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Brazil’s Top Bank Slashes and Terminates Client Charges

Brazil's Itaú Bank Apparently in an effort to consolidate its just acquired title of biggest Brazilian private bank, a title that for decades belonged to Bradesco, Brazil's Banco Itaú, which accounts for 11% of retail banking in the country, announced that starting September 1st it will reduce all service charges collected on its MaxiContas current account packages.

In addition, the bank vows to eliminate various charges altogether thus providing more free services to its millions of customers. Itaú has also decided to hold the remaining personal current account charges at existing levels.

This decision, says the bank in a press release, should benefit all personal current account customers with reductions of as much as 12%, as well as other advantages arising from the elimination of other service charges.

"We have made this important decision, focused once again on innovation and the unceasing search for excellence in serving our customers. We were pioneers in this area in October 1996 when we created the MaxiConta, a service charges package benefiting those customers enjoying closer relationships with us. And, today I am very pleased to be able to announce that we have the most competitive and attractive package of banking services in Brazil," declares Roberto Setúbal, Banco Itaú's CEO.

These measures, according to the bank, will enable Itaú to further improve its relations with existing current account holders as well as expanding the customer base in a market where the penetration of banking services is on the increase, set against a scenario of economic growth and stability.

According to Itaú's CEO, these initiatives have been made possible thanks to the good quality of Itaú's management, always focused on efficiency and productivity. This model, he says, has allowed the Bank to continually pass on the benefits to its customers and create greater shareholder value.

"It is of fundamental importance to remember that these benefits reflect the prospects for economic growth which we are witnessing in Brazil, unquestionably leading us to an eventual investment grade rating. This scenario has already had an important impact on our results, contributing to the expansion of credit and the customer base," Setúbal adds.

Banks in Brazil have been accused of imposing heavy fees, charging extorsive interest rates and reaping obscene profits. Earlier this month, Itaú announced that it had a record net profit of 4.016 billion reais (US$ 2.06 billion) in the first semester, up 35.7% from the first half of last year.

According to Economática, a Brazilian financial market researching firm, this is the highest net profit of a private bank in the country in the last 20 years.

Bradesco, also announced net profit of 4.007 billion reais (US$ 2.06 billion) in the first half of the year.

Itaú credits its stellar performance on the sale of assets and on an increase in the bank's loan portfolio. Loans reached 104.8 billion reais (US$ 53.65 billion), in the first semester, up 40.2% from 74.8 billion reais (US$ 38.29 billion) in the same period last year.

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  • Show Comments (9)

  • João da Silva

    But they are taking you by your balls
    No longer. First they chopped off the balls of the Bank employees Union and then that of the customers. So the question of taking us by our balls doesnt arise anymore,because we are already ballsless. Only thing that they havent done yet is to slash our throats and confiscate our assets.

    You know as well as I do that the Brazilian banks are nothing but glorified loan sharks. Just wait and see. Within the next 3 years, Banco do Brasil and CEF will be owned by either Itau or Bradesco (unless you decide to intervene).

    With the kind of interest rates, labor laws, tax rates,etc;, one must have lots of courage to set up a manufacturing industry here. You know what I am talking about and dont pretend that you dont.

  • ch.c.

    ” the Banks have not started slashing the throats ”
    Ohhh they wont…..otherwise they would not be able to do that much profits !
    But they are taking you by your balls and ass……everyday !

    And you enjoy…since you applaude them !

    And to “theman” : are you gay……in view of your statement ?

  • João da Silva

    Brazil’s Top Bank Slashes and Terminates Client Charges
    [quote]I like to take a more positive view[/quote]

    So do I.My positive view is that fortunately, so far, the Banks have not started slashing the throats and terminating their customers with extreme prejudice to make more money.

  • theman

    I like to take a more positive view. If I can’t get fu.ked by anyone else in Brasil, I can alway get fu.ked by my bank.

  • Brazilian Dude

    Yeah,yeah….
    your’re preching to the choir here.
    Wish every brazilian had that view.

  • ch.c.

    Tsk,Tsk, apoplexy, sir.
    Brazilians should have daily apoplexies…in view or the rates THEY are charged by your corrupted banks, which in turn corrupt your politicians to let them allow….to rape and pillage every single Brazilian, except the few wealthy that receive without any risk the world highest rates after inflation. Wealthy dont borrow……they lend !

  • Brazilian Dude

    Ch.c
    Zyprexa would REALLY do you good.It might reduce that frothing, bug-eyed look thing you got going on. Tsk,Tsk, apoplexy, sir.
    Your numbers, however, are spot-on.
    Contra fatos, nÀƒ£o hÀƒ¡ argumentos.
    Unfortunately.

  • not suprised

    it’s a shit hole
    If you are unlucky enough… or stupid enough to live there, then that’s your problem.
    Brazil really is the sphincter of the World

  • ch.c.

    …charging extorsive interest rates and reaping obscene profits. .. !!!!!
    In every developed or developing country other than Brazil, charging a minimum of 40 % for loans to individuals and well over 100 % for overdraft…….while the country has around 3 to 4 % inflation……THERE WOULD BE A STREET DEMONSTRATIONS, STRIKES ALL OVER…..AND BANKERS WOULD END UP IN JAIL !!!!

    But in Brazil……..YOU APPLAUDE !!!!!!!

    And as explained in the article, the reductions are ONLY IN THE FEES…..NOT THE INTERESTS.

    And the exorbitant charges have been reduced by…..TWELVE….YESSSSS 12….PER CENT !

    NOT ONLY YOUR GOVERNMENT IS BORROWING AT THE WORLD HIGHEST RATES….AFTER INFLATION, TO PLEASE A MINORITY OF WEALTHY BRAZILIANS, but then your banks well over quadrupled the rates.

    YESSSSS………QUADRUPLING THE RATE…..MINIMUM, THEY CHARGE COMPARED TO THE RATES THEY BORROW !!!!

    JUST UNHEARD OUTSIDE BRAZIL, not even in Sub Saharan Countries !!!

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