BB (Banco do Brasil) recorded adjusted net income of BRL 5.1 billion in the third quarter of 2021, according to a balance sheet released this Monday (8). The result represents an increase of 47.6% compared to the same period last year, and 2% compared to the immediately previous quarter.
“This good performance is explained by lower expenses with credit provisions, higher revenues, with growth in the gross financial margin and income from services rendered, and solid control of administrative expenses”, says the bank in the report.
In light of the results presented, the bank revised its projections for growth in adjusted net income in 2021, from a range between 17% and 20%, to something around 19% to 21%.
In the first nine months of 2021, BB recorded net income of R$ 15.1 billion, an increase of 48.1% compared to the same period in 2020, benefiting from the relative stability of expenses and the increase in service fees.
The institution’s credit portfolio reached BRL 814.2 billion in September, an increase of 11.4% on an annual basis, and 6.2% compared to June 2021, driven by the advance in segments such as individuals, with growth of 14.2% in the annual comparison, MSME, with a high of 24.6%, and agribusiness, with 18.5%.
Among individuals, payroll-deductible credit lines (+16.4%), personal loans (+40.1%) and credit cards (+41.3%) in the annual comparison made an important contribution to the positive performance. “Result of the strategy of changing the mix to more profitable lines”, informs BB.
In the case of small and medium-sized companies, disbursements of R$ 8.1 billion in the lines of Pronampe (National Program to Support Micro and Small Businesses) in the period contributed to the result.
The forecast for an increase in BB’s loan portfolio is now somewhere between 14% and 16% this year, against 8% to 12% previously.
Revenues from services rendered totaled R$7.3 billion, up 2.2% year-on-year, and 3.2% at the margin, with an emphasis on the performance of fund management (+9.9%), insurance, pension plan and capitalization (+6.0%) and consortia (+11.7%).
Administrative expenses, in turn, totaled R$7.83 billion, up 1% on an annual basis, and 0.7% at the margin.
The default rate for more than 90 days was 1.82%, against 2.43% a year ago, and 1.86% in June 2021.
Provisions for doubtful debts (PCLD) reached R$ 43.95 billion, an increase of 3.8% in the annual comparison, and of 2.7% compared to the second quarter of 2021.
“We revised our channel architecture, adding new formats of contact and service points, through proprietary structures or through partners, always aiming to offer the best convenience to the customer in an integrated manner with digital platforms”, points out BB.
According to the bank, in the last six years, approximately R$23.2 billion were invested in the intensive use of technology, integrating physical and digital channels.
X-ray | Bank of Brazil
Foundation 1808
Net profit no 3rd quarter of 2021 BRL 5.1 billion
Agencies 3.977
Employees 85.069
Mainly competitors Itaú Unibanco, Bradesco, Caixa Econômica Federal and Santander
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