Red day for Itaú (ITUB4)? ADRs in NY plummet and call alert for results

The ADRs (deposit receipts) of the Itau (ITUB4) sank on the New York Stock Exchange, closing down 4%, and lighting up the yellow signal for the Ibovespa session next Wednesday (8).

This Tuesday, the bank reported a profit of R$ 7.66 billionup 7%, but below the BRL 8.2 billion expected by the consensus gathered by Bloomberg.

Even without naming the Americans (AMER3), the bank said it had reinforced the allowance for loan losses by 100%, generating an impact of BRL 719 million on the managerial recurring result.

Without this effect, the recurring result would have reached R$8.4 billion and the managerial recurring return on shareholders’ equity would have been 21% in the fourth quarter.

Altogether, the Americans has a debt of R$ 2.7 billion with the Itauwhich was pointed out as one of the least impacted by the retailer’s failure.

Last week, the Santander (SANB11) had reported earnings below analysts’ projections for the same reason.

João Abdouni, an analyst at Skopos Investimentos, points out that Itaú’s coverage ratio has dropped, that is, the bank is profiting and making less provisions, which opens a warning sign. Last year, the index was 241% and now it is 212%.

“Although it was a good result, a result below expectations”, he says.

Itaú projections

In addition to the results, Itaú disclosed guidance (projections) for 2023, with an expectation of growth of 6% to 9% in the financing portfolio, from 13.5% to 16.5% in the financial margin with customers, and of 7. 5% to 10.5% of revenues from fees and services.

In a report to clients and obtained by Reuters, the Citi led by Rafael Frade said that, given the worsening expectations of investors in recent weeks for the banking sector since the case Americanssees “the guidance aligned with the Itaú consensus as a good indicator, reaffirming good results even in a challenging year ahead”.