Investment in Brazil could rise as bank releases strong Q1 results
Date added: 28th April, 2010 at 15:41
(view all articles from April, 2010)
Categories: Economy
First quarter results from Banco Bradesco have beaten forecasts, which could increase sentiment in the stock market toward investment in Brazil.
The bank released its quarter one results today reporting a recurring profit of 2.5 billion reais (£800 million) up from 1.96 billion reais this time last year.
In a Reuters survey of 11 analysts, Banco Bradesco was forecast to make 2.03 billion reais in recurring profit.
According to the survey, other Brazilian banks are expected to release strong first-quarter results as well including the state-run Banco do Brasil and the country's largest private banks Itau Unibanco and Santander Brasil.
Credit Suisse analysts Marcelo Telles and Victor Schabbel said: "Brazilian banks should post healthy performance on the back of lower provisioning expenses driven by lower delinquency, strong net interest margins and lower operating expenses."
Brazilian banks have been assisted by a reduction in the amount of loan defaults which has allowed them to cut provisions.
During the fastest economic expansion the country has experienced for three years, the lenders have also prospered on an increasing demand for credit.
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