Itaú Unibanco S.A. (ITUB) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 8, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Renato Lulia

Hello, good morning, everyone. My name is Renato Lulia, Group Head of Investor Relations and Market Intelligence at Itaú Unibanco. Thank you for participating in our video conference to talk about our earnings for the first quarter of 2023, which we are broadcasting live from our office at Faria Lima Avenue, in São Paulo.

Today's event will be divided in two parts. In the first, Milton will explain our performance and earnings for the first quarter of 2023. Next, we'll have a Q&A session, during which analysts and investors will be able to interact directly with us.

Now, I'd like to give some instructions to make the most of this meeting today. For those of you watching via our Web site, there are three audio options on the screen, the entire content in Portuguese, the entire content in English, or the original audio. In the first two options, we will have simultaneous translation. To choose your options just click on the flag on the top-left corner of your screen. Questions can also be sent via WhatsApp. To do so, for those of you watching on the Web site, just click on the button on the screen or simply send a message to the number +55-11-98993-1132. The presentation we'll be making today is available for download on the hot side screen, and, as usual, on our Investor Relations Web site.

I now hand over to Milton, who will begin the earnings presentation. Then, I'll be back to moderate the Q&A session.

Milton, the floor is yours.

Milton Maluhy Filho

Thank you, Renato. Good morning, everyone. It's a pleasure to have you here for our first quarter of 2023 earnings presentation. Our goal is to make an objective presentation focusing on earnings, since on June 15 we will host Itaú Day 2023, which will be the right occasion to share with you a lot more about our strategy and our business developments. We will talk about planned centricity and digital and cultural transformation, we'll go deeper on several topics that we've been talking a lot about with you.

The recurring managerial result of BRL 8.4 billion this quarter, a quarter-on-quarter increase of 10%, and which pushed us to a consolidated ROE of 20.7%, representing an increase of 1.4 percentage point, and ROE of 21.1% in Brazil. Financial margin with clients was BRL 24 billion, down 0.7 percentage point quarter-over-quarter, but it's worth mentioning the seasonality of the first quarter, as we can see in the historical series, since it has fewer calendar days. The cost of credit was BRL 9.1 billion, down 7% quarter-over-quarter. And one of the positives is that our non-performing loans over 90 days remain stable at 2.9%, which is consistent with what I've been talking about for the last few quarters. I'll provide more details on this topic in the next slides.