BV Bank, controlled by Votorantim Group and Banco do Brasil, reported record profits in 2021, reaching BRL 1.5 billion and a 47.6% increase compared to 2020. The fourth quarter also set a record, with a recurring profit of BRL 421 million and a rise of 21.3% compared to the same period a year earlier.
The strong result was driven by new business lines, such as the financing portfolio for solar panels and small businesses, which have compensated for the weaker performance of the main automotive and corporate credit lines.
READ ALSO: Brazilians embrace neobanks, but won’t give up traditional ones, says BofA
In wholesale, which serves companies with annual revenues over BRL 300 million, BV’s BRL 23.8 billion portfolio was almost stable. The automotive financing portfolio closed 2021 at BRL 42 billion, an increase of only 1.5% in the year.
Gabriel Ferreira, BV’s president, said that although the bank has kept its leadership in the used car segment, it started to face more competition from other financial institutions, given that the lower production of brand new vehicles led them to compete in the used car market as well.
READ ALSO: Investor and innovation expert Guilherme Horn is the new head of WhatsApp in Brazil
In compensation, BV had a growth of 181.6% in the portfolio of solar panel financing. In small businesses, the portfolio growth was 96.3% year over year. The business of receivables anticipation also helped the net interest margin to grow 10% year over year.
According to Ferreira, BV is still waiting for a new window to resume plans for its initial public offering (IPO), suspended in April 2021 due to the adverse market environment.