SAO PAULO, Nov 9 (Reuters) - State-controlled lender Banco do Brasil SA missed third-quarter profit estimates on Thursday as weak demand for loans weighed on interest income.
Net income rose 2.2 percent from the prior three months to 2.708 billion reais ($832 million) when adjusted for non-recurring items, according to a securities filing, below the 2.708 billion real consensus estimate compiled by Reuters.
The bank’s so-called organic loan book contracted by 6.9 percent in the first nine months of the year amid a slow economic recovery and looked set to miss a year-end target of a 1 percent to 4 percent decline.
Still, the bank cut loan-loss provisions to the lowest levels in two years as defaults fell for the first time since the third quarter of 2016. ($1 = 3.2545 reais) (Reporting by Bruno Federowski; Editing by Susan Fenton)