Itaú BBA - New non-earmarked loans expand slightly in January

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New non-earmarked loans expand slightly in January

February 23, 2017

Overall delinquency slid 0.1 p.p. to 3.7%, seasonally adjusted

The Brazilian Central Bank released today the credit figures for January. The daily average of new non-earmarked loans expanded 0.3% mom/sa in real terms, while new earmarked loans plummeted 10.5%. Overall delinquency slid 0.1 p.p. to 3.7%, seasonally adjusted. Overall interest rates receded, while average spreads widened (both seasonally adjusted).

The performance of the daily average of new non-earmarked loans was driven by gains of 0.3% in loans for non-financial corporations and households, adjusted for inflation and seasonality. In the earmarked segment, new loans tanked 9.3% for non-financial corporations and 11.4% for households (after three consecutive months of growth).

Total outstanding loans declined 8.8% year-over-year in real terms in January (-9.3% in December). The drop in non-earmarked outstanding loans moderated to -9.9% from -10.6% yoy. The slide in earmarked outstanding loans eased to -7.6% from -7.9% in December.

The share of state-owned banks in the credit market reached 55.9% (55.7% in December). The year-over-year decline of state-owned banks’ credit steepened to -9.5% from -9.4%. Meanwhile, private banks’ outstanding loans slid 7.9% (-9.0% in December).

Delinquency in non-earmarked loans rose slightly by 0.3 p.p. to 5.5% among non-financial corporations and receded somewhat by 0.3 p.p. to 6.0% among households. As for earmarked credit, delinquency was virtually unchanged at 1.9% among non-financial corporations and 1.8% among households.

Interest rates charged on non-earmarked loans dropped to 52.9% from 53.4%, declining for non-financial corporations and households alike. Average spreads in these transactions narrowed for both segments. Meanwhile, average interest rates charged on earmarked loans were virtually stable at 11.0%, increasing for non-financial corporations and receding for households. Average spreads in these transactions widened for both.


 

Rodrigo Tolentino


 


 

 



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