- Margin from financial operations income dropped (up only 36% when portfolio soared 45%);
- Financial operations expenses for deposits, money market, borrowings and others grew 53%. What worries me is that allowance for loan losses grew only 7%, even with a stunning increase in loan portfolio;
- This resulted in an increase of gross profit from financial operations of just 20%;
- On the other hand, personnel expenses, administrative expenses an others grew only 7% (1);
- Finally, operating result increased 33%.
- Mean P/E last 3 years: 8.0
Has the time come to start a buying?
(1) BICB had extraordinary income in 2009 related to PIS Law 2.445 e 2.449/88 and Amnesty Law 11.941/09 of about 90 million. I'm expurgating that from 2009 operating results.
3 comments:
I think the behavior of the allowabce for loan losses reflects a return to normality. From 1Q08 to 3Q08, the allowance was 1,9% of the total loan portfolio. In the 4Q8 the allowance was 3,9% of the total loan portfolio. In the 2Q9 it reached 5,4% (the peak). Part of the earnings in the last quarters may be the result of the gradual reduction in this allowance.
BICB4 is selling for 9,10, almost there. My price is 8,90.
I also bought some shares today at 8.65. I couldn't resist. I was waiting to buy at 8.00, but it could never get there. Who knows.
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