Banco do Brasil (BBAS3) investor relations material

Strategic evolution, direction, and business model

• Emphasis on long-term sustainability and a shift to a diversified financial conglomerate, integrating over 80 companies across banking, insurance, capital markets, and payments.

• Focus on integrating physical and digital channels, maintaining a strong presence across Brazil, and delivering hyper-personalized, phygital service to 90 million clients.

• Major investments in technology, with BRL 19 billion invested in the last three years and over BRL 19 billion over the past decade, supporting digital transformation and operational efficiency.

• Strategic governance changes, including statutory coordination and leadership rotation, to accelerate critical areas and align with future challenges.

• Clear 2030 goals: expand mobile customer base to 46 million, WhatsApp users to 53 million, and prioritize sustainable results and transparency.

Financial performance and resilience

• Robust growth since 2022, with double-digit business expansion, a 30% increase in the expanded loan portfolio, and over R$33 billion in dividends distributed.

• Net interest income, fee income, and equity gains have risen steadily from 2014 to 2025, with ROE above 15% and strong adjusted net income.

• Conglomerate structure contributes to resilience, averaging 52% of net income and maintaining a top-tier cost-to-income ratio.

• Investments in technology and operational efficiency underpin sustained profitability and business expansion.

• Management prioritizes sustainable results, transparency, and engagement with market, regulators, and government.

Risk management and credit portfolio

• Faced unprecedented credit risk in agribusiness, with provisions rising from BRL 800 million to BRL 8 billion per quarter in 2025 due to climate, geopolitical, and market shocks.

• Implemented new resilience matrix, increased collateral requirements, and improved collection processes, with 96% of operations now backed by real estate collateral.

• Enhanced selectivity in credit origination and risk-adjusted return, especially in private payroll loans, targeting a 20% market share.

• Scheduled maturities for agribusiness loans are concentrated between April and September, focusing on working capital and crop financing.

• Management expects 2026 to mark a recovery in results growth, following concentrated adjustments in 2025.