Shares of Itaú Unibanco Holding S.A. advanced on Thursday following the announcement of a capital-management initiative designed to strengthen the bank’s financial position. The move, which involves the issuance of R$3 billion in perpetual subordinated financial bills, is expected to enhance the lender’s Additional Tier 1 capital and support future shareholder distributions.
On the New York Stock Exchange, Itaú’s American Depositary Receipts (ITUB) rose 3.7% to $7.905, with intraday volume exceeding 28.7 million shares. In São Paulo, the bank’s preferred shares (ITUB4) traded near R$40.52, up 2.97%, after reaching an intraday high of R$40.62. The broader Brazilian market also gained, with the Ibovespa index climbing 1.30% to 170,814 on June 11.
Itaú announced on June 10 that it had raised R$3 billion through the sale of perpetual subordinated financial bills to professional investors. These securities are perpetual in nature, though the bank may repurchase them starting in 2031, subject to approval from Brazil’s central bank. The offering is expected to increase Itaú’s Tier 1 capital ratio by approximately 19 basis points, a key metric for regulatory compliance.
The capital injection comes amid a cautious credit environment. In its first-quarter 2026 earnings release, Itaú reported a recurring managerial result of R$12.3 billion and an annualized recurring managerial return on equity of 24.8%. The bank’s total credit portfolio stood at R$1.4827 trillion, while the over-90-day non-performing loan ratio remained stable at 1.9%. “We began 2026 in a scenario that demands caution and discipline in credit,” said Chief Executive Milton Maluhy Filho.
Itaú’s shareholder-remuneration policy ties annual payouts to central bank capitalization rules. The board’s minimum Tier 1 capital requirement is 13.5%. The bank’s board has approved R$3.99 billion in interest on capital for fiscal 2026, equating to a gross payment of R$0.36188 per share (R$0.298551 net after tax). Holders of record on June 18 will receive the distribution, with shares going ex-rights on June 19. ADR holders will receive their cash after the payment is processed in Brazil, with the distribution expected by August 31 in Brazil and by September 7 in the U.S.
This capital-management plan positions Itaú to navigate potential future capital needs, including growth opportunities, share buybacks, and acquisitions, while maintaining compliance with regulatory standards. The bank’s ADRs have been listed on the NYSE since 2002, providing U.S. investors with direct exposure to its preferred shares.
