BNDES profits R$11.3 billion in the third quarter and announces dividends

The BNDES (National Bank for Economic and Social Development) recorded a profit of R$ 11.3 billion in the third quarter, an increase of 29% compared to the same period of the previous year. The result was mainly driven by the reversal of losses on Petrobras shares.

In the year, the BNDES accumulates a profit of R$ 26.4 billion, an increase of 93% compared to the same period in 2020, with a strong impact from the sale of shares in companies such as Petrobras, Vale and Klabin. The bank announced the distribution of R$8.6 billion referring to first-half profit.

The main impact on the quarter’s earnings was a reversal of R$5.5 billion in estimated losses from its stake in Petrobras, which had been provisioned for between 2014 and 2016, after the start of Operation Lava Jato.

According to the bank’s Financial Director, Bianca Nasser, the decision to reverse the provisions was taken given the improvement in the company’s finances, the strength of its strategy and the permanence of shares at higher levels in recent years.

The bank also benefited from R$1.7 billion in dividends distributed by the state-owned company and R$1.8 billion in equity income from the profit of the JBS slaughterhouse. Without considering extraordinary events, the BNDES’ recurring profit was R$5.2 billion, 121% above the same period of the previous year.

The high profits in 2021 are the result of a policy to reduce the stock portfolio accumulated during PT’s administrations, under the argument that the volatility of the capital market brings risk to the bank’s balance sheet.

In the year, the result of the sale of shares totaled R$ 24 billion. At the end of the third quarter, the bank’s equity portfolio totaled R$ 67.8 billion, practically the same level as the previous quarter, as there were no significant sales.

The bank’s credit portfolio grew 1.8% compared to the previous quarter, to R$446.3 billion. Disbursements of resources grew 74%, to R$ 21.8 billion. Of this total, 43.8% went to micro, small and medium-sized companies.

Nasser says that disbursement prospects for the end of the year are positive, but he recalled that in 2020 the bank released a large volume of resources for programs to support companies affected by the pandemic.

This year, the BNDES has already transferred R$ 84.5 billion to the Treasury, between early settlements and payment of installments of loans granted in PT management, dividends and taxes. The R$8.6 billion in dividends announced on Thursday (11) will be paid on the 17th.