Caixa’s default rate is the lowest among large banks thanks to Desenrola programme

Caixa’s default rate fell to 2.59% in October, from 2.67% in September. According to the institution, it reached the lowest level among the country’s big banks. The drop was greater, of 0.24 percentage points, compared to August, when the index reached 2.83%.

According to the bank’s vice-president of risk, Henriete Bernabé, one of the factors behind the drop is Desenrola Brasil. She said in a statement that the programme encouraged customers to seek out Caixa to renegotiate debts, regardless of whether they fit the Desenrola criteria or not.

She also says that the bank’s own renegotiation programmes, such as Tudo em Dia, and the evolution of collection processes have also influenced the movement. “Caixa has very attractive conditions for renegotiating defaulted loans in general. Discounts can reach 95 per cent,” he adds.

According to the bank, the total credit portfolio closed October at R$1.1 trillion, with more than R$700 billion in property loans.

According to Caixa, the reduction in the delinquency rate is despite the fact that credit has continued to be granted, which is different to the market trend. The institution said that it “endeavours to offer credit with conditions suited to the client’s profile and with the best market rates. This favours default,” according to Henriete.

Caixa’s expectation is that the default rate will continue to fall. For the vice-president, the trend for 2024 is positive.

“Considering the expectation of a reduction in the Selic rate, added to the control of the inflation index, the reduction in the unemployment rate and also a possible increase in jobs with the direct and indirect generation of jobs, through the Minha Casa Minha Vida and Novo PAC programmes, an improvement in families’ financial conditions is expected,” she said in the note.

Original Story: Valor Investe | Staff
Photo: Caixa building
Edition and translation: Prime Yield