Banco do Brasil Profit Drops 66.5% and Shares Fall
The institution faces the toughest cycle in its history due to higher agribusiness provisions.
Banco do Brasil reported an adjusted net profit of 1.27 billion Brazilian reais for the third quarter of 2026. This figure represents a 66.5% decline compared to its previous performance. The result was impacted by rising expenses related to provisions for rural credit losses.
Common shares of the institution suffered a sharp decline during Thursday's trading session. The stock fell more than 11% shortly after the market opened. CEO Tarciana Medeiros described the current period as the most severe cycle in the bank's history.
The default scenario is concentrated among medium and large-scale clients in the soy and corn sectors. Most of these producers operate in the Center-West region. The executive states that 85% of these clients only began showing payment delays starting in 2024.
Bank management emphasized that it has taken measures to contain risks. These actions include revising the collateral model and reformulating collection processes. The bank maintains its commitment to rural producers who have a history of timely payments.
The institution argues that its business diversification serves as a competitive advantage. The goal is to reduce pressure on financial results during periods of instability in the agricultural sector. The bank has already disbursed more than 24.5 billion Brazilian reais for the current harvest.
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