November 14, 2019 / 4:00 PM / a month ago

UPDATE 2-Brazil's BNDES profit rises, expects to begin sales of stock portfolio

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RIO DE JANEIRO, Nov 14 (Reuters) - Brazil’s BNDES national development bank on Thursday reported a third-quarter profit of 2.7 billion reais ($648.5 million), up nearly 70% compared with the same period last year, thanks to its improved stock portfolio performance.

BNDES CEO Gustavo Montezano said the bank will begin to sell part of its stock portfolio, considering Brazilian stocks are near historical highs. Montezano expects around 80% of the 110 billion reais BNDES stock portfolio to be sold within three years.

Montezano confirmed BNDES is discussing the best timing to sell its stake in meatpacker JBS SA, confirming a Reuters report this week.

In the first nine months of 2019, BNDES’ posted a profit of 16.5 billion reais, an increase of almost 160% over the same period of 2018.

Brazil’s stock exchange rise was the main reason for the improvement in the bank’s results, Montezano said. From January to September, BNDES gained 8.9 billion reais with the 156% rise in value of the stocks.

($1 = 4.1637 reais)

Reporting by Rodrigo Viga Gaier in Rio de Janeiro Editing by Paul Simao and Lisa Shumaker

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