Imagine waking up to a substantial boost in your investment portfolio – that's the exciting reality for shareholders of Itaú Unibanco Holding S.A. as they prepare for upcoming payouts and a significant corporate move. But here's where it gets interesting: are these financial maneuvers truly maximizing long-term value, or could there be better ways to deploy that capital? Let's dive into the details and explore what this all means for investors like you.
In a transparent update to its shareholders, Itaú Unibanco Holding S.A. (often simply called the Company) has announced some key financial decisions approved by its Board of Directors. Building on the payouts already declared for the 2025 fiscal year, these latest approvals focus on rewarding investors through dividends and interest on capital, while also streamlining the company's share structure. For beginners, dividends are like a share of the company's profits distributed to shareholders, acting as a direct return on your investment. Interest on capital, or IoC, is another form of payout in Brazil that allows companies to reward shareholders without the same tax implications as dividends, often seen as a creative way to keep money flowing to investors.
Specifically, the Company is set to pay dividends amounting to BRL 1.868223 per share, with the payment date slated for December 19, 2025. In addition, there's interest on capital at BRL 0.369750 per share. Now, income tax will be withheld at a 15% rate on this IoC, leaving a net amount of BRL 0.3142875 per share after taxes. This net payment will be distributed by April 30, 2026. And this is the part most people miss: these payments are available to all shareholders, regardless of whether they hold common shares (traded as ITUB3) or preferred shares (ITUB4), ensuring equal treatment across the board.
Together, these distributions add up to a whopping BRL 23.4 billion, calculated based on the final stockholding position recorded on December 9, 2025. As a result, shares will trade 'ex-rights' starting December 10, 2025, meaning buyers on or after that date won't be entitled to these upcoming payouts – a standard practice to prevent confusion and ensure fairness in the market.
But here's where it gets controversial: alongside these payouts, the Company is also making a bold move by canceling 78,850,638 preferred shares, valued at R$ 3 billion. These shares were purchased through the ongoing Buyback Program and held in treasury, and their cancellation won't reduce the overall subscribed and paid-in share capital. For those new to this, a buyback program lets companies repurchase their own shares, often to boost stock value or reward shareholders. Canceling treasury shares can increase earnings per share by reducing the total number of shares outstanding, potentially making each remaining share more valuable. However, critics might argue that this capital could be better used for growth investments, like expanding services or acquisitions, rather than just enhancing shareholder payouts. What do you think – is this a smart strategy for long-term success, or a short-sighted focus on quick wins?
Following this cancellation, the Company's share capital now stands at BRL 124,063,060,190.00, comprised of 10,705,698,245 book-entry shares with no par value. This breaks down to 5,454,119,395 common shares and 5,251,578,850 preferred shares. Any necessary updates to the Company's Bylaws will be addressed at the next General Shareholders' Meeting, keeping everything above board and aligned with corporate governance.
Itaú Unibanco remains deeply committed to creating value for its shareholders and maintaining open, honest communication with the market. For example, by offering these payouts and managing share structure efficiently, the bank aims to demonstrate its financial health and reliability, which can attract more investors and stabilize stock prices over time.
If you have questions or need more details, head over to www.itau.com.br/investor-relations and navigate through the menu to Investor Services > Contact IR for direct assistance.
São Paulo (SP), November 27, 2025.
Gustavo Lopes Rodrigues
Investor Relations Officer
[1] These are in addition to the amounts previously declared for fiscal year 2025.
[2] Except for corporate stockholders who can prove they are immune or exempt from this withholding tax.
SOURCE Itaú Unibanco Holding S.A.
So, what are your thoughts? Do you see these decisions as a win for shareholders, or do they raise concerns about the bank's priorities? Share your opinions in the comments – let's discuss!
