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Itaú Reports Increase in Profit and Higher Profitability, but Reduces Physical Network and Implements Staff Cuts While Unions Promote Protests and Highlight Impact on In-Person Banking Service Availability in Various Regions of the Country.
Itaú Unibanco reported a recurring net profit of R$ 11.5 billion in the second quarter of 2025, a result 14.3% higher than that obtained in the same period of 2024.
The financial institution also registered a annualized average return on equity (ROE) of 23.3%, above the 22.4% recorded the previous year. The data is included in the earnings report released by the bank on August 5, 2025.
According to public information, the financial margin with clients showed growth, and operating expenses remained stable compared to the same quarter of 2024.
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The report also indicates a provision of R$ 556 million for restructuring, included in the category of non-recurring items.
Reduction of the Physical Network
The number of branches and service points of Itaú has decreased over the past year. In June 2024, there were 3,021 units; in March 2025, 2,795; and in June 2025, 2,738.
The comparison between June 2024 and March 2025 — reduction of 226 service points — is the reference used by union entities when citing the closure of branches.
Itaú reported that, starting in September 2023, it adopted a revised methodology for counting units, ceasing to include points that have become exclusively virtual. This change resulted in retroactive adjustments to the historical series.
Reported Layoffs
The Banking Union of São Paulo, Osasco, and Region stated that there have been layoffs following the release of the quarterly result, affecting digital branches and areas such as real estate credit and vehicle financing.
The executive director of the entity, Valeska Pincovai, stated: “It makes no sense for such a profit to be accompanied by job cuts. We know that new technologies are greatly contributing to this change in the banking sector, but it is not fair for workers to suffer so much from this transformation process.”
According to the union, demonstrations have occurred at closed units, with banners, placards, and symbolic processions to inform the public about the reduction in physical service.
Bank’s Position
In response to inquiries, Itaú attributed the changes to restructuring processes, performance, and organizational adjustments.
The bank highlighted the expansion of digital channels as part of its service strategy, without detailing layoff figures.
Industry Context
Data from the Central Bank of Brazil shows that the closure of physical branches is a trend in the national financial system, accompanied by the expansion of digital services.
According to official statistics, the number of banking branches has been continuously declining, while the use of applications and self-service channels is increasing.
Financial market experts indicate that this technological transition aims to reduce operating costs and enhance efficiency.
However, the maintenance of physical service points remains relevant for certain regions and population groups.
Indicators and Definitions
The recurring net profit is calculated without considering extraordinary effects unrelated to the institution’s main operation, aiming to show the real performance of the period.
The ROE (Return on Equity) represents the percentage relationship between net profit and average equity, indicating the profitability achieved by shareholders.
Difference in Branch Numbers
The decrease of 226 units mentioned by unions is obtained by comparing the data from June 2024 (3,021 units) with March 2025 (2,795).
On the other hand, the official report from Itaú indicates that from June 2024 to June 2025, there was a reduction of 283 units. The discrepancy arises from the time frame and the methodology applied in accounting.
Given the expansion of digital channels and the reduction of the physical network, what should be the format of banking service that can reconcile operational efficiency and physical coverage for all regions?
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