ITAÚ UNIBANCO - MATERIAL FACT - PROJECTIONS 2025

Rhea-AI Summary

Itaú Unibanco has released its financial projections for 2025, outlining key performance targets. The bank expects its total credit portfolio to grow between 4.5% and 8.5%, while financial margin with clients is projected to increase by 7.5% to 11.5%. The financial margin with the market is expected to range between R$1.0 billion and R$3.0 billion.

The bank forecasts cost of credit between R$34.5 billion and R$38.5 billion, with commissions and fees and insurance operations growth between 4.0% and 7.0%. Non-interest expenses are projected to grow between 5.5% and 8.5%, while the effective tax rate is expected to be between 27.0% and 29.0%. The company's cost of capital is estimated at around 15.0% per year as of February 2025.

Positive

• Projected growth in financial margin with clients of 7.5-11.5%
• Expected financial margin with market of R$1.0-3.0 billion
• Forecasted credit portfolio growth of 4.5-8.5%
• Projected growth in commissions and fees of 4.0-7.0%

Negative

• Significant cost of credit projected at R$34.5-38.5 billion
• Increasing non-interest expenses growth of 5.5-8.5%
• High cost of capital at 15.0% per year

Insights

Financial Analyst

The 2025 projections from Brazil's largest private bank reveal a strategic focus on sustainable growth amid evolving market conditions. The 4.5-8.5% credit portfolio growth target reflects a balanced approach between expansion and risk management, particularly noteworthy given Brazil's current economic landscape.

The financial margin with clients growth projection of 7.5-11.5% suggests potential for improved profitability in core operations, while maintaining the cost of credit between R$34.5 billion and R$38.5 billion demonstrates prudent risk management. The disclosed 15% cost of capital is particularly significant, as it sets a clear benchmark for evaluating business unit performance and capital allocation decisions.

The moderate 4-7% growth target for fees and insurance operations indicates a strategic push toward fee-based income diversification, important for maintaining profitability in a digital banking era. The 5.5-8.5% non-interest expense growth projection suggests ongoing investment in operational efficiency and digital transformation while managing inflation impacts.

These projections, combined with the 27-29% effective tax rate, point to a conservative yet growth-oriented strategy, balancing shareholder returns with market share preservation in Brazil's competitive banking sector. The guidance reflects the bank's adaptive approach to changing market dynamics while maintaining its leadership position in Latin America's largest economy.

SÃO PAULO, Feb. 5, 2025 /PRNewswire/ -- Itaú Unibanco Holding S.A. ("Itaú Unibanco" or "Company"), in compliance with the provisions of Article 157, paragraph 4 of Law No. 6,404/76 and Resolution No. 44/21 of the Brazilian Securities and Exchange Commission (CVM), informs its stockholders and the market in general that it released as of this date its projections for the year 2025 in accordance with item 3 ("Projections") of the Reference Form.

 

	Consolidated (Res. 4,966 criteria)
Total credit portfolio¹	Growth between 4.5% and 8.5%
Financial margin with clients	Growth between 7.5% and 11.5%
Financial margin with the market	Between R$1.0 bn and R$3.0 bn
Cost of credit²	Between R$34.5 bn and R$38.5 bn
Commissions and fees and results from insurance operations³	Growth between 4.0% and 7.0%
Non interest expenses	Growth between 5.5% and 8.5%
Effective tax rate	Between 27.0% and 29.0%

(1) Includes financial guarantees provided and private securities; (2) Composed of results from loan losses, impairment and discounts granted; (3) Commissions and fees (+) income from insurance, pension plan and premium bonds operations (-) expenses for claims (-) insurance, pension plan and premium bonds selling expenses.

It is important to mention that, as of February 2025, the company considers a cost of capital of around 15.0% p.y. in the management of its businesses.

Information on outlooks for the business, projections, and operational and financial goals are solely forecasts, based on management's current outlook in relation to the future of Itaú Unibanco. These expectations are highly dependent on market conditions, the general economic performance of the country, of the sector and the international markets. Therefore, our effective results and performance may differ from those forecasted in this prospective information.

São Paulo – SP, February 05, 2025.
Gustavo Lopes Rodrigues
Investor Relations Officer

Contact:

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---projections-2025-302369456.html

SOURCE Itaú Unibanco Holding S.A.

FAQ

What is Itaú Unibanco's (ITUB) projected credit portfolio growth for 2025?

Itaú Unibanco projects its total credit portfolio to grow between 4.5% and 8.5% in 2025.

What is ITUB's expected financial margin with clients growth for 2025?

The bank expects financial margin with clients to grow between 7.5% and 11.5% in 2025.

What is the projected cost of credit for Itaú Unibanco (ITUB) in 2025?

Itaú Unibanco projects its cost of credit to be between R$34.5 billion and R$38.5 billion in 2025.

What is ITUB's forecasted effective tax rate for 2025?

The bank expects an effective tax rate between 27.0% and 29.0% for 2025.

What is Itaú Unibanco's (ITUB) projected growth in commissions and fees for 2025?

Itaú Unibanco projects growth in commissions, fees, and insurance operations between 4.0% and 7.0% for 2025.