CAIXA Posts R$2.5 Billion Profit in 4Q25, Down 44.6% Year-on-Year

Brazil’s state-owned lender expands credit and assets, but higher provisions and expenses weigh on quarterly earnings.

Mar 5, 2026 7:44 AM

By Brazil Stock Guide – Caixa Econômica Federal, Brazil’s largest public bank and the country’s dominant mortgage lender, reported net profit of R$2.5 billion in 4Q25, a 44.6% drop from the same quarter a year earlier, when earnings totaled R$4.5 billion. Profit also fell 33.5% compared with 3Q25, as higher administrative costs and credit provisions weighed on the quarterly result.

Despite the weak quarter, the bank delivered stronger full-year results. Net profit reached R$16.1 billion in 2025, an 18.7% increase from 2024, while recurring earnings totaled R$15.5 billion, up 10.4% year-on-year. Financial margin in the quarter reached R$17.5 billion, supported by expanding lending activity and higher intermediation revenues.

Credit remained the core driver of growth. Caixa’s total loan portfolio reached R$1.378 trillion in December, expanding 11.5% over 12 months. The growth was led by mortgage lending, where the bank maintains a 67.7% market share, reinforcing its position as the dominant player in Brazil’s housing finance market.

The mortgage portfolio climbed to R$938 billion, rising 13% from a year earlier, with new originations reaching R$72.6 billion in the fourth quarter. The bank also reported growth in consumer payroll lending and corporate credit, though at a slower pace than housing.

At the same time, profitability was pressured by rising costs. Provisions for loan losses totaled R$5.4 billion in the quarter, up 14.6% year-on-year, while administrative expenses increased to R$12.8 billion, reflecting higher personnel costs and operational spending.

Even with the weaker quarterly profit, Caixa’s balance sheet continued to expand. Total assets reached R$2.2 trillion, a 9.5% increase over the previous year, while funding totaled R$1.9 trillion. The bank maintained a solid capital position, with a Basel ratio of 16.4%, comfortably above regulatory requirements.

Beyond commercial banking, Caixa continues to act as a key operator of government programs. In 2025, the institution processed R$428.7 billion in social benefit payments, including Bolsa Família, unemployment insurance, and other federal transfers, reinforcing its role as a financial arm of Brazil’s public policy infrastructure.