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ITUB4 · B3 · Banks

Itaú Unibanco

We own 72 shares · in the portfolio for 5 days

Since we bought
−6.4%
Ibovespa, same period
−4.4%

At the close of 30 Oct 2026. Includes dividends declared since purchase.

Why we own it

Brazil’s largest private bank, with a conservative loan book and no government control. It earns about 22% on equity and pays out a large share of profit as dividends.

After the 26 October sell-off it traded below 10 times earnings, a price that already assumes trouble. Higher rates usually widen a large bank’s margin on deposits; the real risk is borrowers who stop paying.

How it makes money

Lending
The gap between what it pays on deposits and what it charges on loans.
Fees
Cards, accounts, payments and asset management.
Insurance and other
Insurance, pensions and its investment bank.

What could go right

  • Higher rates widen its deposit margin.
  • A credible economic team brings foreign money back to Brazilian banks.
  • A dividend near 8% pays us while we wait.

What could go wrong

  • A slowdown turns into rising loan defaults.
  • New taxes on banks or on dividends.
  • Digital banks take share in cards and payments.

What would make us sell

Written before we bought. A falling price is not on this list.

  • Loans more than 90 days overdue rise above 2.5%.
  • The core capital ratio (CET1) falls below 11%.