Alfredo Setubal: ‘We will resume Italy’s historic levels of dividend payments’

Itissa (ITSA4) intends to return to the holding company’s historic dividend payment levels in the coming years. This statement was made by Alfredo Setubal, CEO of the company, who, in an interview with InfomoneyTalk about the active management strategy and diversification of the corporate portfolio.

“We have as a practice, it’s not a written policy, it’s not something written in stone, we always distribute at least 100% of the profits we get from Itaú Unibanco [ITUB4]🇧🇷 In 2017 and 2018, the bank paid very high dividends. It was highly capitalised, the economy was growing strongly and so the need for capital within the bank was less. “There was a very large distribution and this has been passed on to Itisa shareholders,” Setubal said.

“Right now, we have lower dividends and less dividends paid to our shareholders. But that’s for good reason: Our companies are growing. The bank has been generating capital, but its credit portfolio, which is the main demand for capital, has grown significantly. So, it’s been paying Lower profits. Other companies are also in the process of deleveraging. Itessa is in the valley of the dividend. He added that over the next few years, we believe we will return to Itaesa’s historical dividend payment levels, which have always been in the 35% to 40% range of its earnings.”

Setubal co inside resultswhich is the project in which Infomoney Interviews with CEOs and directors of important public companies, in Brazil or abroad. The executives talk about the Q3 2022 balance sheet and outlook. To follow all the interviews in the series, Subscribe to the InfoMoney YouTube channel🇧🇷

The CEO spoke about how the increase in interest rates and the scenario of high inflation will affect the companies in Itasa’s portfolio, especially those related to consumption, such as Dexco (formerly Duratex) and Alpargatas (owner of brands such as Havaianas). For the CEO, the biggest Brazilian risk for 2023 is finances.

Brazil is a fragile country economically and socially. To the extent that we have a lot of expenses over revenues, which is exactly the financial problem, that’s reflected in inflation over time. no escape. This also results in an increase in public debt. Therefore, depending on the degree of increase in the level of spending that the new government proposes or does, while maintaining what was approved by Congress, we see inflation as a big problem, which may eventually prompt the central bank to raise interest rates a little more. interest rates.

It is a challenging scenario. I think the financial problem is serious. We can’t manipulate that. We must be very careful, and be careful that the public debt does not exceed its growth. Brazil’s public debt is about 78%-80% of GDP. If we look at this indicator, it is not very high when compared to developed countries, but very high when compared to developing countries. He added that Brazil has many weaknesses, which can be revealed in a very strong way, with great social costs, due to the possible increase in inflation, if things are not controlled.

Setubal also spoke about Itaisa’s expectations of the CCR acquisition and the risks he sees in doing business in the highways and sanitation sectors, which depend on the overall policies of the concessions. The CEO also commented on the divestiture of XP Inc. And how the different companies are managed in partnership with other Itisa partners, in addition to the importance that the company attaches to the issue of ESG (environmental, social and governance) when choosing its subsidiaries. Watch the full interview above, or click here🇧🇷

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