August 1, 2017 / 2:49 PM / a year ago

Itaú's credit ROE may surpass cost of capital, CEO says

SAO PAULO, Aug 1 (Reuters) - The profitability of Itaú Unibanco Holding SA’s lending segment could top fundraising costs in coming quarters, Chief Executive Officer Cândido Bracher said on Tuesday, a sign Brazil’s No. 1 lender is gradually detaching itself from the nation’s longest credit market downturn in two decades.

Recurring return on equity for Itaú’s credit activities, which consume almost half of the bank’s regulatory capital, totaled 14.5 percent in the second quarter - the highest in at least two years. Bracjer told investors on a conference call to discuss second-quarter results that “it is possible” that ROE could surpass Itaú’s cost of capital as Brazil’s economy recovers.

Reporting by Guillermo Parra-Bernal; Editing by Frances Kerry

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