Itau Unibanco Q4 Earnings & Revenues Grow Y/Y, Expenses Increase

Core Insights - Itau Unibanco Holding S.A. reported a recurring managerial result of R$10.8 billion ($1.87 billion) for Q4 2024, reflecting a year-over-year increase of 14.9% [1] - For the full year 2024, the recurring managerial results reached R$41.4 billion ($7.15 billion), marking an 18.2% increase year-over-year [2] Financial Performance - Operating revenues for Q4 2024 were R$44.1 billion ($7.6 billion), up 7.6% year-over-year, while total operating revenues for the year were R$169 billion ($29.2 billion), increasing by 7.8% [3] - The managerial financial margin rose by 8.3% year-over-year to R$29.4 billion ($5.13 billion), and commissions and fees increased by 4.5% to R$11.7 billion ($2 billion) [3] - Non-interest expenses totaled R$16.7 billion ($2.9 billion), reflecting an 8.9% year-over-year increase [3] Efficiency and Profitability - The efficiency ratio improved to 39.5% in Q4 2024, down from 39.9% in the same quarter of the previous year, indicating enhanced profitability [4] - The annualized recurring managerial return on average equity was 22.2%, up from 21.2% in the prior year [8] Credit Quality - The cost of credit charges decreased by 5.5% year-over-year to R$8.6 billion ($1.5 billion) [5] - The non-performing loan ratio improved to 2.4% in Q4 2024, down from 2.8% in the prior-year quarter [5] Balance Sheet Overview - As of December 31, 2024, total assets decreased by 6.6% to R$2.85 trillion ($492.8 billion) [6] - Liabilities, including deposits and borrowings, increased significantly by 82.6% on a sequential basis to R$2.63 trillion ($454.7 billion) [6] - The credit portfolio rose by 6.3% to R$1.35 trillion ($233.4 billion) from the previous quarter [7] Capital Ratios - The Common Equity Tier 1 ratio improved to 15% as of December 31, 2024, up from 13.7% a year earlier [8]