Brick in the month: Brazil leads ranking of bank profits.
The editor of Tijolaço, Fernando Brito, highlights that a study by Dieese on the profitability of Brazilian banks places the four largest national financial institutions among the 15 most profitable in the world, a number equal to that of Canada, which has become one of the largest "tax havens" in the world; "In the first half of 2017, despite the adverse economic scenario, the five largest banks in the country had a very strong performance, with an increase in net profit," says Brito; for him, "the crisis, unlike the sun, did not shine for everyone."
By Fernando Brito, in brick - In the recently released Dieese study on the profitability of Brazilian banks, the continuation of a scandal in an economy that prioritizes rent-seeking over labor and production is highlighted, placing the four largest Brazilian banks among the 15 most profitable in the world, a number equal to that of Canada, which has become one of the world's largest "tax havens".
In the first half of 2017, despite the adverse economic scenario, the five largest banks in the country had a very strong performance, with an increase in net profit, although there was a drop in financial intermediation (the banks' main accounts) as well as in operating results, compared to the same period of the previous year. (...)
The positive results achieved by the five largest banks are due, among other factors, to the increase in revenue from fees and services, but especially to the decrease in funding expenses that accompanied the reduction in the Selic rate. Tax expenses (IR and CSLL) also fell, partly due to the receipt of tax credits, but also because of the decrease in taxes due as a result of lower operational results and Financial Intermediation.
While the high profits of the five largest banks grow each quarter, significant restructuring is observed in the sector, with the growth of virtual transactions (via mobile and internet) and the reduction of physical and functional structures, with the closure of branches and jobs. This situation has been aggravated by the implementation of incentivized retirement and voluntary redundancy plans by Banco do Brasil, Caixa Econômica Federal, and Bradesco.
The crisis, unlike the sun, did not shine on everyone.