Banco do Brasil, the state-owned
bank in the middle of digesting rival Banco Nossa Caixa, has
reported its net income, including one-off items, shot up 74
percent in 2008 to BRL8.8 billion ($3.72 billion). Excluding
exceptionals, net income amounted to BRL6.7 billion, up 13.7
percent. Despite the global crunch, the bank’s net income grew 142
percent in the fourth quarter to BRL2.9 billion.

In contrast to Banco do Brasil’s earnings,
newly formed private sector giant Itaú Unibanco, created in
November (see RBI 602), reported pro forma net income of
BRL10 billion ($4.23 billion), down 16 percent. Santander’s
Brazilian unit reported profit up 31 percent to $1.62 billion,
while HSBC’s Brazilian subsidiary reported pre-tax profit of $910
million, up 3.5 percent.

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Banco do Brasil said total assets grew 38.2
percent across the year to BRL507.3 billion. In terms of lending,
loans to individuals accounted for 31.7 percent of its net interest
income with growth in revenues of 7.1 percent in the quarter and of
23.0 percent year-on-year.

Brazil underwent rapid banking industry
consolidation in the latter half of 2008, a trend likely to
continue in 2009. Citigroup has signalled plans to sell its stake
in the profitable Redecard credit card venture (see News
Digest). And Banco do Brasil, along with buying Nossa Caixa,
is also buying a 50 percent stake in Banco Votorantim.

Top 10

Brazil – bank groups ranked by
assets, Dec 08(1)

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Assets ($bn)

Deposits ($bn)

Branches(2)

Itaú Unibanco

270.1

95.27

3,718

Banco do Brasil

217.1

116.1

4,390

Bradesco

170.0

71.31

3,370

Santander

147.5

53.32

2,279

CEF

126.6

70.83

2,069

HSBC Brazil

47.97

27.98

931

Votorantim

32.13

8.626

17

Safra

28.47

6.297

125

Nossa Caixa

23.23

15.93

563

Citibank

17.32

3.596

127

$1=BRL2.337. (1) results do not take into
account recent M&A deals apart from Itaú/Unibanco merger;
(2) figures do not include sub-branches, post office networks or
other distribution points Source: Banco Central do Brasil