Banco do Brasil Profit Beats Estimates on Higher Interest Income
Adjusted net income, which excludes one-time charges, dropped to 2.61 billion reais ($1.1 billion) from 2.66 billion reais a year earlier, the Brasilia-based company said today in a filing. The results topped the 2.51 billion-real estimate of nine analysts surveyed by Bloomberg.
Banco do Brasil, led by Chief Executive Officer Aldemir Bendine, 49, stopped lowering interest rates it charges customers after the central bank raised the nation’s Selic benchmark rate in each of the past five monetary-policy meetings. Net interest income, or revenue from interest earned on assets compared with payments to depositors, increased 4.5 percent to 11.8 billion reais in the third quarter from a year earlier, according to the statement.
The lender’s stock has increased 9.7 percent this year, the best performance among banks in the Ibovespa benchmark index. That compares with a decline of 14 percent for the gauge.
Banco do Brasil’s loan book expanded 22.5 percent to 652.3 billion reais at the end of the third quarter from a year earlier, according to the statement. The bank lowered its estimate for net interest income growth to between 2 percent and 5 percent this year from 4 percent to 7 percent and said it expects lending growth of 17 percent to 21 percent.
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