Banks show signs of recovery

Large banks handled the coronavirus pandemic better than expected. A year after the first impacts on lenders’ results, profit rose sharply, driven by the drop in credit provisions. Financial margins are also beginning to show signs of improvement. Brazil’s ten largest banks in credit portfolio – Itaú Unibanco, Banco do Brasil, Caixa Econômica Federal, Bradesco, Santander, BNDES, Safra, BV, BTG and Banrisul – reported a combined net income of R$38.6 billion in the first quarter when compared to the same period in 2021. The credit portfolio expanded by 8.9%, reaching R$4.2 trillion, according to survey carried out by Valor. The biggest challenge will be to recover services revenue, which had already been pressured by increasing competition, including from fintechs, and recently was affected by social-distancing measures.

Source: Valor international