I - Financial system credit operations
Total financial system credit operations, including transactions with nonearmarked and earmarked resources, reached R$2,717 billion in January, up 0.1% in the month and 14.8% in twelve months. The credit/GDP ratio reached 56.1%, as compared to 56.5% in December and 53.3% in January 2013. In the monthly trajectory, the balance of household credit operations grew by 1%, totaling R$1,264 billion, while the balance of corporate operations amounted to R$1,453 billion, down by 0.7%.
The performance of credit operations in January reflected the prevalence of seasonal factors leading to the reduction of demand, especially in the corporate segment, in view of the reduced need for funds to maintain cash flow and inventories at the beginning of the year. As for household transactions, seasonality was associated with reduced utilization of rotating credit modalities and increased demand for personal loans. Interest rates and spreads kept on an upward trend, while default indicators remained stable.
Total lending operations with nonearmarked and earmarked resources fell 18.8% in January, totaling R$291 billion, based on respective reductions of 27.6% and 9.2% under corporate and household segments. In the corporate segment, the most accentuated expansions occurred under working capital, discount of trade bills, investment financing with BNDES funds and rural credits, whereas, in the household segment, it should be highlighted declines under credit cards and rural credits.
Operations with nonearmarked resources, which accounted for 55% of total credit operations, reached R$1,492 billion in January, corresponding to a decline of 1.1% in the month and expansion of 7.5% over twelve months. In the month, the 2.7% decline observed in the corporate portfolio, which added up a balance of R$743 billion, reflected reductions under working capital, discount of trade bills and vendor operations. The balance of nonearmarked credit operations in the household segment increased 0.6% in the month, totaling R$749 billion, highlighting the expansion under personal loans and overdraft accounts.
The volume of earmarked credit operations totaled R$1,225 billion, an expansion of 1.5% in the month and 25.3% over twelve months. The amount of household credit operations, R$515 billion, grew by 1.7% in the month, still driven by housing financing. Corporate operations totaled R$711 billion, up 1.4% in the month, emphasizing investment financing with BNDES funds.
Considering transactions with nonearmarked and earmarked resources, the balance of credit operations with the private sector dropped 0.1% in the month and increased 14.1% when compared to February 2013, reaching R$2,563 billion in January. The balances associated with the segments of trade, industry and other services registered respective declines of 2.9%, 1.2% and 0.8%. The portfolio of loans granted to the public sector reached R$154 billion, up 2.8% in the month, especially under the modality of BNDES funds for investments.
I.1 - Interest and default rates
The average interest rate on financial system credit operations, encompassing nonearmarked and earmarked resources, increased 1 p.p. in the month and 2.1 p.p. in twelve months, reaching 20.7% in January. As for the nonearmarked segment, the average cost remained at 30.7%, expanding 1.7 p.p. in the month and 4.5 p.p. when compared to January 2013. In the earmarked segment, the average rate reached 7.9%, with respective expansions of 0.4 p.p. and 0.6 p.p. in the same comparison basis.
In the household segment, the average interest rate rose 1.2 p.p. in the month and 2.1 p.p. over twelve months, reaching 26.8%. In the nonearmarked segment, the average rate stood at 39.9%, up 1.9 p.p. in the month, highlighting respective expansions of 6.1 p.p. and 5.1 p.p. under overdraft accounts and nonpayroll-deducted personal loans. Earmarked operations recorded an average cost of 7.7%, up 0.4 p.p. in the month.
As for corporate operations, the average rate reached 15.9%, expanding 0.8 p.p. in the month and 1.9 p.p. as compared to January 2013. In the nonearmarked segment, the average cost rose by 1.4 p.p. in the month, closing at 22.8%. The monthly variation reflected respective increases of 1.6 p.p. and 1.4 p.p. under guaranteed accounts and working capital. In the earmarked segment, the average rate reached 8%, up 0.3 p.p. in the month.
The banking spread of credit operations, considering nonearmarked and earmarked resources, stood at 11.8 p.p., an expansion of 0.7 p.p. in the month and a decline of 0.4 p.p. over twelve months. Spreads related to the corporate and household segments corresponded to 7.5 p.p. and 17.3 p.p., respectively.
Financial system default relating to transactions in arrears of more than ninety days stood at 3%, registering stability in both the corporate and household segments, with respective rates of 1.8% and 4.4%. In operations with nonearmarked and earmarked resources, the indicator stood at 4.8% and 0.9%, respectively.
II - Evolution of monetary aggregates
The average daily balance of the monetary base totaled R$235.6 billion in January, down 2% in the month and up 3.9% in twelve months. The monthly evolution of the aggregate reflected a decrease of 4.3% under currency issued and an increase of 9% under bank reserves, still reflecting the seasonal increase of currency demand observed in December.
Among the monthly flows of factors conditioning the monetary issue, highlights included operations with government securities, including Central Bank operations aimed at adjusting the money market liquidity, with a decline of R$49 billion, as opposed to National Treasury operations, which increased by R$22.8 billion. The impact related to public securities reflected net sales of R$152.4 billion on the secondary market and net redemptions of R$103.4 billion on the primary market.
The average daily balance of the restricted money supply (M1) totaled R$323.2 billion in January, down 4.7% in the month, corresponding to declines of 3.8% under currency held by the public and 5.4% under demand deposits. The cumulative 12-month M1 expansion reached 7.6%.
The balance of M2, which corresponds to M1 plus savings accounts and corporate bonds, totaled R$1.9 trillion in January, down 1.5% in the month. This change mainly reflected a decline of 9.2% under the balance of M1. The balance of corporate bonds totaled R$1 trillion, with net redemptions of R$8 billion. The balance of savings accounts grew by 0.5% in the month, reaching R$602.8 billion, with net inflows of R$756 million.
M3, comprising M2, quotas of fixed-income funds and public securities underlying repo agreements between the public and the financial sector, fell 0.1% in the month, mainly reflecting the decline under M2. The balance of quotas of fixed-income funds and repo agreements with federal securities grew, respectively, 0.4% and 12.2% in the period, totaling R$1.7 billion and R$146 billion, in the order. M4, which is made up of M3 and government securities held by the nonfinancial public, totaled R$4.4 trillion, declining 0.5% in the month, due to a 2.5% decrease under operations with federal securities, expanding 7.5% over the last twelve months.
Additional statistics to those disclosed in the Press Release are available on the time series system of the Central Bank of Brazil at http://www.bcb.gov.br/?sgs