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Itau Unibanco Q4 Earnings & Revenues Rise Y/Y, Expenses Up
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Key Takeaways
ITUB reported Q4 recurring managerial results of R$12.3B, up 13.2% year over year on higher revenues.
ITUB saw operating revenues rise 7.9% in Q4, while the managerial financial margin increased 7.3%.
ITUB's non-interest expenses climbed 3.7%, though the efficiency ratio improved to 38.9%.
Itau Unibanco Holding S.A. (ITUB - Free Report) reported recurring managerial results of R$12.3 billion ($2.35 billion) for the fourth quarter of 2025, which increased 13.2% year over year.
Results were driven by higher revenues and an increase in managerial financial margin. However, higher non-interest expenses remained a headwind.
For 2025, the company reported recurring managerial results of R$46.8 billion ($8.93 billion), which increased 13.1% year over year.
ITUB’s Revenues & Expenses Increase
Operating revenues were R$47.6 billion ($9.1 billion) in the reported quarter, up 7.9% year over year.
For 2025, operating revenues were R$184 billion ($35.2 billion) in the reported quarter, up 9.1% year over year.
The managerial financial margin increased 7.3% year over year to R$31.5 billion ($6 billion). Also, commissions and fees rose 7.4% year over year to R$12.6 billion ($2.4 billion).
Non-interest expenses totaled R$17.3 billion ($3.3 billion), up 3.7% year over year. This increase was primarily driven by the full impact of the annual collective wage agreement, partially offset by efficiency gains.
In the fourth quarter, the efficiency ratio was 38.9% compared with 40.7% in the year-ago quarter. A decrease in this ratio indicates increased profitability.
The cost of credit charges rose 8.7% on a year-over-year basis to R$9.4 billion ($1.8 billion).
Itau Unibanco’s Balance Sheet Position Improves
As of Dec. 31, 2025, ITUB’s total assets rose 3.3% year over year to R$3.09 trillion ($590.5 billion) from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$2.89 trillion ($551.2 billion), which rose 3.9% on a sequential basis.
As of the same date, Itau Unibanco’s credit portfolio, including private securities and financial guarantees provided, rose 6.3% year over year to R$1.49 trillion ($284 billion) from the prior quarter.
ITUB’s Capital & Profitability Ratios Mixed
As of Dec. 31, 2025, the Common Equity Tier 1 ratio was 12.3%, down from 13.7% as of Dec. 31, 2024.
Annualized recurring managerial return on average equity was 24.4%, up from 22.1% in the year-earlier quarter.
Our View on Itau Unibanco
ITUB’s fourth-quarter results were driven by a rise in the managerial financial margin. The declining efficiency ratio indicates improved profitability, which is a positive factor. Growth in commissions and fees, along with efforts to maintain a healthy credit portfolio, remains encouraging.
Itau Unibanco Holding S.A. Price, Consensus and EPS Surprise
Deutsche Bank (DB - Free Report) reported fourth-quarter 2025 earnings attributable to its shareholders of €1.29 billion ($1.55 billion), which rose significantly from €106 million ($126.8 million) reported in the prior-year quarter.
DB’s increased revenues and lower provisions for credit losses aided results. Notably, the decline in expenses was also encouraging.
UBS Group AG (UBS - Free Report) reported a fourth-quarter 2025 net profit attributable to shareholders of $1.19 billion compared with $770 million in the prior-year quarter.
Results were driven by the strong performances of the Global Wealth Management, Asset Management and Investment Bank divisions. However, the decline in total assets was concerning for UBS.
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Itau Unibanco Q4 Earnings & Revenues Rise Y/Y, Expenses Up
Key Takeaways
Itau Unibanco Holding S.A. (ITUB - Free Report) reported recurring managerial results of R$12.3 billion ($2.35 billion) for the fourth quarter of 2025, which increased 13.2% year over year.
Results were driven by higher revenues and an increase in managerial financial margin. However, higher non-interest expenses remained a headwind.
For 2025, the company reported recurring managerial results of R$46.8 billion ($8.93 billion), which increased 13.1% year over year.
ITUB’s Revenues & Expenses Increase
Operating revenues were R$47.6 billion ($9.1 billion) in the reported quarter, up 7.9% year over year.
For 2025, operating revenues were R$184 billion ($35.2 billion) in the reported quarter, up 9.1% year over year.
The managerial financial margin increased 7.3% year over year to R$31.5 billion ($6 billion). Also, commissions and fees rose 7.4% year over year to R$12.6 billion ($2.4 billion).
Non-interest expenses totaled R$17.3 billion ($3.3 billion), up 3.7% year over year. This increase was primarily driven by the full impact of the annual collective wage agreement, partially offset by efficiency gains.
In the fourth quarter, the efficiency ratio was 38.9% compared with 40.7% in the year-ago quarter. A decrease in this ratio indicates increased profitability.
The cost of credit charges rose 8.7% on a year-over-year basis to R$9.4 billion ($1.8 billion).
Itau Unibanco’s Balance Sheet Position Improves
As of Dec. 31, 2025, ITUB’s total assets rose 3.3% year over year to R$3.09 trillion ($590.5 billion) from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$2.89 trillion ($551.2 billion), which rose 3.9% on a sequential basis.
As of the same date, Itau Unibanco’s credit portfolio, including private securities and financial guarantees provided, rose 6.3% year over year to R$1.49 trillion ($284 billion) from the prior quarter.
ITUB’s Capital & Profitability Ratios Mixed
As of Dec. 31, 2025, the Common Equity Tier 1 ratio was 12.3%, down from 13.7% as of Dec. 31, 2024.
Annualized recurring managerial return on average equity was 24.4%, up from 22.1% in the year-earlier quarter.
Our View on Itau Unibanco
ITUB’s fourth-quarter results were driven by a rise in the managerial financial margin. The declining efficiency ratio indicates improved profitability, which is a positive factor. Growth in commissions and fees, along with efforts to maintain a healthy credit portfolio, remains encouraging.
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
Deutsche Bank (DB - Free Report) reported fourth-quarter 2025 earnings attributable to its shareholders of €1.29 billion ($1.55 billion), which rose significantly from €106 million ($126.8 million) reported in the prior-year quarter.
DB’s increased revenues and lower provisions for credit losses aided results. Notably, the decline in expenses was also encouraging.
UBS Group AG (UBS - Free Report) reported a fourth-quarter 2025 net profit attributable to shareholders of $1.19 billion compared with $770 million in the prior-year quarter.
Results were driven by the strong performances of the Global Wealth Management, Asset Management and Investment Bank divisions. However, the decline in total assets was concerning for UBS.