Brazil Banking Sector Report 2024-2025

In 2023, Brazil's banking sector faced a challenging yet active year, achieving significant financial results while navigating through economic difficulties. The sector reported a net income of approximately BRL 145bn, marking a peak in profitability over recent years. However, this performance was tempered by rising credit losses and increasing levels of nonperforming loans. The outstanding loan portfolio in Brazil showed a growth of 8.1% y/y in 2023, which was a slowdown compared to the 14.5% growth seen in 2022. The total volume of financing reached BRL 5.8tn by the end of 2023. Corporate credit grew by 4.7% y/y, while household credit expanded by 10.4% y/y. This deceleration was largely influenced by elevated borrowing costs and a cautious approach to lending. Persistently high interest rates and inflation weakened the repayment capacity of small and midsize enterprises (SMEs) and individuals, leading to higher NPLs during 2023, particularly in unsecured retail loans such as credit cards and personal loans. Monetary policy played a crucial role as well, with the central bank initiating a monetary easing cycle in August 2023. The benchmark interest rate was reduced from 13.75% to 11.75% by year-end, which started to positively influence the credit market, leading to signs of increased lending and lower interest rates on new loans.

This report provides a complete and detailed analysis of the "Banking" sector for Brazil. EMIS Insights presents in-depth business intelligence in a standard format across countries and regions, providing a balanced mix between analysis and data.

What this report allows you to do:

• Understand the key elements at play in the "Banking" sector in Brazil
• Crystallise the forces both driving and restraining this sector in Brazil
• Ascertain Brazil’s position in the global sector
• Build a complete perspective on sector trade, investment and employment
• Understand the competitive landscape and who the major players are
• View M&A activity and major deals
• Gain an understanding of the regulatory environment for the sector in Brazil.
• Build a clear picture of trends, output and consumption for specific sub-sectors