Q2 2024 Itau Unibanco Holding SA Earnings Call (English, Portuguese) Transcript
Key Points
- Itau Unibanco Holding SA (ITUB) achieved double-digit quarterly managerial recurring results of BRL10.1 billion, marking a 3.1% growth over the first quarter of 2024.
- The consolidated return on equity (ROE) was 22.4%, with a quarter-on-quarter growth of 50 basis points, and in Brazil, the ROE was 23.6%, a growth of 100 basis points.
- The loan portfolio reached BRL1.3 trillion, with sound growth across various segments, including a 2.3% increase in personal loans and a 3.1% increase in vehicle loans.
- Commission fees and insurance recorded high-quality growth of 5%, contributing positively to the overall financial performance.
- The bank's capital base continued to grow organically, ending the quarter with a Common Equity Tier I ratio of 13.1%, a growth of 10 basis points.
- The credit card portfolio remained stable, indicating a need for further growth to offset previous declines.
- Noninterest expenses grew by 4.7% quarter over quarter in Brazil, partly due to higher investments and the accounting effect of vacations.
- The cost of credit remained flat despite the growing loan portfolio, indicating potential challenges in managing credit costs.
- The market NII had a slightly weaker quarter in Latin America, impacted by FX fluctuations.
- The efficiency ratio, although improving, still reflects the need for better cost management to sustain long-term profitability.
Hello. Good morning, everyone, and thank you for joining this video conference to talk about our earnings for the second quarter of 2024. As usual, we are broadcasting directly from our office in Avenida Faria Lima in Sao Paulo. Today's event will be divided into two parts. First, Milton will take you through our performance in earnings for the second quarter of 2024. And then we will have a Q&A session during which Investors and Analysts can ask questions and get into the details with us.
Before we get started, I'd like to give you a few pointers to help you make the most of today's meeting. (Operator Instructions) The presentation we will be making today is available for download on the Web site screen and as usual on our Investor Relations website.
I will now hand over the floor to Milton, who will begin the earnings presentation, and then I'll be back to moderate the Q&A session.
Milton, the floor is yours.
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