Brazil Banking Sector Report 2025-2026

In 2024, Brazil's banking sector navigated a challenging yet rewarding year, delivering strong financial results amid a backdrop of high interest rates and renewed monetary tightening. The sector reported a net income of approximately BRL 327bn, the highest level of profitability in the past decade. This performance was underpinned by a robust 11.5% y/y expansion in the outstanding loan portfolio, an acceleration from the 8.1% growth recorded in 2023, driven primarily by a sharp 12.6% y/y increase in household credit. Total financing volume reached BRL 6.46tn by year-end. Corporate lending also gained momentum, growing at a solid 9.9% y/y, more than double the 4.7% growth seen in 2023. Notably, this acceleration in credit activity occurred despite the Central Bank of Brazil resuming interest rate hikes in the final quarter of 2024 in response to mounting inflationary pressures. Remarkably, the sector's credit expansion coincided with an improvement in asset quality. The overall non-performing loan (NPL) ratio declined by 0.2 percentage points to 3.2% by the end of 2024, driven by a 0.3pp drop in the household NPL ratio to 3.7%. This trend underscores the sector's prudent credit risk management throughout the year.

This report provides a complete and detailed analysis of the "Banking" sector for Brazil. EMIS Insights presents in-depth business intelligence in a standard format across countries and regions, providing a balanced mix between analysis and data.

What this report allows you to do:

• Understand the key elements at play in the "Banking" sector in Brazil
• Crystallise the forces both driving and restraining this sector in Brazil
• Ascertain Brazil’s position in the global sector
• Build a complete perspective on sector trade, investment and employment
• Understand the competitive landscape and who the major players are
• View M&A activity and major deals
• Gain an understanding of the regulatory environment for the sector in Brazil.
• Build a clear picture of trends, output and consumption for specific sub-sectors