Itaúsa Delivers 16% Growth in Q4 2024 Profits, Banking Strength Offsets Non-Financial Struggles

Itaúsa, the investment holding company that controls part of Itaú Unibanco, achieved a recurring net income of R$3.679 billion ($613.2 million) in the fourth quarter of 2024. This represents a 16% increase compared to the same period last year.

The company’s strong performance stemmed primarily from Itaú Unibanco’s robust results. The banking giant contributed R$3.965 billion ($660.8 million) to Itaúsa’s bottom line, marking a 22% year-over-year growth.

Administrative expenses also decreased by 8% to R$46 million ($7.7 million), further boosting profitability. However, investments outside the financial sector showed disappointing results.

Aegea, a sanitation company, saw its contribution plummet 93% to just R$2 million. Both Dexco and NTS recorded negative results during the quarter, partially offsetting gains from the banking segment.

For the full year 2024, Itaúsa posted a recurring net income of R$14.780 billion ($2.463 billion), up 21.5% from 2023. The company’s return on equity reached 16.6%, representing a one percentage point increase from the previous year.

Itaúsa’s 2024 Financial Performance

Itaúsa’s balance sheet showed total assets of R$99.125 billion ($16.521 billion) and shareholders’ equity of R$90.443 billion ($15.074 billion), growing 10.3% and 9% respectively. Net debt rose to R$1.052 billion ($175.3 million), a 61.3% increase compared to end-2023.

Alfredo Setubal, Itaúsa‘s CEO, highlighted the company’s successful liability management strategy. “2024 saw growing portfolio results and better financial performance due to our debt management initiative started in late 2022,” he stated.

The company improved its debt profile by issuing R$1.3 billion ($216.7 million) in debentures. This strategic move reduced average debt costs to CDI + 1.54% annually and extended maturity from 6 to 6.6 years. Principal repayments now start in 2029 rather than 2028.

Despite challenges in non-financial investments, Itaúsa’s diversified portfolio continues to deliver strong overall returns. The holding company maintains its position as a key player in Brazil’s financial and industrial landscape through strategic investments across multiple sectors.

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