The deteriorating economic conditions in Brazil has caused Itau Unibanco to suffer its largest one day loss in more than 15 months yesterday after the bank reported a rise in bad loans and revealed that it expects provisions to climb even higher this year. Concerns that loan delinquencies will rise sharply across all banks meant that shares in Banco Bradesco fell more than 5%, Banco Santander Brasil and Banco do Brasil by 3.1% and credit card processor Cielo by 7%. As we previously noted, Moody's and Fitch cut their outlook on the Brazil's banks citing the country's worsening growth prospects and its deteriorating fiscal accounts.
The deteriorating economic conditions in Brazil has caused Itau Unibanco to suffer its largest one day loss in more than 15 months yesterday after the bank reported a rise in bad loans and revealed that it expects provisions to climb even higher this year. Concerns that loan delinquencies will rise sharply across all banks meant that shares in Banco Bradesco fell 3.1%, Banco Santander Brasil and Banco do Brasil by more than 5% and credit card processor Cielo by 7%. As we previously noted, Moody's and Fitch cut their outlook on the Brazil's banks citing the country's worsening growth prospects and its deteriorating fiscal accounts.