Revenue is dominated by non-interest income, but profitability is severely impaired by a structural net interest margin deficit of -0.8% and surging loan loss provisions that reached $12.9B in 2026Q2.
Brookfield Corporation (BN) annual income statement — 29-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Net Interest Income | -16.92B | -17.1B | -16.61B | -15.5B | -10.7B | -7.6B | -7.21B | -7.23B | -4.85B | -3.61B | -3.23B | -2.82B | -2.58B | -2.55B | -2.5B | -2.35B | -1.83B | -1.78B | -1.98B | -1.79B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| NII Growth % | -18.01% | -2.92% | -7.17% | -44.86% | -40.74% | -5.42% | 0.19% | -48.89% | -34.53% | -11.6% | -14.65% | -9.34% | -1.02% | -2.12% | -6.29% | -28.59% | -2.52% | 10.08% | -11.09% | - | - | - | - | - | - | - | - | - | - | - |
| Net Interest Margin % | -3.22% | -3.29% | -3.39% | -3.16% | -2.43% | -1.94% | -2.1% | -2.23% | -1.89% | -1.87% | -2.02% | -2.02% | -1.99% | -2.26% | -2.3% | -2.58% | -2.34% | -2.88% | -3.7% | -3.21% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Interest Income | 421M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 17.34B | 17.1B | 16.61B | 15.5B | 10.7B | 7.6B | 7.21B | 7.23B | 4.85B | 3.61B | 3.23B | 2.82B | 2.58B | 2.55B | 2.5B | 2.35B | 1.83B | 1.78B | 1.98B | 1.79B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 38.06B | 29.49B | 51.32B | 65.91B | 67.81B | 56.4B | 40.17B | 45.5B | 40.66B | 28.78B | 14.48B | 11.61B | 10.54B | 11.38B | 11.46B | 9.55B | 8.34B | 5.78B | 6.31B | 3.05B | 0 | 2.95B | 2.2B | 1.94B | 1.84B | 389.97M | 403M | 0 | 0 | 0 |
| Non-Interest Income | 77.35B | 76.13B | 86.01B | 95.92B | 92.77B | 75.73B | 62.75B | 67.83B | 56.77B | 40.79B | 24.41B | 19.91B | 18.36B | 20.09B | 18.77B | 15.92B | 13.62B | 12.08B | 12.91B | 9.34B | 6.9B | 5.22B | 3.9B | 3.37B | 3.06B | 771.94M | 811M | 980.94M | 1.05B | 1.19B |
| Non-Interest Income % | 128% | 128.97% | 123.94% | 119.28% | 113.04% | 111.16% | 112.99% | 111.93% | 109.35% | 109.7% | 115.27% | 116.5% | 116.34% | 114.56% | 115.37% | 117.33% | 115.51% | 117.32% | 118.16% | 123.63% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Total Net Revenue | 60.43B | 59.03B | 69.39B | 80.42B | 82.07B | 68.13B | 55.54B | 60.6B | 51.92B | 37.18B | 21.18B | 17.09B | 15.79B | 17.54B | 16.27B | 13.57B | 11.79B | 10.3B | 10.93B | 7.56B | 6.9B | 5.22B | 3.9B | 3.37B | 3.06B | 771.94M | 811M | 980.94M | 1.05B | 1.19B |
| Revenue Growth % | 1.83% | -14.93% | -13.72% | -2.01% | 20.46% | 22.67% | -8.35% | 16.72% | 39.64% | 75.55% | 23.9% | 8.29% | -10.01% | 7.83% | 19.88% | 15.05% | 14.53% | -5.74% | 44.57% | 9.57% | 32.13% | 33.88% | 15.7% | 10.27% | 295.89% | -4.82% | -17.32% | -6.16% | -12.08% | - |
| Non-Interest Expense | 157.56M | 7.76B | 76M | 69M | 122M | 116M | 5.89B | 4.97B | 3.21B | 2.44B | 2.11B | 1.8B | 1.59B | 1.61B | 1.42B | 1.07B | 1.31B | 1.66B | 1.73B | 1.57B | 600M | -2.58B | 460M | 237M | 175M | 31M | 37M | 387.58M | 520.12M | 447.56M |
| Efficiency Ratio | 0.26% | 13.14% | 0.11% | 0.09% | 0.15% | 0.17% | 10.61% | 8.21% | 6.18% | 6.56% | 9.97% | 10.54% | 10.09% | 9.16% | 8.74% | 7.9% | 11.1% | 16.16% | 15.83% | 20.72% | 8.7% | -49.35% | 11.8% | 7.03% | 5.73% | 4.02% | 4.56% | 39.51% | 49.76% | 37.65% |
| Operating Income | 22.21B | 21.78B | 17.99B | 14.45B | 14.14B | 11.62B | 9.47B | 10.12B | 8.05B | 5.96B | 4.58B | 3.68B | 3.65B | 4.56B | 3.38B | 2.94B | 2.15B | 2.85B | 2.89B | 2.94B | 6.3B | 4.85B | 1.24B | 1.2B | 1.04B | 350.97M | 371M | 593.36M | 525.15M | 741.27M |
| Operating Margin % | 36.76% | 36.89% | 25.93% | 17.96% | 17.22% | 17.05% | 17.06% | 16.71% | 15.5% | 16.03% | 21.63% | 21.52% | 23.14% | 25.99% | 20.8% | 21.69% | 18.21% | 27.68% | 26.43% | 38.94% | 91.3% | 92.84% | 31.85% | 35.55% | 33.9% | 45.47% | 45.75% | 60.49% | 50.24% | 62.35% |
| Operating Income Growth % | - | 21.02% | 24.56% | 2.19% | 21.7% | 22.6% | -6.42% | 25.83% | 35.05% | 30.06% | 24.52% | 0.71% | -19.86% | 34.69% | 14.98% | 37.01% | -24.66% | -1.25% | -1.9% | -53.26% | 29.94% | 290.18% | 3.67% | 15.64% | 195.18% | -5.4% | -37.47% | 12.99% | -29.16% | - |
| Pretax Income | 5.02B | 4.37B | 2.83B | 6.12B | 6.66B | 14.71B | 1.54B | 5.85B | 7.24B | 5.16B | 2.99B | 4.87B | 6.53B | 4.69B | 3.27B | 4.18B | 3.24B | 2B | 2.36B | 1.87B | 1.51B | 2.09B | 901M | 573M | 187M | 190.98M | 269M | 321.65M | 285.71M | 478.53M |
| Pretax Margin % | 8.3% | 7.4% | 4.09% | 7.6% | 8.12% | 21.59% | 2.78% | 9.65% | 13.95% | 13.89% | 14.13% | 28.46% | 41.38% | 26.73% | 20.13% | 30.82% | 27.45% | 19.37% | 21.57% | 24.78% | 21.97% | 40.02% | 23.11% | 17% | 6.12% | 24.74% | 33.17% | 32.79% | 27.33% | 40.25% |
| Income Tax | 1.34B | 1.14B | 982M | 1.01B | 1.47B | 2.32B | 837M | 495M | -248M | 613M | -345M | 196M | 1.32B | 845M | 519M | 508M | 43M | -24M | 461M | -88M | 345M | 427M | 346M | 165M | 104M | -4M | 10M | 29.97M | 16.1M | 44.96M |
| Effective Tax Rate % | 26.68% | 25.97% | 34.64% | 16.53% | 22.04% | 15.8% | 54.21% | 8.46% | -3.43% | 11.87% | -11.53% | 4.03% | 20.25% | 18.02% | 15.85% | 12.15% | 1.33% | -1.2% | 19.56% | -4.7% | 22.77% | 20.44% | 38.4% | 28.8% | 55.61% | -2.09% | 3.72% | 9.32% | 5.63% | 9.39% |
| Net Income | 1.42B | 1.31B | 641M | 1.13B | 2.06B | 3.97B | -134M | 2.81B | 3.58B | 1.46B | 1.65B | 2.34B | 3.11B | 2.12B | 1.38B | 1.96B | 1.45B | 454M | 649M | 787M | 1.17B | 1.66B | 555M | 408M | 83M | 194.98M | 432M | 291.68M | 269.62M | 433.57M |
| Net Margin % | 2.35% | 2.21% | 0.92% | 1.41% | 2.51% | 5.82% | -0.24% | 4.63% | 6.9% | 3.93% | 7.8% | 13.7% | 19.7% | 12.09% | 8.48% | 14.42% | 12.33% | 4.41% | 5.94% | 10.41% | 16.96% | 31.84% | 14.23% | 12.11% | 2.72% | 25.26% | 53.27% | 29.74% | 25.79% | 36.47% |
| Net Income Growth % | 68.53% | 103.9% | -43.27% | -45.04% | -48.16% | 3059.7% | -104.77% | -21.68% | 145.14% | -11.45% | -29.47% | -24.73% | 46.7% | 53.62% | -29.48% | 34.59% | 220.26% | -30.05% | -17.53% | -32.73% | -29.6% | 199.46% | 36.03% | 391.57% | -57.43% | -54.86% | 48.11% | 8.18% | -37.81% | - |
| Net Income (Continuing) | 3.68B | 3.23B | 1.85B | 5.11B | 5.2B | 12.39B | 707M | 5.35B | 7.49B | 4.55B | 3.34B | 4.67B | 5.21B | 3.84B | 2.75B | 3.67B | 3.19B | 2.02B | 1.9B | 1.96B | 1.17B | 1.66B | 555M | 408M | 83M | 194.98M | 259M | 291.68M | 269.62M | 433.57M |
| EPS (Diluted) | 0.60 | 0.50 | 0.21 | 0.41 | 0.79 | 1.59 | -0.09 | 1.15 | 1.51 | 0.59 | 0.69 | 1.01 | 1.39 | 0.93 | 0.59 | 0.85 | 0.69 | 0.21 | 0.30 | 0.37 | 0.56 | 0.81 | 0.27 | 0.17 | 0.04 | 0.09 | 0.21 | 0.13 | 0.12 | 0.21 |
| EPS Growth % | 88.79% | 141.94% | -49.18% | -48.74% | -50.21% | 1938.46% | -107.51% | -23.79% | 155.06% | -13.59% | -31.79% | -27.4% | 49.64% | 57.95% | -31.25% | 23.08% | 225% | -28.89% | -18.18% | -34.52% | -30.58% | 202.5% | 53.85% | 332.61% | -53.77% | -59.38% | 60% | 11.11% | -41.94% | - |
| EPS (Basic) | - | 0.52 | 0.21 | 0.41 | 0.81 | 1.65 | -0.08 | 1.18 | 1.54 | 0.61 | 0.70 | 1.03 | 1.42 | 0.95 | 0.60 | 0.89 | 0.71 | 0.21 | 0.31 | 0.37 | 0.58 | 0.83 | 0.27 | 0.17 | 0.04 | 0.09 | 0.21 | 0.13 | 0.12 | 0.21 |
| Diluted Shares Outstanding | 2.37B | 2.37B | 2.38B | 2.38B | 2.41B | 2.38B | 2.31B | 2.23B | 2.2B | 2.21B | 2.2B | 2.33B | 2.14B | 2.29B | 2.36B | 2.29B | 2.05B | 1.96B | 2B | 2.02B | 2.08B | 2.06B | 2.09B | 2.07B | 2.07B | 2B | 1.93B | 2.02B | 2.03B | 2.01B |
Quick answers to the most common questions about buying BN stock.
For fiscal year 2025, Brookfield Corporation (BN) reported total revenue of $59.03B. This represents a 4865.2% increase compared to $1.19B in 1997.
Brookfield Corporation (BN) is profitable, generating $1.31B in net income for the fiscal year ending 2025 with a net profit margin of 2.2%.
Brookfield Corporation (BN) reported an operating income of $21.78B, resulting in an operating profit margin of 36.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Brookfield Corporation (BN) generated $29.53B in gross profit for the year, representing a gross profit margin of 50.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent negative net interest income
Structural NII Drag from Funding Costs
Net interest income has been consistently negative for ten consecutive quarters, with the deficit widening to -$4.4B in 2026Q2, a -10.3% year-over-year deterioration as reported in the latest financial statements.
The persistent negative NII suggests the firm's cost of funding its massive balance sheet and non-recourse debt exceeds the yield on its asset portfolio, creating a structural earnings headwind. This dynamic is likely exacerbated by the high interest rate environment, which pressures the cost of capital for BN's capital-intensive model while asset yields may be slower to reprice. Investors should monitor whether this is a temporary cyclical phenomenon or a permanent feature of the firm's principal-investing strategy.
Net Margin Compression Amidst Revenue Decline
The net margin has compressed to a razor-thin 2.2% in 2026Q2, a significant deterioration from the 1.7% reported in the same period of the prior year, as per the company's income statement data.
This margin profile is fundamentally different from pure-play asset managers like Blackstone (22.7% net margin) and reflects BN's hybrid model where large-scale operational revenues are offset by substantial interest expense and provisions. The low net margin indicates that despite generating significant top-line revenue, the conversion to bottom-line profit is heavily constrained by the firm's cost of capital and credit provisioning, warranting close examination of the efficiency of its capital deployment.
Elevated Provisions Signal Credit Stress
Loan loss provisions surged to $12.9B in 2026Q2, representing a 67% increase from the $7.1B provisioned in 2025Q2, according to the quarterly financial data.
The sharp escalation in provisioning suggests management is anticipating or experiencing significant credit deterioration within its loan and investment portfolio, potentially linked to stress in commercial real estate or other cyclical holdings. This level of provisioning is consuming a substantial portion of operating income, directly impairing profitability and indicating that the firm's credit cycle may be turning more negative than previously anticipated. The trend warrants monitoring to determine if it reflects a one-time adjustment or a sustained increase in credit risk.
2026 Marks a Period of Earnings Normalization
The second quarter of 2026 shows a continued year-over-year revenue decline of -14.9% alongside a net margin of 2.2%, suggesting a potential cyclical trough in the Corporation's earnings power as noted in recent context.
This period appears to represent a critical inflection where the combined pressures of negative NII, elevated provisions, and declining non-interest income are converging to compress overall profitability. The divergence between a robust operating margin (36.9%) and a minimal net margin (2.2%) highlights that the core operations remain profitable, but the earnings are being absorbed by financing costs and credit losses. This inflection point may define the near-term trajectory for capital allocation and shareholder returns.
Earnings Quality Masked by IFRS Volatility
The reported net income of $354.8M in 2026Q2 is likely distorted by non-cash fair value movements on investment properties, a known IFRS accounting nuance that makes headline earnings an unreliable metric for this firm.
The most significant analytical challenge is that IFRS accounting requires marking investment properties to fair value through the income statement, creating substantial non-cash volatility that obscures underlying cash generation. Consequently, metrics like Distributable Earnings (DE) and Funds From Operations (FFO) are far more relevant for assessing true economic performance and dividend sustainability. The wide gap between operating income and net income, coupled with the low ROE (0.8%), suggests that reported earnings may not reflect the operational cash flow reality, requiring investors to look beyond the GAAP/IFRS bottom line.