Banco do Brasil sees faster growth in interest income this year
SAO PAULO Aug 13 (Reuters) - State-controlled Banco do Brasil SA, Brazil's largest bank by assets, announced on Thursday the following operating performance forecasts for this year:
1) The bank kept forecasts for loan book growth unaltered at between 7 percent and 11 percent this year. In the 12 months through June, loan book growth was 6.4 percent.
2) It kept estimates for recurring return on equity unaltered at between 14 percent and 17 percent this year. Recurring ROE is currently 14.2 percent this year.
3) The bank increased its forecast for interest income growth this year to a range of between 11 percent to 15 percent from the previous range of 9 percent to 13 percent announced in February. Annual growth to the end of June was running at 14.2 percent.
4) Banco do Brasil forecasts fee income growth of between 7 percent and 10 percent this year, unchanged from Febraury estimates.
5) The bank expects growth in sales, general and administrative expenses of between 5 percent and 8 percent this year, unchanged from February.
6) Loan-loss provision expenses will stay between the equivalent of 3.1 percent and 3.5 percent of average outstanding loans this year, compared with a prior range of 2.7 percent to 3.1 percent. So far this year, the ratio is at 3.1percent of Banco do Brasil's loan book. (Reporting by Guillermo Parra-Bernal; Editing by Greg Mahlich)
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