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Itau Unibanco
(NYSE:ITUB)
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Rating:67Neutral
Price Target:
$8.50
▲(2.66% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by solid underlying financial performance and a supportive earnings-call read-through (strong profitability/ROE, improving margins, stable credit, and solid capital), reinforced by attractive valuation (low-teens P/E and high dividend yield). These positives are tempered by key financial risks (high leverage, TTM revenue drop, and cash-flow volatility) and currently soft technical momentum (below key shorter-term moving averages with weak indicators).
Positive Factors
High recurring profitability & ROE
Sustained, very high ROE and recurring profits indicate strong core earnings power and consistent return on equity. Over the next several quarters this supports internal capital generation, dividend capacity and room to fund loan growth without dilutive equity, underpinning durable shareholder returns.
Negative Factors
Elevated financial leverage
Persistently high leverage is typical for banks but increases sensitivity to credit cycles, funding cost shocks and regulatory pressure. Over months, elevated gearing can constrain capital flexibility, magnify losses in stress and force more conservative lending or capital-raising decisions.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring profitability & ROE
Sustained, very high ROE and recurring profits indicate strong core earnings power and consistent return on equity. Over the next several quarters this supports internal capital generation, dividend capacity and room to fund loan growth without dilutive equity, underpinning durable shareholder returns.
Read all positive factors
Itau Unibanco (ITUB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$84.03B
Dividend Yield7.95%
Average Volume (3M)20.01M
Price to Earnings (P/E)11.1
Beta (1Y)0.60
Revenue Growth7.53%
EPS Growth17.25%
CountryUS
Employees99,600
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.24
Shares Outstanding5,409,126,000
10 Day Avg. Volume19,569,804
30 Day Avg. Volume20,013,799
Financial Highlights & Ratios
PEG Ratio2.52
Price to Book (P/B)2.13
Price to Sales (P/S)1.13
P/FCF Ratio3.39
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$10.00Price Target Upside20.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.91
Revenue Forecast (FY)$38.34B
Itau Unibanco Business Overview & Revenue Model
Company Description
Itaú Unibanco Holding S.A. delivers a broad spectrum of financial and insurance solutions to both individual and corporate clientele, operating within Brazil and internationally. The company organizes its activities across three primary divisions:...
How the Company Makes Money
Itaú Unibanco generates revenue primarily by intermediating funds, providing payment and account services, and charging fees for financial products and advisory services. Key revenue streams typically include: (1) Net interest income: earning inte...
Itau Unibanco Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented a largely positive picture: strong recurring earnings, high ROE, healthy loan growth, improving margins and a solid capital base, supported by disciplined cost control and stable credit metrics. Management made a prudent, limited downgrade to fee/insurance guidance and flagged some market volatility, SME delinquency mechanical increases and industry risks, but emphasized these as manageable and largely mechanical. On balance the operational and financial strengths and stable credit performance outweigh the modest headwinds.Positive Updates
Strong Recurring Earnings
Recurring net income of BRL 12.4 billion, up 7.8% year-over-year and 1.0% quarter-over-quarter, described as another very solid result.
Negative Updates
Downgrade to Fee and Insurance Growth Guidance
Management revised expected growth for commissions & fees and insurance from an initial 5–9% range to a lower 2–5% range, citing moderation in economic activity and prudent repositioning of guidance.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Recurring Earnings
Recurring net income of BRL 12.4 billion, up 7.8% year-over-year and 1.0% quarter-over-quarter, described as another very solid result.
Read all positive updates
Company Guidance
The bank said it is keeping its previously disclosed full‑year guidance ranges for loan‑portfolio growth, NII with clients, NII with the market, cost of credit and noninterest expenses, but narrowed expected growth for commissions, fees and insurance to 2–5% (down from 5–9%); management also noted that assuming the effective tax rate toward the lower end of its range leaves the implied bottom‑line essentially unchanged. For context, the quarter delivered recurring net income of BRL 12.4bn, a loan book of BRL 1.522tn (+2.7% q/q, ~10% y/y), NII with clients BRL 32.6bn (+3.3% q/q, +5% y/y), NII with the market BRL 0.9bn, risk‑adjusted NIM 6.2% (+10bp q/q; Brazil 6.7%), cost of credit ~2.7% (BRL 10.1bn nominal), noninterest expenses +3.1% y/y, efficiency ratios 35.5% (Brazil) / 37.4% (consolidated) and CET1 of 12.3% (up 30bp q/q); management said guidance will be revisited only if macro or activity surprises occur, with two quarters remaining in the year.Itau Unibanco Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
60
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 383.37B | 384.58B | 325.85B | 306.63B | 253.12B | 191.49B |
| Gross Profit | 136.97B | 132.63B | 129.10B | 116.82B | 108.23B | 108.18B |
| EBITDA | 62.28B | 57.64B | 54.00B | 45.35B | 41.49B | 46.46B |
| Net Income | 47.10B | 44.86B | 41.09B | 33.10B | 29.21B | 26.76B |
Balance Sheet | ||||||
| Total Assets | 3.20T | 3.08T | 2.85T | 2.54T | 2.32T | 2.07T |
| Cash, Cash Equivalents and Short-Term Investments | 393.01B | 427.12B | 637.43B | 615.43B | 577.22B | 517.40B |
| Total Debt | 1.02T | 1.01T | 905.63B | 814.62B | 721.40B | 574.07B |
| Total Liabilities | 2.97T | 2.86T | 2.63T | 2.34T | 2.14T | 1.90T |
| Stockholders Equity | 217.57B | 204.40B | 211.09B | 190.18B | 167.72B | 152.86B |
Cash Flow | ||||||
| Free Cash Flow | 184.45B | 128.23B | -98.15B | 68.30B | 121.14B | 51.02B |
| Operating Cash Flow | 186.83B | 129.38B | -96.32B | 77.49B | 129.63B | 60.11B |
| Investing Cash Flow | -240.78B | -210.16B | 6.97B | -31.23B | -73.27B | -4.84B |
| Financing Cash Flow | 102.78B | 88.60B | 81.69B | -22.45B | -31.71B | -31.46B |
Itau Unibanco Technical Analysis
Negative
8.28
Price Trends
8.06
Negative
8.20
Negative
7.92
Negative
Market Momentum
-0.20
Positive
30.54
Neutral
5.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITUB, the sentiment is Negative. The current price of 8.28 is above the 20-day moving average (MA) of 8.10, above the 50-day MA of 8.06, and above the 200-day MA of 7.92, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 30.54 is Neutral, neither overbought nor oversold. The STOCH value of 5.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $16.22B | 13.40 | 22.63% | 4.43% | -3.09% | 2.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $84.03B | 11.08 | 21.64% | 7.10% | 7.53% | 17.25% | |
67 Neutral | $20.54B | 15.41 | 21.49% | 5.37% | 3.94% | 3.40% | |
62 Neutral | $21.42B | 30.54 | 11.81% | 5.10% | 20.73% | 27.11% | |
58 Neutral | $33.41B | 7.32 | 13.60% | 7.36% | 32.37% | 27.72% | |
56 Neutral | $33.41B | 7.32 | 13.60% | 7.75% | 32.37% | 27.68% |
* Financial Sector Average
ITUB
Itau Unibanco
7.40
1.12
17.76%
BBD
Banco Bradesco SA
3.14
0.34
12.18%
BCH
Banco De Chile
40.69
12.48
44.22%
BSBR
Banco Santander Brasil
5.77
1.03
21.76%
BSAC
Banco Santander Chile
34.55
11.19
47.90%
BBDO
Banco Bradesco
3.02
0.58
23.62%
Itau Unibanco Corporate Events
Itaú Unibanco Posts Strong 1H26 Results, Deploys AI Solutions and Adjusts Capital Structure
Aug 7, 2026
For the first half of 2026, Itaú Unibanco reported strong growth in recurring results and profitability, with recurring net income reaching R$24.0 billion and recurring ROE rising to 22.8% as of June 30, 2026. Operating revenues climbed 5.9% ...
Itaú Unibanco Posts Strong 2Q26 Earnings with Robust Credit Growth and Capital Position
Aug 7, 2026
On August 4, 2026, Itaú Unibanco filed a Form 6-K in the U.S. reporting its second-quarter 2026 BRGAAP Management Discussion Analysis and complete financial statements, showing solid growth in profitability and a stable risk profile. Recurri...
Itaú Unibanco Updates 2025 Reference Form, Highlighting Ongoing Strategic Shift
Aug 6, 2026
Itaú Unibanco Holding S.A., a Brazilian universal bank headquartered in São Paulo, operates in banking, foreign exchange, credit cards, payment arrangements and loyalty programs, as well as financial marketplaces and related services. Ov...
Itaú Unibanco Fiscal Council Backs Half-Year Accounts and Appoints Supervisory Chairman
Aug 5, 2026
On August 4, 2026, Itaú Unibanco’s Fiscal Council met in São Paulo and unanimously nominated Eduardo Hiroyuki Miyaki as Chairman of the Supervisory Council for the current annual term, with Cláudio José Coutinho Arromatte...
Itaú Unibanco Updates 2026 Guidance and Cost of Capital Assumptions
Aug 5, 2026
Itaú Unibanco Holding S.A. has filed a Form 6-K in the United States for August 2026, formalizing the disclosure of a material fact to investors. The filing, signed in São Paulo on August 4, 2026, confirms the release of revised guidance...
Itaú Unibanco Reports Strong Capital and Risk Metrics in Q2 2026 Pillar 3 Disclosure
Aug 5, 2026
Itaú Unibanco has released its Pillar 3 Risk and Capital Management report for the second quarter of 2026, as furnished to the U.S. Securities and Exchange Commission on Form 6-K dated August 4, 2026. The disclosure responds to updated Centra...
Itaú Unibanco Posts BRL 12.4 Billion Q2 2026 Profit and Launches AI SuperApp Assistant
Aug 5, 2026
In the second quarter of 2026, Itaú Unibanco reported recurring managerial net income of BRL 12.4 billion and an annualized ROE of 24.3%, underscoring strong profitability and balance-sheet quality. The total credit portfolio rose 2.7% in the...
Itaú Unibanco Board Clears H1 2026 Results and Sets August Interest-on-Capital Payment
Aug 5, 2026
On August 4, 2026, Itaú Unibanco’s board of directors met in São Paulo, with all elected members participating in accordance with the company’s bylaws. The board reviewed the financial statements for the period from January t...
Itaú Unibanco Posts Strong 2Q26 Results and Reinforces Digital Strategy
Aug 5, 2026
Itaú Unibanco Holding S.A., Brazil’s largest private bank with a significant Latin American footprint, reported robust second-quarter 2026 metrics, underlining its strength in credit, services and insurance. The group highlighted a R$1....
Itaú Unibanco Sets August 28 Payment Date for BRL 7.84 Billion Interest on Capital
Aug 5, 2026
Itaú Unibanco Holding S.A., one of Brazil’s largest banking groups, provides retail and corporate banking, investment services and capital markets products to a broad investor base. Its shares trade as common (ITUB3) and preferred (ITUB...
Itaú Unibanco Exits Colombian Retail Banking to Focus on Corporate Segment
Aug 3, 2026
Itaú Unibanco Holding S.A. announced that its Colombian subsidiary, Banco Itaú Colombia S.A., has completed the transfer of assets, liabilities and contracts tied to its retail banking operations for individuals to Banco de Bogotá S...
Itaú Unibanco Details 2026 Alignment with Brazilian Corporate Governance Code
Jul 28, 2026
On July 27, 2026, Itaú Unibanco filed a Form 6-K in the U.S. disclosing its 2026 report on adherence to the Brazilian Corporate Governance Code, detailing how its bylaws and practices address capital structure, shareholders’ rights, and...
Itaú Unibanco to Repurchase BRL 1.4 Billion in Tier 1 Subordinated Bills
Jul 14, 2026
Itaú Unibanco Holding S.A., a leading Brazilian universal bank with significant retail, corporate, and investment banking operations across Latin America, is known for its active capital management to support regulatory compliance and shareho...
Itaú Unibanco Sets Stricter Share-Based Pay Rules for Executives in New Policy Filing
Jul 7, 2026
On July 7, 2026, Itaú Unibanco Holding S.A. filed a Form 6-K in the United States formally disclosing its updated remuneration policy for administrators in Brazil, covering the parent company and its controlled entities. The policy codifies a...
Itaú Unibanco Updates U.S. Market on Integrated Compliance and Operational Risk Policy
Jul 7, 2026
On July 7, 2026, Itaú Unibanco filed a Form 6-K in the United States to publicly disclose its Integrated Management of Compliance and Operational Risk Policy, formalizing principles and processes for managing non-financial risks across the gr...
Itaú Unibanco Secures New Five-Year Payroll Deal with Minas Gerais
Jul 2, 2026
On July 1, 2026, Itaú Unibanco announced that it has won a new bidding process run by the Government of the State of Minas Gerais to continue providing payment services for roughly 670,000 state employees, retirees, pensioners, and corporate ...
Itaú Unibanco Updates Environmental, Social and Climate Risk Policy in New Form 6-K Filing
Jun 19, 2026
On June 18, 2026, Itaú Unibanco filed a Form 6-K in the U.S. disclosing an updated Environmental, Social and Climate Risk Policy that applies to the bank and its subsidiaries. The policy responds to Brazilian regulatory requirements and embed...
Itaú Unibanco Updates 2025 Reference Form in New U.S. SEC Filing
Jun 11, 2026
On June 10, 2026, Itaú Unibanco filed a Form 6-K in the U.S. disclosing the updated 2025 Reference Form prepared under Brazilian CVM rules as of the base date of December 31, 2025. The resubmitted version (V2) reflects updates to specific cor...
Itaú Unibanco Boosts Additional Tier 1 Capital with BRL 3 Billion Perpetual Subordinated Issue
Jun 11, 2026
On June 10, 2026, Itaú Unibanco announced it had issued BRL 3 billion in perpetual subordinated financial bills to professional investors, instruments that have no set maturity and can be repurchased from 2031 with prior approval from the Cen...
Itaú Unibanco Approves BRL 3.99 Billion Interest on Capital for 2026
May 29, 2026
Itaú Unibanco Holding S.A., one of Brazil’s largest banking groups, provides a broad suite of financial services, including retail and corporate banking, lending, and investment solutions, to individuals and businesses. Its shares are t...
Itaú Unibanco Formalizes Executive Removal in May 28 Board Meeting
May 29, 2026
Itaú Unibanco Holding S.A. has filed a Form 6-K with the U.S. Securities and Exchange Commission for May 2026, providing U.S. investors with an update on recent governance actions. The filing, signed on May 28, 2026 by Investor Relations Offi...
Itaú Unibanco Board Approves Interest on Capital Distribution on May 28, 2026
May 29, 2026
On May 28, 2026, Itaú Unibanco’s board of directors met in São Paulo under co-chairmen Pedro Moreira Salles and Roberto Egydio Setubal, with a majority quorum in accordance with the company’s bylaws. At this meeting, director...
Itaú Unibanco Discloses GQG Partners’ Trimmed but Still Significant 4.97% Stake
May 22, 2026
On May 19, 2026, Itaú Unibanco disclosed that asset manager GQG Partners LLC had reduced, but still holds, a significant minority stake, now owning about 4.97% of the bank’s preferred shares and ADRs. The bank reported that GQG’s ...
Itaú Unibanco Updates 2024 Reference Form in Latest U.S. Filing
May 13, 2026
On May 8, 2026, Itaú Unibanco Holding S.A. filed a Form 6‑K in the United States to furnish its updated 2024 Reference Form (version 13) to investors. The document, based on information as of December 31, 2024, consolidates regulatory d...
Itaú Unibanco Posts Solid 1Q26 Results as Credit Portfolio Grows and ROE Nears 25%
May 11, 2026
Itaú Unibanco reported its first-quarter 2026 results, reflecting management reclassifications implemented at the end of 2025 and the consolidation of Avenue’s results after acquiring control of the firm. The bank delivered a recurring ...
Itaú Unibanco Posts Strong 1Q26 Results and Expands Digital, Payments Platforms
May 11, 2026
Itaú Unibanco released its IFRS condensed consolidated financial statements for the quarter ended March 31, 2026, reporting a recurring result of R$11.4 billion and net income attributable to shareholders of R$11.6 billion, up around 8% and 1...
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.