Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q3 2016 Earnings Presentation
28 slides from Itau Unibanco's earnings presentation, Nov 1, 2016
Slide 1: Announcement to the Market: Conference Call of the 3rd Quarter 2016 Result
ITAÚ UNIBANCO HOLDING S.A. CNPJ 60.872.504/0001-23 A Publicly Listed Company ANNOUNCEMENT TO THE MARKET Conference Call of the 3 rd quarter 2016 Result In accordance with the invitation extended to the market participants and regulators and published in the investor relations website of Itaú Unibanc
Slide 2: 3rd quarter 2016 – Earnings Review Conference Call
3 rd 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 3: Pro Forma Information
Pro Forma Information The merger between Itaú Chile and CorpBanca was concluded on April, 1 st . 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 the new bank. In order t
Slide 4: Highlights
Highlights Recurring Net Income R$5.6 Consolidated billion + 0.4% (3Q16/2Q16) - 8.9% (3Q16/3Q15) R$5.3 Brazil billion + 2.4% (3Q16/2Q16) - 7.3% (3Q16/3Q15) Recurring ROE (p.a.) Consolidated 19.9% - 70 bps (3Q16/2Q16) - 420 bps (3Q16/3Q15) Brazil 20.8% - 30 bps (3Q16/2Q16) - 330 bps (3Q16/3Q15) Credi
Slide 5: Recurring ROE / Recurring ROA
Recurring ROE / Recurring ROA Consolidated ROE / ROA 24.7% 24.9% 24.5% 24.8% 24.1% 22.1% 19.6% 20.6% 19.9% 1.8% 1.8% 1.7% 1.8% 1.8% 1.6% 1.4% 1.6% 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Annualized Recurring Return on Average Equity (quarterly) Annualized Recurring Return on Average Assets (quartely
Slide 6: Results
Results In R$ millions 3Q16 2Q16 change 3Q15 change 9M16 9M15 change 1,119 4.2% 28,267 (669) 202 0.2% Operating Revenues 27,597 26,478 -2.4% 80,960 80,758 Managerial Financial Margin 17,706 16,588 1,118 6.7% 18,734 (1,028) -5.5% 51,706 52,771 (1,065) -2.0% Financial Margin with Clients 15,958 15,068
Slide 7: Results – Brazil and Latin America
Results – Brazil and Latin America 3Q16 2Q16 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 27,597 25,416 2,181 26,478 23,972 2,507 4.2% 6.0% -13.0% Managerial Fi
Slide 8: Credit and Trading & Insurance and Services
Credit and Trading & Insurance and Services 3Q16 2Q16 change Consolidated Credit and Insurance Excess Consolidated Credit and Insurance Excess Consolidated Credit and Insurance Excess In R$ billions Trading and Services Capital Trading and Services Capital Trading and Services Capital Operating Reve
Slide 9: Credit Portfolio
Credit Portfolio Consolidated In R$ millions, end of period Individuals Credit Card Loans Personal Loans Payroll Loans Vehicle Loans Mortgage Loans Companies Corporate Loans Very Small, Small and Middle Market Loans Latin America Total with Endorsements and Sureties Corporate - Private Securities To
Slide 10: Loan Portfolio Mix
Loan Portfolio Mix Change 1 (%) Itaú Unibanco’s share in Latin America businesses Consolidated Sep-16 22.6 11.6 3.2 11.3 5.5 9.7 9.2 26.8 12.5 Sep-16 30.9 15.9 4.4 15.4 7.6 13.3 12.6 Sep-15 35.4 16.4 5.3 13.5 7.3 12.5 12.3 Brazil 2 Sep-14 33.5 17.5 8.2 14.2 7.3 10.6 11.3 Sep-13 32.3 20.5 12.2 12.3 7
Slide 11: Financial Margin
Financial Margin | Annualized average rate 14.0% 14.1% 14.1% 14.1% 14.1% 13.1% 12.1% 10.8% 11.1% 10.8% 10.9% 11.0% 11.1% 10.9% 10.6% 10.4% 10.9% 10.9% 10.8% 10.7% 10.8% 10.5% 9.8% 1 10.3% 10.5% 10.0% 10.2% 10.4% 9.9% 10.2% 9.6% 2 7.6% 7.8% 7.4% 7.4% 7.5% 7.0% 6.8% 6.8% 7.6% 6.1% 6.3% 7.1% 7.1% 7.1%
Slide 12: Financial Margin with the Market
Financial Margin with the Market 1,682 1,744 1,711 1,701 1,213 1,383 2,276 899 1,871 829 1,561 1,737 1,520 1,269 1,083 1,018 2,069 1,907 1,365 1,615 1,228 974 1,068 1,152 207 122 293 109 (36) 196 117 (50) 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Financial Margin with the Market - Brazil 1 Financial M
Slide 13: Credit Quality: 90-day NPL Ratio
Credit Quality 90-day NPL Ratio - Consolidated - % 5.6 5.2 4.9 4.6 4.5 4.8 4.3 4.4 4.0 4.8 3.8 3.7 3.6 3.4 3.3 3.6 3.8 3.9 4.4 * 4.4 4.2 3.9 3.9 3.5 3.3 3.2 3.1 3.2 3.5 3.6 3.6* 3.0 2.9 2.8 3.0 3.0 0.9 0.8 0.8 0.7 0.7 0.7 0.8 0.7 0.9 1.1 1.1 1.1 1.2 1.1 1.1 1.1 1.2 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13
Slide 14: Credit Quality: 90-day NPL Ratio by Segment
Credit Quality 15 to 90-day NPL Ratio - Consolidated - % 7.5 6.6 4.4 3.8 7.0 6.2 5.6 5.1 4.9 4.3 4.8 4.3 4.2 4.2 4.2 3.9 3.8 3.9 4.2 4.3 4.2 4.2 4.2 3.8 3.4 4.1 3.6 3.2 3.2 3.1 3.1 3.2 2.9 2.6 3.6 3.6 3.4 2.9 3.0 3.1 3.0 3.1 3.2 2.8 2.6 2.7 2.6 1.9 1.2 1.4 0.9 3.6 3.8 3.3 3.2 3.2 2.9 2.3 1.5 2.1 2.1
Slide 15: Credit Quality: NPL Ratio Excluding Fully Provisioned Credits
Credit Quality 90-day NPL Ratio and 90-day NPL Ratio Excluding Fully Provisioned Credits – Brazil 1 (%) 5.2 4.9 4.8 4.9 5.4 5.8 6.0 2.0 1.8 1.9 2.2 2.4 2.4 2.3 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Individuals Individuals (ex-Fully Provisioned Credits) 16 5.9 5.7 2.3 2.2 Jun-16 Sep-16 3.0
Slide 16: Renegotiated Loan Operations
Renegotiated Loan Operations Total Renegotiated Portfolio | Breakdown by Days Overdue 1 (in R$ billion) Brazil 2 Days overdue: (Data prior to June/16 do not include CorpBanca) 22.7 23.8 measured at the moment of 20.0 21.9 23.0 22.7 24.1 25.3 renegotiation 17.4 16.6 19.4 0.1 0.2 0.4 1.4 1.5 Latin Ame
Slide 17: Provision for Loan Losses by Segment
Provision for Loan Losses by Segment In R$ million 4,865 5,714 4,828 358 323 338 1,892 915 1,112 3,628 3,378 3,464 3Q14 4Q14 1Q15 Retail Banking - Brazil 5,768 5,997 6,366 383 392 399 1,362 1,629 1,295 3,747 4,302 4,621 2Q15 3Q15 4Q15 Wholesale Banking - Brazil 7,824 772 6,337 6,169 2,728 396 412 1,
Slide 18: Coverage Ratio (90-day NPL)
Coverage Ratio (90-day NPL) 296% 367% 369% 256% 402% 462% 458% 494% 502% 204% 182% 182% 181% 164% 201% 194% 199% 188% 192% 187% 183% 191% 195% 174% 178% 181% 164% 166% 169% 216% 212% 208% 206% 200% 195% 185% 172% 172% 164% 232% 345% 228% 215% 215% 210% 214% 209% 213% 204% 206% 202% 200% 160% 159% 15
Slide 19: Allowance for Loan Losses by Type of Risk – Consolidated
Allowance for Loan Losses by Type of Risk – Consolidated Allocation of Allowance for Loan Losses by Type of Risk In R$ millions Regulatory Breakdown CorpBanca 38,470 39,103 36,035 1,957 16,353 16,596 Potential 15,080 Expected and/or Potential Loss Related to expected loss in Retail segment and poten
Slide 20: Provision for Loan Losses and NPL Creation by Segment
Provision for Loan Losses and NPL Creation by Segment Retail Banking - Brazil 105% 4.4 4.2 2Q16 Wholesale Banking - Brazil 146% 1.5 1.1 In R$ billions 97% 3.9 4.1 3Q16 In R$ billions * 256% 79% 1.8 2.3 Latin America ex-Brazil 2Q16 499% 3Q16 In R$ billions 105% 0.4 0.1 2Q16 Total 119% 6.3 5.3 2Q16 Pr
Slide 21: Commissions & Fees and Result from Insurance
Commissions & Fees and Result from Insurance In R$ millions 3Q16 2Q16 change 3Q15 change 9M16 9M15 change 34 4.7% 707 68 229 11.6% Asset Management ¹ 776 741 9.6% 2,200 1,972 Current Account Services 1,589 1,596 (6) -0.4% 1,396 193 13.8% 4,730 4,058 671 16.5% Credit Operations and Guarantees Provide
Slide 22: Non-Interest Expenses
Non-Interest Expenses In R$ millions 3Q16 2Q16 change 3Q15 change 9M16 9M15 change (4,609) (1,258) 27.3% (4,628) (1,239) (12,811) (2,023) 15.8% Personnel Expenses (1) (5,867) 26.8% (14,834) Administrative Expenses (3,867) (3,993) 126 -3.2% (4,026) 159 -3.9% (11,554) (11,633) 79 -0.7% Operating Expen
Slide 23: Efficiency Ratio and Risk-Adjusted Efficiency Ratio
Efficiency Ratio and Risk-Adjusted Efficiency Ratio Efficiency Ratio - Consolidated 68.8 67.2 67.8 45.3 46.4 45.5 46.7 68.6 48.6 69.2 65.4 44.9 2Q16 3Q16 Efficiency Ratio (%) -Adjusted Efficiency Ratio (%) Efficiency Ratio without extraordinary items of non-interest expenses. Efficiency Ratio - Braz
Slide 24: Core Capital Ratio (Common Equity Tier I)
Core Capital Ratio (Common Equity Tier I) Changes in the Core Capital Ratio 14.8% 0.7% -0.1% 0.3% -0.1% 0.1% 15.7% Common Equity 3Q16 Net Income Dividends and Credit Risk-weighted Market Risk-weighted Operational Risk- Common Equity Tier I (CET I) Jun-16 other changes in Assets Assets weighted Asset
Slide 25: 2016 Forecast Consolidated
2016 Forecast Consolidated Total Credit Portfolio 2 From -10.5% to -5.5% Financial Margin with Clients From -2.5% to 0.5% Provision for Loan Losses Net of Recovery of Loans Between R$23.0 bn and R$26.0 bn Commissions and Fees and Result from Insurance From 4.0% to 7.0% Operations3 Non-Interest Expen
Slide 26: Acquisitions: Citibank's Retail Business in Brazil
Acquisitions Citibank’s Retail Business in Brazil ▪ The retail business (for individuals) carried out by Citibank in Brazil includes approximately: ▪ 315,000 checking accounts holders ▪ 71 branches ▪ R$35 billion in deposits and assets under management ▪ 1.1 million credit cards ▪ R$ 6 billion loan
Slide 27: 2016 APIMEC Meeting in São Paulo
2016 APIMEC Meeting in São Paulo Thursday, November 17th at 2:00 p.m. Hotel Unique – Espaço de Eventos Av. Brigadeiro Luiz Antônio, 4700 - Jardim Paulista – São Paulo – SP Valet parking available The presentation will be transmitted via website www.itau.com.br/investor-relations, including simultane
Slide 28: 3rd quarter 2016 – Earnings Review Conference Call
3 rd 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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