(B3: BBAS3) reported a 53.5% drop in profit to R$3.4 billion ($672 million), driven by a sharp rise in defaults on its agricultural loan portfolio.
The deterioration in asset quality has pushed the stock to trade at a steep discount of 0.61x book value, reflecting investor concern over the bank's exposure to Brazil's rural sector.
The results highlight the fragility of credit conditions in Latin America's largest economy.
As the country's oldest bank, Banco do Brasil's performance is often viewed as a barometer for broader financial health.
The surge in farm-loan non-performing assets suggests that stress in the agricultural supply chain is translating directly into balance-sheet pressure for major lenders.
This development follows earlier signs of a breakdown in local private credit markets.