quarter. Around 24% of the business unit’s revenues were obtained independently of the insurance vertical.
Improvement in financial results
In relation to the financial result, revenue from applications excluding ALM (Asset and Liability Management) was R$ 293.6 million, which represents a profitability equivalent to 83.2% of the CDI (impacted by the performance in fixed income indexed to inflation and pre-fixed). Net financial profit was R$246.4 million.
The operational efficiency index, which covers the sum of administrative expenses in relation to total revenue, reached 11.1%, remaining practically stable compared to a year earlier.
Spreadsheet
3rd quarter results
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