August 28, 2018 / 10:11 PM / in 2 months

UPDATE 1-Bradesco CEO expects dollar to weaken to 3.80 reais after election

(Adds CEO quotes on presidential election and its effect on currency)

By Carolina Mandl

SAO PAULO, Aug 28 (Reuters) - The Chief Executive Officer of Banco Bradesco SA, Brazil’s second largest private lender, said on Tuesday he expects the dollar to weaken to 3.80 reais after the country’s presidential election.

Octavio de Lazari told analysts in a meeting in Sao Paulo the uncertainty of a wide open race is weighing on the local currency, and once there is a clearer definition the real should strengthen.

On Tuesday, the real weakened 1.5 percent and the dollar reached 4.14 reais, the highest in almost three years.

Lazari said he does not expect a higher dollar rate to seriously hurt Brazilian companies, which have a low percentage of their debt indexed to foreign currency.

Uncertainty about election results later this year is also weighing on investment decisions, Lazari added, saying Bradesco expects its portfolio of corporate loans to grow at a moderate pace, as companies postpone capital expenditures to next year.

Amid Brazil’s sluggish growth and undefined presidential elections, Bradesco is targeting 43 million clients who do not hold checking accounts to increase its cross-selling of financial products, Lazari said.

The bank plans to offer more products to these clients, who currently hold credit cards issued by the bank, have savings accounts or acquired insurance policies from the bank’s insurance arm. (Reporting by Carolina Mandl Editing by Leslie Adler and Chris Reese)

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