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Brazil's banks show remarkable strength in third quarter
07/11/2011
Profits in Brazil's banking system are bolstering the nation's excellent international economic reputation, with the country's big financial institutions showing new profit increases and better-than-expected results for the third quarter.
The financial health of the nation has been backed up by Itaú Unibanco, Latin America's largest lender according to market capitalization, declaring a net profit for the third quarter that was 25.5 per cent higher than the same period in 2010.
Rival bank, Bradesco, reported a net profit rise of 14 per cent, while Banco do Brasil saw its profits rise by ten per cent. The chief executive of BTG Pactual, Brazil’s largest independent investment bank, Andre Esteves, welcomed the figures, stating that they were a result of the steady improvement in Brazil's financial structure over the last decade, including stable economic growth, more inclusive development and better financial regulation.
"The financial system in Brazil is in very good shape," he explained. "Consumption [has been] an important reason for the growth we have had recently in Brazil together with investment."
Mr Esteves added that the country is not facing an economic 'bubble' like the USA experienced, largely due to the highly conservative standards set for Brazil's asset quality and risk compliance measures due to the national history of financial crises.
The financial health of the nation has been backed up by Itaú Unibanco, Latin America's largest lender according to market capitalization, declaring a net profit for the third quarter that was 25.5 per cent higher than the same period in 2010.
Rival bank, Bradesco, reported a net profit rise of 14 per cent, while Banco do Brasil saw its profits rise by ten per cent. The chief executive of BTG Pactual, Brazil’s largest independent investment bank, Andre Esteves, welcomed the figures, stating that they were a result of the steady improvement in Brazil's financial structure over the last decade, including stable economic growth, more inclusive development and better financial regulation.
"The financial system in Brazil is in very good shape," he explained. "Consumption [has been] an important reason for the growth we have had recently in Brazil together with investment."
Mr Esteves added that the country is not facing an economic 'bubble' like the USA experienced, largely due to the highly conservative standards set for Brazil's asset quality and risk compliance measures due to the national history of financial crises.
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