On Friday, Shares of Itaú Unibanco Holding S.A. (NYSE:ITUB), lost -1.45% to $7.47.
Itaú Unibanco Holding SA, Brazil’s No. 1 bank by market value, is having a difficult time predicting prospects for corporate loan delinquencies amid an uncertainty outlook for some industries and policies to shore up the economy, the bank’s CEO said on Thursday, according to Reuters.
The quality of Itaú’s consumer loan book is relatively less difficult to control because the segment is affected by fewer influences than corporate credit, Roberto Egydio Setubal said at an event with the bank’s shareholders in São Paulo. Reuters Reports
A bigger-than-predictable jump in defaults cast a shadow over second-quarter profit at Itaú, underscoring a deteriorating outlook for banks in Latin America’s largest economy. Default ratios at Itaú raised in the period for the first time in 11 quarters, offsetting the benefits of rising borrowing costs and strong fee income that assisted drive its profit to an all-time high.
Last quarter, Itaú’s 90-day default ratio rose to 3.3 percent, the highest in a year and above expectations. Executives expect delinquencies to rise through year-end, a sign that fallout from a corruption scandal at state firms and Brazil’s worst recession in 25 years will hurt creditworthiness. Reuters added.
Itaú Unibanco Holding S.A. provides various financial products and services to individuals and corporate clients in Brazil and internationally. The company operates through Commercial Bank Retail, Consumer Credit Retail, and Wholesale Bank segments.
Shares of The Blackstone Group L.P. (NYSE:BX), declined -1.62% to $33.95, during its last trading session.
Stearns Holdings, LLC, parent company of Stearns Lending, LLC, a leading national mortgage lender with wholesale, retail, correspondent, and planned alliance business channels, declared that funds managed by the private equity group of Blackstone (BX), a leading global asset manager, will acquire a majority stake in the company. This partnership with Blackstone will provide Stearns with the necessary resources to accelerate its growth and fuel its efforts to capture even greater market share. Founder Glenn Stearns will retain a noteworthy ownership stake.
“I am extremely excited to partner with Blackstone,” explained Glenn Stearns, Chairman and Founder of Stearns. “Aligning with a strong financial partner will provide us with the resources to continue executing our planned plan as we aim to enhance profitable market share growth. I am very proud of what our employees have accomplished over the past 26 years and I look forward to the future with Blackstone as a partner.”
“We chose Stearns to be our partner because it is a leader in the mortgage market with a world-class administration team and a strong platform,” said Chinh Chu, a Senior Managing Director at Blackstone. “We look forward to partnering with Founder Glenn Stearns, CEO Brian Hale and the entire team at Stearns to accelerate the next phase of the company’s growth.”
“My leadership team and I look forward to the future with support from Chinh and the other members of the Blackstone team as we continue to build the preeminent residential mortgage lender in the U.S.,” continued Brian Hale, Chief Executive Officer of Stearns.
The Blackstone Group L.P. is a publicly owned investment manager. The firm also provides financial advisory services to its clients. It provides its services to public and corporate pension funds, academic, cultural, and charitable organizations.
Oil prices have slumped to six-year lows as global stock markets continue to fall on concerns over a slowing Chinese economy, according to BBC.
Brent and US crude futures fell below $45 and $40 a barrel respectively as global investors assessed the contagion risks of China’s volatile stock market. BBC Reports
Recent data has suggested that China’s economic growth continues to slow down.
In addition to the volatility in Chinese shares, there are fears of a protracted effect on demand for commodities. BBC added.
BP p.l.c. (NYSE:BP), ended its last trade with -3.52% loss, and closed at $33.17, hitting its lowest level.
BP p.l.c. operates as an integrated oil and gas company worldwide. It operates in three segments: Upstream, Downstream, and Rosneft. The Upstream segment engages in the oil and natural gas exploration, field development, and production; midstream transportation, and storage and processing; and marketing and trade of natural gas, counting liquefied natural gas (LNG), and power and natural gas liquids (NGL).
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