Banco Bradesco SA (BBDC4), Latin America’s second-biggest lender by market value, said fourth-quarter profit rose 10 percent, matching analysts’ estimates, as it set aside less money to cover loan losses.
Adjusted net income, which excludes one-time items, climbed to 3.2 billion reais ($1.3 billion) from 2.92 billion reais a year earlier, the Osasco, Brazil-based bank said in a statement today. That compares with the 3.17 billion-real estimate of nine analysts surveyed by Bloomberg.
Bradesco, led by Chief Executive Officer Luiz Carlos Trabuco Cappi, 62, has been more selective in providing credit to clients as it seeks to keep losses under control. Provisions declined 8 percent in the fourth quarter from a year earlier, while the book of loans expanded 11 percent, according to the earnings statement.
Bradesco dropped 21 percent in the past year through yesterday, compared with a similar decline for Brazil’s Ibovespa benchmark index.
The bank forecasts loans will grow 10 percent to 14 percent in 2014, according to the statement. Net interest income, the revenue from interest earned on assets compared with payments to depositors, will climb 6 percent to 10 percent, after 1.6 percent growth in 2013, Bradesco said.
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