By Andre Romani
SAO PAULO (Reuters) -Brazil’s Itau Unibanco, Latin America’s largest non-public lender, on Monday bumped up its estimated portfolio progress for the 12 months after logging an 18% improve in its third-quarter internet recurring revenue.
Itau reported a ten.68 billion actual ($1.84 billion) internet recurring revenue for the quarter resulted in September, beating an estimate of 10.4 billion reais from analysts polled by LSEG.
Itau mentioned it now expects its whole credit score portfolio to develop between 9.5% and 12.5%, up from a earlier estimate 6.5% to 9.5% progress.
Itau administration has beforehand mentioned the financial institution was near wrapping up an overhaul of its private credit score section by slicing again on loans prone to go unpaid.
That has raised analysts’ expectations for coming quarters, as Itau might begin to ship greater portfolio progress as soon as the method is wrapped up.
“It is very important point out the resumption of the expansion of the bank card portfolio,” Itau mentioned within the earnings report, noting it grew 1.7% sequentially because the financial institution in the reduction of on dangerous shoppers.
The financial institution’s over 90-day delinquency charge inched right down to 2.6% from 2.7% the earlier quarter, and was additionally beneath the three% a 12 months earlier.
Analysts at Citi referred to as the outcomes “strong,” nodding towards the bumped-up mortgage progress steerage.
The brand new outlook “exhibits the advantages of (Itau’s) ample capital place and an opportunistic strategy to achieve share and be selective with shoppers,” they wrote in a notice to shoppers.
Itau’s return on fairness, a gauge of profitability, stood at 22.7%, up from 21.1% a 12 months earlier, and 22.4% within the second quarter.
The lender posted an 8.5% year-on-year improve in its internet curiosity revenue, its most important income, whereas its value of credit score fell 11% on decrease provisions.
Itau logged a 500 million actual acquire from a big shopper, it mentioned, with out naming them.
Analysts had anticipated a possible acquire for Itau as Brazilian retailer Americanas began to pay collectors to the bankrupt division retailer large.
($1 = 5.7916 reais)
