Brazil Banks April SCR Data

Analysis of Brazil's April BCB SCR data shows a sequential slowdown in loan origination and modest NPL increases, though deterioration remains concentrated outside the major S2 growth banks.

Key Takeaways

• 1.April loan origination in Brazil showed a modest slowdown from high 1Q26 levels, partially attributed to fewer working days (20 vs 22 in March).
• 2.Asset quality deterioration is mostly concentrated in S3 and S4 institutions for credit cards, and S1 institutions for personal loans.
• 3.Nu Holdings (NU) continues to dominate S2 segment loan growth, despite a sequential drop in net origination from R$4.1bn/month to R$2.9bn.

Table of Contents

• Most of the asset quality deterioration is not at S2 institutions
• Net loan origination for NU is sequentially lower, but still growing
• Credit data for S1 institutions seems to be only partially available
• Middle income credit cards deteriorated more than low income
• S1 institutions showed the most deterioration in personal loans
• Rural NPLs showed improvement, but possibly incomplete data
• Auto loans, payroll loans and mortgages
• Corporate and SME loans
• NU cross-read: Net loan origination slows in April for S2 institutions
• Valuation and risks
• Disclosure Appendix

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