Bank Itaú investments Review 2022 – that will be the topic of today’s article.
Nothing written here should be considered as formal financial, or any other kind of advice, and some of the facts might have changed since we penned this article.
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Table of Contents
Banco Itaú Unibanco S.A. is a Brazilian financial service providing company, which is headquartered in Sao Paulo, Brazil. Itaú Unibanco was formed from the merger of Banco Itaú and Unibanco in 2008. It is the largest banking institution in Brazil, as well as the largest in Latin America and the Southern Hemisphere, and the 71st largest banking institution. bank in the world. It is also one of the twenty most valuable banks in the world. The bank is listed on the B3 stock exchanges in Sao Paulo and on the NYSE in New York.
Itaú Unibanco has branches in different countries such as Argentina, Brazil, Chile, Colombia, Panama, Paraguay, USA and Uruguay in the United States, as well as Luxembourg, Portugal, Switzerland and the UK in Europe; China, Hong Kong, Japan and the United Arab Emirates in Asia.
It has more than 30,000 service-providing spots worldwide, among which about 3,500 branches are located in Brazil, as well as about 28,000 ATMs. The bank works with 55 million customers worldwide.
Itaúsa, a major Brazilian conglomerate and one of the 500 largest corporations in the world by Fortune magazine, is its parent company. Outside Brazil, Itaú Unibanco has offices in Asuncion, Buenos Aires, Cayman Islands, Dubai, Hong Kong, Lisbon, London, Luxembourg, Montevideo, Nassau, New York, Miami, Santiago, Shanghai, Tokyo and Zurich.
In September 2006, Banco Itaú bought BankBoston’s assets in Brazil, Chile and Uruguay. In June 2013, the bank agreed to purchase retail banking operations from Citibank Uruguay. In 2014, Banco Itaú announced a merger with the Chilean bank Corpbanca.
As a result of this merger, Itau bought Helm Bank, Corpbanca’s Colombia and Panama divisions, and renamed it Itaú: Helm Bank’s Colombia and Panama branches began trading as Itaú on May 22, 2017.
On November 4, 2008, Banco Itaú and Unibanco announced their merge, which resulted to a new form – Banco Itaú Unibanco. The organization was established with assets of R $ 575 billion, a net worth of about R $ 51.7 billion, and an aggregate loan portfolio of R $ 225.3 billion.
The new bank had about 5,000 service branches, accounting for 18% of the country’s banking network, and 14.5 million account holders (18% of the market). In terms of volume of loans, it accounted for 19% of the Brazilian system, and in the total volume of deposits, funds, and managed portfolios – 21% by 2008.
In the insurance and pension plans market, the new group had 17% and 24% shares, respectively. Corporate operations are amounted to over $ 65 billion Brazilian Real, that is working with over 2,000 economic groups in Brazil. The private banking (wealth management) business has grown to be the largest in Latin America with approximately $ 90 billion Brazilian Real in assets under management.
On August 22, 2009, Banco Itaú Unibanco and the insurance company Porto Seguro disclosed that they had entered into an alliance. The Alliance aims to consolidate home and auto insurance operations and includes an Operating Agreement under which the alliance will have exclusive access to the offer and distribution of home and vehicle insurance products to customers of Banco Itaú Unibanco’s network of branches in Brazil and Uruguay.
Bank Itaú Services and Products
With over 40 years of experience in capital markets, Itaú Investment Services has a staff of experts who provide advice and solutions in the areas of fund custody and control, fiduciary management, registrar services and guarantee control.
Their Latin American presence provides an integrated experience that can meet any capital market processing needs.
Itaú Group services
Custody and Controllership
As market leaders, they continually invest in improving the safety and quality of their services. Services include the settlement of physical and financial assets, the conservation and control of assets held in custody accounts, the reconciliation of assets with the custodian and registrars, the processing of corporate events, and the payment of service fees to the custodian and registrars.
They also provide additional services such as trust management and control, which enhance the convenience of your business.
- Local custody
- Physical guardianship on matters
- Non-resident investors
- American Depositary Receipts
They offer comprehensive solutions for your business: they are a one-stop center for the fiduciary management of investment funds. They have robust management processes and a structure to ensure maximum security in managing your funds.
Registrar and transfer agent
As market leaders, they continually invest in technology and improved service.
They have exclusive and specialized service channels for issuers and holders of securities.
- Fixed income
- Closed-end funds
The main purpose of this service is to have a neutral agent to control guarantees provided in accordance with agreements between two or more parties, as stipulated in them.
This includes the management, custody, flow control, handling, and investment of funds held in escrow as operational guarantees.
Is it worth investing in equities?
Investing in any asset – be it securities, currency, gold, bitcoins, all kinds of startups – is a very interesting and, most importantly, profitable business. Investing in stocks brings good money to literate investors, but, like in other financial markets, it has its own advantages and disadvantages.
Advantages of investing in the equities
There are many advantages to investing in stocks. It is not for nothing that the number of clients is growing rapidly all over the world, and the profit from transactions has been increasing monthly for quite a long time. But let’s take a closer look at these advantages:
- Investing in stocks is one of the most popular ways to steadily increase your capital.
- Unlike many other instruments in the financial markets, stocks are a real asset. You can, as they say, touch them with your hands.
- By purchasing shares, the investor, in fact, acquires a share of the business of the company that issued these securities.
- With a sharp rise in the value of shares on the stock exchange, the investor can get a very, very solid income.
- You can earn when investing in stocks not only by changing their market value, but also by receiving dividends.
- Having a sufficient number of shares, you can directly influence the activities of the company.
- The activities of the stock market and stock exchanges are regulated by the relevant laws. In addition, the state protects the investor’s funds at the legislative level.
- Each broker operating in the stock market is obliged to pass the check of the Central Bank of the Russian Federation and obtain an exchange license.
- Even using the services of trust management, the investor is still directly involved in the management of his deposit.
- In the end, investing in the stock market is just interesting and provides some share of involvement in the activities of companies leading in their industries.
Disadvantages of investing in equities
But of course, where there are pluses, there are also minuses. Let’s look at the disadvantages of investing in securities.
- The stock market, like any other, cannot be predicted in advance. There is an element of risk on it – you can significantly increase your investments, or you can lose them. Moreover, the higher the potential profit, the greater the possible risks.
- In order to influence the activities of a company, it is necessary to have a set number of shares, that is, to be a majority shareholder.
- High, in comparison with other markets, the entry threshold. For example, to receive a tangible amount of dividends, you need to buy a significant number of shares.
- It is impossible to buy shares on your own, all operations in the stock market are carried out through a broker or a management company.
- In addition to the possible profit or loss, the investor also incurs additional costs. For each operation, whether it is replenishing a deposit or withdrawing funds, buying or selling shares, servicing a depository, the broker charges a commission.
- Profits on the stock market are taxed accordingly.
Despite the fact that many investors and traders are of the opinion “I came to the market for money, and not to be smart,” it is still very, very desirable to be smart. It is not necessary to be a professor, but at least basic knowledge in the field of investment and finance is necessary. Well, or be in a partnership with a bank or another financial agency, that will provide you with the necessary information and help you move forward.
Despite the apparent complexity, the stock market is clear, well-structured, and strictly regulated. Investing in stocks can not only bring good returns but more importantly, do it consistently and over a long period of time. Bank Itau can offer you different investment services and products which can be useful for making real and good investment steps and move forward.
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