Itaú Unibanco Holding S.A. Q2 FY2025 earnings call

Results: Net income strong, ROE expanded. Loan Portfolio: Diverse growth across segments, with breakdowns of personal loans and SMEs. NII and NIM: Core margin up, NIM expanded with risk-adjusted NIM improvement. Service Fee Income: Card issuance, asset management, insurance/pension/capitalization grew. Credit Quality: Short-term and long-term delinquency well controlled, coverage ratios discussed. Non-Interest Expenses: Brazil up, personnel/transactional expenses controlled, tech investment. Capital: CET1 ratio expanded, call option on AT1s announced. One Itau Initiative: Over 10 million clients migrated, NPS 80, conversion rate 99.3%, engagement up. Digital Acceleration: Super App usage up, new products launched, PIX Credit growth.

In the second quarter of 2025, Itaú delivered a net income of BRL 11.5 billion, a 3.4% increase quarter-over-quarter and 14.3% year-over-year. Consolidated ROE was 23.3%, with Brazil ROE at 24.4%. NII with clients grew 3.1% QoQ and 15.4% YoY. NIM consolidated reached 9.2%, with Brazil NIM at 10%. The loan portfolio saw growth: individual loan book up 8.0% YoY and 0.7% QoQ; credit card loans up 1.6% QoQ; finance credit card portfolio grew 5.4% QoQ and 6.1% YoY; personal loans' unsecured credit portfolio up 1.1% QoQ and 12.1% YoY; SMEs loan portfolio grew 5.4% QoQ; mortgage loan book up 2.1% QoQ and 17.2% YoY; large companies portfolio up 1.4% QoQ and 6.4% YoY. Revenue contribution percentages were integrated into the overall financial performance discussion.

Reaffirmed credit portfolio growth, NII with market, cost of credit, fee income, non-interest expense growth. Updated NII with clients growth range from 7.5%-11.5% to 11%-14%. Effective tax rate range updated from 27%-29% to 28.5%-30.5%.

FX impact on loan portfolio growth. Volatility in efficiency ratio due to revenue and cost changes. Market conditions affecting service fee income. Competition impacting market share and profitability.

Q: Daniel Vaz from Safra Bank asked about the Rede network strategy and market share.

A: Milton Maluhy Filho responded on integrating Rede network into strategy, market share not an objective, focus on client relationship.

Q: Renato Meloni from Autonomous asked about finance credit portfolio initiatives.

A: Milton Maluhy Filho discussed factors like margin, client journey, and digital product evolution.

Q: Mario Pierry from Bank of America asked about extraordinary expenses and efficiency goal.

A: Milton Maluhy Filho talked about culture of continuous improvement, non-recurring provisions, and digital agenda impact on efficiency.

Q: Yuri Rocha Fernandes from JPMorgan asked about checking account fees and efficiency improvement.

A: Milton Maluhy Filho broke down into transactionality, package re-signification, and Retail/Wholesale performance.

Q: Bernardo Guttmann from Genial asked about ROI per segment reversal.

A: Milton Maluhy Filho discussed Retail margin expansion and Wholesale solid results.

Q: Henrique Navarro from Santander Brasil asked about corporate portfolio growth.

A: Milton Maluhy Filho spoke about diversified growth, discipline in price, and no change in appetite.

Q: Eduardo Rosman from BTG asked about credit business ROI and efficiency impact.

A: Milton Maluhy Filho clarified expected loss, credit performance, and efficiency enabling new client pockets.

Q: Thiago Bovolenta Batista from UBS asked about asset quality and app state.

A: Milton Maluhy Filho discussed credit portfolio management consistency and Super App user experience.

Q: Gustavo Schroden from Citibank asked about private payroll loans.

A: Milton Maluhy Filho spoke about product evolution, market participation, and quality growth.

Q: Marcelo Mizrahi asked about portfolio growth guidance and dividends.

A: Milton Maluhy Filho reaffirmed guidance, discussed portfolio factors, and directional dividend expectations.

Q: Nicolas Alejandro Riva from Bank of America asked about AT1s.

A: Milton Maluhy Filho explained liability management, no Tier 2 impact, and AT1 utilization.

Q: Eduardo Nishio from Genial asked about new credit pockets and delinquency.

A: Milton Maluhy Filho discussed resilient portfolio, delinquency normalization, and new client segment evolution.

Q: Carlos Gomez-Lopez from HSBC asked about corporate spreads and mortgage portfolio.

A: Milton Maluhy Filho talked about competitive spreads, mortgage growth, and disciplined underwriting.

Q: Natalia Corfield from JPMorgan asked about AT1 regulation.

A: Milton Maluhy Filho clarified no restriction, temporal mismatch in AT1 issuance/exercise, and capital utilization comfort.