Itau Unibanco Q3 Earnings & Revenues Rise Y/Y, Expenses Up

Itau Unibanco Holding S.A. ITUB reported recurring managerial results of R$11.9 billion ($2.16 billion) for the third quarter of 2025, which increased 11.2% 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$46.6 billion ($8.5 billion) in the reported quarter, up 9.1% year over year.The managerial financial margin increased 10.1% year over year to R$31.4 billion ($5.7 billion). Also, commissions and fees rose 4.7% year over year to R$11.7 billion ($2.1 billion).Non-interest expenses totaled R$17.1 billion ($3.1 billion), up 7.5% year over year. This increase was mainly due to the impact of the collective wage labor agreement.In the third quarter, the efficiency ratio was 39.5%, down 7 basis points from the year-earlier quarter. A decrease in this ratio indicates increased profitability.The cost of credit charges rose 40.7% on a year-over-year basis to R$7.5 billion ($1.4 billion).Itau Unibanco’s Balance Sheet Position ImprovesAs of Sept. 30, 2025, ITUB’s total assets rose 3.4% to R$2.99 trillion ($545.3 billion) from the last reported quarter. Liabilities, including deposits, debentures, securities, borrowings and on-lending, totaled R$2.74 trillion ($499.5 billion), which rose 3.2% on a sequential basis.As of the same date, Itau Unibanco’s credit portfolio, including private securities and financial guarantees provided, rose nearly 1% to R$1.4 trillion ($255 billion) from the prior quarter.ITUB’s Capital & Profitability Ratios MixedAs of Sept. 30, 2025, the Common Equity Tier 1 ratio was 13.5%, down from 13.7% as of Sept. 30, 2024.Annualized recurring managerial return on average equity was 23.3%, up from 22.7% in the year-earlier quarter.Our View on Itau UnibancoITUB’s third-quarter results were driven by a rise in the managerial financial margin. The declining efficiency ratio indicates improved profitability, which is a positive factor. Growth in commissions and fees, along with efforts to maintain a healthy credit portfolio, remains encouraging.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 third-quarter 2025 pre-tax profit of $7.30 billion, which declined 13.9% from the prior-year quarter.HSBC’s results were primarily hurt by an increase in operating expenses, mainly from notable items, including legal provisions of $1.4 billion. Also, higher expected credit losses and other credit impairment charges were a headwind. However, an improvement in revenues supported results to some extent.Deutsche Bank DB reported third-quarter 2025 earnings attributable to its shareholders of €1.56 billion ($1.82 billion), up 7% year over year.DB’s increased revenues and lower provision for credit losses aided results. However, higher expenses were a spoilsport.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want 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