Banco do Brasil's adjusted net income reached 8.79 billion reais ($1.79 billion) during the period, while analysts polled by Refinitiv expected 8.98 billion reais.
Loan-loss provisions were at 7.52 billion reais in the period, up 4.7% from the previous quarter and 66.4% higher than a year earlier.
Part of that growth was caused by the reclassification of debt from struggling retailer Americanas (AMER3.SA), Banco do Brasil said.
The bank's 90-day loan default ratio grew 0.8 percentage points compared to the previous quarter to 2.81%, still well below the delinquency level of its listed peers.
The company's interest income rose 21.1% from a year earlier to 23.68 billion reais, while analysts expected 23.28 billion reais.
Persons:
Leonardo Benassato, Peter Frontini, Anthony Esposito, Sandra Maler
Organizations:
Banco, REUTERS, SAO PAULO, Brasil SA, Americanas, Brasil, Thomson
Locations:
Brasil, Uberaba, Minas Gerais, Brazil