Navigating Growth and Stability in a Shifting Economic Landscape
Financial Achievements and Profitability
Itaú Unibanco demonstrated robust financial health in the second quarter of 2026, recording a recurring net income of BRL 12.4 billion. This figure represents a 7.8% increase year-over-year and a 1% rise from the previous quarter, underscoring the bank's consistent profitability. The consolidated Return on Average Equity (ROE) reached an impressive 24.3%, with the Brazil-specific ROE slightly higher at 25.7%, reflecting effective capital utilization and strong returns.
Expansion and Quality of the Loan Portfolio
The bank's total credit portfolio expanded to BRL 1.522 trillion, marking a 9.6% year-over-year increase and a 2.7% quarter-over-quarter growth. This expansion was driven by a strategic focus on collateralized products. Notably, the mortgage loan portfolio surged by 13.3% year-over-year to BRL 152.2 billion, surpassing the credit card portfolio in volume for the first time. Small and medium-sized enterprise (SME) loans also saw significant growth, benefiting from government-backed programs.
Effective Management of Net Interest Income and Expenses
Net Interest Income (NII) with clients reached BRL 32.6 billion, growing 3.3% quarter-over-quarter and 5.1% year-over-year. This solid performance was distributed across various components, including positive contributions from average volumes and asset spreads. Concurrently, noninterest expenses were meticulously managed, increasing by a modest 3.1% year-over-year, which remained below inflation and collective bargaining adjustments. This cost discipline resulted in an improved efficiency ratio of 37.4% consolidated and 35.5% in Brazil.
Maintaining Strong Capital Ratios and Risk Management
Itaú Unibanco sustained a strong capital position with a Common Equity Tier 1 Ratio of 12.3%, a 30 basis point increase from March 2026. The bank's risk-adjusted Net Interest Margin (NIM) stood at 6.2% consolidated and 6.7% in Brazil, reflecting prudent portfolio management. The Non-Performing Loan (NPL) ratio (over 90 days) remained stable at 1.9% consolidated, with a slight increase in the SME segment attributed to the expiration of government program grace periods, which management anticipates stabilizing.
Evolving Revenue Streams and Strategic Adjustments
Revenues from insurance, pension plans, and premium bonds grew by 8.7% year-over-year, driven by consistent growth in core insurance operations. Advisory services and brokerage revenue saw a substantial 32.5% year-over-year increase, primarily due to fixed income transactions. However, the guidance for commission and fees was revised downward to a 2% to 5% growth range, reflecting current economic activity levels. The bank is strategically redefining its current account packages and focusing on high-income clients for credit card issuance to enhance customer lifetime value.
Proactive Approach to Credit Quality and Economic Headwinds
Despite rising household and corporate indebtedness in a restrictive interest rate environment, Itaú Unibanco has effectively navigated the credit cycle. The impact of the Desenrola debt-refinancing program was minimal on the bank's financial results, reinforcing the robustness of its risk management framework. The bank continues to prioritize disciplined capital allocation and aims to grow its portfolio with resilient clients, ensuring long-term value creation even amidst challenging market conditions.
Commitment to Digital Transformation and Efficiency
The bank's multiyear investments in cloud and digital transformation have significantly closed the competitive NPS gap with digital leaders. This strategic focus on digital channels and artificial intelligence is expected to drive further efficiency gains and enhance client experience. Management emphasized their commitment to continuous improvement in operational efficiency and disciplined cost control without compromising future investments in technology and client services.
