Brazil’s two biggest privately owned banks came to London last month buoyed up by the prospects for Latin America’s biggest economy. Both Bradesco and Itaú Unibanco are confident that Brazil’s GDP will grow by at least 5% next year, providing opportunities for them to grow their loan portfolios.
Luiz Carlos Trabuco Cappi, chairman at Bradesco, reckons that if economic growth meets the bank’s forecast of 5.4% in 2010, total loans could increase by more than 20% next year. Brazil’s loan-to-GDP ratio is a low 46%, which although higher than that in Mexico and Argentina is well below the 100%-plus rates found...
