BB’s profit grows 30% and adds up to R$ 8.5 billion in the 1st quarter – 05/15/2023 – Market

BB (Banco do Brasil) recorded a net profit of R$ 8.5 billion in the first quarter, which corresponds to an increase of 28.9% compared to the same period last year, according to a balance sheet released this Monday ( 15).

The result was in line with the expectations of market analysts, who projected a profit of R$ 8.46 billion.

“The result translates into the responsible growth of the credit portfolio, with positive performance in all segments, by the bad debt under control and by the focus on revenue diversification and cost control”, says BB.

In comparison with the fourth quarter of 2022, the public bank’s profit decreased by 5.4%.

BB’s expanded loan portfolio reached R$1.03 trillion in March, an increase of 16.8% year on year and 2.7% at the margin.

The broad portfolio of individuals grew 3.6% in the quarter and 11.7% in 12 months, to R$300 billion, influenced by the performance of payroll loans (+3% in the quarter and +9.6% in 12 months) and credit cards (-0.6% in the quarter and +13.2% in 12 months).

The expanded corporate portfolio grew by 1% on a quarterly basis and 12.7% in 12 months, reaching R$ 362 billion, with emphasis on the Micro, Small and Medium Enterprises (MSMEs) portfolio with an increase of 3. 4% in the quarter and 24.2% in 12 months.

In agribusiness, the portfolio reached a balance of R$ 322.5 billion, a quarterly growth of 4.1% and annual growth of 26.7%, with emphasis on costing operations (+4.2% in the quarter and +45 .6% in 12 months) and investment (+7.6% in the quarter and +49.8% in 12 months). “BB remains the disbursement leader in the 2022/2023 harvest plan, with a 30% growth compared to the previous harvest, reaching R$ 148.4 billion.”

The default rate over 90 days, in turn, increased to 2.62%, against 2.51% in March 2022 and 1.89% in December.

PCLD (Provision for Loan Losses), a cushion against possible defaults, totaled BRL 5.856 billion and increased 112.3% compared to the first quarter of last year, having fallen 10.4% compared to the last quarter of 2022.

According to BB, the increase in PCLD on an annual basis reflects corporate changes in the shareholding control of a specific client in the “Large Corporate” segment of the agroindustrial sector that had the judicial recovery process approved in 2019. The bank does not inform which company is which refers.

Service revenues totaled R$8.1 billion, down 3.6% compared to the previous quarter, impacted by the quarter’s seasonality. In relation to the same period of the previous year, the growth of 8.1% was influenced mainly by the performance in the insurance, pension plan and capitalization commission lines (+10.7%); income from cards (+20.4%); and fund management (+4.9%).

In addition, administrative expenses totaled R$ 8.7 billion, down 2.5% compared to the previous quarter and up 6.1% year-on-year, impacted by the 8% salary increase granted to bank employees in a collective agreement job in september 2022

As a result of the figures presented, BB’s RSPL (Return on Equity), an indicator that measures the profitability of the financial institution’s operation, increased to 21% in March, against 18.2% in March 2022 and 23% in December .

X-RAY | BANK OF BRAZIL

Foundation: 1808
Net income in the 1st quarter of 2023: BRL 8.5 billion
Agencies: 3,980
Employees: 85,457
Mainly competitors: Itaú Unibanco, Bradesco, Santander and Caixa Econômica Federal