Bank of Brazil’s Net Profits Jump 73%

Banco do Brasil (Bank of Brazil) ended third quarter of 2005 with a net profit of R$ 1.4 billion, an increase of 72.7% compared to third quarter of 2004. In the year, the state-owned bank’s results totaled R$ 3.4 billion, 51.6% higher than the same period 2004.

The quarter’s results represented an annualized Return on Equity of 40.8% and earnings per share of R$ 1.80.

In the quarter, R$ 565 million was accounted free of tributes, from recovery of undue taxes. With that, the recurring result of third quarter of 2005 was R$ 873 million, which represents a Return on Equity of 23.5%.

The performance, which was below market’s consensus, is due to the increase in Income and Social Contribution Expenses, which were higher because of the effect of exchange rate variation and the fact that, in the third quarter there wasn’t the accounting of Interest on Equity that reduces those expenses.

The Individuals Loan Portfolio grew 3.6% in third quarter of 2005 and 15.0% in the past 12 months, raised by the strong increase in pay-roll operations, which grew 28.5% in the quarter and 174.3% in the past 12 months.

The Coverage Ratio (personnel expenses over service fees), until third quarter of 2005, reached 105.5%, against 98.4% in the same period last year. The Efficiency ratio, which measures the percentile of operational income over administrative expenses, came to 53.5%, against 56.7% in third quarter of 2004, both annualized.

The growing earnings and the increase in Shareholders’ Equity allowed the BIS ratio to be above the 11% demanded by the Brazilian Central Bank. At the end of the period, BB reached 17.4% for this ratio, compared to 15.7% in the same period 2004. The ratio allows BB to increase its Loan Portfolio by almost R$ 80.1 billion.

Banco do Brasil S.A. – www.bancodobrasil.com.br

Tags:

You May Also Like

Brazil’s Small Fish Farmers Have Big Plans for the Arapaima

Brazilian small fish farmers from the Pará state are preparing to increase production of ...

Boeing B777-300ER from Brazilian TAM

Brazil’s TAM Doubles Its Boeing Fleet to 8 B777-300ERs

Brazilian airline TAM announced the acquisition of four additional new Boeing 777-300ERs. With this ...

Tit for Tat: Brazil Fights Back and Sends 8 Spaniards Back Home

Immigration officials in Brazil turned back eight Spanish tourists this Friday, March 8, a ...

Brazil Might Enjoy European Living Standard If It Had Kept Growing as in the 60s and 70s

The biggest economic question facing Brazil, as for most developing countries, is when it ...

Brazilian Shoe Exports Are Down 20 Million Pairs. Thousands Protest in Brasí­lia

Three thousand representatives of the Brazilian leather and footwear sector were in BrasÀ­lia to ...

Brazil’s Odebrecht Gathers People from 31 Countries for Its Libyan Project

Brazilian contractor Odebrecht, aside from know-how, material, equipment, and machinery, had to bring to ...

Brazil Still Ambivalent on Adopting Genetically Modified Crops

Brazilian legislation permits the cultivation of one type of genetically modified (GM) soy and ...

Brazilian Farmers Going Through Massive Losses

According to the vice president of the Federation of Agriculture in the state of ...

Brazil Is in Doha, Qatar, for UN Conference on Financing for Development

Brazil will be participating in the Follow-up International Conference on Financing for Development to ...

Brazil’s Cattle Industry Shaken by Plant Closures

The fourth largest Brazilian exporter of beef has halted slaughtering operations at all 11 ...