Bradesco’s Net Income Misses Estimates as Credit Expansion Slows
Banco Bradesco SA, Latin America’s No. 2 bank by market value, said second-quarter profit rose 4 percent, missing analysts’ estimates as loan growth slowed and expenses increased.
Adjusted net income, which excludes one-time items, climbed to 2.98 billion reais ($1.33 billion) from 2.87 billion reais a year earlier, the Osasco, Brazil-based lender said in a statement today. That missed the 3.07 billion-real estimate of six analysts in a Bloomberg survey.
Lending at Bradesco, led by Chief Executive Officer Luiz Carlos Trabuco Cappi, has slowed as Brazil’s economic growth cooled. The nation’s economic activity index fell 1.4 percent in May, the biggest decline since December 2008, and economists have cut their growth estimate nine straight times, according to the latest central-bank survey.
Lending increased 10 percent to 402.5 billion reais, down from a 14 percent expansion a year earlier and 12 percent in the previous three months. Bradesco cut its 2013 estimated range for loan growth to 11 percent to 15 percent, from 13 percent to 17 percent, according to the statement. Administrative and personnel expenses rose 4.3 percent to 6.77 billion reais in the second quarter from a year earlier.
Bradesco fell 13 percent this year, compared with a decline of 6.7 percent for Itau Unibanco Holding SA, Latin America’s No. 1 lender by market value.