Itaú (ITUB4) has shown that it knows how to navigate the Brazil risk like few others, say analysts – Money Times

Itaú Unibanco
The strong numbers also prompted the bank to revise its guidance for the year (Image: Rafael Borges / Money Times

O Itau (ITUB4) released eye-popping resultswith profit above expectations, says XP Investimentos in a report published this Monday (08).

According to analysts Renan Manda and Matheus Guimarães, the figures for the Itau were driven by a stronger-than-expected net interest income (NII) (up 20% and 8% higher than expected XP).

For the pair, despite the slight increase in delinquency to 2.7% (3% in Brazil), the index is healthy.

The strong numbers also prompted the bank to revise its guidance for the year.

The bank revised several projections, starting to predict that its total loan portfolio will grow from 15.5% to 17.5% in 2022, up from a previous forecast of 9% to 12%.

Consequently, the estimated increase in the financial margin with customers also changed, from the range of 20.5% to 23.5% to 25% to 27%.

In addition, the bank also forecast that its fee and service revenue will now grow by 7% to 9% this year, versus a previous forecast of 3.5% to 6.5%

At the other end, the expectation for the cost of credit also changed, from 25 to 29 billion reais, to the range of 28 to 31 billion reais.

According to XPthe action of Itau should react well to the result.

Itaú proves its resilience

THE Activate Investments classified the bank’s results as strong, with emphasis on the growth in the margin with customers and revenue from services.

“In addition, the bank showed an improvement in its efficiency, reaching a quarterly rate of 40.8%, a result of the company’s discipline with its operating expenses”, he adds.

For analysts, the maintenance of delinquency at controlled rates was another great piece of data for the company.

The brokerage says that even with the macroeconomic scenario deteriorating, the company presented an index of 2.7%.

“The result of Itau in the quarter, it showed the company’s expertise in navigating more adverse scenarios, where the sector begins to suffer from the advance of delinquency and the company continues at a strong pace of credit origination without causing major worsening in its indexes. In addition, the bank continues to gain operational efficiency with the control of expenses together with the increase in service revenues”, he points out.

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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