March 27, 2019 / 6:40 PM / 6 months ago

Brazil development bank BNDES to further reduce stake in oil co Petrobras

RIO, March 27 (Reuters) - Brazilian state development bank BNDES will continue to reduce its stake in state-controlled oil company Petroleo Brasileiro SA as part of its divestment plan, the bank’s CEO Joaquim Levy told journalists on Wednesday.

“To hold a Petrobras stake does not add value to the bank,” he said, using the oil company’s more familiar name.

The Rio de Janeiro-based bank owned a 13.9 percent stake in February, according to Petrobras’ website.

The bank’s profit rose in 2018, helped by profits in sales of part of its stakes in Petrobras and in miner Vale SA .

Net income reached 6.7 billion reais in 2018, up 9.8 percent from the previous year.

Levy said the bank posted a profit of 2.2 billion reais with the sale of Petrobras shares and other 2.6 billion reais with the sale of Vale shares.

He added that stock market performance as a whole also boosted the bank’s performance in 2018. The Bovespa index rose 15 percent last year.

Loans in arrears for more than 90 days increased to 2.95 percent from 2.08 percent in 2017. (Reporting by Rodrigo Viga Gaier, in Rio; Writing by Carolina Mandl)

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