The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Itaú resisting growing NIM pressures

Bracher admits “severe pressure” to reduce spreads; credit portfolios tilting to SME and consumer segments.

The surprise decision by the Brazilian central bank to call an end to its easing cycle in May, because of concerns about emerging market volatility, has offered some respite to the banks that have been facing a drastically lower interest rate environment.

Candido Bracher, chief executive of Itaú Unibanco, gives a glimpse into the ferocity of the authorities’ push to reduce credit spreads charged by the banks as the central bank has been slashing the country’s base rate from 14.25% to 6.5% (a final further 25 basis point cut was expected in May).

“The banking sector is under severe pressure to reduce spreads,” says Bracher in a candid admission that the central bank’s move to reduce rates and fees on credit and debits, as well as overdrafts, is part of a coherent drive to reduce the ‘spread bancario’.

Congress is also expected to pass a law that will create an ‘opt-out’ rather than the ‘opt-in’ rule for the country’s positive credit bureau in a bid to boost competition. The central bank is also fostering a friendly regulatory environment for fintechs.

Candido_Bracher-160x186

Candido Bracher,
Itaú Unibanco

“All these changes do affect our income… and we think we are dealing with them, trying to be as efficient as we can,” says Bracher.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree