Itau Unibanco Q4 Earnings & Revenues Grow Y/Y, Expenses Increase

Itau Unibanco Holding S.A. ITUB reported recurring managerial results of R$10.8 billion ($1.87 billion) for the fourth quarter of 2024, which increased 14.9% year over year.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.Higher revenues and an increase in managerial financial margin supported the results. Improving credit quality was an added advantage. However, an increase in non-interest expenses acted as a spoilsport.For 2024, the company reported recurring managerial results of R$41.4 billion ($7.15 billion), which increased 18.2% year over year.ITUB’s Revenues & Expenses IncreaseOperating revenues were R$44.1 billion ($7.6 billion) in the reported quarter, up 7.6% year over year.For the year, operating revenues were R$169 billion ($29.2 billion) in the reported quarter, up 7.8% year over year.The managerial financial margin increased 8.3% year over year to R$29.4 billion ($5.13 billion). Also, commissions and fees rose 4.5% to R$11.7 billion ($2 billion).Non-interest expenses totaled R$16.7 billion ($2.9 billion), up 8.9% year over year.In the fourth quarter, the efficiency ratio was 39.5%, down from 39.9% in the year-earlier quarter. A decrease in this ratio indicates increased profitability.ITUB’s Credit Quality ImprovesThe cost of credit charges declined 5.5% on a year-over-year basis to R$8.6 billion ($1.5 billion).The non-performing loan ratio (loan transactions overdue more than 90 days) was 2.4% in the fourth quarter, down from the prior-year quarter’s 2.8%.ITUB’s Balance Sheet Position: Mixed BagAs of Dec. 31, 2024, Itau Unibanco’s total assets fell 6.6% to R$2.85 trillion ($492.8 billion) from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$2.63 trillion ($454.7 billion), which increased 82.6% on a sequential basis.As of the same date, ITUB’s credit portfolio, including private securities and financial guarantees provided, rose 6.3% to R$1.35 trillion ($233.4 billion) from the prior quarter.ITUB’s Capital & Profitability Ratios RiseAs of Dec. 31, 2024, the Common Equity Tier 1 ratio was 15%, up from 13.7% as of Dec. 31, 2023.Annualized recurring managerial return on average equity was 22.2%, up from 21.2% in the year-earlier quarter.Our View on ITUBItau Unibanco’s fourth-quarter results were driven by a rise in managerial financial margin. The declining efficiency ratio indicates an increase in profitability, which is a positive factor. Growth in commissions and fees, insurance operations’ results and efforts to have a healthy credit portfolio are positives.Itau Unibanco Holding S.A. Price, Consensus and EPS Surprise  Itau Unibanco Holding S.A. price-consensus-eps-surprise-chart | Itau Unibanco Holding S.A. QuoteItau Unibanco currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Release Dates of Other Foreign BanksBarclays BCS is expected to report fourth-quarter and 2024 results on Feb. 18.Over the past seven days, the Zacks Consensus Estimate for BCS’s 2024 earnings has been unchanged at $1.53 per share, indicating a rise of 10.9% from the prior-year quarter’s actual.HSBC Holdings HSBC is expected to announce the fourth quarter and 2024 results on Feb. 19.Over the past seven days, the Zacks Consensus Estimate for HSBC’s 2024 earnings has been unchanged at $6.67 per share, indicating a rise of 5.5% from the prior-year quarter’s actual.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Barclays PLC (BCS): Free Stock Analysis Report Itau Unibanco Holding S.A. (ITUB): Free Stock Analysis Report HSBC Holdings plc (HSBC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks