Banco do Brasil (BBAS3) Q1 2026 earnings summary

Executive summary

• Adjusted net income for Q1 2026 was R$3.09–3.4 billion, down over 50% year-over-year, reflecting higher credit risk provisions and financial intermediation expenses.

• Net interest income rose 14.8% year-over-year to R$27.4 billion, driven by loan growth and treasury income.

• Fee income increased 5.5% year-over-year to R$8.8 billion, with contributions from asset management, insurance, and consortium.

• Loan portfolio expanded to R$1.3 trillion, with growth in individuals and agribusiness, but a decline in companies.

• Total assets reached R$2.61 trillion, up 7.6% year-over-year.

Financial highlights

• Cost of credit surged 85.8% year-over-year to R$18.9 billion, reflecting increased provisions for credit risk losses.

• CET1 capital ratio stood at 11.59% as of March 2026, with Basel ratio at 14.23%.

• NPL over 90 days at 5.05% for the total portfolio, with individuals at 6.01%, companies at 2.87%, and agribusiness at 2.76%.

• ROE dropped to 7.3% from 16.7% year-over-year; ROA fell to 0.5%.

• Administrative expenses rose 5.5% year-over-year to R$10.0 billion.

Outlook and guidance

• Loan portfolio growth guidance for 2026 remains at 0.5% to 4.5%, with 1.8% observed in Q1.

• Net interest income guidance revised to 7%–11% growth for 2026.

• Cost of credit guidance increased to R$65–70 billion for 2026.

• Management affirmed the bank's ability to continue as a going concern, with no material uncertainties identified.

• Monitoring regulatory changes, including sustainability and tax reforms, with compliance expected by 2027.