Itaú Unibanco profits R$7.6 billion in the second quarter of 2022, up 17.3%

Itaú Unibanco recorded net income of R$7.679 billion in the second quarter of 2022, which corresponds to a growth of 17.3% compared to the same period last year, and of 4.3% in relation to the immediately previous quarter.

The bank’s loan portfolio totaled R$1.084 trillion at the end of June, up 19.3% year-on-year and 5% quarter-on-quarter.

With the result achieved in the first two quarters of the year, the bank revised the forecast for the portfolio growth in 2022, from a range between 9% and 12%, to between 15.5% and 17.5%.

Among individuals, Itaú’s loan portfolio reached R$ 372.1 billion, an increase of 33.4% year-on-year and a 7.4% increase in the margin. Credit cards (43.1%), personal loans (35.6%) and mortgage loans (35.3%) were the highlights of growth in the category, considering the annual comparison.

Among companies, the portfolio totaled R$ 295.4 billion, up 18.1% on an annual basis and 4.1% in the quarter. In this case, the highlights were export and import financing (53.3%), real estate credit (47.6%) and rural credit (29.9%).

Financial margin with customers (difference between the cost of money raised by the bank in relation to that charged from customers) grew 30.9% year-over-year, and 9.7% on a quarterly basis, to R$21.98 billion.

According to the bank, the result was due to the change in the product mix, with greater relative growth in products with higher spreads, such as financed cards and installment plans.

Bad debt on the rise among individuals

The financial institution’s default rate over 90 days reached 2.7%, against 2.3% in June 2021, and 2.6% in March this year.

“The increase was due to higher delinquencies in the segment of individuals, which is normalizing, in the credit card, personal credit and vehicle financing portfolios,” the bank said in the earnings report.

Among individuals, the late payment rate ended the quarter at 4.4%, compared to 3.6% a year ago, and 4.1% in March this year.

Itaú’s provisions for loan losses reached R$7.814 billion in the second quarter of the year, up 61.7% year on year and 11.7% in the margin.

The ROE (Management Recurring Return on Average Annualized Shareholders’ Equity), an indicator that measures the profitability of the operation, reached 20.8% in June, compared to 18.9% in the same period of 2021 and 20.4% in the previous quarter.

“We are going through another challenging quarter in which we were able to achieve sustainable results, with a consistent increase in the profitability of our businesses”, stated Milton Maluhy Filho, president of Itaú Unibanco, in a note.

X-RAY | ITAÚ UNIBANCO

Foundation 2008, year of merger of Banco Itaú and Unibanco
Net income in the 2nd quarter of 2022 BRL 7.679 billion
agencies 4,192
Employees 99,913
Mainly competitors Bradesco, Santander, Banco do Brasil, Caixa Econômica Federal