SAO PAULO May 24 State-controlled Caixa
Econômica Federal, Brazil's largest mortgage lender, reported a
sharp jump in first-quarter profit on Wednesday as loan
delinquencies continued to drop.
Brasilia-based Caixa posted a net income of 1.5
billion reais ($458.77 million), up 81.8 percent from a year
Excluding extraordinary items, net earnings grew 49.6
percent to 1.7 billion reais ($519.94 million).
In a statement, Caixa said delinquencies for 90 days or more
fell to the equivalent of 2.8 percent of outstanding loans, down
0.7 percentage point from a year earlier and 1 percentage point
below the average of Brazil's banking industry.
Since taking over in mid-2016, Chief Executive Gilberto
Occhi has fine-tuned Caixa's credit risk assessment models to
curb a surge in defaults and bad loans. Last year, they touched
all-time highs in some segments.
Delinquencies at Caixa are historically below the industry
average since more than 60 percent of its loan book is earmarked
for secured, collateralized mortgage lending.
Caixa's loan book rose 4.5 percent in the first quarter to
715 billion reais.
($1 = 3.2696 reais)
(Reporting by Aluísio Alves; writing by Silvio Cascione;
editing by Jason Neely and W Simon)