Banco do Brasil reports lower profits in second quarter

Banco do Brasil, the largest state-owned financial institution in the country, reported net profit of $1,246 billion in the second quarter of 2014—62.1% down from the same period last year ($3,293 billion), and 5.6% up on the first quarter of 2014.

The shareholders’ payout amounted to $484 million—40% of the net profit.

The bank’s assets in June reached $617 billion, which represents a growth of 15.4% in 12 months and a 2.3% increase against the previous quarter. This rise was mostly driven by the expansion in the credit portfolio. According to Banco do Brasil, the bank is the number one institution by assets in the whole of Latin America.

The amplified credit portfolio, which includes bonds, securities and guarantees granted, rose to $316 billion in June, a growth of 12.5% in 12 months and 2.8% from the previous quarter. Property loans and credit for agribusiness also reported an increase: 84.5% and 23.7% respectively, in 12 months. During the period, Banco do Brasil took the lead in credit under the National Financial System, with a 21.3% participation rate in the market.

The total credit granted to companies closed out June at $147 billion—up 13.2% in the 12-month period, and 3.7% against the previous quarter.

Insolvency rate in operations overdue for more than 90 days answered to 1.99% of the credit portfolio. In the same period, the financial system ed 3%.

Translated by Fabrício Ferreira / Mayra Borges