Brazil's Banco Nacional de Desenvolvimento Econômico e Social expects its annual recurring net profit to reach between 6.6 billion and 8.6 billion reais by 2022 as the state-owned development bank continues to divest its investment portfolio and shrink its loan book.

The earnings projection marks an increase from 5.5 billion reais booked for 2018.

In announcing its 2020-2022 strategic plan, the company said it will direct future investments primarily to the energy, transportation and sanitation sectors. It expects to end 2022 with a credit portfolio of about 421 billion to 490 billion reais, representing a decline from the 543 billion reais posted in 2018.

BNDES CEO Gustavo Montezano also reportedly reiterated the company's intention to divest much of its roughly 120 billion-real stock portfolio, saying it made little sense to retain its stakes in companies such as Petróleo Brasileiro SA and JBS.

The company is evaluating the sale of its entire stake in Petrobras, the state oil company, through a secondary offering. It has already divested stakes in some other Brazilian companies, including food processing company Marfrig earlier in the week.

As of Dec. 18, US$1 was equivalent to 4.06 Brazilian reais.