Pressured by new accounting rules and increased default, Banco do Brasil’s profit (BB) fell in the first half. From January to June, the financial institution was adjusted net income of R $ 11.2 billion, a 40.7% drop over the same period last yearaccording to balance released on the night of Thursday (14) by the institution.
In the second quarter, from April to June, the BB profited R $ 3.8 billion, a 60% decrease over the same period of 2024. In a statement, BB said it is going through a moment of adjustment to expand later.
“The year 2025 is adjusting to accelerate growth. We projected profit between R $ 21 and R $ 25 billion and continued with structuring investments for wealth generation to our shareholders, offering the best experience and solutions that are best suited to our customers. This goes through the relationship based on proximity, the intensive use of technology and permanent training of our employees,” said BB President Tarciana Medeiros.
If the 2025 profit is in the maximum projection of R $ 25 billion, the amount will be lower than the record profit of R $ 37.9 billion obtained in 2024.
In January, a National Monetary Council Resolution (CMN) which changed the accounting of financial institutions and interfered with the result. Approved in 2021, the new rules only came into force this year.
The resolution changes the provisions model (financial reserves to cover possible defaults) for expected loss based on estimates. This has affected the way some expenses and revenues are recognized.
From the new rules, the recognition of interest rates on operations considered stage 3 (with delays over 90 days) by the cash regime made the bank no longer recognize R $ 1 billion in credit revenues. The cash regime only allows the recognition of revenues when the money effectively enters the financial institution’s cash.
Default
THE Default Indexwhich considers delays of over 90 days, rose to 4.21% in the second quarteragainst 3.86% in the first quarter of 2024 and 3% in the second quarter of last year. The result is influenced mainly by agribusinesssegment where the bank leads in the granting of credit.
Projections review
With the drop in profit, BB revised projections to 2025. The new numbers are as follows:
- Credit portfolio growth: 3% to 6%, against a previous estimate of 5.5% to 9.5%;
- Gross financial margin: R $ 102 billion to R $ 105 billion; In May, the projection had not been disclosed;
- Cost of credit (expected losses with default and other risks): R $ 53 billion to R $ 56 billion; In May, the projection had not been disclosed;
- Adjusted net profit: R $ 21 billion to R $ 25 billion; In May, the projection had not been disclosed;
- Services Revenues: Projection maintained between R $ 34.5 billion and R $ 36.5 billion;
- Administrative Expenses: Projection maintained between R $ 38.5 billion and R $ 40 billion.
Credit growth
Despite the drop in profit, BB lent more in the second quarter. The expanded credit portfolio ended June at R $ 1.3 trillion, up 1.3% in the quarter and 11.2% in 12 months.
In distribution by credit segments, the results were as follows:
- Individuals: R $ 342.6 billion at the end of June, up 2% in the quarter and 8% in one year, especially the new CLT payroll loans, intended for private initiative workers.
- Legal Entity: R $ 468 billion, up 1.8% in the quarter and 14.7% in one year. Of this total, R $ 271 billion is for large companies and R $ 75 billion for government customers.
- Agribusiness: R $ 404.9 billion, high 8% in one year, especially the costs of costing and investment. In the nine months of Plan Safra 2024/2025, Banco do Brasil disbursed R $ 225.8 billion in credit to the segment and intends to lend R $ 230 billion to the Safra 2025/2026 plan
- Sustainable credit portfolio: R $ 396.5 billion, financing activities that generate positive social and environmental impacts, up 10.6% in 12 months.
Revenues and expenses
Services revenues totaled R $ 8.8 billion in the second quarter. The value represents a 4.7% increase over the previous quarter, but a 1% drop from June last year.
Administrative expenses totaled R $ 9.7 billion in the second quarterup 1.9% compared to the first quarter and 4.7% compared to June 2024. BB justified the elevation based on hiring servers approved in the last public tender and the increase in salaries of 4.6% granted in September last year.
Dividends
Because of the drop in profits, Banco do Brasil reduced from 40% to 30% the share of the profit distributed to shareholders. In July, the Bimonthly Revenue and Expenses Report, a document that guides the execution of the budget, reduced the projection of state dividends to 2025 from R $ 43.4 billion to R $ 41.9 billion. At the time, the Secretary of the National Treasury, Rogério Ceron, said that the fall was due to the reduction of dividends paid by Banco do Brasil to the government, the bank’s largest shareholder.
