BB’s profit jumps 62.7% in the third quarter, to R$ 8.36 billion

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BB (Banco do Brasil) announced this Wednesday (9) adjusted profit above market expectations and raised its 2022 forecasts for credit expansion and profitability.

The federally-controlled bank reported recurring earnings of R$8.36 billion between July and September, a 62.7% jump over a year earlier. The number also came above the average forecast of analysts consulted by Refinitiv, of R$ 7.359 billion for the period.

As a result, the bank revised its profit forecast for 2022, from a range between R$27 billion and R$30 billion to between R$30.5 billion and R$32.5 billion. In the nine months of this year, the bank recorded a profit of R$ 22.8 billion.

BB’s loan portfolio reached R$ 969.2 billion in September this year, a quarterly increase of 5.4% and 19% in the annual comparison.

From January to September of this year, the bank’s loan portfolio grew 20.5%, and the projection for the year’s evolution went from a range between 12% and 16% to between 15% and 17%.

The bank attributes the quarter’s results to the increase in the gross financial margin, which rose 14.7%, and the growth in service fees. It also mentions the expansion in results and interests in its subsidiaries, affiliates and joint ventures and the PCLD (Provision for Doubtful Accounts).

The individual portfolio stood at R$281.9 billion, up 2.7% in the quarter and 10.9% in the year, driven by the growth in payroll loans (+8.3), personal loans (+22.6 %) and credit card (+31.5%).

The corporate loan portfolio increased by 5.3% in the margin and 20.2% in 12 months, reaching R$354.8 billion. The highlight of the sector was working capital (+8.3%).

BB’s portfolio for agribusiness registered an increase of 9.1% in the quarterly comparison and 26.7% in the annual comparison, reaching R$ 286 billion. Costing operations, which grew 53.7% in 12 months, were the highlight in the category.

The bank’s default rate over 90 days, however, reached 2.34%, against 1.82% in September 2021 and 2% in June this year.

“Increasingly, we use data intelligence to support our strategic decisions. This has allowed us to build a sustainable relationship with our different customer profiles. As a result, our default rate remains below the average for the financial system”, says the BB director Fausto Ribeiro

With the numbers, BB’s RSPL (Return on Shareholders’ Equity), an indicator that measures the profitability of the financial institution’s operation, increased to 21.8% in the third quarter of 2022, against 14.3% in September 2021 and 2020. .6% in June this year.

Banco do Brasil is the third among the largest banks in the country to report third-quarter results and the first to register a jump in profit.

On October 26, Santander reported a profit of R$ 3.12 billion – a 28% decrease in the annual comparison.

This Tuesday (8), Bradesco surprised the market by disclosing that it had a profit of R$ 5.22 billion in the quarter, a drop of 22.8% compared to the same period in 2021. The result made the bank’s shares record their biggest drop since 1998, plummeting 17.38% and reaching R$ 15.35. The loss in market value was R$ 31 billion.

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