Itaú Unibanco's 3Q2024: A Deep Dive into Financial Performance

Itaú Unibanco, Latin America's largest private lender, recently held an interactive meeting to discuss its 3Q2024 financial performance. The meeting provided valuable insights into the bank's credit growth strategy, key financial metrics, and the impact of cost of credit on net recurring profit.


The executives addressed the bank's credit growth strategy, highlighting the acceleration in credit growth following recent mild quarters. The nearly 6% rise in the credit portfolio to 1.25 trillion reais was a significant factor in the bank's strong performance. This strategy, implemented to revise credit given to highly indebted customers, has contributed to the bank's overall financial health.


The main highlights from Itaú Unibanco's 3Q2024 financial performance include a 15.2% increase in net recurring profit to 10.07 billion reais, a 6.4% annual rise in net interest income, and a 22.4% return on equity (ROE). The bank's delinquency rate for loans more than 90 days overdue came in at 2.7%, a 0.3 percentage point decrease year-on-year.


The executives discussed the bank's cost of credit, which fell almost 7% from a year earlier to 8.8 billion reais. This reduction contributed to the bank's overall net recurring profit, which benefited from both higher revenues and lower cost of credit.


In conclusion, Itaú Unibanco's 3Q2024 financial performance was marked by strong credit growth, increased net recurring profit, and a significant reduction in the cost of credit. The bank's executives highlighted the acceleration in credit growth and the positive impact of cost reduction on net recurring profit. With a 22.4% ROE, Itaú Unibanco continues to maintain strong momentum and is well-positioned for future growth.