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Top 1000 World Banks - Brazil's big banks shake off domestic troubles

Brazil may have been hitting the headlines for all the wrong reasons, but its banks are still thriving. Meanwhile, Argentina dominates the return on capital table. Silvia Pavoni reports.
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Corruption scandals and economic wobbles may continue to rock Brazil, but its largest banks once again closed the last financial year in strong health. Tier 1 capital at all four Brazilian lenders leading the top Latin American and Caribbean banks ranking expanded, mirroring (and, in some cases, surpassing) their assets growth.

Itaú Unibanco is still by far the largest bank in both Brazil and the Latin America and Caribbean region, with Tier 1 capital now nearing $37bn. It is followed by Banco do Brasil, Bradesco and Caixa Econômica Federal, in that order, as per 2017’s ranking. Of note is Caixa’s numbers. The state-owned lender boosted Tier 1 capital more strongly than its peers in 2017: a 7.53% rise against Itaú’s 4.02%, the second largest of the top Brazilian banks. It also achieved an extraordinary 40.91% return on capital, the fifth largest in the region – although this is explained by an unusually large profit growth that was partly supported by the reversal of provisions made to pay for employees’ healthcare.

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Silvia Pavoni is editor in chief of The Banker. Silvia also serves as an advisory board member for the Women of the Future Programme and for the European Risk Management Council, and is part of the London council of non-profit WILL, Women in Leadership in Latin America. In 2019, she was awarded an honorary fellowship by City University of London.
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