Banco do Brasil reported a net profit of R$ 20.7 billion for 2025, a 45% decrease compared to the previous year, primarily due to rising default rates and changes in accounting rules.
Banco do Brasil (BB) announced a net profit of R$ 20.7 billion for the year 2025, falling within the bank's own expectations of R$ 18 billion to R$ 21 billion. This figure marks a significant 45.4% decline compared to the 2024 profit. Initially, the bank had set forecasts for a more optimistic profit between R$ 37 billion and R$ 41 billion for 2025 but revised these expectations downward multiple times throughout the year, citing economic challenges.
The decline in profits has been attributed to several factors, including an increase in default rates, particularly within the agribusiness sector, which has seen its portfolio affected by rising non-performing loans. Additionally, new accounting regulations implemented during this period contributed to the changed financial landscape, prompting BB's executive president, Tarciana Medeiros, to indicate that 2025 would be a year of adjustments and recalibrations for the bank as it navigated these challenges.
In the fourth quarter alone, the bank recorded an adjusted net profit of R$ 5.7 billion, a 40.1% decline from the same quarter in 2024. However, compared to the previous quarter, this represents an increase of 51.7%, indicating some stabilization and recovery efforts may be taking hold as the bank seeks to adapt to the evolving economic environment in Brazil.
