Brazil’s Itau reaffirms 2022 guidance as Q1 net income rises By Reuters

© Reuters. FILE PHOTO: A man is reflected in an Itau branch window in Rio de Janeiro, Brazil April 29, 2019. REUTERS/Sergio Moraes

By Gabriel Araujo

SAO PAULO (Reuters) -Brazilian lender Itau Unibanco Holding SA reported on Monday that first-quarter recurring net income rose 15% year on year, driven by higher credit volume as its loan book accelerated, and reaffirmed its guidance for the full year.

The country’s largest bank posted a quarterly recurring net income of 7.36 billion reais ($1.45 billion), in line with the 7.35 billion reais expected by analysts polled by Refinitiv.

It follows peer Banco BTG Pactual SA’s, which posted record quarterly net income and revenue.

The bottom line growth for Itau came even as loan-loss provisions jumped by 57.8% to 6.998 billion reais, it said in a securities filing.

“Our first quarter results show the consistency and sustainability of our performance even in a challenging scenario,” Chief Financial Officer Alexsandro Broedel said.

He added that Itau had all the conditions needed to keep an “extremely robust balance sheet” in 2022.

Itau’s return on equity, a gauge of profitability, was at 20.4% in the quarter – roughly flat from the 20.2% seen in the previous three months, which analysts at Goldman Sachs (NYSE:) said could indicate “mostly solid trends”, according to an earnings preview.

The bank’s loan book rose 13.9% year on year to 1.03 trillion reais, boosted by secured personal loans such as real estate-related ones and credit cards, which grew about 40% each.

The lender expects its loan book to grow between 9% and 12% in 2022, while the financial margin with clients is seen between 20.5% and 23.5%. Cost of credit was estimated at 25 billion to 29 billion reais.

Despite a nearly 15% slump since mid-April as investors started to walk away from riskier assets such as equities, shares in Itau has risen over 10% year-to-date as per Friday’s closing price.

($1 = 5.0776 reais)

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Education News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.