Group 1 - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of about 4% and has performed well over the last five years by engaging in international markets [1][2] - Itau Unibanco is highlighted as an interesting investment opportunity from the Brazilian market, with recent rate cuts being reversed due to rising inflation and a robust labor market, which should support net interest margins (NIMs) [2] - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are expected to generate non-correlated and outsized returns in the current economic environment, emphasizing a long-only investment strategy [3]

Financial Data and Key Metrics Changes - The company reported quarterly managerial recurring results of BRL10.7 billion, representing a 6% increase quarter over quarter and nearly 20% year over year on a comparable basis [7] - The consolidated return on equity (ROE) was 22.7%, with a ROE in Brazil of 23.8% [7] - The Common Equity Tier I ratio increased to 13.7%, up 60 basis points from the previous period, significantly above the board-approved minimum of 11.5% [8] - The adjusted ROE, considering the minimum capital ratio, would be 24.6% consolidated and 26.4% in Brazil [8] Business Line Data and Key Metrics Changes - The loan portfolio grew by 1.9% quarter over quarter and nearly 10% year over year [9] - The individual loans segment saw a growth of 2.5% quarter over quarter [11] - The SME portfolio grew by 4.1% quarter over quarter, while the Large Corporates segment grew by only 0.7% due to a significant asset leaving the balance sheet [12] - The Latin America portfolio grew by 1.2% quarter over quarter, with an average balance growth of 8.2% [14] - The Financial Margin with Clients increased by BRL1.2 billion quarter over quarter, representing a 4.5% growth [16] Market Data and Key Metrics Changes - The company reported improvements in non-performing loans (NPL) indicators, with a drop of 20 basis points in both Individuals and SMEs for NPL 15-90 [23] - The NPL 90 indicator showed a significant drop of 20 basis points in Individuals and 10 basis points in SMEs [23] Company Strategy and Development Direction - The company aims to maintain a focus on sustainable finance, with a new goal to reach BRL1 trillion in structuring capital markets operations and individual loans by the end of 2030 [48] - Investments in technology and modernization are prioritized, with a focus on improving client experience and operational efficiency [36][38] - The company is transitioning to a unified banking experience for clients, reducing the number of applications and improving service delivery [40][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's ability to navigate challenging cycles while maintaining quality growth [24] - The company is focused on sustainable growth with quality, emphasizing the importance of risk-adjusted returns [70][79] - The management highlighted that the appetite for risk is dynamic and closely monitored, ensuring decisions are made with long-term sustainability in mind [84] Other Important Information - Non-interest expenses grew by 6.1% year over year, primarily due to collective wage agreements [34] - The company has been actively managing its capital structure, with expectations for higher dividends compared to the previous year [64] Q&A Session Summary Question: Inquiry about capital and dividends - Management confirmed that the extraordinary dividend is expected to be larger than last year, with a focus on maintaining a well-capitalized bank [64][62] Question: Impact of AT1 on dividend decisions - Management clarified that there would be no impact on the dividend distribution policy due to AT1 levels [66] Question: Focus on portfolio growth and risk-adjusted returns - Management emphasized that growth is focused on quality and risk-adjusted returns, with consistent expansion across all segments [70][79] Question: Guidance on exchange rate influence - Management indicated that the exchange rate has influenced guidance adjustments, but the focus remains on sustainable growth [82][84] Question: Competitive advantages and industry outlook - Management discussed the importance of expected loss provisioning and proactive management as competitive advantages, positioning the bank favorably in the industry [92][98]

Core Insights - Itau Unibanco Holding S.A. (ITUB) reported a recurring managerial result of R$10.7 billion ($1.93 billion) for Q3 2024, reflecting an 18.1% year-over-year increase, supported by higher revenues and an increase in managerial financial margin, despite rising non-interest expenses acting as a negative factor [1] Financial Performance - Operating revenues for Q3 2024 were R$42.7 billion ($7.7 billion), an 8% increase year-over-year [2] - The managerial financial margin rose 6.4% year-over-year to R$28.5 billion ($5.13 billion) [2] - Commissions and fees increased by 5% to R$11.2 billion ($2 billion) [2] - Non-interest expenses totaled R$15.9 billion ($2.9 billion), up 8.2% year-over-year [2] Efficiency and Profitability - The efficiency ratio improved to 40.2%, down from 40% in the previous year, indicating increased profitability [3] - The annualized recurring managerial return on average equity was 22.7%, up from 21.1% in the prior year [7] Credit Quality - The cost of credit charges decreased by 11% year-over-year to R$8.2 billion ($1.5 billion) [4] - The non-performing loan ratio was 2.6%, down from 3% in the prior year [4] Balance Sheet Strength - Total assets as of September 30, 2024, rose 2.6% to R$3 trillion ($551.2 billion) [5] - Liabilities, including deposits and borrowings, totaled R$1.44 trillion ($264.6 billion), showing a marginal increase [5] - The credit portfolio increased by 1.9% to R$1.28 trillion ($235.2 billion) from the previous quarter [6] Capital Ratios - The Common Equity Tier 1 ratio improved to 13.7%, up from 13.1% a year earlier [7]

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Itau Unibanco Holding S.A. (ITUB) 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% y ...

Core Viewpoint - Itaú Unibanco is positioned for growth due to its strong performance in asset management and investment banking, despite facing challenges such as rising expenses and deteriorating credit quality [7]. Group 1: Financial Performance - The bank has recorded revenue growth driven by increased commissions, fees, and strong performance in insurance operations, with growth opportunities in the insurance market [1]. - Itaú Unibanco's total credit portfolio has shown a CAGR of 13% from 2019 to 2023, continuing its upward trend into Q1 2024 [2]. - As of March 31, 2024, the bank's deposits reached R$965.35 billion, indicating a strong funding base [9]. Group 2: Credit Quality and Risks - The company has experienced a deterioration in credit quality, with elevated non-performing loan ratios and credit charges expected to persist [5][11]. - The ongoing economic outlook and recessionary fears are likely to further impact credit quality in the near term [11]. Group 3: Strategic Initiatives - The bank is focused on inorganic growth through acquisitions, including an 11.4% stake in XP Inc. for R$8 billion and the acquisition of Ideal Holding to enhance its investment ecosystem [8]. - In March 2024, Itaú Unibanco completed the acquisition of ZUP IT, aimed at bolstering digital transformation and expanding its product offerings [8]. Group 4: Expense Management - The company faces concerns regarding an escalating expense base due to investments in digital transformation, with projected non-interest expenses expected to grow by 4-7% in 2024 [10].

Core Viewpoint - Itaú Unibanco Holding S.A. is undergoing a corporate restructuring plan that includes the merger of its subsidiary Hipercard Banco Múltiplo S.A. to enhance efficiency and reduce costs [1][2][3]. Group 1: Merger Details - The merger will involve transferring all activities managed by Hipercard to Itaú Unibanco, aiming for greater synergy within the conglomerate [2]. - The estimated cost for executing the merger is approximately R$180,000 ($34,843) [1]. - Following the merger, Hipercard will be dissolved, and its assets, valued at R$2.68 billion ($518 million), will be taken over by Itaú Unibanco [3][4]. Group 2: Financial Impact - The merger will not lead to an increase in capital or the issuance of new shares for Itaú Unibanco, and there will be no exchange ratio or withdrawal rights for dissenting shareholders [4]. - Overall, the transaction is expected to have no financial impact on Itaú Unibanco [4]. Group 3: Market Position and Performance - This strategic move is indicative of Itaú Unibanco's adaptability to market trends and aims to strengthen its competitive position [5]. - Over the past six months, Itaú Unibanco's shares have decreased by 3.1%, contrasting with the industry's growth of 14.4% [5].

Financial Data and Key Metrics Changes - The company's earnings for Q1 2024 totaled R$9.8 billion, representing a growth of 3.9% compared to the previous quarter [8] - The consolidated recurring return on equity (RoE) was 21.9%, with a quarter-over-quarter increase of 70 basis points [8] - The cost of credit dropped nominally for the third consecutive quarter, reaching R$8.8 billion, a decrease of 3.9% quarter-over-quarter [9] - Operating expenses (OpEx) fell by 6.2% to R$14.4 billion, leading to a record efficiency ratio of 38.3%, a decrease of 200 basis points [10] Business Line Data and Key Metrics Changes - Vehicle loans grew by 1.7% during the quarter and 5.4% year-over-year, while the mortgage portfolio remained flat in the quarter but grew by 3.1% year-over-year [11] - The credit portfolio, excluding FX variations, grew by 5.6% year-over-year, while including FX variations, it grew by 2.8% [12] - The individual loans portfolio grew by 2.6% year-on-year but decreased by 0.6% in Q1 due to seasonality in the credit card portfolio [29] - The SME's portfolio grew by 1.9% in the quarter and 10.2% year-over-year, while the large corporates portfolio grew by 9.3% year-over-year and 3.6% in the quarter [30] Market Data and Key Metrics Changes - The company maintained a strong position in the capital markets, ranking first in debt capital markets with a market share of 32% [67] - The first quarter typically sees weaker issuance and acquiring business due to seasonality, with a noted 5.8% drop year-over-year in this area [19] Company Strategy and Development Direction - The company is focused on a de-risking strategy, having reduced its credit portfolio to less resilient segments by 83% since December 2022, with full reduction expected by Q3 2024 [14] - The 2024 guidance estimates a growth of the credit portfolio between 6.5% and 9.5%, with confidence in achieving this despite current adjustments [45][46] - The company aims to enhance its digital transformation to improve client experience and operational efficiency [96][124] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter tends to be weaker due to seasonal factors, but they remain optimistic about future growth and profitability [39][40] - The company expects to maintain healthy indicators with good coverage by provisions and a healthy level of 90-day delinquency [41] - Management expressed confidence in achieving the 2024 guidance and emphasized disciplined capital allocation and risk management [120] Other Important Information - The company announced the payment of extraordinary dividends, which reduced its capital base, but it has since generated more earnings [43][106] - The company is actively managing costs, with core costs growing at 2%, below the 12-month headline inflation rate of 3.9% [42] Q&A Session Summary Question: Dynamics of loan growth by individual client segments - Management highlighted the importance of managing the de-risking process and expressed optimism about profitability and growth opportunities across various client segments [87][90] Question: Concerns about growing expenses with inflation - Management acknowledged the need for efficiency and emphasized ongoing investments in digital transformation to enhance client experience and operational scale [96][124] Question: Discussion on extraordinary dividends - Management indicated that they expect to announce extraordinary dividends by the end of the year, contingent on projections and capital generation [106][111] Question: Opportunities in the SME segment - Management expressed confidence in the SME segment, noting consistent growth and the potential for further expansion [112][115]

Itau Unibanco Holding S.A. (ITUB) reported recurring managerial results of R$9.8 billion ($1.98 billion) for first-quarter 2024, up 15.8% year over year.The results were supported by higher revenues and an increase in managerial financial margin. Rising total deposits and assets reflected a strong balance sheet position. However, an increase in non-interest expenses was an undermining factor.Revenues & Costs IncreaseOperating revenues were R$40.35 billion ($8.15 billion) in the reported quarter, up 7.8% yea ...

Q2 2024 Net Sales within projections; Adjusted EBITDA and Adjusted Diluted EPS exceeded previous Outlook © Atkore 4 Volume/Mix (0.8%) Q2 Net Sales Bridge $8 $86 $11 $2 2023 Volume/Mix Price Solar Credit Other1 2024 $896M $793M 2024 Adjusted Diluted EPS Bridge2 1. "Other" may include items such as F/X, M&A, productivity, investments, interest and tax rate. 2. See non-GAAP reconciliation in appendix. Product Area Review & Key Comments 31% + LSD% Electrical Cable & Flexible Conduit + LSD% 13% + DD% © Atkore 6 ...