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Banestes ups dividend payout, improves guidance on Brazilian economic recovery

Banestes SA - Banco do Estado do Espírito Santo on Oct. 9 revised its guidance expectations and raised its dividend payout policy as it pointed to the positive impact of Brazil's economic recovery and an improvement in operational results.

The bank said it now expects its operational efficiency ratio for 2018 to hit between 51% and 54%, compared to its earlier guidance range of 53% to 56%. It expects to see commission and fee income for the year to rise by 10% to 13%, up from a prior range of 7% to 10%, and for credit provision costs to represent between 2.4% and 2.7% of its extended loan portfolio, compared between 2.8% and 3.1% previously.

Banestes also said that it will now pay out up to 60% of its adjusted net income in dividends and interest on equity, up from its previous maximum of 40%.

The bank's board of directors also decided to pay an extraordinary payment of interests on equity amounting to 10.0 million reais, or some 3.2 centavos per share. That will see the total payment of interests on equity for 2018 rise to some 75.85 million reais, or 24 centavos per share.

As of Oct. 8, US$1 was equivalent to 3.77 Brazilian reais.