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© Reuters. FILE PHOTO: Banco Bradesco brand is seen on a smartphone in entrance of displayed identical brand on this illustration taken, December 1, 2021. REUTERS/Dado Ruvic/Illustration/File Photograph
SAO PAULO (Reuters) – Brazilian lender Banco Bradesco SA on Tuesday reported a 22.8% drop in third-quarter recurring internet revenue and raised its forecast for set-aside funds which may be wanted to cowl dangerous loans.
Bradesco’s recurring internet revenue totaled 5.22 billion reais ($1.01 billion), coming in beneath a Refinitiv consensus estimate of 6.76 billion reais.
The lender additionally raised its expectation for the amount of cash it’s going to put aside for non-performing loans this 12 months. It now expects to carry provisions within the vary of 25.5 billion reais to 27.5 billion reais, as excessive rates of interest have induced a deterioration in asset high quality.
In the course of the July to September interval, Bradesco put aside 7.27 billion reais, greater than double the quantity in comparison with a 12 months in the past.
In September, Brazil’s central financial institution paused an aggressive financial tightening cycle, leaving its key Selic rate of interest at 13.75% after 12 consecutive hikes. The central financial institution’s rate-setting committee additionally left its benchmark price unchanged in October.
Bradesco mentioned its 90-day mortgage default ratio was 3.9% on the finish of September, a 1.3 proportion level progress from a 12 months earlier and 0.4 factors above the second quarter ratio.
($1 = 5.1440 reais)
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