Brazilian private-sector bank Banco Bradesco has reduced its forecast for the expansion of its credit portfolio this year, due to a looming economic slowdown, the bank’s press office confirmed Wednesday.
The press office confirmed local news reports indicating a new forecast for 2011 credit expansion of between 15% and 18%. The bank’s previous forecast called for an expansion of 19% to 20%. Bradesco Chief Executive Luiz Carlos Trabuco Cappi said the reduction in the forecast was due to “a less optimistic scenario for Brazil’s economic expansion.”
Cappi said the bank now forecasts Brazilian economic growth of about 3.5% this year. Previously, the bank forecast growth of 4.0% to 4.5%. Brazil’s economy expanded 7.5% in 2010. Cappi said there was “a high correlation” between economic growth and expansion of lending volume.