Itaú Unibanco decreases significantly on the first quarter balance sheet disclosure day By Investing.com

By Gabriel Codas

Investing.com – This Monday afternoon, Itaú Unibanco shares operate with a devaluation in B3, with greater losses compared to Ibovespa today. The bank will announce the results during the first three months of the year.

The market does not expect positive figures for the institution, as well as for other banks, as the sector faces a drop in service revenues and an increase in provisions to face a possible increase in defaults due to the economic crisis caused by the pandemic. of coronavirus.

Around 4:20 pm, the bank’s shares lost 3.82% to R $ 21.88, on a new negative day for. The main Brazilian stock index registered losses of 2.71% at 78,321 points.

Regarding the sector, XP Investimentos believes that, while the impacts of Covid-19 on banks should be modest in the short term, as the crisis began at the end of the first quarter, issues such as the increase in provisions for default , the credit spreads in the current scenario and the impact of various recent measures by the Central Bank to increase the liquidity and effectiveness of special credit lines partially financed by the Treasury.

The market consensus estimates that the country’s largest private bank should record a net profit per share of 0.66 in the first quarter of the year, which in the same period of 2019 was R $ 0.71, a scenario that is I expected R $ 0.70. At the close of the previous calendar, Itaú’s profit was R $ 0.75.

Regarding revenue, the market consensus is R $ 29.75 billion, compared to R $ 28.21 billion in the same quarter last year, compared to an estimate of R $ 27.66 billion millions. Between October and December 2019, the result was R $ 30.54 billion, when R $ 30.46 billion were expected.

The XP team estimates a negative result for Itaú, marked by a drop in revenues and an increase in the volume of provisions for credit losses. When it comes to credit, they believe that Itaú should continue expanding its portfolio, mainly due to the flight of large companies from the capital market to banks, while defaults should not affect this first period yet. Expenses should remain under control, as the end of the quarter was marked by a reduction in the use of the institution’s physical facilities, but they believe that this drop may intensify in the coming quarters.

BTG Pactual (SA 🙂 expects the company’s net profit to be R $ 6,304 billion.