Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q1 2016 Earnings Presentation
22 slides from Itau Unibanco's earnings presentation, May 5, 2016
Slide 1: 1st quarter 2016 – Earnings Review Conference Call
1st quarter 2016 – Earnings Review Conference Call Eduardo Mazzilli de Vassimon Executive Vice-President, CFO (Chief Financial Officer) and CRO (Chief Risk Officer) Marcelo Kopel Investor Relations Officer
Slide 2: Highlights
Highlights Recurring Net Income R$5.2 -9.3% (1Q16/4Q15) billion -9.9% (1Q16/1Q15) Recurring ROE (p.a.) -240 bps (1Q16/4Q15) 19.9% -460 bps (1Q16/1Q15) 12-month ROE was 22.7% Credit Quality 3.9% 40 bps (1Q16/4Q15) NPL 90 90 bps (1Q16/1Q15) NPL 15-90: 3.1% 50 bps (1Q16/4Q15) 20 bps (1Q16/1Q15) Financi
Slide 3: Recurring ROE / Recurring ROA
Recurring ROE / Recurring ROA Recurring Return on Average Equity (trailing 12 months) Recurring Return on Average Equity (quarterly) Recurring Return on Average Assets – Annualized Itaú Unibanco Holding S.A. 3
Slide 4: Results
Results In R$ millions 1Q16 4Q15 change 1Q15 change Operating Revenues 25,867 26,680 (812) -3.0% 24,946 921 3.7% Managerial Financial Margin 16,557 16,764 (207) -1.2% 15,963 594 3.7% Financial Margin with Clients 14,820 15,495 (675) -4.4% 14,092 728 5.2% Financial Margin with the Market 1,737 1,269
Slide 5: Results – Brazil and Latin America
Results – Brazil and Latin America 1Q16 4Q15 change Latin Latin Latin Consolidated Brazil 1 America Consolidated Brazil 1 America Consolidated Brazil 1 America In R$ millions (ex-Brazil) (ex-Brazil) (ex-Brazil) Operating Revenues 25,867 24,471 1,397 26,680 25,100 1,580 -3.0% -2.5% -11.6% Managerial
Slide 6: Business Expansion in Latin America | Pro Forma 1Q16
Business Expansion in Latin America | Pro Forma 1Q16 Without CorpBanca With CorpBanca Increase Latin Latin Latin Chile Colombia Other America Chile Colombia Other America Chile America In R$ millions (except where indicated) (ex-Brazil) (ex-Brazil) (ex-Brazil) Operating Revenues 464 36 897 1,397 848
Slide 7: Credit and Trading & Insurance and Services
Credit and Trading & Insurance and Services 1Q16 4Q15 change In R$ billions Consolidated Credit and Trading Insurance and Services Excess Capital Consolidated Credit and Trading Insurance and Services Excess Capital Consolidated Credit and Trading Insurance and Services Excess Capital Operating Reve
Slide 8: Credit Portfolio, end of period
Credit Portfolio In R$ millions, end of period 1Q16 4Q15 change 1Q15 change Individuals 184,226 187,556 -1.8% 187,286 -1.6% Credit Card Loans 54,867 58,542 -6.3% 56,331 -2.6% Personal Loans 29,159 28,961 0.7% 29,822 -2.2% Payroll Loans 46,742 45,437 2.9% 44,608 4.8% Vehicle Loans 18,105 19,984 -9.4%
Slide 9: Financial Margin with Clients Breakdown
Financial Margin with Clients Breakdown Loan Portfolio Mix Change ¹ (%) Corporate Very Small, Small and Middle Market Vehicles Credit Card Personal Loans Latin America Mortgage Loans Payroll Loans ¹ Does not include endorsements and sureties Financial Margin with Clients Breakdown (Quarter) In R$ mi
Slide 10: Financial Margin | Annualized average rate
Financial Margin | Annualized average rate Spread-sensitive operations Financial margin with clients Risk-adjusted spread-sensitive operations1 Risk-adjusted financial margin with clients1 CDI (annualized quarterly rate) ¹ After provision for loan losses, net of recoveries. Itaú Unibanco Holding S.A
Slide 11: Financial Margin with the Market
Financial Margin with the Market In R$ millions Sale of Cetip/BM&FBovespa Shares Financial Margin with the Market 1-year moving average of Financial Margin with the Market (ex-Sale of Shares) The quarterly average Financial Margin with the Market for the past 8 quarters was R$1,462 million. Itaú Uni
Slide 12: Credit Quality: 90-day NPL Ratio
Credit Quality 15 to 90-day NPL Ratio Individuals Total Corporate Very Small, Small and Middle Market Companies 90-day NPL Ratio Individuals Total Corporate Very Small, Small and Middle Market Companies ¹ In the fourth quarter of 2015, there were transfers of financial assets with no risk retention
Slide 13: Credit Quality: NPL Ratio, NPL Creation and Write-off
Credit Quality 90-day NPL Ratio and 90-day NPL Ratio Excluding Fully Provisioned Credits (%) Individuals Individuals (ex-Fully Provisioned Credits) Companies Companies (ex-Fully Provisioned Credits) NPL creation and Write-off In R$ billion NPL Creation / Loan Portfolio² - Wholesale Banking NPL Creat
Slide 14: Renegotiated Loan Operations
Renegotiated Loan Operations Total Renegotiated Portfolio | Breakdown by Days Overdue* (in R$ billion) Days overdue: measured at the moment of renegotiation Write-off When over 90 days overdue When 31-90 days overdue When up to 30 days overdue When non-overdue * Measured at the moment of renegotiati
Slide 15: Provision for Loan Losses by Segment and Coverage Ratio
Provision for Loan Losses by Segment and Coverage Ratio (90-day NPL) In R$ million Retail Banking Wholesale Banking Coverage Ratio (90-day NPL) Itaú Unibanco Holding S.A. 15
Slide 16: Allowance for Loan Losses by Type of Risk
Allowance for Loan Losses by Type of Risk Allocation of Allowance for Loan Losses by Type of Risk Expected and/or Potential Loss Related to expected loss in Retail segment and potential loss in Wholesale segment Renegotiation and overdue loans Related to aggravated risk rating of overdue and renegot
Slide 17: Commissions & Fees and Result from Insurance
Commissions & Fees and Result from Insurance In R$ millions 1Q16 4Q15 change 1Q15 change Asset Management ¹ 725 756 (31) -4.1% 662 63 9.5% Current Account Services 1,607 1,623 (16) -1.0% 1,405 203 14.4% Credit Operations and Guarantees Provided 766 840 (74) -8.8% 800 (35) -4.3% Collection Services 3
Slide 18: Non-Interest Expenses
Non-Interest Expenses In R$ millions 1Q16 4Q15 change 1Q15 change Personnel Expenses (4,751) (4,899) 148 -3.0% (4,514) (237) 5.2% Administrative Expenses (4,051) (4,558) 507 -11.1% (3,927) (124) 3.2% Personnel and Administrative Expenses (8,802) (9,457) 655 -6.9% (8,441) (361) 4.3% Operating Expense
Slide 19: Core Capital Ratio (Common Equity Tier I)
Core Capital Ratio (Common Equity Tier I) Changes in the Core Capital Ratio in the 1Q16 Full application of Basel III rules │ March 31, 2016 1 Includes deductions of Goodwill, Intangible Assets (generated before and after October 2013), Tax Credits from Temporary Differences and Tax Loss, Pension Fu
Slide 20: 2016 Forecast
2016 Forecast Our forecast for 2016 was kept unchanged. Consolidated Brazil 1 Total Credit Portfolio 2 from -0.5% to 4.5% from -1.0% to 3.0% Financial Margin with Clients Growth of 2.0% to 5.0% Growth of 1.0% to 4.0% Provision for Loan Losses Net of Recovery of Loans Between R$22 billion and R$25 bi
Slide 21: Stock Market Performance
Stock Market Performance Market Capitalization (in R$ billions) Net Dividend Yield 1 Price/Earnings 2 Average Daily Trading Volume (in R$ millions) BM&FBOVESPA (Non-voting + Common) NYSE (ADR) 1 Dividends and Interest on Capital Distributed in the last 12 months of each period/average price of the n
Slide 22: 1st quarter 2016 – Earnings Review Conference Call
1st quarter 2016 – Earnings Review Conference Call Eduardo Mazzilli de Vassimon Executive Vice-President, CFO (Chief Financial Officer) and CRO (Chief Risk Officer) Marcelo Kopel Investor Relations Officer
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