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%.

• EBIT grew 6.5% quarter-over-quarter and 16% year-over-year to R$16.7 billion, with the best efficiency ratio in history at 36% in Brazil and 38.1% consolidated.

• Credit portfolio reached R$1.4 trillion, up 13.2% year-over-year, with Brazil up 12.3% and Latin America up 17.6%.

• NPL (90 days) ratio fell to 2.3%, the lowest in 17 quarters, with individuals at a record low of 3.6%.

• 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

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

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

• CET1 ratio ended at 12.6%, absorbing regulatory impacts and dividend payments.

• Cost of credit was R$9.0 billion (2.6% of the loan book), stable quarter-over-quarter.

• Commissions and fees plus insurance results totaled R$13.8 billion, up 5.6% year-over-year.

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%; cost of credit between R$34.5–38.5 billion; commissions and fees plus insurance up 4.0% to 7.0%; non-interest expenses up 5.5% to 8.5%.

• Effective tax rate expected between 27.0% and 29.0%.

• Management expects to deliver results near the top of the guidance range for financial margin with clients by year-end.

• Continued focus on disciplined capital allocation, cost efficiency, and digital transformation to drive future growth.