Brazil’s Caixa Profit Rises 5.9% to US$757.0 Million in Second Quarter
Caixa Economica Federal, Brazil's state-owned bank, posted a Q2 2026 recurring profit of R.9 billion (US57 million), up 5.9% in a year, driven by mortgages, while provisions for bad loans nearly doubled. The post Brazil’s Caixa Profit Rises 5.9% to US$757.0 Million in Second Quarter appeared first on The Rio Times .
Caixa Econômica Federal, Brazil's massive state-owned bank, announced a 5.9% rise in its recurring profit to US$757 million for the second quarter. This profit figure, R$3.899 billion, marks a 5.9% increase from the same period last year and a 12.4% jump from the first quarter of 2026. Despite this growth, the first-half profit fell by 17.6% year-on-year, sitting at R$7.4 billion.
The bank's financial margin, representing the interest earned, climbed by 20.2% to R$19.7 billion. Service revenue also increased by 12.9% to R$7.54 billion. However, administrative expenses rose by 5.9% to R$11.44 billion. The bank's loan portfolio reached R$1.448 trillion, a 11.9% increase from the previous year, with housing finance making up the majority at 69.4%.
The mortgage balance alone grew by 15% to R$1.005 trillion. Caixa's credit growth, particularly in mortgages, was the main driver of its second-quarter results. However, the bank faces challenges such as a rise in delinquency rates, particularly in farm loans, and a significant increase in provisions for bad loans, which nearly doubled to R$6.97 billion.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
