Itaú sees no room for further increase in net interest margin

miércoles 6 de agosto de 2014 09:24 GYT
 

SAO PAULO Aug 6 (Reuters) - Itaú Unibanco Holding SA , Brazil's largest bank by market value, sees no room for further increases in borrowing costs for most segments of credit, executives said on Wednesday, in an indication that loan repricing in Latin America's biggest economy is largely over.

Net interest income, or revenue from banking activities excluding loan-loss provisions, is likely to keep rising in spite of stable net interest margins, Marcelo Kopel, Itáu's senior vice president for risk and compliance, said on a conference call with investors to discuss second-quarter earnings. Net interest margin is the average rate that a bank charges on loans.

Itaú expects its loan book to grow by about 10 percent, or a little less for this year, depending on how economy performs, Kopel said. (Reporting by Guillermo Parra-Bernal; Editing by Jeffrey Benkoe)