Banco do Brasil (BB) had a record adjusted net profit of R$ 31.8 billion in 2022, with growth of 51.3% compared to 2021. quarter, profit totaled R$ 9 billion, up 52.4% over the same period of the previous year.
According to BB, the growth in profit can be explained by the growth in the granting of credit with controlled default. The bank also attributes the record profit to revenue diversification, cost management discipline and sound capital structure.
According to Banco do Brasil, 40% of the profit will be distributed to shareholders in the form of dividends and interest on capital. This is equivalent to R$ 11.8 billion.
credit portfolio
Banco do Brasil’s expanded credit portfolio ended 2022 above the historic mark of R$ 1 trillion, up 14.8% compared to 2021. The highlights were operations with individuals, companies and agribusiness.
In relation to individuals, the credit portfolio grew 9% last year, totaling R$ 289.6 billion. The expansion was influenced by the payroll loan portfolio, which ended 2022 at BRL 115.1 billion. The corporate loan portfolio totaled R$358.5 billion, up 12.8% in 12 months.
The expanded agribusiness portfolio totaled BRL 309.7 billion, breaking the record set in 2021. Growth totaled 8.3% compared to the previous quarter and 24.9% in 12 months. BB maintained its leadership in lending to the segment.
The default rate over 90 days for the bank’s credit operations was 2.5%. Despite the increase compared to the end of 2021, when it was at 1.75%, the indicator remains below the National Financial System average of 3%.
The sustainable business portfolio, which includes loans to projects with a positive social and environmental impact, totaled R$327.3 billion last year, up 12.3% in 12 months. The amount corresponds to one third of the bank’s total credit.
income and expenses
Revenues from services rendered totaled R$32.3 billion in 2022, up 10.2% when compared to 2021. The highlights were the fund management segments (+11.8%); insurance, pension plan and capitalization (+14.6%); and credit and guarantee operations (+27.4%).
Administrative expenses increased 5.6% last year, below inflation accumulated last year and within the bank’s projections, which varied between 4% and 8%.
BB also disclosed projections for 2023. For this year, the institution forecasts adjusted net income between R$33 billion and R$37 billion, expansion of 8% to 12% in the loan portfolio and growth of 7% to 11% both in revenues from service provision as well as administrative expenses. In April, the financial institution will hold a contest. Entries close on the 24th.
