Banco do Brasil reported weak first-quarter 2025 results, with an adjusted net profit of R$7.4 billion, falling short of market expectations. The bank suspended its profit guidance for the year amid challenges including increased delinquency in the agricultural sector and impacts from new Central Bank regulations. Following the earnings release, Banco do Brasil's shares plunged between 12% and 13.8%, trading as low as R$25.32. The broader context of rising corporate delinquency in Brazil, with 7.3 million companies owing a total of R$169.8 billion, has contributed to the bank's difficulties. Analysts describe the situation as a 'perfect storm,' with accounting changes and market conditions prompting potential downward revisions of forecasts.