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Itau Unibanco reported Q1 recurring managerial results, which rose 10.4% year over year.
ITUB revenues rose 4.5%, with financial margin and fees growth offset by higher expenses.
Credit portfolio grew 7.2%, while efficiency ratio ticked up, signaling margin pressure.
Itau Unibanco Holding S.A. (ITUB - Free Report) reported recurring managerial results of R$12.3 billion ($2.48 billion) for the first quarter of 2026, which increased 10.4% year over year.
Results were driven by higher revenues and an increase in managerial financial margin. However, higher non-interest expenses remained a headwind.
ITUB’s Revenues & Expenses Increase
Operating revenues were R$46.8 billion ($9.4 billion) in the reported quarter, up 4.5% year over year.
The managerial financial margin increased 4% year over year to R$32.3 billion ($6.5 billion). Also, commissions and fees rose 2.3% year over year to R$10.9 billion ($2.2 billion).
Non-interest expenses totaled R$16.2 billion ($3.3 billion), up 4.8% 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 first quarter, the efficiency ratio was 37.1% compared with 37% in the year-ago quarter. An increase in this ratio indicates decreased profitability.
The cost of credit charges rose 4.5% on a year-over-year basis to R$9.9 billion ($2 billion).
Itau Unibanco’s Balance Sheet Position Improves
As of March 31, 2026, ITUB’s total assets rose 3.3% year over year to R$3.19 trillion ($646.3 billion) from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$2.99 trillion ($604 billion), which rose 3.4% on a sequential basis.
As of the same date, Itau Unibanco’s credit portfolio, including private securities and financial guarantees provided, rose 7.2% year over year to R$1.48 trillion ($299.5 billion) from the prior quarter.
ITUB’s Capital & Profitability Ratios Mixed
As of March 31, 2026, the Common Equity Tier 1 ratio was 12%, down from 12.6% as of March 31, 2025.
Annualized recurring managerial return on average equity was 24.8%, up from 22.5% in the year-earlier quarter.
Our View on Itau Unibanco
ITUB’s first-quarter results were driven by a rise in the managerial financial margin. A slightly higher efficiency ratio suggests some pressure on profitability. However, 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 first-quarter 2026 earnings attributable to its shareholders of €1.91 billion ($3.26 billion), up 7.7% year over year.
DB’s increased revenues and lower expenses aided results. However, higher provisions for credit losses were a headwind.
UBS Group AG (UBS - Free Report) reported a first-quarter 2026 net profit attributable to shareholders of $3.04 billion compared with $1.69 billion in the prior-year quarter.
UBS’s results were driven by the strong performances of the Global Wealth Management, Asset Management and Investment Bank divisions. An increase in total assets was also encouraging. However, higher operating expenses acted as a headwind.
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Itau Unibanco Q1 Earnings & Revenues Rise Y/Y Despite Higher Expenses
Key Takeaways
Itau Unibanco Holding S.A. (ITUB - Free Report) reported recurring managerial results of R$12.3 billion ($2.48 billion) for the first quarter of 2026, which increased 10.4% year over year.
Results were driven by higher revenues and an increase in managerial financial margin. However, higher non-interest expenses remained a headwind.
ITUB’s Revenues & Expenses Increase
Operating revenues were R$46.8 billion ($9.4 billion) in the reported quarter, up 4.5% year over year.
The managerial financial margin increased 4% year over year to R$32.3 billion ($6.5 billion). Also, commissions and fees rose 2.3% year over year to R$10.9 billion ($2.2 billion).
Non-interest expenses totaled R$16.2 billion ($3.3 billion), up 4.8% 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 first quarter, the efficiency ratio was 37.1% compared with 37% in the year-ago quarter. An increase in this ratio indicates decreased profitability.
The cost of credit charges rose 4.5% on a year-over-year basis to R$9.9 billion ($2 billion).
Itau Unibanco’s Balance Sheet Position Improves
As of March 31, 2026, ITUB’s total assets rose 3.3% year over year to R$3.19 trillion ($646.3 billion) from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$2.99 trillion ($604 billion), which rose 3.4% on a sequential basis.
As of the same date, Itau Unibanco’s credit portfolio, including private securities and financial guarantees provided, rose 7.2% year over year to R$1.48 trillion ($299.5 billion) from the prior quarter.
ITUB’s Capital & Profitability Ratios Mixed
As of March 31, 2026, the Common Equity Tier 1 ratio was 12%, down from 12.6% as of March 31, 2025.
Annualized recurring managerial return on average equity was 24.8%, up from 22.5% in the year-earlier quarter.
Our View on Itau Unibanco
ITUB’s first-quarter results were driven by a rise in the managerial financial margin. A slightly higher efficiency ratio suggests some pressure on profitability. However, 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 first-quarter 2026 earnings attributable to its shareholders of €1.91 billion ($3.26 billion), up 7.7% year over year.
DB’s increased revenues and lower expenses aided results. However, higher provisions for credit losses were a headwind.
UBS Group AG (UBS - Free Report) reported a first-quarter 2026 net profit attributable to shareholders of $3.04 billion compared with $1.69 billion in the prior-year quarter.
UBS’s results were driven by the strong performances of the Global Wealth Management, Asset Management and Investment Bank divisions. An increase in total assets was also encouraging. However, higher operating expenses acted as a headwind.