Banks’ profits fall 26% in 2020 with pandemic, says Central Bank

The Covid-19 pandemic has affected the financial system and caused a 26% drop in banks’ profits in 2020 compared to the previous year, according to a BC report. Banks will pocket R$88.6 bn ($15.8 bn) in 2020, against R$119.7 bn ($21.3 bn) in 2019, a difference of $31.1 bn ($5.5 bn). According to the Central Bank, although there are still uncertainties about the evolution of the pandemic, the trend is for banks’ profits to grow in 2021.

Source: Folha

Aneel foresees auction of new energy transmission projects on December

The board of the National Electric Energy Agency (Aneel) approved at a meeting on Tuesday the opening of a public consultation process to discuss the rules of an auction of concessions for new energy transmission projects scheduled for 17 December. The contest will offer investors five lots of projects, which together should demand total investments of around R$2 billion ($357 mm).

Source: 6 Minutos

Brazil’s inclusion in OECD could raise GDP per capita by 0.4% per year

A study released by Ipea projects a 0.4% growth in per capita GDP per year with Brazil’s eventual entry into the Organisation for Economic Cooperation and Development (OECD). If Brazil’s application is accepted and confirmed, the capital flow stimuli should boost foreign trade activity. The expected economic growth is approximately $7 billion annually in generation of goods and services.

Source: Space Money

New regulatory framework for railways promises to unlock $4.5 bn in investments

The pending approval, by Congress, of a new regime for railway operations in Brazil has the potential to unlock projects and unleash at least R$ 25 billion ($4.5 bn) in investments. It would be railway stretches built from scratch by companies interested in connecting new destinations and lowering the cost of cargo transportation. The proposal is one of the priorities of the Executive in the Senate.

Source: UOL Economia

Brazil registers 67 million digital account openings in 2020

Projections from Idwall’s market intelligence team, indicate that around 67 million 100% digital accounts were opened in the country in 2020 alone, exceeding all expectations. In 2019, the team projected that 45 million digital accounts would be opened from the beginning of last year to December 2021, bringing the total to 73 million since mid-2016, but Pandemic has expedited that.

Source: Valor Investe

Brazil likely to breach spending cap by 2% of GDP this year, says Citi

Brazil is on track to pierce its spending ceiling by 2% GDP this year, Citi economists have warned, predicting that the government will significantly ease its fiscal policy to tackle the Covid-19 pandemic. The cap limits the growth of public spending to the previous year’s inflation rate and is widely seen as the government’s most important fiscal rule.

Source: Money Times