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BANCO DO BRASIL: Adjusted Income Grows 47.1% In Q2 To R$ 2,649 Billion

(Agencia CMA Latam) - Banco do Brasil reported an adjusted net income of R$ 2.649 billion (US$ 839.91 million) in the second quarter of this year, a 47.1% increase compared to the same period of last year and in line with analysts forecasts.

The result does not include extraordinary effects. Without the adjustment, the net income would have increased 6.2% to R$ 2.619 billion.

The state-owned Brazilian bank result in the quarter was primarily influenced by the increase in fees and lower loan-loss provisions.

Banco do Brasil's loan portfolio totaled R$ 696.1 billion in the second quarter, a 7.6% decrease over the same period of 2016, but 1.07% higher compared to the first quarter of 2017.

Return on equity (ROE) was at 12.8%, 3.6 percentage points (pp) higher than a year earlier and 0.4 pp above the reading from the previous quarter. In adjusted terms, ROE stood at 10.7% from April to June, up 3 pp and 0.3 pp, respectively.

Banco do Brasil's loan-loss provisions totaled R$ 6.658 billion in the quarter and were 19.6% smaller than in the same period last year.

Meanwhile, Banco do Brasil's delinquency rates exceeded those observed in the Brazilian financial system. At the end of June, the index of operations overdue for more than 90 days represented 4.11% of the loan portfolio, higher than the figure recorded in the second quarter of 2016 (3.26%) and higher than in the previous quarter (3.89%). In the Brazilian financial system, the default rate was at 3.70% at the end of June.

by Agencia CMA Latam

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