Brazil Q3 Earnings Point to Broad Rebound as One-Offs Distort Some Bottom Lines

Overview

• Itaú Unibanco posted a record net income of about R$ 11.8 billion, driven by credit growth and higher service and insurance revenue, and raised its financial margin outlook.
• Axia Energia reported a consolidated net loss of R$ 5.45 billion after booking a R$ 7.2 billion expense tied to the Eletronuclear sale, while approving R$ 4.3 billion in interim dividends.
• Mining and industrial results strengthened: CSN Mineração’s profit rose 56% to R$ 696 million on record shipments and iron ore above US$100/ton, and CSN returned to a R$ 76 million profit with operational gains and favorable FX effects.
• Retail showed selective improvement as GPA swung to a R$ 133 million profit largely from R$ 418 million in recognized tax credits, and C&A’s net income rose 62% to R$ 69.5 million following the end of its Bradescard JV.
• Upstream oil was mixed, with Prio’s profit falling 44% on Peregrino downtime and higher lifting costs, while Brava set a production record but reported sharply lower profit due to financing-related accounting effects.