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Caixa's recurring profit jumps 106.9% to 8.6B Brazilian reais

Caixa Econômica Federal on March 27 posted a net profit of 12.5 billion Brazilian reais for the year 2017, the highest in the bank's history, up 202.6% from its 4.1 billion reais result in 2016, as net interest income increased and administrative expenses declined.

The state-run bank's recurring net income soared 106.9% year over year to 8.6 billion reais, with operating income rising 261.7% to 14.5 billion reais and administrative expenses falling 2.3% to 11.9 billion reais.

Personnel expenses totaled 22.4 billion reais in the year, a 6.6% increase over 12 months as Caixa's voluntary redundancy programs saw 6,900 employees leave, generated nonrecurring expenses of 863.0 million reais.

Service income increased 11.5% to 25.0 billion reais. The bank's financial margin increased by 14.1% year over year.

"The increase in Caixa's income was generated by the increase in net interest income, the reduction in expenses from provisions for doubtful accounts, the increase in revenues from services rendered and the control of administrative and personnel expenses," the bank said.

The lender's credit portfolio reached 706.3 billion reais, meanwhile, slightly decreasing 0.4% year over year as the commercial portfolio sank 15.3% due to a change in policy at the bank. This was offset by a 6.3% growth in housing and 5.2% increase in financing of sanitation and infrastructure operation.

The period's delinquency levels stood at 2.25%, a decrease of about 60 basis points from a year earlier.

As of March 26, US$1 was equivalent to 3.31 Brazilian reais.