Bradesco 4Q profit down 27 pct on loan slowdown

Brazil's Banco Bradesco SA said Monday that its fourth-quarter net profit fell 27 percent to 1.6 billion reals ($696 million) as the global meltdown hurt the loan business in Latin America's largest economy.

The bank, which is Brazil's largest in the private sector, posted a 2.2 billion-real ($956-million) profit for the same quarter a year ago.

Bradesco said Monday its profit for all of 2008 was 7.6 billion reals ($3.3 billion), up 5 percent from 2007 profit of 7.2 billion reals ($3.1 billion)

Revenue figures were not immediately disclosed. The bank's assets under management stood at 454.4 billion reals ($198 billion) as of Dec. 31.

The bank said in a statement that fourth quarter adjusted income came in at 1.8 billion reals ($782 million) because of nonrecurring events that were not immediately described.

Bradesco and other Brazilian banks saw an abrupt decline in lending over the quarter as the global economic crisis hit Latin America's largest economy hard.

Despite the slowdown, Bradesco said it plans to open 170 new branches this year.

Bradesco is expected to lose its ranking as Brazil's largest private sector bank later this year when a merger is completed between Banco Itau SA and Unibanco Holdings SA.

The combined assets of merged Brazilian bank are expected to reach 575.1 billion reals ($250 billion).

Bradesco's American depository shares fell 13 cents to $8.82 each on the New York Stock Exchange after its earnings announcement, or 1.5 percent.

(This version CORRECTS that net profit fell 27 percent and that 16 percent drop was for adjusted net profit)