ITUB - Itaú Unibanco Holding S.A. (ITUB) Q4 2023 Earnings Conference Call Transcript
2024-02-06 17:48:03 ET
Itaú Unibanco Holding S.A. (ITUB)
Q4 2023 Earnings Conference Call
February 6, 2024 8:00 AM ET
Company Participants
Renato Lulia - Head of IR & Market Intelligence
Milton Filho - CEO & Member of Executive Board
Alexsandro Lopes - CFO & Member of Executive Board
Conference Call Participants
Renato Meloni - Autonomous
Gustavo Schroden - Bradesco
Mario Pierry - Bank of America
Rafael Frade - Citibank
Thiago Batista - UBS
Tito Labarta - Goldman Sachs
Daniel Vaz - Credit Suisse
Nicolas Riva - Bank of America
Carlos Gomez - HSBC
Presentation
Operator
Hello. Good morning, everyone. I am Renato Lulia, Group Head of Investor Relations and Market Intelligence at Itaú Unibanco. Thank you very much for joining our video conference to talk about our earnings for the fourth quarter of 2023, which we are broadcasting directly from our office at Avenida Faria Lima at Sao Paulo.
This event will be divided into two parts. In the first part, Mr. Milton Maluhy will explain our performance and earnings for the fourth quarter of 2023 and present the 2024 guidance. Right after we will have a Q&A session. During which analysts and investors can interact directly with us.
I'd like to give you some instructions to make the most out of today's meeting. For those who are accessing this via our website, there are three options for audio on the screen, the entire content in Portuguese, the entire content in English or in the original audio. 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 corner of your screen. Questions can also be forward via WhatsApp. To do so, just click on the button on the screen on the website or simply send a message to the number, +55-11-939-591877. The presentation we will make today is available for download on the website screen, and also as usual on our Investor Relations website.
I'll now give the floor to Mr. Maluhy who will begin the presentation on earnings. Then I'll come back to you to moderate the Q&A session. Milton, go ahead.
Milton Filho
Good morning, welcome to our fourth quarter of 2023 earnings and the 2024 guidance presentation. I'll go straight to the figures so that I can bring you some more information and then we'll have enough time for the Q&A. Firstly, our earnings in the quarter totaled R$ 9.4 billion, a growth of 4% from the previous quarter. As a result, we delivered a consolidated ROE of 21.2%, with the 10 basis points growth in the quarter. In Brazil, ROE reached 22.2%. Moving on to revenue generation, our NII grew 3.3% in the quarter, reaching R$ 23.2 billion. Commissions in fees and results from insurance operations posted strong growth of 4.6%, reaching R$ 13.5 billion for the quarter. All this with sound credit quality indicators. The consolidated NPL over 90 days posted a drop of 20 basis points. The NPL for individuals dropped 50 basis points. These are major results that show an evolution in the credit cycle. We've ended the quarter with a Tier 1 capital ratio of 15.2%, an increase of 60 basis points. The individuals portfolio grew 1.9% in the quarter and 4.1% in the same year. The SME's portfolio grew 2.6% in the quarter and 3.5% in the year....
Itaú Unibanco Holding S.A. (ITUB) Q4 2023 Earnings Conference Call Transcript