Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q4 2018 Earnings Presentation
158 slides from Itau Unibanco's earnings presentation, Feb 5, 2019
Slide 1: Announcement to the Market – 4Q18 Result
Exhibit 99.1 ITAÚ UNIBANCO HOLDING S.A. CNPJ 60.872.504/0001-23 A Publicly-Listed Company NIRE 35300010230 ANNOUNCEMENT TO THE MARKET Itaú Unibanco Holding S.A. th 4 Quarter 2018 Result Itaú Unibanco Holding S.A. (“Company”) announces to its stockholders and the market at large that the Complete Fin
Slide 2: Attachment 01
fls.2 Attachment 01 fls.2 Attachment 01
Slide 3: 4Q18 Institutional Information
4Q18 Institutional Information4Q18 Institutional Information
Slide 4: Forward-looking statements
4Q18 This presentation contains forward-looking statements regarding Itaú Unibanco Holding, its subsidiaries and affiliates - anticipated synergies, growth plans, projected results and future strategies. Although these forward-looking statements reflect management’s good faith beliefs, they involve
Slide 5: Disclaimer Corpbanca Pro Forma Information
Disclaimer Corpbanca Pro Forma Information st The merger between Itaú Chile and CorpBanca was concluded on April, 1 2016. As from the second quarter of 2016, Itaú CorpBanca, the company resulting from this merger, was consolidated in our financial statements, as we are the controlling shareholder of
Slide 6: Agenda
Agenda 1. Our Profile 2. Corporate Governance 3. Business Overview 4. Financial Highlights 5. Information Technology 6. Itaú Unibanco in Capital Markets 7. Sustainability As of February 04, 2019Agenda 1. Our Profile 2. Corporate Governance 3. Business Overview 4. Financial Highlights 5. Information
Slide 7: Our Profile
Our Profile 1Our Profile 1
Slide 8: Itaú Unibanco at a Glance
Itaú Unibanco at a Glance Financial Highlights and Ratios Leading position in Brazil As of and for the quarter ended December 2018 (1) § US$88.3 billion market cap Highlights § 100,335 employees in Brazil and abroad Total Assets R$1649.6 Bi § 4,940 branches and CSBs in Brazil and abroad (1) Total Lo
Slide 9: Our Vision
Our Vision Vision: To be the leading bank in sustainable performance and customer satisfaction • Implement a customer satisfaction-oriented culture, that is business-driven, through a simplified operational structure • Maximize shareholder returns, aiming at firm-wide growth • We aspire to be the pr
Slide 10: Our Way
Our Way 1. It’s only good for us if it’s good for the client We are people providing service to people, with passion and excellence. We work with the client and for the client – because they are the main reason behind why we do what we do. 2. We’re passionate about performance Generating sustainable
Slide 11: Medium and Long-Term Strategic Agenda
Medium and Long-Term Strategic Agenda CORPORATE GOVERNANCE AND SUSTAINABILITY PERMEATE ALL EFFORTS ON KEY STRATEGIC OBJECTIVES Commitment to permanently improve corporate governance plays a vital role in protecting stakeholders’ interests. We incorporate sustainability into our strategy through a co
Slide 12: Itaú Unibanco Global Footprint
Itaú Unibanco Global Footprint Itaú Unibanco has an important presence in key financial centers supported by a unique recognition and reputation. We want to be recognized as: The Latin American Bank CIB London, Lisbon, Madrid, Paris, Frankfurt Institutional Clients / Asset London Private Banking CIB
Slide 13: A History of Successful Strategic Deals
1 A History of Successful Strategic Deals Acquisition of the remaining 50% of: Retail - Brazil Uruguay NACIONAL Acquisition of the Banco Itaú BMG Consignado minority interest of: Casa Moreira Salles Acquisition of a 1924 minority interest in: Unibanco 1995 - 1998 2000 - 2003 2004 - 2007 Merger 2008
Slide 14: Corporate Governance
Corporate Governance 2Corporate Governance 2
Slide 15: Corporate Governance at Itaú Unibanco
Corporate Governance at Itaú Unibanco Strengths of our structure Family ownership ensuring a long-term view • • Professional management team • Strong corporate governance • Broad shareholder base (52.78% of our shares in free float) Egydio de Souza Free Float* Moreira Salles Family Non Voting Shares
Slide 16: IUPAR and Itaú Unibanco Governance
IUPAR (Itaú Unibanco Participações) and Itaú Unibanco Governance Alignment and union among shareholders; Family control Group´s vision, mission and values; IUPAR Significant mergers & acquisitions; (Itaú Unibanco with a strategic Nominations to the Board of Directors and CEO; long-term vision Partic
Slide 17: Board of Directors and Executive Committees
Itaú Unibanco Board of Directors and Executive Committees Co-Chairman Co- Chairman Pedro Moreira Salles Roberto Egydio Setubal . Directors Alfredo Egydio Setubal Marco Ambrogio Crespi Bonomi Gustavo Jorge Laboissière Loyola 1 Amos Genish 1 Pedro Luiz Bodin de Moraes 1 João Moreira Salles Ana Lúcia d
Slide 18: Risk Management Structure
Risk Management Structure Board of Directors Capital and Risk Audit Committee Pedro Moreira Salles Management Committee Gustavo Loyola 1 Roberto Egydio Setubal Pedro Bodin 1 3rd line of defense Internal Audit Independent review of the Paulo Miron activities developed by the institution. Itaú Unibanc
Slide 19: Governance Structure at Itaú Unibanco
Governance Structure at Itaú Unibanco Shareholder’s Meeting Fiscal Council Board of Directors Audit Personnel Related Nomination Risk and Capital Strategy Compensation International Digital Committee Committee Parties and Corporate Management Committee Committee Advisory Advisory Committee Governanc
Slide 20: Credit Risk Policies Hierarchy
Credit Risk Policies Hierarchy § Defines and monitors Risk Appetite; Board of Directors and § Approval of policies, strategies and definition of minimum Capital and Risk Management Committee expected return on capital; § Improvement of Risk Culture. § Defines a Global Policy; 1 § Approves policies h
Slide 21: Risk Appetite Defined by the Board of Directors
Risk Appetite Defined by the Board of Directors Principles Statement Dimensions § Sustainability and customer § Optimization of capital § Reputation; satisfaction; allocation; § Liquidity; § Risk pricing;§ Low volatility in results; § Capitalization; § Operational excellence;§ Regional focus; § Oper
Slide 22: Risk Appetite
Risk Appetite (as approved by the Board of Directors) The Risk Appetite... establishes the types and levels of risk acceptable to the bank, within which management seeks to maximize value creation. It is based on Guided by the and monitored by 43 metrics inserted Board of Directors Principles of Ris
Slide 23: Retail Management – Statistical Models
Retail Management – Individuals and Small and Middle Companies STATISTICAL MODELS Lowest risk Risk Level Highest Risk 100 100 102 98 114 94 123 89 128 88 148 88 153 88 100 100 104 101 102 95 101 89 106 90 112 99 124 94 115 91 115 91 116 92 130 93 148 88 157 81 167 79 v 110 91 112 102 114 97 113 92 1
Slide 24: Credit Offer Based on Future Scenario
Credit Offer Based on Future Scenario STATISTICAL MODELS Highest Lowest Risk Level risk risk Credit Available Base Scenario Credit Not Available Credit Not Available Highest risk Positive future expectation Negative future expectation Risk Level Risk Level Credit Available Credit Available Credit No
Slide 25: Business Overview
Business Overview 3Business Overview 3
Slide 26: Universal Bank
Universal Bank 1 RETAIL BANKING WHOLESALE BANKING RETAIL AND REAL ESTATE CREDIT ITAÚ BBA 4,428 branches and client service branches and 47,301 ATMs in Brazil; Full coverage of corporate clients with RETAIL annual sales above R$ 200 million; AND REAL Premier banking brand in Brazil; ESTATE Leadership
Slide 27: Client Segmentation
Client Segmentation Individuals Segmentation Companies Segmentation by monthly income by annual sales Ultra Private Bank over R$4 billion or >R$750 million debt* >R$5 million in total investment Large >R$400 million up to R$4 billion or >R$200 million debt* Corporate >R$200 million up to R$400 milli
Slide 28: Retail in Brazil
Retail in Brazil Automated Teller Machines (ATMs) in Brazil 2 Presence in Brazil 1 (As of December 31, 2018) 46,712 44,947 45,353 46,463 45,182 45,502 45,769 45,891 47,301 3 15 7 26 21 7 8 7 592 598 610 613 608 626 617 648 635 23,049 22,086 22,431 21,195 21,423 19,868 20,516 20,809 20,937 North 115
Slide 29: Retail - Credit Cards, JVs and Partnerships
Retail - Credit Cards, Joint Ventures and Partnerships with Retailers in Brazil Highlights Highlights JVs and Partnerships • Brazilian market leader in credit card transactions; • Focus on credit card instruments; • Qualification of the client base: proprietary channel x partnerships; • Long term ag
Slide 30: Retail - Cards in Brazil
Retail - Cards in Brazil | Growing Penetration in Household Consumption Expenditure Credit and Debit Cards Billed Volume % at Household Consumption Expenditure 35.1% 34.9% 34.1% 33.8% 32.4% 32.1% 31.4% 30.8% 29.6% 13.0% 13.3% 12.5% 12.7% 12.1% 12.4% 11.7% 11.6% 11.0% 22.1% 21.6% 21.6% 21.1% 20.3% 19
Slide 31: Retail - Payroll Loan in Brazil
Retail - Payroll Loan in Brazil Composition of Payroll Loans Portfolio by Sector Evolution of Payroll Loan Portfolio R$ billion 46.7 46.0 45.4 44.9 44.8 44.6 44.6 44.4 44.7 5.1 4.9 4.9 4.3 4.3 4.4 4.4 4.8 4.7 5.1 5.5 11% 5.9 6.4 7.6 8.8 8.2 7.0 9.2 11% 36.5 35.5 34.6 33.5 32.6 32.8 31.7 32.2 31.0 78
Slide 32: Retail - Mortgage Market in Brazil
Retail - Mortgage Market in Brazil Mortgage Loans Evolution Distribution Channels for Individuals Balance As of December 2018 R$ million 0.5% 48,074 47,953 48,337 Partnerships 13.0% 14.0% 17.4% 11% Regular Real Estate Branches Brokers 11% 32% 87.0% 86.0% 82.6% Developers 15% High Income Branches Dec
Slide 33: Retail - Vehicle Financing in Brazil
Retail - Vehicle Financing in Brazil Highlights: Individuals and Corporate Individuals Portfolio Loans Granted R$ million • Growth of 33% in production (QoQ); R$ million • Offers finance through over 10 thousand dealers; • Average ticket size of the new vehicle concessions to individuals of R$33 12.
Slide 34: Retail - Insurance Ranking in Brazil
1,2 Retail - Insurance Ranking in Brazil Jan-Nov/18 Jan-Nov/18 Model 3 4th 4th Total Insurance 4 5th 5th Bancassurance Life & Personal Accidents 2nd 3rd Bancassurance Credit Insurance 6th 5th Bancassurance Pension Plan 3rd 3rd Bancassurance Premium Bonds 3rd 3rd Bancassurance Porto Seguro 2nd 2nd 5
Slide 35: Retail - Association with Porto Seguro
Retail - Association with Porto Seguro Highlights Association’s Structure • Unification of residential and automobile insurance Controlling stockholders of Itaú Unibanco Porto Seguro operations; 57.07% 42.93% • Exclusive offer and distribution of residential and automobile insurance products to Itaú
Slide 36: Very Small, Small and Middle Market in Brazil
Very Small, Small and Middle Market in Brazil SMEs Loan Portfolio 1 R$ million 79,649 75,433 72,002 70,795 68,974 61,869 61,547 2012 2013 2014 2015 2016 2017 2018 Highlights Full range of financial products and services, including deposits accounts, investment options, insurance, cash management, cr
Slide 37: Wholesale - Corporate Companies in Brazil
Wholesale - Corporate Companies in Brazil 1 Corporate Loans R$ million 219,418 213,815 194,472 181,541 165,052 163,437 153,302 2012 2013 2014 2015 2016 2017 2018 Highlights • Corporate clients with annual sales above R$200 million. • We offer a broad portfolio of banking products and services, from
Slide 38: Wholesale - Corporate and Investment Banking
Wholesale - Corporate and Investment Banking | Leadership Position in Brazil Investment Banking Wholesale Banking Fixed Income Middle Until December 2018, we maintained the leadership in the distribution Annual revenues from R$30 MM up to ranking of Anbima, with a distributed volume of R$28.9 billio
Slide 39: Wholesale - Wealth Management Services
Wholesale - Wealth Management Services | Brazil Asset Management Evolution of Assets Under Administration Investment Product management for the conglomerate and a full range of Asset Management investment options to Retail Banking. In December 2018, we reached R$680.61 billion in assets under 1,107
Slide 40: Retail Footprint in Latin America
Retail Footprint in Latin America | December 2018 Mexico | CIB Employees: 8 Panama Colombia1 Employees: 3,495 Branches + CSBs: 161 ATMs: 174 Brazil Employees: 86,801 Peru Branches + CSBs: 4,428 Representative ATMs: 47,301 Office Paraguay Chile Employees: 844 Employees: 5,820 Branches + CSBs: 40 Bran
Slide 41: Segments – Income Statement Pro Forma 4Q18
Segments – Income Statement Pro Forma 4Q18 Activities with the Retail Banking Wholesale Banking Itaú Unibanco Market + Corporation In R$ millions 18,335 7,727 2,409 28,471 Operating Revenues 10,247 4,860 2,274 17,382 Managerial Financial Margin 10,247 4,860 1,125 16,233 Financial Margin with Clients
Slide 42: Financial Highlights
Financial Highlights 4Financial Highlights 4
Slide 43: Highlights
Highlights Recurring Net Income Recurring ROE Credit1 NPL 90 days Consolidated Consolidated Consolidated Consolidated 50 bps 0.1 % 0.4 % 0.0 bp R$636.9 bi R$6.5 bn 4Q18 vs. 3Q18 4Q18 vs. 3Q18 21.8% 4Q18 vs. 3Q18 2.9% 4Q18 vs. 3Q18 Brazil Brasil Brazil Brasil 30 bps 2.2 % 0.0 bp 0.9 % . R$473.8 bi 4Q
Slide 44: 2018 Forecast
2018 Forecast Consolidated Brazil ¹ Realized Expected Realized Expected 4.0% 4.0% 7.0% 7.0% Total Credit Portfolio ² 6.1% 4.2% -0.5% -1.0% 3.0% 2.5% Financial Margin with Clients 2.2% -0.2% R$4.3 bn R$5.3 bn R$3.3 bn R$4.3 bn Financial Margin with the Market R$5.5 bn R$4.0 bn R$12.0 bn R$16.0 bn R$1
Slide 45: Recurring Net Income and Value Creation
Recurring Net Income and Value creation 24.1% 23.9% 21.8% 21.9% 20.3% ROE Average Cost of Capital 16.9% 16.3% 16.0% 14.6% 14.0% 25.7 Recurring Net Income 24.9 23.8 22.1 20.7 Value Creation 9.2 8.2 4.4 8.3 7.6 17.7 Cost of Capital 16.6 16.5 15.5 13.1 2014 2015 2016 2017 2018 page 43 In R$ billionRecu
Slide 46: Income Statement | Operating Revenues Perspective
Income Statement | Operating Revenues Perspective DDD In R$ millions 4Q18 3Q18 4Q17 2018 2017 28,471 27,899 2.1% 27,839 2.3% 111, 109, 817 2. 291 3% Operating Revenues Managerial Financial Margin 17,382 17,408 -0.2% 16,941 2.6% 69,084 68,510 0.8% Financial Margin with Clients 16,233 16,152 0.5% 15,5
Slide 47: Income Statement | Managerial Financial Margin Perspective
Income Statement | Managerial Financial Margin Perspective DDD In R$ millions 4Q18 3Q18 4Q17 2018 2017 Managerial Financial Margin 17,382 17,408 -0.2% 16,941 2.6% 69,084 68,510 0.8% Financial Margin with Clients 16,233 16,152 0.5% 15,503 4.7% 63,599 62,223 2.2% Financial Margin with the Market 1,149
Slide 48: Results – Brazil and Latin America
Results – Brazil and Latin America 2018 2017 D Latin Latin Latin 1 1 1 Consolidated America Consolidated America Consolidated America Brazil Brazil Brazil In R$ millions (ex-Brazil) (ex-Brazil) (ex-Brazil) Operating Revenues 111,817 100,446 11,371 109,291 100,286 9, 006 2.3% 0.2% 26.3% Managerial Fi
Slide 49: Business Model
Business Model In R$ billions 2018 2017D Insurance Insurance Insurance Excess Excess Excess Consolidated Credit Trading and Consolidated Credit Trading and Consolidated Credit Trading and Capital Capital Capital Services Services Services Operating Revenues 111.8 56.9 1.6 51.5 1.7 109.3 56.1 1.6 48.
Slide 50: Credit Portfolio with Financial Guarantees and Corporate Securities
Credit Portfolio with Financial Guarantees Provided and Corporate Securities DD In R$ billions, end of period 4Q18 3Q18 4Q17 Individuals 211.3 200.0 5.7% 191.5 10.3% Credit Card Loans 77.5 68.7 12.8% 66.9 15.7% Personal Loans 29.2 28.9 1.2% 26.4 10.9% 1 46.7 46.0 1.6% 44.4 5.0% Payroll Loans Vehicle
Slide 51: Credit Portfolio by Product
Credit Portfolio by Product In R$ billions, end of period 4Q18 3Q18D 4Q17 D 1 210.4 199.1 5.7% 190.6 10.4% Individuals - Brazil 77.5 68.7 12.8% 66.9 15.7% Credit Card 28.2 27.9 1.2% 25.3 11.4% Personal Loans 2 46.7 46.0 1.6% 44.4 5.0% Payroll Loans 15.9 15.2 4.4% 14.1 12.9% Vehicles 42.0 41.2 2.0% 3
Slide 52: Credit Portfolio by Currency
Credit Portfolio by Currency 1 R$ billion Dec-18 219.5 379.1 598.6 Sep-18 233.4 366.7 600.1 Jun-18 223.5 365.1 588.6 Mar-18 197.9 368.4 566.4 Dec-17 192.4 371.7 564.1 Sep-17 180.7 358.4 539.1 Jun-17 184.9 367.4 552.3 Mar-17 176.5 373.9 550.3 Dec-16 183.3 378.7 562.0 Foreign Currency Local Currency (
Slide 53: Credit Origination and Private Securities Issuance
Credit1 Origination and Private Securities Issuance | Brazil Base 100 = 4Q17 and 2017 Total Credit2 – Brazil Credit2 - Individuals 23% 13% 1% 29% 17% 15% 129 123 121 117 113 100 100 100 100 98 4Q17 3Q18 4Q18 2017 2018 4Q17 3Q18 4Q18 2017 2018 Credit2 – Very Small, Small and Credit2 – Corporate Priva
Slide 54: Credit Portfolio Growth in Brazil
Credit Portfolio Growth in Brazil 1 (in R$ Billions) Nominal GDP (Dec-14 to Dec-18): 19.0% Accumulated Inflation (IPCA) (Dec-14 to Dec-18): 26.6% Accumulated Interbank Rate: (Dec-14 to Dec-18): 52.5% Credit Card Loans Payroll Loans Vehicle Loans Personal Loans 15.2% 30.6% 0.8% -45.0% 9.2% 3.4% 4.5%
Slide 55: Credit Portfolio Breakdown
Credit Portfolio Breakdown 1,2 1 Companies Credit Portfolio by Business Sector Credit Concentration Dec-18 4Q18 3Q18D R$ million In R$ billions, end of period Public Sector 4.7 5.3 -10.9% Private Sector 323.2 331.2 -2.4% Loan, lease, other credit operations Real Estate 19.6 20.7 -5.4% Loan, lease an
Slide 56: Credit Portfolio by Vintage
1 Credit Portfolio by Vintage Profile of credit portfolio by origination period: R$ billion § Older vintages with higher spreads are losing relevance compared to the most recent ones. § 58.9% of total origination was created in the past 12 months. 494 531 532 36.5% 38.8% 40.9% 4.6% 4.5% 4.3% 6.2% 6.
Slide 57: Loan Portfolio Mix Change
Loan Portfolio Mix Change 1 (%) dez/18 Dec-18 18.1 12.73.0 14.5 5.39.1 8.8 28.5 Consolidated de Dec z/18 -18 25.3 17.8 4.2 20.4 7.4 12.7 12.3 Dec-17 Dec-17 27.9 16.5 3.9 18.7 7.1 13.4 12.4 2 Brazil Dec-16 Dec-16 30.7 16.1 4.2 16.2 7.1 13.4 12.3 Dec-15 dez/15 35.0 16.1 4.9 14.4 7.0 11.2 11.2 Dec-14 d
Slide 58: Financial Margin with Clients
Financial Margin with Clients Annualized Average Rate Brazil Consolidated 12.7% 12.6% 12.3% 12.2% 12.1% 12.0% 12.0% 11.8% 12.6% 10.3% 10.3% 10.1% 9.9% 9.9% 9.9% 9.6% 9.8% 9.8% 9.5% 9.2% 9.2% 10.9% 9.0% 8.9% 9.2% 8.9% 8.2% 7.6% 7.7% 7.6% 7.5% 7.4% 7.4% 7.3% 7.1% 6.7% 6.4% 6.4% 6.7% 6.4% 1Q17 2Q17 3Q1
Slide 59: Financial Margin with the Market
Financial Margin with the Market R$ billion 1.8 1.8 6.3 1.7 1.6 5.5 1.5 1.4 1.4 1.3 0.3 5.3 3.7 1.9 1.7 1.6 1.4 1.4 1.3 1.3 0.1 1.1 0.2 1.7 1.3 1.3 0.9 1.2 1.1 1.0 0.5 1.5 0.5 1.0 0.2 0.3 0.2 0.2 0.3 0.5 0.3 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 Financial Margin with Sale of shares - B3
Slide 60: Provision for Loan Losses and Cost of Credit
Provision for Loan Losses and Cost of Credit Provision for Loan Losses by Segment R$ million 5.8% 5.0% 5.0% 4.7% 4.6% 4.4% 4.5% 4.3% 4.1% 3.7% 3.6% 3.4% 3.3% 3.0% 2.9% 7,824 6,337 5,997 6,366 5,768 6,169 5,823 5,392 772 4,948 4,483 4,111 4,282 4,271 383 399 396 412 392 757 432 2,728 598 3,904 3,796
Slide 61: Allowance for Loan Losses by Risk
Allowance for Loan Losses by Risk– Consolidated R$ million Regulatory (*) Allocation of Total Allowance by Type of Risk - Consolidated Breakdown 34,261 37,309 Complementary 35,496 Allowance Expected and/or 34,261 Potential Loss Retail - Brazil1 6,284 6,375 Related to expected Allowance for Financial
Slide 62: Non Performing Loans Ratios
Non Performing Loans Ratios 15 to 90-day NPL Ratio | Consolidated - % 90-day NPL Ratio| Consolidated (%) 4.8 4.2 3.9 3.7 3.8 3.8 3.7 3.5 3.5 3.4 3.2 3.4 3.2 3.1 3.0 3.1 2.9 2.8 2.8 2.6 2.6 3.9 2.3 3.4 3.0 2.9 3.2 3.2 3.1 3.1 2.8 3.0 2.6 2.7 2.7 2.7 2.9 2.9 2.9 2.5 2.8 2.6 2.5 2.7 2.3 2.7 2.6 2.5 2.4
Slide 63: Coverage Ratio (90-day NPL)
Coverage Ratio (90-day NPL) Coverage Ratio and Expanded Coverage Ratio1 Coverage Ratio 908% 639% 517% 248% 246% 245% 243% 2 236% 235% 231% 222% 221% 235% 221% 219% 169% 168% 166% 104% 104% 101% 100% 100% 96% 95% 92% 90% Dec-17 Sep-18 Dec-18 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec
Slide 64: NPL Creation
NPL Creation R$ billion 5.3 * 5.0 5.0 4.9 4.4 4.4 4.4 4.4 3.8 3.8 3.8 3.6 3.5 3.5 3.5 3.5 3.3 3.2 * 1.0 1.1 1.0 0.8 0.7 0.5 0.5 0.5 0.4 0.7 0.8 0.5 0.5 0.4 0.2 0.3 0.2 -0.3 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Total Retail Banking - Brazil Whosale Banking - Brazil Latin America ex-Brazil * E
Slide 65: Provision for Loan Losses and NPL Creation by Segment
Provision for Loan Losses and NPL Creation by Segment Retail Banking - Brazil R$ billion 107% 108% 105% 102% 104% 99% 100% 98% 89% 3.7 3.5 3.5 3.3 3.5 3.5 3.8 3.5 3.5 4.0 3.8 3.7 3.2 3.6 3.2 3.2 3.5 3.7 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Wholesale Banking - Brazil R$ billion 263% 230% 141%
Slide 66: Loan Portfolio Evolution by Risk Level
Loan Portfolio Evolution by Risk Level Brazil 1 Consolidated Total Allowance for Loan Losses (R$ million) 32,919 30,475 29,541 37,309 35,496 34,261 Loan Portfolio by Risk Level 43.1% 43.0% 43.0% 42.9% 44.0% 44.5% 34.9% 35.2% 33.6% 37.2% 38.2% 36.7% 8.7% 9.1% 5.0% 10.2% 4.9% 5.5% 4.1% 4.0% 4.0% 4.0%
Slide 67: Renegotiated Loan Operations
Renegotiated Loan Operations Total Renegotiated Portfolio | Breakdown by Days Overdue R$ billion Brazil 1 Days overdue: 22.9 23.1 24.6 24.5 24.4 25.5 25.2 25.7 25.2 measured at the moment of renegotiation 27.6 27.9 27.3 26.4 27.5 26.4 26.4 24.7 24.3 Latin America 2 2.0 2.2 2.3 2.1 1.8 1.9 2.0 1.5 1.
Slide 68: Credit Quality | Individuals
Credit Quality | Individuals Loan-to-Value Credit Cards Portfolio in Dec-18 Vehicles and Mortgage | Vintages 7.9% 58.4% 57.9% 57.8% 57.2% 18.7% 55.6% 8.0% 54.7% 8.7% 84.2% 72.6% Itaú Unibanco Brazilian Financial System Dec-17 Sep-18 Dec-18 excluding Itaú Unibanco Transactor¹ Installment with Interes
Slide 69: Banking Fee Revenues and Insurance Result
Banking Fee Revenues and Result from Insurance, Pension Plans and Premium Bonds In R$ millions 4Q18 3Q18 4Q D 17 D 2018 2017 D Credit and Debit Cards 3,487 3,379 3.2% 3,567 -2.3% 13,450 13,180 0.0% Current Account Services 1,854 1,829 1.4% 1,763 5.2% 7,320 6,791 0.0% Asset Management ¹ 1,192 1,068 1
Slide 70: Retail - Merchant Acquiring | REDE
Retail - Merchant Acquiring | REDE Debit Card Transaction Volume Credit Card Transaction Volume R$ million R$ million 81,136 46,057 70,376 69,425 68,259 38,711 38,873 65,915 37,548 63,558 63,345 61,937 35,818 35,595 60,938 32,867 32,234 32,014 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 4Q16 1Q17 2
Slide 71: Insurance Operations | Pro Forma Income Statement
Insurance Operations | Pro Forma Income Statement 4Q18 Recurring Other Recurring Activities Total In R$ millions Activities Activities 3Q18D 4Q17D Earned Premiums 1,045 970 75 946 2.5% 919 5.5% Revenues from Pension Plan and Premium Bonds 179 179 - 174 2.3% 231 -22.7% Liability Adequacy Test 43 43 -
Slide 72: Insurance Core Activities
Insurance Operations | Insurance Core Activities Net Income and Underwriting Margin Combined Ratio 1 R$ million 56.2% 78.5% 78.0% 77.9% 75.8% 74.9% 52.3% 51.6% 48.1% 47.2% 62.1% 756 57.5% 56.7% 717 717 701 53.3% 0.3% 687 52.0% 0.1% 0.1% 0.2% 0.3% 32.4% 40.1% 32.5% 398 401 31.9% 374 373 30.0% 344 25.
Slide 73: Pension Plan Segment
Pension Plan Segment Recurring Net Income Focus on Client Experience R$ million 7 Reasons to Invest 341 Plan your retirement 1 251 217 209 205 195 Pay your future health expenses 2 161 154 142 Invest in your kids’ education 3 Plan your taxes expenses 4 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Im
Slide 74: Non-interest Expenses
Non-interest Expenses In R$ millions 4Q18 3Q18D 4Q17D 2018 2017D Personnel Expenses (5,618) (5,405) 3.9% (5,512) 1.9% (21,300) (20,302) 4.9% Administrative Expenses (4,454) (4,173) 6.7% (4,262) 4.5% (16,659) (15,978) 4.3% Personnel Expenses and Administrative Expenses (10,072) (9,579) 5.2% (9,774) 3
Slide 75: Efficiency Ratio and Risk-Adjusted Efficiency Ratio
Efficiency Ratio and Risk-Adjusted Efficiency Ratio 65.7 68.6 61.7 64.5 63.4 63.3 60.8 61.0 61.3 49.2 48.7 48.8 47.3 47.1 44.8 45.7 45.9 43.6 70.1 68.2 66.6 65.0 63.3 62.7 62.2 64.2 61.2 47.4 47.0 47.7 45.5 46.4 47.6 45.3 45.3 45.3 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Trailing 12-month Effic
Slide 76: Balance Sheet – Assets and Liabilities
Balance Sheet – Assets and Liabilities 1 R$ million Assets 4Q18 3Q18 4Q17 D'D' Current and Long-term Assets 1,615,235 1,578,127 2.4% 1,475,217 9.5% Cash and Cash Equivalents 37,159 29,467 26.1% 18,749 98.2% Short-term Interbank Investments 304,747 320,965 -5.1% 271,254 12.3% Securities and Derivativ
Slide 77: Total Assets | Evolution and Breakdown
Total Assets | Evolution and Breakdown 1,649.6 R$ billion 1,503.5 1,427.1 Loans Portfolio 1 499.4 30.3% Cash and Cash Equivalents, 28.8% Interbank Investments and Interbank 474.7 and Interbranch Accounts Securities and Derivatives 27.7% 457.5 Financial Instruments 11.1% Other 183.7 2.1% 34.4 Permane
Slide 78: Total Liabilities | Evolution and Breakdown
Total Liabilities | Evolution and Breakdown R$ billion Deposits, Debentures and Funds from Bills and Structured 33.6% 1,649.6 Operations Certificates 1,503.5 1,427.1 Deposits Received under Securities, Repurchase Agreements and 22.1% 554.4 1 Fund from Acceptances and Issue of Securities 2 12.4% Othe
Slide 79: Funding
Funding • Loan Portfolio mainly funded by domestic client funding • Diversified funding base In R$ millions, end of period 4Q18 3Q18D 4Q17D Demand Deposits 72,581 74,817 -3.0% 68,973 5.2% Savings Deposits 136,865 132,374 3.4% 119,980 14.1% Time Deposits 251,301 244,247 2.9% 211,800 18.7% Debentures
Slide 80: Funding from Clients
Funding Funding from Clients 1 In R$ billions 1,949 1,912 1,839 1,805 1,747 1,682 1,648 Funding from Account Holders and 1,595 1,556 Institutional Clients 1,335 1,290 1,242 1,215 1,154 1,116 1,070 1,028 971 Assets Under Administration + Technical Provisions for Insurance, 555 552 Pension Plan and Pr
Slide 81: Capital Ratios (BIS) | Prudential Conglomerate
Capital Ratios (BIS) | Prudential Conglomerate 1 4Q18 3Q18 In R$ millions, end of period Consolidated stockholders’ equity (BACEN) 144,131 139,082 Deductions from Core Capital (20,773) (25,770) Core Capital 123,358 113,313 Additional Capital 7,796 8,073 Tier I 131,154 121,386 Tier II 15,874 15,866 R
Slide 82: Capital Ratios – Basel III
Capital Ratios Full aplication of Basel III rules│ December 31, 2018 15.9% 13.5% 13.5% -0.8% 1.0% -0.3% 0.4% -2.4% 3.1% 0.6% 1.0% 14.9% 12.9% 12.5% Tier I Net Inc ome Dividends, IOC and shares Assets deductions and Adition al Tier 1 Capital Tier I Additional Tier I - Dec-18 after Dec-17 and oth er E
Slide 83: Capital Requirement under Basel Committee, BACEN and ITUB Target
Capital Requirement under the Basel Committee, BACEN and ITUB Target ITUB Target Minimum Capital Required Basel II Basel III 15.0% 1.5% 1.5% 11.5% 11.0% 2.0% 8.0% If total capital falls 1.5% Subordinated 5.5% below 11.5%, debt (TII) restrictions will T1= 13.5% 12.0% Stockholders`equity start to be a
Slide 84: Payout Practice
Payout Practice In order to manage capital efficiently, aiming at creating value to our shareholders, we announced through a Material Fact disclosed on September 26, 2017, that we intend to: § Maintain the practice of paying dividends and interest on own capital at 35% of net income, however we excl
Slide 85: Ratings
Ratings FitchRatings International National Viability Support Local Currency Foreign Currency Long Term Short Term Long Term Short Term Long Term Short Term bb+ 4 BB B BB B AAA (bra) F1+ (bra) Moody’s International National Subordinated Debt Senior Unsecured Debt Issuer Issuer Foreign Currency Forei
Slide 86: 2019 Forecast
2019 Forecast Consolidated Brazil ¹ Total Credit Portfolio ² 8.0% 11.0% 8.0% 11.0% Financial Margin with Clients 9.5% 12.5% 9.5% 12.5% Financial Margin with the Market R$4.6 bn R$5.6 bn R$3.6 bn R$4.6 bn Cost of Credit ³ R$14.5 bn R$17.5 bn R$12.5 bn R$15.5 bn 4 Commissions and Fees and Results from
Slide 87: Distribution of Added Value
Distribution of Added Value 1 OTHER REINVESTMENTS R$1.5 bn R$2.1 bn 2% SHAREHOLDERS TAXES, FEES AND CONTRIBUTIONS 3% 32% R$24.4 bn R$23.3 bn 33% 73.0 bn Controllers Free Float Approximately 30% 6% 150 Thousand direct Non-Controllers EMPLOYEES shareholders 1% 24.4 bn 26% R$21.6 bn Approximately 1 mil
Slide 88: Information Technology
Information Technology 5Information Technology 5
Slide 89: Digital Transformation
Digital Transformation Use of Digital Channels¹ number of current account holders (in millions) Share of Transactions through digital channels Companies Individuals 11.1 2016 2018 Credit 16% 19% 9.6 1.1 1.1 1.0 8.6 31% 41% Investments Payments 61% 76% Note: Share of digital channels in the total vol
Slide 90: Itaú Unibanco in Capital Markets
Itaú Unibanco in Capital Markets 6Itaú Unibanco in Capital Markets 6
Slide 91: Non-voting Shares Appreciation | ITUB4 and ITUB
Non-voting Shares Appreciation | ITUB4 and ITUB Evolution of R$100 invested on the day before the announcement of the merger (October 31, 2008) to February 1, 2019 611 402 271 263 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Fe Ob ct- -1 19 8 ITUB4 - Without dividend reinves
Slide 92: Sustainability
Sustainability 7Sustainability 7
Slide 93: Sustainability Timeline
Sustainability Timeline Sustainability at the Sustainability board of directors’ Committee Strategy (officers level) Committee Sustainability Superior Ethics and Creation of Governance Sustainability operating (executive level) Committee committees Itaú Unibanco Merger 2013 2008 2017 2005 2000 2007
Slide 94: Sustainable Performance
Agenda Sustainable Performance Our Vision Is to be the leading bank in sustainable performance and customer satisfaction Sustainable Performance means creating shared values for employees, clients, shareholders and society, so as to ensure the longevity of our businessAgenda Sustainable Performance
Slide 95: Corporate Sustainability Governance
Corporate Sustainability Governance Board level Definition and monitoring of the sustainability strategy Board of Directors Board of Directors Members Members of of the Board the Board of Directors of Directors Strategy Committee Strategy Committee Members Members of of the Board the Board of Direct
Slide 96: Sustainability Strategy
Sustainability Strategy The sustainability strategy was defined from workshops, interviews and panels with internal and external stakeholders SOCIAL-ENVIRONMENTAL RISKS FINANCIAL EDUCATION DIALOG AND TRANSPARENCY AND OPPORTUNITIES Understand people´s needs to offer Build long-term relations based on
Slide 97: Dialogue and Transparency | Engagement
Dialogue and Transparency | Engagement Organizations and commitments that are sources of knowledge and trends Integrity and Ethics Responsible Bank Sustainable Development Reporting and Climate Change Transparency Diversity page 95Dialogue and Transparency | Engagement Organizations and commitments
Slide 98: Transparency with the Market | Reporting
Transparency with the Market | Reporting Consolidated Annual Integrated Report Report • First Brazilian financial institution to publish it voluntarily. Sustainability Form 20-F Report • Presentation of the results from 6 SEC + GRI capitals: financial, social and relationship, human, intellectual, m
Slide 99: The Sustainable Development Goals (SDGs)
The Sustainable Development Goals (SDGs) In 2015, the United Nations (UN) and world leaders The private sector has an essential role in this challenge. formally adopted a new sustainable development We are committed to the SDGs and since 2015 we take part in agenda, the Sustainable Development Goals
Slide 100: Employees | Profile
Employees | Profile 1 99,332 Employees Organizational Climate 60% 40% Confidential annual surveys that measure the employees’ satisfaction with the workplace and people management practices. Overall 2015 2017 2016 51.4% of management 22% of employees are Satisfaction positions are held by blacks 82%
Slide 101: Employees | Management Cycle
Employees | Management Cycle Training and Attraction and Compensation and Performance Selection Benefits Assessment Development Performance Special Talent Itaú Unibanco Fixed Compensation Management Programs Business School In 2017, it amounted to approximately R$ 15 billion (plus Based on meritocra
Slide 102: Environmental and Social Risks
Environmental and Social Risks | Integration of ESG into businesses 1 2 3 Compliance Governance Processes Policies Analysis methodologies Role of the compliance area Sustainability and environmental and social Based on the principles of relevance and Measure the quality of the process and responsibi
Slide 103: ESG Integration on Business
ESG Integration on Business Responsible Credit Analysis Investments The Environmental and Social Risk Policy contains the criteria for Proprietary methodology to include ESG issues in the valuation the analysis of clients and projects and the establishment of real of fixed income securities and the
Slide 104: Our operations | Buildings, Branches and Data center
Our operations | Buildings, Branches and Data center EMISSIONS MANAGEMENT RENEWABLE ENERGY PILOTS GOVERNANCE AND TARGETS Committee reviews eco-efficiency projects In administrative buildings, using solar Develop inventory, reduce and offset greenhouse gas emissions and studies, and tracks environmen
Slide 105: Task Force on Climate-related Financial Disclosures (TCFD)
Task Force on Climate-related Financial Disclosures (TCFD) The initiative was conceived under the Financial Stability Board (FSB). It proposes climate disclosure recommendations for the financial and non-financial sectors in the pillars of Governance, Strategy, Management Risks, Goals and Metrics. W
Slide 106: Initiatives | Itaú Women Entrepreneurs and Financial Education
Initiatives| Itaú Women Entrepreneurs e Financial Education Itaú Women Entrepreneurs Objective of the program Number of participants in the program The Itaú Women Entrepreneurs Program Empower female entrepreneurs in Brazil (local acronym IME) was created in 2013 as a through in-person and online so
Slide 107: Ethics and Information Security
Ethics and Information Security Our business is based on ethical principles, which reflects the transparency, respect and honesty present in our relationship with stakeholders. Employees who have acknowledged Code of ethics Ethics Corporate Policy and accepted the terms of the Code of Established to
Slide 108: Attachment 02 (Portuguese only)
fls.3 Attachment 02 (portuguese only) fls.3 Attachment 02 (portuguese only)
Slide 109: Apresentação para a Imprensa – Resultados 2018
Apresentação para a Imprensa Resultados - 2018 Alexsandro Broedel Diretor Executivo de Finanças e Relações com Investidores 05/02/2019 1Apresentação para a Imprensa Resultados - 2018 Alexsandro Broedel Diretor Executivo de Finanças e Relações com Investidores 05/02/2019 1
Slide 110: Destaques do resultado 4º trimestre de 2018
Destaques do resultado 4º trimestre de 2018 Lucro Líquido Recorrente ROE Recorrente Carteira de Crédito ¹ Índice de Inadimplência 90 dias Consolidado Consolidado Consolidado Consolidado 0,1 % 0,4 % 0,5 p.p. 0,0 p.p. R$ 636,9 bi 4T18 vs. 3T18 R$ 6,5 bi 21,8% 2,9% 4T18 vs. 3T18 4T18 vs. 3T18 4T18 vs.
Slide 111: Cenário macroeconômico
Cenário macroeconômico 1 2 Expectativa Realizado 2012 2013 2014 2015 2016 2017 2018 PIB - Mundo 3,8% 3,8% 3,0% 0,5% PIB - Brasil 1,9% 1,3% 1,1% PIB - Brasil 3,0% 1,3% -3,3% -3,5% 3 SELIC 6,50% 6,50% 3,88 4 Inflação 3,8% 3,7% 2,05 Dólar (cotação em R$) 3, 5 Desemprego 11,8% 12,3% 12,3 3,6 Dólar 7,4 3
Slide 112: Projeções 2018
Projeções 2018 Consolidado Brasil ¹ Realizado Expectativa Realizado Expectativa 4,0% 4,0% 7,0% 7,0% Carteira de Crédito Total ² 6,1% 4,2% -0,5% 3,0% -1,0% 2,5% Margem Financeira com Clientes - 0,2% 2,2% R$ 4,3 bi R$ 3,3 bi R$ 5,3 bi R$ 4,3 bi Margem Financeira com o Mercado R$ 4,0 bi R$ 5,5 bi R$ 12
Slide 113: Cenário macroeconômico para 2019
Cenário macroeconômico para 2019 2016 2017 2018 ¹ 2019 PIB - Mundo 3,8% 3,7% 3,5% 3,3% 1,3% 2,5% PIB - Brasil 1,1% -3,3% 6,3% 2 3,9% 3,7% Inflação 2,9% 3 Selic 13,7% 7,0% 6,5% 6,5% 12,7% 12,5% 12,3% 4 Desemprego 11,6% 5 Dólar (R$) 3,88 3,90 3,26 3,31 (1) PIB 2018 projetado; (2) IPCA; (3) Final do pe
Slide 114: Projeções 2019
Projeções 2019 Consolidado Brasil ¹ Expectativa Expectativa Carteira de Crédito Total ² 8,0% 11,0% 8,0% 11,0% Margem Financeira com Clientes 9,5% 9,5% 12,5% 12,5% Margem Financeira com o Mercado R$ 4,6 bi R$ 5,6 bi R$ 3,6 bi R$ 4,6 bi Custo do Crédito³ R$ 14,5 bi R$ 12,5 bi R$ 17,5 bi R$ 15,5 bi 4 R
Slide 115: Anexos
Anexos 7Anexos 7
Slide 116: Lucro Líquido Recorrente e Criação de Valor
Lucro Líquido Recorrente e Criação de Valor 24,1% 23,9% 21,9% 21,8% 20,3% ROE Custo de capital médio 16,9% 16,3% 16,0% 14,6% 14,0% 25,7 Lucro líquido recorrente 24,9 23,8 22,1 20,7 Criação de valor 9,2 8,2 4,4 8,3 7,6 17,7 Custo de capital 16,6 16,5 15,5 13,1 2014 2015 2016 2017 2018 8 Em R$ bilhões
Slide 117: Projeção: Carteira de Crédito Total
Projeção: Carteira de Crédito Total Crédito por perfil de Cliente ou por tipo de produto 6,1% 4,0% 7,0% Realizado Originação de crédito¹ e emissão de títulos privados Em R$ bilhões, ao final do período 2018 2017 D Pessoas Físicas 2 11,3 191,5 10,3% 2018 vs. 2017 Cartão de Crédito 7 7,5 6 6,9 15,7% T
Slide 118: Projeção: Margem com Clientes
Projeção: Margem com Clientes Margem Financeira com Clientes 2,2% -0,5% 3,0% Realizado Taxa Média Anualizada Brasil Consolidado 12,7% 12,6% 12,3% 12,2% 12,1% 12,0% 12,0% 11,8% 10,3% 10,3% 10,1% 12,6% 9,9% 9,9% 9,9% 9,8% 9,8% 9,6% 9,5% 9,2% 9,2% 9,0% 8,9% 10,9% 9,2% 8,9% 7,6% 7,7% 8,2% 7,6% 7,4% 7,3%
Slide 119: Projeção: Margem com Mercado
Projeção: Margem com Mercado Margem Financeira com Mercado R$ 5,5 bi R$ 5,3 bi R$ 4,3 bi Realizado 1,8 1,8 6,3 1,7 1,6 5,5 1,5 1,4 1,4 1,3 0,3 5,3 3,7 1,9 1,7 1,6 1,4 1,4 1,3 1,3 0,1 1,1 0,2 1,7 1,3 1,3 0,9 1,2 1,1 1,0 0,5 1,5 1,0 0,5 0,2 0,2 0,3 0,2 0,3 0,5 0,3 1T17 2T17 3T17 4T17 1T18 2T18 3T18 4T
Slide 120: Projeção: Custo do Crédito
Projeção: Custo do Crédito Custo e Qualidade do Crédito R$ 14,1 bi R$ 16,0 bi R$ 12,0 bi Realizado Custo do Crédito¹ Cobertura Em R$ bilhões 3,1% 248% 246% 2,9% 245% 2,7% 236% 235% 2,5% 221% 2,4% 2,3% 2,1% 2,1% 18,0 4,3 4,0 3,8 3,6 3,3 3,4 100% 100% 14,1 96% 95% 92% 90% 2017 2018 3T17 4T17 1T18 2T18
Slide 121: Projeção: Receita de Serviços e Seguros
Projeção: Receita de Serviços e Seguros² Receita de Serviços e Resultado de Seguros 5,5% 5,5% 8,5% Realizado Correntistas PF Em R$ bilhões 2018 2017 D Aumento no número de 13,4 13,2 2,0% Cartões de Crédito e Débito correntistas Pessoa Física 10,0% em relação ao ano de 2017 7,3 6,8 7,8% Serviços de C
Slide 122: Projeção: DNDJ
Projeção: DNDJ Despesas não Decorrentes de Juros (DNDJ) 5,0% 0,5% 3,5% Realizado Índice de Eficiência Em R$ bilhões 2018 2017 D Despesas de Pessoal (20,9) (20,2) 3,7% 64,2 Despesas Administrativas ( 15,9) ( 15,8) 0,6% 63,3 62,7 62,2 61,2 Despesas de Pessoal e Administrativas ( 36,9) (36,0) 2,3% Desp
Slide 123: Capital e Payout
Capital e Payout Aplicação integral das regras de Basileia III │31 de Dezembro de 2018 15,9% 13,5% 13,5% -0,8% 1,0% -0,3% 0,4% -2,4% 3,1% 0,6% 1,0% 14,9% 12,9% 12,5% Tier I Lucro Líquido e outras Dividendos, JCP e Deduções de Ativos Capital Complementar Tier I Parcela adicional de Tier I Dez/17 movi
Slide 124: Distribuição do Valor Adicionado
Distribuição do Valor Adicionado ¹ OUTROS REINVESTIMENTOS R$ 1,5 bi R$ 2,1 bi 2% ACIONISTAS 3% IMPOSTOS 32% R$ 24,4 bi R$ 23,3 bi 33% 73,0 bi Controladores Free Float 30% 6% Aproximadamente Não-Controladores COLABORADORES 150 mil acionistas diretos 1% 24,4 bi 26% R$ 21,6 bi Aproximadamente 1 milhão
Slide 125: Iniciativas Estratégicas de Longo Prazo realizadas em 2018
Iniciativas Estratégicas de Longo Prazo realizadas em 2018 Centralidade no Cliente Gestão de Pessoas Transformação Digital Implementação de programa de Flexibilização do Dress Code para colaboradores Números de canais digitais medição da satisfação de clientes (NPS) + de 600 mil contas PF abertas pe
Slide 126: Modelo de Negócios
Modelo de Negócios Em R$ bilhões 2018 2017 Δ Excesso Excesso Excesso Serviços & Serviços & Serviços & Consolidado Consolidado Consolidado Trading de Trading de Trading de Crédito Crédito Crédito Seguros Seguros Seguros Capital Capital Capital 111,8 5 6,9 1,6 51,5 1,7 109,3 56,1 1,6 48,8 2 ,7 2,5 0,8
Slide 127: Resultados
Resultados 4T18 3T18 Δ 2018 2017Δ Em R$ bilhões Produto Bancário 28,5 27,9 2,1% 111,8 1 09,3 2,3% Margem Financeira Gerencial 17,4 17,4 -0,2% 6 9,1 68,5 0,8% Margem Financeira com Clientes 16,2 1 6,2 0,5% 63,6 62,2 2,2% Margem Financeira com o Mercado 1,1 1,3 -8,5% 5,5 6,3 -12,7% 9,2 8 ,6 6,5% 3 5,1
Slide 128: Transformação Digital
Transformação Digital Uso dos canais digitais ¹ % das transações realizadas nos canais digitais Pessoas Físicas (em milhões) Empresas (em milhões) 2016 2018 11,1 Crédito 16% 19% 1,1 9,6 1,1 1,0 Investimentos 31% 41% 8,6 Pagamentos 61% 76% dez-16 dez-17 dez-18 dez-16 dez-17 dez-18 Nota: Participação
Slide 129: Saiba mais sobre nosso resultado
Saiba mais sobre nosso resultado www.itau.com.br/ri 21Saiba mais sobre nosso resultado www.itau.com.br/ri 21
Slide 130: Apresentação para a Imprensa Resultados - 2018
Apresentação para a Imprensa Resultados - 2018 Alexsandro Broedel Diretor Executivo de Finanças e Relações com Investidores 05/02/2019 22Apresentação para a Imprensa Resultados - 2018 Alexsandro Broedel Diretor Executivo de Finanças e Relações com Investidores 05/02/2019 22
Slide 131: Attachment 04
fls.4 Attachment 03 fls.4 Attachment 03
Slide 132: Itaú Unibanco reports profits of R$ 25.7 billion in 2018
Itaú Unibanco reports profits of R$ 25.7 billion in 2018 Result reflected a year-on-year increase of 3.4% boosted by lower cost of credit São Paulo, February 4, 2019 – Itaú Unibanco, the largest private sector bank in Latin America, reported a recurring net income of R$ 6.5 billion in the fourth qua
Slide 133: Non-interest expenses reached R$ 49.4 billion in 2018
Non-interest expenses reached R$ 49.4 billion in 2018, an increase of 5.0% compared with 2017, mainly due “We have seen a significant improvement in credit to the foreign exchange translation effect in Latin quality in both the retail as America, excluding operations in Brazil. well as wholesale seg
Slide 134: Attachment 05
fls.5 Attachment 04 fls.5 Attachment 04
Slide 135: Conference Call 2018 Earnings Review
Conference Call 2018 Earnings Review Candido Botelho Bracher President and CEO Milton Maluhy Filho Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Finance Director and Head of Investor Relations 1Conference Call 2018 Earnings Review Candido Botelho Bracher President and CEO Milton
Slide 136: Highlights 4th quarter 2018
Highlights th 4 quarter 2018 Recurring Net Income Recurring ROE Credit ¹ NPL 90 days Consolidated Consolidated Consolidated Consolidated 0.1 % 0.4 % 50 bps 0.0 bp R$636.9 bn 4Q18 vs. 3Q18 R$6.5 bn 21.8% 2.9% 4Q18 vs. 3Q18 4Q18 vs. 3Q18 4Q18 vs. 3Q18 Brazil Brazil Brazil Brazil 2.2 % 0.9 % 30 bps 0.0
Slide 137: About 2018
About 2018 3About 2018 3
Slide 138: Macroeconomic Outlook
Macroeconomic Outlook 1 2 Forecast Actual 2012 2013 2014 2015 2016 2017 2018 GDP - World 3.8% 3.8% 3.0% 0.5% GDP - Brazil 1.9% 1.3% 1.1% GDP - Brazil 3.0% 1.3% -3.3% -3.5% 3 SELIC 6.50% 6.50% 2012 2013 2014 2015 2016 2017 2018 ² 3.88 4 Inflation 3.8% 3.7% 2.05 Dollar (FX Rate in R$) 3, 5 Unemploymen
Slide 139: 2018 Forecast
2018 Forecast Consolidated Brazil ¹ Realized Expected Realized Expected 4.0% 4.0% 7.0% 7.0% Total Credit Portfolio ² 6.1% 4.2% -0.5% 3.0% -1.0% 2.5% Financial Margin with Clients - 0.2% 2.2% R$4.3 bn R$3.3 bn R$5.3 bn R$4.3 bn Financial Margin with the Market R$4.0 bn R$5.5 bn R$12.0 bn R$16.0 bn R$
Slide 140: Recurring Net Income and Value Creation
Recurring Net Income and Value Creation 24.1% 23.9% 21.9% 21.8% 20.3% ROE Average Cost of Capital 16.9% 16.3% 16.0% 14.6% 14.0% 25.7 Recurring Net Income 24.9 23.8 22.1 20.7 Value Creation 9.2 8.2 4.4 8.3 7.6 17.7 Cost of Capital 16.6 16.5 15.5 13.1 2014 2015 2016 2017 2018 6 In R$ billionRecurring
Slide 141: Forecast: Total Credit Portfolio
Forecast: Total Credit Portfolio Credit by Client profile or Product 6.1% 4.0% 7.0% Realized Credit origination¹ and private securities issuance In R$ bilions, end of period 2018 2017 D 2018 vs. 2017 Individuals 2 11.3 191.5 10.3% Credit Card Loans 77.5 6 6.9 15.7% Total Personal Loans 29.2 2 6.4 10
Slide 142: Forecast: Margin with Clients
Forecast: Margin with Clients Financial Margin with Clients 2.2% -0.5% 3.0% Realized Annualized Average Rate Brazil Consolidated 12.7% 12.6% 12.3% 12.2% 12.1% 12.0% 12.0% 11.8% 10.3% 10.3% 12.6% 10.1% 9.9% 9.9% 9.9% 9.8% 9.8% 9.5% 9.6% 9.2% 9.2% 9.0% 10.9% 8.9% 9.2% 8.9% 7.6% 8.2% 7.7% 7.6% 7.4% 7.3
Slide 143: Forecast: Margin with the Market
Forecast: Margin with the Market Financial Margin with the Market R$5.5 bn R$5.3 bn R$4.3 bn Realized 1.8 1.8 6.3 1.7 1.6 5.5 1.5 1.4 1.4 1.3 0.3 5.3 3.7 1.9 1.7 1.6 1.4 1.4 1.3 1.3 0.1 1.1 0.2 1.7 1.3 1.3 0.9 1.2 1.1 1.0 0.5 1.5 0.5 1.0 0.2 0.2 0.5 0.2 0.3 0.3 0.3 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
Slide 144: Forecast: Cost of Credit
Forecast: Cost of Credit Cost of Credit and Credit Quality R$14.1 bn R$16.0 bn R$12.0 bn Realized Cost of Credit ¹ Coverage Ratio In R$ Billions 3.1% 2.9% 248% 246% 245% 2.7% 236% 235% 2.5% 221% 2.4% 2.3% 2.1% 2.1% 18.0 4.3 4.0 3.8 3.6 3.3 3.4 100% 100% 14.1 96% 95% 92% 90% 2017 2018 3Q17 4Q17 1Q18
Slide 145: Forecast: Services and Insurance
Forecast: Services and Insurance² Commissions and Fees and Result From Insurance Operations 5.5% 5.5% 8.5% Realized Current Account Holders In R$ billions 2018 2017 D Increase in the number of Credit and Debit Cards 13 .4 13.2 2.0% Individuals account 10.0% holders compared to 2017. Current Account
Slide 146: Forecast: Non-Interest Expenses
Forecast: Non-Interest Expenses Non-Interest Expenses 5.0% 0.5% 3.5% Realized Efficiency Ratio In R$ billions 2018 2017 D Personnel Expenses (20.9) (20.2) 3.7% 64.2 63.3 62.7 Administrative Expenses (15.9) (15.8) 0.6% 62.2 61.2 Personnel Expenses and Administrative Expenses (36.9) ( 36.0) 2.3% Opera
Slide 147: Capital and Payout
Capital and Payout Full aplication of Basel III rules│ December 31, 2018 15.9% 13.5% 13.5% -0.8% 1.0% -0.3% 0.4% -2.4% 3.1% 0.6% 1.0% 14.9% 12.9% 12.5% Tier I Net Income Dividends, IOC and shares Assets deductions and Aditional Tier 1 Capital Tier I Additional Tier I - Dec-18 after Dec-17 and other
Slide 148: Distribution of Added Value
Distribution of Added Value ¹ OTHER REINVESTMENTS R$1.5 bn R$2.1 bn SHAREHOLDERS TAXES, FEES AND CONTRIBUTIONS R$24.4 bn R$23.3 bn 73.0 bn Controllers Free Float Approximately 6% 150 thousand direct Non-Controllers EMPLOYEES shareholders 1% 24.4 bn 26% R$21.6 bn Approximately 1 million indirect shar
Slide 149: Translating strategy into action
Translating strategy into action Client Centricity People Management Digital Transformation Implementation of client satisfaction Dress Code Flexibility for Employees Digital channel numbers measurement program (NPS) + 600 thousand individual accounts opened with Abreconta app in 2018 Development of
Slide 150: About 2019
About 2019 16About 2019 16
Slide 151: 2019 Macroeconomic Outlook
2019 Macroeconomic Outlook 2016 2017 2018 ¹ 2019 GDP - World 3.8% 3.7% 3.5% 3.3% 1.3% 2.5% GDP - Brazil 1.1% -3.3% 6.3% 2 3.7% 3.9% Inflation 2.9% 3 Selic 13.7% 7.0% 6.5% 6.5% 12.7% 12.5% 12.3% 4 Unemployment 11.6% 5 Dollar (R$) 3.88 3.90 3.26 3.31 (1) GDP data projected; (2) IPCA; (3) End of períod
Slide 152: 2019 Forecast
2019 Forecast Consolidated Brazil ¹ Total Credit Portfolio ² 8.0% 11.0% 8.0% 11.0% Financial Margin with Clients 9.5% 9.5% 12.5% 12.5% Financial Margin with the Market R$4.6 bn R$5.6 bn R$3.6 bn R$4.6 bn Cost of Credit ³ R$14.5 bn R$12.5 bn R$17.5 bn R$15.5 bn 4 Commissions and Fees and Results from
Slide 153: Appendix
Appendix 19Appendix 19
Slide 154: Business Model
Business Model In R$ billions 2018 2017 Δ Insurance Excess Insurance Excess Insurance Excess Consolidated Consolidated Consolidated Credit Trading Credit Trading Credit Trading & Services Capital & Services Capital & Services Capital Operating Revenues 111.8 56.9 1.6 51.5 1.7 109.3 5 6.1 1.6 4 8.8 2
Slide 155: Results
Results In R$ Billions 4Q18 3Q18 Δ 2018 2017Δ Operating Revenues 28.5 27.9 2.1% 111.8 109.3 2.3% Managerial Financial Margin 17.4 17.4 -0.2% 69.1 68.5 0.8% Financial Margin with Clients 16.2 16.2 0.5% 63.6 62.2 2.2% Financial Margin with the Market 1.1 1.3 -8.5% 5 .5 6.3 -12.7% Commissions and Fees
Slide 156: Digital Transformation
Digital Transformation Use of Digital Channels ¹ % of transactions through digital channels Individuals (in millions) Companies (in millions) 2016 2018 11.1 Credit 16% 19% 1.1 9.6 1.1 1.0 Investments 31% 41% 8.6 Payments 61% 76% Dec-16 Dec-17 Dec-18 Dec-16 Dec-17 Dec-18 Note: Share of digital channe
Slide 157: Learn more about our result
Learn more about our result www.itau.com.br/investor-relations 23Learn more about our result www.itau.com.br/investor-relations 23
Slide 158: Conference Call 2018 Earnings Review
Conference Call 2018 Earnings Review Candido Botelho Bracher President and CEO Milton Maluhy Filho Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Finance Director and Head of Investor Relations 24Conference Call 2018 Earnings Review Candido Botelho Bracher President and CEO Milto
Itau Unibanco Holding — Q4 2018 Earnings Presentation on 6ix