RIO DE JANEIRO, BRAZIL - Banco do Brasil's (BB) profit dropped 20.1 percent in the first quarter of 2020 compared to the same period in 2019, to R$3.4 billion (US$680 million). It is the first contraction in the bank's profit since Q4 in 2016 when it dropped 34 percent.
The decline in the period was a reflection of the large increase in reserves to cover potential defaults, which are expected to increase given the current economic crisis sparked by Covid-19. These reserves increased 63.3 percent, to R$5.5 billion. Of the total . . .