Economy

Banco do Brasil achieves BRL 17.3 bi profit in first semester

The yearly profit projection remained at BRL 33-37 bi

Wellton Máximo

Published on 10/08/2023 - 11:10

Agência Brasil - Brasília

Edifício sede do Banco do Brasil, em Brasília. — © Marcelo Camargo/Agência Brasil

Maintaining its annual profit projection within the range of BRL 33 billion to BRL 37 billion, Banco do Brasil has accomplished a remarkable feat in the initial six months of the year. The financial institution attained a net profit of BRL 17.3 billion from January to June, showcasing a surge of 19.5 percent when compared to the corresponding period in the prior year.

The bank attributed this surge in profits to multiple factors, notably the expansion of the credit portfolio crafted to mitigate default risks. Additionally, a diverse array of revenues, primarily stemming from services and a control over expenses played pivotal roles in this achievement.

By the conclusion of June, the extended credit portfolio had reached BRL 1.045 trillion, demonstrating an ascension of 13.6 percent in comparison to June 2022 and a further 1.2 percent escalation from the first quarter's closure. This expansion was achieved despite the Selic Rate (Brazil’s benchmark interest rate) remaining constant at 13.75 percent annually during the initial half of the year.

Banco do Brasil underscored that part of this improvement stems from the growth of credit alongside the sustained maintenance of a default rate below the National Financial System's average. The credit operations index with delays exceeding 90 days stood at 2.73 percent, lower than the average of the National Financial System.

Forecasts

Furthermore, Banco do Brasil has revised its projections for the ongoing year, maintaining its profit estimation within the bracket of BRL 33 billion to BRL 37 billion. The projected growth in credit volume for this year has been elevated from 8 percent to 12 percent to a range of 9 percent to 13 percent, while the anticipated growth in service revenue, once projected between 7 percent and 11 percent, has now been adjusted to a range of 4 percent to 8 percent. The forecast for administrative expenses remains unchanged, retaining an anticipated increase of 7 percent to 11 percent for the year.