and selling the rest, according to a securities filing on Tuesday. Itau may issue shares equivalent to 41.05% of XP, which has a market capitalization of $23 billion, to form a new entity that would ultimately be listed. Itau, which on Tuesday also reported lower quarterly earnings, could also sell a 5% stake in XP to boost its capital ratios.
When Itau first invested in XP in 2017, it was planning to acquire a controlling stake, but Brazil’s central bank objected, citing competition concerns. The regulator said at the time that Itau would need to seek approval to buy an additional 12.5% of XP in 2022. The potential spinoff follows a public spat in June, when Itau cited alleged conflicts of interest among independent investment advisers who are the bulk of XP’s workforce. Both institutions compete for investors.The news came as the bank announced third-quarter profit that slightly beat analysts’ estimates. Still, recurring net income fell 29.7% to 5.030 billion reais.
Itau’s 90-day default ratio dropped 0.5 percentage points, to 2.2%, as borrowers were given forbearance of up to 180 days under government measures adopted in the early months of the pandemic.
horrible
We dont care.
brazil is struggling