Itau Unibanco Holding SA ADRITUB

Morningstar Rating

Stock Research and Analysis

by Morningstar Equity Analysts

Itau Unibanco is Latin America's largest nongovernment bank after the merger of Itau and Unibanco. However, we think that despite all of the headlines, size by itself does not create shareholder value unless it is a profitable venture. We have mixed Read more

Bulls Say

Itau was one of Brazil's most profitable banks, and its management should help Itau Unibanco maintain that distinction.

Itau Unibanco is poised to profitably expand in Brazil and Latin America as one of the predominant players in the market.

Brazil's banks are usually able to achieve lofty interest margins and stout revenue. Read more

Bears Say

If inflation rises and exports fall, industrial activity in Brazil likely will contract, making it hard for Itau Unibanco to grow at its former rate.

A drop in Brazil's currency directly affects Itau Unibanco's fair value in U.S. dollars. For example, a 15% decline in the exchange rate implies a 15% fall in the ADR price without any modification to the bank's underlying businesses. Read more

Management

We like that Itau Unibanco is run mostly by Itau's top management, despite the fact that Unibanco's former CEO is the new company's chairman. Historically, Itau has done a better job of creating shareholder value through more efficient operations, which Read more

Profile

With more than 4,000 branches and roughly $500 billion in assets, Itau Unibanco is the largest non-government-controlled financial institution in Latin America. Headquartered Read more