Itaú Unibanco Reports Stable Credit Metrics, High Profitability Expected to Continue

Deep News05-07

Itaú Unibanco, while releasing its first-quarter 2026 financial results, stated that its credit delinquency metrics have remained relatively stable overall amid a challenging macroeconomic environment. The bank expressed confidence in maintaining significant profitability levels in the coming quarters.

As Brazil's largest private bank, Itaú reported recurring net income of 12.3 billion Brazilian reais under management accounting for the first quarter, a year-on-year increase of 10.4%. The annualized average return on equity reached 24.8%. During the reporting period, the bank's non-performing loan ratio for loans overdue by more than 90 days remained stable at 1.9%, unchanged for the fifth consecutive quarter. However, the delinquency rate for small and micro enterprises saw a slight increase of 0.1 percentage points to 1.9%.

The bank's Chief Financial Officer, Gabriel Amado de Mora, noted that the seasonal rise in short-term delinquency indicators for loans between 15 and 90 days was in line with expectations at the beginning of the year, and the quality of the core loan portfolio remains healthy. The bank stated that, through adjustments to loan origination standards in recent years, it has maintained the resilience of its credit portfolio while controlling risks.

Based on solid asset quality and capital conditions, Itaú reaffirmed its full-year 2026 performance guidance, anticipating total loan portfolio growth between 5.5% and 9.5%. Despite current high interest rates in Brazil and global geopolitical and economic uncertainties, analysts generally believe the bank possesses the flexibility to adjust, and its sustainable high profitability remains a core attraction for long-term investment.

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