Banco Do Brasil Sa S/Adr

Hello, welcome to another video of results from Banco do Brasil. I'm Janaine Stott, Head of Relations with Investors. I'm here with Marcelo Alexandre, our specialist in R&D, to have a chat with our CFO, Giovanni Tobias. In the next minutes we will talk about the highlights of the results of the second quarter of 2026. To start, I want to know a little about your reading about the delivery of this quarter. I remember that at the beginning of the year, when we recorded the first videocast, we talked a little about the rate of recovery of the result, right? You even commented if it would be a W, if it would be a U, and it seems that this trend of the W is confirmed in this quarter.

Without a doubt, Janaína, this result is very emblematic because we are facing a moment, perhaps historical, in the generation of results of Banco do Brasil. I remember, I think something similar happened there in the 94, 95, which was a heavy agro crisis and we are experiencing something very similar. So when we delivered that result there in December, maybe it already pointed to a A recovery return. And then when we saw the results of the first quarter, oops, I think it should be in W, not in U or V. At the time I used to say so. And looking at the numbers, there are good things. The number, although it is still a smaller number than what we know about the capacity of Banco do Brasil to generate results, it already brings some important signs here. So I would say to you that in fact the trend is for us to have a recovery in W, considering that the profit of the quarter of 3.9 billion reais, the adjusted profit, it already shows a growth of almost 14% compared to the previous quarter, so I think this is a positive data. But it still comes aggravated with the volume of provisions. We will be able to go into each of these issues in a little while to talk specifically, but I consider that it is a result that brings some important signs inside it. We look, for example, at this profit that has already grown 13.9% in the quarterly view, almost more than 3% in the annual view, it brings a robust financial margin, which is already a consequence of our strategy of reinforcing the mix, mainly in the physical person. The financial margin with clients, you will see a little bit there in the front, it came very good. In the quarter view, it is practically stable, but here we are carrying a weight here of inadimplency. The biggest inadimplency, an inadimplency that we already had in the physical person, is also appearing here and with that I have less accrual of revenue. You also have a question about the Selic itself, which also brings a little reduction in my earnings from the treasury. But in general, I consider it to be a result that demonstrates the capacity of Banco do Brasil to face this situation, especially in the agribusiness, and at the same time to deliver profit and a strong result and also as a result of all our strategy and execution at the top, in the agencies. When we look, for example, at revenue from services, I consider the result extremely positive. We grew 3.4% in the quarter, a growth of 4.2% in the year. A highlight that is worth it are the revenues with fund management, all growing in two digits, the revenue with consortia, We just didn't deliver more receipts here because of the security. And there we had a selic effect and also less hiring, a smaller volume because it is important to remember that a part of this gain that comes from the brokerage is from the hired insurers. And in rural insurance in particular, given the worsening of the sector, it also The credit rate, without a doubt, is still strong, but it already shows a stabilization. I think this is also a positive point. Of course, we will be able to detail this better later, but it still inspires care. Inadimplência na carteira rural e nós também vimos um crescimento da inadimplência na carteira pessoa física principalmente ali cartões de crédito e nos créditos que não são consignados é o crédito direto ao consumidor sem garantias mas temos aí um ponto muito positivo no controle das despesas We continue to keep our investments in our technological park. We have the IAEA as a new frontier to be explored and we continue to be firm on this purpose, but at the same time controlling our expenses as a whole. I think that, finally, the main capital is a positive data, because we continue to grow our portfolio, we had regular, punctual issues that we will talk about, but we ended the quarter with a level of capital that we consider extremely suitable to our perspective of expansion of our portfolio, looking at the year 2026.

Giovanni, you gave a general overview of the result, but I would like us to start to go into a little more detail in the composition, mainly what is the generation engine, which is the gross financial margin. I think that in the past TRI, we reviewed the perspective of this above this line, there is a dynamic that the market expects of performance throughout the year, and in the TRI to TRI, when we look at the comparison, it was flat. There is a quality issue that I know you have already tangenced in your initial comment, But I would like us to go a little deeper. Detail your vision of the dynamics of results by the generation engine, by the perspective of the margin. What does the CFO see of the financial margin of Banco do Brasil and the expectation for us over the year?