Itau Unibanco Increases Growth Estimates

SAO PAULO (Reuters) – Brazil's Itau Unibanco, Latin America's largest private lender, has raised its estimated portfolio growth for the year following an 18% surge in its third-quarter net recurring profit.

The bank reported a 10.68 billion real ($1.84 billion) net recurring profit for the quarter ending in September, surpassing the analysts' estimate of 10.4 billion reais according to LSEG.

Itau now anticipates its total credit portfolio to grow between 9.5% and 12.5%, an increase from the previous forecast of 6.5% to 9.5% growth.

Management has indicated that they are nearing the completion of a two-year overhaul of their personal credit segment, which involved reducing loans to clients least likely to repay on time.

This development has led analysts to raise expectations for future quarters, as Itau is poised for higher portfolio growth after finishing this process.

Additionally, Itau's return on equity, a measure of profitability, rose to 22.7%, up from 21.1% a year earlier and 22.4% in the second quarter.

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