Banco do Brasil to save up to $493 mln by 2025 in restructuring

Credit: REUTERS/AMANDA PEROBELLI

Adds details on restructuring

SAO PAULO, Jan 11 (Reuters) - Brazilian state-controlled lender Banco do Brasil SA BBAS3.SA announced on Monday a restructuring, aiming to save up to 2.7 billion reais ($493 million) by 2025, according to a securities filing.

The bank said it will close 361 business units, including 112 branches, 7 offices and 242 service stations.

Banco do Brasil also announced two new buyout programs, estimating roughly 5,000 employees will join them. It represents about 5% of its workforce.

This year, savings with the administrative overhaul are likely to reach 353 million reais, the bank said.

The move by Banco do Brasil comes as banks seek ways to save money to help weather the economic crisis stemming from the coronavirus pandemic. Last year, banks set aside billions of reais to cope with an expected rise in loan delinquency in 2021.

This is the first major move by Banco do Brasil's new CEO Andre Brandao, who took the helm of the bank in September.

($1 = 5.4871 reais)

(Reporting by Carolina Mandl; Editing by Catherine Evans and David Evans)

((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11 97116-3806;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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