Banco do Brasil (BBAS3) investor relations material

Executive summary

• Adjusted net income for 2Q26 was R$3.9 billion, up 13.9% quarter-over-quarter and 3.3% year-over-year, driven by higher net interest income and treasury results, despite high delinquency in agribusiness.

• Management focused on disciplined credit growth, risk mitigation, operational efficiency, digital transformation, and customer-centric strategies.

• Total assets reached R$2.58 trillion as of June 30, 2026, up from R$2.45 trillion at year-end 2025.

• The bank maintained strong liquidity and capital positions, with a CET1 ratio of 11.27% and a Capital Adequacy Ratio of 13.91%.

Financial highlights

• Net interest income reached R$27.5 billion in 2Q26, up 0.2% sequentially and 12.1% year-over-year for 1H26.

• Fee income totaled R$9.1 billion in 2Q26, up 4.2% year-over-year and 3.4% sequentially; 1H26 fee income grew 4.9%.

• Cost of credit was R$18.5 billion in 2Q26, up 16.1% year-over-year but down 2.1% sequentially.

• Expanded loan portfolio reached R$1.31 trillion at June 2026, up 1.5% year-over-year.

• Administrative expenses were R$10.1 billion in 2Q26, up 0.6% sequentially and 4.8% year-over-year for 1H26.

Outlook and guidance

• Management expects cost of risk to converge toward guidance as loan renegotiations under Provisional Measure 1376 progress.

• 2026 guidance: loan portfolio growth 0.5–4.5%, net interest income 7–11% growth, fee income 2–6% growth, administrative expenses 5–9% growth, adjusted net income R$18–22 billion.

• Guidance maintained for the year, with profit expected at the lower end and provisions at the higher end of the range.

• Fourth quarter is expected to reflect the main impact of restructuring measures.

• No anticipated capital constraints through 2027, with ongoing adjustments to preserve capital adequacy.