Investors interested in Banks - Foreign stocks are likely familiar with Banco Macro (BMA) and Banco Itau (ITUB) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revisio ...

Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Macro (BMA) or Banco Itau (ITUB) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our ...

Investors looking for stocks in the Banks - Foreign sector might want to consider either Bancolombia (CIB) or Banco Itau (ITUB) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets c ...

Core Insights - Itaú Unibanco is a significant player in the Latin American banking sector, with a strong presence in Brazil and important operations throughout the region [1] Company Overview - Itaú Unibanco operates as a pillar of the Latin American banking system, indicating its stability and influence in the financial landscape [1]

Itau Unibanco Holding S.A. (ITUB) reported recurring managerial results of R$10.5 billion ($1.83 billion) for the first quarter of 2025, which increased 5% 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 IncreaseOperating revenues were R$46.8 billion ($8.2 billion) in the reported quarter, up 9.4% year over year.The managerial financial margin increased 18.6% year ov ...

Investors interested in stocks from the Banks - Foreign sector have probably already heard of Banco Santander (SAN) and Banco Itau (ITUB) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our ...

Financial Performance - Operating revenues increased by 8.4% to R$168,050 million for the year ended December 31, 2024, compared to R$154,971 million in 2023[742] - Net income attributable to owners of the parent company rose by 24.1% to R$41,085 million for the year ended December 31, 2024, from R$33,105 million in 2023[744] - Net interest income increased by R$6,136 million, or 6.3%, for the year ended December 31, 2024, primarily due to a R$19,873 million increase in interest and similar income[744] - Non-interest income grew by 12.1%, or R$6,943 million, for the year ended December 31, 2024, driven by a 106.5% increase in other income[747] - Other operating expenses increased by 4.0% to R$88,183 million for the year ended December 31, 2024, from R$84,826 million in 2023[759] Asset Quality - Expected loss from financial assets increased by R$1,866 million, or 6.1%, for the year ended December 31, 2024, mainly due to an increase in expected loss with other financial assets[751] - The 15 to 90 days NPL ratio decreased by 30 basis points to 2.0% as of December 31, 2024, compared to December 31, 2023[754] - The 90-day NPL ratio decreased by 50 basis points to 2.6% as of December 31, 2024, attributed to improved loan quality in recent vintages[758] Taxation - Current and deferred income and social contribution taxes amounted to R$5,428 million for the year ended December 31, 2024, down from R$5,823 million in 2023[760] - The managerial adjustments of tax effects for current and deferred income and social contribution taxes were R$5,781 million for the year ended December 31, 2024, compared to R$4,855 million in 2023[761] Business Segments - Net income from the Retail Business segment increased by 15.5% to R$15,124 million for the year ended December 31, 2024, compared to R$13,099 million in 2023[773] - Operating revenues for the Retail Business segment rose by R$4,462 million, or 4.6%, driven by a 4.8% increase in the interest margin due to higher average credit volume[773] - Non-interest income in the Retail Business segment increased by 4.3% to R$39,101 million, attributed to higher revenues from insurance products and card issuance[773] - Net income from the Wholesale Business segment grew by 5.9% to R$20,913 million for the year ended December 31, 2024, from R$19,756 million in 2023[776] - Operating revenues for the Wholesale Business segment increased by R$3,383 million, or 6.2%, due to a 3.2% rise in the interest margin and a 14.4% increase in non-interest income[777] - The Activities with the Market + Corporation segment saw net income rise by 94.2% to R$5,366 million, with operating revenues increasing by R$4,315 million, or 77.4%[781] Financial Position - Total assets increased by R$311,375 million, or 12.2%, to R$2,854,475 million as of December 31, 2024, primarily due to growth in financial assets at amortized cost[784] - Financial assets at amortized cost increased by R$226,579 million, or 13.4%, mainly due to higher loan and lease operations and interbank deposits[784] - Total loans and lease operations increased by R$114,903 million, or 12.6%, reaching R$1,025,493 million as of December 31, 2024, compared to R$910,590 million in 2023[788] - Financial liabilities grew by R$238,288 million, or 11.9%, totaling R$2,239,979 million as of December 31, 2024[790] - Total stockholders' equity attributed to the owners of the parent company reached R$211,090 million, an increase of R$20,913 million, or 11.0%[790] Capital and Liquidity - The Liquidity Coverage Ratio (LCR) improved to 221.3% as of December 31, 2024, compared to 191.8% in 2023, significantly exceeding the Central Bank's minimum requirement of 100%[814] - Total capital increased to R$227,602 million, up R$20,740 million from R$206,862 million in 2023, with a total capital ratio of 16.5%[807] - Common Equity Tier I (CET1) capital rose to R$188,265 million, maintaining a CET1 ratio of 13.7%[805] - As of December 31, 2024, the Net Stable Funding Ratio (NSFR) was 122.0%, down from 126.9% in 2023, indicating a stable liquidity position above the Central Bank's minimum requirement of 100%[818][819] Investments and Expenditures - Capital expenditures for the year ended December 31, 2024, totaled R$7,368 million, a decrease of 19.8% from R$9,191 million in 2023[848] - Fixed assets decreased by 52.0% to R$1,833 million in 2024 from R$3,815 million in 2023[848] - Intangible assets increased by 3.0% to R$5,535 million in 2024 compared to R$5,376 million in 2023[848] Risk Management - The sensitivity analysis for interest rate risk indicated potential losses of R$10,576.6 million under Scenario III for the trading and banking portfolios[856] - The cash flow hedge strategy aims to protect against future cash flows of interest payments, while fair value hedges protect against changes in market risk due to variable rates[737] Strategic Initiatives - The company continues to explore growth opportunities both domestically and internationally as part of its strategic review[885]

Core Viewpoint - Investors in the Banks - Foreign sector should consider The Bank of East Asia Ltd. (BKEAY) as a more attractive option compared to Banco Itau (ITUB) due to its stronger valuation metrics and better earnings estimate revisions [1][3][7] Valuation Metrics - BKEAY has a forward P/E ratio of 6.34, while ITUB has a forward P/E of 8.10, indicating BKEAY is undervalued relative to ITUB [5] - The PEG ratio for BKEAY is 0.82, compared to ITUB's PEG ratio of 0.99, suggesting BKEAY offers better value considering its expected earnings growth [5] - BKEAY's P/B ratio is 0.26, significantly lower than ITUB's P/B of 1.45, further highlighting BKEAY's undervaluation [6] Analyst Outlook - BKEAY holds a Zacks Rank of 2 (Buy), indicating a positive analyst outlook, while ITUB has a Zacks Rank of 4 (Sell), reflecting a less favorable view [3] - The stronger estimate revision activity for BKEAY suggests a more optimistic future performance compared to ITUB [7]

Core Insights - The article compares The Bank of East Asia Ltd. (BKEAY) and Banco Itau (ITUB) to determine which stock offers better value for investors [1] Group 1: Zacks Rank and Earnings Outlook - BKEAY has a Zacks Rank of 2 (Buy), while ITUB has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for BKEAY [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that BKEAY is likely experiencing a more favorable earnings outlook [3] Group 2: Valuation Metrics - BKEAY has a forward P/E ratio of 6.63, compared to ITUB's forward P/E of 7.12, indicating that BKEAY may be undervalued relative to ITUB [5] - The PEG ratio for BKEAY is 0.85, while ITUB's PEG ratio is 0.88, suggesting that BKEAY has a better valuation considering its expected earnings growth [5] - BKEAY's P/B ratio is 0.26, significantly lower than ITUB's P/B of 1.35, further indicating that BKEAY may be undervalued [6] Group 3: Overall Value Assessment - Based on various valuation metrics, BKEAY holds a Value grade of A, while ITUB has a Value grade of D, reinforcing the conclusion that BKEAY is the superior value option [7]

Core Insights - Itaú Unibanco reported record net profits of R$10.9 billion, reflecting a 16% year-over-year growth, although it slightly missed EPS estimates [1] Financial Performance - The company achieved a net profit of R$10.9 billion for the quarter [1] - This represents a 16% increase compared to the same quarter last year [1] - EPS estimates were slightly missed, indicating potential areas for improvement in future earnings [1]