ITUB

ITUB

Itaú Unibanco ADR

Bank / BV

★ Quality 49/100
Overvalued

Price today

$8.15

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See what it is worth

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What this business is made of

49qualityReturnsMoatBalance sheetPricing powerReinvestment

The business

Brazil's banking heavyweight that no fintech has managed to knock down.

Itaú Unibanco is Brazil's largest private bank: 55 million clients, lending, cards, insurance and investment banking. It makes money on credit spread (NIM) and fees, with ROE 21-23% and NPL at historic lows of 1.9%.

Dominant scale in Brazil, an established brand, and a distribution network that no fintech has managed to erode in any meaningful way. Its credit discipline and cost culture set it apart from Bradesco and Santander Brasil in structural profitability.

Revenue history

$22.1B
2020
$25.4B
2021
$30.2B
2022
$32.8B
2023
$35.6B
2024
CAGR 5 años: +10%

From $22.1B to $35.6B in 4 years. The business grows steadily.

Where each $100 of sales goes

Revenue $27.2B · FY2024

Costs and operations$20.4B · 75%
Net profit$6.8B · 25%

Of every $100 in sales, $75 goes to costs and operations; $25 is left as net profit (25% margin).

Catalysts and risks

Selic rate-cut cycle: every 100 bps frees up provisions and boosts credit demand.

Dividend yield ~7.5% with a rising payout after a comfortable Basel III position.

Sustained ROE of 21-23% while regional peers hover around 15%.

⚠️

BRL/USD: a 20% devaluation eats into the dividend in dollars.

⚠️

Brazilian sovereign risk and Lula's fiscal stance pressure multiples.

⚠️

Competition from Nubank in young clients and card margins.

Charlie's note

The best bank in LATAM trading like an average one. The price prices in all of Brazil, not Itaú — and that's where the opportunity lies for whoever can stomach the currency.

Analysis · May 2026

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