Itau Unibanco Holding SA (ADR) (NYSE:ITUB) Inaugurates New Data Center To Counter Economic Slowdown

Despite its new efforts, Itau Unibanco Holding SA (ADR) (NYSE:ITUB) traded down in the market’s previous trading session. Brazil’s largest bank by market value announced a new data center that aim for higher efficiency and lower costs. The bank said that the new center will increase its ability 25 fold to handle transactions and to curb costs.

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Manage more transactions

Itau Unibanco Holding SA (ADR) (NYSE:ITUB)’s data center is a part of the bank’s efforts to advance in operational efficiency through making technological investments. The data center costs the bank 3.3 billion reais against the 11.1 billion reais set aside by it towards the stated investments. The bank’s CEO Roberto Setubal is actively involved in introducing additional products and services while containing costs so as to steer through the economic slowdown. The facility, which is spread across 151,000 square meters, will help the bank manage the ever-growing demand of financial transactions through the year 2050.

Cost control

Itau Unibanco Holding SA (ADR) (NYSE:ITUB) managed 31 billion worth of transactions last year, and the new facility will take its processing ability to 35 billion this year. It is Setubal’s systematic efforts and emphasis on efficiency and profitability that has helped Itau Unibanco Holding SA (ADR) (NYSE:ITUB) to outshine its peers each quarter since the last two years. The announcement of the new facility marks the bank’s effort to keep its sales and general and administrative expenses below the annual rate of inflation during the ensuing years.

Meanwhile, it is said that the bank’s new data center will bring impact on its earnings and expenses only by the middle of next year. The center has kept the bank from revising its operating expense estimates, which it projects to come in between 2-6% in the current year. However, the market did not react happily to the bank’s decision as its stock was down by more than 3.50% to $10.39 during the last session.

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John is a special projects and general assignment reporter, noted for breaking several exclusive stories.

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