Itau Unibanco S.A.(US:ITUB)2025-11-05 16:47Financial 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].