February 01, 2010
Banco do Brasil SA, Latin America’s largest bank by assets, climbed the most in three months after announcing it will add 1.6 billion reais ($844 million) to its 2009 net income because of gains related to its employee pension fund.
The gain is related to the bank’s employee pension fund program. The calculation for Previ, Latin America’s biggest pension fund, already accounts for tax and profit-sharing, the Brasilia-based bank said in a regulatory filing today.
Banco do Brasil rose 4.6 percent, the most intraday since Oct. 29, to 29.40 reais in Sao Paulo trading at 9:24 a.m. New York time. The Bovespa index increased 0.3 percent.
Prior to today’s statement, Banco do Brasil was expected to post a profit of 7.4 billion reais in 2009, down from 8.8 billion reais a year earlier, based on the mean estimate of 15 analysts surveyed by Bloomberg. Fourth-quarter net income may fall to 1.8 billion reais from 2.9 billion reais in the same period of 2008, according to the average of five estimates.
“Although such gain should not be seen as recurring, we see the announcement as positive, as it further reinforces our expectation of a strong fourth quarter,” Victor Schabbel, a Sao Paulo-based analyst with Credit Suisse Group AG, wrote in a note to clients today.
Banco do Brasil is scheduled to report its earnings on Feb. 25, according to a regulatory filing.
By: Laura Price and Helder Marinho
Source: Bloomberg
Brazil's Bradesco Bank To Focus On Organic Growth
January 29, 2010
With few opportunities for expansion through acquisitions, Brazil's second-largest private bank, Banco Bradesco S.A, will focus its 2010 strategy on organic growth, Bradesco executives said Thursday.
Earlier Thursday, the bank announced a plan to invest 4.2 billion Brazilian reals ($2.3 billion) in its operations this year. By comparison, last year the bank invested a total of BRL3.4 billion.
The investments planned for this year will be used to improve technological infrastructure and also in the opening of new branches. Bradesco is planning to open 250 new branches this year.
"The market for acquisitions is very restricted; there was a rapid consolidation of the industry in Brazil in recent years so our focus is now on organic expansion," said Bradesco President Luiz Carlos Trabuco Cappi, in a conference call with reporters. "The investments we are planning will support our organic expansion."
Bradesco, once Brazil's largest private bank, lost ground after its closest rivals, state-run Banco do Brasil SA and private bank Itau Unibanco SA, embarked on a series of acquisitions earlier in the decade.
Regarding overseas acquisitions, Bradesco's chief executive said they were even less probable.
Earlier this month, Bradesco signed a memorandum of understanding to acquire full control of credit-card administrator IBI Mexico for an undisclosed price.
Under the agreement, Bradesco will buy all shares in IBI Mexico, which administers the consumer finance arm of retailer C&A in Mexico.
But the IBI purchase is likely to be Bradesco's last one overseas, at least for a while.
"Our focus is on Brazil," said Cappi. "The IBI deal presented an opportunity because we had signed a similar deal with it here in Brazil." The bank acquired the Brazilian arm of the IBI operation back in June 2009 for about BRL1.4 billion.
Bradesco saw a rise in its net profits in the fourth quarter and also for the full year of 2009, as its credit portfolios increased during the period. The bank released its earnings report earlier Thursday.
Bradesco posted a fourth-quarter net profit of BRL2.18 billion, up from BRL1.6 billion a year earlier. For the full year of 2009, Bradesco reported a net profit of BRL8 billion, up from BRL7.63 billion in 2008.
By: Rogerio Jelmayer
Source: The Wall Street Journal
The gain is related to the bank’s employee pension fund program. The calculation for Previ, Latin America’s biggest pension fund, already accounts for tax and profit-sharing, the Brasilia-based bank said in a regulatory filing today.
Banco do Brasil rose 4.6 percent, the most intraday since Oct. 29, to 29.40 reais in Sao Paulo trading at 9:24 a.m. New York time. The Bovespa index increased 0.3 percent.
Prior to today’s statement, Banco do Brasil was expected to post a profit of 7.4 billion reais in 2009, down from 8.8 billion reais a year earlier, based on the mean estimate of 15 analysts surveyed by Bloomberg. Fourth-quarter net income may fall to 1.8 billion reais from 2.9 billion reais in the same period of 2008, according to the average of five estimates.
“Although such gain should not be seen as recurring, we see the announcement as positive, as it further reinforces our expectation of a strong fourth quarter,” Victor Schabbel, a Sao Paulo-based analyst with Credit Suisse Group AG, wrote in a note to clients today.
Banco do Brasil is scheduled to report its earnings on Feb. 25, according to a regulatory filing.
By: Laura Price and Helder Marinho
Source: Bloomberg
Brazil's Bradesco Bank To Focus On Organic Growth
January 29, 2010
With few opportunities for expansion through acquisitions, Brazil's second-largest private bank, Banco Bradesco S.A, will focus its 2010 strategy on organic growth, Bradesco executives said Thursday.
Earlier Thursday, the bank announced a plan to invest 4.2 billion Brazilian reals ($2.3 billion) in its operations this year. By comparison, last year the bank invested a total of BRL3.4 billion.
The investments planned for this year will be used to improve technological infrastructure and also in the opening of new branches. Bradesco is planning to open 250 new branches this year.
"The market for acquisitions is very restricted; there was a rapid consolidation of the industry in Brazil in recent years so our focus is now on organic expansion," said Bradesco President Luiz Carlos Trabuco Cappi, in a conference call with reporters. "The investments we are planning will support our organic expansion."
Bradesco, once Brazil's largest private bank, lost ground after its closest rivals, state-run Banco do Brasil SA and private bank Itau Unibanco SA, embarked on a series of acquisitions earlier in the decade.
Regarding overseas acquisitions, Bradesco's chief executive said they were even less probable.
Earlier this month, Bradesco signed a memorandum of understanding to acquire full control of credit-card administrator IBI Mexico for an undisclosed price.
Under the agreement, Bradesco will buy all shares in IBI Mexico, which administers the consumer finance arm of retailer C&A in Mexico.
But the IBI purchase is likely to be Bradesco's last one overseas, at least for a while.
"Our focus is on Brazil," said Cappi. "The IBI deal presented an opportunity because we had signed a similar deal with it here in Brazil." The bank acquired the Brazilian arm of the IBI operation back in June 2009 for about BRL1.4 billion.
Bradesco saw a rise in its net profits in the fourth quarter and also for the full year of 2009, as its credit portfolios increased during the period. The bank released its earnings report earlier Thursday.
Bradesco posted a fourth-quarter net profit of BRL2.18 billion, up from BRL1.6 billion a year earlier. For the full year of 2009, Bradesco reported a net profit of BRL8 billion, up from BRL7.63 billion in 2008.
By: Rogerio Jelmayer
Source: The Wall Street Journal
