Itau Unibanco may expand into the UK

by Richard Kilner

Story link: Itau Unibanco may expand into the UK

The Scotsman is reporting that Brazilian bank Itau Unibanco is considering acquiring stakes in both RBS and Lloyds Banking Group.

The firm is thought to be contemplating buying up shares that are to be offloaded by the British Government.

The move would come as part of a strategic plan of global expansion by Itau Unibanco, which is also considering opportunities for growth in the US.

Chairman Pedro Malan has indicated that the bank is considering its options, but is not in a rush and will assess its options carefully.

Both RBS and Lloyds Banking Group have suffered particularly badly from the financial crisis, the latter seeming to be in good shape until a rushed merger with HBOS saw it take on that bank’s woes.

RBS has recently been hit by more bad news, as it is one of Glitnir’s (a failed Icelandic bank) largest creditors and will reportedly lose up to £500m, though the bank’s spokesman has denied this and stated a maximum loss of £50m is on the cards.