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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 ...

SÃO PAULO, April 29, 2024 /PRNewswire/ -- Itaú Unibanco Holding S.A. (B3: ITUB3, ITUB4; NYSE: ITUB) (the "Company") filed its annual report on Form 20-F for the fiscal year ended December 31, 2023 (the "2023 Form 20-F") with the U.S. Securities and Exchange Commission ("SEC"). The 2023 Form 20-F is available in English at the SEC's website (www.sec.gov), on the Brazilian Securities and Exchange Commission's website (Comissão de Valores Mobiliários, the CVM) (www.cvm.gov.br) and on the Company's Investor Rel ...

For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________ FORM 20-F ____________________________ ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 1 ...

Joa_Souza/iStock Unreleased via Getty Images Investment Thesis I recommend buying Itaú (NYSE:ITUB) shares. Over the years, players who worked in Brazilian banking operations faced major challenges, and Itaú is the main player in this market. Recently, competition with fintechs brought challenges to the bank, which promptly initiated a major operational and cultural change in its operations, aiming to face disruptive competition. Even with a great track record of results, the company trades at a P/E mult ...