From the Newsroom
São Paulo – The Bank of Brazil posted net profit of 2.7 billion Brazilian real (US$ 1.5 billion) in the second quarter this year, representing growth of 15.9% over the first quarter of 2010, and of 16.1% over the same period of last year. Net profit reached 5.1 billion real (US$ 2.8 billion) in the first half, a figure 26.5% greater than in the same period of last year. The data were disclosed today (16th) in the city of São Paulo.
According to the president of the Bank of Brazil, Aldemir Bendine, the institution’s rising profit is partly due to a strategy adopted early last year that aims to unlock credit in the country, among other things. "Credit is our specialty and it is linked to growth in other segments and businesses, as a result of the Bank of Brazil’s increased efficiency."
By the end of the first half, the credit portfolio had reached 326.5 billion real (US$ 184 billion, growth of 29.3% over twelve months and of 6.9% quarter-on-quarter). The domestic credit portfolio grew by 28.2% in the annual comparison, and by 6.6% over the first quarter of 2010. The president of the Bank of Brazil informed that the expansion of the credit portfolio was due to increased credit to natural persons, which exceeded 101.1 billion real (US$ 57 billion) by the end of the second quarter (47.7% growth in the last twelve-month period and 6.3% quarter-on-quarter).
Bendine claimed that despite being a strategic move, the bank’s internationalization should not yet lead to significant results, even though the process had already begun with the bank’s entry into Argentina and South Africa.
"The bank’s profit from those [operations abroad] in the short-term is going to be timid or even inexpressive. I foretell, however, that in the future, when the large Brazilian conglomerates are operating strongly outside of the country, this figure might be 10% of the results of a large Brazilian bank," he finished off.
*Translated by Gabriel Pomerancblum