SAO PAULO (Reuters) -State-controlled lender Banco do Brasil SA (OTC:BDORY) reported on Wednesday a 4.5% increase in third-quarter adjusted net profit compared to a year earlier, backed by strong growth in income from interest.
Banco do Brasil's adjusted net income reached 8.79 billion reais ($1.79 billion) during the period, while analysts polled by Refinitiv expected 8.98 billion reais.
The lender, Brazil's oldest, attributed the results to "good commercial performance and the growth of the loan and treasury portfolios."
In the three months ending on Sept. 30, solid growth in agribusiness loans drove a 10% increase in the lender's credit portfolio, landing at 1.07 trillion reais.
Loan-loss provisions were at 7.52 billion reais in the period, up 4.7% from the previous quarter and 66.4% higher than a year earlier.
Part of that growth was caused by the reclassification of debt from struggling retailer Americanas, Banco do Brasil said.
The bank's 90-day loan default ratio grew 0.8 percentage points compared to the previous quarter to 2.81%, still well below the delinquency level of its listed peers.
The company's interest income rose 21.1% from a year earlier to 23.68 billion reais, while analysts expected 23.28 billion reais.
Profitability, measured by the lenders' return on equity, was flat from the previous three months at 21.3%.
($1 = 4.9103 reais)