Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q4 2019 Earnings Presentation
162 slides from Itau Unibanco's earnings presentation, Feb 11, 2020
Slide 1: Announcement to the Market – 4Q19 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. th 4 Quarter 2019 Result Itaú Unibanco Holding S.A. (“Company”) announces to its stockholders and the market at large that the Complete Fin
Slide 2: Attachment 01
fls.2 Attachment 01 fls.2 Attachment 01
Slide 3: 4Q19 Institutional Presentation
4Q19 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 CDP NYSE BM&FBOVESPA4Q19 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 CDP NYSE BM&FBOVESPA
Slide 4: Forward-looking statements
4Q19 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 10 fronts Our 33 businesses Corporate 55 governance Capital and 64 risk management Highlights 77 of the results Additional 93 informationAgenda Corporate 04 profile Strategic 10 fronts Our 33 businesses Corporate 55 governance Capital and 64 risk management High
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$89.8 bn R$1,738.7 bn R$706.7 bn 23.7% R$7.3 bn 14.4% 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 Principal voluntary commitments We believe that people 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 financing and services
Slide 12: Strategic fronts
Strategic fronts 10Strategic fronts 10
Slide 13: 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 14: 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 15: Client Centricity: satisfaction and NPS
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 Our actions, including digital transformation and the efforts involving people management, are designed for our clients’ creat
Slide 16: Continuous updates for a better experience
Strategic fronts Client Centricity Continuous updates for a better experience APP PERSONNALITÉ Our apps are among 4.7 the best rated in 4.4 app stores APP ABRE CONTA App Store Play Store APP ITAÚ 1st bank offering bank account opening (INDIVIDUALS) by mobile phone 4.5 4.7 4.7 4.7 APP LIGHT 1st bank
Slide 17: Client Centricity: investment recommendations
Strategic fronts Client Centricity¹ 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, acc
Slide 18: 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 19: 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 17Strate
Slide 20: Examples of the new way we design products
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 21: Digital Transformation: Cubo and startups
Strategic fronts Digital Transformation + speed to extend our digital offer 1,031 80+ projects 13 floors residents between the bank (120 startups) + rooftop and Cubo startups Cubo is the largest startups 512 hub for technological members entrepreneurship promotion in 215,000+ ft2 Latin America. 2,00
Slide 22: New work methods lead to superior results
Strategic fronts Digital Transformation New work methods lead to superior results Technology solutions Higher value Greater number of solutions delivered Higher financial return attained 24% 100% 2018 2018 2019 2019 Higher productivity Unavailability Clients who had problems on the mobile and intern
Slide 23: Data: the bank's new capital
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 24: Analytics: listening to 360,000 calls every day
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: Focus on efficiency while investing in technology
Strategic fronts Digital Transformation Focus on efficiency while continually investing in technology Technology investments 15% 215 Inflation (IPCA) accumulated in the 154 period 130 122 100 109 108 106 101 100 47.6 46.4 45.3 45.5 43.7 2016 2017 2018 2019 2020 (E) Efficiency Ratio (%) Non-interest
Slide 26: People Management
Strategic fronts People Management¹ By region By age bracket Approximately 8,2 k people 8.6% North > 50 years 95 thousand 1% 50,3 k people Northeast 5% 52.8% 30-50 years Center-West Employees² 4% 36,7 k people 10% Southeast 38.6% up to 30 years in Brazil and overseas 72% South Overseas 8% 14% By gen
Slide 27: People Management: employee experience
Strategic fronts People Management¹ Employee’s An innovative and inspiring environment. Is Itaú Unibanco a experience good place to work? VoU cOmO sOu In our employees’ eyes² Our challenge is to be Rendering our dress code flexible, respecting our employees and our strategic agenda. increasingly att
Slide 28: People Management: recognition and compensation
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 29: 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 30: 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 31: How does the bank generate value?
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 32: Strict 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 100,335 Dec-18 5,454 • Revie
Slide 33: 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 34: Internationalization: digital transformation
Strategic Fronts Internationalization¹ Digital transformation % Acquisition Digital Current Accounts Implantation of Digital Branches (Individual clients) Argentina Paraguay Uruguay 2018 2019* 3% 34% Digital Our clients and operations (internet/ mobile) are increasingly digital in * Accounts opened
Slide 35: Our Business
Our Business 33Our Business 33
Slide 36: 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 over R$4 billion or >R$750 million debt Private Bank >R$5 million in tot
Slide 37: Retail Banking
Our business Retail Banking Main Main Serving a client base of over initiatives 2019 Results 4Q19 55 million clients Itaucard Click - zero annuity Net income Our distribution network comprises¹ R$ 3.6 billiion credit card 4,011 BRANCHES AND CSBs IN BRAZIL 3 % 8 % 7 % 67 % 15 % Northeast Southeast So
Slide 38: 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 39: Wholesale Banking
Our business Wholesale Banking Main Main Approximately products and services Results 4Q19 35,000 corporate groups and Credit solutions Net National and foreign currency 6,000 institutional clients R$2.0 billion income Service solutions Our sales channels reach institutional clients in 18 R$39.1 bn f
Slide 40: 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 83.1 81.0 74.9 73.8 74.7 72.7 The paroll loans prtfolio accounts for 59% of total 70.5 70.2 we
Slide 41: Mortgage Loans
Our business $ Mortgage Loans Client focused Products and sales channels Mortgage loans portfolio (In %) (In R$ billion) Quick and efficient process with + 4.6 % credit analysis in up to one hour for vs Dec-17 23% operations of up to R$800,000 45.6 47.1 48.6 47.8 48.1 47.6 48.3 49.2 50.3 31% 9% 16%
Slide 42: Mortgage Loans: loan to value and vintage
Our business $ Mortgage Loans¹ Loan to Value (Em %) Vintage (quartely average) 62.1% 59.7% 58.4% 57.3% 55.3% 54.9% 54.6% 54.5% 54.7% + 3.7 p.p vs Dec-18 41.6% 41.8% 41.8% 40.9% 40.2% Mortgage Loan Portfolio 39.9% 38.7% 38.7% 38.6% - 0.2 p.p. vs Dec-18 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18
Slide 43: Vehicles
Our business $ Vehicles Loan portfolio by client profile Contracting (In R$ billion) 39.1% § 12 thousand sales points; 37 thousand 28.1 § Sale of light and heavy vehicles: Contracts/month 24.2 23.2 20.2 9.1 20.3 4.3 18.3 16.7 17.8 6.0 16.4 • 74% of contracts are made in stores and dealers; 3.6 4.3 2
Slide 44: Vehicles: iCarros Portal
Our business $ Vehicles iCarros Portal Main products and services § 20MM access/month§ 84% mobile Evolution of financing proposals on the iCarros platform: 700 Facial Recognition 11 1 iCarros Simple and safe contracting process.. 521 Vehicle Marketplace with technological solutions, that brings buye
Slide 45: 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 46: Credit Card Transaction Volume
Our business Credit Card Transaction Volume 4Q19 150,490 Total 22%¹ 133,276 131,700 R$150.5 billions 37,740 of total sales are carried 31,988 34,055 + 12.9% (vs. 3Q19) Debit +14.3% (vs. 4Q18) out using digital channels Credit 112,751 101,289 97,645 + 11.3 % (vs. 3Q19) 46.7%² em 3Q19 Credit +15.5 % (
Slide 47: Credit Card: digital sales and credit models
Our business Credit Card Need How to provide clientes 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 48: Acquiring services
Our business Acquiring services Transaction Volume Our brands 4Q19 141,862 127,193 Total 118,877 R$141.9 billions 51,362 46,057 + 19.3% (vs. 3Q19) Debit 42,242 + 11.5% (vs. 4Q18) More than de credit 25 brands 90,499 81,136 76,636 + 18.1% (vs. 3Q19) Credit accepted by Rede + 11.5% (vs. 4Q18) machines
Slide 49: Insurance
Our business Insurance We offer a wide range of insurance products related to life, personal accidents, vehicles and property credit and travel. Our insurance core activities, which include our 30% interest in Porto Seguro, consist of mass-market insurance products related to life and property, and
Slide 50: Insurance Open Platform
Our business Insurance | Insurance Open Platform Benefits Multi-channel Broker Products Offered Sales Force Vehicles Insurance consultants + Life Insurance Shop Multi-channel distribution Manager Health (Companies) Focused on commissions and fees Cashier Full Life Internet Banking/Mobile Credit Life
Slide 51: Pension plan
Our business Pension plan Open platform Reasons to invest: Concept 1,3,6,9: How much does the client have to save to enjoy a peaceful retirement? 1 5 Retirement Financial return Funds carefully selected Years of salary accumulated Age always keeping the cliente in Future expenses 2 Enable easy 135 m
Slide 52: Services | Investments
Our business Services | Investments Main products Treasury Direct Funds Fixed income Equities Real Estate Funds COE Savings Pension Plan Zero-fee products: Variable Income Pension Plan Real Estate Fund Treasury Direct Fixed Income Zero custody fee Zero initial and Zero custody fee Zero brokerage and
Slide 53: Services | Investment Open Platform
Our business Services | Investment Open Platform Third-party products offered Volume of third-party products distributed R$ Billion Funds Fixed income 197 • Fixed Income • CDB • LCI 14 43.9% • Multimarket • CRI • LCA 137 • Shares • CRA • Debentures Fixed Income • Pension Plan 13 183 13.8% 125 Funds
Slide 54: Services | Wholesale Banking: Investment Banking
Our business Services | Wholesale Banking Investment Banking Middle Leadership position and client recognition Annual revenues from R$ 30 million to R$ 200 million Fixed income Focused on clientes with the highest ratings, and 93% of In 2019, we maintained the leadership in the distribution ranking
Slide 55: 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 Administration Local Custody: we ended December with R$1,497.7 billion under custody (+11.4% from the same period of 2018). Inv
Slide 56: Services | Wholesale Banking: Asset Management
Our business Services | Wholesale Banking Asset Management Kinea It is an independent platform of management of differentiated investments. With R$68.5 billion in assets as of December 2019, it operates in the segments of Multi-Markets, Real Estate, Pension Plan and Private Equity, Stock and Infrast
Slide 57: Corporate governance
Corporate governance 55Corporate governance 55
Slide 58: 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 59: 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% 18.57% 36.73% 81.43% Cia. E. Johnston de Participações 66.07% 33.93% ON PN 50.00% 0% 33.47% Itaú Unibanco ITAÚSA Highly diversifi
Slide 60: 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 61: Board of Directors
Corporate governance Board of Directors Our Board of Directors consists of professionals with exceptional knowledge and expertise in different areas of operations, someof the key differentials of our management. Main duties Board of Directors 2 Co-chairmen Committees • Defining and monitoring the st
Slide 62: 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 63: 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 recources; Directors; • Monitoring market, credit and operational risks;
Slide 64: 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 partners and associates program, focused on management members and employees with outstanding performance. Long-term incentives The invest
Slide 65: 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 66: Capital and risk management
Capital and risk management 64Capital and risk management 64
Slide 67: 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 68: Basel III and Capital structure
Capital and risk management Basel III and Capital structure Our current ratio Basel III requirement 15.8% 1.3% Total Capital (11.5% - 14.0%) Tier II 2.0% 1.3 % 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 13.2% 2.5% C
Slide 69: Payout Practice 2019
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 70: 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 71: 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 72: 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 73: How do we establish our risk appetite?
‘ Capital and risk management How do we establish our risk appetite? Risk apetite 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 re
Slide 74: Credit granting process
Capital and risk management Credit granting process Client analysis: nd 2 step: st The client is internally assessed to determine whether its 1 step: environmental and social compliance may be analyzed, Internal check on 01 including clients in the Restricted List and rural clients. non-involvement
Slide 75: 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) 400.4 357.8 127.7% 308.4 212.8% 190.2% 279.6 122.8% 122.2% 171.7% 121.1% 149.1% 213.6 117.5% 4Q15
Slide 76: Cybersecurity: security is non-negotiable
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 a
Slide 77: Climate risk
Capital and risk management Climate risk Climate risk and its variables comprise the analysis of socioenvironmental risk at Itaú Unibanco. This approach places Itaú in astrategic position to ensure the perpetuity of its business and operations in the face of climate change and the consequent impacts
Slide 78: 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 i
Slide 79: Financial Highlights
Financial Highlights 77Financial Highlights 77
Slide 80: Highlights 4Q19
Highlights 4Q19 Credit ¹ Recurring net income Recurring ROE NPL 90 days Consolidated Consolidated Consolidated Consolidated 2.6 % 1.9 % 20 bps 10 bps R$706.7 bn R$7.3 bn 23.7% 3.0% 4Q19 vs. 3Q19 4Q19 vs. 3Q19 4Q19 vs. 3Q19 4Q19 vs. 3Q19 Brazil Brazil Brazil Brazil stable 4.3 % 3.3 % 50 bps R$540.4 b
Slide 81: About our year 2019
About our year 2019 Recurring Recurring R$28.4 billion 23.7 % Consolidated 10.2% Consolidated 1.8 p.p. Net Return on 10.6% 1.9 p.p. Brazil Brazil R$27.0 billion 24.9 % Income Equity (ROE) Commissions, fees and result higher volume of from insurance grew credit (+ 10.9%) and Non-interest expenses in
Slide 82: Macroeconomic outlook 2019
Macroeconomic outlook 2019 1 2 Forecast Actual GDP - Brazil 2.5% 1.2% Below expectation GDP growth but with an increase 3 of 3.6% in private sector investment and of 2.1% in SELIC 6.5% 4.5% consumption. Interest rate ended the year at the lowest historical 4 Inflation 3.9% 4.3% level, boosting deman
Slide 83: Value creation 2019
como foi nosso ano? Value creation 2019 In R$ billions Growth (2019 vs. 2018) Value creation 12.8 38.3% 4.4 9.2 8.3 8.2 119.8 Operating revenues 111.8 111.4 7.6 109.6 109.3 7.1% 93.8 Non-interest expenses 49.4 46.6 47.0 2.5% 50.6 44.4 40.6 2014 2015 2016 2017 2018 2019 81como foi nosso ano? Value cr
Slide 84: Guidance: Total credit portfolio
Guidance: Total credit portfolio Actual 8.0% 11.0% Credit by client profile or product Consolidated 10.9 % 2019 Brazil 14.1 % 8.0% 11.0% In R$ billions 2019 2018 Credit origination ¹ 2019 vs. 2018 Individuals 239.8 211.3 13.5% Credit card loans 90.9 77.5 17.4% Personal loans 34.6 29.2 18.2% Individu
Slide 85: Guidance: Financial margin with clients
Guidance: Financial margin with clients Actual 9.0% 12.0% Financial margin with clients Consolidated 8.6 % 2019 Brazil 9.1 % 9.0% 12.0% Annualized average rate -30 bps -30 bps Brazil Consolidated seasonality seasonality 12.2% 12.1% 12.2% 12.2% 12.1% 12.0% 11.9% 11.8% 10.0% 10.0% 10.0% 10.0% 9.9% 9.9
Slide 86: Guidance: Financial margin with the market
Guidance: Financial margin with the market Actual R$4.6 bn R$5.6 bn Financial margin with the market Consolidated R$5.6 bn 2019 Brazil R$3.8 bn R$3.6 bn R$4.6 bn In R$ billions Year 1.6 1.5 1.5 1.4 1.4 1.4 1.4 1.3 5.6 5.5 1.2 0.3 1.7 3.8 3.7 1.6 1.1 1.5 1.4 0.1 1.3 1.3 1.2 1.3 0.2 1.1 1.3 1.0 0.7 0.
Slide 87: Guidance: Cost of credit
Guidance: Cost of credit Actual R$14.5 bn R$17.5 bn Cost of credit and credit quality Consolidated R$18.2 bn 2019 Brazil R$15.5 bn R$12.5 bn R$15.5 bn Cost of credit¹ Coverage ratio (90-day NPL - %) In R$ billions 3.3% 2.7% 2.7% 2.3% 2.5% 2.4% 2.6% 229% 2.9% 208% 208% 208% 18.2 5.8 4.0 4.5 3.8 14.1
Slide 88: Guidance: Cost of credit analysis
Guidance: Cost of credit Actual R$14.5 bn R$17.5 bn como foi nosso ano? Cost of credit Consolidated R$18.2 bn 2019 Brazil R$15.5 bn R$12.5 bn R$15.5 bn In R$ billions 2019 vs. 2018 Analysis of 6.5% 15.2% 2.1% 5.2% 29.1% cost of credit growth 18.2 0.7 0.3 2.1 0.9 14.1 2018 Latin America Portfolio gro
Slide 89: Retail bank – cost of credit and quality
como foi nosso ano? Retail bank – cost of credity and quality 2019 economic contraction 8.0 7.9 7.7 7.6 7.4 7.2 7.2 6.9 6.7 6.6 6.6 6.6 6.6 6.4 6.5 6.4 6.4 6.3 6.2 6.2 6.4 6.4 6.1 6.3 6.1 5.8 5.7 5.6 5.6 5.3 5.1 4.8 5.0 5.0 4.9 4.8 4.7 4.7 4.6 4.6 17.6 17.3 17.0 17.2 16.6 16.1 16.4 15.9 15.2 15.6 14
Slide 90: Guidance: Services and insurance
Guidance: Services and insurance Actual 2.0% 5.0% Fee income and result from insurance operations Consolidated 5.9 % 2019 Brazil 6.3 % 2.0% 5.0% In R$ billions Issuer 2019 2018 Client base 8% 6% Total payment 2019 vs. 2018 volume Credit and debit cards 13.0 13.4 -3.1% Individual Credit 15.0% account
Slide 91: Guidance: Non-Interest expenses
Guidance: Non-Interest expenses Actual 3.0% 6.0% como foi nosso ano? Non- Interest expenses Consolidated 2.5 % 2019 Brazil 3.0 % 3.5% 6.5% In R$ billions 2019 2018 48.7 Personnel (22.1) (21.3) 4.0% 46.3 46.2 45.5 Efficiency 44.0 ratio quarterly - % Administrative (16.8) (16.7) 0.7% 4Q18 1Q19 2Q19 3Q
Slide 92: Guidance 2019
Guidance 2019 Consolidated Brazil ¹ Expected Actual Expected Actual 8.0% 11.0% 8.0% 11.0% Total credit portfolio ² 10.9% 14.1% 9.0% 12.0% 9.0% 12.0% Financial margin with clients 8.6% 9.1% R$3.6 bi R$4.6 bn R$5.6 bn R$4.6 bi Financial margin with the market R$5.6 bn R$3.8 bn R$14.5 bn R$17.5 bn R$12
Slide 93: Macroeconomic outlook 2020
Macroeconomic outlook 2020 2019 2020(E) 1 GDP – Brazil 1.2% 2.2% Economic activity in Brazil continues to recover. SELIC (end of the period) 4.50% 4.25% Government spending remains under control. Benign inflation makes room for low interest SELIC (year average) 5.96% 4.27% rate. Growth is expected t
Slide 94: Guidance 2020
Guidance 2020 Consolidated Brazil ¹ Total credit portfolio ² 8.5% 11.5% 10.5% 13.5% Financial margin with clients 0.0% 3.0% 1.5% 4.5% Financial margin with the market R$5.7 bn R$6.7 bn R$3.8 bn R$4.8 bn Cost of credit ³ R$18.5 bn R$22.0 bn R$17.1 bn R$20.1 bn 4 Commissions and fees and results from
Slide 95: Additional Information
Additional Information 93Additional Information 93
Slide 96: Corporate profile Additional Information
Corporate profile Additional Information 94Corporate profile Additional Information 94
Slide 97: A History of Successful Strategic Deals
Additional Information A History of Successful Strategic Deals 1 Acquisition of the remaining 50% of: Uruguai Varejo - Brasil NACIONAL Acquisition of the Banco Itaú BMG Consignado minority interest of: Casa Moreira Salles Acquisition of a minority interest in: 1924 Unibanco 1995 - 1998 2000 - 2003 2
Slide 98: Capital and risk management Additional Information
Capital and risk management Additional Information 96Capital and risk management Additional Information 96
Slide 99: Capital Ratios (BIS)
Additional Information Capital Ratios (BIS) | Prudential Conglomerate ¹ 4Q19 3Q19 In R$ millions, end of period Core Capital 117,328 113,235 Tier I (Core Capital + Additional Capital) 128,696 124,856 Referential Equity (Tier I and Tier II) 140,596 136,755 Total Risk-weighted Exposure (RWA) 891,300 8
Slide 100: 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 101: Financial Highlights Additional Information
Financial Highlights Additional Information 99Financial Highlights Additional Information 99
Slide 102: Segments – Income Statement Pro Forma 4Q19
Additional Information Segments – Income Statement Pro Forma 4Q19 Activities with the Retail Banking Wholesale Banking Itaú Unibanco Market + Corporation In R$ millions 20,965 8,451 2,417 31,833 Operating Revenues 12,452 4,787 2,201 19,439 Managerial Financial Margin 12,452 4,787 894 18,132 Financia
Slide 103: Income Statement | Operating Revenues Perspective
Additional Information Income Statement | Operating Revenues Perspective DD D' In R$ millions 4Q19 3Q19 4Q18 2019 2018 31,833 30,257 5.2% 28,471 11.8% 119, 111, 790 7. 817 1% Operating Revenues Managerial Financial Margin 19,439 19,071 1.9% 17,382 11.8% 74,630 69,084 8.0% Financial Margin with Clien
Slide 104: Results – Brazil and Latin America
Additional Information Results – Brazil and Latin America 2019 2018 D Latin Latin Latin 1 1 1 Consolidated America Consolidated America Consolidated America Brazil Brazil Brazil In R$ millions (ex-Brazil) (ex-Brazil) (ex-Brazil) Operating Revenues 87,957 79,143 8,815 83,345 75,070 8, 275 5.5% 5.4% 6
Slide 105: Business Model
Additional Information Business Model 2019 2018 Δ Insurance Excess Insurance Excess Insurance Excess Consolidated Credit Trading Consolidated Credit Trading Consolidated Credit Trading & Services Capital & Services Capital & Services Capital Operating Revenues 63.7 1.5 53.3 1.4 56.9 1.6 51.5 1.7 6.8
Slide 106: Credit Portfolio by Product
Additional Information Credit Portfolio by Product 4Q19 3Q19 D 4Q18 D In R$ billions, end of period 1 239.0 229.0 4.4% 210.4 13.6% Individuals - Brazil 90.9 83.3 9.1% 77.5 17.4% Credit Card 33.7 33.4 0.9% 28.2 19.4% Personal Loans 2 49.4 49.3 0.1% 46.7 5.8% Payroll Loans 19.0 18.0 5.6% 15.9 19.3% Ve
Slide 107: Credit Portfolio by Currency
Additional Information Credit Portfolio by Currency ¹ Dec-19 232.8 417.0 649.7 Sep-19 240.0 401.7 641.7 Jun-19 228.3 389.3 617.6 Mar-19 224.5 384.5 609.0 Dec-18 219.5 379.1 598.6 Sep-18 233.4 366.7 600.1 Jun-18 588.6 223.5 365.1 Mar-18 197.9 368.4 566.4 Dec-17 192.4 371.7 564.1 Foreign Currency Loca
Slide 108: Credit Origination and Private Securities Issuance
Additional Information Credit¹ Origination and Private Securities Issuance | Brazil Base 100 = 4Q18 and 2018 Total Credit2 – Brazil Credit2 - Individuals 24% 27% 26% 10% -1% 23% 126 124 112 129 127 100 100 123 100 100 4Q18 3Q19 4Q19 2018 2019 4Q18 3Q19 4Q19 2018 2019 Credit2 – Very Small, Small and
Slide 109: Credit Portfolio Breakdown, Companies
Additional Information Credit Portfolio Breakdown , Companies Credit Portfolio by Business Sector¹ ² Credit Concentration ¹ R$ million Dec-19 4Q19 3Q19D In R$ billions, end of period Public Sector 3 .8 2.2 74.4% Loan, lease, other credit operations Private Sector 344.3 3 46.3 -0.6% Loan, lease and o
Slide 110: 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. • 62.6% of total origination was created in the past 12 months. 532 576 583 32.7% 34.3% 36.5%
Slide 111: Loan Portfolio Mix Change
Additional Information Loan Portfolio Mix Change ¹ (%) R$ billion Consolidated dez/19 17.9 14.7 3.3 15.6 5.8 7.9 8.5 26.4 Dec-19 24.4 20.0 4.4 21.2 7.8 10.7 11.5 Dec-18 26.8 17.9 4.2 20.4 7.4 11.0 12.3 2 Brazil Dec-17 30.0 16.7 3.9 18.7 7.1 11.1 12.4 Dec-16 33.4 16.2 4.2 16.2 7.1 10.5 12.3 Dec-15 37
Slide 112: 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 5.8% 5.0% 5.0% 4.7% 4.6% 4.5% 4.2% 4.1% 3.7% 3.6% 3.4% 3.5% 3.3% 3.1% 3.2% 3.0% 2.9% 7,824 6,337 6,366 6,169 5,823 5,392 772 6,145 4,948 4,483 4,111 4,282 4,271 383 396 4,922 412 757 4
Slide 113: Allowance for Loan Losses by Risk
Additional Information Allowance for Loan Losses by Risk– Consolidated R$ million Allocation of Total Allowance by Type of Risk -Consolidated Dec-19 11,523 10,828 17,396 39,747 Sep-19 11,213 10,123 13,141 34,477 Dec-18 10,335 10,399 13,527 34,261 Overdue operations according to the Potential Loss Re
Slide 114: Non Performing Loans Ratios
Additional Information Non Performing Loans Ratios 90-day NPL Ratio| Consolidated (%) 15 to 90-day NPL Ratio | Consolidated - % 4.8 4.2 3.9 3.8 3.7 3.7 3.5 3.5 3.1 3.5 3.4 3.0 3.4 3.2 2.9 2.6 2.8 2.7 2.8 2.6 2.5 3.9 2.6 2.5 2.3 2.3 3.4 2.9 3.2 3.2 3.1 2.7 2.7 3.0 3.0 2.9 2.9 2.9 2.9 2.5 2.6 2.5 2.5
Slide 115: NPL Creation
Additional Information NPL Creation R$ billion 5.3 5.1 5.0 5.0 5.0 4.7 4.4 4.4 3.8 4.4 4.3 3.9 3.6 3.5 3.5 3.5 3.3 3.2 1.2 1.1 1.0 1.1 0.7 0.9 0.5 0.5 0.4 0.1 0.7 0.5 -0.5 0.4 0.4 0.4 0.3 -0.3 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Total Retail Banking - Brazil Whosale Banking - Brazil Latin A
Slide 116: 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 113% 107% 108% 108% 104% 104% 102% 99% 100% 4.5 3.7 3.5 3.6 4.2 3.9 4.3 4.5 4.4 3.5 3.3 3.5 4.0 3.2 3.5 3.5 3.2 3.7 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Wholesale Banking - Brazil
Slide 117: Insurance, Pension Plan and Premium Bonds
Additional Information Insurance, Pension Plan and Premium Bonds In R$ millions 4Q19 3Q19 D 4Q18 D 2019 2018 D Earned Premiums 1,124 1,105 1.7% 1,045 7.6% 4,356 4,055 7.4% Revenues from Pension Plan 35 57 -37.9% 114 -68.9% 267 463 -42.4% Revenues from Premium Bonds 104 113 -8.4% 108 -4.0% 426 444 -4
Slide 118: Balance Sheet – Assets and Liabilities
Additional Information Balance Sheet – Assets and Liabilities R$ million Assets 4Q19 3Q19 4Q18 D'D' Current and Long-term Assets 1,702,123 1,703,925 -0.1% 1,615,235 5.4% Cash and Cash Equivalents 30,367 27,721 9.5% 37,159 -18.3% Short-term Interbank Investments 232,362 274,139 -15.2% 304,747 -23.8%
Slide 119: Funding
Additional Information Funding • Loan Portfolio mainly funded by domestic client funding • Diversified funding base 4Q19 3Q19 4Q18 In R$ millions, end of periodDD 608,991 581,328 4.8% 551,676 10.4% Funding from Clients (A) Demand Deposits 82,306 82,245 0.1% 72,581 13.4% Savings Deposits 144,558 140,
Slide 120: Funding ratio and maturity breakdown
Additional Information Funding Ratio between Loan Portfolio and Funding % Funding (Maturity Breakdown) In days 96.3% 96.0% 96.9% 94.6% 93.3% 91.1% 91.7% 91.8% 91.9% 78.6% 79.0% 77.8% 77.4% 78.2% 76.7% 74.4% 74.5% 76.1% 181-365 R$ billion Over to 365 760 31-180 737 699 6.5% 697 691 688 667 664 665 63
Slide 121: 4Q19 Institutional Presentation
4Q19 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 CDP NYSE BM&FBOVESPA4Q19 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 CDP NYSE BM&FBOVESPA
Slide 122: Attachment 03 (Portuguese only)
fls.3 Attachment 02 (portuguese only) fls.3 Attachment 02 (portuguese only)
Slide 123: Teleconferência com a Imprensa Resultados de 2019
Teleconferência com a Imprensa Resultados de 2019 11/02/2020 Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 BM&FBOVESPA NYSE 1Teleconferência com a Imprensa Resultados de 2019 11/02/2020 Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO
Slide 124: Iniciativas estratégicas
Iniciativas estratégicas Centralidade no Cliente Correntistas pessoas físicas¹ (MM) 21,2 NPS NPS NPS NPS NPS 19,7 18,4 18,0 Global Banco de varejo Banco de atacado Cartões + Aberturas Dez/19 vs. Ago/18 Dez/19 vs. Ago/18 Dez/19 vs. Ago/18 Dez/19 vs. Ago/18 Dez/19 vs. Ago/18 4,0 3,3 2,8 9 pontos 8 pon
Slide 125: Como foi nosso ano? 2019
Como foi nosso ano? 2019 Consolidado 23,7 % Consolidado 1,8 p.p. R$ 28,4 bilhões 10,2% Retorno sobre o Lucro líquido patrimônio (ROE) Brasil 1,9 p.p. Brasil 24,9 % 10,6% R$ 27,0 bilhões recorrente recorrente Maior volume de crédito Receitas de serviços e Despesas não decorrentes ( +10,9% ) e melhor
Slide 126: Projeções 2019
Projeções 2019 Consolidado Brasil ¹ Realizado Expectativa Realizado Expectativa 8,0% 11,0% 8,0% 11,0% Carteira de crédito total ² 14,1% 10,9% 9,0% 12,0% 9,0% 12,0% Margem financeira com clientes 8,6% 9,1% R$ 3,6 bi R$ 4,6 bi R$ 4,6 bi R$ 5,6 bi Margem financeira com o mercado R$ 5,6 bi R$ 3,8 bi R$
Slide 127: Cenário macroeconômico 2020
Cenário macroeconômico 2020 2019 2020(E) 1 PIB – Brasil 1,2% 2,2% Atividade econômica no Brasil segue em recuperação. SELIC (final do ano) 4,50% 4,25% Mantido o controle de gastos públicos. Inflação benigna mantém espaço para SELIC (média do ano) 5,96% 4,27% juros baixos. Crescimento deve acelerar p
Slide 128: Projeções 2020
Projeções 2020 Consolidado Brasil ¹ Carteira de crédito total ² 8,5% 11,5% 10,5% 13,5% Margem financeira com clientes 0,0% 3,0% 1,5% 4,5% Margem financeira com o mercado R$ 5,7 bi R$ 6,7 bi R$ 3,8 bi R$ 4,8 bi Custo do crédito³ R$ 18,5 bi R$ 22,0 bi R$ 17,1 bi R$ 20,1 bi 4 Receita de prestação de se
Slide 129: Compromissos de impacto positivo
Compromissos de impacto positivo Incorporamos 8 compromissos de impacto positivo em nossos negócios, cada um deles com indicadores específicos, mensuráveis e reportáveis. Compromissos de impacto positivo Metas e desafios Principais parceiros Inclusão e Aumentar o volume de crédito para pequenas e mé
Slide 130: Teleconferência com a Imprensa Resultados de 2019
Teleconferência com a Imprensa Resultados de 2019 11/02/2020 Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 BM&FBOVESPA NYSE 8Teleconferência com a Imprensa Resultados de 2019 11/02/2020 Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO
Slide 131: Attachment 04
fls.4 Attachment 03 fls.4 Attachment 03
Slide 132: Itaú Unibanco's loan portfolio grows 10.9% and lifts fourth quarter 2019 profits
Itaú Unibanco’s loan portfolio grows 10.9% and lifts fourth quarter 2019 profits Record profits in investment banking and in fund management also contributed to a recurring net income of R$7.3 billion in the period São Paulo, February 10, 2020 – The improvement in the economic scenario contributed 1
Slide 133: current levels of interest rates practiced “In 2019, we took some important steps in
current levels of interest rates practiced “In 2019, we took some important steps in Brazil and with the aim of increasing towards revising processes, the investor returns. optimization of expenditures and engagement of our managers and Non-interest expenses were R$13.0 employees in the quest for ef
Slide 134: Attachment 05
fls.5 Attachment 04 fls.5 Attachment 04
Slide 135: Conference call 2019 Earnings review
Conference call 2019 Earnings review Candido Botelho Bracher President and CEO Milton Maluhy Filho Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Finance Director and Head of Investor Relations Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 BM&FBOVESPA NYSE 1Conference call 2019
Slide 136: Strategic initiatives
Strategic initiatives 2Strategic initiatives 2
Slide 137: Strategic initiatives: Customer centricity
Strategic initiatives Customer centricity Individual account holders¹ (MM) 21.2 Global Retail Banking Wholesale Banking Cards 19.7 18.4 18.0 NPS NPS NPS NPS NPS + openings Dec-19 vs. Aug-18 Dec-19 vs. Aug-18 Dec-19 vs. Aug-18 Dec-19 vs. Aug-18 Dec-19 vs. Aug-18 4.0 3.3 2.8 9 points 8 points 8 points
Slide 138: Positive impact commitments
Positive impact Compromissos commitment de imp s acto positivo We embedded 8 positive impact commitments into our core businesses, each one with specific, measurable and disclosable indicators Positive impact positivo em commitments Challenges and targets Main partners Inclusion and Increase the cre
Slide 139: About the quarter
th About the 4 quarter of 2019 5th About the 4 quarter of 2019 5
Slide 140: Highlights 4Q19
Highlights 4Q19 Recurring net income Recurring ROE Credit ¹ NPL 90 days Consolidated Consolidated Consolidated Consolidated 2.6 % 1.9 % 20 bps 10 bps R$706.7 bn R$7.3 bn 23.7% 3.0% 4Q19 vs. 3Q19 4Q19 vs. 3Q19 4Q19 vs. 3Q19 4Q19 vs. 3Q19 Brazil Brazil Brazil Brazil stable 50 bps 4.3 % 3.3 % R$540.4 b
Slide 141: About 2019
About 2019 7About 2019 7
Slide 142: About our year 2019
About our year 2019 Recurring Recurring Consolidated R$28.4 billion Consolidated 23.7 % 10.2% 1.8 p.p. Net Return on Brazil 10.6% Brazil 1.9 p.p. R$27.0 billion 24.9 % Income Equity (ROE) higher volume of Commissions, fees and result credit (+ 10.9%) and from insurance grew Non-interest expenses bet
Slide 143: Macroeconomic outlook 2019
Macroeconomic outlook 2019 1 2 Forecast Actual GDP - Brazil 2.5% 1.2% Below expectation GDP growth but with an increase 3 of 3.6% in private sector investment and of 2.1% in SELIC 6.5% 4.5% consumption. Interest rate ended the year at the lowest historical 4 Inflation 3.9% 4.3% level, boosting deman
Slide 144: Value creation 2019
como foi nosso ano? Value creation 2019 In R$ billions Growth (2019 vs. 2018) Value creation 12.8 38.3% 4.4 9.2 8.3 8.2 119.8 Operating revenues 111.8 111.4 7.6 109.6 109.3 7.1% 93.8 Non-interest expenses 49.4 47.0 46.6 2.5% 50.6 44.4 40.6 2014 2015 2016 2017 2018 2019 10como foi nosso ano? Value cr
Slide 145: Guidance: Total credit portfolio
Guidance: Total credit portfolio Actual 8.0% 11.0% Credit by client profile or product Consolidated 10.9 % 2019 Brazil 14.1 % 8.0% 11.0% In R$ billions 2018 2019 Credit origination ¹ 2019 vs. 2018 Individuals 239.8 211.3 13.5% Credit card loans 90.9 77.5 17.4% Personal loans 34.6 29.2 18.2% Individu
Slide 146: Guidance: Financial margin with clients
Guidance: Financial margin with clients Actual 9.0% 12.0% Financial margin with clients Consolidated 8.6 % 2019 Brazil 9.1 % 9.0% 12.0% Annualized average rate -30 bps -30 bps Brazil Consolidated seasonality seasonality 12.2% 12.1% 12.1% 12.2% 12.2% 12.0% 11.9% 11.8% 10.0% 10.0% 10.0% 9.9% 10.0% 9.9
Slide 147: Guidance: Financial margin with the market
Guidance: Financial margin with the market Actual R$4.6 bn R$5.6 bn Financial margin with the market Consolidated R$5.6 bn 2019 Brazil R$3.8 bn R$3.6 bn R$4.6 bn In R$ billions Year 1.6 1.5 1.5 1.4 1.4 1.4 1.4 1.3 5.6 1.2 5.5 0.3 1.7 3.8 3.7 1.6 1.5 1.4 1.1 0.1 1.3 1.3 1.2 1.3 0.2 1.1 1.3 1.0 0.7 0.
Slide 148: Guidance: Cost of credit
Guidance: Cost of credit Actual R$14.5 bn R$17.5 bn Cost of credit and credit quality Consolidated R$18.2 bn 2019 Brazil R$15.5 bn R$12.5 bn R$15.5 bn Cost of credit¹ Coverage ratio (90-day NPL - %) In R$ billions 3.3% 2.7% 2.7% 2.3% 2.5% 2.4% 2.6% 229% 2.9% 208% 208% 208% 18.2 5.8 4.5 4.0 3.8 14.1
Slide 149: Guidance: Cost of credit analysis
Guidance: Cost of credit Actual R$14.5 bn R$17.5 bn como foi nosso ano? Cost of credit Consolidated R$18.2 bn 2019 Brazil R$15.5 bn R$12.5 bn R$15.5 bn In R$ billions 2019 vs. 2018 Analysis of 6.5% 15.2% 2.1% 5.2% 29.1% cost of credit growth 18.2 14.1 2018 Latin America Portfolio growth Mix of credi
Slide 150: Retail bank – cost of credit and quality
como foi nosso ano? Retail bank – cost of credit and quality 2019 economic contraction 8.0 7.9 7.7 7.6 7.4 7.2 7.2 6.9 6.7 6.6 6.6 6.6 6.6 6.5 6.4 6.4 6.4 6.3 6.2 6.2 6.4 6.4 6.1 6.3 6.1 5.8 5.7 5.6 5.6 5.3 5.1 4.8 5.0 5.0 4.9 4.8 4.7 4.7 4.6 4.6 17.6 17.3 17.0 17.2 16.6 16.1 16.4 15.9 15.2 15.6 14.
Slide 151: Guidance: Services and insurance
Guidance: Services and insurance Actual 2.0% 5.0% Fee income and result from insurance operations Consolidated 5.9 % 2019 Brazil 6.3 % 2.0% 5.0% In R$ billions Issuer 2019 2018 Client base 8% 6% Total payment 2019 vs. 2018 volume Credit and debit cards 13.0 13.4 -3.1% Individual Credit 15.0% account
Slide 152: Guidance: Non-Interest expenses
Guidance: Non-Interest expenses Actual 3.0% 6.0% como foi nosso ano? Non- Interest expenses Consolidated 2.5 % 2019 Brazil 3.0 % 3.5% 6.5% In R$ billions 2019 2018 48.7 Personnel (22.1) (21.3) 4.0% 46.3 46.2 Efficiency 45.5 44.0 ratio quarterly - % Administrative (16.8) (16.7) 0.7% 4Q18 1Q19 2Q19 3Q
Slide 153: Payout 2019
Payout 2019 2019 Total payout simulation 2019 ROE ROE 23.7% 15.0% 17.5% 20.0% 22.5% 25.0% RWA 9% 5.0% 65% - 70% 70 - 75% 75 - 80% 80 - 85% 85% - 90% RWA 10.0% 40% -45% 45 - 50% 50 - 55% 55 - 60% 60% - 65% The return and growth growth 35% 35% 35 - 40% 40 - 45% 45% - 50% scenario positioned the 15.0%
Slide 154: Guidance 2019
Guidance 2019 Consolidated Brazil ¹ Expected Actual Expected Actual 8.0% 11.0% 8.0% 11.0% Total credit portfolio ² 10.9% 14.1% 9.0% 12.0% 9.0% 12.0% Financial margin with clients 8.6% 9.1% R$3.6 bi R$4.6 bn R$5.6 bn R$4.6 bi Financial margin with the market R$5.6 bn R$3.8 bn R$14.5 bn R$17.5 bn R$12
Slide 155: About 2020
About 2020 21About 2020 21
Slide 156: Macroeconomic outlook 2020
Macroeconomic outlook 2020 2019 2020(E) 1 GDP – Brazil 1.2% 2.2% Economic activity in Brazil continues to recover. SELIC (end of the period) 4.50% 4.25% Government spending remains under control. Benign inflation makes room for low interest SELIC (year average) 5.96% 4.27% rate. Growth is expected t
Slide 157: Guidance 2020
Guidance 2020 Consolidated Brazil ¹ Total credit portfolio ² 8.5% 11.5% 10.5% 13.5% Financial margin with clients 0.0% 3.0% 1.5% 4.5% Financial margin with the market R$5.7 bn R$6.7 bn R$3.8 bn R$4.8 bn Cost of credit ³ R$18.5 bn R$22.0 bn R$17.1 bn R$20.1 bn 4 Commissions and fees and results from
Slide 158: Appendix
Appendix 24Appendix 24
Slide 159: Business model 2019
Business model 2019 In R$ billions 2019 2018 Δ Insurance Excess Insurance Excess Insurance Excess Consolidated Consolidated Consolidated Credit Trading Credit Trading Credit Trading & Services Capital & Services Capital & Services Capital Operating Revenues 63.7 1.5 5 3.3 1.4 5 6.9 1.6 51.5 1.7 6.8
Slide 160: Results 2019
Resultados Results 2019 D'D'D' (1) Revenues from Insurance includes the Revenues from Insurance, Pension Plan and Premium Bonds Operations before Retained Claims and Selling Expenses. (2) Include Tax Expenses (ISS, PIS, COFINS and other) and Insurance Selling Expenses. 26Resultados Results 2019 D'D'
Slide 161: Digital transformation
Digital transformation % of transactions through digital channels Use of Digital Channels ¹ Individuals (in millions) Companies (in millions) 2017 2019 2 Credit 18% 20% 12.5 2 11.1 1.2 Investments 38% 48% 1.1 1.1 9.6 2 Payments 68% 81% 3 Transfers 90% 95% Dec-17 Dec-18 Dec-19 Dec-17 Dec-18 Dec-19 Ne
Slide 162: Conference call 2019 Earnings review
Conference call 2019 Earnings review Candido Botelho Bracher President and CEO Milton Maluhy Filho Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Finance Director and Head of Investor Relations Itaú Unibanco Holding S.A. ITUB LISTED NÍVEL 1 BM&FBOVESPA NYSE 28Conference call 2019
Itau Unibanco Holding — Q4 2019 Earnings Presentation on 6ix