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EN
Banco do Brasil hit by record farm loan defaults
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The Cattle Site
The state-run lender on Thursday reported weaker-than-expected second-quarter results and announced a sharp cut to its full-year outlook, following an already challenging first quarter marked by high delinquency in the agribusiness segment.
Most of the defaults stem from soybean, corn, and cattle producers in Brazil's center-west and southern regions, Medeiros said during a call with analysts.
Banco do Brasil reported a 90-day default ratio of 3.49% in the sector in the April-to-June period, up from 3.04% in the previous quarter and 1.32% a year earlier.
Banco do Brasil expects some improvement in its overall results from the fourth quarter onwards, driven by net interest income growth.
They had plunged more than 30% since the weaker-than-expected first quarter results and are still down 13% year-to-date.
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