Banco do Brasil (BB) expects the delinquency outlook to improve after it rose again in the second quarter. On one hand, the state-owned bank is betting on a provisional presidential decree (MP) allowing farmers to renegotiate debt, as the crisis in the sector is pushing up delinquency rates in agribusiness and among individuals. At the same time, it sees room for credit-card delinquencies to decline following a change in strategy. Even so, analysts and investors remain cautious about asset-quality trends.
BB vice president of risk Felipe Prince said he expects a “significant improvement” in provisions for doubtful accounts (PDD) as a result of MP 1376/2026, which in turn will also ease pressure on the individual-loan…