Itau Unibanco S.A.(US:ITUB)2025-04-28 21:12Financial Performance - Operating revenues increased by 8.4% to R$168,050 million for the year ended December 31, 2024, compared to R$154,971 million in 2023[742] - Net income attributable to owners of the parent company rose by 24.1% to R$41,085 million for the year ended December 31, 2024, from R$33,105 million in 2023[744] - Net interest income increased by R$6,136 million, or 6.3%, for the year ended December 31, 2024, primarily due to a R$19,873 million increase in interest and similar income[744] - Non-interest income grew by 12.1%, or R$6,943 million, for the year ended December 31, 2024, driven by a 106.5% increase in other income[747] - 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[759] Asset Quality - Expected loss from financial assets increased by R$1,866 million, or 6.1%, for the year ended December 31, 2024, mainly due to an increase in expected loss with other financial assets[751] - The 15 to 90 days NPL ratio decreased by 30 basis points to 2.0% as of December 31, 2024, compared to December 31, 2023[754] - The 90-day NPL ratio decreased by 50 basis points to 2.6% as of December 31, 2024, attributed to improved loan quality in recent vintages[758] Taxation - Current and deferred income and social contribution taxes amounted to R$5,428 million for the year ended December 31, 2024, down from R$5,823 million in 2023[760] - The managerial adjustments of tax effects for current and deferred income and social contribution taxes were R$5,781 million for the year ended December 31, 2024, compared to R$4,855 million in 2023[761] Business Segments - 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[773] - Operating revenues for the Retail Business segment rose by R$4,462 million, or 4.6%, driven by a 4.8% increase in the interest margin due to higher average credit volume[773] - Non-interest income in the Retail Business segment increased by 4.3% to R$39,101 million, attributed to higher revenues from insurance products and card issuance[773] - Net income from the Wholesale Business segment grew by 5.9% to R$20,913 million for the year ended December 31, 2024, from R$19,756 million in 2023[776] - Operating revenues for the Wholesale Business segment increased by R$3,383 million, or 6.2%, due to a 3.2% rise in the interest margin and a 14.4% increase in non-interest income[777] - The Activities with the Market + Corporation segment saw net income rise by 94.2% to R$5,366 million, with operating revenues increasing by R$4,315 million, or 77.4%[781] Financial Position - Total assets increased by R$311,375 million, or 12.2%, to R$2,854,475 million as of December 31, 2024, primarily due to growth in financial assets at amortized cost[784] - Financial assets at amortized cost increased by R$226,579 million, or 13.4%, mainly due to higher loan and lease operations and interbank deposits[784] - 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[788] - Financial liabilities grew by R$238,288 million, or 11.9%, totaling R$2,239,979 million as of December 31, 2024[790] - Total stockholders' equity attributed to the owners of the parent company reached R$211,090 million, an increase of R$20,913 million, or 11.0%[790] Capital and Liquidity - The Liquidity Coverage Ratio (LCR) improved to 221.3% as of December 31, 2024, compared to 191.8% in 2023, significantly exceeding the Central Bank's minimum requirement of 100%[814] - Total capital increased to R$227,602 million, up R$20,740 million from R$206,862 million in 2023, with a total capital ratio of 16.5%[807] - Common Equity Tier I (CET1) capital rose to R$188,265 million, maintaining a CET1 ratio of 13.7%[805] - As of December 31, 2024, the Net Stable Funding Ratio (NSFR) was 122.0%, down from 126.9% in 2023, indicating a stable liquidity position above the Central Bank's minimum requirement of 100%[818][819] Investments and Expenditures - Capital expenditures for the year ended December 31, 2024, totaled R$7,368 million, a decrease of 19.8% from R$9,191 million in 2023[848] - Fixed assets decreased by 52.0% to R$1,833 million in 2024 from R$3,815 million in 2023[848] - Intangible assets increased by 3.0% to R$5,535 million in 2024 compared to R$5,376 million in 2023[848] Risk Management - The sensitivity analysis for interest rate risk indicated potential losses of R$10,576.6 million under Scenario III for the trading and banking portfolios[856] - The cash flow hedge strategy aims to protect against future cash flows of interest payments, while fair value hedges protect against changes in market risk due to variable rates[737] Strategic Initiatives - The company continues to explore growth opportunities both domestically and internationally as part of its strategic review[885]