Brazilian micro credit bank Banco Popular do Brasil (BPB) posted a 21.9mn-real (US$9.2mn) loss in the first half, local press reported.
BPB is a subsidiary of Brazil's largest bank, federally-controlled Banco do Brasil (BB), and was launched in February last year to provide basic banking and other financial services to low-income earners. In August the bank began to expand its product range by adding low-cost life insurance policies.
BB does not expect its micro credit arm to break even until 2008, according to local press.
BPB's distribution model is entirely based on partnerships with non-bank distributors such as retail stores and drugstore chains.
BB is the biggest bank in Brazil in terms of overall market share.
Wednesday, September 07, 2005
Micro Credit A Loser in Brazil
Brazil's biggest bank is losing big bucks on its year-old venture into Micro Credit, Business News Americas reported on Aug. 30, 2005. Here's the article: