Banco do Brasil could raise guidance if outlook improves
SAO PAULO Feb 14 (Reuters) - Banco do Brasil SA, the nation's largest bank by assets, could raise estimates for loan book growth and return on equity in coming months should the outlook for credit risk and demand for loans improve, Investor Relations Director Leo Loyola said on Friday.
The Brasilia-based bank expects stable defaults throughout this year, Loyola told investors on a call to discuss fourth-quarter earnings.
On Thursday, Banco do Brasil missed analyst estimates 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 year-earlier period. A Reuters poll of eight analysts expected recurring profit of 2.606 billion reais for the quarter.