Bank of Brazil’s Net Income Up 46% to About US$ 3 Billion

A Banco do Brasil branch in Curitiba, Paraná, Brazil State-owned Banco do Brasil (BB), Brazil's biggest bank, and the largest by assets in all of Latin America, recorded net income of 6.044 billion reais (US$ 2.859) in 2006, an increase of 45.5% compared to the previous year.

According to Bank of Brazil, the result was mainly due to the growth of the loan portfolio, which surpassed the performance of the Brazilian banking system, and to the increase of 16.2% in service fees while administrative expenses grew only 4.6%.

The results correspond to a Return on Equity of 32.1% and earnings per share of 7.32 reais (US$ 3.46). In the fourth quarter of 2006 net profit was 1.2 billion reais (US$ 568 million), 69.4% higher than last year's 4th quarter..

In the year, Banco do Brasil distributed 2.4 billion reais (US$  1.13 billion) to shareholders – R$ 1 billion as Dividends and R$ 1.4 billion as Interest on Shareholders' Equity.

Also in 2006, Banco do Brasil was admitted into Bovespa's Novo Mercado, a segment for companies that adopt differentiated corporate governance practices, and celebrated 100 years of trading on stock exchanges. BB's shares appreciated 65.8% in 2006, while Ibovespa appreciated 32.9% (year basis).

Banco do Brasil's loan portfolio reached 133.2 billion reais (US$ 62.87 billion), a growth of 30.8% compared to 2005. The domestic loans portfolio grew 30.6% in the year, while the Brazilian banking industry increased 20.8%.

Loans to individuals backed by free funds increased 35.8%, 10.6 basis points higher than the Brazilian banking industry. Loans to businesses grew 34.8% in the period, and agribusiness loans increased 26.2%.

Tags:

You May Also Like

Brazil Reiterates Support for Venezuela

The head of Brazil’s Presidential Civilian Advisory Staff, Minister José Dirceu, met, yesterday, with ...

Brazil’s Lula Says No to Last Debate and Opponent Calls Him a Deserter

Those who bet that Brazilian President Luiz Inácio Lula da Silva would take part ...

Three Days of Rains Have Already Killed Over 50 in Rio

In Rio, Brazil, mudslides caused by heavy rains have killed at least 30 people ...

Brazil Criticizes US for Postponing Piracy Verdict

In a press release, April 4, Brazil’s Ministry of Foreign Relations made a comment ...

Brasí­lia Declaration Urges Nuclear-Free Zone for Middle East

Brazilian President Luiz Inácio Lula da Silva participated yesterday in the third and last ...

Brazilian Exports to the US Fall, But Grow 25 to the Middle East

Brazil exported in January the equivalent to US$ 9.271 billion, an increase in 24.5% ...

Press Association Accuses Brazil of Violating Press Freedom Standards

IAPA, he Inter American Press Association condemned a court ruling prohibiting one of the ...

UN Extends Mission in Haiti. Brazil Vows to Stay.

The UN Security Council has voted to extend its Stabilization Mission in Haiti (MINUSTAH), ...

Brazilian Officials and Exporters Discuss Red Tape and Other Nuisances

Brazil promotes today and tomorrow, November 22 and 23, the 27th National Foreign Trade ...

Pay-for-Vote Scandal: Brazilian House Absolves Two More

Since the beginning of the so-called "mensalão" (big monthly) crisis, in which there was ...