Brazil’s Caixa Econômica Federal (Caixa) FY2019 net income of BRL21.1bn ($4.82bn) represents a record year and is up 103% year-over-year.
In fiscal 2018 Caixa reported net income of BRL10.4bn.
Furthermore, Caixa’s return on equity of ROE of 25.0% in the fourth quarter is up by 7.3 percentage points compared to the prior quarter.
Caixa FY2019 total assets inch up by 2.3% during fiscal 2019 to BRL1.29trn.
Caixa FY2019 loans are flat at BRL693.7bn while deposits rise by 2.6% to BRL534.9bn.
On the other hand, less positive metrics include a 4.2 percentage points rise in the cost-income ratio to 50.06%.
Caixa FY2019 retail banking highlights
The bank launched the Payroll-Deductible Credit Card (Caixa Simples) in April 2019. It offers having the same features of a conventional credit card, with the advantage of an annual fee exemption. The card also enables the possibility of payment deducted from the payroll. Clients may opt for credit at the account of 95% of the limit available. Moreover, this is offered at a reduced interest rate of 2.85%, one of the lowest rates in the market. Between its launch in May 2019 and the end of the 2019 fiscal year, 760,000 Caixa Simples credit cards have been issued.
Subsequently in August, the bank rolled out the Caixa Sim credit card. This is focused on all segments of the market and also carries no annual fees. With this credit card, cardholders can make purchases in physical stores or online, in Brazil or abroad. Purchases, invoices, and limits can be monitored by the Cartões Caixa App. From its launch until the end of 2019, 839,000 cards were issued.
In August, Caixa revealed plans to launch a competitive process for a strategic partnership in the Acquiring Business segment. And in January 2020, Caixa opened a competitive process for a corporate partnership in prepaid cards.
Caixa Tem: promoting financial inclusion
In October Caixa launched the financial app Caixa Tem. This is focused on over 35 million low income clients and beneficiaries of social programmes. In a single app, it is possible to pay bills, transfer money and search social benefits.
The Caixa Tem app is developed to promote financial inclusion and expand the access of low-income individuals to Caixa services. Still in the testing phase, access to the application was granted to 200,000 customers.
By customer numbers, Caixa claims to be the largest Brazilian bank with 103.3 million clients. It ends 2019 with 4,129 branches, down by a net 41 outlets during 2019.