Itaú Unibanco (ITUB4) Q3 2024 earnings summary

Executive summary

• CET1 capital ratio reached 13.7%, reflecting strong capital accumulation and value creation for shareholders.

• Achieved net income of R$31.0 billion for 9M24, up 24.4% year-over-year, with recurring result of R$30.5 billion, up 17.9%.

• Recurring managerial result reached BRL 10.7 billion in 3Q24, up 6.0% from 2Q24 and 18.1% year-over-year.

• Surpassed the BRL 400 billion sustainable finance goal 1.5 years ahead of schedule; new target set at BRL 1 trillion by 2030.

• Maintained most guidance metrics, with an adjustment to credit portfolio growth due to FX volatility.

Financial highlights

• Operating revenues grew 8.4% to R$130.0 billion for 9M24.

• Robust results with incremental performance in the fourth quarter and a strong capital base.

• Extraordinary dividend expected to be higher than last year, with nominally larger payout.

• Financial margin with clients rose 4.5% sequentially and 7.4% year-over-year to BRL 27.5 billion.

• Cost of credit decreased 6.4% from 2Q24 and 11.0% year-over-year to BRL 8.2 billion.

Outlook and guidance

• Credit portfolio growth guidance adjusted to 9.5%-12.5% due to FX effects; previously the top of the range is now the bottom.

• Financial margin with clients expected to grow 4.5% to 7.5%; cost of credit projected between BRL 33.5 and 36.5 billion.

• Non-interest expenses to grow 4.0% to 7.0% (Brazil core expenses below inflation).

• Expectation of continued quality growth across all segments, with cautious risk appetite and focus on sustainable returns.

• Guidance for 2025 to be provided at the beginning of next year, considering macroeconomic variables.