Itaú Unibanco (ITUB4) Q1 2025 earnings summary

Executive summary

• Recurring managerial net income reached R$11.1 billion in 1Q25, up 2.2% sequentially and 13.9% year-over-year, with consolidated ROE at 22.5% and Brazil ROE at 23.7%, both increasing on a quarterly and annual basis.

• EBIT/income before taxes was R$16.7 billion, a 6.5% increase from 4Q24 and 16% higher than 1Q24.

• Operating revenues totaled R$44.5 billion, up 1.0% sequentially and 10.4% year-over-year.

• Credit portfolio decreased 1.7% sequentially but grew 13.2% year-over-year, with Brazil up 12.3% and Latin America up 17.6%.

• Non-interest expenses dropped 5.5% sequentially but increased 9.8% year-over-year, with the efficiency ratio at a historical low of 38.1%.

Financial highlights

• Financial margin with clients rose 3.2% quarter-over-quarter and 13.9% year-over-year to R$29.4 billion.

• EBIT: R$16.7 billion (+6.5% QoQ, +16% YoY).

• Efficiency ratio: 36% in Brazil, 38.1% consolidated, both at historical bests.

• CET1 ratio: 12.6% as of Mar-25, after absorbing regulatory impacts and dividend payments.

• NII with clients: R$29.4 billion (+3% QoQ, +14% YoY); NII with market: R$900 million in Q1.

Outlook and guidance

• 2025 guidance unchanged: credit portfolio growth between 4.5% and 8.5%; financial margin with clients up 7.5% to 11.5%; commissions, fees, and insurance results to grow 5.5% to 8.5%.

• Non-interest expenses projected to grow 4.0% to 7.0%; effective tax rate between 27.0% and 29.0%.

• Management expects to deliver results near the top of the guidance range for financial margin with clients, supported by strong portfolio growth.

• NII with market expected to end slightly above the midpoint of R$2 billion guidance.