February 6, 2013 / 1:00 PM / 5 years ago

Itaú Unibanco booking of Redecard deal won't impact earnings-CEO

SAO PAULO, Feb 6 (Reuters) - The decision by Itaú Unibanco Holding SA to book the buyout of Redecard SA as a capital transaction will have no impact on future earnings, Chief Executive Officer Roberto Egydio Setúbal said on Wednesday.

The transaction, which allows Itaú to reduce equity without affecting key capital indicators, will also permit the company to forgo booking goodwill expenses in coming earnings releases, Setúbal told investors in a call to discuss fourth-quarter earnings.

Return on equity excluding the impact of the Redecard transaction on capital amounted to 17.7 percent, below the 18.4 percent ROE reported on Tuesday’s earnings release, Setúbal added.

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