Itau Unibanco sees 20 pct lending growth in 2009

SAO PAULO (Reuters) - Itau Unibanco, the bank to be formed when Itau acquires smaller rival Unibanco, expects lending in Brazil to expand briskly in 2009 despite the turmoil in global financial markets and a slowdown in the country's economy, Itau's chief executive said on Tuesday.

Itau Unibanco sees its credit portfolio expanding by 15 percent to 20 percent next year, even as Brazil's economy grows 3 percent.

"That may vary depending on what happens in the international economy. But Brazil should have bigger growth than that seen in most developed countries" next year, Itau CEO Roberto Setubal, who is slated to be CEO of the combined bank, said in a conference call.

Economists estimate the Brazilian economy will expand 5.2 percent in 2008.

Setubal reiterated that Itau Unibanco will target expansion in Latin America, with a particular focus on Chile, Colombia, Peru and Mexico, though it may also venture beyond the region. Itau already has a presence in Chile.

"There is the possibility of making incursions in other countries in the credit card business," he said.

Itau (ITAU4.SA) ITU.N shares jumped 6.8 percent in late-afternoon trade to 28.93 reais, while Unibanco UBBR11.SA UBB.N shares surged 7.2 percent to 16.05 reais as banking stocks rallied for a second session on hopes of further consolidation in the sector.

Itau and Unibanco on Monday announced plans to merge in a deal that would create the largest financial group in Latin America.

(Reporting by Aluisio Alves, Writing by Elzio Barreto; editing by John Wallace)