Here is a chart of Bank America(BAC) and Wells Fargo (WFC) vs. Itauunibanco (ITUB) and Bank of Colombia (CIB):

usbanks

US banks rose with the US Dollar while Latin banks fell

then they all crashed from last summer to early 2016, the Latin Banks bottomed first and bounced up bigger as dollar fell back a bit.

The last 3 weeks price action seems to indicate that all US, Eurozone banks are in a new low interest rate trap, while Latin banks enjoy high margins and high ROE, and their stocks held up.

Banco Bradesco (BBD) is trading at PE=8, div. =3%

Itau-Unibanco (ITUB) is at PE=7, Div.=1%

BM&F (BVMF3) is at PE=6, div=6%

Banco do Brasil is at PB=0.8, PE=8, Div.=8%, with ROE=16% at end of 2015, loan growth of 6% in worst recession in Brazil’s history!

http://www.bb.com.br/docs/pub/siteEsp/ri/eng/dce/dwn/4Q15FinanStatLR.pdf

bdory

 

 

 

 

 

 

 

 

 

 

Banco Chile is at PE=12, Div.=5%

Banco Colombia is at PE=9, Div.=4%

US banks are generally at PE=8-11 and Div.=1-2%, not expensive but have little growth potential

Smaller  brazil banks are really, really cheap! Similar to smaller Nigerian banks.

 

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