Q2 2026 Banco Do Brasil SA Earnings Call (English, Portuguese) Transcript
Key Points
- Earnings totaled BRL3.9 billion in Q2, up 13.9% quarter-over-quarter and 3.3% year-to-date.
- Net interest income grew to BRL27.5 billion, supported by a better credit mix and diversified funding sources.
- Fee income grew nearly 5%, driven by strong performance in AUM and consortium businesses.
- Loss recovery reached nearly BRL2 billion in the quarter, a 51.4% increase from Q1, with legal measures to recover BRL15.5 billion in 2026.
- CET1 ratio remained strong at 11.27%, with plans to maintain robust capital through organic and inorganic measures.
- Delinquency remained high, particularly in the agricultural segment, with expected credit loss provisions still a major drag on earnings.
- Credit card NPL (90 days) spiked to 14.6% in Q2, driven by a one-off effect from automatic installment payments and contamination from rural loans.
- The provisional measure 1,376, aimed at renegotiating agricultural loans, has not yet been executed, creating uncertainty and potential delays in improving asset quality.
- The adjustment in discount rate for post-employment benefits (Cassi) resulted in a significant one-off impact on equity, reducing the BIS ratio by 18 basis points.
- The bank faces challenges in achieving its guidance, with provisions expected at the higher end and earnings at the lower end, with a possible deviation of 5-6% in a worst-case scenario.
(spoken in foreign language) Now to CRO, Felipe Prince; and agribusiness and Family Agriculture VP, Gilson Bittencourt. Now to initiate our live session, I would like to turn the floor over to Tarciana, our CEO.
Good morning, everyone, and thank you very much for joining us for another earnings conference call.
Today's discussion builds on the transparency approach that has always guided us. We've been very candid about the magnitude of the challenge we are facing. And even more so about our prompts in diagnosing the situation, and we're responding to with significant changes designed to build a future of profitability and growth.
In recent days, as we prepared to release those results, I spoke a lot about clear direction, a term we use frequently where I'm from, and that really holds even greater significance at this moment. The challenges aren't overcome by taking shortcuts, but through clear direction and hard work. And for
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