Historically, banking has been a local endeavor. Each area has its own special culture and needs for financial services. Brazil Banking Expert Igor Cornelsen sees the nation’s financial industry as ripe for investment.
“Top Global Banks Are Chinese”
Forbes uses four different criteria for ranking global banks: revenues, profits, assets and market value. These are the Forbes rankings for the top global banks in 2015 – Industrial & Commercial Bank of China is #1, China Construction Bank Corp is #2 and Agricultural Bank of China is #3. Clean sweep for China.
If merely assets are considered, then the aforementioned global bank rankings are as follows (for 2013) – Industrial & Commercial Bank of China is #1, China Construction Bank Corp is #7 and Agricultural Bank of China is #9. Chinese banks dominate no matter which criteria are used.
“How Do Brazil Banks Rank Globally?”
Using the Forbes criteria, Itau Unibanco Holding is ranked #15 as the highest-ranked Brazilian bank. This is a noteworthy position, a couple of places behind Banco Santander, Mitsubishi UFJ Financial and Bank of Communications in China. One key difference is that while Banco Santander has a significant presence in Brazil, very few Brazilian banks have significant foreign branches. Based solely on assets, the top Brazil bank is Banco do Brazil at #51, ranked behind Danske, Shanghai Pudong and China CITIC banks.
Brazil Banking Analyst Igor Cornelsen explained the industry to investors during his CNBC interview. He noted that the Chinese-Brazilian synergies are a primary reason why the sector may be a good investment.
Learn more about Igor Cornelsen: