I - Financial system credit operations
The balance of financial system credit operations, including operations with nonearmarked and earmarked resources, reached R$3,145 billion in May, up 0.1% in the month and 2% in twelve months, with emphasis on the performance of household transactions, which totaled R$1,526 billion (+0.4% in the month and +4.8% in twelve months). Credit operations in the corporate segment fell by 0.1% in the month and 0.5% in twelve months, amounting to R$1,619 billion. The credit/GDP ratio reached 52.4%, compared to 52.6% in April and 53.3% in May of the previous year.
The credit portfolio with nonearmarked resources reached R$1,580 billion in May (+0.2% in the month and -0.2% in twelve months). The household portfolio reached R$800 billion (+0.5% in the month), highlighting credit card operations with immediate payment, reflecting an increased seasonal demand related to the Mother's day. The corporate segment posted a balance of R$780 billion (-0.1% in the month); increases in Advance on Exchange Contracts (ACC) and in external transfers were offset by decreases in working capital and overdraft accounts.
The credit portfolio with earmarked resources reached R$1,565 billion (+0.1% in the month and +4.4% in twelve months). Operations in the household segment increased by 0.4%, totaling R$726 billion, with emphasis on the increase in house financing (+0.7%). Corporate earmarked credits dropped to R$840 billion (-0.2% in the month), highlighting the decline of 1.4% in the rural credit portfolio.
Among the sectors of economic activity, the most significant decreases were observed in trade (-1.4%, balance of R$278 billion), construction (-1.3%, R$106 billion) and the mining industry (-3.2%, R$43 billion). It should be highlighted the growth in the balances referring to transportation (+1.9%, R$162 billion).
Considering operations above R$1,000, credit balances fell by 0.5% in the North (R$116.3 billion), 0.3% in the South (R$548 billion) and 0.1% in the Southeast (R$1,684 billion). In the Northeast, credit balances grew by 0.3% (R$401 billion) and remained stable in the Central-West (R$327 billion).
I.1 - Interest and default rates
The average interest rate of financial system credit operations, including nonearmarked and earmarked resources, reached 32.7% p.y. in May; the highest level observed since records began in March 2011, with increases of 0.2 p.p. in the month and 5.6 p.p. in 12 months. In the nonearmarked segment, the average cost closed at 52.3% p.y. (+0.2 p.p. in the month and +9.7 p.p. in 12 months) and 11.1% p.y. in the earmarked segment (+0.4 p.p. and +1.9 p.p., respectively).
In the household segment, the average interest rate closed at 42% p.y. (+0.6 p.p. in the month and +7.2 p.p. in 12 months). The average rate of credit operations with nonearmarked resources reached 71.7% p.y,, increasing by 0.7 p.p. (overdraft accounts, 2.6 p.p.; revolving credit card, 18.9 p.p.) while the rate with earmarked resources reached 10.4% p.y., increasing by 0.4 p.p. (house financing, +0.6 p.p.).
The average interest rate reached 21.9% p.y. in the corporate segment, declining by 0.2 p.p. in the month and increasing by 3.1 p.p. in 12 months. With regard to operations with nonearmarked resources, the average rate decreased by 0.5 p.p. to 30.6% p.y. in the month (external transfers, -8.8 p.p.; and working capital, -0.3 p.p.); while, in the earmarked segment, increased by 0.2 p.p. to 11.8% p.y. (investment financing with BNDES resources, 0.4 p.p.).
The bank spread of operations with nonearmarked and earmarked resources reached 22.8 p.p. in May, growing by 0.4 p.p. in the month and 5.4 p.p. in 12 months. The monthly growth reflected increases by 0.8 p.p. to 39.7 p.p. in operations with nonearmarked resources and 0.3 p.p. to 4.2 p.p. in operations with earmarked resources. The default indicator reached 32 p.p. in the household segment and 12.2 p.p. in corporate segment, growing by 0.8 p.p. and 0.2 p.p., respectively, in the month.
The default rate of financial system credit operations related to credit balances overdue for more than 90 days reached 3.8% in May (+0.1 p.p. in the month and +0.8 p.p. in 12 months). The delinquency rate remained stable at 4.3% in the household segment and increased by 0.1 p.p. to 3.2% in the corporate segment. The default rate rose by 0.2 p.p. to 5.9% in operations with nonearmarked resources, and by 0.1 p.p., to 1.7% in operations with earmarked resources.
II - Evolution of monetary aggregates
The average daily balance of the monetary base reached R$238.4 billion in May, rising by 0.4% in the month and 2.7% in twelve months. This monthly variation reflected a growth of 5.4% in bank reserves and a decrease of 0.4% in currency issued.
Among the monthly flows of factors conditioning the monetary base, items worth highlighting were the net purchases of foreign currency on the interbank market, with an expansion of R$13.9 billion, and operations with federal government securities, representing an overall decrease of R$18.4 billion, based on net placements of R$42.9 billion on the primary market and net purchases of R$24.5 billion on the secondary market.
The average daily balance of the restricted means of payment (M1) totaled R$302.7 billion in May, dropping by 0.2% in the month as a result of a reduction of 0.2% in currency outside banks and demand deposits. In twelve months, M1 fell by 1.2%.
The balance of the means of payment in the M2 concept, which corresponds to M1 plus savings deposits and private securities, grew by 0.4% in May, totaling R$2.2 trillion. Private securities grew by 0.8%, reaching R$1.3 trillion, following net inflows of R$12 billion in time deposits. The balance of savings deposits dropped by 0.1% in the month, totaling R$642.1 billion, with net redemptions of R$6.6 billion.
M3, comprising M2, quotas of fixed-income funds and government securities backing repurchase operations between the public and the financial sector grew by 0.7% in May, totaling R$4.9 trillion. The balance of quotas of fixed-income funds grew by 1.1% in the period, reaching R$2.5 trillion, consequent upon net inflows of R$13.3 billion. M4, comprising M3 and government securities held by the nonfinancial public grew by 0.9% in the month and 11.3% in twelve months, totaling R$5.8 trillion.