- Banco do Brasil reported an adjusted net income of R$9.3 billion, marking a 9.4% increase year-over-year, and beating estimates of R$9.13 billion.
- Total assets for the bank were reported at R$2.31 trillion, a 9% increase from the previous year, surpassing estimates of R$2.24 trillion.
- Non-performing loans ratio stood at 2.9%.
- Provision expenses reached R$8.54 billion, experiencing a significant rise of 46% year-over-year.
- The bank demonstrated a return on equity of 21.7%, slightly higher than the previous year’s 21%. However, this was slightly below estimates, which stood at 21.8%.
- Net interest income was reported at R$25.73 billion, a year-on-year increase of 22%.
- The bank’s expanded loan portfolio recorded R$1.14 trillion, marking a 10% growth from the previous year.
- Fee and commission income accounted for R$8.34 billion, slightly up by 2.6% year-over-year.
- Banco do Brasil’s Tier 1 ratio dropped to 13.9% compared to 14.6% in the previous year, falling short of estimates at 14.1%.
- According to unidentified sources, Banco do Brasil has received 13 buy ratings, 2 hold ratings and 1 sell rating.
A look at Banco do Brasil Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Banco do Brasil S.A. is shining in the areas of Dividend and Momentum, scoring a perfect 5 in Dividend and a strong 4 in Momentum. This indicates that the company is excelling in rewarding its investors with dividends and is showing positive momentum in its market performance. In addition, Banco do Brasil scores well in Value and Growth, with scores of 4 in both categories, suggesting that the company is positioned well in terms of its valuation and growth potential. However, in terms of Resilience, Banco do Brasil lags behind with a score of 2, indicating a lower level of resilience compared to its other scored factors.
Banco do Brasil S.A., a banking institution known for its retail and commercial banking services, seems to have a promising long-term outlook based on its Smartkarma Smart Scores. With strong performance in Dividend, Value, Growth, and Momentum, investors may find Banco do Brasil an attractive investment opportunity. Despite some weakness in Resilience, the overall positive scores highlight the company’s potential in rewarding investors, maintaining value, and driving growth in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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