Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q2 2015 Earnings Presentation
23 slides from Itau Unibanco's earnings presentation, Aug 7, 2015
Slide 1: Highlights
Highlights Recurring Net Income R$6.1 Billion 5.6% (2Q15/1Q15) 25.7% (1H15/1H14) Recurring ROE (p.a.) 24.8% 30 bps (2Q15/1Q15) 160 bps (1H15/1H14) 12-month ROE was 24.7% Credit Quality 30 bps (2Q15/1Q15) 10 bps (2Q15/2Q14) 3.3% NPL 90 NPL 15-90: 3.0% 10 bps (2Q15/1Q15) 30 bps (2Q15/2Q14) Financial M
Slide 2: Recurring ROE / Recurring ROA
Recurring ROE / Recurring ROA 20.9% 23.9% 22.6% 23.7% 24.7% 24.7% 24.5% 24.8% 19.7% 20.9% 21.7% 22.8% 23.6% 24.0% 24.4% 24.7% 2.4% 2.6% 2.4% 2.7% 2.9% 3.0% 3.0% 3.2% 1.5% 1.7% 1.6% 1.8% 1.9% 1.9% 1.9% 1.9% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Recurring Return on Average Equity (trailing 12 months
Slide 3: Results
Results In R$ millions 2Q15 1Q15 variation 2Q14 variation 1H15 1H14 variation Operating Revenues 25,339 24,946 3 93 1.6% 22,118 3,221 14.6% 50,285 42,780 7,504 17.5% Managerial Financial Margin 1 6,235 15,963 272 1.7% 1 3,593 2,642 19.4% 32,198 26,081 6,117 23.5% Financial Margin with Clients 1 4,67
Slide 4: Loan Portfolio
Loan Portfolio In R$ millions, end of period 2Q15 1Q15 variation 4Q14 variation 2Q14 variation Individuals 187,318 187,286 0.0% 186,212 0.6% 1 72,441 8.6% Credit Card Loans 56,247 56,331 -0.1% 59,321 -5.2% 53,524 5.1% Personal Loans 30,016 29,822 0.7% 2 8,541 5.2% 28,678 4.7% Payroll Loans 45,517 44
Slide 5: Credit and Trading and Insurance and Services
Credit and Trading and Insurance and Services In R$ billions 2Q15 Consolidated Credit and Trading Insurance and Services Excess Capital 1Q15 Consolidated Credit and Trading Insurance and Services Excess Capital variation Consolidated Credit and Trading Insurance and Services Excess Capital Operating
Slide 6: Financial Margin with Clients Breakdown
Financial Margin with Clients Breakdown Loan Portfolio Mix Change 1 (%) Jun-12 25.5 24.2 15.9 10.3 7.9 6.5 6.4 3.3 Jun-13 27.7 21.3 11.9 11.0 7.1 8.4 7.8 4.9 Jun-14 29.5 18.4 8.2 12.9 6.8 8.3 8.7 7.2 Jun-15 30.0 16.7 5.2 12.3 6.5 10.2 9.3 9.9 Corporate Very Small, Small and Middle Market Vehicles Cr
Slide 7: Net Interest Margin
Net Interest Margin 10.9% 10.9% 10.9% 11.4% 11.2% 11.0% 11.1% 11.3% 9.1% 9.1% 8.9% 9.4% 9.4% 9.7% 9.6% 9.6% 8.3% 9.4% 10.3% 10.8% 10.8% 11.1% 12.1% 13.1% 7.4% 7.9% 7.5% 8.0% 7.9% 7.9% 6.9% 7.2% 6.5% 6.9% 6.6% 7.0% 7.0% 7.3% 6.6% 6.8% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Gross Credit Spread NIM wi
Slide 8: Financial Margin with Market
Financial Margin with Market In R$ millions 495 470 474 628 829 899 1,213 1,383 340 739 614 881 1,083 1,018 1,871 1,561 63 277 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Sale of Cetip/BM and FBovespa Shares Financial Margin with Market (ex-Sale of Shares) 1-year moving average of Financial Margin with
Slide 9: Credit Quality: 90-day NPL Ratio
Credit Quality 15 to 90-day NPL Ratio 6.5% 7.5% 7.2% 7.2% 6.9% 7.9% 7.5% 7.2% 6.3% 6.7% 5.9% 5.4% 4.7% 4.9% 4.6% 4.2% 3.8% 4.1% 4.2% 3.9% 4.7% 4.5% 4.3% 4.4% 4.8% 4.5% 4.2% 3.6% 4.0% 3.4% 3.0% 3.0% 3.0% 2.7% 2.6% 2.5% 2.9% 3.0% 1.7% 2.4% 2.4% 2.1% 2.3% 2.3% 2.2% 1.8% 1.5% 1.9% 1.4% 1.2% 1.5% 1.4% 1.
Slide 10: 90-day Coverage Ratio
90-day Coverage Ratio Total 90-day Coverage Ratio In R$ billions 5.1 5.2 5.2 5.2 5.2 6.3 6.3 6.3 170% 174% 176% 176% 181% 193% 200% 187% 33% 35% 37% 37% 37% 45% 45% 42% 42% 43% 41% 46% 50% 52% 56% 49% 94% 97% 99% 93% 94% 96% 99% 96% Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Complementa
Slide 11: Credit Quality | Companies
Credit Quality | Companies Companies 90-day NPL Ratio 2.3% 2.0% 1.9% 1.8% 1.8% 1.8% 1.8% 2.2% 0.7% 0.6% 0.7% 0.7% 0.7% 0.6% 0.5% 0.6% Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 90-day NPL Ratio 90-day NPL Ratio Excluding Fully Provisioned Credits Companies 90-day NPL Ratio - Breakdown 4
Slide 12: Credit Quality | Individuals
Credit Quality | Individuals Change in the Mix of the Individuals Portfolio in Brazil Mortgage Loans Payroll Loans Vehicles Loans Personal Loans Credit Cards Loans Jun-12 Mix Jun-15 Mix 19% 11% 17% 41% 8% 24% 38%13% 19% 16% 25% 30% - 2,500 bps + 2,200 bps Composition of the Payroll Loans Portfolio i
Slide 13: Credit Quality: Loan Loss Provisions Expenses
Credit Quality Loan Loss Provisions Expenses The transfer of financial assets did not affect the result In R$ billions 4.7% 4.2% 4.1% 4.3% 4.5% 4.2% 4.8% 4.8% 3.4% 2.8% 3.1% 3.1% 3.2% 3.0% 3.9% 3.8% (4.5) (4.2) (4.3) (4.5) (4.7) (4.6) (5.5) (5.5) (3.2) (2.8) (3.2) (3.2) (3.3) (3.3) (4.5) (4.4) 3Q13
Slide 14: Loan Loss Provision Expenses by Segment
Loan Loss Provision Expenses by Segment In R$ millions 603 614 1,113 1,236 2,051 1,773 4,252 4,465 4,741 4,614 5,515 5,520 3,649 3,851 3,628 3,378 3,464 3,747 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 Retail Banking Wholesale Banking Itau Unibanco Holding S.A. 15
Slide 15: Commissions & Fees and Result from Insurance
Commissions & Fees and Result from Insurance In R$ millions 2Q15 1Q15 variation 2Q14 variation 1H15 1H14 variation Asset Management (1) 689 662 27 4.1% 652 37 5.7% 1,351 1,305 47 3.6% Current Account Services 1,368 1,405 ( 36) -2.6% 1,228 1 40 11.4% 2,773 2,366 4 07 17.2% Credit Operations and Guara
Slide 16: Insurance Operations Revenues | Core Activities
Insurance Operations Revenues1 | Core Activities In R$ millions + 11.9% + 1.2% 1,119 1,238 1,252 2Q14 1Q15 2Q15 1 Revenues: Earned Premiums, Net Revenues from Pension Plan and Premium Bonds. Claims Ratio and Combined Ratio Insurance Core Activities 26.4% 24.4% 26.5% 53.0% 55.4% 56.0% 2Q14 1Q15 2Q15
Slide 17: Non-Interest Expenses
Non-Interest Expenses In R$ millions 2Q15 1Q15 variation 2Q14 variation 1H15 1H14 variation Personnel Expenses (4,349) (4,514) 165 -3.7% ( 4,248) (101) 2.4% (8,863) (8,107) (756) 9.3% Administrative Expenses (4,265) (3,927) (338) 8.6% ( 4,105) (160) 3.9% (8,193) (7,831) (362) 4.6% Personnel and Admi
Slide 18: Core Capital Ratio (Common Equity Tier I)
Core Capital Ratio (Common Equity Tier I) Changes in the Core Capital Ratio in the 2Q15 11.6% 0.7% -0.2% 0.3% 0.8% 13.2% Common Equity Tier I (CET I) Mar/15 Net Income 2Q15 Dividends Distribution 2Q15 Decrease in Tax Loss Carryforwards RWA and Other Common Equity Tier I (CET I) Jun/15 Full applicati
Slide 19: Stock Market Performance
Stock Market Performance Market Capitalization (in R$ billions) 175.1 179.6 152.8 150.6 157.0 190.2 186.7 178.8 Net Dividend Yield 1 2.4% 2.2% 2.4% 3.0% 2.8% 3.0% 3.7% 4.1% Price/Earnings 3 13.6 x 11.5 x 9.3 x 9.5 x 9.1 x 8.7 x 8.0 x 7.7 x Average Daily Trading Volume (in R$ millions) 559 650 736 70
Slide 20: 2015 Outlook
2015 Outlook Our expectations for 2015 (reviewed in the 1Q15) were kept unchanged. Total Loan Portfolio 1 Growth of 3.0% to 7.0% Managerial Financial Margin 2 Growth of 14.5% to 17.5% Loan Loss Provision Expenses net of Recoveries Between R$15 billion and R$18 billion Service Fees and Result from In
Slide 21: Strategic Agenda
Strategic Agenda Merger between Banco Itau Chile and Corpbanca o In the end of June 2015, the merger was approved by the shareholders' meetings of both institutions. o This operation is part of our Latin America expansion strategy and will significantly strengthen the Bank's presence in the region,
Slide 22: 2nd quarter 2015 - Earnings Review Conference Call
2nd quarter 2015 - Earnings Review Conference Call Eduardo Mazzilli de Vassimon Executive Vice-President, CFO (Chief Financial Officer) and CRO (Chief Risk Officer) Marcelo Kopel Investor Relations Officer
Slide 23: 2nd quarter 2015 - Earnings Review
2"4 quarter 2015 - Earnings Review Conference Call Eduardo Mazzilli de Vassimon Executive Vice-President, CFO (Chief Financial Officer) and CRO (Chief Risk Officer) Marcelo Kopel Investor Relations Officer > an; Dow jones _ @ Doi, Co APIMEC — Sustainability indices susgp ses [TAG copico Ingllaaratio
Itau Unibanco Holding — Q2 2015 Earnings Presentation on 6ix