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.