Farm defaults cut Banco do Brasil's profit by 66%. And the bank slashed dividends
Agribusiness delinquency hit 6.92% and BB lowered its full-year guidance. Brazil's biggest farm lender is pulling the brake.
To save you time4
- How much did BB earn?
- R$1.27 billion adjusted in Q3, 66.5% less than a year earlier.
- How big are farm defaults?
- 90-day delinquency reached 6.92%, versus 4.84% a year earlier. Genial estimates ~9.9% including write-offs.
- Who is not paying?
- Mid-sized and large soy, corn and cattle producers, mainly in the Center-West. The bank cites farmers waiting for better renegotiation terms.
- What about shareholders?
- BB cut its 2026 guidance and lowered the payout from 30% to 25%, the legal minimum.
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This is the number everyone in Brazilian agribusiness should look at today: Banco do Brasil earned R$1.27 billion adjusted in Q3, 66.5% less than a year earlier. The reason has a name: farm defaults.
How big the problem is
- 90-day agri delinquency: 6.92%, versus 4.84% a year earlier.
- Adding what the bank already wrote off, Genial estimates close to 9.9%.
- The agri loan book shrank 4.3% in the quarter, to R$403.6 billion.
Who isn't paying
Not small farmers. BB points to mid-sized and large soy, corn and cattle producers, mostly in the Center-West. And it bluntly speaks of moral hazard: borrowers who stopped paying while waiting for a better renegotiation.
What the bank did
It cut its full-year profit guidance and lowered the payout from 30% to 25%, the legal minimum.
What I'd watch
BB is agribusiness's biggest lender. When it tightens, credit gets more expensive and selective for everyone, leaving more room (and more risk) for CPRs, Fiagros and trader financing. Watch renegotiations and any sign of government relief.
