Brazilian state-run lender Banco do Brasil SA reported a 60% drop in second-quarter adjusted net profit, coming in at 3.8 billion reais. The bank also cut its 2025 shareholder payout to 30% of profit, down from 40-45%, citing factors such as results and capital projections. The bank’s shares have fallen over 30% since the first-quarter report.

Chief Executive Tarciana Medeiros stated that 2025 is a year of adjustments for growth acceleration. Banco do Brasil posted a return on equity of 8.4%, down from 21.6% a year ago, and 16.7% in the first quarter. The lender also reduced its full-year adjusted net profit estimate to 21-25 billion reais, below the initial range of 37-41 billion reais.

The bank’s credit portfolio growth is now expected to be between 3% and 6% this year, down from the previous forecast of 5.5-9.5%. Banco do Brasil’s mid-point estimate for adjusted net profit, 23 billion reais, falls short of the 26.8 billion reais expected by analysts. The challenging first quarter saw higher delinquency in its key agribusiness loan portfolio and regulatory changes impacting earnings.

Read more at Yahoo Finance: Banco do Brasil quarterly profit slides, slashes yearly outlook and dividend