Signs of recovery in the Brazilian economy

We have detected signs pointing out the commencement of the recovery, with GDP growing 1% after three years of recession in a low inflation and lower interest rates scenario. This change was evidenced in our operations, with the last quarter of 2017 defined by the growth of our loans to individuals and very small, small and middle-market companies. Customer default rates have declined and our cost of credit1 was down by 29.6% compared to 2016. Together with other significant achievements, such as the control of operating costs, this fact has enabled us to post recurring net income of R$23.9 billion2, up 2.6% from the previous year. We kept the recurring return on equity going at a high level, recording 20.1% in 2017.


1In accordance with the rules established by the Central Bank of Brazil – BRGAAP.
2Net income attributable to owners of the parent company under IFRS.