# Banco do Brasil Profit Plummets Amidst Surging Agribusiness and Credit Defaults Rising loan defaults force Banco do Brasil to slash annual profit projections by half. - **Source:** [Agência Brasil](https://agenciabrasil.ebc.com.br) - **Published:** 2026-11-12 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/99d4adf2-2857-4597-b9fc-54eb76b3aa7e ## Sharp Profit Decline Banco do Brasil reported an adjusted net profit of R$ 1.27 billion for the third quarter of 2026. This figure represents a significant 66.5% drop compared to the same period in 2025. Consequently, the institution halved its annual profit guidance, now projecting between R$ 9 billion and R$ 11 billion for 2026. ## Agribusiness Sector Strain The primary driver behind the profit slump is rising delinquency within the agribusiness portfolio. Defaults are concentrated among medium and large-scale producers of soy, corn, and livestock, particularly in the Center-West region. The agribusiness default rate reached 6.92% in September, a sharp increase from the 4.84% recorded one year prior. ## Credit Card Delinquency Spike Individual credit lines show severe stress, with credit card defaults hitting 16.35% by September 2026. This is a dramatic rise from 8.89% in September 2025. While credit card balances grew 7.2% over twelve months to R$ 68.46 billion, the rapid escalation in late payments forced the bank to increase its credit loss provisions. ## Rising Credit Costs Total expenses related to credit costs, which include provisions for potential defaults and debt renegotiations, surged to R$ 21.2 billion in the third quarter. This represents an 18.4% increase compared to the same period in 2025. The bank raised its annual cost of credit projection to between R$ 80 billion and R$ 83 billion. ## Portfolio Performance Metrics The overall default rate for loans overdue by more than 90 days reached 6.08% in September, compared to 4.51% a year earlier. While agribusiness and individual segments struggle, corporate lending defaults remain lower at 3.44%. The expanded credit portfolio reached R$ 1.3 trillion, showing a modest 2.2% growth over the last twelve months. ## Capital Adequacy Ratios The Basel Index, which measures a bank's ability to absorb financial losses, fell to 13.45% in September from 14.81% a year ago. Similarly, the core capital index dropped to 10.80% from 11.16%. These metrics indicate a reduced buffer against potential financial instability as the bank navigates a challenging credit environment throughout 2026. ## Dividend Policy Changes Due to the financial downturn, the bank will limit dividend distributions to the mandatory 25% minimum for 2026. Interest on equity payments for the third quarter totaled R$ 197 million, a 52% reduction from the previous year. Furthermore, the bank suspended intermediate dividend announcements, deferring remaining payments until February 2027 to preserve capital. ## Future Financial Outlook Banco do Brasil has revised its credit portfolio growth expectations from a previous expansion of up to 4.5% to a range between stability and a 2% contraction. With return on equity falling to 2.8%, the institution is prioritizing capital preservation over growth to manage the ongoing volatility in its loan portfolio. ## Sources covering this story - [Agência Brasil — Banco do Brasil Profit Plummets 66.5% Amid Rising Agribusiness Defaults](https://agenciabrasil.ebc.com.br/economia/noticia/2026-11/lucro-do-bb-cai-665-no-3o-trimestre-com-inadimplencia-do-agro) - [Poder360 — Banco do Brasil Credit Card Default Rate Hits 16.35 Percent](https://www.poder360.com.br/poder-economia/inadimplencia-de-cartao-de-credito-no-bb-atinge-1635-no-3o-trimestre/) --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._