Banco do Brasil reported adjusted net income of R$3.431 billion for the first quarter of 2026, down 53.5% from R$7.374 billion a year earlier and 40.2% lower than in the fourth quarter. The state-controlled lender published the results after the market close on 13 May.
Adjusted return on equity fell to 7.3%, 9.4 percentage points lower than a year earlier, as credit costs continued to climb, led by the agribusiness book.
CREDIT COSTS DRIVE THE DECLINE
The cost of credit reached R$18.9 billion in the quarter, up 85.8% year on year. The 90-day non-performing loan ratio rose to 5.05%, 1.42 percentage points higher than a year earlier. The agribusiness portfolio stood at R$418.4 billion, up 3.0%, and loans renegotiated under the bank’s BB Regulariza Agro programme reached R$37.9 billion.
The expanded loan portfolio totalled R$1.306 trillion, up 2.2% year on year and 0.7% on the quarter. Gross net interest income rose 14.8% year on year to R$27.4 billion, though it fell 1.3% from the fourth quarter.
2026 GUIDANCE REVISED
The bank lowered its 2026 adjusted net income guidance to R$18–22 billion from R$22–26 billion and raised its expected cost of credit to R$65–70 billion from R$53–58 billion. It lifted its gross net interest income growth forecast to 11–15% from 4–8%, and left loan, fee and expense guidance unchanged. Banco do Brasil said the revision reflected a reassessment of agribusiness risk, geopolitical uncertainty and the macroeconomic outlook.
Sources: Banco do Brasil Investor Relations, 1Q26 earnings summary, 13 May 2026; InfoMoney, 13 May 2026; Agência Brasil, 13 May 2026.
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