Rising interest rates and falling valuations are presenting consolidation opportunities in the LatAm fintech space. We have very recently written on a potential PagSeguro-Stone merger in the payments space (see HERE) and now run the numbers on Friday’s announced acquisition by Itau of a 35% stake in US broker deal Avenue.
We held a call with Inter’s CFO, Helena Lopes Caldeira, today. Focus was on 1/ the Credit loss assignment which dominated the Q4 earnings call yesterday (and isn’t such a huge issue we think, other than revealing a slight increase in credit card NPVs), 2/ Loan book growth outlook (slowing, inevitably), 3/ NPL prospects (pretty stable, perhaps slightly up), 4/ pricing/yields on lending (going up, particularly in SME) and 5/ the US product – coming soon.
Following our initiation on Inter (Buy, BIDI 11 TP: BRL43) at the end of last week (see Initiation: INTER – US Opportunity Knocks; More defensive in near term) we listened in to today’s Live Stream with CEO, Joao Vitor Menin, hosted by Valor (in Portuguese only). The CEO touched on international expansion plans, reiterating a 50% aspiration for contribution from Group (over a slightly shifting 4-6 year time span). He also commented on the timing of the US listing (a key catalyst for us) and the ...
We have pulled together latest BCB data through end-December showing Prepayment rates vs annualized SELIC. Spreads dipped again in the final month of the year, having ticked up in November, though in general terms price increases appear to have momentum (yields up 360bps in Q4) and have served to support spreads in Q4 after strong declines during the first nine months of the year.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
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