At Banco do Brasil, 2025 was a bad year and 2026 is not expected to be any different.

After navigating a turbulent 2025, marked by repeated revisions to projections and with agribusiness as the main culprit, Banco do Brasil (BB) released its year-end report on Wednesday evening, February 11th. And the results still leave a number of questions about how this story will unfold.

The bank ended the year with an adjusted net profit of R$ 20.6 billion, representing a 45.4% drop compared to the figure recorded in 2024 and the lowest number reported on the bottom line since 2020.

Between October and December, adjusted net profit was R$ 5.7 billion, a 40.1% drop compared to the same period in 2024. Conversely, the figure grew 51.7% compared to the third quarter of 2025 and came in above the projections compiled by Bloomberg , which were R$ 4.02 billion.

Return on equity (ROE) stood at 12.4% in the fourth quarter, compared to 20.8% a year earlier. And, for the consolidated period of 2025, the index was 11.4%, against 21.4% in 2024, resulting in the lowest profitability level among listed banks.

On another note, the gross financial margin fell 0.8% for the year, to R$ 103.1 billion, despite registering an expansion of 5.4% in the quarter, to R$ 27.8 billion. In 2025, the efficiency ratio – which measures a bank's cost to generate revenue – was 27.7%, compared to 25.6% in the previous year.

“This was the most challenging year in my 26-year history at Banco do Brasil,” stated Tarciana Medeiros , CEO of Banco do Brasil, in a call with analysts on the morning of Thursday, February 12th. “And 2026 will also be challenging. But within a challenge that we have already learned how to handle.”

A significant part of this challenge is that the total loan portfolio reached R$ 1.29 trillion in the year, an increase of 2.5%. For individuals, growth was 7.6%, reaching R$ 356.9 billion. For legal entities, the expansion was 0.6%, reaching R$ 455.1 billion. And in agribusiness, it increased by 2.1%, reaching R$ 406.1 billion.

Meanwhile, the consolidated delinquency rate above 90 days was 5.17%, compared to 4.51% in the third quarter of 2025 and 3.16% at the end of 2024. In the agribusiness portfolio, the level was 6.09%, which represented an increase of 125 basis points compared to the previous quarter.

On the other hand, the cost of credit registered a jump of 73.5% in 2025, to R$ 61.9 billion, reflecting an increase in credit risk throughout the year. Meanwhile, the provision for credit losses was R$ 66.3 billion, compared to R$ 37.3 billion in the second half of the year.

Following a wave of judicial reorganizations, the agribusiness segment, with significant exposure in the institution's loan portfolio, was precisely the most fertile ground for the challenges faced by the bank and the main culprit behind the results and revisions throughout the year.

To try and begin to reverse this scenario, one of the recent steps in this field was the launch, within the scope of Provisional Measure 1,314, of BB Regulariza Agro, an internal program to extend deadlines, strengthen guarantees, and renegotiate operations based on producers' ability to pay.

The bank highlighted that the program, launched at the end of October, has totaled R$ 35.5 billion in new loans, benefiting more than 21,000 clients with a total volume of 29,000 contracts originated until December 2025.

According to Gilson Bittencourt, vice president of agribusiness and family farming at BB, the renegotiations focused more on clients who were up-to-date with their payments and had installments due. With a focus on improving payment compliance in the coming quarters, the strategy was to give these producers more breathing room, allowing them to rebalance their payment capacity.

“And the most important point here is that, in many of these transactions, the guarantee was only the pledge of the harvest,” said the executive. “And now, 72.9% of the contracts already have a fiduciary assignment guarantee, which gives us greater security in terms of receiving payment and, later, if necessary, collecting it.”

This was also the approach adopted in other segments for credit origination. The bank highlighted, for example, that 63% of operations for micro and small businesses were anchored in guarantee funds.

“We will proceed with great discipline in the execution and strategic management of credit,” stated the CEO of BB. “And grow with quality, rebalancing the portfolio mix to seek profitability in increasingly secure lines, supported by a robust guarantee framework.”

In the individual customer segment, one of the highlighted lines of credit was the Workers' Credit program, in which the bank originated R$ 13 billion in 2025. "This is a business we know and know how to do. This disbursement came in a completely new portfolio and is a strong example of this approach," he added.

The executive also highlighted that another priority segment will be the high-income profile, with brands such as Estilo. She also emphasized the goal of growing more than 20% in the investment advisory plan.

Projections

The financial report, along with these and other priorities, was accompanied by the release of guidance for 2026. BB projects, for example, an adjusted net profit between R$ 22 billion and R$ 26 billion for the year, with an increase of 4% to 8% in gross financial margin.

In the loan portfolio, projected growth is between 0.5% and 4.5%. For individuals, the range is from 6% to 10%, while for legal entities, the range is from a 3% decrease to a 1% increase. And in agriculture, a 2% decrease to a 2% expansion.

In a report sent to clients, Itaú BBA highlighted that Banco do Brasil (BB) presented a weak set of trends in its projections for the year and pointed out that the visibility of the bank's recovery trajectory remains uncertain, reiterating its neutral recommendation and target price of R$ 22 for the stock.

"The resulting range of R$22 billion to R$26 billion for adjusted net income (ROE of approximately 12% at the midpoint) is slightly below market expectations and indicates a slow recovery. We are positioned at the lower end, with R$22 billion in profit," the bank wrote.

Similarly, analysts at BTG Pactual highlighted that, although the fourth quarter showed some progress, they continue to view the stabilization of Banco do Brasil's balance sheet as a gradual process, with residual uncertainties in credit trends, especially in agribusiness.

"That said, with the shares up about 15% year-to-date and trading at around 0.75x the last price-to-book value, the valuation would only be attractive in a scenario of faster ROE recovery, which is not our base case," the bank stated, with a neutral recommendation and a target price of R$ 25 for the stock.

After opening the day with gains of more than 5%, BB shares were up 2.49% around 12:30 pm, trading at R$ 25.53. The bank is valued at R$ 145.8 billion.