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Company Overview - Itau Unibanco Holding S.A. is a major financial institution in Brazil, recognized as one of the largest banks in Latin America, competing with Banco Bradesco and Banco do Brasil [1] Stock Split Announcement - A stock split will occur on December 29, 2025, where shareholders will receive 103 shares for every 100 shares held, aimed at making shares more accessible to investors [2] Current Stock Performance - The current stock price of ITUB is $7.11, with a slight decrease of 0.21% or $0.015, and has fluctuated between $7.09 and $7.13 during the trading day [2] - Over the past year, the stock has reached a high of $8.13 and a low of $4.42 [2] Analyst Recommendations - Analysts have a consensus recommendation of "Moderate Buy," with two analysts rating it as a hold, three as a buy, and one as a strong buy [3] - The average twelve-month price target is approximately $7.09, with JPMorgan Chase increasing their price target from $7.00 to $8.00, assigning an "overweight" rating [3] Market Capitalization and Trading Activity - The market capitalization of ITUB is approximately $76.28 billion, indicating its significant presence in the financial sector [4] - Today's trading volume is 4,262,025 shares, reflecting active investor interest [4] - Weiss Ratings has reaffirmed a "buy" rating, indicating confidence in the company's future performance [4]

Key Takeaways ITUB advises long-term savers to allocate 13% of portfolios to Bitcoin.ITUB cites Bitcoin's global, decentralized nature for diversification and currency-volatility hedging.ITUB expects Bitcoin exposure via regulated vehicles like its spot ETF BITI11, not direct ownership. In a striking shift for traditional finance in Latin America, Itaú Unibanco Holding S.A. (ITUB) is now advising that savers consider holding a small allocation of Bitcoin in their investment portfolios. According to the bank ...

The asset management arm of the Brazilian megabank Itaú has recommended that savers keep between 1% and 3% of their wealth in Bitcoin. The recommendation comes almost exactly two years after its banking arm Itaú Unibanco began offering its customers Bitcoin and Ethereum trading options, and three years after it launched its first Bitcoin exchange-traded fund, or ETF. Renato Eid, Itaú Asset Management’s head of beta strategies and responsible investment, explained, in a column on the Itaú investment port ...

Core Viewpoint - Itaú Unibanco Holding SA recommends clients allocate up to 3% of their portfolios to Bitcoin as a hedge against the depreciation of the Brazilian real and to capture returns uncorrelated with domestic economic cycles [1][2][3]. Group 1: Investment Strategy - The bank suggests a Bitcoin allocation of 1% to 3% to enhance portfolio diversification without significantly increasing overall risk [2][3]. - Itaú emphasizes that Bitcoin should not be a core holding but rather a complementary asset tailored to an investor's risk profile [2][3]. Group 2: Market Context - Analysts at Itaú highlight the dual challenges of global price uncertainty and domestic currency fluctuations, necessitating a new approach to portfolio construction [2][3]. - The bank points out the relatively low correlation between Bitcoin and traditional asset classes, which can provide partial protection against currency depreciation [3][4]. Group 3: Long-term Perspective - The approach to Bitcoin investment requires moderation, discipline, and a long-term horizon, avoiding reactions to short-term price fluctuations [4][5]. - Itaú's recommendation aligns with global guidance, positioning it similarly to major US banks that suggest allocations of up to 4% for their clients [5][6]. Group 4: Asset Characteristics - The bank characterizes Bitcoin as a hybrid asset, combining high-risk elements with the qualities of a global store of value, offering resilience that fixed income cannot guarantee [6].

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]