Loterias CAIXA raised R$6.1 billion (US$1.2bn), 22% higher than that recorded in the same period last year. The total net prize awarded to bettors was R$2 billion (US$ 390m).
Loterias CAIXA constitute an important source of resources to promote social development in Brazil. In 1Q24, R$2.4 billion (US$ 467m) were allocated, equivalent to 38.4% of the total collected, to the Federal government's social programs in the areas of social security, sport, culture, public security, education and health. The amount is 19.7% higher than the one of 1Q23, in addition to the return to society via income tax payments.
With the evolution of the lottery market in the states, Caixa should urgently review its business model in the lottery sector. If the state bank continues with the same products, some of which have little interest among bettors, it may not even reach the same revenue throughout 2024 as in 2023, of R$23.4 billion (US$ 4.55bn).
The state bank will resume operating Lotex and was expected to start operating in the first half of the year. The new modality could provide relief in the face of increasing competition from states, some of which already have the instant lottery, physical and online, in operation.
Bank results
CAIXA's recurring net profit was R$2.9 billion (US$ 564m) in 1Q24, the same as in the last quarter of 2023, but an increase of 49% compared to 1Q23.
The financial margin fell from R$17.5 billion (US$ 3.4bn) in 4Q23 to R$15.3 billion (US$ 2.97bn) in the first quarter of 2024, a drop of 12.9%. Still, it represented an increase of 9.9% compared to 1Q23.
The increase in 12 months is influenced by the 0.2% growth in revenues from the credit portfolio and the 18.1% reduction in expenses with resources from financial and official institutions.
Source: Caixa
