Banco do Brasil (BBAS3) Q3 2025 earnings summary

Executive summary

• Management emphasized resilience amid regulatory changes, with a positive outlook for 2025 and structured solutions for credit risk, especially in agribusiness.

• Adjusted Net Income for 9M25 was R$14.9 billion, down 47.2% year-over-year; 3Q25 was R$3.8 billion, flat sequentially.

• Net income for the nine months ended Sep 30, 2025, was R$12.8 billion (consolidated), with earnings per share of R$2.26.

• The bank maintained strong liquidity and capital positions, with a capital adequacy ratio of 14.81%.

• Expanded loan portfolio grew 7.5% year-over-year to R$1,294.3 billion as of Sep/25.

Financial highlights

• Net profit guidance for 2024 was revised to BRL 18–21 billion due to higher provisions, especially in agribusiness.

• Net Interest Income for 9M25 was R$75.3 billion, a 2.4% decrease year-over-year.

• Fee income for 9M25 was R$26.0 billion, down 1.2% year-over-year; administrative expenses increased 5.4% to R$29.0 billion.

• Cost of credit rose sharply, up 66.4% year-over-year to R$44.0 billion for 9M25.

• Return on Equity (ROE) for 9M25 was 11.2%, down from 21.5% in 9M24.

Outlook and guidance

• Loan portfolio growth guidance for 2025 is 3.0%–6.0%; 9M25 achieved 7.3%.

• Net interest income guidance for 2025 is R$102.0–105.0 billion.

• Adjusted net income guidance for 2025 is R$18–21 billion; 9M25 at R$14.9 billion.

• Management expects an inflection in agribusiness delinquencies by Q1 2026, with lower provisions anticipated for 2026.

• Lower tax rates are expected to persist due to high provisions and deferred tax assets.