Latin American Banks See Improving Trends

As the trends among the Latin American Banks continues to improve, Goldman Sachs outlines a few summaries involving the progress: Brazil banks maintain a positive path, due to strong GDP growth and high interest rates, and are expected to have loans growth continue from the 1Q reports. Top picks among these banks are Bradesco

, Itau Unibanco

, Itausa, a Brazilian based investment holding company, are listed as "buy" by Goldman, while remaining "neutral" on Banco do Brasil

and Santander Brasil

. Banorte

is seeing slow recovery, and loans are anticipated to grow in Mexico while asset quality improves, according to Goldman. Goldman maintains its "neutral" rating. Bancolombia

is not expected to reflect the strong recovery of the Colombian economy in its 2Q results, especially in loan growth. Goldman maintains its "sell" rating, primarily based on valuation. Credicorp

is also expected to report loan growth in consumer and corporate sectors, with an improvement in credit quality anticipated. Chilean banks are expected to show only marginal impact as a result of the earthquake on loan growth coinciding with lower NPL rations, according to Goldman. However, Goldman maintains its "sell" ratings on both Chilean banks Banco de Chile

and Santander Chile

based on valuation.