Banco do Brasil Posts Weakest Profit Since 2020 on New Rules

Banco do Brasil SA posted its smallest profit in almost five years and cut its dividend payout ratio after accounting changes forced the state-controlled lender to boost provisions for loan losses.

The bank’s adjusted earnings fell 60% year-over-year in the second quarter, according to a statement Thursday. It also lowered its dividend payout ratio to 30%, from a previous range of 40% to 45%, the first time it’s cut that metric in five years.