Brazil's largest bank, the state-owned Banco do Brasil, has announced a net profit of 2.47 billion reais (1.24 billion U.S. dollars) in the first half of 2007, a slump of 36.3 percent over the same period last year.

According to financial market research firm Economatica, Banco do Brasil's net profit in the first half of 2006 reached 3.88 billion reais (1.95 billion U.S. dollars).

The biggest earnings by a Brazilian bank in the first half of this year were reported by Itau, which announced on Aug. 7 that its wealth swelled by 4.016 billion reais (2.03 billion U.S. dollars), a record among the country's private banks.

In the second quarter of 2007, Banco do Brasil registered a net profit of 1.068 billion reais (539 million U.S. dollars), down 30.9 percent from the same period in 2006.

Banco do Brasil attributed the drop to the fact that about 7,000 employees have joined its voluntary resignation program, which has increased its labor costs.

In its report, Banco do Brasil also said that its total assets amounted to 332.96 billion reais (168.16 billion U.S. dollars) in the first half of the year, up 21.6 percent from the same period last year.