- Itau’s recurring net income for Q2 reached R$11.51 billion, showing a 14% increase compared to the previous year and surpassing the estimated R$11.38 billion.
- Net interest income was R$31.18 billion, a 13% rise year-over-year, exceeding the estimated R$30.59 billion.
- Loans increased by 7.7% year-over-year to a total of R$1.39 trillion.
- The non-performing loan (NPL) ratio stands at 1.9%.
- Return on average equity improved to 23.3% from the previous year’s 22.4%.
- Total assets amount to R$2.90 trillion.
- NPL formation was R$9.44 billion, decreasing by 7.2% year-over-year.
- The total cost of credit decreased by 3.2% to R$9.09 billion.
- NPL formation as a percentage of the loan portfolio improved to 0.7% from 1.1% year-over-year.
- The Tier 1 ratio is at 14.6%.
- Fee and commission income reached R$11.34 billion.
- For the year, financial margin with clients is forecasted to grow between 11% and 14%.
- Total cost of credit is forecasted to remain between R$34.5 billion and R$38.5 billion.
- Loan growth is expected between 4.5% and 8.5%.
- Income from commissions, fees, and insurance operations is anticipated to grow between 4% and 7%.
- Non-interest expenses are predicted to increase between 5.5% and 8.5%.
- Financial margin with the market is forecasted to range from R$1 billion to R$3 billion.
- The investment community response includes 13 buy recommendations and 4 hold recommendations with no sells.
A look at Itau Unibanco Holding Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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 banking institution that provides various financial services, has received a mixed outlook based on the Smartkarma Smart Scores. While scoring well in Dividend, Growth, and Momentum factors with scores of 4 each, the company has a lower score in Value and Resilience at 2 and 3 respectively. This suggests that while Itau Unibanco Holding is performing well in terms of dividends, growth, and momentum, there may be some concerns regarding its value and resilience in the long term.
With a strong emphasis on dividends and growth, coupled with positive momentum, Itau Unibanco Holding appears well-positioned for potential growth and shareholder returns. However, investors should closely monitor the company’s value and resilience factors to ensure a balanced and informed investment decision.
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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