Banco do Brasil points to producers' refusal to renegotiate agribusiness debts
Institution renegotiated R$ 13.4 billion in debts, but only 15% of defaulting clients adhered to the offered conditions
TL;DR
- A significant number of defaulting medium and large rural producers are refusing to pay debts, renegotiate loans, or provide collateral to Banco do Brasil.
- This 'moral hazard' behavior has negatively impacted the bank's agribusiness portfolio, leading to an increase in non-performing loans.
- Banco do Brasil's adjusted net profit for Q3 2026 fell by 66.5% year-on-year due to these issues.
- The default rate for agribusiness loans over 90 days increased from 4.84% in September 2025 to 6.92% in September 2026.
- The bank has revised its 2026 adjusted net profit projection downwards from R$18-22 billion to R$9-11 billion.
- Banco do Brasil will proceed with collection measures against clients who refuse to negotiate or pay.