Itaú Unibanco had a 34.8% increase in third-quarter profit compared to the previous year, driven by loans to individuals and lower provisions.
Recurring net income, which excludes extraordinary items, was R$6.779 billion, in line with the estimate compiled by Refinitiv of R$6.735 billion, and compared to R$5.03 billion a year earlier.
The return on equity, a profitability indicator, was 19.7% in the quarter, against 15.7% in the same stage of 2020.
In a statement, Chief Financial Officer Alexsandro Broedel said the bank is on track to deliver solid performance in 2021 and continued growth in 2022.
Itaú’s credit portfolio grew 5.9% in the quarter and 13.6% in 12 months, driven by vehicle financing, credit cards and mortgage loans.
The rapid expansion of retail lending, together with greater commercial gains, resulted in a 15.3% increase in net interest income, to R$19.5 billion.
The default rate for 90-day loans rose from 2.3% to 2.6% in the sequential comparison. Even so, provisions for bad debts fell 17.2% year-on-year, to R$5.232 billion.
Fee income grew 6.4% year-on-year, even with the result of brokerage XP, once incorporated into the fee income line, no longer consolidated in Itaú.
Despite a collective bargaining agreement that guaranteed bank employees in Brazil an 11% increase in September, Itaú’s operating expenses rose just 1% from the previous year, well below the double-digit inflation rate.
Reference: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
