Rio de Janeiro – The Brazilian Development Bank (BNDES) posted BRL 6.711 billion in net profit in 2018, up 8.5% from 2017. Chairman Joaquim Levy highlighted equity portfolio results, which soared from BRL 5.1 billion in 2017 to BRL 9.9 billion in 2018.
“Results in 2018 point to two trends: on the one hand, you have our loan portfolio results, whose dynamic is less intense, and on the other you have our equity portfolio results, which have been stronger both due to incoming payments and to its inherent dynamism, especially in the second half of the year,” he said.
The positive equity results stemmed partly from profit from share sales, which went from BRL 3.6 billion to BRL 6.1 billion. Chief among these were sales of shares in Petrobras, at BRL 2.2 billion, and Vale, at BRL 2.6 billion. Although its stakes decreased, BNDES also profited from appreciation of its remaining shares in those two companies – at BRL 1.3 billion for Petrobras and BRL 790 million for Vale.
Total amount on loan from BNDES went from BRL 560 billion in December 2017 to BRL 520 billion in December 2018, reflecting weaker investments in Brazil and credit portfolio maturity, the bank reported.
Translated by Gabriel Pomerancblum
