An Introduction to Brazil’s Largest Banks, Latin America’s Biggest
Since the ’80s and ’90s, Latin American banks have stabilized. Today, the largest banks in Latin America are concentrated in two countries: Brazil and Mexico.
The Brazilian banking industry had an average return on equity (ROE) of 13.2% in 2013, falling far below its pre-crisis levels, when it exceeded 15%.
As of 2Q15, Brazil’s total credit outstanding was 3.08 trillion real. Of this, ~55% comes from public financial institutions and 45% from private banks.
The Brazilian banking system is highly consolidated as a result of significant M&A activity. The six leading banks in the country account for 80% of the overall bank assets.
In terms of country weightings, our four Europe-focused funds, as well as their benchmark index, all invest most heavily in Britain.
In terms of portfolio composition, FHJUX deviates significantly from the benchmark MSCI Europe Index, while VEURX closely resembles it.
Between the two funds—PEUGX and PRESX—PEUGX more closely mirrors the portfolio composition of the MSCI Europe Index.
All investment vehicles come with a certain amount of risk attached. The Sharpe ratio is one measure to assess risk-adjusted returns.
To assess the performance of the four Europe-focused funds we’re looking at in this series, we’ll be using the total return measure.
The aim of this series is to provide a head-to-head comparison of four Europe-focused mutual funds. The EU’s inflation rate slowed to 0.2% in June.
The Conference Board Consumer Confidence Index fell from June’s final number of 99.8 to 90.9. This drop of 8.9 points is the biggest of its kind since August 2011.
Regions Financial outperformed XLF last week Shares of Regions Financial (RF) rallied 4.35% during the week ended July 24. Year-to-date, the stock has remained flat while the Financial Select Sector…
Schwab Group (SCHW) reported better-than-expected second-quarter earnings, driven by improved revenue growth and lower provision for losses.
Shares of Capital One Financial (COF) tumbled 13.33% during the week ended July 27 due to an earnings miss.
Larger-cap stocks above $10 billion make up 87.26% of the Financial Select Sector SPDR Fund (XLF). These stocks have risen by 0.86% YTD…
Three hundred and four analysts cover the 13 stocks in the diversified financial services sub-group. Of these, there are 173 “buy” ratings assigned, 17 “sell” ratings, and 114 “hold” ratings.
Over the last five trading days ended July 27, no particular sub-industry was able to gain significant value as weak earnings, falling Treasury yields, and weak global sentiment weighed on the markets.
Weak corporate results and falling long-term Treasury yields led to losses in the US financial sector in the week ended July 24.
Northern Trust (NTRS) reported 2Q15 revenues of $1.26 billion, significantly higher than $1.08 billion in 2Q14 and beating consensus estimates of $1.16 billion.
State Street (STT) reported its 2Q15 results on July 24. Earnings of $393 million were in line with analysts’ expectations but lower than the $602 million reported in 2Q14.
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