Education
About Us
Working with TipRanks
Follow Us
Itau Unibanco Banco Holding Sa (ITUB)
NYSE:ITUB
Top Page
Itau Unibanco
(NYSE:ITUB)
Rating:73Outperform
Price Target:
$7.50
â–²(5.04% Upside)
Positive Factors
Capital Distribution
The management announced additional capital distribution of R$18bn, which includes R$15bn in dividends and R$3bn for share buyback.
Financial Performance
The company delivered a net income growth of 16% and a return on equity of 22.2%.
Loan Growth
Loan growth accelerated for the third consecutive quarter, driven by stronger growth in credit to consumers and SMEs.
Negative Factors
Fee Growth
Fee growth decelerated to 5% year-over-year, influenced by declining current account tariffs and deceleration of credit card fees.
Net Interest Income
Market net interest income fell by 14% quarter-on-quarter, negatively impacted by lower trading gains and the widening of the yield curve.
Itau Unibanco (ITUB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$72.12B
Dividend Yield6.79%
Average Volume (3M)29.14M
Price to Earnings (P/E)10.1
Beta (1Y)0.60
Revenue Growth5.44%
EPS Growth2.81%
CountryUS
Employees99,600
SectorFinancial
Sector Strength78
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.19
Shares Outstanding5,330,429,700
10 Day Avg. Volume28,121,747
30 Day Avg. Volume29,143,611
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)1.44
Price to Sales (P/S)0.93
P/FCF Ratio-3.09
Enterprise Value/Market Cap2.95
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit1.66
Enterprise Value/Ebitda3.88
Forecast
1Y Price Target
$7.30Price Target Upside2.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Itau Unibanco Business Overview & Revenue Model
Company DescriptionItaú Unibanco Holding S.A. offers a range of financial products and services to individuals and corporate customers in Brazil and internationally. The company operates through three segments: Retail Banking, Wholesale Banking, and Activities with the Market and Corporation. It offers various deposit products, as well as loans and credit cards; investment and commercial banking services; real estate lending services; financing and investment services; and leasing and foreign exchange services. The company also provides property and casualty insurance products covering loss, damage, or liabilities for assets or persons, as well as life insurance products covering death and personal accident; and reinsurance products. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and small companies. The company was formerly known as Itaú Unibanco Banco Múltiplo S.A. and changed its name to Itaú Unibanco Holding S.A. in April 2009. The company was incorporated in 1924 and is headquartered in São Paulo, Brazil. Itaú Unibanco Holding S.A. is a subsidiary of IUPAR - Itaú Unibanco Participações S.A.
How the Company Makes MoneyItaú Unibanco generates revenue through multiple streams, primarily from interest income derived from loans and credit products, which constitute a significant portion of their earnings. The bank charges interest on various types of loans, including personal loans, mortgages, and business financing. Additionally, Itaú earns fees from services such as credit card transactions, account maintenance, and investment management. The bank also benefits from asset management services, where it charges management fees on funds and portfolios it administers. Furthermore, Itaú Unibanco engages in capital markets activities, including underwriting and advisory services, contributing to its revenue. Significant partnerships, such as those with fintech companies and other financial institutions, enhance its service offerings and customer reach, thereby supporting its overall earnings potential.
Itau Unibanco Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance with significant net income and ROE growth, controlled delinquency rates, and successful strategic initiatives like One Itau. However, challenges were noted in specific segments such as payroll loans and advisory & brokerage services, and there was an upward revision in the effective tax rate guidance.Q2-2025 Updates
Positive Updates
Strong Net Income Growth
The company delivered net income of BRL 11.5 billion, representing a 3.4% increase over the previous quarter and a 14.3% increase year-over-year.
Robust ROE Performance
Consolidated ROE reached 23.3%, expanding both quarter-over-quarter and year-over-year. In Brazil, ROE was 24.4%.
NII and NIM Expansion
NII with clients grew 3.1% over the previous quarter and 15.4% year-over-year. NIM expanded to 9.2% on a consolidated basis and 10% in Brazil.
Controlled Delinquency Rates
Consolidated NPL over 90 days stood at 1.9% and 2.0% in Brazil, stable quarter-over-quarter and down year-over-year.
Loan Portfolio Growth
The individual loan book grew 8.0% year-over-year and 0.7% in the quarter, with a notable 1.6% quarterly increase in credit card loans.
Successful One Itau Initiative
Over 10 million clients have migrated to the One Itau platform with a 99.3% conversion rate and an NPS of 80.
Strong Asset Management and Insurance Performance
Asset management revenues increased by 17.5% annually, and insurance, pension, and capitalization businesses grew 8.8% in the quarter and 17.3% year-over-year.
Negative Updates
Underperformance in Payroll Loans
Payroll loans underperformed due to multiple factors, including cap on interest rates and process changes in originations.
Decline in Advisory & Brokerage Services
Revenues declined both quarter-over-quarter and year-over-year, mainly explained by lower DCM activities.
Higher Effective Tax Rate
Due to higher earnings, the effective tax rate guidance was revised upward from 27%-29% to 28.5%-30.5%.
Company Guidance
During the second quarter of 2025 earnings call, the bank provided an update on its guidance with several key metrics. The recurring managerial net income increased to BRL 11.5 billion, showing a 3.4% rise from the previous quarter and a 14.3% year-over-year increase. Consequently, the consolidated return on equity (ROE) reached 23.3%, while in Brazil, it was 24.4%. The net interest income (NII) with clients grew by 3.1% quarter-over-quarter and 15.4% year-over-year. The net interest margin (NIM) expanded to 9.2% on a consolidated basis and 10% in Brazil. Delinquency rates were stable, with the non-performing loans (NPL) over 90 days at 1.9% consolidated and 2.0% in Brazil. The common equity Tier 1 ratio increased by 50 basis points quarter-over-quarter, reaching 13.1%. The loan portfolio recorded a 0.4% growth in the quarter, or 1.3% excluding FX impacts. The individual loan book grew 8.0% year-over-year with notable contributions from credit card loans. Despite challenges, sectors like mortgage loans and SMEs showed positive growth. The bank updated its guidance for 2025, increasing the expected growth range for NII with clients from 7.5%-11.5% to 11%-14%, while adjusting the effective tax rate to 28.5%-30.5%.Itau Unibanco Financial Statement Overview
Summary
Itau Unibanco has demonstrated strong revenue growth and improved profitability with a solid net profit margin and shareholder returns. However, the negative cash flow in 2024 poses a risk to long-term sustainability.Income Statement
Itau Unibanco demonstrated strong revenue growth, with a significant increase from 2023 to 2024. The net profit margin improved alongside a healthy EBIT margin, indicating efficient cost management. However, the absence of EBITDA in 2024 limits a full analysis of operational performance.80
Positive
Balance Sheet
The company's debt-to-equity ratio has improved, showing a decrease in leverage compared to previous years. The equity ratio remains stable, and return on equity has shown positive trends, reflecting strong shareholder value creation. However, the substantial total debt remains a point of concern.75
Positive
Cash Flow
The cash flow analysis indicates a challenging year with negative free cash flow in 2024 and a significant drop in operating cash flow. Despite this, the historical trend shows strong cash generation capabilities, which may help in future recovery.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 338.83B | 325.85B | 306.63B | 253.12B | 191.49B | 173.58B |
| Gross Profit | 127.74B | 129.10B | 116.82B | 108.23B | 108.18B | 75.57B |
| EBITDA | 54.79B | 54.00B | 45.35B | 41.49B | 46.46B | 8.96B |
| Net Income | 41.78B | 41.09B | 33.10B | 29.21B | 26.76B | 18.90B |
Balance Sheet | ||||||
| Total Assets | 2.80T | 2.85T | 2.54T | 2.32T | 2.07T | 2.02T |
| Cash, Cash Equivalents and Short-Term Investments | 285.73B | 637.43B | 615.43B | 577.22B | 517.40B | 570.11B |
| Total Debt | 905.31B | 905.63B | 814.62B | 721.40B | 574.07B | 577.99B |
| Total Liabilities | 2.59T | 2.63T | 2.34T | 2.14T | 1.90T | 1.86T |
| Stockholders Equity | 201.14B | 211.09B | 190.18B | 167.72B | 152.86B | 142.99B |
Cash Flow | ||||||
| Free Cash Flow | -42.22B | -98.15B | 68.30B | 121.47B | 51.02B | 54.18B |
| Operating Cash Flow | -34.55B | -96.32B | 77.49B | 129.97B | 60.11B | 59.49B |
| Investing Cash Flow | -52.70B | 6.97B | -31.23B | -73.60B | -4.84B | 753.00M |
| Financing Cash Flow | 60.39B | 81.69B | 57.47B | -31.71B | -31.46B | 288.39B |
Itau Unibanco Technical Analysis
Positive
7.14
Price Trends
6.59
Positive
6.40
Positive
5.64
Positive
Market Momentum
0.14
Negative
66.58
Neutral
87.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITUB, the sentiment is Positive. The current price of 7.14 is above the 20-day moving average (MA) of 6.81, above the 50-day MA of 6.59, and above the 200-day MA of 5.64, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 66.58 is Neutral, neither overbought nor oversold. The STOCH value of 87.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITUB.
Itau Unibanco Risk Analysis
Itau Unibanco disclosed 50 risk factors in its most recent earnings report. Itau Unibanco reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Itau Unibanco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $11.33B | 10.11 | 24.13% | 5.53% | 12.43% | 56.30% | |
74 Outperform | $30.50B | 7.83 | 11.76% | 1.64% | -4.58% | 38.70% | |
73 Outperform | $14.46B | 11.32 | 22.07% | 7.32% | -13.16% | -8.10% | |
73 Outperform | $72.12B | 10.12 | 20.49% | 6.79% | 5.44% | 2.81% | |
71 Outperform | $30.53B | 9.10 | 11.76% | 1.90% | -4.58% | 39.03% | |
70 Outperform | $19.47B | 19.31 | 9.43% | 5.80% | -3.77% | -10.59% | |
68 Neutral | $17.90B | 11.86 | 10.29% | 3.72% | 9.74% | 1.66% |
* Financial Sector Average
Performance Comparison
ITUB
Itau Unibanco
7.14
1.65
30.05%
BBD
Banco Bradesco SA
3.11
0.48
18.25%
BCH
Banco De Chile
28.73
4.87
20.41%
BSBR
Banco Santander Brasil
5.30
-0.05
-0.93%
BSAC
Banco Santander Chile
24.04
4.52
23.16%
BBDO
Banco Bradesco
2.69
0.31
13.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.