A senior executive at Itau Unibanco Holding S.A. (ITUB - Free Report) said that completion of the merger formalities of Itau Corpbanca in Columbia will take one more year. During the period, the company will not undertake any acquisitions. The news was reported by Reuters.
The merger of Itau Unibanco and Chilean Corpbanca was announced in 2016. Per Eduardo Vassimon, chief executive of Itaú Unibanco's wholesale banking unit, the integration is taking time due to some "problems in systems and processes."
Also, Vassimon remarked that the company failed to properly estimate the problems it would face in the merger.
In August 2018, Itau Unibancowas seen undertaking necessary steps to meet the growing digital banking trend. It launched an online-only bank accounts in Argentina. Also, the bank had partnered with PayPal Holdings to offer card-related services to its clients.
Per Reuters, the company’s chief financial officer Caio Ibrahim David expects the capital market activities to rebound in 2019, as uncertainty regarding Brazil's presidential election has ended.
A higher number of mergers and acquisitions deals are expected in Brazil. Also, about 10 share offerings are expected to occur in the first half of 2019.
Itau Unibanco remains focused on building its operations either through strategic acquisitions or with plans to strengthen operations by introducing new products. However, elevated expenses and stressed conditions in Brazil keep us apprehensive.
Shares of Itau Unibanco have gained 1.6% so far this year against 20.8% decline of the industry.
Currently, the stock carries a Zacks Rank #3 (Hold).
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