Bradesco's Provisions for Bad Loans Surge 27%, Forecast Worsens
- Loan growth fell short of the bank's forecast for 2015
- Earnings rise 10% as higher interest rates boost margins
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Banco Bradesco SA, Latin America’s second-largest bank by market value, reported a 27 percent jump in provisions for bad loans in the fourth-quarter and said the total would rise again this year.
The set-aside for soured debt increased to 4.19 billion reais ($1 billion) in the fourth quarter from 3.31 billion reais a year earlier, Osasco, Brazil-based Bradesco said in a statement Thursday. Provisions will climb to between 16.5 billion reais and 18.5 billion reais this year from 15.2 billion reais in 2015, according to the bank’s forecast.