Banco do Brasil reported an adjusted net profit of R$3.4 billion for the first quarter of 2026 on Wednesday. The result marks a 54% drop from the same period last year and came in below market forecasts. Rising defaults in agribusiness drove higher provisions and prompted the bank to lower its full-year profit guidance.
Defaults in the agribusiness segment reached 6.22% of the loan book, up 3.5 percentage points over 12 months. The overall 90-day delinquency rate for the credit portfolio rose to 5.05%. Provisions for expected losses totaled R$16.8 billion, a 46% increase from a year earlier.
The bank lowered its 2026 profit outlook to a range of R$18 billion to R$22 billion. It had previously targeted R$22 billion to R$26 billion. Return on equity fell to 7.3%.
CEO Tarciana Medeiros said the bank doubled the number of lawsuits filed in the first months of 2026 compared with all of last year. Steps such as revised collection processes and stronger guarantees were taken to tackle the rural default cycle.