Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q3 2020 Earnings Presentation
153 slides from Itau Unibanco's earnings presentation, Nov 4, 2020
Slide 1: Announcement to the Market: 3rd Quarter 2020 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. 3rd Quarter 2020 Result Itaú Unibanco Holding S.A. (“Company”) announces to its shareholders and the market at large that the Complete Financial Stateme
Slide 2: Attachment 01 (Portuguese only)
Attachment 01 (portuguese only)
Slide 3: Teleconferência com a Imprensa Resultados 3T20
Teleconferência com a Imprensa Resultados 3T20 São Paulo, 4 de novembro de 2020 Candido Botelho Bracher Presidente e CEO Alexsandro Broedel Diretor Executivo de Finanças Itaú Unibanco Holding S.A. 1 Não CorporativoTeleconferência com a Imprensa Resultados 3T20 São Paulo, 4 de novembro de 2020 Candid
Slide 4: Contexto: momento atual
Contexto Mome Momento nto atual atual Atividade econômica Nossos destaques do trimestre 1 Expectativa de crescimento trimestral do PIB (base 100 = 4T19) 3T20 vs. 3T19 100 Originação de 98 65% 95 Crédito imobiliário LANÇAMENTOS 88 Crédito Imobiliário com Juros de Poupança Crédito com Garantia de Imóv
Slide 5: Destaques financeiros 3T20
Destaques financeiros 3T20 Em R$ bilhões 3T20 vs. 2T20 Carteira de crédito 7,3 7,2 R$ 847,0 bilhões Lucro líquido 5,0 + 4,4% 4,2 3,9 recorrente Margem financeira com clientes R$ 5,0 bi R$ 15,6 bilhões 3T19 4T19 1T20 2T20 3T20 + 19,6% - 5,5% (1) Custo do crédito 23,7% 23,5% R$ 6,3 bilhões ROE recorre
Slide 6: Carteira de crédito 3T20
Carteira de crédito 3T20 Em R$ bilhões Set/20 Jun/20D' Set/19D' Originação de crédito¹ 3T20 2T20 No trimestre 237,7 228,8 3,9% 229,7 3,5% Pessoas Físicas vs. 2T20 vs. 1T20 7 7,5 7 2,9 6,4% 8 3,3 -7,0% Cartão de Crédito Pessoas físicas + - 23% 7% 3 6,6 3 7,3 -1,7% 3 4,2 7,0% Crédito Pessoal Micro, pe
Slide 7: Margem financeira com clientes 3T20
Margem financeira com clientes 3T20 Margem média anualizada % - Consolidado Margem média anualizada % - Brasil 12,1% 12,1% 12,2% 12,2% 11,8% 11,9% 10,0% 10,0% 10,0% 10,0% 9,8% 9,8% 11,1% 9,2% 10,2% 8,4% 9,0% 7,5% 9,6% 7,7% 9,2% 9,2% 7,6% 7,6% 9,2% 7,5% 9,0% 7,4% 8,4% 6,7% 5,4% 4,3% 4,4% 5,2% 3,7% 4,
Slide 8: Varejo: Carteira flexibilizada
Varejo Carte Carte ira ira Fl exibi flexibi liz liada zada Carteira flexibilizada por produto (em R$ bilhões) R$ 53,5 bilhões Saldo em 30 de setembro de 2020 (6% da carteira total) 13,7 39,8 Saldo da carteira com Pessoas Micro e (11% da carteira MPMEs) (17% da carteira PF) flexibilização das condiçõ
Slide 9: Provisão para perda de crédito 3T20
Provisão para perda de crédito 3T20 Em R$ bilhões Custo do crédito¹ 5,3% Modelo de perda esperada 3,9% 3,3% 3,0% Relação entre 2,6% Alocação da provisão total o custo do crédito¹ anualizado 10,1 7,8 Set/20 vs. Set/19 e a carteira 6,3 5,8 4,5 de crédito² - (%) Total 51,1 + 48,3% 49,3 Perda Esperada 3
Slide 10: Digitalização 3T20
Digitalização 3T20 Crescimento e qualidade digital Canais digitais: o novo padrão Fluxo online de abertura de contas Aumento de 16,2% de clientes digitais¹ Em milhares, no trimestre em 12 meses 645 512 13,7 Clientes digitais 12,2 Pessoa física Pessoas físicas 341 Pessoa jurídica 276 268 8,8 8 Carton
Slide 11: Perspectivas
Perspectivas Níveis de liquidez e capitalização adequados aos nossos cenários de stress test. Expansão da carteira de crédito impulsionada principalmente pelo segmento de pessoas físicas, em linha com a recuperação da atividade econômica e níveis de confiança dos clientes. Este crescimento deverá se
Slide 12: Participação XP Inc.
Participação Mome XP I nto nc. atual Histórico Maio/2017 Agosto/2018 O Itaú Unibanco anunciou a intenção de O Itaú Unibanco divulga compromisso com o adquirir o controle da XP Inc. em etapas BACEN de não adquirir o controle da XP Inc. 1. Cisão dessa linha de negócio Estudos em estágio A eventual cis
Slide 13: Teleconferência com a Imprensa Resultados 3T20
Teleconferência com a Imprensa Resultados 3T20 São Paulo, 4 de novembro de 2020 Candido Botelho Bracher Presidente e CEO Alexsandro Broedel Diretor Executivo de Finanças Itaú Unibanco Holding S.A. 11 Não CorporativoTeleconferência com a Imprensa Resultados 3T20 São Paulo, 4 de novembro de 2020 Candi
Slide 14: Attachment 02
Attachment 02
Slide 15: Conference call 3Q20 Earnings review
Conference call 3Q20 Earnings review th São Paulo, November 4 , 2020 Candido Botelho Bracher President and CEO Alexsandro Broedel Executive Director, Group Head of Finance Renato Lulia Jacob Group Head of Investor Relations and Market Intelligence Itaú Unibanco Holding S.A. 1 Não CorporativoConferen
Slide 16: Context: Current outlook
Context Mome Current nto outl atual ook Economic activity Our Quarter Highlights Prospect of Brazilian GDP¹ quarterly growth (base 100 = 4Q19) 3Q20 vs. 3Q19 Mortgage 100 98 65% 95 origination NEW RELEASES 88 Mortgage Loans with Savings Deposit Interest Credit Line Secured by Financed Property 4Q19 1
Slide 17: Financial Highlights
Financial Highlights 3 Não CorporativoFinancial Highlights 3 Não Corporativo
Slide 18: Financial Highlights 3Q20
Financial Highlights 3Q20 In R$ billions 3Q20 vs. 2Q20 Credit portfolio 7.3 7.2 R$847.0 bn Recurring 5.0 + 4.4% 4.2 3.9 net income Financial margin with clients R$5.0 bn R$15.6 bn 3Q19 4Q19 1Q20 2Q20 3Q20 + 19.6% - 5.5% Cost of Credit¹ R$6.3 bn 23.7% 23.5% Recurring ROE - 18.7% 15.7% 13.5% 12.8% Com
Slide 19: Credit portfolio 3Q20
Credit portfolio 3Q20 In R$ billions Credit origination¹ Sep-20 Jun-20D' Sep-19D' 3Q20 2Q20 In the quarter vs. 2Q20 vs. 1Q20 Individuals 2 37.7 228.8 3.9% 229.7 3.5% Individuals + 23% - 7% Credit card loans 77.5 7 2.9 6.4% 8 3.3 -7.0% Personal loans 3 6.6 3 7.3 -1.7% 34.2 7.0% Very Small, Small and
Slide 20: Financial margin with clients 3Q20
Financial margin with clients 3Q20 Annualized average margin % - Consolidated Annualized average margin % - Brazil 12.1% 12.1% 12.2% 12.2% 10.0% 10.0% 10.0% 10.0% 11.8% 11.9% 9.8% 9.8% 11.1% 9.2% 10.2% 8.4% 7.5% 9.0% 9.6% 7.7% 7.6% 7.6% 9.2% 9.2% 9.2% 7.5% 9.0% 7.4% 8.4% 6.7% 4.3% 4.4% 5.4% 5.2% 3.7
Slide 21: Retail: Loan portfolio reprofiling
Retail Loan portfolio reprofiling Reprofiled portfolio by product (in R$ billions) R$53.5 billion th September 30 , 2020 (6% of credit portfolio) 39.8 13.7 Balance of reprofiled loans for Very small and Individuals 17% of Individuals 11% of Small and very individuals, micro and small small companies
Slide 22: Provision for loan losses 3Q20
Provision for loan losses 3Q20 In R$ billions Cost of credit¹ 5.3% Expected loss provisioning model 3.9% 3.3% 3.0% ratio between 2.6% Allocation oftotal provisions the annualized cost of credit¹ 10.1 7.8 Sep-20 vs. Sep-19 and the loan 6.3 5.8 4.5 portfolio² - (%) Total 51.1 + 48.3% 49.3 Expected los
Slide 23: Credit quality 3Q20
Credit quality 3Q20 15-90 days NPL (%) 90 days NPL (%) Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 3.4% 3.4% 3.5% 2.6% 3.2% 2.3% 2.4% 2.6% 2.0% 1.7% 3.1% 2.4% 3.0% 2.3% 2.9% 2.7% 2.2% 2.2% 1.9% 1.7% 5.1% 5.0% 3.5% 4.8% 4.7% 3.2% 3.1% 4.3% 3.0% 3.0% 2.5% 2.4% 2.3% 1.9% 1.9%
Slide 24: Financial margin with the market 3Q20
Financial margin with the market 3Q20 In R$ billions 1.4 1.4 1.4 1.4 1.3 1.3 1.2 1.2 1.2 1.6 1.5 1.4 1.3 1.3 1.3 1.2 1.1 1.1 0.8 0.7 1.0 0.7 0.5 1.1 0.9 1.0 0.2 0.4 0.6 0.6 0.5 0.5 0.4 0.4 0.3 0.3 0.3 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Financial margin with Sale of shares - B3 Financial ma
Slide 25: Commissions, fees and result from insurance operations 3Q20
Commissions, fees and result from insurance operations 3Q20 In R$ billions 3Q20 2Q20 9M20 9M19 Main investment bank rankings in 2020 Credit and debit cards 2.8 2.5 12.9% 8.4 9.7 -13.4% st M&A (Brazil and LatAm)³ 1 place Card issuance 6.5 6.7 2.2 2.0 10.6% -3.0% st Acquiring 0.6 1.9 3.0 ECM (Brazil a
Slide 26: ESG at Itaú Asset Management and Fixed Income
ESG at Itaú Asset Management and Fixed Income 3Q20 Itaú Asset Management R$741 billion 95% of Assets under Management covered by ESG criteria ESG product offering Largest private Asset Manager in Brazil¹ and pioneer in integrating environmental, social and governance aspects in asset selection analy
Slide 27: Non-interest expenses 3Q20
Non-interest expenses 3Q20 In R$ billions Investment in 9M19 3Q20 3Q19 9M20 technology Base 100, in development hours Personnel Expenses -5.3% (15.6) (5.3) (5.6) (16.5) -5.0% Administrative Expenses (4.1) (4.2) -2.0% (12.1) (12.5) -3.1% + 39% 1 Other -6.4% (1.3) (1.4) (3.7) (3.8) -2.3% 9M20 vs. 9M19
Slide 28: Digital 3Q20
Digital 3Q20 Growth and digital quality Digital channels: the new standard Online account opening flow Annual increase of 16.2% of digital clients¹ In thousands, in the quarter 645 512 13.7 Digital clients Individuals 341 12.2 Companies 276 268 Individuals 8 8.8 6 Credit card holders 6.9 4 10.7 3 Co
Slide 29: Capital 3Q20
Capital 3Q20 12,4% 0.2% 12,1% 0.4% 1,7% 1,7% (0.3%) 10,7% 10,4% Jun-20 Net income Prudential RWA of credit² Sep-20 Tier I Capital less minimum adjustments¹ Tier I Capital mandatory dividends (1) Mainly tax credits, (2) Credit risk weighted assets. 15 Não CorporativoCapital 3Q20 12,4% 0.2% 12,1% 0.4%
Slide 30: Perspectives
Perspectives Capital and liquidity at appropriate levels considering our internal stress test scenarios. Expansion of the loan portfolio driven mainly by the individuals’ portfolio, in line with the resumption of economic activity and customer confidence levels. This growth should be supported by lo
Slide 31: Investment XP Inc.
Investment Mome XP I nto nc. atual Historic May-2017 August-2018 Itaú Unibanco announces its intention to Itaú Unibanco discloses its commitment to acquire control of XP Inc. in stages BACEN not to acquire control of XP Inc. 1. Spin-off of this business line Studies in advanced The eventual spin-off
Slide 32: Appendix
Appendix 18 Não CorporativoAppendix 18 Não Corporativo
Slide 33: Results 3Q20
Results 3Q20 In R$ billions 3Q20 3Q19 2Q20 9M20 9M19 Operating revenues 28.4 30.3 -6.2% 28.0 1.4% 85.6 88.0 -2.7% Managerial financial margin 16.9 19.1 17.8 -4.8% 52.5 -11.2% 55.2 -4.9% Financial margin with clients 15.6 17.6 -11.7% 16.5 -5.5% 49.1 50.9 -3.6% Financial margin with the market 1.4 1.5
Slide 34: Business model 9M20
Business model 9M20 The allocation of principal capital (Common Equity Tier 1) in the bank's business is made at 12%, according to our risk appetite. Insurance Excess Insurance Excess Insurance Excess Consolidated Credit Trading Consolidated Credit Trading Consolidated Credit Trading & services capi
Slide 35: Renegotiated Loans Operations 3Q20
Renegotiated Loans Operations 3Q20 25.7 25.2 25.4 24.7 26.0 25.7 28.9 32.6 32.4 Portfolio in Brazil 36.3 35.7 31.7 3.9 3.2 Latin America 1.6 1.7 28.4 28.1 27.9 27.6 2.7 27.3 26.9 Written-off as a Loss 1.7 2.5 2.4 2.2 2.3 2.1 9.8 2.3 9.8 2.0 1.8 2.0 1.8 1.8 1.3 Over 90 days overdue 7.9 7.6 7.3 7.3 8.
Slide 36: Conference call 3Q20 Earnings review
Conference call 3Q20 Earnings review th São Paulo, November 4 , 2020 Candido Botelho Bracher President and CEO Alexsandro Broedel Executive Director, Group Head of Finance Renato Lulia Jacob Group Head of Investor Relations and Market Intelligence Itaú Unibanco Holding S.A. 22 Não CorporativoConfere
Slide 37: Attachment 03
Attachment 03
Slide 38: 3Q20 Institutional Presentation
3Q20 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED LEVEL 1 CDP NYSE BM&FBOVESPA3Q20 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED LEVEL 1 CDP NYSE BM&FBOVESPA
Slide 39: Forward-looking statements
3Q20 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 40: Agenda
Agenda Corporate 04 profile Strategic 13 agenda Our 30 businesses Corporate 51 governance Capital and 60 risk management Financial 75 highlights Additional 89 informationAgenda Corporate 04 profile Strategic 13 agenda Our 30 businesses Corporate 51 governance Capital and 60 risk management Financial
Slide 41: Corporate profile
Corporate profile 4Corporate profile 4
Slide 42: Corporate profile: About us
Corporate profile About us? Universal bank | 96 years of history | largest bank in Latin America¹ 3 3 4 4 3 Market Value³ Total assets Credit portfolio ROE Net income Tier I Capital US$39.0 bn R$2,110.1 bn R$847.0 bn 15.7% R$5.0 bn 12.4% Brazil’s most We are present in 18 countries valuable² brand R
Slide 43: What do we do?
Corporate profile What do we do? Full offering of products and services | diversified client base | solid brand Insurance Credit Services A complete The Retail Bank includes retail clients, $ physical and digital Personal Current accounts Life high-income clients bank and very small and Cards Cards
Slide 44: How have we evolved?
Corporate profile How have we evolved? Adaptable culture | innovation | transparency in business World Health Britain NY Stock First First First Internet Itaú on We have World War II Organization decides to Exchange overseas version of providers the NY witnessed ends declares crisis branch of Window
Slide 45: What are we seeking?
Corporate profile What are we seeking? To change leagues and compare ourselves with the world’s best companies in client satisfaction Our Promoting people’s power Purpose of transformation Ethics are Passionate Simple. People It’s only The best We think Our culture non- about Always mean good for ar
Slide 46: A responsible bank
Corporate profile A responsible bank Our commitments to a We believe that people Main pacts, initiatives and voluntary commitments have the power to positive impact Responsible banking transform the world, and Financing for sectors with a positive impact that a bank can promote To increase our finan
Slide 47: A responsible bank | ESG
Corporate profile A responsible bank | ESG ESG aspects have been integrated into the Bank's management for over two decades 1999 2004 2005 2008 2009 2010 2017 2018 2019 Dow Jones Equator B3’s Corporate Principles for Global Carbon Bloomberg's Sustainable Principles for Sustainability Principles Sust
Slide 48: A responsible bank | Amazon Integrated Plan
Corporate profile A responsible bank | Amazon Integrated Plan Launched together with the banks Bradesco and Santander, this initiative has gathered together sustainable specialists from the three institutions The Amazon Plan includes 10 actions identified as priority in the region Work in the meat p
Slide 49: Todos pela saúde
Corporate profile 2020 | Todos pela saúde R$110 million R$226 million to inform to prepare ~ 175 million people society to resume social activities as normal Campaigns to clarify and raise awareness Support for epidemiological research among the population and guidance on and for the treatment of co
Slide 50: Strategic agenda
Strategic agenda 13Strategic agenda 13
Slide 51: Strategic agenda
Strategic agenda Strategic agenda Following a collective thought process, we defined our strategic agenda in order to achieve consistent and quality results in the years ahead. Customer centricity is the central piece supported by three fundamental pillars: digital transformation, people and efficie
Slide 52: Client Centricity: best experience
Strategic agenda Client Centricity We want our clients to have the best experience That is why we are continually and tirelessly striving to improve our client’s experience each time they engage with the bank Satisfied clients create more value Universal Bank Present Value of R$/client net income, 5
Slide 53: Client Centricity: benchmark in satisfaction
Strategic agenda Client Centricity We want to be the benchmark in satisfaction, transforming our culture so that the client is at the center of everything. Satisfied clients create Our actions, including digital transformation and the efforts involving people management, are designed for our clients
Slide 54: Continuous updates for a better experience
Strategic agenda Client Centricity Continuous updates for a better experience App Store Our apps are among the APP ITAÚ best rated in app stores APP PERSONNALITÉ Play Store (INDIVIDUALS) 4.4 4.7 4.3 4.7 APP LIGHT + 20 MM unique customers using our APP ITAUCARD 1st bank digital channels** offering a
Slide 55: Investment recommendations
Strategic agenda Client Centricity Identified Investment recommendations need: What is the best way to invest my money? Solution The most advantageous 2.5 minutes Data only Itaú has: combination possible for each to generate a ü Expected results from 28,000 financial products and assets client, acco
Slide 56: Digital Transformation: supply vs demand perspective
Strategic agenda Digital Transformation Supply perspective x Demand perspective Traditional model: supply perspective Modern model: demand perspective Tendências de novas tecnologias: Tendências de novas tecnologias: New technology trends: New technology radar: cloud cloud artificial Intelligence an
Slide 57: Digital Transformation: changing how we develop services
Strategic agenda Digital Transformation To achieve digital transformation, we need to change the way we develop services and products Before Market Solution customization time data research development Client Bank Client Now Data customization time data + research + experimenting Client Bank 20Strat
Slide 58: Digital Transformation: velocity to extend digital offer
Strategic agenda Digital Transformation + velocity to extend our digital offer 248 members 95 projects between the bank and startups Cubo startups 417 Cubo is the most relevant 30 filliated different 13 floors hub for technological startups industries + rooftop entrepreneurship promotion in Latin Am
Slide 59: New work methods lead to superior results
Strategic agenda Digital Transformation New work methods lead to superior results Data base 100 More technology solutions Higher productivity Greater number of solutions delivered Reduction in the delivery time of technology solutions 3Q2019 3Q2020 3Q2019 3Q2020 + 73% -27% More availability Reductio
Slide 60: Analytics: listening to 360,000 calls every day
Strategic agenda Digital Transformation Analytics: “listening to” 360,000 calls every day In the past Today One of the Traditional monitoring Speech analytics world’s largest Transcription of 100% of the calls and analysis of the texts voice transcription operations “I would like to increase my limi
Slide 61: Data: the bank's new capital
Strategic agenda Digital Transformation¹ Data: the bank’s new capital Data and State-of-the-art Data analytics algorithms scientists + + Voice data Transactions Biometrics + Results 75 petabytes +511% of value captured in projects in analytics Interactions in Image data Data base: 2017 to Sep-20 dig
Slide 62: Focus on efficiency while investing in technology
Strategic agenda Digital Transformation Focus on efficiency while continually investing in technology Technology investments 11% 154 Inflation (IPCA) 130 accumulated in the 122 period 100 109 106 100 101 47.6 45.3 46.4 45.5 2016 2017 2018 2019 Efficiency Ratio (%) Technology investments (Base 100) N
Slide 63: People
Strategic agenda 1 People By region By age bracket Approximately 4.7 k people 5.4% North > 50 years 97 thousand 1% 45.5 k people Northeast 5% 51.4% 30-50 years Center-West Employees² 3% 38.3 k people Southeast 43.2% up to 30 years in Brazil and overseas 83% South 7% 14% By gender By hierarchical lev
Slide 64: People: employee's experience
Strategic agenda People¹ Employee’s An innovative and inspiring environment. Is Itaú Unibanco a good place to work? experience In our employees’ eyes VoU cOmO sOu Our challenge is to be Rendering our dress code flexible, respecting our Advocates 78% (Scores 9-10) employees and our strategic agenda.
Slide 65: People: compensation and development
Strategic agenda People¹ A bank that recognizes, values and encourages people development. Total compensation Incentive Model Fixed compensation The program takes into account the priorities of the year, the results obtained and the manner in which those R$ 17 billion results are delivered, since al
Slide 66: Efficiency
Strategic agenda Efficiency Our challenge is to continually improve the efficiency of our operations by maintaining clients at the center of our decisions, through strategic cost management and investment in technology and new ways of working in order to boost the use of our resources, while efficie
Slide 67: Our business
Our business 30Our business 30
Slide 68: Who are our clients?
Our business Who are our clients? Through our Retail and Wholesale Banking segments we offer a wide range of products and services tailored to each client profile. Client profile by segment in Brazil Individuals Companies Ultra Private Bank > R$4 billion >R$5 million in total investment Large > R$50
Slide 69: Retail Banking
Our business Retail Banking Serving a client base of over Branches and PABs Main Results 3Q20 56 million clients Our distribution network comprises¹ Net income R$1.4billion 3,974 BRANCHES AND CSBs IN BRAZIL 3 % 8 % 7 % 68 % 15 % Brick and Mortar Branches Northeast North Midwest Southeast South and C
Slide 70: Retail Banking: digital channels
Our business Retail Banking The use of our digital channels significantly increased over the last 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 % of transactions Total current account holders (in
Slide 71: Wholesale Banking
Our business Wholesale Banking Main Main Only in Brazil, we serve approximately products and services Results 3Q20 21,000 corporate and Credit solutions Net National and foreign currency institutional groups R$2.0 billion income Service solutions Our sales channels reach institutional clients in 18
Slide 72: Personal Loans and Payroll Loans
Our business $ Personal Loans and Payroll Loans Personal loans Evolution of personal loans portfolio (In R$ billion) Money in the account $ The money is immediately Payroll loans credited, including on the 86.5 82.8 86.5 The payroll loans portfolio accounts for 59% of total 78.7 weekends. 73.8 73.1
Slide 73: Mortgage Loans
Our business $ Mortgage Loans Client focused Products and sales channels Mortgage loans portfolio (In %) (In R$ billion) Quick and efficient process with + 12.5 % credit analysis in up to one hour for 48.1 48.5 47.2 47.8 48.0 48.5 49.8 51.7 56.0 vs Sep-19 operations of up to R$1 million. 8.8% 8.5% +
Slide 74: Mortgage Loans: Loan to Value
Our business $ Mortgage Loans¹ Loan to Value (Em %) 64.2% 63.8% Vintage (quarterly average) 60.6% 58.6% 57.4% 57.9% 55.1% 55.0% 54.8% + 3.7 p.p vs Sep-19 41.9% 41.6% 40.8% 40.0% 39.1% 38.4% 38.8% 38.8% 36.3% Mortgage Loan Portfolio - 2.5 p.p. vs Sep-19 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-1
Slide 75: Vehicles
Our business $ Vehicles Loan portfolio by client profile Contracting (In R$ billion) Contracts - thousand + 28.7 % § 15.7 thousand sales points; 48 45 32.5 § Sale of light and heavy vehicles: 29.3 43 25.3 11.0 21.6 9.9 19.2 18.8 • 81% of contracts are made in stores and dealers; 17.1 7.3 17.3 16.2 5
Slide 76: Vehicles: iCarros Portal
Our business $ Vehicles iCarros Portal Main products and services § 20.4M access/month § 86% mobile Evolution of financing proposals on the iCarros platform: (Base 100) 179 Facial Recognition 1 E-commerce solution 12 147 Simple and safe contracting process. Integrated payment and financial services
Slide 77: Credit Card
Our business Credit Card Our credit card options serve current account holders and non-current account holders Main brands Convenience to clients We are leaders in the credit To individuals, very small, small and middle-market companies Financial services through credit cards. card segment in Brazil
Slide 78: Credit Card Transaction Volume
Our business Credit Card Transaction Volume 3Q20 Total 13.5%¹ 133,276 129,502 R$129.5 billions of total sales are carried +27.8% (vs. 2Q20) 31,988 Debit 33,706 101,335 -2.8% (vs. 3Q19) out using digital channels 25,509 Credit + 26.3 % (vs. 2Q20) 101,289 95,796 39.2%² in 2Q20 Credit -5.4 % (vs. 3Q19)
Slide 79: Acquiring services
Our business Acquiring services Transaction Volume Our brands 3Q20 130,959 Total 118,877 R$131.0 billions 102,521 + 27.7% (vs. 2Q20) 51,929 42,242 Debit + 10.2% (vs. 3Q19) 40,429 More than de credit 25 brands + 27.3% (vs. 2Q20) 79,030 76,636 Credit + 3.1% (vs. 3Q19) 62,092 accepted by Rede machines
Slide 80: Insurance
Our business Insurance We offer a wide range of insurance products related to life, personal accidents, vehicles and property, credit and travel. Our insurance core activities, which include our 30% interest in Porto Seguro, consist of mass-market insurance products related to life and property, and
Slide 81: Insurance Open Platform
Our business Insurance | Insurance Open Platform Benefits Multi-channel Broker Products Offered Sales Force Auto and Fleet Insurance Insurance consultants Life (Individual and Group) Insurance Shop + Health (Group) Multi-channel distribution Manager Whole Life Focused on commissions and fees Cashier
Slide 82: Pension plan
Our business Pension plan Open platform Reasons to invest: Concept 1,3,6,9: How much does the client have to save to enjoy a peaceful retirement? 1 5 Retirement Financial return Years of salary accumulated Age Future expenses Funds carefully selected 2 Enable easy 135 6 always keeping the client in
Slide 83: Services | Investments
Our business Services | Investments Investment Open Platform Main products Third-party products offered 2 Funds Fixed income Fixed Income CDB Multimarket LCA Equity LCI Treasury Direct Funds Fixed income Equities Real Estate Funds COE Savings Pension Plan Pension Plan Zero-fee products: Variable Inc
Slide 84: Services | Wholesale Banking: Investment Banking
Our business Services | Wholesale Banking Investment Banking Middle Leadership position and client recognition Annual revenues from R$30 mn to R$500 mn “Focused on clients with the best ratings, with 95% of the credits being rated B3 or better, and with operations in Fixed income diversified service
Slide 85: Services | Wholesale Banking: WMS
Our business Services | Wholesale Banking R$ million WMS Large range of customized wealth management and investments solutions Securities Services Evolution of Assets Under Administration¹ Local Custody: we ended September with R$1,423.5 billion under custody (practically Investment product manageme
Slide 86: Services | Wholesale Banking: Asset Management
Our business Services | Wholesale Banking Asset Management Kinea It is an independent platform of management of differentiated investments. With R$57.8 billion in assets as of September 2020, it operates in the segments of Multi-Markets, Real Estate, Pension Plan and Private Equity, Stock and Infras
Slide 87: ESG at Itaú Asset Management and Fixed Income
Our business Services | ESG at Itaú Asset Management and Fixed Income Itaú Asset Management R$741 billion 95% of Assets under Management covered by ESG criteria ESG product offering Largest private Asset Manager in Brazil¹ and pioneer in integrating environmental, social and governance aspects in as
Slide 88: Corporate governance
Corporate governance 51Corporate governance 51
Slide 89: History of our Governance
Corporate governance History of our Governance We believe that a sound and meritocracy-based governance, guided towards long-term value creation, adds value to our business, facilitates access to capital and contributes to business continuity. Highlights 1999 2001 2006 2007 2017 Inclusion in the Dow
Slide 90: Our governance structure
Corporate governance Our governance structure Egydio de Moreira Souza Family control, with Salles Aranha long-term vision family Free Float family ON PN PN ON 100% 63.27% 18.13% 36.73% 81.87% Cia. E. Johnston de Participações 66.36% 33.64% ON PN 50.00% 0% 33.47% Itaú Unibanco Highly diversified ITAÚ
Slide 91: Pillars of our Governance
Corporate governance Pillars of our Governance management aligned Focus on performance decisions made on with meritocracy-based and value creation a collective basis culture Family control ensuring long-term strategic vision IUPAR • Alignment among shareholders • Defines group’s vision, mission and
Slide 92: Board of Directors
Corporate governance Board of Directors Our Board of Directors consists of professionals with exceptional knowledge and expertise in different areas of expertise, some of the key differentials of our management. Main duties 2 Co-chairmen Board of Directors 8 2 4 6 7 Pedro Moreira Salles Committees •
Slide 93: Board of Directors Committees
Corporate governance Board of Directors Committees Our committees report directly to the Board of Directors. Strategic committees since 2004 since 2011 since 2009 since 2009 since 2018 8 Audit Compensation Personnel Strategy LATAM Strategy committees 100% of the members are independent 100% of the m
Slide 94: Our Executive Committee
Corporate governance Our Executive Committee The Executive Committee is responsible for implementing the strategy and day-to-day management. Main duties • Implementing the guidelines and goals proposed by the Board of Directors; • Monitoring market, credit and operational risks; and • Carrying out b
Slide 95: Partners and Associates Program
Corporate governance Partners and Associates Program Aiming at aligning the interests of our officers and employees with those of our shareholders, we maintain a partner and associate’ program, focused on management members and employees with outstanding performance. Long-term incentives The investm
Slide 96: Our shares
Corporate governance Our shares Our capital stock is comprised of 9.8 billion common shares (ITUB3) and non-voting shares (ITUB4). Non-voting shares are also traded as depositary receipts (ADR - ITUB ) on the NYSE (New York Stock Exchange). Characteristics of our shares Appreciation of R$ 100 invest
Slide 97: Capital and risk management
Capital and risk management 60Capital and risk management 60
Slide 98: Our principles of risk management
Capital and risk management Our principles of risk management The Board of Directors is our main capital management body, responsible for approving our institutional capital management policy and the guidelines involving the institution’s level of capitalization. We adopt a forward-looking approach
Slide 99: Basel III and Capital structure
Capital and risk management Basel III and Capital structure Our current ratio Basel III requirement 13.7% 1.4% Total Capital (10.25% - 12.75%) Tier II 2.0% 1.7 % Additional Tier I Capital (AT1) 1.5 % Tier I (8.25% - 10.75%) CET 1 (6.75% - 9.25%) 0 – 2.5% Countercyclical² ACP¹ 1.0 % Systemic³ 4 10.7%
Slide 100: Payout Practice
Capital and risk management Payout Practice 2019 Total payout simulation 2019 ROE ROE 23.7% 15.0% 17.5% 20.0% 22.5% 25.0% RWA 9% 65% - 70% 70 - 75% 75 - 80% 80 - 85% 85% - 90% 5.0% RWA 10.0% 40% -45% 45 - 50% 50 - 55% 55 - 60% 60% - 65% The return and growth growth scenario positioned the 15.0% 35%
Slide 101: Capital cost management
Capital and risk management Capital cost management We are continually striving to manage our capital allocation efficiently through an appropriate capital cost. The Board of Directors, then, deliberates on and approves the changes Board of Directors or the ratification of the cost of own capital Wh
Slide 102: How are we structured for managing risks?
Capital and risk management How are we structured for managing risks? A classical model with three lines of defense: the business areas bear primary responsibility for risk management, followed by the risks area and, lastly, the audit area subordinated to the Board of Directors Discussion of metrics
Slide 103: Risk Management
Capital and risk management Risk Management risk management fully timely and preemptive action, widely disseminated integrated into the focusing on creating increasing and risk culture performance of the business sustainable value and on client centricity PERFORMANCE COVERAGE Previous Current à Futu
Slide 104: Our risk management principles
Capital and risk management Our risk management principles Risk appetite consists of a 4-layer structure: principles of risk management, declaration by the Board of Directors, magnitude of the risk and metrics, and coordinates the set of guidelines on the assumption of risks. The principles of risk
Slide 105: How do we establish our risk appetite?
‘ Capital and risk management How do we establish our risk appetite? Risk appetite defines the nature and level of the risks acceptable to our organization, delimiting the conditions in which our management will strive to maximize the creation of value. It is monitored, discussed and reported on a r
Slide 106: Market Risk and Liquidity Management
Capital and risk management Market Risk and Liquidity Management Solid management of liquidity and market risk Average VaR¹ in the quarter Liquidity Coverage Ratio (LCR) Net Stable Funding Ratio (NSFR) 376.4 374.5 305.6 256.8 208.0 123.6% 200.7% 122.5% 122.2% 195.0% 121.1% 170.9% 117.5% 151.9% 116.8
Slide 107: Corporate Security
Capital and risk management Corporate 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 n
Slide 108: Information Security
Operations Operations Capital and risk management Information Security Our processes guarantee the care and focus necessary to protect our environment ... vulnerability management and technological infrastructure to face the adherence to security standards in a constant evolution of cyber threats te
Slide 109: Task Force on Climate-related Financial Disclosures (TCFD)
Capital and risk management Task Force on Climate-related Financial Disclosures (TCFD) Climatic risk and its variables make up the E&S risk analysis, which place us in a strategic position, ensuring the continuity of business and operations in the face of climate change and the consequent impacts on
Slide 110: E&S Risk Management
Capital and risk management E&S Risk 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 E&S risks by gathering the Risk, Sustainability and Compliance
Slide 111: Credit approval criteria
Capital and risk management Credit approval criteria The E&S Risk Policy provides for the evaluation of clients operating in sectors that require a high analysis criterion for credit approval. Sensitive Sectors List of Restricted Activities Large companies Procedures range from applying sector quest
Slide 112: Financial highlights
Financial highlights 75Financial highlights 75
Slide 113: Context: Current outlook
Context Momento atual Current outlook Economic activity Our Quarter Highlights Prospect of Brazilian GDP¹ quarterly growth (base 100 = 4Q19) 3Q20 vs. 3Q19 Mortgage 100 98 65% 95 origination NEW RELEASES 88 Mortgage Loans with Savings Deposit Interest Credit Line Secured by Financed Property 4Q19 1Q2
Slide 114: Financial Highlights 3Q20
Financial Highlights 3Q20 In R$ billions 3Q20 vs. 2Q20 Credit portfolio 7.3 7.2 Recurring R$847.0 bn 5.0 + 4.4% 4.2 3.9 net income Financial margin with clients R$5.0 bn R$15.6 bn 3Q19 4Q19 1Q20 2Q20 3Q20 + 19.6% -5.5% Cost of Credit¹ R$6.3 bn 23.7% 23.5% Recurring ROE -18.7% 15.7% 13.5% 12.8% Commi
Slide 115: Credit portfolio 3Q20
Credit portfolio 3Q20 In R$ billions Credit origination¹ Sep-20 Jun-20D' Sep-19D' 3Q20 2Q20 In the quarter vs. 2Q20 vs. 1Q20 Individuals 237.7 228.8 3.9% 229.7 3.5% Individuals - + 23% 7% Credit card loans 77.5 72.9 6.4% 83.3 -7.0% Personal loans 36.6 37.3 -1.7% 3 4.2 7.0% Very Small, Small and Midd
Slide 116: Financial margin with clients 3Q20
Financial margin with clients 3Q20 Annualized average margin % - Consolidated Annualized average margin % - Brazil 12.2% 12.1% 12.1% 12.2% 10.0% 10.0% 10.0% 11.9% 10.0% 11.8% 9.8% 9.8% 11.1% 9.2% 10.2% 8.4% 7.5% 9.0% 9.6% 7.7% 7.6% 7.6% 9.2% 7.5% 9.2% 9.2% 7.4% 9.0% 8.4% 6.7% 4.4% 4.3% 5.4% 5.2% 3.7
Slide 117: Retail: Loan portfolio reprofiling
Retail Loan portfolio reprofiling Reprofiled portfolio by product (in R$ billions) R$53.5 billion th September 30 , 2020 (6% of credit portfolio) Balance of reprofiled loans for 39.8 13.7 Very small and Individuals 17% of Individuals 11% of Small and very individuals, micro and small small companies
Slide 118: Provision for loan losses 3Q20
Provision for loan losses 3Q20 In R$ billions Cost of credit¹ 5.3% Expected loss provisioning model 3.9% 3.3% 3.0% ratio between 2.6% Allocation oftotal provisions the annualized cost of credit¹ 10.1 7.8 Sep-20 vs. Sep-19 and the loan 6.3 5.8 4.5 portfolio² - (%) Total 51.1 + 48.3% 49.3 Expected los
Slide 119: Credit quality 3Q20
Credit quality 3Q20 15-90 days NPL (%) 90 days NPL (%) Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 3.4% 3.4% 3.5% 2.6% 3.2% 2.3% 2.4% 2.6% 2.0% 1.7% 3.1% 2.4% 3.0% 2.3% 2.9% 2.7% 2.2% 2.2% 1.9% 1.7% 5.1% 5.0% 3.5% 4.8% 4.7% 3.2% 3.1% 4.3% 3.0% 3.0% 2.5% 2.4% 2.3% 1.9% 1.9%
Slide 120: Financial margin with the market 3Q20
Financial margin with the market 3Q20 In R$ billions 1.4 1.4 1.4 1.4 1.3 1.3 1.2 1.2 1.2 1.6 1.5 1.4 1.3 1.3 1.3 1.2 1.1 1.1 0.8 0.7 0.7 1.0 0.5 1.1 0.9 1.0 0.2 0.4 0.6 0.6 0.5 0.5 0.4 0.4 0.3 0.3 0.3 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Financial margin with Sale of shares - B3 Financial ma
Slide 121: Commissions, fees and result from insurance operations 3Q20
Commissions, fees and result from insurance operations 3Q20 In R$ billions 3Q20 9M20 9M19 2Q20 Main investment bank rankings in 2020 Credit and debit cards 2.8 8.4 9.7 2.5 12.9% -13.4% st M&A (Brazil and LatAm)³ 1 place Card issuance 2.2 6.5 6.7 2.0 10.6% -3.0% st Acquiring 0.6 21.5% 1.9 3.0 -36.5%
Slide 122: Non-interest expenses 3Q20
Non-interest expenses 3Q20 In R$ billions Investment in 9M19 3Q20 3Q19 9M20 technology Base 100, in development hours Personnel Expenses -5.3% (5.3) (5.6) (15.6) (16.5) -5.0% Administrative Expenses (4.1) (4.2) -2.0% (12.1) (12.5) -3.1% + 39% 1 Other (1.3) (1.4) -6.4% (3.7) (3.8) -2.3% 9M20 vs. 9M19
Slide 123: Capital 3Q20
Capital 3Q20 12.4% 0.2% 12.1% 0.4% 1.7% 1.7% (0.3%) 10.7% 10.4% Jun-20 Net income Prudential RWA of credit² Sep-20 Tier I Capital less minimum adjustments¹ Tier I Capital mandatory dividends (1) Mainly tax credits, (2) Credit risk weighted assets. 86Capital 3Q20 12.4% 0.2% 12.1% 0.4% 1.7% 1.7% (0.3%
Slide 124: Perspectives
Perspectives Capital and liquidity at appropriate levels considering our internal stress test scenarios. Expansion of the loan portfolio driven mainly by the individuals’ portfolio, in line with the resumption of economic activity and customer confidence levels. This growth should be supported by lo
Slide 125: Investment: XP Inc.
Investment Momento atual XP Inc. Historic May-2017 August-2018 Itaú Unibanco announces its intention to Itaú Unibanco discloses its commitment to acquire control of XP Inc. in stages BACEN not to acquire control of XP Inc. 1. Spin-off of this business line Studies in advanced The eventual spin-off w
Slide 126: Additional information
Additional information 89Additional information 89
Slide 127: Corporate profile: Additional information
Corporate profile Additional information 90Corporate profile Additional information 90
Slide 128: A History of Successful Strategic Deals
Additional Information A History of Successful Strategic Deals¹ Acquisition of the remaining 50% of: Uruguay Retail - Brazil NACIONAL Acquisition of the Banco Itaú BMG Consignado minority interest of: Casa Moreira Salles Acquisition of a minority interest in: 1924 Unibanco 1995 - 1998 2000 - 2003 20
Slide 129: Capital and risk management: Additional information
Capital and risk management Additional information 92Capital and risk management Additional information 92
Slide 130: Capital Ratios (BIS) | Prudential Conglomerate
Additional Information Capital Ratios (BIS) | Prudential Conglomerate ¹ 3Q20 2Q20 In R$ millions, end of period Core Capital 113,910 108,119 Tier I (Core Capital + Additional Capital) 132,272 126,214 Referential Equity (Tier I and Tier II) 146,894 140,650 Total Risk-weighted Exposure (RWA) 1,068,739
Slide 131: Ratings
Additional Information Ratings FitchRatings International National Local Currency Foreign Currency Viability Support Long Term Short Term Long Term Short Term Long Term Short Term bb 4 BB B BB B AAA (bra) F1+ (bra) Moody’s International National Subordinated Debt Senior Unsecured Debt Issuer Issuer
Slide 132: Financial Highlights: Additional information
Financial Highlights Additional information 95Financial Highlights Additional information 95
Slide 133: Results 3Q20
Additional Information Results 3Q20 In R$ billions 3Q20 3Q19 2Q20 9M20 9M19 Operating revenues 28.4 30.3 -6.2% 28.0 1.4% 85.6 88.0 -2.7% Managerial financial margin 16.9 19.1 -11.2% 17.8 -4.8% 52.5 55.2 -4.9% Financial margin with clients 15.6 17.6 -11.7% 16.5 -5.5% 49.1 50.9 -3.6% Financial margin
Slide 134: Segments – Income Statement Pro Forma 3Q20
Additional Information Segments – Income Statement Pro Forma 3Q20 Activities with the Retail Banking Wholesale Banking Itaú Unibanco Market + Corporation In R$ millions 17,433 8,211 2 ,745 28,389 Operating Revenues 9,761 4,966 2,201 16,928 Managerial Financial Margin 9,761 4,966 828 15,554 Financial
Slide 135: Results – Brazil and Latin America
Additional Information Results – Brazil and Latin America 3Q20 2Q20 D Latin America Latin America Latin America Consolidated Consolidated Consolidated Brazil ¹ Brazil ¹ Brazil ¹ (ex-Brazil) (ex-Brazil) (ex-Brazil) In R$ millions Operating Revenues 28,389 25,427 2,962 28,010 24,734 3,276 1.4% 2.8% -9
Slide 136: 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. Insurance Excess Insurance Excess Insurance Excess Consolidated Credit Trading Consolidated Credit Trading Consolidated Credit Tradi
Slide 137: Credit Portfolio by Product
Additional Information Credit Portfolio by Product In R$ billions, end of period 3Q20 2Q20 3Q19 D D 1 236.9 228.0 3.9% 229.0 3.4% Individuals - Brazil 77.5 72.9 6.4% 83.3 -7.0% Credit Card 35.8 36.4 -1.8% 33.4 7.1% Personal Loans 2 50.8 50.4 0.8% 49.3 2.9% Payroll Loans 21.5 19.5 10.4% 18.0 19.6% Ve
Slide 138: Credit Portfolio by Currency
Additional Information Credit Portfolio by Currency ¹ R$ billion 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 Mar-19 224.5 384.5 609.0 Dec-18 219.5 379.1 598.6 Sep-18 233.4 366.7 600.1 Foreign Cu
Slide 139: Credit Origination | Brazil
Additional Information Credit¹ Origination | Brazil Base 100 = 3Q17 Total Credit2 – Brazil Credit2 - Individuals 44% 13% 10% 23% 236 204 215 201 181 179 166 164 138 127 100 100 3Q17 3Q18 3Q19 1Q20 2Q20 3Q20 3Q17 3Q18 3Q19 1Q20 2Q20 3Q20 Credit2 – Very Small, Small and Middle Credit2 – Corporate Mark
Slide 140: Credit Portfolio Breakdown, Companies
Additional Information Credit Portfolio Breakdown , Companies Credit Portfolio by Business Sector¹ ² Credit Concentration ¹ R$ billion Sep-20 In R$ billions, end of period 3Q20 2Q20 D Loan, lease and other Loan, lease, other credit operations Public Sector 5.8 5.6 3.4% credit operations and securiti
Slide 141: Credit Portfolio by Vintage
Additional Information Credit Portfolio by Vintage¹ R$ billion Profile of credit portfolio by origination period: • Older vintages with higher spreads are losing relevance compared to the most recent ones. • 62.5% of total origination was created in the past 12 months. 576 657 689 33.1% 32.9% 34.3%
Slide 142: Loan Portfolio Mix Change
Additional Information Loan Portfolio Mix Change ¹ (%) R$ billion Consolidated Sep-20 18.8 16.9 3.1 11.2 5.2 7.4 7.4 29.9 Sep-20 26.8 24.2 4.4 16.0 7.4 10.6 10.5 Sep-19 24.8 20.3 4.3 20.0 8.0 10.8 11.8 2 Brazil Sep-18 27.8 18.5 4.1 18.5 7.5 11.1 12.4 Sep-17 31.0 16.6 4.1 16.8 7.3 11.2 13.1 Sep-16 33
Slide 143: Renegotiated Loans Operations 3Q20
Additional Information Renegotiated Loans Operations 3Q20 25.7 25.2 25.4 24.7 26.0 25.7 28.9 32.6 32.4 Portfolio in Brazil 36.3 35.7 31.7 3.9 3.2 Latin America 1.6 1.7 28.4 28.1 27.9 27.6 2.7 27.3 26.9 Written-off as a Loss 1.7 2.5 2.2 2.4 2.3 2.1 9.8 9.8 2.3 2.0 1.8 2.0 1.8 1.8 1.3 Over 90 days ove
Slide 144: Provision for Loan Losses and Cost of Credit
Additional Information Provision for Loan Losses and Cost of Credit R$ million Provision for Loan Losses by Segment 6.8% 5.0% 4.7% 4.7% 4.5% 4.2% 4.1% 3.7% 3.8% 3.6% 3.5% 3.3% 3.4% 10,398 3.1% 3.2% 3.0% 2.9% 808 7,561 6,169 5,823 5,392 4,948 6,337 6,145 2,441 4,483 4,111 4,271 4,282 795 4,922 412 4,
Slide 145: Allowance for Loan Losses by Risk
Additional Information Allowance for Loan Losses by Risk– Consolidated R$ million Allocation of Total Allowance by Type of Risk -Consolidated Sep-20 11,147 11,021 28,971 51,140 Jun-20 12,135 11,383 25,749 49,267 Sep-19 11,213 10,123 13,141 34,477 Overdue operations according to the Potential Loss Re
Slide 146: Non Performing Loans Ratios
Additional Information Non Performing Loans Ratios 90-day NPL Ratio| Consolidated (%) 15 to 90-day NPL Ratio | Consolidated - % 4.8 3.9 3.8 3.0 3.0 3.1 3.5 3.5 2.8 3.5 3.4 3.4 3.2 2.9 3.4 3.2 2.8 2.6 2.6 2.7 2.8 2.6 3.9 2.5 2.5 2.3 2.9 1.9 3.2 3.2 2.7 3.1 2.0 3.0 2.7 2.9 2.9 2.9 2.5 2.5 2.8 2.4 2.4
Slide 147: NPL Creation
Additional Information NPL Creation R$ billion 7.3 5.3 5.1 5.0 5.0 4.7 4.4 4.9 3.3 4.4 4.3 2.8 3.9 3.6 3.5 3.5 3.2 1.2 1.2 2.3 1.0 1.1 0.7 0.9 0.4 0.2 0.3 1.1 0.1 -0.5 0.4 0.4 0.4 0.3 0.3 -0.2 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Total Retail Banking - Brazil Whosale Banking - Brazil Latin A
Slide 148: Provision for Loan Losses and NPL Creation by Segment
Additional Information Provision for Loan Losses and NPL Creation by Segment Retail Banking - Brazil 221% R$ billion 153% 145% 113% 108% 108% 104% 104% 102% 5.2 7.1 4.5 3.7 3.6 4.2 3.9 4.3 4.5 4.4 4.9 4.9 3.5 3.5 4.0 3.7 3.2 2.3 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Wholesale Banking - Brazil
Slide 149: Insurance, Pension Plan and Premium Bonds
Additional Information Insurance, Pension Plan and Premium Bonds In R$ millions 3Q20 2Q20 3Q19 D D Earned Premiums 1,027 1,046 -1.8% 1,105 -7.1% Revenues from Pension Plan 60 50 18.8% 57 4.8% Revenues from Premium Bonds 92 61 49.8% 113 -18.7% Managerial Financial Margin 148 25 495.2% (41) - Commissi
Slide 150: Balance Sheet – Assets and Liabilities
Additional Information Balance Sheet – Assets and Liabilities R$ million Assets 3Q20 2Q20 3Q19 D'D' Current and Long-term Assets 2,073,487 2,039,147 1.7% 1,703,927 21.7% Cash and Cash Equivalents 101,034 85,428 18.3% 62,410 61.9% Short-term Interbank Investments 326,336 316,297 3.2% 239,450 36.3% Se
Slide 151: Funding
Additional Information Funding • Loan Portfolio mainly funded by domestic client funding • Diversified funding base In R$ millions, end of period 3Q20 2Q20 3Q19 D'D' 839,765 806,755 4.1% 581,328 44.5% Funding from Clients (A) 127,827 118,787 7.6% 82,245 55.4% Demand Deposits 172,391 163,755 5.3% 140
Slide 152: Funding: Ratio between Loan Portfolio and Funding
Additional Information Funding Ratio between Loan Portfolio and Funding % Funding (Maturity Breakdown) In days 93.3% 91.9% 81.2% 76.8% 75.6% 78.2% 76.7% 181-365 R$ billion 71.1% 66.3% 65.1% Over to 365 31-180 1,039 1,010 9.3% 900 897 870 9.7% 788 36.5% 760 737 689 657 635 640 618 583 576 44.5% 0-30
Slide 153: 3Q20 Institutional Presentation
3Q20 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED LEVEL 1 CDP NYSE BM&FBOVESPA3Q20 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED LEVEL 1 CDP NYSE BM&FBOVESPA
Itau Unibanco Holding — Q3 2020 Earnings Presentation on 6ix