BB (BBAS3) has a profit of R$9.3 billion in the 1st quarter and approves R$2.6 billion in dividends and JCP

Banco do Brasil (BBAS3) ends the earnings season for large banks with an adjusted net profit of R$9.3 billion in the first quarter of 2024 (1Q24), an amount 8.8% higher than that reported in the same period in 2023, informed the company this Wednesday (8).

The result was practically in line with the LSEG consensus expectation of R$9.097 billion.

According to the financial institution, the result is a reflection of the advancement of the “phygital” strategy, the credit granting policy, the diversification of revenues and cost control.

Accounting profit, in turn, totaled R$8.782 billion in 1Q24, a growth of 7% on an annual basis.

The total credit portfolio reached R$1.138 trillion, an increase of 10.2% in 12 months. The default rate (delays of more than 90 days) was 2.9%, an increase of 0.3 percentage points in one year.

This expansion of credit came together with the expansion of the gross financial margin, which reached R$25.7 billion, an increase of 21.6%. On the other hand, provisions for doubtful debts totaled R$8.541 billion, an increase of 45.9%.

Service revenues totaled R$8.344 billion in 1Q24, an increase of 2.6% compared to the same quarter last year.

The return on equity (RSPL or ROE) was 21.7% between January and March 2024, an increase of 0.67 percentage points compared to the same period in 2023.

Credit

BB showed growth in its credit portfolio in all business segments. The biggest expansion occurred in agricultural loans, which reached R$372.5 billion, an increase of 15.5%.

The portfolio for legal entities increased by 8.5% (R$393.583 billion) and that of individuals, by 5.8%, reaching R$317.4 billion.

The financial institution maintained its projections for credit growth in 2024. The expectation is that the total portfolio will grow between 8% and 12%.

Earnings

The bank also approved payments of R$3.784 billion to shareholders relating to the first quarter’s profit, equivalent to R$0.868 per share. The amount includes the R$1.17 billion paid on March 27th as early remuneration to shareholders in the form of JCP (interest on equity).

BB also announced R$940.587 million, or R$0.165 per share, relating to complementary dividends and R$1.673 billion in complementary JCP, or R$0.29316146583, approved at the meeting on May 7th. The total value is around R$2.61 billion.

The amounts will be paid on June 21, 2024, based on the shareholding position on June 11, with shares being traded “ex” from June 12.