• Categories
  • Archives

Bank of Brazil Back to Number 1 with US$ 2.1 Billion Profit

Bank of Brazil's headquarter in BrasÀ­lia State-owned Bank of Brazil announced that it has regained market leadership, after posting a net profit of 4 billion reais (US$ 2.1 billion) in the first half of 2009, representing growth of 0.6% in comparison with the same period last year.

In the second quarter, the bank posted profit of 2.3 billion reais (US$ 1.2 billion), growth of 41% over the first quarter of 2009 and 42.8% higher than in the second quarter of 2008. The bank had lost its leadership to Itaú Unibanco, when Itaú and Unibanco consolidated their operations last year.

According to the chairman of the Bank of Brazil, Aldemir Bendini, the result is a consequence of credit expansion, given that total financial revenues reached 31.3 billion reais (US$ 17 billion) in the first half (41.7% higher than in the same period last year).

From that total, 19.1 billion reais (US$ 10.4 billion) resulted from credit operations, 32.5% more than in the first half of 2008.

The figures indicate that the supply of credit to natural persons increased by approximately 70% over the course of 12 months, having totaled 68.5 billion reais (US$ 37.3 billion). Lines of credit to consumers, the highlight being consigned credit, totaled 29.5 billion reais (US$ 16 billion), equivalent to a market share of 32.6%.

With regard to real estate credit, the Bank of Brazil financed 1.1 billion reais (US$ 600 million). Credit granted to companies totaled 103.3 billion, representing growth of 32% over the 12-month period. The portfolio of financing for agribusiness totaled 67.6 billion reais (US$ 36.8 billion), growth of 9.7% in 12 months. The figure is equivalent to 62.7% of total credit for agribusiness in the country.

To Bendini, the bank was right not being intimidated by the scarcity of credit on the market, and thus it collaborated to unlock credit in the country. Thus, the Bank of Brazil played an inducing role to the economy and development, and also induced the remaining banks, in the opinion of its chairman.

"The Bank of Brazil adopted a correct strategy by giving the country the benefit of doubt, by promoting the unlocking of credit with responsibility, in accordance with best banking practices." Bendini said that according to estimates, credit should grow from 13% to 17% in 2009.

According to him, the Bank of Brazil's insolvency rate, which is 3.3% for operations expired more than 90 days ago, is lower than the rate recorded by the National Financial System (SFN), which was 4.4% during the period.

"The trend is for insolvency to decrease. We believe that there will be a slight reduction in the third quarter, and a stronger one in the fourth, ending the year with a very expressive reduction," estimated Bendini.

Anba

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil Invites World to Make Tourism Money in the Northeast

It ends today, May 30, in the northeastern Brazilian state of Pernambuco the Nordeste ...

Jambalaying in Rio

Introducing the Jambalaya Jazz Festival taking place in Rio de Janeiro, Brazil, November 6 ...

Brazilian Imports from Arabs Jump 68% While Exports Grow 35%

Brazilian exports to the Arab countries totaled US$ 1.23 billion in the first two ...

Memories from Brazil: Once Upon the Amazon

“No way will that building be a grain warehouse,” Charlie said as he walked ...

Brazil Steel Production Has Record Year with 10% Growth

According to estimates by the Brazilian Iron and Steel Sector Association (IBS) Brazil's steel ...

Brazil’s New Definition of Foreign Aggression Bullies Neighbor Countries

The Brazilian government has sent a strong message to those (restless) neighbors that could ...

Crack Down Works. Brazil Cuts Amazon Deforestation by 30%.

Some good news from Brazil’s Amazon: only 18,900 square kilometers of forest were cut ...

News of Lula’s Waning Popularity Depresses Brazil Stocks

Latin American markets drifted lower for the most part, due to weakness in the ...

Brazil Gets New Cabinet Chief. She Is Dilma Rousseff.

Brazil’s Minister of Mines and Energy, Dilma Rousseff, has been appointed presidential chief of ...

Over 600,000 Americans Visited Brazil in 2010. Only Argentineans Beat That

Brazil’s Ministry of Tourism and the Brazilian Tourism Institute (Embratur) disclosed on Monday, October ...