Savings Bank profit drops by 43%
The Brazilian state-run Federal Savings Bank posted USD 1.3 billion in profit last year, down from USD 2.3 billion in 2015.
São Paulo – Brazil’s Federal Savings Bank reported BRL 4.1 billion (USD 1.3 billion) in profit in 2016, with BRL 691 million being the quarter four result. Results released this Tuesday (28) by the bank show that the full-year result is down 43% from BRL 7.2 billion (USD 2.3 billion) in 2015.
At the end of last year, the bank’s default rate was 2.88%, a 0.7 percentage point drop from the year before.
The bank’s credit portfolio increased by 4.4% in 2016, to BRL 709.3 billion (USD 227.4 billion). The bank’s market share was 22.4% at the end of the year. Housing credit, its main line, was up 5.6% to BRL 406.1 billion (USD 130.2 billion), a figure equivalent to 67% of the market.
Total returns were up 4.5% in 12 months to BRL 984.1 billion (USD 315.6 billion). The growth was driven mostly by a 4.1% increase in savings returns (where the bank retains a 38% stake of the market) and by a 27.7% increase in returns from IDR bonds.
*Translated by Gabriel Pomerancblum