Banco Itaú in Colombia, one of the largest subsidiaries of the Brazilian group, reported a profit of $87,371 million at the end of 2021. Its President, Baruc Sáez, stated that they expect to grow their customer base in the country by between 5% and 10% this year; they will also advance the digital transformation of financial assets by launching new products such as apps for corporate clients.
How should Itaú’s 2021 financial results in Colombia be interpreted?
The balance is highly positive. It has been a very rewarding experience personally and professionally, as the leadership cycle in Itaú Colombia entered its one and a half year mark. A clear transformation has taken place both inside the bank and in its external footprint, with a higher digitalization rate for products and the ongoing overhaul of the bank’s operating model.
Compared with 2020, results were strong, tallying $87,371 million after extraordinary expenses and restructuring costs. The figure is close to 2019, yet the revenue mix shows greater quality and stability.
How did the loan portfolio perform and which lines stood out?
In 2021 the bank exceeded 20% growth in consumer and retail banking. Within construction, Itaú Colombia stands among the leading lenders to contractors, and the loan portfolio in this segment grew by more than 15%.
How many customers are served and what is the forecast for the year ahead?
The bank serves almost 400,000 customers, with 365,000 in retail banking. The plan is to consolidate and expand this customer base by at least 5% to 10% in the coming year.
What about commissions last year? Have OPAs influenced the market?
The group remains highly active in corporate finance, and the broker plays a crucial role in this development, generating a profit of $16,266 million. Itaú Colombia does not directly participate in OPAs, but participates indirectly through the activity levels that drive volume. The strength of deal flows and commission income reinforces the ambition to become a leading bank in corporate finance and investment banking.
How is Itaú performing in the first quarter of 2022 and what are the projections for the year end?
The focus is squarely on transforming the bank—deepening the customer base while digitizing many processes, especially in customer service. In addition to regular annual technology investments, the bank is committing more than $120,000 million to digital initiatives. The goal is to reach profitability on par with Colombia’s leading banks by 2023 or 2024.
What new products are planned for this year?
Online-approval loans for living spaces are expected to streamline both the approval and disbursement process, making it fully digital. The plan also includes expanding investment fund offerings, delivering faster customer service through WhatsApp, and introducing a dedicated app for corporate banking clients.
CONTRAST
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Jonathan Malagon, former housing minister
“Officially, our Ecobertura advantage for non-VIS homes that meet sustainability criteria is starting to deliver.”
When will the online housing loan product launch?
The schedule targets the second or third quarter. A housing loan evaluation section is already in place, enabling potential borrowers to assess their borrowing capacity this month.
Source: La Publica