Banco do Brasil Flags R$3.6 Billion Single-Client Delinquency as Braskem Denies Involvement

Overview

• The fourth‑quarter 90‑day‑plus delinquency ratio rose to 5.17%, which Banco do Brasil said would have been 4.88% without the single case.
• Credit coverage ended the quarter at 155.4%, versus 164.7% absent the item, with the exposure described as long‑standing in the bank’s Títulos e Valores Mobiliários portfolio and provisioned over years.
• The operation became overdue during 2025 negotiations and was regularized in January 2026, after which the bank ceded the credit to a fund that buys higher‑risk loans; management expects no additional immediate impact in the first quarter.
• Market reports linked the case to Braskem, which issued a statement denying any outstanding obligations to the bank, as its preferred shares fell about 9.9% in Thursday’s session on B3.
• Banco do Brasil reported adjusted net income of R$20.6 billion for 2025, down about 45% year over year, and its shares swung from gains post‑results to a 3.38% decline on Friday.