Brazil's Worsening Corporate Credit Crisis Hits Bank Profits
- Bradesco said to book $240 million loss for Sete Brasil
- Provision raises concern Itau, Banco do Brasil may be next
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Brazil’s worsening corporate credit crisis is forcing the nation’s biggest banks to book losses they had been able to avoid until now.
Banco Bradesco SA, the country’s second-biggest bank by market value, set aside 836 million reais ($240 million) in the first quarter to cover bad loans tied to oil-rig venture Sete Brasil Participacoes SA, a person with direct knowledge of the matter said Thursday, asking not to be identified discussing non-public information. Earnings fell 3.7 percent.