SAO PAULO, Oct 31 (Reuters) - Banco Bradesco SA sees scant room for further increases in lending rates even as the central bank is expected to raise borrowing costs in Latin America’s largest economy for the upcoming quarters, executives said on Friday.
Executives said on a conference call to discuss third-quarter earnings that gross spreads are expected to trend downwards next year as Brazil’s No. 2 private-sector lender moves forward with a plan to lend more in low-yielding, less risky credit market segments.
Despite higher borrowing costs, Bradesco expects to improve the structure of its funding costs in coming quarters, the executives said. The central bank on Wednesday unexpectedly raised the Selic overnight lending rate and signaled potential similar moves for the coming months to head off inflation. (Reporting by Guillermo Parra-Bernal; Editing by James Dalgleish)