Itaú and Bradesco Confirm BRB Loan Portfolio Buys After CVM Query

Regulators pressed the banks for clarity after BTG’s chair discussed the deals in public.

Overview

Itaú said Wednesday that a subsidiary agreed to buy certain Banco de Brasília (BRB) assets after the CVM asked about reported transactions.
Bradesco said it is purchasing BRB loan portfolios in a 50/50 consortium with Itaú that involve state and city borrowers and carry a federal guarantee.
Both banks said the amounts are not material to their results and do not require a market-moving disclosure under securities rules.
The CVM’s questions followed remarks by BTG chair André Esteves, who said the two banks had negotiated about R$1 billion in BRB portfolios.
BRB is still trying to repair losses tied to Banco Master assets, and a R$15 billion fund proposed by the Federal District government awaits Central Bank approval.