Banco do Brasil SA reported a 60% year-on-year drop in second-quarter adjusted net income to 3.8 billion reais (US$702 million), missing the 5 billion-real consensus compiled by LSEG. Return on equity fell to 8.4%, the lowest since 2016, as the state-controlled lender booked a 104% surge in loan-loss provisions to 15.9 billion reais following new accounting rules and rising delinquencies in its agribusiness portfolio. The bank cut its dividend-payout ratio to 30% of profit from 40-45%, marking its first reduction since the pandemic. It also slashed full-year guidance, projecting 2025 adjusted earnings of 21–25 billion reais compared with an initial range of 37–41 billion reais, and pared expected credit-portfolio growth to 3–6% from up to 9.5%. “2025 is a year of adjustments for growth acceleration,” Chief Executive Officer Tarciana Medeiros said. Banco do Brasil was the last of Brazil’s major listed banks to publish results this quarter and has lost more than 30% of its market value since an earnings shock in May prompted the suspension of previous targets. The latest figures underscore the pressure on the government-backed lender as higher farm bankruptcies and tighter provisioning rules squeeze profitability and limit near-term shareholder returns.