Banco do Brasil Profit Falls 66.5% in Third Quarter

BRAZIL MARKETS · COMPANY NEWS

Banco do Brasil, the state-controlled lender at the heart of Brazil’s farm-driven economy, earned a fraction of what analysts expected. It also halved its profit goal for the year.

Brazil’s farmers are struggling to repay their loans, and on Wednesday evening, 11 November 2026, their main state lender passed the bill to shareholders. Banco do Brasil reported adjusted net profit (profit without one-off items) of R$1.3 billion (about US$0.23 billion) for the third quarter, down 66.5% from a year earlier.

That is one third of the R$3.9 billion (about US$0.70 billion) it earned in the second quarter. Consensus forecasts were above R$3 billion, and even BTG Pactual, a Brazilian investment bank, had forecast R$1.9 billion (about US$0.34 billion).

A Quarter That Missed Even the Gloomy Forecasts

Over nine months the bank has earned R$8.6 billion (about US$1.5 billion). The first quarter brought R$3.4 billion (about US$0.61 billion).

Return on equity, which measures profit against shareholders’ money, fell to 2.8%. Fee income rose 4.6% from a year earlier to R$9.3 billion (about US$1.7 billion), while running costs grew slightly faster, by 4.8%, to R$10.3 billion (about US$1.8 billion).

Why Farm Loans Are Hurting

The bank set aside R$21.2 billion (about US$3.8 billion) for bad loans in the quarter, up 18.4% from a year earlier. Provisions are money a bank reserves for loans that may not be repaid.

Loans overdue by 90 days or more reached 6.08% of the loan book at the end of September, up 1.57 percentage points in a year. In farm lending, the weak spot, it was 6.92%.

As a result its loan book shrank 0.5% in the quarter to R$1.3 trillion (about US$233 billion), and farm loans fell 4.3%.

What the Lower Profit Goal Implies

The bank now guides for 2026 profit of R$9 billion–R$11 billion (about US$1.6 billion–US$2.0 billion). Guidance is a company’s own forecast range, and this one replaces the R$18 billion–R$22 billion set in May.

With R$8.6 billion already earned, the new range implies a fourth-quarter profit of roughly R$0.4 billion to R$2.4 billion (about US$0.07 billion to US$0.43 billion). The low end would be below this quarter’s result, while anything above R$2.4 billion would show the new range was too cautious.

Next test: management’s presentation to investors on Thursday 12 November would confirm or soften the new range.

BBAS3, the bank’s ticker on São Paulo’s B3 exchange, closed Wednesday at R$16.89 (about US$3.03), down 1.2%, before the results appeared. The market’s verdict comes when trading reopens on Thursday 12 November.

What It Means for US Readers

The losers are holders of BBAS3 shares and a state owner that depends on the bank’s earnings. Investors who hold Brazil through funds should check whether Banco do Brasil sits in them.

Private rivals show the pain is concentrated in farm credit. Itaú Unibanco, a large private bank, reported recurring profit of R$12.6 billion (about US$2.3 billion), and rival Bradesco reported net profit of R$7.1 billion (about US$1.3 billion).

Our guide to the Brazilian stock market explains how these shares fit into the index.

What Is Not Known

The market has not yet reacted, and management has not yet explained the numbers. Our earnings preview listed the questions it will face on Thursday 12 November.

Conversions use R$5.58 per US$ (market data provider RT, 11 November 2026).

Frequently Asked Questions

How much did Banco do Brasil earn in the third quarter of 2026?

Adjusted net profit was R$1.3 billion (about US$0.23 billion), down 66.5% from a year earlier. In the second quarter it was R$3.9 billion (about US$0.70 billion).

What is the bank’s new profit goal for 2026?

It now expects R$9 billion to R$11 billion (about US$1.6 billion to US$2.0 billion), down from R$18 billion to R$22 billion.

Sources: Banco do Brasil, third-quarter 2026 results release (11 November 2026); B3 (the São Paulo stock exchange) trading data; RT market data (11 November 2026).