Bank of Brazil Posts Record Profits of Over US$ 2 Billion

Banco do Brasil - Bank of Brazil State-owned Banco do Brasil (Bank of Brazil) posted a net profit of 1.4 billion Brazilian reais (US$ 789.1 million) in the third quarter of this year. The amount was 50% greater than recorded in the same period of last year, and 27.7% greater than posted in the previous quarter.

In the first nine months of the year, accumulated profit stood at 3.8 billion reais (US$ 2.1 billion).

According to a press release issued by the institution, the main factors that boosted performance were the restructuring of the health insurance plan managed by the bank, the anticipated retirement plan for long-time employees, as well as the growth in the bank's credit portfolio, among others.

BB's credit portfolio in the country grew by 27.5% in September of this year compared with September 2006, to reach 137,6 billion reais (US$ 77.5 billion).

The credit portfolio for micro and small companies reached 22.3 billion reais (US$ 12.5 billion), a 32.9% growth. The agribusiness portfolio recorded a surplus of 48.4 billion reais (US$ 27.2 billion) in the first half of the year, an increase of 20.2%.

Revenues from services totaled 2.5 billion reais (US$ 1.4 billion) in the quarter, a 10.9% growth in a 12-month period. The result is explained by the increase in the customer base – which reached 25.2 million account holders – and by the credit portfolio expansion.

The credit portfolio for foreign trade ended the quarter with a surplus of 12.1 billion reais (US$ 6.8 billion), a 14.6% rise over September 2006. The Bank negotiated US$ 12.6 billion in exports exchange contracts, 20.2% more than in the same period of last year.

Anba

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