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$10.7 billion ($1.93 billion) for the third quarter of 2024, which increased 18.1% year over year.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
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.
ITUB’s Revenues & Expenses Increase
Operating revenues were R$42.7 billion ($7.7 billion) in the reported quarter, up 8% year over year.
The managerial financial margin increased 6.4% year over year to R$28.5 billion ($5.13 billion). Also, commissions and fees rose 5% to R$11.2 billion ($2 billion).
Non-interest expenses totaled R$15.9 billion ($2.9 billion), up 8.2% year over year.
In the third quarter, the efficiency ratio was 40.2%, down from 40% reported in the year-earlier quarter. A decrease in this ratio indicates increased profitability.
ITUB’s Credit Quality Improves
The cost of credit charges declined 11% on a year-over-year basis to R$8.2 billion ($1.5 billion).
The non-performing loan ratio (loan transactions overdue more than 90 days) was 2.6% in the third quarter, down from the prior-year quarter’s 3%.
ITUB’s Balance Sheet Position Strong
As of Sept. 30, 2024, Itau Unibanco’s total assets rose 2.6% to R$3 trillion ($551.2 billion), up 2.6% from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$1.44 trillion ($264.6 billion), which increased marginally on a sequential basis.
As of the same date, ITUB’s credit portfolio, including private securities and financial guarantees provided, rose 1.9% to R$1.28 trillion ($235.2 billion) from the prior quarter.
ITUB’s Capital & Profitability Ratios Rise
As of Sept. 30, 2024, the Common Equity Tier 1 ratio was 13.7%, up from 13.1% as of Sept. 30, 2023.
Annualized recurring managerial return on average equity was 22.7%, up from 21.1% in the year-earlier quarter.
Our View on ITUB
Itau Unibanco’s third-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
UBS Group AG (UBS - Free Report) reported a third-quarter 2024 net profit attributable to shareholders of $1.42 billion against a net loss of 715 million in the prior-year quarter.
UBS’ results were driven by the strong performances of the Global Wealth Management, Asset Management and Investment Bank divisions. The decrease in operating expenses was another positive. However, an increase in credit loss expenses was a headwind.
Deutsche Bank (DB - Free Report) reported third-quarter 2024 earnings attributable to its shareholders of €1.5 billion ($1.6 billion), up 41.7% year over year.
Results were driven by solid growth in Investment Bank revenues and the partial release of Postbank-related litigation provisions. However, DB has increased its provision of credit loss forecast for 2024.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Itau Unibanco Q3 Earnings & Revenues Increase Y/Y, Expenses Rise
Itau Unibanco Holding S.A. (ITUB - Free Report) reported recurring managerial results of R$10.7 billion ($1.93 billion) for the third quarter of 2024, which increased 18.1% year over year.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
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.
ITUB’s Revenues & Expenses Increase
Operating revenues were R$42.7 billion ($7.7 billion) in the reported quarter, up 8% year over year.
The managerial financial margin increased 6.4% year over year to R$28.5 billion ($5.13 billion). Also, commissions and fees rose 5% to R$11.2 billion ($2 billion).
Non-interest expenses totaled R$15.9 billion ($2.9 billion), up 8.2% year over year.
In the third quarter, the efficiency ratio was 40.2%, down from 40% reported in the year-earlier quarter. A decrease in this ratio indicates increased profitability.
ITUB’s Credit Quality Improves
The cost of credit charges declined 11% on a year-over-year basis to R$8.2 billion ($1.5 billion).
The non-performing loan ratio (loan transactions overdue more than 90 days) was 2.6% in the third quarter, down from the prior-year quarter’s 3%.
ITUB’s Balance Sheet Position Strong
As of Sept. 30, 2024, Itau Unibanco’s total assets rose 2.6% to R$3 trillion ($551.2 billion), up 2.6% from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$1.44 trillion ($264.6 billion), which increased marginally on a sequential basis.
As of the same date, ITUB’s credit portfolio, including private securities and financial guarantees provided, rose 1.9% to R$1.28 trillion ($235.2 billion) from the prior quarter.
ITUB’s Capital & Profitability Ratios Rise
As of Sept. 30, 2024, the Common Equity Tier 1 ratio was 13.7%, up from 13.1% as of Sept. 30, 2023.
Annualized recurring managerial return on average equity was 22.7%, up from 21.1% in the year-earlier quarter.
Our View on ITUB
Itau Unibanco’s third-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
UBS Group AG (UBS - Free Report) reported a third-quarter 2024 net profit attributable to shareholders of $1.42 billion against a net loss of 715 million in the prior-year quarter.
UBS’ results were driven by the strong performances of the Global Wealth Management, Asset Management and Investment Bank divisions. The decrease in operating expenses was another positive. However, an increase in credit loss expenses was a headwind.
Deutsche Bank (DB - Free Report) reported third-quarter 2024 earnings attributable to its shareholders of €1.5 billion ($1.6 billion), up 41.7% year over year.
Results were driven by solid growth in Investment Bank revenues and the partial release of Postbank-related litigation provisions. However, DB has increased its provision of credit loss forecast for 2024.