Itaú BBA - New non-earmarked loans decline after strong increase in February

Macro Brazil

< Volver

New non-earmarked loans decline after strong increase in February

abril 26, 2018

Overall seasonally-adjusted delinquency slid 0.1 p.p. to 3.3%

The Brazilian Central Bank released today the credit figures for March. The daily average of new non-earmarked loans declined 2.6% mom/sa in real terms. Meanwhile, new earmarked loans rose 1.5% mom/sa. Overall seasonally-adjusted delinquency slid 0.1 p.p. to 3.3%. Average interest rates and spreads receded.

The performance of the daily average of new non-earmarked loans was driven by a 6.6% drop in loans for non-financial corporations (following a 16.0% hike) and 0.7% growth for households, adjusted for inflation and seasonality. In the earmarked segment, new loans expanded 2.0% for non-financial corporations and 1.1% for households.

Total outstanding loans continued to shrink in March in year-over-year real terms, by 2.5% (-3.1% in February). In the non-earmarked segment, total outstanding loans advanced 0.9% yoy (-0.3% in February). Meanwhile, total outstanding loans in the earmarked segment dropped 5.9% yoy (-5.8% in February).

The share of state-owned banks in the credit market narrowed 0.4 p.p. to 53.6%. In year-over-year real terms, state-owned banks’ credit receded 6.2%, matching the February reading. Private banks’ outstanding loans increased 2.1% (0.9% in February).

Seasonally-adjusted delinquency in non-earmarked loans slipped 0.5 p.p. to 4.4% among non-financial corporations and 0.1 p.p. to 5.1% among households. As for earmarked credit, delinquency fell to 1.2% from 1.4% among non-financial corporations and remained stable at 2.1% among households.

Average interest rates charged on non-earmarked loans dropped to 41.4% from 42.2%, falling for non-financial corporations and households as well. Average interest rates charged on earmarked loans declined to 9.0% from 9.7%, also sliding for both segments. Average spreads declined for both in March. 


 

Rodrigo Tolentino



< Volver