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Itau Unibanco
(NYSE:ITUB)
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Rating:69Neutral
Price Target:
$11.00
▲(43.60% Upside)
Action:Reiterated
Date:10/06/26
ITUB scores as moderately attractive, led by solid profitability/ROE and supportive valuation (reasonable P/E and high dividend yield). Technicals are bullish but overheated (high RSI/Stoch), while financial risk factors—high leverage and uncertainty from the sharp TTM revenue decline and cash-flow volatility—keep the overall score from moving higher. Earnings-call tone was broadly positive with stable guidance, partially offset by a fee-growth guidance cut.
Positive Factors
Strong recurring profitability
High recurring earnings and ROE indicate strong monetization of Itaú’s banking franchise and capital base. Sustained profitability can support organic growth, capital generation and shareholder distributions, while reinforcing the bank’s competitive position over the next several quarters.
Negative Factors
Lower fee and insurance outlook
The reduced fee and insurance outlook signals weaker momentum in important noninterest revenue streams. Continued moderation in card activity or economic conditions could constrain revenue diversification, making earnings more dependent on lending spreads and credit performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong recurring profitability
High recurring earnings and ROE indicate strong monetization of Itaú’s banking franchise and capital base. Sustained profitability can support organic growth, capital generation and shareholder distributions, while reinforcing the bank’s competitive position over the next several quarters.
Read all positive factors
Itau Unibanco (ITUB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$115.51B
Dividend Yield5.14%
Average Volume (3M)28.86M
Price to Earnings (P/E)11.1
Beta (1Y)0.63
Revenue Growth7.53%
EPS Growth17.25%
CountryUS
Employees99,600
SectorFinancial
Sector Strength70
IndustryBanks
Share Statistics
EPS (TTM)4.24
Shares Outstanding5,409,126,000
10 Day Avg. Volume45,532,661
30 Day Avg. Volume28,861,876
Financial Highlights & Ratios
PEG Ratio1.97
Price to Book (P/B)2.13
Price to Sales (P/S)1.13
P/FCF Ratio3.39
Enterprise Value/Market Cap2.22
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit1.87
Enterprise Value/Ebitda4.11
Forecast
1Y Price Target
$9.80Price Target Upside27.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.9
Revenue Forecast (FY)$38.13B
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 primarily earns money through a diversified banking revenue model spanning interest income, fee-based income, and insurance/financial-services-related results.
1) Net interest income (lending and deposits): A core driver is the spre...
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
Positive
7.66
Price Trends
8.16
Positive
8.09
Positive
8.18
Positive
Market Momentum
0.50
Negative
74.01
Negative
87.28
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 7.66 is below the 20-day moving average (MA) of 8.70, below the 50-day MA of 8.16, and below the 200-day MA of 8.18, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 74.01 is Negative, neither overbought nor oversold. The STOCH value of 87.28 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $142.43B | 11.97 | 19.31% | 4.13% | -2.29% | 14.33% | |
71 Outperform | $77.87B | 21.78 | 30.26% | ― | 53.50% | 55.50% | |
70 Outperform | $16.66B | 15.61 | 22.05% | 1.18% | 16.84% | 20.39% | |
69 Neutral | $115.51B | 11.08 | 21.64% | 5.14% | 7.53% | 17.25% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $21.66B | 29.42 | 11.81% | 1.47% | 20.73% | 27.11% | |
56 Neutral | $45.47B | 8.42 | 13.60% | 6.64% | 32.37% | 27.68% |
* Financial Sector Average
ITUB
Itau Unibanco
10.16
3.92
62.72%
BBVA
Banco Bilbao
26.12
8.49
48.17%
BBD
Banco Bradesco SA
4.30
1.34
45.52%
BSBR
Banco Santander Brasil
5.81
0.97
19.94%
XP
XP
32.22
16.61
106.43%
NU
Nu Holdings
16.12
1.04
6.90%
Itau Unibanco Corporate Events
Itaú Unibanco Updates Bylaws and Confirms Capital Structure in Latest SEC Filing
Oct 2, 2026
On October 2, 2026, Itaú Unibanco Holding S.A. filed a Form 6-K with the U.S. Securities and Exchange Commission, formally submitting an updated version of its corporate bylaws. The filing confirms the bank’s subscribed and paid-in capi...
Itaú Unibanco to Present Strategy Outlook at Itaúsa’s Panorama 2026 Event
Sep 23, 2026
Itaú Unibanco announced that its chief executive, Milton Maluhy Filho, will participate in a live event titled “Panorama Itaúsa 2026,” organized by Itaúsa S.A., to discuss the bank’s strategy and perspectives. The ...
Itaú Unibanco to Repurchase BRL 11 Billion in Tier 2 Subordinated Bills
Sep 18, 2026
Itaú Unibanco Holding S.A. announced that it will exercise call options to repurchase all of its outstanding Tier 2 subordinated financial bills on September 21, 2026 and October 21, 2026. These instruments were issued in September 2021, matu...
Itaú Unibanco Enhances Governance With New Related Party Transactions Policy
Sep 14, 2026
On September 14, 2026, Itaú Unibanco filed a Form 6-K in the United States to publicly release an updated Related Party Transactions Policy for its Brazilian operations, aiming to strengthen governance over dealings with related entities and ...
Itaú Unibanco Boosts Capital With R$5 Billion Tier 2 Subordinated Issue
Sep 11, 2026
On September 10, 2026, Itaú Unibanco issued R$5 billion in Tier 2 subordinated financial bills in transactions targeted at professional investors. The instruments, which mature in 2036 and 2037 and include a repurchase option from 2031 subjec...
Itaú Unibanco Flags ICTi Related-Party Spending Passing R$50 Million Threshold
Sep 2, 2026
Itaú Unibanco Holding S.A. disclosed a related-party transaction involving services provided by the Instituto Itaú de Ciência, Tecnologia e Inovação, a private association founded by the banking group. The institute operat...
Itaú Unibanco Wins Preliminary U.S. Approval to Launch National Bank
Aug 18, 2026
Itaú Unibanco has received conditional preliminary approval from the U.S. Office of the Comptroller of the Currency to establish a nationally chartered bank in the United States, to be called Itaú Bank, National Association. Announced on...
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...
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.