Itaú Unibanco (ITUB4) Q2 2024 earnings summary

Executive summary

• Recurring managerial net income reached R$10.1 billion in Q2 2024, up 3.1% from Q1 2024 and 15.2% year-over-year.

• ROE improved to 22.4% consolidated and 23.6% in Brazil, both increasing quarter-over-quarter.

• Loan portfolio reached R$1.3 trillion, with growth across individuals, SMEs, and large corporates.

• Efficiency ratio hit a record low for a second quarter at 38.8% consolidated and 37.2% in Brazil.

• Delinquency ratios remain below pre-pandemic levels, with NPL 90 at 2.7% consolidated and 3.0% in Brazil.

Financial highlights

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

• Operating revenues grew 3.6% from Q1 2024 and 7.7% year-over-year, totaling R$41.8 billion.

• Commissions, fees, and insurance revenues grew 5% in the quarter and 8.1% year-over-year.

• Cost of credit remained stable at R$8.8 billion, down 5.0% 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.

• De-risking process in individual loans nearing completion, with positive origination trends expected to accelerate.

• Corporate loan growth expected to moderate but remain healthy.