9. Itau Unibanco (ITUB) provides banking services in Brazil and is the tenth largest bank in the world by market value.
The bank's first quarter results topped estimates. Net interest income increased 14.7% to $7.2 billion, driven by rapid growth of advances. However, there was some margin contraction in the March quarter. Overall, advances at the end of March were 21% higher than the same period last year.
The risk of bad loans looms large as the bank made higher provisions sequentially. The Tier-1 capital ratio at the end of the March quarter was 15.8% and capital adequacy ratio was 15.2%. Provision for loan loss stood at $1.9 billion, increasing 21% sequentially and 6.5% from the same period last year. Overall, net profit improved 14.8% in the March quarter.On a higher equity base, return on equity for the quarter was 23.4% compared to 24.4% a year back. The stock could deliver up to 24% in the next one year. Of the 13 analysts covering the stock, 9 rate a buy. There are no sell ratings for the stock, as per Bloomberg consensus.
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