Aug 5, 2026 earnings call — Quarterly results, loans and margins focus
Recurring net income was BRL 12.4 billion this quarter, with loan portfolio at BRL 1.522 trillion.
Revenue $9.1B (est $9.3B) · EPS $0.21 (est $0.22)
Key quotes
"The mortgage portfolio grew by 3.9% in the quarter, and by 13.3% year-over-year, reaching BRL 152 billion."
"We also delivered a very solid result of 32.6 billion an increase of 3.3% compared to the first quarter of 2026 and a 5% compared to the second quarter of 2025."
"As a result of this strategy, the efficiency ratio reached 35.5% in Brazil in the second quarter and 37.4% on a consolidated basis."
Analyst Q&A 12
net interest margin drivers
Q (Bernardo Guttmann · XP Investments): Analyst asked why semester margin is below guidance and where acceleration will come from in second half (volume, liability mix, capital) and how liability margin will behave with rate cycle.
A: Management said portfolio is growing around 10% and margin of assets is growing aligned with portfolio. Liability margin grew strongly last year and shows volatility from structured wholesale operations; hedges and timing slow pass-through from interest rate moves. They expect seasonality and possible volatility in Q3–Q4 but the guidance range still covers their view.
"we see the portfolio growing about 10%, maybe a bit below." — Milton Maluhy Filho
sustainability of portfolio growth
Q (Gustavo Schroden · Citi Bank): Analyst asked if growth in three main areas (SMEs, private payroll loans, real estate) is sustainable given higher rates, delinquency caps, and whether structured/quasi-equity dividends are seasonal.
A: Management said SME growth is high quality, helped by government programs and stable delays; private payroll loans are being grown with discipline focusing on public sector clients and have lower delinquency than system. Real estate funding mechanics changed but they see capacity to grow; dividends from quasi-equity are erratic and often come year-end, so their contribution is unpredictable.
efficiency improvement potential
Q (Beatrice · UBS): Analyst asked if there is more room to improve efficiency and what drives it.
A: Management said efficiency has been improving due to technology investments and scalability across segments; this quarter shows a virtuous trend and they believe there is further potential through detailed plans and discipline. They emphasized continued focus on revenue and scalable segments.
"A lot of the fruits of the investments that the bank has done throughout the years." — Milton Maluhy Filho
service lines and fee revenue outlook
Q (Marcelo Mizrahi · BBI): Analyst asked why services guidance was revised and the strategy for credit cards, payments, merchant acquiring, and insurance going forward.
A: Management explained different service lines: credit card strategy focuses on higher-income clients and lifetime value rather than acquisition through discounts; fees are volatile by market activity but balances and consortiums help. Investment banking and origination face pricing pressure; bancassurance is growing well. They aim to reduce package fees to increase engagement long term.
asset quality comfort
Q (Yuri Fernandes · null): Analyst asked if management is comfortable with asset quality given seasonal improvements and whether 15–90 day buckets or longer delinquencies may worsen.
A: Management said they kept write-off and provisioning policies unchanged and completed prior derisking, so portfolio is resilient. Short-term delinquencies showed seasonal moves but overall they see stability and no signal of concern; they expect some volatility but are comfortable with current indicators.
"We don't do that for provision or using this degree to freedom for that." — Milton Maluhy Filho
cost control and AI impact
Q (Daniel Vaz · J. Safra): Analyst asked how management would control costs if revenue growth slowed, limits on cost cuts, and AI adoption level.
A: Management said cost is the item they control and they decelerated cost growth while still investing for the future; they mapped many levers and will use technology and AI to drive efficiency. They will not stop innovation and expect further retail cost reductions via digital transformation.
"The cost is under matched." — Milton Maluhy Filho
AI as efficiency lever
Q (Gabriel de Moura · null): Analyst followed on AI and whether it will raise expenses or produce efficiencies.
A: Management said AI is an important lever; AI expenses will rise but generate efficiencies and revenues, similar to prior cloud transformation. They are implementing multiple initiatives to sustainably generate shareholder value while bearing short-term expense increases.
competitive dynamics and ROE
Q (Daer Labarta · Goldman Sachs): Analyst asked how management views competitive pressures given high ROE versus peers and risk of competitors acting irrationally.
A: Management said they respect competitors but maintain discipline in capital allocation; if competitors act irrationally they will step back because those strategies are unsustainable and will lower returns. Their advantage is disciplined capital allocation, full product and digital experience, and they see room to grow with this approach.
"So this discipline is key for the long term." — Milton Maluhy Filho
system resilience in a crisis
Q (Eduardo Rosman · BTG Pactual): Analyst asked how prepared the system is for an economic crisis now that capital markets and new players changed the market structure.
A: Management said the market has more credit and capital market alternatives which help but also make a crisis more complex; supervision and regulation need stronger resources and they support increasing central bank budget. New entrants and fund-based distribution create shadow risks and lower visibility on receivable ownership in stress scenarios.
"We defend the increase of the budget for the Central Bank, so they can supervision." — Milton Maluhy Filho
migration to One Itau and benefits
Q (Mario Pierry · BofA): Analyst asked whether client migration to One Itau delivered expected benefits and why service revenue gains lag.
A: Management said migration executed very well with high activation and NPS gains; cross-sell improved (over 70% clients have three products) and many new products launched. They noted derisking reduced marginal revenue in some migrated segments, so service revenue mix effects can be negative even as overall client engagement and future growth improve.
"First, we concluded the migration second year NBS levels above 80%, very strong with a small fraction, 99.3% of the clients." — Milton Maluhy Filho
tax credits and regulatory risk
Q (Carlos Gomez-Lopez · HSBC): Analyst asked about high effective tax rate, DTAs, and risk of policy pressure to raise industry taxes.
A: Management said there is a large stock of DTAs and banks should avoid actions that reduce tax base; options include reducing IOC or payout to preserve capital. They don't see immediate risk but acknowledged systemic implications and that reducing IOC might be needed to avoid capital losses from tax credits.
"So the DTA and the tax credit is a tax that was paid at a certain moment or you have to deal with that when you go and you move for the coming years." — Milton Maluhy Filho
guidance risks and 2027 outlook
Q (Henrique Navarro · Santander): Analyst asked which lines are most at risk under the new, wider guidance and whether 2027 may see softer credit growth or weaker fees.
A: Management said the guidance is a pragmatic range and they don't expect to need a review but will if market performance changes; portfolio growth and asset margin are fine while liabilities and structured operations cause volatility. They emphasized disciplined provisioning and expect cost of credit to finish close to the midpoint, with 2027 too early to judge.
"We have a guidance and we imagine that we are not going to need to review it, but we are pragmatic to review it whenever we have a better performance in the market." — Milton Maluhy Filho