Itaú Unibanco Holding SA Q1 FY2024 earnings call

• De-risking Strategy: Reduced credit to less resilient segments, with credit card portfolio down 83% since Dec 2022, expected full reduction by end-Q3 2024. • Capital Markets: Strong performance with significant market share, ranked high in capital market rankings. • Client NIM: Excluding Argentina 2023 results, Q1 2024 client NIM grew 9.4% (R$2.2 billion additional margin). • Efficiency: Non-interest expenses up 6.4% YoY but 6.2% QoQ drop; core costs grew < inflation. • Itau Day: Invitation to Itau Day on June 19, 2024, to detail bank strategy.

The bank's earnings for Q1 2024 totaled R$9.8 billion, a 3.9% growth QoQ. Consolidated recurring return on equity was 21.9% (70bps QoQ growth), with Brazil at 22.7% (50bps QoQ growth). Cost of credit was R$8.8 billion, down 3.9% QoQ, with delinquency indicators stable. OpEx was R$14.4 billion, down 6.2% QoQ, and efficiency ratio was 38.3% (consolidated) and 36.8% (Brazil). Individual loans portfolio grew 2.6% YoY but -0.6% QoQ (seasonality). Personal loans +11.3% YoY, payroll flat, vehicle loans +1.7% QoQ, mortgage flat QoQ. SME's +1.9% QoQ, 10.2% YoY. Large corporates +9.3% YoY, 3.6% QoQ. Credit portfolio: Excluding FX, +5.6% YoY; including FX, +2.8% YoY.

• Credit Portfolio Growth: 2024 guidance 6.5%-9.5%, reaffirmed as de-risking nears completion. • Clients NII: Excluding Argentina, +9.4% YoY, comfortable with guidance. • Market NII: Consistent, no major highlights. • Cost of Credit: Third consecutive nominal decline, expected healthy indicators. • Non-interest Expenses: Excluding Argentina, +6.4% YoY, within guidance.

• Regulatory Uncertainties: Operational risk, IFRS 9, tax reform, basilea III, solo basis, etc. • Competitive Pressures: Digital banks with lower cost-income ratios and pricing pressures. • Capital Management: Uncertainties around regulatory changes impacting capital, potential impacts on dividends.

Q: About loan growth and competitive dynamics.

A: Milton discussed opportunities in all client segments, de-risking complete, and confidence in growth.

Q: About expenses and digital competition.

A: Milton and Alexsandro talked about digital transformation, core costs, and efficiency ratio goals.

Q: About dividends and regulatory items.

A: Milton discussed regulatory uncertainties, capital generation, and dividend expectations.

Q: About SME growth and Aqua project.

A: Milton talked about SME growth, Atlas project, and digital transformation.

Q: About profitability per segment.

A: Milton discussed retail recovery, wholesale profitability, and competitive pressures.

Q: About super app transformation.

A: Milton talked about the super app project and its transformational potential.

Q: About Latin America performance.

A: Milton discussed Latin America's performance, exit from Argentina, and profitability.

Q: About deposits and funding.

A: Milton talked about deposit growth, migration to treasury products, and client engagement.

Q: About bond and capital management.

A: Milton discussed bond call decisions and capital optimization.