Itaú Unibanco Holding S.A. - Material Fact: 2021 Revised Projections

Rhea-AI Summary

Itaú Unibanco Holding S.A. has revised its 2021 financial projections, as disclosed on August 2, 2021. The company anticipates a total credit portfolio growth of 5.5% to 9.5% in Brazil, maintaining its financial margin with clients and the market. The new forecasts include a financial margin with the market ranging from R$4.9 to R$6.4 billion and a cost of credit between R$21.3 to R$24.3 billion. The effective tax rate is projected to be between 34.5% to 36.5%, indicating a cautious outlook based on market conditions.

Positive

• Total credit portfolio projected growth of 5.5% to 9.5%.
• Financial margin with clients maintained.
• Financial margin with the market expected between R$4.9 bn and R$6.4 bn.
• Cost of credit forecasted at R$21.3 bn to R$24.3 bn.

Negative

• None.

SÃO PAULO, Aug. 2, 2021 /PRNewswire/ -- Itaú Unibanco Holding S.A. ("Company" or "Itaú Unibanco"), in compliance with Article 157, Paragraph 4 of Law 6,404/76 and Instruction no. 358/02 of the Brazilian Securities and Exchange Commission, informs its stockholders and the market in general that as of this date it has revised its projections for the year 2021 in accordance with the provision in item 11 ("Projections") of the Reference Form.

guidance 2021
	consolidated		Brazil¹
	previous	reviewed	previous	reviewed
total credit portfolio²	growing between 5.5% to 9.5%	growing between 8.5% to 11.5%	growing between 8.5% to 12.5%	growing between 12.5% to 15.5%
financial margin with clients	growing between 2.5% to 6.5%	maintained	growing between 3.0% to 7.0%	maintained
financial margin with the market	range from R$4.9 bn to R$6.4 bn	range from R$6.5 bn to R$8.0 bn	range from R$3.3 bn to R$4.8 bn	range from  R$3.9 bn to R$5.4 bn
cost of credit³	range from  R$21.3 bn to R$24.3 bn	range from  R$19.0 bn to R$22.0 bn	range from  R$19.0 bn to R$22.0 bn	range from  R$17.0 bn to R$20.0 bn
commissions and fees and results from insurance operations4	growing between   2.5% to 6.5%	maintained	growing between 2.5% to 6.5%	maintained
non-interest expenses	range from   -2.0% to 2.0%	maintained	range from -2.0% to 2.0%	maintained
effective tax rate	range from  34.5% to 36.5%	maintained	range from 34.0% to 36.0%	maintained
(1) Includes units abroad ex Latin America; (2) Includes financial guarantees provided and corporate securities; (3) Composed of result from loan losses, impairment and discounts granted; (4) commissions and fees (+) income from insurance, pension plan and premium bonds operations (-) expenses for claims (-) insurance, pension plan and premium bonds selling expenses.

It's worth mentioning that the company considers, for management purposes, a cost of capital of around 13.0% per year.

Information on outlooks for the business, projections and operational and financial goals are solely forecasts, based on management's current outlook in relation to the future of Itaú Unibanco. These expectations are highly dependent on market conditions, general economic performance of the country, of the sector and the international markets. Therefore, our effective results and performance may differ from those forecasted in this prospective information.

São Paulo, August 2, 2021

Renato Lulia Jacob 
Group Head of Investor Relations and Marketing Intelligence

Contact:
Itaú Unibanco – Corporate Communication
(11) 5019-8880 / 8881 – imprensa@itau-unibanco.com.br

View original content:https://www.prnewswire.com/news-releases/itau-unibanco-holding-sa---material-fact-2021-revised-projections-301346597.html

SOURCE Itaú Unibanco Holding S.A.

FAQ

What are Itaú Unibanco's revised projections for 2021?

Itaú Unibanco revised its total credit portfolio growth to 5.5% to 9.5% and maintains its financial margins.

What is the expected financial margin with the market for Itaú Unibanco in 2021?

The financial margin with the market is projected to range from R$4.9 billion to R$6.4 billion.

What is Itaú Unibanco's cost of credit forecast for 2021?

The cost of credit is forecasted to be between R$21.3 billion and R$24.3 billion.

What is the effective tax rate forecast for Itaú Unibanco in 2021?

The effective tax rate is expected to be between 34.5% to 36.5%.