MICROCAPITAL BRIEF: Itau Unibanco of Brazil Commits $167m to Microloans for Urban Entrepreneurs in Concert with Business Call to Action, UN Millennium Development Goals

Brazilian bank Itau Unibanco recently joined the Business Call to Action (BCtA), a multi-organization initiative that seeks to reduce poverty through the private sector in support of the United Nations Millenium Development Goals (MDGs).Itau Unibanco reportedly plans to open up an estimated USD 167 million in business microloans for urban entrepreneurs in Brazil. Sahba Sobhani, BCtA Acting Programme Manager at Itau Unibanco, reportedly said, “As part of its commitment to the BCtA, Itau Unibanco will develop a new evaluation tool to measure the impact of microcredit loans on clients’ lives, including changes in income, increased financial literacy, and enrollment in additional banking products such as insurance and debit and savings accounts.” The bank will also seek to increase the use of mobile technology among its client base.

As of December 2012, Itau Unibanco reported operations in 20 countries, total assets of BRL 1 trillion (USD 514 billion), a gross loan portfolio of BRL 339 billion (USD 174 billion) total deposits of BRL 243 billion (USD 125 billion), return on equity (ROE) of 18.4 percent and return on assets (ROA) of 1.4 percent.

By Nicole Boyd, Research Associate

About Itau Unibanco
Itau Unibanco is a publicly quoted bank based in Sao Paulo, Brazil. The bank was formed by the merger of Brazilian banks Banco Itau and Unibanco, which occurred on November 4, 2008. Itau Unibanco operates in 20 countries and has approximately 97,000 employees as of December 2012. Itau Unibanco won the Financial Times’ (FT’s) and the International Finance Corporation’s (IFC’s) Award for Emerging Markets Sustainable Bank of the Year in 2009 and 2010, Sustainable Bank of the Year in 2011, and Sustainable Bank of the Year–Americas in 2012. As of December 2012, Itau Unibanco reported total assets of BRL 1 trillion (USD 514 billion), a gross loan portfolio of BRL 339 billion (USD 174 billion) total deposits of BRL 243 billion (USD 125 billion), return on equity (ROE) of 18.4 percent and return on assets (ROA) of 1.4 percent.

About Business Call to Action (BCtA)
Business Call to Action (BCtA) is a global initiative launched in 2008 that is aimed at reducing poverty through the private sector. Member companies commit to promote financial access and reduce poverty “through commercially-viable business ventures that engage low-income people as consumers, producers, suppliers, and distributors of goods and services.” The initiative is intended to meet the United Nations Millennium Development Goals by 2015 and involves the efforts of the Australian Agency for International Development (AusAID), the Dutch Ministry of Foreign Affairs, the Swedish International Development Cooperation Agency (SIDA), UK Department for International Development (DFID), US Agency for International Development (USAID), United Nations Development Programme (UNDP), the United Nations Global Compact, the Clinton Global Initiative and the International Business Leaders Forum.

Sources and Additional Resources:

CSR Wire. “Brazil’s Itaú Bank to Expand Access to Loans for Low-Income Entrepreneurs,” http://www.csrwire.com/press_releases/35280-Brazil-s-Ita-Bank-to-Expand-Access-to-Loans-for-Low-Income-Entrepreneurs

MicroCapital. April 4, 2011, “MICROCAPITAL BRIEF: Barclays Joins ‘Business Call to Action’ Initiative, Commits to Linking 60,000 Members of African ‘Banking on Change’ Village Savings and Loan Associations to Traditional Bank Accounts,” https://www.microcapital.org/microcapital-brief-barclays-joins-‘business-call-to-action’-initiative-commits-to-linking-60000-members-of-african-‘banking-on-change’-village-savings-and-loan-assoc/

MicroCapital. June 4, 2010, “MICROCAPITAL BRIEF: Brazilian Microfinance Sector Poised For Growth Following Annual 22 Percent Increase In Microborrowers since President da Silva’s Election,” https://www.microcapital.org/microcapital-brief-brazilian-microfinance-sector-poised-for-growth-following-annual-22-percent-increase-in-microborrowers-since-president-da-silvas-election/

MicroCapital Universe Profile: Itau Unibanco https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Itau+Unibanco

MicroCapital Universe Profile: Business Call to Action (BCtA) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Business+Call+to+Action+%28BCtA%29

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