By Brazil Stock Guide – Brazil’s state-run development bank BNDES posted a record recurring profit of 15.2 billion reais ($3.0 billion) in 2025, driven by a sharp expansion in lending and asset growth, according to data released by the bank’s press office.
The result marked a 15.4% increase from 2024 and capped a three-year period of strong recovery, with recurring profit rising 86% compared with 2019-2021.
Total net income reached 26.8 billion reais, supported by gains in credit operations and treasury activities. The bank’s total assets climbed to a record 962.5 billion reais by the end of December, up 14.5% year-on-year and more than 40% higher than in 2022.
BNDES’s expanded credit portfolio, including loans, debentures and receivables, rose 13.4% to 663.6 billion reais, its highest level since 2016. The debenture portfolio alone reached a record 53.2 billion reais.
Credit demand remained strong throughout the year. Loan requests totaled 389.2 billion reais, approvals reached 237.9 billion reais and disbursements rose to 169.7 billion reais, up 27% from 2024. Over the 2023-2025 period, requests, approvals and disbursements increased 221%, 164% and 126%, respectively, compared with 2019-2021.
Micro, small and medium-sized enterprises accounted for 224 billion reais in approved credit in 2025, reflecting a 43% annual increase. Industry, agriculture and services all posted significant gains in financing volumes.
“The BNDES fosters about 1 billion reais in credit per day, a fantastic contribution that enables investment, innovation, modernization and decarbonization of the economy,” said President Aloizio Mercadante. “It also helps reduce structural inflation by increasing competitiveness and supply.”
Most disbursements are made at market rates, ensuring they do not undermine monetary policy, said Planning Director Nelson Barbosa. He also highlighted renewed activity in sustainability initiatives, including the Amazon Fund and Climate Fund, backed by increased Treasury support.
Innovation financing has expanded significantly, rising from 7.1 billion reais between 2019 and 2022 to 35.6 billion reais over the past three years, driven by government-backed programs. The share of innovation in total approvals increased from 2.7% to 7%.
BNDES reported a low default rate of 0.06%, well below Brazil’s financial system average. Its Basel capital ratio stood at 25.2%, more than double the regulatory minimum.
The bank’s equity rose to a record 172 billion reais, while free cash reached 61 billion reais, four times the level recorded in 2022. Funding sources were diversified through domestic issuances and external borrowings, including loans from multilateral institutions.
Income from equity holdings included dividends and returns from companies such as Petrobras (PETR4), JBS (JBSS3), Eletrobras (ELET3) and Copel (CPLE6), alongside gains from asset sales.