December 3, 2019 / 7:06 PM / 11 days ago

UPDATE 1-Brazil`s Itau BBA sees capital markets activity up in 2020

(Adds more exec comments, context)

SAO PAULO, Dec 3 (Reuters) - Brazilian wholesale bank Itau BBA expects share offerings and fixed income issues to grow over the next year, mainly fueled by a rebound in the country’s economy, Chief Executive Caio Ibrahim David told journalists on Tuesday.

The bank expects equity volumes to rise 20% from this year, adding that fixed income issuance is likely to grow 15%, global head of corporate and investment banking Joao de Biase said.

Although this year has already been the biggest in a decade for share offerings from Brazilian companies, David said more Brazilian companies will use the capital markets to raise money and invest, as economic growth picks up.

A spike in capital markets activity is likely to lure more competitors, including foreign banks, David said, answering a question about the recently announced investment banking joint venture between Banco do Brasil SA and UBS Group AG

Still, Biase said the investment banking fee pool in Latin America, where Brazil is the biggest market, is likely to grow 10% next year, below volume growth, due to competition.

In order to capture new clients, Itau BBA launched this year a unit focused on investment banking services for mid-sized companies.

Reporting by Carolina Mandl and Tatiana Bautzer; Editing by Christian Plumb and Nick Zieminski

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