Brazilian midsize bank Sofisa pulled in 13.1mn reais (US$8.1mn) in first quarter earnings, up 30% from 1Q10 thanks to FX gains, along with reduced loan loss provisions and lower financial asset sales, the bank's latest financial statements show.
FX gains surged 328% to 7.18mn reais, while allowances for loan losses were cut by 120% to 5.20mn reais and sales of financial assets shrank 82.3% to 4.73mn reais. Overall, Sofisa saw its gross profit from financial intermediation fall 21.1% year-on-year, to 52.9mn reais.
Sofisa's loan portfolio saw a 21.5% decrease in the first quarter to 2.44bn reais, with corporate loans falling 10.4% to 1.67bn reais and the consumer loan portfolio shrinking 38.0% to 773mn reais.
The bank recorded a non-performing loan ratio of 1.3% at end-March, down from 1.4% at end-1Q10.
Sofisa had 4.29bn reais in assets and equity of 777mn reais at the end of March.
To read the full statements, in English, go to this link
To read the full statements, in Portuguese, go to this link