UPDATE 1-Bradesco sees slower drop in Brazil loan defaults

* Sees slower decline in loan delinquencies this year

* Private banks face uphill battle to win market share
(Recasts to add context, comments, share price in paragraphs
1, 3-5)

SAO PAULO, Sept 28 (BestGrowthStock) – Banco Bradesco (BBDC4.SA: ),
Brazil’s second-biggest non-government bank, expects loan
delinquencies to decline at a slower pace in the second half of
the year, signaling that the impact of a cooling economy
hampered the credit-worthiness of households and companies.

Defaults will fall to about 3.7 percent of total loans by
year-end from 4 percent in the second quarter, Domingos Abreu,
a Bradesco senior vice president and head of investor
relations, said on Tuesday on the sidelines of an event in Sao
Paulo.

Some segments of the economy showed signs of fatigue in the
second quarter, reflecting an increase in borrowing costs and
the impact of the global economic slowdown. Despite that,
Brazil’s $1.7 trillion economy grew at a healthy 8.8 percent in
a year-on-year basis in the second quarter, after posting the
fastest expansion in 14 years in the previous three months.

“There is still room to improve loan delinquency readings,
but the improvement will likely come at a slower pace than
before,” Abreu said.

Private-sector banks, which have lost market share to
state-controlled lenders since the onset of the global crisis
that burst late in 2008, face an uphill battle to regain
ground, Abreu said.

Bradesco shares inched up 0.1 percent on Tuesday to 32.69
reais.

(Reporting by Aluisio Alves; Writing by Guillermo
Parra-Bernal; editing by Carol Bishopric, Bernard Orr)

UPDATE 1-Bradesco sees slower drop in Brazil loan defaults