• Itau’s recurring net income in the first quarter met expectations, totalling R$9.77 billion, which is a 16% increase year on year.
• Itau’s net interest income was R$26.88 billion, marking an 8.9% increase compared to the previous year.
• The bank’s loans amounted to R$1.18 trillion, showing a 2.8% increase when compared to the same period last year.
• The non-performing loans (NPL) ratio was 2.7%, slightly lower than the estimate of 2.83% and down from 2.9% year on year.
• The bank achieved a return on average equity of 21.9%, which is higher than the 20.7% return attained in the same period last year.
• Total assets for Itau were R$2.79 trillion, marking a 9.5% increase from the previous year.
• The formation of new NPL was R$9.04 billion, which is a decrease by 1.1% from the prior year.
• Total cost of credit was negative at -R$8.79 billion but showed a 3.2% increase year on year.
• New NPLs formed made up 1% of the loan portfolio, unchanged from the previous year.
• The Tier 1 ratio was 14.5%, which is higher than the 13.5% noted last year.
• Fee and commission income for the bank was R$10.85 billion, marking a 4.9% increase when compared with the previous year.
• Itau kept its projections for 2024 unchanged.
• The bank was given a positive investment recommendation, with no sell recommendations, three hold recommendations and 13 buy recommendations.
A look at Itau Unibanco Holding Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Itau Unibanco Holding S.A., a leading banking institution, has received a positive long-term outlook based on its Smartkarma Smart Scores. With a solid score in Growth and Momentum, the company is positioned for future expansion and market performance. The company’s focus on value and dividends, though not as high, signifies stability and shareholder returns. However, Itau Unibanco Holding faces challenges in terms of resilience, indicating a need to strengthen its ability to withstand economic fluctuations. Overall, the company’s scores indicate a promising future trajectory in the industry.
Itau Unibanco Holding S.A. is a prominent player in the banking sector, offering a wide range of financial services including consumer loans, insurance, and securities brokerage. The company’s Smartkarma Smart Scores highlight its strengths in growth potential and market momentum, suggesting a positive outlook for investors. While there are areas for improvement in terms of resilience, the company’s overall profile reflects a well-rounded approach to banking operations. Investors may see Itau Unibanco Holding as a promising opportunity for long-term growth and value creation.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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