Brazilian Itau Unibanco Holding SA (ADR) (NYSE:ITUB) Struggles To Enthuse Investors


Dallas, Texas 12/11/2013 (FINANCIALSTRENDS) – Itau Unibanco Holding SA (ADR) (NYSE:ITUB) is a Brazil based $67 billion market capped banking major which has operations spread across countries like, “in Brazil, Argentina, Switzerland, the United States, the United Arab Emirates and China”. The bank has its operations spread across four major verticals of “Commercial Banking, Itau BBA, Consumer Credit and Market and Corporation Activity”. The firm had also offered American depository receipts to raise funds from the U.S stock market and has been a significant player in the wider economy of the fast growing Brazilian economy.

Underperforming Stock

ADR issued by Itau Unibanco Holding SA (ADR) (NYSE:ITUB) have been underperforming stock at the U.S stock markets for the trailing 12 months. It has posted net loss of 1.37 percent over the past 12 months and by close to 0.87 percent in the prior 180 days. Itau Unibanco Holding SA (ADR) (NYSE:ITUB) simple moving average over the past 200 days is also similarly unappealing at negative 3.9 percent. At current price points the stock is tracking at $13.66 per share which is 20 percent lower than its prior 52 week high price point. In addition the company has paid out dividend of close to $0.08 per share over the past 12 months which translates to a 0.59 percent dividend yield in the same period.

Commenting about the status quo maintained by the bank to win back investor confidence Itau Unibanco Holding SA (ADR) (NYSE:ITUB) Chief Executive Officer and member of executive board Roberto Egydio Setubal has been quoted as saying, “We have no plans to step up loan disbursements more aggressively in coming months. Growth in Itaú’s loan book should gain speed little by little in coming quarters. Itau Unibanco Holding SA (ADR) (NYSE:ITUB) risk-averse approach to loan growth is the correct one for us at this moment.”