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Caixa narrows loan growth expectations

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Caixa narrows loan growth expectations

CaixaEconômica Federal now expects its loan portfolio to grow by between7% and 7.5% in 2016, the lower end of its prior range, Bloomberg News reported,citing CFO Marcio Percival.

The company had previously set a loan growth range of 7% to11%; in 2015, itsexpanded credit portfolio grew by 11.9%.

Percival said that delinquency rates are expected to hitbetween 3.5% and 3.85%.

The bank posted first-quarter net income of 837.8 millionBrazilian reais, down 45.9% compared to a year ago. Percival said that thedecline in net income was due to a credit provision of about 700 million reais relatedto a company in the oil and gas industry, but refused to mention the name.The CFO reportedly said that Caixa has provisions for the entire amount owed bythe company.

As of May 9, US$1 wasequivalent to 3.55 Brazilian reais.