Banco do Brasil S.A. ( (BDORY) ) has released its Q1 earnings. Here is a breakdown of the information Banco do Brasil S.A. presented to its investors.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Banco do Brasil S.A. is a prominent financial institution in Brazil, primarily engaged in providing a wide array of banking services, including personal, corporate, and agribusiness banking, with a notable presence in the financial sector.
In its latest earnings report for the first quarter of 2025, Banco do Brasil reported an adjusted net income of R$7.4 billion, with a return on equity (ROE) of 16.7%. The report highlights the impact of new accounting regulations, which have introduced changes in the calculation of expected credit losses and interest recognition, affecting the comparability with previous quarters.
Key financial metrics from the report include a net interest income (NII) of R$23.9 billion, influenced by changes in interest rate dynamics and a growing credit portfolio. The cost of credit reached R$10.2 billion, driven by challenges in the agribusiness sector, while fee income stood at R$8.4 billion, despite adjustments in fee recognition due to regulatory changes. The bank’s administrative expenses remained stable at R$9.5 billion.
The expanded loan portfolio showed a year-over-year growth of 14.4%, with notable increases in the corporate and agribusiness segments. The bank’s capital adequacy ratio remained strong, with a CET1 ratio of 10.97%, reflecting a robust balance sheet.
Looking ahead, Banco do Brasil’s management has placed its guidance for net interest income, cost of credit, and adjusted net income under review, while maintaining its projections for loan portfolio growth and other operational metrics, indicating a cautious yet optimistic outlook for the remainder of the year.