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Itau Unibanco H1 Earnings & Revenues Rise Y/Y, Expenses Up
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Key Takeaways
{\"0\":\"ITUBs H1 recurring managerial results rose 8% Y/Y to R$21.7B, driven by stronger financial margins.\",\"1\":\"Managerial financial margin climbed 12.7%, while commissions and fees declined 2% Y/Y.\",\"2\":\"Non-interest expenses rose 9.6% Y/Y, largely due to increased investments in technology.\"}
Itau Unibanco Holding S.A. (ITUB - Free Report) reported recurring managerial results of R$21.7 billion ($3.94 billion) for the first half of 2025, which increased 8% year over year.
Higher revenues and an increase in managerial financial margin supported the results. However, a rise in non-interest expenses acted as a spoilsport.
ITUB’s Revenues & Expenses Increase
Operating revenues were R$88.1 billion ($16 billion) in the reported quarter, up 1% year over year.
The managerial financial margin increased 12.7% year over year to R$61.5 billion ($11.2 billion). However, commissions and fees declined 2% year over year to R$22.7 billion ($4.1 billion).
Non-interest expenses totaled R$32.3 billion ($5.8 billion), up 9.6% year over year. Investments in technology drove the increase in expenses.
In the first half of 2025, the efficiency ratio was 38.4%, down 10 basis points from the first half of 2024. A decrease in this ratio indicates increased profitability.
The cost of credit charges rose 5.3% on a year-over-year basis to R$17.4 billion ($3.1 billion).
Itau Unibanco’s Balance Sheet Position: Mixed Bag
As of June 30, 2025, ITUB’s total assets rose nearly 1% to R$2.87 trillion ($522.8 billion) from the figure reported as of June 30, 2024. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$2.65 trillion ($483.1 billion), which rose 1% from the figure reported on June 30, 2024.
As of June 30, 2025, Itau Unibanco’s credit portfolio, including private securities and financial guarantees provided, rose 7% to R$1.4 trillion ($252.3 billion), compared to the figure reported on June 30, 2024.
ITUB’s Capital & Profitability Ratios Mixed
As of June 30, 2025, the Common Equity Tier 1 ratio was 13.1%, unchanged from the figure reported on June 30, 2024.
Annualized recurring managerial return on average equity was 21%, down from 21.1% in the first half of 2024.
Our View on Itau Unibanco
ITUB’s first-half results were driven by a rise in the managerial financial margin. The declining efficiency ratio indicates an increase in profitability, which is a positive factor. Growth in the credit portfolio is also encouraging. However, a decline in commissions and fees, along with rising expenses, remains a key concern.
Itau Unibanco Holding S.A. Price, Consensus and EPS Surprise
HSBC Holdings (HSBC - Free Report) reported second-quarter 2025 pre-tax profit of $6.33 billion, which declined 29% from the prior-year quarter.
HSBC’s results were hurt by a fall in revenues, higher expected credit losses and other credit impairment charges and higher expenses.
Deutsche Bank (DB - Free Report) reported second-quarter 2025 earnings attributable to its shareholders of €1.49 billion ($1.75 billion) against the loss attributable to its shareholders of $143 million in the year-ago period.
DB’s results were aided by increased revenues and lower expenses. Lower provision for credit losses was another positive.
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Itau Unibanco H1 Earnings & Revenues Rise Y/Y, Expenses Up
Key Takeaways
Itau Unibanco Holding S.A. (ITUB - Free Report) reported recurring managerial results of R$21.7 billion ($3.94 billion) for the first half of 2025, which increased 8% year over year.
Higher revenues and an increase in managerial financial margin supported the results. However, a rise in non-interest expenses acted as a spoilsport.
ITUB’s Revenues & Expenses Increase
Operating revenues were R$88.1 billion ($16 billion) in the reported quarter, up 1% year over year.
The managerial financial margin increased 12.7% year over year to R$61.5 billion ($11.2 billion). However, commissions and fees declined 2% year over year to R$22.7 billion ($4.1 billion).
Non-interest expenses totaled R$32.3 billion ($5.8 billion), up 9.6% year over year. Investments in technology drove the increase in expenses.
In the first half of 2025, the efficiency ratio was 38.4%, down 10 basis points from the first half of 2024. A decrease in this ratio indicates increased profitability.
The cost of credit charges rose 5.3% on a year-over-year basis to R$17.4 billion ($3.1 billion).
Itau Unibanco’s Balance Sheet Position: Mixed Bag
As of June 30, 2025, ITUB’s total assets rose nearly 1% to R$2.87 trillion ($522.8 billion) from the figure reported as of June 30, 2024. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$2.65 trillion ($483.1 billion), which rose 1% from the figure reported on June 30, 2024.
As of June 30, 2025, Itau Unibanco’s credit portfolio, including private securities and financial guarantees provided, rose 7% to R$1.4 trillion ($252.3 billion), compared to the figure reported on June 30, 2024.
ITUB’s Capital & Profitability Ratios Mixed
As of June 30, 2025, the Common Equity Tier 1 ratio was 13.1%, unchanged from the figure reported on June 30, 2024.
Annualized recurring managerial return on average equity was 21%, down from 21.1% in the first half of 2024.
Our View on Itau Unibanco
ITUB’s first-half results were driven by a rise in the managerial financial margin. The declining efficiency ratio indicates an increase in profitability, which is a positive factor. Growth in the credit portfolio is also encouraging. However, a decline in commissions and fees, along with rising expenses, remains a key concern.
Itau Unibanco Holding S.A. Price, Consensus and EPS Surprise
Itau Unibanco Holding S.A. price-consensus-eps-surprise-chart | Itau Unibanco Holding S.A. Quote
Itau Unibanco currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Foreign Banks
HSBC Holdings (HSBC - Free Report) reported second-quarter 2025 pre-tax profit of $6.33 billion, which declined 29% from the prior-year quarter.
HSBC’s results were hurt by a fall in revenues, higher expected credit losses and other credit impairment charges and higher expenses.
Deutsche Bank (DB - Free Report) reported second-quarter 2025 earnings attributable to its shareholders of €1.49 billion ($1.75 billion) against the loss attributable to its shareholders of $143 million in the year-ago period.
DB’s results were aided by increased revenues and lower expenses. Lower provision for credit losses was another positive.