(Updates with closing prices in second paragraph.)
Sept. 30 (Bloomberg) -- Banco Panamericano SA, a Brazilian lender that was bailed out amid accounting losses, posted its third straight quarterly advance on speculation its new parent, Banco BTG Pactual SA, will boost profits.
Panamericano, which took two bailouts between November and January after auditors found that the bank’s computer system automatically booked revenue from loans it had already sold, rose 3.9 percent in Sao Paulo to 6.16 reais at 4:15 p.m. New York time and is up 2.2 percent since June 30. The benchmark Bovespa index slid 2 percent and is down 16 percent in the quarter.
BTG Pactual agreed to buy a controlling stake in Panamericano in January, assuming 3.8 billion reais ($2.03 billion) of its obligations amid a criminal probe into the accounting irregularities. Investors are now speculating that BTG Pactual, founded by billionaire Andre Esteves, will make the bank profitable again, said Marco Aurelio Barbosa, head analyst at Coinvalores. The stock has rallied 52 percent this year after losing 52 percent in the last three months of 2010.
“The new administration isn’t part of the problem; it’s part of the solution,” said Barbosa, whose Sao Paulo-based firm raised its rating on Panamericano to “buy” from “hold” last month. “The bank is moving in the right direction.”
Panamericano posted a loss of 25.5 million reais in the second quarter, from a profit of 76.1 million reais in the first quarter, according to an Aug. 10 regulatory filing.
“It won’t be in the short term that the results reflect the profound restructuring taking place,” Marco Saravalle, an analyst at Coinvalores, wrote in the Aug. 26 report upgrading the stock. BTG Pactual is “renowned for its competitive aggressiveness and the quality of its team.”
--Editors: Richard Richtmyer, Glenn J. Kalinoski
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