Dieese study indicates that banks’ performance was not affected by an increase in individuals’ default rates

Published on 03/06/2023 – 12h56

By Cida de Oliveira – Rede Brasil Atual

Brasil de Fato — The profit of the five largest Brazilian banks (Bradesco, Banco do Brasil, Itaú Unibanco, Caixa Econômica, and Santander), combined, was BRL 106.7 billion ($21.34 billion) in 2022. Their performance was not shaken by household debt and the increase in individuals’ default rates. The information comes from the 18th edition of the ‘Banks’ Performance’ study, produced by the Intersindical Department of Statistics and Socioeconomic Studies (Dieese) – Bancários Network, a survey released this week.

According to the report, on December 31, 2022, the total assets of these five banks reached BRL 8.9 trillion ($1.78 trillion), an average increase of 9.2% compared to the previous period. A large portion of these banks’ assets corresponds to their credit operations/portfolios, which, added together, reached BRL 4.6 trillion ($920 billion) at the end of 2022. A growth of 12.2% in the period. The net worth, which represents these institutions’ own capital, reached BRL 694.3 billion ($138.86 billion) – an increase of 8.5% in twelve months.

Last year, the employment balance in banks was positive. However, according to Dieese, the available data do not allow for distinguishing how many of the jobs opened in the balances are from bankers, and how many are from non-bankers. This is because holdings include, in total, workers from various other financial sector segments. Among them, IT workers, insurance brokers, financial workers, and fintech workers, among others.

Amid bank profits, little job offer

According to balance reports, the balance of the five banks was 5,280 jobs opened in the year. However, according to Dieese technicians, analyzing the data from the New Caged/MTE, the banking employment balance was 2,827 jobs. Besides, this balance considers all banks in the Brazilian banking system.

This difference may be due to the new branch formats. More compact and with fewer people in attendance – what in advertising they call “more personalized and specialized service”. This is part of banks’ strategies, based on “digital solutions” for customers, taking advantage of their greater acceptance and use from the Covid-19 pandemic. That is, there are many unemployed bankers despite bank profits.

Americanas’ default brought impacts to banks

Turned the year of 2022, marked by the maintenance, by the Central Bank, of a high basic interest rate (the Selic Rate), in January, Americanas S.A. announced the detection of accounting inconsistencies in its financial statements from previous exercises. What was initially estimated at BRL 20 billion ($4 billion), led the company to file for bankruptcy. The debts, in fact, exceeded BRL 40 billion ($8 billion).

The results of the five largest banks suffered impacts, as they had to set up significant extraordinary provisions – this to face the probable loss. After all, the five are among the main creditors of Americanas. According to Dieese, there is a risk of Bradesco losing BRL 4.5 billion ($900 million); Santander (Brazil), BRL 3.6 billion ($720 million); Itaú Unibanco, BRL 2.7 billion ($540 million); Banco do Brasil, BRL 1.3 billion ($260 million); and Caixa Econômica Federal, BRL 501 million ($100.2 million).

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