Q1 2025 Itau Unibanco Holding SA Earnings Call (English, Portuguese) Transcript
Key Points
- Itau Unibanco Holding SA (ITUB) reported a recurring managerial result of BRL11.1 billion, marking a 2.2% growth compared to the previous quarter and nearly 14% year-over-year growth.
- The company achieved a return on equity (ROE) of 22.5% on a consolidated basis and 23.7% in Brazil, with both indicators showing growth on a quarterly and annual basis.
- Itau Unibanco Holding SA (ITUB) delivered the lowest efficiency ratio in its history at 36% in Brazil, indicating improved operational efficiency.
- The credit portfolio showed growth, with the individuals loan book increasing by 8.6%, the SME credit portfolio by 17.7%, and the large corporate loan book by 13%.
- The company maintained a strong capital base with a CET1 ratio of 12.6%, despite absorbing regulatory impacts and paying additional dividends.
- The SME loan book posted a drop of 2% in the quarter, and the large corporate portfolio dropped 1.8%, indicating some challenges in these segments.
- The payroll loan origination for INSS beneficiaries has reduced due to the interest cap, affecting the growth in this segment.
- The cost of credit reached BRL9 billion, with a cost of credit over the total loan book at 2.6%, indicating ongoing credit risk management challenges.
- The financial margin with the market may face pressure due to expected increases in the capital ratio hedge cost over the next few quarters.
- There is a potential risk of normalization in the SME delinquency ratio, which could return to higher levels observed in previous quarters.
Hello. Good morning, everyone. I am Renato Lulia and it is a pleasure to have you joining us at another Itaú Unibanco quarter earnings conference. Milton will explain our performance and earnings for the first quarter of 2025. In a new format from Itaú BBA's auditorium at Faria Lima headquarters in Sao Paulo.
Then we will host a Q&A session in which analysts and investors will be able to interact directly with us from the studio, which is right next door to the auditorium.
I would like to give you some instructions to make the most of today's meeting. For those of you who are accessing this via our website. There are three options for audio on the screen. The entire content in Portuguese, the entire content in English or in the original audio and we will have simultaneous translation in the first two alternatives.
To choose your option, all you have to do is click the flag at the top left corner of your screen. Questions can also be
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