Q1 2026 Banco Do Brasil SA Earnings Call (English, Portuguese) Transcript
Key Points
- Banco do Brasil SA BB Brasil (BDORY) reported a strong net interest income (NII) growth of nearly 15% year-on-year, driven by credit growth and diversification of funding sources.
- Fee income increased by 5.5%, with significant contributions from asset management, insurance, and consortium, reflecting synergy among the businesses within the conglomerate.
- The bank's loan portfolio reached BRL1.3 trillion, with a meaningful evolution towards lines with a better risk-return relationship, particularly in the individuals portfolio.
- Banco do Brasil SA BB Brasil (BDORY) maintained its leadership in public payroll loans and made consistent progress in lending to SMEs, with growth in lines backed by settlement guarantee funds.
- The bank has been proactive in addressing the worsening delinquency cycle by revisiting its credit underwriting framework and adopting new risk and collateral criteria.
- The bank's results for the first quarter were impacted by a worsening credit risk environment, with a cost of risk reaching nearly BRL19 billion.
- There are concerns about the geopolitical environment affecting the macroeconomic landscape, impacting households, debt servicing for companies, and agribusiness supply chains.
- The bank revised its guidance due to an increase in expected loss dynamics, with a higher terminal Selic rate estimate affecting clients and the risk environment.
- There is a noted increase in provisions, particularly in the individuals portfolio, due to contamination from agribusiness clients and higher expected losses in credit card lines.
- The bank faces challenges in maintaining capital levels, with discussions around potential measures to sustain capital at 11% amid lower profit generation and higher provisions.
Good morning. I am Janaina Storti, Head of Investor Relations at Banco do Brasil. Thank you for joining us for another Banco do Brasil earnings live stream. As usual, our event will be conducted in Portuguese with simultaneous translation into English. So you can choose between three audio options available, original, Portuguese or English.
Well, to speak about the numbers for the quarter, joining me today are our CFO, Geovanne Tobias; our CRO, Felipe Prince; and our VP of Agribusiness and Family Farming, Gilson Bittencourt.
And now to begin, I will turn the floor to Geovanne so that he can start with the initial remarks.
Thank you, Janaina. Good morning, ladies and gentlemen. Before we begin, I would like to let you know that our CEO, Tarciana, just had a back surgery. And so she's still being in recovery. And because of
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