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Lower provisions fuel 76.6% YOY rise in Banco Votorantim's Q2 income

Banco Votorantim SA's net income in the second quarter soared 76.6% year over year as the bank saw higher operating income and lower provision expenses.

The lender booked net income of 256 million Brazilian reais in the second quarter, about 76.6% higher year over year from 145 million reais in the year-ago period.

Net interest income ticked up 3.0% to 1.26 billion reais from 1.22 billion reais a year ago. The bank's net interest margin stood at 6.1% in the second quarter, lower than the 6.6% recorded in the first quarter but higher than the 5.4% registered in the year-ago period.

Income from services and banking fees was slightly up to 344 million reais, from 326 million reais last year. Operating income also soared to 468 million reais from 185 million reais in the year-ago period.

On the other hand, personnel and administrative expenses dropped 11.6% yearly to 541 million reais, from 612 million reais. Loan losses and impairments were also down 28.5% annually, to 379 million reais from 530 million reais in the year-ago period.

The bank's expanded loan portfolio held 59.20 billion reais as of June 2018, just 0.3% lower the 59.36 billion reais held as of June 2017. The 90-day nonperforming loan ratio was 4.0% in the same quarter, compared to 3.9% in the linked quarter but down 4.4% from a year ago.

Return on equity was at 11.6% in the second quarter, up from 7.1% in the same period last year.

As of Aug. 8, US$1 was equivalent to 3.74 Brazilian reais.