Caixa Encourages Savings To Ensure Real Estate Credit and Avoid Funding Cost Increases

Caixa Encourages Savings to Avoid Threat to Real Estate Credit, According to the Bank’s President, Maria Rita Serrano.

The savings account, along with the Guarantee Fund for Time of Service (FGTS), is one of the main sources of funding that supports the real estate financing of the financial institution. With the strong outflow of resources from savings, the search for other financing sources may increase the funding cost, affecting real estate credit.

In March of this year, net withdrawals from savings totaled R$ 6.087 billion, leading to accumulations of more than R$ 51 billion in the first quarter. Despite the low profitability of savings (which remains at 6.17% per year, plus the Reference Rate), Caixa launched a campaign to encourage savings among Brazilians. In contrast, the bank raised real estate credit rates by 0.5 percentage points, with the SBPE modality moving to a range between 8.99% and 9.99% per year plus the TR.

The Search for the Optimal Financing Rate for the Most Loans with the Lowest Possible Rate Is the Bank’s Goal

Whose current strategy is to stimulate the growth of government policies to expand credit in the market, without losing the ability to compete within the sector. Additionally, the government has been discussing with public banks ways to increase the supply of credit at a time of high interest rates that reduce family purchasing power.

Ongoing discussions in the Supreme Federal Court (STF) regarding a possible change in FGTS remuneration also concern the president of Caixa. Although there may be a greater gain for workers individually, as the change may hinder the promotion of public policies, the impacts on public investments need to be carefully assessed.

Caixa’s ROE, Which Measures Operational Profitability, Fell to 7.08% in March of This Year, Compared to 11.02% in the Same Period Last Year

According to the explanation of the bank’s vice president of finance, Brasiliano Rosa, profitability was affected by the rise of Selic, which compressed the bank’s margins, but can be recovered as Selic decreases.

The strategy of Caixa is to expand its role in government policies without losing the ability to compete within the sector, remaining one of the main sources of funding to support real estate financing. The institution also promotes a culture of saving, aiming to ensure the maintenance of resources in the savings account to prevent real estate credit from being threatened by other more expensive financing sources.