UPDATE 1-Bradesco considers international expansion of its digital banks

In this article:

(Adds CEO comments about international expansion)

By Carolina Mandl

SAO PAULO, Nov 10 (Reuters) - Brazilian lender Banco Bradesco SA is considering expanding its digital banking operations to new countries, such as the United States and Mexico, Chief Executive Octavio de Lazari told analysts on Wednesday.

"There are many opportunities on the table and we plan to explore them," he said.

Bradesco's potential move comes as financial startups such as Nubank are taking on brick-and-mortar banks in Brazil and expanding across Latin America with their asset-light operations.

Nubank, which is backed by Warren Buffett's Berkshire Hathaway Inc, is planning to list its shares in the United States next month at a valuation of roughly $50 billion, topping Bradesco's. It operates in Brazil, Mexico and Colombia.

Brazil's second biggest private-sector lender currently operates three different digital banks: Next, Digio and Bitz. Lazari said for now there is no plan to integrate them, as it could hurt future client acquisition.

Bradesco's CEO added the bank's credit card unit in Mexico is delivering a good performance and could be used as a platform for a digital bank.

In his presentation, Lazari also set a positive tone for Bradesco's outlook. He said the bank is likely to post growth in fee income above inflation next year, despite a more pessimistic economic outlook for Latin America's biggest economy.

Shares in Bradesco were up almost 6% in morning trading, following his remarks. Last week, Lazari had said the loan book should grow at double digits in 2022, while costs were likely to remain expanding below inflation.

(Reporting by Carolina Mandl; Editing by Alison Williams and Emelia Sithole-Matarise)

Advertisement