Citi: BB has profit above consensus in Q4 2025, but scenario remains challenging

By Cecília Mayrink São Paulo, 02/12/2026 - Banco do Brasil reported net income of R$ 5.7 billion, above Citi's consensus. According to the bank, although the financial institution benefited from tax credits, the earnings before taxes (EBT) trends were also above estimates, mainly due to a 5% improvement in net interest income (NII) compared to the previous quarter. Citi assesses that, regarding the quality of assets, there are still challenging trends. Additionally, there were no major surprises regarding expenses or costs. "The scenario remains challenging for Banco do Brasil, which keeps us in a cautious position for now," point out analysts Gustavo Schroden, Brian Flores, and Arnon Shirazi. Although the bank acknowledges the positive trends in NII, driven by better funding cost dynamics, asset quality indicators still suggest that it may be too early to declare the peak of the delinquency cycle, despite the company's efforts and improvement in certain metrics. Furthermore, Citi ...