Itaú Unibanco predicts default returning to pre-pandemic levels

The president of Itaú Unibanco, Milton Maluhy Filho, said this Tuesday (9) that he expects the default rate to follow the recent upward trend observed over the last few months. In particular, among the individual public.

“Looking ahead, the scenario inspires caution. Since the third quarter of last year I have been saying that our default rate would rise, especially in individuals”, said Maluhy Filho, during a conversation with journalists to comment on the bank’s results in the second quarter. “We continue to see a gradual normalization of defaults.”

He added that the advance of late payments has been more important in consumer-oriented categories, such as credit cards and vehicles.

“We are significantly adjusting the concession in these specific segments where we have been experiencing a deterioration in credit”, said the president of Itaú Unibanco.

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

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.

The executive also said that default tends to stabilize at levels close to those observed in the pre-pandemic period.

In March 2020, Itaú Unibanco’s default rate was 3.1%. And among individuals, at 5.1%.

On Friday (5), the president of Bradesco, Octávio de Lazari Junior, had already signaled the expectation of a continuity in the high trend of default in the coming quarters.

Also in line with the competitor, the president of Itaú Unibanco said that the bank has no intention of offering the payroll-deductible line of credit to beneficiaries of Auxílio Brasil, sanctioned on Wednesday (3) by President Jair Bolsonaro (PL).

“We understand that it is not the right product for the vulnerable public [que recebe o benefício]. Thus, the bank decided not to operate,” said Maluhy Filho.