Bank profits grow 53% to R$62 billion in the first half

Bank profits grow 53% to R$62 billion in the first half

Photo: Leonardo SA / Senate Agency

Banks made a profit of R$62 billion in the first half of 2021, according to data from the financial stability report recently released by the central bank. The result was 53% greater than that recorded in the January-June period of last year.

“After a significant decline in the first half of 2020, system profitability has recovered and returned to pre-pandemic levels. Expenses have been reduced with provisions and should stabilize near current levels. Although the outlook is more favourable, risks remain in the horizon”, He said.

During the pandemic, banks have increased the amount of resources to cover any customer defaults. With the renegotiations made during the crisis, financial institutions did not have the expected losses in overdue debt. As a result, it was not necessary to use the funds reserved for possible losses and turn them into profit.

“The results tend to continue to improve as vaccination progresses and economic activity recovers, but uncertainty in the current economic situation remains higher than usual. A slow recovery of activity may hurt the system’s future profitability scenario.”, male BC.

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About the Author: Camelia Kirk

"Friendly zombie guru. Avid pop culture scholar. Freelance travel geek. Wannabe troublemaker. Coffee specialist."

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