Brazil’s three main banks see large drop in profits in second quarter

Brazil’s three main private banks, including Itau, the largest financial institution in Latin America, announced that their profits dropped significantly in the second quarter, mainly due to the COVID-19 pandemic and its effects on consumption and credit.

“This was one of the worst quarters in the history of Brazil in terms of economic performance,” Itau president Candido Bracher said in a statement following the release of the figures.

Itau disclosed that it had registered a profit of 3.4 billion reals (about 643 million U.S. dollars) in the second quarter, a 50 percent decrease compared to the period between April and June 2019.

Bradesco, Brazil’s second largest private bank, announced a quarterly profit of 3.5 billion reals (about 658 million U.S. dollars), a 42 percent drop compared to the same period in 2019.

Last week, the Brazilian subsidiary of Spain’s Santander Bank, the country’s third largest bank, reported a fall of 40.76 percent profit for the quarter.