BB (Banco do Brasil) recorded adjusted net income of R$ 5.9 billion in the fourth quarter of 2021, a growth of 60.5% compared to the same period of the previous year, according to a balance sheet released this Monday (14). ). Compared to the third quarter of 2021, profit advanced 15.4%.
In the last year, the financial institution had a record profit of R$ 21 billion, a growth of 51.4% compared to 2020.
For 2022, BB projects an adjusted net income of between R$23 billion and R$26 billion.
According to the bank, the result is explained by lower expenses with provisions (-40.2%), growth in the loan portfolio, increase in service fees and gross financial margin.
“We built the historic result of last year from the search for greater profitability, the quality management of the credit portfolio and the permanent control of expenses”, said Fausto Ribeiro, president of BB, in a note.
The state-owned loan portfolio ended December at R$ 874.9 billion, up 17.8% on an annual basis and 7.4% on a quarterly basis.
In line with private peers, the bank projects a slowdown in the growth rate of the portfolio this year, between 8% and 12%.
Among individuals, the increase in the loan portfolio was 4.5% compared to September, to R$ 265.6 billion. The result was influenced by the positive performance in fronts such as personal loans (6.4%) and credit cards (20.4%).
In the case of companies, the bank’s portfolio grew 7.7% on a quarterly basis, to R$ 317.8 billion.
In agribusiness, the portfolio grew 9.9% compared to September 2021, to R$ 248 billion, with emphasis on the 14.3% increase in the agricultural costing area and 22% in the sector’s investments.
“In recent years, agribusiness has been the sector of the economy with the greatest dynamism and resilience. Being the leader in this market guarantees us consistent revenues”, said the president of BB.
The bank’s default rate over 90 days ended last December at 1.75%, a drop of 0.15 percentage point compared to the same period in 2020 and 0.07 point compared to September 2021.
“Our credit portfolio is managed using analytical intelligence models, which allow for sustainable credit growth, even in higher risk lines. As a result, our default rate is below the financial system average” , said Ribeiro.
The PCLD (Provision for Doubtful Accounts) totaled R$ 3.79 billion in the fourth quarter, down 26.5% in the annual comparison and 3.4% in the quarterly comparison.
In 2021, the bank’s allowance for loan losses totaled BRL 13.1 billion, down 40.2%. For 2022, the bank projects a provision between R$13 billion and R$16 billion.
BB’s RSPL (Return on Shareholders’ Equity), an indicator that measures the profitability of the financial institution’s operation, increased to 15.8% in 2021, against 12% at the end of the previous year.
The bank approved the payment of approximately R$2.3 billion to shareholders in dividends and interest on equity, for the fourth quarter of 2021. The amounts paid will be based on the shareholding position on March 2nd.
X-RAY | BANK OF BRAZIL
Foundation 1808
Net profit in 2021 BRL 21 billion
agencies 3,979
Employees 84,597
Mainly competitors Itaú Unibanco, Bradesco, Santander and Caixa Econômica Federal
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