Bank of Brazil’s Net Profits Jump 73%

Banco do Brasil (Bank of Brazil) ended third quarter of 2005 with a net profit of R$ 1.4 billion, an increase of 72.7% compared to third quarter of 2004. In the year, the state-owned bank’s results totaled R$ 3.4 billion, 51.6% higher than the same period 2004.

The quarter’s results represented an annualized Return on Equity of 40.8% and earnings per share of R$ 1.80.

In the quarter, R$ 565 million was accounted free of tributes, from recovery of undue taxes. With that, the recurring result of third quarter of 2005 was R$ 873 million, which represents a Return on Equity of 23.5%.

The performance, which was below market’s consensus, is due to the increase in Income and Social Contribution Expenses, which were higher because of the effect of exchange rate variation and the fact that, in the third quarter there wasn’t the accounting of Interest on Equity that reduces those expenses.

The Individuals Loan Portfolio grew 3.6% in third quarter of 2005 and 15.0% in the past 12 months, raised by the strong increase in pay-roll operations, which grew 28.5% in the quarter and 174.3% in the past 12 months.

The Coverage Ratio (personnel expenses over service fees), until third quarter of 2005, reached 105.5%, against 98.4% in the same period last year. The Efficiency ratio, which measures the percentile of operational income over administrative expenses, came to 53.5%, against 56.7% in third quarter of 2004, both annualized.

The growing earnings and the increase in Shareholders’ Equity allowed the BIS ratio to be above the 11% demanded by the Brazilian Central Bank. At the end of the period, BB reached 17.4% for this ratio, compared to 15.7% in the same period 2004. The ratio allows BB to increase its Loan Portfolio by almost R$ 80.1 billion.

Banco do Brasil S.A. – www.bancodobrasil.com.br

Tags:

You May Also Like

New Zealand Leader Wants Brazil’s Petrobras Out After Deadly Explosion

Manu Caddie, a Gisborne District Councilor in New Zealand, has renewed his call for ...

Uruguayan President Tabare Vasquez

Brazil’s Lula Tries to Steal Bush’s Thunder in Uruguay

Brazilian president Luiz Inácio Lula da Silva will be arriving Monday for a one ...

A Brazilian Institution: Fresh Bread Every 20 Minutes

Brazil’s bakeries aren’t charging for fresh bread hot out of the oven. The government ...

Brazil’s Micro Credit Program a Hit. Default: 1.2%.

Within the scope of a new credit program for productive activities, in Brazil, established ...

Development with Justice, Job Number 1 in Brazil

Development will be Brazil’s battle cry for the next two years. According to the ...

Brazilian former president Fernando Henrique Cardoso

Brazil’s Cardoso Writes a Poison Pen Letter

When former President Fernando Henrique Cardoso’s memoirs, A Arte da Política, were published earlier ...

Jordan Holds Brazil in the Reconstruction of Iraq Fair

The Brazil in the Reconstruction of Iraq fair, which ended Wednesday, September 14,in the ...

Brazil Has Blocked Overseas US$ 300 Million Stolen from the Public Coffers

The Brazilian government hopes to recover around US$ 300 million that were transferred abroad ...

Brazil Starts to Fix Its Roads

Brazil’s Ministry of Transportation will immediately employ on road restoration US$ 581 million (1.5 ...

Brazil’s Rousseff Comes Out Swinging Against the Economist and in Defense of Lula

The president of Brazil, Dilma Rousseff, once again repeated she would not be influenced ...