Banco do Brasil beats profit estimates by large margin on revenue
SAO PAULO Aug 14 (Reuters) - State-run Banco do Brasil SA , Brazil's largest bank by assets, beat second-quarter profit estimates by a large margin on Thursday after net interest income unexpectedly jumped.
Recurring net income, or profit excluding one-time items, reached 3.002 billion reais ($1.32 billion) in the quarter, up 23.2 percent from the first quarter and 14 percent from the same period last year, according to a securities filing. A Reuters poll forecast recurring profit of 2.579 billion reais in average for the quarter.
Recurring return on equity, a gauge of profitability among banks, reached 17.1 percent in the quarter, well above the poll's 14 percent average estimate.
The Brasilia-based lender, Brazil's largest by assets, also revised its estimate for recurring return on equity this year to a range between 14 percent and 17 percent, compared with 12 percent to 15 percent in February. Expected growth in gross interest income was raised to 5 percent to 9 percent this year from a prior guidance of 3 percent to 7 percent guidance.
($1 = 2.28 Brazilian reais) (Reporting by Guillermo Parra-Bernal)
© Thomson Reuters 2016 All rights reserved.