SAO PAULO, Oct 22 (Reuters) - Banco Bradesco SA, Brazil's No. 2 private-sector bank, expects provisions on bad loans this quarter to stay around levels seen in the third quarter.
The bank, which set aside about 2.881 billion reais ($1.33 billion) from earnings in the July-to-September quarter to cover overdue credit, is likely to "see the indicator fluctuating around this number," Chief Financial Officer Luiz Carlos Angelotti said on a conference call on Tuesday.
Management cut provisions on bad loans for the fifth straight quarter as loan delinquencies fell, especially in consumer lending. The reduction in provisions, which directly boosts earnings by freeing up capital, was 7 percent on a quarter-on-quarter basis and 13 percent from a year earlier.