Itaú BBA eyes 10% growth in its agronegócio credit portfolio in 2026 from its base at end-2025. Agro credit growth Brazil persists despite grain producer margin squeezes. Pedro Fernandes, the bank’s agribusiness manager, shared this outlook. He shared this outlook with Reuters.
Resilient Sectors Drive Expansion
Higher oil prices from the Iran conflict aid some producers. Fuel and fertiliser costs rise. Yet etanol makers from cane and corn gain. Petrobras may lift gasoline prices. This boosts biofuel use. Government biofuel mandates support the sector. Sugar and etanol sectors lead for Itaú BBA. Firms there hold strong cash after past high margins. They extended debts. Producers keep renewing canaviais for productivity.
Pecuária thrives too. Arroba bovina prices near records. China demands more beef. Café holds steady after peaks. Algodão recovers as oil lifts fibre values over synthetics. These segments show rentability. Producers invest on. Meanwhile, grain areas like soja face judicial recoveries. High leverage and rates hit them. Itaú BBA stays selective. It eyes M&A financing. Competitors pull back. This opens share gains.
Stability Amid Challenges
Delinquency rate on loan payments is expected to stay stable or decline. The bank tracks producers closely. It keeps guarantee terms. No strategy shift. Agro cycles bring chances in tough times, Fernandes said. The client base supports absolute growth like recent years. Sugar-etanol penetration rises.
Investors note Itaú BBA’s positioning. It captures agro credit growth Brazil amid rival caution. This lifts portfolio quality. Bank shares may draw on steady agro exposure. Watch etanol policy shifts and China beef demand. They shape 2026 returns.
