Report published September 29, 2026

Brazil: Credit Origination Firmed in Aug, Record High Household Indebtedness and Debt Service, Rising NPLs – Goldman Sachs

Goldman Sachs · September 29, 2026

Brazilian real credit origination expanded 2.0% mom sa in August 2026, driven by corporate and household non-earmarked loans. However, household indebtedness and debt service burdens reached record levels, accompanied by rising NPLs and elevated lending rates.

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Key Takeaways

1.Credit origination firmed in August by 2.0% mom sa in real terms, supported by corporate (5.5% mom sa) and household (1.3% mom sa) freely-allocated lending.
2.Household indebtedness and debt service reached record highs of 49.9% and 28.7% of disposable income, respectively, in June 2026.
3.Credit quality deteriorated as household non-performing loans (NPLs) rose to 8.0% and corporate NPLs reached 4.3%, while household lending rates climbed to 61.7%.

DETAILS:
Total Credit to Individuals; Total Credit to Corporate
High Lending Rates to Individuals; Rising NPLs on Freely Allocated Credit to Individuals
Household Debt; Record High Household Debt Service

Report data

Household Debt; Record High Household Debt Service

Metric	Estimate	Context
Real Credit Origination Growth	2.0%	Month-over-month seasonally adjusted in real terms
Household Indebtedness as Share of Disposable Income	49.9%	Record high, up 110bp from Jun-25
Household Debt Service as Share of Disposable Income	28.7%	Record high, up 140bp from a year ago
Household Non-Performing Loan (NPL) Rate	8.0%	Freely allocated credit, 90+ days overdue, up 20bp mom
Corporate Non-Performing Loan (NPL) Rate	4.3%	Up 10bp mom from 3.5% in Dec