ITAÚ UNIBANCO - MATERIAL FACT - Payment of dividends and interest on capital
- The company is paying dividends and interest on capital for the fiscal year 2023, totaling R$11.0 billion.
- The amounts paid per share as interest on capital are the same for common (ITUB3) and preferred (ITUB4) shares.
- None.
Insights
The announcement of Itaú Unibanco's dividend payment represents a significant return of capital to shareholders, amounting to R$11.0 billion for the fiscal year 2023. This decision reflects the bank's financial health and its ability to generate sufficient profit to reward its investors. The dividend yield, calculated as the annual dividend per share divided by the share price, is a key metric for investors as it provides insight into the return on investment from dividends alone.
Additionally, the approval of interest on capital payments further enhances shareholder value. This form of distribution is tax-advantaged in Brazil, as it allows the company to deduct these payments for income tax purposes, potentially leading to a higher net income and, subsequently, higher dividends in the future. The total net amount of R$1.564184 per share combines both dividends and interest on capital, offering a comprehensive view of the income shareholders can expect to receive.
Itaú Unibanco's dividend declaration can influence investor sentiment and stock market performance. Dividend announcements often signal a company's confidence in its financial stability and future earnings prospects. Investors might interpret the sizable dividend as a positive indicator of Itaú Unibanco's profitability and operational efficiency. This can lead to increased investor interest and potentially a rise in stock price as the ex-dividend date approaches.
Moreover, the timing and size of dividend payments can impact the liquidity and volatility of the stock. As the payment date nears, trading volumes may increase as investors position themselves to capture the dividend. The distribution of such a substantial amount could also influence the banking sector's performance, as competitors may be pressured to match or exceed shareholder returns to maintain investor interest.
The distribution of dividends and interest on capital by a major bank like Itaú Unibanco can have broader economic implications. The injection of R$11.0 billion into the economy through shareholders can stimulate consumption and investment, potentially leading to a multiplier effect. Such distributions can also reflect the overall health of the financial sector and the economy, as banks typically only distribute large dividends when they have accrued excess capital and have a positive outlook on future economic conditions.
In a macroeconomic context, the decision to pay out dividends can be seen as a signal of economic stability and growth. It may also impact monetary policy, as central banks monitor such financial indicators when considering interest rate adjustments to control inflation and stimulate economic growth.
SÃO PAULO, Feb. 5, 2024 /PRNewswire/ -- ITAÚ UNIBANCO HOLDING S.A. ("Company") informs its stockholders that, as of this date, the Board of Directors has resolved on the payment of dividends to be made on March 08, 2024, in the amount of
The Board of Directors has also approved the payment of the interest on capital[1], also to be made on March 08, 2024, already declared in accordance with the Material Facts disclosed on:
- September 6, 2023, in the gross amount of
R (net amount of$0.26 93R ) per share, based on the final stockholding position recorded on September 18, 2023; and$0.22 8905 - November 24, 2023, in the gross amount of
R (net amount of$0.24 724R ) per share, based on the final stockholding position recorded on December 6, 2023.$0.21 0154
Therefore, stockholders holding shares in the stockholding positions mentioned above will receive on March 8, 2024 dividends and interest on capital in the net amount of
If you have any questions, please access www.itau.com.br/investor-relations and follow the route: services to investors > Contact IR.
RENATO LULIA JACOB
Group Head of Investor Relations and Market Intelligence
1 Except for the corporate stockholders able to prove that they are immune or exempt from such withholding.
Note: The amounts paid per share as interest on capital are the same for common (ITUB3) and preferred (ITUB4) shares.
Contacto: Itaú Unibanco – Comunicação Corporativa
Phone: (11) 5019-8880 / 8881
E-mail: imprensa@itau-unibanco.com.br
View original content:https://www.prnewswire.com/news-releases/itau-unibanco---material-fact--payment-of-dividends-and-interest-on-capital-302053819.html
SOURCE Itaú Unibanco Holding S.A.
FAQ
What is the total amount of dividends and interest on capital to be paid by ITAÚ UNIBANCO HOLDING S.A.?
When will the dividends and interest on capital be paid?
Are the amounts paid per share as interest on capital the same for common (ITUB3) and preferred (ITUB4) shares?
