Brazil's Itau posts 8% rise in recurring profit, cuts fee and insurance outlook
ITUB•Loan income and credit quality
Itau's net interest income, its main source of revenue, increased 5.2% to 33.5 billion reais.
Total credit portfolio reached 1.5 trillion reais, rising about 10%, while the 90-day default ratio came in at 1.9%, stable year-on-year and from the first quarter.
Recurring profit rises, but below estimates
SAO PAULO, Aug. 4 (Reuters) - Brazilian lender Itau Unibanco posted on Tuesday an increase of about 8% in its second-quarter recurring net profit, while also cutting the yearly outlook for its fee and insurance segment.
Latin America's largest private bank by total assets, Itau Unibanco posted a recurring net profit of 12.41 billion reais ($2.42 billion) for the April-June quarter, compared with 12.53 billion reais expected by analysts polled by LSEG.
The lender reported a 24.3% return on equity, a gauge of profitability, up 1 percentage point from a year earlier.
Itau trims fee and insurance growth forecast
Additionally, Itau Unibanco cut its projection for fee revenue and insurance results this year, now estimating growth of 2% to 5%, versus a previously expected increase of 5% to 9%. It maintained all its other yearly projections.
