State-owned companies’ profits fall 24% in the first year of Lula’s government


The income of the main federal state-owned companies fell by 24% in the first year of the Lula government. In 2023, the PetrobrasBanco do Brasil, Banco de Desenvolvimento do Brasil (BNDES), Caixa Econômica Federal and Correios had a combined net profit of R$182 billion.

+ Read more Economy news in the West

The PT government’s negative performance was mainly driven by the drop in Petrobras’ results. The oil company presented a 33% drop in profits compared to 2022. The latest result represents an amount of R$124.6 billion.

BNDES had a 5% drop in profits in 2023. On the other hand, Banco do Brasil had growth of 11.3% in 2023 (to R$35.5 billion), and Caixa had an expansion of 15.5% (R$10.6 billion).

What influenced the performance of state-owned companies?

Regarding its poor performance, Petrobras alleges the influence of the devaluation of oil on the international market, which affected oil companies around the world. The value of a Brent barrel fell by 18% in 2023, compared to 2022.

Check it out: “Petrobras and BNDES record a drop in profits in 2023”

The company also blames lower margins on the sale of derivatives and increased operating costs.


BNDES disposes of shares in 2022 | Photo: Fernando Frazão/Agência Brasil

The BNDES administration told the Folha de S.Paulo that the sale of shares in 2022 interfered with the comparison basis. That year, the bank disposed of shares in different companies.

Read also: “Petrobras for ‘everyone, everyone and everyone’”

Lula’s management, however, wants to expand the bank’s presence as a partner in companies. According to BNDES’s financial director, Alexandre Abreu, the current management decided not to sell shares, and this benefited the institution.

Bank of Brazil

Banco do Brasil directors attribute the institution’s positive performance to the growth in revenue from services, such as consortiums, insurance and credit and guarantee operations.


Caixa’s vice president of finance, Marcos Brasiliano Rosa, highlights the improvement in the financial margin in 2023, with more revenue from credit operations. Furthermore, he talks about the benefits of keeping control of defaults.

+ Competition spree: Caixa Econômica Federal opens 4 thousand vacancies

For 2024, Rosa believes that performance should improve, especially due to the fall in interest rates.


At Correios, the loss was 22% lower (R$596 million). The reason was a “reduction in expenses and an improvement in the financial result”.

The article is in Portuguese

Tags: Stateowned companies profits fall year Lulas government



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