- Itau had a weak fourth quarter, largely as expected, and guidance for 2021 suggests improvement albeit with a wide range of possible outcomes.
- I'm not worried about credit or core loan recovery opportunities at Itau; I'm worried about the long-term weakening of the credit card business, and Itau's competitiveness in digital banking.
- Share loss to fintechs is a risk, particularly in profitable segments of consumer banking, but Itau looks undervalued on 7% long-term core earnings growth.
For further details see:
Itau Unibanco - Work To Do, But Undervalued On Recovery Prospects