Nov 14, 2013

• Performance encompassed expansion of loan portfolio with ongoing extremely low default
• Highlight was 8.7% growth in fixed-income earnings

The Brazilian Development Bank (BNDES) recorded net profit of R$ 4.886 billion between January and September 2013, that is, 3.5% higher than that posted in the same period last year, when net profit totaled R$ 4.722 billion.

The factor that most contributed to the positive performance was the earnings from financing investment projects, confirming the BNDES’ capacity to bring together reduced interest rates and consistent financial results. At the same time, the BNDES’ default level remained at extremely low, and the Bank expanded its credit recovery.

Expressive performance occurred in while spreads charged by BNDES for financing were being reduced, which is in keeping with the federal government’s efforts to stimulate production investment and expand the supply of credit in a global scenario of uncertainties.

Result –  Results per segment, which were achieved before expenses were deducted, totaled R$ 10.003 billion in the first nine months of this year. The result of the fixed income segment (financing) was R$ 7.428 billion (R$ 6.833 billion in the same period in 2012), contributing some 74.3% of total result per segment.

The segment result for the treasury, a total of R$ 1.589 billion, accounted for 15.9% of the result  by segments and remained at the same level as the previous year (R$ 1.473 billion in the period from January to September 2012). Despite the timing that the capital market shrank, the variable-income segment also contributed to the good performance of the BNDES System. In the first nine months of the year, the result obtained in this segment amounted to R$ 762 million, a decrease of R$ 242 million when compared to the same period in the previous year. The participation of the variable-income segment accounted for 7.6% of the result per segment in the BNDES System between January and September of 2013. The participation of the variable-income segment accounted for 7.6% of the result per segment in the BNDES System between January and September 2013.

Operating expenses (which correspond basically to the administrative expenses, personnel and taxes on profit) totaled R$ 5.118 billion in the period from January to September 2013. In the same period in 2012, these expenses totaled R$ 4.171 billion. The increase is impacted by the increase in taxable profit.

The Bank's profit encompasses the total result per segment, after operating expenses. Its increase is also explained, in part, by the positive impact from credit risk allowances in the first nine months of 2013, which totaled R$ 225 million, compared with expenses of R$ 417 million in the same period the previous year. This occurred due to non-recurring credit recovery, which generated a revenue of R$ 415 million between January and September this year (in the same period in 2012, these revenues were R$ 157 million).

Default – Default in the BNDES System, totaling 0.02% in September 30, 2013, remains the lowest within the Brazilian financial sector and was the lowest achieved over the past five years at the BNDES, despite uncertainties in the financial and capital markets.

The result reflects the robustness of the credit portfolio and the Bank’s onlending. The default rate is well below the 3.3% average for the National Financial System in September 2013, according to data released by Brazil’s Central Bank. In December 2012, the BNDES’ default rate was 0.06%.

Financial position – The equity of the BNDES System totaled R$ 60.331 billion (R$ 55.172 billion in June 30, 2013), corresponding to an equity of reference (PR) of R$ 102.868 billion, up from R$ 96.021 billion in June 30, 2013.

The PR growth is mainly due to the recovery of the market value of BNDESPAR stockholdings, whose proportion is in the Net Equity.

Basel – The capital adjustment ratio (Basel Ratio) registered by the BNDES System was 17.7%, that is, higher than the 11% required by Brazil’s Central Bank and the 15.8% recorded in the June 2013.

The total assets of the BNDES System reached R$ 745.2 billion on September 30, 2013, showing growth of R$16.1 billion (2.2%) compared to June 30, 2013. The balance of the credit portfolio and transfers, after credit risk allowances, reached R$ 537.7 billion in the same period, of which 79.4% corresponded to long-term credits.

To consult the documents, visit the BNDES’ website at the links below:
Interim Condensed Consolidated Financial Statements of September 2013:
BNDES: http://www.bndes.gov.br/SiteBNDES/export/sites/default/bndes_pt/Galerias/Arquivos/empresa/download/condensado_0913.pdf
BNDESPAR (Quarterly Information ITR):
http://www.bndes.gov.br/SiteBNDES/export/sites/default/bndes_pt/Galerias/Arquivos/empresa/download/ITR_bpar0913.pdf