SAO PAULO, Sept 26 (Reuters) - Itaú Unibanco Holding SA’s lending segment will soon turn profitable again, Chief Executive Officer Cândido Bracher said on Tuesday, a sign Brazil’s No. 1 lender has detached itself from the nation’s harshest credit market downturn in two decades.
At an annual meeting with investors in São Paulo, Bracher said loan-loss provisions - which hit a record high for Itaú late last year - will begin to fall in the medium term, without specifying a timetable for that.
Recurring return on equity for Itaú’s lending segment hit 14.5 percent in the second quarter, equaling fundraising costs. According to Bracher, Itaú will “soon begin to create value again” in lending. (Reporting by Aluísio Alves and Guillermo Parra-Bernal; Editing by James Dalgleish)