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

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.

The region’s return on capital table is typically populated by banks from Argentina and is led this year by Banco Provincia. But the country’s lenders are also found at the top of the highest movers table, which ranks banks by Tier 1 capital growth, with Banco Macro in first place and Banco Supervielle – a new entrant in The Banker's Top 1000 World Banks ranking – in third position.

With a larger Tier 1 capital, Bancolombia is fifth in the regional ranking. While its 21% improvement did not land it a higher place than it had in the regional table in 2017, it pushed Colombia’s top lender up the global ranking by 10 places to 214th position. Others in the country expanded their capital at even more impressive rates: 53.04% at Banco Agrario de Colombia and 28% at Davivienda.

Because of Venezuela’s disastrously high inflation and distorted foreign exchange rates, which make analysis difficult, the country’s lenders have been excluded from both our regional ranking as well as the Top 1000 World Banks ranking.

Top 25: Latin America and Caribbean ($M)

Highest Movers: Latin America and the Caribbean 

New Entrants: Latin America and the Caribbean ($M)

Top Five ROC: Latin America and the Caribbean