Itaú Unibanco Holding S.A.'s American depositary receipts have shown steady gains in February 2026, closing at $9.33 on February 24 after rising 1.74%, as the Brazilian banking giant capitalizes on a record return on equity, successful digital transformation, and a renewed share buyback program amid resilient loan growth and improved efficiency.

Itaú Unibanco Holding
Itaú Unibanco Holding

As of February 24, 2026, Itaú Unibanco (NYSE: ITUB) traded in a session range of $9.105 to $9.35 with volume of about 29.8 million shares. The shares have recovered from recent dips, trading near the upper end of their 52-week range from $4.73 to $9.60. Year-to-date performance in 2026 remains positive following strong 2025 results, with market capitalization around $103 billion.

The momentum stems from Itaú's fiscal 2025 fourth-quarter and full-year results released February 5, 2026. The bank posted recurring managerial net income of R$12.3 billion ($2.35 billion) for Q4, up 13.2% year-over-year, with full-year recurring results reaching R$46.8 billion, a 13.1% increase. Return on equity hit a record 23.4% for the year—up from 19.3% in 2021—driven by a 40% expansion in the loan portfolio and noninterest income growth. Operating revenues rose 7.9% in Q4 to R$47.6 billion, while the efficiency ratio improved to 38.8%, reflecting a 99% reduction in technology incidents through digital investments.

CEO Milton Maluhy highlighted the bank's digital transformation success, noting enhanced client experience, cost discipline, and a shift toward higher-margin segments. The results translated to an EPS of approximately $0.17 for Q4, slightly missing some estimates of $0.20, but revenue of $8.62 billion beat expectations in key areas despite broader pressures.

On February 4, 2026, the board approved a new stock buyback program effective through August 4, 2027, authorizing purchases of up to 200 million preferred shares—about 3.74% of the preferred free float—for cancellation and employee compensation plans. The move replaced an earlier program terminated early, underscoring confidence in capital allocation and shareholder value amid a stable economic backdrop in Brazil.

Itaú also issued 2026 guidance based on an adjusted 2025 base, projecting total credit portfolio growth of 5.5% to 9.5% (Brazil portfolio 6.5% to 10.5%), financial margin with clients in a range supporting sustained profitability, cost of credit between R$38.5 billion and R$43.5 billion, and noninterest expenses aligned with inflation plus investments. The guidance assumes a cost of equity around 15% annually, reflecting prudent risk management.

Analysts have responded positively to the results and guidance. Consensus among covering firms rates ITUB a Buy, with average 12-month price targets around $9.00—implying modest downside or flat performance from recent levels, though some see upside from efficiency gains and digital momentum. JPMorgan raised its target to $9.00 in mid-February, maintaining an overweight rating. Broader sentiment highlights Itaú's leadership in Brazil's banking sector, with strong fundamentals offsetting macro risks like interest rate dynamics and potential economic slowdowns.

The bank continues prioritizing digital channels, with investments yielding higher client engagement and lower operational costs. Noninterest income growth and credit quality improvements—amid controlled provisions—support the elevated ROE. Itaú's diversified portfolio across retail, wholesale, and international operations provides resilience in a competitive landscape.

Upcoming catalysts include the next quarterly results, expected around May 5, 2026, for Q1 2026. Investors will focus on loan growth execution, margin trends, and any updates to full-year guidance amid evolving Brazilian economic conditions.

Itaú Unibanco, Brazil's largest private-sector bank by assets, maintains a dominant position through scale, digital leadership, and prudent risk management. Record profitability and shareholder-friendly actions position it well for sustained performance in 2026, even as global and domestic uncertainties persist. With shares trading at attractive multiples relative to historical averages and peers, the bank remains a core holding for emerging market financial exposure.