Business

Caixa sees economic recovery, but will keep provisions in Q4, says chief executive

Caixa says it has reached a record of more than 105 million free digital social savings accounts opened until November 16 on the Caixa Tem app

People await emergency aid payments at a Caixa's branch in Rio de Janeiro. Photo: Reuters/Pilar Olivares

Caixa Econômica Federal is seeing a V-shaped recovery in the economy, but as a precaution it will keep for the fourth quarter the provisions previously made, said the chief executive of the state bank, Pedro Guimarães on Wednesday.

The exec stated by videoconference, after the release of the third-quarter results earlier, that the bank provisioned BRL 1 billion in credit in the third quarter and another BRL 300 million related to collective bargaining with employees.

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“In the fourth quarter, we see no need, but we will not reverse any provision already made,” said Guimarães.

Caixa had an adjusted profit of BRL 2.6 billion in the third quarter, an increase of 1.7% in relation to the immediately previous three months, in a result supported by housing credit operations.

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“We are seeing a recovery in ‘V’ since June. We’ve had record results on products we are focusing on,” he said the president. “The renegotiation was much better than expected. We had around 3 million contracts paused. And we did not expect a return as strong as the one that happened,” said Guimarães.

The executive said that Caixa expects the Central Bank’s approval for the launch of its digital bank for the next six months. He explained that the project will be separated from Caixa, but 100% controlled by the state bank.

Caixa says it has reached a record of more than 105 million free digital social savings accounts opened until November 16 on the Caixa Tem app.

Translated by LABS

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