Financial Performance - Operating revenues for the nine-month period ended September 30, 2023, reached R$116,575 million, a 9.9% increase from R$106,043 million in 2022[24]. - Net interest income increased by 12.8% to R$73,669 million compared to R$65,295 million in the same period last year[24]. - Net income attributable to owners of the parent company was R$24,332 million, reflecting an 11.0% growth from R$21,915 million in 2022[24]. - Operating revenues increased by 9.9% to R$116,575 million for the nine-month period ended September 30, 2023, compared to R$106,043 million for the same period in 2022[34]. - Net income attributable to owners of the parent company rose by 11.0% to R$24,332 million for the nine-month period ended September 30, 2023, from R$21,915 million in the same period of 2022[36]. - Net income for Q3 2023 was R$8,469 million, compared to R$8,118 million in Q3 2022, reflecting a 4.3% year-over-year growth[186]. - Total comprehensive income for Q3 2023 was R$10,753 million, up from R$8,824 million in Q3 2022, representing a 21.7% increase[186]. - Adjusted net income for the period from January 1 to September 30, 2023, was R$67,533 million, a decrease of 22.3% compared to R$87,036 million in the same period of 2022[189]. Asset and Liability Management - Total assets as of September 30, 2023, amounted to R$2,509,117 million, an 8.1% increase from R$2,321,066 million at the end of 2022[27]. - Total liabilities as of September 30, 2023, amounted to R$2,316,443 million, an increase from R$2,143,959 million at the end of 2022[183]. - Total financial liabilities increased by R$138,752 million, or 7.6%, as of September 30, 2023, compared to December 31, 2022[91]. - Current liabilities amounted to R$1,244,279 million, while long-term liabilities totaled R$1,071,687 million as of September 30, 2023[126]. Capital and Equity - The Common Equity Tier I Ratio improved to 13.1%, up 120 basis points from 11.9% in December 2022[27]. - Total stockholders' equity attributed to the owners of the parent company increased by R$15,919 million, or 9.5%, as of September 30, 2023[91]. - The total stockholders' equity attributed to the owners of the parent company rose to R$183,636 million, up from R$167,717 million year-over-year[183]. - The total change in stockholders' equity for the period is R$15,567 million, reflecting the company's performance and transactions with owners[187]. Operational Efficiency - The total number of employees decreased by 2.9% to 97,486 from 100,361 in the previous year[27]. - The number of total branches and client service branches fell by 8.0% to 3,509 from 3,816[27]. - Other operating expenses increased by 10.1% to R$62,935 million, largely due to higher general and administrative expenses[49]. - Capital expenditures for the nine-month period ended September 30, 2023, totaled R$5,756 million, a decrease of 32.4% compared to R$8,495 million for the year ended December 31, 2022[123]. Risk Management - The provision for expected loss increased by 18.7% to R$24,023 million compared to R$20,235 million in 2022[24]. - The 90-day non-performing loan (NPL) ratio was 3.5% as of September 30, 2023, an increase of 40 basis points compared to the same date in 2022[44]. - The coverage ratio for 90-day NPLs was 209% as of September 30, 2023, down from 215% a year earlier[48]. - The expected loss from financial assets was R$7,994 million in Q3 2023, compared to R$7,000 million in Q3 2022, reflecting a 14.2% increase in expected losses[184]. Business Segments Performance - Net income from the Retail Business segment increased by 16.6% to R$9,493 million for the nine-month period ended September 30, 2023, compared to R$8,139 million for the same period in 2022[66]. - Operating revenues for the Retail Business segment rose by R$4,918 million, or 7.4%, driven by an 8.9% increase in interest margin due to higher average credit volume[66]. - Net income from the Wholesale Business segment increased by 12.8% to R$14,880 million for the nine-month period ended September 30, 2023, compared to R$13,188 million for the same period in 2022[72]. - Operating revenues for the Wholesale Business segment increased by R$4,624 million, or 12.9%, primarily due to a 19.0% increase in interest margin[72]. Regulatory Environment - The Central Bank's new regulations, effective from November 1, 2023, enhance rules related to fraud prevention and require financial institutions to share information about fraud incidents[146]. - The implementation of Basel III in Brazil, effective July 1, 2023, introduces changes in capital requirement calculations related to credit risk exposures[140]. - The Central Bank's Resolution No. 348, effective November 1, 2023, amends rules for foreign exchange transactions, particularly for foreign direct investments[139]. - Open Finance regulations, effective April 1, 2023, allow for the sharing of customer data upon authorization, enhancing market competitiveness[136]. Cash Flow and Investments - The company reported a net cash from operating activities of R$92,101 million, down 25.4% from R$123,829 million in the same period last year[189]. - Cash and cash equivalents at the end of the period stood at R$123,056 million, an increase from R$119,569 million year-over-year[189]. - The company paid R$9,901 million in dividends and interest on capital, an increase from R$6,260 million in the same period last year[189].
Itau Unibanco S.A.(ITUB) - 2023 Q3 - Quarterly Report