Banco do Brasil achieves record profit of BRL 26.1 bi

Banco do Brasil has set a profit record for the first nine months of the year. From January to September, the financial institution recorded a net profit of BRL 26.1 billion, marking a 14 percent increase compared to the same period last year.

The bank attributes this improvement in profits to the strong performance of its credit portfolio and investments in securities. Diversification of revenues, especially from services, and effective expense management have also contributed to this achievement.

The loan portfolio, for instance, reached BRL 1.07 trillion by the end of September, marking a 10 percent increase compared to September 2022 and a 2 percent rise compared to the end of the second quarter.

In the third quarter alone, the net profit amounted to BRL 8.8 billion, a 4.5 percent increase compared to the same quarter in 2022 and a 12.8 percent rise compared to the previous quarter. The return on equity reached 21.3 percent, a rate Banco do Brasil claims is comparable to that of private banks.

The default rate, considering arrears of more than 90 days, increased from 2.73 percent in June to 2.81 percent in September, reflecting rising interest rates but remaining below the national financial system's average of 3.5 percent, as reported by the bank.

Projections

Banco do Brasil maintains its projections for 2023. The estimated profit for the year ranges from BRL 33 billion to BRL 37 billion. Credit volume growth for this year is estimated between 9 percent and 13 percent. Revenues from services are expected to grow between 4 percent and 8 percent. Administrative expenses are projected to increase between 7 percent and 11 percent this year.