Itaú earns BRL 8.4 billion in the 1st quarter, in line with expectations – 05/08/2023 – Market

Itaú recorded recurring net income of BRL 8.4 billion in the first quarter of 2023, which corresponds to a growth of 14.6% compared to the same period of the previous year, according to the balance sheet released this Monday (8) .

The number came in line with the expectations of market analysts. In comparison with the fourth quarter of 2022, the result represented an advance of 10%.

According to the bank, among the factors that most influenced the results are the increase in revenue from the provision of services and insurance and the growth in the financial margin with customers (revenues from the financial intermediation of credit operations), driven by the positive effect of the growth of portfolio, associated with the gradual change in the product mix.

“Behind these numbers are our cultural and digital transformation, based on the daily exercise of listening to our customers to understand their needs and exceed their expectations”, said Milton Maluhy Filho, president of Itaú, in a note.

The bank’s loan portfolio ended March at R$ 1.153 trillion, an increase of 11.7% on an annual basis and 1% on a quarterly basis.

The individual loan portfolio totaled R$402.8 billion, up 16% year-on-year and 0.9% at the margin. The highlights, in the annual comparison, were the 11.4% growth in credit card; 24.2% in personal loans; 21.3% in real estate loans; and 17.1% in payroll loans.

The default rate, in turn, reached 2.9% at the end of the quarter, against 2.6% in the same period of 2022, having remained stable in relation to December.

Among individuals, the late rate reached 4.9% in March, compared to 4.1% in the same month of 2022, but stable compared to the end of last year.

“The stability of the default rate over 90 days remained at 2.9%, in a loan portfolio of R$ 1.2 trillion, demonstrating our quality in risk management”, said Alexsandro Broedel, Itaú’s CFO. .

Revenues from services and insurance grew 6.7% in the first quarter of 2023 compared to the same period of 2022, to R$ 12.4 billion, driven by the increase in billing from cards, in addition to the growth in asset management revenues and the increase in consortium production.

The results presented by Itaú meant that the ROE (recurring return on annualized average equity), which indicates the profitability of the operation, reached 20.7%, compared to 20.4% in March of last year and 19.3% in the last quarter of 2022.

Analysts at Guide Investimentos assess that, in general terms, Itaú’s result was positive. “The bank is managing to follow a more rational portfolio growth, increasing exposure in less daring segments, which, in our view, is an assertive strategy in this more challenging scenario”, point out the Guide analysts.

X-RAY | ITAÚ UNIBANCO

Foundation: 2008, year of the merger of Banco Itaú and Unibanco
Net income in the 1st quarter of 2023: BRL 8.4 billion
Agencies: 4,173
Employees: 101,415
Mainly competitors: Bradesco, Santander, Banco do Brasil, Caixa Econômica Federal