Banco do Brasil reported a significant financial loss on Wednesday, revealing that a company in the wholesale sector defaulted on a staggering R$ 3.6 billion during the fourth quarter of 2025. This particular case has notably contributed to an increase in the bank's delinquency rate, which now stands at 5.17%, up from 4.51% in the previous quarter and 3.16% one year prior. The bank clarified that if this default were excluded from calculations, the delinquency rate would be slightly lower at 4.88%.

The delinquency rate reflects the proportion of credit operations that are overdue and serves as a critical indicator of the bank's credit portfolio health. It signifies potential risks of loss and the bank's ability to recover lent funds. The increase in delinquency indicates growing concerns regarding the financial stability of borrowers in the Brazilian economy, particularly within the wholesale sector.

In its financial report, Banco do Brasil linked the rise in delinquency to a specific case within its portfolio of securities and did not disclose the identity of the defaulting company. This development raises questions about the overall credit risk management within the bank and highlights the vulnerability of certain sectors amidst economic fluctuations.