Banco do Brasil has reported a rise in delinquency rates following a significant default, causing investors to view the institution with increased caution despite its profitable year.
At the end of 2025, Banco do Brasil announced a net profit of R$ 20.7 billion; however, the financial institution has come under increased scrutiny from the market due to a surge in delinquency rates. This concern was amplified by the revelation of a R$ 3.6 billion default in its fourth-quarter financial report, attributed to a single client. The issue arose when the operation with this customer fell into arrears in late 2025 during a negotiation period but was resolved by January 2026 and subsequently transferred to third parties. Nevertheless, this incident has highlighted a more pervasive problem regarding the rising number of loan payment delays amid Brazil's high-interest environment.
