Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Apimec SP 2019 Public Meeting
108 slides from Itau Unibanco's conference presentation, Sep 5, 2019
Slide 1: Announcement to the Market: Apimec SP 2019 Public Meeting
Exhibit 99.1 ITAÚ UNIBANCO HOLDING S.A. CNPJ 60.872.504/0001-23 Companhia Aberta Announcement to the Market Apimec SP 2019 Public Meeting Itaú Unibanco Holding is pleased to inform that today, September 03, 2019, is holding an Apimec SP Public Meeting at the Hotel Unique on the Bank’s results and st
Slide 2: Ciclo Apimec 2019 Agenda
Ciclo Apimec 2019 Agenda 24 10 years of Itaú Unibanco consecutive Pedro Moreira Salles – Co-chairman of the Board of Directors years 01 Roberto Setubal– Co-chairman of the Board of Directors Ricardo Tadeu Martins – President of Apimec Nacional Itaú Unibanco’s Results and structural changes in the Br
Slide 3: Milton Maluhy, Executive Vice President, CFO & CRO
Milton Maluhy Executive Vice President, CFO & CROMilton Maluhy Executive Vice President, CFO & CRO
Slide 4: Structural changes in the Brazilian Financial System
Structural changes in the Brazilian Financial System 1 Itaú Unibanco is ready 2 Shareholder value creation 3 02Structural changes in the Brazilian Financial System 1 Itaú Unibanco is ready 2 Shareholder value creation 3 02
Slide 5: Structural changes in the Brazilian Financial System
Structural changes in the Brazilian Financial System 1 Itaú Unibanco is ready 2 Shareholder value creation 3 03Structural changes in the Brazilian Financial System 1 Itaú Unibanco is ready 2 Shareholder value creation 3 03
Slide 6: The Brazilian Financial System undergoes a structural change
The Brazilian Financial System undergoes a structural change S e l i c r a t e - % p e r y e a r I n f l a t i o n u n d e r c o n t r o l ( I P C A ) - % 12% 10.7% 14% 10% 12% 8% 10% 6% 6.3% 8% 3.6% 4% 3.7% History History 3.6% 6% 2% 5.0% Itaú Projection Itaú Projection 2.9% 0% 4% 2015 2016 2017 20
Slide 7: Credit and insurance in Brazil: growth potential
Credit and insurance in Brazil: growth potential 148.0 United States¹ Total Loans (In R$ billion) Loans/GDP | Brazil (%) South Africa¹ 74.9 Chile¹ 89.5 52.6 51.3 50.7 157% 50.0 48.1 44.7 47.2 47.0 3,296 44.3 42.6 1,283 40.2 jun/09 jun/19 Source: Central Bank of Brazil. Jun-09 Jun-10 Jun-11 Jun-12 Ju
Slide 8: Itaú Unibanco is ready
Structural changes in the Brazilian Financial System 1 Itaú Unibanco is ready 2 Shareholder value creation 3 06Structural changes in the Brazilian Financial System 1 Itaú Unibanco is ready 2 Shareholder value creation 3 06
Slide 9: We are ready...
We are ready... Universal Cost Technological Capitalization Business management capacity Risk appetite and liquidity Model discipline Focus on value creation Continuous search for Continuous Acceptable exposure Prudence and and broad customer efficiency investment levels soundness base 07We are read
Slide 10: Business Model: A universal bank
Business Model Universal A universal bank Business Model 1st Half of 2019 Recurring Net Income Value creation Credit 4% -11% 30% Insurance & 42% Services R$6.1 R$13.9 4% 52% Billion Billion Trading 77% 2% Excess Capital 08Business Model Universal A universal bank Business Model 1st Half of 2019 Recu
Slide 11: A Universal Bank
A Universal Bank Universal all products and services for multiple customers Business Model Retail Uniclass Ultra Large Partnerships¹ Open 55 Plataforms Corporate million (Investments & Insurance) customers Personnalité Middle- Very small Market Private and small Bank companies 09 (1) Examples of par
Slide 12: A Universal Bank
A Universal Bank Universal all products and services for multiple customers Business Model BROKER ITAÚ SECURITIES SERVICES R$ 41 billion in volume Best sub custodian in Brazil, Paraguay and Uruguay in June/19 traded in 2018. R$ 1,405 billion in local custody services. R$ 177 billion in international
Slide 13: Universal Business Model: loan portfolio growth
Universal Business Model Loan portfolio growth, with increase in origination R$ Billion Change in the period: Credit 19% 1 222 Individuals origination 2Q19 vs 2Q18 187 195 183 179 14% Change in the period : 11% 41% Very small, small and 78 70 66 middle-market companies 62 60 Jun/15 Jun/16 Jun/17 Jun
Slide 14: We are ready...
We are ready... Universal Cost Technological Capitalization Business management capacity Risk appetite and liquidity Model discipline Focus on value creation Continuous search for Continuous Acceptable exposure Prudence and and broad customer efficiency investment levels soundness base 12We are read
Slide 15: Cost control and efficiency
Cost control and efficiency Cost management discipline Our administrative costs in Brazil Risk-Adjusted Efficiency Ratio Annual average variation Basis 100 Collective Labor Inflation Costs: Agreement (CLA): (IPCA): 108 4.7% 7.1% 5.8% 102 101 10 100 0 99 98 94 9% 8% 97 8% 8% 89 89 6% 86 85 2 5% 5% 83
Slide 16: Cost management discipline
There is no break. We are constantly Cost management seeking cost reduction opportunities discipline Employees Internal Initiatives 1,468 Voluntary Severance Program 99,914 98,446 Process reviews Costs optimization Management engagement Jun/18 Jun/19 Internal engagement campaigns Branches and CSBs “
Slide 17: We are ready...
We are ready... Universal Cost Technological Capitalization Business management capacity Risk appetite and liquidity Model discipline Focus on value creation Continuous search for Continuous Acceptable exposure Prudence and and broad customer efficiency investment levels soundness base 15We are read
Slide 18: Continuous investment in technology
Continuous investiment in technology Technological capacity Basis 100 160 130 18% 122 Inflation (IPCA) accumulated in 100 the period 111 106 101 100 2016 2017 2018 2019 (E) Technology investments Non-interest Expenses 16Continuous investiment in technology Technological capacity Basis 100 160 130 18
Slide 19: We are ready...
We are ready... Universal Cost Technological Capitalization Business management capacity Risk appetite and liquidity Model discipline Focus on value creation Continuous search for Continuous Acceptable exposure Prudence and and broad customer efficiency investment levels soundness base 17We are read
Slide 20: Risk appetite: Retail Banking
Risk appetite - No change Risk appetite Retail Banking Management strategy Effect on the portfolio Strategy results NPL reduction in the Credit management tools Change in the mix of segment (availability/unavailability) individuals portfolio in Brazil 9.0% 7.3% Statistical models NPL 90 days 22.2% H
Slide 21: Risk appetite: Wholesale Banking
Risk appetite - No change Risk appetite Wholesale Banking Management strategy Effect on the portfolio Joint decisions based on individual rating, Exposure reduction in the sector visions and portfolio management largest debtors Business evolution - Companies Dec/12 Jun/19 2014|2015 2015|2016 % of to
Slide 22: We are ready...
We are ready... Universal Cost Technological Capitalization Business management capacity Risk appetite and liquidity Model discipline Focus on value creation Continuous search for Continuous Acceptable exposure Prudence and and broad customer efficiency investment levels soundness base 20We are read
Slide 23: Prudent capital management
Prudent capital management Maintanance of adequate capitalization levels Capitalization and liquidity Tier I Capital Ratio Itaú Unibanco Model 14.9 % (R$ 126.4 billion) 13.5 % Additional Capital Tier I 1.3 % (AT1) Additional buffer 4.0 % for stress Regulatory buffer 3.5 % Common Equity Tier I 13.6 %
Slide 24: Distribution of profits practices
Distribution of profits practices Capitalization and liquidity To hold Tier 1 Capital ratio at 13.5% in different return and growth scenarios, assuming no acquisitions or changes in capital requirements. ROE 15.0% 17.5% 20.0% 22.5% 25.0% 5.0% 65-70% 70-75% 75-80% 80-85% 85-90% 10.0% 40-45% 45-50% 50
Slide 25: Liquidity
Liquidity Capitalization and liquidity Short-Term Liquidity Indicator (LCR)¹ Long-Term Liquidity Indicator (NSFR)² 127.7% 171.7% 167.2% 122.8% 164.0% 121.1% 100% 100% 4Q2018 1Q2019 2Q2019 4Q2018 1Q2019 2Q2019 Minimum regulatory Minimum regulatory (1) High Quality Liquid Assets (HQLA) / Potential Cas
Slide 26: Diversified funding
Diversified funding Capitalization and liquidity 44% savings deposits 22% 22% of funding is from the 30% time deposits WHOLESALE BANKING segment (average: 1.8 year) 20% demand deposits 6% Financial Bills and other 78% Funds raised¹ R$ Billion Base-Date: July 2019 78% of funding is from the In nation
Slide 27: Shareholder value creation
Structural changes in the Brazilian Financial System 1 Itaú Unibanco is ready 2 Shareholder value creation 3 25Structural changes in the Brazilian Financial System 1 Itaú Unibanco is ready 2 Shareholder value creation 3 25
Slide 28: Consistent profitability
Consistent profitability 24% 24% 24% 24% ROE 22% 22% 22% 21% Average 20% 19% ROE 22% 2010 to 1H19 17% 16% 16% 16% 16% 15% 15% 15% 14% 12,5% 13% Average Cost of Capital 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H2019 R$ billion 25.7 24.9 23.8 22.1 20.6 Recurring 9.2 8.2 15.8 4.4 8.2 5.3 14.6 13.9
Slide 29: Return to shareholders
Return to shareholders Dividend Yield² Payout¹ 2018 83.0% 89.2% 49.3% 12.4% 2.0% 4.3% 7.5% 87.2% 70.6% 45.0% 2016 2017 2018 Payout Shares Buyback In 2019... R$ 8.5 billion in dividends were paid out, equivalent to R$ 0.877 per share (1) % of recurring net income (2) Includes 89.2% payout and the ave
Slide 30: Itaú Unibanco preferred shares appreciation vs market indicators
Itaú Unibanco preferred shares appreciation – Compared with market indicators 575 Evolution of R$ 100 invested on the date preceding the announcement of the merger (10/31/2008) until 08/30/2019 352 281 271 196 100 Itaú Unibanco shares WITHOUT Itaú Unibanco shares WITH CDI Dollar Ibovespa reinvestmen
Slide 31: Itaú Unibanco preferred shares appreciation vs other Brazilian banks
Itaú Unibanco preferred shares appreciation – Compared with other Brazilian banks 575 Evolution of R$ 100 invested on the date 507 preceding the announcement of the merger (10/31/2008) until 08/30/2019 352 285 100 1 Itaú Unibanco shares WITHOUT reinvestment of dividends Bank basket WITHOUT reinvestm
Slide 32: Candido Bracher, President & CEO
Candido Bracher President & CEOCandido Bracher President & CEO
Slide 33: Agenda
Agenda Scenario 1 Strategy to improve customer satisfaction 2 Results achieved (NPS evolution) 3 02Agenda Scenario 1 Strategy to improve customer satisfaction 2 Results achieved (NPS evolution) 3 02
Slide 34: Agenda: Scenario
Agenda Scenario 1 03Agenda Scenario 1 03
Slide 35: Moment of exponential transformations in different sectors
We are experiencing a moment of exponential transformations in different sectors Digital Revolution P R E PC H I S T O R Y H I S T O R Y Industrial Revolution nd 2 Agriculture Revolution Agriculture Mathematics Writing Revolution T i m e l i n e 04 P o p u l a t i o nWe are experiencing a moment of
Slide 36: Transformation is a journey, not a destiny
Transformation is a journey, not a destiny Digital Internet Biometrics Salas.com Multichannel Cloud ATM Personnalité New data Social Hackaton Mobile des. agile Cubo Telephone center Media 05Transformation is a journey, not a destiny Digital Internet Biometrics Salas.com Multichannel Cloud ATM Person
Slide 37: Digital revolution: new customers' needs
Digital revolution New customers’ needs MOBILITY Do not want to waste time in traffic LEISURE Want access to nice and easy entertainment Customers’ COMMUNICATION expectations Need to communicate with their network anytime, anywhere have changed. TRAVEL They demand high- Seek to have new experiences
Slide 38: The game changer: Technology
The game changer: Technology Addressing customers needs through tech. BIOMETRICS BIG DATA ANALYTICS ARTIFICIAL INTELLIGENCE CHATBOTS SMARTPHONE CLOUD WEARABLES BLOCKCHAIN SOCIAL MEDIA 07The game changer: Technology Addressing customers needs through tech. BIOMETRICS BIG DATA ANALYTICS ARTIFICIAL INT
Slide 39: Customer ownership is the new rule
Customer ownership is the new rule Continuously listen to customers and follow up to get their feedback Respect customer privacy Act proactively to anticipate needs Motivate employees to stay engaged Build customer empathy into processes and policies Adapt to customer demands and real-time circumsta
Slide 40: Customer satisfaction is what matters
We have plenty of customers and their satisfaction is what matters Satisfied customers generate more value Universal Bank Present Value in net income (basis 100) R$/customer, 5-year projection § 55 million customers 2x § between 18 and over 80 years old 950 5x § from low-income customers to the Priv
Slide 41: Our Vision and Purpose
Our Vision To be the leading bank in sustainable performance and customer satisfaction Our Purpose To encourage people’s power of transformation Customer Customer changing centricity as a guiding thread to We started to compare ourselves with the world’s top companies in customer satisfaction rather
Slide 42: Competition: Established vs Innovators
Competition Established Innovators X Challenge: change Challenge: scale “Established must find innovation before innovators find distribution” 11Competition Established Innovators X Challenge: change Challenge: scale “Established must find innovation before innovators find distribution” 11
Slide 43: Agenda: Strategy to improve customer satisfaction
Agenda Strategy to improve customer satisfaction 2 12Agenda Strategy to improve customer satisfaction 2 12
Slide 44: Satisfaction has assumed the core role in strategy
Satisfaction has assumed the core role in strategy Cultural Customer Experience Transformation Transformation Engagement Satisfaction measurement (listening to the customer) Incentives Customer Communication Product and process evolution Training Organizational Journey structure redesign 13Satisfact
Slide 45: Cultural Transformation
Cultural Transformation How to engage leaders and teams in changing behaviors? May I help you? Administrative Itaú Unibanco Program conglomerates setting magazines New brand positioning 14Cultural Transformation How to engage leaders and teams in changing behaviors? May I help you? Administrative It
Slide 46: Cultural Transformation: engaging teams
Cultural Transformation How to engage teams in changing behaviors? “Rituals reinforce the behaviors we want and implement changes.” (Heidi Grant, Ph.D. at Neuroleadership Institute; Harvard Business Review) Learnings from customer Proactive communication to feedback to improve their understand custo
Slide 47: Customer Experience Transformation: Satisfaction Measurement
Customer Experience Transformation 1st step: Satisfaction Measurement Approximately + 30 million 4 million surveys sent every year responses from customers 16Customer Experience Transformation 1st step: Satisfaction Measurement Approximately + 30 million 4 million surveys sent every year responses f
Slide 48: Customer Experience Transformation: Journey Redesign
Customer Experience Transformation 2nd step: Journey Redesign Discovery Delivery Prioritizing the Mapping Pains Benchmarks and Assessing Implementing Monitoring Journey and As-Is flow To Be ideation solutions initiatives results Acquisition and use of overdraft 1 Onboarding and use of current accoun
Slide 49: Customer Experience Transformation: Journey Redesign
Customer Experience Transformation 2nd step: Journey Redesign Discovery Delivery Prioritizing Mapping Pains Benchmarks and Assessing Implementing Monitoring the Journey and As-Is flow To Be ideation solutions initiatives results 6 1 2 3 4 5 7 Comparison Customer’s Solution Multidisciplinary Tests wi
Slide 50: Agenda: Results achieved (NPS evolution)
Agenda Results achieved (NPS evolution) 3 19Agenda Results achieved (NPS evolution) 3 19
Slide 51: Competitive NPS
Competitive NPS In general, we have good results compared with our main competitors Itaú Itaú Itaú Personnalité Branch Uniclass Competitive NPS Competitive NPS Competitive NPS (Basis 100) (Basis 100) (Basis 100) 100 100 100 78 75 71 71 66 59 58 58 60 2º 3º 4º 2º 3º 4º 2º 3º 4º Source: Competitivenes
Slide 52: Global NPS for Business and Transactional NPS
Global NPS for Business (Aug/18 x Jul/19) Retail Banking - Individuals Retail Banking - Companies Cards Acquiring services Private banking 4 pp 12 pp 4 pp 20 pp 12 pp Transactional NPS (Aug/18 x Jul/19) Itaú App score ** Branches* Service Centers 8 pp 14 pp 4.7 4.5 App Store Play Store 21 *Total Ora
Slide 53: Global NPS
Global NPS Holding’s Company Global NPS 7 pontos 70% of the challenge to grow 10pp by 2020 22 *Total Orange Branches (Itaú Branches, Uniclass and EMP4)Global NPS Holding’s Company Global NPS 7 pontos 70% of the challenge to grow 10pp by 2020 22 *Total Orange Branches (Itaú Branches, Uniclass and EMP
Slide 54: We know our customers' pains and the challenges ahead
We know our customers’ pains and the challenges ahead We have already made great progress in customer satisfaction and centricity, but there is still a long way to go Wrapping up... We know where we should go and we are in the right path to changing league 23We know our customers’ pains and the chal
Slide 55: André Sapoznik, Technology & Operations
André Sapoznik Technology & OperationsAndré Sapoznik Technology & Operations
Slide 56: Itaú's Digital Strategy
Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 02Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 02
Slide 57: Itaú's Digital Strategy
Itaú’s Digital Strategy Start from the client Ways of working Massive use of Modern People who analytics platform move people 03Itaú’s Digital Strategy Start from the client Ways of working Massive use of Modern People who analytics platform move people 03
Slide 58: Start from the client: an imperative always up to date
Start from the client: An imperative always up to date With the speed of change in the world and stronger computational power, we are able to find out more expeditiously what the client is searching for and develop customized solutions. Before Market Solution research development customization time
Slide 59: Creating powerful digital solutions
Creating powerful digital solutions DESIRABLE BY THE Desirable and possible Desirable and CLIENT but not feasible is not feasible but not sustainable possible is a dream Powerful digital solutions arise from meeting clients’ actual needs by FINANCIALLY TECHNICALLY using technology that FEASIBLE POSS
Slide 60: Start from the client: Itaú Keyboard
Start from the client: Itaú Keyboard The bank participates from the client’s financial life wherever he choses to be. Financial services are present through any app on his mobile phone. Identified I have to pay Daniel for the trip. Is there an easy way to do it “ without having to open another app?
Slide 61: Start from the client: Investment recommendations
Start from the client: Investment recommendations Identified What is the best way to invest my money? So “ need: many options! 2.5 minutes Solution: Data only Itaú has: to generate a The most advantageous combination Expected results from 28,000 recommendation financial products and assets possible
Slide 62: Itaú's Digital Strategy
Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 08Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 08
Slide 63: Itaú's Digital Strategy
Itaú’s Digital Strategy Ways of working Start from the client Massive use of Modern People who analytics platform move people 09Itaú’s Digital Strategy Ways of working Start from the client Massive use of Modern People who analytics platform move people 09
Slide 64: Speed is key in today's competitive environment
Speed is key in today’s competitive environment Modern model Traditional model Multiple interactions among different functional Autonomous team inspired by the same purpose, gathering structures to develop one single product. complementary skills to enable fast decision-making. Product Design Data S
Slide 65: New ways of working translate into superior results
New ways of working translate into superior results Integrated multidisciplinary teams, focused on smaller and quicker deliveries, result in higher quality, productivity and financial return. Technology solutions More value Higher financial return captured 293% 118% 2017 2019 2017 2019e (1ºH) (1ºH)
Slide 66: Itaú's Digital Strategy
Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 12Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 12
Slide 67: Itaú's Digital Strategy
Itaú’s Digital Strategy Start from Ways of the client working Massive use of People who analytics move people Modern platform 13Itaú’s Digital Strategy Start from Ways of the client working Massive use of People who analytics move people Modern platform 13
Slide 68: We use technology to solve real problems
We use technology to solve real problems Traditional model: supply perspective Modern model: demand perspective What are they for? big data & analytics Identifying possible application automation cloud opportunities big data & analytics Using the automation cloud best IoT APIs technology available +
Slide 69: Applying a demand perspective to improve our technological platform
Applying a demand perspective to improve our technological platform Develop new products, matching the bank’s Constantly update our legacy systems platform with external solutions 1 2 From a single interconnected To independent External face system Startup risk Itaú core + + biometric model applicat
Slide 70: Cubo: innovation driver for the bank's platform
Cubo: innovation driver for the bank’s platform 1,100 residents (120 startups) 70+ projects including the bank and Cubo startups overall Startups 400 members 215,000 sqft Largest technology entrepreneurship 2,000 people/day hub in Latin America. 1,000 events/year 24 corporate sponsors Coming closer
Slide 71: Cybersecurity: security is non-negotiable
Cybersecurity: security is non-negotiable In an increasingly digital world, cyber risk management is an essential part of our operations. Process discipline Protection by design Human capital • Operating center 24/7 • Secure development• A distinctive talent attraction, • Comprehensive prevention pr
Slide 72: Itaú's Digital Strategy
Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 18Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 18
Slide 73: Itaú's Digital Strategy
Itaú’s Digital Strategy Start from Ways of the client working Modern People who platform move people Massive use of analytics 19Itaú’s Digital Strategy Start from Ways of the client working Modern People who platform move people Massive use of analytics 19
Slide 74: Data: the bank's new capital
Data: the bank’s new capital Data and State-of-the-art Data analytics algorithms scientists + + Voice data Transactions Biometrics 27 petabytes + Results = 50% of everything humanity Interactions in Image data has ever written in digital channels any languages +275% of value captured in projects in
Slide 75: Analytics: credit card underwriting through digital sales
Analytics: credit card underwriting through digital sales Identified How to provide clients with more cards through digital “ need: sales without increasing the risk for the bank? Before Now 1 single model for +50 models for many audiences customized audiences Hundreds of +80,000 variables variables
Slide 76: Analytics: listening to 360,000 calls every day
Analytics: “listening” to 360,000 calls. Every single day. In the past Today Traditional monitoring: Speech analytics: Transcription of 100% of calls and text analysis World’s largest “I’d like to voice increase my credit limit.” transcription Calls monitored by people. call center Only 0.2% monitor
Slide 77: Itaú's Digital Strategy
Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 23Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 23
Slide 78: Itaú's Digital Strategy
Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern analytics platform People who move people 24Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern analytics platform People who move people 24
Slide 79: People who move people
People who move people Along this transformation journey, we value individuals and teams who: Are flexible to work under new work arrangements and structures Make data-based Are proficient decisions in technology Are enthusiastic about Understand the client our culture 25People who move people Along
Slide 80: People who move people
People who move people Our search for the right people is relentless. Continuous Environments Modern leadership that enhance talent development cooperation acquisition Partnerships with Training programs education centers Technology subjects +150 +980 topics Equivalent to 2 +1000 hours master’s in d
Slide 81: Itaú's Digital Strategy
Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 27Itaú’s Digital Strategy Start from Ways of the client working Massive use of Modern People who analytics platform move people 27
Slide 82: Márcio Schettini, Retail General Director
Márcio Schettini Retail General DirectorMárcio Schettini Retail General Director
Slide 83: Agenda
Agenda Industry Context and Recent Performance 1 Business Model 2 Transformation and Digital Innovation 3 02Agenda Industry Context and Recent Performance 1 Business Model 2 Transformation and Digital Innovation 3 02
Slide 84: Agenda
Agenda Industry Context and Recent 1 Performance Business Model 2 Transformation and Digital Innovation 3 03Agenda Industry Context and Recent 1 Performance Business Model 2 Transformation and Digital Innovation 3 03
Slide 85: Our business environment: Industry Context
Our business environment Industry Context § New competitive arena§ Need for gains in efficiency and productivity § More enlightened and more demanding clients § Technology as the driver of new business models § Evolving regulatory context § Advent of new markets § Margins under pressure reinterpreti
Slide 86: Our business environment: Itaú Unibanco Attributes
Our business environment Itaú Unibanco Attributes § Robust and comprehensive distribution § Proven track record of differentiated performance § Low customer acquisition cost § Capability and readiness to compete in all core businesses § High-value, loyal and engaged customer base § Sound approach to
Slide 87: Recent Performance: how the bank creates value
Recent Performance how the bank creates value Customer Customer base EBIT satisfaction = Revenue (PB) NPS System New customers Contacts per customer e-NPS Customer churn Sales per customer Efficiency enabler Digitalization Omnichannel Share of wallet Cost to serve Efficacy (immediate Cost of acquiri
Slide 88: Recent Performance: Important Figures
Recent Performance Important Figures Customers # 55 MM Itaú BBA Itaú Private Bank # 31 MM Account Holders and Savers # 29 MM Individual Customers Itaú Companies # 1.6 MM Itaú Companies Middle Market Itaú Personnalité Companies # 4,018 Branches + Banking Outlets Itaú Uniclass Small Companies Very Sma
Slide 89: Recent Performance: customer base and accounts opened
Recent Performance (basis100) Individual Customer Base Business Customer Base +4% +10% 0% +7% 118 104 107 100 100 100 Customer Base July 2017 2018 2019 2017 2018 2019 Individual Accounts Opened Business Accounts Opened +15% +27% +4% +10% Accounts Opened 127 132 110 January to July 100 104 100 2017 2
Slide 90: Recent Performance: portfolio and credit granted
Recent Performance (basis100) Portfolio Credit Granted +21% +11% +35% +6% 118 Credit 164 135 106 100 100 2017 2018 2019 2017 2018 2019 July January to July Mortgage Portfolio Vehicle Portfolio Payroll Loan Portfolio +9% +6% +27% +1% 116 110 106 129 100 101 100 101 100 2017 2018 2019 2017 2018 2019 2
Slide 91: Recent Performance: investments, Rede and cards
Recent Performance (basis100) Balance of Investment New customers Rede Rede Invoicing +90% +12% +13% -5% +12% +8% 181 127 113 121 100 108 100 100 95 2017 2018 2019 2017 2018 2019 2017 2018 2019 July January to July January to July Card base Card sales Card Invoicing +15% +11% +11% +11% +3% +44% 128
Slide 92: Recent Performance: Digital Channels
Recent Performance Digital Channels (basis100) January to July Individual Checking Accounts Credit Cards Checking accounts opened using the app Digital card sales 6X 5X 591 538 342 282 31% 28% 100 100 of all accounts of total opened¹ sales 2017 2018 2019 2017 2018 2019 Individuals Companies Digital
Slide 93: Recent Performance: Share per Channel
Recent Performance Share per Channel Channel Accesses/ month Revenue Result 19% 38% 28% 45% 43% 6% 74% 11% 34% ATM, internet and Mobile take into account unique CPF numbers 1H19 1H19 1Q19 Digital Channels Remote Channels Physical Channels Account Managers and Internet ATMs and Tel. 30hs and Mobile C
Slide 94: Agenda
Agenda Industry Context and Recent Performance 1 Business Model 2 Transformation and Digital Innovation 3 13Agenda Industry Context and Recent Performance 1 Business Model 2 Transformation and Digital Innovation 3 13
Slide 95: Business model
Business model Companies Product Marketplace Branch Business § Universal relationship§ Single-product relationship with no § Offer the best (own or third-party) banking association required products in the market Characteristics § Rooted in Branch – Manager – Checking Account § More intense competit
Slide 96: Business model
Business model Companies Product Marketplace Branch Business § Universal relationship§ Single-product relationship with no § Offer the best (own or third-party) banking association required products in the market Characteristics § Rooted in Branch – Manager – Checking Account § More intense competit
Slide 97: Agenda
Agenda Industry Context and Recent Performance 1 Business Model 2 Transformation and Digital 3 Innovation 16Agenda Industry Context and Recent Performance 1 Business Model 2 Transformation and Digital 3 Innovation 16
Slide 98: Business model
Business model Companies Product Marketplace Branch Business § Universal relationship§ Single-product relationship with no § Offer the best (own or third-party) banking association required products in the market Characteristics § Rooted in Branch – Manager – Checking Account § More intense competit
Slide 99: Digital Transformation: Branch
Digital Transformation Branch Transactions that Digitalize - Enhance the obligated the customers customer’s experience in the physical space to go to the branch Commercial Complete self-service, Video Conferencing and e.g. Vehicle credit new customer service stations Cashier Increase the branch’s e.
Slide 100: Digital Transformation: Branch Footprint
Digital Transformation Branch Footprint Branch coverage Customer coverage % municipalities % of GDP covered covered Branch 19% 84% coverage Customer 96% 99.7% 1 coverage Omnichannel Managers Physical ATM Mobile 1 Branch 100 Branches 2 Branch 100 customers Remote Cashier Chat Closures Customer § Cust
Slide 101: Digital Transformation: Banking
Digital Transformation Banking Mobile for Individuals Internet for Companies + 1.9MM new users last 90% of the base access on year every month High engagement Easy to manage 54% of our customer access the app every month with an average of 20 access per person Sales to Individuals Abre Conta MEI for
Slide 102: Digital Transformation: Payments and Cards
Digital Transformation Payments and Cards Digital Wallets Card on File 2018 2019* NFC Linked Account Approvals Registrations 1 MM 2.5 MM Market Share IPP 9% 24% 75% 76% 19% 5% Credicard Zero Virtual Cards Entry Virtual Cards Issued New Accounts History 678 212 169 398 100 100 1H17 1H18 1H19 1H17 1H1
Slide 103: Digital Transformation: Other initiatives
Digital Transformation Other initiatives + 5 0 p r o d u c t s Insurance Non-Account Holder: Digital Account Holders: Advisory Insurance Store Cars Data Store Evolution of Proposals Qualified lead Machine Vehicles Learning Offering the right car Browsing Installment 1H17 2H17 1H18 2H18 1H19 Credit M
Slide 104: Business model
Business model Companies Product Marketplace Branch Business § Universal relationship§ Single-product relationship with no § Offer the best (own or third-party) banking association required products in the market Characteristics § Rooted in Branch – Manager – Checking Account § More intense competit
Slide 105: iti: vision of open products beyond banking
vision 0 vision 1 vision 2 vision 3 open products beyond banking Digital account aut. income platform Financial benefits payments management chat with a human marketplace credit attendant investment the project has 4 steps credit card conversational experience 24vision 0 vision 1 vision 2 vision 3 o
Slide 106: Coverage: iti is up and running across Brazil
coverage iti is up and running across all of Brazil from major retailers to local businesses 25coverage iti is up and running across all of Brazil from major retailers to local businesses 25
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2626
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Itau Unibanco Holding — Apimec SP 2019 Public Meeting on 6ix