By André Romani
SAO PAULO (Reuters) – Brazilian state lender Banco do Brasil on Wednesday posted an 8.3% rise in its third-quarter adjusted net profit from a year earlier, while also saying it now expects higher loan loss provisions for this quarter. anus.
Banco do Brasil posted an adjusted net profit for the quarter ended in September of 9.5 billion reais ($1.6 billion), while analysts surveyed by LSEG expected a profit of 9.4 billion reais.
WHY IT IS IMPORTANT
Banco do Brasil is one of Latin America’s largest lenders by total assets.
IN NUMBERS
The lender’s return on equity, an indicator of profitability, stood at 21.1%, down from 21.3% a year earlier and 21.6% in the second quarter.
Banco do Brasil’s total loan portfolio increased 13% year-on-year to 1.2 trillion reais, while its delinquency rate for payments on loans overdue for more than 90 days was 3.3%, up from 3%. in the second quarter and 2.8% annually. earlier.
The firm also said it now expects to set aside more funds to cover unpaid loans, raising its full-year provision forecast to between 34 billion reais and 37 billion reais, up from its previous projection of 31 billion reais to 34 billion reais.
Provisions increased 34% in the third quarter.
The bank cut its estimated administrative spending for the year, now seeing it 5% to 7% higher than last year, below previously projected growth of 6% to 10%.
($1 = 5.8061 reais)
(Reporting by Andre Romani in Sao Paulo; Editing by Kylie Madry and Lisa Shumaker)