Credit stock falls 0.2% in July to R$5.405 trillion, says Central Bank

The balance of the financial system’s credit operations fell 0.2 per cent in July, to R$5.405 trillion, according to the Central Bank (BC) latest release. In 12 months, there was an increase of 8.2%.

The total balance of free credit fell 0.8% in July to R$3.179 trillion, while directed credit advanced 0.7% to R$2.226 trillion.

The total credit balance for families increased by 0.4% in the month, reaching R$3.314 trillion. For companies, there was a 1.1% drop, to R$2.090 trillion.

The Central Bank’s most recent projections for credit growth in 2023 are: 7.7% for the total; 6.3% for free credit; 9.6% for directed credit; 9.9% for individuals; 4.4% for companies.

Vehicles

The balance of operations for the purchase of vehicles by individuals rose 0.7% in July, to R$270.829 billion.

Loans rose 4.4% in the month, to R$13.259 billion. The average interest rate stood at 26.1% per year, after 26.8% in June.

Real Estate

The total stock of real estate loans to individuals with directed resources rose 0.5% in July compared to June, totalling R$ 972.847 billion. In 12 months, the increase was 10.3%.

Loans in the same category, on the other hand, fell 2.2% to R$11.3 billion in the month, accumulating a 12.7% drop over 12 months.

The annual interest rate, meanwhile, rose from 11.5% to 11.9%.

BNDES

The National Bank for Economic and Social Development’s (BNDES) credit portfolio for companies ended July up 0.1% to R$392.570 billion. The comparison is with the previous month.

Looking at the BNDES’ concessions, there was a fall of 2.4% in the month, to R$5.796 billion.

Default

The average default rate on credit operations remained stable at 3.6% in July, compared to June.

Among companies, the average rate was 2.7%, compared to 2.6% in June. Among households, it was 4.2%, the same percentage as the previous month.

In credit with free resources, delinquency stood at 5.0% (against 4.9% in June).

In directed credit, it was 1.7%, against 1.6% previously.

Original Story: Valor Investe | Alex Ribeiro and Larissa Garcia
Photo: Big Stock Photo
Edition and translation: Prime Yield