2023-05-08 17:04:17
Itau Unibanco Holding, the largest private bank in Brazil, announced on Monday a recurring net profit of 8,435 million reais (US$1,700 million) in the first quarter, representing a year-on-year increase of 14.6%, despite higher provisions for doubtful loans.
The recurring net income figure, which excludes extraordinary items, was in line with expectations of 8.42 billion reais in a Refinitiv survey of analysts.
Itaú said in a values statement that the result was driven by the “positive effect” of a larger loan portfolio, which along with a “gradual change in the mix of better-margined loans” led to a 20% increase in its financial margin with clients.
The bank’s consolidated loan portfolio totaled 1.153 trillion reais in the quarter, 10.4% more than the previous year.
Provisions for loan losses reached 9 billion reais, up 28.7% from a year ago, but slowing from the 9.9 billion booked in the previous quarter, when affected by additional provisions related to the bankruptcy of retailer Americanas and said the cost of credit would likely increase in 2023 from 2022.
Itaú’s return on average capital, a widely followed indicator of profitability, reached 20.7% in the first quarter, compared to 20.4% a year ago.
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