Itau Foresees Private Bank Surge

Itau Unibanco, owner of Brazil’s largest private banking network by assets under management (AUM), is plowing ahead with expansion, says CEO Celso Scaramuzza. “We expect the growth rate for the private banking market [by AUM] in Brazil this year to be 20%,” he says. The banker notes that a real increase of around 10% is on par with some of the world’s fastest expanding private banking markets, like China. With AUM of around BRL100bn equivalent and a 34% share of the Brazilian pie, according to ANBIMA, Itau Unibanco is focused on building out the domestic business further. A new area is managing money for families and shareholders that own significant or controlling stakes in Brazilian firms. Advisory products include liquidity event and strategic capital structure management, often done in conjunction with investment banking arm Itau BBA, says Scaramuzza. Among recent hires for the effort is Andrea Brandao, formerly of RBC’s Sao Paulo-based private bank, who will be a senior private banker for Itau. “We are growing the team and there will be more hires this year,” notes the executive. The bank is also looking to develop more elaborate investment products, both in fixed income, equity and structured finance, which can include a combination of assets. “We are seeing a higher demand for equity funds in Brazil,” adds Scaramuzza. Itau is also building its overseas network. With a pending license to operate in Zurich, the bank will have 3 non-LatAm main offices, including Miami and Luxembourg. In the region, units in Chile, Argentina, Paraguay and Uruguay complement the bank’s retail presence in those countries. Broadly speaking, says the CEO, competition in wealth management and private bank is growing significantly in Brazil. Goldman Sachs, for one, has recently built a large new Sao Paulo-based wealth management team targeting high and ultra-high net worth individuals. BTG Pactual and Credit Suisse are meanwhile competing head to head for the number 2 slot, with close