Banco do Brasil: 1Q26 Conference Call Highlights

研报英文原文证据摘录

Banco do Brasil: 1Q26 Conference Call Highlights

Update

May 14, 2026 02:36 PM GMT

Morgan Stanley & Co. LLCMBanco do Brasil | Latin America Jorge Kuri

Equity Analyst

1Q26 Conference Call Highlights Jorge.Kuri@morganstanley.comJorge Echevarria +1 212 761-6341

Jorge.Echevarria@morganstanley.com +1 212 761-8015

Provisions Guidance. Management argued that the underlying provisioning dynamic

has fundamentally changed, with expected‑loss models now leading Banco do Brasil Banco do Brasil (BBAS3.SA, BBAS3 BZ)

to anticipate future risk rather than wait for realized delinquencies. As a result, the Brazil Financial Institutions | Brazil

recent increase in cost of risk reflects a more conservative and proactive stance, as Stock Rating Overweight

Industry View No Rating

well as a deterioration in the macro backdrop, including higher interest rates and Price target R$39.00

heightened geopolitical uncertainty than what the initial guidance assumed in Shr price, close (May 13, 2026) R$20.76

Mkt cap, curr (mm) R$118,972

February. As a reference, the bank now sees cost of credit between R$65 and R$70 52-Week Range R$28.91-17.83

billion, versus R$53 and R$58 billion before. Looking ahead, management expects Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

cost of risk to trend toward 4% in 2027, before converging to a normalized range of EPS (R$)** 3.61 3.16 5.81 6.43

roughly 2.0-2.5% over the longer term. Prior EPS (R$)** - 4.34 6.13 6.91

P/E 6.0 6.6 3.6 3.2

Div yld (%) 4.2 3.8 9.8 13.9

Agribusiness Asset Quality. Agribusiness remains the largest source of uncertainty

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

in the guidance, given external factors such as input costs, commodity prices, and framework

** = Based on consensus methodology

geopolitical events.