Jan. 31 (Bloomberg) -- Banco Santander Brasil SA, a unit of Spain’s biggest lender, climbed in Sao Paulo trading after the company said delinquency rates will improve in coming months.
The bank’s shares rose 0.8 percent to 14.65 reais, reversing a decline earlier today to an eight-week low. The benchmark Bovespa index advanced 0.7 percent.
Payments at least 90 days overdue rose to 5.5 percent in the fourth quarter from 4.5 percent a year earlier, Sao Paulo-based Santander Brasil said today. Oscar Herrero, vice president of risk management, told analysts on a conference call that the delinquency rate will improve at the end of the second quarter.
“The comments on lower delinquencies helped Santander’s shares, while its results were very weak,” Pedro Galdi, chief strategist at Sao Paulo-based brokerage SLW Corretora, said in an interview.
Parent Banco Santander SA posted a fourth-quarter profit today that trailed analysts’ estimates as the Madrid-based company set aside money for additional loan losses in its home market.
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