Itaú Unibanco Holding S.A. (ITUB) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 11, 2022 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Renato Lulia

Good morning, everyone. I’m 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 third quarter of 2022, which are broadcasting directly from our office here on Faria Lima Avenue in Sao Paulo. This event will be divided into two parts.

In the first part, Mr. Milton Maluhy Filho will explain our performance and earnings for the third quarter of 2022. Next, we’ll have the Q&A session where analysts and investors will be able to interact with us directly. Now I’d like to give some instructions for good participation in this meeting today. For those of you who are accessing this via our website, there are three options of audio on the screen, the whole content in Portuguese, the whole content in English or the original audio. And the first two options will have simultaneous translation. To choose your option, all you have to do is click on the flag on the top left of your screen. Questions can also be forwarded via WhatsApp. To do so, all you have to do is click on the button on the screen on the website or send a message to the number +5511-99-148-4308. The presentation we’ll make today is available for download on the hot side screen and also as usual, on our Investor Relations website.

I now give the floor to Maluhy, who will begin the presentation on the earnings, and then I’ll come back to you to moderate the Q&A session. Milton, go ahead.

Milton Filho

Good morning, everyone. Thank you for participating in our conference on the earnings for the third quarter of 2022. I’ll go straight to the figures. And then during the presentation, I’ll bring in some information that I consider relevant. So the first good news is that we posted a very robust recurring managerial result of BRL 8.1 billion in the quarter, up 5.2% from the previous quarter. And in Brazil, we posted a growth of 4.8%, reaching BRL 7.4 billion. Consolidated ROE of 21%, an increase of 0.2 percentage points. And in Brazil, we’ve been able to maintain a very high and stable profitability level of 21.6%. The consolidated loan portfolio grew 2.5%, reaching BRL 1.1 trillion. And in Brazil, it reached BRL 900.3 billion, up 2.7% from the previous quarter. The margin with clients also posted a very positive increase in the quarter, growing 6.4% to BRL 23.4 billion. I’ll provide more details later on. When we look at Brazil alone, it grew 5.5%, reaching BRL 20.6 billion. Speaking of delinquency, there was a very small increase in the NPL ratio of 0.1 percentage point in the consolidated figure. And when we look at Brazil alone, it grew 0.2 percentage point. I’ll provide more details later on.