Banco do Brasil's net profit down 44% in 2016

TV Jurerê
08:00:AM - 21/Feb/2017
Banco do Brasil's net profit down 44% in 2016
Picture: Marcelo Camargo/ Agência Brasil

21/02/2017 | 8AM

Banco do Brasil SA (Bank of Brazil) posted net profits of $2.6 billion in 2016, 44.2% down from 2015.

The results from the fourth quarter 2016 shrank 61.6% to $312.8 million, from $729 million in the fourth quarter 2015, according to a statement from the bank on Thursday (Feb. 16).

Earnings per share reached $0.92 in 2016, compared to $1.64 in the previous year. External analysts expect this year's earnings per share to stand at $1.31. Shareholder payout totalled $92.5 million in the fourth quarter and a cumulative $779.7 million in the year.

The state-owned bank noted that managing costs increased 3.5% over 12 months, the lowest annual increase in ten years, below the inflation indicators for the period.

The default rate was 3.29%, below the market level (3.7%).

Reorganization

Banco do Brasil has closed down 217 of the 402 branches it has planned to close by next March. The downsizing of its physical service capabilities is part of a reorganization plan announced by the bank last November.

Also as part of the plan, 379 branches will be converted into smaller units known as “service centers” (postos de atendimento), and 31 regional superintendencies will be shut. The downsizing is expected to save the bank $243.6 million, a saving the bank is planning to invest on expanding and improving its digital services, among other purposes.

Source: Agência Brasil