Moreover, the bank has maintained a constrained capital structure that imposes additional obstacles to growth in the loan portfolio, despite the bank's low risk appetite. All of this has limited profitability, which ended 2023 at Brazilian real (R$) 12.4 million of annual net income, showing recovery from a loss of R$21.5 million in the first half of 2023, but down from yearly profit of R$18.3 million in 2022. According to central bank data, those constraints persisted in the first quarter of 2024, as the bank reported a loss of around R$17.8 million. The positive outlook reflects S&P Global Ratings' view that Fibra's revamped strategy could lead to an upgrade in the next 12 months. In our view, Fibra should keep
