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• Recurring Managerial Result: BRL11.1 billion, a 2.2% growth quarter-over-quarter and nearly 14% year-over-year.

• Return on Equity (ROE): 22.5% consolidated, 23.7% in Brazil, and 24.4% on a consolidated basis adjusted by risk appetite capital.

• EBIT: BRL16.7 billion, a 6.5% increase quarter-over-quarter and 16% year-over-year.

• Margin with Clients: BRL29.4 billion, a 3% increase quarter-over-quarter and nearly 14% year-over-year.

• Efficiency Ratio: 36% in Brazil, 38.1% consolidated, the lowest in the bank's history.

• CET1 Ratio: 12.6%, after absorbing regulatory impacts and dividend payments.

• Individuals Loan Book Growth: 8.6% driven by credit cards, personal loans, vehicle financing, and mortgage.

• SME Credit Portfolio Growth: 17.7%.

• Large Corporate Loan Book Growth: 13%.

• Cost of Credit: BRL9 billion, with a cost of credit over the total loan book at 2.6%.

• NII with Clients: BRL4.0 billion from working capital, with a positive impact of BRL300 million from higher volume.

• NII with Market: BRL900 million, with BRL1.2 billion in Brazil and BRL200 million in Latin America.

• Noninterest Expenses Growth: 8.2% in Brazil, 9.8% including Latin America.

• Warning! GuruFocus has detected 6 Warning Signs with ITUB.

Release Date: May 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Itau Unibanco Holding SA (NYSE:ITUB) reported a recurring managerial result of BRL11.1 billion, marking a 2.2% growth compared to the previous quarter and nearly 14% year-over-year growth.

• The company achieved a return on equity (ROE) of 22.5% on a consolidated basis and 23.7% in Brazil, with both indicators showing growth on a quarterly and annual basis.

• Itau Unibanco Holding SA (NYSE:ITUB) delivered the lowest efficiency ratio in its history at 36% in Brazil, indicating improved operational efficiency.

• The credit portfolio showed growth, with the individuals loan book increasing by 8.6%, the SME credit portfolio by 17.7%, and the large corporate loan book by 13%.

• The company maintained a strong capital base with a CET1 ratio of 12.6%, despite absorbing regulatory impacts and paying additional dividends.

Negative Points

• The SME loan book posted a drop of 2% in the quarter, and the large corporate portfolio dropped 1.8%, indicating some challenges in these segments.

• The payroll loan origination for INSS beneficiaries has reduced due to the interest cap, affecting the growth in this segment.

• The cost of credit reached BRL9 billion, with a cost of credit over the total loan book at 2.6%, indicating ongoing credit risk management challenges.

• The financial margin with the market may face pressure due to expected increases in the capital ratio hedge cost over the next few quarters.

• There is a potential risk of normalization in the SME delinquency ratio, which could return to higher levels observed in previous quarters.