Bradesco reports a drop in default rates.
Bank headed by Luiz Carlos Trabuco Cappi sees reduction in defaults among individuals and small businesses in the second half of the year.
SAO PAULO (Reuters) Bradesco sees a downward trend in delinquency rates in the second half of the year, and this movement should be concentrated among individuals and small and medium-sized enterprises, according to CEO Luiz Carlos Angelotti.
"Considering the short-term trend in default rates, the improvement should come from individuals and small and medium-sized enterprises," Angelotti said in a conference call with analysts.
The executive made the prediction after being questioned about possible negative effects that Eike Batista's companies would have on the institution's default rate. He did not comment on any specific effects of the X Group companies on the bank's accounts.
According to Angelotti, the high level of employment and the lower indebtedness indicated by the Central Bank explain the positive outlook regarding individual default rates.
In the long term, default rates tend to stabilize, according to the executive.
(By Natalia Gómez)