Itau Unibanco Q3 Earnings & Revenues Increase Y/Y, Expenses Rise

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]