# Banco do Brasil's Value Destruction

> Banco do Brasil's ROE falls below cost of capital for six quarters, sparking stock drop and credit crisis.
- Title: Banco do Brasil's Value Destruction · valorinternational
- Summary: Banco do Brasil's ROE falls below cost of capital for six quarters, sparking stock drop and credit crisis.
- Keywords: banco do brasil, return on equity, cost of capital, farm loan defaults, agribusiness, stock price, credit crisis, brazil, valorinternational
- Source: valorinternational — https://valorinternational.globo.com/markets/news/2026/11/13/analysis-banco-do-brasil-is-destroying-value.ghtml
- Published: 2026-11-13T14:35:46.74+00:00
- Read time: 1 min
- Topics: banco do brasil, return on equity, cost of capital, farm loan defaults, agribusiness, stock price, credit crisis, brazil, business, money
## ROE below cost of capital
Banco do Brasil reported a return on equity below its cost of capital for six consecutive quarters.
## Farm credit crisis intensifies
BB faces one of its worst farm credit crises, CEO says.
## Profit plunges 66.5%
BB profit plunges 66.5% on farm loan defaults.
## ROE drops to 2.8%
In Q3, BB generated an unprecedented ROE of 2.8% as loan-loss provisions rose to protect against agribusiness defaults.
## ROE trend over time
BB's ROE was 8.4% in Q2 and Q3 of 2025, rose to 12.4% in Q4 2024, fell to 7.3% in Q1 2026, and reached 8.3% in Q2 2026.
## Stock price falls 30.12%
BB shares have fallen 30.12% between end of 2024 and yesterday's close.
## Capital constraints emerge
BB's capital levels are under pressure as ROE falls below cost of capital for six quarters.
## Key takeaway

Banco do Brasil's return on equity has fallen below its cost of capital for six consecutive quarters, causing a 30.12% stock decline and worsening farm loan defaults.