Tag Archives: Consumer Loans (NEC) (TRBC level 5)

UPDATE 1-Bradesco Brazil set aside $ 462 million for COVID-19 loan losses | Instant News

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SAO PAULO, October 28 (Reuters) – Brazilian lender Banco Bradesco SA reported a higher-than-expected third-quarter recurring net profit on Wednesday, despite a surge in loan loss provisions amid the coronavirus pandemic.

Brazil’s second-largest private sector lender posted net income of 5.031 billion reais ($ 894.56 million), about 15% above the consensus analyst forecast according to Refinitiv, but down 23.1% from a year earlier.

Bradesco set aside 5.588 billion reais for bad loans, up 67.5% from a year earlier, but down 37.1% from the previous quarter. That includes 2.6 billion reais in extraordinary provisions related to potential losses caused by the coronavirus crisis.

“The results show the first signs of returning to normality,” said Bradesco Chief Executive Octavio de Lazari in a statement.

As the bank provided a grace period of up to 180 days to help clients deal with the economic crisis stemming from the coronavirus pandemic, the 90-day default ratio fell 0.7 percentage points to 2.3%.

The bank said it was providing a loan grace period of up to 73 billion reais.

Its lending books rose only 0.5% during the quarter, mainly on consumer loans, even though Brazil is facing a recession and unemployment is at its highest level in eight years.

The bank also indicated it has taken some cost-cutting steps as it fell 5.7% from a year earlier, but rose during the quarter.

Return on equity was at 15.2%, recovering from the second quarter, when the bank decided to set aside extraordinary provisions to deal with the coronavirus pandemic.

$ 1 = 5,6240 reais Reported by Carolina Mandl; Edited by Leslie Adler and Sam Holmes


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Afterpay, Westpac is linked to an Australian savings account | Instant News

(Reuters) – Australian buy-now-pay-later Afterpay Ltd will work with Westpac Banking Corp to offer savings accounts, the two companies said on Tuesday, signaling a shift by alternative credit companies to mainstream banking.

The accounts will be available to more than three million Afterpay customers in Australia starting next year via the Westpac digital banking platform, and will help provide companies with greater insight into the financial habits of their customers, he said.

The announcement sent Afterpay’s shares up 6% and crossing the A $ 100 mark for the first time, highlighting a surprise gain for shares that were only A $ 8 in March.

For Westpac, which last month hit a record A $ 1.3 billion settlement with the Australian financial crime agency for allowing illegal payments, the venture marks a push into fintech and will help it target younger customers.

Afterpay will be Westpac’s first digital banking platform customer, and the Melbourne-based company will also offer budgeting tools and other services from time to time. This partnership will take effect in the second quarter of 2021.

Afterpay and its buy-now-pay-later partner, which allows users to buy goods and pay more than interest-free installments, have been heralded as a traditional credit bully and soaring in popularity as the coronavirus crisis accelerates the move online.

RBC Capital Markets analyst Tim Piper said in a note that processing payments via Westpac could lower costs for Afterpay, while more customer data could result in “better credit decisions and potentially lower loss rates.”

Although Afterpay does not currently perform credit checks on its customers, it said the tie opened the door to new revenue streams and could be adopted globally.

“We will gather greater insights into how they (customers) prefer to manage their finances and better understand their savings goals,” said Afterpay Chief Executive Anthony Eisen.

Rival Zip Co Ltd also on Tuesday expanded its in-store offering for users to any shop that accepts Visa, expanding the company’s presence.

Reporting by Nikhil Kurian Nainan and Anushka Trivedi in Bengaluru; Edited by Cynthia Osterman and Richard Pullin


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