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Bradesco Profit Rises 36% in Fourth Quarter on Loans

Summary of original article by Helder Marinho - Bloomberg

Banco Bradesco SA, Brazil’s second- largest bank by market value, said fourth-quarter profit rose 36 percent after increasing loans to consumers and companies.

Net income jumped to 2.18 billion reais ($1.17 billion) from 1.6 billion reais a year earlier, the Osasco, Brazil-based bank said today in a statement published on its Web page.

Bradesco’s loan portfolio expanded 6.8 percent to 228.1 billion reais, while total assets increased 11 percent to 506.2 billion reais. Bradesco expects its loan portfolio will grow as much as 25 percent this year and estimates Brazil’s economy will expand 6 percent.

“The end of the year was very good for retail banking,” Persio Nogueira, an analyst at Planner Corretora in Sao Paulo, said in a phone interview before Bradesco results were announced. “Default rates were falling and they managed to increase their portfolio relatively well.”

Nogueira is reviewing his rating of Bradesco shares. The analyst expects Brazilian bank shares to perform in line or “slightly above” the Bovespa stock index this year.

Bradesco rose 1.7 percent to 31.76 reais in Sao Paulo trading, while the Bovespa rose 0.8 percent.


 
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Presented by Real Trade: 1/29/2010




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