Itau Unibanco Banco Multiplo S.A. (Itau-Unibanco) reported robust top-line, exceeding our expectations. However, bottom-line was closer to our expectations. Although the bank also reported a significant y-o-y rise in its provision expenses due to rising defaults, based on better-than-expected results and signs of economic recovery, we expect to revise our target price and estimates upwards in our next update report…

On 24 August 2009, Itau Unibanco Banco Multiplo S.A. (Itau-Unibanco) announced an agreement with Porto Seguro S.A. (Porto Seguro) for the distribution and operations of certain insurance products in Brazil and Uruguay. We believe the transaction will enable the company to enhance its presence in Brazil over the long term based on a wider client base and better product offering. However, we believe the transaction…

Brazil's GDP shrunk by 1.78% y-o-y in 1Q 09 (compared to +6.13% in 1Q 08), and the central bank (BCB) forecasts a slight contraction of 0.57% in GDP for 2009, followed by growth of 3.5% in 2010. Brazil's annualized CPI inflation eased further in May 2009 to 5.20% from 5.61% in March 2009, with inflation expected to fall to an annualized rate of 4.39% in December 2009 and 4.3% in FY 2010 Source: BCB survey 12 June 2009. Lower inflationary pressure and contraction…