One of the many faces of high interest rates is in the amount of credit portfolios, which have not been paid by individuals and companies, and have been put up for sale. In the first quarter, just the big banks – Santander, Bradesco and Itaú Unibanco – offered R$ 17 billion to the market. If smaller banks and other institutions are considered, the offer exceeds R$ 22 billion.

This is slightly more than the same quarter of 2022. But more than the amounts, the fact that a good part of the defaults are returning to the banks draws attention. Reason: the drop in the prices of these portfolios, due to the little chance of recovering the money. The number of CPFs and CNPJs with debts in more than one bank, card or credit institution is very high.

Itaú, for example, one of the institutions that made the offer, put on the market about R$ 6 billion in overdue credits, and sold something like R$ 2.3 billion to MGC Holding, Blue365 and Hoepers. The remainder returned to the bank. According to sources, this is what happened with most of the R$ 17 billion offered.

Itaú Unibanco and Bradesco said that portfolio transfers are part of the bank’s normal operations and will be carried out when there is an economic benefit. Bradesco also said that such operations consider “the value of the portfolio versus expected recovery and cost of the operation”.

Bradesco said that “only assignments that generate economic benefit are effected.” Santander and MGC Holding declined to comment. Blue365 said that “the acquisition of a portion of Itaú’s portfolio further strengthens the position” of the company in this market.

Original Story: Jornal o Sul
Photo: Bradesco website
Edition & Translation: Prime Yield