Itau Unibanco Q1 Earnings & Revenues Rise Y/Y, Expenses Up

Itau Unibanco Holding S.A. ITUB reported recurring managerial results of R$10.5 billion ($1.83 billion) for the first quarter of 2025, which increased 5% year over year.Higher revenues and an increase in managerial financial margin supported the results. However, a rise in non-interest expenses acted as a spoilsport.ITUB’s Revenues & Expenses IncreaseOperating revenues were R$46.8 billion ($8.2 billion) in the reported quarter, up 9.4% year over year.The managerial financial margin increased 18.6% year over year to R$30.4 billion ($5.3 billion). Also, commissions and fees rose 2.9% to R$11.6 billion ($2 billion).Non-interest expenses totaled R$15.8 billion ($2.8 billion), up 9.8% year over year. Investments in technology drove the increase in expenses. In the first quarter, the efficiency ratio was 38.1%, down 20 basis points from the year-earlier quarter. A decrease in this ratio indicates increased profitability.The cost of credit charges rose 10.3% on a year-over-year basis to R$9.6 billion ($1.7 billion).Itau Unibanco’s Balance Sheet Position: Mixed BagAs of March 31, 2025, ITUB’s total assets fell 1.9% to R$2.62 trillion ($458.5 billion) from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$2.59 trillion ($453.3 billion), which declined 1.6% on a sequential basis.As of the same date, Itau Unibanco’s credit portfolio, including private securities and financial guarantees provided, rose 3.7% to R$1.4 trillion ($245 billion) from the prior quarter.ITUB’s Capital & Profitability Ratios MixedAs of March 31, 2025, the Common Equity Tier 1 ratio was 12.6%, down from 13% as of March 31, 2024.Annualized recurring managerial return on average equity was 22.3%, up from 21.9% in the year-earlier quarter.Our View on Itau UnibancoITUB’s first-quarter results were driven by a rise in the managerial financial margin. The declining efficiency ratio indicates an increase in profitability, which is a positive factor. Growth in commissions and fees, and efforts to have a healthy credit portfolio are positives.Itau Unibanco Holding S.A. Price, Consensus and EPS Surprise  Itau Unibanco Holding S.A. price-consensus-eps-surprise-chart | Itau Unibanco Holding S.A. QuoteItau Unibanco currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other Foreign BanksHSBC Holdings HSBC reported first-quarter 2025 pre-tax profit of $9.48 billion, which declined 25% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)HSBC’s results were affected by a fall in revenues, higher expected credit losses and other credit impairment charges, partially offset by a fall in expenses.Deutsche Bank DB posted first-quarter 2025 earnings attributable to its shareholders of €1.78 billion ($2.01 billion), up 39.2% year over year.DB’s results were aided by a rise in revenues and lower expenses. However, higher provision for credit losses was a spoilsport.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Bank Aktiengesellschaft (DB): Free Stock Analysis Report Itau Unibanco Holding S.A. (ITUB): Free Stock Analysis Report HSBC Holdings plc (HSBC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks