BNDES - Brazilian Development Bank

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Performance in 2013

The Evolution of the BNDES's Disbursements

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 Evolución del desembolso de BNDES

In 2013, the BNDES’ disbursements reached R$ 190.4 billion, up 22% compared to 2012. All sectors supported by the Bank have seen releases increase. Industry accounted for 30% of the total released (R$ 58 billion) and infrastructure for 33% (R$ 62.2 billion). This represented 22% and 18% percent of disbursements to these sectors in comparison to the previous year.

The largest relative expansion took place in the agricultural sector (up 64%), with a total R$ 18.6 million, reflecting the large volume of investments in the area due to the record crop in 2013. In the trade and services sector, the BNDES released R$ 51.5 billion, a 17% increment.

One of the BNDES’ performance highlights last year was its 27% expansion in disbursements to micro, small and medium-sized companies, which surpassed the Bank’s global releases the year before. The record amount of R$63.5 billion, equivalent to 33% of the total released by the institution last year, was disbursed to MSMEs.

Moderation – Loan approvals by the BNDES totaled R$ 239.6 billion in 2013, down 8% if compared to 2012. Consultations, at R$ 277.4 billion, also decreased by 11% in the same comparison, following suit with what happened to eligibilities (R$ 275.1 billion), down 7%. The fall in approvals, consultations and eligibilities is due to the high comparison base, but it is also a sign of the Bank’s more moderate disbursements in 2014.

The Evolution of the BNDES’ Net Profit

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The Evolution of the BNDES’ Net Profit

The Brazilian Development Bank (BNDES) registered net earnings of R$ 8.15 billion in the 2013 fiscal year, which is similar to the previous year, when net earnings totaled R$ 8.126 billion*. Last year’s results also show an improvement in other important indicators, highlighting not only the fall in default, which hit the Bank’s record low, but also the advance in allowances for credit risk.

The BNDES System’s expressive performance has remained stable, as in former years. This took place in the midst of a process to reduce the BNDES’ spreads, in keeping with the federal government’s effort to stimulate production investment, and in an unfavorable moment for the capitals market.

The positive result in 2013 was secured by Finame’s better performance, which offset oscillations in earnings from operations conducted by the BNDES and BNDESPAR. Specifically, Finame contributed R$ 1.538 billion to the 2013 earnings, up R$ 710 million in relation to 2012. This increase was due to allowances for credit risk, which amounted to revenue of R$ 761 million compared to R$ 45 million in 2012.

The BNDES’ own operations contributed R$ 4.894 billion (60.1%) of these earnings, compared to R$ 5.393 billion in 2012, due to lower earnings from financial intermediation, as a result of the decrease in spreads the Bank charges. 

Despite the unfavorable moment for the capitals market, the variable-income operations contributed to earnings in the financial year. BNDESPAR’s contribution was R$ 1.712 billion, slightly below the R$ 1.910 billion posted in 2012. One of the underlying factors for this decrease is the reduced volume of divestments, given the current low prices.

Default – Default in the BNDES System fell, reaching 0.01% on December 31, 2013, a record low. In September 2013, the BNDES’ default rate was 0.02% and on December 31, 2012, it was 0.06%. 

The low default rates reflect the proficient management, the quality of the credit portfolio and on-lendings, as well as the consistency in the BNDES’ operational policies. In comparison, the average default rate in the National Financial System (NFS) was 3% in 2013.

The low number of renegotiations the BNDES carried out throughout the 2013 fiscal year, which is equivalent to 1.2% of the portfolio on December 31, is another indicator that reaffirms this quality.

Financial position –The BNDES System’s net worth increased, totalizing R$ 60.626 billion in 2013. On December 31, 2012, net worth was R$ 49.993 billion*. With the increase in net worth, the Bank’s equity reference (ER) reached R$ 108.669 billion, above the R$ 102.868 billion posted on September 30, 2013, and the R$ 89.598 billion on December 31, 2012. The increase in the net worth and ER in relation to 2012, as previously disclosed, was mainly due to the R$ 15 billion in funds raised from the National Treasury, classified as an instrument eligible to principal capital in the terms of Resolution Nº. CMN 4,192/13. 

The Basel Index registered by the BNDES was 19.2%, above the 11% Brazil’s Central Bank requires, above the 17.7% registered in the results in September, 2013, and above the 15.4% in 2012.

The total assets of the BNDES System amounted to R$ 782 billion on December 31, 2013, presenting a robust increase of R$ 66.5 billion in relation to results on December 31, 2012. The results for on-lending and the credit portfolio, net after allowances for credit risk, reached R$ 565.2 billion on December 31, 2013, of which 80.8% corresponded to long-term credits.

* The amounts originally disclosed in 2012, as required by accounting norms, were adjusted for comparison, aiming to reflect the impact of the accounting pronouncement that took effect as of January 1, 2013, as detailed in explanatory note 4.11 in the financial demonstrations for December 31, 2013.

See also:

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BNDES disbursements grow 30% between January and March and total R$ 14.5 bi
The infrastructure sector, with emphasis on investments in electric power and transportation, grew 71% in the period and received R$ 7 billion Micro, small and medium-sized enterprises received R$ 6.25 bi (43.2% of total)