Best Private Bank in Latin America Best Private Bank in Brazil - Itaú Private Bank

The merger of the two largest banks in Brazil, Itaú and Unibanco, was the result of thorough planning and careful execution aimed at creating a global Latin American bank and it was an impressive achievement, says João Medeiros, head of international private banking. Net new money in 2009, the year of the merger, increased by 39 per cent to $4.8bn (€3.6bn) and continued to grow to $6.1bn in 2010. Assets increased by 26 per cent to $70.2bn during last year.

“We have grown organically throughout 2010 by increasing clients’ share of wallet and originating new money,” says Mr Medeiros. Partnerships within Itaú’s structure and worldwide marketing efforts, which boosted the brand perception outside Brazil, were combined with rigorous sales discipline and improvement of clients’ experience. Cross business referral agreements with investment banking and retail banking generated 50 per cent of net new money in 2010.

Operating profit growth of $91m year on year resulted from more effective client and adviser segmentation, better pricing and improved offering. In 2010, the review of client segmentation criteria, which are based on AuM ranges and market origin, resulted in a 44 per cent increase in the average private banking client ticket. This also enhanced the level of customised service. Clients that fell below the threshold of $1m increased their AuM with Itaú to continue to be with the private bank, while the others were migrated to the personal banking division.

In addition to Brazil, Itaú operates in the Bahamas, the Cayman Islands, Luxembourg and the US. Brazilian clients were mainly responsible for the growth in 2010, as economic conditions in the country improved, while Chilean and Uruguayan clients also contributed to the increase. In 2012, the bank’s target is to consolidate its presence in the Brazilian market and increase its penetration in Hispanic countries, as demonstrated by the recent joint venture with Chile-based asset manager MCC to create a new Chilean wealth management firm.

“We are a player with Latin DNA, deep knowledge of the region and growing expertise on global markets,” says Mr Medeiros. “The combination of global know-how and local flavour favours the build-up of solid, long lasting relationships with our clients, risk control and governance.” ET