Barclays sees Santander unit's ROE lagging way behind rivals' this year, 2012

Monday, June 6, 2011

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.

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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).