Brazilian state lender Banco do Brasil SA (OTC:BDORY) on Wednesday hiked its full-year profit outlook on the back of bigger-than-expected quarterly earnings, helped by higher interest income on a bigger loan book.
Over the third quarter, its loan book grew 19% over the same period last year to 969.2 billion reais.
It set aside 4.52 billion reais in loan-loss provisions, up 15.1% from a year earlier, while its 90-day default ratio was at 2.3%, or 0.3 percentage point above the previous quarter.
Return on equity, which measures profitability, was 20.5%, up 1 percentage point from the previous quarter.
Analysts at Citi praised the lender's "strong performance in both NII and fees, more than compensating the deterioration of asset quality," they wrote in a note to clients.
Source: Investing.com
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