Brazils largest private bank is training its
sights on leadership of investment banking in Brazil this year,
following a hugely successful five year diversification
strategy that has made Bradesco one of the best performing
and most profitable banks in Latin
We are prepared to maintain this level of
returns, Marcio Cypriano, the banks
president told Emerging Markets yesterday.
Segmentation is going to help us improve
profitability. The bank posted a 32% return on equity
last year and has a market capitalization of $36 billion.
Traditionally a retail bank, Bradesco has reorganized and
boosted its asset management and investment banking arm, as
well as its private banking activities in recent years. The
banks capital market activities were previously
fragmented under various divisions but have since been combined
into its new investment bank.
Were going to give a big focus to this
area this year, as it is the last part of the segmentation that
Bradesco needed, Cypriano said. We want to
get the overall leadership in a short space of time. We are
already leaders in asset management and fixed income, we are
third in structured finance and debentures. With a greater
focus, well get there.
Last month, Bradesco paid $490 million to acquire
Amexs local operations. This has allowed us
to get an additional 1.2 million customers who spend four times
more on average than Visa and Mastercards
customers, he said. The bank previously acquired
local divisions of foreign institutions, such as Deutsche Bank
and JP Morgan in asset management.
Its impressive $2.2 billion net earnings last year were
boosted by increased lending activity, and Cypriano foresees a
further 25% expansion in credit in 2006, half of which is
thanks to its large portfolio in consumer credit. Furthermore,
Bradesco has boosted its foreign presence to act in the growing
market of remittance from Brazilian immigrants in Japan and