Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q2 2016 Earnings Presentation
29 slides from Itau Unibanco's earnings presentation, Aug 3, 2016
Slide 1: Announcement to the Market: Conference Call of the 2nd Quarter 2016 Result
ITAÚ UNIBANCO HOLDING S.A. CNPJ 60.872.504/0001-23 A Publicly Listed Company ANNOUNCEMENT TO THE MARKET Conference Call of the 2 nd quarter 2016 Result In accordance with the invitation extended to the market participants and regulators and published in the investor relations website of Itaú Unibanc
Slide 2: 2nd quarter 2016 – Earnings Review Conference Call
2 nd quarter 2016 – 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 3: Pro Forma Information
Pro Forma Information The merger between Itaú Chile and CorpBanca was concluded on April, 1 st . As from the second quarter of 2016, Itaú CorpBanca, the company resulting from this merger, was consolidated in our financial statements, as we are the controlling shareholder, with a 33.58% ownership of
Slide 4: Highlights
Highlights Recurring Net Income Consolidated R$5.6 + 8.0% (2Q16/1Q16) billion - 9.1% (2Q16/2Q15) Brazil R$5.2 + 3.9% (2Q16/1Q16) billion - 10.3% (2Q16/2Q15) Recurring ROE (p.a.) Consolidated 20.6% + 100 bps (2Q16/1Q16) - 420 bps (2Q16/2Q15) Brazil 21.1% + 40 bps (2Q16/1Q16) - 400 bps (2Q16/2Q15) Cre
Slide 5: Recurring ROE / Recurring ROA
Recurring ROE / Recurring ROA Consolidated ROE / ROA 24.7% 24.9% 24.5% 24.8% 24.1% 22.1% 20.6% 19.6% 1.8% 1.8% 1.7% 1.8% 1.8% 1.6% 1.6% 1.4% 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Annualized Recurring Return on Average Equity (quarterly) Annualized Recurring Return on Average Assets (quartely) Braz
Slide 6: Results
ResultsIn R$ millions 2Q16 1Q16 change 2Q15 change 1H16 1H15 change Operating Revenues 26,478 26,884 (405) -1.5% 26,532 (53) -0.2% 53,362 52,491 871 1.7% Managerial Financial Margin 16,588 17,412 (824) -4.7% 17,229 (641) -3.7% 34,000 34,037 (36) -0.1% Financial Margin with Clients 15,068 15,675 (607
Slide 7: Results – Brazil and Latin America
Results – Brazil and Latin America 2Q16 1Q16 change Latin Latin Latin Consolidated Brazil 1 America Consolidated Brazil 1 America Consolidated Brazil 1 America In R$ millions (ex-Brazil) (ex-Brazil) (ex-Brazil) Operating Revenues 26,478 23,972 2,507 26,884 24,470 2,413 -1.5% -2.0% 3.9% Managerial Fi
Slide 8: Credit and Trading & Insurance and Services
Credit and Trading & Insurance and Services2Q16 1Q16 change Insurance Excess Insurance Excess Insurance Excess Consolidated Credit and Consolidated Credit and Consolidated Credit and In R$ billions Trading and Services Capital Trading and Services Capital Trading and Services Capital Operating Reven
Slide 9: Credit Portfolio
Credit PortfolioIn R$ millions, end of period 2Q16 1Q16 change 2Q15 change Individuals 182,626 184,226 -0.9% 187,318 -2.5% Credit Card Loans 54,455 54,867 -0.8% 56,247 -3.2% Personal Loans 28,703 29,159 -1.6% 30,016 -4.4% Payroll Loans 46,489 46,742 -0.5% 45,517 2.1% Vehicle Loans 16,700 18,105 -7.8
Slide 10: Loan Portfolio Mix
Loan Portfolio Mix Change 3 (%) Itaú Unibanco’s share in Latin America businesses Consolidated Jun-16 23.0 11.9 3.4 10.9 5.7 9.5 9.3 26.4 12.3 Jun-16 31.3 16.1 4.6 14.9 7.7 12.8 12.7 Jun-15 34.2 16.6 5.9 14.0 7.4 10.6 11.3 Brazil 2 Jun-14 33.1 18.2 9.1 14.4 7.6 9.7 8.0 Jun-13 31.9 21.1 13.2 12.1 7.8
Slide 11: Financial Margin
Financial Margin | Annualized average rate 14.0% 14.1% 14.1% 14.1% 13.1% 12.1% Ex-Securities Impairment 11.1% 11.0% 11.1% 10.8% 10.8% 10.8% 10.9% 10.9% 11.4% 10.5% 10.6% 10.7% 10.8% 10.9% 10.9% 10.8% 11.3% 10.5% 10.4% 10.5% 10.3% 10.0% 10.4% 10.2% 9.8% With CorpBanca 10.2% 9.9% 9.6% 10.0% 7.6% 7.6%
Slide 12: Financial Margin with the Market
Financial Margin with the Market In R$ millions 1,682 1,744 1,711 1,701 1,383 1,213 2,276 829 899 1,871 1,737 1,561 1,520 1,269 1,083 1,018 2,069 1,907 1,365 1,615 1,228 974 1,152 1,068 207 293 109 (36) 196 117 122 (50) 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Financial Margin with the Market - Brazi
Slide 13: Credit Quality: 90-day NPL Ratio
Credit Quality 90-day NPL Ratio - Consolidated - % 5.6 5.6 5.2 4.9 4.6 4.3 4.4 4.5 4.0 3.8 3.7 3.8 3.9 3.6 3.4 3.3 3.6 4.8 4.8 4.4 4.2 3.9 3.5 3.6 3.3 3.2 3.2 3.5 3.1 3.0 2.9 2.8 3.0 3.0 0.8 0.9 0.8 0.8 0.9 1.1 1.1 1.1 1.2 1.1 1.1 1.1 0.7 0.7 0.7 0.8 0.7 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec
Slide 14: Credit Quality: 90-day NPL Ratio - Brazil
Credit Quality 15 to 90-day NPL Ratio - Brazil 1 - % 7.8 7.5 7.0 6.6 6.2 5.6 5.1 4.8 4.9 4.8 4.2 4.3 4.4 4.3 4.2 4.2 4.3 3.9 4.2 4.2 4.2 3.8 3.8 3.9 3.6 3.6 3.6 4.4 3.2 3.6 3.4 3.3 4.1 3.2 3.1 3.1 3.8 2.9 3.0 3.2 Consolidated 2 2.8 3.4 3.1 3.2 3.1 3.2 3.0 2.9 2.7 2.6 2.6 2.6 2.3 1.9 1.4 1.5 1.2 0.7
Slide 15: Credit Quality: NPL Ratio and NPL Creation
Credit Quality 90-day NPL Ratio and 90-day NPL Ratio Excluding Fully Provisioned Credits - Brazil (%) 5.2 4.9 4.9 5.4 5.8 6.0 5.9 4.8 2.0 1.8 1.9 2.2 2.4 2.4 2.3 2.3 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Individuals Individuals (ex-Fully Provisioned Credits) 2.8 3.0 2.1 2.0 2.1 2.5
Slide 16: Renegotiated Loan Operations
Renegotiated Loan Operations Total Renegotiated Portfolio | Breakdown by Days Overdue 1 (in R$ billion) (Data prior to June/16 do not include CorpBanca) Brazil 2 Days overdue: 22.3 22.7 measured at the moment of renegotiation 21.9 23.0 22.7 24.1 20.0 3 17.4 19.4 0.2 0.4 1.4 Latin America 16.6 0.1 0.
Slide 17: Provision for Loan Losses by Segment
Provision for Loan Losses by Segment In R$ million 7,824 772 6,366 6,337 5,714 5,768 5,997 383 396 4,865 4,828 358 392 399 2,728 1,295 1,362 1,546 323 338 1,892 1,629 915 1,112 4,302 4,621 4,323 4,395 3,628 3,378 3,464 3,747 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Retail Banking - Brazil Wholesale B
Slide 18: Coverage Ratio (90-days NPL)
Coverage Ratio (90-days NPL) 462% 458% 494% 367% 369% 402% 296% 256% 232% 216% 212% 208% 215% 201% 206% 215% 204% 194% 199% 192% 188% 210% 213% 187% 185% 182% 178% 209% 174% 172% 181% 181% 169% 172% 164% 164% 166% 164% 160% 159% Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Total Total - B
Slide 19: Allowance for Loan Losses by Type of Risk – Brazil
Allowance for Loan Losses by Type of Risk – Brazil 1 In R$ millions Allocation of Allowance for Loan Losses by Type of Risk Regulatory Breakdown 35,185 35,185 33,113 34,859 Expected and/or Complementary Potential Loss Wholesale 8,082 Allowance Related to expected loss in Retail segment 9,650 15,032
Slide 20: Allowance for Loan Losses by Type of Risk – Consolidated
Allowance for Loan Losses by Type of Risk – Consolidated In R$ millions Allocation of Allowance for Loan Losses by Type of Risk Regulatory Breakdown CorpBanca 38,241 38,470 38,470 36,035 2,205 Expected and/or Complementary 1,957 Wholesale 9,714 Allowance Potential Loss Related to expected loss in Re
Slide 21: Provision for Loan Losses and NPL Creation by Segment
Provision for Loan Losses and NPL Creation by Segment Retail Banking - Brazil In R$ billions 110% 102% 102% 102% 105% 96% 97% 100% 3.6 3.9 4.3 4.3 4.6 4.5 4.3 4.3 4.4 4.2 3.3 3.4 3.3 3.5 3.6 3.7 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Provision for Loan Losses NPL Creation Provision for Loan Losses
Slide 22: Commissions & Fees and Result from Insurance
Commissions & Fees and Result from Insurance In R$ millions 2Q16 1Q16 change 2Q15 change 1H16 1H15 change Asset Management ¹ 741 684 57 8.4% 645 96 14.9% 1,425 1,264 160 12.7% Current Account Services 1,596 1,545 51 3.3% 1,311 285 21.7% 3,141 2,662 478 18.0% Credit Operations and Guarantees Provided
Slide 23: Non-Interest Expenses
Non-Interest Expenses In R$ millions 2Q16 1Q16 change 2Q15 change 1H16 1H15 change Personnel Expenses (4,609) (4,359) (250) 5.7% (3,997) (612) 15.3% (8,967) (8,183) (784) 9.6% Administrative Expenses (3,993) (3,694) (299) 8.1% (3,982) (11) 0.3% (7,687) (7,608) (79) 1.0% Personnel and Administrative
Slide 24: Efficiency Ratio and Risk-Adjusted Efficiency Ratio
Efficiency Ratio and Risk-Adjusted Efficiency Ratio Efficiency Ratio - Consolidated 63.1 62.7 62.3 62.6 63.4 65.6 67.2 47.3 46.1 45.0 44.5 44.4 44.5 45.3 62.0 63.1 62.1 63.1 65.1 72.2 68.6 46.9 43.7 43.2 44.3 46.3 44.0 46.7 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Quarterly Efficiency Ratio (%) Quarterly
Slide 25: Core Capital Ratio (Common Equity Tier I)
Core Capital Ratio (Common Equity Tier I) Changes in the Core Capital Ratio -0.1% 1.7% -0.7% 0.3% -1.4% 14.3% 0.7% 14.8% Common Equity 2Q16 Net Income Dividends and Minority Interests Goodwill and Decrease of Tax RWA and Other Common Equity Tier I (CET I) Mar-16 other changes in Intangible Assets Cr
Slide 26: 2016 Forecast
2016 Forecast Main reasons for the forecast review: • Change on Brazilian GDP expectation for 2016, from -2.5% to -3.5%; • Change on Exchange rate (end of period) expectation, from R$4.50 to R$3.25; • Itaú CorpBanca’s consolidation. Consolidated Brazil 1 Previous Reviewed Previous Reviewed Total Cre
Slide 27: Board of Directors proposes bonus in shares of 10%
Board of Directors proposes bonus in shares of 10% Since 2013, we issue 10% bonus in shares every year. Each shareholder will be granted one new The proposal assumes a cost attributed share for each ten of the same type (ITUB3, to the bonus shares, which can ITUB4 e ITUB) held. generate tax gains fo
Slide 28: Conference Call Audio – New Technology
Conference Call Audio – New Technology From this quarter, we have adopted a more modern technology for webcasts. To participate, we recommend the following browsers: Internet Explorer, version 9 or above; Google Chrome; Mozilla Firefox; or mobile browsers (IOS 8, or above, and Android 3.0, or above)
Slide 29: 2nd quarter 2016 – Earnings Review Conference Call
2 nd quarter 2016 – 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
Itau Unibanco Holding — Q2 2016 Earnings Presentation on 6ix