Banco do Brasil (BBAS3) Q4 2025 earnings summary

Executive summary

• Adjusted net income for 2025 was R$20.7 billion, down 45.4% year-over-year, but 4Q25 saw a 51.7% sequential increase to R$5.7 billion.

• Distributed R$33.4 billion in dividends and IOC from 2023 to 2025, reflecting a strong commitment to shareholder returns.

• Achieved a 30% expansion in both the loan portfolio and margin with clients from 2023 to 2025.

• Maintained high customer satisfaction, with a historical record NPS in 2025 and 14 consecutive quarters as the top bank in Central Bank complaints ranking.

• Total assets grew to R$2.45 trillion, and shareholders' equity increased to R$192.1 billion at year-end.

Financial highlights

• Net interest income for 2025 was R$103.1 billion, up 5.4% quarter-over-quarter in 4Q25, but down 0.8% year-over-year.

• ROE for 2025 was 11.4%, down from 21.4% in 2024; 4Q25 ROE was 12.4%.

• Administrative expenses grew 5.1% year-over-year in 2025, closing at the lower end of guidance.

• Cost of credit rose to R$61.9 billion in 2025, up 73.5% year-over-year, with expenses/loan portfolio at 5.35%.

• CET1 ratio stood at 12.23% and capital adequacy ratio at 15.13% at year-end 2025.

Outlook and guidance

• 2026 guidance: loan portfolio growth between 0.5% and 4.5%, net interest income up 4% to 8%, cost of credit between R$53 and R$58 billion, and adjusted net income between R$22 and R$26 billion.

• Individual loans expected to grow 6% to 10%, companies -3% to 1%, agribusiness -2% to 2%, and sustainable portfolio 2% to 6% in 2026.

• Administrative expenses projected to grow 5%-9% in 2026.

• Focus on disciplined execution, digital transformation, and sustainability as value drivers.

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