SAO PAULO, Feb 6 (Reuters) - Brazilian lender Itau

Unibanco ( ITUB ) expected its default ratio to remain

relatively stable in 2025, Chief Executive Milton Maluhy Filho

said on Thursday, but noted some "upward volatility" was not out

of question.

Brazil's largest bank released on Wednesday its

fourth-quarter results and forecasts for this year, including a

slowdown in credit growth, as well as extraordinary dividends.

"Naturally, there may be some upward volatility, but at

levels very similar to what we are observing," Maluhy Filho told

reporters when asked about Itau's default ratio.

In the fourth quarter, the lender's 90-day default ratio

stood at 2.4%, down from 2.6% in the previous three-month period

and 2.8% a year earlier.

The bank estimated a 4.5% to 8.5% expansion in the total

credit portfolio this year, against 15.5% growth last year. The

2024 result, however, exceeded the guidance of a 9.5% to 12.5%

increase.

Even with a more difficult macroeconomic scenario, prospects

are for a very strong result in 2025, with profitability still

above 20%, the chief executive said. In 2024, Itau's return on

equity (ROE) was 22.2%.

Maluhy Filho also signaled that more extraordinary dividends

are likely going forward.

"Other things held constant, from what we see today, at the

end of the year we'll do as we are doing at the beginning of the

year - another extra dividend payout," he said. "Our goal is not

to retain excess capital."

Itau's shares were nearly flat in Sao Paulo trading on

Thursday, as analysts considered the bank's fourth-quarter

numbers solid but the forecasts for the year conservative.

"We think Itau continues to post best-in-class results among

Brazil incumbent banks, although the set of earnings, dividends,

and guidance did not bring major positive surprises," analysts

at Goldman Sachs said.