In This Article:
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Adjusted Net Income: BRL37.9 billion, an increase of 6.6% year-over-year.
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Loan Portfolio: Exceeded BRL1,278 trillion, a growth of more than 15%.
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Loans to Individuals: BRL336 billion, an increase of 7% year-over-year.
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Corporate Portfolio Growth: 18% increase year-over-year.
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SME Portfolio: Exceeded BRL125 billion.
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Credit Balance for Large Companies: Exceeded BRL258 billion.
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Government Portfolio: Reached BRL78 billion.
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Agribusiness Portfolio: Growth of almost 12%, reaching BRL400 billion in January.
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Capital Level: Closed the year at 10.89%.
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Sustainable Portfolio: Growth of almost 13%, reaching BRL387 billion.
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Sustainable Funding: Exceeded BRL6.6 billion.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Banco do Brasil SA BB Brasil (BDORY) achieved an adjusted net income of BRL37.9 billion, marking a 6.6% increase year-over-year.
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The bank's loan portfolio exceeded BRL1,278 trillion at the end of 2024, representing a growth of over 15%.
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Banco do Brasil SA BB Brasil (BDORY) increased its market share in payroll loans to over 20%, with a significant 53% growth in INSS payroll loan disbursements.
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The bank has been recognized as the most sustainable bank in the world for the sixth consecutive time.
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Investments in technology and digital transformation have more than doubled over the past two years, enhancing customer service and operational efficiency.
Negative Points
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The agribusiness portfolio experienced a rise in delinquency, with in-court reorganizations representing almost 20% of non-performing loans.
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The bank's capital was impacted by mark-to-market effects due to interest rate volatility, affecting its capital ratio.
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There is a cautious outlook for credit growth in the agribusiness sector due to increased risk, requiring a more prudent approach.
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The implementation of resolution 4966 is expected to increase provisioning requirements, impacting financial results.
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Fee income growth is projected to be flat or potentially decrease, partly due to changes in accounting for loan-related revenues.
Q & A Highlights
Q: Can you explain the focus for loan portfolio growth in 2025, particularly in wholesale and SME segments? A: Marco Geovanne Tobias da Silva, CFO, explained that while there was significant growth in the companies' portfolios, the environment remains challenging. The bank plans to focus on exporting companies and SMEs, leveraging government lines like FGO ProCred 360. The aim is to maintain proximity to clients while balancing risk and return.