Banco do Brasil S.A. ( (BDORY) ) has released its Q2 earnings. Here is a breakdown of the information Banco do Brasil S.A. presented to its investors.
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Banco do Brasil S.A. is a prominent financial institution in Brazil, primarily operating in the banking sector, offering a wide range of financial services including personal and corporate banking, agribusiness financing, and asset management.
In its latest earnings report, Banco do Brasil S.A. reported an adjusted net income of R$11.2 billion for the first half of 2025, with a return on equity (ROE) of 12.6% year-to-date. The report highlights the impact of new accounting regulations that have affected the comparability of financial results with previous quarters.
Key financial metrics indicate a mixed performance. The net interest income (NII) for the first half of 2025 was R$48.9 billion, a 4.6% decrease compared to the same period last year, primarily due to rising funding costs. However, financial revenues from credit operations grew by 26.5%, driven by an expanding credit portfolio. The cost of credit increased significantly, reaching R$26.1 billion, influenced by challenges in the agribusiness sector. Fee income remained stable at R$17.1 billion, while administrative expenses rose by 5.8% year-to-date.
The expanded loan portfolio showed growth, with a 11.2% year-over-year increase, reaching R$1,294.3 billion. The individual and company segments experienced notable growth, while the agribusiness portfolio faced challenges with a delinquency rate of 3.49%. The bank’s CET1 ratio stood at 10.97%, reflecting a strong balance sheet.
Looking ahead, Banco do Brasil S.A. remains focused on navigating the evolving regulatory landscape and managing credit risks, with a cautious outlook on financial performance amidst market uncertainties.