Brazil's Bradesco profit beats estimates on lower provisions
SAO PAULO, May 4 (Reuters) - Banco Bradesco SA BBDC4.SA , Brazil's second-biggest private lender, on Tuesday posted a 73.6% rise in first-quarter profit, beating estimates, as provisions for bad loans and costs both fell.
Recurring net income, which excludes one-off items, rose to 6.515 billion reais ($1.20 billion), beating a consensus estimate of 6.019 billion reais compiled by Refinitiv.
Profit was boosted by a a 41.8% drop in loan-loss provisions. Chief Executive Octavio de Lazari had said in February that 2021 would be a "year of recovery," after the bank last year added 9.1 billion reais on top of its normal provisioning to deal with potential losses from the pandemic.
Bradesco also kept a tight grip on costs. Operating expenses fell 4.7% from a year earlier, as the bank closed 1,088 branches and slashed headcount by more than 8,500 people.
Its recurring return on equity, a gauge of profitability, rose to 18.7%, up 7 percentage points from a year ago.
Bradesco's loan book grew by 2.6% from the fourth quarter, while its 90-day default ratio rose to 2.5% from 2.2%. ($1 = 5.4445 reais)
Reporting by Carolina Mandl; Editing by Christian Plumb
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.