Rio de Janeiro – The Brazilian Development Bank (BNDES, in the Portuguese acronym) posted a net income of R$ 4.886 billion (US$ 2.093 billion) year-to-date through September this year, up 3.5% from R$ 4.722 billion (US$ 2,022 billion) in the same period in 2012. The figures have been disclosed this Thursday (14th) by the institution.
The BNDES press office has informed that results originating from financing to investment projects were the main contributing factor to the institution’s performance during the period.
“The expressive performance came amidst a process of reduction of spreads [the different between banks’ fundraising costs and the actual interest rate charged from loan-takers] charged by the BNDES on its financing lines, in keeping with federal government actions to stimulate productive investment and increase credit supply in a global scenario of uncertainty,” according to the bank.
The result per segment before discounting expenses was slightly higher than R$ 10 billion (US$ 4.28 billion). The fixed income segment accounted for 74,3% of the total amount, at R$ 7.428 billion (US$ 3,182 billion), up 8.7% from year-to-date through September 2012.
The insolvency rate as of September 30, 2013 was 0.02%. It is the lowest rate of the last five years, “despite uncertainties in the financial and capitals market,” and remains the lowest in Brazil’s financial sector, whose average rate was 3.3% in September 2013, according to Central Bank figures. According to BNDES, “the result reflects the solidity of the bank’s credit portfolio and disbursements.” As of December 2012, BNDES’ insolvency rate was 0.06%.
The BNDES System had R$ 60.33 billion (US$ 25.8 billion) in net assets in September, with R$ 102.86 billion (US$ 40 billion) in reference assets. The amount exceeds the R$ 96.02 billion (US$ 41.1 billion) from June 30 this year. BNDES technicians believe the increased net worth stems from the recovery of market value of stakes owned in subsidiary BNDES Participações (BNDESPar). The BNDES System had R$ 74.2 billion (US$ 31.7 billion) in total assets in September 30, 2013, up 2.2% from June 2013.
*Translated by Gabriel Pomerancblum
