Brazilian Banks repossessed 70.000 real estate assets since 2014

With high defaults in real estate financing caused by the economic crisis, the number of real estate repossessed by Banks has skyrocketed in recent years in Brazil. Since the beginning of 2014, the five major banking institutions of the country recovered R $ 11.5 billion in real estate due to lack of payment. A figure that corresponds to about 70 thousand houses and apartments, estimates the industry.

Nowadays, the five biggest banks in Brazil have a record volume of R$ 13,7 billion in real estate waiting in line for potential interested – including amongst them those units that were already in stock – a figure that grew 745% in four and a half years.

Banco do Brasil, Bradesco, Caixa Económica Federal, Itaú Unibanco and Santander balance sheets show that, together, these institutions had an average annual growth of almost R$ 2 billion in the volume of real estate repossessed between 2014 and 2017. The growth pace continues strong in 2018, and in just six months, banks took more than R$ 1.48 billion in homes and apartments from delinquents.

Leader in the real estate sector, Caixa, heads up this movement concentrating 70% of the total of repossessed units. In June there were about 47 thousand real estate assets from clients that, altogether, had a value of R$ 9.1 billion. In 2016, the total stock was less than half: 23 thousand units.

Same phenomenon is observed among its competitors, although with less intense pace. Since the beginning of 2014, Bradesco, Santander and Itaú totaled, each, about R$ 1 billion to this portfolio, while BB recorded the less expressive growth, with R $ 116 million in the period.

Original Story: /Fernando Nakagawa
Photo: Shutterstock
Edition and translation: Prime Yield