Banco do Brasil Shares Fall on Profit Tumble, Provision Surge
- Brazil’s biggest bank increased set-aside for bad loans 62%
- Follows Itau, Bradesco in missing analysts’ estimates
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Banco do Brasil SA fell as much as 5.6 percent after first-quarter profit tumbled and provisions for bad loans surged, following Itau Unibanco Holding SA and Banco Bradesco SA in missing earnings estimates as Brazilian banks struggle through the worst recession in a century.
The bank, Latin America’s largest by assets, set aside 9.15 billion reais ($2.62 billion) for bad loans, up from 5.65 billion reais a year earlier, according to a regulatory filing Thursday. The increase was for a specific customer in the oil and gas industry, which the Brasilia-based company didn’t identify. Earnings adjusted for one-time items slid almost 60 percent.