Brazil's Itaú Unibanco to launch Argentina brokerage
A lower-profile announcement caught Euromoney’s eye after the bluster of the G20 meetings in Buenos Aires.
Itaú Unibanco saddles up for a new venture
Brazilian bank Itaú Unibanco has announced it is to open a brokerage operation in the Argentina, after 23 years of operating in the country.
Despite Argentina’s recession and IMF bailout, the bank – normally a shrewd judge of Latin American wealth flows – thinks now is the time to invest in a platform to offer brokerage services to its private banking and institutional investor client list.
The operation will be headed by Ricardo Cavanagh, CEO of Itaú Valores, and marks a sizeable extension of its banking network in the country.
Cavanagh told Brazilian newspaper Valor that the decision reflects the potential for AUM growth in the domestic economy; after the 2016 tax amnesty, there is an estimated $400 billion declared offshore in Argentine wealth that could flow back to the country if – and when – growth returns.
Much more important than the group of world leaders visiting Argentina for the G20 is the prospect that locals could soon bring their offshore cash back home to stay
That compares with the local stock market’s total capitalization of $47.3