2023-05-10 19:00:46
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The month of May started with good results for Itaú Unibanco (ITUB4). The company recorded managerial net income of R$ 8.435 billion in the first quarter of this year, according to the balance sheet released last Monday (8). The result is 14.6% higher compared to the same period of 2022, and compared to the fourth quarter also last year, the number grew by 10%.
The bank noted growth in margins, service revenues and insurance results in relation to the same period last year. Thus, these factors contributed to offset a 30$ increase in the cost of credit, reaching R$ 9.088 billion. Since in the balance sheet for the fourth quarter of 2022, Itaú allocated an additional R$ 1.3 billion to cover exposure to Americanas, which is experiencing a major financial gap and therefore entered into judicial recovery in January 2023.
Revenues from services and insurance rose 6.7% in the first quarter of this year compared to the same period last year. The increase was due to the billing of cards, the growth of resource management revenues and also the increase in the production of consortiums. An important point is that the increase in earned premiums contributed to the 10.9% growth in insurance results in the same period.
Itau’s first quarter
Itaú closed the first quarter of 2023 with BRL 2.547 trillion in total assets. According to the balance sheet, the increase was 16.7% in one year, while in the quarter it was 3.1%. One of the reasons for the rise in assets was the purchase of an additional stake in XP, in April 2022, in addition to the accounting of the goodwill on the purchase of Ideal brokerage.
In addition, the equity of the banking company, one of the largest in Latin America, was R$ 164.932 billion. This number is 14.2% higher than a year earlier, and 2.5% higher compared to December last year.
The return on equity was 20.7%, which marks an increase of 0.3 percentage points on a year.
Bank financial margins
The financial margin reflects the bank’s results with credit and asset and liability management. In the case of Itaú, the margin was BRL 24.692 billion in the first quarter of 2023. The result represents 17.3% above the margin in the first quarter of last year. Comparing with the fourth quarter of 2022, the number fell by 1.1%.
While the margin with customers, which includes credit results, increased 20% in one year, reaching R$ 24.048 billion. This number is 0.7% lower than in the fourth quarter. According to the bank, this is because on an annual basis, the greater volume of credit and the repricing of own working capital boosted the number, already in the quarter, the reduction was smaller due to the number of calendar days and the lower results with operations structured in the wholesale.
In terms of treasury, which measures the margin with the market, the result was R$ 645 million. The number represents a drop of 36% in a year and 13.8% in a quarter. Itaú is reaping lower results on this front due to the increase in the Selic rate and the positive point is that, thanks to the protection of positions, it continues with the treasury in the positive.
What did Itaú leaders say?
In a note, the bank’s president, Milton Maluhy, said that the balance sheet numbers show the bank’s cultural and digital transformation, which is now centered on customers and agility: “Our performance in the first quarter reflects the trajectory of consistency and solidity that has been built in recent years”.
Following the same line of thought, the CFO, Alexsandro Broedel, added that Itaú is having good management in terms of asset quality and expenses, which has made the bank have the best efficiency ratio in its history, of 39 .8%. “The stability of the default rate over 90 days remained at 2.9%, in a loan portfolio of R$ 1.2 trillion, demonstrating our quality in risk management”, he pointed out.
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