Mon Apr 22, 2013 6:30am EDT
* Recurring profit rises 3.4 percent, missing poll estimate
* Profit rises in face of cuts in provisions, expenses
* Net interest margin falls for fourth straight quarter
By Guillermo Parra-Bernal
SAO PAULO, April 22 (Reuters) - Banco Bradesco SA's first-quarter earnings missed analyst estimates as efforts by Brazil's second-largest private-sector bank to cut bad loan provisions and expenses failed to offset declines in interest and fee income.
Earnings excluding one-time items, or recurring profit, rose 3.4 percent to 2.943 billion reais ($1.46 billion) from the fourth quarter of last year, Osasco, Brazil-based Bradesco said in a statement on Monday. A Thomson Reuters poll of 10 analysts showed an average estimate of 2.98 billion reais.
Revenue after average interest charged on loans fell for the fourth straight quarter, and new credit showed a slight expansion. The lender underwrote 17 percent less in insurance premiums, and revenue from financial services slipped 1.6 percent, in a sign that the industry is struggling to recover from two years of subpar economic growth.
Return on equity rose to 19.5 percent, the first increase in the indicator in four quarters. This beat the analysts' forecast of 17.1 percent.
Net interest margin, or the average interest rate Bradesco charges on loans, fell for the fourth straight quarter, to 7.2 percent due to a decline in market interest rates coupled with a change in the loan book mix, the bank said in the statement.
The drop indicates growing caution among private-sector lenders as Brazil's economy enters what could be the third consecutive year of below-trend growth. Bradesco is reining in disbursements in riskier segments like auto loans and focusing on mortgages and paycheck-deductible lending, areas where interest rates tend to be lower but defaults less likely.
Bradesco's loan book stood at 391.68 billion reais on March 31, up 1.6 percent on a quarterly basis, but a tad below the analysts' estimate of 392.4 billion reais. On an annual basis, lending rose 11.6 percent, below the lender's forecast of credit growth between 13 percent and 17 percent this year.
Interest income fell 1.6 percent, while income from trading of securities plummeted 54 percent from the prior quarter. Fee income, or revenue stemming from financial and wealth management advisory as well as nonlending financial services, dropped for the first quarter in seven.
Bradesco trimmed provisions for bad loans after defaults fell slightly in the quarter. Loans in arrears for 90 days or more, a benchmark measure of delinquencies, slid to 4 percent of Bradesco's total loan book from 4.1 percent in the fourth quarter and below analysts' estimates of 4.1 percent.
Provisions fell by 3.1 percent on a quarterly basis to 3.11 billion reais, their lowest since the last quarter of 2011, the bank said. Analysts had forecast 3.17 billion reais.
Management will discuss results in a conference call later in the day.
- Link this
- Share this
- Digg this
- Reprints
Anda sedang membaca artikel tentang
UPDATE 2-Brazil's Bradesco misses profit estimate as revenue declines
Dengan url
http://sarapannasiudak.blogspot.com/2013/04/update-2-brazils-bradesco-misses-profit.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
UPDATE 2-Brazil's Bradesco misses profit estimate as revenue declines
namun jangan lupa untuk meletakkan link
UPDATE 2-Brazil's Bradesco misses profit estimate as revenue declines
sebagai sumbernya
0 komentar:
Posting Komentar