What happened to ITUB4 shares was an earnings report, not a problem: on November 3, Itaú Unibanco reported to Brazil's Securities and Exchange Commission (CVM) a managerial recurring net income of R$ 12.6 billion for the third quarter of 2026. The question on unitholders' and shareholders' minds is whether this profit is of high quality—and, judging by the bank's own figures, the answer is largely yes, with some caveats regarding expenses.
ITUB4: What Happened?
Itaú filed its Q3 26 press release and institutional presentation with the CVM at 6:29 PM on November 3. If you landed here because the stock seemed to "disappear" from your brokerage account, was delisted, or cannot be sold: neither document mentions any delisting, ticker change, or trading suspension. What they provide is the quarter's scorecard. If your brokerage screen does not display the stock, the reason lies elsewhere, and it is worth checking directly with your broker.
The bank reported that its annualized return on average equity (ROE) reached 23.6%. Total loan portfolio reached R$ 1.5 trillion, and non-performing loans past due over 90 days ended the quarter at 2.0%. Each of these figures raises a question, so let's break them down.
Is This Profit Good or Just Large?
ROE answers this better than the absolute dollar figure: it measures how much profit the bank generates per unit of capital it maintains. An ROE of 23.6% translates roughly to about R$ 23.60 in annual profit for every R$ 100 of average equity. The document itself includes a caveat in the bank's favor: if Common Equity Tier 1 (CET1) capital were 11.5%, the consolidated return would be 24.7%, and the Brazilian operation's return would be 25.8%. In other words, Itaú is carrying more capital than that threshold, which weighs down the ROE but provides a comfortable buffer.
One gap is missing: the excerpt of the document available to us does not include the previous quarter's profit, so we cannot determine solely from these figures whether the result grew or declined sequentially. For the comparisons it does show, the bank notes that the retail operation in Colombia, sold in July, was included in the base period. Even so, the immediate question is where the money came from.
Where Did the Results Come From?
From secured lending. Itaú states that its loan portfolio grew 2.2% during the quarter, concentrated in lower-risk lines for the bank and lower-rate options for clients, such as residential mortgages—a segment where Itaú claims to be the largest private bank by market share. This move aligns with our previous coverage of major banks raising mortgage interest rates.
Net interest income from clients rose 2.6% in the quarter, moving in tandem with loan growth, aided by a higher number of days in the period and fee revenue from structured wholesale transactions. Two headwinds emerge in the bank's own explanation: product mix, since secured portfolios yield less per real lent, and asset spread compression. Service fee revenues crept up just 0.5%, with asset management up 7.8%, credit cards up 7.1%, and investment banking down, primarily due to lower fixed-income issuances.
What About Defaults? Delinquencies, Credit Costs, and Capital
This is where the bank presents the strongest part of its balance sheet. Loans past due between 15 and 90 days closed at 1.7%, while those past due over 90 days stood at 2.0%. The comparison Itaú chose to highlight focuses on loans past due over 15 days in September:
For corporate clients, the bank reports that its 2.9% delinquency rate is roughly half the market average when excluding Itaú. While this comparison comes directly from the bank and should be read as a defensive argument, it points to a well-curated portfolio. The rest of the risk and solvency breakdown:
| Metric | Value | How to Read It |
|---|---|---|
| Credit Cost | R$ 10.4 billion | Stable relative to the portfolio, annualized at 2.7%, flat compared to the previous quarter |
| 15 to 90-Day Delinquency | 1.7% | Leading indicator for future defaults |
| Over 90-Day Delinquency | 2.0% | "Hard" delinquencies that typically turn into write-offs |
| Common Equity Tier 1 (CET1) | 12.7% | Supported by organic capital generation |
| LCR (Short-Term Liquidity) | 205.8% | Regulatory minimum is 100% |
| NSFR (Long-Term Liquidity) | 123.7% | Regulatory minimum is 100% |
The overall picture is a well-buffered bank: the liquidity coverage ratio (LCR) is more than double the regulatory minimum, and capital supports growth without requiring capital calls from shareholders. But not everything is smooth sailing.
What Weighed Against the Balance Sheet?
- Itaú's delinquency rates are well below market averages for both individuals and corporations, with stable credit costs.
- Comfortable capital and liquidity levels, backed by organic capital generation.
- Portfolio expansion concentrated in secured lending lines with more predictable loss profiles.
- Non-interest expenses totaled R$ 17.1 billion, up 2.4% in the quarter, driven by a 4.6% salary adjustment from the collective bargaining agreement.
- Compressed asset spreads and a product mix shifting toward lower-yielding secured loans.
- Declining investment banking revenues and nearly flat service revenues, up just 0.5%.
- Effective income and social contribution tax rates revised to between 28.0% and 29.0% for 2026, impacting final net income.
Brazil's efficiency ratio stood at 35.7%, though the excerpt available to us cuts off before providing the comparison base. The guidance revision, detailed in the presentation, is another key point, and we have broken down the revision of 2026 projections and the cost of capital separately.
What Changes for Unitholders and Shareholders?
The core investment thesis—built on recurring profits and portfolio quality—emerged from this earnings report intact: high profitability, low delinquencies, and capital above regulatory requirements. Nothing in the documents mentions dividends or share buybacks, so no dividend projections can be drawn from this release. Furthermore, the balance sheet alone does not dictate the share price: the document notes that the stock price reaction depends on how the market interprets margins and credit costs. The last recorded closing price on our site, on October 27, was R$ 41.17 (-1.27% on the day and +10.57% over 12 months), prior to the earnings release. The downward pressure weighing on the stock, discussed in our analysis on the elections and earnings, depends on more than just financial results alone.
Delinquencies — loans past due over 90 days stood at 2.0%; continuous increases in upcoming quarters would weaken the bank's argument.
Credit Costs — currently stable at 2.7% annualized; what matters is whether they remain at this level.
Net Interest Income from Clients — up 2.6% in the quarter, though product mix is shifting toward lower-yielding products; monitor whether it keeps pace with loan portfolio growth.
Expenses — the 2.4% increase stemmed from salary adjustments; further cost growth without matching revenue gains will weigh on results.