São Paulo – Bank ABC Brasil posted a net profit of R$ 55.1 million (US$ 27.1 million at current exchange rates) in quarter three 2012. The result of the Brazilian subsidiary of the Arab Banking Corporation remained stable compared with quarter two, when net profit stood at R$ 55 million (US$ 27 million). Compared with quarter three 2011, when the net profit stood at R$ 58.5 million (US$ ), the result was down 5.8%. The figures were released by the bank this Tuesday (30th).
The bank ascribes its latest result to increased revenues from clients, which compensated lower gains from net equity, stemming from Brazil’s lowered benchmark interest rate (Selic), and from increased allowance for doubtful accounts. Allowance is the capital which provides the bank with security in case of debt insolvency.
The bank’s expanded credit portfolio, which comprises the loan portfolio, guarantees given, and private bonds, closed quarter three this year with a R$ 14,884 billion (US$ 7,320 billion) surplus, which increased by 16.5% in the last twelve-month period.
Yearly return on net equity stood at 13.8% a year in quarter three 2012, down 0.4 percentage point from quarter two 2012 (14.2% a year) and 2.4 points from quarter three 2011 (16.2% a year).
According to a press statement released by ABC Brasil, fundraising remains the bank’s strongpoint. ABC Brasil reports that it keeps access to domestic and foreign markets in competitive conditions and with comfortable periods in relation to the profile of its assets. In the last 12-month period, the bank’s total fundraising was up 19%, and local fundraising was up 47% during the same period.
ABC
ABC has been active in Brazil for 22 years. Its main stakeholder is the Bahrain-based ABC, but the Brazilian arm is publicly traded on the São Paulo Stock Exchange (Bovespa). The institution specializes in medium and large companies, and operates in the corporate segment, i.e. companies with annual revenues higher than R$ 250 million (US$ 123 million), and the middle market segment, i.e. companies with annual revenues ranging from R$ 30 million (US$ 14.7 million) to R$ 250 million (US$ 122.9 million).
*Translated by Gabriel Pomerancblum
