As Brazil Has Slowed, Itau Unibanco Has Battened Down The Hatches
Stephen Simpson, CFA • Fri, Jun. 20
- Itau Unibanco stands apart with a very good efficiency ratio, relatively low bad debts, and consistently good ROEs well in excess of the cost of capital.
- Brazil's economy has slowed, and Itau Unibanco has been shifting towards more conservative lending while looking to grow fee-generating businesses and the ex-Brazil footprint.
- Averaging out my excess return and RoTE/TBV models, Itau Unibanco looks about 10% undervalued today.