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THE Itaú Unibanco (ITUB4) reported recurring fourth-quarter earnings on Monday virtually in line with analyst estimates.
Itaú had a 26.1% drop in profits compared to the previous year, to 5,388 million reais, 1% below the analyst consensus estimate of 5,440 million reais, compiled by Refinitiv.
In a note, Itaú’s new CEO, Milton Maluhy, said that, to face a challenging 2021, the bank will seek to cut costs and accelerate growth.
The bank’s net interest income and loan loss provisions continued under pressure, while fee and service income declined.
Return on equity, an indicator of profitability among banks, increased 0.4 percentage points in relation to the third quarter, to 16.1%.
Itaú’s loan portfolio grew 2.7% in the quarter, while the 90-day delinquency rate remained practically stable at 2.3%.
