Itaúsa Boosts Profits by 22%, Plans R$1.4 Billion Shareholder Payout

Itaúsa, one of Brazil’s largest investment holding companies, holds significant stakes in key sectors like finance, energy, and industrials.

This company plays a crucial role in Brazil’s economic landscape. The firm recorded a recurring net profit of R$3.63 billion ($660 million) in Q2 2024.

This result marks a 22.4% increase compared to the same period in 2023. The company recently released its financial statement detailing this performance.

Strong portfolio performance, particularly from Itaú Unibanco, drove this profit growth. A strategic approach to debt management also contributed significantly.

The company’s Return on Equity (ROE) reached 17.7% this quarter. This figure represents an increase of 1.9 percentage points year-over-year.

Additionally, total assets grew by 4.4%, reaching R$92.27 billion ($16.78 billion).

Meanwhile, net indebtedness saw a significant reduction, falling 70.1% to R$833 million ($151.5 million).

In a move to reward shareholders, Itaúsa announced a distribution of R$1.4 billion ($254.5 million) in interest on equity.

This payout is scheduled for August 30. The sum includes R$830 million ($150.9 million) declared in June. Additionally, an extra R$615 million ($111.8 million) was declared in March.

Itaúsa took further financial steps in July by refinancing its third issuance of debentures. The company issued a seventh debenture, totaling R$1.3 billion ($236.4 million).

This strategy aims to lower the average debt cost and extend maturity. It also eliminates obligations maturing before 2028.

Itaúsa Boosts Profits by 22%, Plans R$1.4 Billion Shareholder Payout

Standard & Poor’s Global recognized Itaúsa’s financial strength by awarding a national-scale rating of AAA (Triple A).

This rating, given in July, is the highest risk classification granted by credit agencies. Itaúsa’s CEO, Alfredo Setubal, reflected on these achievements.

He highlighted the solid performance of their portfolio and the success of their debt management strategy.

He remains confident in their ability to create value for shareholders and society at large.

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