Boston, MA 05/20/2014 (wallstreetpr) – Itau Unibanco Holding SA (ADR) (NYSE:ITUB) is a Brazil-based holding company that operates the largest Bank in the country. The company boasts about $84 billion in market cap. Although Brazil’s economy faces many challenges especially in a politically charged environment, ITUB has not been known to disappoint even when situations are tough.
As such, investors can count on ITUB to overcome whatever challenges might be lying around in the market. A look at the company’s most recent performance puts to rest any doubts that investors might have over its ability to perform positively even when the market looks negative.
The company reported 1Q2014 financial results that showed significant improvement from the past seasons. It reported operating revenue of R$20.7 billion or $8.7 billion for the quarter. That showed a 10 percent boost over the revenue generated in the same period a year earlier. On the profits front, the company registered a profit of r$4.5 billion or $1.90 billion for the quarter, suggesting an improvement of 29 percent on a year-over-year basis.
Where diversification lends support
Itau Unibanco Holding SA (ADR) (NYSE:ITUB) is not only a big international player in the banking industry, but it also provides a wide range of financial services. Its presence in many markets at the same time is a source of strength that has often supported positive earnings in that when one segment struggles, another one is always there to offset the negative impact. The company plays in banking and financial grounds that include asset management, insurance, retail banking, corporate banking and investment banking.
Loan book growth
Itau Unibanco Holding SA (ADR) (NYSE:ITUB) benefited in the recent quarter because of the growth in its loan book at the commercial and individual levels. It benefited from the rising borrowing costs and a curb on loan losses. The company also observed friendly loan environment that brought many borrowers to its doorsteps. It expects borrowing activities to remain strong in the balance of 2014 and beyond.
Improving profitability
Improving profitability for the long haul remains a key agenda at Itau Unibanco Holding SA (ADR) (NYSE:ITUB). In addition to pursuing revenue growth, the company continues to undertake cost-saving initiates to support bottom-line growth. Its 1Q2014 benefited from aggressive cost-reduction efforts, and the company expects to continue its austerity measures to maximize shareholder value.
