CEF boosts Q1 profits 4.5% on strong loan, checking account growth

- Friday, May 13, 2011

CEF boosts Q1 profits 4.5% on strong loan, checking account growth

Federally controlled Brazilian savings bank Caixa Econômica Federal (CEF) boosted first quarter profits by 4.5% year-on-year to 812mn reais (US$496mn) on the back of strong growth in loans and in the number of checking account holders, a press release reads.

CEF's new loan disbursements reached 46.3bn reais in the quarter, and the number of checking accounts rose by 13.5% on 1Q10.

Overall, for the 12 months to end-March, CEF's total loan book reached 191bn reais, up 41.5% from the 12 months prior. This is well above market average, which stood at a 20.7% increase in the same comparison.

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Mortgage lending - which accounts for 61.5% of CEF's loan operations - grew at 50.5% year-on-year in 1Q11, to 117bn reais. CEF commands 75.8% of the Brazilian mortgage loan market, according to the release.

CEF had 894bn reais in assets and 17.5bn reais in equity at end-March.