R$ 3.9 billion. That was the recurring net profit of Caixa Econômica Federal, Brazil's state-owned mortgage giant, in the second quarter, up 5.9% from the same period of 2025, the bank reported on Wednesday (26). Recurring profit is the earnings from the bank's normal operations, stripped of one-off events.
In practice, Caixa made about R$ 43 million per day between April and June. Every 24 hours, the bank pocketed the equivalent of more than 26,000 monthly minimum wages, currently R$ 1,621. A year earlier, quarterly profit was roughly R$ 3.7 billion.
The engine behind the result was the credit portfolio, the bank's stock of loans and financing, which reached R$ 1.4 trillion, up 11.9% in 12 months, according to Folha. Lending to individuals rose 8.7%, to R$ 156.5 billion, while corporate lending grew 6.5%, to R$ 113.9 billion. With more credit on the street, the net interest margin (what is left between the interest the bank charges and what it pays savers and investors) rose 20.2%, to R$ 19.7 billion.
In home loans, Caixa's core business, the outstanding balance hit R$ 1.005 trillion, up 15% in 12 months, according to Valor. The bank holds 67.7% of Brazil's housing finance market, and 61.5% of those loans are funded by the FGTS, a compulsory severance fund that employers pay into every month on behalf of workers.
Loss provisions nearly double
The context: every bank must set aside money for loans that may never be repaid, known as provisions. A Central Bank rule now requires banks to reserve even for losses that have not happened yet, but are expected. Because of that, Caixa said, its provisions jumped 97.6% in one year, to R$ 7 billion.
The effect shows up in profitability. ROE (return on equity, how much the bank earns on its own capital) fell 2.7 percentage points, to 9.16%. In the mortgage book, defaults over 90 days rose from 1.26% to 1.45%: of every R$ 100 lent, R$ 1.45 is now overdue.
Funding grew as well. Savings deposits at Caixa total R$ 405.6 billion, up 3.9% in 12 months. LCIs (real estate credit notes, a tax-free investment for individuals) jumped 21.8%, to R$ 271 billion.