We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Itau Unibanco Holding S.A. (ITUB - Free Report) reported recurring managerial results of R$10.1 billion ($1.93 billion) for the second quarter of 2024, up 15.2% year over year.
Higher revenues and an increase in managerial financial margin supported the results. Rising total deposits and assets reflected a strong balance sheet position. However, an increase in non-interest expenses acted as a spoilsport.
Revenues & Expenses Increase
Operating revenues were R$41.8 billion ($8.01 billion) in the reported quarter, up 7.7% year over year.
The managerial financial margin increased 6.4% year over year to R$27.7 billion ($5.31 billion). Also, commissions and fees rose 9.4% to R$11.3 billion ($2.17 billion).
Non-interest expenses totaled R$15.1 billion ($2.9 billion), up 5.6% year over year.
In the second quarter, the efficiency ratio was 38.8%, down from 39.6% reported in the year-earlier quarter. A decrease in this ratio indicated increased profitability.
Credit Quality Improves
The cost of credit charges declined 6.7% on a year-over-year basis to R$8.8 billion ($1.7 billion).
The non-performing loan ratio (loan transactions overdue more than 90 days) was 2.7% in the second quarter, down from the prior-year quarter’s 3%.
Balance Sheet Position Strong
As of Jun 30, 2024, Itau Unibanco’s total assets rose 5.1% to R$2.9 trillion ($518.2 billion) from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$1.43 trillion ($250.2 billion), which increased 4.7% on a sequential basis.
As of Jun 30, 2024, ITUB’s credit portfolio, including private securities and financial guarantees provided, rose 8.9% to R$1.25 trillion ($223.3 billion) year over year.
Capital & Profitability Ratios Rise
As of Jun 30, 2024, the Common Equity Tier 1 ratio was 13.1%, up from 12.2% as of Jun 30, 2023.
Annualized recurring managerial return on average equity was 22.4% in the second quarter, up from 20.9% reported in the year-earlier quarter.
Our Viewpoint
Itau Unibanco’s second-quarter results were driven by a rise in managerial financial margin. The declining efficiency ratio indicates a rise in profitability, which is a positive factor. Growth in commissions and fees, results from insurance operations and efforts to have a healthy credit portfolio are positives.
Itau Unibanco Holding S.A. Price, Consensus and EPS Surprise
Deutsche Bank (DB - Free Report) reported a second-quarter 2024 loss attributable to its shareholders of €143 million ($155.6 million) against the year-ago reported profit attributable to shareholders of €763 million ($830.7 million).
DB’s results were negatively impacted by an increase in expenses and a rise in provision for credit losses. This led investors to turn bearish on the stock, resulting in a decline of nearly 6%. However, an increase in commissions and fee income and stable net interest income acted as a tailwind.
Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) reported profits attributable to owners of the parent for first-quarter fiscal 2025 (ended Jun 30) of ¥678.1 billion ($4.35 billion), up 21.8% year over year.
MUFG’s results were supported by increased gross profits, a rise in net interest income, and net fees and commissions. Also, a rise in loan and deposit balances was positive. While a decline in net trading profit and a rise in credit costs acted as a spoilsport.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Itau Unibanco (ITUB) Q2 Earnings & Revenues Increase Y/Y
Itau Unibanco Holding S.A. (ITUB - Free Report) reported recurring managerial results of R$10.1 billion ($1.93 billion) for the second quarter of 2024, up 15.2% year over year.
Higher revenues and an increase in managerial financial margin supported the results. Rising total deposits and assets reflected a strong balance sheet position. However, an increase in non-interest expenses acted as a spoilsport.
Revenues & Expenses Increase
Operating revenues were R$41.8 billion ($8.01 billion) in the reported quarter, up 7.7% year over year.
The managerial financial margin increased 6.4% year over year to R$27.7 billion ($5.31 billion). Also, commissions and fees rose 9.4% to R$11.3 billion ($2.17 billion).
Non-interest expenses totaled R$15.1 billion ($2.9 billion), up 5.6% year over year.
In the second quarter, the efficiency ratio was 38.8%, down from 39.6% reported in the year-earlier quarter. A decrease in this ratio indicated increased profitability.
Credit Quality Improves
The cost of credit charges declined 6.7% on a year-over-year basis to R$8.8 billion ($1.7 billion).
The non-performing loan ratio (loan transactions overdue more than 90 days) was 2.7% in the second quarter, down from the prior-year quarter’s 3%.
Balance Sheet Position Strong
As of Jun 30, 2024, Itau Unibanco’s total assets rose 5.1% to R$2.9 trillion ($518.2 billion) from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$1.43 trillion ($250.2 billion), which increased 4.7% on a sequential basis.
As of Jun 30, 2024, ITUB’s credit portfolio, including private securities and financial guarantees provided, rose 8.9% to R$1.25 trillion ($223.3 billion) year over year.
Capital & Profitability Ratios Rise
As of Jun 30, 2024, the Common Equity Tier 1 ratio was 13.1%, up from 12.2% as of Jun 30, 2023.
Annualized recurring managerial return on average equity was 22.4% in the second quarter, up from 20.9% reported in the year-earlier quarter.
Our Viewpoint
Itau Unibanco’s second-quarter results were driven by a rise in managerial financial margin. The declining efficiency ratio indicates a rise in profitability, which is a positive factor. Growth in commissions and fees, results from insurance operations and efforts to have a healthy credit portfolio are positives.
Itau Unibanco Holding S.A. Price, Consensus and EPS Surprise
Itau Unibanco Holding S.A. price-consensus-eps-surprise-chart | Itau Unibanco Holding S.A. Quote
Itau Unibanco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Foreign Banks
Deutsche Bank (DB - Free Report) reported a second-quarter 2024 loss attributable to its shareholders of €143 million ($155.6 million) against the year-ago reported profit attributable to shareholders of €763 million ($830.7 million).
DB’s results were negatively impacted by an increase in expenses and a rise in provision for credit losses. This led investors to turn bearish on the stock, resulting in a decline of nearly 6%. However, an increase in commissions and fee income and stable net interest income acted as a tailwind.
Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) reported profits attributable to owners of the parent for first-quarter fiscal 2025 (ended Jun 30) of ¥678.1 billion ($4.35 billion), up 21.8% year over year.
MUFG’s results were supported by increased gross profits, a rise in net interest income, and net fees and commissions. Also, a rise in loan and deposit balances was positive. While a decline in net trading profit and a rise in credit costs acted as a spoilsport.