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.

    Anba

    Tags:

    • 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    Your email address will not be published.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.

    Ads

    You May Also Like

    Fab Four Resung

    "I Want to Hold Your Hand" was the track that amused me the most. ...

    Brazil Day, a New York Event to Lure US Capital

    New York will host this year’s third edition of Brazil Day. The event is ...

    Ethanol and gas in Brazil

    Brazil Ethanol Has Become too Expensive to Compete with Gasoline

    Brazil’s Única, the sugarcane grower and mill owner association, tells us that over the ...

    Nigeria Wants Brazil-Africa Summit

    Nigeria’s President, Olosegum Obasanjo, asked for President Luiz Inácio Lula da Silva’s support for ...

    The Koran translated into Portuguese

    Behind Free Koran Distribution in Brazil Is Islam’s Push to Win the Infidels

    According to an article published here in Brazzil, on June 1, 2006, free copies ...

    The Brazilian Experience

    Since 1990, Brazil has been made into a laboratory for disastrous economic recipes that ...

    President Chavez

    Despite Misgivings Brazil Ready to Welcome Chavez into Mercosur

    Brazil's Senate leader and former president José Sarney said that the Mercosur incorporation of ...

    Rob Curto's Forró for All

    A Brazilian Musical Celebration Finds Its New York Expression

    In Northeastern Brazil a forró party unites communities and generations, with couples dancing, locked ...

    Guido Mantega

    Two Consecutive Quarters of Shrinking Don’t Discourage Brazil Minister’s Rosy Forecast

    Brazil has fallen into recession, further weakening President Dilma Rousseff, just weeks before voting ...

    Blatter, Pelé, Dilma Rousseff

    Brazil President Promises FIFA There Will Be Beer at the Cup. But Congress Isn’t So Sure

    Joseph Blatter, the head of FIFA, after meeting with Brazilian president Dilma Rousseff, the ...