Q2 2024 Itausa SA Earnings Call (English, Portuguese) Transcript
Key Points
- Itausa Investimentos ITAU SA (BSP:ITSA3) reported record results for the first semester of 2024, with a net recurring income of BRL7.2 billion, marking a 30% growth compared to the previous year.
- The company achieved a return on equity (ROI) of 17.5%, reflecting a 2.6-percentage-point increase from the previous semester.
- Itausa's shares outperformed the Ibovespa index, with a 70% increase over the past 12 months compared to the index's 5% growth.
- The company successfully reduced its financial expenses by 65% through strategic liability management, including debt prepayment and refinancing.
- Itausa's portfolio companies, such as Itaú Unibanco and CCR, reported strong operational performances, contributing significantly to the holding's overall results.
- The high interest rate environment in Brazil, currently over 10.5%, poses challenges for growth and impacts leveraged companies within Itausa's portfolio.
- Despite strong results, Itausa's shares are still traded at a significant discount, which the management considers exaggerated.
- The fiscal deficit in Brazil continues to grow, necessitating high interest rates that hinder economic growth and investment opportunities.
- Itausa faces fiscal inefficiencies related to PIS/COFINS taxes, which result in an annual expense of over BRL500 million.
- The challenging geopolitical and economic environment, both domestically and internationally, adds uncertainty to Itausa's future growth prospects.
Good morning, everyone. Welcome to [results and forecasts]. I'm Priscila Grecco, I'm the CFO of Itaúsa and it's a great pleasure to be with you, to share the results of the holding -- financial results of the holding of the first quarter -- first semester of 2024 and to bring the prospectus for the next semester. And here with the studio, we have Alfredo Setubal, who's the CEO and Investor Relations Director of Itaúsa SA.
Good morning. Alfredo. Welcome.
Thank you. Thank you to our investors.
So let's continue. We have a lot of content for us, today. Before going over the agenda, I would like to let you know that we have with a simultaneous
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