Group 1 - The company is the largest private bank in the country by assets and has the highest net profit in the banking system [1] - It leads in high-income and private banking sectors [1] Group 2 - The analyst has a beneficial long position in the shares of ITUB through stock ownership, options, or other derivatives [2] - The article expresses the analyst's own opinions and is not compensated for it, except from Seeking Alpha [2]

Core Viewpoint - Investors are evaluating Banco Macro (BMA) and Banco Itau (ITUB) to determine which stock offers better value for investment at the current time [1] Valuation Metrics - Both BMA and ITUB have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - BMA has a forward P/E ratio of 6.88, while ITUB has a forward P/E of 8.63, suggesting BMA is more undervalued [5] - The PEG ratio for BMA is 0.26, compared to ITUB's PEG ratio of 0.98, indicating BMA's expected earnings growth is more favorable relative to its price [5] - BMA's P/B ratio is 1.05, while ITUB's P/B ratio is 1.89, further supporting BMA's position as the more attractive value option [6] - BMA has a Value grade of A, while ITUB has a Value grade of C, highlighting the relative undervaluation of BMA [6]

Core Insights - The article compares Banco Macro (BMA) and Banco Itau (ITUB) to determine which stock offers better value for investors [1] Valuation Metrics - Banco Macro has a Zacks Rank of 1 (Strong Buy), while Banco Itau has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook for BMA [3] - BMA's forward P/E ratio is 7.43, compared to ITUB's 9.03, suggesting BMA is more attractively priced [5] - The PEG ratio for BMA is 0.28, indicating better value relative to expected earnings growth compared to ITUB's PEG ratio of 1.02 [5] - BMA's P/B ratio is 1.14, while ITUB's P/B ratio is 1.97, further supporting BMA's valuation advantage [6] - Based on these metrics, BMA earns a Value grade of B, while ITUB receives a Value grade of D [6] Conclusion - Overall, BMA is positioned as the superior value option due to its solid earnings outlook and favorable valuation metrics [7]

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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]

Core Viewpoint - Itau Unibanco Holding S.A. (ITUB) reported a recurring managerial profit of R$10.5 billion ($1.83 billion) for Q1 2025, reflecting a 5% year-over-year increase, supported by higher revenues and an increase in managerial financial margin, although offset by rising non-interest expenses [1] Financial Performance - Operating revenues for the quarter reached R$46.8 billion ($8.2 billion), marking a 9.4% increase year over year [2] - The managerial financial margin rose 18.6% year over year to R$30.4 billion ($5.3 billion) [2] - Commissions and fees increased by 2.9% to R$11.6 billion ($2 billion) [2] - Non-interest expenses totaled R$15.8 billion ($2.8 billion), up 9.8% year over year, primarily due to investments in technology [2] Efficiency and Credit Costs - The efficiency ratio improved to 38.1%, down 20 basis points from the previous year, indicating enhanced profitability [3] - The cost of credit charges increased by 10.3% year over year to R$9.6 billion ($1.7 billion) [3] Balance Sheet Overview - As of March 31, 2025, total assets decreased by 1.9% to R$2.62 trillion ($458.5 billion) [4] - Total liabilities, including deposits and borrowings, fell by 1.6% to R$2.59 trillion ($453.3 billion) [4] - The credit portfolio, including private securities and financial guarantees, grew by 3.7% to R$1.4 trillion ($245 billion) [5] Capital and Profitability Ratios - The Common Equity Tier 1 ratio was 12.6%, down from 13% a year earlier [6] - The annualized recurring managerial return on average equity increased to 22.3%, up from 21.9% in the previous year [6] Overall Assessment - The first-quarter results 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, are seen as positive developments [7]

Core Viewpoint - Investors are evaluating Banco Santander (SAN) and Banco Itau (ITUB) to determine which stock offers better value opportunities at present [1]. Group 1: Zacks Rank and Earnings Outlook - Banco Santander has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Banco Itau has a Zacks Rank of 4 (Sell) [3]. - The improving earnings outlook for Banco Santander suggests a favorable investment opportunity compared to Banco Itau [7]. Group 2: Valuation Metrics - Banco Santander has a forward P/E ratio of 7.74, whereas Banco Itau has a forward P/E ratio of 9.09 [5]. - The PEG ratio for Banco Santander is 0.90, indicating better value relative to its expected earnings growth compared to Banco Itau's PEG ratio of 1.11 [5]. - Banco Santander's P/B ratio is 0.93, significantly lower than Banco Itau's P/B ratio of 1.62, suggesting that SAN is undervalued compared to ITUB [6]. - Based on these valuation metrics, Banco Santander holds a Value grade of B, while Banco Itau has a Value grade of F [6].

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]