SAO PAULO, Feb 10 (Reuters) – Shares in Brazil’s Banco Bradesco SA (BBDC4.SA) fell to their lowest stage in virtually two years on Friday after the financial institution reported fourth-quarter web revenue equal to lower than half that of analysts’ estimates.
Bradesco reported a 75% drop in web revenue and sharply elevated its provisions for mortgage losses to round $3 billion. The financial institution’s most well-liked shares had been down 6.6% in early buying and selling in Sao Paulo to 12.89 reais, paring losses that reached 8.7% after the open. Bradesco’s widespread shares had been down virtually 6% to 11.61 reais.
Bradesco Chief Govt Officer Octavio de Lazari advised analysts in an earnings name on Friday that he expects the financial institution’s default ratio to stay excessive within the first half of 2023, and added that it ought to have restricted its lending standards in the course of the COVID-19 pandemic. “We prolonged extra credit score than we should always have,” he stated.
Bradesco put aside 4.9 billion reais in provisions within the fourth quarter to cowl its loans to retailer Americanas SA (AMER3.SA), which has requested for chapter safety. The Bradesco CEO stated Americanas’ accounting inconsistencies occurred resulting from fraud.
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Reporting by Aluisio Alves, writing by Tatiana Bautzer; enhancing by Jason Neely and Paul Simao
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