Banco Votorantim SA reported a 31.1% year-over-year boost in its profit for the fourth quarter 2017, driven by a decline in both expenses and loan-loss provisions.

The Brazilian bank's net income reached 156 million Brazilian reais in the quarter, rising from the 119 million reais earned in the year-ago period.

Income from services and banking fees was up to 376 million reais in the quarter, from 321 million reais a year ago. The bank's net interest income rose to 1.33 billion reais from 1.26 billion reais. Its net interest margin improved to 6.3% in the fourth quarter, from 5.5% a year earlier.

Personnel and administrative expenses for the fourth quarter reached 657 million reais, declining from the 693 million reais incurred a year earlier. Its result for loan losses and impairments also shrank year over year to 487 million reais from 766 million reais.

Banco Votorantim's annualized return on average equity stood at 7.3% in the quarter, compared to 5.8% a year earlier. Annualized return on average assets was 0.6%, up from 0.5% a year ago.

The bank's on-balance loan portfolio held 48.68 billion reais as of December 2017, slightly up over the year from 47.62 billion reais. Nonperforming loans over 90 days past due, as a portion of the managed loan portfolio, stood at 4.0% in the fourth quarter, down from 5.5% previously.

The bank's 2017 year-end earnings came to 582 million reais, up 36.7% from 426 million reais in 2016.

As of Feb. 21, US$1 was equivalent to 3.26 Brazilian reais.