If there is a Latin American candidate for the role, there is little doubt that it would be Brazil’s São Paolo-based, family-run Banco Itaú. It is now one of the world’s largest emerging market banks, with a market capitalisation of a staggering $35bn. The man at the helm is Roberto Setúbal, chief executive for a decade in which Itaú has gobbled up an average of one other Brazilian bank per year.
“We’ve been growing a lot,” says Mr Setúbal. He says that one more big acquisition in Brazil is planned, to give the bank a 20%-25% share of the market. But the key question now is how Itaú will do as it goes on forays beyond Brazil’s borders. In August, it bought Bank Boston’s Latin American operations in Chile and Uruguay from Bank of America for $650m.
The long-term plan is to become a global player, not just in Latin America, but also in emerging markets around the world. It is in these kinds of countries that Itaú has an advantage compared with other global banks, Mr Setúbal argues. “We are better able to understand these markets in terms of volatility, in terms of political situation, in terms of economic situation – all of which are very, very different,” he says.
In contrast to Manuel Medina-Mora of Banamex, who merged his bank with Citi, Mr Setúbal also believes that Itaú can expand without being bought out by a bigger competitor. Although Bank of America is now a 7% shareholder thanks to the Bank Boston deal, Mr Setúbal says that Itaú plans to go it alone. “We plan to remain as a standalone bank,” he says. Whether that is realistic or not, only time will tell.
