• Categories
  • Archives

Brazilian Development Bank’s Profit Falls US$ 383 Million

The Brazilian National Bank of Economic and Social Development (BNDES) posted a net profit of 702 million reais (US$ 383 million) in the first half this year, representing a decrease of 83% in comparison with the same period last year, according to information just disclosed by the BNDES.

The reduction in results of share ownership, which went down from 4.8 billion reais (US$ 2.6 billion) in the first six months of 2008 to 1.3 billion reais (US$ 709 million) in the same period this year, was one of the main contributing factors to the reduction,

Unfavorable market conditions have contributed to the interruption of the stock selling process. According to a release issued by the BNDES, another factor that contributed to the negative result was increased spending on provisions for credit risk, which totaled 1.1 billion reais (US$ 600 million) in June this year, as against 400 million reais (US$ 218 million) in the same month of 2008.

Among the positive factors pointed out by the BNDES is the increase of 2.7 billion reais (US$ 1.4 billion) in gross revenues from financial intermediation in the first half, a figure that exceeded the 2.1 billion reais (US$ 1.1 billion) recorded from January to June last year.

The release issued by the Bank also highlights that the financial crisis has not yet affected the quality of the BNDES' portfolio. In June, 97% of companies funded by the institution had credit risk ratings ranging from AA to C.

In June, the Bank's net equity totaled 24.7 billion reais (US$ 13.4 billion), corresponding to 40.1 billion reais (US$ 21.8 billion) in reference equity, a result lower than the 42.5 billion reais (US$ 23.1 billion) recorded as of December 31st, 2008. The reduction took place as a consequence of the distribution of complementary dividends.



  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


You May Also Like

Brazilian Indians Want You to Help Them Halt Hydroelectric in Sacred Land

The Paranatinga II hydroelectric power station is being built in a sacred site for ...

Brazil Gets US$ 1 Billion from Inter-American Bank to Develop Tourism

The Inter-American Development Bank (IDB) is lending Brazilian states and municipalities US$ 1 billion ...

Only a New Attitude by EU and US Will Save WTO’s Doha Round, Says Brazil

Despite delays in the negotiations, the Brazilian government believes it is still possible to ...

Controllers Slowdown in Brazil May Bring US$ 19 Million Lawsuit by Airlines

The air transportation chaos that has been installed in Brazil the last few days ...

Brazil TAM Spends US$ 7 Billion in 46 New Airbuses

Brazil's flagship airline TAM announced that it has signed firm orders for purchase of ...

Brazilian Men Come on Top as the World’s Most Promiscuous

The September issue of British magazine Men’s Health decided to find the answer for ...

Brazil Puts Two Belgiums of Forests Under Protection.

Just one week after the excellent news about the Great Bear Rainforest comes another ...

US Buys 20 War Planes from Brazil for Flight Training and Reconnaissance in Afghanistan

Brazil’s aircraft manufacturer Embraer will sell its A-29 Super Tucano aircraft to the US ...

Enduring Scandal Drags Brazilian Stocks Down

Latin American markets were mostly weaker today, as Brazil posted a more meaningful decline ...

Brazil Fines Press for Political Interview Labeled as Propaganda

The reaction of Paris-based freedom-of-press organization Reporters Without Borders (RSF) to the news that ...