(Adds details of Banco do Brasil Cielo joint venture, background)
RIO DE JANEIRO, Feb 27 (Reuters) - Brazil’s state-controlled commercial bank Banco do Brasil SA said on Friday it cut its outlook for fee income as a result of a partnership with Cielo SA, Brazil’s largest credit and debt card operator.
Banco do Brasil expects fee income to grow 3 percent to 6 percent instead of the 7 percent to 10 percent it suggested in guidance for investors published on Feb. 11, the bank said in a securities filing.
The other forecasts published on Feb. 11 remain the same, the bank said.
Banco do Brazil on Wednesday said it agreed to take a 30 percent stake in a new company to be called Token Gestão de Contas de Pagamento that will be 70 percent owned by Cielo.
The pro-forma net income for the joint venture was 615 million reais in 2015 while gross revenue was 2.4 billion reais, Cielo said earlier on Friday.
Under the deal, Banco do Brazil will realize a 3.2 billion real boost to its net income as a result of intangible assets stemming from the partnership.
Cielo is paying for its stake in the new venture with 3.46 billion reais of debt sold in the domestic Brazilian market. (Reporting by Jeb Blount; Additional reporting by Priscila Jordão; Editing by Bernard Orr)