Itaúsa (ITSA4) Q3 2024 earnings summary

Executive summary

• Recurring net income reached R$3.9 billion in 3Q24, up 13% year-over-year, driven by strong results from all portfolio companies and improved financial results from liability management strategies.

• Portfolio market value rose to R$142.4 billion, a 30% increase from September 2023.

• Recurring ROE for 9M24 was 17.8%, up 2.0 p.p. year-over-year.

• A 5% stock bonus will be granted in December 2024 to shareholders as of December 2, 2024.

• Credit ratings reaffirmed at AAA (national scale) with stable outlook by S&P, Moody's, and Fitch.

Financial highlights

• 3Q24 recurring net income: R$3,883 million (+13% YoY); 9M24: R$11,101 million (+23% YoY).

• Net income (including non-recurring): R$3,819 million (-6.6% YoY); 9M24: R$11,056 million (+5%).

• Total assets reached R$111.9 billion at 3Q24, up from R$105.3 billion at year-end 2023.

• Net debt dropped to R$939 million, a 45.6% reduction from 3Q23.

• Dividend yield for the last 12 months was 6.6%, with R$7.6 billion distributed.

Outlook and guidance

• Management expects continued solid performance from portfolio companies, especially in financial and infrastructure sectors, with a focus on sustainable growth and efficient capital allocation.

• Ongoing focus on liability management, cost efficiency, and sustainable value creation.

• Macroeconomic uncertainties remain, but the company is confident in its liquidity and capital structure.