Brazil's Itaú sees provisions soaring, weak credit growth this year
SAO PAULO Feb 2 (Reuters) - Itaú Unibanco Holding SA , Brazil's largest non-government bank, announced on Tuesday the following operating estimates for this year: 1) Itaú's consolidated loan book, which includes guarantees and corporate debt holdings, is expected to grow between a negative 0.5 percent and a positive 4.5 percent this year, compared with an expansion of 4.6 percent in 2015. 2) Itaú targets interest income, or revenue from lending-related transactions, to grow between 2 percent and 5 percent this year. 4) Itaú forecasts fee income, or revenue from fees, financial services and commissions, and insurance premium underwriting to grow between 6 percent and 9 percent this year. 5) Itaú forecasts non-interest expenses, or general and administrative expenditures, to rise between 5 percent and 7.5 percent this year. Last year, they rose 8.8 percent. 6) The bank expects to spend between 22 billion reais and 25 billion reais ($5.55 billion and $6.94 billion) in loan-loan provisions this year. Last year, provisions totaled 18.1 billion reais, slightly above guidance.
($1 = 3.9601 Brazilian reais) (Reporting by Guillermo Parra-Bernal)
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