Lender Banco do Brasil sees profits rebounding in 2026

SAO PAULO, Feb 11 (Reuters) - ‌Brazilian state-run ​lender ​Banco do Brasil expects its adjusted net profit to grow by up to 26% in 2026, ‌it said on Wednesday, as it posted better-than-expected ⁠fourth-quarter results.

Banco do Brasil said its adjusted net profit should reach ‌some 22-26 billion reais ($4.3-$5 billion) ‌this year. This would mark a solid rebound after the figure slid 45% in 2025 to 20.7 billion ​reais.

The center of the target stands at 24 billion reais, broadly in line with the 24.39 billion reais ⁠predicted by analysts polled by LSEG.

"We are optimistic about 2026," Banco do Brasil ​President Tarciana Medeiros said in a statement, adding the lender continues to focus on risk mitigation ​and profitability.

Banco do Brasil also posted ‌an adjusted net profit of 5.74 billion reais in last year's fourth quarter, up some ⁠40% year-on-year and above the 4.55 billion reais expected by analysts.

Its return on equity, a measure of profitability, came in at ⁠12.4%, down from 20.8% a year earlier, but above the 8.4% ​posted in the third quarter.

For 2026, the bank also predicted its credit portfolio will grow between 0.5% and 4.5% this year, after ‌rising 3.1% in 2025. Cost of credit is expected between 53 billion reais and 58 ‌billion reais, compared to around 62 billion reais last year.

In ⁠a separate filing, the ‌lender announced some 1.2 ​billion reais in interest on equity to shareholders.

($1 = 5.1815 reais)

(Reporting by Fernando Cardoso; Editing by Sarah ‌Morland)

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