Jun 5, 2023

The National Bank for Economic and Social Development (BNDES) had recurring net income of BRL 1.7 billion in the first quarter of 2023. This profit is calculated disregarding extraordinary events, as a result of asset disposals, provision for credit risk and dividend income and Interest on Equity (JCP).

In the same period last year, the amount recorded was BRL 2.3 billion. The decrease is mainly due to the lower average Treasury balance - mainly due to early settlements of debts with the National Treasury made in the last quarter of 2022. The figures were presented by directors Alexandre Abreu and Nelson Barbosa on Tuesday, 5/16, at a press conference at the BNDES office in São Paulo.

The recurring financial intermediation product reached BRL 4.4 billion, 12% lower compared to the same period of the previous year. This result excludes divestment operations from the variable income portfolio and results obtained from investments in affiliates - among other effects of a sporadic nature -, in addition to dividend/JCP revenues and reversals or constitutions of provision for credit risk (PRC).

Net income -- Net income in the first quarter of 2023 was BRL 4 billion, impacted by dividend/interest income of BRL 2.4 billion (basically Petrobras) and the net reversal of BRL 700 million of credits provisioned in previous years -- mainly honor of BRL 300 million by the Export Guarantee Fund (FGE).

The loan and onlending portfolio, net of provision, totaled BRL 468.1 billion, representing 68.3% of total assets on March 31, 2023, the same level as on December 31, 2022. The same stability occurred in the balance of the expanded credit portfolio (including bonds), at BRL 479 billion. The effect of interest appropriation and monetary restatement was attenuated by the net return on operations (settlements were higher than new disbursements).

The equity portfolio totaled BRL 57.5 billion on March 31, 2023, a decrease of 8.3% in the quarter, mainly due to the reduction in the market value of companies invested in the quarter, especially JBS, Eletrobras and Petrobras.

The total assets of the BNDES System totaled BRL 685.8 billion on March 31, 2023, an increase of BRL 2 billion (0.3%) compared to December 31, 2022.

Performance -- Total disbursements, including bonds, other credit assets, variable income and non-refundable operations, grew 21.6% compared to the same period of the previous year and totaled BRL 19.1 billion in the first quarter. However, there was a 44.8% decrease compared to the BRL 34.6 billion disbursed in the last three months of 2022.

The default (+ 90 days) remained at a low level, fluctuating from 0.13% on December 31, 2022 to 0.06% on March 31, 2023, lower than the default of the National Financial System - SFN (3.33% overall and 0.53% for large companies, both on the same date).

The good quality of the loan and transfer portfolio was maintained, with 94.2% of operations classified at the lowest levels of risk (between AA and C) on March 31, 2023. This percentage remains higher than that recorded by the National Financial System:  91% as of December 31, 2022 (latest available information).

Sources of funds – As of March 31, 2023, FAT and National Treasury accounted for 58% and 7.1%, respectively, of the BNDES's sources of funds, the same level as at the close of the last fiscal year. The amount due by the BNDES to the National Treasury reached BRL 46.6 billion, a slight reduction of 2.3%.

FAT remained the main creditor. In the quarter, BRL 5.5 billion entered the Constitutional FAT, and the amount of BRL 1.8 billion related to interest, net of ordinary payments, was appropriated. The fund's balance with the BNDES on March 31, 2023 was BRL 378.9 billion.

Liabilities to international organizations and holders of external securities of the BNDES still outstanding totaled BRL 26.3 billion, down 4% in the quarter, due to the effect of the devaluation of the US dollar (which reduced the outstanding balance of the contracts) and ordinary amortizations of these loans.

Shareholders' equity reached BRL 132 billion on March 31, 2023, with no material change in relation to the balance on December 31, 2022.

Prudential limits – Basis for calculating the prudential limits established by the Central Bank, the Reference Equity totaled BRL 171 billion on March 31, 2023, compared to BRL 175.5 billion on December 31, 2022. The variation reflects the impacts of the reduction of BRL 5.3 billion in FAT as Level 2 Capital, following a schedule defined by CMN Resolution No. 4,679/2018.

The Basel Index remained in a comfortable situation, fluctuating from 34.6% at the end of December 2022 to 33.1% in March 2023, well above the 10.5% required by the Central Bank.

To access the complete financial statements of the BNDES and its subsidiaries, access the Investor Relations Portal: Investor Relations Portal.