Itaú Unibanco Hits Record US$2.4 Billion, Cuts Fee Outlook

Banking: São Paulo

Itaú Unibanco reported a record second-quarter recurring profit of R$12.4 billion (about US$2.4 billion), its 11th straight quarterly increase, even as the São Paulo lender trimmed its 2026 guidance for fee and insurance revenue.

A Record Quarter for Latin America’s Largest Bank

Itaú Unibanco, the largest bank in Latin America, said late on Tuesday that its recurring managerial result reached R$12.4 billion (about US$2.4 billion) in the second quarter of 2026, a rise of 7.8% from the same period a year earlier. That figure is the bank’s preferred measure of profitability, stripping out one-off items.

The result landed just below the R$12.5 billion (about US$2.5 billion) that analysts polled by LSEG had expected, but comfortably within the range that major brokerages, including XP, Bank of America, Goldman Sachs and JPMorgan, had modelled for the quarter.

For readers outside Brazil, Itaú is a useful barometer of the country’s economy. Its loan book spans households, small businesses and large corporations across Brazil and several other Latin American markets, so its results offer an early read on credit demand and defaults in the region’s biggest economy.

Eleven Quarters of Uninterrupted Growth

The second quarter marked the 11th consecutive period in which Itaú’s recurring profit rose, a streak that underlines how consistently the bank has expanded earnings through a demanding interest-rate cycle. Brazil’s benchmark Selic rate stood at 14.25% around the time of the results, a level that lifts lending income but can also raise the risk of defaults.

Profit edged up from R$12.3 billion (about US$2.4 billion) in the first quarter, when annualized return on equity was 24.8%. In the second quarter that return eased slightly to 24.3%, still a level most global banks would envy and a sign that Itaú is defending margins as it grows.

Chief executive Milton Maluhy Filho has repeatedly framed the strategy as responsible growth, prioritizing the quality of new loans over rapid expansion. The bank says that approach leaves it better positioned to absorb stress if the economy weakens.

A Loan Book Worth About US$300 Billion

Itaú’s total credit portfolio, which includes financial guarantees and private securities, reached R$1.522 trillion (about US$300 billion) at the end of June. The bank said the book grew 9.6% over the previous 12 months and 2.7% since the start of the year.

Growth was spread across mortgages, payroll loans and lending to small and mid-sized companies, segments Itaú has favored because they tend to carry lower credit risk. Management says the portfolio is now more balanced and less exposed to sharp downturns than in previous cycles.

Credit quality held broadly steady. The bank’s ratio of loans more than 90 days overdue has hovered near historically low levels in recent quarters, a point executives have stressed as evidence that cautious underwriting is paying off.

Why Itaú Trimmed Its Fee and Insurance Guidance

The most notable change in the results was not the profit line but the outlook. Itaú cut its 2026 guidance for growth in commissions, fees and insurance revenue to a range of 2% to 5%, down from the 5% to 9% it had projected at the start of the year.

The bank left the rest of its 2026 targets broadly intact, including total loan growth of 5.5% to 9.5% and cost of credit of R$38.5 billion to R$43.5 billion (about US$7.6 billion to US$8.6 billion). That makes the fee-and-insurance revision the standout note of caution in an otherwise steady set of guidance.

Analysts read the move as a signal that Itaú expects softer growth in service-based income as Brazil’s economy cools and global trade tensions, including new United States tariffs on Brazilian goods, cloud the outlook. The bank framed the change as prudence rather than alarm, keeping its core profitability targets unchanged.

What the Results Mean for the Sector

Itaú is widely seen by analysts as the most solid name in Brazilian banking, and its results are often treated as a template for rivals such as Banco Bradesco, Banco do Brasil and Santander Brasil, which report around the same time. A record quarter paired with a trimmed revenue outlook sends a mixed message: profitability remains strong, but the pace of fee growth is expected to slow.

The bank’s US-listed shares, which trade under the ticker ITUB, and its São Paulo-listed preferred stock, ITUB4, are among the most widely held financial assets in the region, so shifts in Itaú’s guidance ripple through emerging-market portfolios.

What Comes Next

Investors will now watch whether the softer fee-and-insurance outlook proves conservative or marks the start of a broader slowdown in Brazilian banking revenue. Much will depend on the path of the Selic rate, the strength of consumer spending and how trade frictions with the United States evolve.

For now, Itaú’s message is one of continuity. The bank has delivered another record quarter, kept its return on equity above 24% and maintained most of its full-year targets, while flagging that one slice of its revenue will likely grow more slowly than it hoped six months ago.

Frequently Asked Questions

How much did Itaú Unibanco earn in the second quarter of 2026?

Itaú Unibanco reported a recurring managerial result of R$12.4 billion (about US$2.4 billion), up 7.8% year over year and its 11th consecutive quarterly increase. Annualized recurring return on equity was 24.3%.

Why did Itaú Unibanco cut its 2026 guidance?

The bank lowered its outlook for growth in fees and insurance revenue to 2% to 5%, from 5% to 9%, citing a more cautious macroeconomic environment. It kept most other 2026 targets, including loan growth, unchanged.

How large is Itaú Unibanco’s loan book?

The total credit portfolio, including guarantees and private securities, reached R$1.522 trillion (about US$300 billion) at the end of June 2026, up 9.6% over 12 months.

Sources: InfoMoney, Money Times, Poder360 and Itaú Unibanco investor relations.

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