Itau Slumps as Provisions Expected to Climb Further in 2016
- Fourth-quarter profit beats estimates on higher fee revenue
- Shares fall as much as 7.5 percent, leading financials lower
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Itau Unibanco Holding SA, Latin America’s largest bank by market value, slumped as much as 7.5 percent after reporting an increase in provisions for bad loans for the fourth quarter. Profit topped analysts’ estimates.
The shares fell 6.8 percent to 23.74 reais at 3:49 p.m. in Sao Paulo after the company said it expected provisions for 2016 to range between 22 billion reais ($5.5 billion) and 25 billion reais. The bank set aside 18.1 billion reais to cover bad loans in 2015, it said in a regulatory filing Tuesday, a 39 percent increase from the previous year that was higher than the top of its forecast.