Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q4 2015 Earnings Presentation
23 slides from Itau Unibanco's earnings presentation, Feb 3, 2016
Slide 1: 4th quarter 2015 – Earnings Review Conference Call
4th quarter 2015 – Earnings Review Conference Call Roberto Egydio Setubal President and CEO
Slide 2: Highlights
Highlights Recurring Net Income R$5.8 -5.6% (4Q15/3Q15) billion 15.6% (2015/2014) Recurring ROE (p.a.) 1 70 bps (4Q15/3Q15) 22.3% 10 bps (2015/2014) 12-month ROE was 23.9% Credit Quality 3.5% 20 bps (4Q15/3Q15 ) NPL 90 40 bps (4Q15/4Q14) NPL 15-90: 2.6% 40 bps (4Q15/3Q15) 10 bps (4Q15/4Q14) Financia
Slide 3: Recurring ROE / Recurring ROA
Recurring ROE / Recurring ROA Recurring Return on Average Equity (trailing 12 months) Recurring Return on Average Equity (quarterly) Recurring Return on Average Assets – Annualized Itaú Unibanco Holding S.A. 3
Slide 4: Results
Results In R$ millions 4Q15 3Q15 change 4Q14 change 2015 2014 change Operating Revenues 26,680 26,945 (266) -1.0% 23,754 2,926 12.3% 103,910 89,840 14,070 15.7% Managerial Financial Margin 16,764 17,595 (831) -4.7% 14,705 2,059 14.0% 66,557 55,155 11,402 20.7% Financial Margin with Clients 15,495 15
Slide 5: Results 2015 vs 2014 by Brazil and Latin America
Results 2015 2014 change Latin Latin Latin In R$ millions Consolidated Brazil 1 America Consolidated Brazil 1 America Consolidated Brazil 1 America Operating Revenues 103,910 98,228 5,683 89,840 85,529 4,311 15.7% 14.8% 31.8% Managerial Financial Margin 66,557 62,845 3,712 55,155 52,267 2,888 20.7%
Slide 6: Credit and Trading & Insurance and Services
Credit and Trading & Insurance and Services 2015 2014 change Insurance Excess Insurance Excess Insurance Excess Consolidated Credit and Consolidated Credit and Consolidated Credit and In R$ billions Trading and Services Capital Trading and Services Capital Trading and Services Capital Operating Reve
Slide 7: Credit Portfolio
Credit Portfolio In R$ millions, end of period 4Q15 3Q15 change 4Q14 change Individuals 187,556 186,128 0.8% 186,212 0.7% Credit Card Loans 58,542 55,051 6.3% 59,321 -1.3% Personal Loans 28,961 30,256 -4.3% 28,541 1.5% Payroll Loans 45,437 45,695 -0.6% 40,525 12.1% Vehicle Loans 19,984 21,632 -7.6%
Slide 8: Financial Margin
Financial Margin | Annualized average rate Spread-sensitive operations Financial margin with clients Risk-adjusted spread-sensitive operations 1 Risk-adjusted financial margin with clients 1 CDI (annualized quarterly rate) 3 After provision for loan losses, net of recoveries. Itaú Unibanco Holding S
Slide 9: Financial Margin with the Market
Financial Margin with the Market Sale of Cetip/BM&FBovespa Shares Financial Margin with the Market 1-year moving average of Financial Margin with the Market (ex-Sale of Shares) The quarterly average Financial Margin with the Market for the past 8 quarters was R$1,322 million. Itaú Unibanco Holding S
Slide 10: Credit Quality: 90-day NPL Ratio
Credit Quality 15 to 90-day NPL Ratio Individuals Total Corporate Very Small, Small and Middle Market Companies 90-day NPL Ratio Individuals Total Corporate Very Small, Small and Middle Market Companies 1 There were transfers of financial assets with no risk retention and with low probability of rec
Slide 11: 90-day Coverage Ratio
90-day Coverage Ratio Total 90-day Coverage Ratio (%) Allowance for Loan Losses (in R$ billion) 34.1 11.0 7.7 15.4 Complementary Allowance Complementary Allowance Generic Allowance Specific Allowance (R$ billion) Coverage Coverage Coverage 90-day NPL Ratio Excluding Fully Provisioned Credits (%) Ind
Slide 12: Renegotiated Loan Operations
Renegotiated Loan Operations Total Renegotiated Portfolio | Breakdown by Days Overdue* (in R$ billion) Days overdue: measured at the moment of renegotiation Write-off Over 90 days overdue 31-90 days overdue Up to 30 days overdue Non-overdue * Measured at the moment of renegotiation. Delinquency and
Slide 13: Sale and Transfer of Financial Assets – 4Q15
Sale and Transfer of Financial Assets – 4Q15 in R$ millions Transfer of assets with low Sale of portfolios of the Middle Sale of student loan portfolios in probability of recovery, with no risk Market segment that had already Chile with no risk retention retention, to affiliated company been written
Slide 14: Provision for Loan Losses by Segment
Provision for Loan Losses by Segment Retail Banking Wholesale Banking Itaú Unibanco Holding S.A. 14
Slide 15: Insurance and Services | Result by Business Line
Insurance and Services | Result by Business Line Asset Asset and Insurance and Cash Insurance REDE Deposits Management & Liability Other Services Management(1) In R$ billions Consortia Management(2) Operating Revenues 46.9 9.5 7.2 5.2 14.2 3.1 5.8 1.9 Managerial Financial Margin 18.8 0.3 1.7 5.2 5.8
Slide 16: Commissions & Fees and Result from Insurance
Commissions & Fees and Result from Insurance In R$ millions 4Q15 3Q15 change 4Q14 change 2015 2014 change Asset Management ¹ 756 760 (4) -0.5% 650 106 16.3% 2,867 2,642 224 8.5% Current Account Services 1,623 1,462 161 11.0% 1,293 330 25.5% 5,858 4,876 983 20.2% Credit Operations and Guarantees Prov
Slide 17: Non-Interest Expenses
Non-Interest Expenses In R$ millions 4Q15 3Q15 change 4Q14 change 2015 2014 change Personnel Expenses (4,899) (5,011) 112 -2.2% (4,426) (473) 10.7% (18,773) (16,885) (1,888) 11.2% Administrative Expenses (4,558) (4,350) (208) 4.8% (4,253) (305) 7.2% (17,101) (16,211) (890) 5.5% Personnel and Adminis
Slide 18: Core Capital Ratio (Common Equity Tier I)
Core Capital Ratio (Common Equity Tier I) Changes in the Core Capital Ratio in the 4Q15 Full application of Basel III rules │ December 31, 2015 1 Includes the increase in treasury shares and the increase in the negative balance of asset valuation adjustment. 2 Includes deductions of Goodwill, Intang
Slide 19: 2015 Forecast vs Actual
2015 Forecast Actual Total Credit Portfolio 1 Growth of 3.0% to 7.0% Growth of 4.6% 2 Managerial Financial Margin 3 Growth of 14.5% to 17.5% Growth of 20.7% Provision for Loan Losses Net of Recovery of Loans Between R$15 billion and R$18 billion R$18.1 billion Commissions and Fees and Result from In
Slide 20: 2016 Forecast
2016 Forecast Consolidated Brazil 1 Total Credit Portfolio 2 from -0.5% to 4.5% from -1.0% to 3.0% Financial Margin with Clients Growth of 2.0% to 5.0% Growth of 1.0% to 4.0% Provision for Loan Losses Net of Recovery of Loans Between R$22 billion and R$25 billion Between R$21 billion and R$24 billio
Slide 21: Stock Market Performance
Stock Market Performance Market Capitalization (in R$ billions) Net Dividend Yield 1 Price/Earnings 2 Average Daily Trading Volume (in R$ millions) BM&FBOVESPA (Non-voting + Common) NYSE (ADR) 1 Dividends and Interest on Capital Distributed in the last 12 months of each period/average price of the n
Slide 22: Shares Buybacks
Shares Buybacks Non-voting Shares Acquired * Number Average Price Amount Year (Units) (R$) (R$ million) 2015 115,440,280 28.80 3,324.4 3.8% of the capital stock in non-voting shares 1.9% of total capital stock 2016 7,990,000 25.06 200.2 The balance of treasury non-voting shares** accounts for 5.7% o
Slide 23: 4th quarter 2015 – Earnings Review Conference Call
4th quarter 2015 – Earnings Review Conference Call Roberto Egydio Setubal President and CEO
Itau Unibanco Holding — Q4 2015 Earnings Presentation on 6ix