Itau BBA, the wholesale arm of Latin America’s biggest bank by market value, said it expects investment-banking fees from Brazil to shrink to about 40 percent of the region’s total from 60 percent now.
Investment-banking transactions in Colombia, Mexico, Chile and Peru will account for a greater share of the total, Jean-Marc Etlin, chief executive officer of Sao Paulo-based Itau BBA’s investment-banking division, said today in an interview on Bloomberg Television with Erik Schatzker and Sara Eisen.
“They are small countries, but very active, with good demographics, good government policies and as such, the markets are thriving,” he said, adding that central bank policies in Europe and the U.S. to boost economic growth have generated a “tremendous” amount of money that may be invested in Latin America.
Brazilian investment banks are branching out internationally as the nation’s economic growth slows. Brazil’s economy expanded 0.9 percent in 2012, compared with 4 percent for Colombia and 3.9 percent for Mexico. Itau has said it may open a corporate and investment bank in Mexico this year.
“We’re basically closing the map of Latin America so the footprint becomes complete,” Etlin said.
Banco Bradesco SA, the second-biggest bank in Brazil, is also looking at expansion plans for markets in Colombia, Peru, Chile and Mexico, Sergio Clemente, an executive director at the Osasco-based lender, said in an interview last month.