Banrisul Tumbles to One-Month Low After Earnings Trail Estimates

Banco do Estado do Rio Grande do Sul SA, Brazil’s worst-performing financial stock in 2012, fell to a one-month low after reporting fourth-quarter earnings that missed forecasts.

Banrisul, as the bank is known, declined 3.1 percent to 16.20 reais at 2:54 p.m. in Sao Paulo, the biggest drop on the MSCI Brazil/Financials Index, which fell 1 percent. The benchmark Bovespa index retreated 0.7 percent.

The Porto Alegre, Brazil-based lender posted adjusted net income of 191.5 million reais ($97.7 million) in the fourth quarter, compared with the average forecast of 204.5 million reais, according to data compiled by Bloomberg. Banrisul said in a regulatory filing its delinquency rate for debt overdue more than 90 days was 2.93 percent in December, up from 2.38 percent a year earlier.

“Banrisul reported weak figures,” wrote Banco Bradesco SA analyst Carlos Firetti in a research note to clients published today. He cited an increase in unpaid loans by farmers that followed a drought in Banrisul’s home state of Rio Grande do Sul.

Shares have climbed 4.3 percent this year after tumbling 22 percent in 2012.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulos@bloomberg.net

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