Will 2023 be Brazil’s year – or Mexico’s?

The bank’s new head must withstand political pressure to extend subsidized credit and lower underwriting standards.

The region’s advantage is likely to be short-lived and could fade by 2024, according to JPMorgan's private bank head.

Local flows to fixed income and equity redemptions limit ECM liquidity.

Proactive risk tightening in 2021 sees surging return on equity as scale brings operational leverage.

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

While fintechs have been thriving in Brazil and throughout Latin America, the region’s local stock exchanges have failed to attract IPOs.

Brazil’s agribusiness sector is booming on the back of sky-high commodity prices. The public banks that have long financed the sector now face a wave of new private-sector competitors.

The Brazilian world of digital banks has it all: billionaire unicorns, sub-brands created by the incumbents and completely new disruptors. But one player has been quietly growing under the radar to become the country’s second-largest digital player.

The new administration is expected to be less receptive to bank privatization as the result boosts ‘Lula portfolio’ stocks.

If Lula wins in Brazil, he is unlikely to focus on the strength of the private-sector banks because fintechs are doing that for him already.

While the impact on energy is centre stage, the war in Ukraine is also wreaking havoc on soft commodity prices and trade routes. Trade in agricultural commodities is taking a hit. The pool of banks financing these commodities is already dwindling, while the risks for those that remain are growing.

In its latest funding round, Brazilian-based Creditas proved that valuations for the stronger fintechs can buck the falling trend seen among the large, publicly listed startups.

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

The US bank has reorganized its Latam wealth management business to focus on faster growing countries, but home bias remains a tough instinct to overcome.

Will higher rates today come at the price of more pain tomorrow?

Campaigning for October’s presidential election has yet to officially start in Brazil, but it is expected to be bitter – and the risks of political fall out for Brazilian banks have already become all too clear.

Latin America’s corporates are embracing sustainable local debt financing with enthusiasm. The region’s bankers are betting that it’s going to be as good for bookrunner fees as it promises to be for the environment.

Eric Cardozo, co-founding partner, COO and CFO of Brazilian private banking boutique WHG, talks to Euromoney about quitting a mainstream firm in 2020 and why more private bankers in the country seem to be following suit.

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

Plans to incentivize foreign capital aim to boost capacity, with a new internal ‘investment bank’ to drive growing pipeline.

A combination of geographical position and commodity strength is working in the country’s favour.

The rule change will be phased in, but shares in publicly listed fintechs dip.

After the 2020 sale of its US bank, BBVA’s global ambitions in retail are alive and well. It has entered Brazil with digital bank Neon, ploughed more capital into UK app-based lender Atom Bank and launched in Italy in a way that presages branchless growth across the eurozone.

Beny Podlubny, head of XP Private, talks to Euromoney about the metaverse, risk appetite, international expansion and why Brazilian clients like to keep things close to home.

Calling time on the virtual meeting room

It took all of six days of the new year before the tone was set: XP Inc’s announcement of its acquisition of Banco Modal. The deal will need regulatory approval, but is being warmly endorsed by the target’s management and its minority shareholder, Credit Suisse.

German lender renews focus on LatAm after 2015 withdrawal.

The momentum behind the loss-making bank’s IPO had become unstoppable by year-end, even as the range was eventually cut. It now faces intense scrutiny as a public firm.

The CEO and CFO aren’t about to abandon the physical in the chase for digital business.