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BNDES, Banrisul post higher Q1 profits; 8 Brazilian banks face charges

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BNDES, Banrisul post higher Q1 profits; 8 Brazilian banks face charges

* Net income at state lender Banco Nacional de Desenvolvimento Econômico e Social rose 453.4% to 2.06 billion Brazilian reais for the first quarter of 2018 from 372.6 million reais earned in the year-ago period. Gross results from financial intermediation jumped to 2.93 billion reais from 1.19 billion reais a year earlier.

* Banco do Estado do Rio Grande do Sul SA booked net income of 244.0 million Brazilian reais in the first quarter, 89.8% more than the 128.5 million reais earned a year ago. Income from services and fees during the three-month period were up 12.0% to 465.2 million reais from 415.5 million reais in the year-ago period. Meanwhile, financial expenses fell 35.9% yearly to 1.10 billion reais, and allowance for loan losses slid 18.8% yearly to 304.9 million reais.

* Brazilian oil company Petrobras sued Banco Fibra SA, Banco Société Générale Brasil SA, Banco BNP Paribas Brasil SA, Banco Bradesco SA, Itaú Unibanco Holding SA, Banco Santander (Brasil) SA, Banco BTG Pactual SA and Banco Citibank SA for alleged exchange rate manipulation, Valor Econômico reported.

MEXICO AND CENTRAL AMERICA

* Out of 25 analysts surveyed by Reuters, 21 expect the Mexican central bank to maintain its benchmark rate at 7.50% in a monetary policy meeting later in the week, while four others forecast the regulator to raise the rate by 25 basis points, Reuters reported.

* Fitch Ratings upgraded the financial strength ratings of Guatemalan insurer Aseguradora de los Trabajadores SA to BBB+(gtm) from BBB(gtm), and changed the outlook to positive from stable.

* According to initial estimates reported by El Financiero, hackers stole around 400 million pesos from Mexican banks during a series of cyberattacks in April. Some banks have denied being targeting by any attacks, but according to the report, around 150 million pesos were stolen from Grupo Financiero Banorte SAB de CV and about 160 million pesos from Banco del Bajío SA Institución de Banca Múltiple.

BRAZIL

* Morgan Stanley bought about 50 million reais in bonds issued by Brazilian financial technology firm Geru Tecnologia e Servicos SA, Bloomberg News reported, citing two people with direct knowledge of the matter. The issued bonds carry a rate 1.75x of the interbank rate, corresponding to an annual rate of about 11.2%.

* Banco Inter SA, which just completed its initial public offering in April, reported net income of 11.2 million reais for the first quarter of the year, 77.8% higher than the 6.3 million reais earned a year earlier. Net interest income rose 31.6% to 81.1 million reais, while net interest margin expanded to 9.7% in the period from 8.0% a year earlier.

* Caixa Econômica Federal has set a profit target of 9 billion reais for 2018, which it will look to achieve with the help of a reduction of 2.6 billion reais in operating costs, Folha de S.Paulo reported. The bank will close around 100 branches where either operations are considered unsustainable or are located near another branch.

* Itaú Unibanco Holding SA reduced its average overdraft interest rate by nearly 1 percentage point in an attempt to lower delinquency levels, Diário Comércio Indústria e Serviços reported.

ANDEAN

* The Lima Group, comprised of countries from across the Americas, called on Venezuela to cancel presidential elections scheduled later this month, "as they have been called by an illegitimate authority," and warned of further action on the country if elections take place, Reuters reported.

* Economic growth in Peru was at 3.93% year over year in March, while the figure stood at 3.22% for the quarter, Gestión reported, citing statistics agency INEI.

* Sempli, a fintech startup based in Medellín, Colombia, said it has granted 16 billion pesos in credit to small and medium-sized enterprises in 15 months, La República reported.

SOUTHERN CONE

* The International Monetary Fund said a fixed exchange rate will not be a condition for a credit line for Argentina, adding that the rate "should continue to be determined by market forces, with the central bank continuing to use all the policy tools that are at its disposal," Reuters reported, citing an IMF spokesman.

* Argentine consumer watchdog ADUC filed a class-action suit against BBVA Banco Francés SA over an insurance product that was allegedly illegitimately tied to financial services offered from November 2015 to September 2016. The bank says the lawsuit will not significantly affect its operations.

* Record-high interest rates in Argentina, along with the country's myriad structural problems, will drive up funding costs for Argentine borrowers and could derail their access to global markets, Moody's said. The sudden surge in Argentina's interest rates will lead to increased delinquencies and credit costs for banks, with lending margins narrowing over the next months, according to the rating agency.

* Chilean central bank chief Mario Marcel said cryptocurrencies currently pose "limited" risk for the country's financial stability, Diario Financiero reported. However, this situation may change and there are "good reasons" to regulate some activities linked to digital currencies, he added.

* Argentina's central bank has exempted commercial lenders from compliance with minimum local currency cash deposit requirements in May to encourage them to buy more short-term debt securities, known as Lebacs, El Cronista reported.

PAN LATIN AMERICA

* Dan Silber, managing director and head of Americas foreign exchange sales business at Credit Suisse Group AG, died from a heart attack, Bloomberg reported, citing the late executive's wife.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: JPMorgan Chase names new China CEO; AMP to face more lawsuits

* Middle East & Africa: Qatar's forex manipulation probe intensifies; ex-Moza Banco execs fined

* Europe: Allianz, Crédit Agricole post Q1 profits; SIX Group, Worldline in €2B deal

The Daily Dose has an editorial deadline of 8 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.