Itau Unibanco Banco Holding SA American Depositary Shares (Each repstg 500 Preferred shares)
ITUB · NYSE
Next quarter
Expected to report Nov 3, 2026 — estimated from last year’s reporting date.
Consensus is $0.22 EPS for Sep 2026 across 2 estimates, ranging $0.22 to $0.22.
ITUB Jun 2026
- 4.55%
- +0.24%
- $0.22
- $0.21
- —
- —
Highlights
- Earnings: Recurring managerial result rose 1.0% quarter over quarter and 7.8% year over year to R$12.4 billion, while reported EPS of 0.21 missed the 0.22 consensus by 4.55%.
- Returns: Consolidated recurring managerial ROE was 24.3%, up 0.5 percentage points from the first quarter and 1.0 percentage point from a year earlier.
- Loan growth: The credit portfolio increased 2.7% from March and 9.6% from June 2025 to R$1,522.4 billion, led by 4.4% quarterly growth in corporate loans and 3.9% in mortgages.
- Client margin: Financial margin with clients reached R$32.6 billion, up 3.3% quarter over quarter and 5.1% year over year, supported by higher volumes and spread-sensitive operations.
- Credit quality: The 90-day non-performing loan ratio was 1.9%, unchanged from March, while quarterly cost of credit increased 1.9% to R$10.1 billion and was up 7.4% year over year.
- Fees and insurance: Commissions, fees and insurance income increased 0.4% sequentially and 3.6% year over year to R$14.1 billion; insurance, pension and capitalization income rose 8.7% year over year.
- Expenses: Non-interest expenses rose 3.3% sequentially and 3.1% year over year to R$16.7 billion, with the consolidated efficiency ratio at 37.4% versus 37.1% in the first quarter.
- Capital and outlook: CET1 increased to 12.3% from 12.0% in March, and Itaú maintained most 2026 guidance while narrowing cost-of-credit growth guidance to 2%-5% from 1.5%-5.5%.
Analysis
Itaú Unibanco delivered a modestly better quarter operationally but fell just short of earnings expectations. Reported EPS was 0.21 against consensus of 0.22, a 4.55% miss. Recurring managerial profit reached R$12.4 billion, up 1.0% from the prior quarter and 7.8% from the year-ago period, producing a 24.3% recurring managerial ROE. The result was driven chiefly by continued lending growth and a stronger client margin, partly offset by higher credit costs and expenses.
The defining feature of the print was balance-sheet momentum: total loans rose 2.7% sequentially and 9.6% year over year to R$1.52 trillion, with particularly strong corporate and mortgage growth. Financial margin with clients expanded 3.3% sequentially to R$32.6 billion, while fee and insurance revenue was broadly stable sequentially and 3.6% higher year over year. Credit remained controlled, with 90-day NPLs steady at 1.9%, although cost of credit rose 1.9% sequentially to R$10.1 billion. Expense growth of 3.3% pushed the efficiency ratio slightly higher. Management maintained the broader 2026 outlook and modestly tightened the cost-of-credit range.
Profit and returns
Itaú's recurring managerial result was R$12.407 billion in the second quarter, compared with R$12.282 billion in the first quarter and R$11.508 billion a year earlier. The 1.0% sequential and 7.8% annual increases translated into a 24.3% recurring managerial ROE, up from 23.8% in the first quarter and 23.3% in the second quarter of 2025. On the supplied market measure, EPS was R$0.21 versus the R$0.22 consensus.
- Operating income: Operating revenue increased 2.5% sequentially and 4.7% year over year to R$48.0 billion.
- Tax and minorities: Income tax and social contribution fell 2.5% year over year to R$5.0 billion, but minority interests rose 25.7% to R$377 million.
Loans and client margin
Credit expansion remained the main earnings support. The total portfolio, including private securities and financial guarantees, reached R$1,522.4 billion, up 2.7% from March and 9.6% from June 2025. Brazil grew 2.6% sequentially and 9.6% annually to R$1,269.4 billion, while Latin America rose 3.0% sequentially and 9.8% annually to R$253.0 billion.
- Growth mix: Corporate loans rose 4.4% sequentially and 10.1% year over year; mortgages increased 3.9% and 13.3%, respectively; payroll loans grew 3.5% and 11.7%.
- Client NII: Financial margin with clients increased to R$32.557 billion from R$31.506 billion in the first quarter and R$30.988 billion a year earlier. Management attributed the increase to average volumes, product mix and spread-sensitive operations.
- Origination: Itaú reported R$36 billion of origination over the last 12 months and a 55% share among private banks in mortgage origination.
Credit quality and costs
Asset quality was stable despite continued portfolio growth. The consolidated 90-day NPL ratio, including securities, was 1.9% at June 30, unchanged from March and below the 2.7% level shown for June 2022. Itaú also sold R$39 million of loans overdue more than 90 days in Brazil and R$24 million in Latin America without retaining risk; management said the transactions had no impact on reported quality indicators.
- Cost of credit: Cost of credit was R$10.139 billion, up 1.9% sequentially and 7.4% year over year. Expected-loss expense increased 2.3% sequentially to R$10.479 billion, while recoveries rose 20.2% to R$1.487 billion.
- Renegotiated balances: The renegotiated portfolio increased to R$36.3 billion from R$34.8 billion in March, while the restructured portfolio reached R$19.0 billion from R$18.0 billion.
- Desenrola: The government renegotiation program had served 371,000 customers and renegotiated R$1.1 billion by June, with a R$275 million portfolio and an immaterial effect on results and credit quality.
Fees and cost discipline
Commissions and fees were R$11.028 billion, essentially flat sequentially and up 2.3% year over year. Adding insurance, pension and capitalization results, commissions and insurance reached R$14.1 billion, up 3.6% year over year. Growth was led by asset management, advisory and brokerage, and insurance, while individual current-account and payments revenue declined.
- Expense base: Non-interest expenses increased 3.3% sequentially to R$16.728 billion and 3.1% year over year. Brazil expenses rose 4.1% sequentially, while Latin American expenses declined 1.7%.
- Efficiency: The consolidated efficiency ratio was 37.4%, compared with 37.1% in the first quarter and 38.3% a year earlier; Brazil's ratio was 35.1% in the quarter.
- Technology investment: Technology expenses rose 4.4% year over year in the first half to R$6.2 billion, as Itaú highlighted generative AI initiatives and a new conversational AI experience in its SuperApp.
Capital and guidance
Capital strengthened during the quarter. CET1 increased to 12.3% from 12.0% in March and 11.5% a year earlier, helped by retained net income and partly offset by dividends and interest on own capital. The Tier 1 capital ratio was 13.8%, while liquidity coverage was 202.0% and the net stable funding ratio was 122.1%.
- 2026 outlook: Itaú maintained guidance for total credit growth of 5.5%-9.5%, Brazil credit growth of 6.5%-10.5%, client financial-margin growth of 5.0%-9.0%, market financial-margin growth of R$2.5-R$5.5 billion, commissions and insurance growth of 5.0%-9.0%, and non-interest expense growth of 5.0%-9.0%.
- Credit-cost range: The company changed expected cost-of-credit growth guidance to 2.0%-5.0% from the previous 1.5%-5.5% range.
- Customer strategy: Management emphasized using AI, employee specialization and a more conversational SuperApp to improve personalization, with targeted benefits including 20%-30% greater credit-assessment accuracy and faster, more effective service interactions.
