By Brazil Stock Guide – Banco Daycoval reported a recurring net income of 425.9 million reais in the second quarter, down 10% from the previous three months but up 8.5% from a year earlier, according to figures released by Valor Econômico.
The bank’s recurring return on equity (ROE) came in at 22.6%, compared with 26% in the first quarter and 23.8% in last year’s fourth quarter. Financial intermediation revenue totaled 1.39 billion reais, falling 5.9% from the prior quarter and 1.8% year-over-year.
Provisions for doubtful accounts surged 170.9% from the previous quarter and 37.2% from a year earlier, reaching 365.2 million reais. The expanded loan portfolio climbed 7.1% sequentially and 14.1% in 12 months to 66.65 billion reais. The delinquency ratio rose to 2.0% from 1.8% in March and 1.9% in June 2024.
“In an increasingly challenging environment, solidity and resilience become even more essential. Daycoval maintained its financial discipline, with adequate leverage, controlled delinquency and efficient management,” the bank said in its earnings release.
Corporate loans accounted for 46.57 billion reais of the total portfolio, up 8.9% in the quarter and 15.9% year-over-year. “The expansion of the corporate segment was the main driver of results, led by receivables purchases and followed by organic growth in other corporate product lines,” Daycoval said.
Payroll-deductible loans rose 1.6% from the previous quarter and 5.7% from a year earlier, totaling 16.54 billion reais. Vehicle financing advanced 10.7% and 34.2% in the same comparisons, reaching 3.11 billion reais.
In asset management, Daycoval had 23 billion reais under management across 107 funds. The bank’s fund administration and custody business oversaw 163.7 billion reais in assets under service.