Brazilian lender Itau reaffirms 2022 guidance as Q1 net income jumps
By Gabriel Araujo
SAO PAULO (Reuters) -Brazilian lender Itau Unibanco Holding SA reported on Monday that first-quarter recurring internet revenue rose 15% on a year-on-year foundation, pushed by increased credit score quantity as its mortgage ebook accelerated, and it reaffirmed its full-year steering.
Though analysts considered the outcomes as strong, Itau’s shares have been down 2.7% at 23.15 reais in morning buying and selling, whereas the broader Bovespa inventory index fell 1.8%.
The nation’s largest financial institution posted a quarterly recurring internet revenue of seven.36 billion reais ($1.45 billion), according to the 7.35 billion reais anticipated by analysts polled by Refinitiv.
Itau adopted within the footsteps of its peer, Banco BTG Pactual SA, which posted file quarterly internet revenue and income on Monday.
The underside line progress for Itau got here whilst loan-loss provisions jumped by 57.8% to six.998 billion reais, it stated in a securities submitting.
“Our first quarter outcomes present the consistency and sustainability of our efficiency even in a difficult situation,” Itau Chief Monetary Officer Alexsandro Broedel stated.
He added that Itau had all of the circumstances wanted to maintain an “extraordinarily strong steadiness sheet” in 2022.
Analysts at BTG Pactual stated it was a “clear quarter” for Itau and that the outcomes don’t change their view for the yr, with Itau and Banco do Brasil being their prime picks amongst large-cap Brazilian banks.
Information Investimentos analysts stated that Itau’s outcomes have been strong total, however famous that some key indicators such because the default ratio worsened amid a deteriorating macroeconomic situation.
Itau’s return on fairness, a gauge of profitability, was at 20.4% within the quarter – roughly flat from the 20.2% seen within the earlier three months.
The financial institution’s mortgage ebook rose 13.9% on a year-on-year foundation to 1.03 trillion reais, boosted by secured private loans akin to actual estate-related ones and bank cards, which grew about 40% every.
The lender expects its mortgage ebook to develop between 9% and 12% in 2022, whereas the monetary margin with shoppers is seen between 20.5% and 23.5%. Price of credit score was estimated at 25 billion to 29 billion reais.
($1 = 5.0776 reais)
(Reporting by Gabriel Araujo, Modifying by Louise Heavens, Toby Chopra, Emelia Sithole-Matarise and Paul Simao)
