Brazil’s Bradesco quarterly revenue dips 23%, outlook on loans worsens By Reuters

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)