Banco do Brasil headquarters in Brasília. Photo: Rafastockbr/Shutterstock
Analysis by Veja magazine shows that political risks caused by President Jair Bolsonaro are devaluing the stocks of state-owned bank Banco do Brasil — a similar phenomenon to what was seen during the Dilma Rousseff administration.
The bank’s market cap stands at around BRL 82 billion (USD 15.1 billion), or 4.2 times the expected profits for 2022. Under Ms. Rousseff, the ratio was 4 times the expected profits. The valuation is 47 percent lower than private banks Itaú and Bradesco — just 3 percentage points above the levels seen in 2016.
The move comes amid a higher interest rate scenario, weak economic performance, and, above all, political instability — reflected in other state-owned stocks. Oil and gas firm Petrobras had a volatile trading day on Monday, as the management called a press conference to dissuade risks of interference after President Bolsonaro had complained about gasoline prices.
The city of Rio de Janeiro estimates that a Madonna concert this Saturday on Copacabana…
Latin America’s trend of banning opposition candidates from elections has caught on in an ever-growing…
The São Paulo City Council on Thursday approved legislation authorizing Brazil’s largest city to sign…
The preliminary report on AI regulations presented to Brazil’s Senate last week provides a middle-of-the-road…
In 2000, Formula 1 great Michael Schumacher had just racked up his 41st race win,…
Overall, the worldwide economic outlook has improved according to the Organization for Economic Co-operation and…