# 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.*

- Published: 2026-03-05
- Section: Insights
- Tags: Brazil banking sector, Brazil credit market, Brazil mortgages, Brazilian banks, Caixa, Caixa 4Q25 profit, Caixa Econômica Federal, state-owned banks Brazil
- URL: https://brazilstockguide.com/insights/caixa-4q25-profit-r2-5-billion/

**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.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/caixa-4q25-profit-r2-5-billion/