{
  "id": 7629605,
  "title": "Banco do Brasil Shares Stay Under Pressure After BofA Sell Call",
  "url": "https://urgent.news/2026/09/15/banco-do-brasil-shares-stay-under-pressure-after-bofa-sell-call",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-15T19:42:45.000Z",
  "source": {
    "name": "The Rio Times",
    "slug": "the-rio-times",
    "url": "https://www.riotimesonline.com/banco-do-brasil-shares-stay-under-pressure-after-bofa-sell-call/"
  },
  "original_language": "en",
  "account": "Banco do Brasil, Brazil's largest state-controlled bank, has seen its stock under pressure recently. Bank of America (BofA) reaffirmed its sell rating on the bank, citing worsening credit quality and rising non-performing loans. The bank's non-performing loan ratio, which measures loans overdue more than 90 days, reached 5.61% in the second quarter, up from 3.96% a year earlier and 5.05% three months prior. This increase is due to a variety of factors, including farm loan delinquencies and credit-card delinquencies that doubled in a single quarter. Additionally, a labor strike that briefly shut down some of Banco do Brasil's branches added to the bank's troubles. BofA warned that the bank's expanded credit portfolio, totaling R$1.31 trillion (US$254.3 billion), grew only slightly over the previous quarter. Despite posting a net profit of R$3.9 billion (US$757 million) for the quarter, Banco do Brasil's return on equity fell to 8.3%, below its cost of capital. BofA's caution is also due to a new government program for rural debt, Medida Provisória 1.376, which could lead to renegotiations of up to R$30 billion (US$5.82 billion) in loans. While some recovery is expected by 2027, Banco do Brasil's return on equity is projected to remain below its cost of capital, keeping BofA's sell call intact.",
  "summary": "Key Facts — What happened. Bank of America (BofA) reaffirmed its sell rating on Banco do Brasil (BBAS3), cutting the price target to R$20 (US$3.88). — How big. Non-performing loans overdue more than 90 days hit 5.61% in the second quarter of 2026. — What it means. BofA expects 2026 net profit of R$17.6 billion […] The post Banco do Brasil Shares Stay Under Pressure After BofA Sell Call appeared…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}