BNDES: 21% increase in profit in the third quarter – 11/17/2023 – Market

BNDES (National Bank for Economic and Social Development) had recurring net profit of R$2.9 billion in the third quarter of 2023, an increase of 21.3% compared to the same period last year, according to a balance released by the state institution this Friday Friday (17).

Recurring net profit disregards events considered to be one-offs, which do not tend to recur. “BNDES increased recurring results in its main activity, which is credit, financial intervention,” said Alexandre Abreu, the bank’s financial director.

Disbursements totaled R$34.8 billion in the third quarter of 2023, an increase of 18.4% compared to the same period in 2022. This indicator measures the bank’s transfers for investments in different sectors of the economy.

The Luiz Inácio Lula da Silva (PT) government sees the need to expand BNDES as a financier of large projects in the economy. To this end, the current management advocates a reduction in the level of transfers to the National Treasury, but there is a challenge on the horizon.

Such as Sheet showed, the technical area of ​​the TCU (Federal Audit Court) recommended the rejection of the BNDES request to review the schedule for returning transfers made by the Treasury in previous PT administrations.

The bank intends to divide into eight annual installments, until 2030, the R$22.6 billion that it has to return to the Union this year in one go.

The objective is to maintain cash resources to allow new loans to be granted without the risk of having to raise funds in the market, at a higher cost to the institution. The topic must still be analyzed by the TCU plenary.