Banco do Brasil Profit Misses Estimates on Higher Provisions
- Bank set aside 40% more money to cover souring loans
- One-time tax gain used as extra provision, ROE forecast cut
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Banco do Brasil SA, Latin America’s largest lender by assets, reported third-quarter profit that missed analysts’ estimates, hurt by higher provisions for bad loans as a recession shows signs of deepening. Its shares declined as much as 3 percent.
Adjusted net income, which excludes one-time charges, dropped to 2.88 billion reais ($754 million) from 2.89 billion reais a year earlier, the Brasilia-based company said Thursday in a filing. That missed the 3 billion-real estimate of seven analysts surveyed by Bloomberg. Net income climbed 10 percent to 3.06 billion reais.