Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q3 2018 Earnings Presentation
22 slides from Itau Unibanco's earnings presentation, Oct 31, 2018
Slide 1: Conference Call 3rd quarter 2018 - Earnings Review
Conference Call 3rd 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 Head of Investor Relations Milton Maluhy Filho ItauCorpBanca-CEO
Slide 2: Highlights
Highlights Recurring Net Income Consolidated R$6.5 bn +1.1% (3Q18/2Q18) R$19.3 bn + 3.5% (9M18/9M17) Brazil R$6.1 bn + 0.2% (3Q18/2Q18) R$18.4 bn + 2.4% (9M18/9M17) Recurring ROE (p.a.) Consolidated 21.3% -30 bps (3Q18/2Q18) 21.7% stable (9M18/9M17) Brazil 22.4% -20 bps (3Q18/2Q18) 22.9% -10 bps (9M
Slide 3: Results
Results In R$billions 3Q18 2Q18 9M18 9M17 d| Operating Revenues 27.9 28.0 -0.4% 83.3 81.5 2.3% Managerial Financial Margin 17.4 17.3 0.7% 51.7 51.6 0.3% Financial Margin with Clients 16.2 16.0 1.2% 47.4 46.7 1.4% Financial Margin with the Market 1.3 1.3 -6.4% 4.3 4.8 -10.6% Commissions and Fees 8.6
Slide 4: Recurring Net Income and Value Creation
Recurring Net Income and Value Creation Itaú Unibanco Holding S.A.
Slide 5: Digital Transformation
Digital Transformation Use of Digital Channels number of current account holders (in millions) New Accounts individuals accounts (in thousands) Share of Transactions through digital channels 9M16 9M18 Credit 16% 18% Investments 30% 40% Payments 60% 74% Note: Share of digital channels in the total vo
Slide 6: Business Model
Business Model In R$billions 9M18 9M17 D Insurance Excess Capital Insurance Excess Capital Insurance Excess Capital Consolidated Credit Trading and Services Consolidated Credit Trading and Services Consolidated Credit Trading and Services Operating Revenues 83.3 42.9 1.4 37.7 1.3 81.5 42.1 1.4 35.9
Slide 7: Credit Origination and Private Securities Issuance | Brazil
Credit1 Origination and Private Securities Issuance | Brazil Base 100 = 3Q17 and 9M17 Total Credit2 - Brazil Credit 2 - Individuals - Credit2 - Very Small, Small and Middle Market Private Securities Issuance3 Note: Do not consider origination of Credit Card, Overdraft, Debt Renegotiation and other r
Slide 8: Credit Portfolio
Credit Portfolio In R$billions, end of period 3Q18 2Q18 3Q17 Individuals 200.0 195.0 2.5% 179.9 11.2% Credit Card Loans 68.7 66.1 3.9% 57.2 20.1% Personal Loans 28.9 28.3 1.9% 26.0 11.3% Payroll Loans 46.0 45.4 1.2% 44.6 3.1% Vehicle Loans 15.2 14.7 3.9% 13.9 9.7% Mortgage Loans 41.2 40.5 1.8% 38.3
Slide 9: Net Interest Margin and Financial Margin with Clients
Net Interest Margin and Financial Margin with Clients Annualized Average Rate Consolidated Brazil Change in Financial Margin with Clients 1 Change in the composition of assets with credit risk between periods. 2 Considers credit and private securities portfolio net of overdue balance over 60 days. 3
Slide 10: Financial Margin with the Market
Financial Margin with the Market 1 Includes unitsabroadex-LatinAmerica; 2ExcludesBrazil; 3 The Latin America pro forma Financial Margin with the Market from 2015 and 1Q16 does not consider CorpBanca´s information, which is classified in financial margin with clients. 10
Slide 11: Credit Quality
Credit Quality 90-day NPL Ratio - Brazil1 -% 15 to 90-day NPL Ratio - Consolidated -% 15 to 90-day NPL Ratio - Brazil1 -% Note: Total and Latin America 15 to 90-day NPL Ratios prior to June 2016 do not include CorpBanca. 1 Includes units abroad ex-Latin America. 2 Excludes Brazil. Itaú Unibanco Hold
Slide 12: Provision for Loan Losses and Cost of Credit
Provision for Loan Losses and Cost of Credit Provision for Loan Losses by Segment In R$billions (*) Average balance of the loan portfolio, considering the last two quarters. 1 Excluding the provision reversal of a specific client from the wholesale banking segment the ratio Cost of Credit (Provision
Slide 13: Coverage Ratio and Expanded Coverage Ratio
Coverage Ratio(90-day NPL) Coverage Ratio and Expanded Coverage Ratio Coverage Ratio ¹Expanded Coverage Ratio is calculated from the division of the total allowance balance* by the sum of 90 days over due operations and of renegotiated loan portfolio excluding the double counting of 90 days overdue
Slide 14: Commissions & Fees and Result from Insurance
Commissions & Fees and Result from Insurance In R$billions 3Q18 2Q18 D 9M18 9M17 D Personnel Expenses (5.3) (5.1) 4.6% (15.3) (14.8) 3.7% Administrative Expenses (4.0) (4.0) 0.8% (11.6) (11.7) -0.7% Personnel and Administrative Expenses (9.3) (9.0) 3.0% (27.0) (26.5) 1.8% Operating Expenses (1.2) (1
Slide 15: Non-Interest Expenses
Non-Interest Expenses In R$billions 3Q18 2Q18 D 9M18 9M17 D Credit Cards 3.2 3.0 3.9% 9.4 9.1 3.2% Current Account Services 1.8 1.8 0.5% 5.5 5.0 8.7% Asset Management1 1.1 1.1 -3.4% 3.2 2.6 21.8% Credit Operations and Guarantees Provided 0.8 0.8 -3.5% 2.5 2.5 0.7% Collection Services 0.5 0.5 -2.3% 1
Slide 16: Capital Ratios
Capital Ratios Full application of Basel III rules | September 30, 2018 (1) Includes deductions of Goodwill, Intangible Assets, Tax Credits, Equity Investments in Financial Institutions, Insurance and similar companies, and the increase of the multiplier of the amounts of market risk, operational ri
Slide 17: XP Investimentos
XP Investimentos Date 05/11/2017 Signature of the agreement 08/31/2018 Financial settlement Our Shares 49.9% Transaction Value R$6,650 million Itaú Unibanco Holding S.A.
Slide 18: Appendix
Appendix
Slide 19: 2018 Forecast
2018 Forecast We kept unchanged the ranges of our 2018 forecast. 2018 forecast considers Citibank's retail operations. Therefore, 2017 income statement basis for 2018 forecast must consider Citibank's figures in all lines of the income statement and also in the credit portfolio.2 1 Consolidated 1 Br
Slide 20: Results - Brazil and Latin America
Results - Brazil and Latin America In R$billions 3Q18 2Q18 D Consolidated Brazil1 Latin America (ex-Brazil)2 Consolidated Brazil1 Latin America (ex-Brazil)2 Consolidated Brazil1 Latin America (ex-Brazil)2 Operating Revenues 27.9 25.1 2.8 28.0 25.1 3.0 -0.4% 0.0% -3.7% Managerial Financial Margin 17.
Slide 21: Total Allowance by Type of Risk - Consolidated
Total Allowance by Type of Risk –Consolidated Allocation of Total Allowance(*)by Type of Risk -Consolidated Regulatory Breakdown Expected and/or Potential LossRelated to expected loss in Retail segment and potential loss in Wholesale segment Renegotiation and overdue loansRelated to aggravated risk
Slide 22: Conference Call 3rd quarter 2018 - Earnings Review
Conference Call 3rd 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 Head of Investor Relations Milton Maluhy Filho Itaú CorpBanca-CEO
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