Itau Unibanco Q4 Earnings & Revenues Rise Y/Y, Expenses Up

Itau Unibanco Holding S.A. ITUB 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 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 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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