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BB Seguridade Q2 net income down 12% YOY with lower non-interest results

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BB Seguridade Q2 net income down 12% YOY with lower non-interest results

BB Seguridade Participações S.A. on Aug. 7 reported adjusted net income of 956.3 million Brazilian reais for the second quarter of 2017, down 12.0% from the 1.09 billion reais earned in the year-ago period.

The company noted it saw an 8.1% annual drop in results for non-interest operations, mainly due to weaker performance at subsidiary BB Corretora as a result of lower sales. BB Corretora's net investment income also fell 21.6% to 245.9 million reais from 313.5 million reais a year earlier, due to a lower average Selic rate, yield movement that negatively affected fixed bonds, and lower inflation indexes.

The lower yearly income booked by the company also came amid taxes of about 5.4 million reais for the second quarter, an amount that was not incurred in the year-ago period. Meanwhile, equity income was down 13.6% over the year to 940.7 million reais, from 1.09 billion reais.

BB Seguridade's underwriting and accumulation business was also down to 604.3 million reais, from 669.1 million reais a year earlier. Written premiums in the company's property and casualty business fell 5.1% annually to 2.2 million reais, felt across all its insurance segments.

General and administrative expenses in the quarter were down 39.0% to 8.0 million reais, from 13.2 million reais a year earlier.

Adjusted return on average equity was 44.5% in the second quarter, compared to 55.2% a year earlier.

As of Aug. 4, US$1 was equivalent to 3.12 Brazilian reais.