Scotiabank vs Itaú Unibanco
This page compares Scotiabank and Itaú Unibanco, outlining their business models, financial performance, and market context in accessible terms. The aim is to present neutral, clear information to help readers understand each organisation's approach and position within the banking sector. Educational content, not financial advice.
This page compares Scotiabank and Itaú Unibanco, outlining their business models, financial performance, and market context in accessible terms. The aim is to present neutral, clear information to hel...
Why It's Moving
BNS Stock Warning: Why Analysts See -26% Downside Risk
- Shares surged to a 52-week high of $78.28 on February 12, trading well above 50-day ($73.82) and 200-day ($66.89) moving averages, reflecting robust investor confidence in recent performance.
- Short interest dropped 58.6% to just 0.6% of shares outstanding, with a low 3.9-day cover ratio, indicating reduced selling pressure and potential for further upside in the near term.
- Analysts hold a consensus Hold rating with an average target around current levels, highlighting solid fundamentals like a 5.7% dividend yield and recent EPS beat ($1.39 vs. $1.33), but flagging risks from high payout ratio and international exposure.
ITUB Stock Warning: Why Analysts See -18% Downside Risk
- UBS downgraded ITUB to Neutral from Buy, pointing to stretched valuations as the bank's growth prospects are already baked into shares.
- Revenue forecasts faced four downward revisions in the past three months despite a $9B estimate, highlighting market worries over slowing top-line expansion.
- Consensus analyst targets lag well behind the recent peak, with mixed EPS revisions underscoring uncertainty ahead of the upcoming 4Q25 earnings release.
BNS Stock Warning: Why Analysts See -26% Downside Risk
- Shares surged to a 52-week high of $78.28 on February 12, trading well above 50-day ($73.82) and 200-day ($66.89) moving averages, reflecting robust investor confidence in recent performance.
- Short interest dropped 58.6% to just 0.6% of shares outstanding, with a low 3.9-day cover ratio, indicating reduced selling pressure and potential for further upside in the near term.
- Analysts hold a consensus Hold rating with an average target around current levels, highlighting solid fundamentals like a 5.7% dividend yield and recent EPS beat ($1.39 vs. $1.33), but flagging risks from high payout ratio and international exposure.
ITUB Stock Warning: Why Analysts See -18% Downside Risk
- UBS downgraded ITUB to Neutral from Buy, pointing to stretched valuations as the bank's growth prospects are already baked into shares.
- Revenue forecasts faced four downward revisions in the past three months despite a $9B estimate, highlighting market worries over slowing top-line expansion.
- Consensus analyst targets lag well behind the recent peak, with mixed EPS revisions underscoring uncertainty ahead of the upcoming 4Q25 earnings release.
Investment Analysis
Scotiabank
BNS
Pros
- Scotiabank has a diversified international presence including strong footprints in Latin America and the Caribbean, supporting revenue resilience.
- The bank offers a robust dividend yield around 4.7%, which is attractive for income-focused investors.
- Recent portfolio optimization is expected to drive loan growth and improve the domestic return profile.
Considerations
- Its valuation is relatively high with a price-to-earnings ratio around 17, indicating possible overvaluation.
- High dividend payout ratio near 82% raises questions about sustainability under adverse conditions.
- International banking segment exposes it to global economic and currency risks which may increase earnings volatility.
Itaú Unibanco
ITUB
Pros
- Itaú Unibanco is the largest private-sector bank in Brazil, benefiting from strong market share in the region.
- The bank has shown strong revenue growth and improving credit quality supported by economic recovery in Brazil.
- Robust digital transformation initiatives are expected to lower operating costs and enhance customer experience.
Considerations
- Significant exposure to Brazil's macroeconomic volatility and regulatory risks could impact profitability.
- High concentration in a single emerging market increases susceptibility to political and currency fluctuations.
- The Brazilian banking sector faces increasing competition from fintech firms, pressuring margins.
Related Market Insights
Canada's Domestic Champions: Your Shield Against Trade War Chaos
Invest in Canada's domestic champions. These companies offer a strategic shield from trade war volatility & could benefit from Bank of Canada rate cuts.
Aimee Silverwood | Financial Analyst
August 30, 2025
Related Market Insights
Canada's Domestic Champions: Your Shield Against Trade War Chaos
Invest in Canada's domestic champions. These companies offer a strategic shield from trade war volatility & could benefit from Bank of Canada rate cuts.
Aimee Silverwood | Financial Analyst
August 30, 2025
Scotiabank (BNS) Next Earnings Date
Bank of Nova Scotia's next earnings date is February 24, 2026, covering the first quarter of fiscal 2026, as confirmed by the company's official release schedule. This follows their typical late-February pattern for Q1 results, with the announcement expected before market open. Investors should monitor for the official press release and conference call details in the coming weeks.
Itaú Unibanco (ITUB) Next Earnings Date
Itau Unibanco (ITUB) reported its most recent earnings for Q4 2025 on February 4, 2026. The next earnings date is scheduled for May 7, 2026, covering the Q1 2026 period, consistent with the company's quarterly reporting cadence. Investors should monitor for the official confirmation as the date approaches.
Scotiabank (BNS) Next Earnings Date
Bank of Nova Scotia's next earnings date is February 24, 2026, covering the first quarter of fiscal 2026, as confirmed by the company's official release schedule. This follows their typical late-February pattern for Q1 results, with the announcement expected before market open. Investors should monitor for the official press release and conference call details in the coming weeks.
Itaú Unibanco (ITUB) Next Earnings Date
Itau Unibanco (ITUB) reported its most recent earnings for Q4 2025 on February 4, 2026. The next earnings date is scheduled for May 7, 2026, covering the Q1 2026 period, consistent with the company's quarterly reporting cadence. Investors should monitor for the official confirmation as the date approaches.
Which Baskets Do They Appear In?
Canada Domestic Champions Explained | Trade War Shield
Recent U.S. tariffs have caused a contraction in Canada's export-driven economy, creating a unique investment opportunity. This theme focuses on Canadian companies that serve the domestic market and are insulated from international trade disputes.
Published: August 30, 2025
Explore BasketWhich Baskets Do They Appear In?
Canada Domestic Champions Explained | Trade War Shield
Recent U.S. tariffs have caused a contraction in Canada's export-driven economy, creating a unique investment opportunity. This theme focuses on Canadian companies that serve the domestic market and are insulated from international trade disputes.
Published: August 30, 2025
Explore BasketBuy BNS or ITUB in Nemo
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