In This Article:
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Managerial Recurring Results: 10.7 billion rise, 6% growth quarter over quarter, 20% growth year over year.
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Return on Equity (ROE): Consolidated ROE at 22.7%, Brazil ROE at 23.8%.
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Common Equity Tier One Ratio: 13.7%, 60 basis points growth in the period.
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Loan Portfolio Growth: 1.9% quarter over quarter, nearly 10% year over year.
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Financial Margin with Clients: 4.5% growth quarter over quarter, 8.2% growth year over year.
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Individual Loan Segment Growth: 2.5% quarter over quarter.
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SME Portfolio Growth: 4.1% quarter over quarter.
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Risk-Adjusted NIM (Brazil): Expanded from 6.2% to 6.5%.
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Cost of Credit: Improved from 8.8 billion to 8.2 billion.
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Non-Interest Expenses Growth: 6.1% accumulated, 5.8% quarterly.
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Efficiency Ratio: 37.5% in Brazil, 39.1% consolidated.
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Capital Accumulation: Common equity tier one increased from 13.1% to 13.7%.
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Credit Portfolio Growth Guidance: Adjusted to 9.5% - 12.5% due to FX rate effects.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Itau Unibanco Holding SA (NYSE:ITUB) reported strong quarterly managerial recurring results of 10.7 billion reais, marking a 6% growth quarter over quarter and nearly 20% year over year.
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The company achieved a consolidated return on equity (ROE) of 22.7% and a ROE in Brazil of 23.8%, indicating robust profitability.
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The financial margin with clients grew by 4.5% quarter over quarter and 8.2% year over year, showcasing solid revenue generation capacity.
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The loan portfolio saw significant growth, with a 1.9% increase quarter over quarter and nearly 10% growth year over year.
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Itau Unibanco Holding SA (NYSE:ITUB) surpassed its sustainable finance goal of 400 billion reais a year and a half early, setting a new target of 1 trillion reais by 2030.
Negative Points
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The efficiency ratio worsened from 45% to 47%, indicating a need for structural changes to improve operational efficiency.
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The cost of credit, although improved, still poses a challenge, with a nominal cost of 8.2 billion reais this quarter.
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The bank's coverage ratio fell in the large corporate segment due to specific provisioning adjustments.
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There is a potential impact from exchange rate volatility, which necessitated an adjustment in the guidance for credit portfolio growth.
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The acquiring business showed a deceleration in growth, with a total payment volume (TPV) increase of only 4% year over year, the lowest since 2020.
Q & A Highlights
Q: Can we expect an extraordinary dividend to bring the capital index closer to the internal level of 12.5% in the last quarter? A: Milton Maluhy Filho, CEO, explained that the bank has a larger capital base and fewer regulatory uncertainties than last year. He expects the extraordinary dividend to be higher than last year's, with the bank maintaining a well-capitalized position. The decision will be finalized at the beginning of the year, with more clarity on projections.