Banco do Brasil (BBAS3) Q3 2026 earnings summary

Executive summary

• Adjusted net income was R$1.3bn in Q3 and R$8.6bn for 9M26, as higher credit costs—driven mainly by agribusiness delinquencies—weighed on results.

• Focus remained on restoring profitability through better risk-return lending, portfolio-quality management, renegotiations and recoveries.

Financial highlights

• 9M26 net interest income rose 7.4% YoY to R$80.9bn; Q3 was R$26.0bn, down 1.5% YoY and 5.5% QoQ.

• Fee income reached R$27.2bn for 9M26, up 4.8%; Q3 was R$9.3bn, up 4.6% YoY and 1.6% QoQ.

• Cost of credit was R$21.2bn in Q3, up 18.4% YoY and 14.9% QoQ; 9M26 reached R$58.6bn, up 33.2%.

• Administrative expenses rose 4.8% to R$30.4bn in 9M26; Q3 expenses were R$10.3bn, up 4.8% YoY.

• 9M consolidated attributable earnings were R$7.48bn; consolidated net income was R$10.07bn, while credit-loss allowances reached R$59.13bn.

Outlook and guidance

• 2026 adjusted net income guidance was revised to R$9bn–R$11bn; cost-of-credit guidance rose to R$80bn–R$83bn.

• 2026 loan portfolio growth guidance was cut to -2.0% to 0.0%; revised ranges: individuals 0.0%–2.0%, companies -4.0% to -2.0%, agribusiness -3.0% to -1.0%.

• Net interest income growth guidance was revised to 2.5%–4.5%; fee income growth remained 2%–6% and administrative expense growth 5%–9%.

• Sustainable portfolio growth guidance remained 2%–6%, versus 9M26 growth of 8.2%.

• CET1 target is 10.5% by year-end 2027; Q4 2026 and Q1 2027 are expected to remain challenging as past-due loans migrate to Stage 3.