Q2 2026 Itau Unibanco Holding SA Earnings Call Transcript
Key Points
- Itau Unibanco Holding SA (ITUB) delivered a strong quarter with recurring net income of 12.4 billion reais, up 7.8% year-over-year, and a high consolidated ROE of 24.3% (25.1% adjusted to a CET1 ratio of 11.5%).
- The loan portfolio grew healthily by 2.7% quarter-over-quarter and nearly 10% year-over-year, driven by disciplined capital allocation and strong growth in private payroll loans (up 90.1% YoY) and mortgages (up 13.3% YoY).
- Credit quality remained excellent, with stable NPL indicators and cost of credit at a remarkably consistent 2.7% of the portfolio, demonstrating strong risk management despite a challenging macro environment.
- Non-interest expenses grew only 3.1% year-over-year, leading to an improved efficiency ratio of 35.5% in Brazil and 37.4% on a consolidated basis, reflecting strong cost discipline.
- The bank's capital position strengthened, with a CET1 ratio of 12.3%, up 30 basis points quarter-over-quarter, showcasing robust capital generation and a solid foundation for future growth and potential dividend distributions.
- Itau Unibanco Holding SA (ITUB) revised its full-year guidance for commissions, fees, and insurance results down to 2-5% growth from 5-9%, citing moderation in economic activity and weaker performance in credit card-related fees.
- The bank expects a further 10 basis point increase in SME delinquency (NPL over 90 days) next quarter due to the mechanical expiration of grace periods on government-backed programs, before stabilizing.
- NII with clients, while solid, is growing below the pace of the loan portfolio, with management noting headwinds from lower working capital effects and volatility in structured operations.
- The bank faces a challenging macroeconomic environment with high household and corporate indebtedness, restrictive interest rates, and potential for further rate hikes in the US, which could pressure credit quality and growth.
- Management highlighted increasing competition and 'irrationality' in the credit market, with an excess of credit supply and over-indebted clients, requiring the bank to cede market share in certain segments to maintain discipline.
Good morning everyone, my name is Gustavo and it is a pleasure to have you joining us for our second quarter 2026 earnings video conference. As always, Milton will walk you through our performance.
And afterwards we will have our traditional Q&A session during which analysts and investors will be able to interact directly with us. Before handing the floor over to Milton, I would like to share a few instructions to help you make the most of today's event. For those accessing the webcast through our website, there are three audio options available: the entire content in Portuguese, the entire content in English, or the original audio.
The first two options offer simultaneous translation. To select your preferred option, simply click on the flag icon located in the upper left corner of your screen. Questions can also be submitted via WhatsApp to the number displayed on your screen. Today's presentation is available for download on both our hot site and as always, on our investor relations website. With that, I
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