#Brazil #São Paulo #Itaú Unibanco #Bonus Shares #Stockholder

Itaú Unibanco's Strategic Bonus Shares Initiative

On February 5, 2025, Itaú Unibanco Holding S.A. conducted a Board of Directors meeting where they proposed substantial changes to enhance capital and benefit shareholders. This communication is crucial not only for current investors but also for potential stakeholders interested in the ongoing advancements within the Brazilian banking sector.

Capital Increase

The Board approved an increase in the subscribed and paid-in capital from R$90.7 billion to R$124.06 billion. This R$33.33 billion increase will be funded by capitalizing amounts recorded in the Company’s Revenue Reserves, specifically the Statutory Reserves. By expanding its capital, Itaú Unibanco aims to strengthen its financial footing and provide greater value to its shareholders.

Bonus Shares Distribution

In a compelling move, the Company has proposed to issue 980,413,535 bonus shares, translating to a 10% increase in capital. This action means that every stockholder will receive one new share of the same type for every ten shares held, which will not incur any costs for the shareholders. The new shares will comprise both common and preferred types.

Key Dates

To ensure shareholder engagement, a crucial deadline has been established. Stockholders must hold their shares by the end of March 17, 2025, to qualify for the bonus shares. The new shares will start trading without bonus rights on March 18, 2025, and will be included in stockholders' records by March 20, 2025.

Earnings Entitlement

The newly issued bonus shares will be fully entitled to earnings distributions starting from March 20, 2025, maintaining parity with existing common and preferred shares. This measure reinforces the Company's commitment to providing ongoing returns to its shareholders.

Dividends Adjustments

Itaú Unibanco also plans to enhance monthly dividends from R$0.015 per existing share by 10%, reflecting the introduction of the bonus shares. Furthermore, the minimum annual dividend for preferred shares will remain at R$0.022 per share. This initiative positions Itaú Unibanco as an attractive investment option, reinforcing its commitment to shareholder value.

Auction of Fractional Shares

In a bid to streamline the process, any fractional shares resulting from this bonus issuance will be gathered and auctioned post the eligibility period. This approach ensures that stockholders possessing an uneven number of shares can adjust their holdings to qualify for whole shares without excessive hassle.

International Considerations

For international investors, particularly those involved in the U.S. market, bonus shares will be applicable to American Depositary Receipts (ADRs) at a similar rate of 10%. Thus, investors will receive one new ADR for every ten ADRs held by the deadline.

Conclusion

Itaú Unibanco's initiative not only signifies a robust strategy for capital enhancement but also embodies a commitment to returning value to its loyal shareholder base. The proactive measures taken by the board encourage market confidence and establish Itaú Unibanco's position as a leading institution in Brazil’s financial landscape. Stakeholders are encouraged to stay informed on this exciting development through the Company’s investor relations portal for further clarification and updates.