Brazil lender Bradesco sees loan spreads stable, credit growing

SAO PAULO, April 7 Mon Apr 7, 2014 1:31pm EDT

SAO PAULO, April 7 (Reuters) - Borrowing costs in Brazil, as measured by lending spreads, are unlikely to decline until the central bank lowers its benchmark interest rate, Banco Bradesco SA Chief Executive Officer Luiz Carlos Trabuco said on Monday, adding that the bank's loan book growth is rising more than expected.

Spreads, or the difference between the rate at which banks lend and the cost of funding, will remain around current levels even as loan delinquencies continue to decline, Trabuco said at an event sponsored by the bank in Sao Paulo.

After a slow start in January and February, loan book growth staged a sharp recovery in March and is likely to help Bradesco meet its guidance for this year, Trabuco added. (Reporting by Guillermo Parra-Bernal; Writing by Asher Levine; Editing by Peter Galloway)

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