trending Market Intelligence /marketintelligence/en/news-insights/trending/_qg5vm95hpepqbu9bh6exq2 content esgSubNav
In This List

Caixa to hike share of service, fees revenues in 2018 profit


Balance Sheet Strategy in an Unusual Rate Environment


Investors' Views of the Industry Today & the Outlook for Tomorrow


Street Talk | Episode 98: Regulatory scrutiny having cooling effect on community bank M&A


Insight Weekly: M&A outlook; US community bank margins; green hydrogen players' EU expansion

Caixa to hike share of service, fees revenues in 2018 profit

Caixa Econômica Federal looks to increase the share of service and fees revenues in its total profit for 2018 as commercial credit takes a back seat, Diário Comércio Indústria e Serviços reported.

The Brazilian bank's revenues from services and fees increased by 11.5% to 25 billion Brazilian reais in 2017, in contrast to its total credit disbursements which dropped 9% to 368 billion reais.

The bigger share of service and fees revenues in Caixa's profit this year will be driven by lower treasury bills and smaller administrative expenses, said Arno Meyer, the bank's vice president of finance. This move comes amid the bank's goal to meet Basel III capital requirements, which are expected to be fully implemented by next year.

Caixa is looking to maintain its portfolio balance this year similar to the 2017 figure of 706 billion reais due to a limited lending scenario and a greater competitiveness in real estate lending. The bank will then focus on housing, while maintaining stability in individual financing and increasing corporate loans, CaixaCEO and President Gilberto Occhi said.

Full-year 2017 net profit spiked 202.6% to 12.5 billion reais from 4.1 billion reais in 2016.

As of March 27, US$1 was equivalent to 3.33 Brazilian reais.