https://ift.tt/KaMWsgo Do Brasil Projects 2022 Profit To Increase By 24% – Cryptovibes.com – Daily Cryptocurrency and FX News

Despite a slower loan book growth, Brazilian state-controlled lender Banco do Brasil SA (BBAS3.SA) said in a filing on February 14 that its net income this year is likely to rise by up to 23.7% compared with 2021.

Compared to 21 billion reais in 2021, Banco do Brasil forecast a recurring net income, which excludes one-off items, between 23 billion reais ($4.4 billion) and 26 billion reais this year.

With good asset quality, higher net interest income, and sales of financial services, the bank indicated it plans to ride out Brazil’s dim growth outlook.

Compared to 13.1 billion reais in 2021, loan-loss provisions were estimated between 13 billion reais and 16 billion reais. This year, analysts and experts say that little or no economic expansion is likely to be posted by Latin America’s biggest economy, hurting consumers and companies.

Mostly steered by consumer lending and rural loans, loan book growth is also expected to slow down to between 8% and 12%, compared to 19.1% in the past year.

Nevertheless, similar to predictions from brick-and-mortar banks such as Itau Unibanco Holding SA (ITUB4.SA) and Banco Bradesco SA (BBDC4.SA) last week, the bank also said it expects to post a 4% to 8% rise in fee income.

Operating costs are still likely to go up by a similar percentage, amid Brazil’s surging inflation. Banco do Brasil, in 2021, managed to post a rise of only 1.4% in expenses thus taming inflation.

Banco do Brasil, beating an average analyst estimate compiled by Refinitiv of 4.810 billion reais, posted a 60.5% jump in the fourth-quarter recurring net income from a year earlier to 5.900 bln reais.

Loan-loss provisions of 3.790 billion reais mainly helped profit, down 26.5% from a year earlier. Its 90-day default ratio stood, slightly down from the previous quarter, at 1.75%. From a year earlier, net interest profit – a measure of earnings on loans minus deposit cost – rose 4.5%, to 14.801 billion reais.

Up 2.3% from the previous quarter, its return on equity, a gauge of profitability, was 16.6%.

($1 = 5.2149 reais)