Group 1 - The Value Lab focuses on long-only value investment ideas, targeting international mispriced equities with a portfolio yield of approximately 4% [1] - Itau Unibanco (ITUB) has shown solid performance, driven by corporate growth in the credit portfolio due to government initiatives [2] - The bank's net interest margins (NIMs) remain strong, supported by a restrictive monetary policy [2] Group 2 - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are downside limited and expected to yield non-correlated, outsized returns [2] - The society operates The Value Lab, providing members with real-time portfolio updates, 24/7 chat support, and regular global market news [2]

Core Insights - Itau Unibanco Holding S.A. (ITUB) reported a recurring managerial profit of R$11.9 billion ($2.16 billion) for Q3 2025, reflecting an 11.2% year-over-year increase driven by higher revenues and an increase in managerial financial margin, although non-interest expenses rose [1][9] Financial Performance - Operating revenues for the quarter reached R$46.6 billion ($8.5 billion), marking a 9.1% increase year over year [2] - The managerial financial margin increased by 10.1% year over year to R$31.4 billion ($5.7 billion) [2] - Commissions and fees rose 4.7% year over year to R$11.7 billion ($2.1 billion) [2] - Non-interest expenses totaled R$17.1 billion ($3.1 billion), up 7.5% year over year, primarily due to the collective wage labor agreement [2] Efficiency and Credit Metrics - The efficiency ratio improved to 39.5%, down 7 basis points from the previous year, indicating increased profitability [3][9] - The cost of credit charges rose 40.7% year over year to R$7.5 billion ($1.4 billion) [3] Balance Sheet Strength - As of September 30, 2025, total assets increased by 3.4% to R$2.99 trillion ($545.3 billion) [4] - Total liabilities, including deposits and borrowings, rose 3.2% to R$2.74 trillion ($499.5 billion) [4] - The credit portfolio, including private securities and financial guarantees, increased nearly 1% to R$1.4 trillion ($255 billion) [5] Capital and Profitability Ratios - The Common Equity Tier 1 ratio was 13.5%, down from 13.7% a year earlier [6] - The annualized recurring managerial return on average equity increased to 23.3%, up from 22.7% in the previous year [6] Overall Assessment - The results for Q3 were positively influenced by the rise in managerial financial margin and a declining efficiency ratio, indicating improved profitability [7] - Growth in commissions and fees, along with a focus on maintaining a healthy credit portfolio, is viewed as encouraging [7]

Financial Performance - The total credit portfolio grew by 6.4% year-over-year, with a 7.8% increase in Brazil across all segments, while the Latin America portfolio decreased by 0.3%[208]. - Financial margin with clients increased by 13.4% to R$90.2 billion, driven by growth in the credit portfolio and higher liabilities' margin[208]. - Operating revenues reached R$136.8 billion, reflecting a 9.6% increase compared to R$124.9 billion in the same period last year[209]. - Non-interest expenses rose by 8.9% to R$49.4 billion, attributed to strategic investments in technology and collective wage negotiations[209]. - Net income increased by 13.7% to R$33.7 billion, up from R$29.7 billion in the previous year[209]. - The recurring managerial return on annualized average equity improved by 70 basis points to 22.9%[209]. - Market capitalization increased by 20.1% to R$397.2 billion from R$330.8 billion year-over-year[209]. - Consolidated net income for the period from January 1 to September 30, 2025, was R$34,446 million[236]. - Total comprehensive income for the period was R$30,721 million, after accounting for total other comprehensive income of R$ (3,290) million[246]. Assets and Liabilities - Total assets increased to R$2,996,463 million as of September 30, 2025, up from R$2,886,107 million[230]. - Total liabilities reached R$2,780,697 million, compared to R$2,674,458 million previously[232]. - Total stockholders' equity increased to R$215,766 million, compared to R$211,649 million in the previous period[232]. - The company’s current and non-current liabilities totaled R$262,224 million, with deposits amounting to R$95,993 million[243]. - The company’s investments in subsidiaries were valued at R$199,279 million, representing a significant portion of its permanent assets[243]. Credit and Risk Management - The provision for expected credit loss was R$23,808 million, with expenses for provision at R$27,522 million[234]. - The company recognized expected credit losses using a three-stage approach, with Stage 3 applicable to problem assets where a 100% probability of default is considered[319]. - The total provision for expected credit loss was R$53,371 million, reflecting a significant increase in credit risk provisions[280]. - ITAÚ UNIBANCO HOLDING uses macroeconomic forecasts to estimate expected credit loss, focusing on projected default rates influenced by factors such as Selic Rate and unemployment rate[321]. Investments and Acquisitions - The company launched new features to enhance security for business clients, including the Companies Security Hub and Pix Alert[211]. - A dedicated structure for crypto fund management was established through Itau Asset, reinforcing the bank's commitment to innovative financial solutions[213]. - In 2023, ITAÚ UNIBANCO HOLDING increased its ownership interest in Zup I.T. Serviços em Tecnologia e Inovação S.A. by 20.57% (2,228,342 shares) for R$199, raising its total ownership to 72.51%[363]. - ITAÚ UNIBANCO HOLDING entered into a share purchase agreement for Avenue Holding Cayman Ltd, acquiring 35% of its capital for approximately R$563, with plans to increase ownership to 50.1% by Q4 2025[365]. Income and Expenses - Income related to financial operations amounted to R$251,955 million, while expenses related to financial operations were R$168,402 million, resulting in a gross income of R$59,745 million[234]. - The company generated R$35,853 million from commissions and banking fees, contributing to overall operating income[234]. - The company declared dividends and interest on capital amounting to R$9,503 million[241]. - Dividends and interest on capital paid amounted to R$27.811 million, reflecting the company's commitment to returning value to shareholders[251]. Regulatory and Accounting Changes - The company adopted new accounting standards effective January 1, 2025, which may impact the classification and measurement of financial instruments[261]. - The company adopted the new lease accounting standard (CPC 06 (R2)) effective January 1, 2025, which requires recognizing all leases as a right of use and corresponding liability[281]. - The transition to CMN Resolution No. 4,966/21 regarding financial instruments is expected to be completed by January 1, 2027, with potential impacts under evaluation[282]. Financial Instruments and Derivatives - Financial assets are classified at fair value through profit or loss, with equity instruments designated at fair value through other comprehensive income when held for purposes other than trading[306]. - Derivatives used for hedging are classified as cash flow hedges, with effective portions recognized in Stockholders' Equity and ineffective portions recorded in the Statement of Income[324]. - The total derivatives by reference amount is R$12,697,006 million, with futures accounting for R$1,042,915 million and options for R$7,254,437 million[388]. Miscellaneous - The company has a presence in 18 countries and territories, offering a wide variety of financial products and services[257]. - The company recognized a foreign exchange variation in foreign investments of R$ (5,867) million, impacting its comprehensive income[246]. - The recoverable amount of non-financial assets is assessed semiannually, considering internal and external factors that may impact value[340].

Financial Data and Key Metrics Changes - The company reported a strong net income of BRL 11.9 billion, reflecting a growth of 3.2% compared to Q2 2025 and 11.3% year over year [3] - The consolidated Return on Equity (ROE) reached 23.3%, with Brazil's ROE at 24.2%, indicating profitability expansion [3][4] - The Common Equity Tier 1 (CET1) capital ratio increased to 13.5%, with a profitability level of nearly 27% in Brazil [4][29] Business Line Data and Key Metrics Changes - The loan portfolio grew to BRL 1.4 trillion, up 0.9% from Q2 and 6.4% year over year, with a 1.7% growth excluding foreign exchange impact [5] - Mortgage loans increased by 2.0% quarter over quarter and 15.2% year over year, with a market share of 47% among private banks [6] - The SME loan portfolio rose by 1.1% in the quarter and 7.5% year over year, with government programs showing a growth of 10.9% in the quarter [11][12] Market Data and Key Metrics Changes - The company reported a total transaction volume of BRL 258 billion, an increase of 6.6% in the quarter and 12.8% year over year [17] - The revenue from advisory services and brokerage grew by 33.7% in the quarter, although it declined for the nine-month period due to last year's exceptional performance [18] Company Strategy and Development Direction - The company aims to maintain a balanced portfolio with solid results in both wholesale and retail businesses, focusing on long-term value creation [31] - The management emphasized the importance of capital discipline and efficient growth, particularly in a mixed macroeconomic scenario [35][39] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenges posed by high interest rates and a selective credit market but expressed confidence in finding growth opportunities [35] - The company is committed to a proactive approach in managing its portfolio and capital allocation, ensuring a robust capacity to react to market changes [36] Other Important Information - The efficiency ratio for the nine-month period was reported at 36.9% in Brazil, the lowest in the industry compared to peers [27] - The company updated its guidance for market NII, narrowing the range to between BRL 3 billion and BRL 3.5 billion for the year [30] Q&A Session Summary Question: How does the current macroeconomic scenario affect strategic decisions for 2026? - The management highlighted the importance of maintaining a strong discipline in capital allocation and emphasized the existence of growth opportunities despite uncertainties [35] Question: What is the trajectory for the SME segment, particularly regarding government programs? - The management expressed confidence in the growth of the SME segment, citing effective management of government programs and a commitment to quality client selection [40][41] Question: Can you elaborate on client margins and the dynamics affecting them? - The management explained that recent fluctuations in margins were influenced by seasonal factors and the performance of structured operations, indicating a return to stability moving forward [44][46]

Financial Performance - Recurring Managerial Result reached R$119 billion in 3Q25, a 32% increase compared to 2Q25 and an 113% increase compared to 3Q24[3] - ROE (Recurring Managerial) in Brazil was 242% in 3Q25, a 02 percentage point increase compared to 2Q25 and a 04 percentage point increase compared to 3Q24[3] - Commissions and insurance totaled R$147 billion in 3Q25, up 40% from 2Q25 and 71% from 3Q24[3] - The company's 9M25 operating revenues reached R$136832 billion, a 96% increase compared to R$124858 billion in 9M24[37] - The financial margin with clients increased by 134% from 9M24 to 9M25, reaching R$90198 billion[37] Credit Portfolio - The consolidated credit portfolio reached R$14020 billion in Sep-25, a 09% increase compared to Jun-25 and a 64% increase compared to Sep-24[4,6] - Excluding FX variations, the consolidated credit portfolio increased by 17% compared to Jun-25 and 75% compared to Sep-24[4,6] - The 90-day NPL (Non-Performing Loan) ratio remained stable at 19% for the consolidated portfolio and 20% for Brazil in Sep-25 compared to Jun-25[5] Expenses and Efficiency - Non-interest expenses totaled R$172 billion in 3Q25, a 40% increase compared to 2Q25 and a 76% increase compared to 3Q24[29] - The efficiency ratio for Brazil improved from 445% in 9M24 to 425% in 9M25[28,29] Capital Adequacy - The Common Equity Tier I (CET I) ratio stood at 135% in Sep-25, a 04 percentage point increase compared to Jun-25 and a 02 percentage point increase compared to Sep-24, totaling R$13371 billion[3]

Core Insights - Itaú Unibanco Holding S.A. has announced the availability of its Condensed Financial Statements for the fiscal year ending September 30, 2025, along with the Management Discussion and Analysis for the third quarter of 2025 [1][2]. Financial Results Announcement - An interactive meeting to discuss the 3Q25 results will take place on November 5, 2025, at 8:00 a.m. (EST) [2][4]. - The meeting will be conducted in both Portuguese and English, allowing for broader accessibility to stakeholders [4]. Investor Relations - Shareholders and the market can access detailed financial information through the Investor Relations website [1][2]. - Registration for the interactive meeting can be completed via a provided link [2].

Core Insights - Brazilian lender Itau Unibanco reported third-quarter net recurring profit that met analysts' estimates [1] - The company raised its projection for 2025 net interest income in line with market expectations [1] Financial Performance - The third-quarter net recurring profit was consistent with analysts' forecasts, indicating stable financial performance [1] - The increase in the projection for net interest income suggests a positive outlook for future earnings [1]

Core Viewpoint - The article compares NatWest Group (NWG) and Banco Itau (ITUB) to determine which stock is more attractive for value investors [1] Valuation Metrics - Both NWG and ITUB currently have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - NWG has a forward P/E ratio of 8.87, while ITUB has a forward P/E of 9.34, suggesting NWG is relatively cheaper [5] - NWG's PEG ratio is 0.73, compared to ITUB's PEG ratio of 1.05, indicating NWG may offer better value considering expected earnings growth [5] - NWG has a P/B ratio of 1.11, while ITUB's P/B ratio is 1.98, further supporting NWG's position as the more undervalued stock [6] - Based on these valuation metrics, NWG holds a Value grade of A, while ITUB has a Value grade of D, indicating NWG is the superior value option [6]

Core Viewpoint - Banco Itau (ITUB) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, highlighting the importance of earnings revisions in stock price movements [1][4]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, with institutional investors using these estimates to determine fair value [4][6]. Recent Developments for Banco Itau - Banco Itau's earnings estimates have been rising, with a 3.7% increase in the Zacks Consensus Estimate over the past three months, projecting earnings of $0.76 per share for the fiscal year ending December 2025, indicating no year-over-year change [8][5]. - The upgrade to Zacks Rank 1 places Banco Itau in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term due to improved earnings outlook [10][9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988, demonstrating the effectiveness of this rating system [7][9].

Core Viewpoint - The article compares Barclays (BCS) and Banco Itau (ITUB) to determine which stock presents a better undervalued investment opportunity for investors [1]. Group 1: Company Rankings - Barclays has a Zacks Rank of 1 (Strong Buy), indicating a stronger improvement in its earnings outlook compared to Banco Itau, which has a Zacks Rank of 2 (Buy) [3]. - The Zacks Rank emphasizes earnings estimates and revisions, which are critical for value investors [2]. Group 2: Valuation Metrics - Barclays has a forward P/E ratio of 9.17, while Banco Itau has a forward P/E of 9.50, suggesting that Barclays may be more undervalued [5]. - The PEG ratio for Barclays is 0.44, indicating a favorable valuation relative to its expected earnings growth, whereas Banco Itau has a PEG ratio of 1.07 [5]. - Barclays also has a P/B ratio of 0.71, compared to Banco Itau's P/B of 2.01, further supporting the notion that Barclays is undervalued [6]. Group 3: Overall Assessment - Based on the improving earnings outlook and favorable valuation metrics, Barclays is considered the superior value option at this time [7].