Caixa Econômica Federal (CEF), one of Brazil’s main public banks, on Monday presented a notable increase of 16.5% compared to the same period of the previous year. The net recurring profit recorded amounted to R$3.241 billion in the third quarter of 2023, indicating a positive financial performance.
The third quarter of this year was characterized by an increase in the organization’s financial margin by 15.7%, in addition to a significant increase in service revenues. Furthermore, revenue from credit operations increased by 17% compared to the last 12 months. Caixa highlighted the performance of treasury operations, which led to an increase in results by 6.4%, as well as interbank orders, which saw an increase in results by 30.3%.
What led to Caixa’s increased profits?
The positive numbers are of great importance, especially taking into account the difficult economic scenario. This was largely driven by increased financial margins and, to a lesser extent, service revenues. But, without a doubt, the highlight is the bank’s credit portfolio, which has crossed the R$1.091 trillion mark – an increase of 11.7% compared to September 2022.
Two sectors are particularly important to this score: housing and agribusiness. Operations dedicated to housing grew by 14.6% to R$ 707.943 billion. Operations focused on agribusiness saw a significant jump of 29.9%, reaching R$52.352 billion.
What were Caixa’s other financial developments during the period?
The bank was able to show strong performance on other fronts as well. For example, return on equity (ROE) was 7.9% in the third quarter, although it represented a decline of 0.75 percentage points compared to the same period in 2022. In contrast, CEF’s net equity closed the quarter at R$125.174 billion. – Growth of 1.9% within 12 months
Caixa’s assets, which include the credit portfolio as well as securities and derivatives, closed the third quarter at R$1.744 trillion. This represents an increase of 11.4% compared to the same period last year. The derivatives portfolio, in particular, recorded R$250.458 billion, an increase of 0.7% in one year.
It is worth noting that these numbers do not include funds managed by the bank, such as FGTS. When considered, the total rises to R$3.128 trillion, a growth of 9.1% in one year. This is certainly a result that confirms the solidity and importance of the Caixa Econômica Federation in the Brazilian economy.
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