Itau Unibanco Q2 Earnings Call Highlights

Itaú Unibanco reported strong second-quarter results with recurring net income rising 7.8% year over year to BRL 12.4 billion, and consolidated ROE reaching 24.3%. The bank's total loans increased nearly 10% annually to BRL 1.522 trillion, driven by growth in loans to large companies, SMEs, payroll lending, and mortgages. Credit quality and costs remained broadly stable, although SME delinquencies are expected to rise modestly. The bank lowered its full-year forecast for commissions, fees, and insurance growth to 2%–5%. Itaú's CET1 ratio improved to 12.3%. The loan portfolio expanded across key segments, with payroll lending and mortgage lending showing significant growth. Net interest income with clients totaled BRL 32.6 billion, increasing 3.3% from the first quarter and 5% from the prior-year period. Risk-adjusted net interest margin reached 6.2% on a consolidated basis, up 10 basis points sequentially.