Banco do Brasil Profit Sinks 60% as It Cuts 2025 Outlook, Rivals Show Resilience

Overview

• Banco do Brasil reported adjusted net income of R$3.785 billion in the third quarter, a 60.2% year-on-year decline that came in slightly above analyst estimates.
• The bank trimmed its 2025 profit guidance to R$18–21 billion and raised expected credit costs to R$59–62 billion.
• Loan-loss provisions climbed to R$17.9 billion, up 78% from a year earlier, as 90‑day delinquency rose to 4.93% and agribusiness arrears reached 5.34%, with additional pressure from credit cards.
• Implementation of CMN accounting rules that require cash recognition on stage‑3 loans led the bank to forgo about R$1 billion in interest revenue.
• Sector performance varied: PagBank posted recurring profit of R$571 million with net revenue of R$3.4 billion, while Daycoval delivered a record R$474.3 million profit with stronger margins and a U.S. agency application.