Itaú Private Bank (PB) reached BRL700 billion Brazilian Reais (US$134.8bn) in Assets under Management (AuM) last year, almost double that of the second-place player in Brazil, on total funding of BRL38bn (US$7.3bn), making it the Outstanding Global Private Bank: Latin America at the PBI Global Wealth Awards 2022 for its size, performance, and international capabilities.
The Private Bank’s structure includes more than 800 professional specialists, strategically located in 14 global offices to serve its clients and 8,286 diverse families, whose operations and investments span the globe. Itaú PB can cater for them at ‘home’ in Latin America (LatAm) or anywhere else in the world.
Revenue increased by 14% from 2015 to 2021 when the last full year of results were produced. Net income grew by 21% for a compound annual growth rate of 19% over the last six years.
This year has been a volatile market, however, impacted by the on-going Covid-19 pandemic and how this has affected global supply chains and economies allied to the recent war in Ukraine, which has led to rising global interest rates, oil prices and so on – not to mention the separate socioeconomic crisis in Latin America. Volatile markets present risks and opportunities in 2022. But Itaú PB knows how to navigate around economic headwinds and still perform by:
Focusing on the customer via events, online content, surveys and so on;
Build long-term relationships via staff training;
Promote continuous evolution of services by providing appropriate IT and expertise;
& Adhere to ethical standards, which is increasingly important in an era where the environmental, social, and governance (ESG) agenda and sustainability considerations define the future investment landscape.
Itaú PB’s model is to have a banker, who serves as the relationship leader, orchestrating the work of the advisor, the banking manager, and a team of specialists in areas like wealth planning, structured products, credit, and pension plans. This creates a clear and consolidated service team. The Itaú Family Office offers further specialist services. Over the last five years, the number of families has increased 44%.
The relationship with the Itaú Unibanco retail bank generates cross-segment client referrals, feeding clientele into the Group’s mass affluent, wealth management (WM) and ultimately PB business and establishing a clear value chain and journey for its customers. The model allows for joint operational efficiencies, where possible, data-sharing and opens countless cross-selling opportunities for the various financial segments across Latin America. The Itaú BBA wholesale business also contributes towards growth.
The foundation of Itaú PB’s business is solid, lasting relationships and an investment management model based on five pillars:
Wealth planning,
ESG,
Tailored solutions based on a structured investment process,
A one-stop shop with a flexible Open IT platform,
& Consistent results with a focus on long-term vision.
Itaú Private Bank was also HC: Highly Commended at the 32nd Private Banker International (PBI) Global Wealth Awards 2022 in the following category: Most Effective Investment Service Offering.