Lender Banco do Brasil sees profits rebounding in 2026

Core Insights - Banco do Brasil expects adjusted net profit to grow by up to 26% in 2026, reaching approximately 22-26 billion reais ($4.3-$5 billion) [1][1][1] - The bank reported a fourth-quarter adjusted net profit of 5.74 billion reais, a 40% year-on-year increase, exceeding analyst expectations of 4.55 billion reais [1][1][1] - The return on equity for Banco do Brasil was 12.4%, down from 20.8% a year earlier but higher than the 8.4% in the third quarter [1][1][1] Financial Projections - The target for adjusted net profit in 2026 is centered at 24 billion reais, aligning with analyst predictions of 24.39 billion reais [1][1][1] - The bank anticipates credit portfolio growth between 0.5% and 4.5% in 2026, following a 3.1% increase in 2025 [1][1][1] - Cost of credit is projected to be between 53 billion and 58 billion reais, compared to approximately 62 billion reais last year [1][1][1] Shareholder Returns - Banco do Brasil announced 1.2 billion reais in interest on equity to shareholders [1][1][1]