After two years of the worst recession experienced in decades, and unprecedented corruption scandals that tainted political and business elites, Brazil’s largest banks now look in good shape. Itaú Unibanco, Bradesco and Santander – the largest privately owned groups in the country – closed 2016 with pre-tax profits significantly higher than a year earlier: 150% and almost 300% growth for Itaú and Bradesco, respectively. There was an even more significant improvement for Santander, which turned the business profitable again after the previous year’s loss.
Things were similarly good for the largest 20 lenders operating in the country. With improving macroeconomic data and a number of policy changes set to benefit lenders, the future looks brighter still.
