Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q2 2021 Earnings Presentation
132 slides from Itau Unibanco's earnings presentation, Aug 3, 2021
Slide 1: Announcement to the Market: 2nd Quarter 2021 Result
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. 2nd Quarter 2021 Result Itaú Unibanco Holding S.A. (“Company”) announces to its shareholders and the market at large that the Complete Financial Statem
Slide 2: Attachment 01 (Portuguese only)
Attachment 01 (portuguese only)
Slide 3: Teleconferência com a imprensa 2T21
Itaú Unibanco Holding S.A. teleconferência com a imprensa 2T21 Milton MaluhyFilho Alexsandro Broedel Renato Lulia Jacob Presidente ChiefFinancial Officer (CFO) Diretor de Relações com Investidores e Inteligência de Mercado São Paulo, 3 de agosto de 2021
Slide 4: Destaques do trimestre
destaques do trimestre variação 2T21 vs. 1T21 carteira de resultado crédito Brasil cartãode crédito crédito recorrente crédito consignado imobiliário PF gerencial R$ 699,0 bi 6,7% 5,5% 12,8% 4,6% R$ 6,5 bi 2,3% margem com NPL 90 receitas índice de clientes pessoas físicas de serviços e eficiência Br
Slide 5: Reorganização do atendimento presencial
reorganização do atendimento presencial unificação das equipes (comercial + operacional) conveniência jornadas simplificadas remodelação da rede de agências + 23% contas abertas 54% 2X crédito + relacionamentos abertas 2T21 vs2T19 digital de forma novas contas para as nosso parte relevante do valor
Slide 6: Agenda de desenvolvimento sustentável
agenda de desenvolvimento sustentável Queremos reforçar nosso papel como um dos principais agentes de transformação econômica e social no País. R$ 122,6 bilhões já alocados de agosto de 2019 a junho de 2021 contribuir com 400 R$ 400 bilhões dez/25 R$108,3 bi R$ 14,3 bi para o desenvolvimento crédito
Slide 7: Carteira de crédito e originação
originação de créditos com carteira de crédito garantia no 2T21 em R$ bilhões crédito financiamento de imobiliário PF¹ veículos PF e PJ jun/21 mar/21 D jun/20 D pessoas físicas 279,7 261,3 7,0% 228,8 22,2% R$ 12,3 bi R$ 8,2 bi cartão de crédito 88,3 82,8 6,7% 72,9 21,2% 14,7% 24,2% crédito pessoal 3
Slide 8: Margem financeira com clientes
margem financeira com clientes margem financeira com clientes margem financeira com clientes ajustado ao risco margem média anualizada -consolidado margemmédia anualizada -Brasil 10,2% 8,4% 7,5% 9,0% 8,6% 8,6% 7,3% 7,3% 7,4% 8,5% 5,4% 5,3% 6,2% 6,2% 5,9% 4,5% 5,2% 5,4% 4,3% 4,4% 2T20 3T20 4T20 1T21
Slide 9: Serviços e seguros
serviços e seguros ranking de investmentbanking ³ recorde no número em R$ bilhões D de operações no 1S21 2T21 1T21 2T20 D cartões de crédito e débito 3,1 2,9 6,0% 2,5 21,9% 1º lugar emissão 2,4 2,3 7,2% 2,0 22,5% renda variável adquirência 0,6 0,6 1,8% 0,5 19,7% R$ 15,4 bilhões conta corrente 1,8 1,
Slide 10: Qualidade de crédito
qualidade de crédito custo do crédito¹ índice de cobertura – NPL 90 dias (%) custo do crédito anualizado / carteira de crédito² -(%) 1013% 920% 952% 922% atacado 835% Brasil 519% 3,9% 470% 443% 3,0% 2,8% 341% 430% 1,9% 2,1% América Latina 281% 339% 320% 298% 283% 7,8 6,3 6,0 4,1 4,7 total varejo 253
Slide 11: Despesas não decorrentes de juros
despesas não decorrentes de juros (DNDJ) Índice de eficiência 46,5% 46,3% em R$ bilhões 45,4% 2T21 1T21 D 1S21 1S20 D 44,5% despesas de pessoal (5,0) (4,9) 1,6% (9,9) (9,2) 7,4% 44,7% 44,7% despesas administrativas (3,9) (4,0) -2,7% (7,9) (8,0) -2,1% 43,8% 42,7% outras despesas(1) (1,7) (1,5) 10,3%
Slide 12: Atingimos níveis de performance pré-crise
atingimos níveis de performance précrise 1S21 1S19 em R$ bilhões, exceto quando indicado produto bancário crescimentos da carteira de crédito e da receita de serviços associados a recuperação da 60,7 57,7 atividade econômica e um forte desempenho do mercado de capitais despesas não decorrentes de ju
Slide 13: Guidance 2021
guidance2021 consolidado Brasil¹ anterior revisado anterior revisado crescimentoentre crescimentoentre crescimento entre crescimento entre carteira de crédito total² 5,5% e 9,5% 8,5% e 11,5% 8,5% e 12,5% 12,5% e 15,5% margem financeira crescimentoentre crescimento entre 2,5% e 6,5% mantido 3,0% e 7,
Slide 14: Teleconferência com a imprensa 2T21
Itaú Unibanco Holding S.A. teleconferência com a imprensa 2T21 Milton MaluhyFilho Alexsandro Broedel Renato Lulia Jacob Presidente ChiefFinancial Officer (CFO) Diretor de Relações com Investidores e Inteligência de Mercado São Paulo, 3 de agosto de 2021
Slide 15: Attachment
Attachment 02
Slide 16: 2Q21 earnings review
Itaú Unibanco Holding S.A. 2Q21 earningsreview Milton Maluhy Filho Alexsandro Broedel Renato Lulia Jacob ChiefExecutiveOffice (CEO) Chief Financial Officer (CFO) GroupHead ofInvestor Relationsand Marketing Intelligence São Paulo, August 3rd, 2021
Slide 17: Quarter highlights
quarter highlights 2Q21 vs. 1Q21 change recurring credit managerial portfolio Brazil credit payroll mortgage for card loans individuals results R$699.0 Bn 6.7% 5.5% 12.8% 4.6% R$6.5 Bn 2.3% margin with 90 daysNPL commissions efficiency clients individuals and insurance ratio Brazil Brazil recurring
Slide 18: Revamp of in-person services
revampofin-personservices combinationofcommercialandoperationalteams convenience simplifiedjourneys branchnetwork remodeling + 23% 54% 2X + Ourfuture now. open creditfor accounts relevant part relationships opened digitally new accounts of value will be 2Q21 vs2Q19 ourcommitment captured in short an
Slide 19: Payroll loan
payrollloan we won the bidding process expansion to cater payroll services for the employees of the state of Minas Gerais portfolio In R$ billion 5.5% ~ R$8 bn vs. Mar-21 618 payroll loans R$4.8 bn 59.1 17.3% thousand balance per month 56.1 vs. Jun-20 employees payment is the monthly to 50.4 3.8 4.6
Slide 20: Small and medium companies
small and medium and the transformation continues companies beyond banking to ecosystem meet all customer of partnerships needs SME operation has this happened due to a doubled in size in deep transformation the last four years of the operation credit portfolio with a sustainable and first deliverab
Slide 21: Sustainable development agenda
sustainable development agenda We are committed to further strength our role as one of the main agents of economic and social transformation in Brazil. R$122.6 billion already deployed our goal is to from August2019 to June 2021 allocate 400 R$ 400 billion Dec-25 R$108.3 Bn R$14.3 Bn to sustainable
Slide 22: Secured loans and credit portfolio
secured loans creditportfolio origination in 2Q21 mortgage for auto loans for In R$ billions individuals ¹ individuals and jun-21 mar-21 D jun-20 D companies individuals 279.7 261.3 7.0% 228.8 22.2% R$12.3 bn R$8.2 bn credit card loans 88.3 82.8 6.7% 72.9 21.2% 14.7% 24.2% personal loans 36.0 35.6 1
Slide 23: Financial margin with clients
financial marginwithclients financial marginwithclients risk-adjusted financial margin with clients annualizedaverage margin-consolidated annualizedaverage margin-Brazil 10.2% 8.4% 9.0% 8.6% 7.5% 7.3% 7.3% 7.4% 8.5% 8.6% 5.4% 5.3% 6.2% 6.2% 5.9% 4.3% 4.4% 4.5% 5.2% 5.4% 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20
Slide 24: Financial margin with the market
financialmarginwiththemarket inR$ billion 1-year movingaverage Brazil¹ LatinAmerica² 1.8 1.7 1.3 1.4 1.4 1.3 1.2 1.2 1.3 2.5 2.0 1.6 1.5 1.4 1.6 1.5 1.3 1.3 0.8 1.1 1.1 1.5 1.1 1.0 0.7 0.7 0.4 1.0 0.5 0.4 0.6 0.4 0.6 0.3 0.5 0.5 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 (1) Includes unitsabroadex
Slide 25: The most complete credit card shelf
the most complete credit 35.6 30.6 card shelf on the market million million creditcards cards debit one card for each 1.3 mi vs. Jun-20 7.8% vs. Jun-20 2.7% type of client in credit June cards issued 2021 +2x vs Mar-21 options according to the benefit 51% transactionvolume in R$ billion digital of s
Slide 26: Commissions and insurance
commissionsandinsurance investment banking ranking³ In R$ billions record number of operations in the 1H21 2Q21 1Q21 D 2Q20 D credit and debit cards 3.1 2.9 6.0% 2.5 21.9% 1st place card issuance 2.4 2.3 7.2% 2.0 22.5% ECM acquiring 0.6 0.6 1.8% 0.5 19.7% R$15.4 billion current account services 1.8
Slide 27: Credit quality
creditquality costofcredit¹ coverageratio–NPL 90 dias (%) ratio between the annualized cost of credit and the loan portfolio² -(%) 1013% 920% 952% 922% wholesale 835% Brazil 519% 470% 443% 430% Latin America 341% 339% 320% 281% 298% 283% 7.8 6.3 6.0 4.1 4.7 total retail 253% 236% 230% 1,2 212% 224%
Slide 28: Non-interest expenses
non-interest expenses efficiency ratio In R$ billions 46.5% 46.3% 45.4% 2Q21 1Q21 D 1H21 1H20 D 44.5% personnel (5.0) (4.9) 1.6% (9.9) (9.2) 7.4% 44.7% 44.7% administrative (3.9) (4.0) -2.7% (7.9) (8.0) -2.1% 43.8% inflation 42.7% other(1) (1.7) (1.5) 10.3% (3.2) (3.5) -9.7% (IPCA) 1H18 1H19 1H20 1H
Slide 29: Technology modernization
technologymodernization 13 thousand technology employees our pix solution is in Jun/21 cloud-native and on + 83% in the last 2 years a modern platform generation of value 20% through systems of all volume + agility for changes transferred in Brazil modernization 99.8% average 6,700 +151% availabilit
Slide 30: Capital
capital 13.0% + 0.0% + 0.4% + 0.2% -0.1% 13.5 % 1.7% 1.6% 11.3% 11.9% Mar -21 XP inc. net income in prudential additional Jun-21 tierI capital partialspin-off thequarter adjustments¹ tierI TierI capital common equity Tier I (CET I) additional tierI (AT1) (1) mainly taxcredits. 15
Slide 31: We have reached pre-crisis performance levels
we have reached pre-crisis performance levels In R$ billion, except when indicated 1H21 1H19 operatingrevenues credit portfolio and fees growth associated with the recovery of economic activity 60.7 57.7 and a strong performance of capital markets non-interest expenses (25.0) (24.8) effective cost r
Slide 32: Guidance 2021
guidance2021 consolidated Brazil¹ previous reviewed previous reviewed growing between growing between growing between growing between totalcredit portfolio² 5.5% to 9.5% 8.5% to 11.5% 8.5% to 12.5% 12.5% to 15.5% financial margin with growing between maintained growing between maintained clients 2.5
Slide 33: Additional information
additional information
Slide 34: Results
results In R$ billions 1Q21 4Q20 D 1Q20 D 1H21 1H20 D operating revenues 30.6 30.0 2.0% 28.0 9.3% 60.7 57.2 6.0% managerial financial margin 18.8 18.6 0.8% 17.8 5.7% 37.4 35.6 5.2% financial margin with clients 16.8 16.2 3.9% 16.5 2.0% 33.0 33.5 -1.6% financial margin with the market 2.0 2.5 -19.1%
Slide 35: Business model
business model The allocation of principal capital (Common Equity Tier 1) in the bank’s business is made at 12%, according to our risk appetite. 1st Half2021 1St Half 2020 1H21 vs. 1H20 Trading Insurance Excess Trading Insurance Excess Trading Insurance Excess Em R$ bilhões Total Credit Total Credit
Slide 36: Business monitoring
business monitoring individuals auto loans agribusiness 2021 target mortgage individualsandcompanies segment 15 million R$12.3 Bn R$8.2 Bn R$14.3 Bn clients credit 14.7% 24.2% 40.1% granted 2Q21 vs. 1Q21 2Q21 vs. 1Q21 2Q21 vs. 1Q21 in 2Q21 262.7% 154.5% 39.0% 2Q21 vs. 2Q20 2Q21 vs. 2Q20 2Q21 vs. 2Q2
Slide 37: 2Q21 earnings review
Itaú Unibanco Holding S.A. 2Q21 earningsreview Milton Maluhy Filho Alexsandro Broedel Renato Lulia Jacob ChiefExecutiveOffice (CEO) Chief Financial Officer (CFO) GroupHead ofInvestor Relationsand Marketing Intelligence São Paulo, August 3rd, 2021
Slide 38: Attachment
Attachment 03
Slide 39: 2Q21 Institutional Presentation
Itaú Unibanco Holding S.A. 2Q21 Institutional Presentation
Slide 40: Forward-looking statements
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,theyinvolveknown an
Slide 41: Agenda
Agenda Corporate 04 profile 11 Strategic Our agenda businesses 17 44 Corporate governance Capital and 53 risk management 66 Financial highlights Additional 77 information
Slide 42: = ° = [-5 a P=) od ° Qa he {-} uu
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Slide 43: About us?
About Corporate profile us? Universal bank | 97 years of history | largest bank in Latin America¹ Recurring Recurring Managerial Market Value³ Total assets³ Credit portfolio³ 4 4 Tier I Capital³ Managerial ROE Result US$58.6 bn R$2,065.7 bn R$909.1 bn 13.5% 18.9% R$6.5 bn We are present in 18 countr
Slide 44: What do we do?
Corporate What profile do we do? Full offering of products and services | diversified client base | solid brand A complete Credit Services Insurance The Retail Bank physical and digital $ Personal Current Life includes retail clients, high-income clients bank Cards Cards and acquiring Homeowners ins
Slide 45: How have we evolved?
Corporate How profile have we evolved? Adaptable culture | innovation | transparency in business UK decides to World Health We have NY Stock World War II First First First Internet Itaú on leave the Organization witnessed Exchange ends overseas version of providers the NY European declares important
Slide 46: Positive Impact Commitments
Corporate Positive profile Impact Commitments Our sustainability strategy is translated into 10 positive impact commitments, classified into four categories: Business Accountability Financial Inclusion and Financing positive Responsible Transparency in citizenship entrepreneurship impact sectors inv
Slide 47: Highlights of the positive impact agenda
Corporate Highlights profile of the positive impact agenda Find out some of our ESG initiatives and how they are integrated into our business Business Corporate behavior R$400 billion for sustainable development up to 2025 WEPs (Women’s Empowerment Principles) Brazil Award 2021 Credit to positive im
Slide 48: People
Corporate People profile 98 thousand LGBT+ In our employees’ view³ Employees (Scores 9-10) Advocates 84% in Brazil and overseas →We are committed to the “Business and LGBT+ Rights Forum” and the “UN 80 Neutrals 13% Gender equality¹ Standards of Conduct for Business” . (Scores 7-8) e-NPS Knockers (
Slide 49: Strategic agenda
Strategic agenda
Slide 50: Cultural transformation
Cultural Strategic Agenda transformation Cultural transformation to build a more efficient, simpler and agile bank for our clients Client Centricity Digital Transformation We want to be thetransforming our culture so that the client is atbenchmark in satisfaction, transformation, Technology is the g
Slide 51: Client Centricity
Client Strategic Agenda Centricity Serving our clients Omnichannel Phygital Satisfied clients create where, when and how Access to the sametype of service relationship: Freedom to choose the type of we are a digital bank more value they want to be regardless of channel with the advantage of in-perso
Slide 52: Digital Transformation
Digital Strategic Agenda Transformation Technology enabling our clients to have the best service solveApplying problems technologies with to Focus on quickly speeds and using data to solving clients’ cloud artificial big data e agile communities issues intelligence analytics management develop produ
Slide 53: Efficiency
Efficiency Strategic Agenda Developing and implementing structural efficiency gains initiatives Strengtheningculture Ongoing Ongoing challenging activities and processes to seek technology efficiency gains investments 2021e vs2018 + 2x 18 fronts of unique work goal action methodology progressively s
Slide 54: Growth
Growth StrategicAgenda Sustainable growth based Relationship Investment on long-term client Platform Platform relationships a free account for clients demanding a window display of product from products and services in a simplified way suitable which each product investor to its profile. may find th
Slide 55: Our business
Our business
Slide 56: Who are our clients?
Who Ourbusiness 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 Private Bank > R$4 billion >R$5 million in total investment Large Personn
Slide 57: Retail Banking
Retail Ourbusiness Banking Serving a clientbase ofover Branches and CSBs Main 50 million clients 2Q21 Results Ourdistributionnetwork¹ Recurring R$2.4 billion 3,874 BRANCHES AND CSBs² IN BRAZIL Managerial Result 3 % 8 % 7 % 67 % 15 % Northeast Southeast South Brick and Mortar Branches North Midwest a
Slide 58: Retail Banking: digital channels
Retail Ourbusiness Banking The use ofour digital channels significantly increased over thelast years. Our digital branches are an important channel to serve those clientes who almost do not use brick and mortar branches Use of digital channels¹ Revamp ofin-person services Total currentaccountholders
Slide 59: Wholesale Banking
Wholesale Ourbusiness Banking Only in Brazil, we serve approximately Main Main 24 thousand corporate and productsandservices 2Q21 Results institutional groups Creditsolutions Nationalandforeigncurrency Recurring R$2.5 billion Managerial Result Oursaleschannelsreachinstitutionalclientsin 18 Service s
Slide 60: 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 onthe 94.3 86.8 89.5 weekends. 81.0 83.1 The payroll loans portfolio accounts for 63% oftotal 69.8 72
Slide 61: Mortgage Loans
Mortgage Our business Loans $ Client focused Mortgage loans portfolio Products and sales channels (In R$ billion) (In %) Quick and efficient process with credit analysis in uptoonehour for + 39.4 % 47.8 48.1 47.6 48.3 49.2 50.3 53.8 60.2 75.0 vs Jun-20 operations ofuptoR$1.5 million. 8.6% 9.2% 7.5%
Slide 62: Mortgage Loans: loan to value
Our Mortgage business Loans¹ $ Loan to Value (In %) 62.1% 63.1% 64.6% Vintage (quarterly average) 57.3% 58.4% 59.7% 56.0% 54.5% 54.7% -7.1 p.p vsJun-20 40.9% 40.2% 39.9% 38.7% 38.7% 38.6% 38.3% 44.5% 35.7% Mortgage Loan Portfolio + 6.2 p.p. Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun
Slide 63: Vehicles
Our business $ Vehicles Loan portfolio by client profile Contracting (In R$ billion) Contracts—thousand + 38.8%ï,§ 17.5 thousand sales points; 31 41.0ï,§ Saleoflightand heavy vehicles: 19 35.7 11 28.1 29.5 15.2 23.2 12.3 • 80%of contracts aremadeinstoresand dealers; 16.4 16.7 17.8 20.2 9.1 10.1 4.3
Slide 64: Vehicles: main products and services
Our business $ Vehicles Main products and services iCarros Portal ï,§ 20.3M access/monthï,§ 86% mobile Evolution of financing proposals on the iCarros platform: (Base 100) Facial Recognition 147 138 E-commerce solution 1 12 Simple and safe contracting process. 111 Integrated payment and financial se
Slide 65: Credit Card
Credit Ourbusiness Card the most complete credit 35.6 30.6 million million card shelf on the market credit debit 1.3 m cards cards in June 2021 credit cards issued 7.8% 2.7% one card for each +2x vs Mar/21 vs. Jun/20 vs. Jun/20 type of client 51% Commercial partnerships Main partnerships with retail
Slide 66: Credit Card transaction volume
Credit Ourbusiness Card Transaction Volume (R$ million) Total 2Q21 21.4%¹ 146,787 135,615 R$146.8 billions oftotal salesare carried 37,056 Debit + 8.2% (vs. 1Q21) out using digital channels 101,335 35,513 + 44.9% (vs. 2Q20) 25,509 Credit 45.4%² in 1Q21 109,731 Credit + 9.6% (vs. 1Q21) 100,102 + 44.7
Slide 67: Acquiring services
Acquiring Ourbusiness services Transaction Volume (R$ million) Our brand 2Q21 146,461 Total 131,663 R$146.5 billions 56,486 Debit +11.2% (vs. 1Q21) 102,521 50,117 + 42.9% (vs. 2Q20) More than 40,429 37 card brands credit Credit +10.3% (vs. 1Q21) accepted by Rede 81,546 89,975 + 44.9% (vs. 2Q20) 62,0
Slide 68: iti
iti Ourbusiness iti Itaú + than 100% digital bank 7.8 MM freeand differentiated account clients in junho2021 account opening in up to 4 minutes payment account + than + than digital cash withdrawal on ATMs 2.6 MM 115% PIX (instant transfer) new clients of growth in credit cards payments in 2Q21 sale
Slide 69: Insurance
Our Insurance business We insurance offer a core wide activities,range of insurance which include products our 30%related equity to life, stake personal in Porto accidents, Seguro, consist vehicles ofand mass property,-market insurance credit and productstravel. Our related to life and property, and
Slide 70: Insurance: Open Platform
Insurance Ourbusiness | Open Platform Auto andFleet Insurance Insurance consultants Life (Individual andGroup) Insurance Shop + Health (Group) Multi-channel distribution Manager WholeLife Focused on commissions and fees Cashier CreditLife Internal Internet Banking/Mobile Dental (Individuals andGroup
Slide 71: Pension plan
Pension Ourbusiness plan Open platform Reasons toinvest: Concept 1,3,6,9: Howmuchdoes theclienthaveto savetoenjoya peaceful retirement? 1 5 Financial Retirement return Years of salary accumulated Age Funds carefully selected 2 Future expenses Enable easy 6 1 35 always keeping theclientin changing of
Slide 72: Investments: Open Platform
Services Ourbusiness | Investments Investment Open Platform Third-party products offered Funds Fixed income 2 Fixed Income CDB Multimarket LCA Funds Fixed Income Pension Plan Variable Income ETF Real EstateFund Treasury Direct COE Savings Equity LCI Pension Plan Variable Income Pension Plan Fixed In
Slide 73: Investments: Asset management
Services Ourbusiness | Investments Asset management Transformation in the investment journey themost complete product shelf on the market Personal assistance or digital service—digital experience Investments New available toallourclients Jun-21 vsMar-21 , in R$ billion investments The best digital i
Slide 74: Wholesale Banking: Investment Banking
Services Ourbusiness | Wholesale Banking Middle Investment Banking Annual revenues from R$30 mn to R$500 mn Leadership position and client recognition “Focused on clients with the best ratings, with 92% of the Fixed income credits being rated B3 or better, and with operations in We engaged in local
Slide 75: Small and medium companies
Services Ourbusiness | Smalland medium companies and the transformation continues beyond banking SME operation has this happened due to a ecosystem of partnerships doubled in size in deep transformation to meet all customer needs the last four years of the operation credit portfolio with a sustainab
Slide 76: Agribusiness
Services Ourbusiness | Agribusiness relevant expansion in credit portfolio balance in R$ billion agribusiness 24.0% 49.1 39.6 Agribusiness GDP has + 2x doubled in 10 years, 2.0 representing 27% of Jun-20 Jun-21 Brazil’s GDP in 2020 0.8 main developments and challenges In R$ trillion • socio-environm
Slide 77: Coordinating ESG issuances for our clients
OurServices business | Coordinating ESG Issuances for our clients Issues of ESG bonds Outstanding coordinated by Itaú Unibanco operation in 2020 Sustainability -linked bonds Offshore market -USD 500mm for Klabin -USD 500mm for Movida In the first 6 months of 2021, Itaú BBA -USD 1,000mm for Natura US
Slide 78: Wholesale Banking: WMS
Services Ourbusiness | Wholesale Banking WMS R$ billion Large range of customized wealth management and investments solutions Securities Services Evolution of Assets Under Administration¹ Local Custody: we ended June with R$1,463.1 billion under custody (+4.2% from the Investment product management
Slide 79: Asset Management Kinea
Services Ourbusiness | Wholesale Banking Asset Management Kinea It is an independent platform of management of differentiated investments. With R$57.2 billion in assets as of June 2021, it operates in the segments of Multi-Markets, Real Estate, Pension Plan and Private Equity, Stock and Infrastructu
Slide 80: ESG at Itaú Asset Management
Services Our business | ESG at Itaú Asset Management¹ Itaú Asset Management (IAM) As asset managers, we are responsible for understanding the risks and opportunities involved in the business. Integrating ESG issues into business valuation 99.84% of Assets under Management covered by ESG criteria Wat
Slide 81: XP Inc shareholding
XP IncOurbusiness shareholding CompanhiaMay sediadanas IlhasCayman elistada na Nasdaq We announced our intention to acquire 2017 XP Inc.’s control in stages Itaú Unibanco’s shareholders will be entitled to equity interest in Aug We communicated our commitment to XPartin the same number, type and pro
Slide 82: Corporate governance
Corporate governance
Slide 83: History of our Governance
History Corporate governance of our Governance We facilitates believe accessthat a to sound capital and andmeritocracy contributes -based to business governance, continuity. guided towards long -term value creation, adds value to our business, 1999 2001 2006 2007 2018 1995 Inclusion in the Dow Level
Slide 84: Our governance structure
Our Corporate governance governance structure Egydio de Moreira Souza Family control, with Salles Aranha long-term vision Free Float family family ON PN ON PN 100% 36.73% 81.87% 63.27% 18.13% Cia. E. Johnston 66.36% 33.64% de Participações ON PN 50.00% 0% 33.47% Itaú Unibanco Highly diversified 66.5
Slide 85: Pillars of our governance
Pillars Corporate governance ofour Governance management aligned decisions madeon Focus on performance with meritocracy -based a collective basis andvalue creation culture Family control ensuring long-term strategic vision IUPAR • Alignmentamong shareholders • Defines group’svision, missionandvalues
Slide 86: Board of Directors
CorporateBoard governance of Directors the keyOur Board differentials of Directors of our consists management. of professionals with exceptional knowledge and expertise in different areas of expertise, some of Mainduties 2 Co-chairmen Board of Directors Pedro Moreira Salles 2 4 6 7 Committees • Defi
Slide 87: Board committees
Board Corporate governance of Directors Committees Our committees report directly tothe Board of Directors. Strategic committees 8 since2004 since2011 since2009 since2009 since2018 Audit Compensation Personnel Strategy LATAM Strategy committees 100% ofthemembersare independent 100% ofthemembersare n
Slide 88: Executive Committee
Executive Corporate governance Committee Since the beginning of 2021, this group has the mission to lead the bank’s operations and transformation, in line with the priority fronts of customer satisfaction, efficiency, digitalization and focus on growth. even closer to Milton Maluhy Filho the busines
Slide 89: Partners Program
Corporate Partners governance Program focused Aiming at on aligningmanagement the interests members ofour and officers employees and employees with outstanding with thoseperformance. ofour shareholders, we maintain a partnership program, Long -term incentives The investment The program offersto part
Slide 90: Our shares
Our Corporate shares governance traded Our capital as depositary stock is comprised receipts (ADRof9.8—billion ITUB ) on thecommon NYSE shares (New (ITUB3) York Stock and non Exchange) -voting .shares (ITUB4) . Non -voting shares are also Characteristics ofour shares Appreciation ofR$ 100 invested o
Slide 91: Capital and risk management
Capital andrisk management
Slide 92: Capital management principles
Capital and riskOur principles management of risk management and theThe Board guidelines of Directors involving is our main the institution’scapital management level of capitalization. body, responsible for approving our institutional capital management policy Capital adequacy We adopt acapital, usi
Slide 93: Basel III and capital structure
Basel Capital and risk IIImanagement and Capital structure Our current ratio Basel III requirement 14.9% 1.4% Tier II 2.0% Total Capital (10.25%—12.75%) Additional Tier I Capital (AT1) 1.6% 1.5 % TierI (8.25%—10.75%) CET 1 (6.75%—9.25%) Countercyclical² 0 – 2.5% ACP¹ Systemic³ 1.0 % Conservation 4 1
Slide 94: Capital cost management
Capital Capital and risk management cost management We are continually striving to manage our capital allocation efficiently through an appropriate capital cost. The Board of Directors, then, Board of Directors deliberates on and approves the changes or the ratification of the cost of own capital Wh
Slide 95: How are we structured for managing risks?
How Capital and risk are management we structured for managing risks? risks A classical area and, model lastly, with the three audit lines area of defense: subordinated the business to the Board areas of bearDirectors. primary responsibility for risk management, followed by the Audit Committee Discu
Slide 96: How do we establish our risk appetite?
Capital and riskHow do wemanagement establish our risk appetite? Riskmaximize appetite the defines creation the of value. nature and level of the risks acceptable to our organization, delimiting the conditions in which our management will strive to The policy is drawn up and approved by the Board of
Slide 97: Our risk management principles
Capital and riskOur riskmanagement management principles risk andRisk appetite metrics, consists and coordinates of a 4-layer the set ofstructure: guidelines principles on the of risk assumption management, of risks. declaration by the Board of Directors, magnitude of the theThe employees principles
Slide 98: Market risk and liquidity management
Capital andrisk Market management 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) 431.0 376.0 350.2 341.0 126.0% 125.0% 122.5% 123.6% 122.7% 169.5% 167.2% 179.1% 180.9% 2Q18 2Q19 2Q20
Slide 99: Corporate security
Capital andrisk Corporate management Security Mindset Constant concern about risks Integration with Business and Benchmark with the market with an expanded view of Technology risk and vulnerability testing throughout the perimeter. Presence with the IT and Business teams in the risk assessment of ne
Slide 100: Information security
Information Capital andrisk management Security Our processes guarantee the necessary care and focus to protect our environment vulnerability management and technological infrastructure to face the adherence to security standards in a constant evolution of cyber threats technological environment app
Slide 101: E&S risk management
E&S RiskCapital and risk management Management Our E&S management guidelines are based on institutional issues and cover the most significant risks of our operation through specific procedures. We identify, measure, mitigate and monitor the risks of Excluded Activities Policy social and environmenta
Slide 102: Credit approval criteria
Capital and riskCredit management approval criteria The Environmental and Social Risk Policy determines the environmental and social criteria that must be observed for the grantand renewal of credit to clients and for contracting and monitoring products. Corporations and Agricultural Producers Sensi
Slide 103: Credit approval criteria: guarantees and products
Capital and riskCredit management approval criteria The Environmental and Social Risk Policy determines the environmental and social criteria that must be observed for the grantand renewal of credit to clients and for contracting and monitoring products. Real Estate Guarantees Specific Products and
Slide 104: Financial highlights
Financial highlights
Slide 105: Quarter highlights
quarter highlights 2Q21 vs. 1Q21 change recurring credit managerial portfolio Brazil credit payroll mortgage for card loans individuals results R$699.0 Bn 6.7% 5.5% 12.8% 4.6% R$6.5 Bn 2.3% margin with 90 daysNPL commissions efficiency clients individuals and insurance ratio Brazil Brazil recurring
Slide 106: Secured loans and credit portfolio
secured loans credit portfolio origination in 2Q21 mortgage for auto loans for In R$ billions individuals ¹ individuals and jun-21 mar-21 Ä jun-20 Ä companies individuals 279.7 261.3 7.0% 228.8 22.2% R$12.3 bn R$8.2 bn credit card loans 88.3 82.8 6.7% 72.9 21.2% 14.7% 24.2% personal loans 36.0 35.6
Slide 107: Financial margin with clients
financial margin with clients financial margin with clients risk-adjusted financial margin with clients annualized average margin—consolidated annualized average margin—Brazil 10.2% 8.4% 9.0% 8.6% 7.5% 7.3% 7.3% 7.4% 8.5% 8.6% 5.4% 5.3% 6.2% 6.2% 5.9% 4.3% 4.4% 4.5% 5.2% 5.4% 2Q20 3Q20 4Q20 1Q21 2Q2
Slide 108: Financial margin with the market
financial margin with the market inR$ billion 1-year movingaverage Brazil¹ LatinAmerica² 1.8 1.7 1.3 1.4 1.4 1.3 1.2 1.2 1.3 2.5 2.0 1.6 1.5 1.4 1.6 1.5 1.3 1.3 0.8 1.1 1.1 1.5 1.1 1.0 0.7 0.7 0.4 1.0 0.5 0.4 0.6 0.4 0.6 0.3 0.5 0.5 2T19 3T19 4T19 1T20 2T20 3T20 4T20 1T21 2T21 (1) Includes unitsabro
Slide 109: Commissions and insurance
commissions and insurance investment banking ranking³ In R$ billions record number of operations in the 1H21 2Q21 1Q21 Ä 2Q20 Ä credit and debit cards 3.1 2.9 6.0% 2.5 21.9% 1stplace card issuance 2.4 2.3 7.2% 2.0 22.5% ECM acquiring 0.6 0.6 1.8% 0.5 19.7% R$15.4 billion current account services 1.8
Slide 110: Credit quality
credit quality costofcredit¹ coverageratio –NPL 90 dias (%) ratio between the annualized cost of credit and the loan portfolio² -(%) 1013% 920% 952% 922% 835% wholesale Brazil 519% 470% 443% 430% Latin America 341% 339% 320% 281% 298% 283% 7.8 6.3 6.0 4.7 total 4.1 retail 253% 236% 230% 1,2 212% 224
Slide 111: Non-interest expenses
non -interest expenses efficiency ratio In R$ billions 46.5% 46.3% 45.4% 2Q21 1Q21 Ä 1H21 1H20 Ä 44.5% personnel (5.0) (4.9) 1.6% (9.9) (9.2) 7.4% 44.7% 44.7% administrative (3.9) (4.0) -2.7% (7.9) (8.0) -2.1% 43.8% inflation 42.7% other(1) (1.7) (1.5) 10.3% (3.2) (3.5) -9.7% (IPCA) total—Brazil (10
Slide 112: Capital
capital 13.0% + 0.0% + 0.4% + 0.2% - 0.1% 13.5% 1.7% 1.6% 11.3% 11.9% Mar -21 XP inc. net income in prudential additional Jun-21 tierI capital partialspin-off the quarter adjustments¹ tierI TierI capital common equity Tier I (CET I) additional tierI (AT1) (1) mainlytaxcredits. 74
Slide 113: We have reached pre-crisis performance levels
we have reached pre-crisis performance levels In R$ billion, except when indicated 1H21 1H19 operating revenues credit portfolio and fees growth associated with the recovery of economic activity and 60.7 57.7 a strong performance of capital markets non-interest expenses (25.0) (24.8) effective cost
Slide 114: Guidance 2021
guidance 2021 consolidated Brazil¹ previous reviewed previous reviewed growing between growing between growing between growing between totalcredit portfolio² 5.5% to 9.5% 8.5% to 11.5% 8.5% to 12.5% 12.5% to 15.5% financial margin with growing between maintained growing between maintained clients 2.
Slide 115: Additional information
Additional information
Slide 116: Corporate profile: Additional information
Corporate profile Additional information
Slide 117: A history of successful strategic deals
Additional A History Information of Successful Strategic Deals¹ Acquisition of the remaining 50% of: Uruguay Retail-Brazil NACIONAL Acquisition of the Banco Itaú BMG Consignado Casa minority interest Moreira of: Salles Acquisition of a 1924 minority interest Unibanco in: 1995 -1998 2000 -2003 2004 -
Slide 118: Capital and risk management: Additional information
Capital and risk management Additional information
Slide 119: Capital ratios (BIS)
Capital AdditionalInformation Ratios (BIS) | Prudential Conglomerate ¹ In R$ millions, end of period 2Q21 1Q21 Core Capital 124,964 121,025 Tier I (Core Capital + Additional Capital) 141,674 139,552 Referential Equity (Tier I and Tier II) 156,561 155,280 Total Risk-weighted Exposure (RWA) 1,048,628
Slide 120: Ratings
Ratings AdditionalInformation Itaú Unibanco Holding SA Long-term Short-term Senior Unsecured MTN (Foreign) (P)Ba3 -Currency Foreign—NP Moody’s Currency Local Ba3 NP National Scale AAA.br (Stable) -Subordinate MTN (Foreign) (P)B1— Foreign Currency BB- (Stable) B Standard & Poor’s Local Currency BB- (
Slide 121: Financial highlights: Additional information
Financial Highlights Additional information
Slide 122: Balance sheet: assets and liabilities
Additional Balance Information Sheet – Assets and Liabilities Assets 2Q21 1Q21 Äâ^‹ 2Q20 Äâ^‹ R$ million Current and Long-term Assets 2,039,237 2,087,728 -2.3% 2,039,147 0.0% Cash 39,837 39,369 1.2% 85,428 -53.4% Interbank Investments 218,463 252,251 -13.4% 316,297 -30.9% Securities 657,745 659,818
Slide 123: Credit origination: Brazil
Credit¹ Additional Information Origination | Brazil Base 100 = 2Q18 Total Credit² – Brazil Credit²—Individuals 11% 69% 13% 32% 175 197 158 155 128 149 100 114 116 100 2Q18 2Q19 2Q20 1Q21 2Q21 2Q18 2Q19 2Q20 1Q21 2Q21 Credit² – Very Small, Small and Middle Market Credit² – Corporate 16% -15% 29% -5%
Slide 124: Loan portfolio mix
LoanAdditionalInformation Portfolio Mix Change ¹ (%) R$ billion Consolidated jun/21 6 3. 17.1 17.4 12.2 4.9 9.7 8.2 26.9 jun/21 23.4 23.8 4.9 16.7 6.7 13.3 11.2 jun/20 27.8 22.3 4.3 16.0 8.0 10.7 11.0 Brazil 2 jun/19 24.6 19.8 4.3 19.9 8.0 11.0 12.3 jun/18 28.3 18.4 4.0 18.2 7.5 11.1 12.5 jun/17 32.
Slide 125: Credit portfolio by currency
Credit AdditionalInformation Portfolio by Currency ¹ R$ billion Jun-21 274.6 527.3 801.9 Mar-21 309.6 503.4 812.9 Dec-20 286.1 493.3 779.5 Sep-20 301.7 458.7 760.3 Jun-20 300.4 427.0 727.5 Mar-20 284.8 425.2 710.0 Dec-19 232.8 417.0 649.7 Sep-19 240.0 401.7 641.7 Jun-19 228.3 389.3 617.6 Foreign Cur
Slide 126: Funding
Additional Funding Information • Loan Portfolio mainly funded by domestic client funding • Diversified funding base In R$ millions, end of period 2Q21 1Q21 Äâ^‹ 2Q20 Äâ^‹ Funding from Clients (A) 859,263 891,298 -3.6% 806,755 6.5% Demand Deposits 136,318 141,657 -3.8% 118,787 14.8% Savings Deposits
Slide 127: Loan portfolio to funding ratio
Additional Funding Information Ratio between Loan Portfolio and Funding % Funding (Maturity Breakdown) In days 75.6% 76.8% 76.7% 77.5% 80.7% 65.1% 66.3% 66.5% 67.8% 69.5% R$ billion 181-365 1,069 1,089 1,010 1,039 1,042 31-180 6.5% Over to365 927 952 870 897 897 8.7% 711 738 724 39.6% 657 689 45.2%
Slide 128: Results
Additional 2Q21 Information Results In R$ billions 1Q21 4Q20 Ä 1Q20 Ä 1H21 1H20 Ä operating revenues 30.6 30.0 2.0% 28.0 9.3% 60.7 57.2 6.0% managerial financial margin 18.8 18.6 0.8% 17.8 5.7% 37.4 35.6 5.2% financial margin with clients 16.8 16.2 3.9% 16.5 2.0% 33.0 33.5 -1.6% financial margin wit
Slide 129: Business model
Additional Information Business Model The allocation of principal capital (Common Equity Tier 1) in the bank’s business is made at 12%, according to our risk appetite. 1stHalf2021 1StHalf 2020 1H21 vs. 1H20 Insurance Excess Insurance Excess Insurance Excess Em R$ bilhões Total Credit Trading Total C
Slide 130: Provision for loan losses and cost of credit
Additional Provision Information for Loan Losses and Cost of Credit Provision for Loan Losses by Segment R$ million 6.8% 4.1% 4.2% 4.7% 3.6% 3.7% 3.3% 3.4% 3.1% 3.2% 3.5% 10,398 3.8% 3.2% 3.0% 2.9% 808 2.4% 2.6% 7,561 4,948 4,282 4,483 4,111 4,271 6,145 2,441 6,337 5,641 4,834 3,904 4,206 4,407 4,92
Slide 131: Provision for loan losses and NPL creation by segment
Additional Provision Information for Loan Losses and NPL Creation by Segment Retail Banking -Brazil 221% R$ billion 145% 153% 108% 104% 102% 91% 95% 95% 7.1 4.2 3.9 4.5 4.3 4.5 4.4 4.9 4.9 3.2 5.2 4.6 5.1 4.2 4.5 4.0 4.3 2.3 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Wholesale Banking -Brazil 3108
Slide 132: 2Q21 Institutional Presentation
Itaú Unibanco Holding S.A. 2Q21 Institutional Presentation SaoPaulo, Aug2nd, 2021
Itau Unibanco Holding — Q2 2021 Earnings Presentation on 6ix