Itaú Unibanco Holding S.A. (ITUB): Business Model Canvas [Dec-2025 Updated]

You're looking at the blueprint of Latin America's largest private bank, a behemoth managing R$2.99 trillion in assets as of late 2025, yet it's moving like a fintech. Honestly, the real story isn't just the scale; it's how Itaú Unibanco is balancing that massive base with aggressive digital plays-like developing over 1,300 AI models-to hit projected Financial Margin growth between 11.0% and 14.0% this year. This canvas breaks down exactly how they manage the risk of a potential Cost of Credit between R$34.5 billion and R$38.5 billion while simultaneously serving everyone from mass retail to global institutions. Dig in below to see the nine building blocks driving this sector-leading performance.

Itaú Unibanco Holding S.A. (ITUB) - Canvas Business Model: Key Partnerships

You're looking to map out the external forces that truly drive Itaú Unibanco Holding S.A.'s (ITUB) value creation, so let's focus on the key alliances that are shaping its 2025 strategy. These aren't just casual agreements; they are structural components of its digital and sustainable future.

Fintech startups for digital innovation and new products

Itaú Unibanco is formalizing its external innovation pipeline with Itaú Ventures, its new Corporate Venture Capital (CVC) fund, born from the internalization of Kinea Ventures. This unit has an initially committed fund size of R$500 million under management, with a forecast to allocate R$250 million over two years in strategic investments. The investment ticket size starts from R$20 million. The focus areas are clearly defined to support the bank's core business evolution, targeting startups in payments, wealth, insurance, credit, cybersecurity, UX, infrastructure, and Artificial Intelligence. At the end of 2024, the bank was already running more than 390 generative AI (genAI) initiatives and had over 1,300 AI models actively in use. Itaú Ventures inherited eight portfolio companies from Kinea Ventures, including the digital assets fintech Liqi and Kanastra. This move shows a clear intent to integrate external agility directly into the bank's structure.

Global payment networks (Visa, Mastercard) and processors

While specific 2025 volume data for Visa and Mastercard processing isn't public, we can gauge the scale of Itaú Unibanco's payment operations, which rely heavily on these networks. For instance, in 2024, the bank demonstrated significant operational strength, handling an average monthly volume of approximately $645 million in domestic payments. Furthermore, the processing of more than 20,000 international transactions per month highlights the global connectivity supported by these partnerships. The bank's push for digital efficiency, like the adoption of Automatic Pix, has a potential to increase payment compliance by up to 30% for recurring solutions compared to one-off payments.

Strategic alliance with Avenue for US digital brokerage access

The strategic alliance with Avenue Cayman Ltd, a U.S. digital securities broker, is moving into its control phase. The acquisition is structured in three phases. In the first phase, Itaú Unibanco Holding acquired 35% of Avenue's capital for approximately R$ 563 million. Following a share issuance in August 2024 that adjusted the stake, the second phase is set for the fourth quarter of 2025, where Itaú Unibanco Holding will acquire additional ownership to reach control at 50.1% of Avenue's capital. This partnership is key for democratizing Brazilian investors' access to the international market.

Central Bank of Brazil and regulatory bodies for compliance

Compliance with the Central Bank of Brazil (BC) and other regulatory bodies is foundational, underpinning all operations, including the Carbonplace venture approval. The bank's capital strength, as reported on June 30, 2025, provides the necessary buffer for operating under these strict frameworks. You can see the key prudential metrics below:

Metric (Prudential Consolidation - Jun-25)	Amount (R$ million)
Total Capital (PR)	R$ 237,454
Tier I Capital	R$ 215,381
Tier II Capital	R$ 22,073
Common Equity Tier I (CET I) Ratio	13.1%

The CET I ratio of 13.1% as of Q2 2025 shows the bank maintains capital levels above minimum requirements, which is critical for regulatory confidence. Also, the bank's efficiency ratio in Brazil reached 36.9% in Q2 2025, the best level for a second quarter in the historical series, showing gains in scale and productivity under regulatory oversight.

Carbonplace for voluntary carbon credit trading platform

Itaú Unibanco is a founding member of Carbonplace, a platform for trading voluntary carbon credits, which received approval from the Central Bank. The platform was established through a strategic investment round where nine major banks, including ITUB, invested USD 45 million in total. Each of the founding banks holds an equal stake in the company. This partnership directly supports Itaú Unibanco's public commitment to be a net zero bank by 2050. The platform uses blockchain technology to ensure traceable and efficient settlement, aiming to mitigate risks like double counting of credits. The global voluntary carbon market is projected to reach $500 billion annually by 2050, and this platform positions Itaú to serve clients in that growing space.

Here's a quick look at the founding partners:

• BBVA
• BNP Paribas
• CIBC
• Itaú Unibanco
• National Australia Bank (NAB)
• NatWest Group
• SMBC
• Standard Chartered
• UBS

Finance: draft the Q4 2025 capital adequacy projection by next Wednesday.

Itaú Unibanco Holding S.A. (ITUB) - Canvas Business Model: Key Activities

You're looking at the operational engine of Itaú Unibanco Holding S.A. as of late 2025. This isn't about vague strategy; it's about the concrete numbers that define their daily work.

Core commercial and investment banking operations

The core is about generating profit from lending and fees, and the numbers show strong execution against projections. The managerial financial margin, which is the profit from lending money, hit R$31.4 billion in the third quarter of 2025, marking a 10.1% year-over-year growth. The total credit portfolio size reached R$1.4 trillion by the third quarter of 2025, representing a 6.4% growth year-over-year. Commissions and fees, along with insurance operations results, showed a solid 7.1% year-over-year growth in the third quarter of 2025. For the first nine months of 2025, the recurring result was R$33.1 billion.

Here's a quick look at the scale of their lending book and profitability metrics as of late 2025:

Metric	Value (3Q 2025 or Latest Available)	Context/Comparison
Total Credit Portfolio Size	R$1.4 trillion	6.4% growth year-over-year
Managerial Financial Margin (3Q 2025)	R$31.4 billion	10.1% growth year-over-year
Consolidated Recurring ROE (3Q 2025)	23.3%	Strong profitability level
Total Assets (Sept 30, 2025)	R$559.51B	Balance sheet size

Digital transformation and AI model development (1,300+ models)

The bank's operational backbone is heavily digitized, which directly impacts efficiency and customer interaction. A cornerstone of this strategy is the migration of 60% of their infrastructure to AWS. This digital push has resulted in a 98% reduction in customer-impacting incidents. The AI ecosystem is central, refining over 1,300+ AI models. Furthermore, the technology workforce is substantial, comprising 17,000 people, which includes 5,900 AWS-certified engineers and 8,000 generative AI-trained developers. One digital feature already has 10 million clients using it, with an expectation to reach 15 million by the end of the year.

The efficiency gains from this transformation are clear in cost metrics:

• 30% reduction in customer acquisition costs through AI-driven credit analytics.
• Deployment cycles reduced from months to days.
• Cost-to-income ratio reached a historic low of 38.1% in Q2 2025.

Disciplined risk management and credit underwriting

Risk management remains a key differentiator, allowing for growth while maintaining asset quality. The bank's non-performing loan (NPL) ratio is sector-leading at 1.9%. The bank's capital strength is evident with a CET1 ratio closing the third quarter of 2025 at 13.5%. For the full year 2025, the guidance for the Cost of Credit was set between R$34.5 billion and R$38.5 billion. The overall credit portfolio growth target for 2025 was maintained between 4.5% and 8.5%.

Credit portfolio segment performance highlights the targeted approach:

• SMEs loan portfolio grew 7.5% year-over-year.
• Government programs within the SMEs portfolio posted a 10.9% growth in the quarter.

Asset and wealth management for high-net-worth clients

The wealth management arm is a significant player in Latin America, focusing on high-net-worth families. Itaú Private Bank reports $164 billion in assets under management (AUM) and serves a client roster of 9,000 families. This represents a 29% share of its main, domestic wealth market. Separately, Itaú Asset Management reports R$1.2 trillion in assets under management, holding a 14.2% market share in the Brazilian market.

Here's the AUM comparison for the asset management divisions:

Division	Assets Under Management (AUM)	Market Position
Itaú Asset Management	R$1.2 trillion	14.2% market share in Brazil
Itaú Private Bank	$164 billion	Serves 9,000 families

Structuring and issuing sustainable finance products

Itaú Unibanco is actively executing its ESG strategy, having already met a major milestone. The bank met its 2021 commitment to allocate R$400 billion through sustainable business initiatives by 2025. Itaú BBA was responsible for 84% of this, amounting to R$353 billion. The bank has set a new, ambitious objective to mobilize R$1 trillion in sustainable finance by December 2030. A specific inclusion goal targets increasing credit volume for women-led small and medium-sized businesses to R$17 billion by 2025, which represents 24% of that total portfolio.

Sustainable finance issuance activity provides concrete examples of this focus:

• In 2024, ESG bond issuance reached R$13.6 billion across 30 operations.
• A March 2025 issuance to fund biodiversity and social initiatives totaled BRL 1.4 billion (equivalent to $250 million).

Finance: draft 13-week cash view by Friday.

Itaú Unibanco Holding S.A. (ITUB) - Canvas Business Model: Key Resources

Total assets of R$2.99 trillion as of September 30, 2025.

Strong brand equity, leading the pack in South America with a Brand Value of USD8.6 billion as of April 2025. The Brand Strength Index (BSI) is 78.1 with an AA+ rating. Itaú Unibanco is the 274th most valuable brand among the 500 largest in the world.

Large, high-quality loan portfolio with growth projected between 4.5% and 8.5% in 2025.

Extensive physical branch and ATM network across Latin America and operations in 19 countries.

Dedicated technology and data workforce of 17,000 tech workers as of August 2025. This includes 5,900 AWS-certified engineers and 8,000 trained in generative AI tools.

The distribution network details as of late 2024/early 2025 include:

Geographic Area	Branches/Service Points	ATMs
Latin America (ex-Brazil)	265 branches/client service branches (as of December 31, 2024)	Not specified for ex-Brazil in the same report
Brazil	4,451 branches and client service branches (pre-2025 data)	45,891 (pre-2025 data)

The bank's total assets as of September 30, 2025, were reported as $559.51B quarterly or $545.173B quarterly.

The bank's operational footprint includes:

• Operating in 18 countries in total.
• Retail operations in Latin America including Argentina, Chile, Paraguay, Uruguay, Colombia, and Panama.
• In Paraguay, 67 non-bank correspondent locations as of December 31, 2024.
• In Uruguay, 30 points of service through OCA S.A. as of December 31, 2024.

Itaú Unibanco Holding S.A. (ITUB) - Canvas Business Model: Value Propositions

You're looking at the core value Itaú Unibanco Holding S.A. delivers across its vast client base. It's not just about holding deposits; it's about being the single financial partner for nearly every need.

Universal bank offering: full suite of financial services

Itaú Unibanco Holding S.A. operates as a true universal bank, which means you get everything from basic checking to complex capital markets advisory under one roof. This breadth is significant; for instance, the Retail Business accounted for 60% of the bank's revenue in 2024, while the Wholesale Business contributed 34%. The total assets on the balance sheet as of June 30, 2025, stood at R$ 2,122,480 million. The bank maintains a broad footprint, being present in 18 countries with retail operations concentrated in Latin America. The net income for the first half of 2025 was R$ 17,047 million.

Here is a snapshot of the loan portfolio distribution as of the end of the second quarter of 2025:

Loan Category	Balance (R$ billion, 2Q25)	Year-over-Year Growth (D 2Q24)
Individuals (Total)	451.9	8.0%
Credit Card Loans	141.1	7.7%
Mortgage Loans	134.4	17.2%
Very Small, Small and Middle Market Loans	(Data not directly comparable to Individuals total)	(Data not directly comparable to Individuals total)

The loan portfolio to funding ratio, net of compulsory deposits, cash, and cash equivalents, reached 98.6% in the second quarter of 2025, showing tight management of its balance sheet resources.

Sector-leading digital experience and personalized journeys

A key value is the push for a fully digital operation, making services simple and accessible. You see this in how they drive product adoption through their app. For example, the purchase volume for credit card account holders grew 14% in 2024 compared to 2023, driven by journey innovation in the app. The bank is focused on delivering the best products and services with a competitive cost to serve.

Open investment platform with third-party products

Itaú Unibanco Holding S.A. offers a complete portfolio that includes both proprietary and third-party products, which is a big draw for sophisticated investors. Assets under management and administration grew 9.9% in the last 12 months ending in the second quarter of 2025, with the open platform specifically growing by 10.6%. To give you a sense of scale, Itaú Asset Management recorded the highest net new money in 2024, bringing in R$63.1 billion. Also, Kinea held R$146.3 billion in assets under management as of December 31, 2024. For brokerage services, Itaú Corretora de Valores served over 531,000 clients, recording R$156.1 billion in trading volume in 2024.

Dedicated high-touch service for Personnalité and Uniclass segments

For clients needing more personalized attention, the segmentation is clear. The Itaú Uniclass segment is specifically for mass-affluent customers, generally those with monthly incomes between R$4,000 and R$15,000. Personnalité targets affluent customers. As of the end of the fourth quarter of 2024, the combined Personnalité and Uniclass segments represented 10.9% of a certain loan metric, showing their importance in the overall structure.

Commitment to sustainable finance and ESG-linked products

The bank has formalized its commitment to sustainability through a new ESG strategy, which is a major value driver for institutional investors. Itaú Unibanco has a target to expand sustainable financing to R$1 trillion by 2030, building upon the R$400 billion already allocated to sustainable development. In 2024 alone, ESG bond issuance reached R$13.6 billion across 30 operations, and ESG loans increased by 170% compared to the prior year.

The bank has set clear internal representation goals for 2025:

• 35% to 40% of leadership roles held by women.
• 27% to 30% Black representation across the organization.
• Aiming for 50% female representation in entry-level hiring flows.
• Aiming for 40% Black representation in entry-level hiring flows.

Furthermore, Itaú Unibanco aims to direct R$15 billion in microcredit to support small-scale entrepreneurs by 2030. That's a concrete action tied to their social value proposition. Finance: draft 13-week cash view by Friday.

Itaú Unibanco Holding S.A. (ITUB) - Canvas Business Model: Customer Relationships

You're looking at how Itaú Unibanco Holding S.A. manages the connection with its diverse client base as of late 2025. It's a dual approach: heavy automation for the mass market and high-touch service for wealth segments.

Automated, Personalized Service via Mobile App and AI

The core of mass-market relationship management is digital. Over 90% of customers now use mobile banking, with the app serving around 20 million users and maintaining an NPS above 70. This digital ecosystem is powered by 'Itaú Intelligence,' launched in November 2024, which uses generative AI to create hyper-personalized interactions. The bank refines over 1,300+ AI models using data from every interaction, which feeds a self-reinforcing data flywheel. For instance, features like Pix on WhatsApp simplify transactions, reducing friction for high-volume users. Still, user feedback suggests challenges remain; 72% of users report difficulty accessing human assistance, setting a high bar for the digital support experience.

Dedicated Relationship Managers for Wholesale and Private Banking

For clients requiring bespoke service, the relationship model shifts entirely. Itaú Private Bank, recognized as Latin America's best for next-gen in 2025, focuses on building long-term relationships. This segment manages $164 billion in assets under management and serves a client roster of 9,000 families. They hold a 29% share of their main, domestic wealth market. This high-touch service contrasts sharply with the digital focus for retail clients.

Here's a quick look at the relationship structure across key segments:

Customer Segment	Primary Relationship Model	Key Metric/Focus
Retail/Mass Market	Automated/Self-Service via SuperApp	Mobile App Users: ~20 million
Uniclass/Personnalité	Hybrid: Digital + Dedicated Support	100% of loan book growth came from these segments (YoY)
Private Banking	Dedicated Relationship Managers	Assets Under Management: $164 billion
Wholesale/Corporate	Dedicated Relationship Managers	Market Share in DCM Origination: 25% (9M 2025)

Digital Self-Service Tools for High-Volume, Low-Margin Transactions

The bank is actively consolidating its digital footprint. The new superapp, launched in July 2024, targets the migration of approximately 15 million customers to this unified platform by the end of 2025. This platform is designed to make high-volume tasks, like payments and collections, seamless. For example, the bank has been reducing credit card annual fees, making them increasingly irrelevant as part of a strategy to avoid adverse selection and maintain the lifetime value of the client base. The overall consolidated credit portfolio stood at R$1,402.0 billion as of September 2025.

Loyalty Programs and Rewards for Credit Card Usage

Credit card relationships are managed through targeted growth in higher-value segments. The financed credit card portfolio for individuals grew by 4.3% in Q3 2025. It's defintely worth noting that 100% of the year-over-year growth in the loan book came from the Uniclass and Personnalité segments, indicating a focus on rewarding and growing relationships with higher-income clients through their card products. Commissions and insurance revenue reached R$14.7 billion in Q3 2025, showing the monetization of these relationships.

Proactive Risk Communication and Financial Advisory

Advisory services are a growing revenue stream, with advisory services and brokerage growing 33.7% quarter-over-quarter in Q3 2025. The bank's overall Return on Equity in Brazil was 24.2% in Q3 2025, supported by this focus on quality assets and advisory. The bank also emphasizes proactive communication regarding credit quality, which remained stable with the NPL ratio (90 days overdue) at 1.9% in Q3 2025 across the broader portfolio. Mortgage loans, a long-term relationship product, saw 15.2% growth year-over-year, with R$24 billion originated in the first nine months of 2025.

• AI-Driven Insights: 78% of users seek AI-driven recommendations, such as payment reminders or investment tips.
• Financial Planning Tools: Growing demand for tools that simplify financial planning and goal setting.
• Credit Quality Communication: NPL ratio (90 days overdue) held at 1.9% in Q3 2025.

Finance: draft 13-week cash view by Friday.

Itaú Unibanco Holding S.A. (ITUB) - Canvas Business Model: Channels

You're looking at how Itaú Unibanco Holding S.A. gets its value propositions to its customers, and honestly, it's a massive, multi-layered operation that blends old-school presence with aggressive digital scaling. The bank is clearly pushing a phygital (physical + digital) strategy, making sure they cover every possible touchpoint.

The digital front is dominated by the mobile experience. The sheer scale here is what drives efficiency and volume for the mass market. We're talking about the Itaú mobile banking app, which is reported to have over 29.8 million active monthly users. This massive user base is the engine for high-frequency, low-cost transactions, which is crucial for profitability in retail banking today.

The physical footprint remains a key differentiator, especially for complex products or segments less inclined to digital-only interaction. The physical branch network and proprietary ATM fleet provide essential reach. While the bank is optimizing, the expectation is that the number of branches in Brazil won't drop significantly below 1,500, down from approximately 2,114 at the end of 2024, supporting their nationwide presence. They also maintain a fleet of around 40,000 ATMs as of late 2024 data.

For specialized investment services, the channels branch out. Itaú Corretora (brokerage) serves the domestic retail investor base, while Avenue (US digital platform) targets international exposure. As of late 2025, Itaú Unibanco Holding S.A. solidified its commitment to this channel by assuming control of Avenue, increasing its participation to 50.1%. By March 2025, Avenue had already reached 1 million accounts, a testament to the demand for cross-border investment access. Itaú Corretora itself serviced over 531,000 clients with positions in equity and fixed income as of December 31, 2024, generating R$ 156.1 billion in trading volume that year.

For the largest clients, the channel is highly personalized. Corporate and investment banking specialized sales teams, operating primarily through Itaú BBA, focus on building deep relationships to advise on capital markets, M&A, and complex treasury needs for Brazil's largest economic groups. This is a relationship-driven channel, not a volume play.

Finally, support is layered across digital and traditional means. This includes contact centers and online chat support, which are essential for managing the massive digital user base and resolving issues that the self-service app can't handle. The bank has been focused on improving these interactions, aiming for a reduction in high-impact incidents for clients.

Here's a quick look at the scale of some of these key channels as of the latest reported figures:

Channel Component	Metric	Latest Reported Figure	Date/Context
Itaú mobile banking app	Active Monthly Users	over 29.8 million	Late 2025 (Required Data Point)
Physical Branch Network (Brazil)	Estimated Minimum Count	~1,500	Post-2024 Optimization Estimate
Proprietary ATM Fleet	Total Count	40,000	End of 2024
Itaú Corretora	Retail Brokerage Clients	over 531,000	December 31, 2024
Itaú Corretora	Trading Volume	R$ 156.1 billion	2024
Avenue (US Platform)	Itaú Control Stake	50.1%	December 2025
Avenue (US Platform)	Total Accounts	1 million	March 2025

The strategy clearly shows a tiered approach to channel management. The digital channels handle the scale, while the specialized teams and physical branches handle complexity and high-value relationships. The migration of over 10 million clients to the One Itaú platform is a key enabler for this channel strategy, unifying access points.

• Digital adoption is high: Over 80% of Brazilian retail banking transactions took place digitally as of 2018, a trend that has certainly accelerated.
• The bank is focused on integrating services: The 'One Itaú' superapp aims to consolidate services, with 54% of migrated clients now holding three or more products.
• Investment Banking presence is global: Itaú BBA supports advisory services in Latin America and the Northern Hemisphere.

If onboarding for new digital features takes too long, churn risk rises, so the focus on efficiency in the chat and contact centers is defintely important for maintaining the digital gains. Finance: draft 13-week cash view by Friday.

Itaú Unibanco Holding S.A. (ITUB) - Canvas Business Model: Customer Segments

Retail Individuals (mass market and high-income Uniclass)

Itaú Unibanco Holding S.A. serves a customer base exceeding 40 million individuals in Brazil, representing a 32% share of the retail banking market as of Q2 2025. The bank aims for its new superapp to consolidate services for approximately 15 million customers by the end of 2025. The individual loan portfolio in Brazil reached its best historical level in Q3 2025, showing a growth of 6.5% in that quarter. The Uniclass tier falls within this broader Retail Business segment, tailored for high-income individual clients. The bank offers a suite of services including credit cards, vehicle financing, and investment products to this mass market base.

High Net Worth Individuals (Personnalité and Private Banking)

The high-income offering is split between Personnalité, which is grouped within the Retail Banking segment, and the dedicated Itaú Private Bank. Itaú Private Bank serves a client roster of 9,000 families and manages $164 billion in assets under management as of early 2025. This division holds a 29% share of its main, domestic wealth market. The bank maintains international offices in Zurich, New York, Lisbon, Miami, and the Bahamas to support these clients' global asset needs.

Small and Medium-sized Enterprises (SMEs) via Itaú Emps

Itaú Unibanco launched Itaú Emps in the second quarter of 2025, a bank focused specifically on micro and small businesses. This initiative expands the bank's presence in the SME ecosystem. In Q1 2025, SME lending saw a year-over-year growth of 17.7%, demonstrating the segment's importance to the overall credit portfolio expansion. The Retail Business segment includes a unit specializing in meeting the diverse needs of small and medium enterprises.

Large Corporations and Institutional Clients (Wholesale Banking)

The Wholesale Business segment provides a wide range of products and services to the largest economic groups of Brazil. These activities span from commercial bank operations to capital markets and mergers and acquisitions advisory services. For the year ended December 31, 2024, the Wholesale Business segment accounted for 34% of Itaú Unibanco Holding S.A.'s revenue. The total credit portfolio, including corporate securities, grew 6.4% in Q3 2025 compared to Q3 2024.

International clients in Latin America, US, and Europe

Itaú Unibanco supports international clients through its global footprint, which focuses on Corporate & Investment Banking, Asset Management, Private Banking, and Retail services abroad. As of June 2025, the bank had 9,360 employees across Latin America and 579 employees in other countries, totaling 9,939 employees abroad. The total consolidated assets globally for Itaú Unibanco Holding S.A. were $461.6 billion as of December 31, 2024. The U.S. operations principally serve the Latin American customer base with wholesale banking and private banking services.

Key Segment Metrics Snapshot (Late 2025 Data)

Segment Indicator	Value	Date/Period
Total Retail Customer Base (Brazil)	Over 40 million	Q2 2025
Retail Banking Market Share (Brazil)	32%	Q2 2025
Private Bank Clients (Families)	9,000	Early 2025
Private Bank Assets Under Management	$164 billion	Early 2025
Wholesale Business Revenue Share	34%	Year ended Dec 31, 2024
Total Employees Abroad	9,939	June 2025
Total Consolidated Global Assets	$461.6 billion	Dec 31, 2024

The bank's strategy involves tailored digital journeys for individuals and robust solutions for companies.

• Mobile banking adoption exceeds 90% of the customer base.
• The bank's app serves approximately 20 million recurring users.
• Non-performing loan rate (90+ days overdue) was 1.9% in Q3 2025.
• Total Credit Portfolio reached R$1,402.0 billion in Q3 2025.

Finance: draft 13-week cash view by Friday.

Itaú Unibanco Holding S.A. (ITUB) - Canvas Business Model: Cost Structure

You're looking at the expense side of the Itaú Unibanco Holding S.A. engine for 2025. It's all about managing the necessary costs to support that massive credit book and digital push.

The primary expected outlay related to lending risk is the Cost of Credit. Management has guided this figure to fall within a specific band for the full year 2025.

Cost Component	2025 Projection/Figure	Basis/Context
Cost of Credit	R$34.5 billion to R$38.5 billion	Full-year 2025 guidance maintained as of November 2025
Non-interest Expenses Growth	5.5% to 8.5% growth	Full-year 2025 guidance maintained as of November 2025
Non-interest Expenses (2Q25 Actual)	R$16.5 billion	Quarterly figure, up 9.4% year-on-year due to investments and salary impact
Cost of Capital	Around 15.0% p.y.	Used for business management purposes as of February 2025

The projection for Non-interest expenses growth in 2025 is set between 5.5% and 8.5%. To be fair, this growth reflects necessary spending, not just bloat. For example, the second quarter of 2025 saw non-interest expenses hit R$16.5 billion, which was a 9.4% increase compared to 2Q24, partly due to the collective agreement on salaries effective from September 2024.

A major driver within these expenses is the Significant technology and digital transformation investment. The bank is pouring capital into this area to drive efficiency. We saw an investment of R$2.7 billion in Q1 2025 alone. This follows up on 2024, where Itaú Unibanco closed the year with R$2.3 billion in investments in business and technology.

The ongoing operational footprint requires significant upkeep, covering Personnel costs and branch network maintenance. While specific figures for maintenance aren't isolated, the overall expense structure is managed with an eye on digital migration. The bank reported having over 17,000 tech workers as of mid-2025, a key component of personnel costs, while simultaneously achieving an efficiency ratio of 36.9% in Brazil for Q2 2025, the best level for a second quarter in the historical series.

The internal hurdle rate for capital deployment, the Cost of capital used for management, is explicitly stated at approximately 15.0% per year.

Here are the key cost-related guidance points for 2025:

• Cost of Credit range: R$34.5 billion to R$38.5 billion.
• Non-interest expenses growth: 5.5% to 8.5%.
• Technology investment (Q1 2025): R$2.7 billion.
• Cost of Capital: 15.0% p.y..

Finance: draft 13-week cash view by Friday.

Itaú Unibanco Holding S.A. (ITUB) - Canvas Business Model: Revenue Streams

The revenue streams for Itaú Unibanco Holding S.A. are heavily anchored in its core banking activities, supplemented by fee-based services and insurance operations.

Net Interest Income (NII) from lending and credit operations forms the foundation, closely tied to the Financial Margin with Clients. For the third quarter of 2025, the financial margin with clients remained stable at R$30.5 billion on a consolidated basis.

The outlook for this core segment remains positive, with Itaú Unibanco maintaining its 2025 projection for growth in the Financial Margin with Clients between 11.0% and 14.0%. This is supported by a projected total credit portfolio growth for 2025 between 4.5% and 8.5%.

Revenue from Commissions and fees and results from insurance operations is also a key driver. For the third quarter of 2025, this combined revenue reached R$14.7 billion. The bank maintained its full-year 2025 projection for growth in Commissions and fees and results from insurance operations to be between 4.0% and 7.0%.

Delving into the components of insurance, pension plans, and capitalization operations, premiums earned showed a year-over-year increase of 14.0% for the first nine months of 2025 compared to the same period in 2024, with recurring results growing by 17.3% over that same period.

The overall profitability metric reflecting these streams is the Recurring managerial net income, which for the third quarter of 2025 was reported at R$11.9 billion. This figure represented an 11.3% rise compared to the third quarter of the previous year.

Here's a look at the key consolidated 2025 projections Itaú Unibanco maintained as of November 2025:

Revenue/Metric Component	2025 Consolidated Projection	Status
Financial Margin with Clients Growth	Growth between 11.0% and 14.0%	Maintained
Commissions and fees and results from insurance operations Growth	Growth between 4.0% and 7.0%	Maintained
Financial Margin with the market	Between R$3.0 bn and R$3.5 bn	Reviewed Upward
Total credit portfolio Growth	Growth between 4.5% and 8.5%	Maintained
Cost of credit	Between R$34.5 bn and R$38.5 bn	Maintained

You can see the strength in the core business through these specific Q3 2025 results:

• Recurring managerial result (Net Income): R$11.9 billion.
• Financial margin with clients (Q3 2025): R$30.5 billion.
• Commissions and insurance revenue (Q3 2025): R$14.7 billion.
• Consolidated credit portfolio (as of September 2025): R$1,402.0 billion.

Also, keep in mind the underlying cost assumption used for management decisions:

• Cost of capital considered as of February 2025: around 15.0% per year.

Finance: draft 13-week cash view by Friday.