Banco do Brasil tumbles after fourth-quarter earnings miss

jueves 13 de febrero de 2014 08:28 GYT
 

SAO PAULO Feb 13 (Reuters) - Shares of Banco do Brasil SA posted their biggest intraday drop in more than two weeks on Thursday, after the company reported a fourth-quarter profit that missed expectations.

The stock fell as much as 4.7 percent to 20.87 reais in early Thursday trading. The decline was the biggest since Jan. 29.

Profit at the Brasilia-based lender missed estimates in the fourth quarter because of higher funding costs and a spike in loan loss provisions. Recurring net income, or profit excluding one-off items, reached 2.424 billion reais ($1 billion) in the quarter, down 7.1 percent from the third quarter and 23.8 percent from the same period of 2012, the filing said.

A Reuters poll of eight analysts on average forecast recurring profit of 2.606 billion reais for the quarter.

($1 = 2.42 Brazilian reais)

(Reporting by Guillermo Parra-Bernal; Editing by Lisa Von Ahn)