Itaú Unibanco Holding S.A. - Projections 2021

Rhea-AI Summary

Itaú Unibanco announced its 2021 projections, predicting a 5.5% to 9.5% growth in total credit portfolio and a 2.5% to 6.5% increase in financial margin with clients. The financial margin with the market is expected between R$4.9 billion and R$6.4 billion, while the cost of credit is projected to range from R$21.3 billion to R$24.3 billion. Commissions and fees will also grow 2.5% to 6.5%. Non-interest expenses may vary from -2.0% to 2.0%, and the effective tax rate is estimated to be between 34.5% and 36.5%.

Positive

• Credit portfolio projected to grow 5.5% to 9.5%.
• Financial margin with clients expected to increase by 2.5% to 6.5%.
• Financial margin with the market projected between R$4.9 billion and R$6.4 billion.
• Commissions and fees anticipated to grow by 2.5% to 6.5%.

Negative

• Cost of credit forecasted at R$21.3 billion to R$24.3 billion.
• Non-interest expenses projected to range from -2.0% to 2.0%, indicating possible cost control challenges.

SÃO PAULO, Feb. 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 announced its projections for the year 2021 in accordance with the provision in item 11 ("Projections") of the Reference Form.

	Consolidated 2021 Guidance	Brazil¹ 2021 Guidance
Total credit portfolio2	Growing 5.5% to 9.5%	Growing  8.5% to 12.5%
Financial margin with clients	Growing 2.5% to 6.5%	Growing  3.0% to 7.0%
Financial margin with the market	Range from R$4.9 bn to R$6.4 bn	Range from R$3.3 bn to R$4.8 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
Commissions and fees and results from insurance operations4,5	Growing 2.5% to 6.5%	Growing 2.5% to 6.5%
Non-Interest expenses	Range from -2.0% to 2.0%	Range from -2.0% to 2.0%
Effective tax rate	Range from 34.5% to 36.5%	Range from 34.0% to 36.0%

(1) Includes units abroad ex-Latin America; (2) Includes financial guarantees provided and corporate securities;(3) Includes 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; (5) 2021 guidance does not consider XP Inc. equity result starting in February 2021.

It is noteworthy mentioning, currently, 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, February 2, 2021

Renato Lulia Jacob
Group Head of Investor Relations and Marketing Intelligence

 

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SOURCE Itaú Unibanco Holding S.A.

FAQ

What are Itaú Unibanco's 2021 projections?

Itaú Unibanco projects a credit portfolio growth of 5.5% to 9.5% and a financial margin with clients to rise by 2.5% to 6.5%.

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

The financial margin with the market is anticipated to be between R$4.9 billion and R$6.4 billion.

What are the commissions and fees growth projections for Itaú Unibanco in 2021?

Commissions and fees are projected to grow by 2.5% to 6.5% in 2021.

What are the anticipated non-interest expenses for Itaú Unibanco in 2021?

Non-interest expenses are expected to range from -2.0% to 2.0%.

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

The effective tax rate for 2021 is projected to be between 34.5% and 36.5%.