Banco do Brasil misses profit forecast, slashing yearly outlook and dividend
Net profit came down to 3.8 billion reais ($702.4 million), below the 5 billion reais expected in an LSEG poll.
The results follow a challenging first quarter, where higher-than-expected delinquency in its key agribusiness loan portfolio and regulatory changes hurt earnings.
The bank's shares have fallen more than 30% since the first-quarter report, which had led the lender to suspend some of its initial 2025 projections.
Banco do Brasil resumed forecasts for those metrics on Thursday, projecting full-year adjusted net profit between 21 billion and 25 billion reais, far below its initial range of 37 billion to 41 billion reais provided at the start of the year.
The mid-point of the fresh range, 23 billion reais, also falls short of the 26.8 billion reais expected by analysts polled by LSEG.
In a separate filing, the lender also cut its 2025 shareholder payout to 30% of its profit, down from the previous range of 40% to 45%.
($1 = 5.4101 reais)
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