Itaú Unibanco closed the first quarter of this year with managerial net income of R$ 7.361 billion, up 15% over the same period last year.
The increase in the margin with customers in the face of a more profitable product mix led the largest bank in Latin America to have greater gains in the annual comparison. In the quarterly comparison, Itaú’s profit rose 2.8%.
The conglomerate’s loan portfolio, which includes the Brazilian operation and those of other Latin American countries, ended the period at R$1.032 trillion, an increase of 13.9% in 12 months, and a more moderate expansion of 0.5 % in three.
The annual result was driven by operations for individuals, which jumped 32.9%.
The performance of the portfolio was reflected in Itaú’s managerial financial margin, which reflects the bank’s gain from interest-earning operations and reached R$21.047 billion in the first quarter of the year, an increase of 12.9% on an annual basis in view of the increase in profitability.
The margin with customers, benefited by the movement, was R$ 20.039 billion, an increase of 23.9% in annual terms.
Itaú attributes the margin growth to the higher volume of credit and the product mix, in which overdraft, installment plans and credit cards, the bank’s most profitable operations, gained space.
On the other hand, there were lower spreads on credit products for individuals, an effect partially offset by a positive impact of the increase in the Selic rate on the liability margin.
The average customer margin rate, a measure of the spread, was 7.9%, 0.6 percentage point higher than the figure recorded in the same period last year. Compared to the fourth quarter, it increased by 0.2 pp
The margin with the market, which reflects the result of the bank’s treasury, fell by 59.1% in one year and 22.5% in one quarter, to R$ 1.007 billion.
“The 22.5% reduction in the financial margin with the market in the quarter was due to lower gains from the hedging strategy for investments abroad and capital, partially offset by higher gains in asset and liability management of the balance sheet in Brazil ”, says Itaú.
Revenues from services, in turn, rose 7.2% in one year, to R$9.772 billion, driven by the credit card.
The bank’s president, Milton Maluhy Filho, stated that Itaú continues to undergo cultural and digital transformation, but without failing to deliver consistent results.
“In addition to all internal efforts to support the evolution of our business, we intensified investments in acquisitions and
partnerships, which will allow us to make this transformation at the speed that our customers demand and the current world demands”, he said, in a press release.
In the first quarter, Itaú closed the purchase of part of the capital of the digital brokerage Ideal, valued in the operation at R$ 1.3 billion.
In April, after the end of the quarter, he announced a billion-dollar investment in the techfin arm of Totvs, of which he will become a partner.
In the quarter ended in March, Itaú’s total assets reached R$ 2.183 trillion, an increase of 2.6% in annual terms, and of 0.8% in a quarter. According to the bank, the growth of the loan portfolio boosted the annual advance.
Itaú’s shareholders’ equity, in turn, was R$144.393 billion, up 2.9% in 12 months. As a result, the institution’s return on equity (ROE) was 20.4%, an increase of 1.9 percentage point in one year and 0.2 pp in three months.
default
Delinquency measured by delays of more than 90 days reached 2.6% of Itaú Unibanco’s loan portfolio at the end of the first quarter of this year, according to a earnings release published this Monday (9).
The number represents a 0.3 percentage point increase compared to the same period last year, and is 0.1 pp higher than that recorded in the fourth quarter of 2021.
Itaú says that the increase was driven by the portfolio of individuals in the Brazilian operation, which is the bank’s largest, and that it is related to the rollover of credits that were in the range of delays between 15 and 90 days in the previous quarter.
The growth of the portfolio also influenced the increase.
In the portfolio of individuals in Brazil, arrears were 4.1%, an increase of 0.2 pp compared to March 2021. In the portfolio of large companies, delinquency was 0.5%, up 0.1 pp in one year.
In three months, arrears increased by 0.3 pp in the Individuals portfolio, and remained stable among large companies.
In consolidated terms, the delinquency of Itaú’s portfolio remains below pre-pandemic levels. In March 2019, it reached 3%, in the criterion of delays above 90 days.
Source: CNN Brasil
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