SAO PAULO, Feb 5 (Reuters) - Brazilian bank Itau

Unibanco ( ITUB ) expects its total loan book growth to slow

this year, it said on Wednesday, as it posted as-expected

quarterly profit growth and announced 15 billion reais ($2.59

billion) in extraordinary dividends.

Latin America's largest private lender by total assets said

it expects its total credit portfolio to grow between 4.5% and

8.5% in 2025, after its portfolio size leaped by 15.5% last

year.

Net interest income from clients, which measures the

difference between what it earns on loans and pays out on

deposits, should grow between 7.5% and 11.5% in 2025, the lender

said, accelerating from a 7.1% increase last year.

UBS BB analyst Thiago Batista calculated that Itau's

guidance, which include others estimates such as provisions and

service revenues, indicate 2025 earnings of 45 billion reais at

the midpoint, below the 46 billion reais expected by the market.

Itau did not give further details on what it based its

projections. An analyst call with its management is scheduled

for early Thursday local time.

Itau posted a net recurring profit of 10.88 billion reais

($1.88 billion) for the quarter ended in December, up nearly 16%

year-on-year and in line with an estimate of 10.89 billion reais

from analysts polled by LSEG.

Its return on equity, a gauge of profitability, stood at

22.1% in the quarter, up from 21.1% a year earlier, but down

from 22.7% in the third quarter. The 90-day default ratio fell

0.4 percentage points from a year earlier to 2.4%.

Earlier on Wednesday, Itau's rival Santander Brasil

kicked-off earnings season for Brazilian largest

banks, sending its shares 6% higher.

In addition to the dividends, Itau also announced on

Wednesday further 3 billion reais payout to shareholders through

a share buyback and the cancellation of shares, as well as an

issuance of a share bonus for every 10 owned by shareholders.

JPMorgan analysts led by Yuri Fernandes said Itau's

guidance and dividends came shy of expectations, with earnings

mostly in-line.

"We expect a lackluster reaction tomorrow as expectations

were high post Santander Brasil results," they wrote in a note

to clients.

($1 = 5.7973 reais)