Itau Unibanco S.A.(ITUB) - 2024 Q4 - Annual Report

Financial Performance - Operating revenues for the year ended December 31, 2024, increased by 8.4% to R$168,050 million compared to R$154,971 million in 2023[25]. - Net income attributable to owners of the parent company rose by 24.1% to R$41,085 million in 2024 from R$33,105 million in 2023[25]. - Net interest income for 2024 was R$103,848 million, reflecting a 6.3% increase from R$97,712 million in 2023[25]. - Non-interest income grew by 12.1% to R$64,202 million in 2024, compared to R$57,259 million in 2023[25]. - Net income for the year ending December 31, 2024, reached R$42,128 million, an increase of 24% compared to R$33,877 million in 2023[199]. - Total comprehensive income for 2024 was R$46,864 million, up from R$37,881 million in 2023, reflecting a growth of 24%[199]. - Comprehensive income attributable to the owners of the parent company increased to R$45,821 million in 2024, compared to R$37,109 million in 2023, marking a rise of 23%[199]. - Earnings per share (basic) increased to R$4.20 in 2024, up from R$3.38 in 2023, marking a growth of 24.3%[197]. Asset and Liability Growth - Total assets grew by 12.2% to R$2,854,475 million as of December 31, 2024, up from R$2,543,100 million in 2023[29]. - Financial liabilities grew by R$238,288 million, or 11.9%, totaling R$2,239,979 million as of December 31, 2024[81]. - Total loans and lease operations increased by R$114,903 million, or 12.6%, reaching R$1,025,493 million as of December 31, 2024, compared to R$910,590 million in 2023[79]. - Total current liabilities reached R$1,395,888 million, while long-term liabilities were R$1,236,700 million, leading to total capitalization of R$2,854,475 million[115]. - The bank's total liabilities increased to R$2,633,191 million in 2024, up from R$2,344,050 million in 2023, representing a growth of 12.3%[196]. Income and Expense Analysis - Other operating expenses increased by 4.0% to R$88,183 million for the year ended December 31, 2024, from R$84,826 million in 2023[52]. - The increase in general and administrative expenses was R$3,657 million, or 4.8%, for the year ended December 31, 2024, primarily due to salary adjustments and higher profit-sharing expenses[52]. - The provision for expected loss increased slightly to R$47,758 million in 2024 from R$47,539 million in 2023, indicating a stable risk management approach[195]. Business Segment Performance - Net income from the Retail Business segment increased by 15.5% to R$15,124 million for the year ended December 31, 2024, compared to R$13,099 million in 2023[66]. - Operating revenues for the Wholesale Business segment increased by R$3,383 million, or 6.2%, for the year ended December 31, 2024, driven by a 3.2% increase in the interest margin[69]. - Net income from the Activities with the Market + Corporation segment increased by R$2,603 million, or 94.2%, for the year ended December 31, 2024, compared to R$2,763 million in 2023[72]. - Non-interest income in the Retail Business segment increased by 4.3% to R$39,101 million for the year ended December 31, 2024[64]. Regulatory and Market Environment - Brazil's sovereign credit rating was upgraded to Ba1 with a positive outlook on October 1, 2024, from Ba2, which may positively influence investor perceptions[151]. - The new consumer protection law effective August 30, 2024, allows for flexible monetary restatement and interest rates in contracts, impacting future financial agreements[122]. - The Central Bank's new regulations on credit derivatives and structured operations certificates are expected to enhance risk management practices in the Brazilian market[123]. - The Central Bank's upcoming regulations on banking as a service and credit card payment arrangements are anticipated to strengthen risk management frameworks in the payments market[124]. Capital and Equity - Total stockholders' equity attributed to the owners of the parent company increased by R$20,913 million, or 11.0%, reaching R$211,090 million[81]. - The company's total capital reached R$227,602 million, an increase of R$20,740 million, with a Basel Ratio of 16.5%[91]. - The BIS ratio stood at 16.5%, reflecting the company's capital adequacy in relation to risk-weighted assets[115]. Operational Efficiency - The total number of employees increased by 0.5% to 96,219 in 2024 from 95,702 in 2023[30]. - The total number of branches and client service branches decreased by 9.9% to 2,928 in 2024 from 3,250 in 2023[30]. - Significant investments have been made in the Bank's Information Technology systems to support operations and financial statement preparation[177]. Miscellaneous - The audit confirmed that the criteria and assumptions used by management for measuring the provision for expected loss are consistent with the information analyzed[173]. - Provisions and contingent liabilities are primarily related to judicial and administrative proceedings, which require careful assessment and management judgment[179].