Barclays Capital sees Santander Brasil's (NYSE: BSBR) ROE lagging way behind its closest rivals' in the Brazilian banking sector this year and in 2012, according to forecasts in a new Barclays report on Latin American banks.
The investment bank projects that Santander Brasil, the country's fourth biggest lender, will post an ROE of 14% this year and 16% in 2012.
That pales in comparison to Brazil's three largest banks - federally controlled Banco do Brasil (BB), Itaú Unibanco (NYSE: ITUB) and Bradesco (NYSE: BBD) - which Barclays estimates will all produce ROEs above 20% in 2011 and 2012.
Barclays sees BB's ROE at 22% this year and 21% next year, while it forecasts that Itaú Unibanco and Bradesco will report ROEs of 24% and 21%, respectively, in both 2011 and 2012.
Santander Brasil is the largest Latin American subsidiary of Spanish banking giant Santander (NYSE: STD).