Brazil had a higher rate of credit growth in the 2nd quarter, BC preview shows

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The Central Bank (BC) published this Thursday (1st) a preview of the regional evolution of credit in the second quarter of 2022.

The preview is part of the period’s Regional Bulletin, which will be published in full on Friday (2), at 10 am.

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In the document, the BC highlighted the higher rate of growth of aggregate credit in all regions, which was characterized both in the portfolio of individuals and companies.

For companies, operations with nonearmarked resources grew more in the Midwest, with the lead in export financing, as observed in the first quarter, and in the Northeast, a region that intensified the increase compared to the period from January to March.

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In the operations of companies with earmarked resources, only in the Central-West region there was a contraction in the portfolio, mainly due to amortizations of BNDES operations.

Regarding the portfolio for families, operations carried out with free resources grew relatively homogeneously in all regions, according to the BC.

The highlight was payroll-deductible loans, stimulated by the increase in the payroll deduction limit, and cash credit card transactions.

The BC also stressed that the expansion of rural financing was relevant, notably for investment and funding, in the North and Midwest.

On the other hand, the South registered a slight contraction in rural credit, after a significant advance in the first quarter.

“Among the other modalities, real estate financing remained in evidence, even in the context of higher interest rates”, added the agency in the preview.

By activity, the BC highlighted that commerce continued to contribute to the expansion of credit with the wholesale and vehicle segment in all regions.

The Southeast, on the other hand, showed a decline in the financing of other services, under the impact of the lower stock of operations contracted by financial and telephony companies, according to the autarchy.

In the North, credit to road freight and storage companies, as well as auxiliary transport activities, stood out.

Electricity generation, transmission and distribution was also important in the Northeast and Southeast.

Agricultural credit was relevant in the Midwest and financing for the manufacture of food products and machinery and equipment in the South.

“In the business segment, the positive performance of economic activity in all regions in the second quarter, with the exception of the Southeast, contributed to the evolution of credit”, highlighted the BC.

In relation to delinquency, there was a moderate increase compared to the first quarter, as a result of the increase in the household portfolio and the decline in the corporate portfolio.

Individual default rates grew more in the North and Northeast, the region with the highest default rate.

The Midwest, on the other hand, registered a drop, becoming the region with the lowest rate in this segment.

For companies, delinquency fell, impacted by the North, Southeast and Northeast.

Source: CNN Brasil

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