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Banco do Brasil Closed 2024 with Billion-Dollar Profit, But Delinquency in Agribusiness Triggered a Red Alert! With Hundreds of Producers Entering Judicial Recovery, the Impact on Projections for 2025 Could Be Significant.
The Brazilian Agribusiness Sector, historically one of the pillars of the national economy, has been facing challenges that have directly impacted the financial market.
Banco do Brasil (BBAS3) released its 2024 balance sheet, revealing significant growth in profits but also a worrying increase in delinquency in the agribusiness sector.
The situation has raised alarms among investors and experts who are closely monitoring the developments of this scenario.
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The bank reported a net adjusted profit of R$ 37.9 billion in 2024, a growth of 6.6% compared to the previous year.
This performance ensured a return on equity (ROE) of 21.4%.
In the last quarter of the year, the profit was R$ 9.6 billion, representing a rise of 0.7% compared to the third quarter and 1.5% compared to the same period in 2023.
Credit and Delinquency in Agribusiness
The bank’s expanded credit portfolio, which includes securities and guarantees, reached R$ 1.278 trillion, an increase of 15.3% compared to the last quarter of 2023 and 6.1% in comparison to September 2024.
However, this advance was not uniform across the segments served. Agribusiness stood out negatively, with a concerning growth in delinquency.
The indicator of delays over 90 days rose to 3.32%, heavily influenced by the agribusiness sector.
According to Geovanne Tobias, CFO of Banco do Brasil, about 20% of this increase is a consequence of the rise in requests for judicial recovery by rural producers and agribusiness companies.
In 2024, approximately 250 producers and agribusiness companies filed for judicial recovery, reflecting financial difficulties that affect not only rural entrepreneurs but also the institutions that lend to the sector.
Even so, the total financing balance for agribusiness grew 2.9% in the quarter and 11.9% in the year, reaching R$ 397.7 billion.
Growth in Other Areas
While the agribusiness sector faces difficulties, other areas of Banco do Brasil showed solid growth.
The credit portfolio for individuals rose 2.4% in the quarter and 7.3% in the year, totaling R$ 336.0 billion.
The highlight was for payroll loans, which grew 1.1% in the quarter and 9.8% in the year.
Tobias highlighted that the bank expects even stronger performance in this category in 2025, driven by the increase in payroll loans for private sector workers.
Operations aimed at companies also recorded significant advances. The business portfolio grew 9.4% in the quarter and 18.0% in the year, totaling R$ 461.1 billion.
Among the standout modalities were receivables operations, with a 36% increase in the quarter, and financing lines for investments, which grew 25.9% in 12 months.
The bank also expanded its sustainable credit operations, which reached R$ 386.7 billion in December 2024, a growth of 12.7% in a year.
Of this total, 28.7% is linked to good socio-environmental practices, with highlights for investments totaling R$ 49.6 billion.
Monitoring Agribusiness
Despite the growth in credit portfolios and good numbers in other areas, the increase in delinquency in the agribusiness sector has drawn the attention of the bank’s board.
The Midwest region, the epicenter of national agribusiness production, showed a sharp increase in payment delays.
To mitigate these risks, Banco do Brasil has adopted specific monitoring and debt renegotiation strategies.
“We have implemented specific actions to normalize this situation and ensure the sustainability of our agribusiness portfolio,” stated Tobias.
Additionally, the institution intends to be more stringent in granting new loans to the sector.
Prospects for 2025
For 2025, Banco do Brasil projects more moderate growth of the credit portfolio, adopting stricter criteria in selecting profiles for granting loans to agribusiness.
The bank is also betting on the advancement of sustainable credit lines and the expansion of payroll loans as ways to offset potential negative impacts in the agribusiness sector.
The outlook for agribusiness remains uncertain, but experts emphasize that the policies adopted by Banco do Brasil could help stabilize the credit portfolio and mitigate risks associated with the segment.
The expectation is that 2025 will be a year of adjustments and greater caution in granting financing.
Pois eu pensava que o banco repassava recursos federais para os produtores.
Matéria RASA e TENDENCIOSA.
Quer dizer que o agronegócio, responsável pelo CRESCIMENTO do país e DESENVOLVIMENTO de regiões inteiras, é AGORA o responsável pelo prejuízo do bancão estatal?
A matéria inexplicavelmente esqueceu de mencionar que os desastres climáticos (enchentes no RS, seca e incêndios no Norte e Centro-Oeste) fizeram muitos produtores perder TUDO, não sendo ajudados pelo governo, que quebrou mais uma promessa. Vão pagar como?
A matéria também esqueceu do ROMBO da Previ, que impacta no resultado do banco e as inúmeras FRAUDES, de que o banco é vítima, exatamente quando é gerido pela esquerda.
Este Click Petróleo e Gás está decepcionando em algumas matérias…