By Rogerio Jelmayer and Matthew Cowley
SAO PAULO--Banco do Brasil SA (BBAS3.BR, BDORY), Latin America's
largest bank in terms of assets, has cooled its interest in
expanding into the U.S. market after missing out on a deal in
Florida in late May.
"We had an opportunity in the U.S. in the first semester," Banco
do Brasil's chief executive, Aldemir Bendine, told reporters. "But
for several reasons we couldn't complete (it). Now, due to the
external scenario, we're more prudent, we're calmer when we come to
evaluate."
Banco do Brasil is keen to grow overseas, albeit at a
conservative pace, as part of a diversification strategy that's
largely focused on serving Brazilians and Brazilian companies
overseas.
But the bank wants more stability in global markets before
taking another look at the U.S. market, he said.
"The interest in the U.S. remains due to the large number of
Brazilians and (Brazilian) companies there," he said, adding that
the bank is also still interested in Latin America. "There are no
negotiations underway."
In May, Banco do Brasil lost to Chile's Banco de Credito e
Inversiones SA (BCI.SN) in the race for City National Bank of
Florida, which was owned by Spanish lender Bankia SA.
Last year, Banco do Brasil purchased a tiny Florida bank,
Eurobank, with just three branches, for $6 million. Banco do Brasil
has also been analyzing opportunities in other Latin American
countries, particularly Chile, Colombia and Peru.
The first major step taken by Banco do Brasil outside Brazil was
in late 2010, when it bought control of Argentina's fourth-largest
bank, Banco Patagonia SA. The Brazilian bank has said it wants
international operations to increase to 15% of total revenue in the
next few years from around 8.4% now. That figure is up from 1% four
years ago.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com and
Matthew Cowley at matthew.cowley@wsj.com
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