Itau Unibanco Q3 Earnings & Revenues Rise Y/Y, Expenses Up

Itau Unibanco Holding S.A. ITUB reported recurring managerial results of R$11.9 billion ($2.16 billion) for the third quarter of 2025, which increased 11.2% year over year.

Higher revenues and an increase in managerial financial margin supported the results. However, a rise in non-interest expenses acted as a spoilsport.

ITUB’s Revenues & Expenses Increase

Operating revenues were R$46.6 billion ($8.5 billion) in the reported quarter, up 9.1% year over year.

The managerial financial margin increased 10.1% year over year to R$31.4 billion ($5.7 billion). Also, commissions and fees rose 4.7% year over year to R$11.7 billion ($2.1 billion).

Non-interest expenses totaled R$17.1 billion ($3.1 billion), up 7.5% year over year. This increase was mainly due to the impact of the collective wage labor agreement.

In the third quarter, the efficiency ratio was 39.5%, down 7 basis points from the year-earlier quarter. A decrease in this ratio indicates increased profitability.

The cost of credit charges rose 40.7% on a year-over-year basis to R$7.5 billion ($1.4 billion).

Itau Unibanco’s Balance Sheet Position Improves

As of Sept. 30, 2025, ITUB’s total assets rose 3.4% to R$2.99 trillion ($545.3 billion) from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$2.74 trillion ($499.5 billion), which rose 3.2% on a sequential basis.

As of the same date, Itau Unibanco’s credit portfolio, including private securities and financial guarantees provided, rose nearly 1% to R$1.4 trillion ($255 billion) from the prior quarter.

ITUB’s Capital & Profitability Ratios Mixed

As of Sept. 30, 2025, the Common Equity Tier 1 ratio was 13.5%, down from 13.7% as of Sept. 30, 2024.

Annualized recurring managerial return on average equity was 23.3%, up from 22.7% in the year-earlier quarter.

Our View on Itau Unibanco

ITUB’s third-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 #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Foreign Banks

HSBC Holdings HSBC reported third-quarter 2025 pre-tax profit of $7.30 billion, which declined 13.9% from the prior-year quarter.

HSBC’s results were primarily hurt by an increase in operating expenses, mainly from notable items, including legal provisions of $1.4 billion. Also, higher expected credit losses and other credit impairment charges were a headwind. However, an improvement in revenues supported results to some extent.

Deutsche Bank DB reported third-quarter 2025 earnings attributable to its shareholders of €1.56 billion ($1.82 billion), up 7% year over year.

DB’s increased revenues and lower provision for credit losses aided results. However, higher expenses were a spoilsport.

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