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Itau Unibanco Banco Holding Sa (ITUB)
NYSE:ITUB
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Itau Unibanco
(NYSE:ITUB)
Rating:76Outperform
Price Target:―
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
$68.58B
Dividend Yield5.13%
Average Volume (3M)29.96M
Price to Earnings (P/E)9.7
Beta (1Y)0.57
Revenue Growth-7.01%
EPS Growth15.18%
CountryUS
Employees99,600
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.18
Shares Outstanding5,330,429,700
10 Day Avg. Volume36,731,167
30 Day Avg. Volume29,960,318
Financial Highlights & Ratios
PEG Ratio2.33
Price to Book (P/B)1.92
Price to Sales (P/S)0.00
P/FCF Ratio-25.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside-9.77% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 primarily through interest income from loans and advances to customers, which is a significant component of its income. The bank also earns through fees and commissions from services like asset management, insurance, and credit card operations. Additionally, income from trading and investment banking activities, such as underwriting and advisory services, contributes to its earnings. Itaú Unibanco benefits from its expansive retail network and digital platforms, enhancing its ability to cross-sell products and maintain customer loyalty. Strategic partnerships and investments in technology further bolster its operational efficiency and competitive positioning in the financial services industry.
Itau Unibanco Financial Statement Overview
Summary
Itau Unibanco has shown robust revenue and profitability growth, with improved leverage and shareholder returns. However, the negative cash flow in 2024 presents a significant risk.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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 135.74B | 124.53B | 138.60B | 121.83B | 94.68B | Gross Profit |
| 135.74B | 124.53B | 138.60B | 121.83B | 94.68B | EBIT |
| 56.32B | 51.51B | 175.01B | 40.61B | 9.06B | EBITDA |
| 0.00 | 44.43B | 0.00 | 45.30B | 8.89B | Net Income Common Stockholders |
| 41.09B | 33.10B | 29.21B | 26.76B | 15.06B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 46.21B | 40.58B | 331.77B | 324.67B | 301.91B | Total Assets |
| 2.85T | 2.54T | 2.32T | 2.07T | 2.02T | Total Debt |
| 516.84B | 451.83B | 427.96B | 321.22B | 299.56B | Net Debt |
| 274.93B | 223.42B | 217.24B | 102.17B | 107.59B | Total Liabilities |
| 2.63T | 2.34T | 2.15T | 1.90T | 1.86T | Stockholders Equity |
| 211.09B | 190.18B | 167.95B | 152.86B | 142.99B |
| Cash Flow | Free Cash Flow | |||
| -98.15B | 68.30B | 121.47B | 51.02B | 54.18B | Operating Cash Flow |
| -96.32B | 77.49B | 129.97B | 60.11B | 59.49B | Investing Cash Flow |
| 6.97B | -31.23B | -73.60B | -4.84B | 753.00M | Financing Cash Flow |
| 81.69B | 57.47B | -31.71B | -31.46B | 288.39B |
Itau Unibanco Technical Analysis
Positive
6.65
Price Trends
5.89
Positive
5.37
Positive
5.32
Positive
Market Momentum
0.26
Negative
66.16
Neutral
79.04
Neutral
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 6.65 is above the 20-day moving average (MA) of 6.40, above the 50-day MA of 5.89, and above the 200-day MA of 5.32, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 66.16 is Neutral, neither overbought nor oversold. The STOCH value of 79.04 is Neutral, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $15.64B | 11.99 | 23.88% | 5.06% | -16.96% | -10.73% | |
77 Outperform | $11.12B | 12.24 | 15.99% | 14.69% | -0.15% | 8.78% | |
76 Outperform | $68.58B | 9.69 | 20.65% | 5.13% | -7.01% | 15.18% | |
73 Outperform | $11.84B | 13.18 | 16.05% | 3.92% | -22.63% | 32.31% | |
70 Outperform | $27.16B | 8.86 | 10.61% | 1.07% | -8.55% | 13.58% | |
70 Outperform | $20.28B | 16.64 | 10.89% | 3.86% | -3.94% | 31.52% | |
64 Neutral | $12.78B | 9.87 | 7.67% | 17015.06% | 12.34% | -5.99% |
* Financial Sector Average
Performance Comparison
ITUB
Itau Unibanco
6.65
1.34
25.24%
BBD
Banco Bradesco SA
2.74
0.38
16.10%
BCH
Banco De Chile
31.27
8.17
35.37%
BSBR
Banco Santander Brasil
5.26
0.06
1.15%
BSAC
Banco Santander Chile
25.20
6.30
33.33%
CIB
Bancolombia
41.22
11.18
37.22%
Itau Unibanco Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: 6.91%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and growth across various segments, with notable achievements in profitability and ESG initiatives. However, it also acknowledged challenges in loan migration, competition, and the impact of FX rates on loan growth.Q4-2024 Updates
Positive Updates
Record Earnings and Profitability
The bank closed 2024 with an annual profit of BRL41.4 billion, showing a strong growth of 18.2% year-over-year. The consolidated ROE reached 22.1% and 23.4% in Brazil.
Loan Portfolio Expansion
The loan portfolio grew to BRL1.359 trillion, a 15.5% increase over December 2023. This growth was achieved with improved credit quality, reducing long-term NPL by 0.5 percentage points compared to December 2023.
Strong Performance in Financial Margin with Clients
Financial margin with clients grew 8.3% year-over-year, reaching BRL108 billion in 2024.
Dividend and Share Buyback Program
An additional distribution of BRL18 billion was announced, including BRL15 billion in dividends and interest on capital, and BRL3 billion in share buybacks.
Recognition and Achievements
The bank was recognized as a Value Company of the Year and made significant progress in ESG initiatives, increasing its commitments in sustainable finance.
Improved Credit Quality
The cost of credit decreased from BRL36.9 billion in 2023 to BRL34.5 billion in 2024, with a reduction in NPL indicators.
Negative Updates
Challenges in Loan Migration
The One Itau project aimed to migrate 15 million clients, but only 5.3 million were migrated by the end of 2024, with the remaining expected to complete in 2025.
Impact of FX Rate on Loan Growth
A significant portion of the loan portfolio growth is attributed to FX rate effects, which led to exceeding the guidance upper range.
Moderate Growth in Investment Banking
Despite record-breaking performance in 2024, a decrease of 30% to 40% in capital market volumes is expected for 2025.
High Competition in the Market
Increased competition, especially in the high-income segment, was noted as a challenge for maintaining growth and margins.
Company Guidance
During the earnings call, guidance for 2025 was provided with several key financial metrics outlined. The company expects loan portfolio growth to range between 4.5% and 8.5%, while the financial margin with clients is anticipated to increase from 7.5% to 11.5%. The financial margin with the market is projected to be between BRL1 billion and BRL3 billion. Non-interest expenses are expected to grow from 5.5% to 8.5%. Credit cost is projected to nominally range from BRL34.5 billion to BRL38.5 billion, and the effective tax rate is expected to be between 27% and 29%. The guidance included expectations of a 2.2% GDP growth, a year-end SELIC rate of 15.75%, and inflation at 5.8% for 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.