Business · Companies · 45 mins ago
Banco do Brasil cuts dividend payout after sharp profit fall
Banco do Brasil cut the share of profits paid as dividends from 30% to 25% for 2026 and 2027.
The decision affects shareholders of the Brazilian bank and sets the payout at the minimum required under its policy.
Adjusted third-quarter profit fell 66.5% to 1.27 billion reais from a year earlier.
The bank linked the move to rising defaults in its agribusiness loan portfolio, which have increased the cost of credit and put pressure on profits and capital projections.
The bank's finance chief said some people in the agricultural sector were not repaying loans to the bank.
The bank also suspended interim dividends in 2027, and any minimum payout that year will depend on its capital position at year-end.
For 2026, the bank plans to announce any remaining payment needed to meet the minimum on February 17, 2027, with payment scheduled for March 10.
Banco do Brasil reported adjusted net income of R$1.27 billion in the third quarter of 2026, down 66.5% from a year earlier.
The bank cut its 2026 adjusted net income forecast to between R$9 billion and R$11 billion, from a previous range of R$18 billion to R$22 billion.
It reduced the share of profits allocated to dividends for 2026 and 2027 from 30% to 25%, the minimum required under its policy.
The bank cited rising delinquency in its agribusiness loan portfolio and its effects on credit costs, profits and capital projections.
A Banco do Brasil executive said some agribusiness borrowers were not willing to repay the bank.
- Who
- Banco do Brasil, its shareholders and borrowers in the agribusiness sector.
- What
- The bank reported a steep fall in third-quarter profit, lowered its 2026 forecast and reduced planned dividends.
- When
- Third quarter of 2026; the dividend change was announced on November 11, 2026.
- Where
- Brazil.
- Why
- The bank cited rising delinquency in its agribusiness loan portfolio, which increased credit costs and affected profit and capital projections.
This story does not have two clearly opposing sides.
Banco do Brasil recorded adjusted net income of R$1.27 billion, down 66.5% from the same quarter of 2025.
The bank announced it would reduce the profit share allocated to dividends for 2026 and 2027 from 30% to 25%.
Geovanne Tobias said in a videocast about the third-quarter results that some agribusiness borrowers did not want to repay the bank.
The bank plans to announce the additional dividend amount needed to meet the 2026 minimum.
Payment of that dividend complement is planned.
- Third-quarter adjusted net income
- R$1.27 billion
- Year-on-year profit decline
- 66.5%
- 2026 adjusted net income forecast
- R$9 billion to R$11 billion
- Dividend share for 2026 and 2027
- 25%, down from 30%
- Nine-month adjusted net income
- R$8.6 billion
- Third-quarter cost of credit
- R$21.2 billion
4 sources
BBAS3: “Uma parte do agro não quer pagar o Banco do Brasil”, diz CFO após balanço
Banco do Brasil anuncia corte de dividendos para preservar capital após nova queda do lucro
Crise no agronegócio faz Banco do Brasil reduzir dividendos após tombo no lucro
What people are saying
A part of Brazilian agribusiness effectively does not want to pay Banco do Brasil.
We know Banco do Brasil has the capacity to do much more than that.