May 14, 2015

• Releases for innovation increased 9% reaching R$ 1 billion.
• The BNDES Card, exclusive to micro, small and medium-sized companies, grew 16% in the period

The Brazilian Development Bank (BNDES) disbursed R$ 33.3 billion in the first quarter of this year, registering a drop of 24% against the same period in the previous year. Approvals in the amount of R$ 21 billion and consultations in the amount of R$ 25 billion also dropped, respectively, 46% and 47% against the first quarter in 2014.

Such results partially reflect the adjustments to the BNDES’ new operating policy (PO). The Bank is reducing maximum participation levels of Long-Term Interest Rates in its financing, thus making more room for the long-term financing capital market. The last such adjustment occurred in December 2014.

Another factor was the revision of the conditions in the BNDES’ PSI program (Investment Maintenance Program), which supports capital goods with fixed rates. Although still highly competitive, the increase in rates and decrease in the BNDES’ maximum participation level in financing affected the performance of the program, as expected. Following this, the result of the first quarter for 2015 was within the Bank’s expectations.

One of the highlights in the Bank’s performance in the quarter was releases for innovation, which increased 9% in relation to the same period in the last year, reaching R$ 1 billion.

Micro, small and medium-sized companies – which the BNDES’ new operating policy assured it would continue to provide the best financing conditions – have maintained their important participation in financing matters, answering for 31% (R$ 10.2 billion) from the BNDES’ total disbursements in the first quarter of 2015.

Performance was boosted by the BNDES Card, whose disbursements in the period increased 16%, reaching R$ 2.8 billion. In the first quarter of 2015, from the 222,000 operations performed with MSME, some 182,000 used the BNDES Card, which is exclusive to companies of that size.

Of the total the BNDES released between January and March of this year, the infrastructure sector absorbed R$ 11.7 billion (35% participation), followed by industry, with R$ 10.4 billion (31%), trade and services, with R$ 7.6 billion (23%) and cattle-raising and agriculture, with R$ 3.5 billion (11%).

Regarding approvals, industry had the highest participation (40% of the total approved) with R$ 8.4 billion. The BNDES approved R$ 5.8 billion (28% of the total) for infrastructure, followed by trade and services with R$ 4.3 billion (participation of 20.6%) and cattle-raising and agriculture, with R$ 2.3 billion (11%).

Check here the progress of the BNDES’ performance.
Check here the 1Q performance bulletin.