Nov. 13 (Bloomberg) -- Brazilian stocks rose for a third day this week, led by financial companies, as higher-than-estimated profit from the country's biggest state-controlled bank eased concern the credit crisis had stalled lending growth.

Banco do Brasil SA advanced the most in a week after reporting a 37 percent jump in earnings last quarter. JBS SA, the world's biggest beef producer, led gains on the Bovespa index after Citigroup Inc. said the stock was cheap.

The Bovespa climbed 1.9 percent to 35,036.44 at 8:43 a.m. New York time. The BM&FBovespa Small Cap index rose 0.6 percent. The BM&FBovespa MidLarge Cap index gained 2.1 percent. Chile's Ipsa climbed 0.7 percent.

Banco do Brasil jumped 5.5 percent to 13.92 reais. Net income rose to 1.87 billion reais ($802 million) in the third quarter, from 1.36 billion reais a year earlier, the Brasilia- based bank said. Net income was higher than the 1.5 billion reais mean estimate of three analysts surveyed by Bloomberg.

The bank, which is in talks to buy Banco Nossa Caixa SA, saw its credit portfolio grew 35 percent in the quarter.

The government has introduced several measures to lessen the effects of the global credit crisis on the nation's banks including easing reserve requirements. Today, Brazil decided to allow banks to use government bonds instead of cash to meet certain reserve requirements that total 40 billion reais ($17.5 billion) in a bid to increase liquidity.

Banco Bradesco SA gained 4.2 percent to 22.67 reais.

JBS rose 7.2 percent to 4.03 reais. The beef exporter also had ``strong'' third-quarter earnings, Citigroup Inc. analyst Carlos Albano wrote in a note to clients, JBS posted its first profit in more than a year on Nov. 4. on rising exports from U.S. units and winning bets on the currency. Albano said he has a ``positive short-term outlook'' for JBS and Marfrig Frigorificos e Comercio de Alimentos SA, the world's fourth-biggest beef producer. Marfrig rose 3 percent to 9.05 reais.

To contact the reporters on this story: Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net.

Last Updated: November 13, 2008 09:08 EST