– Itaú Unibanco: delinquency rates up from 5.8% (Q2) to 6.3% (September)
– Bradesco: delinquency rates up from 5.7% (June) to 6% (September)
The increase in NPLs is being driven mainly by the consumers with household income between R$2,000 and R$3,500, which financed vehicles in 60 months starting in 2009.
According to Anef, rising defaults are explained by the effects of inflation, which undermined the debt payoffs. Another factor that contributed to the increased defaults is the credit card. A survey by the Institute with defaulters showed that the “defaulter” gives priority to the card payment over other types of debts, as it tends to restore some of their credit lines.
For many executives in the financial sector, the default rates will stabilize only by 2Q 2012 and the extra income from wage adjustments (starting in January) will not be sufficient to stem defaults in the short term.