BB Chairman: "Most Severe Cycle in History" for Agriculture
The BB chairman points to an unprecedented agricultural default crisis and states that more selective credit granting criteria will be adopted.
TL;DR
- Banco do Brasil's adjusted net profit fell by 65.6% to R$ 1.3 billion in Q3 2026 compared to the same period last year.
- The profit drop is attributed to the "most severe cycle of credit cost in agriculture in history," marked by increased defaults.
- Defaults are concentrated among medium and large clients in the soy, corn, and livestock sectors, mainly in the Center-West.
- Despite default issues, 90% of the bank's rural producers continue to meet their obligations.
- The bank is intensifying collection efforts, including legal action and asset recovery, for non-paying clients.
- Banco do Brasil plans to adopt more selective lending criteria and seek greater collateral for agricultural loans.
- The bank reduced dividend payouts to the minimum mandatory 25% due to financial preservation priorities.
- The management's priority is the bank's financial sustainability, even if it requires difficult short-term decisions.