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In Brazil Big Banks Are the Most Valuable Brands

Brazil's Itaú bank According to a survey by Interbrand, one of the world's largest global branding consultancies, banks are the most valuable brands in Brazil nowadays. Itaú leads the ranking, with a brand worth 8.076 billion Brazilian reais (US$ 4.515 billion). Compare this to 1.34 billion (US$ 578 million), what the brand was worth just 2 years ago.

Bradesco bank is a close second, being valued at  7.922 billion reais (US$ 4.429 billion) while state bank Banco do Brasil is third with a 7.772 billion (US$ 4.345 billion) value.

This is a tendency in Brazil, as Alexandre Zogbi, an expert in brands explains: "Banks in Brazil are champions in profitability and the brand choice matters a lot to the customer, who wants security."

According to Interbrand, the key criteria used in the survey were: a majority of the company's capital is in the hands of Brazilians, the firm is listed on an exchange or regularly publishes financial information in the market, and the company interacts with end consumers and reports positive financial results.

Interbrand, one of the world's largest branding consultancies, is responsible for the annual ranking "The Best Global Brands," in partnership with financial publication Business Week. No Brazilian company appears in its world's best brands.

State-controlled oil multinational Petrobras appears in fourth place. The brand went up two position from last year reaching 5.738 billion reais (US$ 3.208 billion). The company left behind beauty products firm Natura and beer manufacturer Skol.

A question of methodology has eliminated these two brands as well as others like Antarctica and Brahma, both beer and soft drink makers. These brands didn't lose value, but the entry of foreign capital in the companies makes them unelegilble to the Interbrand classification.

Unibanco is another success story. The bank went up from ninth to fifth place, being now valued at 4.341 billion reais (US$ 2.427 billion).

Despite a plane crash that left 199 dead earlier this year, airline Tam appears in 8th place, valued at 881 million reais (US$ 493 million) two positions better than in 2005. Gol, who was eighth in the list, is not part of the ranking anymore.

On the other hand, CVRD (Companhia Vale do Rio Doce), Usiminas and Gerdau, all from the metallurgy sector, which were not part of the list in the past, have now entered it.

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  • Gerald Frank

    Owner
    Lending money to people that only look at the monthly payment, hoping they can pay it, with interest rates that are literally criminal in any first world country , is standard practice here.
    Normal people looking to buy a fridge or a stove see “interest free payments” unaware that if they are late the “interest snowball starts !
    Maids that can’t sleep at night because their credit card payments are killing them!
    All standard news…….. and of course……. no one does a thing !
    Where are all those bureaucrats when we need them?

  • ch.c.

    ” “interest free payments” unaware that if they are late the “interest snowball starts ! ????????
    WRONG !
    Even appliances are usually paid at a rate of 2,5 – 3 % PER MONTH….if they can deduct the payment fees directly from Your monthly wages. Thus having a very minimal risk of non payment.
    And if they cant, but you have a job, the rate becomes 3,5 – 5 % per month.
    And if you have no registered job the rate goes still much higher. I just remind you that 60 % of your workers are unregistered and work
    in the informal economy.
    And the overdraft rate is well in excess of 100 % per year.
    Ohhh and this doesnt include yet the other many fees, ending in a still higher net rate.
    therefore contrary to Gerald Frank comments, the interests start at the signature of the contract not when there is a late payment.
    Because in case of late payment, OF COURSE, there is also a stiff penatly…..ON TOP OF THE ABOVE RATES.
    The above rates are just the base……not the real cost of borrowings in Brazil.

    And ALL this in a country with an inflation of around 4 % per year.
    The above rates would be understandable in a country with inflation rate of 20 to 30 %, but not with 4 % inflation.

    And as to the question of “Where are all these bureaucrats when we need them ?”, the answers are quite simple :
    – Your bureaucrats have fairly good incomes, plus the red tape practices to increases their income.
    – Most of the government, states, municipalities pension funds are invested in Government Short/mid term/long term bonds” mostly financed
    by the employer (government, state, municipality) and only a small portion by the employee.

    Thus your bureaucrats just feed themselves…at your own expenses…by issuing government bonds at the world highest interest rates….after inflation!

    Simple tricks…that few Brazilians already realized !

    Better yet, their wages are based very often on a multiple of the minimum wages. Therefore if one is rated at 5 minimum wages, his income automatically increases by the same rate (not amount) than the increase in the minimum wage.
    Therefore the wealth inequality for which Brazil is a champion ends up in the same wealth inequality.

    Simple trick…again !

    Ohhh but those at the minimum wage, dont get the same pensions as the bureaucrats, even when figured out on a pro rata basis.

    Another simple trick.

    But this is not enough. More people are entitled to participate in this huge scam and pillage : the Brazilians banks and all companies in finances one way or the other. Not only the private banks but even the states and government banks, such as BNDES.

    Better yet, for example the price of Apple products are the world most expensive…..in Brazil….due to TAXES….if paid cash !!!!!
    Just add up the above rates and fees if bought on credit and they become even far more expensive, UNNAFORDABLE for the vast majority of citizens, even for the middle class.
    Specific example : Ipod Nano cost US 369.- in Brazil…..if paid in cash, but before the huge costs mentioned above if bought on credit which would double the price….minimum….if bought with a 2 to 3 years plan.

    Recent prices around the world, if paid cash :
    Brazil $369.61; Bulgaria $318.60; Argentina $317.45; Israel $300.80; Peru $294.08; Chile $294.06; Malta $293.83; Egypt $269.10; Romania $266.60; Uruguay $260.00; Turkey $256.12; Hungary $254.50; Azerbaijan $252.11; Serbia $249.14; Croatia $245.41; Czech $242.54; Slovakia $234.13; Estonia $226.67; South Africa $226.60; Finland $225.82; France $225.82; Russia $220.32; Norway $220.20; Sweden $215.35; Belgium $211.62; Austria $211.62; Italy $211.62; Portugal $211.62; Ireland $211.62; Germany $211.62; Netherlands $211.62; Denmark $209.26; U.K. $201.92; Mexico $201.87; Cyprus $201.85; Luxembourg $201.12; Poland $200.52; Philippines $198.39; Spain $197.42; Greece $196.51; Switzerland $195.43; India $183.47; Malaysia $181.82; Korea $180.60; New Zealand $180.58; China $179.63; Pakistan $179.48; Australia $175.42; Thailand $174.89; Canada $169.68; Singapore $167.31; Taiwan $165.82; Japan $154.21; U.S. $149.00; Hong Kong $148.12

    Yessssss….in my country and others, even illegal foreign maids working only part time can afford easily more than 1 Ipod a month without “disturbing” their budget.
    You may as well compare the Brazilian price with similar developing countries. You still win the gold medal for the highest price by a wide margin.
    And I repeat, this is when paid in cash. Because when bought on credit, the price difference is far far higher.

    Ohhhhh…..and we are talking about the same product…..manufactured in China….and sold around the world.

    Sources : http://www.news.com/iPod-cheap-in-Hong-Kong,-but-a-Brazil-bank-breaker/2100-1041_3-6211724.html

  • ch.c.

    “Banks in Brazil are champions in profitability ”
    Ohhhhh yessssssss…..they are the only banks in the world, lending money at 20 to 50 %, even up to 80 % for the overdraft, OVER the government central bank rate.

    Yessssss…..OVER the government central bank rate

    And your central bank rate is also the World Highest…..after inflation, and this despite 17 rates cuts. Incredible but true.

    Simply stated, you applaude the ones who are raping you hard on a daily basis !!!!

    Viva Brazil ! Viva Brazilians, the hardest masochists in the world.

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