Brazil · Delayed Price · Currency is BRL Banco do Brasil Earnings Call Transcripts
Fiscal Year 2026
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Earnings rose 13.9% quarter-over-quarter, driven by net interest and fee income, but high delinquency in agribusiness and credit cards weighed on results. Provisional Measure 1376 is expected to support loan renegotiations and improve risk metrics, while capital remains robust at 11.27% CET1.
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Q1 net income was BRL 3.4 billion amid rising credit risk, with NII up 15% year-over-year and CET1 projected at 11%-11.5% through 2026. Provisions increased, especially in individuals and agribusiness, while guidance was revised upward for cost of risk and NII.
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The event highlighted a strategic shift to a diversified financial conglomerate, robust risk management in agribusiness, and a strong commitment to sustainability and digital transformation. Investments in technology, AI, and workforce development underpin long-term growth, with 2026 set as a year of consolidation and prudent expansion.
Fiscal Year 2025
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2025 saw strong results despite agribusiness defaults, with BRL 33.4B in results and 51.7% adjusted net profit growth. 2026 guidance targets 15%-26% profit growth, 0.5%-4.5% credit expansion, and continued efficiency, with risk in agribusiness managed through regulatory and portfolio actions.
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Management revised 2024 profit guidance to BRL 18–21 billion due to higher agribusiness provisions, with confidence in delivering around BRL 20 billion net profit. Capital ratios remain robust, and a 30% payout is planned for next year, while lower tax rates are expected to persist.
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Major strategic adjustments were made in response to agribusiness challenges, with enhanced risk management, digital transformation, and a focus on sustainable growth. Profitability is expected to recover from Q4 2025, supported by selective credit, capital discipline, and ESG leadership.
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Q2 adjusted net income fell 48% sequentially due to record agribusiness and MSME delinquency, prompting a downward revision of 2025 guidance. The bank is focusing on risk management, digital acceleration, and targeted growth in secure loan segments, with profitability expected to recover in 2026.
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Net income for Q1 2025 was BRL 7.4 billion with ROE of 16.7%, pressured by new accounting rules and agribusiness delinquencies. Guidance and provisions are under review, but loan growth and a 40% dividend payout are maintained, supported by strong capital and ongoing digital investments.
Fiscal Year 2024
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Adjusted net income rose 6.6% to BRL 37.9 billion in 2024, with strong loan growth and disciplined execution. Guidance for 2025 emphasizes sustainable credit expansion, robust capital, and cautious risk management, especially in agribusiness.
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Q3 2024 net income rose 8.3% year-over-year to BRL 9.5 billion, with a 13% loan portfolio expansion and strong growth in payroll, corporate, and agribusiness segments. Delinquency increased to 1.97%, mainly in soybeans, but coverage and capital remain robust.
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Net income rose 8.5% to BRL 18.8 billion, with strong NII and fee growth, improved cost ratios, and stable delinquency. Guidance was revised upward for NII, with robust capital and ROE expected to remain above 20%.