NEW YORK ( TheStreet) -- Brazilian banks are among the most profitable banks in the world, with an average return on equity of 15%-25%. The country's banking sector and economy are benefiting from the burgeoning middle class. Statistics show that Brazil's middle class is expanding, with 50% of the population (200 million) categorized as middle class. Credit card purchases in the country have been rising at 22% per year, since a decade now.Banks are the second-best performing sector in Brazil, with the MSCI indicator of financial stocks increasing 34%, as of date from June 30, against the 35% rise in the industrial index, and 14% for the benchmark Bovespa.
Two Brazilian Bank Stocks to Watch
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