This operation increased the volume of outstanding BB shares in the market to 14.8% from 6.9%, with a commitment to reach a free float of 25% in the next three years. The market recognised this improvement in corporate governance as well as the bank’s economic fundamentals. Banco do Brasil’s stock registered the sector’s highest growth last year. Net profits were 45.5% higher than in 2005 and the payout ratio reached 40% in the year. The bank’s RoE was boosted to 32.1% from 26.8% and Tier 1 capital was up 23.3%, a major achievement in one of Latin America’s most competitive markets.
Banco do Brasil has built up the largest service network in Brazil, with more than 15,000 PoSs. Automated channels represented nearly 90% of all transactions by the bank’s customers. The bank now offers a network of 39,700 terminals, the largest in the country. It was the first bank to offer a complete service and business solution via mobile phone, and its processing technology is the fastest in the entire Latin American market.
“We at Banco do Brasil are extremely grateful to receive the Bank of the Year award from The Banker magazine,” says chief executive Antonio Fernando de Lima Neto. “This award is the result of the effort of each employee to answer to our 25 million customers’ demands better, the support of our shareholders and the trust of Brazilian society. In 2006, Banco do Brasil consolidated its position in the leadership of the Brazilian banking industry, due to improved and consistent results.”
