Itaú Unibanco (ITUB4) Q4 2024 earnings summary

Executive summary

• Recurring managerial result for 2024 reached R$41.4 billion, up 16.2% year-over-year, with ROE at 22.2% and record recognition in culture, ESG, and innovation.

• Credit portfolio grew 15.5% to R$1.4 trillion, with strong growth in all segments, especially corporate loans (+21.0%) and very small, small, and middle market loans (+17.7%).

• Major investments in technology and digital transformation, with 470+ data scientists, 1,300+ AI models, and over 6 million clients migrated to the new platform.

• Employee and client satisfaction reached new highs, with Employee NPS at 83 and 75% of business areas at all-time highs.

• Commissions and fees rose 7.2%, driven by card-issuing, asset management, and investment banking.

Financial highlights

• Operating revenues for 2024 were R$169.0 billion, up 7.8% year-over-year.

• Net income for 2024 was R$41.4 billion, up 18.2% year-over-year; net income per share was R$4.11, up 20.7%.

• Financial margin with clients reached R$108.0 billion, up 7.1% year-over-year.

• Cost of credit for 2024 was R$34.5 billion, down 6.6% from 2023.

• Efficiency ratio improved to 39.5% consolidated; core costs grew 4.4% versus IPCA inflation of 4.8%.

Outlook and guidance

• 2025 guidance: credit portfolio growth between 4.5% and 8.5%; financial margin with clients expected to grow 7.5% to 11.5%.

• Cost of credit projected between R$34.5 billion and R$38.5 billion; non-interest expenses to grow 5.5%-8.5%.

• Effective tax rate expected between 27% and 29%.

• Macroeconomic assumptions: GDP growth 2.2%, year-end Selic 15.75%, inflation 5.8%, unemployment 6.8%, FX at BRL 5.90.