The BNDES disbursed R$ 54.4 billion between January and April this year, an increase of 59% compared to the same period last year.
The increase covered all sectors supported by the Bank, especially industry, which accounted for 37% of total disbursements in the period (R$ 20.2 billion and up 113% over the same period last year). Infrastructure accounted for 27%.
The BNDES’ approvals for financing recorded the same behavior in all segments. Approvals totaled R$ 58.2 billion in the first four months of the year (up 64%).
Other disbursements that stood apart include micro, small and medium-sized companies (MSMEs), which received R$ 21.3 billion in the first four months of the year (increase of 53.5% compared to January-April 2012). With this, the MSMEs accounted for 39% of Bank’s total releases up to April.
The BNDES’ results in the first four months of the year reinforce the trend of increasing investment and growth in gross fixed-capital formation (FBCF), stimulated by more financing for machinery and equipment.
BNDES Finame line operations, which focus on acquiring capital assets, posted a total of R$ 23 billion between January and April, a rise of 77.5% compared to the same months in 2012. Items such as machine tools and metal working, fundamental to industrial investments, had significant releases increments, of 122% and 430%, respectively.
Trucks also saw high growth in disbursements, which reached R$ 8.7 billion in January-April, an increase of 57.5% compared to the same months in 2012 — a year when sales of new vehicles were postponed due to the change of engines to the Euro 5 standard. Moreover, the truck market upsurge reflects cargo-handling of the good agricultural harvest this year and the country's infrastructure works.
The behavior of the demand for machinery and equipment is due to the BNDES’ Investment Maintenance Program (BNDES PSI), with very competitive interest rate, fixed at 3% per year in the first half of 2013 and 3.5% a year in the second half. The prior definition of the interest rates that will last throughout this year allows predictability, thus contributing to better investment planning.
The BNDES PSI disbursements reached R$ 28.5 billion in January-April this year, accomplishing almost 90,000 operations. In the last 12 months, up to April, PSI releases accumulated R$ 65.1 billion, an increase of 94% compared to the preceding 12 months.
Machinery and equipment as well as transport equipment were also featured in the BNDES consultations, with growth of 151% and 234%, respectively, in the first four months of the year, compared to the same period in 2012.
Total consultations at the Bank accumulated R$ 70 billion up to April, a decrease of 6%. The index, however, is strongly influenced by a Petrobras credit limit operation, totaling R$ 9.4 billion, which underwent consultation in early 2012.
In the infrastructure sector, the BNDES’ disbursements stood at R$ 14.6 billion in January-April last year, an increase of 9% if compared. The highest increases were registered in the highway and railway transportation segments.
The BNDES posted net profit of R$ 8.2 billion in 2012, a year marked by instability in financial markets and poor performance on stock markets. The most significant contribution to this profit was the earnings from investments financing. Comparing 2012 to 2011, profit was down 9.6% on the previous year, from R$ 9 billion.
The positive performance basically comprises earnings from credit and fixed-income operations, which totaled R$ 9.5 billion. The amount represents a 26% increase in comparison with 2011. This result, within a scenario of lower fees fostered by the BNDES in 2012, is proof of the good management of the portfolio, and that it is in accordance not only with the efforts being made by the government to encourage production investment, but also with the broader and more competitive conditions in the credit market.
The fixed-income segment contributed 67.2% and the treasury (R$ 4 billion), 28.3%, to the BNDES’ gross earnings presented in 2012. The increase in fixed-income is the result of, mainly, a 15.5% increase in the Bank’s credit portfolio, which, in turn, is a consequence of the higher volume of operations carried out in the period.
In 2012, the BNDES’ disbursements reached R$ 156 billion, spread across 990,000 operations, to 261,000 individuals and companies – record figures. Of the total, some R$ 87 billion was invested outside the Southeast region, thus contributing to decentralizing development.
The result of treasury operations is associated with the sale of federal bonds over the last half so that the BNDES was able to fulfill its disbursement budget. The importance of profitability in financial intermediation operations gained ground owing to the poor performance of the share market in 2012, causing the variable income segment to account for 6.8% of the Bank’s gross earnings.
The fall in profit is also partially due to the positive impact from allowances for credit risk in the 2011 earnings, which totaled revenue of R$ 717 million. This is because of non-recurring events in credit recovery, which generated revenue of R$ 881 million in that year. In 2012, such revenue was not repeated. On the contrary, the Bank recorded expenses with allowances for credit risk to the tune of R$ 320 million, reflecting growth in the financing portfolio in the period.
In 2012, variable-income operations, which historically contribute expressively to the profit of the BNDES System, reflected the impact of the international financial crisis on the companies in which it is has a stake.
Throughout 2012, there was a R$ 4.2 billion (81.5%) drop in the gross earnings from variable income, which totaled approximately R$ 1 billion. In 2011, the amount recorded was R$ 5.2 billion. This result was also affected by Resolution Nº 4,175, of 12/27/2012, which was aimed at revealing the accounting differences of investments in accordance with the BNDES’ business model, with emphasis on the long term. In this case, the negative variation of the fair value of specific assets classified as available-for-sale will only be recorded in the results when and if the effective sale is made.
It is important to point out that, even under such circumstances, the amounts of earnings that have not been effectively made from the share portfolio – the difference between the price paid for a share and its price at the end of the fiscal year – was expressive at the end of December, equivalent to R$ 12 billion (17.8%).
Default – Despite uncertainties in financial and capitals markets, default in the BNDES System remained at a low level, reflecting the robustness of the credit and on-lending portfolio. The percentage was a mere 0.06% over the year, lower than that recorded in December 2011 (0.14%) and the lowest in the Bank’s history. Average default in the National Financial System in December 2012, according to Brazil’s Central Bank, was 3.6%.
Low default and the credit profile reflect the consistency of the BNDES’ operational policies. This is the result of, above all, the quality of the management of the credit portfolio, which seeks to make reduced interest rates and loan terms more compatible for long-term projects.
Financial position – The BNDES System’s net worth totaled R$ 52.2 billion, which corresponds to a reference net worth (PR) of R$ 89.6 billion, down from the R$ 99 billion obtained on December 31, 2011.
The fall in PR is due, mainly, to the depreciation in the fair value (market value of the share portfolio) in the period, whose effect is the counterpart to net equity and to the distribution of complementary dividends on profit in 2010 and 2011 but paid in 2012.
The capital adjustment index (Basel Index) recorded by the BNDES System was 15.4%, which is higher than the 11% required by Brazil’s Central Bank.
The total assets of the BNDES System reached R$ 715.5 billion on December 31, 2012, up R$ 90.7 billion (14.5%) in comparison with December 31, 2011. The balance of the credit and on-lending portfolio reached R$ 492.1 billion on December 31, 2012, of which 79.5% corresponds to long-term credit.
BNDESPAR – Profit recorded by BNDESPAR, the BNDES’ equity holding arm, was R$ 298 million in 2012. This result was impacted by the fall in revenue, especially in dividends, from the decrease in the equivalence equity result as well as adjustments for impairment in companies in the BNDESPAR portfolio, and by the effects of the international crisis on the capitals markets.
The impairment represents losses that may or may not be financially achieved in the future, taking into account the long-term profile of BNDESPAR’s share portfolio. Besides this, they are equivalent to approximately 3% of the total value of the share portfolio, which comprises 142 companies, and whose unrecorded gain (the difference between the market price and the accounting costs) remained expressive at the end of 2012.