BB’s Profit Drops 60% Due to Credit Slowdown and Increase in Default Rates

The Banco do Brasil (BB) confirmed analysts’ fears by reporting a succession of bad news in its second-quarter balance sheet. Adjusted profit dropped by 60.2% year-on-year, credit growth slowed down, default rates increased—particularly in the agricultural sector—and profitability halved. As a result, the bank lowered its earnings projection for this year by 41%, to R$23 billion at the midpoint of the estimated range. Additionally, BB revised the dividends to be paid in 2025, cutting the portion of profit to be distributed from 40% to 30%.