Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3

Itau Unibanco — Q1 2018 Earnings Presentation

23 slides from Itau Unibanco's earnings presentation, May 4, 2018

  1. Slide 1: Conference Call 1st quarter 2018 - Earnings Review

    Conference Call 1st quarter 2018 - Earnings Review Candido Botelho Bracher President and CEO Caio Ibrahim David Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Finance Director and Investor Relations Officer

  2. Slide 2: Managerial Income Statement

    Managerial Income Statement As from the first quarter of 2018, we have started to present Citibank’s retail operations in Brazil line by line in our managerial income statement. For comparison purposes, we reprocessed the fourth quarter of 2017 to also present Citibank’s operations in Brazil in all

  3. Slide 3: Highlights

    Highlights RECURRING NET INCOME R$6.4 Consolidated + 2.2% (1Q18/4Q17) billion + 3.9% (1Q18/1Q17) Brazil R$6.2 + 1.5% (1Q18/4Q17) billion + 3.5% (1Q18/1Q17) RECURRING ROE (p.a.) Consolidated 22.2% + 30 bps (1Q18/4Q17) + 20 bps (1Q18/1Q17) Brazil 23.7% + 20 bps (1Q18/4Q17) + 20 bps (1Q18/1Q17) CREDIT

  4. Slide 4: Results

    Results In R$ billions 1Q18 4Q17 1Q17 Operating Revenues 27.4 27.8 -1.5% 27.3 0.6% Managerial Financial Margin 17.0 16.9 0.3% 17.4 -2.4% Financial Margin with Clients 15.3 15.5 -1.6% 15.5 -1.8% Financial Margin with the Market 1.7 1.4 20.9% 1.9 -7.0% Commissions and Fees 8.5 8.8 -2.8% 7.8 8.7% Resul

  5. Slide 5: Recurring Net Income and ROE

    Recurring Net Income and ROE In R$ billions 19.9% 20.7% 22.0% 21.5% 21.6% 21.9% 22.2% 16.0% 16.0% 15.5% 14.5% 14.0% 14.0% 13.5% 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 5.6 5.8 6.2 6.2 6.3 6.3 6.4 Recurring Net Income Annualized Recurring Return on Average Equity (quarterly) Cost of Equity Itaú Unibanco H

  6. Slide 6: Business Model

    Business Model In R$ billions 1Q18 1Q17 Credit Trading Insurance and Services Excess Capital Credit Trading Insurance and Services Excess Capital Consolidated Consolidated Credit Trading Consolidated Insurance and Services Excess Capital Operating Revenues 27.4 13.9 0.6 12.3 0.6 27.3 14.0 0.6 12.0 0

  7. Slide 7: Credit Portfolio, end of period

    Credit Portfolio In R$ billions, end of period 1Q18 4Q17 1Q17 Individuals 1 91.4 191.5 -0.1% 1 80.5 6.0% Credit Card Loans 65.0 6 6.9 -2.9% 5 6.2 15.6% Personal Loans 27.4 26.4 3.9% 2 6.3 4.2% Payroll Loans 4 4.7 44.4 0.6% 4 4.9 -0.4% Vehicle Loans 14.3 14.1 1.7% 1 4.8 -3.1% Mortgage Loans 40.0 39.7

  8. Slide 8: Credit Origination and Private Securities Issuance | Brazil

    Credit1 Origination and Private Securities Issuance | Brazil Base 100 = 1Q14 Total Credit2 – Brazil YoY (%) 0% 100 100 1Q14 1Q15 Credit2 – Very Small, Small and Middle Market -35% 7% 65 69 1Q16 1Q17 Credit2 – Corporate 17% 81 1Q18 Credit2 - Individuals YoY (%) 11% -32% 1% 31% 100 111 99 76 76 1Q14 1

  9. Slide 9: Net Interest Margin and Financial Margin with Clients

    Net Interest Margin and Financial Margin with Clients 12.5% 13.0% 13.3% 12.6% 12.6% 12.3% 12.0% 12.0% 7.2% 8.4% 8.2% 8.2% 8.9% 9.2% 8.9% 9.0% 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 10.3% 10.5% 10.8% 10.3% 10.3% 10.1% 9.9% 9.9% 6.1% 6.8% 6.6% 6.7% 7.3% 7.4% 7.1% 7.4% 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q

  10. Slide 10: Financial Margin with the Market

    Financial Margin with the Market In R$ billions 0.1 0.1 0.3 0.3 0.2 0.2 0.3 0.2 0.2 0.3 1.2 1.6 1.2 1.5 1.8 1.7 1.3 1.1 1.2 1.3 1.3 0.1 1.7 1.5 1.7 2.0 1.9 1.6 1.4 1.4 1.7 1.7 1.7 1.7 1.6 1.7 1.8 1.8 1.7 1.6 1.5 - 0 .5 1 .0 1 .5 2 .0 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Sale of B3 Share

  11. Slide 11: Credit Quality

    Credit Quality 5.1 3.8 4.2 3.9 4.2 3.6 4.0 3.7 3.5 3.3 3.5 0.6 0.8 1.2 0.9 1.5 0.7 2.0 1.0 1.0 1.8 0.8 2.9 3.1 3.6 3.9 4.2 3.5 3.7 2.8 3.0 2.5 2.4 Mar-14 Dec-14 Mar-15 Dec-15 Mar-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Individuals Corporate Very Small, Small and Middle Market Companies 5.8 4.9

  12. Slide 12: NPL Creation

    NPL Creation In R$ billions 6.0 5.3 6.8 5.3 4.9 4.4 4.4 4.4 5.0 4.3 4.2 4.1 3.8 3.5 3.8 3.6 3.3 3.2 1.5 1.1 2.3 0.8 1.0 0.2 0.2 0.5 1.1 0.3 0.1 0.4 0.8 0.5 0.4 0.5 0.5 0.7 4.5 0.6 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 * * Total Retail Banking - Brazil Wholesale Banking - Brazil Latin America

  13. Slide 13: Cost of Credit

    5.1 7.2 6.3 5.6 6.4 5.3 4.5 4.0 4.3 3.8 3.0% 4.4% 4.1% 3.7% 4.2% 3.6% 3.0% 2.7% 2.9% 2.5% 3Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Custo do Crédito Cost of Credit / Total Risk (*) – Annualized 3.4 3.5 3.7 4.3 4.6 4.3 4.4 3.9 4.0 3.5 3.7 3.2 3.5 3.2 1.1 1.9 1.6 1.3 1.4 2.7 1.5 1.8 1.1 1.4 0.

  14. Slide 14: Coverage Ratio (90-day NPL)

    Coverage Ratio (90-day NPL) 210% 215% 204% 222% 231% 243% 246% 245% 236% 102% 104% 104% 104% 104% 101% 100% 100% 96% 244% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Total Total (Expanded¹) 2 Coverage Ratio and Expanded Coverage Ratio Coverage Ratio Without CorpBanca With Itaú Cor

  15. Slide 15: Commissions & Fees and Result from Insurance

    Commissions & Fees and Result from Insurance In R$ billions 1Q18 4Q17 1Q17 Credit Cards 3.1 3 .3 -6.2% 2 .9 6.5% Current Account Services 1.8 1 .8 3.1% 1.7 10.1% Asset Management¹ 1 .0 1 .0 6.5% 0.9 18.8% Credit Operations and Guarantees Provided 0.8 0 .9 -4.2% 0 .8 0.8% Collection Services 0.5 0 .5

  16. Slide 16: Non-Interest Expenses

    Non-Interest Expenses In R$ billions 1Q18 4Q17 1Q17 Personnel Expenses (4.9) ( 5.4) -8.7% ( 4.8) 3.1% Administrative Expenses (3.7) ( 4.1) -10.2% ( 3.8) -2.2% Personnel and Administrative Expenses ( 8.6) ( 9.5) -9.3% (8.6) 0.7% Operating Expenses (1.1) ( 1.2) -10.5% ( 1.1) 3.6% Other Tax Expenses (1

  17. Slide 17: Capital Ratios

    Capital Ratios Full application of Basel III rules │March 31, 2018 15.5% 12.9% 13.6% 13.6% 0.6% -0.8% -1.8% 0.6% 0.7% 0.6% 0.3% 0.9% 16.1% 13.5% 14.2% 14.5% (1) Tier I Capital Dec-17 with fully loaded Basel III Impact of the investment in XP Additional dividends and interest on own capital reserved

  18. Slide 18: Distribution of Added Value in the 1Q18

    Distribution of Added Value in the 1Q18 24% 14% 28% 32% 2% TAXES, FEES AND CONTRIBUTIONS R$5.6 billion RENTAL PAYMENTS R$0.4 billion REINVESTMENTS R$4.2 billion EMPLOYEES R$4.9 billion 10% Free Float 1% Non- Controllers 3% Controllers SHAREHOLDERS R$17.4 R$2.4 billion billion approximately 120 thous

  19. Slide 19: Appendix

    Appendix 19

  20. Slide 20: Results – Brazil and Latin America

    Results – Brazil and Latin America 1Q18 4Q17 In R$ billions Consolidated Brazil 1 Latin America (ex-Brazil) 2 Consolidated Brazil 1 Latin America (ex-Brazil) 2 Consolidated Brazil 1 Latin America (ex-Brazil) 2 Operating Revenues 27.4 24.9 2 .5 27.8 25.5 2 .4 -1.5% -2.1% 4.6% Managerial Financial Mar

  21. Slide 21: Total Allowance by Type of Risk – Consolidated

    Total Allowance by Type of Risk – Consolidated In R$ billions Allocation of Total Allowance(*) by Type of Risk - Consolidated Regulatory Breakdown Overdue Aggravated Potential³ 11.2 10.4 10.6 9.3 10.0 9.9 17.1 16.9 16.1 37.6 37.3 36.7 Mar-17 Dec-17 Mar-18 Expected and/or Potential Loss Related to ex

  22. Slide 22: 2018 Forecast

    2018 Forecast We kept unchanged the ranges of our 2018 forecast. 2018 forecast considers Citibank’s retail operations. Therefore, 2017 income statement basis for 2018 forecast must consider Citibank’s figures in all lines of the income statement and also in the credit portfolio.* Consolidated Total

  23. Slide 23: Conference Call 1st quarter 2018 - Earnings Review

    Conference Call 1st quarter 2018 - Earnings Review Candido Botelho Bracher President and CEO Caio Ibrahim David Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Finance Director and Investor Relations Officer

Itau Unibanco Holding — Q1 2018 Earnings Presentation on 6ix