Brazil’s Itau Unibanco beats profit expectations, raises loan forecast
2022.08.09 01:17
FILE PHOTO: A man is reflected in an Itau branch window in Rio de Janeiro, Brazil April 29, 2019. REUTERS/Sergio Moraes
SAO PAULO (Reuters) -Itau Unibanco on Monday substantially raised its loan growth forecast for this year even as it boosted provisioning for bad credits, reflecting higher Brazilian interest rates.
Brazil’s largest lender said its loan book is likely to grow between 15.5% and 17.5% this year, above a previous estimate of 9%-12%.
Its 2022 cost of credit, which is mainly composed of cash set aside for loans likely to default, is now seen in the range of 28-31 billion reais, up from the previous forecast of between 25 and 29 billion reais.
The bank said its second-quarter recurring net profit rose 17.4% from the previous year to 7.67 billion reais ($1.50 billion), beating analyst expectations of 7.48 billion reais, compiled by Refinitiv.
($1 = 5.1110 reais)
