Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q3 2019 Earnings Presentation
157 slides from Itau Unibanco's earnings presentation, Nov 5, 2019
Slide 1: Announcement to the Market: 3rd Quarter 2019 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. rd 3 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
Attachment 01 Attachment 01
Slide 3: 3Q19 Institutional Information
3Q19 Institutional Information3Q19 Institutional Information
Slide 4: Forward-looking statements
3Q19 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: Disclaimer: Corpbanca Pro Forma Information
Disclaimer Corpbanca Pro Forma Information st The merger between Itaú Chile and CorpBanca was concluded on April, 1 2016. 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 of
Slide 6: Agenda
Agenda 1. Our Profile 2. Corporate Governance 3. Business Overview 4. Financial Highlights 5. Information Technology 6. Itaú Unibanco in Capital Markets 7. Sustainability As of November 04, 2019Agenda 1. Our Profile 2. Corporate Governance 3. Business Overview 4. Financial Highlights 5. Information
Slide 7: Our Profile
Our Profile 1Our Profile 1
Slide 8: Itaú Unibanco at a Glance
Itaú Unibanco at a Glance Financial Highlights and Ratios Leading position in Brazil As of and for the quarter ended September 2019 (1) § US$82.4 billion market cap Highlights § 96,764 employees in Brazil and abroad Total Assets R$1,738.3 Bn § 4,704 branches and CSBs in Brazil and abroad (1) Total L
Slide 9: Our Vision
Our Vision Vision: To be the leading bank in sustainable performance and customer satisfaction • Implement a customer satisfaction-oriented culture, that is business-driven, through a simplified operational structure • Maximize shareholder returns, aiming at firm-wide growth • We aspire to be the pr
Slide 10: Our Way
Our Way 1. It’s only good for us if it’s good for the client We are people providing service to people, with passion and excellence. We work with the client and for the client – because they are the main reason behind why we do what we do. 2. We’re passionate about performance Generating sustainable
Slide 11: Medium and Long-Term Strategic Agenda
Medium and Long-Term Strategic Agenda CORPORATE GOVERNANCE AND SUSTAINABILITY PERMEATE ALL EFFORTS ON KEY STRATEGIC OBJECTIVES Commitment to permanently improve corporate governance plays a vital role in protecting stakeholders’ interests. We incorporate sustainability into our strategy through a co
Slide 12: Itaú Unibanco Global Footprint
Itaú Unibanco Global Footprint Itaú Unibanco has an important presence in key financial centers supported by a unique recognition and reputation. We want to be recognized as: The Latin American Bank CIB London, Lisbon, Madrid, Paris, Frankfurt Institutional Clients / Asset London Private Banking Zur
Slide 13: A History of Successful Strategic Deals
1 A History of Successful Strategic Deals Acquisition of the remaining 50% of: Retail - Brazil Uruguay NACIONAL Acquisition of the Banco Itaú BMG Consignado minority interest of: Casa Moreira Salles Acquisition of a 1924 minority interest in: Unibanco 1995 - 1998 2000 - 2003 2004 - 2007 Merger 2008
Slide 14: Corporate Governance
Corporate Governance 2Corporate Governance 2
Slide 15: Corporate Governance at Itaú Unibanco
Corporate Governance at Itaú Unibanco Strengths of our structure Family ownership ensuring a long-term view • • Professional management team • Strong corporate governance • Broad shareholder base (52.89% of our shares in free float) Egydio de Souza Free Float* Moreira Salles Family Non Voting Shares
Slide 16: IUPAR and Itaú Unibanco Governance
IUPAR (Itaú Unibanco Participações) and Itaú Unibanco Governance Alignment and union among shareholders; Family control Group´s vision, mission and values; IUPAR Significant mergers & acquisitions; (Itaú Unibanco with a strategic Nominations to the Board of Directors and CEO; long-term vision Partic
Slide 17: Board of Directors and Executive Committees
Itaú Unibanco Board of Directors and Executive Committees Co-Chairman Co- Chairman Pedro Moreira Salles Roberto Egydio Setubal . Directors Marco Ambrogio Crespi Bonomi 1 Alfredo Egydio Setubal Gustavo Jorge Laboissière Loyola 1 Pedro Luiz Bodin de Moraes 1 João Moreira Salles Ana Lúcia de Mattos Bar
Slide 18: Risk Management Structure
Risk Management Structure Board of Directors Capital and Risk Audit Committee Pedro Moreira Salles Management Committee Gustavo Loyola 1 Roberto Egydio Setubal Pedro Bodin 1 3rd line of defense Internal Audit Independent review of the Paulo Miron activities developed by the institution. Itaú Unibanc
Slide 19: Governance Structure at Itaú Unibanco
Governance Structure at Itaú Unibanco Shareholder’s Meeting Fiscal Council Board of Directors Digital Nomination Risk and LATAM Social Personnel Related Strategy Compensation Audit Advisory and Corporate Capital Strategy Responsibility Committee Parties Committee Committee Committee Board Governance
Slide 20: Credit Risk Policies Hierarchy
Credit Risk Policies Hierarchy § Defines and monitors Risk Appetite; Board of Directors and § Approval of policies, strategies and definition of minimum Capital and Risk Management Committee expected return on capital; § Improvement of Risk Culture. § Defines a Global Policy; 1 § Approves policies h
Slide 21: Risk Appetite Defined by the Board of Directors
Risk Appetite Defined by the Board of Directors Principles Statement Dimensions § Sustainability and customer § Optimization of capital § Reputation; satisfaction; allocation; § Liquidity; § Risk pricing;§ Low volatility in results; § Capitalization; § Operational excellence;§ Regional focus; § Oper
Slide 22: Risk Appetite
Risk Appetite (as approved by the Board of Directors) The Risk Appetite... establishes the types and levels of risk acceptable to the bank, within which management seeks to maximize value creation. It is based on Guided by the and monitored by 43 metrics inserted Board of Directors Principles of Ris
Slide 23: Retail Management – Statistical Models
Retail Management – Individuals and Small and Middle Companies STATISTICAL MODELS Lowest risk Risk Level Highest Risk 100 100 102 98 114 94 123 89 128 88 148 88 153 88 100 100 104 101 102 95 101 89 106 90 112 99 124 94 115 91 115 91 116 92 130 93 148 88 157 81 167 79 v 110 91 112 102 114 97 113 92 1
Slide 24: Credit Offer Based on Future Scenario
Credit Offer Based on Future Scenario STATISTICAL MODELS Highest Lowest Risk Level risk risk Credit Available Base Scenario Credit Not Available Credit Not Available Highest risk Positive future expectation Negative future expectation Risk Level Risk Level Credit Available Credit Available Credit No
Slide 25: Business Overview
Business Overview 3Business Overview 3
Slide 26: Universal Bank
Universal Bank 1 RETAIL BANKING WHOLESALE BANKING RETAIL AND REAL ESTATE CREDIT ITAÚ BBA 4,201 branches and client service branches and 46,356 ATMs in Brazil; Full coverage of corporate clients with RETAIL annual sales above R$ 200 million; AND REAL Premier banking brand in Brazil; ESTATE Leadership
Slide 27: Clients
Clients We are a bank with 55 million clients 1 Clients more Individual account holders satisfied 8 points - Global NPS + Total In the last 12 months openings closures 80% are more than + 43% accounts opened - 29% closures and inactive accounts 5-year-old accounts compared to 2016 compared to 2016,
Slide 28: Client Segmentation
Client Segmentation Individuals Segmentation Companies Segmentation by monthly income by annual sales Ultra Private Bank over R$4 billion or >R$750 million debt* >R$5 million in total investment Large >R$400 million up to R$4 billion or >R$200 million debt* Corporate >R$200 million up to R$400 milli
Slide 29: Retail in Brazil
Retail in Brazil Automated Teller Machines (ATMs) in Brazil 2 Presence in Brazil 1 (As of September 30, 2019) 46,712 46,463 45,502 45,769 45,891 47,301 46,784 46,338 46,356 3 7 7 8 7 592 598 610 589 613 584 585 608 617 23,049 22,086 22,431 22,605 21,195 21,423 20,937 23,053 23,173 North 109 Northeas
Slide 30: Retail - Credit Cards, JVs and Partnerships
Retail - Credit Cards, Joint Ventures and Partnerships with Retailers in Brazil Highlights Highlights JVs and Partnerships • Brazilian market leader in credit card transactions; • Focus on credit card instruments; • Qualification of the client base: proprietary channel x partnerships; • Long term ag
Slide 31: Retail - Cards in Brazil
Retail - Cards in Brazil | Growing Penetration in Household Consumption Expenditure Credit and Debit Cards Billed Volume % at Household Consumption Expenditure 38.0% 37.9% 37.1% 35.1% 34.9% 34.1% 33.8% 32.4% 31.4% 13.7% 14.6% 13.7% 13.0% 13.3% 12.5% 12.7% 12.1% 11.7% 24.2% 23.4% 23.4% 22.1% 21.6% 21
Slide 32: Retail - Payroll Loan in Brazil
Retail - Payroll Loan in Brazil Composition of Payroll Loans Portfolio by Sector Evolution of Payroll Loan Portfolio R$ billion 49.3 49.1 48.6 46.7 46.0 45.4 44.6 44.4 44.7 5.8 6.2 5.4 5.1 4.9 4.9 4.4 4.8 4.7 4.5 4.2 4.8 5.1 5.5 13% 5.9 6.4 7.6 7.0 8% 38.8 39.0 38.5 36.5 35.5 34.6 33.5 32.6 32.8 79%
Slide 33: Retail - Mortgage Market in Brazil
Retail - Mortgage Market in Brazil Mortgage Loans Evolution Distribution Channels for Individuals Balance As of September 2019 R$ million 3.8% 47,953 49,244 49,776 Partnerships 9.9% 10.7% 14.0% 14% Real Estate Regular Brokers Branches 31% 13% 90.1% 89.3% 86.0% Developers 15% High Income Branches Sep
Slide 34: Retail - Vehicle Financing in Brazil
Retail - Vehicle Financing in Brazil Highlights: Individuals and Corporate Individuals Portfolio Loans Granted • Growth of 47.7% in production (QoQ); R$ million R$ million 34.4% • Offers finance through over 12 thousand dealers; • Average ticket size of the new vehicle concessions to individuals of
Slide 35: Retail - Insurance Ranking in Brazil
1,2 Retail - Insurance Ranking in Brazil jan-aug/19 jan-aug/18 Model 3 4th 4th Total Insurance 4 5th 5th Recurring Insurance Activities Life & Personal Accidents 2nd 2nd Bancassurance Credit Insurance 6th 6th Bancassurance Pension Plan 3rd 3rd Bancassurance Premium Bonds 5th 3rd Bancassurance Porto
Slide 36: Retail - Association with Porto Seguro
Retail - Association with Porto Seguro Highlights Association’s Structure • Unification of residential and automobile insurance Controlling stockholders of Itaú Unibanco Porto Seguro operations; 57.07% 42.93% • Exclusive offer and distribution of residential and automobile insurance products to Itaú
Slide 37: Very Small, Small and Middle Market in Brazil
Very Small, Small and Middle Market in Brazil SMEs Loan Portfolio 1 R$ million 84,043 79,649 78,088 75,433 74,137 72,002 70,795 68,974 61,869 61,547 2012 2013 2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 Highlights Full range of financial products and services, including deposits accounts, investment opt
Slide 38: Wholesale - Corporate Companies in Brazil
Wholesale - Corporate Companies in Brazil 1 Corporate Loans R$ million 219,418 213,815 194,472 181,541 165,052 163,437 156,975 153,302 152,625 151,425 2012 2013 2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 Highlights • Corporate clients with annual sales above R$200 million. • We offer a broad portfolio
Slide 39: Wholesale - Corporate and Investment Banking
Wholesale - Corporate and Investment Banking | Leadership Position in Brazil Investment Banking Wholesale Banking Fixed Income Middle Until September 2019, we maintained the leadership in the distribution Annual revenues from R$30 MM up to ranking of Anbima, with a distributed volume of R$30.3 billi
Slide 40: Wholesale - Wealth Management Services
Wholesale - Wealth Management Services | Brazil Asset Management Evolution of Assets Under Administration Investment Product management for the conglomerate and a full range of Asset Management investment options to Retail Banking. In September 2019, we reached R$745.61 billion in assets under 1,290
Slide 41: Retail Footprint in Latin America
Retail Footprint in Latin America | September 2019 Mexico Panama Colombia1 Employees: 3,416 Branches + CSBs: 153 ATMs: 170 Brazil Employees: 83,536 Peru Branches + CSBs: 4,201 Representative ATMs: 46,356 Office Paraguay Chile Employees: 867 Employees: 5,645 Branches + CSBs: 44 Branches + CSBs: 194 A
Slide 42: Segments – Income Statement Pro Forma 3Q19
Segments – Income Statement Pro Forma 3Q19 Activities with the Retail Banking Wholesale Banking Itaú Unibanco Market + Corporation In R$ millions 20,215 7,580 2,462 30,257 Operating Revenues 12,131 4,661 2,279 19,071 Managerial Financial Margin 12,131 4,661 829 17,621 Financial Margin with Clients -
Slide 43: Financial Highlights
Financial Highlights 4Financial Highlights 4
Slide 44: Highlights
Highlights Recurring Net Income Recurring ROE Credit1 NPL 90 days Consolidated Consolidated Consolidated Consolidated stable stable 4.4 % 1.7 % R$689.0 bn R$ 7.2 bn 23.5% 2.9% 3Q19 vs. 2Q19 3Q19 vs. 2Q19 3Q19 vs. 2Q19 3Q19 vs. 2Q19 Brazil Brasil Brazil Brasil 4.9 % -10 bps 2.0 % stable R$518.0 bn R$
Slide 45: 2019 Forecast
2019 Forecast Consolidated Brazil ¹ Total Credit Portfolio ² 8.0% 11.0% 8.0% 11.0% Financial Margin with Clients 9.0% 12.0% 9.0% 12.0% Financial Margin with the Market R$4.6 bn R$5.6 bn R$3.6 bn R$4.6 bn Cost of Credit ³ R$14.5 bn R$17.5 bn R$12.5 bn R$15.5 bn 4 Commissions and Fees and Results from
Slide 46: Recurring Net Income and Value Creation
Recurring Net Income and Value Creation 23.6% 23.5% 23.5% 21.8% ROE 21.3% Average Cost of Capital 14.5% 14.5% 13.5% 13.0% 12.5% Recurring Net Income 7.2 7.0 6.9 6.5 6.5 Value Creation 2.0 3.2 3.3 2.9 2.2 Cost of Capital 4.5 4.3 4.0 3.9 3.8 3Q18 4Q18 1Q19 2Q19 3Q19 page 44 In R$ billionRecurring Net
Slide 47: Income Statement | Operating Revenues Perspective
Income Statement | Operating Revenues Perspective DD D' In R$ millions 3Q19 2Q19 3Q18 9M19 9M19 30,257 29,492 2.6% 27,899 8.5% 87,957 83,345 5.5% Operating Revenues Managerial Financial Margin 19,071 18,451 3.4% 17,408 9.6% 55,191 51,702 6.7% Financial Margin with Clients 17,621 16,879 4.4% 16,152 9
Slide 48: Income Statement | Managerial Financial Margin Perspective
Income Statement | Managerial Financial Margin Perspective DDD In R$ millions 3Q19 2Q19 3Q18 9M19 9M18 Managerial Financial Margin 19,071 18,451 3.4% 17,408 9.6% 55,191 51,702 6.7% Financial Margin with Clients 17,621 16,879 4.4% 16,152 9.1% 50,924 47,366 7.5% Financial Margin with the Market 1,450
Slide 49: Results – Brazil and Latin America
Results – Brazil and Latin America 9M19 9M18 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% 6.5% Managerial Financial
Slide 50: Business Model
Business Model In R$ billions 9M19 9M18Δ Insurance Excess Insurance Excess Insurance Excess Consolidated Credit Trading Consolidated Credit Trading Consolidated Credit Trading & Services Capital & Services Capital & Services Capital Operating Revenues 46 .8 1 .2 38.9 1.1 42.9 1.4 37.7 1.3 3.8 (0.2)
Slide 51: Credit Portfolio with Financial Guarantees and Corporate Securities
Credit Portfolio with Financial Guarantees Provided and Corporate Securities Credit origination¹ 3Q19 vs. 3Q18 In R$ billions, end of period 3Q19 2Q19 D 3Q18 D Individuals 229.7 222.3 3.3% 200.0 14.9% Total 29% Brazil ² Credit Card Loans 83.3 79.3 5.1% 68.7 21.4% Personal Loans 34.2 32.8 4.5% 28.9 1
Slide 52: Credit Portfolio by Product
Credit Portfolio by Product 3Q19 2Q19 3Q18 In R$ billions, end of period D D 1 229.0 221.5 3.4% 199.1 15.0% Individuals - Brazil 83.3 79.3 5.1% 68.7 21.4% Credit Card 33.4 31.9 4.7% 27.9 19.8% Personal Loans 2 49.3 49.1 0.5% 46.0 7.4% Payroll Loans 18.0 17.2 4.5% 15.2 18.0% Vehicles 44.8 44.0 2.0% 4
Slide 53: Credit Portfolio by Currency
Credit Portfolio by Currency 1 R$ billion 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-18 223.5 365.1 588.6 Mar-18 197.9 368.4 566.4 Dec-17 192.4 371.7 564.1 Sep-17 180.7 358.4 539.1 Foreign Currency Local Currency (
Slide 54: Credit Origination and Private Securities Issuance | Brazil
Credit1 Origination and Private Securities Issuance | Brazil Base 100 = 3Q15 Total Credit2 – Brazil Credit2 - Individuals 29% 31% 171 125 131 100 97 81 100 76 94 85 3Q15 3Q16 3Q17 3Q18 3Q19 3Q15 3Q16 3Q17 3Q18 3Q19 Credit2 – Very Small, Small and Credit2 – Corporate Private Securities Issuance3 Midd
Slide 55: Credit Portfolio Growth in Brazil
Credit Portfolio Growth in Brazil 1 (in R$ Billions) Nominal GDP (Sep-15 to Sep-19): 18.6% Accumulated Inflation (IPCA) (Sep-15 to Sep-19): 20.3% Accumulated Interbank Rate: (Sep-15 to Sep-19): 45.9% Credit Card Loans Payroll Loans Vehicle Loans Personal Loans 8.0% 51.4% 12.4% -16.9% 33.8% 29.4% 10.
Slide 56: Credit Portfolio Breakdown
Credit Portfolio Breakdown 1,2 1 Companies Credit Portfolio by Business Sector Credit Concentration Sep-19 3Q19 2Q19D R$ million In R$ billions, end of period Public Sector 2.2 2.3 -5.2% Private Sector 346.3 331.8 4.4% Loan, lease, other credit operations Real Estate 22.8 22.1 3.4% Loan, lease and o
Slide 57: Credit Portfolio by Vintage
1 Credit Portfolio by Vintage Profile of credit portfolio by origination period: R$ billion § Older vintages with higher spreads are losing relevance compared to the most recent ones. § 61.2% of total origination was created in the past 12 months. 531 553 576 34.3% 34.8% 38.8% 4.5% 5.1% 4.5% 6.4% 6.
Slide 58: Loan Portfolio Mix Change
Loan Portfolio Mix Change 1 (%) Sep-19 Consolidated set/19 18.7 14.0 3.1 14.5 5.8 7.8 8.6 27.6 Se Se p p -1 -1 9 9 25.8 19.3 4.3 20.0 8.0 10.8 11.8 Sep-18 Sep-18 28.7 17.5 4.1 18.5 7.5 11.1 12.4 2 Brazil Sep-17 Sep-17 31.0 16.6 4.1 16.8 7.3 11.2 13.1 Sep-16 Sep-16 33.7 16.1 4.4 15.4 7.6 10.3 12.6 Se
Slide 59: Financial Margin with Clients
Financial Margin with Clients Annualized Average Rate Consolidated Brazil 12.2% 12.1% 12.1% 12.2% 12.2% 12.0% 12.0% 11.8% 10.0% 10.0% 9.9% 9.9% 10.0% 9.9% 9.8% 9.8% 9.6% 9.5% 9.0% 9.2% 9.2% 9.2% 9.0% 8.9% 7.7% 7.4% 7.6% 7.6% 7.6% 7.5% 7.4% 7.5% 7.1% 6.4% 6.7% 6.4% 6.4% 6.4% 6.4% 6.0% 4Q17 1Q18 2Q18
Slide 60: Financial Margin with the Market
Financial Margin with the Market R$ billion 1.7 1.6 1.5 4.3 1.5 1.4 4.3 1.4 1.4 1.3 0.1 1.2 3.0 3.2 1.7 1.6 1.5 1.4 1.4 1.3 1.1 1.3 1.2 0.1 0.2 1.1 1.0 1.3 0.9 1.2 1.1 0.9 1.0 0.5 1.2 1.0 0.5 0.2 0.5 0.2 0.3 0.5 0.3 0.4 0.3 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19 Financial Margin with
Slide 61: Provision for Loan Losses and Cost of Credit
Provision for Loan Losses and Cost of Credit Provision for Loan Losses by Segment R$ million 5.8% 5.0% 5.0% 4.7% 4.6% 4.4% 4.5% 4.1% 3.7% 3.6% 3.5% 3.4% 3.3% 3.2% 3.1% 3.0% 2.9% 7,824 6,337 5,997 6,366 6,169 5,823 5,392 772 4,948 4,483 4,111 4,282 4,271 383 399 396 4,922 412 757 4,407 432 4,206 2,72
Slide 62: Allowance for Loan Losses by Risk – Consolidated
Allowance for Loan Losses by Risk– Consolidated R$ million Allocation of Total Allowance by Type of Risk -Consolidated Sep-19 11,213 10,123 13,141 34,477 Jun-19 10,666 9,514 12,910 33,091 Sep-18 10,160 10,418 14,919 35,496 Overdue operations according to the Renegotiations and overdue loans Potentia
Slide 63: Non Performing Loans Ratios
Non Performing Loans Ratios 15 to 90-day NPL Ratio | Consolidated - % 90-day NPL Ratio| Consolidated (%) 4.8 4.5 3.9 3.8 3.6 3.8 3.7 3.5 3.0 3.5 3.5 3.4 2.8 3.4 3.2 2.9 3.2 3.1 2.8 2.8 2.7 2.5 2.5 2.6 3.9 3.6 3.2 2.3 2.9 3.2 3.2 3.0 2.7 2.7 3.0 3.0 2.9 2.9 2.9 2.9 2.8 2.5 2.4 2.5 2.6 2.3 2.3 2.5 2.4
Slide 64: Coverage Ratio (90-day NPL)
Coverage Ratio (90-day NPL) Coverage Ratio and Expanded Coverage Ratio1 Coverage Ratio 248% 246% 245% 236% 235% 639% 221% 487% 208% 208% 208% 399% 235% 227% 215% 100% 100% 96% 172% 95% 169% 168% 92% 90% 88% 87% 86% Sep-18 Jun-19 Sep-19 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 T
Slide 65: NPL Creation
NPL Creation R$ billion 5.3 5.1 5.0 5.0 4.7 4.4 4.4 4.4 3.8 4.3 3.9 3.6 3.6 3.5 3.5 3.5 3.3 3.2 1.2 1.0 1.1 0.7 0.9 0.5 0.5 0.5 0.4 0.1 0.7 0.5 0.4 0.4 0.4 0.2 0.3 -0.3 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Total Retail Banking - Brazil Whosale Banking - Brazil Latin America ex-Brazil page 63
Slide 66: Provision for Loan Losses and NPL Creation by Segment
Provision for Loan Losses and NPL Creation by Segment Retail Banking - Brazil R$ billion 113% 107% 108% 108% 104% 104% 99% 100% 89% 4.5 3.7 3.5 3.6 4.2 3.9 4.3 3.5 3.3 3.5 3.5 4.0 3.2 3.6 3.2 3.2 3.5 3.7 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Wholesale Banking - Brazil R$ billion 230% 48% 34%
Slide 67: Loan Portfolio Evolution by Risk Level
Loan Portfolio Evolution by Risk Level Brazil 1 Consolidated Total Allowance for Loan Losses (R$ million) 30,480 28,249 29,613 35,496 33,091 34,477 Loan Portfolio by Risk Level 42.9% 43.0% 42.8% 44.0% 44.5% 44.6% 34.8% 33.6% 32.4% 38.1% 37.5% 36.7% 9.8% 9.1% 9.8% 4.9% 6.2% 6.0% 4.0% 4.4% 4.4% 4.8% 5
Slide 68: Renegotiated Loan Operations
Renegotiated Loan Operations Total Renegotiated Portfolio | Breakdown by Days Overdue R$ billion Brazil 1 Days overdue: measured at the moment of 24.5 24.4 25.5 25.2 25.7 25.2 25.4 24.7 26.0 renegotiation 28.4 26.4 27.9 27.6 27.5 26.4 27.6 27.3 26.9 Latin America 2 2.5 2.0 2.2 2.3 2.1 2.3 2.3 1.9 2.
Slide 69: Credit Quality | Individuals
Credit Quality | Individuals Loan-to-Value Credit Cards Portfolio in Sep-19 Vehicles and Mortgage | Vintages 60.6% 59.7% 9.9% 58.5% 57.9% 58.1% 57.2% 20.6% 9.6% 9.7% 80.5% 69.8% Itaú Unibanco Brazilian Financial System Sep-18 Jun-19 Sep-19 excluding Itaú Unibanco Transactor¹ Installment with Interes
Slide 70: Banking Fee Revenues and Insurance Results
Banking Fee Revenues and Result from Insurance, Pension Plans and Premium Bonds 3 In R$ bilhões 3Q19 2Q19 D 3Q18 D 9M19 9M18 D Assets Under Administration Credit and Debit Cards 3.2 3 .2 0.1% 3 .4 -5.5% 9.7 10.0 -3.0% In R$ billions Card Issuance 2.3 2 .2 1.5% 2.2 2.7% 6.7 6.3 6.1% 20.8% Acquiring 0
Slide 71: Retail - Merchant Acquiring | REDE
Retail - Merchant Acquiring | REDE Debit Card Transaction Volume Credit Card Transaction Volume R$ million R$ million 81,136 46,057 76,636 74,095 72,877 42,242 70,376 69,425 40,128 39,959 38,711 38,873 65,915 63,558 63,345 35,818 35,595 32,234 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 3Q17 4Q17 1
Slide 72: Insurance, Pension Plan and Premium Bonds
Insurance, Pension Plan and Premium Bonds D D D In R$ millions 3Q19 2Q19 3Q18 9M19 9M18 Earned Premiums 1,105 1,075 2.9% 1,025 7.8% 3,232 3,011 7.4% Revenues from Pension Plan 57 117 -51.6% 70 -18.4% 231 350 -33.8% Revenues from Premium Bonds 113 107 5.7% 105 7.9% 322 336 -4.2% Managerial Financial
Slide 73: Insurance Operations
Insurance Operations Earned Premiums Breakdown Retained Claims Breakdown R$ million R$ million 320 294 299 297 338 1,025 1,045 1,052 1,075 1,105 9.2% 9.3% 10.7% 10.4% 11.6% 24.5% 26.1% 29.2% 9.6% 9.4% 32.6% 34.5% 9.5% 9.7% 9.2% 1.4% 1.4% 1.4% 1.5% 1.6% 4.2% 4.9% 1.1% 17.3% 17.6% 3.8% 16.7% 15.7% 16.
Slide 74: Pension Plan Segment
Pension Plan Segment Technical Provisions Focus on Client Experience R$ billion 7 Reasons to Invest 208.9 204.8 200.4 Plan your retirement 196.6 1 190.0 Pay your future health expenses 2 Invest in your kids’ education 3 Plan your taxes expenses 4 3Q18 4Q18 1Q19 2Q19 3Q19 Improve your investment retu
Slide 75: Non-interest Expenses
Non-interest Expenses In R$ billions 3Q19 2Q19 D 3Q18 D 9M19 9M18 D Voluntary Severance Program Personnel Expenses (5.6) (5.5) 1.6% (5.4) 4.2% (16.5) (15.7) 5.1% Administrative Expenses (4.2) (4.2) -1.5% (4.2) -0.1% (12.5) ( 12.2) 2.5% ~ 3.5 thousand employees adhered Operating Expenses (1.3) (1.2)
Slide 76: Efficiency Ratio and Risk-Adjusted Efficiency Ratio
Efficiency Ratio and Risk-Adjusted Efficiency Ratio 65.7 61.3 63.3 61.4 60.8 61.0 61.7 60.9 60.9 48.8 49.2 48.7 45.5 47.3 47.1 45.9 46.3 46.2 65.0 64.2 63.3 62.7 61.2 61.2 61.2 62.2 61.2 47.6 47.7 47.0 47.4 47.7 47.5 46.4 46.6 45.3 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Trailing 12-month Effic
Slide 77: Balance Sheet – Assets and Liabilities
Balance Sheet – Assets and Liabilities R$ million Assets 3Q19 2Q19 3Q18 D'D' Current and Long-term Assets 1,703,925 1,644,066 3.6% 1,578,127 8.0% Cash and Cash Equivalents 27,721 33,242 -16.6% 29,467 -5.9% Short-term Interbank Investments 274,139 284,781 -3.7% 320,965 -14.6% Securities and Derivativ
Slide 78: Total Assets | Evolution and Breakdown
Total Assets | Evolution and Breakdown 1,738.3 R$ billion 1,649.6 1,503.5 542.6 Loans Portfolio 1 31.2% 432.9 Cash and Cash Equivalents, Interbank Investments and 24.9% Interbank and Interbranch Accounts Securities and Derivatives Financial Instruments 29.4% 510.7 12.5% Other 217.8 2.0% Permanent As
Slide 79: Total Liabilities | Evolution and Breakdown
Total Liabilities | Evolution and Breakdown R$ billion 1,738.3 1,649.6 1,503.5 Deposits, Debentures and Funds from Bills and Structured Operations 582.8 33.5% Certificates Deposits Received under Securities, Repurchase Agreements and Fund 19.3% 1 from Acceptances and Issue of Securities 335.5 2 13.7
Slide 80: Funding
Funding • Loan Portfolio mainly funded by domestic client funding • Diversified funding base 3Q19 2Q19 3Q18 In R$ millions, end of periodDD Demand Deposits 82,245 73,352 12.1% 74,817 9.9% Savings Deposits 140,122 137,568 1.9% 132,374 5.9% Time Deposits 267,029 250,521 6.6% 244,247 9.3% Debentures (L
Slide 81: Funding: Loan Portfolio to Funding Ratio
Funding Ratio between Loan Portfolio and Funding % Funding (Maturity Breakdown) 96.4% 96.0% 96.9% 94.6% 93.3% 90.8% 91.1% 91.7% 91.8% 79.0% 77.8% 77.5% 78.6% 78.2% 76.1% 73.9% 74.4% 74.5% 181-365 737 Over 365 699 697 691 687 665 667 664 31-180 633 618 7.8% 578 576 566 571 553 553 548 542 544 540 532
Slide 82: Capital Ratios (BIS) | Prudential Conglomerate
Capital Ratios (BIS) | Prudential Conglomerate 1 3Q19 2Q19 In R$ millions, end of period Core Capital 113,235 115,498 Tier I (Core Capital + Additional Capital) 124,856 126,373 Referential Equity (Tier I and Tier II) 136,755 138,267 Total Risk-weighted Exposure (RWA) 887,513 847,001 CPAD Credit Risk
Slide 83: Capital Ratios: Full Application of Basel III
Capital Ratios Full aplication of Basel III rules│ September 30, 2019 rd Payment of R$7.7 billion in complementary dividends on August 23 , 2019. 14.9% 14.1% 0.7% -0.7% -0.2% -0.6% 1.3% 1.3% 13.6% 12.8% Tier I 3Q19 n et income and Additional dividends and IOC Prudential Adjustments RWA Tier I Jun-19
Slide 84: Capital Requirement under Basel, BACEN and ITUB Target
Capital Requirement under the Basel Committee, BACEN and ITUB Target ITUB Target Minimum Capital Required Basel II Basel III 15.0% 1.5% 1.5% 11.5% 11.0% 2.0% 8.0% If total capital falls 1.5% Subordinated 5.5% below 11.5%, debt (TII) restrictions will T1= 13.5% 12.0% Stockholders`equity start to be a
Slide 85: Payout Practice
Payout Practice In order to manage capital efficiently, aiming at creating value to our shareholders, we announced through a Material Fact disclosed on September 26, 2017, that we intend to: Total Payout simulation Maintain the practice of paying dividends to keep Tier I Capital at 13.5% under diffe
Slide 86: Ratings
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 Foreign Currency Foreig
Slide 87: Digital Transformation
Digital Transformation 5Digital Transformation 5
Slide 88: Digital Strategy | Customer needs
Digital Strategy | Customer needs Does not want to waste time in traffic MOBILITY Wants access to Customers nice and easy LEISURE entertainment expectations have changed. Needs to communicate with his/her network They demand high-quality COMMUNICATION anytime, anywhere experiences rather than just p
Slide 89: Digital Strategy | Customer ownership is the new rule
Digital Strategy | Customer ownership is the new rule Continuously listen to Respect customer customers and follow up privacy to get their feedback Motivate employees Act proactively to to stay engaged anticipate needs Build customer empathy Adapt to customer demands into processes and policies and
Slide 90: Digital Strategy | How to achieve customer ownership?
Digital Strategy | How to achieve customer ownership? Innovators Incumbents X Challenge: change Challenge: scale “Incumbents must find innovation before innovators find distribution” page 88Digital Strategy | How to achieve customer ownership? Innovators Incumbents X Challenge: change Challenge: sca
Slide 91: Digital Strategy | What is Itaú Unibanco doing?
Digital Strategy | What is Itaú Unibanco doing to achieve customer ownership? Bulding digital capabilities on top of major strenghts. Leverage Develop + The capability to continuously transform Lots of data Large customer base + speed to extend our digital offer value proposition addressing A full r
Slide 92: Speed to extend our digital offer
Speed to extend our digital offer (10x) + speed to extend our digital offer 10x 2x Methodologies CI/CD Processes Business + tech Test automation integration Delivery Technologies using AI (digital channels) Cloud Communities Legacy modernization Business + tech Agile and Analytics Cubo integration (
Slide 93: Working model | Digital-oriented organization
Working model | Digital-oriented organization + speed to extend our digital offer DELIVERY COMMUNITIES Customer TRADITIONAL MODERN centricity Moving from command and control to autonomy means User Experience Project management Continuous evolution of Technology managing and execution our digital sol
Slide 94: Technology platform | Legacy modernization
Technology platform | Legacy modernization + speed to extend our digital offer Microservices advantages: • Scalability and flexibility Benefits of • More frequent deliveries • Availability modernization • Time-to-money reduction • Cost and lock-in reduction Batch processing architecture Event-driven
Slide 95: Technology platform | Cloud
Technology platform | Cloud + speed to extend our digital offer Technology tools that support our working model. Cloud Why is cloud computing important to us? more 8x • Time-to-money reduction solutions • Application modernization in cloud • Cost efficiency • Operational risk reduction 2017 2018 • A
Slide 96: Technology platform | DevOps and SRE
Technology platform | DevOps and SRE + speed to extend our digital offer Accelerate integration, continuous deployment and software delivery. DevOps and SRE Waterfall DevOps Design Code Test Deploy CI/CD Incorporate Waterfall practices to shorten the Agile development life Code Test Code Test Code T
Slide 97: CUBO | Innovation ecosystem
CUBO | Innovation ecosystem + speed to extend our digital offer 1,100 70+ projects residents 13 floors (120 startups) between the bank + rooftop and Cubo startups Cubo is the largest startups 400 members hub for technological entrepreneurship promotion in 215,000+ ft2 Latin America. 2,000 people/day
Slide 98: Technology platform | Data analytics and AI
Technology platform | Data analytics and AI deep knowledge of customer Understand customers and leverage the business. Generated value Training and capacity building Analytics Ops Efficient strategy for model Value capture with AI Human capital training and and analytics has been increasing knowledg
Slide 99: Technology platform | Open banking
Technology platform | Open banking deep knowledge of customer More data about our customers. PHASE 1 PHASE 2 PHASE 3 PHASE 4 2022 2020 2021 CURRENT ACCOUNT INFORMATION PAYMENT PRODUCT INFORMATION CUSTOMER DATA CREDIT INFORMATION Location of points of service, Name, parents’ names, Data related to de
Slide 100: Human capital | Initiatives
Human capital | Iniciatives deep knowledge of customer New ways to Performance based attract talent on cooperation Evaluation combines collective indicators and individual efforts Hackathons + 5,000 pre-select new people employees (2018) Data scientist Analytics Education New Program technology buil
Slide 101: Digital Strategy | Our initiatives are reflected in numbers
Digital Strategy | Our initiatives are reflected in numbers Significant improvement in indicators: Lead time Regulatory environment More value Attended more regulatory Reduced delivery time for Highest return on financial requirements using technology technology solutions benefit projects (Base 100)
Slide 102: Digital experience | Customers increasingly going digital
Digital experience | Itaú Unibanco customers are increasingly going digital Use of Digital Channels ¹ % of transactions through digital channels Companies (in millions) Individuals (in millions) 9M17 9M19 2 Credit 17% 20% 12.2 1.2 10.7 1.1 2 1.0 Investments 37% 47% 9.4 2 Payments 67% 80% Sep-17 Sep-
Slide 103: Digital Strategy | Continuous updates for a better experience
Digital Strategy | Continuous updates for a better experience APP PERSONNALITÉ 4.7 4.4 1st bank APP ITAÚ (INDIVIDUALS) offering bank account opening by mobile phone + 11 MM individual clients using 4.5 4.7 4.7 4.7 digital channels + 50 new features on the mobile 1st bank channel offering a leaner sm
Slide 104: Digital Strategy | Efficiency focus while investing in technology
Digital Strategy | Efficiency focus, while continuously investing in technology Technology investments 160 130 17% 122 100 Inflation (IPCA) accumulated in 111 the period 106 100 101 70.1 64.2 61.2 60.7 47.6 46.4 46.3 45.3 2016 2017 2018 2019 (E) Efficiency Ratio (%) Risk-Adjusted Efficiency Ratio (%
Slide 105: Digital Strategy | Personalized investment offer
Digital Strategy | Personalized investment offer A customized selection of investment products by Itaú or other companies. + knowledge and Transparent understanding recommendations, of customer. respecting investor profile THE BEST OF A BANK AND A and goals. BROKER IN THE SAME PLACE Main products an
Slide 106: Digital Strategy | Insurance open platform
Digital Strategy | Insurance open platform Expansion of insurance portfolio with complementary products offered by partner insurance companies. Residential / Auto Corporate Healthcare 2018 Capitalization 2017 Life Card protection Smartphone Assistance categories protection 07 11 insurers 02 09 Denta
Slide 107: Digital Strategy | iti
Digital Strategy | iti 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. Individuals • Access to 800.000 Rede merchants • No minimum income or bank account requirements • Pay, buy, transfer a
Slide 108: Itaú Unibanco in Capital Markets
Itaú Unibanco in Capital Markets 6Itaú Unibanco in Capital Markets 6
Slide 109: Non-voting Shares Appreciation | ITUB4
Non-voting Shares Appreciation | ITUB4 Evolution of R$100 invested on the day before the announcement of the merger (October 31, 2008) to September 30, 2019 594 363 282 281 197 100 ITUB4 ‐ Without dividend reinvestiment ITUB4 ‐ With dividend reinvestiment IBOVESPA Index Dolar CDI Source: Economatica
Slide 110: Non-voting Shares Appreciation | ITUB4 vs Bank Basket
Non-voting Shares Appreciation | ITUB4 Evolution of R$100 invested on the day before the announcement of the merger (October 31, 2008) to September 30, 2019 594 518 363 291 100 ITUB4 ‐ WITHOUT dividend reinvestiment Bank basket WITHOUT dividend reinvestiment¹ ITUB4 ‐ WITH dividend reinvestiment Bank
Slide 111: Sustainability
Sustainability 7Sustainability 7
Slide 112: Sustainability Timeline
Sustainability Timeline First cell for analysis Sustainability Sustainability of environmental Committee Governance and social risks (officers level) (executive level) 2000 2005 2007 Sustainable performance in corporate vision Creation of Itaú Unibanco operating Merger committees 2013 2010 2008 Laun
Slide 113: Corporate Sustainability Governance
Corporate Sustainability Governance Board level Definition and monitoring of the sustainability strategy Board of Directors Board of Directors Members Members of of the Board the Board of Directors of Directors Strategy Committee Strategy Committee Members Members of of the Board the Board of Direct
Slide 114: Positive Impact Commitments
Positive Impact Commitments 1 Ethics in Relations and Promote the creation of a righteous and ethical financial ecosystem, aligned with the sustainable development agenda. Business 2 Improve the employee’s experience and promote a diverse, inclusive, healthy, and purposeful Inclusive Management Cond
Slide 115: Sustainable Development Goals (SDG)
Sustainable Development Goals (SDG) The SDGs are the main current drivers for sustainability issues. With them we understand the way that must be followed to overcome the challenges of society, accompanying it’s dynamics. They bring a perspective of risk and opportunity management by encouraging the
Slide 116: Positive Impact Commitments – Priority SDGs
Positive Impact Commitments – Priority SDGs PRIORITIES FOR ITAÚ UNIBANCO SUSTAINABLE DEVELOPMENT Commitments which guide Transparency in No poverty 1 Reporting and how to be accountable Communication 12 16 5 Gender Equality Affordable and 7 Responsible Investment Commitments that create clean energy
Slide 117: Ethics in Relations and Business
Ethics in Relations and Business Our business is based on ethical principles, which reflects the transparency, respect and honesty present in our relationship with stakeholders. Training programs Integrity and Ethics Program Adherence to the termination of The Integrity and Ethics Education Program
Slide 118: Inclusive Management | Management Cycle
Inclusive Management | Management Cycle Training and Attraction and Compensation and Performance Selection Benefits Assessment Development Performance Special Talent Itaú Unibanco Fixed Compensation In 2018, it amounted to Management Programs Business School approximately R$17 billion (plus Internsh
Slide 119: Inclusive Management | Employees
Inclusive Management | Employees 1 100,335 Employees Organizational Climate Thinking about the best way to measure and monitor our employees’ satisfaction, in 2018 we redesigned our survey strategy, by 60% 40% discontinuing the Fale Francamente (Speak Frankly) survey, which was replaced by Pulse 51.
Slide 120: Inclusive Management | Diversity
Inclusive Management | Diversity Our Internal Policy for Diversity Our Commitment Integrated Action Enhancement Principles : Strategically positioning the In order to boost the Diversity 1- Implementation of policies and theme in institutional processes agenda, in 2018 we started to projects for val
Slide 121: Responsible Management
Responsible Management In 2018 we created a working group within the central administration focused on efficiency in utilities, which resulted in the economy of several inputs: -4.0 GWh -13 mil m³ -26 mil m³ -469 tCO2 emitted with diesel Energy Of natural gas Of water consumption used consumption oi
Slide 122: Financing Positive Impact Sectors | Responsible Investment
Financing Positive Impact Sectors | Responsible Investment Responsible Credit Analysis Investments The Environmental and Social Risk Policy contains the criteria for Proprietary methodology to include ESG issues in the valuation the analysis of clients and projects and the establishment of real of f
Slide 123: Financing Positive Impact Sectors | TCFD
Financing Positive Impact Sectors | Task Force on Climate-related Financial Disclosures (TCFD) The initiative was conceived under the Financial Stability Board (FSB). It proposes climate disclosure recommendations for the financial and non-financial sectors in the pillars of Governance, Strategy, Ri
Slide 124: Financial Citizenship | Itaú Women Entrepreneurs
Financial Citizenship | Itaú Women Entrepreneurs e Financial Education Itaú Women Entrepreneurs Program goal Number of participants in the program The Itaú Women Entrepreneurs Program Promote the economic and social (local acronym IME) was created in 2013 as a 2016 2017 2018 9M19 development of the
Slide 125: Transparency in Reporting and Communication
Transparency in Reporting and Communication Organizations and commitments that are sources of knowledge and trends Responsible Bank Integrity and Ethics Sustainable Development Reporting and Transparency Climate Change Women Empowerment and Diversity Red Mujer Emprendedora Program for the promotion
Slide 126: Transparency in Reporting and Communication | Reporting
Transparency in Reporting and Communication | Reporting Integrated Report Integrated Annual Report • First Brazilian financial institution to publish it voluntarily. SEC’s 20-F form • Presentation of the results from 6 capitals: financial, social and relationship, human, intellectual, Financial ESG
Slide 127: Attachment (Portuguese only)
Attachment 02 (portuguese only) Attachment 02 (portuguese only)
Slide 128: Teleconferência Imprensa Resultados do 3º trimestre de 2019
Teleconferência _Imprensa Resultados do 3° trimestre de 2019 Candido Botelho Bracher Presidente e CEO Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO Alexsandro Broedel Diretor Executivo de Finanças e Relações com Investidores 1Teleconferência _Imprensa Resultados do 3° trimestre de 2019 Ca
Slide 129: Destaques do resultado 3º trimestre de 2019
Destaques do resultado 3º trimestre de 2019 Lucro Líquido Recorrente ROE Recorrente Carteira de Crédito ¹ Índice de Inadimplência 90 dias Consolidado Consolidado Consolidado Consolidado 4,4 % 1,7 % estável estável R$ 689,0 bi R$ 7,2 bi 23,5% 2,9% 3T19 vs. 2T19 3T19 vs .2T19 3T19 vs. 2T19 3T19 vs.2T1
Slide 130: Crédito por perfil de Cliente ou por tipo de produto
Crédito por perfil de Cliente ou por tipo de produto Em R$ bilhões, ao final do período 3T19 2T19 D 3T18 D Originação de crédito¹ Pessoas Físicas 229,7 222,3 3,3% 200,0 14,9% 3T19 vs. 3T18 Cartão de Crédito 83,3 7 9,3 5,1% 68,7 21,4% Total Brasil ² 29% Crédito Pessoal 3 4,2 3 2,8 4,5% 28,9 18,5% Cré
Slide 131: Receita de Serviços e Resultado de Seguros
Receita de Serviços e Resultado de Seguros Em R$ bilhões 3T19 2T19 D 3T18 D 9M19 9M18 D 3 Carteiras Administradas e Fundos de Investimento R$ Bilhões Cartões de Crédito e Débito 3,2 3 ,2 0,1% 3 ,4 -5,5% 9,7 10,0 -3,0% Emissão 2,3 2,2 1,5% 2,2 2,7% 6,7 6,3 6,1% 20,8% Adquirência 0,9 1,0 -3,3% 1,2 -20
Slide 132: Clientes
Clientes 55 milhões de clientes Somos um banco com Clientes mais satisfeitos 1 Correntistas pessoas físicas Total 8 pontos 80% tem mais de - + NPS Global 5 anos de conta aberturas perdas em 12 meses + 43% de contas abertas - 29% de contas encerradas ou inativas em relação a 2016 em relação a 2016, e
Slide 133: Despesas não Decorrentes de Juros (DNDJ)
Despesas não Decorrentes de Juros (DNDJ) Programa de Desligamento Voluntário Em R$ bilhões 3T19 2T19 D 3T18 D 9M19 9M18 D Despesas de Pessoal (5,6) ( 5,5) 1,6% ( 5,4) 4,2% (16,5) (15,7) 5,1% Adesão de cerca de 3.500 colaboradores Despesas Administrativas (4,2) ( 4,2) -1,5% (4,2) -0,1% (12,5) ( 12,2)
Slide 134: Teleconferência Imprensa Resultados do 3º trimestre de 2019
Teleconferência _ Imprensa Resultados do 3° trimestre de 2019 Candido Botelho Bracher Presidente e CEO Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO Alexsandro Broedel Diretor Executivo de Finanças e Relações com Investidores 7Teleconferência _ Imprensa Resultados do 3° trimestre de 2019
Slide 135: Attachment
Attachment 03 Attachment 03
Slide 136: Press release: loan portfolio grows 8.3% and lifts profits
Itaú Unibanco’s loan portfolio grows 8.3% and lifts profits in the third quarter 2019 Low levels of delinquency and control of costs also contribute to recurring net income of R$ 7.2 billion in the period São Paulo, November 4, 2019 – In a scenario of gradual recovery of economic growth, 1 Itaú Unib
Slide 137: Press release (continued)
rose 6.8% against the second quarter 2018, driven by higher revenues from “The loan portfolio continues performing investment banking, brokerage services positively. As in recent quarters, its growth was driven by the Individuals and Very and asset management. Small, Small and Middle-Market Company
Slide 138: Attachment
Attachment 04 Attachment 04
Slide 139: Conference Call 3rd quarter 2019 Earnings Review
Conference Call rd 3 quarter 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 1Conference Call rd 3 quarter 2019 Earnings Review Candido Botelho Brache
Slide 140: Highlights 3rd quarter 2019
Highlights rd 3 quarter 2019 Recurring Net Income Recurring ROE Credit ¹ NPL 90 days Consolidated Consolidated Consolidated Consolidated 4.4 % 1.7 % stable stable R$689.0 bn R$7.2 bn 23.5% 2.9% 3Q19 vs. 2Q19 3Q19 vs. 2Q19 3Q19 vs. 2Q19 3Q19 vs. 2Q19 Brazil Brazil Brazil Brazil 4.9 % 2.0 % stable -10
Slide 141: Recurring Net Income and Value Creation
Recurring Net Income and Value Creation 23.6% 23.5% 23.5% 21.8% 21.3% ROE Average Cost of Capital 14.5% 14.5% 13.5% 13.0% 12.5% Recurring Net Income 7.2 7.0 6.9 6.5 6.5 Value Creation 2.0 3.3 2.9 3.2 2.2 Cost of Capital 4.5 4.3 4.0 3.9 3.8 3Q18 4Q18 1Q19 2Q19 3Q19 3 In R$ billionRecurring Net Income
Slide 142: Credit by Client profile or Product
Credit by Client profile or Product Credit origination¹ In R$ billions, end of period 3Q19 2Q19 D 3Q18 D 3Q19 vs. 3Q18 Individuals 2 29.7 222.3 3.3% 200.0 14.9% Total Credit Card Loans 8 3.3 7 9.3 5.1% 6 8.7 21.4% Brazil ² 29% Personal Loans 3 4.2 32.8 4.5% 2 8.9 18.5% Payroll Loans 4 9.3 49.1 0.5%
Slide 143: Financial Margin with Clients
Financial Margin with Clients Annualized Average Rate Brazil Consolidated 12.2% 12.1% 12.1% 12.2% 12.2% 12.0% 12.0% 11.8% 10.0% 10.0% 10.0% 9.9% 9.9% 9.9% 9.8% 9.8% 9.5% 9.6% 9.0% 9.2% 9.2% 9.2% 9.0% 8.9% 7.7% 7.4% 7.6% 7.6% 7.6% 7.5% 7.4% 7.5% 7.1% 6.7% 6.4% 6.4% 6.4% 6.4% 6.4% 6.0% 4Q17 1Q18 2Q18
Slide 144: Financial Margin with the Market
Financial Margin with the Market In R$ billions 1.7 1.6 4.3 1.5 4.3 1.5 1.4 1.4 1.4 0.1 1.3 1.2 3.0 3.2 1.7 1.6 1.5 1.4 1.4 1.3 1.1 1.3 1.2 0.1 0.2 1.1 1.0 1.3 0.9 1.2 1.1 0.9 1.0 0.5 1.2 1.0 0.5 0.5 0.2 0.2 0.5 0.3 0.3 0.4 0.3 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19 Financial Margin
Slide 145: Cost of Credit and Credit Quality
Cost of Credit and Credit Quality NPL Ratio Consolidated (90 days) - % Brazil (90 days) - % Consolidated (15-90 days) - % Brazil (15-90 days) - % 3.1 3.7 3.5 3.5 3.5 4.7 3.5 3.4 4.5 3.4 3.4 3.4 4.5 4.5 4.4 4.4 3.2 3.2 2.9 2.8 2.3 2.6 2.9 3.0 2.5 2.9 2.9 2.9 3.7 2.5 2.9 2.8 2.5 1.8 3.4 2.7 1.8 2.4 2.
Slide 146: Retail Bank - Cost of Credit and Credit Quality
Retail Bank - Cost of Credit and Credit Quality economic contraction 8.0 7.9 7.7 7.6 7.4 7.2 7.2 6.9 6.8 6.7 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 5.1 5.0 5.0 4.9 4.8 4.7 4.7 4.6 4.6 17.6 17.3 17.0 16.6 16.1 16.4 15.9 15.2 15.6 14.9 14.9 14.5 14.5 14.3 1
Slide 147: Commissions and Fees and Result From Insurance Operations
Commissions and Fees and Result From Insurance Operations 3 In R$ billions Assets Under Administration 3Q19 2Q19 D 3Q18 D 9M19 9M18 D In R$ billions Credit and Debit Cards 3 ,2 3 ,2 0,1% 3,4 -5,5% 9,7 10,0 -3,0% Card Issuance 2,3 2,2 1,5% 2 ,2 2,7% 6,7 6,3 6,1% 20.8% 1,290 Acquiring 0,9 1,0 -3,3% 1
Slide 148: Clients
Clients We are a bank with 55 million clients Clients more satisfied 1 Individual account holders Total 8 points 80% are more than - + Global NPS 5-year-old accounts openings closures in the last 12 months + 43% accounts opened - 29% closures and inactive accounts compared to 2016 compared to 2016,
Slide 149: Non-Interest Expenses
Non-Interest Expenses In R$ billions Voluntary Severance Program 3Q19 2Q19 D 3Q18 D 9M19 9M18 D Personnel Expenses (5.6) (5.5) 1.6% (5 .4) 4.2% (1 6.5) (15.7) 5.1% ~ 3.5 thousand employees adhered Administrative Expenses (4.2) (4 .2) -1.5% (4 .2) -0.1% (1 2.5) (12.2) 2.5% Operating Expenses (1 .3) (
Slide 150: Capital: Full application of Basel III rules
Capital Full application of Basel III rules│ September 30, 2019 rd Payment of R$7.7 billion in complementary dividends on August 23 , 2019. 14.9% 14.1% 0.7% -0.7% -0.2% -0.6% 1.3% 1.3% 13.6% 12.8% Tier I 3Q19 net income and Additional dividends and IOC Prudential Adjustments RWA Tier I Jun-19 other
Slide 151: 2019 Forecast
2019 Forecast Consolidated Brazil ¹ Total Credit Portfolio ² 8.0% 11.0% 8.0% 11.0% Financial Margin with Clients 9.0% 12.0% 9.0% 12.0% Financial Margin with the Market R$4.6 bn R$5.6 bn R$3.6 bn R$4.6 bn Cost of Credit ³ R$14.5 bn R$12.5 bn R$17.5 bn R$15.5 bn 4 Commissions and Fees and Results from
Slide 152: Appendix
Appendix 14Appendix 14
Slide 153: Results
Results In R$ Billions 3Q19 2Q19 Δ 3Q18 Δ 9M19 9M18Δ Operating Revenues 30.3 29.5 2.6% 27.9 8.5% 88.0 83.3 5.5% Managerial Financial Margin 19.1 1 8.5 3.4% 17.4 9.6% 55.2 51.7 6.7% Financial Margin with Clients 17.6 1 6.9 4.4% 16.2 9.1% 5 0.9 47.4 7.5% Financial Margin with the Market 1.5 1.6 -7.8%
Slide 154: Business Model
Business Model In R$ billions 9M19 9M18Δ Insurance Excess Insurance Excess Insurance Excess Consolidated Consolidated Consolidated Credit Trading Credit Trading Credit Trading & Services Capital & Services Capital & Services Capital Operating Revenues 4 6.8 1.2 38.9 1.1 4 2.9 1.4 3 7.7 1.3 3.8 ( 0.2
Slide 155: Payout Practice
Payout Practice Maintain the practice of paying dividends and interest on own capital at 35% of net income (however we excluded the maximum limit previously determined at 45%). Set forth, through the Board of Directors, the total amount to be distributed each year considering: our capitalization lev
Slide 156: Digital Transformation
Digital Transformation % of transactions through digital channels Use of Digital Channels ¹ 9M17 9M19 Individuals (in millions) Companies (in millions) 2 Credit 17% 20% 12.2 10.7 2 1.2 Investments 37% 47% 1.1 1.0 9.4 2 Payments 67% 80% 3 Transfers 89% 95% Sep-17 Sep-18 Sep-19 Sep-17 Sep-18 Sep-19 Ne
Slide 157: Conference Call 3rd quarter 2019 Earnings Review
Conference Call rd 3 quarter 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 19Conference Call rd 3 quarter 2019 Earnings Review Candido Botelho Brach
Itau Unibanco Holding — Q3 2019 Earnings Presentation on 6ix