Banco do Brasil (BBAS3) investor relations material

Executive summary

• Net interest income rose 14.8% year-over-year to R$27.4 billion in 1Q26, driven by loan growth and treasury income.

• Adjusted net income for 1Q26 was R$3.4 billion, down 53.5% year-over-year, with ROE at 7.3%.

• Expanded loan portfolio reached R$1.3 trillion, up 2.2% year-over-year, with growth in individuals and agribusiness, but a decline in companies.

• Fee income increased 5.5% year-over-year, notably in asset management, insurance, and consortium.

• Cost of credit surged 85.8% year-over-year to R$18.9 billion, reflecting a challenging credit risk environment.

Financial highlights

• Accounting net income was R$3.1 billion, down 54.4% year-over-year.

• CET1 capital ratio at 11.59% as of March 2026, projected to remain around 11%-11.5% through 2026.

• NPL over 90 days at 5.05% for the total portfolio, with individuals at 6.01%, companies at 2.87%, and agribusiness at 2.76%.

• Coverage ratio for NPL +90d at 155.4%.

• Cost-to-income ratio (12 months) at 28.0%, up from 26.5% year-over-year.

Outlook and guidance

• Loan portfolio growth guidance for 2026 remains at 0.5% to 4.5%, with 1.8% observed in 1Q26.

• Net interest income guidance revised to 7%–11% for 2026.

• Cost of credit guidance increased to R$65–70 billion for 2026.

• Provisions expected to stabilize and then decline, with normalization in cost of risk by 2027.

• Focus remains on growing individuals' portfolio, especially payroll and high-income segments, while maintaining prudence in risk management.