The market reaction to the third-quarter results from Brazil’s second-largest private bank has revealed investor sensitivity to banks’ deteriorating asset quality.

Banco do Brasil’s outstanding second quarter means that scrutiny will intensify at its domestic rival.

The pressure for a short-term boost to ROE might force Bradesco to re-evaluate its insurance portfolio.

Liquidity events rather than asset migration drive market share gains.

Brazil’s fintechs and digital challenger banks are making more ground than traditional firms with the central bank’s new payments system.

Brazilian bank set to take in US firm’s domestic bankers and clients.

If Brazil does well, Bradesco does well. Its management is confident there are good times ahead.

Frustration is building quickly in Brazil. What was supposed to be the beginning of a credit cycle – and a structural improvement in long-term economic growth – is becoming just another false dawn.

Move adds offshore platform for private clients; bank argues BAC Florida Bank deal adds to its story as the momentum play in the market.

Bigger footprint should drive revenues as well as earnings

The Argentine banking system is beginning to return to a semblance of normality, with signs such as positive interest rates. But the road back to international standards is a long one. After many years of economic dysfunction and highly prescriptive banking regulations (including mandatory lending to segments and floors and caps on interest rates), it will take a long time for an orthodox banking sector to appear.

Miranda, head of BBI, says single country banks at a disadvantage; global trend to universal banks helping drive national and regional growth.

The country’s biggest banks are only just starting to feel the pain, and there could be far more to come.

Banco de Credito del Peru is named as the best bank in the region; Citi retains investment banking award.

Banking in Argentina has been challenging in recent years. Increasingly stringent regulation has required banks to lend to certain segments at capped interest rates, while high inflation has complicated other transactional business. The banking system has, by and large, coped well with the poor business environment, and now (in private) bankers are optimistic about the money to be made in the country – from mortgages and retail lending to corporate loans, securitizations and capital markets.

Brazil deal lifts Bradesco; UK bank fights to retain Mexico.

Global firms feel pinch; Chinese banks set to enter?

Brazilian bank Bradesco opens its London office on February 9. A small delegation of senior bankers from the bank’s Brazilian headquarters will fly over to mark the occasion.

Brazil has withstood the headwinds of the global economy. Bradesco’s solid strategic positioning will ensure it continues to benefit from the country’s increasing global strength.

Alessandro Farkuh is the head of M&A at Bradesco BBI, having joined the bank in November 2007. Before joining Bradesco BBI, Farkuh worked at Cicerone Capital, PricewaterhouseCoopers Corporate Finance and Exxel Fund.

Banco Bradesco’s Luiz Trabuco believes that time is on the bank’s side, as powerful economic and social changes offer opportunities for growth in the next couple of years. Rob Dwyer reports.

Bank postpones R$500 million issue; Other banks and corporates persist

Norberto Barbedo, Bradesco’s executive vice-president for investment banking, talks to Rob Dwyer about his bank’s tentative exploration of African markets and its primary focus on domestic business.

Bradesco, one of Brazil’s leading banks, and Portugal’s Banco Espírito Santo have joined forces to create a new private equity company that will operate in Brazil.

On January 12, Bradesco announced that it had promoted Luiz Carlos Trabuco Cappi to chief executive, replacing Marcio Cypriano. Cappi previously headed the bank’s insurance unit. Cypriano will continue as chairman and chief executive of the bank until the annual shareholder meeting in March. After 10 years in the role Cypriano was not able to renew his contract because he had reached the mandatory retirement age of 65 years.

Fit of family cultures closer than with rival Bradesco.

Japan’s Mitsubishi UFJ Asset Management Company and Brazil’s Bradesco Asset Management have agreed to set up a mutual fund that will invest in Brazilian bonds.

Brazil’s Bradesco has raised $500 million in a securitization structured by ABN Amro. The notes were issued in two tranches of $250 million, with the 2007-1 series receiving triple-A ratings and the 2007-2 series rated at A– and Baa1 by S&P and Moody’s respectively. The notes are due in May 2014.

Brazil’s biggest private sector bank has announced the creation of a new subsidiary, Bradesco Investment Bank. This will focus on all aspects of the local and international capital markets business as well as asset management. Bradesco is a retail powerhouse but the bank’s CEO, Marcio Cypriano, is keen to take advantage of growing capital markets activity from Brazilian entities. Cypriano told Euromoney last year: “In general, we should be bigger and better in capital markets. That business should closely match Bradesco’s retail performance.” [See Euromoney December 2005, “Bradesco's plan of attack”.]

Brazil’s biggest private sector bank is a retail powerhouse. But Bradesco’s president Márcio Cypriano tells Sudip Roy that the bank intends to beef up its capital markets business.