SAO PAULO Aug 14 State-run Banco do Brasil SA
, Brazil's largest bank by assets, beat second-quarter
profit estimates by a large margin on Thursday after net
interest income unexpectedly jumped.
Recurring net income, or profit excluding one-time items,
reached 3.002 billion reais ($1.32 billion) in the quarter, up
23.2 percent from the first quarter and 14 percent from the same
period last year, according to a securities filing. A Reuters
poll forecast recurring profit of 2.579 billion reais in average
for the quarter.
Recurring return on equity, a gauge of profitability among
banks, reached 17.1 percent in the quarter, well above the
poll's 14 percent average estimate.
The Brasilia-based lender, Brazil's largest by assets, also
revised its estimate for recurring return on equity this year to
a range between 14 percent and 17 percent, compared with 12
percent to 15 percent in February. Expected growth in gross
interest income was raised to 5 percent to 9 percent this year
from a prior guidance of 3 percent to 7 percent guidance.
($1 = 2.28 Brazilian reais)
(Reporting by Guillermo Parra-Bernal)