Banco do Brasil Net Income Matches Estimates on Growing Lending
Adjusted net income, which excludes one-time charges, advanced to 2.69 billion reais ($1.32 billion) from 2.57 billion reais a year earlier, the Brasilia-based company said today in a filing. That was in line with the average estimate of 2.69 billion reais in a Bloomberg survey of nine analysts.
Banco do Brasil, led by Chief Executive Officer Aldemir Bendine, 48, increased its loan book to 532.3 billion reais in the third quarter, up 21 percent from a year earlier. The bank increased its share of Brazil’s credit market to 19.6 percent at the end of September from 19.5 percent in June and 19.3 percent a year earlier, according to the statement. It maintained its 2012 forecast for lending growth of 17 percent to 21 percent.
Federally controlled banks Banco do Brasil and Caixa Economica Federal have been boosting lending and reducing borrowing costs after President Dilma Rousseff urged lenders to cut profits to “civilized” levels. Non-government banks’ outstanding loans grew 7 percent in the 12 months through September, compared with almost 26 percent for state-controlled lenders, according to the central bank.
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