Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q1 2020 Earnings Presentation
167 slides from Itau Unibanco's earnings presentation, May 5, 2020
Slide 1: Announcement to the Market – 1st Quarter 2020 Result
Exhibit 99.1 ITAÚ UNIBANCO HOLDING S.A. CNPJ 60.872.504/0001-23 A Publicly-Listed Company NIRE 35300010230 ANNOUNCEMENT TO THE MARKET Itaú Unibanco Holding S.A. st 1 Quarter 2020 Result Itaú Unibanco Holding S.A. (“Company”) announces to its shareholders and the market at large that the Complete Fin
Slide 2: Attachment 01
Attachment 01 Attachment 01
Slide 3: 1Q20 Institutional Presentation
1Q20 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 CDP NYSE BM &FBOVE SP A1Q20 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 CDP NYSE BM &FBOVE SP A
Slide 4: Forward-looking statements
1Q20 This presentation contains forward-looking statements regarding Itaú Unibanco Holding, its subsidiaries and affiliates - anticipated synergies, growth plans, projected results and future strategies. Although these forward-looking statements reflect management’s good faith beliefs, they involve
Slide 5: Agenda
Agenda Corporate 04 profile Strategic 11 fronts Our 36 businesses Corporate 61 governance Capital and 71 risk management Financial 83 highlights Additional 96 informationAgenda Corporate 04 profile Strategic 11 fronts Our 36 businesses Corporate 61 governance Capital and 71 risk management Financial
Slide 6: Corporate profile
Corporate profile 4Corporate profile 4
Slide 7: About us
Corporate profile About us? Universal bank | 95 years of history | largest bank in Latin America¹ 3 3 4 4 3 Market Value³ Total assets Credit portfolio ROE Net income Tier I Capital US$43.8 bn R$1,982.5 bn R$769.2 bn 12.8% R$3.9 bn 12.0% Brazil’s most We are present in 18 countries valuable² brand R
Slide 8: What do we do?
Corporate profile What do we do? Full offering of products and services| diversified client base | solid brand Insurance Credit Services A complete The Retail Bank includes retail clients, $ physical and digital Personal Current accounts Life high-income clients bank and very small and Cards Cards a
Slide 9: How have we evolved?
Corporate profile How have we evolved? Adaptable culture | innovation | transparency in business NY Stock First First First Internet Euro Itaú on Britain We have World War II Exchange overseas version of providers becomes the NY decides to witnessed ends crisis branch of Windows the official Stock l
Slide 10: What are we seeking?
Corporate profile What are we seeking? To change leagues and compare ourselves with the world’s best companies in client satisfaction Our Promoting people’s power Purpose of transformation Ethics are Passionate Simple. People It’s only The best We think Our culture non- about Always mean good for ar
Slide 11: A responsible bank
Corporate profile A responsible bank Our commitments to a We believe that people Principal pacts, initiatives and voluntary commitments have the power to positive impact Responsible banking transform the world, and Financing for sectors with a positive impact that a bank can promote To increase our
Slide 12: A responsible bank – COVID-19 donations
Corporate profile A responsible bank Our role in this crisis must be proportional to our relevance in society. . Itaú Unibanco donations (total R$1.3 bn) Donations in a joint initiative with Bradesco R$1 bn donated to the program Todos pela saúde and Santander 5 million coronavirus fast And also we
Slide 13: Strategic fronts
Strategic fronts 11Strategic fronts 11
Slide 14: Strategic Fronts
Strategic fronts Strategic Fronts Following a collective thought process, we defined our priority strategic fronts in order to achieve consistent and quality results in the years ahead. Strategic fronts of Client Continuous Centricity improvement Risk Management Digital Transformation Sustainable Pr
Slide 15: Client Centricity
Strategic fronts Client Centricity We want our clients to have the best experience That is why we are continually and tirelessly striving to improve our client’s experience each time they engage with the bank Satisfied clients create more value Universal Bank Present Value of R$/client net income, 5
Slide 16: Client Centricity – satisfaction benchmark
Strategic fronts Client Centricity We want to be the benchmark in satisfaction, transforming our culture so that the client is at the center of everything. Satisfied clients create Our actions, including digital transformation and the efforts involving people management, are designed for our clients
Slide 17: Client Centricity – continuous updates
Strategic fronts Client Centricity Continuous updates for a better experience App Store Our apps are among the best rated in app stores Play Store APP PERSONNALITÉ 4.0 4.7 12.9 MM individual clients APP ABRE CONTA APP ITAÚ 1st bank using digital channels offering bank account opening (INDIVIDUALS) b
Slide 18: Client Centricity – investment recommendations
Strategic fronts Client Centricity Identified Investment recommendations need: What is the best way to invest my money? Solution The most advantageous 2.5 minutes Data only Itaú has: combination possible for each to generate a ü Expected results from 28,000 financial products and assets client, acco
Slide 19: Digital Transformation – supply vs demand perspective
Strategic fronts Digital Transformation Supply perspective x Demand perspective Traditional model: supply perspective Modern model: demand perspective Tendências de novas tecnologias: Tendências de novas tecnologias: New technology trends: New technology radar: cloud cloud artificial Intelligence an
Slide 20: Digital Transformation – changing how we develop services
Strategic fronts Digital Transformation To achieve digital transformation, we need to change the way we develop services and products Before Market Solution customization time data research development Client Bank Client Now Data customization time data + research + experimenting Client Bank 18Strat
Slide 21: Digital Transformation – new product examples
Strategic fronts Digital Transformation Examples of the new way in which we design product and services Iti is a multi-purpose platform that allows clients and non- clients to pay, buy, transfer and receive money instantaneously peer-to-peer or through a QR code. We acquired Zup to accelerate our mo
Slide 22: Digital Transformation – Cubo and startups
Strategic fronts Digital Transformation + velocity to extend our digital offer 1,106 80+ projects 13 floors residents between the bank (118 startups) + rooftop and Cubo startups Cubo is the most relevant 357 32 filliated different hub for technological startups industries entrepreneurship promotion
Slide 23: Digital Transformation – new work methods
Strategic fronts Digital Transformation New work methods lead to superior results Data base 100 More technology solutions Higher productivity Greater number of solutions delivered Reduction in the delivery time of technology solutions -40% 1Q2019 1Q2020 1Q2019 1Q2020 36% More availability -70% Reduc
Slide 24: Digital Transformation – Analytics on calls
Strategic fronts Digital Transformation Analytics: “listening to” 360,000 calls every day In the past Today One of the Traditional monitoring Speech analytics world’s largest Transcription of 100% of the calls and analysis of the texts voice transcription operations “I would like to increase my limi
Slide 25: Digital Transformation – Data
Strategic fronts Digital Transformation Data: the bank’s new capital Data and State-of-the-art Data analytics algorithms scientists + + Voice data + Results +275% of value captured Transactions Biometrics in projects in analytics 27 petabytes = 50% of everything humanity has ever written in Interact
Slide 26: Digital Transformation – efficiency and technology investment
Strategic fronts Digital Transformation Focus on efficiency while continually investing in technology Technology investments 11% 154 Inflation (IPCA) 130 accumulated in the 122 period 100 109 106 100 101 47.6 45.3 46.4 45. 5 2016 2017 2018 2019 Efficiency Ratio (%) Technology investments (Base 100)
Slide 27: Digital Transformation – remote work
Strategic fronts Digital Transformation Enabling remote work for most employees All areas quickly adapted to this working model. . Remote work Accesses via VPN (in thousands) We enabled remote work for all 35.7 Capacity for 90 thousand Central Administration teams Accesses per day. 0.4 That rely upo
Slide 28: People Management
Strategic fronts 1,3 People Management By region By age bracket Approximately 4.7 k people 5.3% North > 50 years 95 thousand 1% 45.5 k people Northeast 5% 51.2% 30-50 years Center-West Employees² 3% 38.7 k people Southeast 43.5% up to 30 years in Brazil and overseas 83% South 7% 14% By gender By hie
Slide 29: People Management – good place to work
Strategic fronts People Management¹ Is Itaú Unibanco a Employee’s An innovative and inspiring environment. good place to work? experience In our employees’ eyes² VoU cOmO sOu Our challenge is to be Rendering our dress code flexible, respecting our Advocates 78% (Scores 9-10) employees and our strate
Slide 30: People Management – compensation and development
Strategic fronts People Management¹ A bank that recognizes, values and encourages people development. Total compensation² Meritocracy Cycle The program takes into account the targets proposed, the results obtained and the manner in which those results Fixed compensation are delivered, since although
Slide 31: People Management – workforce well-being
Strategic fronts People Management Ensure the well-being of our workforce Prevent the spread of COVID-19 and preserve the physical, mental and financial health of our employees. . Remote work Central administration Early Payment of the 13th salary* 95% of our employees from central administration, D
Slide 32: Risk Management
Strategic fronts Risk Management risk management fully timely and preemptive action, widely disseminated integrated into the focusing on creating increasing and risk culture performance of the business sustainable value and on client centricity PERFORMANCE COVERAGE Previous Current à Future Credit B
Slide 33: Sustainable Profitability
Strategic fronts Sustainable Profitability Our inspiration is to be leaders in sustainable performance, where profitability exceeds the cost of capital, and in the creation of increasing value. Recurring Net Income Digital Our Business Model Strategy Our challenge is to continually improve the effic
Slide 34: Sustainable Profitability – value generation
Strategic fronts Sustainable Profitability How does the bank generate value? Client EBIT Customer base X = satisfaction New clients NPS System Revenue (PB) Contacts per client Clients churn e-NPS Efficiency enabler Sales per client Omnichannel Digitalization Share of wallet Cost of acquiring Efficac
Slide 35: Sustainable Profitability – cost management
Strategic fronts Sustainable Profitability Strict cost management If we are to remain profitable and competitive, we need a structural improvement in efficiency by constantly striving for opportunities to reduce costs. Employees Initiatives • Voluntary redundancy program 99,661 Mar-19 4,373 • Review
Slide 36: Internationalization
Strategic Fronts Internationalization Where are we? What are we seeking? Why Internationalize? We are looking to replicate our commercial 1 Access to new markets We are present in 18 management, technology, and risk management countries, of which 9 2 Capability of replicating the business model in t
Slide 37: Internationalization – digital transformation
Strategic Fronts Internationalization¹ Digital transformation % Transações Digitais % Acquisition Digital Current Accounts 2018 2019 Mar-20 2018 2019 Mar-20 3% 34% 65% Individuals Our clients and operations Individuals 71% 77% 79% (internet/ mobile) are increasingly digital in Argentina, Paraguay an
Slide 38: Our business
Our business 36Our business 36
Slide 39: Who are our clients?
Our business Who are our clients? Through our Retail and Wholesale Banking segments we offer a wide range of products and services tailored to each client profile. Client profile by segment in Brazil Individuals Companies Ultra Private Bank over R$4 billion >R$5 million in total investment Large >R$
Slide 40: Retail Banking
Our business Retail Banking Main Main Serving a client base of over . initiatives COVID-19 Results 1Q20 56 million clients New conditions for contracting or refinancing Net income non-overdue contracts Our distribution network comprises¹ R$ 1.8billion ~850 thousand contracts already 4,009 BRANCHES A
Slide 41: Retail Banking – digital channels
Our business Retail Banking The use of our digital channels significantly increased over the last years. Our digital branches also increased to serve clients who almost do not use brick and mortar branches. % of transactions Use of digital channels¹ through digital channels Highlight Total current a
Slide 42: Retail Banking – new dynamics in branches
Our business Retail Banking¹ New dynamics in branches and platforms More service and less business. . Brick-and- Opening hours Service mortar Weekly rotation 9 am to 10 am 10 am to 2 pm Maximum of Branches for retirees and for the general with half of the 10 clients INSS pensioners public employees
Slide 43: Retail Banking – client communication
Our business Retail Banking Intense communication with clients in times of uncertainty . Inform Serve Support Reassure Up-to-date information about Up-to-date information about Products and services suitable for Comfort the client by our service our digital channels services the current moment build
Slide 44: Wholesale Banking
Our business Wholesale Banking Main Main Only in Brazil, We serve approximately products and services Results 1Q20 21,000 corporate groups and Credit solutions Net National and foreign currency institutional R$726 million income Service solutions Our sales channels reach institutional clients in 18
Slide 45: Wholesale Banking – credit and liquidity initiatives
Our business Wholesale Banking . BBA Credit and liquidity initiatives to support our clients Asset Management Investment Banking Wealth Management Services Up to 90 days Postponing of grace period for installment maturities of loans that expire credits in the middle market in the coming months Latin
Slide 46: Personal Loans and Payroll Loans
Our business $ Personal Loans and Payroll Loans Personal loans Evolution of personal loans portfolio (In R$ billion) Money in the account $ The money is immediately Payroll loans credited, including on the 86.5 82.8 The payroll loans portfolio accounts for 58% of total 78.7 weekends. 75.4 73.8 73.1
Slide 47: Mortgage Loans
Our business $ Mortgage Loans Client focused Products and sales channels Mortgage loans portfolio (In %) (In R$ billion) Quick and efficient process with + 6.5 % credit analysis in up to one hour for 46.3 48.1 48.5 47.2 47.8 48.0 48.5 49.8 51.7 vs Mar-19 operations of up to R$1 million. 26% 36% 1% 1
Slide 48: Mortgage Loans – loan to value
Our business $ Mortgage Loans¹ Loan to Value (Em %) 63.8% Vintage (quarterly average) 60.6% 58.6% 57.4% 57.9% 54.8% 55.1% 55.0% 54.8% + 5.2 p.p vs Mar-19 41.9% 41.6% 41.6% 40.8% 40.0% 38.4% 38.8% 38.8% 39.1% Mortgage Loan Portfolio + 0.3 p.p. vs Mar-19 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-1
Slide 49: Vehicles
Our business $ Vehicles Loan portfolio by client profile Contracting (In R$ billion) + 35.6% § 12.1 thousand sales points; 30 thousand § Sale of light and heavy vehicles: Contracts/month 29.3 28.1 25.3 21.6 22.1 9.9 9.1 19.2 18.8 • 73% of contracts are made in stores and dealers; 17.1 7.3 17.3 3.9 1
Slide 50: Vehicles – iCarros portal
Our business $ Vehicles iCarros Portal Main products and services § 19MM access/month§ 86% mobile Evolution of financing proposals on the iCarros platform: (Base 100) Facial Recognition 700 11 1 iCarros Simple and safe contracting process. 571 521 Vehicle Marketplace with technological solutions, th
Slide 51: Credit Card
Our business Credit Card Our credit card options serve current account holders and non-current account holders Main brands Convenience to clients We are leaders in the credit To individuals, very small, small and middle-market companies Financial services through credit cards. card segment in Brazil
Slide 52: Credit Card – transaction volume
Our business Credit Card Transaction Volume 1Q20 150,490 Total 13.2%¹ 129,517 R$129.5 billions 37,740 119,540 of total sales are carried -13.9% (vs. 4Q19) Debit 32,114 30,276 +8.3% (vs. 1Q19) out using digital channels Credit 112,751 - 13.6 % (vs. 4Q19) 97,403 41.3%² in 4Q19 89,264 Credit +9.1 % (vs
Slide 53: Credit Card – digital sales model
Our business Credit Card Need How to provide clients with more cards through digital Identified sales without increasing the risk for the bank? Before Now +50 models for customized Single model for many audiences audiences +80,000 variables available for Hundreds of variables testing for testing 4x
Slide 54: Acquiring services
Our business Acquiring services Transaction Volume Our brands 1Q20 141,862 121,858 Total 113,004 R$121.9 billions 51,362 - 14.1% (vs. 4Q19) 45,282 Debit 40,128 + 7.8% (vs. 1Q19) More than de credit 25 brands - 15.4% (vs. 4Q19) 90,499 76,575 72,877 Credit + 5.1% (vs. 1Q19) accepted by Rede machines d
Slide 55: Insurance
Our business Insurance We offer a wide range of insurance products related to life, personal accidents, vehicles and property credit and travel. Our insurance core activities, which include our 30% interest in Porto Seguro, consist of mass-market insurance products related to life and property, and
Slide 56: Insurance – open platform
Our business Insurance | Insurance Open Platform Benefits Multi-channel Broker Products Offered Sales Force Vehicles Insurance consultants Life + Insurance Shop Health (Companies) Multi-channel distribution Manager Focused on commissions and fees Full Life Cashier Internet Banking/Mobile Credit Life
Slide 57: Pension plan
Our business Pension plan Open platform Reasons to invest: Concept 1,3,6,9: How much does the client have to save to enjoy a peaceful retirement? 1 5 Retirement Financial return Funds carefully selected Years of salary accumulated Age always keeping the client in Future expenses 2 Enable easy 135 mi
Slide 58: Services – Investments
Our business Services | Investments Main products Treasury Direct Funds Fixed income Equities Real Estate Funds COE Savings Pension Plan Zero-fee products: Variable Income Pension Plan Real Estate Fund Treasury Direct Fixed Income Zero custody fee Zero initial and Zero custody fee Zero brokerage and
Slide 59: Services – Investment Open Platform
Our business Services | Investment Open Platform Third-party products offered Funds • Fixed Income • Multimarket • Shares Careful selection of the best investment • Pension Plan products in the market + de 61 external fund managers Fixed Income • CDB• LCI + 34 treasury products issuers • CRI• LCA •
Slide 60: Services – Wholesale Banking
Our business Services | Wholesale Banking Investment Banking Middle Leadership position and client recognition Annual revenues from R$ 30 MM to R$ 500 MM “Focused on clients with the best ratings, with 95% of the credits being rated B3 or better, and with operations in Fixed income diversified servi
Slide 61: Services – Wholesale Banking: WMS
Our business Services | Wholesale Banking R$ million WMS Large range of customized wealth management and investments solutions Securities Services Evolution of Assets Under Administration1 Local Custody: we ended December with R$1,376.3 billion under custody (+0.6% from the same period of 2019). Inv
Slide 62: Services – Asset Management
Our business Services | Wholesale Banking Asset Management Kinea It is an independent platform of management of differentiated investments. With R$64.5 billion in assets as of March 2020, it operates in the segments of Multi-Markets, Real Estate, Pension Plan and Private Equity, Stock and Infrastruc
Slide 63: Corporate governance
Corporate governance 61Corporate governance 61
Slide 64: History of our Governance
Corporate governance History of our Governance We believe that a sound and meritocracy-based governance, guided towards long-term value creation, adds value to our business, facilitates access to capital and contributes to business continuity. Highlights 1999 2001 2006 2007 2017 Inclusion in the Dow
Slide 65: Our governance structure
Corporate governance Our governance structure family family Egydio de Family control, with Moreira Souza long-term vision Salles Free Float Aranha ON PN PN ON 100% 63.27% 18.17% 36.73% 81.83% Cia. E. Johnston de Participações 66.33% 33.67% ON PN 50.00% 0% 33.47% Itaú Unibanco Highly diversified ITAÚ
Slide 66: Pillars of our Governance
Corporate governance Pillars of our Governance management aligned Focus on performance decisions made on with meritocracy-based and value creation a collective basis culture Family control ensuring long-term strategic vision IUPAR • Alignment among shareholders • Defines group’s vision, mission and
Slide 67: Board of Directors
Corporate governance Board of Directors Our Board of Directors consists of professionals with exceptional knowledge and expertise in different areas of expertise, some of the key differentials of our management. Main duties Board of Directors 2 Co-chairmen Committees • Defining and monitoring the st
Slide 68: COVID-19 Governance Committee
Corporate governance COVID-19 Governance Committee Responsible for monitoring the crisis and its impacts, deliberations and institutional positioning. . Executive Committee agenda Check Point of Executive Committee + 7 Institutional Crisis Management Committee and Check Point of Risks Febraban and R
Slide 69: Board of Directors Committees
Corporate governance Board of Directors Committees Our committees report directly to the Board of Directors. Strategic committees since 2004 since 2011 since 2009 since 2009 since 2018 8 Audit Compensation Personnel Strategy LATAM Strategy committees 100% of the members are independent 100% of the m
Slide 70: Our Executive Committee
Corporate governance Our Executive Committee The Executive Committee is responsible for implementing the strategy and day-to-day management. Main duties • Implementing the guidelines and goals proposed by the Board of and human resources; Directors;• Monitoring market, credit and operational risks;
Slide 71: Partners and Associates Program
Corporate governance Partners and Associates Program Aiming at aligning the interests of our officers and employees with those of our shareholders, we maintain a partner and associate’ program, focused on management members and employees with outstanding performance. Long-term incentives The investm
Slide 72: Our shares
Corporate governance Our shares Our capital stock is comprised of 9.8 billion common shares (ITUB3) and non-voting shares (ITUB4). Non-voting shares are also traded as depositary receipts (ADR - ITUB ) on the NYSE (New York Stock Exchange). Characteristics of our shares Appreciation of R$ 100 invest
Slide 73: Capital and risk management
Capital and risk management 71Capital and risk management 71
Slide 74: Our principles of risk management
Capital and risk management Our principles of risk management The Board of Directors is our main capital management body, responsible for approving our institutional capital management policy and the guidelines involving the institution’s level of capitalization. We adopt a forward-looking approach
Slide 75: Basel III and Capital structure
Capital and risk management Basel III and Capital structure Our current ratio Basel III requirement 13.3% 1.3% Total Capital (11.5% - 14.0%) Tier II 2.0% 1.7 % Additional Tier I Capital (AT1) 1.5 % Tier I (9.5% - 12.0%) CET 1 (8.0% - 10.5%) 0 – 2.5% Countercyclical² ACP¹ 1.0 % Systemic³ 10.3% 2.5% C
Slide 76: Payout Practice
Capital and risk management Payout Practice 2019 Total payout simulation 2019 ROE ROE 23.7% 15.0% 17.5% 20.0% 22.5% 25.0% RWA 9% 65% - 70% 70 - 75% 75 - 80% 80 - 85% 85% - 90% 5.0% RWA 10.0% 40% -45% 45 - 50% 50 - 55% 55 - 60% 60% - 65% The return and growth growth scenario positioned the 15.0% 35%
Slide 77: Capital cost management
Capital and risk management Capital cost management We are continually striving to manage our capital allocation efficiently through an appropriate capital cost. The Board of Directors, then, deliberates on and approves the changes Board of Directors or the ratification of the cost of own capital Wh
Slide 78: How are we structured for managing risks?
Capital and risk management How are we structured for managing risks? A classical model with three lines of defense: the business areas bear primary responsibility for risk management, followed by the risks area and, lastly, the audit area subordinated to the Board of Directors Discussion of metrics
Slide 79: Our risk management principles
Capital and risk management Our risk management principles Risk appetite consists of a 4-layer structure: principles of risk management, declaration by the Board of Directors, magnitude of the risk and metrics, and coordinates the set of guidelines on the assumption of risks. The principles of risk
Slide 80: How do we establish our risk appetite?
‘ Capital and risk management How do we establish our risk appetite? Risk appetite defines the nature and level of the risks acceptable to our organization, delimiting the conditions in which our management will strive to maximize the creation of value. It is monitored, discussed and reported on a r
Slide 81: Market Risk and Liquidity Management
Capital and risk management Market Risk and Liquidity Management Solid management of liquidity and market risk Average VaR¹ in the quarter Liquidity Coverage Ratio (LCR) Net Stable Funding Ratio (NSFR) 432.7 397.1 375.0 363.7 122.8% 122.2% 210.9% 121.1% 174.1 173.5% 165.5% 117.5% 164.0% 116.8% Mar-1
Slide 82: Cybersecurity
Capital and risk management Cybersecurity: security is non-negotiable In an increasingly digital world, cyber risk management is an essential part of our business. Protect by design Process discipline Human capital • Secure development• 24X7 Operations Center• Differentiated attraction, training and
Slide 83: Climate risk
Capital and risk management Climate risk Alignment with TCFD recommendations – December 2019 Climate risk and its variables comprise the analysis of Implementation Aspect Delivered in 2019 socioenvironmental risk at Itaú Unibanco. This approach status places Itaú in a strategic position to ensure th
Slide 84: Socioenvironmental risk
Capital and risk management Socioenvironmental risk The Socioenvironmental Risk Policy contains the criteria for analysis and projects, constitution of real estate guarantees and the inclusion of contractual clauses. To that end, we must take into account: List of activities excluded • Activities in
Slide 85: Financial highlights
Financial highlights 83Financial highlights 83
Slide 86: Financial Highlights 1Q20
Financial Highlights 1Q20 In R$ billions Credit Portfolio R$769.2 bn Recurring 7.3 7.2 7.0 6.9 769.2 net income 3.9 706.7 689.0 659.7 647.1 R$3.9 bn Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 1Q19 2Q19 3Q19 4Q19 1Q20 Non-interest 23.7% 23.6% 23.5% 23.5% Expenses Recurring ROE R$12.1 bn 12.8% 12.8 % 13.0 12.
Slide 87: Credit portfolio 1Q20
Credit portfolio 1Q20 In R$ billions Mar-20 Mar-19 Dec-19 Credit origination¹ 1Q20 vs. 1Q19 Individuals 238.1 215.6 10.4% 239.8 -0.7% Credit card loans 83.8 76.4 9.7% 90.9 -7.8% + Individuals 9% Personal loans 37.4 31.1 20.0% 34.6 8.1% Very Small, Small and Middle Market + 22% Payroll loans 50.3 48.
Slide 88: Credit portfolio profile 1Q20
Credit portfolio profile 1Q20 1Q20 Credit¹ portfolio by segment Industry concentration Credit concentration among the in relation to total credit² portfolio largest debtors at a stable level risk (R$ billions) Vehicle financing (individuals) 2.5 % risk/ credit² (%) Personal loans 4.9 % Highest 3.7%
Slide 89: Expected loss provisioning model 1Q20
Expected loss provisioning model 1Q20 In effect since 2010 Allocation of total provisions and in continuous In R$ billions evolution Our expected loss provisioning Mar-20 vs. Mar-19 model determines the level of Total + 37.6% 47.1 provisions to be made, taking 39.7 into account: Expected loss 34.2 2
Slide 90: Cost of credit 1Q20
Cost of credit 1Q20 5.5% Cost of credit 4.4% 4.2% 4.1% 3.7% 3.6% 3.3% 3.1% 3.0% 3.0% 3.0% 2.9% 2.9% 2.7% Cost of credit 2.7% 2.5% 2.5% 2.4% 2.4% (in R$ billions) 2.1% 2.1% 10.1 Cost of credit in relation to the portfolio 7.2 6.3 6.4 5.8 5.6 5.1 5.3 (annualized %) 5.1 4.8 4.8 4.5 4.5 4.3 4.0 4.0 3.8
Slide 91: Credit quality 1Q20
Credit quality 1Q20 6.9% 6.8% 6.8% 6.8% 6.7% 6.7% 6.6% 6.6% 6.5% 6.4% 6.1% 6.1% 5.9% 5.7% 5.7% 5.6% 5.6% 5.4% 5.4% 4.9% 4.8% 3.9% 3.6% 3.5% 3.4% 3.4% 3.2% 3.2% 3.2% 3.1% 3.1% 3.0% 3.1% 3.0% 3.0% 3.0% 2.9% 2.9% 2.9% 2.9% 2.8% 2.8% 47.1 39.7 39.1 38.2 38.5 37.4 37.6 37.4 37.3 36.6 36.7 36.2 36.0 36.1
Slide 92: Financial margin with clients 1Q20
Financial margin with clients 1Q20 Annualized average rate % - Consolidated Annualized average rate % - Brazil 10.0% 10.0% 9.9% 10.0% 10.0% 12.2% 12.1% 12.1% 12.2% 12.2% 9.9% 12.0% 9.8% 9.8% 11.9% 11.8% 9.2% 11.1% 9.5% 9.6% 7.7% 9.2% 9.2% 7.6% 7.6% 7.6% 9.2% 7.5% 9.0% 9.0% 7.4% 7.4% 8.4% 6.7% 4.1% 3
Slide 93: Financial margin with the market 1Q20
Financial margin with the market 1Q20 In R$ billions 1.5 1.5 1.4 1.4 1.4 1.4 1.3 1.3 1.2 1.7 1.6 1.5 1.3 1.3 1.3 1.2 1.1 1.3 1.1 0.8 1.0 0.7 0.9 0.5 0.9 1.0 0.2 0.4 0.1 0.6 0.5 0.5 0.5 0.4 0.4 0.3 0.3 0.3 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Financial margin with Sale of shares - B3 Financia
Slide 94: Commissions, fees and result from insurance operations 1Q20
Commissions, fees and result from insurance operations 1Q20 In R$ billions Investment banking league tables 1Q20 1Q19 4Q19 From January 201 9 to March 2020. Credit and debit cards 3.0 3.3 -7.8% 3.4 -10.2% Position 3 st Card issuance 2.3 2.5 2.2 5.2% -7.1% M&A (Brazil) 1 3 st M&A (LatAm) 1 Acquiring
Slide 95: Non-interest expenses 1Q20
Non-interest expenses 1Q20 In R$ billions Key principles of our Strategic Cost Management 1Q20 4Q19 1Q19 weekly reported to the Executive Committee Personnel Expenses (5.2) (5.7) (5.3) -2.3% -8.5% Administrative Expenses (4.0) Automation and digitalization (4.1) -2.1% (4.3) -5.5% 1 Other (1.3) (1.4)
Slide 96: Capital 1Q20
Capital 1Q20 March 2020 14.4% 1.3% 12.0% 1.7% 13.2% 10.3% Dec-19 Additional Net income SecuritiesTaxcreditRWA Mar-20 Foreign Additional Tier I Capital dividends and dividends mark to exchange Tier I Tier I Capital 1 and interest market variation in the Capital on capital - AT1 2019 (1 ) Additional T
Slide 97: Perspectives 2020
Perspectives 2020 The 2020 forecast Capital and liquidity should remain at appropriate levels considering our internal stress test scenarios. previously disclosed is now suspended due to the lack The main factors that will drive the credit portfolio growth in the short and medium terms will of predi
Slide 98: Additional information
Additional information 96Additional information 96
Slide 99: Corporate profile – Additional information
Corporate profile Additional information 97Corporate profile Additional information 97
Slide 100: A History of Successful Strategic Deals
Additional Information A History of Successful Strategic Deals¹ Acquisition of the remaining 50% of: Uruguay Retail - Brazil NACIONAL Acquisition of the Banco Itaú BMG Consignado minority interest of: Casa Moreira Salles Acquisition of a minority interest in: 1924 Unibanco 1995 - 1998 2000 - 2003 20
Slide 101: Capital and risk management – Additional information
Capital and risk management Additional information 99Capital and risk management Additional information 99
Slide 102: Capital Ratios (BIS) | Prudential Conglomerate
Additional Information Capital Ratios (BIS) | Prudential Conglomerate ¹ 1Q20 4Q19 In R$ millions, end of period Core Capital 107,668 117,328 Tier I (Core Capital + Additional Capital) 124,980 128,696 Referential Equity (Tier I and Tier II) 139,218 140,596 Total Risk-weighted Exposure (RWA) 1,043,517
Slide 103: Ratings
Additional Information Ratings FitchRatings International National Viability Support Local Currency Foreign Currency Long Term Short Term Long Term Short Term Long Term Short Term bb 4 BB B BB B AAA (bra) F1+ (bra) Moody’s International National Subordinated Debt Senior Unsecured Debt Issuer Issuer
Slide 104: Financial Highlights – Additional information
Financial Highlights Additional information 102Financial Highlights Additional information 102
Slide 105: Our response to the Covid-19 crisis
Additional Information Our response to the Covid-19 crisis We are committed to maintaining We are working on Our role in this crisis job security digital channels must be proportional to with the suspension of terminations availability at historical high and our relevance in society. without cause f
Slide 106: Results
Additional Information Results In R$ billions 1Q20 1Q19 4Q19 Operating revenues 29.2 31.8 28.2 3.5% -8.3% Managerial financial margin 17.8 19.4 17.7 0.8% -8.4% Financial margin with clients 17.0 16.4 3.8% 18.1 -6.0% Financial margin with the market 0.8 1.2 -38.9% 1.3 -41.8% Commissions and fees 9.5
Slide 107: 15 to 90 days NPL ratio
Additional Information 15 to 90 days NPL ratio Consolidated % (15-90 days) 3. 6% 3.3 % 3.3 % 3.2% 2.9% 3.0% 3.1% 2. 6% 3.1% 3.0% 2.9% 2.8 % 2.5% 2.3% 2. 8% Brazil¹ 2.5% 3.2% 2.6% 2.5% 2.6% 2.5% 3.2% 2.3 % 2.4% 3.1% 2.9% Latin America² 2.8% 2.7% 2.8% 2.7% 2.6% 2.7% 2.7% 2.5% 2.6% 2.7 % 2. 7% 2.4% 2.
Slide 108: Segments – Income Statement Pro Forma 1Q20
Additional Information Segments – Income Statement Pro Forma 1Q20 A ctivitie s w ith the Re tail Bank ing Whole s ale Bank ing Mark e t + Itaú Unibanco In R$ m illions Corporation 19,705 7,592 1,909 29,206 Operating Reve nues 11,632 4,489 1,684 17,805 Managerial Financ ial Margin 11,632 4,489 924 17
Slide 109: Income Statement | Operating Revenues Perspective
Additional Information Income Statement | Operating Revenues Perspective ΔΔ In R$ millions 1Q20 4Q19 1Q19 29,206 31,833 -8.3% 28,208 3.5% Operating Revenues Managerial Financial Margin 17,805 19,439 -8.4% 17,668 0.8% Financial Margin with Clients 17,045 18,132 -6.0% 16,424 3.8% Financial Margin with
Slide 110: Results – Brazil and Latin America
Additional Information Results – Brazil and Latin America 1Q20 4Q19 Δ Latin Latin Latin 1 1 1 C ons olidate d Braz il Am erica C o ns o lidate d Br az il Am erica C ons olidate d Brazil Am erica In R $ millions (e x-Brazil) (e x-Braz il) (e x-Brazil) Ope rating Re ve nue s 29,206 26,411 2,795 31,833
Slide 111: Business Model
Additional Information Business Model st st 1 Quarter 2020 1 Quarter 2019Δ Insurance Excess Insurance Excess Insurance Excess Insurance Excess Insurance Excess Insurance Excess Con Co so n li s d oat lidated ed CreCredit dit Tra Td radin ing g Con Co so n lis d o at lidated ed Cred Credit it Trad Tr
Slide 112: Credit Portfolio by Product
Additional Information Credit Portfolio by Product In R$ billions, end of period 1Q20 4Q19 1Q19 Δ Δ 1 237,0 239,0 -0,8% 214,7 10,4% Individuals - Brazil 83,8 90,9 -7,8% 76,4 9,7% Credit Card 36,2 33,7 7,5% 30,1 20,2% Pers onal L oans 2 50,3 49,4 1,8% 48,6 3,4% Pay roll L oans 19,4 19,0 2,3% 16,6 17,
Slide 113: Credit Portfolio by Currency
Additional Information Credit Portfolio by Currency ¹ R$ billion Mar-2 0 284.8 425.2 710.0 De c -19 232.8 417.0 649.7 Se p- 1 9 240.0 401.7 641.7 Ju n - 1 9 228.3 389.3 617.6 Mar-1 9 224.5 384.5 609.0 De c -18 219.5 379.1 598.6 Se p- 1 8 233.4 366.7 600.1 Ju n - 1 8 223.5 365.1 588.6 Mar-1 8 197.9 3
Slide 114: Credit Origination and Private Securities Issuance | Brazil
Additional Information Credit¹ Origination and Private Securities Issuance | Brazil Base 100 = 1Q17 Total Credit2 – Brazil Credit2 - Individuals 36% 9% 11% 193 0.1% 174 172 173 159 142 131 117 100 100 1Q17 1Q18 1Q19 4Q19 1Q20 1Q17 1Q18 1Q19 4Q19 1Q20 Credit2 – Very Small, Small and Middle Credit2 –
Slide 115: Credit Portfolio Breakdown, Companies
Additional Information Credit Portfolio Breakdown , Companies Credit Portfolio by Business Sector¹ ² Credit Concentration ¹ R$ billion Mar-20 In R$ billions, end of period 1Q20 4Q19 Δ Loan, lease and other Loan, lease, other credit operations Public Sector 5.0 3.8 30.8% credit operations and securit
Slide 116: Credit Portfolio by Vintage
Additional Information Credit Portfolio by Vintage¹ R$ billion Profile of credit portfolio by origination period: • Older vintages with higher spreads are losing relevance compared to the most recent ones. • 62.4% of total origination was created in the past 12 months. 544 583 640 32.7% 33.8% 36.2%
Slide 117: Loan Portfolio Mix Change
Additional Information Loan Portfolio Mix Change ¹ (%) R$ billion Consolidated Mar-20 19.0 15.6 3.0 13.1 5.7 7.4 7.9 28.4 Mar-20 26.6 21.7 4.2 18.3 7.9 10.3 11.0 Mar-19 25.3 19.4 4.3 19.7 7.8 11.0 12.5 2 Brazil Mar-18 28.2 18.1 4.0 18.3 7.4 11.3 12.6 Mar-17 32.7 16.3 4.2 15.9 7.3 10.9 12.7 Mar-16 35
Slide 118: Provision for Loan Losses and Cost of Credit
Additional Information Provision for Loan Losses and Cost of Credit R$ million Provision for Loan Losses by Segment 6.8% 5.8% 5.0% 5.0% 4.7% 4.5% 4.2% 4.1% 3.7% 3.6% 3.5% 3.3% 3.4% 10,398 3.1% 3.2% 3.0% 2.9% 808 7,824 6,337 6,169 5,823 5,392 4,948 6,145 2,441 4,483 4,111 4,271 772 4,282 396 4,922 41
Slide 119: Allowance for Loan Losses by Risk – Consolidated
Additional Information Allowance for Loan Losses by Risk– Consolidated R$ million Allocation of Total Allowance by Type of Risk -Consolidated Mar-20 12,978 11,471 22,634 47,083 Dec-19 11,523 10,828 17,396 39,747 Mar-19 11,233 9,920 13,053 34,206 Overdue operations according to the Potential Loss Ren
Slide 120: Non Performing Loans Ratios
Additional Information Non Performing Loans Ratios 90-day NPL Ratio| Consolidated (%) 15 to 90-day NPL Ratio | Consolidated - % 4.4 4.2 4.2 3.7 3.7 3.7 3.5 3.5 3.1 3.4 3.3 3.5 3.4 3.3 2.9 3.0 2.7 2.7 2.6 2.6 2.5 2.5 2.3 2.3 3.5 3.4 3.4 3.1 3.1 3.2 3.1 3.1 2.7 3.0 3.0 2.6 2.9 2.9 2.9 2.6 2.3 2.5 2.5
Slide 121: NPL Creation
Additional Information NPL Creation R$ billion 7.3 5.3 5.1 5.0 5.0 5.0 4.7 4.4 3.8 4.9 4.4 4.3 3.9 3.6 3.5 3.5 3.5 3.2 1.2 1.2 1.1 1.0 1.1 0.7 0.9 0.5 0.4 1.1 0.1 0.7 -0.5 0.4 0.4 0.4 0.3 -0.3 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Total Retail Banking - Brazil Whosale Banking - Brazil Latin A
Slide 122: Provision for Loan Losses and NPL Creation by Segment
Additional Information Provision for Loan Losses and NPL Creation by Segment Retail Banking - Brazil R$ billion 145% 113% 108% 108% 104% 104% 99% 100% 102% 7.1 4.5 3.7 3.5 3.6 4.2 3.9 4.3 4.5 4.4 4.9 3.5 4.0 3.5 3.2 3.2 3.5 3.7 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Wholesale Banking - Brazil
Slide 123: Insurance, Pension Plan and Premium Bonds
Additional Information Insurance, Pension Plan and Premium Bonds In R$ millions 1Q20 4Q19 1Q19 Δ Δ Earned Premiums 1,082 1,124 -3.8% 1,052 2.8% Revenues from Pension Plan 64 35 82.1% 57 12.7% Revenues from Premium Bonds 107 104 3.6% 102 4.9% Managerial Financial Margin (34) 90 - 93 - Commissions and
Slide 124: Balance Sheet – Assets and Liabilities
Additional Information Balance Sheet – Assets and Liabilities Assets 1Q20 4Q19 1Q19 Δ∋ Δ∋ R$ million Current and Long-term Assets 1,944,900 1,702,123 14.3% 1,617,065 20.3% Cash and Cash Equivalents 71,881 62,152 15.7% 72,739 -1.2% Short-term Interbank Investments 282,565 200,577 40.9% 242,035 16.7%
Slide 125: Funding
Additional Information Funding • Loan Portfolio mainly funded by domestic client funding • Diversified funding base In R$ millions, end of period 1Q20 4Q19 1Q19 Δ∋ Δ∋ 700,779 608,990 15.1% 546,757 28.2% Funding from Clients (A) 101,711 82,306 23.6% 74,757 36.1% Demand Deposits 149,600 144,558 3.5% 1
Slide 126: Funding – loan portfolio ratio and maturity
Additional Information Funding Ratio between Loan Portfolio and Funding % Funding (Maturity Breakdown) In days 96.9% 94.6% 96.3% 96.0% 93.3% 91.7% 91.8% 91.9% 81.2% 77.8% 78.6% 79.0% 78.2% 76.1% 77.4% 76.7% 74.5% 71.1% 181-365 R$ billion Over to 365 31-180 900 9.0% 788 8.7% 760 737 697 699 688 691 3
Slide 127: 1Q20 Institutional Presentation
1Q20 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 CDP NYSE BM &FBOVE SP A1Q20 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 CDP NYSE BM &FBOVE SP A
Slide 128: Attachment (Portuguese only)
Attachment 02 (portuguese only) Attachment 02 (portuguese only)
Slide 129: Teleconferência com a Imprensa Resultados 1T20
Teleconferência com a Imprensa Resultados 1T20 05/05/2020 Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO 1 Itaú Unibanco Holding S.A.Teleconferência com a Imprensa Resultados 1T20 05/05/2020 Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO 1 Itaú Unibanco Holding S.A.
Slide 130: Destaques – Nossa resposta à crise de Covid-19
Destaques Nossa resposta à crise de Covid-19 Nosso papel nesta crise vamos Estamos trabalhando nos deve ser proporcional à manter empregos canais digitais com a suspensão de nossa relevância na disponibilidade no máximo histórico desligamentos sem justa causa e o dobro de aberturas de contas pelo so
Slide 131: Suporte aos clientes durante a crise – Varejo
Suporte aos clientes durante a crise Varejo Plano de Saúde Financeira, um pacote de soluções financeiras abrangente para ajudar nossos clientes Novas condições para Outras iniciativas contratação e para pessoas físicas para empresas reparcelamento de contratos em dia Prorrogações e isenções: crédito
Slide 132: Suporte aos clientes durante a crise – Atacado
Suporte aos clientes durante a crise Atacado BBA Iniciativas de crédito e liquidez para ajudar nossos clientes Asset Management Investment Banking Wealth Management Services Até 90 dias Prorrogação de carência para créditos de operações com vencimento parcelados no Middle Market nos próximos meses A
Slide 133: Destaques financeiros 1T20
Destaques financeiros 1T20 Em R$ bilhões Carteira de crédito R$ 769,2 bi 7,3 Lucro líquido 7,2 7,0 6,9 769,2 recorrente 3,9 706,7 689,0 659,7 647,1 R$ 3,9 bi mar/19 jun/19 set/19 dez/19 mar/20 1T19 2T19 3T19 4T19 1T20 Despesas 23,7% 23,6% 23,5% 23,5% não decorrentes de juros ROE recorrente 12,8% R$
Slide 134: Modelo de provisionamento por perda esperada 1T20
Modelo de provisionamento por perda esperada 1T20 Adotado desde Alocação da provisão total 2010 e em constante Em R$ bilhões aprimoramento Nosso modelo de perda esperada Mar/20 vs. Mar/19 determina o tamanho das Total + 37,6% 47,1 provisões que precisam ser feitas, 39,7 levando-se em consideração Pe
Slide 135: Qualidade do crédito 1T20
Qualidade do crédito 1T20 6.7% 6.9% 6.7% 6.8% 6.8% 6.8% 6.6% 6.6% 6.5% 6.4% 6.1% 6.1% 5.9% 5.7% 5.6% 5.7% 5.6% 5.4% 5.4% 4.9% 4.8% 3.9% 3.6% 3.5% 3.4% 3.4% 3.2% 3.2% 3.2% 3.1% 3.1% 3.1% 3.0% 3.0% 3.0% 3.0% 2.9% 2.9% 2.9% 2.9% 2.8% 2.8% 47.1 39.7 39.1 38.2 38.5 37.6 37.4 37.4 37.3 36.6 36.7 36.2 36.0
Slide 136: Cenário macroeconômico 2020
Cenário macroeconômico 2020 Diferentes cenários de recuperação do PIB brasileiro no 3º trimestre 25% 50% 75% 100% -3,9% 08/05 -8,9% -3,3% -2,6% -1,9% Projeção para o -4,1% 15/05 -3,5% -9,6% -2,8% -2,1% PIB -4,4% 22/05 -3,8% -10,3% -3,1% -2,4% do Brasil 1º semestre -4,6% 29/05 -4,0% -11,0% -3,3% -2,6
Slide 137: Perspectivas 2020
Perspectivas 2020 Em função da baixa Níveis de liquidez e capitalização adequados aos nossos cenários de stress test. visibilidade sobre a extensão e profundidade Os principais fatores que influenciarão o crescimento da carteira de crédito no curto e médio dos efeitos da crise atual prazos serão a m
Slide 138: Teleconferência com a Imprensa Resultados 1T20
Teleconferência com a Imprensa Resultados 1T20 05/05/2020 Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO 10 Itaú Unibanco Holding S.A.Teleconferência com a Imprensa Resultados 1T20 05/05/2020 Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO 10 Itaú Unibanco Holding S.A.
Slide 139: Attachment
Attachment 03 Attachment 03
Slide 140: Itaú Unibanco's loan portfolio grows 18.9% in the first quarter of 2020
Itaú Unibanco’s loan portfolio grows 18.9% in the first quarter of 2020 Bank maintained interest rates unchanged for individuals, very small and small companies during the crisis São Paulo, May 4, 2020 - Itaú Unibanco reported a recurring net income of R$ 3.9 billion in the first quarter of 2020, a
Slide 141: Non-interest expenses were R$12.1 billion in the first quarter 2020
Non-interest expenses were R$ 12.1 billion in the first quarter 2020, a reduction of 0.8% “The provisions set aside by Itaú in relation to the same quarter in 2019, due Unibanco in the first quarter of the to lower personnel and administrative year reflect a significant worsening expenses, as well a
Slide 142: Press release – further information and contact
risk groups. At branch level and in other areas in which activities cannot be executed remotely, initiatives were adopted to protect clients and employees. Further information on results can be obtained from the Itaú Unibanco Investor Relations website: www.itau.com.br/relacoes-com-investidores. (1)
Slide 143: Attachment
Attachment 04 Attachment 04
Slide 144: Conference call 1Q20 Earnings review
Conference call 1Q20 Earnings review Candido Botelho Bracher President and CEO Milton Maluhy Filho Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Director, Group Head of Finance and Investor Relations Renato Lulia Jacob Head of Investor Relations and Market Intelligence 1 Itaú Un
Slide 145: Highlights – Our response to the Covid-19 crisis
Highlights Our response to the Covid-19 crisis We are committed to maintaining We are working on Our role in this crisis job security digital channels must be proportional to with the suspension of terminations availability at historical high and our relevance in society. without cause for an indete
Slide 146: Support for clients during the crisis – Retail
Support for clients during the crisis Retail Financial Health Plan, a comprehensive financial solution package to help our clients New conditions for Other initiatives contracting or refinancing for individuals for companies non-overdue contracts Extension and exemptions: emergency credit line for s
Slide 147: Support for clients during the crisis – Wholesale
Support for clients during the crisis Wholesale BBA Credit and liquidity initiatives to support our clients Asset Management Investment Banking Wealth Management Services Up to 90 days Postponing of grace period for installment maturities of loans that expire credits in the middle market in the comi
Slide 148: Financial Highlights
Financial Highlights 5Financial Highlights 5
Slide 149: Financial Highlights 1Q20
Financial Highlights 1Q20 In R$ billions Credit Portfolio R$769.2 bn 7.3 Recurring 7.2 7.0 6.9 769.2 net income 3.9 706.7 689.0 659.7 647.1 R$3.9 bn Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 1Q19 2Q19 3Q19 4Q19 1Q20 Non-interest 23.7% 23.6% 23.5% 23.5% Expenses Recurring ROE R$12.1 bn 12.8% 12.8 % 13.0 12.
Slide 150: Credit portfolio 1Q20
Credit portfolio 1Q20 In R$ billions Mar-20 Mar-19 Dec-19 Credit origination¹ 1Q20 vs. 1Q19 Individuals 238.1 215.6 10.4% 239.8 -0.7% Credit card loans 83.8 76.4 9.7% 90.9 -7.8% Individuals + 9% Personal loans 37.4 31.1 20.0% 34.6 8.1% Very Small, Small and Middle Market + 22% Payroll loans 50.3 48.
Slide 151: Credit portfolio profile 1Q20
Credit portfolio profile 1Q20 1Q20 Credit¹ portfolio by segment Industry concentration Credit concentration among the in relation to total credit² portfolio largest debtors at a stable level risk (R$ billions) Vehicle financing (individuals) 2.5 % risk/ credit² (%) Personal loans 4.9 % Highest 3.7%
Slide 152: Expected loss provisioning model 1Q20
Expected loss provisioning model 1Q20 In effect since 2010 Allocation of total provisions and in continuous In R$ billions evolution Our expected loss provisioning Mar-20 vs. Mar-19 model determines the level of Total + 37.6% 47.1 provisions to be made, taking 39.7 into account: Expected loss 34.2 2
Slide 153: Cost of credit 1Q20
Cost of credit 1Q20 5.5% Cost of credit 4.4% 4.2% 4.1% 3.7% 3.6% 3.3% 3.1% 3.0% 3.0% 3.0% 2.9% 2.9% 2.7% Cost of credit 2.7% 2.5% 2.5% 2.4% 2.4% (in R$ billions) 2.1% 2.1% 10.1 Cost of credit in relation to the portfolio 7.2 6.4 6.3 5.8 5.6 5.3 5.1 5.1 (annualized %) 4.8 4.8 4.5 4.5 4.3 4.0 4.0 3.8
Slide 154: Credit quality 1Q20
Credit quality 1Q20 6.7% 6.9% 6.7% 6.8% 6.8% 6.8% 6.6% 6.6% 6.5% 6.4% 6.1% 6.1% 5.9% 5.7% 5.7% 5.6% 5.6% 5.4% 5.4% 4.9% 4.8% 3.9% 3.6% 3.5% 3.4% 3.4% 3.2% 3.2% 3.2% 3.1% 3.1% 3.1% 3.0% 3.0% 3.0% 3.0% 2.9% 2.9% 2.9% 2.9% 2.8% 2.8% 47.1 39.7 39.1 38.2 38.5 37.4 37.6 37.4 37.3 36.6 36.7 36.2 36.0 36.1
Slide 155: Financial margin with clients 1Q20
Financial margin with clients 1Q20 Annualized average rate % - Consolidated Annualized average rate % - Brazil 10.0% 10.0% 10.0% 10.0% 12.2% 9.9% 9.9% 12.1% 12.1% 12.2% 12.2% 9.8% 12.0% 9.8% 11.9% 11.8% 9.2% 11.1% 9.6% 9.5% 7.7% 9.2% 7.6% 7.6% 7.6% 9.2% 9.2% 7.5% 9.0% 9.0% 7.4% 7.4% 8.4% 6.7% 4.1% 3
Slide 156: Financial margin with the market 1Q20
Financial margin with the market 1Q20 In R$ billions 1.5 1.5 1.4 1.4 1.4 1.4 1.3 1.3 1.2 1.7 1.6 1.5 1.3 1.3 1.3 1.2 1.1 1.3 1.1 0.8 1.0 0.7 0.9 0.5 0.9 1.0 0.2 0.4 0.1 0.6 0.5 0.5 0.5 0.4 0.4 0.3 0.3 0.3 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Financial margin with Sale of shares - B3 Financia
Slide 157: Commissions, fees and result from insurance operations 1Q20
Commissions, fees and result from insurance operations 1Q20 In R$ billions Investment banking league tables 1Q20 4Q19 1Q19 From January 201 9 to March 2020. Credit and debit cards 3.0 3.4 3.3 -7.8% -10.2% Position 3 st Card issuance 2.3 2.2 5.2% 2.5 -7.1% M&A (Brazil) 1 3 st M&A (LatAm) 1 Acquiring
Slide 158: Non-interest expenses 1Q20
Non-interest expenses 1Q20 In R$ billions Key principles of our Strategic Cost Management 1Q20 4Q19 1Q19 weekly reported to the Executive Committee Personnel Expenses (5.2) (5.7) (5.3) -2.3% -8.5% Administrative Expenses (4.0) Automation and digitalization (4.1) -2.1% (4.3) -5.5% 1 Other (1.3) (1.4)
Slide 159: Capital 1Q20
Capital 1Q20 March 2020 14.4% 1.3% 12.0% 1.7% 13.2% 10.3% Dec-19 Additional Net income Securities Tax credit RWA Foreign Additional Mar-20 Tier I Capital dividends and dividends mark to exchange Tier I Tier I Capital 1 and interest market variation in the Capital on capital - AT1 2019 (1 ) Additiona
Slide 160: Macroeconomic outlook 2020
Macroeconomic outlook 2020 rd Different scenarios of Brazilian GDP recovery in the 3 quarter 25% 50% 75% 100% -3.9% 05/08 -8.9% -3.3% -2.6% -1.9% Projected Brazil’s -4.1% 05/15 -3.5% -9.6% -2.8% -2.1% GDP -4.4% 05/22 -3.8% -10.3% -3.1% -2.4% st 1 half of 2020 -4.6% 05/29 -4.0% -11.0% -3.3% -2.6% -4.
Slide 161: Perspectives 2020
Perspectives 2020 The 2020 forecast Capital and liquidity should remain at appropriate levels considering our internal stress test scenarios. previously disclosed is now suspended due to the lack The main factors that will drive the credit portfolio growth in the short and medium terms will of predi
Slide 162: Appendix
Appendix 19Appendix 19
Slide 163: Results 1Q20
Results 1Q20 In R$ billions 1Q20 1Q19 4Q19 Operating revenues 29.2 28.2 3.5% 31.8 -8.3% Managerial financial margin 17.8 17.7 0.8% 19.4 -8.4% Financial margin with clients 17.0 16.4 3.8% 18.1 -6.0% Financial margin with the market 0.8 1.2 -38.9% 1.3 -41.8% Commissions and fees 9.5 8.6 10.4% 10.4 -8.
Slide 164: 15 to 90 days NPL ratio 1Q20
15 to 90 days NPL ratio 1Q20 Consolidated % (15-90 days) 3.6% 3.3% 3.3% 3.2% 2.9% 3.0% 3.1% 2.6% 3.0% 3.1% 2.9% 2.8% 2.5% 2.3% 2.8% Brazil¹ 2.5% 3.2% 2.6% 2.5% 2.6% 3.2% 2.5% 2.4% 2.3% 3.1% 2.9% Latin America² 2.8% 2.7% 2.8% 2.7% 2.6% 2.7% 2.7% 2.5% 2.6% 2.7% 2.7% 2.4% 2.6% 2.7% 2.5% 2.4% Total 2.3%
Slide 165: Business model 1Q20
Business model 1Q20 st st 1 Quarter 2020 1 Quarter 2019Δ Insurance Excess Insurance Excess Insurance Excess Insurance Excess Insurance Excess Insurance Excess Consolidated Credit Trading Consolidated Credit Trading Co C n o s ns olo id lida ate ted d Cre Cr d e id t it Tr Tr aa dd in ing g Consolida
Slide 166: Digital channels 1Q20
Digital channels 1Q20 1 Use of digital channels % of transactions through digital channels In millions 1Q20 1Q18 12.9 2 Credit 11.5 Individuals 24% 18% 10.0 2 Investments 46% 42% 1.2 1.2 1.1 Companies 2 Payments 84% 68% mar/18 mar/19 mar/20 3 Transfers 96% 91% Account openings through the Abreconta
Slide 167: Conference call 1Q20 Earnings review
Conference call 1Q20 Earnings review Candido Botelho Bracher President and CEO Milton Maluhy Filho Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Director, Group Head of Finance and Investor Relations Renato Lulia Jacob Head of Investor Relations and Market Intelligence 24 Itaú U
Itau Unibanco Holding — Q1 2020 Earnings Presentation on 6ix