Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q3 2015 Earnings Presentation
23 slides from Itau Unibanco's earnings presentation, Nov 5, 2015
Slide 1: Highlights
Highlights Recurring Net Income R$6.1 billion stable (3Q15/2Q15) 20.7% (9M15/9M14) Recurring ROE (p.a.) 24.0% 80 bps (3Q15/2Q15) 80 bps (9M15/9M14) 12-month ROE was 24.5% Credit Quality 3.3% NPL 90 stable (3Q15/2Q15) 10 bps (3Q15/3Q14) NPL 15-90: 3.0% stable (3Q15/2Q15) 40 bps (3Q15/3Q14) Financial
Slide 2: Non-Recurring Events
Non-Recurring Events Itau In R$ millions 3Q15 Recurring Net Income 6,117 Non-Recurring Events (172) Social Contribution Rate Increase 3,988 Complementary Provision for Loan Losses (2,793) Financial Leasing Accounting Change (520) Contingencies Provision (540) Pension Fund (130) Goodwill Amortization
Slide 3: Recurring ROE / Recurring ROA
Recurring ROE / Recurring ROA Itau 23.9% 22.6% 23.7% 24.7% 24.7% 24.5% 24.8% 24.0% 20.9% 21.7% 22.8% 23.6% 24.0% 24.4% 24.7% 24.5% 2.6% 2.4% 2.7% 2.9% 3.0% 3.0% 3.2% 3.2% 1.7% 1.6% 1.8% 1.9% 1.9% 1.9% 1.9% 1.9% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Recurring Return on Average Equity (trailing 12 m
Slide 4: Results
Results Itau In R$ millions 3Q15 2Q15 change 3Q14 change 9M15 9M14 change Operating Revenues 26,945 25,339 1,607 6.3% 23,305 3,640 15.6% 77,230 66,086 11,144 16.9% Managerial Financial Margin 17,595 16,235 1,360 8.4% 14,369 3,226 22.4% 49,793 40,450 9,343 23.1% Financial Margin with Clients 15,319 1
Slide 5: Credit Portfolio
Credit Portfolio Itau In R$ millions, end of period 3Q15 2Q15 change 4Q14 change 3Q14 change Individuals 186,128 187,318 -0.6% 186,212 0.0% 178,280 4.4% Credit Card Loans 55,051 56,247 -2.1% 59,321 -7.2% 54,265 1.4% Personal Loans 30,256 30,016 0.8% 28,541 6.0% 28,690 5.5% Payroll Loans 45,695 45,51
Slide 6: Credit and Trading and Insurance and Services
Credit and Trading and Insurance and Services Itau In R$ billions 3Q15 Consolidated Credit and Trading Insurance and Services Excess Capital 2Q15 Consolidated Credit and Trading Insurance and Services Excess Capital change Consolidated Credit and Trading Insurance and Services Excess Capital Operati
Slide 7: Financial Margin with Clients Breakdown
Financial Margin with Clients Breakdown Itau Loan Portfolio Mix Change 1 (%) Sep-15 30.7 16.2 4.5 11.5 6.2 11.9 9.3 9.6 Sep-14 29.9 17.7 7.3 12.7 6.6 8.6 8.8 8.5 Sep-13 28.0 20.7 11.0 11.1 6.9 8.7 8.3 5.3 Sep-12 26.4 23.4 15.0 10.2 7.8 7.1 6.7 3.5 Corporate Very Small, Small and Middle Market Vehicl
Slide 8: Financial Margin Annualized average rate
Financial Margin Annualized average rate Itau 12.1% 13.1% 14.0% Ex-foreign exchange rate variation 11.0% 10.6% 10.3% 10.2% 10.5% 10.3% 10.5% 10.6% 10.8% 10.7% 10.9% 10.8% 10.9% 10.1% 10.1% 10.4% 9.4% 10.2% 10.4% 10.5% 7.9% 7.6% 7.3% 7.1% 7.6% 7.6% 7.8% 7.4% 7.1% 7.6% 7.0% 6.7% 7.4% 7.4% 7.1% 6.9% 7.
Slide 9: Financial Margin with the Market
Financial Margin with the Market Itau In R$ millions 2,276 739 614 470 474 881 628 1,083 1,018 829 899 1,871 1,213 1,561 1,383 1,682 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Financial Margin with the Market 1-year moving average of Financial Margin with the Market (ex-Sale of Shares) The quarterly av
Slide 10: Credit Quality: 90-day NPL Ratio
Credit Quality Itau 15 to 90-day NPL Ratio Excluding the effect of the foreign exchange rate variation, the total portfolio NPL ratio would have increased 10 bps and the companies portfolio NPL ratio would have increased 20 bps. 7.9% 7.5% 6.9% 4.8% 4.5% 7.2% 6.3% 6.7% 5.9% 5.4% 4.7% 4.9% 4.6% 4.4% 4
Slide 11: 90-day Coverage Ratio
90-day Coverage Ratio Itau Total 90-day Coverage Ratio In R$ billions 11.0 5.2 5.2 5.2 5.2 6.3 6.3 6.3 214% 174% 176% 176% 181% 193% 200% 187% 35% 37% 37% 37% 45% 45% 42% 69% 43% 41% 46% 50% 52% 56% 49% 46% 97% 99% 93% 94% 96% 99% 96% 100% Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Comp
Slide 12: Credit Quality: Individuals and Companies NPL
Credit Quality Itau Individuals 90-day NPL Ratio 5.8% 5.4% 5.2% 5.0% 4.7% 4.5% 4.6% 5.1% 2.1% 2.1% 2.1% 1.9% 1.7% 1.8% 2.1% 2.3% Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 90-day NPL Ratio 90-day NPL Ratio Excluding Fully Provisioned Credits Companies 90-day NPL Ratio 2.0% 1.9% 1.8% 1.8
Slide 13: Renegotiated Loan Operations
Renegotiated Loan Operations Itau Portfolio 3.1% 3.1% 3.2% 3.5% 4.0% 4.0% 3.6% 3.1% 3.0% 2.9% 2.8% 2.6% 2.7% 2.7% 2.8% 8.1 9.2 10.2 12.0 14.3 14.7 13.7 12.9 12.4 12.1 12.2 11.6 12.5 12.5 13.5 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Por
Slide 14: Credit Quality: Provision for Loan Losses
Credit Quality Itau Provision for Loan Losses In R$ billions 4.2% 4.1% 4.3% 4.5% 4.2% 2.8% 3.1% 3.1% 3.2% 3.0% (4.2) (4.5) (4.7) (4.6) 4.8% 4.8% 4.9% 3.9% 3.8% 4.0% (5.5) (2.8) (3.2) (3.2) (3.3) (3.3) (4.5) (4.4) (4.7) 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Provision for Loan Losses/ Loan Portfolio
Slide 15: Provision for Loan Losses by Segment
Provision for Loan Losses by Segment Itau In R$ millions 4,252 4,465 4,741 4,614 5,515 5,520 5,747 1,445 2,051 1,773 603 614 1,113 1,236 3,649 3,851 3,628 3,378 3,464 3,747 4,302 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Retail Banking Wholesale Banking Itau Unibanco Holding S.A. 16
Slide 16: Commissions and Fees and Result from Insurance
Commissions and Fees and Result from Insurance Itau In R$ millions 3Q15 2Q15 change 3Q14 change 9M15 9M14 change Asset Management 1 760 689 70 10.2% 688 72 10.4% 2,111 1,993 118 5.9% Current Account Services 1,462 1,368 94 6.8% 1,217 245 20.2% 4,235 3,582 653 18.2% Credit Operations and Guarantees P
Slide 17: Non-Interest Expenses
Non-Interest Expenses Itau In R$ millions 3Q15 2Q15 change 3Q14 change 9M15 9M14 change Personnel Expenses(1) (5,011) (4,349) (662) 15.2% (4,352) (659) 15.1% (13,874) (12,459) (1,415) 11.4% Administrative Expenses (4,350) (4,265) (84) 2.0% (4,127) (223) 5.4% (12,543) (11,958) (585) 4.9% Personnel an
Slide 18: Core Capital Ratio (Common Equity Tier I)
Core Capital Ratio (Common Equity Tier I) Itau Changes in the Core Capital Ratio in the 3Q15 13.2% 0.8% -0.5% -0.8% -0.4% 12.3% Common Equity Tier I (CET I) Jun-15 Net Income 3Q15 Dividends Distribution 3Q15 and Other Changes in Stockholders' Equity 1 Increase in Tax Credits RWA and Other Common Equ
Slide 19: Stock Market Performance
Stock Market Performance Itau Market Capitalization (in R$ billions) 175.1 179.6 152.8 150.6 157.0 190.2 156.0 Net Dividend Yield 1 2.4% 2.2% 2.4% 3.0% 2.8% 3.0% 3.8% Price/Earnings 2 13.6 x 11.5 x 9.3 x 9.5 x 9.1 x 8.7 x 6.7 x Average Daily Trading Volume (in R$ millions) 650 559 736 702 659 827 41
Slide 20: Shares Buyback
Shares Buyback Itau Buybacks in 2015 Purpose Compliance with the long-term compensation and incentive programs for employees and management members Capital Management Current Share Repurchase Program Authorizes the acquisition of up to: 50 million non-voting shares (13.3 million already acquired) 11
Slide 21: 2015 Outlook
2015 Outlook Itau Our expectations for 2015 (reviewed in the 1Q15) were kept unchanged. Total Loan Portfolio1 Growth of 3.0% to 7.0% Managerial Financial Margin 2 Growth of 14.5% to 17.5% Provision for Loan Losses Net of Recovery of Loans Between R$15 billion and R$18 billion Service Fees and Result
Slide 22: 3rd quarter 2015 - Earnings Review Conference Call
Itau 3rd quarter 2015 - 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 23: Quarter 2015 - Earnings Review
34 quarter 2015 - 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 5 Bow Jones Does a eC Sustainability Indices.
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