Itau Private Bank Targets Switzerland and Mexico

Stephen Harris

10 March 2008

Brazilian Banco Itau is to offer private banking services in Switzerland and Mexico to attract investors requiring Brazilian assets, according to a Bloomberg interview given by Lywal Salles, Itau's director for private banking. Mr Salles said: "Foreign investors increased their interest for emerging markets. It is very interesting to have investments in reals since real interest rates are at 7 per cent." About 30 per cent of Itau's $26 billion in assets under management in its private banking unit is from non-Brazilian clients and Itau plans to add 20 people to its 520-member private banking staff. Assets under management by private banks in Brazil are also rising by about 30 per cent annually, according to Mr Salles. Itau Private Bank has spent $305 million over the past two years to expand internationally. In 2006, the Sao Paulo-based bank acquired private banking units of Bank of America in Chile and Uruguay. In 2007, it bought ABN Amro’s private banking units in Miami and Uruguay.