| | | | | Sell * (Price target R$16.00) | | UBS Research THESIS MAP | a guide to our thinking and what's where in this report | | | Q: Have loan loss provisions peaked? The latest 2Q16 results suggest that we may be past the worst in terms of provisions. Although remaining elevated at R$8.2bn, and higher than we were expecting, loan loss provisions fell 9.5%qoq in 2Q16. Given the 2016 provision guidance, this suggests 2H16 provisions would be R$11.0bn-R$14.1bn (vs R$17.4bn in 1H16), indicating that provisions may have peaked in 1Q16. Q: What does a lower Selic mean for BB? In the manner that a rising Selic over the past three years was positive for bank margins with the re-pricing (up) of the loan book, a falling Selic would put pressure on net interest margins. More positively, lower policy rates may help a recovery in loan growth and lessen asset quality pressure, while potentially bringing down cost of equity further. "Downgrade to Sell – heightened NPL risk" 5/18/2016→ | | Among Brazilian banks, BB is our least preferred stock, as rising asset quality risk has depleted the NPL buffer and depressed profitability and returns. Pricing behaviour has been rational but the rebound in NIM may be temporary with prospects of sharply lower policy rates over the next two years. | | 2Q16 results showed a further deterioration in asset quality. With no NPL buffer (i.e. excess provisions to loans), BB is the Brazilian bank under coverage most vulnerable to further NPL deterioration. | | Based on conversations with investors, the market is expecting NPLs to peak in 4Q16-1Q17. In our view, a good time to buy the sector will likely be related to when the market thinks delinquencies have peaked, paving the way for lower provisions and higher earnings. In Brazil, given the c46% BB rally YTD, we think the market to a certain extent has priced in peaking provisions although high profile bankruptcies such as last month’s Oi filing reminds us that asset quality headwinds persist. | | 
Value drivers | Loan growth | NIM | LLP as % of Average loans | EPS change from base | Sustainable ROE | R$21.4 upside | 6.0% | 6.4% | 4.25% | 25.8% | 14.25% | R$16.0 base | 3.0% | 6.3% | 4.40% | - | 13.25% | R$10.9 downside | 0.0% | 6.2% | 5.47% | -96.1% | 12.25% | Source: UBS | | | | | |
more→ | | Banco do Brasil is the largest Brazilian bank, holding approximately 18% of total banking assets. The bank also has the biggest retail branch network in Brazil and acts in... more → |
| | | COMMENTARY | return ↑ | Figure 1: 2Q16 Earnings Review – Main Highlights | 
| Source: Banco do Brasil, Bloomberg and UBS. Note: considers managerial numbers with reallocations |
| | | UPSIDE / DOWNSIDE SPECTRUM | return ↑ | 
Value drivers | Loan growth | NIM | LLP as % of Average loans | EPS change from base | Sustainable ROE | R$21.4 upside | 6.0% | 6.4% | 4.25% | 25.8% | 14.25% | R$16.0 base | 3.0% | 6.3% | 4.40% | - | 13.25% | R$10.9 downside | 0.0% | 6.2% | 5.47% | -96.1% | 12.25% | Source: UBS | | | | | |
| BB is trading
at 7.1xPE16e (as of 10 August 2016). |
Our scenarios depend on assumptions in three key lines: loan growth, net interest margin, loan loss provisions. Upside (R$21.4): Our upside scenario for 2016 assumes loan growth of 6.0%; NIM being increased by 10bps above our current estimate, to 6.4%; and loan loss provisions (as a percentage of average loans) decreasing by 15bps, to 4.25%. We estimate upside risk to 2016E EPS of 25.8% to R$3.72, while the derived valuation per share would be R$21.4. Base (R$16.0): Our base scenario for 2016 assumes loan growth of 3.0%; NIM at 6.3%; and loan loss provisions (as a percentage of average loans) at 4.40%. We estimate 2016E EPS at R$2.95, with sustainable ROE of 13.25%. Our price target is R$16.0. Downside (R$10.9): Our downside scenario for 2016 assumes loan growth of 0%; NIM being decreased by 5bps below our current estimate, to 6.2%; and loan loss provisions increasing by R$7.2bn (in line with our NPL stress scenario), with LLP to loans up 107bps to 5.4% loan loss provisions (as a percentage of average loans). We estimate downside to 2016E EPS of 96.1% to R$0.12, while the derived valuation per share would be R$10.9.
| | | COMPANY DESCRIPTION | return ↑ | Market Cap | US$15.3bn | Shares Outstanding | 2,865m (ORD) | Industry | Financials, Bank | Region | Americas | Website | www.bb.com.br |
Banco do Brasil is the largest Brazilian bank, holding approximately 18% of total banking assets. The bank also has the biggest retail branch network in Brazil and acts in diversified financial service activities, including commercial banking, current account services, consumer lending, credit card, asset management, capital markets advisory, and insurance, among others. Banco do Brasil is controlled by the Federal government and listed on the Novo Mercado, with 100% tag-along rights. Industry outlook We prefer private banks in Brazil (as illustrated by our Buy rating on Itau) to public banks, and currently have a neutral stance on Brazilian banks in a LatAm/EM context, post the formation of a new government, and as we move closer to loan-loss provisions peaking, which we expect to become evident in the forthcoming results. Itau is our only Buy-rated bank, with the strong share-price performance in recent months having made the risk/reward profile of the banking sector unattractive. Asset quality continues to be the key concern this year. Moreover, with the Selic expected to come down sharply over the next two years, margin pressure could also weigh on sector earnings. | Loans by segment (%, 1Q16) 
Source: Company |
| | | | Banco do Brasil (BBAS3.SA) | | | | | | | | | | | Net income interest | 46,427 | 45,706 | 52,537 | 57,466 | 9.4 | 59,540 | 3.6 | 64,646 | 70,353 | 77,421 | Total non interest income | 26,531 | 22,185 | 22,470 | 24,002 | 6.8 | 25,344 | 5.6 | 26,841 | 28,789 | 30,919 | Total income | 72,958 | 67,891 | 75,007 | 81,468 | 8.6 | 84,884 | 4.2 | 91,487 | 99,143 | 108,341 | Total cash expenses | (42,211) | (35,465) | (37,192) | (38,914) | -4.6 | (41,123) | -5.7 | (44,956) | (48,469) | (52,580) | Pre-depreciation operating profit | 30,747 | 32,426 | 37,815 | 42,555 | 12.5 | 43,761 | 2.8 | 46,531 | 50,674 | 55,760 | Depreciation & amort (excl. goodwill) | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Operating profit pre provisions | 30,747 | 32,426 | 37,815 | 42,555 | 12.5 | 43,761 | 2.8 | 46,531 | 50,674 | 55,760 | Total provisions | (15,600) | (17,172) | (23,671) | (32,069) | -35.5 | (28,977) | 9.6 | (28,755) | (28,963) | (30,405) | Operating profit post provisions | 15,147 | 15,254 | 14,144 | 10,486 | -25.9 | 14,785 | 41.0 | 17,776 | 21,710 | 25,355 | Income from associates & JVs (pre-tax) | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Other pre-tax items | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Profit before tax (UBS) | 15,147 | 15,254 | 14,144 | 10,486 | -25.9 | 14,785 | 41.0 | 17,776 | 21,710 | 25,355 | Exceptionals (incl goodwill) | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Profit before tax | 15,147 | 15,254 | 14,144 | 10,486 | -25.9 | 14,785 | 41.0 | 17,776 | 21,710 | 25,355 | Tax | (3,954) | (2,436) | (828) | (282) | 65.9 | (1,552) | NM | (1,936) | (2,412) | (2,817) | Profit after tax | 11,193 | 12,818 | 13,316 | 10,204 | -23.4 | 13,233 | 29.7 | 15,840 | 19,298 | 22,538 | Other post-tax items | 5,405 | (97) | 2,805 | 1,073 | -61.7 | 0 | - | 0 | 0 | 0 | Preference dividends | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Minorities | (840) | (1,475) | (1,722) | (1,740) | -1.0 | (2,675) | -53.8 | (3,902) | (5,367) | (7,051) | Net earnings (local GAAP) | 15,758 | 11,246 | 14,400 | 9,537 | -33.8 | 10,558 | 10.7 | 11,938 | 13,932 | 15,487 | Net earnings (before pref divs) | 15,758 | 11,246 | 14,400 | 9,537 | -33.8 | 10,558 | 10.7 | 11,938 | 13,932 | 15,487 | Net earnings (UBS) | 10,353 | 11,343 | 11,594 | 8,464 | -27.0 | 10,558 | 24.7 | 11,938 | 13,932 | 15,487 |
| | | | | | | | | | | EPS (local GAAP, basic) | 5.50 | 3.92 | 5.03 | 3.33 | -33.8 | 3.68 | 10.7 | 4.17 | 4.86 | 5.40 | EPS (UBS, diluted) | 3.61 | 3.96 | 4.05 | 2.95 | -27.0 | 3.68 | 24.7 | 4.17 | 4.86 | 5.40 | PPOP (diluted) | 10.73 | 11.32 | 13.20 | 14.85 | 12.5 | 15.27 | 2.8 | 16.24 | 17.68 | 19.46 | Net DPS | 2.19 | 1.58 | 2.01 | 0.74 | -63.2 | 0.92 | 24.7 | 1.04 | 1.22 | 1.35 | BVPS | 24.26 | 27.05 | 27.36 | 30.21 | 10.4 | 32.97 | 9.1 | 36.09 | 39.74 | 43.79 | BVPS (UBS) | 20.12 | 23.26 | 24.11 | 27.00 | 12.0 | 29.50 | 9.3 | 32.34 | 35.68 | 39.39 |
| | | | | | | | | | | Banking assets (year end) | 1,303,915 | 1,290,541 | 1,401,129 | 1,534,764 | 9.5 | 1,640,394 | 6.9 | 1,783,190 | 1,964,510 | 2,169,210 | Banking assets (average) | 1,227,201 | 1,297,228 | 1,345,835 | 1,467,946 | 9.1 | 1,587,579 | 8.1 | 1,711,792 | 1,873,850 | 2,066,860 | Total assets (year end) | 1,303,915 | 1,290,541 | 1,401,129 | 1,534,764 | 9.5 | 1,640,394 | 6.9 | 1,783,190 | 1,964,510 | 2,169,210 | Risk weighted assets (RWA) (year end) | 813,623 | 785,974 | 840,509 | 863,803 | 2.8 | 923,254 | 6.9 | 1,003,623 | 1,105,675 | 1,220,885 | Risk weighted assets (RWA) (average) | 767,882 | 799,798 | 813,241 | 852,156 | 4.8 | 893,528 | 4.9 | 963,439 | 1,014,464 | 1,163,280 | Customer loans | 599,755 | 643,623 | 684,272 | 694,070 | 1.4 | 728,635 | 5.0 | 792,581 | 885,855 | 993,738 | Customer loans (average) | 552,109 | 621,689 | 663,948 | 689,171 | 3.8 | 711,352 | 3.2 | 760,608 | 807,245 | 939,797 | Interest earning assets (average) | 815,280 | 845,955 | 852,274 | 916,108 | 7.5 | 977,898 | 6.7 | 1,054,194 | 1,149,866 | 1,260,846 | Customer deposits | 491,013 | 468,176 | 464,420 | 476,759 | 2.7 | 503,307 | 5.6 | 539,638 | 587,226 | 640,647 | Common s/h equity (year end) | 69,526 | 77,520 | 78,408 | 86,551 | 10.4 | 94,470 | 9.1 | 103,423 | 113,871 | 125,487 | Common s/h equity (average) | 67,511 | 73,523 | 77,964 | 82,480 | 5.8 | 90,510 | 9.7 | 98,946 | 104,170 | 119,679 | Total SHF (equity, pref & MI) (year end) | 69,526 | 77,520 | 78,408 | 86,551 | 10.4 | 94,470 | 9.1 | 103,423 | 113,871 | 125,487 | Total SHF (equity, pref & MI) (average) | 67,511 | 73,523 | 77,964 | 82,480 | 5.8 | 90,510 | 9.7 | 98,946 | 104,170 | 119,679 | Net tangible assets | 57,647 | 66,655 | 69,081 | 77,368 | 12.0 | 84,529 | 9.3 | 92,663 | 102,225 | 112,880 |
| | | | | | | | | | | Loans / banking assets (year end) | 46.0 | 49.9 | 48.8 | 45.2 | -7.4 | 44.4 | -1.8 | 44.4 | 45.1 | 45.8 | Deposits / banking assets (year end) | 37.7 | 36.3 | 33.1 | 31.1 | -6.3 | 30.7 | -1.2 | 30.3 | 29.9 | 29.5 | Loans / deposits | 122.1 | 137.5 | 147.3 | 145.6 | -1.2 | 144.8 | -0.6 | 146.9 | 150.9 | 155.1 | Total SHF / banking assets (year end) | 5.3 | 6.0 | 5.6 | 5.6 | 0.8 | 5.8 | 2.1 | 5.8 | 5.8 | 5.8 |
Source: Company accounts, UBS estimates. (UBS) metrics use reported figures which have been adjusted by UBS analysts.
Banco do Brasil (BBAS3.SA) | | | | | | | | | Tier 1 capital | 85,501 | 89,538 | 95,714 | 98,590 | 105,717 | 113,775 | 123,179 | 133,632 | Total capital | 118,234 | 126,588 | 135,551 | 137,057 | 144,183 | 152,241 | 161,645 | 172,099 | Risk weighted assets (RWA) (year end) | 813,623 | 785,974 | 840,509 | 863,803 | 923,254 | 1,003,623 | 1,105,675 | 1,220,885 | Core tier 1 ratio % | 8.2 | 9.0 | 8.2 | 9.0 | 9.2 | 9.3 | 9.3 | 9.3 | Tier 1 ratio % | 10.5 | 11.4 | 11.4 | 11.4 | 11.5 | 11.3 | 11.1 | 10.9 | Total capital ratio % | 14.5 | 16.1 | 16.1 | 15.9 | 15.6 | 15.2 | 14.6 | 14.1 | Tangible equity | 57,647 | 66,655 | 69,081 | 77,368 | 84,529 | 92,663 | 102,225 | 112,880 | Equity / assets % | 5.3 | 6.0 | 5.6 | 5.6 | 5.8 | 5.8 | 5.8 | 5.8 | Tangible equity to tangible assets % | 4.5 | 5.2 | 5.0 | 5.1 | 5.2 | 5.2 | 5.2 | 5.2 |
| | | | | | | | | Non performing assets | 14,601 | 14,447 | 18,910 | 23,656 | 20,954 | 19,287 | 18,618 | 20,740 | Total risk reserves | 23,662 | 25,397 | 33,577 | 45,183 | 47,422 | 46,000 | 45,056 | 43,242 | NPLs / loans % | 2.0 | 1.9 | 2.2 | 3.2 | 2.7 | 2.3 | 2.0 | 2.0 | NPL coverage % | 191.7 | 204.3 | 209.2 | 191.0 | 226.3 | 238.5 | 242.0 | 208.5 | Provision charge / average loans % | 2.8 | 2.8 | 3.6 | 4.7 | 4.1 | 3.8 | 3.6 | 3.2 | Net NPAs / shareholders funds % | (13.0) | (14.1) | (18.7) | (24.9) | (28.0) | (25.8) | (23.2) | (17.9) |
| | | | | | | | | Net interest margin (avg assets) | 3.78 | 3.52 | 3.90 | 3.91 | 3.75 | 3.78 | 3.75 | 3.75 | Provisions / operating profit | 50.7 | 53.0 | 62.6 | 75.4 | 66.2 | 61.8 | 57.2 | 54.5 | ROE (UBS earnings) | 15.3 | 15.4 | 14.9 | 10.3 | 11.7 | 12.1 | 13.4 | 12.9 | RoAdjE (UBS earnings & equity) | 18.2 | 18.3 | 17.1 | 11.6 | 13.0 | 13.5 | 14.9 | 14.4 | RoRWA (UBS) | 1.46 | 1.60 | 1.64 | 1.20 | 1.48 | 1.64 | 1.90 | 1.94 | RoA (UBS earnings) | 0.91 | 0.99 | 0.99 | 0.70 | 0.83 | 0.93 | 1.07 | 1.09 |
| | | | | | | | | Cost income ratio | 57.9 | 52.2 | 49.6 | 47.8 | 48.4 | 49.1 | 48.9 | 48.5 | Cost / average assets | 3.44 | 2.73 | 2.76 | 2.65 | 2.59 | 2.63 | 2.69 | 2.54 | Compensation expense ratio | 35.8 | 35.1 | 33.8 | 32.5 | 33.8 | 34.6 | 34.9 | 34.9 |
| | | | | | | | | Revenue | 4.5 | -6.9 | 10.5 | 8.6 | 4.2 | 7.8 | 8.4 | 9.3 | Operating profit pre provisions | -0.1 | 5.5 | 16.6 | 12.5 | 2.8 | 6.3 | 8.9 | 10.0 | Net earnings (UBS) | -10.2 | 9.6 | 2.2 | -27.0 | 24.7 | 13.1 | 16.7 | 11.2 | Net DPS | 28.0 | -28.1 | 27.0 | -63.2 | 24.7 | 13.1 | 16.7 | 11.2 | Total assets (year end) | 13.3 | -1.0 | 8.6 | 9.5 | 6.9 | 8.7 | 10.2 | 10.4 | Customer loans | 18.9 | 7.3 | 6.3 | 1.4 | 5.0 | 8.8 | 11.8 | 12.2 | Customer deposits | 4.0 | -4.7 | -0.8 | 2.7 | 5.6 | 7.2 | 8.8 | 9.1 |
| | | | | | | | | Market cap/revenues | 1.0 | 1.1 | 0.8 | 0.7 | 0.7 | 0.7 | 0.6 | 0.6 | Market cap/deposits | 0.1 | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | P/PPOP (diluted) | 2.3 | 2.3 | 1.6 | 1.4 | 1.4 | 1.3 | 1.2 | 1.1 | P/E (local GAAP, basic) | 4.6 | 6.5 | 4.2 | 6.3 | 5.7 | 5.0 | 4.3 | 3.9 | P/E (UBS, diluted) | 6.9 | 6.4 | 5.2 | 7.1 | 5.7 | 5.0 | 4.3 | 3.9 | Net dividend yield % | 8.8 | 6.2 | 9.6 | 3.5 | 4.4 | 5.0 | 5.8 | 6.5 | P/BV x | 1.0 | 0.9 | 0.8 | 0.7 | 0.6 | 0.6 | 0.5 | 0.5 | P/BV (UBS) x | 1.2 | 1.1 | 0.9 | 0.8 | 0.7 | 0.6 | 0.6 | 0.5 |
Source: Company accounts, UBS estimates. (UBS) metrics use reported figures which have been adjusted by UBS analysts. | | | | | Forecast returns | Forecast price appreciation-23.3% | Forecast dividend yield4.0% | Forecast stock return-19.3% | Market return assumption15.6% | Forecast excess return-34.9% |
| Valuation Method and Risk Statement Our PT for Banco do Brasil is Gordon growth model derived, with CoE of 16.9%, sustainable ROE of 13.25% and growth of 9.5%.
Our PT for Itau is Gordon growth model derived.
In addition to industry- and company-specific risk, there are potential risks inherent in investing in emerging market countries. Potential emerging market related risks include, but are not limited to, the volatile nature of the currency, regulatory and socio-political risk, and abrupt potential changes in the cost of capital and economic growth outlook. Valuations can also be affected by "contagion" from developments in other emerging and developed markets. Required Disclosures This report has been prepared by UBS Limited, an affiliate of UBS AG. UBS AG, its subsidiaries, branches and affiliates are referred to herein as UBS. For information on the ways in which UBS manages conflicts and maintains independence of its research product; historical performance information; and certain additional disclosures concerning UBS research recommendations, please visit www.ubs.com/disclosures. The figures contained in performance charts refer to the past; past performance is not a reliable indicator of future results. Additional information will be made available upon request. UBS Securities Co. Limited is licensed to conduct securities investment consultancy businesses by the China Securities Regulatory Commission. UBS acts or may act as principal in the debt securities (or in related derivatives) that may be the subject of this report. This recommendation was finalized on: 11 August 2016 12:14 PM GMT. Analyst Certification: Each research analyst primarily responsible for the content of this research report, in whole or in part, certifies that with respect to each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers and were prepared in an independent manner, including with respect to UBS, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the research report. UBS Investment Research: Global Equity Rating Definitions 12-Month Rating | Definition | Coverage | IB Services | Buy | FSR is > 6% above the MRA. | 47% | 32% | Neutral | FSR is between -6% and 6% of the MRA. | 38% | 25% | Sell | FSR is > 6% below the MRA. | 15% | 21% | Short-Term Rating | Definition | Coverage | IB Services | Buy | Stock price expected to rise within three months from the time the rating was assigned because of a specific catalyst or event. | <1% | <1% | Sell | Stock price expected to fall within three months from the time the rating was assigned because of a specific catalyst or event. | <1% | <1% |
Source: UBS. Rating allocations are as of 30 June 2016.
1:Percentage of companies under coverage globally within the 12-month rating category.
2:Percentage of companies within the 12-month rating category for which investment banking (IB) services were provided within the past 12 months.
3:Percentage of companies under coverage globally within the Short-Term rating category.
4:Percentage of companies within the Short-Term rating category for which investment banking (IB) services were provided within the past 12 months. KEY DEFINITIONS: Forecast Stock Return (FSR) is defined as expected percentage price appreciation plus gross dividend yield over the next 12 months. Market Return Assumption (MRA) is defined as the one-year local market interest rate plus 5% (a proxy for, and not a forecast of, the equity risk premium). Under Review (UR) Stocks may be flagged as UR by the analyst, indicating that the stock's price target and/or rating are subject to possible change in the near term, usually in response to an event that may affect the investment case or valuation. Short-Term Ratings reflect the expected near-term (up to three months) performance of the stock and do not reflect any change in the fundamental view or investment case. Equity Price Targets have an investment horizon of 12 months. EXCEPTIONS AND SPECIAL CASES: UK and European Investment Fund ratings and definitions are: Buy: Positive on factors such as structure, management, performance record, discount; Neutral: Neutral on factors such as structure, management, performance record, discount; Sell: Negative on factors such as structure, management, performance record, discount. Core Banding Exceptions (CBE): Exceptions to the standard +/-6% bands may be granted by the Investment Review Committee (IRC). Factors considered by the IRC include the stock's volatility and the credit spread of the respective company's debt. As a result, stocks deemed to be very high or low risk may be subject to higher or lower bands as they relate to the rating. When such exceptions apply, they will be identified in the Company Disclosures table in the relevant research piece. Research analysts contributing to this report who are employed by any non-US affiliate of UBS Securities LLC are not registered/qualified as research analysts with FINRA. Such analysts may not be associated persons of UBS Securities LLC and therefore are not subject to the FINRA restrictions on communications with a subject company, public appearances, and trading securities held by a research analyst account. The name of each affiliate and analyst employed by that affiliate contributing to this report, if any, follows. UBS Limited: Philip Finch. UBS Brasil CCTVM S.A.: Mariana Taddeo; Frederic De Mariz. Company Disclosures Company Name | Reuters | 12-month rating | Short-term rating | Price | Price date | Banco do Brasil | BBAS3.SA | Sell (CBE) | N/A | R$20.87 | 10 Aug 2016 | Itau Unibanco | ITUB4.SA | Buy | N/A | R$34.78 | 10 Aug 2016 |
Source: UBS. All prices as of local market close.
Ratings in this table are the most current published ratings prior to this report. They may be more recent than the stock pricing date 5.UBS AG, its affiliates or subsidiaries expect to receive or intend to seek compensation for investment banking services from this company/entity within the next three months. 7.Within the past 12 months, UBS Securities LLC and/or its affiliates have received compensation for products and services other than investment banking services from this company/entity. 16.UBS Securities LLC makes a market in the securities and/or ADRs of this company. 20.Because this security exhibits higher-than-average volatility, the FSR has been set at 15% above the MRA for a Buy rating, and at -15% below the MRA for a Sell rating (compared with 6/-6% under the normal rating system). Unless otherwise indicated, please refer to the Valuation and Risk sections within the body of this report. For a complete set of disclosure statements associated with the companies discussed in this report, including information on valuation and risk, please contact UBS Securities LLC, 1285 Avenue of Americas, New York, NY 10019, USA, Attention: Investment Research. Banco do Brasil (R$) 
Source: UBS; as of 10 Aug 2016 |
Itau Unibanco (R$) 
Source: UBS; as of 10 Aug 2016 |
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