Caixa profit falls 34% in Q1

Brazil’s state-owned bank Caixa Econômica Federal reported recurring net profit of BR3.5bn during the first quarter of 2026, marking a year-on-year decline of 34.4%.

Besides operating Brazil’s federal lottery system through Caixa Loterias, the institution plays a central role within Brazil’s financial and public administration system. 

Founded in 1861 and linked to the Ministry of Finance, Caixa operates as one of the Federal Government’s main financial arms, administering social welfare programs, public housing finance and income transfer initiatives.

According to the bank’s latest financial report, the result was impacted by higher provisions for loan losses amid stricter regulatory requirements introduced by the Central Bank of Brazil.

Despite the drop in profitability, Caixa’s total credit portfolio reached BR1.41tn by the end of March, representing annual growth of 11.3%. Mortgage lending remained one of the main drivers of expansion, rising 13.9% year-on-year, while the agribusiness segment grew 2.2%.

Meanwhile, the bank’s delinquency rate for loans overdue by more than 90 days reached 3.71% during the quarter, increasing by 1.22 percentage points compared to the previous year.

Caixa also reported a Basel Index of 15.1%, remaining above the 11% minimum capital requirement established by Brazil’s Central Bank.

Caixa’s online betting platform still pending launch

Caixa operates scratchcard-style games and sports-prediction lotteries. Revenue generated through the lottery network partially funds public initiatives tied to education, sports, public security and social development.

At the same time, Caixa continues delaying its planned entry into Brazil’s regulated fixed-odds betting market.

According to the company, its betting platform is now unlikely to launch before 2027 despite Caixa already having paid the BR30m federal license fee required to operate legally in the sector.