Itaú Unibanco (ITUB4) Q2 2024 earnings summary

Executive summary

• Recurring managerial net income reached R$10.1 billion in 2Q24, up 3.1% from 1Q24 and 15.2% year-over-year, with consolidated ROE at 22.4% and Brazil at 23.6%.

• Loan portfolio reached R$1.3 trillion, with strong growth across all segments, especially corporate and SMEs.

• Efficiency ratio improved to record lows for a second quarter, reaching 38.8% consolidated and 37.2% in Brazil.

• Operating revenues grew 3.6% sequentially and 7.7% year-over-year to R$41.8 billion.

• Non-performing loans (NPL 90) remained stable at 2.7% consolidated, the lowest in two years.

Financial highlights

• Net income of R$10.1 billion in 2Q24, up 3.1% sequentially and 15.2% year-over-year.

• Total credit portfolio rose 5.9% sequentially and 8.9% year-over-year to R$1,254.1 billion.

• Commissions and fees reached R$11.3 billion, up 4.4% sequentially and 9.4% year-over-year.

• Cost of credit remained stable at R$8.8 billion, down 6.7% year-over-year.

• Non-interest expenses rose 4.7% sequentially and 5.6% year-over-year to R$15.1 billion.

Outlook and guidance

• 2024 guidance reaffirmed: credit portfolio growth 6.5%-9.5%, financial margin with clients 4.5%-7.5%, cost of credit R$33.5-36.5 billion, commissions and fees growth 5.5%-8.5%.

• Core expenses expected to remain below inflation.

• Expectation of continued high-quality growth as de-risking process ends.

• Anticipates normalization in some outlier revenue lines (e.g., treasury, DCM) in coming quarters.