• Evolution of Disbursements
• Evolution of Net Profit

The Evolution of the BNDES’ Disbursements

R$ billion

The BNDES’ disbursements closed the year 2011 at R$ 139.7 billion. The result was within the Bank’ expectations and allowed the institution to continue contributing to the expansion of investments in the Brazilian economy, with emphasis on the infrastructure sector.

One of the main highlights of last year's performance was the fact that the BNDES recorded the highest number of operations in its history. The total number of funding operations was 896,000, an increase of 47% compared to 2010, expanding access to the Bank’s credit, particularly for micro, small and medium enterprises (MSMEs).

Total disbursements to MSMEs, R$ 49.8 billion, was a record, and the proportion of resources allocated to smaller companies also closed the year at its highest level in history, 36% of total disbursements. The BNDES Card was one of the factors behind such growth. Card disbursements reached R$ 7.6 billion, an increase of 76% over 2010.

The geographic decentralization of credit was a highlight. The North and Northeast regions accounted for 22% of the Bank’s total disbursements, an increase in relation to the 17% in 2010. The participation of the two regions in the BNDES’ disbursement is in keeping with their contribution to Brazil’s GDP.

Although they account for a 17% drop compared to 2010 disbursements, R$ 168.4 billion, releases remained at a level similar to that year. Subtracting the R$ 24.7 billion invested by the BNDES in the capitalization of Petrobras, 2010 disbursements reached R$ 143.6 billion.

Exceptional operations in 2010 with the oil company also had a statistical impact on other BNDES indicators in comparison with 2011. Consultations for the Bank’s funding closed 2011 at a high level, R$ 195.2 billion, despite receding 24% in comparison with 2010. Approvals were at R$ 164.5 billion, which represented a decline of 18%.

Strategy - The BNDES’ performance in 2011 helped the country maintain the expansion of investments in GDP growth, allowing Brazil to grow with no bottlenecks and inflationary pressures.

At the same time, the performance reflected the measures adopted in 2011, when the Bank changed the interest rates of the BNDES Investment Maintenance Program (BNDES PSI), reduced its level of participation in total loans and suppressed working capital lines that had been created in the most acute moment of crisis (pre-shipment for consumer goods and SGP). Thus, the BNDES seeks to broaden the space for growth in the performance of the private sector in granting long-term credit.

Sectors - The biggest highlight in 2011 was the Bank’s transfers to large infrastructure projects. The infrastructure sector led disbursements, at R$ 56.1 billion or 40% of total disbursements. The most significant amounts were for highway transport, at R$ 26 billion, and electricity, at R$ 15.9 billion.

To  industry, the Bank disbursed R$ 43.8 billion (representing 32%), with emphasis on transport equipment (R$ 8.2 billion), chemicals and petrochemicals (R$ 7.1 billion), food and beverages (R$ 6.8 billion) and engineering industry (R$ 4.5 billion). To trade and services, the BNDES invested R$ 29.2 billion (21% of total) and to agriculture, R$ 9.8 billion (7%).

Financing machinery and equipment in the BNDES PSI lines strongly contributed to investments in all sectors supported by the Bank. In 2011, disbursements to the PSI - a program which expires next December - amounted to R$ 42.5 billion.
 

The Evolution of the BNDES’ Net Profit

R$ billion

The BNDES registered a net profit of R$ 7.9 billion from January to September 2011. The result represents an increase of R$ 1.8 billion (29.5%) compared to the R$ 6.1 billion obtained in the same period in 2010.

The main factors that contributed to the BNDES’ performance in 2011 were the revenue from the reversal of provisions for credit risk, R$ 1.6 billion, and the growth of R$ 1.3 billion in the result from corporate shares (stakes), 32.1% higher than in September 2010.

Revenue from reversal of provisions for credit risk in 2011 was due to improvement in the quality of the Bank's portfolio and loan recoveries, considered as losses in previous years, amounting to R$ 710 million.

Increased earnings from corporate shares (stakes) in 2011 were due primarily to: (i) an increase of R$ 1.4 billion (growth of 88.2%) in revenue from dividends and interest on equity capital, which amounted to R$ 3 billion in the accumulated nine months of 2011; and (ii) an increase of R$ 1.4 billion from equity income, which rose from a loss of R$ 190 million in 2010 to a gain of R$ 1.22 billion in 2011.

The BNDES’ financial performance is now consistent with its activities as a development bank, reaching a loan portfolio of approximately R$ 403 billion in September 30, 2011. Gross product of financial intermediation in the first nine months of 2011 amounted to R$ 4.1 billion, a slight decrease (5.9%) over the same period in 2010.

This result is due to both the decrease in interest rates the BNDES charges on loans and the increase of investments in variable income.

Financial position - The BNDES’ net equity amounted to R$ 56.4 billion, corresponding to equity reference (PR) of R$ 94.1 billion, superior to the R$ 83.1 billion achieved in December 31, 2010. The growth in PR resulted from a capital increase of R$ 6.4 billion from the first quarter.

The equity reference is the base used by the Central Bank to set prudential limits that must be followed by all financial institutions. The higher the BNDES’ equity reference, the greater its ability to grant funding.

The capital adequacy ratio (CAR - Brazil’s Basel Index) recorded by the BNDES system was 20.5%, a comfortable situation in relation to the 11% required by the Central Bank. The CAR is the indicator that measures the relation between the institution's capital and the amount of borrowed funds, thus reflecting the level of a bank’s solvency.

The BNDES’ default rate represented 0.12% of the total portfolio. The quality of the Bank's portfolio is evident in its credit risk profile: 99.2% of total loans were classified between the AA and C risk levels on September 30, 2011, well below the average in the Brazilian Financial System.

Credit quality is a result of the consistency in the BNDES’ operational policy, in which loans granted are subject to continuous monitoring, and they require guarantees to cover the debt position throughout the estimated term of the contracts.

The BNDES System’s total assets totaled R$ 586 billion on September 30, 2011, an increase of R$ 37.3 billion (6.8% compared to December 31, 2010). 

See also:

• Performance reports
• Disbursement and annual net profit in 2010
• Disbursement and annual net profit in 2009