RIO DE JANEIRO, BRAZIL - The Covid-19 pandemic has cut banks' profitability in 2020 to its lowest in at least 10 years by forcing institutions to increase their expenses with provisions against default, the Central Bank (BC) pointed out on Monday, stressing that despite the increased uncertainties, the outlook is for improvement this year.
"The drop in profitability was widespread, affecting banks of different types of control, size and activity segment," the Central Bank said in its Banking Economy Report released on Monday.
In December 2020, the banking system's return on equity (ROE) stood at 11.5%, the lowest . . .