Bloomberg Línea — This is the Breakfast – your first sip of news. A selection from Bloomberg Línea with the most prominent topics in the world of business and finance. Good morning!
The first quarter results of Brazilian banks have shown a recovery in credit and a reduction in default rates – that is, payments more than 90 days late. In the view of Gabriel Ferreira, CEO of Banco BV, the numbers show that the worst moment of the country’s credit cycle is behind us and point to a gradual return to levels prior to the Covid-19 pandemic.
“For individuals, we have certainly passed the worst moment of this credit cycle,” said Ferreira in an interview with Blomberg Línea, when commenting on the bank’s quarterly results, released on Tuesday (7).
“Inflation is anchored, the job market is at a good level, we had important GDP growth last year. The conditions are right for convergence to the historical average in each of the portfolios.”
Ferreira’s assessment echoes that of other leaders in the financial sector. When commenting on Itaú Unibanco’s financial results, Milton Maluhy Filho stated in a conference call that the current default levels are “adequate” after the adjustments made to the portfolio.
⇒ Read more: The worst moment for credit for individuals is behind us, says BV CEO
For Gabriel Ferreira, from BV, the conditions are in place to improve credit (BV/Disclosure)(BV/Disclosure)
On the markets radar
On the day of interest rate decisions in Brazil, investors monitor the corporate earnings season around the world this Wednesday (8), looking for solid evidence of a recovery in profits before taking this month’s rally forward.
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