Banco do Brasil ADR Aktienkurs
Vergleich mit Peer Group
📊 Peer Group
📈 Was ist das?
Die Peer Group sind die Unternehmen mit dem ähnlichsten Geschäftsmodell. Sie dienen als Vergleichsmaßstab, um eine Aktie einzuordnen.
🧮 Wie wird sie ausgewählt?
Nach Ähnlichkeit des Geschäftsmodells, also Unternehmen aus derselben Branche, mit vergleichbaren Produkten und einer ähnlichen Kundengruppe. Nur so vergleichst du Äpfel mit Äpfeln.
🏛️ Wofür ist sie wichtig?
Ob eine Aktie günstig oder teuer ist, lässt sich am ehesten im Vergleich beurteilen. Ein KGV von 18 oder ein EV/FCF von 20 wirkt je nach Maßstab günstig oder teuer. Die Peer Group liefert dabei den treffsichersten Maßstab: Unternehmen mit ähnlichem Geschäftsmodell, die denselben Bedingungen unterliegen.
🎯 Was bedeutet das für Anleger?
Liegt eine Kennzahl unter dem Peer-Durchschnitt, ist die Aktie relativ günstiger bewertet, über dem Durchschnitt entsprechend teurer. Ein Abschlag zur Peer Group kann eine Chance sein, aber auch einen Grund haben (zum Beispiel geringeres Wachstum). Der Vergleich ist ein Startpunkt, kein Urteil.
Ist Banco do Brasil ADR eine Topscorer-Aktie nach der Dividenden-, High-Growth-Investing- oder Levermann-Strategie?
Als kostenloser aktien.guide Basis-Nutzer kannst Du die Scores zu allen 9.127 weltweiten Aktien einsehen.
aktien.guide Premium
aktien.guide Unlimited
Kennzahlen
📘 Marktkapitalisierung
📈 Was ist das?
Die Marktkapitalisierung zeigt, wie viel ein Unternehmen laut Börse aktuell wert ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie hilft Unternehmen in Größenklassen (Large, Mid, Small Cap) einzuordnen und gibt Hinweise auf Marktmacht und Stabilität.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Große Unternehmen gelten als stabiler, zahlen oft Dividenden, wachsen aber langsamer.
- Kleine Firmen können stärker wachsen, sind aber schwankungsanfälliger.
- Die Marktkapitalisierung ist ein guter Indikator für Unternehmensgröße, aber kein Maß für Unter- oder Überbewertung.
📘 Enterprise Value (Unternehmenswert)
📈 Was ist das?
Der Enterprise Value (EV) zeigt, was ein Unternehmen tatsächlich kostet, wenn man es komplett übernehmen würde – inklusive Schulden und abzüglich Cash.
🧮 Wie wird es berechnet?
(= Marktkapitalisierung + Nettoverschuldung)
🏛️ Wofür ist es wichtig?
Der EV ist eine realistischere Bewertungsbasis als die Marktkapitalisierung, da er die Kapitalstruktur berücksichtigt. Er ist Grundlage für Kennzahlen wie EV/FCF oder EV/Sales.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Der Enterprise Value zeigt, was ein Unternehmen tatsächlich wert ist – unabhängig davon, wie es finanziert ist.
- Er ist besonders wichtig für professionelle Investoren, da er eine objektivere Grundlage für Bewertungsvergleiche bietet als die Marktkapitalisierung allein.
- Ein Unternehmen mit hoher Verschuldung erscheint im EV teurer, eines mit viel Cash günstiger – auch wenn sie an der Börse gleich viel wert sind.
📘 Nettoverschuldung
📈 Was ist das?
Die Nettoverschuldung zeigt, wie viele Schulden nach Abzug des verfügbaren Cashs tatsächlich verbleiben.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie zeigt, wie stark ein Unternehmen von Fremdkapital abhängig ist – und wie gut es in der Lage ist, seine Schulden kurzfristig zu bedienen.
🎯 Was bedeutet das für Anleger?
- Eine niedrige oder negative Nettoverschuldung bedeutet hohe finanzielle Stabilität.
- Unternehmen mit viel Cash und geringer Verschuldung sind besser gerüstet für Krisen.
- Eine hohe Nettoverschuldung erhöht das Risiko – besonders bei steigenden Zinsen oder konjunkturellen Schwächen.
📘 Cash
📈 Was ist das?
Der Cashbestand zeigt, wie viele liquide Mittel einem Unternehmen sofort zur Verfügung stehen.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Er gibt Auskunft über die finanzielle Flexibilität: Ein hoher Cashbestand ermöglicht Investitionen, Rückkäufe oder Krisenresistenz.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Cashbestand zeigt finanzielle Stärke und Handlungsspielraum.
- Cash kann für Investitionen, Schuldentilgung oder Aktienrückkäufe genutzt werden.
- Allerdings: Zu viel ungenutztes Kapital kann auch auf mangelnde Investitionsideen hinweisen.
📘 Anzahl ausstehender Aktien
📈 Was ist das?
Die Anzahl ausstehender Aktien gibt an, wie viele Aktien eines Unternehmens aktuell im Umlauf sind und von Investoren gehalten werden.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie ist die Grundlage für viele Kennzahlen wie Gewinn je Aktie (EPS), Marktkapitalisierung oder KGV.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Je weniger Aktien im Umlauf sind, desto höher fällt z. B. der Gewinn je Aktie aus – wichtig für Bewertung und Dividendenrendite.
- Aktienrückkäufe verringern die Anzahl ausstehender Aktien – und steigern den Wert je Aktie.
- Kapitalerhöhungen haben den gegenteiligen Effekt: mehr Aktien → Verwässerung der bestehenden Anteile.
📘 Kurs-Gewinn-Verhältnis (KGV)
📈 Was ist das?
Das KGV zeigt, wie oft der Gewinn pro Aktie im aktuellen Aktienkurs enthalten ist – also wie „teuer“ eine Aktie im Verhältnis zum Gewinn ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KGV gehört zu den bekanntesten Bewertungskennzahlen. Es hilft Anlegern einzuschätzen, ob eine Aktie im Vergleich zu ihrem Gewinn eher günstig oder teuer erscheint.
🧮 Berechnung
📊 KGV (TTM) = bezogen auf den Gewinn der letzten 12 Monate (Trailing Twelve Months):🎯 Was bedeutet das für Anleger?
- Ein niedriges KGV kann auf eine günstige Bewertung hindeuten – oder auf Probleme im Geschäftsmodell.
- Ein hohes KGV kann Wachstumserwartungen widerspiegeln – oder eine überbewertete Aktie.
📘 Kurs-Umsatz-Verhältnis (KUV)
📈 Was ist das?
Das KUV zeigt, wie viel Anleger für 1 € Umsatz eines Unternehmens zahlen – unabhängig vom Gewinn.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KUV ist besonders bei wachstumsstarken oder noch nicht profitablen Unternehmen hilfreich. Es zeigt, wie hoch der Umsatz an der Börse bewertet wird.
🧮 Berechnung
Marktkapitalisierung = 23,77 Mrd. $ | Umsatz (TTM) = 32,18 Mrd. $
Marktkapitalisierung = 23,77 Mrd. $ | Umsatz erwartet = 30,89 Mrd. $
🎯 Was bedeutet das für Anleger?
- Ein niedriges KUV kann auf Unterbewertung hindeuten – oder auf schwache Margen.
- Ein hohes KUV kann hohe Erwartungen widerspiegeln – oder übermäßigen Optimismus.
- Besonders sinnvoll bei Wachstumsunternehmen, bei denen der Gewinn oder Free Cashflow (noch) keine Aussagekraft hat.
📘 Unternehmenswert zu Umsatz (EV/Sales)
📈 Was ist das?
EV/Sales zeigt, wie viel Anleger für 1 € Umsatz eines Unternehmens zahlen, wenn man auch Schulden und Cash berücksichtigt – es ist eine kapitalstrukturbereinigte Version des KUV.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Kennzahl eignet sich besonders für den Vergleich von Unternehmen mit unterschiedlicher Verschuldung – sie zeigt, wie teuer ein Unternehmen tatsächlich im Verhältnis zum Umsatz ist.
🧮 Berechnung
Enterprise Value = 186,72 Mrd. $ | Umsatz (TTM) = 32,18 Mrd. $
Enterprise Value = 186,72 Mrd. $ | Umsatz erwartet = 30,89 Mrd. $
🎯 Was bedeutet das für Anleger?
- EV/Sales ist neutral gegenüber der Kapitalstruktur und eignet sich gut für Unternehmensvergleiche.
- Ein niedriges Verhältnis kann auf eine günstig bewertete Aktie hindeuten – ein hohes Verhältnis auf hohe Erwartungen oder Überbewertung.
- Besonders nützlich bei wachstumsstarken, noch nicht profitablen Firmen.
📘 Unternehmenswert zu Free Cashflow (EV/FCF)
📈 Was ist das?
EV/FCF zeigt, wie viele Jahre es dauern würde, bis ein Unternehmen seinen Unternehmenswert durch freien Cashflow „zurückverdient”.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Kennzahl hilft, Unternehmen auf Basis ihrer tatsächlichen Cash-Erträge zu bewerten – unabhängig von Bilanzierungsregeln oder buchhalterischem Gewinn.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein niedriges EV/FCF deutet auf eine günstige Bewertung bei starker Cashgenerierung hin.
- Ein hohes EV/FCF kann entweder auf Optimismus oder auf temporär schwachen Cashflow hindeuten.
- Besonders hilfreich bei reifen, profitablen Unternehmen mit stabilen Cashflows.
📘 Kurs-Buchwert-Verhältnis (KBV)
📈 Was ist das?
Das KBV zeigt, wie hoch der Marktwert eines Unternehmens im Verhältnis zu seinem bilanziellen Eigenkapital ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KBV ist besonders bei Substanzwerten (z. B. Banken, Industrie) relevant. Es hilft Anlegern zu erkennen, ob ein Unternehmen unter oder über seinem buchhalterischen Vermögen bewertet ist.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein KBV unter 1 kann auf Unterbewertung oder schwache Rentabilität hindeuten.
- Ein KBV über 1 zeigt, dass der Markt dem Unternehmen Mehrwert über den Buchwert hinaus zuschreibt (z. B. Marken, Patente, Wachstum).
- Das KBV eignet sich besonders gut für Unternehmen mit stabilen, materiellen Vermögenswerten.
📘 Dividende je Aktie
📈 Was ist das?
Die Dividende je Aktie zeigt, wie viel Geld ein Unternehmen pro Aktie an seine Aktionäre ausschüttet – typischerweise jährlich oder quartalsweise.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie ist die absolute Größe der Auszahlung je Aktie – wichtig für alle, die regelmäßige Erträge suchen oder Dividendenstrategien verfolgen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine stabile oder wachsende Dividende je Aktie ist oft ein Zeichen für ein solides Geschäftsmodell.
- Die Dividende je Aktie allein sagt aber nichts über die Rendite – dafür ist auch der Aktienkurs relevant (→ Dividendenrendite).
- Langfristig steigende Dividenden sind oft ein sehr gutes Merkmal (z. B. Dividenden-Aristokraten).
📘 Dividendenrendite
📈 Was ist das?
Die Dividendenrendite zeigt, wie hoch die Dividende eines Unternehmens im Verhältnis zum Aktienkurs ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie hilft dabei, Dividendenaktien vergleichbar zu machen – unabhängig vom absoluten Auszahlungsbetrag.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine stabile Dividendenrendite kann auf verlässliche Ausschüttungen hinweisen.
- Ein Vergleich der 1J- und 5J-Rendite hilft zu erkennen, ob das Dividendenwachstum mit dem Kurswachstum Schritt hält.
- Eine niedrige Rendite ist nicht zwingend negativ – sie kann auf starkes Kurswachstum hindeuten.
📘 Dividendenwachstum
📈 Was ist das?
Das Dividendenwachstum zeigt, wie stark ein Unternehmen seine Dividende je Aktie über die Zeit gesteigert hat.
🧮 Wie wird es berechnet?
5J: durchschnittliche jährliche Wachstumsrate (CAGR)
🏛️ Wofür ist es wichtig?
Stetig steigende Dividenden gelten als Zeichen für finanzielle Stärke und Aktionärsorientierung – besonders interessant für langfristige Investoren.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein stabiles Dividendenwachstum ist ein Zeichen nachhaltiger Ertragskraft.
- Ein hohes Dividendenwachstum kann ein erheblicher Hebel deiner Rendite sein:
- Wenn ein Unternehmen z. B. 1 € Dividende zahlt und diese über 5 Jahre jährlich um 15 % erhöht, bekommst du im 5. Jahr bereits 2 € je Aktie – doppelt so viel wie zu Beginn!
📘 Ausschüttungsquote (Payout)
📈 Was ist das?
Die Ausschüttungsquote zeigt, wie viel Prozent des Unternehmensgewinns (pro Aktie) als Dividende an die Aktionäre ausgeschüttet wird.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Quote hilft einzuschätzen, ob eine Dividende auf Dauer tragfähig ist – besonders im Verhältnis zum erzielten Gewinn.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine niedrige Ausschüttungsquote bedeutet: Das Unternehmen behält einen größeren Teil des Gewinns für Investitionen – typisch für Wachstumsunternehmen.
- Eine moderate Quote (z. B. 25–50 %) steht oft für ein gesundes Gleichgewicht zwischen Ausschüttung und Zukunftsinvestitionen.
- Hohe Ausschüttungsquoten können attraktiv wirken, sind aber riskanter, wenn die Gewinne schwanken oder sinken.
📘 Dividendensteigerungen in Folge (Erhöhungen)
📈 Was ist das?
Diese Kennzahl zeigt, wie viele Jahre in Folge ein Unternehmen seine Dividende pro Aktie erhöht hat – ohne Kürzung oder Aussetzung.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Ein langer Track Record kontinuierlicher Erhöhungen spricht für Verlässlichkeit, solide Finanzen und aktionärsfreundliche Unternehmenspolitik.
🎯 Was bedeutet das für Anleger?
- Ein langer Zeitraum mit Dividendensteigerungen stärkt das Vertrauen – besonders in Krisenzeiten.
- Solche Unternehmen gelten als verlässlich und planbar für Einkommensinvestoren.
- Je länger die Serie, desto stärker das Commitment gegenüber den Aktionären.
📘 Umsatz
📈 Was ist das?
Der Umsatz zeigt, wie viel ein Unternehmen insgesamt mit seinen Produkten und Dienstleistungen verdient – also den Bruttoerlös vor Abzug von Kosten.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der Umsatz ist eine der zentralen Kennzahlen zur Einschätzung der Unternehmensgröße, Marktstellung und Wachstumskraft.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein wachsender Umsatz zeigt eine steigende Nachfrage und kann ein guter Frühindikator für Gewinnsteigerungen sein.
- Vergleiche von aktuellem und erwartetem Umsatz geben Hinweise auf das Marktumfeld und Analystenerwartungen.
- Wichtig: Starker Umsatz allein genügt nicht – auch Margen und Profitabilität zählen.
📘 EBITDA
📈 Was ist das?
EBITDA steht für „Earnings Before Interest, Taxes, Depreciation and Amortization“ – also Gewinn vor Zinsen, Steuern und Abschreibungen. Es zeigt das operative Ergebnis eines Unternehmens, bereinigt um bilanztechnische und finanzierungsbedingte Effekte.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
EBITDA ist eine verbreitete Kennzahl zur Beurteilung der operativen Leistungsfähigkeit – insbesondere bei kapitalintensiven Unternehmen oder im internationalen Vergleich.
🎯 Was bedeutet das für Anleger?
- Ein hohes oder wachsendes EBITDA spricht für starke operative Erträge – unabhängig von Bilanzierung oder Steuerlast.
- EBITDA ist besonders nützlich, um Unternehmen branchenübergreifend zu vergleichen.
- Wichtig: EBITDA ist keine offizielle Gewinnkennzahl – Abschreibungen und Finanzierungskosten werden ausgeklammert.
📘 EBIT
📈 Was ist das?
EBIT steht für „Earnings Before Interest and Taxes“ – also Gewinn vor Zinsen und Steuern. Es zeigt das operative Ergebnis eines Unternehmens nach Abschreibungen, aber vor Finanzierungs- und Steueraufwand.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
EBIT ist eine zentrale Kennzahl zur Beurteilung der Profitabilität aus dem Kerngeschäft – unabhängig von Kapitalstruktur oder Steuersystem.
🎯 Was bedeutet das für Anleger?
- Ein hohes EBIT deutet auf ein profitables Kerngeschäft hin – vor Zinslasten oder steuerlichen Effekten.
- Es erlaubt objektivere Vergleiche zwischen Unternehmen mit unterschiedlicher Finanzierung.
- Im Vergleich mit EBITDA zeigt EBIT bereits den Einfluss von Abschreibungen auf das operative Ergebnis.
📘 Nettogewinn
📈 Was ist das?
Der Nettogewinn ist der verbleibende Jahresüberschuss (oder -fehlbetrag) eines Unternehmens – nach Abzug aller Kosten, Steuern, Zinsen und Abschreibungen
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der Nettogewinn ist die zentrale Erfolgskennzahl – er zeigt, wie profitabel ein Unternehmen nach allen Kosten tatsächlich arbeitet.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein steigender Nettogewinn zeigt, dass das Unternehmen effizient wirtschaftet – trotz aller Kosten.
- Die Entwicklung des Gewinns beeinflusst z. B. direkt das KGV und weitere Kennzahlen.
- Im Zeitverlauf lässt sich ablesen, wie stabil und profitabel ein Geschäftsmodell wirklich ist.
📘 Free Cashflow (FCF)
📈 Was ist das?
Der Free Cashflow gibt Aufschluss über die echte finanzielle Stärke eines Unternehmens – unabhängig von Bilanzierungsregeln. Er zeigt, wie viel Spielraum für Dividenden, Aktienrückkäufe oder Schuldenabbau besteht.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Free Cashflow bedeutet, dass ein Unternehmen echte Finanzkraft besitzt – unabhängig vom bilanzierten Gewinn.
- Er ist oft die solideste Grundlage für nachhaltige Dividenden und Aktienrückkäufe.
- Sinkender FCF kann ein Warnsignal sein – auch wenn der Gewinn stabil aussieht.
📘 Umsatzwachstum
📈 Was ist das?
Das Umsatzwachstum zeigt, wie stark sich die Erlöse eines Unternehmens im Vergleich zum Vorjahr verändert haben – tatsächlich (TTM) und auf Prognosebasis (erwartet).
🧮 Wie wird es berechnet?
Erwartet = (Umsatz erwartet ÷ Umsatz Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Ein wachsender Umsatz ist ein zentrales Signal für steigende Nachfrage, Geschäftsausweitung und Marktanteilsgewinne – besonders bei Wachstumsunternehmen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Wachstum ist der Motor langfristiger Wertsteigerung – besonders bei Technologie- und Wachstumsaktien.
- Wichtig ist nicht nur das aktuelle Wachstum, sondern auch dessen Nachhaltigkeit.
- Prognosen zeigen, ob Analysten weiteres Potenzial erwarten – oder eine Verlangsamung.
📘 EBITDA-Wachstum
📈 Was ist das?
Das EBITDA-Wachstum zeigt, wie stark das operative Ergebnis eines Unternehmens vor Zinsen, Steuern und Abschreibungen im Vergleich zum Vorjahr gestiegen oder gesunken ist.
🧮 Wie wird es berechnet?
Erwartet = (erwartetes EBITDA ÷ EBITDA Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Ein steigendes EBITDA ist ein Zeichen für verbesserte operative Ertragskraft – unabhängig von Finanzierungsstruktur oder Abschreibungen.
🎯 Was bedeutet das für Anleger?
- Starkes EBITDA-Wachstum signalisiert operative Effizienz und Skalierung – besonders relevant in Wachstumsphasen.
- EBITDA-Wachstum ist ein Frühindikator für Margen- und Gewinnentwicklung – sollte aber stets im Zusammenhang mit Umsatz und EBIT betrachtet werden.
📘 EBIT Wachstum
📈 Was ist das?
Das EBIT-Wachstum zeigt, wie stark das operative Ergebnis eines Unternehmens (nach Abschreibungen, aber vor Zinsen und Steuern) im Vergleich zum Vorjahr gewachsen ist.
🧮 Wie wird es berechnet?
Erwartet = (erwartetes EBIT ÷ EBIT Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Das EBIT-Wachstum ist ein direkter Indikator für die wirtschaftliche Entwicklung des operativen Geschäfts – unter Berücksichtigung der Kapitalintensität (Abschreibungen).
🎯 Was bedeutet das für Anleger?
- Steigendes EBIT signalisiert wachsende operative Rentabilität – auch unter Berücksichtigung von Abschreibungen.
- Das EBIT-Wachstum ist ein wichtiges Maß zur Beurteilung von Geschäftsmodellen mit hohen Investitionskosten.
- Im Zusammenspiel mit Umsatz- und EBITDA-Wachstum ergibt sich ein umfassendes Bild zur operativen Entwicklung.
📘 Nettogewinn-Wachstum
📈 Was ist das?
Das Nettogewinn-Wachstum zeigt, wie stark der Jahresüberschuss eines Unternehmens gegenüber dem Vorjahr gestiegen oder gesunken ist – sowohl tatsächlich (TTM) als auch auf Basis von Prognosen (erwartet).
🧮 Wie wird es berechnet?
Erwartet = (erwarteter Nettogewinn ÷ Nettogewinn Vorjahr − 1) × 100
Der erwartete Wert basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Der Gewinn ist die entscheidende Ergebnisgröße für ein Unternehmen. Ein wachsender Nettogewinn deutet auf steigende Effizienz, stabile Kostenkontrolle und nachhaltige Ertragskraft hin.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Wachsender Nettogewinn stärkt die Bewertung, Dividendenfähigkeit und Kursfantasie.
- Stagnierender oder rückläufiger Gewinn trotz Umsatzwachstum kann auf Margendruck hinweisen.
📘 Free Cashflow-Wachstum
📈 Was ist das?
Das Free-Cashflow-Wachstum zeigt, wie sich der freie Mittelzufluss eines Unternehmens im Vergleich zum Vorjahr verändert hat – also der Betrag, der nach allen operativen Ausgaben und Investitionen übrig bleibt.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Free Cashflow ist der echte, verfügbare Geldzufluss. Wachstum in diesem Bereich ist ein Zeichen für finanzielle Stärke und steigende Flexibilität bei Dividenden, Rückkäufen oder Investitionen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Sinkender Free Cashflow kann auf steigende Investitionen, höhere Kosten oder stagnierende operative Erträge hindeuten.
- Besonders bei Dividendenwerten ist das FCF-Wachstum wichtig – denn Dividenden werden letztlich aus dem verfügbaren Cash gezahlt.
- Ein negativer Trend sollte genauer analysiert werden – er ist nicht zwangsläufig schlecht, aber potenziell ein Warnsignal.
📘 Bruttomarge
📈 Was ist das?
Die Bruttomarge zeigt, wie viel vom Umsatz nach Abzug der direkten Herstellungskosten (Material, Produktion) als Bruttogewinn übrig bleibt – also der „Rohgewinn“ eines Unternehmens.
🧮 Wie wird es berechnet?
Auch: Bruttomarge = Bruttogewinn ÷ Umsatz × 100
🏛️ Wofür ist es wichtig?
Die Bruttomarge gibt Aufschluss über die Profitabilität eines Produkts oder Geschäftsmodells vor Fixkosten, Steuern und Zinsen. Sie zeigt, wie effizient ein Unternehmen produzieren oder einkaufen kann.
🎯 Was bedeutet das für Anleger?
- Eine hohe Bruttomarge deutet auf starke Preissetzungsmacht und effiziente Herstellung hin.
- Sinkende Bruttomargen können auf Kostensteigerungen oder Preisdruck hindeuten.
- Besonders im Vergleich zu Wettbewerbern liefert die Bruttomarge wertvolle Einblicke in die Geschäftsqualität.
📘 EBITDA-Marge
📈 Was ist das?
Die EBITDA-Marge zeigt, wie viel vom Umsatz als operativer Gewinn vor Zinsen, Steuern und Abschreibungen (EBITDA) übrig bleibt. Sie misst die operative Effizienz – ohne Verzerrungen durch Finanzierung oder Buchwerte.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die EBITDA-Marge hilft zu verstehen, wie viel operativer Gewinn ein Unternehmen aus jedem Euro Umsatz erzielt – unabhängig von Kapitalstruktur oder steuerlichem Umfeld.
🎯 Was bedeutet das für Anleger?
- Eine hohe EBITDA-Marge zeigt starke operative Ertragskraft – unabhängig von Bilanzierungseffekten.
- Die Marge ermöglicht gute Vergleiche zwischen Unternehmen und Branchen.
- Ein stabiler oder wachsender Wert kann auf effiziente Kostenkontrolle und Skalierbarkeit hindeuten.
📘 EBIT-Marge
📈 Was ist das?
Die EBIT-Marge zeigt, wie viel Prozent des Umsatzes als operativer Gewinn nach Abschreibungen, aber vor Zinsen und Steuern übrig bleiben.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die EBIT-Marge misst die operative Ertragskraft eines Unternehmens unter Berücksichtigung der Kapitalintensität (z. B. Maschinen, Anlagen). Sie eignet sich gut zum Vergleich von Geschäftsmodellen mit unterschiedlich hohen Abschreibungen.
🎯 Was bedeutet das für Anleger?
- Eine hohe EBIT-Marge zeigt, dass ein Unternehmen auch nach Abschreibungen effizient arbeitet.
- Sie ist besonders relevant in kapitalintensiven Branchen.
- Langfristig stabile oder steigende Margen sind ein Zeichen wirtschaftlicher Stärke und Preissetzungsmacht.
📘 Nettomarge
📈 Was ist das?
Die Nettomarge zeigt, wie viel vom Umsatz am Ende als „Reingewinn“ übrig bleibt – also nach Abzug aller Kosten, Zinsen, Steuern und Abschreibungen.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Nettomarge gibt an, wie effizient ein Unternehmen über alle Stufen hinweg wirtschaftet. Sie zeigt, wie viel Gewinn tatsächlich je Euro Umsatz übrig bleibt.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Nettomarge zeigt, dass ein Unternehmen nicht nur operativ stark ist, sondern auch seine Finanzierung und Steuerbelastung im Griff hat.
- Vergleiche mit Wettbewerbern geben Einblicke in die wirtschaftliche Qualität.
- Sinkende Nettomargen trotz Umsatzwachstum können ein Warnsignal sein – etwa für steigende Kosten oder sinkende Effizienz.
📘 Free Cashflow Marge
📈 Was ist das?
Die Free-Cashflow-Marge zeigt, wie viel vom Umsatz nach Abzug aller operativen Ausgaben und Investitionen tatsächlich als freier Mittelzufluss übrig bleibt.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Marge misst die echte Liquidität, die ein Unternehmen erwirtschaftet – unabhängig von Bilanzierungsregeln oder Abschreibungen. Sie ist besonders relevant für Dividenden, Rückkäufe und Investitionen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Free-Cashflow-Marge zeigt, dass ein Unternehmen nachhaltig liquide Mittel erwirtschaftet.
- Sie ist ein starkes Signal für finanzielle Stabilität und Ausschüttungspotenzial.
- Wichtig ist der langfristige Trend – sinkende Werte können auf steigende Investitionen oder rückläufige operative Effizienz hindeuten.
📘 Eigenkapitalquote
📈 Was ist das?
Die Eigenkapitalquote zeigt, wie hoch der Anteil des Eigenkapitals an der Bilanzsumme eines Unternehmens ist – also wie stark es sich aus eigenen Mitteln finanziert.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Eine hohe Eigenkapitalquote steht für finanzielle Stabilität, Krisenfestigkeit und gute Bonität. Sie ist besonders relevant bei der Beurteilung der Verschuldung.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Eigenkapitalquote signalisiert finanzielle Stabilität – besonders in Krisenzeiten.
- Ein niedriger Wert kann auf ein höheres Risiko oder eine aggressive Verschuldung hinweisen.
- Wichtig: Die Eigenkapitalquote sollte immer gemeinsam mit der Eigenkapitalrendite betrachtet werden. Nur so lässt sich beurteilen, ob ein Unternehmen nicht nur solide, sondern auch effizient wirtschaftet.
📘 Eigenkapitalrendite (ROE)
📈 Was ist das?
Die Eigenkapitalrendite zeigt, wie effizient ein Unternehmen mit dem Kapital seiner Aktionäre arbeitet – also wie viel Gewinn es pro Euro Eigenkapital erwirtschaftet.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Eigenkapitalrendite ist eine zentrale Rentabilitätskennzahl. Sie hilft Anlegern zu erkennen, ob das Unternehmen eine attraktive Verzinsung auf das eingesetzte Eigenkapital erwirtschaftet.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Eigenkapitalrendite spricht für ein starkes, effizientes Geschäftsmodell.
- Besonders interessant ist sie bei kapitalintensiven Firmen oder solchen mit hoher Eigenkapitalquote.
- Wichtig: Ein sehr hoher ROE kann auch auf hohe Schulden hinweisen – daher sollte sie immer im Kontext mit der Eigenkapitalquote betrachtet werden.
📘 Return on Capital Employed (ROCE)
📈 Was ist das?
ROCE misst die Gesamtrentabilität eines Unternehmens – also wie effizient es das eingesetzte Kapital (Eigen- und Fremdkapital) zur Gewinnerzielung nutzt.
🧮 Wie wird es berechnet?
Das eingesetzte Kapital ist das gesamte betriebsnotwendige Kapital, unabhängig von der Finanzierungsquelle.
🏛️ Wofür ist es wichtig?
ROCE eignet sich besonders gut für den Vergleich unterschiedlich finanzierter Unternehmen. Es zeigt, wie effektiv ein Unternehmen Kapital investiert – unabhängig von der Kapitalstruktur.
🎯 Was bedeutet das für Anleger?
- Ein hoher ROCE zeigt, dass ein Unternehmen sein Kapital effizient einsetzt – unabhängig davon, ob es durch Eigen- oder Fremdkapital finanziert ist.
- Je höher der ROCE im Vergleich zu ähnlichen Unternehmen, desto mehr Wert schafft das Unternehmen mit seinem investierten Kapital.
- Besonders wichtig ist der ROCE bei Firmen mit hohen Investitionen – z. B. in Industrie, Energie oder Infrastruktur.
📘 Return on Invested Capital (ROIC)
📈 Was ist das?
ROIC zeigt, wie effizient ein Unternehmen das Kapital investiert, das langfristig im operativen Geschäft gebunden ist – unabhängig davon, ob es aus Eigen- oder Fremdkapital stammt.
🧮 Wie wird es berechnet?
- NOPAT = „Net Operating Profit After Taxes“
- Investiertes Kapital = operatives Vermögen abzüglich nicht-verzinster Schulden
🏛️ Wofür ist es wichtig?
ROIC ist eine der präzisesten Kennzahlen zur Bewertung der Kapitalrendite – besonders im Vergleich zur Eigenkapitalrendite, weil es Verzerrungen durch Schulden vermeidet. Er zeigt, ob ein Unternehmen Mehrwert für alle Kapitalgeber schafft.
🎯 Was bedeutet das für Anleger?
- Ein hoher ROIC zeigt, wie gut ein Unternehmen mit dem tatsächlich investierten (betriebsnotwendigen) Kapital wirtschaftet.
- Im Unterschied zu ROCE wird nur Kapital betrachtet, das wirklich zur Finanzierung operativer Aktivitäten dient – und verzinst werden muss.
- Besonders hilfreich, um die Kapitalrendite von Unternehmen mit viel „überschüssigem“ Kapital oder zinsfreien Verbindlichkeiten realistisch zu vergleichen.
📘 Verschuldungsgrad (Leverage Ratio)
📈 Was ist das?
Der Verschuldungsgrad zeigt, wie stark ein Unternehmen durch verzinsliche Schulden (z. B. Kredite und Anleihen) im Verhältnis zum Eigenkapital finanziert ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Kennzahl hilft, das finanzielle Risiko und die Abhängigkeit von Fremdkapital zu beurteilen. Ein hoher Verschuldungsgrad kann die Eigenkapitalrendite steigern – birgt aber auch erhöhte Risiken bei Zinsanstiegen oder Liquiditätsengpässen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein niedriger Verschuldungsgrad steht für finanzielle Stabilität und Unabhängigkeit.
- Ein hoher Wert kann auf erhöhte Risiken hinweisen – insbesondere bei schwankenden Zinsen oder konjunkturellen Schwächen.
- Wichtig: Immer im Kontext zur Branche und Kapitalintensität bewerten.
📘 Ergebnis je Aktie (EPS)
📈 Was ist das?
Das Ergebnis je Aktie (EPS) zeigt, wie viel Gewinn auf eine einzelne Aktie entfällt – und ist eine der wichtigsten Kennzahlen zur Bewertung von Unternehmen.
🧮 Wie wird es berechnet?
Die verwässerte Aktienanzahl berücksichtigt auch potenzielle neue Aktien, etwa durch Optionen, Wandelanleihen oder andere Umtauschrechte.
🏛️ Wofür ist es wichtig?
EPS bildet die Basis für viele Bewertungskennzahlen wie KGV, PEG oder Payout Ratio. Es macht den Gewinn für Aktionäre vergleichbar – unabhängig von der Unternehmensgröße.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- EPS hilft, die Profitabilität pro Aktie zu erfassen – und ist besonders wichtig im Zeitvergleich oder im Vergleich mit Analystenschätzungen.
- Steigendes EPS kann ein Zeichen für stabiles Wachstum oder Aktienrückkäufe sein.
- Wichtig: Verwende verwässertes EPS für realistische Bewertungen – besonders bei stark aktienbasierten Vergütungssystemen.
📘 Free Cashflow je Aktie (FCF je Aktie)
📈 Was ist das?
Der Free Cashflow je Aktie zeigt, wie viel freier Mittelzufluss einem Unternehmen pro Aktie zur Verfügung steht – nach Investitionen, aber vor Dividenden oder Schuldentilgung.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der FCF je Aktie zeigt, wie viel liquide Mittel pro Aktie tatsächlich im Unternehmen verbleiben – wichtig für Dividenden, Aktienrückkäufe oder Schuldentilgung. Im Gegensatz zum Gewinn ist er schwerer manipulierbar und daher besonders aussagekräftig.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Free Cashflow je Aktie ist ein Zeichen für hohe finanzielle Flexibilität.
- Er zeigt, wie viel Kapital ein Unternehmen effektiv einsetzen oder ausschütten kann.
- Besonders relevant für dividendenstarke Unternehmen oder solche mit starker Kapitalrendite.
📘 Short Interest
📈 Was ist das?
Short Interest zeigt, wie viele Aktien eines Unternehmens aktuell leerverkauft wurden – also von Investoren geliehen und verkauft, in der Erwartung fallender Kurse.
🧮 Wie wird es berechnet?
Der Wert zeigt den Anteil der Aktien, der aktuell auf fallende Kurse spekuliert wird.
🏛️ Wofür ist es wichtig?
Short Interest dient als Stimmungsindikator: Ein hoher Wert deutet auf Skepsis oder negative Erwartungen gegenüber dem Unternehmen hin – kann aber auch zu einem „Short Squeeze“ führen, wenn der Kurs plötzlich steigt.
🎯 Was bedeutet das für Anleger?
- Ein niedriger Short Interest deutet auf Vertrauen in das Unternehmen hin.
- Ein hoher Wert kann ein Warnsignal sein – oder eine Chance, wenn sich die Stimmung dreht.
- Besonders spannend in volatilen Märkten oder vor wichtigen Quartalszahlen.
📘 Employees
📈 Was ist das?
Die Mitarbeiteranzahl zeigt, wie viele Personen ein Unternehmen weltweit beschäftigt – ein Indikator für Größe, Struktur und Geschäftsmodell.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie hilft bei der Einschätzung von Skaleneffekten, Effizienz und Personalkosten. Zusammen mit Umsatz und Gewinn lassen sich Kennzahlen wie Produktivität je Mitarbeiter ableiten.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Viele Mitarbeiter bedeuten große operative Komplexität – aber auch hohes Umsatzpotenzial.
- Produktivität je Mitarbeiter ist ein wichtiger Indikator für Effizienz.
- Besonders spannend bei stark wachsenden Tech- oder Industrieunternehmen.
📘 Umsatz je Mitarbeiter
📈 Was ist das?
Der Umsatz je Mitarbeiter zeigt, wie viel Erlös ein Unternehmen durchschnittlich pro Beschäftigtem erwirtschaftet – eine Kennzahl für Effizienz und Produktivität.
🧮 Wie wird es berechnet?
Die Mitarbeiterzahl stammt in der Regel aus dem letzten verfügbaren Jahresbericht.
🏛️ Wofür ist es wichtig?
Diese Kennzahl hilft, Geschäftsmodelle zu vergleichen – insbesondere zwischen arbeitsintensiven und technologiegetriebenen Unternehmen. Ein hoher Wert deutet auf Automatisierung, Effizienz oder hohen Wertschöpfungsanteil hin.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Umsatz je Mitarbeiter spricht für ein skalierbares und margenstarkes Geschäftsmodell.
- Ein niedriger Wert kann auf arbeitsintensive Prozesse oder geringere Wertschöpfung hinweisen.
- Besonders hilfreich beim Vergleich von Tech- vs. Industrieunternehmen.
Banco do Brasil ADR Aktie Analyse
Analystenmeinungen
19 Analysten haben eine Banco do Brasil ADR Prognose abgegeben:
Analystenmeinungen
19 Analysten haben eine Banco do Brasil ADR Prognose abgegeben:
Banco do Brasil ADR Events
🇩🇪 Neu: Alle Transkripte jetzt auch auf Deutsch verfügbar!
Abonniere Premium, um Transkripte und KI-Zusammenfassungen auf Deutsch zu lesen.
Vergangene Events
|
AUG
13
Q2 2026 Earnings Call
vor etwa einem Monat
|
|
MAI
14
Q1 2026 Earnings Call
vor 5 Monaten
|
|
APR
23
Analyst/Investor Day - Banco do Brasil S.A.
vor 5 Monaten
|
|
FEB
12
Q4 2025 Earnings Call
vor 8 Monaten
|
|
NOV
13
Q3 2025 Earnings Call
vor 11 Monaten
|
|
SEP
24
Analyst/Investor Day - Banco do Brasil S.A.
vor etwa einem Jahr
|
aktien.guide Basis
Banco do Brasil ADR — Q2 2026 Earnings Call
1. Management Discussion
[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 this management team, direction means consistent strategy, execution and strengthened the drivers of value creation. For the second quarter, earnings totaled BRL 3.9 billion, up 13.9% quarter-over-quarter and a 3.3% increase year-to-date. Net interest income continues to grow totaling BRL 27.5 billion, supported by a credit mix offering a better risk-return ratio given the diversification of funding sources and the effective allocation of our liquidity. Fee income grew by nearly 5% with AUM and consortium standing at business that are gaining momentum precisely due to the complementarity nature of our conglomerate.
Costs remain under control. And this involves ongoing efficiency efforts where we optimize operations while continuing to invest in what builds the future, meaning people and technology. Delinquency remained high during the quarter, particularly driven by the agricultural segment. Expected credit loss provisions saw a slight decrease in the quarter, representing our main drag on earnings. We've been actively implementing measures to improve credit and delinquency management. And I will talk about these in more details below. CET1 remained strong, standing at 11.27% in June. Credit remains the biggest revenue driver. And when I talk about work, I am talking about a more resilient mix with better collateral and an improved collection process.
The expanded loan portfolio was BRL 1.3 trillion in June, an year-over-year increase of 1.5%. And this growth is guided by a clear focus on discipline and appropriate risk-return ratio and the implementation of our resilience framework. In personal loans, we are striving for an increasingly balanced and sustainable portfolio composition. Payroll loans and Credito do Trabalhador workers loan showed significant growth. And here, I would like to highlight greater risk mitigation in private payroll loans -- the use of FGTS funds as collateral and the automatic reengagement of customers who changed jobs, the feature expected to be operational at the end of August, which will help control delinquency in this segment.
In the Corporate segment, I highlight transactions with own guaranteed funds, which grew 32% year-over-year, with a share of portfolio growing from 25% to 36%. In Agribusiness, we continue to focus loan origination backed by more robust collateral. 70% of all disbursements under the '25, '26 harvest plan have already been secured by fiduciary sales. BRL 90 billion of this portfolio is backed by this type of collateral. In addition, we restructured our collection process a few months ago, and we are already reaping significant benefits. We have returned to a more appropriate level of loss recovery, which reached nearly BRL 2 billion in the quarter, a 51.4% increase when compared to the first quarter of the year. And in 2026 alone, we're already taking the legal measures to recover BRL 15.5 billion, a figure that already exceeds the total amount we handled in 2025.
As part of this process, we have begun repossessing more than 130 rural properties. Foreclosure remains a strategic and selective measure as we always seek negotiation and settlement through commercial channels. In the agribusiness sector, we remain very close to farmers. And at the same time, we are engaging an increasingly sophisticated loan origination. And this proximity goes back a long way. We have nearly 600,000 farmer clients who have taken loans with us for more than 84% have been with us for over 10 years. We financed more than 200 crops, and we are present in 93% of the Brazilian municipalities.
This extensive reach, combined with our in-depth knowledge of the sector in each client is a key advantage that will help us navigate through the cycle. And looking forward, we are announcing the 2027 harvest plan worth up to BRL 210 billion with the same commitment and proximity to those who are dedicated to Brazil's growth. On July 15, Provisional Measure 1,376 was published, introducing credit lines to renegotiate agricultural loans from farmers who incurred losses due to weather events or market losses across two or more harvests between 2019 and 2025.
Our potential portfolio eligible under the provisional measure totals up to BRL 100 billion, involving up to 113,000 customers, including both delinquent borrowers and those with performing loans that have been extended or renegotiated. The Midwest accounts for the largest share with 40% of the potential volume, followed by the Southeast with 24%. Corporate agriculture accounts for 2/3 of the loans for now, for about 30% and Pronaf program for the remainder.
In terms of crops, the focus is primarily on soybean, corn and livestock. It's important to make it clear that loan approvals depend on the submission of appraisal reports and we follow our credit policy. Let's begin with delinquent loans and then move on to others. Our teams are engaged in a major campaign and new loans will become available as soon as the equalization ordinance is published, which is expected to occur in the coming days. With this initiative, we expect to return to on-time payment rates in the range of 90% in the coming months, thereby supporting the convergence of the cost of risk towards the guidance range.
One of the most important strategies for BB is the enhancement of our high-value customer service model. This initiative drives diversification of revenue sources and increased business volume, supported by comprehensive portfolio, high value-added services and a highly specialized team. To date, 12% of our branch employees focus on high-value customers. The loan portfolio for this segment grew by 4%. Assets under management, meanwhile, grew by 12% in the segment where relationship and trust are key differentiators.
Altus Liv cardholders increased their spending by 15%. And card revenue from this segment grew at twice the rate seen in other segments. We are optimizing this network with a 22% expansion of space -- we invested in our branches this quarter, bringing the bank closer to those seeking specialized advice and sophisticated investment solutions. We aim to increase our high-value customer base by 25% by 2030. By June, we have already reached 1/5 of this target with a 4.3% increase. We had already been warning about the strain on household income and the impact of a high Selic rates, especially for those with lower financial resilience. We acted in line with this assessment. In total, we renegotiated BRL 31 billion in debt renegotiation.
In the Novo Desenrola loan, we exceeded BRL 12 billion, notably serving more than 440,000 individuals and 40,000 businesses. But more than just renegotiating debt, we helped people get back on their feet through financial education and awareness. At the same time, we continue to take advantage of new opportunities with diversification and risk mitigation. A good example is the urban mobility operations through BB Move Brasil, we've already reached BRL 1.4 billion in new hires, representing a 40% increase over the June ballast of the auto portfolio originated by the bank.
We've served nearly 13,000 drivers in more than 1100 municipalities contributing to fleet renewal with the focus on sustainability. And in line with our digital strategy, we partnered with Uber to offer cashback to drivers who finance their vehicles to us based on their consistent on-time payments. We are a bank that never stops transforming itself. And I want to start with always -- with what always comes first, people. Every significant change at Banco do Brasil starts with our people, the true agents of this transformation. BB hires through competitive exams. And that's why we invest so much in developing the best talents.
That's why we continuously train our teams, preparing them for an organization that is increasingly tech-driven, dynamic and agent based. Artificial intelligence is central to our business transformation agenda. This requires leadership and commitment. It's not about doing more with technology, but rather about using technology to unlock people's potential. It doesn't replace human presence. It fosters even greater closeness.
This half year alone, we expanded our base of analytical AI models by 28% and bringing the total to over 2,300. But the statistic I'm most proud of, it isn't about machines. It's about people. It's our own employees who create the bank's AI engines. This half year, the number of agents they developed triple, reaching nearly 15,000. When people and technology come together, the results are clear. AI in loan renegotiation generated 6x more conversions. And we've already freed up nearly 1.5 million hours of work. In our digital expansion, we've achieved nearly 70% of the progress projected for 2026 in agile channels and environments.
And this closely translates into customer experience. 34% of our network already provides specialized service, 100% of customers have access to human digital assistance on the BB app. We now have 35 million active customers on digital channels and 47% of them are heavy users. It's from this closeness that the best business opportunities arise, and it is this closeness that it will always set Banco do Brasil apart. The integration of physical and digital channels embodies our channel strategy. We are taking another important step with the launch of the 5.0 app, which we discussed at our BB Day and we'll launch at FEBRABAN TECH in a few weeks.
It was designed based on actively listening to our customers to make the digital experience simpler, more modern and more effective. We are launching a truly customizable app. The experience will adapt to each customer and each one will have the freedom to organize and customize the app in a way that makes more sense for their daily lives. And I would like to highlight the brand new BB section, which has a social media feel like and creates a familiar environment for users using the same intuitive format as the apps they use every day. Among the key advances, I would like to highlight the embedded artificial intelligence, conversational journey supported by an integrated assistant and performance improvements.
When we talked about the strength of Banco do Brasil, we're talking about a conglomerate that goes far beyond banking. At BB Day, we showcased our galaxy. It comprises more than 80 companies, which expand our ability to serve customers. The companies in the conglomerate contribute on average 52% of our earnings. It is a distribution strength of our branches that give scale to our company's businesses. And this presence expands beyond Brazil's borders. We operate in 84 countries, expanding the reach of our operations and connecting our customers to different markets and opportunities. The United States, BB Americas already has a real estate loan portfolio or a mortgage portfolio of over $2 billion.
In the first 6 months of 2026, new account openings grew by 3.5%. We are also present in Japan with nearly 100,000 customers and this serves as our hub for operations in Asia. In Europe, we are making headway in our business. In April, we launched BB Portugal's digital account. Since then, the number of accounts has grown by 12%, 51% of investment transactions are now conducted digitally. All of that demonstrates BB's ability to combine a broad network or specialized business lines and international reach to get closer and closer to our customers.
I will conclude by returning to what really matters. A bank with Banco do Brasil's legacy doesn't survive for 270 years by chance. It endures and in times of need, it knows how to return to its basics, a skilled workforce, responsible decision making and hard work. And that's why today's Banco do Brasil is more resilient, more disciplined, more digital and better prepared to seize opportunities ahead because cycles come and go. Fundamentals remain, and it is with this compass that we move forward.
Thank you very much.
[Operator Instructions] We will now start our Q&A session. The questions can be raised in Portuguese and English. I will ask analysts to ask only one question. [Operator Instructions] I would like to invite Eric Ito from Bradesco.
2. Question Answer
Question with regards to provisions, I understand that a good part of our expectation of improvements, and I believe there will be an improvement till the end of the year. And this is explained by the improvement in agri business. But I see that there was a worsening in the indicator a bit contaminated by agri business and also with a greater availability. We also see a delay in individual loans. So if you could maybe talk about PDD until the end of the year and how much you have that will improve the agro and also you have also individual loans on a credit card double pressure. If you could maybe help us understand and give a better view of what is happening. This would help us a lot.
Good morning, Eric. Thank you for your question and your presence. It's a pleasure to see you here with us. This was a dynamic, we hope that there will be a relevant improvement in the agro portfolio due to the Ordinance of 1,376 Ordinance. So we have now available for our clients a tool that will promote this renegotiation, and we will improve the conditions for clients in general, and this will bring an impact in our individual relationship with our rural producers. So these are renegotiations that we will prioritize operations with better in turn.
We will also link this to -- and transforming also our mortgages through a lien and also a full analysis, which will bring about an implement of our LLP and the segment of individual loans. So the trade-off when you look into this. When you look into an eligible portfolio, the renegotiation of 1376 of BRL 100 billion, and the impacts that will comply with the relationship with our personal loans, this will allow us to converge for the second half of the year within the guidance interval.
And we will cover some additional need we might have with regards to our individual loans portfolio. We had already forecasted this worsening in the performance of this portfolio. We had, as we said, as said in the last quarter, we have a component of expected losses that we had anticipated already at this moment and now, what we need to deliver is this the final effort of improving the environment in the agro business portfolio which will bring along this reflection into our individual or personal portfolio.
So all these moving parts, which come for agro business is above the eventual needs of provisioning that we'll have to do in our other portfolios, which will certainly channel our guidance or the performance of our LLD in the guidance interval.
Our next question is from Daniel Vaz from Safra.
Maybe a follow-up to Eric's question. In the Ordinance 1,376. Considering the size of the portfolio, we wish to fit within these ordinance. You mentioned the program, we could maybe say that Banco do Brasil could have 50% of this program, it makes sense when we consider the size of the pool within the bank. But I would like to hear from you, what is the size that you expect within this program?
And maybe a second part of our question would be if this will be enough for you to solve any issues. And if there is any chance of having initial capital because we see all the other banks in parallel if you have maybe an increase in equity with the movement of an insurance company that they were able to have tangible assets. And this has allowed them to recover the common equity. And maybe in 2027, this could enter into an environment where we see many economists talking about a possible recession. We have also worsening in the consumption. So we have to -- I would like to try to understand if only through this ordinance, you would be able to say, well, I don't have a capital issue here. I don't have an equity issue here because we see that there was a deterioration of portfolios in the personal portfolios. But I want to know if this ordinance is enough considering the size of the possible issue in the future.
Well, Daniel, thank you. I would start here, but it's a very broad question. And this is the management for the bank in general. And maybe this is under our responsibility. So now specifically considering for this specific ordinance 1,376. And considering the transparency, we all always have with the market. We brought here potential public. This is exactly the public that we will perform in this ordinance. Well, I believe the public is actually broader than the one that we will focus on. But our idea here is to bring you a greater transparency. So what we brought to you is what would be the possible size of this pool within the Agro portfolio, which is eligible in this process that is already very well designed in terms of prioritization.
And Bittencourt might also add to what I have to say to attack this specific audience. So this would be the first point. But we do not expect only an improvement in this environment -- in this agro business environment because of this ordinance, it will be natural that if the so-called Safra plan or the crop plan and the uncertainties that were surrounding this issue of renegotiation that we would revisit the rates of timely payments in around 20%.
So this whole set of measures that we have considered and we have worked and tested all our hypotheses and also forecasted in our performance expectation, we believe that this is what we will execute according with the specific LLD guidance within the proposed interval.
And I will pass the floor to Bittencourt. With regards to the issue regarding our specific clients and what is our expectation within the program, and then we will close maybe with the whole idea of our equity.
Daniel. I will start with what was read by Prince. This ordinance will limit a certain public. And this will also help us in the support of payment for those who do not comply or not potential. Of this BRL 100 billion, we included all the 13 or 14 ordinance, many of these producers have contracts that go beyond to the limits that are included in that ordinance. So they could be included in the negotiation in the 1,376, but not all this value of BRL 100 billion will be included within this controlled rate. Part of it would be a delayed of free rates.
Within the public that we do understand that will be potentially within the ordinance, it come to the bank, -- of course, not all producers are under this process or had losses or will be able to prove their losses. Not all the producers, which delayed within their timely payments will come searching for renegotiation. Many of these contracts already have controlled rates. So this is why our initial focus will be mainly on the default or delaying payment producer. We have maybe 36 default payments, and this will be our main focus, followed by those who have delayed payments with free rates that will therefore fit within the percentage of losses and the credit limits established.
So this will be the centric public we wish to go for. All of them will be included. No, our expectation is within controlled rates where with something of around BRL 30 billion, which already brings about a significant impact with regards to the default operations in the back.
If I could add to this, maybe talk about the default and capital growth, we are -- have an adjusted equity, as we said. And for 2027, you see that some -- you said that some accounts are considering with the recession, but we consider, of course, with slower growth but not a recession. But we also have to take into consideration, we are beginning a process of reduction of our interest rates. We already have reductions, and we're expecting yet another cut, many economists who are thinking about 13.75%. And this whole phenomenon we are witnessing happening exactly in the worsening for personal loans. Part of it is contaminated by the rural loans and this ordinance 1,376 will allow us to reduce the impact on our financials flows for the producers through this ordinance, but there was also a very specific issue, especially with the PFD PFE clients.
And therefore, we held back, we had a new program of installments, automatical installment of these bills, of these payments but we closed the slide because we saw there was an excess leveraging. And the environment is now a bit more restrictive. So we are very conservative, so to speak. We are making the necessary adjustments. And we have the lowest unemployment rate in the history of Brazil. So we believe that this is a matter of time for these default being reduced in time. And we also have government programs which also supported us to improve financial situation of personal loans.
Many of these individuals were leveraged and others that had to do with the -- unfortunately, the bets or the online betting systems. So we believe that to 2027, since we are focusing our growth on the payroll loans and private loans, we believe that we will bring things back to the portfolio performance and to the levels we had before. So you see that this is something very focused and the adjustments we made with adjusted risk for this portfolio. And considering the other indicators, we continue with our results working very well. Our results are very positive. We have a growing margin. We have had also some -- we have been very careful with our credit mix. And also our fee income has been growing also. And we maintained our forecast of our guidance with operational efficiency.
We have the best efficiency rates in the market, and we continue to support this indicator. And as we already said, we reduced our losses and we have been working in the sense and I guess everything at a day will -- in a more structured manner contribute to our common equity.
Okay, Daniel. So at the end, First of all, we have a strategy of individuals, and we were always very clear saying that we want to leverage the portfolio to boost profitability. It came, but the risks were higher, but there is no problem because we are making the necessary adjustments to channel that in more secured lines while preserving profitability. I mean risk-adjusted profitability. SMEs, we are leader again in the process in terms of settlement guaranteed funds. We were engaged in the derisking movements, as we mentioned to you before, but this quarter, we resume our leadership position in terms of government lines earmarked to small and midsized companies.
So this is work in progress. Obviously, with our LLP level, this impacts our capital, certainly. But when we look at the longer term, the management is making all the necessary measures to preserve the sustainability of the capital so that the capital is enough to support our activity, support the growth that we want to deliver. Therefore, we are making adjustments to our portfolio. We are channeling the loan loss provision numbers into the guidance. And at the same time, we will then generate more capital organically that can then feed the process.
I mean, we are also taking inorganic measures. You saw that we revisited our hybrid instrument. We were supposed to return BRL 1 billion in July. We renegotiated, we returned BRL 100 million. The schedule is expanded with one big installment at the end of 2029. And if need be, we will certainly take other measures. But for the coming years, we have this very well designed curve with all the measures in place to help us maintain a very robust and sustainable capital margin so much so we can extract more business out of the organization.
Our next question comes from Renato Meloni with Autonomous.
I would like to continue that conversation on common equity, your organic generation capacity is limited. So I would just like to understand what time line you anticipate a recovery even though you have enough common equity, it does not accommodate a deterioration of the scenario. So among all of the other inorganic initiatives to generate capital, what are you looking at like dividend reduction, divestments or anything else that is on the table right now.
Renato, please explain to me why you say that is not accommodating because in our estimates, we will continue to be in the range of 11% CET1. So what are you saying that my capital generation is not -- does not accommodate that. I know that we are -- we can buy the volume of provisions, but we are -- we have some organic capital gain. We are still at the level of minimum payout by law. I just want to understand your concern when -- where do you see the problem.
Okay. According to my estimates, I believe that the bank will reach the guidance this year, assuming an improvement next year. I mean the CET1 might not change that much. I've heard comments from peers and from other economists that say that there is a chance of further deterioration of the economy next year, and so this will lead to higher NPLs. And because you need, I mean, a continuous improvement so that your CET1 will remain at the current level. If this does not occur, capital may go down, common equity should go down. And in terms of agribusiness, some people are also referring to the El Nino risks throughout the rest of the year, and this could be another relevant factor.
Well, thank you for giving me a better context. In our base scenario, our view is slightly different. As I said before, we are assuming a 1% GDP growth next year. And then about the El Nino issue, I think Gilson can give you more details about that. But in our view, we will continue to deliver organic growth with improvements as 1,376 provisional measures allows us to reduce the average risk of that portfolio. I mean everybody knows that what is in fact hurting the CET is the agribusiness portfolio. And -- but at the same time, we are tractioning other businesses from our conglomerate to help cushion that if you -- I mean, considering that in provisions, we had BRL 37 billion.
And at the same time, we are giving back BRL 7 billion in profits. I mean, I know we should be able -- we wanted to deliver more to our investors. I mean, ROE is still low, but I believe that we will go through this meteor that has hit us. But it's part of our structure to generate results. But eventually, if we encounter a more pessimistic scenario because of El Nino or because of the worsening in the Brazilian economy, increasing unemployment. And so this would be a more negative outlook starting in 2027.
And I would like to remind you that Banco do Brasil has a very bold asset structure that allows us to see where we can get further improvements, be it through RWA improvements or generating results that can probably create -- add more inorganic growth to support our capital structure and preserve our capital structure. It's important also to say that we are now concluding all of the processes related to the adjustment to this new measure. Part of this capital was used to comply with prudential adjustments. I mean it's the regulating body demanding from the bank. So it takes some time for us to get everything in place. If it were not for the agribusiness portfolio, maybe we would be in a totally different situation, but everything is according to plan, and we know what variables to move to improve that CET1 going forward. But for 2027, this is not the reading we have. We are not anticipating any capital constraint going forward towards 2027.
Our next question is from Bernardo Guttmann with XP.
My question is about private payroll loans and also individuals guidance. I mean the individual portfolio was up about 4% in the last 12 months when vis-a-vis the guidance that was in the range of 6% to 10%. And private payroll loan which was an important driver picked up and expanded in the quarter. And at the same time, delinquency in that same line was up. Was there any adjustment in terms of your risk appetite for this portfolio? And what sustains the maintenance of the individuals portfolio guidance with this new level.
In the case of private payroll loans, we grew and there was a very positive opportunity for the bank because we have extended experience in public payroll loans. And throughout the year, we are developing a -- there are many new measures that will certainly contribute to the reduction of this NPL. And once the NPL is down, we will be able to grow again. And I would say that the two main elements are now being deployed. One was just introduced now and allowing us to link FGTS as a collateral, and it started in June.
With that, we will be able to have a more effective guarantees, especially in cases where there are some firings or dismissals. And then in that case, the borrower will cease to pay both in terms of regular contributions to FGTS and also related to job termination penalties. And maybe one of the most important measure is the possibility to move that to the new job, meaning portability, this delinquency in most cases, it's not due to the fact that the employee lost the job and it is still unemployed. I mean unemployment is low, but the turnover is very high. So when an individual leaves the old job, it moves to the new job. The debt is not carried over. There is some time until that happens. It takes some time.
So starting at the end of this month, the process will be automatic. So let's say, I leave my job because I was either fired or I chose to leave. The discount will be calculated within the margin. And then the new loan will be debited to the new account. And with this restructuring, we will be able to get things at an acceptable level, considering that turnover. And then we will be able to deliver up to the guidance while at the same time, we will grow in this portfolio that, in our view, it's very positive to the bank.
And if you allow me to add something else, we grew over 127% in that line, starting from scratch. Now we are #2. #1 is Itau. We have BRL 15 million in our balance. So growth rates is just naturally come down. But as I said our focus will still remain payroll loans, both public and private. And what Gilson said relates pretty much to the DataPrey system that is currently being adjusted. And there was a spike in delinquency. I mean, sometimes, the borrower cannot afford to pay for the installments. But in this case, the situation is different because once the payroll loan migrates to the new employer, so the payments will be resumed normally.
And there are also other credit lines like mortgage secured loans, mortgage secured loans will be our focus in the second half of the year. Also, auto finance. As I said, we grew almost 50% in terms of our disbursement in our portfolio in July alone with the new lines of BB Move. And so I think this process will continue for another 60 days. So the auto portfolio may even reach twice the volume we had in the past. So these are all new opportunities that allow us to be more confident that we will deliver to expectations in terms of individual loans. So more secured lines and less risky lines. And this corroborates to the improvement in that portfolio.
We have Tito Labarta from Goldman Sachs.
Following up a bit on, I guess, provision levels and the potential recovery because you can see a scenario where you reached the top end of the provision guidance with modestly lower provisions in the second half of the year. But a couple of questions on that. And thanks for disclosing the Desenrola renegotiation. Was there any benefit on the provisions this quarter from Desenrola? Was there any offset to get to the bottom line on that?
And then thinking about the recovery into next year, can provisions continue to decline in 2027, just given some of the concerns on the macro level, right, individual NPLs going up, I expect certainly some recovery from where you are today. But just to think about 2027 is also going to be a challenging year, at least from a macro perspective. And we think ROE, we're running in the high single digits. Any visibility on how quickly that can improve given some of the concerns about macro for 2027?
Thanks for the question, Tito. I think the biggest challenge we have for this year is effectively around the provisional measure 1,376. It will depend on how many clients join this restructuring program. And this is our biggest challenge, and we will look forward on achieving the volumes we want to restructure. And once we achieve that, we believe that 427 on we will be able to account a lower cost of risk. We know that our cost of risk is above 5% is on average due to this increasing default in the agri book. So as long as we focus on growing less riskier loans in the individuals book, we are able to restructure the rural portfolio under this provisional measure. And we will seek 427 on to reduce the cost of risk below the 5-ish level, we would be aiming at a 3.5% average cost of risk for the full portfolio. On average, our peers, they are working on that level of cost of risk, but this is something that it will depend on how '27 unfolds, okay? But basically, that's what is in our mind regarding reducing other risk of the whole loan portfolio.
Just can I ask just one quick follow-up on that. Would that come with a lower coverage ratio because that's been one of the concerns, right? We've seen coverage come down a little bit. Do you need to consume a little bit more coverage to get to those levels? Or do you think coverage can increase next year?
No, we don't work with the assumption of reducing coverage ratio. We will try to balance that in order to guarantee a sound coverage for the risk loan book. Ultimately, we believe that as long as we perform well on restructuring the program under this provisional measure, okay, we will be able bring a normal performance for the whole loan book. And this will become clear by the end of this year, okay?
I'm sorry, just the Desenrola impact, any color on that? .
Sorry? I couldn't.
In terms of impact on provisions, Tito, it's not material, neither in delinquency as well.
It's a nice program, Tito, for our clients and the development of our individual loans portfolio. But in terms of provision, there's no impact.
Our next question comes from Gustavo Schroden from Citibank.
I have two follow-ups. First, to help us understand how the provisional measure will help us effectively deal with the LLP for the second quarter since you seem to be very confident. We have maybe BRL 100 billion in terms of addressable amount as you have presented. And Gilson also stated that of this BRL 100 billion, around BRL 30 billion, if I understood correctly, it will be renegotiated. So how can we consider the whole mechanics of this BRL 30 billion going through the bottom line and the earnings and reducing our LLP for the second quarter, is it will be a reversions? Is it a reduction of credit indicators that the bank would not need to do in terms of the provision that it is currently doing.
So this is important because we could have a better understanding in order to maintain the confidence in the guidance. I guess we have -- we're talking about big figures here, and it will be maybe worthwhile go into detail. Another issue that I would like more explanation. We have had many questions in terms of increase of the NPLs for credit cards. We had an NPL of 90 days of 7.1% to 14.6% for the quarter. So that's a large increase. And I do understand that a part of this is related to the rural loans. So could you maybe give me a breakdown of this increase. How much is it worsening, mass worsening that you actually refer to? And how much is related to rural loans. And if in this recovery plan, through the provisional measure 1,376, if the rural part that is included in the credit card will be included in the renegotiation efforts.
So this is a very broad question, Gustavo. Reversion will happen in two ways. First is with an expectation of reducing the NPLs that we will be able to see in this next 6 months, we presented in the results for the first quarter month by month in 2026, we will increase the numbers of financings that are due that were already hired under the new resilience matrix. So we still have a high percentage that is already contracted. However, you can see in June, we had 31% already under the new resilience matrix.
In August, we have 35%. And this number will reach 57% until December. So our first expectation is that under this new matrix, we will already have a reduction of our NPLs or the normal NPLs of our operations. Second, the fact that we have this NPL or provisional measure to see what will be included or not. We already make it clear for the whole set of farmers, what are those that could be included in the renegotiation and which are not included and which ones they will have to pay, the provisional measure will not include any type of resource of the individual loans. But what is the logic, let's say, a farmer who is owing a rural credit and also in the credit card, if they are able to regularize the payments, we will also try to renegotiate the damage on the card because they cannot remain delinquent because they will not have access to new operations and they will not be able to participate in the Safra plan or on the crop plan.
So one thing will entail the others. As I said before, we are beginning a contact, a contact even before we started operations, which we hope the ordinance to actually happen between today and tomorrow regarding this provisional measure, at least this is our expectation as soon or even before we start operating, we are already getting in touch more than 31,000 clients that could comply or be eligible for the E&P. And a great part of these are the delinquents. So as I bring these delinquent clients, especially the short-term delinquency and also the delinquency that happened since the beginning of last year, which has been impacting our balance sheet, our results, I believe that through this, I will be able to revert a good part of this, not everything because the operation is ongoing, and we will have to be able to do some reversion, and we will continue with a collateral or maybe some type of down payments.
So I can show to the regulatory agency operation by operation that, that client does wish to stop that operation or become due -- so this reversion will not be total, but it will support among the BRL 31 billion, of which BRL 6 billion we have in terms of NPLs as a good part of this is regularized, we will be able to revert part of the provisions. So these are different actions taking place at the same time. I would like to reinforce one case here, Gustavo. With regards to agri business, or the agro sector.
When we look at the last maybe three to four crops, we see an increase in production and we see an increase in productivity. So this is something that you cannot have an increase in productivity and area -- planted area if you do not use inputs and to have inputs, you need resources. So even though we have all these difficulties in the NPL, our agro business is resilient.
If we look at the other articles published, we can see how much the agro sector has capitalized, especially when prices were good. What we do have, and this is something we have been saying since 1,314 provisional measure is a lack of liquidity because part of that capital was -- the producer had -- the farmer had to have a greater -- seek greater financing at a higher interest. And we're talking about the whole set of farmers. It's not that they are lacking capital, they don't have liquidity. And our expectation is that, first, with 1,314 provisional measure, even though there was a deadline, there were free interest rates. But now with the 1,376, we have a lower rate. We're talking about rates of Pronaf that will go from 5% to 12% for the major producers or major farmers.
So we are able to have an improvement in our horizon in terms of the payment ability, not only with regards to time, maybe 8 to 10 years, but also the cost of the resources. So through this, we hope that these producers at least some ones that wish to renegotiate and to have access to credit and continue and produce not only with Banco do Brasil with the whole set of financial institutions, we'll try to regularize their situation, and we will continue with this perspective -- this growth effect in production areas. And Brazil, of course, is the potential has been showing its capacity.
We will have maybe focused issues, yes, that might happen but our expectation in the agro business, considering the whole cycle is a recovery. Some will recover faster, others will recover a little bit slower. However, we do believe that this business, the rural areas will continue with the portfolio with better collaterals, better guarantees, but growing and advancing in this chain. And this is essential for our GDP. And adding to what to this to help you model what is happening. First, our execution capacity. I guess 1,314, it's not even 1 year old. It shows the whole ability of execution that Banco do Brasil has in order to present all these renegotiations and to put them into practice.
Second, our strategy, our strategy is set in such a manner that we will improve our credit capacity for the producers, so there will be down payments. These will be operations that will have a reinforcement of the collateral -- so that we are able to migrate from the different stages of the loan. And this is when we see the positive effects coming into play. We see a reversion in provisions, we will be able to accrue these operations. And for most of these operations, we are not accruing for them. So I will renegotiate with a lower rate. And I also have the accrual today, I am not able to perceive in my profitability in my earnings.
This will create a positive effect that will be part of our LLP converging into guidance and consequently in our earnings. And at the end of the day, and this is the topic that we certainly discussed with you with market in general, and I've seen all the reports that you have discussed from yesterday to today. In our common equity, we know that today, we have less DTA and therefore, I will have a smaller consumption of our equity. Just to give you an idea, to every BRL 1 billion renegotiated, we have an expectation that this will be something around BRL 150 million and BRL 200 million through our final results, our bottom line.
So this is considering both our NII in terms of the accrued, but also reduction of our credit costs.
Yes. Yes, correct. This is the global -- our global account and we might maybe help you reach these figures in detail.
Now I would like to invite Yuri Fernandes with JPMorgan.
Sorry to go back to that question. But my understanding is that if you have a default payment or if you get further guarantees, maybe we could see some provision reversal. Basically, that was my question. I used to understand that you needed payment not only of the guarantee or the collateral, but that could also help.
And my other question is about capital. When we look at common equity. And Geovanne mentioned that in the podcast, there was something coming from Previ. Could you explain to me why this happened just now or whether we should see any impact coming to shareholders' equity.
Can you explain the topic on the reversal? And then I will do the rest. Okay. Yes. renegotiations, the strategy is in place. It's not already out, but it will start with the down payment and this complies with 4,966 and I understand that this is proprietary. And in addition to that, we also add additional collaterals. So it's a combination of all that, that may generate the migration to other stages. And as a consequence, the reversion of -- the reversion of provisions with the additional fact that I can also go back to accruing the interest. Yuri, as a reminder, when we had the 1,314, we were mainly referring to transactions and operations that were delinquent.
So the LLP dynamics is a bit different that Prince just mentioned. Today, we are focusing only on those delinquent transactions. Most of them find themselves on Stage 3. But both the big collateral and then the down payment improves that farmers' risk profile and also expected losses. There are improvements in many fronts. And all of that, dialogues with this potential time reversal just to give you a new perspective.
And now I turn it over to Geovanne to talk about capital and the effect of the rate.
In fact, Yuri, you all know that we have other post job benefits that we have to recognize in our balance sheet and then drew some expectations. And when you talk about pension funds and health care plans, we have assets that can back up these plans. And in the more specific case of Cassi, Cassi is our health care plan. This health care program does not have guarantee assets. And the reason for the adjustment was a one-off thing. And why do I say that? Because historically, the bank had been conducting all the calculations and bringing into present value discounting at a rate where we came up with a basket of currencies given the long duration of that liability. And all of that had been duly calculated and also agreed with the Central Bank, the regulating body.
This has been done some time ago. But now under this new management, the Central Bank has a different understanding. The Central Bank believes that we should discount everything based on NTN-B from 5 years ago. So there was a whole new conversation in technical studies back and forth, and we try to explain. And we even ask for the delayed implementation of that discount rate, starting in January of next year, given the current moment when we are trying to recover from agribusiness losses. But you know we have to comply with the regulator just as I mentioned during our podcast. So their view is that we shouldn't do it now. And so that's what we did.
And therefore, the 18 percentage points that was down from our BIS ratio is part of that conversation that started about 2 years ago, and then if you go to the explanatory note, #28. You will see that our discount rate was around 9, 9-point-something now, it's at 8%-8.5% for all of our post job benefits. And for those that have guaranteed assets, we do that reconciliation. And then when we calculate capital or the common equity on note #30, we make the adjustment. Basically, the adjustment you mentioned stems from our health care program that doesn't have that backing asset. Did I answer your question?
Yes, that was very clear, Geovanne.
Our next question is from Eduardo Nishio with Genial.
I just have another follow-up on two points that were previously mentioned, but I just want some more color. First, credit card delinquency, which almost doubled. There was an improvement trend, but it went from 7% to 14.6% in this last quarter. Could you please explain what happened? How come that increase was so steep and whether it's concentrated in some specific profile. You talked about bandwidth business and its profile. But I think -- you didn't specify during your comments. Also, if you can give me some more light about the trajectory of the NPL, whether the peak has been reached in the second quarter or whether you still see any worsening of that portfolio.
And my other follow-up is about El Nino. You just mentioned it, but you didn't elaborate further in terms of what are your projections for EL Nino? According to experts, they are saying that the impact will be stronger in 2027. So I just want to know whether you're expecting a heavier impact for next year in 2027. And whether in your credit models, you already embedded that in that credit guidance if you already included your expectations for the agribusiness sector.
Nishio, in fact, I will talk about credit cards and then my colleagues can talk about El Nino. We've been telling you about the contamination of credit cards, especially in the individuals portfolio, especially coming from farmers. But what really caused that spike is that we were paying attention to household debt increase. But there was also some one-off event in our case. Our strategy to face this lack of value in rural side should be individuals portfolio.
Our focus has been on payroll loans, but we also adopted off also other strategies for the credit card segment in the high-end segments, which would be the Altus Liv where we increased billing BRL 127 million. But there was also a very one-off effect for D&E income bracket clients. And we also included automatic installment payments for these statements. In the first quarter, we noted that clients were engaging in automatic installment payments. So we -- there was a lag for this segment D&E of the population. So then we took measures saying now, in order to pay installments, you have to come up with a down payment. And therefore, we had to make adjustments in customers that in January, February and March engaged in automatic installment payments without any down payment.
And so risk was aggravated in those cases. And so we put them in our NPL portfolio. Basically, this is the effect. It's a very one-off effect. I mean this is certainly delinquency because if they were just paying installments without paying, they were not paying, they were delinquent. Therefore, we want to go back to what we had before. So we are no longer allowing them to pay installments automatically, so they have to start paying a down payment first. So we said, okay, this didn't work. We wanted a change in mix, focusing more on individuals. But in the credit card line in particular, we put a stop, especially for D&E income brackets of the population.
But the main factor because of this automatic payment in July, we are already seeing some normalization in this line. So this is the explanation issue. Eduardo, yes, we are very concerned, and we are closely monitoring the effects of El Nino. We have 280 experts scattered throughout the country, analyzing in real time what is happening in the field. And also drawing up expectations so that we can provide more structural loans. And we are including more insurance like Pro-agro or regular insurance. I mean we look at drought tendencies especially we are now involved in irrigation programs. There are some government programs, Proirriga and other programs that contribute. And also no till planting that reduces losses when there is a flood. But one important aspect of El Nino, when we look at the track record of the last 20 years, whenever we had El Nino, the effective loss in yield in the country was not very large.
I mean it is big when we look at a particular region or when you look at a certain crop at a certain moment. But when you look at the entire agri business and livestock production. What losses you have in one region maybe is mitigated by bigger yields in other areas. We are closely monitoring that, but we have to continue funding the production because if we stop that, there will be an even greater impact in income generation. But certainly, I can tell you that we are being much more careful now, we are looking more at the ongoing trends for all of the different regions, and we have our experts monitoring that very closely so as to minimize the impact in our loans.
We are not only the ones doing that because farmers are professionals, and they are also doing things to mitigate the effects of El Nino. In the Midwest region of Brazil, the forecast is that there will be water scarcity during the El Nino period and farmers are receiving advice from Embrapa, from the bank, and they are getting prepared to anticipate their planting season, anticipating harvest as well. When we look to the Northeast, I mean, with El Nino, they might suffer from aggravated drought and they may anticipate the off-season period. I mean the safrinha period, not only the bank is being prepared, anticipating and getting prepared to face possible issues, but farmers are also getting prepared.
When we look at the south of the country, the problem is the opposite because they will have more rainfall. So that's the trend. We know that this has happened in the past. So the trend is for greater rainfall during this period. So these growers are also getting prepared, being very mindful of planting windows and harvesting windows and also being very choosy in terms of what crops they will plant. Therefore, this involves preparation on both sides. And this is also a moment not only because of El Nino, but when we noticed that the margins of several of the agribusiness and livestock growers are different. So it's very crucial that growers work based on a lot of planning. They have to economically analyze what acreage has the lowest cost. Where should I invest more or less, where -- if I have lower margin, should I -- where should I plant this or that?
And El Nino aggravates this responsibility to plant. If this year, I will have more rain or less rain. Should I plant the off-season crop or maybe a winter crop or how much I will plant, what are the mitigating factors that growers are looking at to reduce their risk. And Tarciana said it well, it's not just an exclusive action on the part of the funder, but this involves the entire chain that works in the agro business sector. And then we take all of these assumptions in issue, and we feed our credit engine. But in terms of 2026, this is already embedded in our LLP guidance.
And for 2027, this is also part of our preparation process in terms of credit granting. And certainly, the impacts are part of our appetite. And with all of the projected impacts, we adjust the appetite to instigate this discipline in growers. And as a consequence, all of the allocated capital should return to us and then our loan loss provision will be lower for 2027. So everything is in place. I'm sure that 2026 is already contemplated in our guidance. 2027, it's already engaged in the concession model or the loan granting model, and this will help us make projections vis-a-vis the performance of the day-to-day operations.
So for the '27, '28 season, we will look at loan loss provisions with a 3-year horizon.
Moving forward, Mario Pierry from Bank of America.
I would like to focus on the net earnings, you maintained the guidance. So I know that in the last quarter, you had a downward revision, and maybe you didn't want to do that same review. But when we look at the quarter earnings, for first quarter, BRL 7.3 billion with a fiscal benefit of BRL 1.4 billion. It will be maybe difficult for us to reach the year's guidance. So I'd like to better understand what do you believe would be the adequate for the quarter?
And also, what are you expecting for the third quarter if it also depends on the provisional measure of 1,376. But we're already halfway through August, and the execution hasn't even started. So what are the benefits for this provisional measure if they will be -- maybe have a greater importance for 2027. Therefore, your ability to deliver the guidance for this year maybe will be later on for 2027.
Thank you very much for your question. This was a topic that we internally discussed and we do believe in our ability, especially if we consider how we -- as it said 1,314 provisional measure. We had, as an aim to renegotiate 12, and then we guided that maybe 20 would be ideal, and we restructured more than BRL 30 billion. Of course, the focus there was to recompose our equity because CGPAs already -- that first plan was already ending, and we needed in some way to allow this endorsement or else, yes, we would be in the scenario that Meloni presented in terms of more critical equity situation.
However, the whole issue is that I cannot say exactly what we will be able to execute because it, of course, it depends on the adherence and compliance of our clients, that basically, the second quarter was more of a moral risk, the farmer, the producers were all waiting for the discussions that were happening within our Congress in terms of a new bill for restructuring. And these discussions were extended and the government decided to issue this provisional measure. We are just waiting for specifical or specific negotiations, and we believe that we will have maybe in August and September to expedite this process. We have, and we're now just waiting for the clients to adhere.
So we decided we're first to see how we're going to execute the whole plan. If we do as well as we did for the 1,314 provisional measure, we already have this history, it wouldn't be necessary to make this adjustment now. As Prince also said, we also have an important part of this portfolio that today stopped accruing interest, and we will go back to the margin. The Central will go back to our margin. This will have a beneficial effect of more earnings. Therefore, in terms of also rates and taxes, given the volume of provisions, we have fiscal losses, and this is a point that we are already taking action to deal with and the rate will continue positive due to the scenario that we are living.
But this guidance is more for the lower end effectively and the same way that the provision guidance is on the higher margin, around 70%. This is how we are working, and we will do our best so as not to make the guidance adjustment. So this is something we will talk about when you think about results of the third quarter. But I remind you that this -- it's like a guidance. This is our compass. It's already our commitment in which we wish to reach. And this is important for us to also guide our network. And this is what we are working with and what we want to deliver to you. So that provision on the higher end, profit in the lower end. But there is a risk maybe eventually if we go above, yes, but in the worst-case scenario, the deviation may be 5%, 6%, is still early to make this assumption.
But we will maintain this guidance, and we will do our best to deliver this. And Mario, also in terms of our dynamics, as you said. We are already halfway through August, but we might be able to feel the impact of these measures on the fourth quarter. The third quarter will also be subjected to this follow through, and we will see a greater reduction on the fourth quarter.
Now we will follow the next question is from Henrique Navarro from Santander.
I guess there are different technical points that my colleagues have already covered. So my question will be more on a conceptual basis if we consider the second quarter, there was a worsening in different segments in terms of NPLs or delinquency. Even though this worsening has to do to the coverage index dropping. And we don't see changes in stages that are worsening. And I believe this is based on the Banco do Brasil's expectation that after the provisions that will be necessary for the second quarter will be smaller, that things will improve, that is. And much of this improvement is based on the provisional measure that will improve the receivables.
So my question is as follows. If we analyze this provisional measure, it will not be considered as a subsequent event to the second quarter because it was published on June 15 and maybe 1 month later, it still hasn't actually had it. There is no yet tangible impact that we can truly consider as a structural improvement because of that provision. We are not there yet. And there are also worsening in other segments that are not related to agro and you very well explained the whole issue of contamination that Agro has contaminated the portfolios and that improvement in agro will also bring about a general improvement. But my question is, given what we see today, and according to a more conservative accounting idea, wouldn't be the correct thing to do to actually recognize, acknowledge this worsening and therefore, make a provision to consider this impact and having a positive impact in the future, everything, of course, is still conceptual but it might happen in a certain way, having this positive impact in the future maybe do a reversion of provision.
So this is more a conceptual question in terms of an accounting principle of being conservative. And what was the decision that guided you not to do that, that we'll consider all the worsening we see in NPLs. So that's my question.
Thank you. Well, Navarro so I guess here, we have more of a timely manner that might be bringing you to that conclusion. There is no provision that was not done by the contrary. What we said is that for first quarter, we did have a specific case of a portfolio for outstanding companies, and we anticipated based on the expected losses that were already an indication of a worsening of our individual portfolio for the second quarter. So if we were to add the quarters, you will see that the new NPL is duly covered, including in the Agri business, we have a coverage that is above what we had in terms of the formation of the new NPL. The coverage exists exactly to give us the ability to deal with adverse moments such as the ones we are now dealing with without having the need of generating any type of volatility in our statements.
So all the losses are duly acknowledged. The models are adequately calibrated and the reduction in the coverage of the new NPLs specifically in the individual portfolio already happened because I already acknowledged it in the first quarter. So we have a step forward and not backwards. So whatever the results of the provisional measure is something that we are dealing within our guidance. This is within our perspective of modeling, depending on our performance and the performance is what we have already proven. If you look at 1,314, we had BRL 38 billion in negotiation in 4 months.
Therefore, we have the ability of allocating these renegotiations in these 4, 3.5 months that remain in 2026. But in no way, this is applied in any kind of reversion or reversion or changes in our modeling. This is included in the perspective balance to be accounted for in terms of provision with an impact that will be exclusively on the guidance. There is no interference in our daily operations in terms of provisioning. And even less so, we did not revert anything as an expectation, a future expectation of having future earnings or results.
What did happen is we identified proactively the worsening of this portfolio, and we did the adequate provisioning during the first quarter. And this is from this point forward, this is the way that you will see things happening, where we might see a change is what already referred to in the previous questions, which is the actual execution, realization of MP 1,376 according to the models that we are establishing where we will privilege down payments, collaterals and the full resolution of the payment ability of the producers or farmers. And this is subject to an assessment process. So let's see this producer has recovered their payment ability, and then I will do the allocation in the different stages and consequently, with an offset of a provision or not, I will go back to the accrual and results.
This is a process that will be very brief and we already have all the metrics ready to go. And from that, we will have the execution strategy as a result. So we wouldn't talk about subsequent events or anything of that sort because we did not acknowledge any type of benefit. We did not account for any kind of act before the egg is actually laid.
[Foreign Language] The question is now on the corporate portfolio. We saw some portfolio growth, mostly concentrated in the government. The first part of the question is, how do you see the evolution of this corporate portfolio. And as part of that, we also have the release of the over 90 NPL, which was up a bit. But we don't know exactly what led to that, whether it was large corporate or SMEs. So I would like your help to understand how this SME portfolio is performing with and without the grace periods given by the government. And how do you expect that evolving further? And what about NPL provisions.
Pedro, it is always a pleasure to talk to you. Thank you for the question. First, we don't see any deterioration in the large corporate segment. So this segment is performing well in the risk/return ratio. And in terms of increase in NPL is that we -- I mean, we saw some reduction in balance volume with large corporate. This comes from a process of maximizing risk-adjusted returns, meaning that we are channeling these large tickets to capital markets, generating fees, thus consuming less capital. This is part of our strategy.
So what was different vis-a-vis our projections. We expected to see a stronger engine from the capital markets this half year and even in the third quarter, anticipating that a bit due to the election year, but as the media has already released, the market is performed below expectations. So risk is in place, and the result stems from this process of capital allocation and profitability. Delinquency or NPL in very small and small and midsized companies. We were already moving towards the process of accommodating risk. And we've been telling you about that since the beginning of 2025. What has changed? I mean we understood, I mean, and we also had to sacrifice part of that portfolio, even in government lines.
So we made a change in the profile. We had 30% of the portfolio backed by government lines. And now we have 40% of this portfolio secured by settlements guaranteed funds. So FGI and FGO in the second half of the year, we are now leaders in disbursements in both lines, FGI and FGO so that we can conclude this accommodation process of the risk. So where do we see growth in delinquency. At the top of micro and small midsized companies in the low-middles. So companies that gross between BRL 50 million and BRL 200 million, they are struggling a lot because of the macro landscape and the level of in-court reorganization hit a record in the first half, and that's where most of this increase in delinquency in the corporate portfolio is found.
When you compare first and second quarters, we are not expecting any additional surprises because now we see a process of monetary flexibilization or -- and we are working closely with these clients, offering liability management opportunities to allow us to ensure profitability while at the same time, we mitigate the risk, including that equation of adequate risk-adjusted returns.
So large and corporate, constant management on a case-by-case basis, always respecting the best risk return equation in the middle segment, we are closely monitoring that to stabilize the risk, which is higher now, but I think the entire economic structure will help and small and various companies focuses on the government programs. And I would just like to add one more point. Let's have here, there was a resolution of a major wholesale client, and that's why from December to March, we noticed a steep reduction and there was like a 0 effect on expected losses but there was a balance between provisions and discount. And that's why the indicator was down less half year. But now we are seeing things in a more normal trend.
Now moving to the end of our live streaming session. I would like to call Carlos Gomez...
Thank you for your generosity with your time and always for your transparency in your numbers. So I have a question about the adjustment of assumptions for Cassi. It's a very large impact, I calculate about BRL 13 billion gross. Is there anything else that you have to negotiate with the authorities that might have something of this order of magnitude in the future, something we should know about? Do you need to adjust this in the future? And finally, is this directly impacting capital or there is any particular dispensation regarding this adjustment? And one more thing on capital. Can you give us the impact -- the capital impact of Resolution 13 -- sorry, NP 1314 as of the second quarter?
Thank you, Carlos. Basically, it was just the adjustment of the discount rate in order to bring present value of this liability, the Central Bank required us to adjust the rate we were using instead of 9.70 something, we are now using 8.5%, and that's it.
It should run, Carlos, close to the NTN-B from now on. So you should monitor that, okay?
It has to be adjusted every 6 months.
And the window of change every 6 months, correct.
And the impact is directly in the equity, okay?
On the iimpact from MP 1,314, we had roughly 100 bps in capital, considering the two quarters where we have disbursed the operations. So close to 100 bps here in positive effect in CET1.
In the second quarter, Carlos, only in the first quarter, as we mentioned in the previous call.
Initially in December, it was 144 basis points, if I recall correctly. .
Yes. Total was 140. So begin in December and ended in the first quarter. [Foreign Language] Thank you all very much, and I wish you all a very good day. Good morning all.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]
Transkripte auf Deutsch freischalten
- Alle Event Transkripte auf Deutsch
- Sofortige Übersetzung
- KI-Zusammenfassungen für die wichtigsten Insights
Banco do Brasil ADR — Q2 2026 Earnings Call
Banco do Brasil meldet Q2-Ergebnis mit operativem Fortschritt, aber hohem Kreditrisiko im Agrarsektor; MP 1.376 soll 2H‑2026 Entlastung bringen.
📊 Quartal auf einen Blick
- Reingewinn: BRL 3,9 Mrd. (+13,9% QoQ; +3,3% YTD)
- Nettozinsertrag: BRL 27,5 Mrd., weiter Treiber durch Kreditmix
- Aktiva: Ausgeweitete Kreditportfolio BRL 1,3 Bio (+1,5% YoY)
- CET1: 11,27% (Juni)
- Gebühren & Erholung: Fee‑Income +≈5%; Verlustrecovery ~BRL 2 Mrd. (+51% QoQ)
🎯 Was das Management sagt
- Kreditdisziplin: Fokus auf resilientere Kreditstruktur, stärkere Besicherung im Agrarsektor und verbessertes Inkasso
- Digital & AI: Ausbau analytischer KI‑Modelle (+28% in H1) zur Effizienzsteigerung; AI in Renegotiation erhöht Conversion x6
- Konzernstärke: Mehr als 80 Konzerngesellschaften liefern ~52% des Gewinns; internationale Präsenz als Hebel
🔭 Ausblick & Guidance
- Guidance: Management hält Jahresguidance; erwartet Entlastung durch MP 1.376 in H2, volle Wirkung eher Q4/2026–2027
- MP 1.376: Bis zu BRL 100 Mrd. adressierbar, Bank erwartet initial ~BRL 30 Mrd. realistisch umzustrukturieren
- Kosten des Risikos: Aktuell >5%; Ziel ~3,5% mittelfristig bei erfolgreicher Umsetzung und normalisierendem Makro (El Niño‑Risiko bleibt)
❓ Fragen der Analysten
- Provisionsmechanik: Wie viel wird rückgeführt? Management sagt Teilreversion via Down‑Payments, Besicherungen und Wiederaufschreibung von Zinsen; BRL 1 Mrd. umgeschichtete Wirkung pro BRL 1 Mrd. renegotiated ≈ BRL 150–200 Mio. Ergebniswirkung
- Kapital / CET1: Sorge um Kapitalstand; Management erwartet organische Erholung und hat hybride Tilgungspläne angepasst; ein einmaliger Abgang durch Neubewertung der Pensions/Health‑Verpflichtung (Cassi) traf das Eigenkapital
- Delinquenz Kreditkarten/Privatkunden: Sprung in NPLs (z. B. AA‑Segmente wegen automatischer Teilzahlungsregeln und agro‑Kontamination); Maßnahmen: Portabilität, FGTS‑Sicherung, strengere Voraussetzungen und Stopp automatischer Raten
⚡ Bottom Line
- Für Aktionäre: Banco do Brasil zeigt operative Maßnahmen (Fokus auf Besicherung, Inkasso, Digitalisierung) und hält Guidance, trägt aber kurzfristig eine Last aus dem Agrarsektor und gestiegenen Privat‑NPLs. MP 1.376 ist der zentrale Hebel für eine nachhaltige Verringerung der Kreditkosten; Erfolg hängt von Kundenadhärenz und makroökonomischer Entwicklung (inkl. El Niño) ab. Kapitalbasis gilt derzeit als tragfähig, steht jedoch unter Beobachtung bis die Neuverhandlungen greifen.
Banco do Brasil ADR — Q1 2026 Earnings Call
1. Management Discussion
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 3 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, Janaína. 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 her recovery, she is not able to join us today, but she's with us online. I would like to thank you all for joining us today.
But I would like to begin saying that a few weeks ago during our BB Day, we told you that transparency at Banco do Brasil is not protocol, but rather respect. It's our commitment to give you the more up-to-date information. And it is with that commitment that I would like to initiate our conversation today.
In general, I believe that BRL 3.4 billion in results for the first quarter still reflects the worsening credit risk environment. On the other hand, it was clearly possible to see the strength of our operation, complemented by the business generated by the companies within our conglomerate. We have been deepening these discussions with you around our strength, which are grounded in customer centrality and primacy, strategic execution focus and our commitment to delivering long-term results.
I would like to highlight that the evolution of our NII, up nearly 15% year-on-year, was driven by credit growth, diversification of funding sources and the appropriate allocation of our liquidity. Fee income was up by 5.5%. And here, I would like to highlight asset management, insurance and consortium, reflecting, I mean, the full synergy among the businesses within the conglomerate.
Our admin expenses remain under control without compromising our investments in technology and also without compromising our investments in people who make results a reality. We continue paving the way of our digital strategy. Business generation and business in Brazil continues to gain traction despite all of the difficulties. Our loan portfolio was BRL 1.3 trillion with a meaningful evolution of the mix toward lines with a better risk return relationship, especially when it comes to the individuals portfolio.
And in order to support the growth of our business, our CET1 remains at an adequate level. The growing relevance of the individuals portfolio is a -- it's a crucial vertical of our strategy, and we will continue at this pace emphasizing on payroll clients. In this regard, private payroll loans are still a big growth driver. We have reached BRL 17 billion in disbursements, while also maintaining our leadership in public payroll loans. We made consistent progress in lending to SMEs with growth in lines backed by settlement guarantee funds as Pronampe, PEAC and FGI, which reached 60% of working capital balance for these clients.
In agribusiness, we just concluded the BB Regulariza Agro operations within the context of provisional measure 1314, totaling nearly BRL 38 billion, enabling 25,000 growers to adjust their cash flow. And this was done with a lot of responsibility with 92% real estate-backed loans. We believe in the strength and relevance of this sector for Brazil and for Brazilians. And I reinstate that we will remain side-by-side with our rural growers. Proof of this is that under this crop plan through March, we disbursed more than BRL 150 billion.
Since last year, we have shared with you in details all the measures adopted to address the worsening delinquency cycle, such as revisiting our credit underwriting framework, the adoption of a resilience matrix with new risk and collateral criteria.
And in that context, in the '25, '26 crop year, 63% of operations with large growers have already been contracted with fiduciary lien structures. We review our collection workflows. We reinforce our teams. And in the first quarter of this year alone, we have already carried out more than half of our judicial collections completed throughout the whole year of 2025.
This is not just something simple, but rather, it reflects our commitment to recovering our assets. All of these levers were built intentionally, and they reinforce Banco do Brasil's a strategic credit management. In the first quarter, the cost of risk reached nearly BRL 19 billion. And when we project the scenario ahead, it is impossible to ignore that today, there are more uncertainties and challenges than when we started the year. The geopolitical environment has impacted the macroeconomic landscape directly affecting households, debt servicing for companies and the agribusiness supply chains.
Therefore, as we incorporate this background and its impacts, our risk models pointed to a worsening expected in loss dynamics for the remainder of the year. When we gave you the guidance in February, the expectation was to end 2026 with a terminal Selic rate of 12%. But today, our estimate stands at 13.5%. This certainly affects our clients and the risk environment, while also requiring greater caution in business management.
It is precisely by recognizing the depth of the cycle that we are acting with the responsibility that the moment requires. And I repeat, the current landscape demands prudence and prudence for this management team does not mean hesitation. It means having clarity about what needs to be done, and we are doing it with disciplined execution, rigorous capital allocation and a long-term vision.
Where the cycle required caution, we were cautious. But where we saw opportunities, we accelerated. And the example is in private payroll loan for workers in Crédito do Trabalhador, and this is reflected in the revision to the guidance ranges for cost of risk and NII.
It is also worth highlighting that given all these factors, the launch of a new program such as Novo Desenrola is extremely important for Brazil and Brazilians, restoring the financial health of families in our view, is crucial to normalize the credit cycle. And Banco do Brasil has been engaged in this agenda since day 1. We have already renegotiated more than BRL 1 billion in debt, benefiting more than 100,000 clients and more than 6,700 companies, considering the program's brands.
I would also like to highlight that we have already completed 90,000 renegotiations with individuals outside the program, totaling an additional BRL 508 million. This would be the extended Desenrola of BB. And this leadership reinforces our role in financial inclusion and in the economic recovery of Brazilian families.
And I will conclude by reinstating that we have the resilience necessary to face this moment with discipline and responsibility. And we are convinced that those who do not recognize the scenario, but act firmly in response to it, we face the present with courage. We built solutions to face challenges, and we pave the way towards a sustainable future. We continue strengthening the foundations of our long-term sustainability through a continuous agenda of evolution and modernization.
And now I would like to hand the floor back to Janaína so that we can start the Q&A session.
Thank you very much. Thank you, Geovanne. Well, we will now start our Q&A session. [Operator Instructions] And to start, I would like to call Antonio Reale with Bank of America.
2. Question Answer
My question is about your guidance for provisions. Even when I look at the top of the new guidance, it is understood that provisions should become more stable now after you had a SICR drop in the second quarter. And when we look at the short-term KPIs, as you said it yourself, it seems like the situation is not really improving. We see still some pressure points. There is the El Nino risk. The war also brings important pressure to prices of fertilizers.
And we see NPL of individuals going up. And so even with the guidance review, it seems like provisions should be flat and then go down. What makes you so sure to come up with this guidance at this point?
Thank you, Antonio. Good morning, everyone. Well, first of all, I think we have to understand that the dynamics of our provisions have changed. Now with all of the models performing in line with expected losses, what we do, we just anticipate the future risk. And this is what explains the increase of our cost of risk when compared to the cost of risk from the previous quarter, which was what led us to review our guidance.
We already notice a lower level of on-time payments. So we were monitoring that on a regular basis and every day. I mean, in April, where maturities were beginning to emerge, I mean, payments were below the levels that we mentioned to you before, and it's important to highlight that delay payments is not delinquency, but it indicates the customer behavior. But we have then to make an additional effort to seek for better collections and then you make our provisions.
Moreover, we also saw a [Audio Gap]
[Audio Gap] the industry scenario to have a buildup of provision for the second quarter. I know that agri provision is a bit more loaded or has a higher weight. I would like to see what are the other lines of provisions that you are envisioning in the future.
Thank you very much, Reale, for your question. It is a pleasure to have you here with us.
Well, this is exactly the dynamic we're referring to. The individuals portfolio already brings this anticipation, and this is why we are able to see a greater movement or transaction in the expected loss for the first quarter. For companies, the portfolio is standardized, normalized. There is the effect of a credit cession that we already commented with you that we would do in the fourth quarter with the impact for this one and the indicator of NPL that you saw, especially with regards to micro and small companies since the gross market follows in the normal standard.
We have been already showing -- we have been gathering what we have sold what we have already given you since the beginning of last year. So we continue more selective in terms of granting for SMEs. The portfolio has been channeling a very positive balance into guaranteed or collateral lines of credit, governmental lines of credit with collateral funds that already reached 60% of the SME portfolio. And this will have an impact in a stabilization of our provision and agribusiness is a bit what we were referring to previously.
We have a scenario beyond a regularization of loans in April that is lower than what we had before and what we had presented previously, and this will impact our credit risk. So from this moment on, it's truly to understand the dynamic with a lower stabilization in provisioning for individuals since the anticipation of this worsening, especially in credit card lines, which is reflection of what we have done for the same rural producers. We have anticipated this for the first quarter. The more specific cases that we see in the media and you are aware of are already adjusted and provisioned for, and they follow the first quarter as expected.
And our next question is from Tito Labarta from Goldman Sachs.
I have another follow-up on provisions because if we look -- and you have a nice breakdown on the provisions, right, by individuals, companies and agribusiness. And part of what drove the increase in provisions was actually the discounts granted, right? So if you take out those discounts granted, you would be sort of running in line with the full year guidance.
So I guess a couple of questions related to that. One, do you expect any more discounts granted going forward? Or is this just onetime given the renegotiation with the one specific corporate? And then two, within individuals, is it mostly because of private payroll that you're seeing this big jump? Or are you seeing just -- and you mentioned a little bit because of farmers and other rural sort of related individuals impacting that? Like how much [indiscernible] say mix because of private payroll where we're seeing a lot of deterioration and underlying deterioration given everything going on.
And on the companies, specifically, there was a big drop there. Is that because of the discounts granted? And we did see an improvement in agribusiness provisions in the quarter. Are you -- should this lower trend, right, it went from say 10.5% to 7.4%. Just to think on each of those lines that drove the provisions because there were big jumps from one quarter to the next, we can understand each of those a little bit better.
Let's try to establish the specific cases here. We had delinquency or NPL in the fourth quarter, and it was fully provisioned for. And we also said so here that we would grant this credit in the first quarter of 2026. So we don't have to talk about differences in our provision or isolation because this flow was already constituted in the past.
Therefore, the asset that was fully provisioned for was given, was granted. And then you have the impact in discounts. This is why answering the previous question, I said that the provisioning in this specific case for companies is standardized, normalized. For the future -- the future, we do not have in our radar any case of any kind of discounts or granting of this magnitude. Of course, we will assess our portfolio on a daily basis and any decisions might be made on specific cases we are discussing. But it has nothing in our radar for the close future, the near future.
Before we talk about individuals to make this very clear, the same magnitude that was for the expected loss happened in the granted discounts. So the end of the year -- they offset one another. There was no impact in our bottom line. So this is a resolution of what was considered as NPL, as we heard, and now it's now going out. So there is a compensation there. There's offsetting. So it's 0 impact on the bottom line.
So maybe we can talk about fiscal entity. It doesn't have any direct credit for our workers.
So I hope it is clear to you, Tito. It's just 7, and we, of course, are available if you have any -- if you need for more details.
With regards to individuals, and I guess you can also observe what is the market behavior. In our country, we have a concentration of delinquency in short term, especially credit cards and what we call a special withdrawal in Banco do Brasil, especially with credit cards. And at the same time, we are at the top of the level of indebtedness of the families in Brazil. And this, of course, will impact into the launch of the so-called Desenrola project that we have already talked about in the beginning of our call. And we were already preparing ourselves to react to this scenario.
During our last call, we also said that we had adjusted on just the product in terms of payment and installments of our credit card payments in order to deal or to grant more flexibility for our individuals, our clients so they could pay their credits. So you can see that there is a movement in this portfolio as we have already -- we want to give you full transparency. It happens that due to this scenario and adding to the contamination effect of our rural producer clients who are also our clients in the individuals lines at clients, our assessment and the assessment of our models will indicate a worsening in the performance of this portfolio.
Therefore, since we work in the concept of expected losses, and we're always trying to anticipate the risks we see ahead and that might show up in the future, we chose to do the protection of this portfolio and therefore, to ease any kind of credit cost or cost of risk in the future. And however, the impact in NPL, yes, we are expecting a worsening mainly due to the credit card product.
But it is important to link this to the idea that we have the portfolio adequately provisioned for trying to anticipate any risk we see in the future.
And just to add to this answer, you can see the increase of this short NPL. In the above 30, we had an increase of almost 80 bps. Is that it? Yes. And we can see this will go through to the 90. So we will see this coming to fruition. We have already anticipated.
Well, actually, Janaína, we believe that part of this short-term NPL will go down to the 90 days we anticipated. We did this effort almost to BRL 2 billion for this specific portfolio with the payment of credit card in installments, and they will pay in different installments, and we don't know how we will be this during the period. Therefore, it is a prudential way of preparing ourselves for an eventual issue of delinquency.
So -- and in the middle of the process, we have the Desenrola program. And maybe this anticipation will come fully to the 90 days delinquency. So we will have to wait and see how this client will behave, how this individual will behave. Of course, at the same time, we are very close to this client. We're talking about solutions, talking about loan regulation, and we have a very prudential way of acting in reinforcing our provisions. And this might not happen depending on the performance of the Desenrola program and the macroeconomic stance and the impact on families and also in individuals.
Our next question is from Renato Meloni with Autonomous.
Still on provisions. Can you tell me a little bit about the increase in provisions between segments? And then I would like to focus more on the individual portfolio. I think the message you are conveying so far has to do with the deterioration in the credit card line.
I just want to understand whether this is still related to agribusiness or it is whether it's something more generalized?
We have more than 40%, I believe, more than 40% comes from credit card, non-payroll, there is part of it coming from growers and their own credit cards. So basically, this additional provision in the individuals portfolio, which was close to BRL 2 billion. And as for agribusiness, we are still looking to increase the payment -- the on-time payment rate. I mean, the average was 74%. But you still have new vintages or new cohorts, which was '25, '26, and that was close to 96%. The ones before are still around 70%. The ideal situation would be to bring the level of this portfolio to what would be something before all this problem close to 95%, 96%.
But this doesn't mean that default payment will not lead to NPL because you can still execute all of the guarantees, collaterals, et cetera. So assuming that 60% or 75% is equivalent to 25% of delinquency, that is not a correct assumption. But now trying to give you some forward-looking perspective. This increase in provision contemplates this negative scenario, I mean more negative scenario that we see when it comes to on-time payments coming from agribusiness. So expected loss provisions are here to cover this difference of about 25%, a difference between the expectation, which was our target, and it was contemplated in the previous guidance and the current reality that was more noticeable in early April.
This already incorporates the scenario, and we are working diligently not to get it materialized. I mean when I talk about fail to pay on the maturity date, that's what I mean. I mean there is 20% that are paid 15 days later in addition to 30% to 35% after 30 days. But it's important to say that this review already contemplates this lower number of on-time payments. We understood that once we look at payments and the current scenario, I think we have to be a bit more realistic. And therefore, that led us to incorporate this new projection into our guidance.
The guidance shows stability in provisions for companies. This also contemplates some events that we are seeing in mid- to large companies that are in-court reorganization, but this also contemplates this new dynamics coming from the individuals portfolio. Above all, it contemplates a tougher scenario that we are anticipating in the Agribusiness segment. And that's why yesterday, we released this additional losses contemplated in our scenario.
Renato, just as a reminder, this is nothing new. We are just telling you about the progress on the same story. We've been telling you about the worsening of the agribusiness scenario. Of last year's provision, half of it was dedicated to agribusiness. So it still remains a segment that requires a lot of attention. There is this contamination coming from individuals already mentioned. There is the issue of on-time payments or nonpayments.
Well, we talked about the war. We also have to understand how this will impact producers' cost, how does that impact price. And all of that brings an additional volatility when compared to what was expected early on in the year when we released the guidance. So it's just some progress. And we are also being more transparent in our disclosure.
You can see, I mean, vintages since last year, now we have more guarantees of fiduciary lien for sale. So this new profile will also impact the overall portfolio, but this takes time. Our sensitivity today, considering all of these aspects is what Prince said. So we will see -- still see some pressure coming from the Agribusiness segment.
Now moving on, I would like to invite Daniel Vaz with Safra for his questions.
I would like to talk about capital. In my discussions with investors, the bank solvency was no longer a frequent subject because of the 1314 resolution. But looking at the first quarter, the level of prudential adjustments was slightly above expectation. But looking at more carefully, you build BRL 4.5 billion in tax credits. And I think this reflects a lower level of fiscal adjustments in your books.
I mean, I know that you're gradually recovering, but with this new guidance, this may probably take a bit more time. But what is the bank's estimate when it comes to capital? And how much you believe you will have in terms of tax credit in 2026? I think this topic should emerge again. I'm just trying to anticipate what would be the best or the bank's best capital expectation for the year. And if you could also talk to us a little bit about tax credits, that would be greatly appreciated.
Well, Daniel, thank you for your question. It's important that it becomes clear that we guide ourselves through a long-term overview. So we are managing the bank looking forward towards the next 5 years. And we've been telling you that the strength stemming from MP 1314 would be enough for us to grow or strengthen our capital base to be able to cope with regulatory regulations and the consequences stemming from the lower performance, but things didn't change. The perspective remains the same.
Capital -- I mean, CET1 should be around 11% in 2026 in this more expanded series. And this reflects the breakdown that we showed you. And this leads to CET1 of 11.29%. So the 1314 gets us in tune with that CGPE, which is the -- this helps our capital base for the next 5 years. And this is enough time for us to reorganize our results.
But even then, I think it's important to say that the machine is still being bad. I mean the results are compensating the risk weighted adjustments, I mean, RWA for -- because of the provision. So there is the point that you mentioned. It is not just a consequence coming from fiscal losses.
In the [ 1467 ], you had 2 options to solve the fiscal treatment vis-a-vis the accounting treatment. The 14 -- I mean, 467 gave us 10 years to get things up to speed, but we have to pay [ BRL 120 ] every month to rebalance things from 2026 onwards, there is no mismatch anymore because after the 14,467, things changed. And now we have a new effect that is now materialized through the credentials that we brought forward in the first quarter. Due to the incurred loss that is quite high, this is leading to fiscal losses. So there is a weighted average difference. This didn't come as a surprise to us. This was already implicit and contemplated in our provisions. And the numbers that I can give you is that in the next coming quarters, this number should range around 20 to 25 basis points or bps. But on the other hand, we have the management process to generate a capital base. And the best estimate we have is that we will run at approximately between 11% to 11.5% until the end of the year, and this is what we should deliver to you.
Daniel, it's very important to bear in mind that when we adjusted the guidance, we adjusted provisions. But at the same time, we reflected adjustments in our net income. So when we look at the capital composition, we made clear that at the end of CGPE was supposed to end. So the 1314 had the main purpose to neutralize the impact, and we managed to accomplish that. So what we promised, we are delivering to our promise.
There was no reinforcement in our capital coming from net income because the net income ended up being BRL 3.4 billion. RWA was 0.09%. So we already had the potential impact that was already expected. But going forward, in our net income estimate, we expect to increase that profit. So my taxable income will be higher, and we will be capable of absorbing these tax credits stemming from the losses. And at the same time, we will be able to reduce the tax credit coming from losses that consumes more capital.
That's why we are confident that we will have enough capital because our focus right now, and it's important that you remember that last year was a year of adjustments. We were adjusting our entire structure, all of our processes to face that cycle. Now we have everything working as expected. And so we gave you information about all of the collaterals. Now we are focusing on generating businesses.
And in the first quarter, you clearly saw that we grew NII. We grew the business of affiliated companies, and our conglomerate strategy is indeed helping the results of the bank in order for us to face these scenarios.
I guess now regarding capital, I just to remind you that we already been sharing with you all the impacts we expected since last year. We were talking about how much will come from the CGPE drop. We talked about the impact of the MP. This was an important mechanism for us to work in leveraging on our producers with the deferment and make it possible to have a more adjusted cash flow. And on the other hand, this will bring us a capital benefit.
So we also talked to you about this. We also referred to adjustments we would have, thanks to [ 46 ] and it's 33 bps in total. So there was no surprise in capital. Everything is as expected, including the prudential adjustment that is part of our projections. Okay.
Now let us continue. I would like to invite Henrique Navarro from Santander.
And the amount that was renegotiated almost BRL 38 million, the great impact is that a volume of credit that could have migrated from 1 to 2 or 2 to 3 did not migrate. It was stayed in the -- where it was because of renegotiation aspect. Geovanne explained to us already during the last call that the fact that the investor or the agriculture have 1-year to pay, doesn't mean that Banco do Brasil is not keeping track of the payment capacity of this producer. The relationship will continue.
My question is, given the worsening of the agro business, we are seeing the El Nino risks, the cost issues and everything else, is there a reasonable chance that this -- that was renegotiated won't be paid at the due date, maybe in 1-year in the beginning of 2027, that is.
So my question is this increase in the provision that could happen when a volume such as this is not paid in 2027, and then you have to increase the stage in which it finds itself. Will this happen? Are you going to find out a value that is an increase risk in 2027? Or will Banco do Brasil proactively during 2026? We understand that the payment ability of that producer isn't good and they could start some type of anticipated provisioning. So how does this work?
Henrique, here, one important thing to highlight is, even though there are difficulties we forecast in agro, we had in this last crop a record production in terms of productivity. So the income for the rural sector continues to increase. What we were able to verify and therefore, we have a need of 1314 is that there was a tightening of cash flow. And so when we did the new hirings or the new negotiation, we involved not only operations that were due in 2025, '26, but also with future due dates.
In the new renegotiation, we didn't do this for everyone. The focus was to find the producers, which in our understanding, our risk analysis and our payment analysis with an extended deadline of 8, 9, 10 years, we would be able to allow this producer to regulate or organize this cash flow in a better way. So our expectation for these operations are -- the receivables for these operations are good. In this new negotiation, in many cases, we offset an operation that did not have actual collateral for actual collaterals.
One important part of 1314 was with fiduciary alienation with sales with a greater part of additional guarantees. So it was not just a journey or delaying. We saw the payment ability and the expected flow, but we were always backed by more collateral. So we have a positive expectation for these operations so that we can have a receivables throughout the next few years.
There might be a certain level of delinquency, yes. But our expectation looking at the set of the portfolio is very positive. And this is why our expectation in terms of provisions will depend on how it will behave in the future.
So one important thing we heard before in April, only 1/4 of our portfolio that was due in April was already with this new methodology. The same one in terms of credit analysis used for the Safra plan, the crop plan and also for PMD. So only in September, more than half of our receivables portfolio, the receivables in September will already have this new methodology.
And we feel that operations done under this new credit methodology with a new resilience matrix, especially when we advance and increase collaterals, we will have delinquency as we can see here in terms of the timely payment, it is also the trend to be greater, which already shows that the MP 1314, we already have a good result -- also have a good result.
Adding to this answer to show you the dynamics of our provisions. We are not looking at a specific operation. However, solid it might be, we will have all the contracts of 1314. So 75% of our balance was renegotiated with a fiduciary sale. We are not looking at the product itself. There is a granular assessment for each client. And of course, if we see that there is a deterioration, the ability of payment due to other payment issues that they might have with us, with the bank, we will proactively establish a provision based on the expected loss.
So the message is we do not expect any kind of changes in 1314. Management is done in a very granular focused manner. If eventually and some risks materialize for certain clients that are in that portfolio, we might -- I would have the expected loss and not an incurred loss.
Yes, this is very important to highlight Henrique, that this is -- it's a 2-way street. When we did 1314, we did not change the provisions just because we had in the operation. We maintained it at the same level. Therefore, it is where it applies backwards and also forward looking.
Yes. And eventually, as since they brought more guarantees, especially fiduciary sale, we have more collateral for this type of thing for the agriculture, for the producer himself, there was a greater motivation to pay on time.
Yes, 75% with fiduciary sale of this more than 90% based on sales that is pretty high.
Thank you, Navarro. Now we will continue with Gustavo Schroden from Citi.
I would like to go back to the capital issues. I guess Vaz's question was already addressed, especially the accounting questions.
I would like to talk to you about a part of the process, which is the ratio adjustment, the capital ratio adjustment. There is a lack of organic capital generation. Geovanne even referred to profits. We're talking about profit or earnings here. If we look at the nominal figures with the asset -- well asset dropping and if we excluded the MP effect, capital will be around 11% CET1 will be around 11%.
And if considering the profit or the bottom line projection you have from this point forward and also the capital level that you are considering around 11%, is there any type of consideration referring to the level of dividends, anything is being negotiated is eventually there is a higher provision and the bottom line or the profit generation does not answer as expected. What will be the level of capital that you will rethink in terms of dividends?
If you dropped from 11%, will you go back to the level of dividends? Or -- so I'd like to understand how this debate is going internally in terms of dividends, the evolution of the level of capital and profit generation. And also if there's any other type of measure -- interim measure that might similar to MP that is already being used, any kind of renewal for any eventual need in terms of capital relief?
Well, let me start with the dividend. This debate on dividends started last year. We went to the market, we explained, we have a projection for the next 3 years. And then from that point forward, we established what is above our prudential level and what is above the regulation. And we always said that our optimal level would be between 11% and 12%, I mean 11-ish, so to speak.
Well, considering what we generated in the first quarter, even with our bottom line based on the lower one, we generated 15 organic bps or B, and that was more than enough to support the year RWA, which was 9, so we have 6. So of course, we want more.
If we look at our projection in terms of profit expectation for the year, I will be generating on the second quarter, not BRL 3 billion, but something about BRL 5 billion, BRL 6 billion, of course, depending on how the recovery will happen. The back, we didn't know if it would be a recovery 1, 2 or W, but now we can see that we have BRL 5.6 billion on the [ 4.3 ] and we go back to 3.4. And it seems to have a recovery in W.
So we see that organic result by itself isn't enough to deal with this. And the incurred loss is also being reduced. So this prudential adjustment will minimize in time. And it is, of course, within what was expected. And then we hope until the end of the year, we'll have around -- capital around 11%.
With regards to dividends -- for CET around 11%. So we had at least 30% in order to help us in this process. As I said in the past, this was a year of adjustment, and we did all the measures, and we thought about a number of initiatives and some of them were already in the media. We asked for the phasing of the payments of HCD, which was forecasted to pay now in July. Now we already requested. We haven't had the answer yet in order to minimize this.
The 1314 MP is developed in order to neutralize that. If we didn't have 1314, I would be already at 11% because CGPE would be already known that in January, we will not include this. CGPE would be the working capital program for business preservation. So these are different expectations we have. And there are the things that do not make sense to talk about this now because in our estimate, they will not be necessary to adopt.
However, we have a number of measures that were already presented internally in case of -- in the worst-case scenario, eventually, we might need to sustain our capital level at 11%, but for now, we are comfortable. And what really matters is to know your business, and this is what we're doing. It was very clear. All the adjustments continue. However, it's to now move forward with all the portfolios that have a better risk return for the bank and that will allow a better bottom line.
Yes, not only that, the projection is a conservative one. I guess, of course, we work with different scenarios with lower and higher provision, lower profit, everything is worked with models. We have all the modeling, all the forecast for the next 5 years. And it's very clear to us. We are looking at the 11% level, CET1 11%. And this is what you might hold us accountable for. Measures might be adjusted. Not as you said and as Geovanne was very emphatic in this way, but we do not expect a need in 2026.
It's important to mention that there is a potential component in churn, of course, we adopt, and it is exactly to avoid any type of volatility with regards to MP 1314. And there is a very solid framework for capital management. However, the idea of having the capital is to sponsor a driving force behind businesses. And this is what we are working for to react fast and to allow our -- the capital incorporated will be greater than what we consume, what we use with our operations because regardless of the fact that profit will be financing RWA. It is also financing -- RWA is low because there's a lot of provision. So this is not a scenario we want. We want more profit, but -- and RWA that is higher.
But as a result of healthier businesses. This is what we use as a bar in order to feed the driving force of the bank, but making it very clear the scenario. We are considering does not include these optimistic assumptions. It is a very down towards scenario, and we will reach 11% at the end of 2026 without any type of exogenous measure.
Now to our next question from Eduardo Nishio with Genial.
I would like to revisit the question on the quality of assets in the agribusiness and the issues related to in-court reorganization. It seems like there has been some structural changes to that segment. And I would like you to comment on the April figures that you just published. Apparently, there seems to be a worsening both in terms of the flow of legal procedures and actual numbers. And if you could also comment on the numbers for May.
So given that this is a different context because NPL was below 1%, and it's now up to 6%. If you could probably give us some light to that reorganization issue and whether we should expect a higher cost of risk going forward? Maybe in your guidance, you said that, that would be a lot better.
And also due to your resilience matrix, and then that contemplates better collection process and whether this is enough to take that NPL to a more reasonable level or maybe lower structural delinquency, maybe not at 1%, but what would be the most adequate level for that segment? Because I think there has been a significant change there.
I think there is an important aspect here. Well, first of all, the in-court reorganizations are still in court. I mean you saw the numbers, BRL 650 million. This is still a very high number for a single month. Our expectation in terms of the reorganizations, I mean, the majority of them have been already provisioned.
The second aspect is that there was a provision on March 9 that came up with a set of rules that should be looked at by the judiciary once they analyze the reorganization cases. I mean they have to define what kind of operations can be contemplated by the reorganization process. And there are many other aspects that are now being discussed by the judiciary before it's fully adopted. We hope that this helps in the process of reducing the number of in-court reorganizations, especially in cases that are -- that do not comply with the legislation and the cases that were contemplated in terms of agribusiness cases. So we will still see some new reorganizations throughout the year. But as that is adopted, I think there will be further regulation.
The second point is that it's important to highlight that there are cases of farmers that resorted to a court reorganization and then they regretted that. In April, we saw cases at the bank of farmers working and asking the bank to leave that reorganization because all of the benefits they were supposed to get, they did not get it. Therefore, as the processes or the -- as the reorganization cases evolve, I think we will see some of them ending.
And in terms of agribusiness reorganization, it does not only affect Banco do Brasil because it affects almost all financial organizations. And in percentage terms, we don't have as many as other banks have in terms of agribusiness reorganization cases. In the past few months is also hitting other segments of the productive agribusiness chain, be it in terms of input providers, trading companies. This is affecting the whole chain. Therefore, we should expect to see changes in the legislation. And even Congress said that they will probably revisit some issues related to import reorganization cases.
Nishio, just to give you some light, I would say that our challenge is to anticipate the risk, and this is what we've been doing. And this has been proven by numbers. We already managed to have a lower stake in judicial reorganization vis-a-vis the market. We have a metric that can prove internally that our models and the way we operate is paying out. I mean things are working, meaning that I do have a market share when it comes to funding agribusiness.
But in terms of reorganization cases, that number is down by 30%. It shows that the risk mitigation process that we are adopting is proving to be right. I mean, since we are market leaders, of course, we are working hard to control or probably prevent new cases in agribusiness. And the issue of farmers wanting to get out of reorganization is also taking place because they are now paying things on time because in June and July, we have to fund the next crop season. You know that if you want to fund your next crop season, you have to be in good standing in terms of your payment maturities.
It's important to say that this is not contemplated in our scenario, but we seek for that bonus so that we can deliver a lower cost of credit. I mean, the implicit credit risk in the guidance review of agribusiness often grows in the second quarter. I mean, total credit risk will fall a bit, but mostly in the second quarter.
And finally, delinquency or NPL. We work based on risk-adjusted return. We not only look at the agribusiness and the business we have with our clients, but all of the other businesses we do. These clients have primacy at the bank. They have risk-adjusted return, which is quite high. So what we want is that it should be even higher. And to increase it, I have to do more business and while at the same time, I reduce the credit risk.
So in 2027, we want to deliver, I mean, cost of risk around 4%, normalizing it in the range of 2% and 2.5% in the long range, which we believe to be a very healthy NPL level for that portfolio.
I would like to mention 2 other aspects. Our resilience metric is focused on the guarantees or collaterals, but not only that, we analyze all the payments, and we enhanced all credit limits, so much so, some farmers that were operating with us. But in view of this new matrix, they didn't have any allowed limits. Even with collateral, so this is a broader view in our granting process.
And in terms of the in-court reorganization, I mean, this new provision has made it clear that fiduciary sale is not part of the reorganization process because the more we use fiduciary sale in our operations, the reorganization will not affect our execution.
Now our next question is from Eduardo Rosman with BTG.
Well, I'm sorry for insisting on the asset issue. I think the agribusiness topic has been well explained. I just want more details when it comes to the worsening we saw in credit card and individual. I just want to understand whether this worsening is across the board and whether we should expect that same thing happening to the entire market? Or how much of it is more specific to Banco do Brasil because of contamination coming from agribusiness. I would just like to understand how this affects the industry as a whole in the coming quarters.
Rosman, thank you. I think we already mention that, but I can reinstate that because the Central Bank data also mentioned high household indebtedness and the concentration of Brazilian debt in short-term lines, mainly credit card, overdraft, not short term, but with an important stake -- I mean, with important stake, personal loan or consumer finance. As you know, our portfolio is based on payroll loans. So we believe that we are strong enough to face this scenario, and this has been backed by specific numbers from that portfolio.
Now overdraft, bank overdraft check. It's not something that we work too much in that line because we understand that we have better options to offer our clients. Credit card, well, yes, we have a strategy focused on growing this segment. We did grow from the third quarter of 2025 onwards. But certainly, a portion of these clients are low-income clients or mid-income clients, and it was more difficult for them to renegotiate their statements. So we launched a product to mitigate that risk. We had some expectation, but the expectation was not in line with what we expected. So since it was below expectations, we then chose to come up with a higher expected loss that you saw in the first quarter.
And by the same token, and I think this applies more to Banco do Brasil. There is the contamination coming from agribusiness clients. And we kept saying to you that this happened. And once I look at not a delinquency, but lower payment levels of these clients that have maturities in April. It is just natural that this is carried over to the other products that we have with that same client. It does not mean that, that product is necessarily delinquent. But as I said, we look at the client as a whole and the landscape as a whole. And when we beat our credit engine, all of that indicates that we should increase provisions, specifically in credit cards. That's why you saw a preventive higher expected losses in the first quarter.
Our next question is from Pedro Leduc from Itaú.
A question regarding guidance. However, in NII on the upward revised 3 percentage points upwards. It's not as intuitive as the revision of the portfolio didn't change. And you expect a lower amount of receivables. So it should be different in terms of interest rates. Could you help me understand what was this positive review of the financial margin or maybe for Selic for the NII?
And also to clarify that the guidance will have almost 0 [indiscernible], close to 0.
Yes, certainly, you have a new scenario. All economists are reviewing upwards all estimates. We started the year or started our budget with Selic of 12% and an average around 13%. Now we have reviewed to 13.5% and an average around 14%. And certainly, this will also give us an opportunity, especially given our liquidity and our treasury. So this is a result of the macro environment and also a change -- changes in NII.
We have changes in appetite. We have a lower appetite for agro, and this is something we will maintain, but also for companies, be it smaller or larger companies given the level of the easy cycle that was forecasted for the Central Bank, but there were changes. So the focus will be a continuous growth in individual. We have already 7.8%, but we are expediting this process. The adjustments will continue, but the motto now is to grow businesses for individuals.
Our margin has already grew above 15%. So with interest rates higher, we hope to have a positive impact on liquidity, also NIPs positive impact. And this, of course, will reflect in our NII.
And Leduc, with regards to the tax, we will have maybe a low single-digit or maybe smaller positive, and it will be lower than we had last year.
We still have a provision for that fiscal basis.
This is also an impact of the result, the smaller result and what are the lines that have a tax shield and also JCP. And this is what we have a low single digit for the year, but on the positive side.
I would like to -- our next analyst for question will be Carlos Gomez-Lopez from HSBC.
I will turn to English. I'm going to return to the capital question. I wanted a technical clarification. Measure 1314, you show an impact of 45 basis points this quarter. Now that is the flow, right? Because in the previous quarter, you already had 144. I wanted to understand if that is correct. And the total impact so far is 189 basis points. And if so, should we expect further increases in the coming quarters? Is there a limit to that? So that will be my first question.
And second, can you remind us what the total impact of CGPE is, which is being offset by measure 1314?
The benefit of 1314 is already fully incorporated to our cost of capital first because we no longer have operations with regards to the MP and also because we already reached the limit of appropriation for these resources. Therefore, you can consider 140 bps in benefits -- capital benefits as a result of MP 1314.
And what happened in the first quarter is that it netted a benefit that we had until 2025 and that fell in 2026. 140 total plus 45 will offset the 46 of 2026. So I guess that's quite clear. But of course, if you still have any doubts, let us know. We can add to your question.
It was 140, 45 plus, total for me would be 189 bps for the E&P. Is that correct or not? 189.
This 89, you take out the CGPE because these are similar mechanisms. So in the net, it will be 140 that we conveyed to you. However, you can see it another way. We will be 189, but it's still 46 on the CGPE. And if you -- maybe you don't remind remember this, the CGPE was a benefit that was given for the Brazilian market in order for the banks to have an incentive in terms of granting credit for companies during the pandemic. It was a working capital program for business preservation. So it's just a way of doing account. The results will be same.
And the program also has ended, Carlos. We had a volume that we did a negotiation up to December that was around BRL 20 billion approximately. And now the difference between December and February, which totaled 37 plus that is offsetting capital is one that put the own resources, our own capital, and it is -- it falls within this number of the 45 that Prince mentioned, okay? So the program itself ended, and we used all the limit that we had -- we were entitled to for this type of deduction.
Okay. Perfect. And so this is a prudential adjustments. Is that it? It's a reduction of potential adjustments?
Yes, that is correct. It will be reduced by that -- that is there.
Moving on. Now I'd like to call Now I would like to call Matheus Guimarães with XP.
I have a follow-up to guys in Vaz and Schroden's question about capital. I think the topic has reemerged. And in parallel, we see some of your competitors doing some operations not only to unleash value, but also to improve CET1. I mean this topic has been revisited constantly. And even -- I mean, in the past, Geovanne showed a solar system of Banco do Brasil in a previous occasion. And in the past, it was ELBB now I think you gave it a different name. But this topic has regain momentum at some point in terms of remonetization of assets. I think it's important that you give us some more light about the topic.
Matheus, thank you for your question. We are constantly looking at our affiliated companies aiming at generating value. As I said before, the focus this year is to grow businesses, not only limited to the banking area, but related to our entire solar system. I talked about consortium about insurance. We have our business of means of payment. In fact, when we were looking back then at possible making -- taking possible measures to stabilize our CET level, I mean, we have several possibilities to unleash value, as you said. But at the moment, we are not really looking at that.
On the contrary, that is crucial to help us go through this more aggravated credit cycle. So part of the results that we are looking at it today comes from these companies. That's why they are very important in solving the equation. I mean, generating a one-off result or talking about sales, it doesn't seem to us very sustainable in the long run because it doesn't make sense. It would only make sense in an extreme case where we would probably eventually need to think about some measure like that.
So in the short run, we do not -- we will not look at these companies as something that can add value, I mean, detached from the solar system. We need them in the conglomerate because they retrofit business generation, it helps in gaining primacy among our clients.
And even though you may think that it's very legit to evaluate our capital at MP 1314, the enforcement of this mechanism will proceed for the next 5 years, very similar to this time line to where we manage our capital. So to measures [indiscernible] Geovanne mentioned, they were all taken last year. What we want is that capital is bold enough to strengthen our business generation.
In parallel, if we see any opportunity to create value, is leading [indiscernible] is connected because we are managing capital looking at all the numbers that we delivered organic generation and obviously capital consumption has to do with RWA and as a result, when it comes to LLP or ALL due to higher losses, but everything has been contemplated in our projections. And I would like to reinstate that our CET1 will be around 11% at the end of 2026.
Our next question is from Yuri Fernandes from JPMorgan.
I have 2 questions related to one another. The first question is to grow credit to individuals. I know there is the issue of agribusiness contamination and restructuring debt on some products. The credit card is growing well. I know that you just had a recent Elo Card event. But the question is how do you -- how do you combine this credit appetite?
And I have a follow-up to Leduc question about NII. I know that you -- the products with higher margins will help you and the quarter was performed well. There was a market NII that was better than client NII. When it comes to client NII, there was a pressure. But looking at NII, theoretically, you would have a lower accrual book in terms of delinquent credit. And what some analysts mentioned and we keep discussing ratio, but the tangible book of the bank is worth. So in terms of growing tax credit, this will generate lower NII and DTA is growing BRL 3 billion to BRL 4 billion every quarter. So DTA is like BRL 4 billion to BRL 5 billion a year. So do you think this NII is feasible? I mean it is feasible looking at the quarter, but don't you think that this will -- I mean, everything else will impact your NII?
Good question, Yuri. When you look at a quarter, when you look at client NII, you have the calendar effect very comfortable because then when you look at the yearly view and when you compare the first quarter vis-a-vis the last year's first quarter, and then we see a positive growth.
But this strategy to grow the individuals portfolio, this is the best way we have to improve the bank's profitability with returns. But we have to be careful not to focus on risk return operations that have to be better adjusted. Credit cards, certainly, once you compare Banco do Brasil with its peers, we are lagging behind. Our market share is lower.
We don't want to grow for the [indiscernible] sake of growing like in the past that it led to increase of NPL. We reached 2 digits delinquency. So this provision anticipation was precisely to help us be more robust so that, in fact, we will be able to face that situation. There is the new Desenrola program, Desenrola 2, which brings a bonus of expected payment. So it allows families to extend their debt. And we are taking advantage of this opportunity.
Private loan or private payroll loan, we showed that we are capable of accelerating. There are some one-off issues related to the system. I mean [indiscernible] is solving this issue, especially in the case of private employees that change jobs. So that has to be transferred to the new employer. And sometimes this is been manually. And at times, we push on the brakes to reduce the risk of that portfolio.
But we also believe that our focus being in public payroll loans that we are leaders and also private payroll loans will help us to adjust risk and return. And in the case of credit cards, our focus is in the high end. I mean, we just launched auto and another one. We reduced the appetite for lower income individuals where risk is more aggravated. But now the secured loans for us is a good opportunity.
And certainly, when it comes to our tangible book, we have to resume the bank's profitability. And it's almost like juggling with lots of plates or a dog chasing its own tail. So I need very strong capital to support this growth so that I can, in turn, have a more robust net income and reduce the DTAs. Therefore, I would say that this is a very challenging moment, but we are also very excited with the challenge we have at hand. The best way to deal with that is by being transparent with you. You know where the pain is and you know what we are doing.
And if we are not successful in one or another line, we will say, well, unfortunately, we didn't succeed. We wouldn't like to review the guidance now. But given that we approved the guidance and we have the budget estimate, it's totally different than the world we are living today. If there is more to come, we don't know. We don't know if that -- if the war will stop now. We don't know what will happen between Trump and China. So at the moment, we've heard cases of farmers that want to go to court because they are alleging that they will be impacted by the war with Iran. Well, we will have things popping up all the time. We have to learn how to deal with it.
I mean taking this opportunity that you're all here, and I know that you have your own private financial investments. But I would like to invite you to try out our Estilo segment. We have beautiful service offices to provide excellent service to our high-income clients. We have our VIP room in Guarulhos recently inaugurated. You are all invited to pay a visit. So this strategy also reflects what we are aiming for, less secured lines.
And so we will also operate in the high-income segment. Our payroll lines, I think that the engine of this risk-adjusted return is well adjusted and in place. So with everything else that Geovanne just said, we believe that we'll be able to deliver better numbers for you from now on. But if you have a chance, so you are invited to visit our Estilo facility.
Well, that was our last question. Thank you so much for joining us today. We are certainly here always available to answer any further questions that you may have. So I hope to see you soon.
Transkripte auf Deutsch freischalten
- Alle Event Transkripte auf Deutsch
- Sofortige Übersetzung
- KI-Zusammenfassungen für die wichtigsten Insights
Banco do Brasil ADR — Analyst/Investor Day - Banco do Brasil S.A.
1. Management Discussion
[Audio Gap] portfolio in more detail. But because of that, we had to increase our provision. In the last quarter alone, we had increased that portfolio, but BRL 10 million only in that portfolio alone. But I will like you to look at but as if not only as an agribusiness bank, because we are talking about bank that goes way beyond [indiscernible]. And for that, we need to show and be very transparent and why? Because it's not just enough to understand what's happening to that portfolio, but we organize our strategy. We restructured our strategy to address all of the difficulties we had in all of these portfolios, SMEs, agro business and even individuals credit card right, after the pandemic that was an open sea posing [indiscernible] you might recall that.
And so we had to talk to the regulator and the government itself. We show what was happening, especially in agro business, because out of that BRL 18 million provisions in that quarter, BRL 10 million came from that. Well, then we had to initiate a review process. We revisit our collection track. We have reorganized our election process. We put together a resilient major to give continuity to our system because there were some -- they are working on time because in order to help the agribusiness sector, we also had to have to offer other guarantees. We have the opportunity to talk about that. We invested. We worked with real market, so we started including other guarantees and we focus on the operations that provided better risk-adjusted returns. And all of that was tactical adjustments to face that wave of delinquency that we were experiencing in the agribusiness. But the Brazil is not only agribusiness, it goes way beyond that, a lot more than that.
Look at the last 7 years, what we noticed is that we hve -- We are posting robust results. The NII together my shareholders' equity returns, if you look at it, we continued growth of Banco do Brasil's business. Throughout in the 11 years, we grew close to 8%. But I'd also like to draw your attention, [indiscernible] from 2022 onwards Banco do Brasil now has a different level of offer because after 2021 my CAGR was at 4%, growing nice results power hub at an annual rate of around 4%.
Now when I look from 2022 onward, increases growth by [indiscernible]. And why am I saying this? Because I wanted to invite you to take that credit risk lens out for a while.
Now turn our attention to business generation because this shows how close Banco do Brasil is to its clients. And how important it is the base employees we have because they are working hand in hand with our clientele, and that generates better results and good results.
And now I would also like to draw your attention to detail because some people [indiscernible] and I'm talking about Banco do Brasil. I'm not only referring to agro. I'm talking about the largest financial our strategy and under Tarci's leadership it became very clear to us that it was of utmost important that it opens our strategy into being conglomerate, it's very [indiscernible] and this is very important to generate, but we also operate in the insurance, capital markets, payment means and also we operate abroad, meaning that we are constantly expanding our capacity to generate results in this entire potential [indiscernible], and we also have various great competitive advantage, which is our [indiscernible].
I think you've heard about the bank's capacity to be ahead of the game. And then when we talk about growth, you can see the growth in our workers' loan portfolio, our platform can serves different customers in different ways. And we will also talk about it. And then when we change lenses and when we sit differently, look at our agri business, let's look at the financials conglomerate and how is it that I was able to grow the results in this last 4 years at a much bigger rate than historically Banco do Brasil. And I grew at a rate of 4%. But now in the last 4 years, I grew at a four-digit rate. And all of that was due to the fact that we are now operating with conglomerate mindset.
When we look at this is accounting net income. I mean, in fact, it was down in 2025. I mean this is nothing new to all of it especially due to things I mentioned. If you look at contribution, the result comes from all of the other companies [indiscernible] the financial conglomerate. On average, these companies are adding to the bank 52% of the Our strategy was very important to create some muscles and show that we can face what we faced in 2025.
And now speaking specifically about this conglomerate, we have more than [ 80 ] companies. I have here the field of many companies and how I would like to thank you very much. So the thing is that we are managing to [indiscernible] recurrence and also protect profitability despite the very high risk we had under the new resolution of this [indiscernible] we brought here what will Banco do Brasil's of our conglomerate.
The size of the ball is the size that every group brings us a result. So [indiscernible] is the biggest star of this constellation, but we have here shows here pension insurance, savings bond insurance, but there is another planet that is in the last orbit and it's coming closer and closer, and this is the consortium. And this brings important results to Banco do Brasil's business.
There is an entire universe of payment means with several planets. And I will talk a little bit about our national banner of [indiscernible].
I have a lot in our conglomerate. And it is because of this conglomerate approach that Banco do Brasil decided to unlist so that we could guide even further this proximity. This is what I wanted to bring to you, which is important for you to understand. We have a lot of changes in this conglomerate strategy and there were several because I had a governance management unit for these companies. And the first thing we did was we changed the focus of this unit. It started being a unit of strategic shareholdings, in which we connect all of these companies to the BB conglomerate universe to generate more value for shareholders.
The next step is to turn this unit into a statutory coordination so that they can have Banco do Brasil's responsibility to manage this whole galaxy of planets that generates results and earnings for BB. We continue with a strong banking and this is absolutely important to help us grow the other businesses of this solar system, but what matters is that we have to look at all of these planets and stars and realize that they have an orbit. And these orbits rely on one another. They eat, feed one another. It is the strength among these different planets that allow us to manage even the increased credit risk to a level that was unprecedented to Banco do Brasil.
I had an average of 2.5% of risk that increased to 5.4%. That was the average risk in 2025 and still I continue to deliver a return on equity of 2 digits for our shareholders. So looking more specifically net banking Banco do Brasil is the largest bank. We have 16% market share in the credit portfolio, 17% of total deposits, 21% of savings, export effects, we are leaders in the agri business in payroll deductible loans of 21% market share, 14% of credit [indiscernible] employee credit. And that was that increased very quickly. We are second only to our private competitor, Ita, and 34% of credit for the public sector.
But I draw your attention to another planet that very few people pay attention to BB. BB is ours. It is belongs to Banco do Brasil. And I have the CEO of BB here. Thank you, Gustavo.
They are the biggest auto loan granting entity in the country. So it is all part of our galaxy of Banco do Brasil.
Looking at the next planet, insurance, undoubtedly, we listed the insurance company and the market likes a lot [indiscernible], but we are leaders and with a high market shares, you can see, 12% market share in life, in the credit insurance, we have a broader startup of the digital ecosystem for agribusiness who have cyclic, which is a platform and digital broker of insurance and protection. We have Brazil dental, and we have many avenues of growth in this planet, and there is a lot to be tapped into here.
Banco do Brasil as part of our financial conglomerate strategy. We've been implementing this over the last 3 years. This has allowed us to ensure Banco do Brasil earnings despite all of the headwinds we faced.
Looking at the next planet, consortium. It started almost like the last one and also the system. Today, it is the lead in the market, BRL 150 billion in the portfolio managed by consortia, 1.7 million active and this is undoubtedly bringing an important result for Banco do Brasil. And it is an alternative for our clients when they want and they need to finance customer goods. And when they want to draw a consortium and reduce the financial cost because the financial cost of a consortium is much lower than a loan.
For foreign investors, it's kind of difficult to explain the consortium. What we call a consortium is a very, very resilient thing. But I draw your attention to explain it in our constellation because it's been growing. And our intent is to increase its share in Banco do Brasil's earnings. And I have to speak about capital markets.
Banco do Brasil backed on a partnership with UBS. Here, we have the CEO of UBS. I thank you for joining us. This is Jeff, a big partner of Banco do Brasil. We were able to increase our action in the capital market. And in our JV with UBS, UBS BB, when we are not able to serve our clients, we have our in-house investment bank to operate and to complement our value proposition to all of our corporate clients. More than 1,000 operations announced in this partnership is recent.
We are still ramping up. We have more than BRL 1 trillion in financial volume since the beginning of this partnership and I have to speak about another planet. This one is a little bigger. It's going to celebrate 40 years, which is our BB asset management. We are the largest manager of investments in Brazil, BRL 1.8 trillion in assets. This help solar creating value for the BB conglomerate.
In our action overseas, it's to be highlighted. In addition to being the largest funder of Brazilian foreign trade, we are leaders in ACE export effects 19%, import effects 14%; and Banco do Brasil has been a strategy of being more and more a global platform to serve our client base, either corporate clients or individual clients. This shows our ability to innovate.
And we launched [indiscernible] in Argentina that shows our agility and at its very important because this takes a solution which is truly resilient to other geographies our challenge now, but I set out to our teams to take picks to United States more than 3 billion in assets in BB Americas.
Just in real estate financing Brazilians buying apartments in real estate in Florida, we have $2 billion in land and funding, 90% of that portfolio is basically for mortgages. And we have the Patagonia Bank. That was a fundamental platform for us to be able to launch in Argentina. And very soon, we're going to have a much more focused action on individuals in Portugal in addition to our actions in foreign trade and all securities in London and in the United States.
This is something we need to speak about. This is an extremely important avenue to bring proximity and solutions to our clients to create value. Like I said in the beginning, CLO was a company that we unlisted. We are now ramping up, connecting with SMEs, small and medium-sized enterprises. That's a benefits company. It's a market leader, and we have partnerships here with Bradesco, with Caixa. We have Alelo and Elo and also Cateno. I can't speak much about Cateno. But Cateno today plays a key role in generating business for our cards. We have a direct shareholding of 30% in an indirect shareholding via CLO, the remaining 70% belongs to CLO, but this universe means that payment.
Well, people question but to what extent will be competing with this market, but actually just adds to it. It brings more convenience and improves customer journey. To us, it is very important to have this planet of means of payment. That has been offering us sustainable results. And I have to speak about the many, many initiatives. It don't appear too much when you look at the balance sheet of Banco do Brasil, but then have been fundamental to bring innovation.
We have a venture capital program. More than 51 startups that are being built in this innovation ecosystem of Banco do Brasil. They have helped bring new planets to the Galaxy. We have a focus on fintechs, ed tech, gov techs and green financing, more than BRL 500 million of invested in this the application of Banco do Brasil. What we can add in terms of value through these companies, business, both government operations for banking or even regarding sustainability. All of that is fundamental for us to ensure the sustainability of the BB conglomerate.
I'm coming to the end of my part. And I would like to draw your attention to the fact that although we have faced the most enormous challenge at Banco do Brasil in terms of credit risk, we believe in our ability to continue to generate sustainable results in the mid- to long term, given a whole conglomerate strategy that we implemented. If we look at the return of shareholders, we are now going through a moment of adjustment. Very similar to what happened in 2016, 10 years ago. We are still observing the severe of how the agribusiness will perform, the new crop year, the new harvest, whether this recovery will be in a U-shape or in W-shape, we don't know yet. I suspect that we're going to see a W-shaped recovery. But rest assured that with all of the strategy we've been implementing to strengthen all these planets in this Galaxy called BB conglomerate, we will be able to ensure value delivery to our shareholders.
We'll be able to go through a moment of adjustments and resume profitability. As our CEO, Traci says, is the profitability, the size of this Galaxy, called Banco do Brasil. Our focus and our priority is to build sustainable results in the long run. I know that the market tends to focus on the short-term quarter after quarter, but our focus is on sustainability in the long run, not just the diversity of thinking in our management, we want to ensure focus on a sustainable portfolio because in that way, we believe that we will continue to deliver value as we have been doing over our more than 200 years of history.
In 2025, we had some lessons learned. And that led to some adjustments in the collection processes and workflows. It is a management focused on risk management, risk return ratio and above all focused on responsibility and trust we continue and strong. Working for BB, there will be more and more prosperous, more and more transparent with proximity to our clients and our investors alike, aiming to ensure not just growth but also a health balance sheet and purpose. Investing in Banco do Brasil is accepting our commitment of being a solid, healthy growing bank with a purpose. Thank you.
[Presentation]
Well, very well. Let us continue with our BB 2026. Now I'm going to speak to you a little about our approach to sustainability and diversity. Banco do Brasil, this is part of our strategy, it is also a driver of business and earnings. And to speak about this, I'd like to invite Francisco Lassalvia, President of the Wholesale business; and Christina Garcia; and our Vice President, Government and Business Sustainability, [indiscernible] sustainability and diversity, and this panel will be moderated by Thiago Batista from UBS, our partner.
Hello, if you don't know me, I'm Thiago Batista, Head of Research of U.S. BBB. Today, we cover 200 shares. We have a dedicated team for ESG that was recognized last year as one of the leaders in this segment. UBS BB partnership has participated in more than 100 issuances of sustainable bonds over -- a little over 5 years of existence of the partnership between UBS and BB. So speaking about ESG clearly, in recent years, we have 2 paths of the market was retracted around the topic of ESG. However, the flow of investments focused on the social governance and the environment remain very strong.
Investors are demanding more transparency, more measurement and above all more financial materiality in the operations. It is not enough to say that we are sustainable. We have to prove it. And Banco do Brasil has some numbers that show that. I would like to highlight 2 or 3 numbers. First, sustainable portfolio was BRL 415 billion. Consolidating BB is one of the main players in sustainable credit. In 2024, the bank was the largest issue of sustainable debt in Latin America, another important highlight. Unless at COP 30, the bank announced BRL 3.5 billion in new businesses.
I think the goal of this panel is to show how all of this materializes in real value, both society, our clients and the shareholders. So I'd like to ask Sasseron. Sasseron, Banco do Brasil states that sustainability is not a separate strategy. It is the business model of the bank. With that in mind, I'd like to hear from you, what are the concrete mechanisms that ensure that the statement goes beyond near speech. How can sustainability be truly a variable guiding the business with formal accountability for the market.
Thank you, Thiago, for the question. Good morning, ladies and gentlemen, and thank you for joining us today. Well, I'd like to start saying that sustainability, it's not business to Banco do Brasil, it is an essential element in our corporate strategy. And this has been -- is being built for a while at Banco do Brasil. So that's the first point. We have built and we're still building a business strategy, which is perennial and sustainable over time in our relationship with the environment, in our relationship with the several markets and in our relationship with the clients. And this is our day today and this is our target.
We look for time, you just watched a video about bioeconomics and our actions in the Amazon region. So we work targeting social inclusion, bringing new clients and new businesses to Banco do Brasil strengthening diversity. Banco do Brasil is present all over Brazil from in Sao Paulo all the way to the smallest municipalities in Brazil, supporting the local economies and supporting the value chain and strengthening the value chain with the several products that we have in Brazil.
We want to have a more sustainable world. This is our goal, and we want to support and transpond production relationships that exist in Brazil. Today, in agriculture, Banco do Brasil is the main bank funding agriculture. And we're supporting a number of changes which lead us to a more and more sustainable agricultural production. That's our ultimate goal.
I'd like to bring 2 milestones that are important to be highlighted. In 1985, 40 years ago, we established Banco do Brasil Foundation. From this chart, it worked towards production inclusion, creating products that create social technologies, so as to enable changes in the way the families produce improving production systems, and at the same time, creating what we call social technology, i.e., with the ability to reproduce that technology that was created via the foundation.
The foundation is 40 years old, 40 years of experience. But that is not enough. Last year, we celebrated of the 20 years of first agenda 30 defined Banco do Brasil that was defined in 2005. And every 2 years, we revisit our strategic goals. We revisit our sustainability goals according to the UN and we treat that not as a goal, but rather as a commitment to execute the agendas that we set for ourselves. This is a fundamental point for the sustainability of the bank.
And to answer your question, we do that by debating with all of the departments of Banco do Brasil from the top management to our network of branches, defining actions, KPIs and objectives and the goals for every unit of the bank, for every pillar of the bank, so that everyone can participate in building a more sustainable portfolio with more sustainable results for Banco de Brasil. And this is not a goal, this is not business model which will make Banco do Brasil BB perennial in which we'll hope to we'll have a more and more perennial and sustainable production.
BB was the first bank in Brazil to provide a guidance of sustainable portfolios. To give you an example and to prove our objective, our sustainability guidance is always higher than the guidance of general credit into so we grew 17%, our sustainable credit portfolio. And as Thiago said, we have BRL 415 billion in our sustainable credit portfolio, which means approximately 1/3 of our loan book. Our commitment by 2030 is to reach BRL 500 billion in our sustainable credit portfolio, sustainability in our relationship with clients and also sustainability of the environment.
And lastly, among our goals for 2030, our SDGs, I would highlight some first of BRL 500 million portfolio. Secondly, bioeconomics, BRL 5 billion by 2030, funding a renewable power, funding municipal efficiency. Today, Banco do Brasil is the main financial agent in the main financing entity of infrastructure and civil constructions, erection of hospitals and many other works at the level of states and municipalities. Also recovery of degraded areas that's something Banco do Brasil has been investing on, forestation, carbon credits, persevering the trees standing. So all of these fronts, so these are commitments that we will achieve by 2030 because by 2030, we want to renew our commitments, obtain more goals, objectives and commitments that will be even more challenging.
Perfect, Sasseron. My question to Anna Christina. The agenda 30 of BB sets the commitment of achieving 50% of women, black and brown indigenous people in leading leadership positions by 2030. How is BB measuring that objective? And how the internal ESG agenda of culture and building connects with indicators of customer experience and satisfaction?
Thank you for the question, Thiago. Good morning. Well, this is very, very challenging. By 2030, we want to have 50% of women and 50% of black people and indigenous people in leadership positions. So we will only achieve that with a lot of discipline. And why did we set this commitment for ourselves? Why did we join this SDGN because we believe in diversity and that diversity is strategic because we belong all the bank's reputation. We are talking about strategy. We're talking about a strategic asset. Diversity is a strategic asset, we can innovate. No one can innovate with a very homogeneous group, but we innovate good diversity.
[indiscernible] because we are a diverse group. We have more than 200 years of history. The company was consolidating itself in the country throughout the history. We believe in engaging our workforce by engaging our workforce to bring results for the company. And clients will identify with the company more when people serving them are also diverse. So we've been monitoring these indicators of women and black people in leadership positions, and we see a robust growth.
Over the last few years, we had 24.03% of women in leadership positions. So 24.03% because we need a lot of women being appointed for leadership positions to this number. So this has increased to 29.11%, 21% growth of women in leadership position. We had 24.33% of black, now 30.69% plus 26% of black people in leadership position. And like I said, we did this with a lot of discipline and purpose. And the idea is that we will continue to do this and monitor this the bank until we achieve the deal numbers of 50%, which is what we have in the Brazilian society.
This is the Brazilian population. That's why we want to have 50%. Our Board of Directors is one of the most diverse in the country. We have a good representation of women and black people in our board, and we do this to achieve these numbers actually.
It's not out of context. So we have strong training for ESG, for example. In ESG, we have more than 70 courses as Sasseron mentioned. We talk about all of that in our courses of our employees. When we appoint leaders in the bank, we have a very robust process of identifying people with the right profile and potential to take on these positions. We accelerate of these people, we observe them for 6 months or a year. We measure the results that they are delivering. We provide them with training. We have one of the best corporate universities, Uni BB recognized internationally that has a partnership with everything we have that is best in training and development. Uni BB also train these new leaders. And we've had some actions directed to this audience, for example, one of these actions identifying, certifying and training people. It's called race and priority, where we identified close to 100 people in the bank to take over leading positions at several levels of the bank, programs have actions related to women. In other words, we identify a greater number of women, we identify people with disabilities. And the idea is that we do this, so we can have a body of leaders that is more diverse. We see this reflected.
I spoke about the strategy to improve engagement of employees. We've had greater engagement over the last 2 years, up 12%. And with the women even more engaged than the target that we set for ourselves. So we see our strategy being materialized into results in practice. We also -- well, I guess this is it regarding our internal audience. But since this is strategy in out and this also a strategy of contact with clients who have 90 million clients all over Brazil, as Sasseron mentioned in all places of Brazil. And I need these clients defend themselves with the bank. So we need to have employees that will reflect the diversity of the country and these employees relating with the clients. This improves empathy in our relationship with our clients, both bank employees and then clients identify themselves, and it's good to be able to do this with clients [indiscernible] in the country side of the state of Amazon in the Amazon region. So this is an important work that we have been developing.
And lastly, we haven't worked only with our internal audience because when I say that diversity strategy, we need to be coherent in terms of what we do in the bank and what we do out of the bank. I have to look at my clients. My clients are [indiscernible]. We have women, like people, people with disabilities. We work with LGBT plus people and generation plus, so we have tried to understand these clients more, understand their needs. And what I need to offer them to deliver them more value than just a traditional loan. So we have a platform called women at the top. And in this platform, we have a number of products designed for women. One of them is a program called my first export that provides consulting for women in this process. It is rare because it requires differentiation. So we have many projects for women and all of that because we understood that many of these women are becoming entrepreneurs. They need advice. They need consulting. They need credit facilities that are specific with specific terms and conditions for them. And we have been working strongly on these programs. There are many. I cannot list them all here.
Perfect. It's consolidated as of sustainable loan, $20 million [indiscernible] we also have another $25 million to [indiscernible]. Another important is that the bank is linking the projects to ESG. So ESG has become an active agent for customers who are favoring a economy [indiscernible] to positioned to expand this of customers at Banco do Brasil.
Well, good morning, everyone. It's a pleasure to have you all here, investors and clients, it's important that we all understand. I mean to answer you, if you go back a bit, I think we have to say that we believe in sustainability. In fact, we have not only to believe, but we have to incorporate the subject to the bank's policy. This is important. I think we train people a lot, and we have a system at the bank that works in a very pragmatic way and different from what we see throughout the industry, not only in terms of our training policies, but everything we talk about when we refer to ESG is part of all of the foundation that we established years ago. So we already understand what are the needs in positioning of the bank.
Now speaking a little bit more about the structure of large companies and wholesale at the [indiscernible], we have BRL 350 billion in assets when we talk about [indiscernible] when we talk about equities and sustainable operations, we are not only talking about wholesale, we use our partnership and the bank's [indiscernible] and our partnership with our investment bank so that the big businesses can permeate the entire change in the bank. And when I do that, not only do I have a large client, but the entire value chain works in our favor because it allows also to reduce risk.
I would say that wholesale delinquency, it's been kept at a historical level. Despite the interest rates and other market issues, issues related to [indiscernible] but in fact, we are leaders because we invested in our capacity to understand sustainability within the bank. And that's why the bank was known as the most credible bank in the world for quite some time. So for more than 3 years, we've been looking at carbon credit. Some companies will be able to mitigate and some companies does not, but what are the options for those companies? How can I turn that matrix into a lean matrix? Okay, We can issue sustainable instruments of BRL 500 million up to 2030, and we already have BRL 260 million already [indiscernible].
And I know that our ambition is much bigger. So we have to look at what is laying behind and we did some beautiful work. We can mention a sustainable debenture from BRL 200 million. The recent transaction we did to Petrobras BRL 10 million to invest in the energy grid and also met at equity transaction, meaning that our leads remains transacted, but not with big clients but these transactions can add to the value chain. It's also important that I mentioned something else. Not only this has to do with risk but also brings opportunities to all of our clients.
At the end of 2024, I think we signed about 6,000 agreements in wholesale, wholesale with market and the government. And we more than doubled our supply chain agreements signed to [indiscernible] impact the capital markets. We keep saying that we are a relationship bank, not an opportunity bank, so we will always be working side by side with our clients. That's why have position when it comes to sustainable transaction because we are also seeking for the best options for our customers because we want to see a greener future ahead.
Perfect. The last topic here. I think that today, Brazil is going through a very unique moment. The other biodiversity asset, clean energy assets, and we have [indiscernible] bank is showing its capacity to drive into concrete [indiscernible]. Looking ahead, where do you see the E in this agenda in the next coming years? And what else you can do to consolidate as BB a very distinguished bank? So I will start with Anna Christina.
Well, thank you, Thiago. I think we are still giving our first specs in the sustainability path worldwide, but the bank is really seeking out We have to pursue our journey in this path because ESG cannot just be a program or a bet, but it has to grow and it has been further consolidated, it has to be intentional. So this is well play in dividends. We will continue to expand our development to develop our employees. We will still focus on all of these topics. We will continue pursuing our diversity calls together with our ability and all of that, while we measure the results that this brings to the bank.
One example that we are on the right track in our commitments to our clients and sustainability to the numbers of NPL. Our NPS was up by 10 points, 10 additional in our NPS is quite relevant. The Central Bank ranking that ranks consumers for 40 consecutive quarters, we've been in the best position vis-a-vis the other banks and the financial system, meaning that we are growing and we are measuring, of course, because what matters to us is customer satisfaction, and we are seeing the results. And we know where we have to go in terms of our relationship with our own employees and clients.
Moreover, we have to continue our pursuit in our digital trajectory and our digital strategy. We will talk about it. We have to invest in technology training, and we are doing that. We are developing and treating our personnel. We are training them in new technologies while at the same time, we invest in the development of the [indiscernible]. We are doing that intentionally, and I'll talk a little bit about this digital strategy because this was hand-in-hand with our sustainability strategy. But we can elaborate more on that further.
Thiago, you had something and I agree with you what is that the Brazil is a broad reference when it comes biodiversity. So it's very rich in that resource and also has cleanest energy grid, 90% of electronic power in Basel comes from renewable sources and this is very powerful and important asset.
And how is Banco do Brasil included in the scheme of things? Today, for everything that throughout our history since the exceptional of Banco do Brasil Foundation, since then in Latin America, we are already -- the major reference comes in sustainable asset. will talk a lot about funding. We have partnerships with the World Bank. We [indiscernible] in American Development Bank and many other organizations throughout the world. And for them, Banco do Brasil is a reference. Whenever they want to support positive initiatives related to sustainable development. And we're very proud of [indiscernible].
And again, we are a huge capacity to promote policies and behaviors in the Brazilian economy. Banco do Brasil is the main financial advance Brazilian agriculture and we maybe cultural founder is not in the Amazon region, the main agriculture frontier has to do with the recovery of the area of brownfield. And we are funding the recovery of this brownfield. And we have to goal to 2030. To that end, we are investing in creative models and capture carbon in the soil. We're even working with partners looking for other technologies for other ways to Brazilian agriculture or support to Brazilian agriculture to preserve nature resources while at the same high, they have been better reference because we know that the future of Brasil agriculture has and on environmental sustainability. It is a very powerful business in Brazil, and we continue.
I would like to mention 2 examples. We have [indiscernible] for 2030 that I already mentioned. Our commitments for 2030 point in that direction. But I would also like to refer to 2 specific banks. One is bio-economy. We started in [indiscernible] and today, we are serving the Amazon region, funding small growers, and we are funding [indiscernible] in family farmers. And this is not on the side of bank, but this is a very important thing. [indiscernible] [ BRL 3 billion ], the goal to reach [ BRL 5 million ] by 2030, working with the higher value chain from smaller farmers all the way to large company byproducts from the productive chain coming from small partners. This is the business model that [indiscernible] even more. So we are heading to the [indiscernible] and expand the policy next time in Brazil until we have a sustainable and this portfolio has a delinquency level, which is half of the delinquency of the general portfolio of the bank. So this is a successful business model that we want to grow.
We already talked about COP 30. We generated BRL 3.5 million during COP 30, maybe Banco do Brasil was one of the companies that hit more business during that event. Because I know that we have a reputation both in Brazil and abroad because of our sustainable activities. And with the regulated carbon market that was introduced and defined last year, we are now prepared to escalate our presence in this market. Today, we have 1.4 million preserve connectors with the support of Banco do Brasil.
The generation of carbon credits for the implementation of the projects with carbon credit and preservation of indigenous areas. Being said, we are present in the entire chain all the way to the trade of credit as there are many companies that need to compensate because of the legislation, we are becoming more prepared to operate in this market the boarding companies on one hand and also companies. It's a very interesting product for the BB.
Finally, I would just like to thank that we are very proud of being a financial institution in Latin America, that is a major reference sustainable financing. And we are also the main reference and sustainable finance in the world with been acknowledged as one of the most sustainable bank in the world. And we still pursue our [indiscernible] the sustainability. And more and more, we want to be the most sustainable bank, not only in Brazil but in the world.
Thank you I just want to leave a clear message to investors and more recently, we see both internal engagement and external, I mean the way the customer sees us all the indexes, both retail and organizational. [indiscernible] deliver the perception is very important in the eyes of investors because when you deliver and clients see what you're doing, then you have a formulation of success, you have friends. We have more than 45 billion in the market, and unusually external funding, we can -- destination money which is usually cheaper to small, midsized companies, et cetera, we can have the opportunity to these companies to we maximize we initiated a few years back and we are reaping benefits. When we say that the bank is seen as a sustainable bank or we will bank in the long run is that we are doing what it takes.
And to your point, Thiago, [indiscernible] is a consequence, but okay, we are outside the conflict zone and Brazil as a whole, we have one of the most -- I mean the cleanest energies in the world and we also have Banco do Brasil [indiscernible] I mean who is more ready to face this? We are. So throughout the year, we made the foundation that allows us to see better results. Today, North America [indiscernible] sustainable [indiscernible]. We are the most sustainable bank and [indiscernible] all of these framework from opportunities and also because we understand our clients.
We know that of that it will trade with us and all of the opportunities and everything else that we can bring in terms of partnerships and in building this long-term journey. So we will continue to be a leading bank in Latin America because we are doing this together. And this engine that the bank built will continue to accelerate even faster.
Okay, Ann Christina.
[Presentation]
Well, we had a very good [indiscernible] and sustainability and how this has been helping us. I'd like to move now to the next panel. We reflected all along on how to bring a date because the market has been questioning us considering our moment in loans, agribusiness opportunities such as [indiscernible] employees credit. So we'll speak a little about all of these topics. So I have the honor of inviting Felipe Prince, our CRO; and Jolson [indiscernible], our VP of Family Agriculture. To moderate the conversation, I'll count on Marcelo Oliver, our IR specialist.
Thank you, Jana. Thank you, Jana. Good morning, everyone. Thank you for joining us in our BB 2026. As Jana said, I'm here to moderate a panel with our VPs focusing on risk and business and to speak about the strategic management of credit, as Geovanne CFO mentioned in his opening presentation, we're going through a very unique moment. We are facing challenges in every business, and we've been doing this with a lot of transparency over 2025.
We gave you additional information on what is happening in agribusiness, payment in addition to other information to help the market in your complex task of modeling this scenario, given all of the uncertainties we've been facing.
Transparency brings us a bonus, which is our respect for our shareholders, but it also brings a burden because you ask more qualified and deep questions. So to struck this panel, I think that since we are here to hear the market, there is one question we need to ask, which is basically related to the flow of payments that we saw over the month of April. So could you speak about the business. What do we have in terms of visibility in the agribusiness portfolio, the agro portfolio? I know we've not come to the end of the month in but perhaps Prince and also speak about the flow of payments and risk that would be very important.
When we speak about the agribusiness, it lets like it's just one single thing, but when we're speaking about agro, we are talking about annual crops, soya bean, corn, wheat, cotton, we are talking about perennial crops such as coffee, sugarcane, fruits. And even when we talk about reforestation, we're talking about livestock. We are talking about dairy, poultry, milk. So each one of these activities has a different maturity cycle, a minimum time between the date when you start the process until the moment you can get income from it.
When we look at loans for the agribusiness, we also have to take into account the Safra plan. It's normally launched in the end of June, beginning of July. It goes from July to July of the next year, but agribusiness is a constant. You're always funding it. For example, in terms of, say, payments expected in April, only a small part of it was financed from July to now, the moment that the bank improved our resilience metrics and improved a lot our process of guarantees and collaterals, more than 80% of what we are getting by paid in [Audio Gap] the bank had challenges, how we adjust for that.
Looking at April data, considering just the first 15 days of April, we already judging that, that portfolio that represents only 20% of the total for this year was conceived based on trusted deeds with improved guarantees and collaterals, and we have a much more significant result in terms of delinquency, showing that by changing the way in which we work, by focusing on collaterals, this has given us good results. And perhaps you can see this in the presentation. Here, we have data regarding collaterals because the expectation of real collateral brings responsibility and it reduces the moral risk we have because if they don't pay, they can lose their property in the 2024, '25 crop year.
In terms of real collateral, we had 31% guarantees. In this crop year, starting July 1 last year, this percentage increased to 69%. And when we'll look a trust deed, which is a faster way for us to get collaterals, we increased it from 3% to 63%. So we start seeing a reflection on the operations. And I want to insist on this in April, we still have part of the contracted portfolio without these collaterals. Therefore, it's very close to what we have seen in the first 3 months of 2026. And this starts with what we've said. The bank has an inertia that is still appearing in the numbers. We caring that schedule of maturities.
Do you have any update for us in terms of what we can expect, in terms of flows of payment?
Perfect, Marcelo, good morning. Good morning to our guests in particular our shareholders who are attending and for wanting to understand what we are doing in the bank's management. Here we bring you a chart because we use a lot in managing credit with the reports, information, data that we use to be able to monitor our clients' ability to pay and so that we can also have predictive input for our negotiators so that they can approach our clients before the due date of payments.
As you all know, agribusiness has a cycle and was speaking about this, they have a longer cycle. Monetization will depend on the harvest, the adequate storage of grain and availability of the goods, so that they can be converted in 3 sources and this can be monitored so that we can have precise monitoring. We have to have all of this information in the organization. We totally changed the way in which we [Audio Gap] So of course, these payments are on time became slower or the payments were not made on the expected dates and of course when the margins are lower and when there's big competition for payment, of course, if you approach the client first, you get preference coupled with the volume of collaterals that we have to encourage growth to pay.
So we had the lowest level of payment in the past crop year. But now, we've improved our modeling. And the expectation is that we will deliver 95% payment rate in the 2025, 2026 crop year or during the year of 2026. Of course, this will bring us fewer operations to the workflow of collections. And this has to do with the stages of provisioning in Resolution [ 4966 ].
In other words, if we get payment, even if it's not full payment, it will be important so that we won't have to make provisions matching the minimum levels set forth in the resolution for [ 4966 ]. So the name of the game is now speed, together with data in monitoring of the production cycle of our borrowers. That's what we are investing in so that we can increase the level of payments so that we can bring about a gradual reduction of delinquency, therefore, reducing the credit risk. This was a decision made.
When the credit limits of the current crop year are announced the bank is now more selective naturally. And the consequence is what we can see in the next chart where we see the concentration of our flow of maturities. This is the agricultural maturity profile. So we have operations which are geared to agricultural working capital.
And another point that we have been investing on is in the cleanup strategy. In other words, farmers, growers need to show that they have an ability to pay, so that they can amortize this flow of payments so that they can be able to get another round of working capital financing. This is important because we will increase payments received by the bank. This will reduce our credit risk and it will carry lower delinquency in the future.
We also have a comparative chart which I think is important to show. It reflects the kind of selectivity that I mentioned, flow of payments in 2025 versus 2026. In 2026, it is more balanced and it brings a lower associated balance, a reflection of a policy, a better origination, better qualification of credit, additional linkage association with collaterals and then we start having better crop years compared to what we had before crop year, meaning statistically, of course, and compared to the previous crop year. And plus, there is another chart that is the concentration of soybean and corn crops and working capital financing.
As of April, we start seeing payments are being made and this chart, when they covered the data, this chart showed the reason for that, as [indiscernible] mentioned, we still have inertia of what was originated in prior periods prior to the changes made in terms of getting collaterals and so on and so forth. And it takes time for this to be reflected in the quality of the loan book.
Another question, which I think is related to this point because it has the potential of directly impacting the flow of payments, is there a new context which was not up until recently in the radar, but that brings a lot of volatility, which is the geopolitical context that we are living in now. Trying to make predictions about this would be too complex, of course. But I would like to hear from you, what kind of visibility does the bank have in terms of potential impact of this geopolitical situation and impacts particularly on this portfolio because there's a potential of cost inflation, this could possibly impact farmer's ability to pay.
Perfect, Marcella. That's a perfect question. Of course, this context brings about a new challenge of modeling possible compression of margins. But this will be seen in the 2026, 2027 crop year.
So with -- when the war started, the [Audio Gap] for the 2025, '26 crop, there will be no impact on the cost of [Audio Gap] might see an impact on the next crop year. This partnership [Audio Gap] January [Audio Gap] offered [Audio Gap] to go to discounts and lower rates, that the rate that we offered was very attractive. As a mix of funding led by Jolson, we offered part of controlled resources, part of free resources, but at a very attractive rate. And several growers in our portfolio took advantage of that and acquired their inputs at a very attractive financial cost and at price levels that were a lot lower because after the war started, the cost of phosphate-based products and urea increased by 80%. This is what we are monitoring, so that our credit granting modeling for the 2026, 2027 crop year will consider a possible cost increase that might come if this conflict in Iran is prolonged or not. We need to monitor this daily, monitor the impact on the respective production chains.
The bulk of purchase of inputs happens around June, July. But if this pressure remains until then, it will be natural for us to see a margin compression. And this margin compression will be considered in our loan-granting model for the 2026, '27 crop year. This is one of the points that we raised with our clients regarding the importance of maintaining regular operations so that they can have their credit available at Banco do Brasil because, again, we have long-term relationships. So it is only natural that we are perhaps one of the few banks that will have an appetite to grant these loans, of course, thinking always about sustainable credit.
And if I may add, of course, we're paying attention to the war and its impact, but it is important [Audio Gap] we see oil prices at $80, the next day at $110, the following day at $95. And as Prince mentioned, most of these inputs will be acquired as of June, July, August and September. So there's still some time for the process to be rebalanced. It is possible, forget to June and if the war is still happening, if the Hormuz still blocked or if there are limitations in the Strait of Hormuz. Okay, we'll be prepared for that. We're preparing for that, just like we are preparing for the debate about El Nino.
We are now looking at El Nino as a phenomenon that will negative impact the country as a whole. When we look at El Nino, from the standpoint of history, the Brazilian productivity remained kind of at the same historical levels. Delinquency remained kind of at the same historical levels. What changes is that there are regions and products where there is more credit crunch. But when you look at the country's diversity and operations, the expectation. Well, it is what Prince mentioned, we're preparing for the next crop year so that we can look in more depth to those states and to micro regions and micro crops that require a more focused approach and credit granting because they will tend to face more problems in terms of droughts and such.
Very good. Price mentioned opportunities and the tools we have of working capital funding and other resources. We also have the breakdown and flow of payments of Regulariza Agro, MP-1314 and also the agro extended agricultural loan portfolio. In terms of MP-1314, could you speak about this Regulariza Agro program? It would be interesting to hear you.
Well, it is kind of what I mentioned in my first answer. It has to do with the diversity of our portfolio, diversity of production and diversity of agribusiness in Brazil. It sounds strange, but part of the problem we are living now originated in the success in the high profitability of prices that we had between 2020 and 2023 because of the pandemic and the war in Ukraine for soybean and corn, the margin reached more than 150%. That was a moment where ag profitability was among the highest in this century in terms of margin, especially in crops that bear more weight in funding and production, soybean, corn and beef. That's when producers had the highest income, and that comes the contradiction. The moment that they had more income, they invested more in machinery. They invested in machinery at a moment when they were costing a lot because of the pandemic.
They bought more land that required more working capital funding. They immobilized their capital because they had surplus capital because they were more profitable. In that period, our delinquency was in that range of 1% or slightly above. And at that time, farmers had this expectation that they would be as profitable as they were being for a long time, and that was the big mistake. So for 3 years, they had very high margins.
And then 2024, there were 2 simultaneous problems. The 2023, 2024 crop year that started in the end of 2023, facing a weather problem. There was that event that Giovanni mentioned, the flooding in Rio Grande do Sul state, we had droughts in Parana, Mato Grosso, Mato Grosso do Sul and Minas Gerais states. That was a moment when there was a renegotiation, a postponement of maturities. And coupled with the climate problems, there was a price reduction. Growers with a margin of 100%, 120% and that margin dropping to 30%, 35%, which is a good margin in historical terms, but it was a fast plummeting.
And in 2024, 2025 crop year, they had to pay for the new crop year and higher interest rates, and that's the effect of the high interest rates. They had payment or postponed working capital funding due to climate events or price reduction. And the margin of agricultural products is not low. The problem lies in the amount of payments that farmers had to make at that point. So higher interest rates, coupled with postponed agricultural loan portfolio, lower margins, a problem in the flow of payments, making payments more difficult. And here, we are talking about soybean and corn. But if we include livestock, beef that has a significant weight in funding, that adds to the problem, and that generates cash flow problems.
And then we had MP, the provisional measure 1314, agro that began in the beginning of 2025 because we needed to find a solution to rebalance the cash flow of growth because it was not a problem where we have a reduction of area, reduction of productivity. This is a situation where we are hitting a record mark of planted area productivity and production also for soybean and corn. So this is a moment where income is being generated in the field, but not enough to pay for all of the financial obligations that larger farmers particularly had.
So the MP1314 came with a view to help rebalance the flow of payment over the years so that farmers over the next few years can get reorganized financially speaking. With MEP, we got to 36.5%. In the end of Q4 last year, we were at 35.5%. A number of operations were waiting to be recorded. It's now 36.5%, of which 33.3% were 3 resources and the other 3.2 were resources funded by BNDES concentrated mainly on Rio Grande do Sul state. This helped to give farmers the conditions so that they could maintain themselves. And there was a fundamental point.
After MP1314, we required collaterals because these were loans to pay past loans. 96% of the MP operations have real estate collateral. Of these, more than 70% trusts, which give us an even farmer and fast collateral to be executed in case of need. So MP1314 came with that approach. It was fundamental, not only for the bank but also for growers, agribusiness as much as they're facing difficulties exist, agribusiness is producing and hitting record marks in planted area productivity and it is one of the engines for Banco do Brasil. BB will continue to fund the agribusiness.
No longer as we were operating with a 1% delinquency rate, we expect that delinquency will go back to 1%. But until then, we are adapting. This is what Prince said, we are adapting our loan granting policy, but we'll continue to fund agribusiness. Agribusiness is the engine of many of the municipalities we serve and the smaller municipalities. So in our guidance for this year, we are working to maintain the portfolio, minus 2, plus 2, again, to continue with our operation in agribusiness with a more structured sustained operation that will bring us good results mainly in terms of cost of risk.
Excellent. And still on this front, I think that it is important that we cover because MP1314 had a beneficial effect on capital. And also in our interactions with the market, the extended portfolio or postponed portfolio, given the dynamics in the past quarters, draws our attention. And it is seen as a proxy of renegotiation for some clients. So I'd like to hear -- could you elaborate on that?
Perfect, Marcella. This is important. Let's start with the postponed or extended loan portfolio. We have to understand the cyclicality of the agribusiness to understand the difference between an extended portfolio and the renegotiated portfolio. Prior to contracting or to postponing an operation, we do a technical evaluation. This is done by people or digitally by geo-referencing. And the bank can understand the production capacity of that potential client, their ability to recover from adversities they faced in the prior crop year so that this recovery will be sufficient to give them an ability to pay in the next crop year.
In addition, all of the operations require a down payment. So they have to make a down payment to access an extended -- an extension to their payments. We just want to offer an opportunity to our clients. Most of them have been operating with us for over 15 years. we want to rebuild their ability to pay so that in the next crop year, they will be able to pay what they owe. So the extended portfolio is adapted to the flow of the clients' crops and activities in their agribusiness.
BB Regulatiz Agro, MP1314, it is what Bo mentioned. The MP, the provisional measure establishes matching leverage or clients' leverage to their ability to pay. So there was a maximum time frame of 9 years in the provisional measure, but each operation was calculated according to the client's ability to pay. It was not one single time frame or one single condition. The operations were decided according to the individual ability to pay of the clients.
In addition, it counted on the new matrix of collaterals in the collateral's framework where we privileged trustees. This includes a prior process of choosing those clients that would be eligible with an operation with collaterals being production votes that were eligible for mortgage and most of them, depending on risk and leverage, had their loans associated with a collateral trustee. And that was very important for the portfolio, the MEP and MP1314 portfolio. And this was important not just to improve the flows of payment, but also to maintain the clients' activity because they are an important engine of generating GDP in Brazil, which is our agribusiness.
And because BB is reiterating our support to the agribusiness, we enjoyed the benefit of the possibility of using as base for our capital operations that were renegotiated under MP1314.
Why is this important? Well, because it added 140 basis points to our CET1. And this is always with a 5-year vision, right? So this brings stability to the capital base of our institution, which is very important. And this increases or improves our consistency in facing the challenges of MP0966 that we paid. One installment was paid in January. There's another installment of the hybrid capital instrument maturing in July, the implementation of the rest of Basel III.
In other words, the bank solidifies our capital base, not just to face all of these regulatory events that I mentioned, but mainly to maintain that engine of revenue sources, revenue streams that Giovanni mentioned and to keep that engine strong. In other words, our capital base will allow us to continue on this formidable journey of expanding our businesses. The challenge is what we are working on, and we're working on making minor changes to increase the risk-adjusted return of this fantastic revenue source that the Banco do Brasil conglomerate produces.
I have 2 highlights here. First, more than half of the transactions already had post fixed interest rates. So maybe a drop in Selic can also benefit growers, and this will link to our assets. This will ensure better payment capacity on the part of farmers. The second highlight, which is the forbearance portfolio, more than BRL 20 million of this portfolio refers to investment credits, and we just put it at the end of the line. So if they had 3 installments to pay and he defaulted in one, we postponed it. So it is considered forbearance, but it does not concentrate payments in the hands of a grower in the same period. So the amount is a bit lower. But we just brought it here just to show the total volume of resources that somehow one way or another were postponed in the past few years, right?
Okay. Thank you. There is another topic. I think it's a last topic, still referring to agribusiness, and that is related to the reorganization. I mean, we talked about a number of the new cases that we had. I would just like to mention that the amount in terms of financial volume does not match the portfolio, even if you look at the reported figure at the MD&A, there is some organic difference because this is flow rather than the balance. But Prince, I would like you to put into perspective for us this variable because maybe this is the most complex variable to estimate. And this is also something very new that started with changes in the regulation and the number of cases accumulated. So what is the outlook for that?
Okay, Marcella. It's an important detector that we had already identified, and we mentioned what would be our opinion related to that instrument, especially when it comes to growers and farmers because they should be able to get resources some other way because this instrument limits that funding capacity. And once this capacity is limited, this will impact yield, profitability and even the possibility of not having a subsequent harvest. So I think it's also important to say that the bank -- I mean, Tarciana is there. Tarciana has always provoked this because we have to take advantage of our position in agribusiness, not only in regards to granting loans, but also in building a sustainable environment for agriculture and livestock.
And then we talk to our negotiators, and we go to every single location in the countryside. And we have a manual explaining how this reorganization works and how harmful it can be if it is poorly used. We have our headquarters in Brasilia, and we are always open to talk to all of the parties involved. But mainly, it's important that we standardize the way decisions related to supervised reorganization operate at the judicial level.
So there was a document called 2016 and the National Justice Council set up the norms and rules that have to be followed by first court judges once people file for supervised reorganization. It could be from any company, even agribusiness companies and that [indiscernible] talks about the limitations and the areas where the company can operate. I mean, we are not talking about taking all the assets from farmers because this has to do with the deed of trust because if you can only one property, all of the other assets come along. And many decisions, many court decisions acknowledge the need to prove that there is no -- the company cannot get any additional funding, meaning that they have more assets. They could sell one or another just to be able to pay the debt.
So you first have to do your homework, sell some property, I mean, reinstate your payment capacity instead of coming to the courts to ask for in court reorganization. And we are thankful for the judicial committee because it finally standardized and established guidelines for the future.
And what do we expect? Not only expect, but we already start seeing it that there is indeed a reduction in the number of new cases, not yet as we expect. But I understand that this is the reflection of the situation. And now when we are putting together new cohorts, this is very good because we have farmers coming to us to exit this supervised reorganization because they are now investing in the new crop season, but they cannot find enough funding to do that. So we are trying to help companies to exit the supervised reorganization situation. So this will take time, and it requires resilience. But most of all, the bank can be that entity that can render growers some legal and financial assistance, helping them to make more assertive decisions and recover their productive capacity.
I mean, I know that the clock is sticking, but there is one last topic I would like to mention before you leave, and that's private payroll loan. This is quite important because we are becoming -- this is becoming very important, and this is an avenue of growth that is part of the bank's belief. We get a lot of questions from the market about how things are going, what is the appetite of the bank. So I would like to hear from you one issue related to risk and modeling and the other part related to product risk. So why is it that Banco do Brasil is so comfortable in believing in this product from day 1?
I think it's an opportunity. We already talked about that in some talks with our investors. It's an opportunity that found the bank's strategy. Strategically, we wanted to also operate with private payroll loan with the introduction of the workers' credit portfolio. The entire strategy was thought in terms of maximizing risk-adjusted return. And this is important, being very disciplined in our execution and using risk-adjusted return for every operation transaction in the workers' credit. We do not negotiate, and we understand all of the peculiarities of the product when compared to the behavior, not only the behavior of our clients, but the new clients that we acquired through that line of credit.
I mean, payroll deductible loan is important, but it's not a decisive thing because unlike the stability that you have in the public sector, there is also volatility in private jobs and to maintain risk-adjusted return untouched, you have to have strategies to work with that volatility. So we only work with clients that are account holders because sometimes eventually, if they lose a job and I cannot deduct it anymore, if we are granting credit to those that are working for the bank, I can deduct it from their account, and I do the risk evaluation of that individual regardless of the fact that he has a very stable source of income.
In addition, we also linked that modeling to the legal entity. First, we only work with entities that are clients of the bank, we introduced a score where we combine information from the employer and employee. What is the turnover of the company, how long the company has been in business, number of employees, I mean, throughout the company's history. So we collect a lot of information that help feed the models. And at the end, we have a combined rating where we look for greater assertiveness before granting the loan in addition to certainly considering all the improvements to the product, such as linking all the guarantees through FGTS and making it easy to link the deductions from the payroll when the individual changes jobs. And we were one of the first ones to do that.
In fact, we were the first bank to run a base that changes the link. I mean, we didn't wait for that pref, but we identify the changes in job links to reestablish the link and the payroll deductible loan. And with that, we preserve the clients' payment means. I mean, even though I'm VP for Agribusiness, the individual's portfolio is also linked to our area. The bank has great expertise. We are leaders in public payroll deductible loans, and we took advantage of our expertise to get into this market that, in our view, is one of the main drivers of credit growth. Well, because we have better rates and more in tune with the capacity to pay. And that's why delinquency is lower, not only because of all of the collateral behind it, but also because of the amount of the installments. We are talking about a portfolio that is growing. It is new, but we believe that these most recent changes, Data Previa insurance and changes in jobs, this will help us improve NPL numbers.
Our portfolio encompass 17.2 billion. The vast majority comes from this new process. We already have 13% share. I mean, our percentage adverse was almost 0 in this private portfolio. We aim to achieve 20%. Our average ticket is BRL 7,900 average interest rate is 3%, it could be higher or lower depending on the risk assumptions. I mean, average payment term is 52 months, 53% already get their paychecks to the bank. Many of them hold an account with us. Employers. I mean, its vast majority, 86% of the employers are clients of the bank.
I mean, we also have a lot of new clients. We are granting new credit for new clients to develop new projects. We have 1.2 million clients. We went after these clients in the open sea because they also came to our bank and 300,000 new accounts were opened after the initiation of this process. And this is only after 1 year of operation. We already have an operation encompassing 197,000 companies. It's also important to mention that we are bringing clients. We are also introducing new opportunities, be it as workers or new companies, companies that were oftentimes clients of us. But with that new tool, they intensify their transactions because we understand that, that was the right bet, and we will reach 20%. This is our ambition, and we have what it takes to get good returns. So this is our expectation.
Maybe our main focus at the moment is this kind of credit and the response we are having is very positive. Well, thank you so much. And with that, we conclude this panel. I would like to thank Prince and thankful for being so transparent and for all of the data that you brought to us. We will just have a short break, and we will come back in 25 minutes for the second block of this event. Thank you.
[Break][Presentation]
Welcome to the future of a banking relationship. Hello. We are back. Before we begin and before we continue with the second block of BB Day. I'd like to ask you for a contribution. Please fill out the satisfaction survey. If you're watching us online, the QR code is on the screen. Please do follow up the questionnaire. It is important for us to improve our communication and our relationship with the market.
I will start now a panel to bring you the strategic view that BB has been developing over the last few years when we speak about a bank of every client. The purpose of the bank is to be relevant and to work closely with those lives at all times. And when we aim to be this bank that is specialized in personalized for every client, we can by using technology, enable this relationship and accelerate it, speaking a little about this, how we can join the best of digital with human relationship. I'd like to invite on stage our VP of Retail Business, Calra Nesi; and our VP of Digital Business and Technology, Marisa Reghini.
Good morning, everyone. It is a pleasure to be here in another addition of BB Day, a different kind of panel now, one that will allow us to share what we are doing every day in this journey to deliver a bank or every client. I'm Carla Nesi, Retail Business VP.
Good morning. It is a huge pleasure to be here with you. I am Marisa Reghini, VP of Digital Business and Technology of the Bank. We will speak about how we are developing this trend. It's almost an obsession of ours of delivering, one, Banco do Brasil, which is deeply digitally strategically complete in terms of solution offering and essentially human. We believe that this is a consistent path that has been giving us good results. And all of that starts with a deep knowledge of our clients. This is a journey that started at the bank more than a decade ago, understanding how each client behaves and their context, anticipating their needs so that we can provide inputs so that our solutions can be improved.
Considering that every month, we have more than 28 million clients interacting with us across the different channels, digital channels, physical channels with a human contact, but also in this combination of the physical and digital world, which is also an assumption in which we believe. And we think that this is a point of no return. We do not compromise this in terms of delivering the best experience for our clients from all segments. With a deep knowledge we have a value proposition for each segment of our clients, understanding that the path to specialization is a point of no return. When we speak about specialization, we're speaking about all segments of clients, the relative potential that every client has.
Considering the behavior, the way they like to relate with the BB brand. This platform that was built over the last decade built in a consistent and robust way has allowed us to offer this integrated ecosystem, which is incurred on a massive use of data. And we know that the context of AI applied to this process has been transforming and will continue to transform the way in which our relationships become a reality.
Marisa tell us how this technology, which is so key in this process has helped us along the way?
Sure. That's a story to tell. It's important to say that technology is not just a backdrop. Let's alone just a back office of Banco do Brasil, it is a lot more than that. It takes a leading role. It makes all Banco do Brasil businesses possible. In addition, it's a provider of a brand. Technology is one of the brand territories of Banco do Brasil. In this context of investments in infrastructure, data, artificial intelligence, security, all of that reinforces the credibility that our clients feel with our brand. All of that deepens this digital deepening that you talked about.
Of the 36 million active digital clients, 24 million are clients who relate with us via WhatsApp. In the last year, another 4 million clients migrated to this channel, more than 800 million transactions. This is huge. And this vision of the future is very dynamic, but our deliveries happen in the present.
Marisa, we can see that technology is a fundamental element for us to go after what we defined very well in our strategic strategy, looking to be -- to have client primacy. [ Jan ] spoke about our purpose. And I think that there is competition in the market in the relationship of clients with any brand. But we need to be relevant. We know it's a difficult market, looking for clients' attention in their business journey is a daily challenge. And we have to understand that in different ways in individuals, in SMEs this is fundamental. Like I said, we've been working on this process for over a decade now, evolving our analytical models, our in-depth knowledge so that we can offer an ideal context.
For example, when we speak about high-value, high worth segments, pretty much this be by the competition. Our segment [indiscernible], we see high levels of engagement, more than 80%. And we know that a more engaged client consumes more products, brings us more earnings. So we have to pursue this to increment this regardless of where the client is positioned in the relationship life cycle. We have to retain the clients. We have to make them profitable. And these are concepts that the cross-cutting and have a reflection on different solutions. We know that every client is unique. Their individual has to be respected. It is not by chance that we've been speaking for a long time about hyper personalization, understanding the client as an individual understanding that the digital relationship with every client is different through our digital solutions. And with the help of our team of professional consultants interacting every day with our clients, we know that we can deliver the right measure of digital for every client.
Speaking about practical examples of how we are doing this, I will bring you a recent repositioning. In the last earnings call, we spoke about how we redesigned and updated our value proposition for the [indiscernible] segment, understanding a segment of high worth clients. So now we have high [indiscernible] understanding that we have to do a portfolio review so that we can have more premium services offered to these high worth clients, providing them with a new type of card, [ Altos Live ]. And I think that this product is very much valued by the segment of high-income clients. And we wanted to be well positioned so that we could win more clients and have banking primacy with a consistent portfolio. We have a team of more than 7,000 professionals operating with this segment. I think that we provided them with more training, which aim to have 100% of our relationship managers and the systems up to date to serve these clients. And we have a different positioning, and we are located in different places now. We want to offer a completeness of solutions.
And for the high worth clients, we still need to offer them a digital solution at a physical location. That would be the perfect positioning. So our commitment was to increase this client base by 25%. We're talking about BB Estilo. We are 1 quarter of the way, and we are sure that we are evolving on the right path considering the dynamics we've been observing how consumers translate their decisions into behaviors. And we are up to date to continue with this dynamic very effectively. Likewise, we repositioned ourselves in the corporate portfolio. There is a segment that works with customers up to BRL 50 million of income a year. So we also reconfigured our brand, BB Estilo, understanding how the value proposition can expand into a more encompassing view that also includes advisory services.
For us, the main objective is for the client, SME or large corporate has a long-lasting relationship with the bank. So our success is when our client is also successful. We know that acquirer is something relevant. And I think here, we gain a boost when we also look at partnerships with Cielo, understanding what journey we have to pursue if we want to give clients a very encompassing view of solutions. And I think to that end, we are doing our homework, and we already see the response. We had 20% churn reduction. This business solution market, which is very disputed every day, we understand that this reflects our price positioning because we look at this entire value proposition. We have 7,500 people dedicated to BB Empresas. They are assisting and advising our clients every single day in that credit journey.
We believe that valuing, acquiring and principality in this sense also helps us in terms of renting loans, especially when we want to move forward with prepayment of receivables and also collateral. We also understand that once we have new remote models, these remote models can also help us scale up in our advisory service, and this will add value to this segment. Last year, we introduced new models like the corporate digital branch and people that are experts in topics like foreign trade, investing, trying to reach out to clients that usually we don't have a set of clients in a certain geography. But we are still keeping that client tied to our very complete value proposition. We understood that there is great potential to grow.
And in 2026, for sure, this is an initiative where we will certainly impact and gain more clients throughout this journey. But to reach this growth, we have also to provide solutions that are very useful to our clients. And I would like to highlight 2 of these actions. One is called Minhas Finances, earmarked to individuals, and we are pioneers in this type of solution. And this solution through the app gives insights to our clients. So sometimes something that may seem very complex can become something more intuitive, and we can help them throughout different moments of the client's life. It's totally personalized. We do not charge for this bespoke too. And when the client allows us to look for data about him and other financial organizations within Banco do Brasil, he has a very integrated view of his financial life.
[indiscernible] is another important tool we can turn large volumes of data using a lot of AI, providing insights to clients. We can manage the entire financial flow of the clients, pointing out to the best day to sell, what is the best way to pay things. And this is important for SMEs because sometimes they mix up expenses from the individual and the company. You also talked about Cielo, and I would like to give you some information about the technology behind Cielo. We intentionally integrated Banco do Brasil's technology to Cielo's technology. This brought about better automation, better processes, improvements in the journey so as to provide greater efficiency to the process with Cielo.
We also believe that when you have a technology that focuses on the client, this is what really drives Banco do Brasil. Every journey includes personalization and a lot of AI, be it to help our clients in their everyday activities or also helping the clients to build his own state. That way, we can translate complexity into clarity, adding better and better experiences to our clients. But we know how diversified Brazil is. We are present in 94% of all of the municipalities of the country. And Banco do Brasil mirrors Brazil.
So please tell us a little bit about how customer service is evolving?
Well, it's important to highlight that we also know that we are the best digital platform for any segment of client. And we are totally convinced of our position. And we also want to offer this value proposition to all of our clients, which involves understanding the potential of every segment. Being present in 94% of all the municipalities of the country, we have to understand how we are inserted in that community and what is our potential to extract value. Sometimes to understand the visibility of a POS means that we have to have a bird's-eye view and look at the large company that is present in that municipality.
Not only we are looking at that geography and even though that is a location for retail, we don't just look at our presence in this segment because we understand that we can capture other businesses because we have a very large view of the entire radiography. And in this pursuit to evolve our models, we also understand that assisting customers in the digital space, it's also another way to get more value out of that relationship, expanding our capacity to integrate humans to the digital space and our professional throughout the journey. And this has been an obsession and an ambition at the same time. We often say that our goal is that each of the bank's 91 million clients should be assisted in this bespoke digital service, understanding their context, their needs and where we find the right balance of this digital combination.
Just as with corporate and SMEs, we are also making important advances on the individual side, we have remote teams that provide efficient assistance, and they do establish relationships with individuals that are less complex when compared to companies. But at the same time, generates large opportunities, great opportunities in this -- and the assisted models, the digital branch of the individuals. I mean, on the individual side, just after 1 year of its inception, we were able to grow margins by 150%. Today, we have 3 million clients assisted through the new models. And in 2026, we will continue pursuing further expansion. And in this process of growing digital, I must say that we've been very successful because in addition to knowing our clients very well and investing a lot in modeling and behavioral patterns.
We are also investing a lot in technology, finding the best market solutions. And that resulted in our CRM 360 platform. We made a decision 3 years ago because we understood that scale in our retail model, if we want to deliver hyper personalization, that platform needed to grow. And in our CRM platform, our CRM platform was already in existence for 2 decades. And together with our partners and after extensive work, which was quite complex, but it also involved integration with our IT department because we understand that excellence in CRM and combined with our capacity to deliver effective results and in large scale to this large customer base was another efficient way to extract value.
We also believe that -- I mean, people are talking a lot about applied agents came as a contribution to the process. Every client -- I mean, we will have -- for every client, we will have a human agent, people truly qualified in the process and the machine because this is a move that is challenging us every day because it is happening really fast. But at the same time, we understand that Banco do Brasil has a very consistent platform and a very good technological platform. Therefore, the bank is prepared to advance in its business referrals and recommendations and Marisa is my partner.
And the highlight in this past quarter was the increase in the use of AI and how much we invested in the past 3 years, more than BRL 600 million was invested in CRM. All of that because we wanted to have more than 1.2 billion transactions with our clients. And there is yet an important concept that I always like to refer to because sometimes we say we talk about digital and digital for us it doesn't mean that we will start working through the app and then we go to the branch, but it involves a complete relationship ecosystem with our clients because, in fact, what we want is to deliver the best possible experience whatever they want.
To continue on that successful trajectory we know that this very powerful engine. To enhance this powerful engine, we have to look at our technology architecture, bearing in mind that it's important that we have good pillars to sustain this consistent growth.
So Marisa, please tell us a bit more about that. We know that this involves a lot of complexities, but it's a trajectory that we've been a part of, and we are very confident about the next steps. So please tell us how do you see the current moment and the future challenges.
In order for us to have one bank for every client, we believe that technology has to be invisible throughout the customer experience. It has to be impeccable in terms of its execution. And to that end, we need to be highly available with good performance and good security. Investment in technology is something consistent at the bank. In the past decade, we invested more than BRL 44 billion. But only in the past 3 years, we invested BRL 19 billion. Regardless of the short-term results, we invest in technology for the long run because we understand that this is necessary for the bank, and it's also part of our long-term corporate strategy. And this is nonnegotiable for us.
Well, I'm very happy to hear that. So I'm so happy that I can also benefit from that. Another important point, and [ Carla ] talked about the foundation. And I would like to mention our technology platforms. By having technology platforms, Banco do Brasil can deliver better solutions at a faster pace because through the platforms, we can reuse several components. In addition to that, there is governance Imagine a bank the size of Banco do Brasil. If we don't have very well-established foundation, something maybe wouldn't work as well. And all of that gives us a lot of operating efficiency.
Another highlight is our cloud strategy. We have a hybrid cloud strategy today. And that means that we have our private clouds developed by Banco do Brasil, but we also use all of the other available clouds in the market. But even though we see the possibility of using several clouds. It's also important to say that we have a platform that helps us decide which cloud we use at any given moment. And why is this important? Because then I will go back to our operating efficiency because it allows us to get the best of every cloud. And we work a lot based on that strategy at the bank because this is a crucial enabler and it helps us to look for new technology trends in the market.
Relevant subjects in the financial market today like fixed, open finance and our security models and even CRM mentioned by [ Carla ], all of those systems run in our own cloud models. I mean, to conclude, now we entered the last phase of our operating mode of working. This is the way we've been operating at Banco do Brasil. Our teams are totally integrated in the IT business. That's why we are here talking together because our subjects are very integrated. All the teams are organized based on the customer journey. That's important. It provides greater scale. We can deliver faster, and we can also boost our operating efficiency at the bank. One bank for each client can only escalate on the digital space if we always have an expert human being and we work with that every day. But we know that we didn't change the way of working in the headquarters alone.
But tell us more about the new relationship patterns for the branches.
Well, it's important that we say that we believe in the physical space. And I don't think we are wrong. Some recent survey indicated that for more than 70% of the people interviewed, the physical interaction and the physical POS is very relevant, particularly when we talk about more complex businesses. So we do believe that this combination is very valuable, and it will continue to be valued, particularly because we understand that AI can increase human productivity. And we adopt that because I think that we can get a lot of value out of that relationship. But looking at how our physical stores are organized because we talked about efficiency and IT management, I think this is a highlight at Banco do Brasil. But it's important that we take efficiency to all of the areas of the bank, in all physical spaces because it is aligned to the evolution of our models.
When we inaugurate a BB POS, and we just saw a video before this panel session, we are taking 3 structures that serve different customer services, but understanding the correlation among them or the capacity of extracting value and everything goes into the same environment. So advancing in shared environments that have a more robust structure and navigating throughout the system is important. But it's also important that in that geography, we also add other additional structures to the hub, delivering more services with more specialized teams. And this helps us to capture more efficiency. Again, the physical context at the right measure for every client, understanding that advancing and evolving in lighter weight models of physical structure with all the technology support will be the way to optimize our retail network, which is quite wide and broad. I think our portfolio footprint is based on these assumptions.
And on digital solutions with digital solutions that we take to the brick-and-mortar context. I would like to highlight that part in the corner of the slide. It is a video conferencing of digital service. This is materializing physical. This solution, well, a client goes physically to a POS of Banco do Brasil and I suppose that they need a more specialized service. Then they connect with an expert on that topic at hand, and this expert or specialist can be anywhere in the country. This is a very interesting solution. It's happening already in 100 branches of the bank. By year-end, it should reach another 500. It is important to highlight that in order to have this kind of video service, we were able to improve the connectivity of the branches, the infrastructure of the branches.
So we updated the infrastructure in the last 3 years of all BB branches. This brings greater performance, security and availability, bringing more resilience to the business.
Marisa, I'd like to add something to this. Something I believe is important to mention. When we talk about digital in the brick-and-mortar context, we have to understand the particularity of every POS. We're in a large city where we have a certain level of connectivity. But if you're in the north of the country in remote locations, the infrastructure is kind of limited. So we have to understand what is the ideal combination we take to every service that we offer, to every context of service. This is what we've been doing and we have been investing in.
I think that for the last 2 years, give or take, we reorganized the management of our channels to have this omnichannel view in our strategy of a digital footprint. But we want to have a digital presence and we reinforced this process because now we have a department dedicated to it to make it more robust because we understand that accelerating this process involves an integration of all of our departments and divisions. So we take advantage of this important moment of a new way of working to reconfig this whole department and to scale up this process more quickly until 2030.
So let's speak a little about the 2030 vision. How do we expect all of this to happen? Well, we have the coexistence between physical and digital channels. That coexistence already exists, and it will become more intense. That's very clear to us, right, Carla.
Digital is indeed a structural component in this whole BB context, but an important point, human service continued and will continue to be extremely relevant in all of BB processes. Another important point of note here is security, digital security. That's another strong pillar of BB, particularly at this moment when many clients see us as a safe harbor in this whole context that we are living in our country. We have advanced a lot our -- we improved, increased our investments in security. In the last 3 years, we increased our investments by more than 460%. And how interesting. This allowed us to prevent 95% of fraud. So this is something that we are doing more and more. It's very labor intensive, yes. And we are using AI. It's important to highlight that a lot of news we heard in 2025 of possible cyberattacks, BB and its clients were not impacted by those. That is really good news.
Now speaking a little more about the platform of service. Here, it is important to highlight that the whole CRM investment ensures that any interaction with our clients on any channel will feedback on a very well-organized database of data. Marisa will speak in a minute about governance, and we understand that this is another important pillar, structured knowledge, understanding the profile, the context, the digital maturity and relationship model of the client. Not all clients, depending on where their location and their personal conditions have security as an important item, but they adopt the digital. So we have to consider the relationship model because it dictates everything. We have to combine this with the business complexity for a farmer, if they want to get a loan, a working capital loan, if we are going to provide consulting services on their harvest, on their crop year, again, all of that will be made and is made by extremely skilled professionals. This combination will help us decide what is the best channel for the interaction.
The voice of the client always comes first. And we have to understand their ability to adopt these channels to have faster resolution for their issues and better solutions, whether this is going to happen through a bot, AI, human interaction, eye-on-eye, key-on key because we cannot deny that WhatsApp is a significant means of contact. All of these interactions feeding back to this great database so that by using AI, we can take some recommendations directly to our clients, take recommendations to our employees, understanding that digital at the service of the employee and the different points of service will also accelerate capturing value. It is an integrated view with channels converging with a proactive advice and consulting to improve the journey of clients from all segments.
We understand that this is a return path. We just have to accelerate a decision that has already been made. We have no doubt about this. We spoke a lot about AI, artificial intelligence and has been supporting us in all journeys, integrating digital with human. But there is another concept that we use, which is extremely relevant for BB, which is AI to potentialize the human element. To us, this is absolutely fundamental. And the most important evolution we are working on at this moment is to lead the traditional use cases to use more and more our bots, our agents. They help us execute tasks, orchestrate flows, talk with one another with a lot of governance and monitoring and trackability.
I've been frequently asked by the market. Scaling up AI is just adding more models, more models using AI. But it's not exactly how we see this. The scaleup will depend on reliable data above anything else, will depend on consolidated databases. This is another differential of BB. For more than 20 years, we created we decided to create what we call corporate database, which means we have one single system for client rosters, one single system for credit analysis. And even CRM, which is the most recent, was something which is cross-cutting in the bank. And why is this important? Can you imagine over the last 20 years to be feeding the same databases of our clients? So now when we build the models, the databases are much more solid. But for this, we are working on data governance. This is a very relevant point. BB was the first bank to devote a guide of AI best practices.
As [ Giovanni ] talked about, he showed all the planets orbiting this big BB conglomerate. Well, in addition to having database solid databases, we can exchange information among the companies of the conglomerate. This allows us to potentialize information exchange and thus improve the experience of our clients. This is the conglomerate strategy that we talked about in the beginning.
Let me give you an example of how AI is already helping us at BB. This is an [ MFX ] dossier. This is not very standardized in the financial market. The clients submit a lot of documents for us. And there is this and flow of documents in a very complex process. We challenged ourselves. Let's try to have an agent, a bot to help us and look at these interesting numbers. This part of the process that used to take 14 minutes is now taking just 4 minutes, efficiency of 90% of hours. And why is this important? Firstly, the process is being handled by an agent and is 90% time efficiency will allow our employees to operate more directly with our clients, working as experts of foreign trade, a topic that they already master. So that's the way to go.
Another point that is important to highlight, we were pioneers in the financial market. It is a big program that we launched in 2024 that we call Academia, but it's play on words. AI in Portuguese is [ IA ] because we believe that AI has to be beyond the walls of technology. AI has to be present everywhere in the bank for all of our employees. This academia was important because our colleagues could learn more about these methodologies and how to use AI in their own daily processes. In 2024, in the first edition of academia, we had 24 people enrolled. And now we have just launched just last week, we just launched the second edition in 2026. Our expectation is to reach out to 30,000 people, and our focus will be on GenAI.
Right, [ Maurice ]. It's important to highlight that it's not just about taking people building their skills regarding AI and for a massive group of our employees. We understand that by -- we should also train our leaders in this new context. And I'm talking about retail, for example. The leaders of our teams all over the country, they have to be better in their actions. The teams are no longer the traditional ones to have 10 or 15 professionals in my team. And -- the manager will reach out to the team members. Now we believe that there is a new dynamic where the machine's action will be included in the process. It will broaden the ability of conversion, and it will increase the productivity of every employee. And this is key for us to manage teams from now on, this is a compulsory skill that every manager should have. We are looking at this with a lot of attention.
Very well. And coming to the end, this is the icing in the cake. I'll speak about something which is already very good and that will improve even further. I'll give you a spoiler now. We're very proud to have an app that we call App BB. It is very well positioned in the app stores because it is recognized by our clients. This is the best testament that we are on the right track, but evolving is always necessary. And I think we always wanted to make our app a totally accessible environment, a full digital branch that contains a whole portfolio of solutions.
Also looking at our strategy as a conglomerate with a single view of the client, allowing us to have cross-selling and allowing us to take advantage of every journey. When I talk about accessibility, I'm not talking about the essential concept of visual or auditory accessibility. Of course, we have that as well. We ensure access to the visually and hearing impaired. But I'm talking about different versions of mobile phones. We know that our country is very diverse. We have different operating systems, different devices. So our architecture and technology platforms, here I am trying to speak about technology. But anyway, our platform-based view is important to make sure that our app will run in more sophisticated devices and in simpler devices as well, providing every Brazilian a possibility to relate with BB and access 100% of our solutions.
We have 29 million active clients on our app, but we are also convinced that what is already very, very good can be even better, right?
Absolutely. The evolution of our super app, we are calling app BB 5.0. It will evolve the mobile platform that we created years ago. This is the importance of creating platforms, and this is so important for the BB context. We are evolving this platform. It is going to become a lot smarter, relational, a more fluid interface, a more responsive and more modern interface. Undoubtedly, the use of artificial intelligence will help and it will be intensified. And we have a video to show you how the App BB 5.0 will look like.
[Presentation]
All of that. Great level of security. I think this is proof that once we put technology, data and intelligence to serve people, we can certainly increase proximity, delivering value every day. We are a retail bank. So we personalize in mass. And we can also deliver good value. And this is how we deliver one bank for every client every day. This is the way we build Banco do Brasil, deeply digital, strategically complete and essentially human.
Thank you all very much. Thank you. So that was the message we had for you today. Thank you.
[Presentation]
Well I think this last panel shows something very unique about Banco do Brasil which is the relationship and the proximity we have with our clients. Whenever we talk about relationship, we also understand that this relationship steers trust and trust brings more value. And in order for us to take a deeper dive in this regard and to talk about what will ensure the long life of Banco do Brasil, I would like to call Tarciana Medeiros, the bank's CEO.
Thank you, [ Deana ]. Good afternoon. Good afternoon, everyone. I know that you took some time to be with us. And thank you also for those with us online. We have more than 2,000 people with us here throughout this event, throughout our BB Day. And for me, I'm very pleased. We are still here people. I hope that all the previous panels presented by our Vice Presidents. I hope their presentations made it very clear to you what is the bank's strategy. This is something that we never let go, and we've been talking about this since the beginning of our management. We often say that transparency can be translated into respect. If we act and operate with respect, we will be transparent. So I hope that today, we were able to translate this in a very clear manner.
And now still in this attempt to be very transparent, we already told you that 2026 is the year where we will resume growth. It will not be an easy year. It will not be an easy year. Gilson and Prince, during their presentation, they talked about the market, the risk. They also talked about what we see as credit risk for 2026. So the first half of the year will be much tighter, and we've been telling you about this since last year. But we also understand that 2026 and Gilson talked about the agribusiness portfolio. So we hope that by the end of the year, we will have 95% of this portfolio's advance.
And this shows that we are reassessing our loan portfolio. And this also translates how the process initiated in 2025 with the new resilience matrix, the adoption of new measures when it comes to the collection process to recover credit, we will see how this will reflect in our portfolio in 2026.
I also believe that in '25, we told you that it will be a year of adjustment. And so all the adjustments we did last year will now go through the consolidation phase. But 2026 for us in terms of evolving our corporate strategy, is no doubt a very decisive year. We are building 2026, not thinking about this year, but we are thinking about the next decade of Banco do Brasil. I usually say that the modern era of the bank is the year when I took over back in the year 2000. I say that I've been with the bank 26 years.
So 2025 was the most challenging year ever. I've never been through that situation. And the bank has gone through many different difficult cycles throughout its existence. But 2026 brought about an additional challenge. The challenge when we face historical delinquency levels never seen before in the agribusiness portfolio. And Banco do Brasil was the first to feel that impact, and we started feeling its consequences in the last quarter of 2024 and throughout 2025.
So still in the first quarter of '26, we are still experiencing the final tail of what we experienced in 2025. We've never seen anything similar in the history of the country. It's been more difficult and challenging. But again, I reinstate that Banco do Brasil remains the bank for agribusiness. And we remain in this industry because agribusiness accounts for great part of the country's GDP, and it will continue to have this relevance. People will continue to need food. And Banco do Brasil and the country depends on agribusiness. Therefore, it's very strategic for the bank, a leading bank in this segment. It is just natural that the bank -- that this situation will remain the same.
Speaking about change, what are we working on now or since the beginning of 2026. We are taking a different look at the loan portfolio. We are now focusing on the quality of the portfolio and how we are growing that portfolio. I think that the guidance for this year states that very clearly. We are growing prudently, still renting credit, but understanding that we have to have more modern risk mitigators that have to be added to the portfolio. And this is what we've been doing. We are adding more risk models, but it will take some time until we see the results.
Still talking about agribusiness challenges. Let me tell you what we are talking about. In 2025, the result was BRL 20.7 billion in a scenario, whereas in the last 10 years, the provisions for agribusiness was BRL 200 million per quarter. So we went from provisions of BRL 800 million per quarter to BRL 8 billion of provisions per quarter. So that BRL 20.7 billion in this kind of scenario can only be done by a company with a very sound balance sheet, a bank that is very quick at reacting to changes.
And we already showed our capacity, a bank with a lot of resilience and very disciplined to pursue the strategy drawn up by the bank. And so we were the only ones that were robust enough to do what we did. So I would like to thank all of you. I would like to thank the CEOs of different companies. And Giovanni at the beginning, talked about Banco do Brasil's ecosystem. He showed BD's Galaxy because this is what we are talking about. We are talking about that Galaxy that integrates several planets and the orbit is perfect to generate results. And that's part of what we talk about when we talk about generating revenue from different areas. Every area of the bank is bringing results to the bank.
And whenever we talk about -- yes, please show the next slide. One more, please. When we talk about our evolution strategy, I would also like to mention what happened in the past 3 years. In the last 3 years, our focus was mainly in reinventing ourselves. Rodrigo, one of our officers, he has an expression that I like a lot. He says that Banco do Brasil is a start-up that is 217 years old. We are a 217-year-old start-up because we can reinvent ourselves very quickly. We readjust very quickly, and we are quick to adjust our route whenever necessary.
So in this reinvention process of a company of the size of Banco do Brasil, we have to keep an eye and our value. We cannot lose sight of the essence of Banco do Brasil. We cannot reinvent ourselves without being Banco do Brasil. And we made important progress in here. We grew without losing our assets. And to Giovanni's note when he talked about the Galaxy that encompasses several planets generating different sources of revenue. We took a very attentive look to every single area where we are present. In my 26 years at the bank and having been through several of the companies in the bank, I must say that we have the best team of CEOs of all of the companies that are part of this ecosystem. I'm very certain of that.
I'm very proud of today preside over Banco do Brasil when I can certainly introduce you to this ecosystem saying that we have the best technical team that we could possibly have. We have companies and CEOs of these companies that are very knowledgeable about the businesses that they manage. And this helps us enhance our results. So back in 2023, we started to pay closer attention to all of these companies and also understanding what contribution they pay to the entire ecosystem. And this involved a lot of work from our strategic teams.
And now speaking about some changes that occurred during this period, I would like to mention some that gave us impressive results. The bank structure is adjusting to our needs also in a very strategic way. So the governance part of the bank, it's now a unit called strategic participation. I mean it sounds like something very subtle from UG to UTT in the Brazilian acronym. This evolution was so important to the bank that this unit ended up becoming a separate unit of strategic participation. In this corporate strategy that looks at the next 5 years means that we want to increase the stake of every area in the entire conglomerate of Banco do Brasil.
So by operating as an ecosystem, our expanded loan portfolio was up by 30%. We had approximately BRL 19 billion of investments in technology. I think Marisa said that in the last 10 years, we invested BRL 44 billion in technology. And I would like to highlight that BRL 20 billion was invested in the last 3 years. So half of all of our technology investment of this decade occurred in the last 3 years because it was necessary, and it was important. We could, in a shorter-term view, we should choose not to invest, but just turn that into more results. But that's not the reason why we work every day.
We don't think about the bank this quarter alone. We think about the bank for the next 217 years. In this period, we distributed BRL 33 billion in dividends. We work towards having sustainable results and long-lasting results. They should be there for many decades to come. Giovanni and Mr. Bassi was here with us at the beginning of this event. I would like to really thank all of our shareholders for their trust and thank Mr. Bassi for this long-lasting relationship.
Our relationship and the relationship of a shareholder is for the long run. And that's why we are talking a lot about the future to you today. It's important that we highlight what this company will be in the future. What we've done so far is what we brought us to this moment. But what we are doing now is what will lead us to the future. And it's important that I stress that. And we talk about this trajectory, present and future. And Banco do Brasil is living proof that profitability and social commitments do not compete among themselves. These are 2 things that walk hand in hand. They do not compete but they are complementary to one another.
And this is what makes a company last forever or last for a long time. And this is the responsibility of everyone that is part of this company. And speaking about Banco do Brasil, this is a responsibility that also involves the entire Brazilian society, and we play a crucial role in this process because I think Banco do Brasil is a very important example for other companies. Whenever we fund a small farmer in the smallest municipality of the country, when we fund the agribusiness and when we are delivering solutions to a farmer that was going through dire traits, I think we are also fulfilling our social role. When we keep branches in municipalities where Banco do Brasil is the only financial institution in that geography.
We are there not only keeping the economic dignity of that municipality, but we are also looking to be the principal relationship or the principal bank of that area. So this is part of our life. And for the client, this principality is translated into loyalty. Some of our clients have been with us for several generations. We have several generations of clients. And whenever we talk about loyalty, we are also talking about long-term relationship. And I believe that when you have a corporate strategy that is translated into long-term relationship, and you're also talking about serenity and serenity and purpose responsibility and results. These are not competing things.
We are now going through a deep transformation process in our financial system. This is the era of artificial intelligence. We are constantly getting information about a new AI tool that was recently developed. And then with that comes new risks. we see new possibilities to get results through AI. And certainly, the bank is not going to be out of that process. And so our investment in technology is proof of that. Banco do Brasil is a pioneer when it comes to investing in analytical intelligence. And today, artificial intelligence. I always like to repeat that when the models were only statistical, we already had a model that delivered the best offering to the client.
The difference today is that we know how, when, how and what to deliver to the client. This is a process that has been around in the bank for over 20 years. And so being here for 26 years, I'm leaving proof of that. The difference is that today, I can talk about that to everybody. We also have as an assumption that trust and people are the true competitive edge. We are now in an era that everybody can offer the same thing. We launched our beautiful card, Altus, I think it's outside. If you go outside, you'll see. And so soon after that, another organization launched another credit card offering the same benefit. So what do you do when you are in a market when everybody is offering the same thing.
So what is your differential? A product is a commodity, a banking product today is merely a commodity. The differential is who is delivering that commodity and how the product is delivered. If the product is delivered in a convenient way, I mean, to those who need it. We have a belief that what will move the needle or will make the difference when somebody is choosing an organization or whether I stay there or not, is trust, whether you trust that organization or not in times when information change every second and information comes from different sources and in different ways.
And you get different information about the same thing. What will make a difference is having someone that tells you which way to go because, in fact, it's the best way to go. And when we think about this process of trust, we do understand that Banco do Brasil is a player that is very well positioned in the market. When we talk about trust, credibility, soundness, the brand Banco do Brasil delivers all of that. Our strategy delivers all of that. I mean we are here in a very transparent way, telling you about how we are building the results of the bank and how do we see the bank going forward. This also is full of trust and credibility.
We also understand that technology is just the means and not the end. Technology is the means through which we will deliver the most encompassing information because it's important that they advise our clients the best possible way when they need it. We want our digital agent or our AI, I mean, curated by people. We want our AI able to deliver the best solution to the client in the right channel and at the right time. We also understand that trust in people will be the true differentials of the bank, and we are working with these assumptions.
When we speak about artificial intelligence and technology, having data and not knowing what to do with them. Turning data into information and translating information into business is something that BB knows how to do, and we do it really well. And we're investing to do this even more and even better for us to truly deliver to our clients a technology that transforms data into financial guidance that builds solid ties, ties that are built with trust and credibility.
We are working to invest in specialized service to have this more and more adequate to each client profile. I think that Coles and Maris spoke about this, and they did a very good job. We have 90 million clients. Every client has their own story. I might have a client base with several consumption habits. I might have a database of clients that consume very similar products, but every client is unique. I learned from a colleague that we needed to work with a segment of just one person. Since that day, we've been focusing on delivering a different BB to every client. evolving in our hyper-personalization processes.
We like to repeat this. It sounds a cliche, right? In a moment that we're evolving so much with AI to still focus on hyper-personalization. But hyper-personalizing is doing the basics in a very good way. The differentiation among banking institutions will be the one that delivers the basics, but in a very well-done way. We have to deliver the client what they need, and they each need different things. But nothing you see technology personalization, nothing replaces the branch manager because when you need help, you need to be able to have access to a person. So if the client needs to look a manager in the eye, they'll be able to do it. If the client needs to sort an issue digitally, they'll be able to do it. If clients need to use their relationship manager to help them solve an issue, they'll manage to do it, whatever the channel they choose to do so.
And this is care. Technology potentializes care if used in the right way. And we are trying to use technology in the most adequate way. Using technology in the most adequate way requires not giving up on people. BB, unlike other banks, trains our workforce at the job. All of us part of the Board and the top management of BB, we were trained in this company. It is important to underscore that we don't give up the more than 80,000 employees of BP. They all go through the same skill building process, the process to readapt in a world which is constantly changing in a financial system, which is always changing. We are prepared.
Maris spoke about academia. We are working on the second edition of academia. We are working so that all colleagues are at the same level of knowledge regarding the new tools and new technologies. And when we talk about technology, the strategies and everything else, someone can always ask me, what about the footprint strategy of Banco do Brasil? The moment that the financial system as a whole decided to leave many municipalities closed their brick-and-mortar branches in many municipalities. We, we chose to go against that trend. We stayed. We stayed where the real Brazil exists. So we remained. But we didn't remain just for the sake of remaining. We remained and got better.
In all of our operations, in which Banco do Brasil decided to remain physically present, we decided to improve our presence. In this process of being physically present, we want to be the primary bank for our clients. In a moment where they have many possibilities to choose many, many financial institutions, having primacy -- banking primacy is something very dear to us, and it's very expensive. And we have this expensive assets. It's in the hands of BB. So we're not thinking about the short-term results. We're always thinking about the long run.
A trusted relationship is not built in 1 quarter in 1 year of earnings. A relationship of trust is built over time. And when we choose to stay. This is a strategic and well-thought strategy. And it was well thought based on a long-term view of the business. We have been monitoring the efficiency ratio of our POS, all of them. To date, the budget of every branch matches the possibility of that branch creating value.
The efficiency ratio, the value generation of every branch is measured all the time. So it's a combination between the physical and digital. And this combination brings us the convenience to choose to stay. staying was a strategic choice for us. And we stayed and we're getting better and better. We are choosing to stay where clients need us, where clients demand our service where clients demand that we are present. And presence today is physical. It's physical plus digital whenever clients require service. And we are there for the clients wherever they need.
Carla mentioned our new app. The one we have is very well evaluated, very well rated. We have the best rated app in the market, and this is not new. It's happened for many decades, and it will get even better. It will bring everything that we do well and bring all of these new experiences that we are working on to deliver. We understand that the bank will continue to be deeply digital because this is a market movement. It's a movement everywhere in the world. We cannot go back on that process. We cannot try to be different in that regard.
The world is digital and the bank will be deeply digital, but the bank will remain deeply human. It will be driven by people, people who are dedicated to people. What will be the differential of financial institutions from now on. It will be a bank with AI and humans and the bank with AI because just AI will not manage a financial institution. AI alone is just AI. And yes, we will be digital. We'll be a bank with AI, but also a bank with humans, with people. Let me speak about a bank who is 217 years of age that has existed for 217 years. We have to speak about our responsibility as managers of this bank. We're not just managers, we are guardians of this company. We are guardians of a history that is 217 years old and guardians.
Don't look at just the period of the next 90 days, Guardians, care for that company to continue to exist forever. We are working to make BB an infinite company, a company which is not an end in and of itself, but a perennial company with sustainable results, but also a company that evolves and modernizes a company that transforms, but that never loses sight of what the company really is, not a company for the sake of being a company. And in this behavior as guardians, we need to make decisions, and we do make decisions. Not always are they the most comfortable decisions, nor always are decisions made in a linear fashion, but I am absolutely sure that we made consistent decisions.
Looking at our earnings, monitoring our numbers, verifying our forecasts, we are sure that the decisions we made were consistent. and they were responsible decisions. There were decisions made with an eye on building the foundations for the future. Every branch that we chose to remain open, every point of service that we just remain open, that point of service, that decision is a declaration of commitment to society. It's a commitment to building perennial results and primacy, banking primacy and primacy leads to results for decades to come. We have a track record that proves that. When we decided to invest in our workforce for every BRL invested in the development of the workforce, that decision was strategic. It was well thought of. Thinking to have a perennial company.
This is not a cost. This is long-term investment. For every bureau invested, we see it as a seed for a future that will bring us fruits to reap. This is how this bank is being built and how it's evolving. And we understand that this is how this bank will remain strong, and we'll continue to deliver excellent results. when we make a decision regarding risk, every risk decision made, like I said, maybe will never sell our risk modeling until I became a CEO because I thought it was something to be sold until I became a CEO. Now I know that we could never give up our risk models and sell them because they were conceived in an evolutionary approach. And it was very interesting to realize this process during the year 2025.
We lived through a change in a process that brought us many lessons learned, but we experienced that change in a continuous fashion. We continued to evolve something that we already did really well. So coming out of 2025 and starting 2026 and saying that 2026 is a year of resumption of results. This is only possible because we made very assertive risk management decisions. This evolution in the framework of collaterals with now having better collaterals and other mitigating factors more adequate to the loan book profile and to the moment in which regulation is evolving, all of that proves that we are working to deliver these investments in a solid fashion that we are working to deliver these results with high quality.
When we make a decision, to accelerate a business driver to accelerate the analysis of a company belonging to the conglomerate that can bring us more results. That decision, again, is well thought of. It's a strategic decision. We make each of these decisions thinking about the future, how things will be in the future, thinking about the results in the next 5 years or 10 years. And when we speak about that, we need to have a structure that matches this process. Our structure have been following this evolutionary process of the bank.
And we just disclosed to the market a process of rotation of the top management. This was a strategic and well-thought decision. A, it was not a rotation to move one person from one feet to another so they can spend some time in a new role. No. We chose to put the best professionals to deliver in each department what is exactly what the bank needs. What is necessary for the conglomerate to continue to evolve. We aimed at allocating the bank's professionals so that the knowledge acquired over their career will truly deliver to BB what is best both for the bank and for the companies in the Galaxy.
And these changes brought some strategic changes. I'll highlight 2. This is in the process of approval by the bank, but we would have a department of applied intelligence. We understand that we already have very good client relationship on digital. We understand that we already have analytical maturity and advanced AI maturity. But with these processes were fragmented. And in order to decide better and better, we'll have an applied intelligence department. It will be like a blood brain behind this whole process for the organization. We will start deciding faster and faster. but better and better.
We'll have an integration of our AI models, integration of our several risk and control models. And all of that will be executed. This whole intelligence will be executed through our CRM, our March that will be integrated with the applied intelligence department. And after approval of the top management, when we disclose the earnings of the bank, we'll bring you more on that. Another strategic change was the creation of -- in addition to having a credit recovery unit that was part of the credit process and that was shadowed by some other departments. We understand that the credit process needed to be fully integrated from the period of preloan granting all the way to the end. Now we needed to understand the credit process way before the client applied for a loan.
And now we have a credit management department. This department is already functional. VP [ Philippe Prince ] is the manager of that department, and that department includes the whole process of credit from preannalysis of limit all the way to actually granting loans. We have a totally fluid workflow that we process, which is nerogic for the bank at a moment when the legislation is changing.
So I just wanted to give you these 2 examples to tell you that our structure will remain constantly evolving and other changes will come as needed, as we need to evolve as we need to change. And we are making these changes. We are working even provoking our workforce internally because management is movement. If the company is sitting still, it's not evolving, something is wrong. So more and more, you will follow changes to our structure as we need to deliver results as we realize that there is something that requires more of our attention that requires that we evolve our strategy. If that happens, we'll create new structures and we'll evolve as soon as we understand that the change is necessary to deliver more and more sustainable results.
And to end, I would like to say that the question that actually matters now that truly matters is not the quarterly earnings that we post. I think that the question that truly matters is whether Banco do Brasil is now more prepared for the future than it was 3 years ago. If BB now is more prepared to deliver perennial results and more prepared than it was in the beginning of 2025. And the answer is yes. Banco do Brasil is more prepared. The loan book is more qualified. The digital platform is more robust. Our service model is more and more integrated. Our social and environmental commitments are more solid. The culture is more and more mature.
We are convinced that we are capable of delivering results and growing without losing sight of who we are, and it is all based as a value for the bank. So yes, we are prepared, and we are preparing ourselves more and more for the future to come. This is what we built in the last 3 years. This is how we are thinking about building BB for the next decade at least. This is how we are thinking about evolving this company. in a more fast integrated technological modern way. Being digitally -- a deeply digital company, but also profoundly human. This is how we are thinking about delivering results to our more than 1,600,000 shareholders.
This is what we are working on building the foundation of BB, a bank that belongs to all Brazilians to Brazilian society, a bank that will deliver results not only now, but in the next decade. Banco do Brasil, who's been around for 217 years, but it will also be around when we are no longer here, and we are working to that end. So thank you very much.
Thank you very much. And now to conclude, Tarciana is coming because here comes a very important moment as well. Don't leave. I'd like to call Ricardo Sasseron, Head of APIMEC. We have a long-standing partnership with them, who've been with them for over 32 years. So he will come to deliver the seal.
We are very honored to partner with you. We've been with you for many years. APIMEC plays a very important role to the capital market. And for us, we are very proud. I mean it's my third year being the recipient of the seal. We are very honored to be here to receive another seal for 32 years of partnership.
Thank you, Tarciana, our President and on behalf of which I also say hello to all of those that are here. And thank you so much for so many years of partnership with and Janaina when it comes to our purpose. APIMEC started as ABAMEC. And throughout its 55 years of existence, our mission has always been that of conveying transparent information and information that is very accessible by all analysts. Then we see how the work permeates the entire market, be it investment, the investment universe and also advisers.
And this is also very important to the capital markets. We are very proud to be a part of this journey with the bank for 217 years. I mean, we contributed with 32 years of the journey because to analyze a bank or evaluate a bank is not as simple as in any other industry. But we were growing together and we were part of many different details of the bank. I used to say that when you were responsible for an area where there are not too many players, I mean, the risk is always bigger because the landscape changes all the time. And I believe that economies always work with 3 scenarios.
But I think now they are operating with the most pessimistic scenario. But let's see how things will evolve because certainly, it does not depend on us entirely. But the information demands transparency. Therefore, I think it's important that information is widely available, especially to those that are analysts. This information should not only be in the hands of those who cover the company, but it should flow throughout the market, especially it has to go all the way to the clients of the bank.
And this is crucial. Relationship for over 32 years just shows that information is not just a checklist, but it involves trust and value because sometimes we could even analyze the relationship when the information is not conveyed properly. Therefore, this information is important. And I hope this can be a role model. You can be a role model for other companies. Banco do Brasil has a very good relationship with us, and this can be translated into a much better market.
But before I leave, let me just do something for all the analysts that are here with us today, for all the journalists that are present here today, we have private banking managers here today. So remember to bring your investments to Banco do Brasil.
Well, we are now at the end of our BD Day. I would like to thank you so much for joining us. And our next meeting is already scheduled. The earnings release for the first quarter is coming soon, and we will have our live event to discuss the results with you. So thank you again, and I hope to see you soon.
Transkripte auf Deutsch freischalten
- Alle Event Transkripte auf Deutsch
- Sofortige Übersetzung
- KI-Zusammenfassungen für die wichtigsten Insights
Banco do Brasil ADR — Q4 2025 Earnings Call
1. Management Discussion
Good morning, everyone. I'm Janaína Prandina, Head of Investor Relations of Banco do Brasil. Thank you for participating in 1 more live results. [Operator Instructions]. And to talk about the numbers of this quarter, I have here with me today our CEO, Tarciana Medeiros; our CFO, Geovanne da Silva, our CRO, Felipe Prince, the Vice President for Agribusiness and Family Farming, [indiscernible]. And now to begin, I'd like to hand it over to our CEO, Tarciana.
Good morning, everyone. It's a pleasure to be here with you one more time in our results call here for Banco do Brasil. I'd like to thank all of you who are here with us online following this release. And I'd like to thank especially our clients and staff of Banco do Brasil for having built this results of the fourth quarter of 2025.
So I'd like to start talking a little bit about our trajectory of delivery. In 2023, we talked a lot about discipline in the execution of the strategy. And I believe that this retrospective that brings us up until today demonstrates very well our profile of searching to execute our strategy with a lot of discipline.
In these past 3 years, we've had an expansion of the loan portfolio of more than 30% growth in the margin with clients also of more than 30%, and we invested massively in technology with more than BRL 19 billion between 2023 and 2025. And this sustains the evolution, the quick evolution of delivery and new solutions for our clients. And certainly is the basis of all the development that we are doing and evolving in the acceleration -- digital acceleration of Banco do Brasil. Here, in the fourth quarter of 2025, you see a result of BRL 5.7 billion, and this result demonstrates our capacity to reinvent ourselves to adapt and to look for this performance that we set out to achieve to the market.
So when we talk about discipline and strategy execution, these 3 years demonstrate this discipline. When we talk about 2025, I think it's important to look back a little bit about what the year was like. We had a year that I would say in my 26 years of this work was the most challenging. In my history as a staffer in Banco do Brasil, 2025 was very challenging.
We began in February identifying since the previous trimester, the last trimester of 2024, but challenge for us because we have a very significant agribusiness portfolio. And the only way to work with this portfolio dealing with what happened, which was unprecedented in 2025, we brought a result estimate that was increasing larger than what we had expected. As we divulge the results for the first quarter, we decided and this decision was thoroughly thought out and discussed and in our view, responsible, which was to suspend -- excuse me, not suspending. What's the term, Janet?
We revised 3 lines of the guidance. we were questioned. We had a lot of transparency in the market. We placed it in revision to -- after the agribusiness portfolio, what would be our real possibility of performance in 2025. In August, we went back to the guidance in our second quarter results. We took into account the expectations and knowing the closing of a whole semester and in view of the reality in agribusiness, we had talked in May that we were going to seek and increase conversations with a regulator is always open to receive our concerns and listen to our concerns and suggestions.
The Banco do Brasil portfolio is a different portfolio and what we brought to the regulator and we received an approval for adjustments MP4966 or 4966 resolution, resulting in not the resolution that brought a correction to this accounting manner in agribusiness. And we received approval in August for MP 1314, which we launched as BB does agribusiness. We worked extensively with the government and the Central Bank and the Ministry of Finance. And back in September, we had MP1314 for us to readapt the capacity to make payments to farmers. In October, we launched a program on October 21, 2025, and it's important to know that date. It wasn't on the 1st of the month, it was the 21st. We understood the challenge that we faced in the last quarter of 2025. And with 8 months, into the year with results closed and understanding future projections for defaults in contracts and seeking adjustments under MP13 14.
We had an additional challenging November in the specific case of large companies, and we had an increase in the amount that we were able to judicially recover in agribusiness. As I mentioned before, and we have been talking about this extensively, we want to bring you a little bit about what we said and what we did. So we are presenting this vision in the execution of the strategy. We said that we were going to add risk indicators in credit operations, both for companies and agribusiness for better crops with more guarantees of credit.
We had 63% of the operations of small enterprises and 75% approximately of -- with collateral in terms of real estate. We sought a collateral that were -- that was more adequate for the moment and which would bring us greater comfort in credit recovery. So the '25, '26 crop was originated already in court recoveries. When we think about credit, -- and I said that we are going to have the best return adjusted risk adjustment adjusted returns. And this was what happened. We disbursed BRL 13 billion in worker credit. And I said that Banco do Brasil would come out ahead because this is a business that we know. This is something new to the bank in 2025, the worker credit. It's a strong example of this. When we address about digital acceleration and talking about the reorganization of the recovery strategy, we had an agile digital strategy with -- and this helps us deliver solutions and the new recovery process.
We increased by 114% the amount of court proceedings. Giovanni mentioned that we need to grow the gross margin, and we had a 12% increase in the margin with clients if we compare the end of 2024 and the beginning of 2025. We said so and we delivered. We began conversations with the regulator for a different treatment for agribusiness. I received some criticism about this, but the agribusiness portfolio has a different and it could not be treated as the individuals portfolio with monthly payments.
We had dealings with the government and the market, and we had the CMN resolution 5244 and the B resolution. Gilson mentioned that with a temporary measure, we would certainly surpass the BRL 20 billion in free rate, and we actually went above BRL 35 billion based on NP1314. -- we said that we were going to adopt measures to control expenses to ensure efficiency level.
In administrative expenses, we had a growth of only 5.1%. If we compare it to '24 and '25 with an institution as large as Banco do Brasil Brazil, this expense control was very disciplined and adjusted to what we needed to deliver. When we talk about the market of companies, I said that we are going to focus on service, and this happened in 2025. We have the BB Empresas brand, which was launched officially in 2025, and we increased in BB and the importance of the growth in high-value clients rose 36%. And in this profile, it's not easy.
The profile is very challenging, but Banco do Brasil grew and credit cards in 20% growth. How did we execute this strategy in a disciplined way? We do not have delivery of strategy or results if this is not based on the strength of Banco do Brasil personnel. We continue to invest in people and ensuring the satisfaction of our clients. We had growth of NPS, 10 percentage point growth, growing a client base as large as ours and achieving a 10-point increase in client satisfaction is of note, and that's why we're bringing this information to you.
I should note that the public sector banking, we have already achieved excellence, and we have a client satisfaction level with -- as the market wants to have. So we are above this level of deficiency. When we talk about excellence and the same ranking of complaints, we have 14 consecutive quarters in the best positions among the main banks.
So NPS growth is not an isolated factor. It is the result of consistent work to deliver Banco do Brasil to each client. Now talking more specifically about 2025 results, we showed an adjusted net profit from Q4 to Q1, 51.7% growth, delivering an adjusted result of 5.7% in Q4. We grew from -- in relation to the third quarter we grew the gross financial margin and that indicates that we continue to do business.
We invest in our strategy as planned to handle default without losing sight of the margin growth. In the -- we have been saying this to the market, 0.2% of growth from one quarter to the next. And with the expanded portfolio, we had a growth from December '25 at the level of 1.4%. We see that we are in line with what we said to the market in November. but according to the guidance that we propose to achieve in all lines. And I call your attention to administrative expenses that we closed at the lower end of the guidance. Here is important in this pact of transparency that we went into with you with information about agribusiness.
We'd like to talk to to show you that we knew who these clients were, what crops, what regions and that we were going to seek solutions with clients to bring the agribusiness operations into normality. In BB Regularisa Agro, we had BRL 35.5 billion in new operations, BRL 32.2 billion in operations that were contracted with clients that had received free resources from the bank and BRL 3.3 billion in supervised sources, 21,000 clients benefited, 29,000 transactions.
And when we look at guarantees, and we wanted to show this for the sake of transparency, as a result of Begularisgro was not just to look at and go after this. We looked at the clients that were paying regularly, and we understood what clients were in default in which region, which crop. And we looked at our portfolio of clients and what profile of clients that were -- that had defaulted over the years. So we had a portfolio of very qualified clients. We looked at client by client and to see if Betegulariz Agro would bring gain from this client to be able to regularize the situation. with the transactions coming due and their obligations coming due, if this regularization, the client would again reestablish their capacity to make payments.
I should note that 72% of the 72.9% of these operations were and 8.2% in mortgages and 18.9% in other guarantees. BRL 35.5 billion of EBITDA Rulaisgro with 70.9% with fiduciary settlement. I won't go into details, but you should understand that the default profile that we presented in the 3Q last year and for you to compare the situation in relation to where we were.
Let's talk about 2026 now. 2025 was challenging. 2026 will be challenging, but it's a challenge that we know and we know how to address. We are going to continue discipline in the execution of the strategy, delivering Banco do Brasil to each client, and it's very important to have strategic credit management, and I will talk about this further later on. with sustainability, diversity, which are vectors of our values. This is part of who we are as a company. When we talk about a bank for each client, we are talking about digital reach with a lot of human proximity.
We have worked extensively on evolving our digital operations to define to be where and when the client needs Banco do Brasil without losing sight at any time of what it is -- what Banco do Brasil is, which is human possibility. We will consolidate the Ponto BB, BB Point, the BB hub, which gains efficiency and reduces costs. and we will have the entire accessibility and energy efficiency will be consolidated in 2026. We have conducted tests over the years, and we have talked about them with you.
The digital strategy, which is a combination of physical and digital. We launched BB Point in Blaine, and we understand that this is a new way to relate to the client, which works. The BB company brand was launched in 2025. It's consolidated in '26, the revision of our portfolio to work organically with the digital acceleration model, we were able to bring together very disciplined teams to bring much more agile solutions and consolidating our style brand. The trend in 2026 is that we will be involved in this concept. We are working on better allocating staff in retail and we will be present when and how the client needs us.
This adjusted profile with -- according to client preference happens organically. We have a model. The model begins to be implemented in 2026, and it remains as a new model for permanent analysis of our structure. I believe that we are very much in line with what the market declared. The preference that we already have for segments -- high-value segments is very consolidated.
The private banking and style segments are segments that we have been operating for more than 20 years. We celebrated the anniversary of these 2 high-value segments for the bank. In 2026, we are going to continue and intensify the focus on this. Banco do Brasil is a very diversified client base. We have a potential to grow in all segments.
In 2026, we want to increase by more than 20% consultancy, and we will be in new areas, and this will confirm what we said before, a structure that's adjusted to each region and each client preference. We see the need to open new points with specialized agribusiness with 230 new locations. This -- in the beginning -- at the end of '25 and beginning of '26, we started this strategy. We will seek a portfolio of benefits and investment opportunities.
I should talk, which would be of interest to everyone, how we will manage credit. We will manage credit very strategically, growing with quality and rebalancing the portfolio mix to seek stability in increasingly secure lines supported by a robust guarantee framework with resilience that was launched in the -- at the end of the second quarter 2025 and has been demonstrating a strategy, a set of models that are very appropriate to address client risk and provide loans. and established credit limits.
We are going to increase net margin with clients. We talk about gross markets, but we need to understand net margins, which is the margin after deduction of credit cost. The net margin is something that we will focus on in 2026. In 2025 was BRL 41.2 billion in 2025. In 2026, we see a growth between 53.4% in the high range -- billion, I'm sorry, I'm -- I have a percentage, BRL 53 billion in the high range. So we understand that the net financial margin shows our capacity to generate results in a sustainable manner. When we talk about individuals and this spotlight for 2026, we intend to grow from 6% to 10% in individuals. It's something that we do know how to do, which is consigned credit.
We are going to reinforce our leadership in this area, and we are able to achieve 20% of market share. In the nonconsignated credit, we also are familiar with this for a long time. We will seek guarantees with collateral in real estate collateral. In credit card, our focus will be in growing the portfolio. In companies, we have a guidance of minus 3% to 1% that we will be able to maintain the portfolio with qualified origination. And we are saying that we are going to seek increasingly to grow our balance with funds that will mitigate our credit risk. And a vertical integration with Cielo I think in mid-2025, it's -- we talked about this. We began to work with Cielo in 2025, and we are going to seek a growth strategy in this acquisition segment.
In terms of capitals market, we are talking about origination, which we are very familiar with. origination and distribution. Agribusiness, our guidance is minus 2% to 2%. We have a historic partnership with the segment. We are going to follow the producer, the farmer closely from the family agriculture to the mega producers, reducing risk and increasing profitability, applying the resilience metrics on all segments and all client profiles and the framework of guarantees.
When we talk about innovation and agility, we have been talking about this in a very transparent manner. In 2026, we are going to increase the use of artificial analytical intelligence we have more than 1,800 models, freeing people up for the business. Our focus will concentrate on more people, more people cooperating with people. When we address -- when we talk about people, we were talking about our clients. We have observed an increase of efficiency of 41,000 hours per month in process with embedded AI.
And in 2026, we are going to increase this process with embedded AI, and we have significant investments in this year. We have some solutions that have been tested in processes with business agents. And we are going to -- and we saw in 2025 in this test that we have a 90% gain in efficiency. A bank as large as Banco do Brasil, growing this by 20% is an extraordinary thing. To make this in context, we have upskilling and reskilling data.
We already have more than 67,000 employees who have been trained in AI and analytics. We have the digital leader program with more than 1,800 hours of training. In 2026, we want to implement our solutions, everything that our colleagues have learned to do. In digital, we have more than 50% of the multidisciplinary lines implemented since May 2024, delivering solutions in record time. We have reduced the time for development of solutions by 75%. The eNPS in this movement with the staff that has already been working has increased 14 points in the last 12 months since we intensified the implementation of this digital era.
We are going to do all this with sustainability and diversity as vectors of value. This is part of who we are, what Banco do Brasil is. We are going to intensify businesses that are sustainable with a bioeconomy hub. In 2025, we had BRL 3 billion that were directed to projects in the legal Amazon impacting more than 100,000 people. We are going to intensify this business in 2026. Funding, we are referencing partnerships and funding. And during COP last year, we attracted BRL 3 billion generated during COP, and we also attracted BRL 5 billion in 2025. And we are going to seek external training for us to bring results in sustainable business, focusing on what we know how to do on energy matrix, energy mix and carbon-based economies. We have achieved our environmental goals.
In 2025, we reached 1 million hectares of preserved land. And our goal for -- by 2030 is 2 million hectares. We are the company that most contributed to environmental preservation in our business.
In terms of diversity, we are going to bring this forward. And the goal that we proposed is to have the goal that we proposed of 30% of women blacks and other areas. We achieved our goal for 2025, and we are already pursuing our goal for 2030, 50% of women in leadership positions, 50% of black people and brown people in positions of leadership by 2030. In terms of macro scenario for 2026, we are optimistic. We see the scenario that the Selic rate will reach the end of 2026 at the level of 12%. The 3 percentage points in reduction that we project makes a big difference for a portfolio as large as ours for the market as a whole, it is a big difference. We understand that IPCA, we have a projection of 4.2% below the top level of the goal. We saw over the last 3 years, a consistent growth of Brazilian GDP, and that is worth noting.
The historic level of unemployment, we are at 6%, which is positive for business with Banco do Brasil with the market as a whole, but particularly with Banco do Brasil because we have a very significant base of clients. We see FX with volatility over the year, but closing 2026 at the level of BRL 550. In terms of the crops, the 2026 crop at least 354.4 million tons of grains. And we also highlighted the exemption of income tax based on law 15,570, which increased disposable income for millions and millions of Brazilians.
In Banco do Brasil, these millions of Brazilian citizens that have been benefited bring the opportunity to Banco do Brasil to grow BRL 28 billion in consigned credit portfolio. So the exemption -- income tax resemption for people earning up to BRL 5,000 is a big difference makes a big difference in the expansion of these clients' payment capacity. And we are going to seek adjustment in the financial flow of these clients, but also expanding credit, which creates very interesting possibilities. And we are going to intensify our work with companies, insurance companies, consortiums and services in 2026.
We have a sea of opportunity, and we are going to work intensely to deliver even more results in these profiles. Here, I would like to present to you the guidance for 2026. Everybody knows already. I've been talking about this throughout my presentation. I would like to note here to -- for us to see 2 main lines of the guidance. The credit line with a growth between 0.5% and 4.5%. And this reflects what we have talked about in terms of investments to adjust the portfolio mix to seek results in more profitable lines with safety and seek results in more profitable lines, keeping agribusiness companies. And this is a very big challenge for a portfolio as large as Banco do Brasil, and we are going to work intensely to deliver on this guidance for the credit portfolio growth in 2026.
Another line that I would like to highlight is the administrative expenses with a projection of growth between 5% and 9% -- we have been dealing with this very responsibly with a lot of attention and the guidance that we proposed for 2026 shows that we are going to continue to be careful with our administrative expenses. And the adjusted net profit with a growth between 15% and 26%. And in 2026, we are going to work hard on delivering on the guidance and the results that we're proposing for 2026. always relying very much on the dedication of our employees who make Banco do Brasil be what it is every day with the trust of our clients.
And I'd like to thank especially the trust of our clients. 2025 was a year that showed the resilience of Banco do Brasil, the robustness of Banco do Brasil and in practice, demonstrated how Banco do Brasil clients trust us. It was a challenging year in which our credibility was put to the test in more than one situation, not just in agribusiness default and the need to revise our guidance during the year, but you remember that we were on the press all the time. We were attacked.
There were a lot of fake news divulged, but the clients remained with us and the proximity to the clients made a difference. When everyone expected us to talk to the outside world, we talked to our colleagues and our clients. I thank the Banco do Brasil clients who are with us with the relationship, long-lasting relations, and I hope that this will continue for many decades in the future.
Now I will give the floor to Janaina to begin our Q&A session. Thank you, Janaina.
I'm going to start here our session of Q&A. So that we can -- [Operator Instructions] And our first question comes from Daniel Vaz from Safra.
2. Question Answer
I'd like to come back to something Tarciana shared that 2025 was definitely one of the most difficult years of the last decade. So first of all, congratulations to everyone to the dedication and seriousness in facing all of this. And the guidance for 2026 is conducive with the current moment. When you put a flat portfolio for agro and businesses, we see that definitely, you are taking this very seriously. So first of all, congratulations.
I'd like to come back to one of the bits of the presentation when you talk about BRL 35 billion in the Regulariz Agro, Gio was talking about the third quarter that you would go over BRL 20 billion in the free rate. Does this BRL 35 billion, does it compare to the portfolio of the fourth quarter that you were talking about in the BRL 35 billion in the presentation? And in my understanding, when you do this free rate program, you have -- you relieve your prudential adjustment. And up until what we had talked about in previous interactions, BRL 19 billion, BRL 20 billion were the prudential adjustments that you were able to bring back the adjustments to 0.
From this, are these are loans that are without this capital. I'd like to understand if this interpretation is correct. If this would also relieve in terms of capital because I don't think so, but thank you for clarifying that.
Your understanding is correct. It's important to remember, we're always trying. We had a goal initially that we would have BRL 12 billion. ideally, we'd get to BRL 20 billion and BRL 35 billion shows clearly the will of our clients in terms of resolving their debts. Is the audio okay? There is an issue with the audio. I lost my train of thought. What's important is that we were able to -- we had an effective limitation for everything that we renegotiated.
The positive collateral effect was the relief on the capital, and you can see that in the results with what we showed.
On the other hand, this shows clearly that this partnership between Banco do Brasil and our clients. And that's why we were -- we went beyond what effectively beyond the fiscal benefits. What's important is that our main focus is stabilizing the NPL in this portfolio and ensure the growth of the businesses with our clients and agribusinesses that bring not just returns in terms of the agro business, but also in the individual segment.
Our greatest growth in the private segment are from the agribusiness sector. I'd like to invite Geo to complement this since he was leading many of these renegotiations.
Daniel, thank you for the question. we had at the end of 2025, the BRL 22 billion. This increase was what we were able to work on between January and February. The provisional bill was the -- what happened in this period. And as Geovanne highlighted, our increase in capital, we need to look at 2026, but also look at the next 4 years. So we still have a gain on this limit of capital up until 2029. -- and we went over BRL 20 billion up until this credit. We're going to maintain this gain for the next 4 years. And the important thing to note is that this renegotiation sought to look at the nonperforming clients in this period of 2025 and in the next 2 or 3 years, trying to improve the capacity for repayment of these agricultural clients. So we expect a better performance in the next period.
And the guarantee, and I think this is the main highlight, many of these operations in these new operations, as Tarciana said, we had 72.9% of trust sales. So it's a credit that for the producer allows them to balance their flow of payments. And for the bank, we get a more significant guarantee if we need to go collect.
And just to finish, give you a little bit more color around these numbers. We have BRL 35 billion, but not all of them are -- with these resources for supervisors, you have 32.2% as we've shown you for the vision of February. And of course, this applies to a limit around BRL 25 billion that we have in terms of capital benefits. But we have to look at the curve in a long-term perspective.
Of course, we have amortization -- and with this, we can benefit from other amounts that have not been amortized yet so that we can maintain this capital and ensure profitability and the execution of our strategy in the next few years. I think we should also talk about the adjusted risk and return of the operations.
Our next question is from Daer Labarta from Goldman Sachs.
My question is on your guidance for net interest income. I mean you had a pretty good quarter in net interest income, although it looks to be driven mostly by the market NII. And if we take your guidance for this year of the 4% to 8%, it implies that NII would likely trend down a little bit from what we saw in 4Q. So maybe if you can break that down, I guess, between the client NII, I mean, given the loan growth between 0% to 5% more or less, how should market NII evolve? Just to understand why the guidance implies, at least at the midpoint that the NII would trend down a little bit lower from the levels we saw in 4Q.
Thank you, for your question. I'm not sure if I understood your question correctly because of the mic, for me wasn't that good. So on the mic?
Yes, you should expect coming from the top line improvements, not only given the growth of our credit, the main focus of our growth, as you've seen in the guidance is on individuals, where we have a risk-adjusted return higher than the other portfolios. We will continue focusing on our payroll loans, not only for civil servants, but also for private sector employees.
As Tarciana mentioned in her presentation, we are expecting a bonus coming from salary raises, low level of unemployment. On top of that, we will continue focusing on increasing our fee income. Fee income, if you compare our fee income growth to our peers in '25. we lagged our peers. I think we have room to continue growing, particularly on that line in our P&L, control in expenses. Of course, that we will be paying a very close attention to our cost of credit. That's where we could potentially deliver higher net interest income, especially -- net profit, sorry, at the end, given the control of our delinquency. And you should bear in mind that we are expecting our SELIC rate to go down. This is beneficial in the short run for Banco do Brasil given the drop, the reduction in our funding cost.
We have already shown that in the fourth quarter, we have reduced significantly a part of our funding that bears higher interest, and you should expect also our net interest income being benefited by them. You should remember that at the end of -- in October, if I'm not mistaken, we bought out all our Banbra AT1s. And this also brought us some savings in our net interest income because Banbra brought higher expenses in our net interest margin, and we swapped that for our [indiscernible] that has a much lower funding cost. This was also a positive impact in our margin, okay? So basically, these are the main drivers that give us some confidence on growing our net profit around 15% to 20% looking ahead, okay?
More specific on the net interest income guidance because that one does imply that NII will slow down because if you just annualize 4Q, you get to about BRL 111 billion, which is 9% growth. That would be above the guidance of the 4% to 8% that you're giving. So maybe -- and I want to understand maybe between market NII and client NII because you said market NII, I assume, was very strong in the quarter. Does that continue to benefit? And is the headwind here that client NII because ag is still not growing, is that a bit of a headwind? Just to understand the dynamics of the -- and net interest income specifically.
The market helps, but the focus will mainly be on our client margin. given the growth in our loans to individuals. That's where you should expect not only a part of our client margin growing from volume growth in the individuals portfolio, but also from the drop of our funding costs and coming from clients as well.
Yes. And Tito, just remember that in our ALM position, we have a net position of prefixed assets against floating liabilities. So on Selic rate is down, we have this positive effect that Giovanni mentioned on the funding costs. And at the same time, we have the loan portfolio that takes a little bit more time to mature, to change for the new rates. And at the same time, we will still have a Selic rate, an average Selic rate that is high during the year. So this also helps and also support the treasury income. So that's the dynamic. We grow the portfolio. Of course, we also grow within this new mix with a better profile on the individuals. And then we balance with the funding costs. That's implied in the 4% to 8% growth.
Yes. We have more than BRL 6 billion on net exposure to prefixed assets that brings also this bonus given the drop in the expected drop in the Selic rate for '26. And this implies this growth we're expecting to see, okay?
And now I'd like to call Henrique Navarro from Santander to do the next question.
My question is about the renegotiated credits, the relevant amount, BRL 22 billion. And these are credits that should in 2026, maybe had gone to Tier 2 or Tier 3, maybe a deterioration on the stage in the tier, but this didn't happen because of the lengthening of the debt. And we're talking about a year of risk.
And the problem with this that the bank loses its capacity for payment. It's a period where maybe you're not reaching out to the client to understand their conditions to pay. So what am I trying to get to?
In 2027, when the payments should start being made after this initial period, a relevant part of this credit may still have problems. We can't say that we're in a scenario where we can see stability for agribusiness. And maybe this credit should go to Tier 2 or 3, another round of provisioning, et cetera. I would like to know if this scenario is being considered -- for the -- I'm not even asking about the guidance 2027. But in this hypothesis of the scenario, this credit being renegotiated a deterioration for 2027. And how will you keep your ability to perceive this credit after this initial grace period?
This is not going to happen, Gustavo (sic) [Henrique]. According to the rule of the bill, they need to pay the interest based on the principal, not on the grace period. So in 2025, we're going to be able to understand these payments and have a finer analysis of the capacity of repayment for this portfolio. This is crucial for this process.
Second, for the operations that were already NPL, Tier 3, for example, even with the process of this new negotiation, they were kept in the same tier. And the large majority was in Tier 1, but we looked case by case. And I think this is important to highlight because those producers, agricultural producers case by case that did not show capacity for payment, we didn't renegotiate. We didn't make a new agreement with them because it would just be pushing forward the problem. And this is why we kept an elevated NPL in the last trimester of 2025. And now in the first trimester of 2026, we still have some of this delinquency because we focused on the agricultural producers that had capacity for repayment.
And this is why we kept these operations in the same tier. But we're going to keep monitoring this process. It's very important to highlight that the majority of these agricultural producers that we extended the deadline are producers that historically were up to date with the bank that have been with us for 10, 15, 30 years and maintain a very positive relationship with us. And this longer deadline is a relief, so that they can be rebalanced and maintain its commitments in the following years. So this is important to emphasize.
And 45% the operations that we did for '13 and '14 with free resources was already with post fixed rates. So we're able to maintain our margin. But if the SEBI goes down as we expect it to, we're also offering a game for the producer to have a higher capacity of repayment in the long term. This is also something that we talked about in the third quarter, and this will allow us a stronger capacity for repayment. And that's what we want because we want to keep these relationships. Agribusiness is a priority for Brazil and it's a priority for Banco do Brasil, and we understand that these producers are able to give this response.
I'd like just to come back to something I mentioned during the presentation. When we talk about the segment -- high-level segments for the bank and agribusiness is one of them. I'd like to emphasize 2 points. And we're going to remain together with this client for the whole duration of their crop and harvest so that we can understand with this client, what the productivity, we're going to continue offering insurance, credit.
We're going to continue financing the equipment and the vehicles they need because we understand the investments that they bring to the bank. So I'm saying all of this to make it very clear. we looked for clients that have a capacity for payment. We went case by case, client by client and looked for those that have the capacity for repayment. And especially for those clients, we understand that the possibility for regaining their capacity of payments, those were the ones that we selected, so that we can work together with them and think about new operations with 13, 14. So I'd like to highlight the relationship that we have with the agribusiness sector. It's different.
And we understand from what was observed in 2025, the need for us to be present in other locations and other sectors, some that we were present in the past, but aren't anymore so that we can -- for the presence of the specialized agribusiness sector. this is part of what we're projecting to specialize our services for the agribusiness sector even more in 2026 between the deadline and this grace period, there's a long time of also nurturing this relationship with the client, understanding the rhythm of business in their business up until the first payment is due.
Just one other point. This renegotiation wasn't to reduce the provisioning. Quite the contrary. Our guidance shows this. Yes, the risk continues to be grave, and we have an expectation. It's a portfolio that requires a lot of care. We try to expand the capacity of payment for these agricultural producers to normalize.
2026 will continue this way. It's a year of recovery. We don't know if the recovery will be -- what curve, what form this recovery will take, it will be steeper or more gradual. But we -- it's very important to understand that this bring results in other portfolios and other lines of business like the individual segment. And this -- between 53 and 58 in our guidance shows clearly that this was not a measure simply to reduce provisioning or improve profitability.
The focus is on the sustainability of the results and maintaining these relationships with our clients. And just to make clear here, we already spoke about this, and I'd like to emphasize this as well. There was no process of reversing tiers after '13, '14.
And another point, how are we going to manage this risk, as you said, is not yet stabilized or normalized from here onwards. And we're going to do applying the same models that we already did under '13, 14. So a large part of these operations came with a significant volume of provisioning. And this is representative of our credit risk of BRL 18 billion. When we think about the forward-looking of the market, if it gets better or worse, we'll recalibrate this, we'll recalibrate our model, so that we don't have any surprises in a deterioration or eventually in an improvement. in which we would have capacity to put this provisioning in other markets.
So we're very confident that this was a very well-executed analysis, and we have an adequately provisioned plan to face whatever comes next.
And lastly, this wasn't just a quick resolution. We brought for the majority of these operations, the correct conditions, for example, for trust sales when we changed the framework from mortgage to sales, but the client to honor 13, 14 has to put in a down payment as well. And just to complement, we we raised the Tier 1, the coverage for Tier 1 in this last period.
Our next question, I'd like to invite Gustavo Schroden from Citi.
I'd like to talk a little bit about the guidance for PDD. BRL 55 billion is the average point here. If we do some simple math, we're talking about BRL 13.5 billion of PDD per trimester. If we look at fourth trimester, this was around BRL 18 billion. And this gave us coverage on some of the aspects despite Tier 3 of some of the agro having been covered.
My point here is if we think about this average point for 2026, we're implying that -- and if we assume that the bank will reach about 100%, we're assuming that there will be an improvement in the NPL. If we look at NPL for 90 days or 30 days, however, they continue deteriorating. So I'd like to understand how are you seeing the evolution of this NPL, especially in the agribusiness portfolio, assuming that there would be a reduction of the PDD in 2026.
I'm thinking here about an average of BRL 13.5 billion per trimester and the next trimester around BRL 18 billion. And assuming also consumer levels and the reserves. So I'd like to think what can you share with us in terms of the evolution of the delinquency in 2026, so we can have an idea of how this is going to look in 2026.
Thank you for the question. Before I give the floor to our CIO, the first quarter is not 13. It's closer to the fourth quarter. But now I give the floor to Prince. Thanks for being with us here.
We are not giving -- we have a challenge. It is focused on the agribusiness portfolio as new defaults in the small and micro companies as in 2025, it's been leveling off. It's more related to the changing mix and seeking for a better adjusted return -- risk-adjusted return and agribusiness is, as we have been saying, a market that we are still working on the stabilization process is correlated to the crop process.
We still have half of the 2025, 2026 crop still underway in the first half of 2026. There are challenges related to the due dates of this crop. And we understand that given the revenues that continue to be positive with a record crop, the recovery of payment capacity that 13 14 brought will create a process of reducing the risk level in agribusiness. And in our projections, this will improve as of the second half of 2026.
We also need to consider that this entire contracting framework was implemented as of the beginning of the 2025, '26 crop. We have better quality. We are better protected by guarantees, and this will help default to evolve not quickly, but positively, particularly as of the second half of 2026. The flow will be irregular during a year. We will continue to be under pressure, particularly in the first quarter, but our expectation based on all the measures that we have implemented that we will have relief as of the second quarter -- beginning in the second quarter of 2026.
There's also an issue of consumption of coverage. What happened, and it was widely disseminated by the media, there was a default in the fourth quarter of 2025, but has been normalized and the operation was transferred in the first half of 2026. All this movement that has been captured by our guidance, there were adequate provisions for this transaction. So you see a pseudo gap in the coverage of NPL, but it's nothing more than a result of the specific case, which has been resolved, and you will see this curve normalize in the first quarter of 2026.
The next question comes from Yuri Fernandes from JPMorgan.
Congratulations on the transparency during 2025. Going back to Schrodens' question, credit quality and coverage quality, everyone is asking the same question in different ways, talking about NPL and provisions. But in this specific case, in your coverage, there was a consumption of more than BRL 5 billion in coverage. And when we talk about agribusiness formation and the corporate formation, a little bit above 100% or very close to 100%. But the individual portfolio, it came under.
Given that you are growing this portfolio with consigned -- private consigned credit and credit card, why did the individual formation was so much lower, same question a different way. Why did the bank provide provisions for individuals?
It's in addition to complementing shareholders' question. Where is the default formation, especially in nonconsignated credit and credit card. In the last month of 2025, we began a process to adapt the adjusting default in this portfolio. Given the default levels that we had been observing historically, and based on the implementation of this new solution, we are already seeing a very representative reduction in defaults, which has already impacted credit cards in the last month of 2025.
In practice, the expected loss is adjusting to the new way how we have been engaging our clients, particularly along those 2 lines. When you look at the rest of the portfolio, which is very focused on consignated credit, public consignated where our default rate is lower and the private consignated where the default level is where we had -- as we expected with a very adequate adjustment to risk.
There is a change in the mix of products. We are offering new solution to our clients, so that the client can continue without being default. In January, where seasonally clients have been very affected based on all the deadlines of the beginning of the year, and the solution has been very well received. And the origin of it is different because it is adapted to the clients' payment capacity. So this is an adjustment to the expected loss, and it brings a specific movement in the change of NPL formation and along the period, this will be normalized, and you will be able to see this in the first quarter. It also should note that we have 70% of the portfolio in Stage 3 entirely provisioned and individuals, 66% in provisions in Stage 3.
The next question is from Mario Pierry from...
I will continue with -- on the topic of default. Can you update us on how you see the number of recoveries, judicial recoveries in the last half, it was something very significant for you. You are making an effort to reduce the number of cases. So how do you see the evolution of court recovery? What's the size of the portfolio? And what is the positioning of the portfolio?
Thank you very much, Mario, for being with us. This is a very important topic for -- not just for the bank, but for the system. 2025 had a record number of court recoveries, not just in agribusiness specifically, but although we obviously have relationships with companies that are being court supervised reorganizations.
We were very vocal about this with respect to our desire to act to have conversations with the courts, with the farmer associations with all the stakeholders related to this topic. But Banco do Brasil would be very rigorous in defending our rights in this process. We went to the field. We raised the awareness, and we accelerated the processes, the court proceedings where we understood that the negotiations were not producing results, and we needed to defend our rights.
So you can see the curve in our on the document issued agribusiness -- new actors in agribusiness in the third quarter was lower. And we are very reliant on the solutions that we are offering our clients. With the MP1314, we expect that these proceedings will be reduced. We also see that many of these cases that had begun without a basis or a proper rationale that those that were reorganizing and restructuring had some difficulties in the courts.
So we are raising awareness and this awareness is reaching many farmers. And now with proper products to recover the clients' payment capacity, we continue to expect a reduction, not a reduction, but a slowing down of growth in these numbers, both...
Going in with the judicial recovery. We did our modeling, and we saw a number that was 75% of our portfolio is provisioned. And then you can ask me, should it be 100%, so we have a recovery that is 30% more or less. And we see this with our clients are in process of repayments in these operations. So it's a little bit of that what's happening. What we can affirm here to you is that judicial recoveries that are on the radar and on our radar for 2026, they are already contemplated in our guidance. And those that are still circulating in our balance, they are more than adequately provisioned.
Just one highlight that I'd like to make here. In the first moment, the judicial recovers were very focused on the financial institutions. So the debate was very much on these 2 different levels, the rural companies and the financial institutions. And we now see another sector entering this conversation because it's affecting the supply -- sale of supplies, the local municipal economies.
So we have many more stakeholders involved in the conversation about judicial recovery. And our expectation that with everything that we and other institutions have been doing on this, we have a bigger conversation so that this can be effectively applied only in those cases in which it is very justified. And as we see, the growth was very elevated in this last period.
And as Prince said, sometimes to deepen this debate in terms of what are the minimal criteria for -- especially in the individual segment or in the agribusiness sector, this has helped us in this year, and that's our expectation. So involving more stakeholders from agribusiness, we have a stronger voice to discuss this theme, be it in the National Congress or in the judiciary. Mario, have we answered you? Yes.
Yes.
I'm going now to our next question from Carlos Gomez Lopez from HSBC.
Just one not on Agro for once. On the capital ratio, I think from your podcast, you were saying that you're getting 122 basis points benefit from Resolution 13, 14. Can you confirm that is the benefit that it will last 4 years? And is it going to change over time? Do you expect it to increase all the fees?
Yes. The benefit in our capital ratio given this restructuring program with rural producers has a due date. So you should expect looking forward, and we are always projecting our capital ratio looking for the next 3 years. we believe that although this benefit in our capital ratio tends to drop throughout the time, we will be able to bring profit generation back to the normal level of Banco do Brasil, adding extra profits to our capital base, maintaining our balanced CET1 that we consider that very comfortable to sustain our growth in our portfolio close to the 11-ish area, okay? So definitely, it's positive in the short run. But in the mid- to long run, we will go back to our returns that we were used to have before this specific issue on the agri sector. Did I answer your question correctly or you should.
Just -- so just to confirm, you get the benefit, which is related to the balance that you have in these restructured loans as the restructured loans are paid off, that balance will decline and therefore, the benefit will decline. Is that correct?
It will decline, yes. But as we mentioned, we made BRL 35 billion in the program. So as long as the loans are maturing, we will be replacing them by this excess of loans, okay? So it will help us to maintain this level for the next 5 years.
Okay. And can you remind us what the impact of the new resolutions will be the additional capital requirement that you're going to face this year for operational risk, et cetera?
Carlos, I am having...
The regulatory requirements that will happen this year, especially coming from the operational risk. Is that the question, Carlos, that you asked?
That's correct. The addition -- the new impact of the phase in.
Okay. Do you have this number, Prince?
The exact number of...
What is expected to hit our capital ratio coming from the regulator in terms of operational risk?
Perfect. From the operational risk, Carlos, under the 1467 law, we are expecting 0.7 bps impact in 2026.
Yes. And Carlos, there is also the second phase of the implementation of IFRS 9 here in Brazil in the first quarter. So we have 25 bps coming from that, together with this close to 10 bps that Prince mentioned about the operational risk. We are also repaying the hybrid instruments that we have for the agribusiness, additional 10 bps in this year, okay?
Our next question comes from Pedro Leduc from Itau.
Two quick questions. First, about operational costs. The guidance says 5% to 9% in the year. You mentioned this is something you're paying a lot of attention to. Maybe the portfolio is slower, you can prioritize certain things, and it seems like you're really able to continue the cycle of investments. If you could share a little bit with us what are you prioritizing? Why this guidance to increase this above the inflection? That's my first question. upside and downside of this and by how much?
And the second I know you won't say names, but can you talk a little bit about third and fourth trimester?
Leduc, you have a lot of background noise, but I think we understood more or less. With respect to the expenses, why do we put 5% to 9%? It's important to remember, this is not -- just doesn't apply to Banco do Brasil, but to all banks. This is a year of renegotiation salaries for the entire sector. This is led by Fedra. And so in some measure, we bring a little bit of what can happen. We don't know because it's a negotiation table, but this will happen around August, September.
We're also -- when we think about expenses, -- we have to think about what we can control, the cost of credit and how we control expenses. As Tarci said in her presentation, we have optimized our service points. We are creating hubs, new models of service, the digital, bringing AI. So all of this, we believe that we have conditions to control. It's that in comparison with our private peers, we have specific rules for SG&A.
We have to have specific criteria in the contracting process. So we make an estimate. For example, if I have to change my equipment or infrastructure, I have to open a bidding process. And the bidding process give me an idea of the reference price in the market. We opened the auction. So we never really know how much exactly we're going to spend, but we're trying to save and tighten as much as we can so that the costs can actually turn into profits. But we've shown you our capacity to execute what we set out to achieve. Whether it's growing our business or controlling expenses, and that's why our efficiency rate compared to our peers is one of the best.
So we always talk about this guidance given the uncertainties in this scenario. If we're able to delay some things, we will, but we've always been able to deliver on the lower end of the guidance. Why? Because we're doing much more with much less, and this is extremely positive.
To your next question, I'm going to invite Prince.
Pedro, it's great to see you again. So to give you a fuller explanation, this case is a PVM. So from this, we're looking at those that have this characteristic of credit. This was already problematic and adequately provisioned for a few years. And this operation became delinquent in the fourth quarter of '25 as a result of a negotiation that was in process that was successful at the end of 2025, but that the instruments the Banco do Brasil instruments were agreed upon in the beginning of 2026. This is why we thought it would be better to let the NPL continue in 2025, even though this didn't bring us additional expenses related to the provisioning because this was already included there in the provisioning. The negotiation worked out.
The operation was normalized now in January, and this operation was ceded to third parties. So that's what happened. We can't disclose the name of this client, but I think you can probably do some deducing based on news reports to understand a little bit better. We feel very confident with this. It's nothing new. It's a CVM that was already on our radar that became NPL in the fourth quarter. The negotiations were positive and implemented between December and January.
The specific Banco do Brasil instruments were signed in January. And with this, we see the operation, and you'll see this reflected in the balance sheet of the first quarter, and everything will be clean as a result.
I'd like to talk about the administrative expenses. It's important to note that Banco do Brasil has the lowest volume of administrative expenses compared to our peers. We're projecting between 5% and 9% in our guidance, but it's already the lowest volume in the financial sector. We also have the highest efficiency index. And in the last few years, we've been demonstrating a lot of discipline and care in the administrative expenses without having to let go of people or equipment that we need to continue growing. It's a percentage index, but I think it's important to look at the volume and in what volume this percentage refers to.
Our next question comes from Renato Meloni from Autonomous.
I'd like to come back to the NPL, but looking at the individuals portfolio, you talked a little bit about this. but it looked like the quality of the risk is improving. And I think given the growth that you're projecting in the guidance compared to other ones reflects a little bit about this risk. Are you having to grow in the portfolio with the credit still deteriorating? I'd like your thoughts on that.
Second question related to agribusiness. If you look at the Central Bank numbers, NPL in the short term has already started falling in the beginning of the year. But for you, it remains stable. So I'd like to understand why is there a different dynamic in the sector with you? Or any additional analysis you can share?
It's great to see you again, Renato. Starting with your second question related to agribusiness, there is a difference because the Central Bank releases information with more than 15 days, and we release to remain coherent only after 30 days. And so we see a small improvement in the short delays, but I have to be honest with you. This is a period in which seasonally we have the lowest volume of investments. So maybe looking at the default in the short term is not the best in this moment because it's going to capture a period in which I have less repayment. And then obviously, the resilience test for the agricultural producers is lower threshold. but we have seen here in the metrics, we follow the delinquency rates here even before they go into default, and we did see an improvement in this short term.
When we think about MP-13,14, we also think about all the measures that were taken, but we have to be very responsible here in how we assess and understand this also as a period with the lowest volume of investments in the portfolio traditionally because this is tied to the harvest. So these investments are concentrated in moments when the agricultural producers have liquidity, which is around the harvest of the crop. So even though we've seen a small improvement here in the very short term, we have to be very responsible and emphasize here that we have a significant challenge in the first trimester and in the first month of the second trimester.
With relation to the portfolio of individuals, we've been very vocal, and it's a strategy of rebalancing this portfolio where we are placing more emphasis on those with better rate of return. And you note that our individual portfolio is what brings the greatest returns in terms of risk. And that's why all the effort that we did to rebalance in 2025 still is not at the number where we'd like it to be. But as you can observe that this individuals portfolio becomes representing a larger volume and a more representative volume in our portfolio of 2025, and this hadn't happened since 2019. So the path and the discipline in executing this is on the right track.
Now obviously, you have a bit more risk in these portfolios, and that's natural. You have to understand the return that we're receiving is more than enough to cover the risk we're incurring. This doesn't mean that we're satisfied or that we're comfortable. And this, as President Tarciana said, our focus on individuals in 2026, in addition to this better balancing of the portfolio it projects a strong growth in lines where we have the best ratio of risk to return. So payroll loans, public payroll loans, they have a few leverages that will come through in the first quarter.
We've already seen, for example, salary increases, tax filings that affect a lot of our clients that are civil servants. You have to remember that our portfolio isn't just federal civil servants. We have municipal and state level civil servants that will be very benefited by this tax exemption. And this brings the margin of the payroll loan that's available and gives us conditions to advance in this portfolio of clients. We also have a private payroll loan and credit to workers where we leaded in disbursements in 2025, and we have a very strong strategy to advance in these bases of clients in 2025 and 2026.
So we have this repositioning of all of our brands of high level. And that doesn't mean just services around products and consumers, but clients that are demanding credit and credit that has better assurances. And for example, we have the largest pension funds in the country. And this already means that we have a ready solution that gives us guarantees for our loans, for the clients, individual clients. So we have an ocean of opportunities here for 2026, especially with the perspectives of maintaining the unemployment rates at historically low levels.
It's a little bit contradictory, low unemployment and high levels of debt in families. with these new measures in 2026, the debt -- family debts tend to go down. And this brings us opportunity to confront this niche of clients with security and exploring the volumes that we project in our guidance. So this is why our individuals portfolio is growing much more than the others.
And obviously, this growth increases our capacity to bring to you a stronger and more robust recovery. This is all part of our long-term planning. We know and we're aiming where we want to get to. But obviously, it's the market that will bring us a little bit more risk. We have very strong criteria. We're monitoring this daily and the risk of these operations, we have our eye on this, and we don't have any problem in recalibrating quickly so that at the end of the year, we're able to meet this expressive growth, rebalance our portfolio and with the credit risk controlled.
With the opportunities with the income tax exemption, we have BRL 28 billion that is already available in credit for our clients. This means that 18% of the portfolio based only in the income tax exemption in the payroll loan portfolio.
The next question comes from Marcelo Mizrahi from Bradesco.
congratulations on your presentation. I wanted to ask you about the individuals portfolio growth. In the last quarter, we saw a very strong growth in credit card portfolio. In terms of NPL in the third quarter, we -- what is the profile that is bringing this client base? Is it a private payroll loan line or something different going forward?
Another question with regard to the individuals portfolio growth with private payroll loans, how much of it is an application from the bank or in the data prev system? I wanted to understand how much is in-house and how much is at Data prev?
Mizari, with respect to credit card NPL, we have -- first of all, complementing what Meloni said, our farmer client is also an individual client. So what we see in terms of default reflects the agricultural, the rural context. As an individual, it has a credit card and expenses. And as was said here, some regions the RJ issue brings problems for the local economy as well. Part of the individual default, we have talked about our individual clients who are rural clients. We have a profitability committee that we monitor every month.
And we have been inquiring about the initiatives to -- for us to control the default, especially in i.e., individuals, there's a practice that we were not following contrary to our private peers. When there is a delay, we can offer the possibility of the remaining balance to include that in the invoice in the bill. The bank was not doing that. So when there is a changing stages, we see this inflection in default rates, which were growing. As we grow the relative participation in the individuals portfolio within the entire credit portfolio of the bank, if we have a higher default level, the return is higher. It brings this higher NPL, and we should expect this growth. We are going to work with higher levels.
With regard to private payroll loans, we -- it presents one of the lowest default rates. The expected loss is about 3.5% to 4%. We are very rigorous in our methodology. Banco do Brasil was, in fact, pioneer in managing not just the clients' risk, but also the employers. So when we talk about private payroll loans and how it's generated, it's important to remember that we began virtually at 0. We didn't have such a portfolio.
And we focus effectively on the original origination, CTPS in the government data Previ system, and we have the highest the booking. 70% today of all contracts are originated at Banco do Brasil through our direct channel and 30% comes from -- originated in the CTPS. We have a percentage of new clients coming from Data Previ. About 8% of clients that come from Dataprev become new clients of Banco do Brasil.
Now our last question comes from [indiscernible] from XP.
I wanted to go back to a topic, which is the agribusiness delayed portfolio. There were some write-offs. Can you bring some light to the behavior of this portfolio going forward? If it has come to the maximum here in terms of participation in the agribusiness portfolio. Can you give us some information about this relevant portion of the portfolio, that would be very useful for us.
Matt, in terms of delays in agribusiness, this is a reality that has always existed and will continue to exist because of the risk that we incur in this portfolio -- in this activity rather, both in terms of weather and the price volatility, there will always be a moment when we need to delay in order to adjust the flow of payments from the farmer. We saw this in Rio Grande do Sul with a drought in Mato Grosso do Sul 2 years ago. We had some problems related to cattle raising and soybean.
This is a system that will continue to work. This is a dynamic that will not end. We are facing a challenge this year to focus increasingly on this and reducing this percentage with respect to the total portfolio. But we know that it will continue to exist. It does have a higher default rate than the non-delayed portfolio, and we work based on this fact. There was this variation.
We hope that this year, as President Tarciana said, we expect a positive crop, both in terms of planted area and production and productivity expectations. So we expect that we will be able to maintain or even reduce this percentage in the delayed portfolio. We will wait for the next months to see how this portfolio evolves. The product that is more focused is milk, especially in the southern region. There might be some pressure in this. So we will try to receive what we received last year in other crops. This is a reality that's not Banco do Brasil, but all institutions that work with agribusiness.
We are very focused on this situation and try to maintain it, if not at the current level or even reduce it in the coming months. In light of all this, what happens? First, we have a higher risk in this segment, and this is reflected in the expected loss models. Our expectations in terms of expenses doubled during the year.
Not only that, you need to understand that there is a 4966 dynamic -- and before these transactions were lowered to loss as a mandatory method after 360 days, and that has been increased to 720 days. So these losses will be -- are expected, but will be even lower than with respect to 2024.
The models are live and they are looking at the clients' payment capacity. And when the model sees that the recoverability of the asset is finished, what we do if it's not provisioned, we direct it to provisions. and we write it off after the -- regardless of the delay time. The assets in the delayed portfolio is that they have the payment capacity so that these liquidations can be done.
It also has a volume of provisioning looking at all the expected loss and degradation of the segment criteria, but the assets with recoverability has finished. We direct -- we use the provision and write it off to loss. The active balance is healthy. That's the conclusion.
Thank you, Matt. Thank you very much. Well, we are finished here with the Q&A session. I thank everyone for your participation in our live stream, and we are available for any clarifications that you may need and see you next time.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Transkripte auf Deutsch freischalten
- Alle Event Transkripte auf Deutsch
- Sofortige Übersetzung
- KI-Zusammenfassungen für die wichtigsten Insights
Banco do Brasil ADR — Q3 2025 Earnings Call
1. Management Discussion
[Interpreted] Good morning everyone. I'm Janaína, I'm from relationship with the customers at Banco do Brasil. Our event is going to be conducted in Portuguese with simultaneous interpretation into English. You can choose 3 options of audio, Portuguese, English and original. And in order to start and in order to share our numbers here, we have our CEO, Tarciana. She's online from Berlin. And here in our studio, we have our CEO and our Vice President of Agribusiness and Family Agriculture, Gilson Bittencourt.
In order to start, we have a very brief presentation of our results and numbers that we've recorded so that we will be back. We are now going to play the video.
[Interpreted] Hello, everyone. It is a satisfaction to be here with all of you from Berlin. And in order to be here with you with more transparency and to show you our -- as we have highlighted on the opportunities, 2025, we have had some adjustments and also our strategy, we are going through this turbulence. It's very important to know that our resilience has been allowed for us to absorb our regulatory changes that brought to us very important alterations in the way we do the credit risk.
In order to talk about this, we always have the opportunity to show the practice, the force and the strength of more than 120,000 employees in order to have all of these. So we've started 2025 with a very positive perspective. So we have had also a very typical scenario, so that we deep dive into some scenarios. We also had some static and operational opportunities that we have also shared with all of you. Even though with this adverse scenario, we also have our -- every business in order to be able to deal with delinquency in relevant regions. More than knowing these challenges, we also engaged the construction of a very structured solution and that we also had the addition of MP 1314 capacity to generate businesses and the net value.
We've achieved BRL 26.4 billion. This is an example, which is our performance. Since our -- performance and our reliability considering this growth, we have the principal capital in 11.16% considering all of this. Our ambition is to reach 20% of the market participation, which is going to be pretty fair. And this credit has provided a very relevant change which is positively considering the credit and contributing for the credit and for the -- it's also important to talk about the resilience of our capital, which is 11.16% considering the level that we've judged for a very fair for Banco do Brasil, BRL 17.9 billion, which has been very important. This has been very important considering the delinquency, this elevation is very important considering soybean and corn.
And also farmers who also adopted different opportunities. We also see some reflexes considering the agribusiness. This is also provided by them. They are also responding to this the MPs reached 10% considering the interest rate. If we do not take into this account, then delinquency would be 6%, even though in the third quarter, we have had different businesses that impacted all of these. On October 10, we also had this opportunity.
We took decisions that were responsible and to have the correction of the production and decided, we advanced in technology innovation and specialized relationship. To offer the best experience, we shared with you Investor Day and other opportunities and we will continue to involve all of that with the clear objective to prepare Banco do Brasil to a new cycle of growth and generate value to shareholders. We will keep strong with those values that are Banco do Brasil base.
Now I'll pass the floor to our team to dialogue with the market.
[Interpreted] Okay. So we return here. And first, I'll pass the floor to [indiscernible] to comment something about guidance and the first numbers of MP 1314.
[Interpreted] Good morning. Once more, I would like to thank the presence of all the analysts here on this meeting. The press they are watching. And I would like to say to you about our guidance that both reviewed line and to talk about how currently, we are renegotiating Agro on BB Regulariza Agro on the MP 1314. So when you look at our guidance, we brought to you 2 lines reviewed, the cost of the credit and adjust profit, last trimester when we talked that the guidance of profit were very bold of this year. And we reviewed and we brought to present to the market.
So when we saw the first trimester, some issues appeared. And then I would like to share with you, we had a necessity to have a provision of BRL 1.3 billion for a specific case, the companies of retail. And it's important that we have an increase on RJ that -- with that we had the challenge to elevate provision. And at last, we got waiting compass of the produce provider, the addition and the [indiscernible] of the Law 1314. There was a process of [indiscernible] that took longer than we wait. So we started to operate 24 days ago. And that gave the necessity to have a higher provision. And by consequence, profit provision that's lower because of those predictions.
So we adjust 2 lines, the cost of the credit. We are adjusting between BRL 59 billion an BRL 62 billion and that just profit between BRL 18 billion and BRL 21 billion. Talking about the Law in 13, 14 here, the bank, we have BB Regulariza Agro. And it's very important to show you how we are working after starting to operate to now. We have BRL 11.4 billion in loans currently on the analysis area. From that [indiscernible] are from supervised sources. It's important to mention that until now, we achieved BRL 5.4 billion in negotiation. Our slide is not updated. We just updated this number. We have BRL 5.4 million of approved operations. It's just like we predict.
And our focus here is to have approximately BRL 24 billion of the total of proposals. So we are working to achieve it. We contact 75% of the clients. There are the constituency of the debt, and we have reinforced the producers that's the best way to negotiate. The Law 1314 brings the opportunity to regulamento the debt in 9 years. We are now analyzing and give deadlines according to the characteristics of the producer, the provisions of the operation and analyzing case by case. And it's interesting to mention that in this program, we are also keeping the insurance and try to find new ones.
So it's very secure. And I believe that it's important to you to know what's the consequence of this regularization. So we have 33% on the Central West region focused on the corn and soil culture, followed by Southeast regions and South region, 21%. So what we are receiving of operation to control resource, 92% are on South region.
Janaina, I pass the floor to you.
[Interpreted] [Operator Instructions] Renato is now here with us online, so I call him to make the first question.
2. Question Answer
[Interpreted] Thank you for this space. Because of the change with the guidance review and the application of the results, how that impacts the recovery that you mentioned, especially in agro for the next year? Is there any change? And inside agro, we saw that we had an increase on the first trimester and do not evolve accorded projection, so that's it.
[Interpreted] Well, Renato, thank you for your question. Good morning to you all. First of all, the compass of provision of the stage is similar to our expectation of evolution of BB Regulariza Agro. So you have a natural provision of those stages but the producers, they are trying to reach the bank to renegotiate. So it's very likely, very strong working to that. The Stage 2 operations would be regulated and you have that to the next stage. So nothing changed in the perspective of weighted loss and the perspective of solution that's imposed and we retrofit the model to have those evaluations.
The good news is that regardless the renegotiation or not, those credits are provisioned according to its loss. And it's related to your question. We plan to bring this issue of the Law 1314. So this transition between the stage could happen on the way around. So we can benefit our flow of weighted loss. So operationally, renegotiation are very related. They're achieving [indiscernible] of daily expenses aligned of what we thought at first to reach BRL 24 billion. So the challenge is to execute that. So naturally those values could flow to protection of other portfolios or to accelerate our recovery.
It's important to highlight that we are working strategically in 2 fronts. The first one, new operation, we trained -- so we prevent the necessity of provision. And on the second strategy, we are working with the producers that have the most critical cases to revert the risk. So it's important. We mentioned that we are working in a strategic way. So in 24 days, we achieved the speed of what we are waiting in 60 days.
So the network is focused to work the reversion of that in agro. The trajectory of default of Agro, of course. We have that on the video. October was a month where default pressured a lot because of this waiting compass that we saw the producers for a structured solution, the -- we got that. The performance is showing that's very good.
And our challenge is to trace. We have a very high ambition to regulate the full balance. So we intend to deliver that because on the fourth trimester is a lower flow, so it can engage and [indiscernible].
[Interpreted] Yes, exactly this matter of the deadline flow on the fourth trimester is lower. So we have a structured solution available and traced along wafer clients. So we hope that it will control the flow of the fourth trimester. So we have an inflection for the first trimester of 2026. Next question.
So my question, I guess, is on the revised guidance. I understand the issues with the rural portfolio continue to impact results. But I guess first is how much confidence do you have in the new guidance? And then even looking at the implied range, right, we estimate between BRL 3 billion to BRL 6 billion in net income for 4Q. So it seems like things could still get worse from here. So I mean, just in terms of the visibility that you have in terms of the deterioration in the agribusiness portfolio and if you may need even additional provisions from here, how much comfort do you have in that? If you can just help us understand at least some when these things can stop deteriorating to some extent. I think you mentioned 1Q maybe get better, but help us think a little bit about 4Q, just given all the uncertainty there.
Thank you, Tiago. Our confidence is very high. The reason we decided to change this guidance was because we saw these producers waiting for the implementation of this provisional measure, the 1314. And because of that, delinquency picked up. So one of the reasons we decided to revise it probably if we decided not to revise it, we would be delivering something close to the bottom of the range of the guidance we had on the Street. So we try to be more accurate in terms of how far these provision charges would go depending on how fast we are able to renegotiate with the producers, okay?
So we believe -- we do believe we will be delivering something in line around the BRL 20 billion net profit for '24. So this would imply, how can I say, a good profit. And the reason why I decided to say in my -- in the videocast that I recorded that I wouldn't want to be firm saying that there will be an inflection point because we saw October numbers, but as Tarci mentioned here, we are speeding up the restructuring of those loans that are defaulted with our clients. So as long as we continue performing the number of the volume that you have just seen of restructuring loans in November and December, we are confident that we will be able to deliver this new guidance we're showing you, okay?
Great. If I can maybe just follow up? Just thinking about 2026, a very, very high level, right? I mean, should things begin to inflect in 1Q and you should see improvement throughout 2026. Is that the best way to think about it?
Yes. We will have the chance to discuss '26 when we disclose the full year numbers. But we are still working on our budget, but definitely, we're expecting for '26 a lower volume of provisions and moving towards something close to the mid-teens ROEs, okay? Of course, it will depend on how successful we are on restructuring these loans. We will probably continue this negotiation throughout January and February. But I'm certain that once we disclose the full year numbers in February, we will have a very keen estimate regarding the guidance for '26, but definitely, you should expect lower provisions for '26 considering this level of BRL 60 billion, we are already accounting for '25.
It's important to remember that so far, we have already accounted BRL 60 billion of provisions in our P&L and in our equity book. and we are still delivering something close to BRL 20 billion of net profit. And this confirms the strength of Banco do Brasil on generating revenues to protect us from this extremely difficult situation in the agri book.
[Interpreted] Our next question from Marcelo Mizrahi from Bradesco.
[Interpreted] So first of all, I would like to congratulate you for the courage and transparent you're facing this hard moment with a lot of commitments. So we can't complain. So [indiscernible] I would like to congratulate you, not only Banco do Brasil has the best release. So the commitment is very good. So related to the question looking ahead, looking at this rich material that you put available, this harvest curve of credit, when you look at it, individual person MP, ME as the bank classifies, we saw the harvest of last year and this year. So I ask, when we look at some indicators of credit that were previous, the wallet 1590 from Agro has an expectation of -- so it caused my attention.
So the harvest issue, I'm concerned. In each moment, you are seeing default of other segments. So the individual fiscal person were affected, has to do rural producer, but that's what it is. Those are the problems of the bank. We are talking with the people that are on agribusiness. So I'd like to know from you how you are seeing the default of other segments besides Agro, the 2/3 of the bank on this dynamic?
So about peak of default in Agro in the first trimester. As I understood, I think we should have an improvement. So I would like you to talk about the default of the business people, the transparency of the governmental programs, we need to understand it and besides it, how to think the growth of the bank wallet?
We have seen the wallet this trimester had a contraction. We have the credit card something to focus and it has a high default. So how to leave the situation that the bank are in and how do you -- you are dealing with it?
[Interpreted] Well, we've pushed about and addressed about the agribusiness. It is related to our capacity of our execution, the BB. As for individuals, one of the third of our client base as you've mentioned, we do have a very strong pack considering the products for individuals that we have the transition considering the agribusiness change. So this delinquency is related to what is coming from our farmers and producers, which is different from other harvests that is different. As you've mentioned about the market that has been approaching that delinquency is not only for farmers, it is also about the difficulty and the capacity of payment of products and producers as individuals.
And the bank as it is in this productive chain, this is quite strong, and we do have this additional impact. So the harvest from '24 and '25, they are correlated to this performance, considering our customers, farmers and producers that represent not that much for the PS, but they represent 1/4 of the delinquency considering the PS client base and also considering credit card, as you've mentioned. And here, we also have a disclaimer that there is a constantly -- as you are aware of, and it is the lower documents our client base and the interest rate or the number of installments considering the operations of credit cards are -- they are all very low.
So we have this timeline and also the capacity from farmers, so we also have the delinquency considering credit card. The good news is that in this specific case, delinquency, we have been controlling and we are taking some measurements, very restrictive measurements in order to reduce the risk of this client base. Even though considering this situation, we are very low considering the average delinquency considering the financial market. So it's important to have this considering the client base and also having very inferior delinquency [indiscernible] and the market due to this characteristic of our client base.
So having this migration considering legal and corporations, we have government programs. And it's important to be able to tell about this differentiation because the bank has a very strong role if legal. So we have had a recent period, and we don't have this concentration considering these due dates. So we also have the payments in the harvest. So the guarantee client base, it is in such a rhythm that is quite normal in order to have this processing. And we also have this in order to be able to fulfill all of this.
And even though we have this delinquency and even considering the '24 harvest, the adjustment was quite strong, considering all the models. And we have a very clear redirection and for the receivables. So with that, naturally, we will be able to have a better result for this portfolio and finding out what we see as a clearer result considering this. And perhaps this is not very strong right now and considering the harvest that you are seeing now.
But when we take into consideration the short harvest is and the performance is just giant. So we have this very short delinquency that is less than short. So this takes a little bit of time, but we are truly confident considering this. So we have delivered this very confidently in this portfolio. So this is what you can expect from now on, given the quality and the origination of all of this. So when you see the legal and corporations, this has got a very good impact. And this is absolutely provisioned.
[Interpreted] Have we answered all the questions, yes. So it was a very specific question about legal corporations. Okay.
[Interpreted] Yes, correct. Probably, we could also take into consideration the next harvest, as [indiscernible] he's here with us, is our pretty new Vice President and it's really important to share this information. Most part of the delinquency comes from the cost of this harvest, which foray into '25. And as we are being very rigid, but we are also very attentive, not only being very -- only attentive, but being very effective to this. This also reflects considering the results of the rates and our expectation for the next year also, we do have the growth considering April to September, we will have a result considering this whole work that we have had, considering the credit analysis and using our methodology of credit analysis, not only about the hurry process, but also very structured and also the farmers who have a very tough pay bill benefit.
But it's pretty robust, and it's important to take this into consideration. The BRL 4.3 billion, so all the producers and farmers who were suffering considering the difficulty of cash flow and also these 2 actions, whether it's the new operation or this new program. We have this expectation for 2026. We will have this pretty low and it's going to be even better.
[Interpreted] Thank you so much. Okay. So our next question.
[Interpreted] The capital topic, as we saw. I would like to understand what you're seeing ahead? The 80% thinking about growing the wallet don't grow so much. And you recently reduced your payout to 30%. So how do you look ahead the capacity to keep payout next year?
Mario, thanks so much for your question. Our commitment is with the sustainability of the results of the Banco do Brasil. So considering, we think that's good, we improved and revert this flow and bring our main capital over Level 11. So it's a great one. So have a radar next year, one of them at the end of CGPL, renegotiation program of the small business, so which will reduce 6% base data of debt. So everything that's happening with the reduction of the recurrent results. What's happened in the Agro that reduced the growth of the capital in organic way. So we will keep 30% of payout for next year. And of course, depending how much we can renegotiate it and reinforce on capital, we'll evaluate the possibility to return with the results that we consider that's what Banco do Brasil deliverers.
We can talk about the extraordinary payments of debt. So for now, that's our policy, 30% of payout. So next year, we have severity on the capital that's come from the provision for BRL 966 million. So we'll consider that and we have another potential adjustments that will come. So we have -- we are being very conservative, being sure that capital-based fundamental to support the growth of the wallet. So next year, we will still grow the natural personal wallet loan, public loans and the work loans where we are vice leaders, we are going to bring more recurrent results.
And just to mention, 6 bps micro small business program, 25 bps from the second phase and we returned 1 bp from hybrids in July's counting. The impacts that we got on the trimesters, we have 4 bps ahead, so always in July, and we had operational risk faced in 4 years, 10 bps per year. So around 100 bps impacting next year. Just reminding, and Mario, it's not clear to everyone. It's important to clarify that each renegotiated real based on the Law 1314 the same now on the main capital basis is the same effects of CGP so we neutralize those impacts.
Currently, we have 7, 8 bp of CGP. So it's on the ambition that we got. So we will overcome, auto has less capital.
[Interpreted] So I'll call next question that comes from Daniel Vaz from Safra.
[Interpreted] I like to focus on Agro, talking about the growth of the wallet, but if you broke [indiscernible] and the original dropped 12%. So it seems that even you have this control, the renegotiation program now by the law and the 4B of the NDS, I think that's the [indiscernible] wallet. It's on a level that we saw in the latest year. So it's a reflection of the capacity of payment of the producer. So the due dates that they got the wallet progression, we have a decrease of the concentrate default. So it's 8%. Naturally, this was classified in Stage 1.
So it got worse consented. So we transferred to Stage 3 of the next trimesters. So I'd like to hear from you how do you look for the help of this [indiscernible] wallet? And imagine, the first trimester, if you are able somehow to talk about this wallet and saying that's going to warm up, if you're comfortable or not with this -- I'm sorry, if it's going to cool up, this wallet.
[Interpreted] Thank you for your question. So it's a very good point. This extended wallet when we didn't have solution for this segment. So what we are going to do? We are going to work on this wallet to be transferred to a line to the rural producer. So this portfolio will flow for renegotiated. It will keep the risk of it will be reduced because it's going to be related to the capital payment of the producers. So we are not comfortable with that. We have a portfolio that's elevated, and we need to work with it.
And the big difference is that now we have a solution, an adequate solution to offer to our clients. So we can adequate this operation along with recovery of the capacity of payment for rural producers. So to be objective we hope to have a solution that's more effective, including to deal with the balances that are inside of this portfolio.
So about perspective. So Daniel this portfolio is the most default one but the central point for renegotiation is this audience that was having the debt with the bank because of price problems and did that for 2 years via MP 1314 and understand the situation. When you're going to charge only the interest rate, the expectations to put due dates on this point. So this producer can restructure its payment flow. So it will restructure and reduce the full important factor.
Even we have a decrease of high of the Safra plan, our expectation related to Agro portfolio is to keep on this rate of 400B. How we are going to do that part of this decrease that are happening on the new contracts are going to be done on the law. So around BRL 20 billion, BRL 24 billion, our expectation related to the fees, so it's BRL 28 billion. So part of what we are not hiring in Safra, we are keeping. So it's near 400, a little bit down or up. So what tends to ensure profit on this portfolio.
[Interpreted] If I can make a follow-on on this question. Do you think that this program of BRL 24 billion, you're going to ask for more line for the government thinks that the probated BRL 60 billion, the focus is inside this pool? Two parts, these free resources don't have a limit. So how much each institution are available to do it?
[Interpreted] So we are dealing BRL 24 billion as a target. But if you have a space to extend it, there is no restriction. If we had more producers and you can help them to structure the payment flow, we are doing. So regarding the controlled flow BRL 12 billion, BRL 4.3 billion, we are working on a perspective that's very interesting. Starting on the state that's the most difficult one that [indiscernible] have BRL 4 billion, we are only being questioned about it. We are monitoring if we achieve BRL 4.3 billion, so we are going to talk with your peers. So for now BRL 4.3 billion, it's what we have from deman.
[Interpreted] Our next question from [indiscernible].
[Interpreted] Thank you for the partnership. I would like to understand 1314 and the first quarter. I would like to know about the [indiscernible] average payment term considering that because that has to be adequated and negotiation is key, but what is the measurement considering that because we need to increase this to 2, 5 or 10 years. I would like to understand to what extent is this going to be taken? If you could please just talk me through this. How does it work? Because this is in Stage 2 or 3? And how is it going to be just like this provision. And also the interest rate, how does the interest rate work on this matter? I'd like to understand a little bit better from this.
And also the agribusiness, as you've mentioned on a podcast that you had a discount and negotiation. So it is clear, but what is not very clear for me is that in the fourth quarter it is different, and it's the same level considering the third quarter. But the message that you were conveying you're having this disbursement and everything might be very clear to BRL 3 million to BRL 4 million, and I would like to know more about this and the government? So why having this pretty high provision? Could you please talk me through this?
[Interpreted] Thank you very much for your question. Well, first, we don't have any overall solution. Every case is taken into consideration. We have a technical body that takes assessments considering our customers, and we are just leveraging all these assets, considering artificial intelligence and all the modeling. And we try and we identified a real need of farmers. And these assessment is that from order to our credit team that assess the need of the due date, the period of time and the flow -- and the cash flow considering the capacity of farmers. So there is nothing single.
So we need to have a technical analysis and we then find a need considering the farming in order to have a negotiation with all of us. So that we take into consideration the current measurement and also the risk management in short and long term. We did call like this structure the realization in order to have sustainable solution in the long term. Even though you've seen this provisioning process and what is being expected effectively. So we measure the risk regardless why this is being materialized or not. So then our balance is going to be quite ready considering the sustainability -- future sustainability.
So then it's also about the stage. So that's why we don't have an immediate effect considering the flow or the balance that is expected because we conduct the assessment, the hiring is -- we have a 50% of operations renegotiated. That is we have the value and we have the adjustments, we have our framework considering the credit management and risk and considering the hiring. So then -- we then take into consideration the producer and also the opportunities for the banking in a long and short term. So the producers will have this payment term. We will have the possibility to keep operating with them and being able to have the best businesses.
So that's why you see places that you don't have this expectation of this reversion. So our focus here is to contain this delinquency flow. And also, we are able to deal with this in conservatorship we reevaluate the configuration of these customers. So each one of these phases. And eventually, we see that the producer is then clear. We naturally just have a reclassification in each and every stage, but that is according to a very rigid evaluation and assessment.
So once the risk is solved considering the agribusiness activity, so then we don't have this process that is needed considering this reversal of provision. But what can also happen considering this faster that speed that produces considering the capacity of their payment. If they are in this stage #3, we then have this reclassification, that is because of the renegotiation, so then these operations will then irrigate our financial margin, but this is according to a very conservative analysis and having as the focus of the offer legalization in the long term. And he will be able to provide more information about it.
So 2 very important aspects is that in an year, we have the interest rate. So for the next year, we will have the return of these farmers. And even considering their capacity of effective payment, it's not that it's only 1 year period of time, but the second aspect that is important to highlight is that it's not only any demand that we are including this renegotiation. We are dealing with this criteria. The timelines are every 9 years. So considering the payment capacity, we are not having viability. So this is the criteria. And we are prioritizing the farmers who have delinquency -- short delinquency. So we are just taking those who will be able to have an individual analysis, having a better capacity considering this flow.
So it's not that we are only going to renegotiate anyhow, but we have the timeline. We have 6 or 9 years. So each and every situation is being taken into consideration, considering the recovery and the generation of cash flow. So these are very critical. Look, it's important to be taken into consideration 5.5% that were approved, almost 100% is going to be feasible. So 100% is going to be formalized considering this. So we also have 11.4 bps and this is not going to be taken aside, but we also have the support demand, but they haven't been analyzed. So these [indiscernible] that we just analyzed that we had. So we are showing this data, 5.4 is practically effective.
So once we have these rules restricted, and we have everything proper, we have the numbers. And so then the process is going to be somewhat slow due to these requirements and the numbers they are lower, but everything is being taken into consideration, not to happen or what you've mentioned about the delinquency. This is not our responsibility.
[Interpreted] So next question from [indiscernible] from XP.
[Interpreted] We talked about Agro. So it's important to talk about the natural person segment. When you look to the excel that you published from 2014 from now on, we have the highest default of the series. I would like you to comment that and when you look to the portfolio growth in agro and legal entities, we have decreasing on the portfolio and natural personnel. So I'd like to understand the exception of tax income next year, what kind of comfort could you give that to this moment of the default of those in 2026?
[Interpreted] Good question. And it's important for you to look at the [indiscernible] as a point -- just a point thing is we grow in credit card in terms of volume and increase of default of credit card, and we have a contended effect coming from nonnatural person field from Agro. So they're waiting contacts work for everything. So those negotiations are happening. So naturally, we are resolving this matter. Looking at '26, our bet since we started to see this risk severity of the rural portfolio, we needed to focus on those lines that brought more return and spread, adjusted by risk. That's what we did.
So it's very good growth of natural personal portfolio. The trend is to keep growing. We have minimum wage adjustments and availability that's higher. So we have an opportunity to grow on the lower risk level and the laws of the workforce. So BRL 11 billion, and we have BRL 11 billion now available. So we have a big space to keep growing. Bringing more return to the bank to help us to go through this phase, delivering results to our shareholders. And we have a possibility that's important, we are segmenting inside our credit card strategy that the high income where we got more results.
So this default we consider as normal and simple. So we bet that '26, I'm sure it's going to be a natural personal portfolio.
[Interpreted] So thank you, Geovanne. It's important to reinforce that this growth of this portfolio happened because of the workers law. That's the line of credit that Bank do Brasil has 90% of the structure on this line. So it's important to understand there's still space for growth on this workforce credit line will have a share of 20%. That's a share that we understand that's more adequated to Banco do Brasil. And on the other hand, on the third trimester, there seasonality of default natural personal portfolio. That's a historical series. This Agro issue that Geovanne mentioned is punctual in default this month, we have November and December, receiving the third payment ex Agro is -- will be regular on this next 3.
Our next question comes from [indiscernible].
[Interpreted] Once more congratulations. Talking about the Agro issue, it was bad, it was good and latest years were very good and now is passing through an adjustment that's very strong. If you take the historical series of view, 5.3% of default for the segment. We never saw it. So maybe it's not 0.5%, but 5.3%, it's a very high number. I would like to hear from you the change that you are implementing, a structural change to have something more predictable, sustainable on the next cycles, if you could explore this point in terms of warrants, equalization and the RJ things, how we are going to promote it to have a sustainable product?
[Interpreted] Thank you for your question. I will start and then pass to Prince. You talked -- you mentioned very well, historical, we never faced a situation like this one. Last time we faced it, even like this on the Agri sector, it was necessary to have a capitalization in 1994. And what we are doing now at this moment, we are passing through the severe scenario for this portfolio and we learned a lesson. We are partners of agribusiness. And it was important to review some of our practices. And the first one as [indiscernible] mentioned, the new hiring contracts is the matter of fiduciary transfer.
The new titles that enter because of the agribusiness increase, they adapt in its systems, bringing this new warrant modality but Banco do Brasil is still on the traditional model based on harvest. So it was very clear for us to change very quickly. And one of the effects that we are facing this moment, it's a little bit of the reduction of the release of the new harvest because the process got feedback from our clients.
And we have that explained to turn that in a more safe environment, so we can understand the farmers. They are understanding we depend on the -- when you register this fiduciary transfer. And at the same time, we are still having results with it. So we're looking at 2026. We are going to have a soft process. So if you can add something else?
So first, the issue of the origin, as Geovanne mentioned, we have this practice of the field origin -- to know our clients to understand the productive capacity and the generation of income. Parallel to that point that we observe, your relation with clients from lazy clients. So we are very proud. Some adjustments in process were -- the cost of production. Other point, we are investing on the follow-up. So to identify the risks in a preventive way. So it's leveraged by new technologies. So we are connecting our historical basis of performance of agribusiness. I talked to you about it. We have cataloged that since 1960s.
So with new resources via reference and evaluation with AI, so can identify the deviation of productivity, risks from the climate. So with that, we can manage productivity of our clients foreseeing if they can have a difficulty of payments in the future, presenting previous solutions to reduce the risks on this business. So we are also investing very hard on the post production following. We have a default related to commercialization, mainly in periods where doing commercialization, there is a depression of prices. Just like the previous harvest, so we need to be very aware of the stocks that we have as warrant so we can converge in incomes and these incomes will go to the bank for payments for operations.
And we keep going on the process of negotiation. The bank shows its historical partnership with rural producer, launch BB Regulariza Agro, that's a solution that don't access on the market. So the big solution of the negotiation of the rural producer, it's available in our support channels through BB Regulariza Agro. And eventually, those cases where many times, we don't have even the negotiation itself. It's a goal for the court. And so we are defending our interest in because we believe that it brings an interruption of the relation and difficulty of the activity of the producer.
But are still here very strict, defending our interesting. And next trimester, you're going to observe that we should protocol some requirements of bankruptcy exactly so we can stabilize those process and the ones that try to contract this mechanism in a legitimate way.
[Interpreted] Next question, Pedro Leduc from Itau.
[Interpreted] Changing the topic about MII, 5% of increasing 3% to 3%, the components were more than 20% by part of the treasury, the clients who didn't grow so much. PVMs in a higher Selic, more work days. And on the client part via mix spreads. I would like to -- you to comment how we should see this MII line consolidated behavior for next year because we have a derisk on the natural person portfolio, so it should permit decrease and delinquency situation with Selic decreasing pressure on the treasury part? Just to understand how we are configurating the MII trajectory, seeing the portfolio for 2023.
[Interpreted] Thank you for your question, Leduc. We are aware. So we are expecting the cohort of interesting rates. So we don't believe that such a drastic reduction like the increase, and it came from a capture. We have an exposition of LCM. On the short term, the Selic drops down, in a certain way is going to facilitate and this gain of this match between pre and post capture of portfolio on this moment. So that's why it's important to accelerate this generation. We are generating volumes on the spread level that's higher. So to protect when the spread drops with the decrease of the interest rates.
On the other hand, it's a good environment for economy. And a possibility for it to expand this volume of credit, the volumetry will be important to help to support this financial margin. In terms of treasury, we took advantage of this moment of high Selic. Our delinquency were very high. So I call the change of the mix, focus of the lines of work and those are fundamental to support this maintenance.
[Interpreted] Our next question comes from Carlos.
We'll try English. So also to change the subject. Can you discuss the tax rate, which was very low, it was negative this quarter? So for the year, you have paid 9%, obviously, the profitability is low and you have interest on capital. But what do you expect for this year and for next year? And next, I would like to also have your comment about how much longer you will have the economic plans provisions?
Thank you, Carlos. Definitely, the reason for this low tax rate has to do with the increase in provision charges we accounted. So our profit before taxes was very low due to these incurred losses we have accounted. And for this reason, we had to recognize a much higher volume of tax credits -- deferred tax assets. And that's why our tax rate dropped significantly, showing revenue in that particular line. So we used to estimate an average tax rate around 15%. With this new regulation regarding expected losses and given the scenario we have for the agri book, you should expect to see a different tax ratio looking forward.
So we don't have an estimate right now, but definitely, as long as we continue accounting higher incurred provision -- incurred losses, we would have this benefit in our tax ratio because the framework has changed completely with this new regulation for 966, okay? So looking forward, you should expect a lower tax ratio.
And the second question regarding the economic plans, it's important to emphasize here that there was a recent ruling from the Supreme Court, extending the time for clients to negotiate with banks, all banks, not only Banco do Brasil regarding the economic plans. And there is a due date. So for the next 2 years, all clients must negotiate with the banks. And we believe that with this new ruling from the Supreme Court, we have a final due date that will happen within 2 years to end -- to cease this kind of provisions that we account for economic plans.
So that is June 2027, I think?
It will be '27. It was negotiated in '25. So we have -- and this negotiation was done through the federation of banks because this is something that reaches all banks, okay? It will happen '26 up to '27. That's when we have the final due date for all clients that were, how can I say, impacted by the economic plans can negotiate with banks the return of their money, okay?
But again, it is until the middle of '27 and you expect this level of provisions all the way there? Or should it fall off until then?
Well, in terms of provisioning, we don't know exactly because many clients they have already died. It's something that we're trying to figure out what is the size of these provisions. We have already reinforced some volumes, but you should expect keeping up this track in terms of provision charges. We don't expect a huge increase in that volume, okay?
And Carlos, for this year, the effective tax rate should be on a low single digit, okay?
[Interpreted] Our next question comes from Gustavo Schroden.
[Interpreted] I would like to get into the question that information about that there is a limit considering renegotiation and I truly understand the funding for this negotiation, the outcome. They are really for the improvement of the capital index considering the KPA that you have mentioned for every real that you have negotiated, you then have an improvement, considering for instance, BRL 1 in the capital. I understand that there is a limitation that they would be available and we had [indiscernible] that could be used for this program considering these provisions.
So I just would like to know and confirm whether this is correct? If there is any limit considering this improvement of capital via BTAs because it's probably -- it is required to have a funding and it's important to have this relief considering this bank capital.
And the second question, when -- how would be this sentiment considering the [indiscernible] RJ and above 90 days, but I truly believe that there is a different agreement considering credits and the program of the renegotiation, I would like to understand whether these credits -- whether this RJ -- whether this can be renegotiated and how would this be transitioned? How would this be -- or whether this if it is not contemplated, and I would like to know, considering the potential losses?
[Interpreted] Thank you for your question. You understood well. We have close to BRL 24 billion that we can renegotiate. And we will generate capital benefits because of -- should be the tax credit stock that we can use. It optimized the funding that also repassed in conditions to the clients. But as Bittencourt mentioned, there's no limit. This funding, it's under the bank. And obviously, we are going to put in your measures of financial cost, the possibility of this funding to be able to overcome this balance. So the balance could be passed. There is no limitation. What we have is the limitation of our balance of -- take that renegotiation to transform it in capital. That's it.
And we are prepared to have conditions, competitive conditions to offer to our clients, doing all our RLM management, so we can offer beyond BRL 24 billion as we commented at the beginning is our first target, but not only the last one. So related to judicial recovery, we have a limitation. It's not something mandatory for us to do this renegotiation inside the process of judicial recovery. So what we guide our producers is that to get in context so we can negotiate and make them to leave the judicial prosecution and then they can adhere to the conditions of the law.
We are not offering to problematic loans. We are offering to the producers that want to have payment capacity and sustainability of their activity on long term. So Bittencourt, if you can complementary topics.
[Interpreted] We have cases of producers that have in judicial prosecution, how they can leave that and renegotiation inside the bank. Those are specific case. This gain of capital is for the free resources. Controlled resources not be applied. Related to it, the monetary Board established, you just can use their own resources of the bank, but there is an expectation on the next days. We will have RCA resources so to extend the resource and a lower resource. And one aspect from the free resources, 30% of those operations that were approved are post fixed fees. It's not common rural credit, but a partner of rural producer of the bank put this opportunity. So we can contract with a prefixed fee or viable one linked to CDI.
So this BRL 35.4 billion are for this model. So we can control that in a more effective way, and it shows to the producer that this expectation of the reduction of Selic fee will give to the producer contributing. So then can have a capacity of payments on the next year. So we are working on a long-term overview of a partnership.
[Interpreted] And just to finish, Today, this portfolio has 75% of central provisions, very adequate to the loss estimates that we had. So those producers in RJ that are willing to negotiating with us, we have an open door to adhere to the new provisional measure. Remembering that we had a big elevation of RJ going to BRL 6.6 billion trimester. And the guidance review was this one, had an increase. So just to it was 1B 20, 1B 300. So we are building this coverage level because of the risk and the time that those operations to be defined and decided. To conclude, those operation, their recent judicial recovery, they don't have a plan -- approved plan. So they go to a default. And the weighted loss is very high. So we make an additional provision as a prevention.
Follow-up. We are in the middle of November. We have an indication to show how the number of judicial recovery are and how it's going to be. It's still increasing, but we are expecting a calling because of the availability of the law. So we are investing on negotiation, and we talk with the market, not different on other banks because with this solution, we have a powerful tool to offer to our clients so we can solve the business, the commercial negotiable way.
[Interpreted] So going to the end of our live our last question from Nicolas Riva from Bank of America.
I have a question on your presence in the international bond market. So in October, you called the last AT1 that you had in the global market. So -- but you still have a number of senior bonds outstanding maturities in the next few years. So I wanted to ask you about your plans to keep a presence or not in the international bond market and your plans regarding the refinancing of the senior bonds?
Thanks, Nicolas. We do plan to continue touching the international markets. The reason for calling the AT1 is because we have now a new kind of funding here domestically that is cheaper. So that's the reason we decided just to reduce our interest costs in terms of our funding, okay? But we do aim at continuing this relationship, especially in the senior front, but for now, we don't see any new issuance happening, okay?
[Interpreted] Well, so we finish here a Q&A session. In September of this year, we had our Investor Day. It happened in New York. And it was a reinforce of our commitment with transparency. And here, to reinforce even more commitment and to get close to the capital markets, we have this live with APIMEC and I have here with me, Ms. Lucy Sousa, the President of APIMEC that is going to deliver the seal of conformity. Lucy?
[Interpreted] Vice President, Director, [indiscernible] professional, my colleagues, analysts, investors, it's with a great satisfaction that APIMEC delivered this award seal 31 years of recurrent meetings in the hybrid or online format. We highlighted during this period of transparency, the contingency of information and the partnership and the support of our association and the analysts and the other professionals of investments. Congratulations to you.
Thank you. It's an award for attendance, it's an APIMEC award, 31 years in which we have our meetings, and I believe the important work of APIMEC. So thank you to your team that makes APIMEC such an important association in the capital market. It's a spectacular work. Thank you, and I'm very proud to receive this award.
[Interpreted] Thank you, Tarciana. We show a lot of success in copying the lane and all the professionals of Banco do Brasil shareholders. Thank you. Thank you, guys. So we conclude our live, and I'm available, the team's available to enclose additional clarification and see you soon. Thank you, guys. Thank you.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Transkripte auf Deutsch freischalten
- Alle Event Transkripte auf Deutsch
- Sofortige Übersetzung
- KI-Zusammenfassungen für die wichtigsten Insights
Banco do Brasil ADR — Analyst/Investor Day - Banco do Brasil S.A.
1. Management Discussion
Well, I think now we are all set. So, good morning. I'm Janaina Storti, Head of Investor Relations of Banco do Brasil, and it's a pleasure to welcome you all to our second edition of our Investor Day in New York. This morning, we will discuss the key drivers shaping Banco do Brasil's future. Our event is bilingual, and all the speeches and panels will be held in Portuguese. If you are here with us, you can choose your preferred language through the headset you received. So Channel 1 for English, Channel 2 for Portuguese. For those following us online, our event is being broadcast live on Banco do Brasil's YouTube channel. And now, I'll switch to Portuguese.
[Interpreted] Good morning. I am Janaína. I am Chief Investor Relations Department in Banco do Brasil. We are going to share some of the main strategies that support the future of Banco do Brasil. Before we start, I am going to talk about our dynamics. All of our body is present here almost. They are going to be part of some of the panels. The mediator will be Thiago from the bank, and there will be individual speeches. We will have a lunch during which we will talk about the macroeconomic in Brazil scenario. Before the lunch, we will have a session of questions and answers after all the speeches. There is a QR code, so that you will give our opinions and we can improve our events.
Now we are going to talk about Banco do Brasil. 2025 has been one of the most challenging years in our history, but it's also 1 year in which we reaffirm our institutional strength, and our balance sheet reflects how we faced the challenges. We also will talk about return on the investment. Our CEO, Tarciana Medeiros will talk about that.
[Interpreted] Good morning. Good morning, everyone. Thank you very much for being present here this morning. It's a great pleasure for us to hold this second edition of our Investors Day. In 2024, we had a great success. So we are repeating it. It is a great pleasure to receive you. And I would like to welcome all of our investors, shareholders and colleagues who are following us online. We are here with all of our chief executives.
And about Banco do Brasil strategy for 2025, we have made a lot of adjustments toward the growth of the bank for the future. So what 2025 brought for us? Janaína said it was very challenging, but we work with a major team. My thanks to our colleagues from Banco do Brasil. The team has been really fantastic in terms of showing the quality of what we work internally. 2025 was really a year of many challenges, but we used our values, our pillars, what makes the Banco do Brasil the institution that it is. We always act with transparency and ethics, and we are very transparent towards the market.
In the beginning of the year, we had to make some decisions about the first quarter. We had to tackle nonpayments or noncompliance. And we didn't have a vision for what the future would bring us, but now we are on the right path. We suspended some lines -- credit lines. We performed an analysis of the scenario and what we would see in our projections. It was somewhat difficult for us, but we did the necessary. We did the suspension of the guidance and we went through a situation that people would describe as the difficult situation of Banco do Brasil. But it has been a scenario that is similar to others that we faced before.
We went through difficult situations. And any [Technical Difficulty] of bankruptcies in the agri business brought us a pessimistic scenario. Yes, along with that movement, there was a different movement of judicial recovery in the agribusiness. It was a different situation in terms of bankruptcy. We had some delays in the maturity of the amounts than we were waiting for the Plano Safra for '25, '26. In the second quarter of '25, there was still resilient results of the bankruptcies or lack of payment. So we have now a situation where we control this situation, but there's a detour of the situation from '24, '25.
What was necessary to do? It was necessary for us to apply brakes and see what was happening. Otherwise, people would see us as facing a systemic situation. There were some crops in some regions of the country that were most impacted. It is important that we identify the problem and what was happening and with whom. And we sought measures to mitigate the risk of elevation of a stressful -- a distressed situation. And we work with supply chains that affect individuals as well as the institution of the bank. An adjustment -- a tactical adjustment was used when that was a necessity. We adjusted our risk models, and that was for the framework of 2026. We had forecast that due to the legislations and we made adjustments in the first quarter. We have a resilience framework. And all of our pillars go through that through conception.
In terms of the charges, the networks for collection, we also acted in a very tactical manner, and that's important for the investors. We had an understanding that we're tackling the collection of dues and that we saw what was necessary to adjust in that process for collection. Now in terms of the process of lending, we are not going to abandon our people, but granting credits. Now using artificial intelligence tools, our lending process is safer. And in terms of warranties, we are working so that all the crops operations are free of major risks. We have been working at that since 2025. Felipe is going to give you more details on that.
Selective disbursement, we have been very careful, especially at the moment of this credit disbursement. Each client is treated differently, taking into account the risk and the return regarding each client. So we act according to the profile of the client. This selective disbursement has been proved very effective. So as far as risks and internal controls, and we would hear that from public channels that of Banco do Brasil was not taking care of the warranties. In addition to that, we had shared that with you, we had strategic links with the stakeholders that could support us in this work to anticipate solutions that could be a collaboration in the adjustment of those issues with Banco do Brasil.
We did -- we worked with the union attorneys office, and we worked jointly. Banco do Brasil is not a bank that buys the lands of the farmers. We are working with the National Council of Justice and the Attorney General of the Union. And so we have discussed with the CME -- with the Central Bank to enhance the discussions for -- the agribusiness portfolio has a different profile, especially during the maturity of the operations. Yes, 466 was very important in that respect. We needed information to show the regulating agency what would be a good plan for the agribusiness. That work was done together with the Federation of the Banks and also with the Ministry of Finance.
And with the federal government, we have a constant dialogue. We always show -- see in the press news about our interaction with the government. When our majority shareholder needs to be called, they come to our meetings as well. And to amortize the debt of the rural producers, the farmers, we have something else. We need sometimes solutions and measures so that farmers can go back to a good financial situation. And we adjusted the remedies for the situation in the agri business. In the fourth quarter, we have -- we see some effects in our expectations. But Felipe Prince said, yes, there's a movement going up from -- in the elevator and coming down through the stairs. And [indiscernible] legislation treats in a different way, questions that consisting climate change issues. So this was a very brief description of what is happening. We are very trusting of the adjustments that we are making for the future to grow again in the bank.
There are some drivers here that are fundamental for the recovery of this movement. They are drivers of culture. I announced in our last statement that we would escalate the expansion of our digital platforms or it's about a change in culture in the way to work and the different agility in the way we work. And that happens across our organization. This is the great driver in the change of culture. This is something that it's not just for 2026 or '27, it's a change in the culture of doing things in the bank. And this is also a process of continuing learning the credit to agribusiness, to individuals. This is the reason for the bank to exist. We will work with the government, and we'll continue to invest. That's -- its credit portfolio is very important. We are enhancing our resilience framework. Our conglomerate is -- Banco do Brasil is part of a big conglomerate of 80 companies, all of them bringing profits for Banco do Brasil and some of them because of Banco do Brasil, but they are a big strength in our profits and results.
And agency in sustainable business. We take care of sustainability. We have been investing in that for more than 30 years. We celebrate that. And it's not just because sustainability is a nice word, it's part of the Banco do Brasil values. Talking about cultural transformation. In this moment, we are adapting our model for all the strategic layers of our bank. Marisa is one of our collaborators. She is here, and she's going to talk to us as well.
What about this new way of doing things? To give you some numbers, as we have been implementing our model of digital acceleration, we saw an increase in customer satisfaction and an improvement in the employee satisfaction that works now in cooperation. Collaboration with others has more pleasure in doing their work and our results increased twice, thrice, five times more. Efficiency and effectiveness in this model, we are working in the upskill or training of our staff. We have 75,000 employees that are already working or being trained in digital acceleration.
We have an academy that offers to all employees courses of technology and artificial intelligence and so forth. They can be trained in accordance to the situation in the world. There are models that can be applied across the world. And so it's good that we know what's happening beyond the walls of the bank. We are doing that together with the whole organization that has had leadership at all hierarchical levels of the bank. We invest more than BRL 41 million in '24. In training, more than 5,000 employees were trained in the academy, more than 300 hours of training. And the bank's analytical maturity, 125,000 employees across the conglomerate is a good number.
Artificial intelligence. When we talk about artificial intelligence, that's an investment in cybersecurity and also governance. We may make progress in artificial intelligence, but we cannot dismiss the importance of security. We are working in solutions in terms of the governance, in terms of the data. We are one of the first banks to tackle that. We are always careful to make governance something that represents a pillar of evolution in the bank.
We have also plans to work with the client. We try to find out what is it that the clients need. We are the world model of CRM, the client relations. If the client changes a channel, we can accompany him through WhatsApp. We are the only bank in the world that works with WhatsApp in CRM. We have several millions, 20 million customers that do transactions through WhatsApp. We have a base of 30 million clients that use digital channels. A bank with 85 million clients, we think -- well, 30 million, but this 30 million are recurrent clients. It's not clients that use the digital channel only for transactions, but uses it constantly for other things.
The client has searched less and less the physical channel. And for that, we also have to modernize the physical model. But the fact that we are a continental country, and we have 15 million services a month at the bank agencies, people go to the bank in person. So we have to be present where and when the client needs. For that, we are working lighter structures, more integrated and resolutive strategies. Last year, [indiscernible] was a great lab. We learned a lot with that experience, and we're going to take that experience in Berlin. We have four agencies focused on the environment. So we had four agencies in different locations. So today, we have the four agencies at [indiscernible] integrated with other businesses other -- outside Brazil.
So with this model, with the lighter structures, it's our goal. And more adequate to the servicing, we gained more -- 40% more efficiency in the last 5 years. In '26, we have to transform agencies in service hubs. We have a hub in Berlin, Zagreb sustainability, another in Bauru. But the fact is that we're going to expand in 2026 to more 21 agencies, and we see that each agency becoming a hub. We have less -- 40% less of expenses. And without letting go people, we have space for everybody in a time when you need to hire specialized work and no one knows better than Banco do Brasil.
We have a model that we are transferring to locations where they need services. So we have aggregated value. So 7% of the savings is a big difference. So we have to continue expanding this model in the next years. So we have to keep our presence without necessarily -- according to its region. To give an example of what we spoke before about our culture, more agile solutions, one of the examples that we have for this novel model is the credit to the worker. This product, consigned credit. This product was developed. I had told you that this private credit would be leveraging that we are going to look for a more adequate service. With this credit to the worker, this became simple -- more simple and fast. This is a simple credit with this new methodology. We can develop this line of credit in the same way we do -- we provide credit for the public sector.
We are ready to launch this product. This is something that we know how to do, the consigned credit, and consigned for the worker meets the strategy, thinking, analyzed and well analyzed and reviewed strategy. So we were ready. So the development of this new line did not take 90 days with all the necessary measures. Up to now, we have given out BRL 8.8 million credit for workers. This means that 7x more than what we had done in the history of private credit so -- in 6 months. So we have 728,000 clients. And the interesting is 15% are newer clients. The rest were already clients. So this is a high index.
What does this mean? It means that the businesses are doing the consignation. They are launching within the salary of the worker, that consignation at the time that the salary is paid. So an accounting above 85% is similar to the public sector. So that means there's a low -- very low bankruptcy index. So we have a portfolio very interesting, and we're going to look for in this year to strengthen that even more. But here, we have an example of what it's possible through a model -- an agile model and a different work model. Behind that portfolio, we have a joint work of several teams working in a collaborative manner, something that's quite new in the bank, but it gives us many results that we are already transferring to other solutions.
In 2025, to adjust guidance -- to adjust to a personal -- a physical person was 10%. We are going to always using our resilience metrics and intensive use of AI. We have to tell the client what's the more adequate credit. If the worker is going to get credit to get in depth, we have a process of consulting that is more adequate to that client. We don't want him to get into more depth. If we have a process of a credit that it's more expensive in the market or with the bank, we will guide that client what's the best way for him. And that means an accounting above 95%, very secure.
When we're talking about businesses, we're going to have this year a process of rebranding of the market. We're going to go to BB business, bringing here servicing and the relationship, something that the legal aspect demands, which is that relationship. The client or the physical person that is a partner of that business makes transactions at the digital level, but we still have conversations. We have to service, and we have a very specialized service, more than 1,673. Not here, but we have 1,673 sites, 10 servicing sites. We have 7,400 dedicated professionals for that market and 4,385 servicing sites, 85 million of the usual channel -- of the digital channel. We have a way of doing business with these people at the legal level, we have another channel.
So how do we achieve the search for that process, integrating within the navigating journey of this client with the bank, interactions that generate value for him and for his business. So we launched a recommendation of intelligence platform for the legal person, and we had more than 60 million recommendations, 60 million a month. And here, the users of that platform have evaluated really well the interactions. What's the next step to advance for all the client base with the creatorship that we have that has already been done, and to increase even more that satisfaction of these clients as a legal person.
On the other side, there's a robust team of the corporation. We see that we had a training with Cielo. Cielo is a very -- sector, very important for the client base. So with Cielo, we have adequate strategy to provide that to our clients. So in 2025, it was a year for technological development in Cielo, system integration. We are finishing that process. And our tendency is to advance more and more looking for loyalty of that client with the bank. And so we have the idea that 2025 -- the last quarter of '25 and '26, it's going to be an important signal what that relationship with the Bank of Brazil is going to be with the businesses, but we're having a complete ecosystem of business. No more segmented strategies.
When we talk about agribusiness, we are talking that Bank of Brazil is the bank of the agribusiness, will continue to be like that. Agribusiness is a portfolio very important for Bank of Brazil. We have BRL 400 billion of credit for the agribusiness -- BRL 405 billion. In a few days, it's going to be BRL 408 billion, but we are working strongly to develop that portfolio. We are their partners of the -- we are the reference bank, but we have worked on selectivity. We have worked for the agri business, for the corporation and for the physical person. It's important to highlight that we're talking about them because of the changes, but they are included in the new resilience metrics focused on controlled costs. And the '25, '26, our strategy is going to be to provide credit for corn related resources, and so that we have -- look for the revitalization and the ability of the producers to repay. So we're going to have controlled efforts, but we're going to also help our producer to renegotiate their debt with the bank and to restructure their ability to pay.
In terms of warranties, people ask a lot of questions. Yes, we also have those, a lot of warranties. We have a client base of BRL 4 billion or BRL 5 billion that came to us with a work model and the knowledge of the client for the growth of the sustainable way was his input. The guidance for 2025, around 33% reflects this selectivity and also the need to restructure the ability of the producer to give new -- to have new strategies for credit.
We understand that sustainable business generate value for the bank, but not only for the bank, for the society of this planet. That's why we are very focused on a winning strategy, ESG that we are the first bank advocating guidance for ESG strategy focused on sustainable business. We have BRL 396.5 billion. In 2030, we're going to achieve BRL 500 billion. We have the goal -- the bank goals updated at the site, but it's important to avoid deforestation of up to now almost 800,000 hectares. So we support the reforestation until 2030 at least. We are the world for the sixth consecutive time, more sustainable. We will be having a leader role in COP30. It's very important in the country so that we have a voice about this country, understand that their natural resources must be used. It's a time that the country needs to be heard regarding the need to have financial and economic security for the residents of that region.
When we look at the forest, we have a bioeconomic system that's taking place down there. So we are aware of our role as an organization that has to take the preservation of our forest to the world, but we are aware of the peoples of that region. So our commitment with the sustainable development of the bank. I'll be here if you want to talk to me, but this initial message, that's what I would like to tell you. And I want to tell you that Bank of Brazil generates value. It's ready to generate more and more value because we are guided by our values. That's what makes the difference in our business. So we thank you for your trust, and we want to tell you that we are convicted in our ability to generate results and value and much more that in 2025, we are founding the growth of the bank in sustainability. Thank you very much.
[Interpreted] Thank you, Tarci. Really, 2025 tested our resilience. And in 2026, I hope we're going to be back here to say that we passed the test. In the second quarter, we showed a detailed diagnosis regarding the credit situation. And I would like to call our CIO, Felipe Prince to go -- to talk a little more in depth about their analysis.
[Interpreted] Good morning, everyone. It's a great pleasure to be here with you for this opportunity to address our shareholders, our investors, the homes that are following us, we appreciate and your feedback to incorporate the data in our management. We are very happy to see you here. It's a very representative group here in New York. We have the opportunity again to bring the bank closer to the financial center of the world. Also the possibility this time to transmit to all our shareholders and investors, clients and our 125,000 colleagues that are watching us in Brazil, and also the opportunity to make known to everybody a little more of our organization and that we talk a little more in depth about our about our performance. So we also will be available to exchange ideas and to respond to any questions in our Q&A session.
Well, we have here an evaluation a little longer since 2019. Since 2019, during the pandemic, that's when our credit cycle expanded faster. So you see that we have an expansion of our credit portfolio. And of course, this portfolio brings risk and the risk is measured by the provision expenses. Please see that we were -- we have been working with provision expenses that were quite level. But in 2023, we have a huge -- a bigger impact. And I will show you later the portfolio of the agribusiness. Like Tarciana said here, our portfolio goes from BRL 150 million, BRL 200 million to more over BRL 400 billion in 3 years. So we take this opportunity that the agribusiness world brought.
That was very clear with the results that we see, especially since 2023. But it's normal that in this cyclical activity because the increase in expenses is based on the price of commodities that are volatile by nature and different cycles. So this is a message that we would like to transmit. The bank shows great resilience to face this cycle of low business in the agribusiness in a very robust way. And this also by absorbing, we did -- we are doing in 2025 in the volume of provisions that are attached to that follow-up. So we were -- we had been doing transactions, like I said, enable the provisions that is consistent with the portfolio volume. But obviously, in 2025, that risk that it goes over that point where we say that is great for the management of the risk of the return of our activity. So that's why we're talking here about all the measures that are going to be adopted so that we can bring together -- so we can bring again the risk into our average. That is around 2.7% or 3%.
As you can see, we are estimating that in 2020 (sic) [ 2025 ], the risk is higher. It's between 4.7% and 5%, which is higher than the average net level. But on the other way, it strengthens the resilience that this organization has to face this cyclic periods. Here, you can see in this graphic, in this chart of that risk and the provision expenses. The total of that amount is connected to agribusiness expenses. We have a follow-up of those expenses, but it's normal that during that period, we have the wholesale system, the corporations have a higher volatility. The physical persons like you can see, it's proportional to the growth of our portfolio.
Tarciana showed you our focus in the adequation of that portfolio and the growth of the physical person market so that we have that balance between the -- balance of the portfolio. And that's where, indeed, we have the higher increase of the expenses. And if we see, if we compare -- if we take out BRL 6 billion of the first -- of the second quarter of 2025, we would have a volume of provision similar to the previous quarters, around BRL 10 billion, and agribusiness also very close to the previous quarters, around BRL 2 billion. So where is the credit risk hurting us? It's in the agribusiness portfolio. All the portfolios are in the process of selectivity. We are working strongly on the implementation of more advanced strategies to management credit risk so that we have a higher skilled qualification, but we have to manage the portfolio so that we can deliver again the results that all of us here in this room wish for.
Then the question may come up. What happened that you didn't see that the risk was beyond the risk that we had projected? And here, we see -- we are bringing you the events that led to that, that they caused an increase in the risk that we were faced with. So we have the pandemic and the boom of the commodities. This is clear in the chart. Our Bank of Brazil took advantage of that opportunity. So we doubled -- we more than doubled our portfolio of the credit for the agribusiness. So it shows that the commercial force of the bank is really strong. So we are -- it shows that we are ready to take the opportunities that are giving to us. But with this volume, we lose market share. Why does this happen? Because likewise, in the same manner that we take advantage of the opportunities, newcomers also take advantage of the opportunities. This is good. We like competition. This makes us better. We will service our clients better. But on the other hand, the Brazilian producer is more in danger. So this explains the bankruptcy.
In 2022, the curve -- margin curve default. So there is a leveling of the margin for the farmer. And we also faced some extreme climate events that led the capacity of the producers to diminish, especially after the floods in Rio Grande do Sul and the other points of Brazil. The crops diminished due to climate events, all that connected to a scenario of an increase in the interest rates. The financial expenditure in the field is elevated and the cash flow of the rural farmer suffers. You may ask yourselves, but what did the bank not see this inflection, the curve of the interest rate because the operations in agribusiness have something specific. They are disbursed in once only, and they are also paid once. These operations are not amortized. They have a limit in time, especially in terms of expenditure. From 2024, '25 in terms of operations, our projections were for 9% -- 25% a year.
We made the decision to finance the farmers knowing that during the cultivation, they would have to face a different level of -- and our Central Bank changed the curve from low with the application of the Selic rate. So from there, we had the financial impact. There were resources on the fields for planting, they had those resources, those assets in the hands -- we had those resources in the hands of our clients. The ones that have more leverage and greater profit margin started part of them to use movements that we had not noticed until then in function of the way we operated with the new plans.
There was no request for judicial recovery by those farmers. It was not a practice that was expected, but it was adopted and accepted by our courts that led to a situation where we were faced with these type of requests and that led to more default situations. 70% of clients that were in a situation of default were not in default before the bank, which demonstrates that they adopted a new behavior given the new scenario, but partly also because of measures such as judicial recovery, which we don't think is the healthier one or bring sustainability to the crops -- to the crop fields. We are prepared to act in this movement.
We revisited our credit metrics and our portfolio in agribusiness, and we reduced our appetite so that we could see these land holders with good perspectives. And at the same time, we reinforced our collection system so that we were seen as more mature, incisive and would act in a different manner with our clients activating processes of collection and execution of payment of debts with the migration -- gradual migration of the portfolio and with warranties, some of them by sale -- trust sale and Alianza Fiduciaria. And this we're able to recover the debts of our clients. We hope that these clients regular have a recovery in their situation and help the growth of agribusiness in our country.
In addition to the specific question regarding agribusiness, we have a cross-sell process. And this is a very profitable system on which we work very hard. But when the risk increases that type of activity, naturally, that brings a risk with it in function of sell that is cross-selling that we use with our clients. So default in the agribusiness is accompanied with default in our portfolio for individuals because the farmers make loans to buy vehicles. They have credit cards with us. And when they are in difficulties, this default situation is not limited to agribusiness products, but it also has an impact in other portfolios. The good news is that even so the impact is small, so it is well administered or managed even with a greater credit crisis in the recent times. 6% of the portfolio comes from individuals. They are represent 29% of default in payments by individuals. So that's the big framework.
These are the good news that we are bringing to you today this morning. So you have an understanding of what is happening in the space of that recovery that we are accelerating. In function of this risk scenario, we promoted and we continue to promote adjustments to correct that path and to make so that these portfolios increase their net profit. The drive is our rentability in each business is increased. And we make sure that it is compatible with the risk that we are assuming. We corroborate the previsibility or improvisibility. We had estimates -- aggressive estimates about how nonpayment in agribusiness would have an impact in our business. But the way the portfolio is positioned, ultimately, in terms of risk models, it demonstrates that it would not be so acute. President Tarciana -- our CEO, Tarciana talked about that. You can see a seasonability in October -- from October to March.
When we plan our budget, we did not have that seasonability for us to understand that we would have a very difficult year, but none of our projections was able to identify the volume of noncompliance in the -- that were supposed to happen in April. And the level of noncompliance or default was higher than what we've seen before, even in more acute moments. And we chose in the third quarter in readaptation or remodelation of guidance so that we could bring our best estimates -- estimations for the end of 2025. So see that the concentration of the maturities has passed. Now what we have are the measures we are implementing and that you will know more about when our Vice President, Bittencourt will talk about it to tackle that noncompliance or default in the agribusiness.
And this is a statement of our portfolio. So you can see that in spite of the present scenario in agribusiness, the scenario is protected, hedged to face that reality. So today, across our portfolio, we have different models that are incorporated and expected loss by stage. We incorporate provisions not just in function of delay in the accounting -- the previous accounting, but also in function of the risks that we see for the future, this expected loss. That gives us a very concentrated portfolio. that ratifies the quality of our portfolio, but also the stage of attention, Stage 2 and mainly Stage 3 where there was a deterioration of the clients. We are very provisioned, and our robustness of our balance sheet will give us strength to go on with this recovery that we are showing today.
How to do that? When there is a highly elevated risk, there are two options to drastically reduce the risk or increase the volume of granting of credit, of lending. If you adopt those strategies in an isolated form or nonconnected form, you can lose business by reducing excessively the risk or you can bring more risk inside, increasing excessively the disbursements. We are very much interested in a balance in our portfolio to support our recovery. And how are we going to go about that? But with the contention of the risk, either being more selective in the revisiting the new businesses or the recovery of the credit that suffered with noncompliance. That way, we will have a reduction in the risk, and the new crop seasons and the values in the numbers in the third quarter will reinforce that strategy.
We will going to reduce the risk in our portfolio. But at the same time, we should not weigh something that is a strength for us, which is the generation of receipts that we should not lose traction in that process with reduced risks. We can be more selective and we can conduct business. And we can bring again our mantra of origination, which is the resiliency resilience matrix that is reinforced by artificial intelligence. There are several variables, 105 million macro and macroeconomic variables, regionalized variables taking into account the specificities of each economy where we act. And we also reflect the reality of our clients and a vision of score. The score can bring positive or negative results or data. But we have in that process, more information about our clients through the open files. All this framework of data is consolidated.
And with it, our clients today across the whole portfolio are classified in four quadrants where we define strategic clients where we increase the granting of credit, clients that we continue to assist, and clients that need credit solution. And we are present to offer to those clients the best products so they can have a better capability to pay and also clients that -- whose payment capacity deteriorated. And we put into action our collection processes. At the same time, we manage those portfolios -- regarding those portfolios. With that, we believe that the origination process and demonstrated by the amount of the results of the crops, the good news is that the disbursements will still continue to exist. We continue with the commercial contraction. And with those curves, with decreasing of the risk and the origination up, we -- they will overcome the situation of nonpayment of default that we experience today, and there will be more liquidity. And with less risk, we will have a bigger margin -- net margin, and that will improve our results.
How can that be put into practice? We have an increase in disbursements focused on the Alianza Fiduciaria Trust sales. I exchange my warranty by a warranty that is more robust. We have a public of foreign investors. You can see that we can compare the process of judicial recovery when -- and processes that yes, first, mortgage sale is considered extra normal procedure. What have we been doing? We have used the resilience matrix to exchange in a gradual way these guarantees in our portfolio. Clients in these quadrants operate with this Alianza Fiduciaria the sales. And the other clients in a gradual way, we will allocate them to Fiduciaria Alianza -- that is fiduciary sale. And so we will tackle that process in a few years.
So that's the end of my presentation. And now I can entertain the questions. Thank you very much for being present and let's struggle for that recovery. Thank you very much.
[Interpreted] Thank you, Prince. This diagnosis is important. It shows how we can tackle this scenario with a lot of discipline and also making the necessary adjustments for the landing in 2025. We have regulatory and government regulations that are important that can influence this process with the agribusiness portfolio.
I would like to invite our Vice President of Agribusiness and Family Farming, Gilson Bittencourt.
2. Question Answer
[Interpreted] This is our third management year. You had -- you are responsible for this agro business. Can you share with us what was your first impressions and a little bit of the mandate that Tarciana has given you?
[Interpreted] Good morning, everyone. I have 35 years experience in rural credit. I had -- I worked with the agricultural plan, statement plans. And in the last 15 years of the 24, I was a participant in that plan, the national agriculture plan, and also in generations connected recovery of those portfolio of the agro business. So I have this experience with these financial organizations, working with different financial institutions. So I have this experience of this agro business and the moment we are experiencing.
So Bank of Brazil in this last 35 to 40 days is a new world is bringing a lot of new elements, but it's important to highlight that I was hired to contribute to the recovery and advancement of the rural credit, the farmers' credit process that were already going on, and I was going to contribute and help with that issue. So Tarciana told me come and help in the recovery of these default credits and help in the building of a more sustainable and resilient agricultural business -- agro business portfolio.
[Interpreted] A very interesting issue is VP 1314 (sic) [ MP 1314 ] that has been published, BRL 12 billion were made available to the farmers. Can you talk a little bit about the indirect impact of that BP? How much of that amount of BRL 2 billion that the PT was going to use? Can you give us an idea of that impact of the 1314?
[Interpreted] Well, MP 1314 brings two possibility. People are highlighting more the BRL 12 billion, but I'm going to highlight the second part of MP, and then I'll go back to the BRL 12 billion. MP provides that the financial institution can extend the credit operations for up to 9 years and credit operations that are still within the farmer credits were converted to other credit operations. And with that, you can bring these operations into default, but recovering their payment plans so that they can continue advancing in the next years and keep their activities.
There's no limit for that line of credit. It's a line of credit that the financial institutions are going to use with their own resources. Like the interests are free, but within a dynamic of the rural or farmer credit, and that ability to distribute income up to 9 years, but they have up to 9 years. So they will going to start paying in the second year. But in the first year, we are already charging taxes. So in the first year, we already are going to be getting paid that credit. So within that, the bank has about BRL 20 million of default and between BRL 50 billion to BRL 57 billion of operations that have been extended. Not all those extended credit limit periods to pay are going to generate default.
So there's debt values amount more than BRL 13 billion. So we can operate within the whole country, especially in the regions where the payment default is related to cashing issues. So we are focused. Those small producers have between 6% to 12%. Those amounts are affecting the financial market. And is focused basically in producers that are located in municipality that have the losses due to climate changes. So the expectation is that in next few days, there's going to be laws -- new laws from the Monetary National Council. And now we have the MBDS that's going to address 100,000 municipalities and the municipalities who had that losses.
Our participation in the agro business is around 50%, it varies. So we will be in -- we have 40% to 50% chance of those BRL 12 billion being channeled to Banco do Brasil. So we are focused on the first line of farmers that's going to be starting to operate next week. We're still waiting for the regulations of BNDES. We believe that in the next 2 weeks, we're going to be operating. And the most important issues that farmers -- like Prince said, a good part of those farmers that are in payment default do not have a history of defaulting, but they had issues -- cash issues because like Prince has said, the expectation is that with ability to distribute better the income, we will bring those farmers to back to normal. And so we will be continue operating with the other lines of credit.
[Interpreted] Okay, Bittencourt. I'm going to talk about the agricultural plan, the plan of Safra. There's a plan of BRL 280 billion for '25, '26. How are you seeing the disbursements according to what you have advocated for?
[Interpreted] Something that I forgot, I thought -- I think that I should have mentioned it before. We expect to recover the payment default with that -- we expect to have a gain -- capital gain, including the credit that we expect. We're going to have an impact in the possibility of recovering also in our assets. So we're going to continue loaning more, ever more.
So regarding our performance, we have all these mechanisms that we created to advance in our portfolio. In these 2.5 first months, we have BRL 45 point billion for the rural sector, BRL 39.2 billion in rural credit. So in spite of the problem that we're having within our portfolio, we have more than 96.5% of the farmers paying and those farmers are financed. Of course, we have -- we are being more carefully when providing these credits, so to avoid payment default. So we are loaning because agro business is crucial in Brazil, both for internal and external market and is an engine of the economy. So the granting of credit are doing well.
In some cases, I think it's important to highlight the costs especially for smaller farmers. We see a decrease in the investment operations. It's not only something that Banco do Brasil sees. The whole market -- financial market reduced or decreased their investment operations. Banks are being more careful, of course, but also because farmers, and that's a positive side of the process, are looking for a balance of their accounting, even though that are in payment default in a way that the cash flow is rebalanced.
[Interpreted] Bittencourt said that -- like him said, we had in 2022, an increase in the credit granting because our interest rate was low and the farmers leverage more than they could. And then the Selic rate disturbed the cash flow. In this time of adjustment on behalf of the -- on the side of the farmers, this Selic rate is important so that we can advance again in the increase of the productivity and production in Brazil.
[Interpreted] I have another question. Regarding the harvest of the Plan Safra, CONAB, especially corn and soy. Looking at the data, how can we accompany the performance of that harvest?
[Interpreted] This year, '24, '25 harvest has been a very positive harvest. The biggest harvest that we had in the last few years in the history of Brazil. And this new one appointed by CONAB in '25, '26 shows a record. This demonstrates these issues related to payment default, they are not -- don't apply to all the agro businesses. The agro businesses produces is advancing in production, but there's these bubbles that have been identified both by climate issues and also because some farmers have these issues with their cash flow. So the expectation for the next harvest is positive. It's going to be a harvest that is being created in view of a better analysis in the future.
The Selic rate is high. So our expectation is that the interest rate scenario will continue being a positive scenario, which is good for the farmer. And this will show that the bank is interested in continuing the financing the agro businesses and to contributing to the sector that is crucial for our economy and to feed a big part of the world with the food they produce.
[Interpreted] Farmers that do not accompany this market sector, what are the main issues to accompany that sector?
[Interpreted] I think the bank has advanced in a very significant and important manner accompanying their income. Bank is looking at the development as a whole of the market -- as a market whole so that we can look at the situation, not only at the moment the payment, but during the whole life operation -- credit life operation. The production data today are available through the government official data. CONAB is the main actor. The production cost that we had in the last 2 years, the computer bought the products when the dollar interest exchange rate was higher and then when it sold was lower. So we see that we will see a recovery of the income of -- income recovery of the farmer so that they have a better cash flow and we have a better expectation of the rentability.
So I think that's important to accompany the process during the whole life of operation life. And we also are looking to advance in innovations, not only when we grant credit, but also in the way that we are used to, but looking for other type of innovations, observing what the market has been doing. So I think that this is some gains that we have to be proud of.
Thank you very much for the issues that you brought, it helped us a lot. Thank you.
[Interpreted] Thank you, Thiago. The central agro business, not only for the bank, but for the Brazilian economy is interesting to understand this better, this dynamic. Thank you. We're going to have a pause. We'll come back in 10 minutes for coffee break.
[Break]
[Interpreted] We are back now. Thank you. Our next panel will discuss the main fronts for action in supply chains in terms of wholesale and government. We are going to talk also about sustainable business. I call vice presidents, Francisco Lassalvia and Ricardo Sasseron for another panel moderated by Thiago Batista.
[Interpreted] So we are going to start this new panel. We are going to talk about the value supply that the Bank of Brazil is enhancing in terms of player, how can you use the value chain in customer relations.
[Interpreted] Good morning, everyone. Firstly, I think that it is important to make it clear that Banco do Brasil is a bank that is the main shareholder for the federal government, and he is the main public sector bank as well in Brazil. We have many businesses with the Brazilian government, and there is a whole value chain that we carry out. We transfer resources to the federal and state government, and we attend to half of the public employees. We collect payments and we manage funds and resources funds and social security funds. There's a series of businesses generated from the public sector in Brazil.
We have a pillar of about 100,000 employees that work for municipalities and for the legislative and other sectors of the government. We have a value chain payments for the public employees, consignated loans with operations, with public employees. We manage their payroll and so on and so forth. So this is -- we have credit operations for the public sector with municipalities and states that represents a significant portfolio for this -- for us and default is 0 because we have a guarantee from the treasury. So these are very significant operations and firm operations.
We have the capability of guide the economy at the municipal and state level. We carry out these operations, and our relationship with the states and municipalities help us boost that business. For instance, there was a very interesting case that we have projections of receivables from companies that provide services for the municipalities. And when we carry out this operation, we bring our capability, our way to negotiate and generate other business with these companies that are suppliers to the municipalities and states. All this value chain helps us support the public sector to make their transfers and have launched new public policies and so forth. So this value chain is very interesting for the bank and supports the government.
[Interpreted] Still on that topic of value chains. In the wholesale, what about your competitors? The return in the wholesale business, how do you measure it? How are things?
[Interpreted] Good morning, Thiago. Good morning, everyone. Great to be with you here. This is a very important day. We explain more in the Q&A section. But the value chain question, Gilson also mentioned something about it because we are presenting solutions adapted to each client. When we talk about value chain, we talk about servicing the client back to back, and we give attention to all the clients no matter their size to diminish the risk to the bank. If you compare semester to semester, we had approximately 8,000 agreements in the wholesale sector and now 13x more. They are agreements that go beyond the value chain. It's the payroll and payments to suppliers. And as Gilson said, we have agreements amounting to billions of dollars so that we channel funds to the smallholder farmers.
We have $70 billion in assets. And we have to support the results. I don't mean that the -- our profits have to be 30% or 40% linked to those smallholder farmers, but we have to measure the generation of results. We are the Banco do Brasil of agribusiness. We have more than 2,000 agreements with companies that use the value chain. Our portfolio grew more than 50%, 30% in results. We are also a bank operating externally. So another thing that I mentioned is that these results, these profits are associated to risks that are better understood.
[Interpreted] Perfect. A question to both of you about ESG. ESG is something that the Banco do Brasil that it gets a lot of attention. We have the ESG guidance. Can you talk about that in two or three points? What opportunities do you see in decarbonization and expansion of ESG and the returns in the bank by adhering to ESG?
[Interpreted] Firstly, I always like to remind people that the Bank of Brazil was elected as the most sustainable bank in the world. We have great pride in that. And it's an acknowledgment of what we have been doing in terms of ESG. BRL 1.300 billion, that's the amount that we generate, and this is all linked to ESG. This is a point that we always stress. We have almost BRL 400 billion of credits as ESG credits divided in several areas. In agribusiness, BRL 170 billion in the portfolio. Low carbon and other fronts, we have EUR 20 billion financed in renewable energy. And as was mentioned in the beginning, 860,000 hectares of reserved areas until by 2030, reach 2 million hectares with 1.5 million of recovery of degraded areas. This is all part of our ESG portfolio. In renewable energy, we want to reach BRL 30 billion by 2020.
About carbon credits, that is very important and interesting. It has grown in Brazil. We have a rating that increased. We have a voluntary credit and our presence is very strong in the regulated credits. We have 32 projects of RED plus biogas and other fronts. And what we want to do, our goal in the carbon market is to participate in the generation and implementation of projects and commercialization of carbon in the carbon market. And we have ESG advisory that serve states and municipalities. And we are doing an inventory of carbon emissions, and we work in that chain in all fronts, commercialization and so forth, showing the companies the advantage of them to compensate the emission of greenhouse gases. So that will help land preservation and so forth.
So we will use all those advantages for the commercialization of carbon. Brazil is going to improve that system of carbon credits. And we want to have a strong presence in that market.
[Interpreted] Just to complement Sasseron, Scope 3 is a challenge -- a big challenge. And when we talk about doing an inventory or a list of our clients, we will determine the main clients that represent generation of credit and the clients that will have difficulty in that compensation. Regarding big business in the agribusiness or the smallholders when you link that opportunity to understand who the client is and include the client in inventory and also to capture more funds from multilateral funds and funds from abroad, so that has to be adapted to the needs. So we raise money from foreign countries.
And if we adopt also other innovations in our matrix, we will have big opportunities. We've been doing this for more than 2 years. In terms of individuals, we have BRL 10 billion in ESG funds, either individuals or private organizations. When we add that to the value chain, we use the resources and we leverage that in terms of Scope 3.
[Interpreted] Sasseron, you talked about renewable energy, artificial intelligence has to do with the renewable energy. How is the bank positioned to expand or fund this clean energy in Brazil with a potential of consumption that is helped by artificial intelligence?
[Interpreted] Firstly, the energy matrix grid is the cleanest, one of the cleanest in the world. It is important that we have that sense of proud about that. In terms of this energy, we have credit operations from the individual client that wants to install solar panels in their house. In the Brazilian market, that is being done. We have funding for big companies, wind farms, and all the energy that we consume in Banco do Brasil comes from renewable energy. We have solar plants in Brazil. We also lend to the public sector in like municipalities. And we always use energy effectiveness. We are doing this work today.
Regarding artificial intelligence and the data centers, our goal is to continue with the granting of these loans. We have the goal of BRL 30 billion by 2030. And there's also a consortium in the northeast of the country that generated BRL 130 billion. One of the pillars of this call to investment was to create or implement data centers in the northeast of Brazil. This will grow the renewable energy sector. And there's several launchings of these new projects.
[Interpreted] The market is clearly expanding in the last few years. We're seeing a very important focus. They want to attract high-income markets. How does Bank of Brazil -- how has it been acting in that respect? And how do you see your success in that project?
[Interpreted] Good question. I think that we have to take a step back to explain that formatting of high income. We created the private sector and high income 20 years ago in the bank. Since we created that, we have been expanding, and we are within that value chain. We follow the client through the inorganic process, and then we acquire an external client. When we look at the high income segment, sometimes we decide to service those clients within the bigger agro business clients because they have great investments. And this also -- we also can control their active operations and payment default.
When we look at the bank income, we have 29 offices. No other bank in Brazil have that structure. And 12 of those are geared to the agro businesses and the rest towards the great investments in the country. So looking at the bank structure and its ramification within a regional structure, we have the closest and most efficient structure. The income -- high income of clients is the highest in the market. So we think that this success that is because the client believes in our work. So the service of asset satisfaction are the highest. So when the client trust the bank, we have the highest income. So when we compare the bank, we have grown the double more than the market, a little more in the last year.
When we look at the portfolio of the agro businesses, also it's aligned with the market growth, more than BRL 7 million. So the bank has been also awarded the highest sustainable technology. The bank -- the highest -- this is due to the training in the bank. The bank also had earned a prize to support to women. So the results of that satisfaction surveys are the result of what we have been doing in high-income sector. We know that there's a lot of competition. But in the last few years, we have been perfecting that work. And that growth compared to the rest of the market gives us the answer and gives us that we have -- to have what we have. So we are trying to develop a bank closest to the client. So this is a result of what we have been implementing and which is to service the client in a close way.
[Interpreted] We have -- they are giving us signals at the panel. Do you have a final message?
[Interpreted] Looking at ESG aspect, we have been performing at a high level in the economy, exploring -- we started at Amazon biomass, and we are expanding to other biomass, and this is very important because you're helping with the preservation of the environment. But at the same time, we're supporting the populations of that region to develop products, to develop the value chain linked to the products that need to be produced. We have implemented bank of economy in Pará and in Amazonas, in Bahia and now in Mato Grosso to explore all those biomass and to generate value with the products of the region that sustain the population. So we have a very strong relationship with them.
Yesterday, coincidentally, we signed a technical agreement with the government of Pará in New York, which is a state that is going to host COP30, and it's very significant to show this collaboration.
[Interpreted] I think that when you're talking about resilience in the construction of better results for the bank, I know that you talked about the models and the businesses and now the next steps are the value chain. So this is building construction not in the short term, but a long term sustainable and in accordance with the values of the country.
[Interpreted] Thank you very much, everyone.
[Interpreted] Hello, everybody. Before we give the floor to our next guest, I'm going to say something regarding our -- adding to our strategy.
[Interpreted] So regarding the physical, the client, the persons, it's very important. We have -- our goal is to grow more and more the individual. I think that in our strategy, especially in the high-income level, we have a portfolio more adequate to the clients. We will launch CASA still, which is a model of co-creation with the clients, a model that was created hurting -- upon hurting the clients. And it's geared to the clients according to their needs and the causes that holds there. So we have the prerogative that we are the bank for the public employees that gives us a big advantage, but we want more.
When we are talking about rebranding the business sector, we know that we have a niche that's very important that we have to bring to the bank, which are the business owners of the small and medium businesses. So the relationship of the -- with the corporations is within the Bank of Brazil, but not also with the individuals. So when we focus on the high-income sector, we have products and services geared to the needs of the -- follow up the environment where the client needs. So we are geared for the future, the future that we're talking about within -- in this week. We're going to have a rebranding of our Estilo style. We're going to have new developments in the style segment and private segment. And we are going to be focused on the high income and also agribusiness.
When agro business client has an individual -- is an individual client, we have to work together with both. So we're having some news are coming in the high-income segment in the next few months. In the fourth quarter, I hope that we're going to show you in a more structured way that strategy that's going to be leveraged in 2026. The issue is in 2025, we're going to work in the portfolio with individuals and in 2026 in the high-income sector. Thank you.
[Interpreted] So we're talking about the future that's around the corner. I'm going to call about the agribusiness strategy that has promoted a big change with a lot more productivity. Our CIO, Marisa Reghini.
[Interpreted] Good morning, everyone. It's a great -- it's an honor to be here with you today to tell you a little bit about how our culture is emerging within Bank of Brazil. Before I talk how this new culture is happening, I want to bring some data about our technology. We have one of the highest data centers in the Southern Hemisphere. We process currently about 15 billion of transactions a day. Every time the client access the app, logs in and print a statement, those are the transactions. In the last 10 years, we invested over BRL 14 billion in our technological hub, our solutions, in training, in the technology area. Also in cybersecurity area, we have advanced -- we have increased the investment 70%. And these last few years, we also increased 70% our workers, our employees, bringing new people in Branco do Brasil through candidacy. All these 15 billion transactions daily that I mentioned that our clients use in our digital channels. So today, 94% of all that -- our clients use are within the bank channels by WhatsApp and Internet.
In the last 4 years, we have been investing in the cultural transformation of Bank of Brazil, bringing this new culture that aims to bring closer the business and technology teams so that we can deliver faster, the best solution for our clients in the channel that he wishes to log in and the moment he wishes to use. That change is not that simple because it needs -- we need to talk about and change some attitudes within the bank, especially regarding behaviors and mentalities, mindset. We are now an agile business. Every team is independent. They can directly interact with the client because they know the subject. This high management of the team makes that we have delivered faster and more continually, allowing a faster feedback of the clients. This means that we can correct any solution that we are trying to develop.
Now I'm going to talk a little bit about how we are doing all of this. I'm going to show you three elements. The first one is that what we call business units. What are business units? Squads, multidisciplinary squads within these teams, they have all the necessary knowledge to deliver those solutions to the client. We no longer have something that we had before. There was a project that we had beginning, middle and end of the solution. The main difference now is that every squad has a defined scope and then has the necessary abilities. Let me give you an example. Before the business areas, they were -- defined the processes and then they ended in or delivered to the technology area. Now within this squads, we have the business analysts, the technology analysts, the cybersecurity IT. So they developed all these competencies. So it's various business units.
Now there's a very important difference. Every squad that adds up to this higher unit, we have the double leadership. Why it's important? Because we have the technology and the business leadership because with the leadership, we can start deciding or evaluating the best decision, if it's more -- you're going to be more focused on the business or if that business is going to be developed. So that brought us a solution, a very important solution within the bank.
So the second element is the COE. The COE in a big business, especially in Banco do Brasil, we need to have some disciplines in a very specialized way. Here, you see some security. This is a big concern of any CEO of any business regarding cyber attacks to ensure security for our clients when they're logging in or sending wiring money.
Like Tarciana said, this is a very important reality in the world and in Banco do Brasil. These are examples of disciplines that we need to have professional -- high-specialized professionals that study the market, study the best solutions, deliver the best standards for the teams to develop. That specialized centers that are specialized in subject, they act within the business units of the -- this makes that the business units will have more time to think about the business solutions using specialized knowledge of those colleagues to act in the area that they know better, in this example -- in my examples, AI and security.
The other example are the platforms. I put in a design down there because they are permeating all the elements of this model or the platforms. There are all those businesses or data systems that I may develop one time and an escalation for the other bank processes. So I'm going to quote mobile example again. Mobile, within our mobile, the client can be serviced within all the mobile services. Imagine if for each business unit that develops a solution, goes into the mobile. Imagine if any -- each business unit had to develop a solution for the mobile. So we would not be so efficient. So that platform gives us this ability. So as it happens at the mobile level, we have a team that develops all the mobile platform, the core of our app makes available to the other team to develop only that business unit, for example. So that helps us to develop more efficiency, to be more robust and develops -- accelerates our movement.
So Tarciana [indiscernible] about our private payroll loan. That solution has been developed in this new model. I brought some numbers here so that we can compare. The day we have the resolution in Brazil -- we had to wait for the resolution to approve that the bank started the development. The day the resolution was approved, it was the day that we delivered to the first client to be able to hire 37 days past because teams were working together and no [ scares ], as I said, work to have that solution. If we did not have this new model, obviously, we were going to take -- it was going to take 90 to 120 days to make that delivery. So that's a big, huge difference for us.
Here, there are some other examples of businesses that are already included in this model. So working capital and receivables, we delivered 80 new solutions until now. So the fact that they are together allows us to deliver more -- make us a more constant delivery because we receive the feedback almost instantly that tells us what's going -- if something is wrong. That allows us to working capital and receivables of BRL 19.8 billion. The other is the AI that goes within our analytic platform.
Let's say, a client goes into agency, a Bank of Brazil, and it's something that's not so a matter of fact. So our colleague had to go into the system and had to understand all the system rules, how he has to achieve what the client wants. All of that was going to take long. To that AI platform, we have included AI within that system of instructions. So when the client goes to the agents and if the employee needs to check some information, he goes into a set where the response -- he receives the response directly and automatically, what you're asking, you have to go to such and such system. All of that made that we profit -- we earned 40,000 productivity hours. Because in the old way, we had to consult the instructions to achieve the solution suitable for the clients.
More important numbers, we had a decrease of 74% in the solutions development cycle time. So that process gave us more time to market to deliver solutions for the clients. All of this according -- our understanding is that this change of culture and model -- operational model brings us growth within this year. And in view of those numbers, we made a decision. This is a chart showing that in October '23, we started to talk about model. In May of '24, we had 2,000 people. In May of '25, we have 3,400 people. Since we learned this new model and has brought so many positive results, and it's a catalyzer of these events, we decided to advance the delivery time.
So the whole movement was going to end in 2028, beginning 2029. We anticipated so that it will finish by December of 2026. It means that in December of 2026, we'll have 10,000 employees representing the whole Brazil headquarters, all the areas, technology, business security in this new model that I explained to you. And we also have in 2026, 98 elements of those that I spoke about, 15 excellence centers in these disciplines, 41 platform lines and 41 business lines. The number is similar, the platform and business precisely because the platform lines deliver that scalability, allows us to make more business -- to have more business in the business lines so that the platforms are permeating all those lines. Like I said, this is our new way of working, it's present. Every new day, we are becoming better and learning and the charts like you saw, it's growing. Thank you.
Thank you, Marisa. If with 3,000 colleagues in our nimble model, imagine how it will be when we attain 10,000. And talking about drivers of results, I want to call our CFO, Geovanne Tobias. Thank you.
Good morning, everyone. Ladies and gentlemen, we are reaching the end of our session of Brazil Investors Day -- Banco do Brasil Investors Day here in New York. I would like to rehash all the information that was already given. This was the most challenging year for Banco do Brasil, a year that is testing our resilience. But what gives us pride is that with all our employees and strategies that we worked out, we have faced this moment and impact but at the same time, delivering consistent results and demonstrating the strength of Banco do Brasil. What I would like to highlight here is how Banco do Brasil today has shown a capacity of results change and its success.
We announced a revised outlook. And looking at our gross financial results, even in an environment of interest rates that is higher and increased risks, we have liabilities in the amount of more than BRL 400 million. We managed to reinforce our margin with the clients. You can see in the chart in 2025, BRL 42.6 billion. This growth is based on the growth of our credit portfolio, especially among our individual clients within a more selective context, as Prince said, within what we call resilience metrics. We are very cautious along the whole process to ensure that when we make contracts, we cover the higher risks and ensure higher returns.
Our performance within the year, we hope to deliver basically a gross financial margin really in comparison to '24. The interest in '24 were lower. The selling rate was about the same, but with the structure of liabilities and the assets that we had, there was a recapitalization process, but the growth of our portfolio and the indicators show an investment -- a higher investment in the individuals lending.
And my colleagues talked about the consignated loans in comparison with Santander, we are the 2 big players, and the bank is also among this specific product. This will allow us to increase our share in the portfolio of individuals. We see positive reactions. We see [ 4.6 ] and this margin with the clients throughout the year, we will see a significant improvement as far as our profitability. Our capacity of resilience is to be highlighted, but also we had a resumption in our growth towards 2026.
Banco do Brasil has shown that it is a machine that generates business. When we have this nimble model, we can expect more generation of businesses, but it is linked to our diversification of receipts of revenues. We are -- we have 125,000 employees. We have shares in corporations. We have some income that was brought by our affiliates.
In terms of the agro business, we saw higher resilience. We -- Seguridade leader, BB Consortium that deals with a high rate of interest. Our clients that way can realize their dreams of consumption. So this consortium represents a not so common product here in the United States, but it is very common in Brazil.
In our asset management, we made partnerships with private wealth managers with Vale and BNDES and other entities. We partner for businesses for an increase in the profits of Banco do Brasil in addition to the current businesses. The means of payment is shown there, food vouchers and food vouchers. We also have a credit card bandeira Elo. So this as far as our equity income and other capital share also shown in our Bank of Investments branch of activities. We also act internationally. We have the President of Bank of Brasil Americas and the Bank of Patagonia. And our aim is to be closer in proximity with our clients wherever the client is.
BBTS is also a company that is probably invisible to you, but has been crucial in the expansion of the digital business in Brazil and also in the enhancement of our efficiency. It has helped us go forward in the digital technology.
The conglomerate of Bank of Brazil goes beyond banking activities. We delivered value to our shareholders. And there's the profits -- accounting profits. The level of our rentability or profitability increased considerably. We are sure and we have to guarantee that the generation of those businesses, our focus in selectivity, inclusion of individuals and the selection of other companies is going to contribute to the delivery of those results. You can look at the chart. The businesses originating from those companies reached BRL [ 12 6 ] billion. We cannot associate the action of Banco do Brasil without the contribution of those other companies to resume this level of growth from 2026 and past this troubled period with the rural portfolio. We have to look at our capital basis, our equity basis.
We decided to reduce our payout. We have a principal of 10.97%. We believe that 11% will be ideal to support this growth in a sustainable way going forward. And we have contracts for next year for -- to reduce that basis. We acted prudentially adjusting our payouts. The bank today is among the Brazilian banks that shows more attractive dividends than our peers. But we are confident that we will manage to go through this moment with this equity basis. And we have described several practices and President -- CEO talked about the individuals portfolio and also the provisional measure 13, 14 and also the consignated credit, public/private sector. And along with the credit cards will allow us to resume the profitability in comparison to last year. This is what I wanted to highlight as a summary.
And I invite all my peers, all the executives in the Banco do Brasil that -- saying that in Banco do Brasil, we believe in the resilience and in the resumption.
[Foreign Language]
Now we go on to the Q&A session.
[Interpreted] Thank you, Geovanne. So we'll start our question-and-answer, Q&A session. [Operator Instructions]
[Interpreted] Mario Pierry, Bank of America. I want to talk a little more about the societary participation. Geovanne talked about that. The bank has been intensifying, increasing. They have all the businesses. They have 60% BB Security. You were talking later about capital. So I want to ask you, how do you see the monetizing possibility of those societal participations. If the bank needs to increase its capital, are they -- do they need to sell? We see Bank Patagonia out of Brazil, which is outside of Brazil. Do you think that in the future, you're going to have to sell something?
And also BB Security participation is 66%. Do you -- are you thinking in decreasing that participation? How do you see the renegotiation of the contract with BB Security?
[Interpreted] Thank you, Mario, for the question. The best way to reinforce our capital base is with increasing profit. So our main focus is to regain our rentability so that we can sustain the capital that we consider optimal and to finance the growth of our business. So those participations, no doubt, they are like an insurance policy. In the case we need, we can not within an exit of the business, quite the contrary, but it's because of this diversification, we have the resilience to face the aggravation of the farmer risk.
So we have a full -- we are fully aware that the first option is -- to have the -- goes towards our interest. Our focus is our client. If there are other services that our conglomerate BB business allow us to offer, we'll go for it. So Tarciana talked about the payroll that we have with the public sector that we earned. We have a power force between fight with those different sectors. We have to loan to the private sector and the public sector. So we are disputing with a lot of prayers of food vouchers.
So what I would say is that any participation sale of the bank has to be authorized by the -- at the shareholders' meeting. We also know that possibly there's a monetization if it's necessary. Yes, it's possible. But are we looking at that in the short term? No. Patagonia has a rationalization strategy. We want to be where our clients are. We know that in 2024, Patagonia had a positive result in the market. We are now receiving more negative impact given the conditions -- the current conditions in Argentina. But we know that they are an important partner in -- within the -- with the trade balance.
We would like to add another point regarding to that. But summarizing in terms of capital, the organic generation of capital is the most important thing that we need to sustain our capital. We need to regain the rentability in 2026.
[Interpreted] Just to complement, Mario, you can see that most of our participations, they are over 60% or 70%. So in case of need, like Geovanne said, we can let go certain equity holdings without letting go those guarantees.
[Interpreted] We are pitching, for example, with BB Consortium, which is a business of the EPO BB Consortiums, we were leadership -- leaders in that. We have the fruits that are available so that we can generate that income or earnings to generate capital.
Goldman Sachs, Tito Labarta. My question is getting a recent update on the agri business because when we look at the Central Bank data, you continue to see deterioration in the portfolio. I mean, do you think we're past the worst of it? Have you maintained your guidance here for the year? So are you comfortable still with your provisioning levels? Do you think there will be further deterioration. And in terms of you're thinking about profitability improving next year, do you think you'll be able to be on track for that? And given the -- maybe following up on the capital with the reduction in the dividend this year, do you think in 2026, you'll be able to increase the dividend back more to historical levels? Or is there still some uncertainty? Or when would you decide that?
Thank you for the question, Tito. Definitely, it is our most challenging year ever, as we have already explained to you. The guidance we disclosed is not a walk in the park, and we have been crystal clear when talking about the third quarter. We mentioned that when we disclosed our second quarter financials that the third quarter, we would continue seeing the deterioration in the credit book, mainly coming from the agri book. So you should expect a third quarter similar to the second one.
But as Bittencourt mentioned, with this new provisional measure, executive order that we disclosed here, and this is something that we mentioned to all investors, we would be pursuing due to this new regulation of provisioning that the Central Bank put in place in Brazil. And this is the answer for all of you. We were able to succeed on that negotiation, explaining the differences between our agri book and the new regulation regarding upfront provisioning that was pouring or deteriorating our results. And we are confident that from the fourth quarter on, you saw also, shown by Prince, the volume of repayments that we are expecting to see. The peak of it is in the third quarter, and that's why the third quarter numbers tend to be similar to the second one. But from the fourth quarter on, we expect to have a flattening in our delinquency in the agri book, allowing us to bring more results to our P&L.
With regard to dividend policy, it's important to mention that's it's up to the Board of directors to set what would be the dividend policy for Banco do Brasil. We were very cautious when reducing it to 30% for '25. Okay. But from -- for '26 on, it will depend on our prospects for results and if our strategies towards increasing the individuals book become successful, the way we are expecting to become, definitely, we will be posting higher profitability and will allow us to better assess what would be our minimum dividend policy. It doesn't mean that I cannot depending on extra results that I may see happening, I couldn't pay an extra dividend, not necessarily having an increase in the payout ratio, but adding extra dividend payments for '26 that would comprise in a higher payout ratio by the end of the year instead of committing myself with a higher payout ratio at the beginning of the fiscal year. Okay.
[Interpreted] This is Renato of Autonomy Research. In short and long term, you have -- you communicated that you have less income and you communicated that to the agro business. How are you balancing that? Further on, I want to understand a little bit, how are you using the Cielo's integration?
[Interpreted] First of all, it's not a direct correlation. It's an opportunity that we can explain better. Our portfolio is quite internal. We have business poles that are similar to the business. And it's worse when you have worse performance in the farmers of such community that affects the small businesses around or linked to them. So that's what's been happening. Since the same way that we are less exposed to services within cities when the default payment, we have in the agro businesses, then the communities, if they have payment default, this affects the small business. From the beginning of the year or even at the end of the last year, we had a process of improvement of the origination of that portfolio. So we are being more selective.
We are using, like we said, and referring to the resilience metrics, we are looking to ferment new disbursements with the best clients, less risky and the best economy development and regions that have performed better. This translates in originating crops, which are the best crops when we follow up small and micro and small business. But the fact is that because I have a better selectivity, I have a better written of disbursement. And the payment default happens in -- at the level of the previous crops. So we expect that those crops in the third trimester are going to be -- we're still going to see them, but we're going to see a fall of this portfolio mainly starting in 2026.
And going to the strategy of that portfolio, yes, we are seeing a migration of the -- of an unprotected transfer because part of that -- part of them are from players, government funds -- guaranteed by government funds. But a part of this transfer, we are gradually migrating to a portfolio of anticipating receivables, especially credit. When we have a bigger revolving, you have the assurance because the warranty or guarantee is linked mainly because we have the ability to centralize the cash flow of the client within the bank.
That centralization of the cash flow not only brings more guarantees, but allows us to model the real financial situation of the client within that moment of his business life. So there is this AI engine that we call [ Pulsation ] that measures exactly the payments and the receivables and the payments made so that we measure their performance. And from there, we adopted the more adequate measurements of increasing the credit or renegotiation or collecting depending about the pulsation that we identified.
[Interpreted] On the other hand, we have the possibility of putting into the network, a whole commercial strategy. Until now, we saw imbalance when we wanted to deliver solution to a client in addition to risk and more adequate granting of credit. We have more adequate means to negotiate with the client. We know that there was a gap, and we are prepared to close that gap.
Now I would ask especially to Marcelo Rabelo to explain something about the resilience work we are doing.
[Interpreted] We have an economics team that analyzed the situation of each one of the municipalities in Brazil, and we integrated that in the modeling we are working on, so that each municipality participates in the booming that we are aiming for. And I would like to give credit to the team that is working in that respect.
[ Nicolas Riva ]. I think, it's probably going to be for Geovanne. The first one is regarding your presence in the bond markets, you recently announced you're going to be calling the dollar AT1 bond in October. It seems to me that the idea is to use the local market to raise either Tier 2s or AT1s and to use maybe both international and the local market to raise senior debt, but I wanted to confirm that if the plan, again, is to use mainly the international market just to refinance dollar senior debt.
Second question on capital. I think you showed a slide towards the end of the presentation, 11% CET1, I think, at the end of June and then the projection for 2026. I think it was the negative impact. I think it was roughly 100 basis points from different items. I wanted to ask if you -- what will be your target, your projection for CET1 and for total capital by the end of 2026, if you have some kind of target as well for capital ratios, both CET1 and total capital. That's my second question, capital.
And then the third question, Geovanne, is on this noise in recent weeks about the Magnitsky law that my understanding is it's been applied towards a Supreme Court Justice in Brazil, Alexandre de Moraes. There's been no sanction on any institution or bank. But I wanted to ask you if you can make any comment regarding your exposure to some of these individuals, which have already been sanctioned such as Alexandre de Moraes, members of his family. And then if the bank is involved or if the banking association is involved in any discussions with the Brazilian administration and the U.S. administration to prevent any banks from being sanctioned by the U.S. Administration and any systemic risk for the banking sector?
Thank you for the three questions. I'm going to try to answer them and perhaps divide here with Prince, okay? Let's start with the first one regarding the call in our Banbra. This was something that we were analyzing. We had already called another Banbra that was outstanding. And this one, particularly, we were making plans to see if we would continue keeping it or calling it. The good thing is that in our local markets, the market opened for AT1s -- domestic AT1s at a very competitive cost for us. So in order to make a better management of our assets and liabilities, it became clear to us that calling the AT1, but at the same time, financing this call with domestic AT1s at a very lower cost makes much more sense, and it will continue supporting the growth of our interest margin when we do this exchange. So definitely, we have no, how can I say, strategy looking forward to issue new AT1s internationally.
And regarding senior bonds, we are always paying attention to market conditions. For now, it doesn't seem to us attractive. And we do have a very strong external liquidity to finance our dollar-denominated liabilities. So we don't need to issue senior bonds in the short run. But as I mentioned, we continuously keep paying attention to market opportunities. And once the spread is good, we have already adjusted our liabilities throughout time, reducing the need for large payments in the short run. And we were able to smooth our curve throughout time. So that's why we don't have in the short run any will to issue senior bonds, okay?
And finally, with your third question, I will start answering and then transfer to Prince. First of all, we are not allowed to make comments on whatever banking activities of any clients. There is a law in Brazil that prevents us from doing that. But it's important for you all to know that we fully comply with regulations in all the geographies we operate. So we are fully complied with all legislations despite all the rumors. There is a huge noise, basically a political noise regarding this issue in Brazil. And unfortunately, sometimes this noise ends up coming here to the U.S. as well.
And I would like to transfer to Prince to make more comments on the Magnitsky.
If you have a target or projection for CET1 to the capital ratio...
Yes. We believe that the sound CET1 level for us is around 11%. All these adjustments we did in reducing the payout ratio, et cetera, is taking into consideration a 3-year term projection, and there is a prudential minimum level of capital that my Board approved. So whenever I see with this regulatory improvements that the Central Bank is promoting, if by any chance, this could go below the average level we consider is comfortable, we take actions to prevent us from having a capital issue in the future, okay? So this decision has nothing to do with the short run, has much more to do with the long run, considering all the regulatory improvements the Central Bank is promoting regarding Basel III adjustments, okay? So that's why I mentioned at the beginning of my presentation when I addressed the capital slide that I have already contracted 100 bps reduction next year due mainly to regulatory changes. In a moment that my organic result suffered from the losses from the agri book, okay? So that's why we decided to adjust the dividend -- the payout ratio.
So Geovanne, I think that your answer is totally completed. I would like just to reaffirm that we are a 215 years bank with 60-year presence here in the United States. So we are totally prepared to deal with these things here in the United States or in Brazil in total compliance.
Carlos Gomez, HSBC. So I'll ask in English. In terms of capital transactions that you mentioned that they come and they pitch you, we understand. Realistically, over the next 1.5 years, do you expect to do something? I mean, are you open to any type of transaction, buying, selling, changing in any way the configuration of the bank? And there was a question about BB Seguridade and the renewal of the contract, I wonder if you have any comment about that.
And the second question unrelated is about the agricultural portfolio. And we have a new situation. We have the judicial recovery, and we could potentially have higher losses on a permanent basis. How does the agricultural business look 3, 5 years from now relative to where it is today? Is it going to be the same, larger, smaller? And in the long run, would you like to change your reserve requirements from going to agriculture to perhaps going to mortgages, which is what the other banks do and perhaps has more growth potential?
Thank you, Carlos, for the question. I'm going to start with the first part of it regarding capital. We have a number of different alternatives to boost our capital, not only the payout that we have already done, but we can also consider perhaps even raising capital or selling shares of -- yes, I don't know why you're smiling, but definitely, there are a number of different alternatives that we can look. We don't want to stop growing our business. So that's why our main focus is on recovering our profitability. And that's why we have focused on growing faster our individuals portfolio, okay?
So as long as we continue delivering higher growth on that part of the book, I will be adding higher spreads and coping with this deterioration scenario and bringing higher profits, okay? So for '26, you should expect Banco do Brasil coming back to the mid-teens ROEs. So we believe we will be able to add extra capital just organically through higher profits, okay? But it's part of our strategy, focusing on other alternative assets that could bring us a one-off impact improving our capital.
Don't forget that all the agri book restructuring program will end up on adding extra capital as well. So that's why I mentioned to Mario Pierry that it's not part of our short-run strategy to start selling assets, especially these companies that bring us good results, as I showed to you and help us diversify the profits of Banco do Brasil. But this doesn't mean, for instance, that I could consider IPO-ing Consórcios. That is something that is extremely profitable. And we love -- we know that market would love to have a share of this business. But once again, this is not from us to decide. This decision is up to the shareholders' meeting, okay? But definitely, in the short run, this is not part of our strategy, okay?
With regard to the agri book, Bittencourt, would you like to add comments?
[Interpreted] They have knowledge of productive capacity. So even if we have payment default, the farmers who have the land will continue producing. So that's why those measures are important for us because we don't want to exclude the farmer from our base. We believe that one time that we have both opportunities to renegotiate, we will bring back the farmer to return to make this payment so that we continue operating with those farmers. We are talking about farmers from important regions in the country, not only concentrated in Rio Grande do Sul, where we have a series of medium and small producers who have been affected by the climate change. We have also farmers in Mato Grosso, Goias, Bahia, representing significant numbers. and they will continue producing. But due to the cash flow difficulties, they had that payment default.
So in the future, when we have these 2 measurements active, we will be starting a new phase. Of course, we're going to still have payment defaults. But starting in October, not only us, but we hope that the producers come to us so that we can invert the curve of the payment default. I think that's important. It's different from commerce where once you are in payment default, it's harder to recover. Agriculture is not as difficult.
Second issue is that in spite of all this renegotiation process that we are talking about, as of next week, we're going to receive the proposals of that tax-free line. We are highlighting the recovery starting 2026, starting the repayments of the -- of our portfolio. But we are also highlighting this not because we're going to have a renegotiation tomorrow that we're going to get the producer from Stage 1 to Stage 1. We are having -- we are going to be working with that portfolio. And if the producers will have -- will be repaying the interest and principal in a constant manner, we will have this provision, we will have -- we will think that the future will be better. So we have to look at that portfolio renegotiation.
[Interpreted] Banco do Brasil owns 50% of the market. But as a whole, there's another 50% in the market. So the measure will benefit all the financial market. And we have to remember that the client is not only a client of Banco do Brasil, but is in the financial market. So this partnership with our other institutions and the other players is important so that the producer starts another -- not to get into a new payment default next year. So that renegotiation will be going to be up to 9 years. So we're going to work with the producers looking case by case, but it's important to highlight that the debt profile of the producer is not happening only with Banco do Brasil, it happens with the whole -- in the market as a whole. So that renegotiation is very important because one more time, we are reinforcing the guidance of 5.3%.
[Interpreted] Just to conclude, I hope it covers all your questions, Geovanne shows that the CGP was the incentive in capital to grant credits to the people that invested during the pandemic, we see that BRL 0.6 billion of capital investment adds up to BRL 6 billion or BRL 7 billion, but the agri business portfolio had BRL 20 billion of payment default in June. So all this temporary measure gave to all the market that every real renegotiated will be incorporated into the capital. We have a good value to be paid for the reconstruction of the part of the capital that will kind of fall in 2026 with this new program.
[Interpreted] BB Security had this challenge being more -- adding more rentability. We know that part of the earnings was impacted due to the rural portfolio. So we expect to recover that. And we are announcing a new President, which is Labuto -- who is Labuto, to help us in the negotiation with our partners aiming at generating more results to Banco do Brasil.
You have to add -- do you want to add anything else to BB Security?
[Interpreted] No, I think you mentioned that. Any negotiation that is done or in the future, it will always be aimed at increasing the BB Corretora. So I think Labuto has an important mission, and he's going to talk to you soon about that.
Delano is here. Well, any questions, you can ask him as well. But soon, we'll have -- we're going to be able to talk about in a more structured manner about BB Seguridade. But we have to expand and penetrate other segments in the market. We have a very important client base, but we want to look for rentability and modernization of the portfolio. We need to modernize our portfolio in security. And with this agricultural insurance issue, we had a fall in BB Security and its impact in this recurring profit. In this last trimester, we had a possibility to recover part of that amount still in 2025.
[Interpreted] We have time for another question. Let me ask you another question. Can you talk a little about the third trimester, especially with these recent changes?
[Interpreted] We expect to have the estimation that in the third trimester, we still have 15% money due in September. With these efforts, we have to be very careful because the payment default, the BBD is above what is historic value or match is. We are close to 4%. It always was 2% to 2.5%.
[Interpreted] In that regard, we have been working to increase our profits. I think this is clear. We have been working hard to fight this payment default. So we are going to have results of more adjusted -- a more adjusted path. So we -- that's a resource that we have been working since yesterday.
[Interpreted] The last issue before we close, I'm going to ask you, those who have not the survey, please respond. And to close, I'm going to give the floor to Tarci, and I'm going to thank you all for being here.
[Interpreted] Thank you. Here, I want to tell you that Banco do Brasil has adequate credit and finance the production and foreign business in sustainable development of the country and ESG practices, its main vocation. I think that the scenario that is before us today is that faced with all of the history and the robust position of Banco do Brasil, we have a new dimension. It's a new dimension, more digital. So this is a bank that is able to adapt and reinvent itself according to the needs of the market and what the world demands from us.
So I believe that the Banco do Brasil that we're building today is a bank that is going to become ever more agile, more close to clients, more resilient to the changes in the world, but a bank that is has conditions to adapt -- to adapt fastly as the abilities before an economic point of view to recover fast. And I think that we are proud in our management that we deliver a more sustainable bank, a bank that returns to the investor what it gets, and we have a huge ability to deliver results. And we have a management that -- well, we say that when we are -- so we are restless. It's a restless management. We just want to move forward. And we want to assure you that we're going to work every day at all times so that this solid Brazilian bank continues to be this bank of Brazil that is, but it's not the bank of Brazil from Brazil, but a global reference in -- globally in adapting to macroeconomic scenarios, a bank that deliver more results and generate more value for the society.
Thank you very much for this morning and for this day dedicated to the Investor Day. Let's see us again in 2026.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Transkripte auf Deutsch freischalten
- Alle Event Transkripte auf Deutsch
- Sofortige Übersetzung
- KI-Zusammenfassungen für die wichtigsten Insights
Finanzdaten von Banco do Brasil ADR
Umsatz
Der Umsatz stellt die Summe aller Einnahmen eines Unternehmens z. B. für dessen Produkte oder Dienstleistungen dar.
Umsatz (TTM) einfach erklärtDirekte Kosten
Direkte Kosten sind die Kosten, die direkt im Zusammenhang mit der Herstellung des Produkts oder der Dienstleistung entstehen.
Bruttoertrag
Der Bruttoertrag gibt an, wie viel vom Umsatz nach Abzug der direkten Herstellkosten im Unternehmen verbleibt. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von der Bruttomarge (engl. Gross Margin).
Brutto Marge einfach erklärtVertriebs- und Verwaltungskosten
Die Vertriebs- & Verwaltungskosten (engl. Selling, General & Administrative expenses, kurz SG&A) beinhalten alle Aufwände für Marketing und den Verkauf sowie die allgemeine Verwaltung des Unternehmens.
Forschungs- und Entwicklungskosten
Die Forschungs- und Entwicklungskosten (engl. research & development costs, kurz R&D) geben Auskunft darüber, wie viel das Unternehmen in die Forschung und die Entwicklung seiner Produkte investiert. Vor allem prozentual vom Umsatz und im Vergleich zu direkten Wettbewerbern sind die Kosten interessant.
EBITDA
Das EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) ist der Gewinn des Unternehmens vor Zinsen, Steuern und Abschreibungen. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von der EBITDA-Marge.
Abschreibungen
Abschreibungen stellen Wertminderungen von Vermögensgegenständen des Unternehmens dar (z.B. durch Abnutzung von Maschinen).
EBIT (Operatives Ergebnis)
Das EBIT (engl. Earnings Before Interest and Taxes) ist der Gewinn des Unternehmens vor Zinsen und Steuern, das auch als operatives Ergebnis bezeichnet wird. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von
der EBIT-Marge.
Nettogewinn
Der Nettogewinn stellt den Gewinn oder Verlust nach Abzug aller Kosten dar.
Nettogewinn einfach erklärtaktien.guide Premium
| Jun '26 |
+/-
%
|
||
| Umsatz | 32.179 32.179 |
3 %
3 %
100 %
|
|
| - Zinsertrag | 21.918 21.918 |
14 %
14 %
68 %
|
|
| - Zinsunabhängige Erträge | 10.262 10.262 |
15 %
15 %
32 %
|
|
| Zinsaufwand | 42.072 42.072 |
21 %
21 %
131 %
|
|
| Nichtzinsaufwand | -16.015 -16.015 |
5 %
5 %
-50 %
|
|
| Risikovorsorge für Kredite | 14.139 14.139 |
44 %
44 %
44 %
|
|
| Nettogewinn | 2.753 2.753 |
48 %
48 %
9 %
|
|
Angaben in Millionen USD.
Nichts mehr verpassen! Wir senden Dir alle News zur Banco do Brasil ADR-Aktie direkt und kostenlos in Deine Mailbox.
Auf Wunsch erhältst Du jeden Morgen pünktlich zum Frühstück eine E-Mail, die alle für Dich relevanten Aktien-News enthält.
Banco do Brasil ADR Aktie News
Firmenprofil
Die Banco do Brasil SA ist in der Erbringung von Bank- und Finanzdienstleistungen tätig. Der Hauptsitz des Unternehmens befindet sich in Brasilia, Distrito Federal. Das Unternehmen ging am 2004-01-26 an die Börse. Die Aktivitäten der Bank sind in fünf Geschäftsbereiche unterteilt: Das Bankgeschäft, das Einlagen, Kredite und andere Bankdienstleistungen im Privat-, Firmen-, Großhandels- und öffentlichen Sektor anbietet; das Investmentgeschäft, das sich auf die Strukturierung und den Vertrieb von Schuld- und Eigenkapitalinstrumenten auf den brasilianischen Primär- und Sekundärkapitalmärkten konzentriert; das Fondsmanagement, das hauptsächlich für den Kauf, den Verkauf und die Verwahrung von Wertpapieren sowie das Portfoliomanagement zuständig ist; das Versicherungsgeschäft, das Produkte und Dienstleistungen im Zusammenhang mit Lebens-, Sach- und Kfz-Versicherungen, privater Altersvorsorge und Kapitalisierungsplänen anbietet, und das elektronische Zahlungsverkehrsgeschäft, das Dienstleistungen im Zusammenhang mit der Verwaltung von Kredit- und Debitkarten wie Erfassung, Übertragung, Verarbeitung und finanzielle Abwicklung umfasst. Die Bank ist über zahlreiche Tochtergesellschaften auf dem nationalen und internationalen Markt tätig.
aktien.guide Premium
| Hauptsitz | Brasilien |
| CEO | Ms. Medeiros |
| Mitarbeiter | 84.619 |
| Webseite | www.bb.com.br |


