Itausa N1 (SAO:ITSA3)

QUOTE AND NEWS
 

Itaúsa or Itausa SAO:ITSA3 SAO:ITSA4 is a Brazilian conglomerate that controls a number of major financial, real estate and industrial institutions. Its main asset is the 36.6% stake it has in Itau Unibanco Holding SA, the largest financial institution in South America in terms of assets and one of the largest in terms of market value (over $100 billion USD ranking ninth worldwide), present in 1100 cities in Brazil and even more abroad in 11 other countries. Another world leader is subsidiary Duratex, the largest manufacturerer of panels in the Southern Hemisphere. In 2010 Itausa rose in the Fortune 2000 international rankings going from 163 to 82. Forbes cited strong growth in the company's revenue (67.5%), profits (94%), assets (29.2%) and market value (111.9%).[1][2] Being highly diversified (investments are spread across many industries, from banking to the manufacture and maintenance of microcomputers and banking machines (Itautec), bathroom fittings (Duratex) to a third party supplier of chemical products) and international makes Itausa less risky because it has exposure to more than one market and economic sector.

Wholly owned subsidiary Itautec has in only 30 years of existence become a top 10 owner of ATM banking machines (that are maintained by its own network of assistance providers).

Company Overview

The predecessor companies that formed Itausa in 2008 were founded in 1965. The company is also involved in the production of chemicals such as Butanol, Hexyl Alcohols and Hexanoic Acids through subsidiary Elexeiroz (still relatively small with a 2009 gross revenue of USD 355 million (exchange rate of 2.008).[3]

  • Elekeiroz (96.6% owned by Itausa) - South America's lone producer of Octyl Alcohols, Plasticizers and 2-Ethylhexagonic Acid. The company has been involved in the production of intermediary products for over a century. The division contributed 0.34% of Itausa's total consolidated net income in the first nine months of 2010 up from 0.1% during the same period in 2009.
  • Duratex (35.32% owned by Itausa) - Industrial manufacturer of bathroom fittings (wood and metal). Products are marketed under the brand Deca. Abroad it operates in the United States, Belgium and Argentina (as of 2010). The division contributed 3.5% of Itausa's total consolidated net income in the first nine months of 2010 up from 1.25% during the same period in 2009.
  • Itautec (94.01% owned by Itausa) - Established in the early 1980's it runs a network of ATM's in Brazil. Through regional subsidiaries it is present throughout the America's as well as Europe. The division contributed 0.3% of Itausa's total consolidated net income in the first nine months of 2010 down from 0.4% during the same period in 2009.
*Itau Unibanco (36.6% owned by Itausa) - Fortune 500 company that is a leading provider of retail banking products and insurance to the South American market. It was formed in November 2008 when Banaco Itau and Unibanco merged, controls 11% of retail banking in Brazil and has 5000 branches worldwide. 2010 third quarter adjusted net income increase 18% to $1.87 billion compared to 40% (to $1.47 billion) for Banco Bradesco, Brazil's second biggest bank.[4] The division contributed 98-99% of Itausa's net income in the first nine months of 2010 down slightly from 2009.

Shown in the graph to the right is the contribution to Itausa's total assets, operating revenue and market value by each of the major companies it has an interest in. The market value was found by taking the fraction of the total for each company based on Itausa ownership interest.

Business and Financials, revenue, net income and other

95.73% of 2009 equity income and 98.9% 2008 operating revenue came from business related to banking and other financial products and services (Itau Unibanco, Banco Multiplo).
using fx rates[5]
USD million
2006[6]
fx 2.18
2007[3]
fx 1.952
2008[3]
fx 1.84
2009[3]
fx 2.008
9M09[7]
fx 2.08383
9M10[7]
fx 1.780977
Change % (9M)
operating revenue 23,703.21 30,419.55 45,261.96 57,610.00 41,371.42 50,322.38 21.64%
net income 3,117.43 4,567.62 2,951.65 5,847.6 3,925.94 5,799.06 47.72%
ROE (shareholders equity) 30.2% 28.8% 14.4% 22.1% 20.9% 22.5% 7.66%
net income (hldg comp) 2,057.80 1,840.16 2,194.57 1,957.2 1,326.88 1,895.03 42.82%
shareholders equity 12,497.71 17,383.81 26,240.74 28,862.5 26,833.28 37,212.72 38.68%
assets 98,363.76 153,706 349,565 306,754 297,462.36 390,116.77 31.15%

Competition

Banco Bradesco Brazil's 2nd largest bank.

References

  1. The Global 2000 2010 (2010-04-21).
  2. The Global 2000 2009 (2009-04-08).
  3. 3.0 3.1 3.2 3.3 Itausa 2009 Annual Report (2010).
  4. Itau Unibanco's Third Quarter Profit Rises on Lending (2010-11-03).
  5. irs.gov yearly average exchange rates (2010).
  6. Itau 2007 Annual Report (2008).
  7. 7.0 7.1 Itausa 2010 Third Quarter Report (November 2010).
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