SAO PAULO, May 3 (Reuters) - Brazil's biggest lender, Itau
Unibanco Holding SA, on Monday reported
better-than-expected first-quarter profit, as loan-loss
provisions for bad loans fell and trading gains rose.
Recurring net income, which excludes one-off items, came in
at 6.398 billion reais , more than 11% above an
estimate of 5.753 billion reais compiled by Reuters and 63.6%
above results of a year earlier.
Provisions fell by 59.2% from last year, when Itau set aside
billions of reais to cover potential losses stemming from the
The decline in provisions indicates that the bank believes
the brutal second of wave of pandemic that Brazil is undergoing
will not lead to a further deterioration in asset quality in the
Its 90-day default ratio remained stable at 2.3%, despite a
higher loan delinquency with small companies.
The lender's net interest income also rose by 4.7% from a
year earlier, to 18.634 billion reais, driven by trading gains
as results with clients dropped.
Return on equity climbed to 18.5% from 12.8% a year ago, and
also above the previous quarter.
($1 = 5.4395 reais)
(Reporting by Carolina Mandl/ Editing by Leslie Adler and Sam