Itaú Unibanco Holding S.A.: Material Fact: 2022 Projections

Rhea-AI Summary

Itaú Unibanco Holding S.A. has announced its financial projections for 2022, outlining key measures for its operations. The total credit portfolio is targeted to grow between 9.0% and 12.0%, while the financial margin with clients is expected between 20.5% and 23.5%. Non-interest expenses are projected to rise by 3.0% to 7.0%. The effective tax rate will range from 30.0% to 33.0%. Overall, sustainable Return on Equity (ROE) is anticipated around 20%. These forecasts are contingent on market conditions and may differ from actual results.

Positive

• Total credit portfolio growth projected between 9.0% and 12.0%.
• Financial margin with clients expected to be between 20.5% and 23.5%.
• Sustainable ROE targeted at around 20%.

Negative

• Non-interest expenses forecasted to increase by 3.0% to 7.0%.
• Effective tax rate anticipated between 30.0% and 33.0%.

SÃO PAULO, Feb. 10, 2022 /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 2022 in accordance with the provision in item 11 ("Projections") of the Reference Form.

	Consolidated	Brazil1
total credit portfolio2	between 9.0% and 12.0%	between 11.5% and 14.5%
financial margin with clients	between 20.5% and 23.5%	between 22.0% and 25.0%
financial margin with the market	between R$1.0 bn and R$3.0 bn	between R$0.3 bn and R$2.3 bn	the hedge of the capital ratio with an impact of approximately R$2 billion
cost of credit3	between R$25.0 bn and R$29.0 bn	between R$23.0 bn and R$27.0 bn
commissions and fees and results from insurance operations4	between 3.5% and 6.5%	between 4.0% and 7.0%	considers the adjusted 2021 result excluding participation in XP  Inc.
non-interest expenses	between 3.0% and 7.0%	between 3.0% and 7.0%	efficiency ratio in Brazil below 40% in 4Q22. Core cost nominally stable in 2022
effective tax rate	between 30.0% and 33.0%	between 31.0% and 34.0%
recurring managerial ROE	-	-	sustainable ROE around 20%
capital	-	-	tier I capital above risk appetite

(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 14.0% 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 10, 2022

Renato Lulia Jacob

Group Head of Investor Relations and Marketing Intelligence

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-2022-projections-301480372.html

SOURCE Itaú Unibanco Holding S.A.

FAQ

What is the total credit portfolio growth projection for ITUB in 2022?

The total credit portfolio is projected to grow between 9.0% and 12.0%.

What is the expected financial margin with clients for ITUB in 2022?

The financial margin with clients is expected to be between 20.5% and 23.5%.

What is Itaú Unibanco's projected sustainable ROE for 2022?

Itaú Unibanco targets a sustainable ROE around 20%.

What are the projections for non-interest expenses for ITUB in 2022?

Non-interest expenses are forecasted to increase by 3.0% to 7.0%.

What is the anticipated effective tax rate for ITUB in 2022?

The effective tax rate is anticipated to range between 30.0% and 33.0%.