SAO PAULO, Aug 14 (Reuters) - State development bank BNDES, Brazil’s main source of long-term corporate lending, returned to profit in the first six months of the year after gains in the value of investment arm BNDES Participações SA’s portfolio offset a ramp-up of loan loss reserves and declining loan book growth.
BNDES said on Monday that profit came in at 1.34 billion reais ($419 million) in the period through June 30, compared with a loss of 2.17 billion reais a year earlier. The investment arm known as BNDESPar will only mark to market the value of JBS SA securities it holds during the second half, to avoid ensuing volatility, it said in a statement.
BNDESPar is the second largest shareholder in JBS, whose controlling family was ensnared in a massive corruption scandal. It led the company to refinance over 20.5 billion reais of maturing loans with banks. ($1 = 3.2004 reais) (Reporting by Guillermo Parra-Bernal; Editing by Jeffrey Benkoe)