Itaú Unibanco (ITUB4) Q3 2024 earnings summary

Executive summary

• Recurring managerial result reached BRL 10.7 billion in 3Q24, up 6.0% from 2Q24 and 18.1% year-over-year; 9M24 result was BRL 30.5 billion, up 16.4% from 9M23.

• Recurring ROE was 22.7% consolidated and 23.8% in Brazil, both increasing from previous periods.

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

• Total assets surpassed BRL 3 trillion, up 2.6% sequentially and 12.3% 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.

Financial highlights

• Operating revenues for 3Q24 were BRL 42.7 billion, up 2.1% from 2Q24 and 8.0% year-over-year.

• Cost of credit decreased 6.4% from 2Q24 and 11.0% year-over-year, aided by a BRL 500 million positive impact from a specific corporate client.

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

• Efficiency ratio in Brazil improved to 37.7%, reflecting ongoing cost discipline and digital transformation.

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

Outlook and guidance

• 2024 guidance maintained: credit portfolio growth 6.5–9.5%, with a reviewed range of 9.5% to 12.5% on a comparable basis due to FX effects.

• 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).

• Effective tax rate guidance between 29.5% and 31.5%.

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