Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q1 2019 Earnings Presentation
146 slides from Itau Unibanco's earnings presentation, May 6, 2019
Slide 1: Announcement to the Market - 1st Quarter 2019 Result
Exhibit 99.1 ITAÚ UNIBANCO HOLDING S.A. CNPJ 60.872.504/0001-23 A Publicly-Listed Company NIRE 35300010230 ANNOUNCEMENT TO THE MARKET Itaú Unibanco Holding S.A. st 1 Quarter 2019 Result Itaú Unibanco Holding S.A. (“Company”) announces to its stockholders and the market at large that the Complete Fin
Slide 2: Attachment 01
Attachment 01 Attachment 01
Slide 3: 1Q19 Institutional Information
1Q19 Institutional Information1Q19 Institutional Information
Slide 4: Forward-looking statements
1Q19 This presentation contains forward-looking statements regarding Itaú Unibanco Holding, its subsidiaries and affiliates - anticipated synergies, growth plans, projected results and future strategies. Although these forward-looking statements reflect management’s good faith beliefs, they involve
Slide 5: Disclaimer: Corpbanca Pro Forma Information
Disclaimer Corpbanca Pro Forma Information st The merger between Itaú Chile and CorpBanca was concluded on April, 1 2016. As from the second quarter of 2016, Itaú CorpBanca, the company resulting from this merger, was consolidated in our financial statements, as we are the controlling shareholder of
Slide 6: Agenda
Agenda 1. Our Profile 2. Corporate Governance 3. Business Overview 4. Financial Highlights 5. Information Technology 6. Itaú Unibanco in Capital Markets 7. Sustainability As of May 02, 2019Agenda 1. Our Profile 2. Corporate Governance 3. Business Overview 4. Financial Highlights 5. Information Techn
Slide 7: Our Profile
Our Profile 1Our Profile 1
Slide 8: Itaú Unibanco at a Glance
Itaú Unibanco at a Glance Financial Highlights and Ratios Leading position in Brazil As of and for the quarter ended March 2019 (1) § US$85.8 billion market cap Highlights § 99,661 employees in Brazil and abroad Total Assets R$1651.4 Bi § 4,934 branches and CSBs in Brazil and abroad (1) Total Loans
Slide 9: Our Vision
Our Vision Vision: To be the leading bank in sustainable performance and customer satisfaction • Implement a customer satisfaction-oriented culture, that is business-driven, through a simplified operational structure • Maximize shareholder returns, aiming at firm-wide growth • We aspire to be the pr
Slide 10: Our Way
Our Way 1. It’s only good for us if it’s good for the client We are people providing service to people, with passion and excellence. We work with the client and for the client – because they are the main reason behind why we do what we do. 2. We’re passionate about performance Generating sustainable
Slide 11: Medium and Long-Term Strategic Agenda
Medium and Long-Term Strategic Agenda CORPORATE GOVERNANCE AND SUSTAINABILITY PERMEATE ALL EFFORTS ON KEY STRATEGIC OBJECTIVES Commitment to permanently improve corporate governance plays a vital role in protecting stakeholders’ interests. We incorporate sustainability into our strategy through a co
Slide 12: Itaú Unibanco Global Footprint
Itaú Unibanco Global Footprint Itaú Unibanco has an important presence in key financial centers supported by a unique recognition and reputation. We want to be recognized as: The Latin American Bank CIB London, Lisbon, Madrid, Paris, Frankfurt Institutional Clients / Asset London Private Banking Zur
Slide 13: A History of Successful Strategic Deals
1 A History of Successful Strategic Deals Acquisition of the remaining 50% of: Retail - Brazil Uruguay NACIONAL Acquisition of the Banco Itaú BMG Consignado minority interest of: Casa Moreira Salles Acquisition of a 1924 minority interest in: Unibanco 1995 - 1998 2000 - 2003 2004 - 2007 Merger 2008
Slide 14: Corporate Governance
Corporate Governance 2Corporate Governance 2
Slide 15: Corporate Governance at Itaú Unibanco
Corporate Governance at Itaú Unibanco Strengths of our structure Family ownership ensuring a long-term view • • Professional management team • Strong corporate governance • Broad shareholder base (52.88% of our shares in free float) Egydio de Souza Free Float* Moreira Salles Family Non Voting Shares
Slide 16: IUPAR and Itaú Unibanco Governance
IUPAR (Itaú Unibanco Participações) and Itaú Unibanco Governance Alignment and union among shareholders; Family control Group´s vision, mission and values; IUPAR Significant mergers & acquisitions; (Itaú Unibanco with a strategic Nominations to the Board of Directors and CEO; long-term vision Partic
Slide 17: Board of Directors and Executive Committees
Itaú Unibanco Board of Directors and Executive Committees Co-Chairman Co- Chairman Pedro Moreira Salles Roberto Egydio Setubal . Directors Marco Ambrogio Crespi Bonomi 1 Alfredo Egydio Setubal Gustavo Jorge Laboissière Loyola 1 Pedro Luiz Bodin de Moraes 1 João Moreira Salles Ana Lúcia de Mattos Bar
Slide 18: Risk Management Structure
Risk Management Structure Board of Directors Capital and Risk Audit Committee Pedro Moreira Salles Management Committee Gustavo Loyola 1 Roberto Egydio Setubal Pedro Bodin 1 3rd line of defense Internal Audit Independent review of the Paulo Miron activities developed by the institution. Itaú Unibanc
Slide 19: Governance Structure at Itaú Unibanco
Governance Structure at Itaú Unibanco Shareholder’s Meeting Fiscal Council Board of Directors Digital Audit Personnel Related Nomination Risk and Capital Strategy Compensation LATAM Committee Committee Parties and Corporate Management Committee Committee Strategy Advisory Board Committee Governance
Slide 20: Credit Risk Policies Hierarchy
Credit Risk Policies Hierarchy § Defines and monitors Risk Appetite; Board of Directors and § Approval of policies, strategies and definition of minimum Capital and Risk Management Committee expected return on capital; § Improvement of Risk Culture. § Defines a Global Policy; 1 § Approves policies h
Slide 21: Risk Appetite Defined by the Board of Directors
Risk Appetite Defined by the Board of Directors Principles Statement Dimensions § Sustainability and customer § Optimization of capital § Reputation; satisfaction; allocation; § Liquidity; § Risk pricing;§ Low volatility in results; § Capitalization; § Operational excellence;§ Regional focus; § Oper
Slide 22: Risk Appetite (as approved by the Board of Directors)
Risk Appetite (as approved by the Board of Directors) The Risk Appetite... establishes the types and levels of risk acceptable to the bank, within which management seeks to maximize value creation. It is based on Guided by the and monitored by 43 metrics inserted Board of Directors Principles of Ris
Slide 23: Retail Management – Statistical Models
Retail Management – Individuals and Small and Middle Companies STATISTICAL MODELS Lowest risk Risk Level Highest Risk 100 100 102 98 114 94 123 89 128 88 148 88 153 88 100 100 104 101 102 95 101 89 106 90 112 99 124 94 115 91 115 91 116 92 130 93 148 88 157 81 167 79 v 110 91 112 102 114 97 113 92 1
Slide 24: Credit Offer Based on Future Scenario
Credit Offer Based on Future Scenario STATISTICAL MODELS Highest Lowest Risk Level risk risk Credit Available Base Scenario Credit Not Available Credit Not Available Highest risk Positive future expectation Negative future expectation Risk Level Risk Level Credit Available Credit Available Credit No
Slide 25: Business Overview
Business Overview 3Business Overview 3
Slide 26: Universal Bank
Universal Bank 1 RETAIL BANKING WHOLESALE BANKING RETAIL AND REAL ESTATE CREDIT ITAÚ BBA 4,413 branches and client service branches and 46,784 ATMs in Brazil; Full coverage of corporate clients with RETAIL annual sales above R$ 200 million; AND REAL Premier banking brand in Brazil; ESTATE Leadership
Slide 27: Client Segmentation
Client Segmentation Individuals Segmentation Companies Segmentation by monthly income by annual sales Ultra Private Bank over R$4 billion or >R$750 million debt* >R$5 million in total investment Large >R$400 million up to R$4 billion or >R$200 million debt* Corporate >R$200 million up to R$400 milli
Slide 28: Retail in Brazil
Retail in Brazil Automated Teller Machines (ATMs) in Brazil 2 Presence in Brazil 1 (As of March 31, 2019) 46,712 45,353 46,463 45,182 45,502 45,769 45,891 47,301 46,784 3 15 7 21 7 8 7 592 598 610 589 613 608 626 617 635 23,049 22,086 22,431 22,605 21,195 21,423 20,516 20,809 20,937 North 114 Northe
Slide 29: Retail - Credit Cards, JVs and Partnerships
Retail - Credit Cards, Joint Ventures and Partnerships with Retailers in Brazil Highlights Highlights JVs and Partnerships • Brazilian market leader in credit card transactions; • Focus on credit card instruments; • Qualification of the client base: proprietary channel x partnerships; • Long term ag
Slide 30: Retail - Cards in Brazil
Retail - Cards in Brazil | Growing Penetration in Household Consumption Expenditure Credit and Debit Cards Billed Volume % at Household Consumption Expenditure 38.0% 35.1% 34.9% 34.1% 33.8% 32.4% 32.1% 31.4% 30.8% 14.6% 13.0% 13.3% 12.5% 12.7% 12.1% 12.4% 11.7% 11.6% 23.4% 22.1% 21.6% 21.6% 21.1% 20
Slide 31: Retail - Merchant Acquiring | REDE
Retail - Merchant Acquiring | REDE Unprecedented initiative in the acquiring business Rede ended the prepayment rate on credit card transactions without installments • Effective May 2, 2109 • Credit card transactions without installments • Using any POS machine from • With a bank domicile in Itaú Un
Slide 32: Retail - Payroll Loan in Brazil
Retail - Payroll Loan in Brazil Composition of Payroll Loans Portfolio by Sector Evolution of Payroll Loan Portfolio R$ billion 48.6 46.7 46.0 45.4 44.9 44.8 44.6 44.4 44.7 5.4 5.1 4.9 4.9 4.3 4.3 4.4 4.8 4.7 4.8 5.1 5.5 11% 5.9 6.4 7.6 8.8 8.2 7.0 10% 38.5 36.5 35.5 34.6 33.5 32.6 32.8 31.7 32.2 79
Slide 33: Retail - Mortgage Market in Brazil
Retail - Mortgage Market in Brazil Mortgage Loans Evolution Distribution Channels for Individuals Balance As of March 2019 R$ million 1.7% 47,754 48,337 48,544 Partnerships 13.0% 11.7% 16.3% 13% Real Estate Regular Brokers Branches 30% 11% 88.3% 87.0% 83.7% Developers 15% High Income Branches Mar-18
Slide 34: Retail - Vehicle Financing in Brazil
Retail - Vehicle Financing in Brazil Highlights: Individuals and Corporate Individuals Portfolio Loans Granted • Growth of 31.6% in production (QoQ); R$ million R$ million • Offers finance through over 10 thousand dealers; 26.2% • Average ticket size of the new vehicle concessions to individuals of
Slide 35: Retail - Insurance Ranking in Brazil
1,2 Retail - Insurance Ranking in Brazil jan-feb/19 jan-feb/18 Model 3 4th 4th Total Insurance 4 5th 5th Recurring Insurance Activities Life & Personal Accidents 2nd 3rd Bancassurance Credit Insurance 6th 6th Bancassurance Pension Plan Bancassurance 3rd 3rd Premium Bonds 4th 3rd Bancassurance Porto
Slide 36: Retail - Association with Porto Seguro
Retail - Association with Porto Seguro Highlights Association’s Structure • Unification of residential and automobile insurance Controlling stockholders of Itaú Unibanco Porto Seguro operations; 57.07% 42.93% • Exclusive offer and distribution of residential and automobile insurance products to Itaú
Slide 37: Very Small, Small and Middle Market in Brazil
Very Small, Small and Middle Market in Brazil SMEs Loan Portfolio 1 R$ million 79,649 75,433 74,137 72,002 70,795 68,974 61,869 61,547 2012 2013 2014 2015 2016 2017 2018 1Q19 Highlights Full range of financial products and services, including deposits accounts, investment options, insurance, cash ma
Slide 38: Wholesale - Corporate Companies in Brazil
Wholesale - Corporate Companies in Brazil 1 Corporate Loans R$ million 219,418 213,815 194,472 181,541 165,052 163,437 153,302 152,625 2012 2013 2014 2015 2016 2017 2018 1Q19 Highlights • Corporate clients with annual sales above R$200 million. • We offer a broad portfolio of banking products and se
Slide 39: Wholesale - Corporate and Investment Banking
Wholesale - Corporate and Investment Banking | Leadership Position in Brazil Investment Banking Wholesale Banking Fixed Income Middle Until March 2019, we maintained the leadership in the distribution ranking of Annual revenues from R$30 MM up to Anbima, with a distributed volume of R$4.9 billion. R
Slide 40: Wholesale - Wealth Management Services
Wholesale - Wealth Management Services | Brazil Asset Management Evolution of Assets Under Administration Investment Product management for the conglomerate and a full range of Asset Management investment options to Retail Banking. In March 2019, we reached R$686.51 bi llion in assets under manageme
Slide 41: Retail Footprint in Latin America
Retail Footprint in Latin America | March 2019 Mexico | CIB Employees: 8 Panama Colombia1 Employees: 3,484 Branches + CSBs: 163 ATMs: 172 Brazil Employees: 86,204 Peru Branches + CSBs: 4,413 Representative ATMs: 46,784 Office Paraguay Chile Employees: 855 Employees: 5,777 Branches + CSBs: 44 Branche
Slide 42: Segments – Income Statement Pro Forma 1Q19
Segments – Income Statement Pro Forma 1Q19 Activities with the Retail Banking Wholesale Banking Itaú Unibanco Market + Corporation In R$ millions 18,569 7,113 2,525 28,208 Operating Revenues 10,653 4,602 2,413 17,668 Managerial Financial Margin 10,653 4,602 1,170 16,424 Financial Margin with Clients
Slide 43: Financial Highlights
Financial Highlights 4Financial Highlights 4
Slide 44: Highlights
Highlights Recurring Net Income Recurring ROE Credit1 NPL 90 days Consolidated Consolidated Consolidated Consolidated 140 bps 7.7 % 7.1 % 10 bps R$647.1 bi R$6.9 bn 1Q19 vs. 1Q18 1Q19 vs. 1Q18 23.6% 1Q19 vs. 1Q18 3.0% 1Q19 vs. 1Q18 Brazil Brasil Brazil Brasil 110 bps 6.5 % 0.0 bp 4.6 % 1Q19 vs. 1Q18
Slide 45: 2019 Forecast
2019 Forecast Consolidated Brazil ¹ Previous Revised Previous Revised Total Credit Portfolio ² Unchanged 8.0% Unchanged 8.0% 11.0% 11.0% Financial Margin with Clients 9.5% 9.0% 9.5% 9.0% 12.5% 12.0% 12.5% 12.0% Financial Margin with the Market R$4.6 bn R$5.6 bn R$3.6 bn R$4.6 bn Unchanged Unchanged
Slide 46: Recurring Net Income and Value Creation
Recurring Net Income and Value Creation 23.6% 22.2% 21.9% 21.8% 21.6% 21.3% ROE Average Cost of Capital 14.5% 14.5% 14.0% 13.5% 13.5% 13.5% Recurring Net Income 6.9 6.5 6.5 6.4 6.4 6.3 2.0 Value Creation 2.9 2.2 2.0 2.5 2.5 4.5 4.3 4.3 Cost of Capital 4.0 3.9 3.9 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 page 4
Slide 47: Income Statement | Operating Revenues Perspective
Income Statement | Operating Revenues Perspective DD In R$ millions 1Q19 4Q18 1Q18 28,208 28,471 -0.9% 27,426 2.8% Operating Revenues Managerial Financial Margin 17,668 17,382 1.6% 16,999 3.9% Financial Margin with Clients 16,424 16,233 1.2% 15,261 7.6% Financial Margin with the Market 1,244 1,149 8
Slide 48: Income Statement | Managerial Financial Margin Perspective
Income Statement | Managerial Financial Margin Perspective DD In R$ millions 1Q19 4Q18 1Q18 Managerial Financial Margin 17,668 17,382 1.6% 16,999 3.9% Financial Margin with Clients 16,424 16,233 1.2% 15,261 7.6% Financial Margin with the Market 1,244 1,149 8.2% 1,738 -28.4% Cost of Credit (3,804) (3
Slide 49: Results – Brazil and Latin America
Results – Brazil and Latin America 1Q19 1Q18 D Latin Latin Latin 1 1 1 Consolidated America Consolidated America Consolidated America Brazil Brazil Brazil In R$ millions (ex-Brazil) (ex-Brazil) (ex-Brazil) Operating Revenues 28,208 25,347 2,861 27,426 24,946 2 ,480 2.8% 1.6% 15.3% Managerial Financi
Slide 50: Business Model
Business Model In R$ billions 1Q19 1Q18D Insurance Insurance Insurance Excess Excess Excess Consolidated Credit Trading and Consolidated Credit Trading and Consolidated Credit Trading and Capital Capital Capital Services Services Services Operating Revenues 28.2 14.6 0.4 12.8 0.4 27.4 13.9 0.6 12.3
Slide 51: Credit Portfolio with Financial Guarantees and Corporate Securities
Credit Portfolio with Financial Guarantees Provided and Corporate Securities DD In R$ billions, end of period 1Q19 4Q18 1Q18 Individuals 215.6 211.3 2.0% 191.4 12.7% Credit Card Loans 76.4 77.5 -1.3% 65.0 17.6% Personal Loans 31.1 29.2 6.5% 27.4 13.7% 1 48.6 46.7 4.2% 44.7 8.8% Payroll Loans Vehicle
Slide 52: Credit Portfolio by Product
Credit Portfolio by Product In R$ billions, end of period 1Q19 4Q18D 1Q18 D 1 214.7 210.4 2.0% 190.5 12.7% Individuals - Brazil 76.4 77.5 -1.3% 65.0 17.6% Credit Card 30.1 28.2 6.8% 26.4 14.1% Personal Loans 2 48.6 46.7 4.2% 44.7 8.8% Payroll Loans 16.6 15.9 4.1% 14.3 15.7% Vehicles 42.9 42.0 1.9% 4
Slide 53: Credit Portfolio by Currency
Credit Portfolio by Currency 1 R$ billion Mar-19 224.5 384.5 609.0 Dec-18 219.5 379.1 598.6 Sep-18 233.4 366.7 600.1 Jun-18 223.5 365.1 588.6 Mar-18 197.9 368.4 566.4 Dec-17 192.4 371.7 564.1 Sep-17 180.7 358.4 539.1 Jun-17 184.9 367.4 552.3 Mar-17 176.5 373.9 550.3 Foreign Currency Local Currency (
Slide 54: Credit Origination and Private Securities Issuance | Brazil
Credit1 Origination and Private Securities Issuance | Brazil Base 100 = 1Q15 Total Credit2 – Brazil Credit2 - Individuals 21% 22% 100 98 109 100 81 89 69 65 68 68 1Q15 1Q16 1Q17 1Q18 1Q19 1Q15 1Q16 1Q17 1Q18 1Q19 Credit2 – Very Small, Small and Credit2 – Corporate Private Securities Issuance3 Middle
Slide 55: Credit Portfolio Growth in Brazil
Credit Portfolio Growth in Brazil 1 (in R$ Billions) Nominal GDP (Mar-15 to Mar-19): 18.5% Accumulated Inflation (IPCA) (Mar-15 to Mar-19): 24.4% Accumulated Interbank Rate: (Mar-15 to Mar-19): 50.7% Credit Card Loans Payroll Loans Vehicle Loans Personal Loans 9.0% 35.7% 2.7% -37.1% 16.8% 12.0% 8.4%
Slide 56: Credit Portfolio Breakdown
Credit Portfolio Breakdown 1,2 1 Companies Credit Portfolio by Business Sector Credit Concentration Mar-19 1Q19 4Q18D R$ million In R$ billions, end of period Public Sector 2 .8 3.6 -22.7% Private Sector 330.2 324.3 1.8% Loan, lease, other credit operations Real Estate 21.4 19.6 9.5% Loan, lease and
Slide 57: Credit Portfolio by Vintage
1 Credit Portfolio by Vintage Profile of credit portfolio by origination period: R$ billion § Older vintages with higher spreads are losing relevance compared to the most recent ones. § 59.3% of total origination was created in the past 12 months. 495 532 544 36.5% 36.2% 40.1% 4.6% 4.6% 4.2% 6.2% 7.
Slide 58: Loan Portfolio Mix Change
Loan Portfolio Mix Change 1 (%) Mar-19 Consolidated mar/19 18.8 13.1 3.0 14.1 5.5 7.9 8.9 28.6 ma Mar-19 r/19 26.3 18.4 4.3 19.7 7.8 11.0 12.5 Mar-18 mar/18 29.2 17.1 4.0 18.3 7.4 11.3 12.6 2 Brazil Mar-17 mar/17 32.7 16.3 4.2 15.9 7.3 10.9 12.7 Mar-16 mar/16 35.3 16.4 4.8 14.4 7.5 9.3 12.3 Mar-15 m
Slide 59: Financial Margin with Clients
Financial Margin with Clients Annualized Average Rate Brazil Consolidated 12.3% 12.6% 12.2% 12.1% 12.1% 12.0% 12.0% 11.8% 10.3% 10.1% 10.0% 9.9% 9.9% 9.9% 9.6% 9.8% 9.8% 9.5% 9.2% 9.2% 9.2% 10.9% 9.0% 8.9% 9.2% 8.9% 7.6% 7.7% 7.6% 7.6% 7.5% 7.4% 7.4% 7.3% 7.1% 6.4% 6.4% 6.7% 6.4% 6.4% 2Q17 3Q17 4Q17
Slide 60: Financial Margin with the Market
Financial Margin with the Market R$ billion 1.8 1.8 1.7 1.6 1.5 1.4 1.4 1.3 1.2 1.9 1.7 1.6 1.4 1.4 1.3 1.3 1.1 1.2 0.1 0.2 1.7 1.3 1.3 0.9 1.2 1.1 0.9 1.0 0.5 0.5 0.2 0.2 0.5 0.2 0.3 0.3 0.3 0.3 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Financial Margin with Sale of shares - B3 Financial Margin
Slide 61: Provision for Loan Losses and Cost of Credit
Provision for Loan Losses and Cost of Credit Provision for Loan Losses by Segment R$ million 5.8% 5.0% 5.0% 4.7% 4.6% 4.4% 4.5% 4.3% 4.3% 4.1% 3.7% 3.6% 3.4% 3.3% 3.1% 3.0% 2.9% 7,824 6,337 5,997 6,366 5,768 6,169 5,823 5,714 5,392 772 4,948 4,483 4,111 4,282 4,271 383 399 396 412 392 358 757 432 4,
Slide 62: Allowance for Loan Losses by Risk
Allowance for Loan Losses by Risk– Consolidated R$ million Regulatory (*) Allocation of Total Allowance by Type of Risk - Consolidated Breakdown 34,260 36,661 Complementary 34,261 Allowance Expected and/or 34,206 Potential Loss Retail - Brazil1 6,661 5,964 Related to expected Allowance for Financial
Slide 63: Non Performing Loans Ratios
Non Performing Loans Ratios 15 to 90-day NPL Ratio | Consolidated - % 90-day NPL Ratio| Consolidated (%) 4.4 4.2 4.2 3.9 3.7 3.3 3.7 3.68 3.5 3.51 3.3 3.4 3.3 3.2 3.1 3.0 3.1 2.6 2.9 2.8 2.8 2.64 2.5 2.35 3.5 3.4 3.1 3.4 3.2 3.1 3.1 2.9 2.7 3.02 2.91 2.6 2.7 2.9 2.7 2.8 2.8 2.6 2.47 2.7 2.34 2.7 2.3
Slide 64: Coverage Ratio (90-day NPL)
Coverage Ratio (90-day NPL) Coverage Ratio and Expanded Coverage Ratio1 Coverage Ratio 618% 517% 248% 246% 245% 243% 236% 235% 231% 338% 221% 208% 223% 221% 204% 172% 169% 169% 104% 101% 100% 100% 96% 95% 92% 90% 88% Mar-18 Dec-18 Mar-19 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19
Slide 65: NPL Creation
NPL Creation R$ billion 5.1 5.0 5.0 4.9 4.4 4.4 4.4 4.4 3.8 3.8 3.6 3.6 3.5 3.5 3.5 3.5 3.3 3.2 1.2 1.0 1.1 1.0 0.7 0.5 0.5 0.5 0.4 0.7 0.5 0.5 0.4 0.4 0.2 0.3 0.2 -0.3 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Total Retail Banking - Brazil Whosale Banking - Brazil Latin America ex-Brazil page 63
Slide 66: Provision for Loan Losses and NPL Creation by Segment
Provision for Loan Losses and NPL Creation by Segment Retail Banking - Brazil R$ billion 113% 107% 108% 102% 104% 99% 100% 98% 89% 3.7 3.5 4.0 3.6 3.5 3.3 3.5 3.5 3.8 3.5 3.5 3.7 3.2 3.6 3.2 3.2 3.5 3.7 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Wholesale Banking - Brazil R$ billion 263% 230% 148%
Slide 67: Loan Portfolio Evolution by Risk Level
Loan Portfolio Evolution by Risk Level Brazil 1 Consolidated Total Allowance for Loan Losses (R$ million) 31,976 29,541 29,441 36,661 34,261 34,206 Loan Portfolio by Risk Level 42.9% 42.9% 43.2% 43.0% 43.2% 43.2% 34.9% 34.5% 34.9% 37.2% 38.0% 38.2% 8.8% 5.0% 10.2% 10.3% 5.5% 5.8% 4.1% 4.0% 4.2% 4.0%
Slide 68: Renegotiated Loan Operations
Renegotiated Loan Operations Total Renegotiated Portfolio | Breakdown by Days Overdue R$ billion Brazil 1 Days overdue: 23.1 24.6 24.5 24.4 25.5 25.2 25.7 25.2 measured at the moment of 25,4 renegotiation 26.4 27.9 27.6 27.5 26.4 26.4 27.6 27.3 24.7 Latin America 2 2.0 2.2 2.3 2.1 2.3 1.8 1.9 2.0 1.
Slide 69: Credit Quality | Individuals
Credit Quality | Individuals Loan-to-Value Credit Cards Portfolio in Mar-19 Vehicles and Mortgage | Vintages 59.8% 8.8% 58.4% 58.6% 57.8% 57.4% 56.8% 20.1% 9.2% 9.5% 82.0% 70.4% Itaú Unibanco Brazilian Financial System Mar-18 Dec-18 Mar-19 excluding Itaú Unibanco Transactor¹ Installment with Interes
Slide 70: Banking Fee Revenues and Insurance Results
Banking Fee Revenues and Result from Insurance, Pension Plans and Premium Bonds In R$ millions 1Q19 4Q18 1Q18 D D Credit and Debit Cards 3,280 3,487 -5.9% 3,336 -1.7% Current Account Services 1,846 1,854 -0.4% 1,818 1.5% Asset Management ¹ 1,067 1,192 -10.5% 1,014 5.2% Credit Operations and Guarante
Slide 71: Retail - Merchant Acquiring | REDE
Retail - Merchant Acquiring | REDE Debit Card Transaction Volume Credit Card Transaction Volume R$ million R$ million 81,136 46,057 72,877 70,376 69,425 40,128 38,711 38,873 65,915 63,558 63,345 61,937 35,818 35,595 60,938 32,867 32,234 32,014 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 1Q17 2Q17 3
Slide 72: Insurance Operations | Pro Forma Income Statement 1Q19
Insurance Operations | Pro Forma Income Statement 1Q19 Recurring Other Recurring Activities Total In R$ millions Activities Activities 4Q18D 1Q18D Earned Premiums 1,052 980 72 970 1.0% 893 9.7% Revenues from Pension Plan and Premium Bonds 159 159 - 179 -10.7% 203 -21.6% Liability Adequacy Test - - -
Slide 73: Insurance Operations | Insurance Core Activities
Insurance Operations | Insurance Core Activities Net Income and Underwriting Margin Combined Ratio 1 R$ million 56.2% 78.5% 77.9% 76.5% 75.8% 53.0% 74.9% 52.3% 51.6% 47.2% 62.1% 58.9% 756 750 57.5% 56.7% 717 701 53.3% 687 0.3% 0.5% 0.1% 0.1% 0.2% 40.1% 435 32.4% 32.5% 35.4% 398 401 31.9% 373 344 25.
Slide 74: Pension Plan Segment
Pension Plan Segment Recurring Net Income Focus on Client Experience R$ million 7 Reasons to Invest 341 Plan your retirement 1 251 217 209 195 195 Pay your future health expenses 2 161 154 142 Invest in your kids’ education 3 Plan your taxes expenses 4 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Im
Slide 75: Non-interest Expenses
Non-interest Expenses In R$ millions 1Q19 4Q18D 1Q18D Personnel Expenses (5,300) (5,618) -5.7% (5,083) 4.3% Administrative Expenses (4,113) (4,454) -7.6% (3,879) 6.0% Personnel Expenses and Administrative Expenses (9,414) (10,072) -6.5% (8,963) 5.0% Operating Expenses (1,082) (948) 14.1% (1,167) -7.
Slide 76: Efficiency Ratio and Risk-Adjusted Efficiency Ratio
Efficiency Ratio and Risk-Adjusted Efficiency Ratio 65.7 60.8 64.5 63.4 63.3 60.9 61.0 61.3 61.7 45.9 46.3 49.2 48.8 48.7 47.3 47.1 45.7 43.6 68.2 66.6 65.0 64.2 62.7 62.2 61.2 63.3 61.2 47.4 47.7 47.6 45.3 46.4 47.0 47.7 45.5 45.3 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Trailing 12-month Effic
Slide 77: Balance Sheet – Assets and Liabilities
Balance Sheet – Assets and Liabilities R$ million Assets 1Q19 4Q18 1Q18 D'D' Current and Long-term Assets 1,617,065 1,615,235 0.1% 1,496,519 8.1% Cash and Cash Equivalents 30,376 37,159 -18.3% 25,444 19.4% Short-term Interbank Investments 284,398 304,747 -6.7% 264,524 7.5% Securities and Derivative
Slide 78: Total Assets | Evolution and Breakdown
Total Assets | Evolution and Breakdown 1,651.4 1,649.6 R$ billion 1,503.5 Loans Portfolio 1 510.6 30.9% Cash and Cash Equivalents, 27.1% Interbank Investments and Interbank 448.1 and Interbranch Accounts Securities and Derivatives 28.1% 464.1 Financial Instruments 11.8% Other 194.3 2.1% 34.4 Permane
Slide 79: Total Liabilities | Evolution and Breakdown
Considers perpetual subordinate notes as of 2018 Total Liabilities | Evolution and Breakdown R$ billion 1,649.6 1,651.4 Deposits, Debentures and Funds from Bills and Structured 33.2% Operations Certificates 1,503.5 548.8 Deposits Received under Securities, Repurchase Agreements and 21.7% 1 Fund from
Slide 80: Funding
Funding • Loan Portfolio mainly funded by domestic client funding • Diversified funding base In R$ millions, end of period 1Q19 4Q18D 1Q18D Demand Deposits 74,757 72,581 3.0% 66,430 12.5% Savings Deposits 136,613 136,865 -0.2% 122,412 11.6% Time Deposits 248,049 251,301 -1.3% 215,743 15.0% Debenture
Slide 81: Funding from Clients
Funding Funding from Clients 1 In R$ billions 1,976 1,949 1,912 1,839 1,805 1,747 1,682 1,648 Funding from Account Holders and 1,595 Institutional Clients 1,366 1,335 1,290 1,242 1,215 1,154 1,116 1,070 1,028 Assets Under Administration + Technical Provisions for Insurance, 555 552 547 Pension Plan
Slide 82: Capital Ratios (BIS) | Prudential Conglomerate
Capital Ratios (BIS) | Prudential Conglomerate 1 1Q19 4Q18 In R$ millions, end of period Consolidated stockholders’ equity (BACEN) 132,322 144,131 Deductions from Core Capital (23,166) (20,773) Core Capital 109,156 123,358 Additional Capital 10,968 7,796 Tier I 120,124 131,154 Tier II 11,932 15,874
Slide 83: Capital Ratios - Full Application of Basel III
Capital Ratios Full aplication of Basel III rules│ March 31, 2019 15.9% 14.6% 13.5% 1.0% -2.4% 0.3% 0.1% -0.1% 0.8% 1.3% 1.0% 14.9% 13.3% 12.5% Tier I 2018 additional Tier I Dec-18 1Q19 net income and Prudential Adjustments RWA Additional Tier I capital Tier I Dec-18 dividends and I OC after additio
Slide 84: Capital Requirement under Basel, BACEN and ITUB Target
Capital Requirement under the Basel Committee, BACEN and ITUB Target ITUB Target Minimum Capital Required Basel II Basel III 15.0% 1.5% 1.5% 11.5% 11.0% 2.0% 8.0% If total capital falls 1.5% Subordinated 5.5% below 11.5%, debt (TII) restrictions will T1= 13.5% 12.0% Stockholders`equity start to be a
Slide 85: Payout Practice
Payout Practice In order to manage capital efficiently, aiming at creating value to our shareholders, we announced through a Material Fact disclosed on September 26, 2017, that we intend to: § Maintain the practice of paying dividends and interest on own capital at 35% of net income, however we excl
Slide 86: Ratings
Ratings FitchRatings International National Viability Support Local Currency Foreign Currency Long Term Short Term Long Term Short Term Long Term Short Term bb+ 4 BB B BB B AAA (bra) F1+ (bra) Moody’s International National Subordinated Debt Senior Unsecured Debt Issuer Issuer Foreign Currency Forei
Slide 87: Information Technology
Information Technology 5Information Technology 5
Slide 88: Digital Transformation
Digital Transformation Use of Digital Channels¹ number of current account holders (in millions) Share of Transactions through digital channels Companies Individuals 1Q17 1Q19 11.5 Credit 16% 18% 1.2 10.0 1.1 1.0 8.8 37% 46% Investments Payments 64% 80% Note: Share of digital channels in the total vo
Slide 89: Itaú Unibanco in Capital Markets
Itaú Unibanco in Capital Markets 6Itaú Unibanco in Capital Markets 6
Slide 90: Non-voting Shares Appreciation | ITUB4 and ITUB
Non-voting Shares Appreciation | ITUB4 and ITUB Evolution of R$100 invested on the day before the announcement of the merger (October 31, 2008) to March 29, 2019 569 357 273 256 Mar-19 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 ITUB4 - Without dividend reinvestiment
Slide 91: Sustainability
Sustainability 7Sustainability 7
Slide 92: Sustainability Timeline
Sustainability Timeline First cell for analysis Sustainability Sustainability of environmental Committee Governance and social risks (officers level) (executive level) 2000 2005 2007 Sustainable performance in corporate vision Creation of Itaú Unibanco operating Merger committees 2013 2010 2008 Posi
Slide 93: Sustainability Strategy
Estratégia de Sustentabilidade The strategy defined in 2011 consisted of a sustainability map that determined three strategic focuses for our activities: SOCIAL-ENVIRONMENTAL RISKS DIALOG AND TRANSPARENCY FINANCIAL EDUCATION AND Understand people´s needs to offer Build long-term relations based on t
Slide 94: Corporate Sustainability Governance
Corporate Sustainability Governance Board level Definition and monitoring of the sustainability strategy Board of Directors Board of Directors Members Members of of the Board the Board of Directors of Directors Strategy Committee Strategy Committee Members Members of of the Board the Board of Direct
Slide 95: Dialogue and Transparency | Engagement
Dialogue and Transparency | Engagement Organizations and commitments that are sources of knowledge and trends Responsible Bank Integrity and Ethics Sustainable Development Reporting and Climate Change Transparency Women Empowerment and Diversity pg. 93Dialogue and Transparency | Engagement Organizat
Slide 96: Transparency with the Market | Reporting
Transparency with the Market | Reporting Integrated Report Integrated Annual Report • First Brazilian financial institution to Integrated publish it voluntarily. Report(20F Sustainability + IIRC) Report + • Presentation of the results from 6 + GRI capitals: financial, social and Financial relationsh
Slide 97: Sustainable Development Goals (SDG)
Sustainable Development Goals (SDG) Our guideline to sustainable thems are th SDG’s, wich allows for risk management and conncections to the Market. Connecting the company's business strategy with sustainable development goals allows increasing the value of corporate sustainability by addressing cha
Slide 98: Employees | Profile
Employees | Profile 1 100,335 Employees Organizational Climate Thinking about the best way to measure and monitor our employees’ satisfaction, in 2018 we redesigned our survey strategy, by 60% 40% discontinuing the Fale Francamente (Speak Frankly) survey, which was replaced by Pulse 51.5%2 of manage
Slide 99: Employees | Management Cycle
Employees | Management Cycle Training and Attraction and Compensation and Performance Selection Benefits Assessment Development Performance Special Talent Itaú Unibanco Fixed Compensation In 2018, it amounted to Management Programs Business School approximately R$17 bilhões Internship: 2,393 people
Slide 100: Diversity | Commitment and Action
Diversity | Commitment and Action Our Internal Policy for Diversity Our Commitment Integrated Action Enhancement Principles : In 2017, we established an In 2018, the Sustainability 1- Implementation of policies and important milestone in our Committee approved an projects for valuing and promoting j
Slide 101: Itaú Women Entrepreneurs and Financial Education
Initiatives| Itaú Women Entrepreneurs e Financial Education Itaú Women Entrepreneurs Objective of the program Number of participants in the program The Itaú Women Entrepreneurs Program Empower female entrepreneurs in Brazil (local acronym IME) was created in 2013 as a through in-person and online so
Slide 102: Ethics and Information Security
Ethics and Information Security Our business is based on ethical principles, which reflects the transparency, respect and honesty present in our relationship with stakeholders. Training programs Integrity and Ethics Program Adherence to the termination of The Integrity and Ethics Education Program i
Slide 103: ESG Integration on Business
ESG Integration on Business Responsible Credit Analysis Investments The Environmental and Social Risk Policy contains the criteria for Proprietary methodology to include ESG issues in the valuation of the analysis of clients and projects and the establishment of real fixed income securities and the
Slide 104: Our operations | Buildings, Branches and Data Center
Our operations | Buldings, Branches and Data Center In 2018 we created a working group within the central administration focused on efficiency in utilities, which resulted in the economy of several inputs: -4,0 GWh -13 mil m³ -26 mil m³ -469 tCO2 Issued with diesel oil Consumer Of natural gas Of gas
Slide 105: Task Force on Climate-related Financial Disclosures (TCFD)
Task Force on Climate-related Financial Disclosures (TCFD) The initiative was conceived under the Financial Stability Board (FSB). It proposes climate disclosure recommendations for the financial and non-financial sectors in the pillars of Governance, Strategy, Management Risks, Goals and Metrics. W
Slide 106: Attachment (Portuguese only)
Attachment 02 (portuguese only) Attachment 02 (portuguese only)
Slide 107: Teleconferência - Imprensa Resultados do 1º trimestre de 2019
Teleconferência - Imprensa Resultados do 1° trimestre de 2019 Candido Botelho Bracher Presidente e CEO Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO Alexsandro Broedel Diretor Executivo de Finanças e Relações com Investidores Marcos Magalhães Diretor Executivo de Adquirência 1Teleconferên
Slide 108: Destaques do resultado 1º trimestre de 2019
Destaques do resultado 1º trimestre de 2019 Lucro Líquido Recorrente ROE Recorrente Carteira de Crédito ¹ Índice de Inadimplência 90 dias Consolidado Consolidado Consolidado Consolidado 0,1 p.p. 7,7 % 7,1 % 1,4 p.p. R$ 647,1 bi 1T19 vs. 1T18 R$ 6,9 bi 23,6% 3,0% 1T19 vs. 1T18 1T19 vs. 1T18 1T19 vs.
Slide 109: Crédito por perfil de Cliente ou por tipo de produto
Crédito por perfil de Cliente ou por tipo de produto Originação de crédito¹ 1T19 vs. 1T18 Em R$ bilhões, ao final do período 1T19 4T18 D 1T18 D Total Pessoas Físicas 215,6 211,3 2,0% 191,4 12,7% Brasil ² 21% Cartão de Crédito 76,4 7 7,5 -1,3% 65,0 17,6% Crédito Pessoal 3 1,1 29,2 6,5% 27,4 13,7% Pes
Slide 110: Movimento inédito para o setor de adquirência
Movimento inédito para o setor de adquirência A Rede anunciou o fim da taxa de antecipação no cartão de crédito à vista • A partir de 2 de maio de 2019 • Vendas no cartão de crédito à vista • Usando qualquer maquininha da • Com domicílio bancário no Itaú Unibanco • E faturamento anual inferior a R$
Slide 111: Projeções 2019
Projeções 2019 Consolidado Brasil ¹ Anteriores Revisadas Anteriores Revisadas Carteira de Crédito Total ² 8,0% 11,0% 8,0% 11,0% Mantida Mantida Margem Financeira com Clientes 9,5% 12,5% 9,0% 12,0% 9,5% 12,5% 9,0% 12,0% Margem Financeira com o Mercado R$ 4,6 bi R$ 5,6 bi Mantida R$ 3,6 bi R$ 4,6 bi M
Slide 112: Anexos
Anexos 6Anexos 6
Slide 113: Lucro Líquido Recorrente e Criação de Valor
Lucro Líquido Recorrente e Criação de Valor 23,6% 22,2% 21,9% 21,8% 21,6% 21,3% ROE Custo de capital médio 14,5% 14,5% 14,0% 13,5% 13,5% 13,5% Lucro líquido recorrente 6,9 6,5 6,4 6,5 6,4 6,3 Criação de valor 2,0 2,9 2,2 2,0 2,5 2,5 Custo de capital 4,5 4,3 4,3 4,0 3,9 3,9 4T17 1T18 2T18 3T18 4T18 1
Slide 114: Margem Financeira com Clientes
Margem Financeira com Clientes Taxa Média Anualizada Brasil Consolidado 12,6% 12,3% 12,2% 12,1% 12,1% 12,0% 12,0% 11,8% 10,3% 10,1% 10,0% 9,9% 9,9% 9,9% 9,8% 9,8% 9,6% 9,5% 9,2% 9,2% 9,2% 9,0% 10,9% 8,9% 9,2% 8,9% 7,6% 7,7% 7,6% 7,6% 7,4% 7,4% 7,3% 7,5% 7,1% 6,4% 6,4% 6,7% 6,4% 6,4% 2T17 3T17 4T17 1
Slide 115: Margem Financeira com Mercado
Margem Financeira com Mercado 1,8 1,8 1,7 Em R$ bilhões 1,6 1,5 1,4 1,4 1,3 1,2 1,9 1,7 1,6 1,4 1,4 1,3 1,3 1,2 0,1 1,1 0,2 1,7 1,3 1,3 0,9 0,9 1,2 1,1 1,0 0,5 0,5 0,2 0,5 0,2 0,3 0,2 0,3 0,3 0,3 1T17 2T17 3T17 4T17 1T18 2T18 3T18 4T18 1T19 Margem financeira Venda de ações - B3 Margem financeira com
Slide 116: Custo e Qualidade do Crédito
Custo e Qualidade do Crédito Índices de Inadimplência Consolidado (90 dias) - % Brasil (90 dias) - % Consolidado (15-90 dias) - % Brasil (15-90 dias) - % 3,5 3,5 3,1 3,36 3,7 3,3 3,2 3,7 3,68 4,9 3,5 3,51 4,6 2,94 3,4 4,5 4,5 3,1 4,43 4,41 2,9 2,8 2,5 2,4 2,7 2,3 4,5 3,4 2,64 3,16 4,3 2,6 3,1 3,1 2,
Slide 117: Receita de Serviços e Resultado de Seguros
Receita de Serviços e Resultado de Seguros Correntistas PF Aumento no número de Em R$ bilhões 1T19 4T 3T 18 18 D 1T18 D correntistas Pessoa Física 10,4% em relação ao 1T18 Cartões de Crédito e Débito 3 ,3 3 ,5 -5,9% 3,3 -1,7% Serviços de Conta Corrente 1 ,8 1,9 -0,4% 1,8 1,5% Carteiras Administradas
Slide 118: Despesas não Decorrentes de Juros (DNDJ)
Despesas não Decorrentes de Juros (DNDJ) Índice de Eficiência 61,7 61,3 61,0 Em R$ bilhões 60,9 60,8 1T19 4T18 D 1T18 D Despesas de Pessoal (5,3) (5,6) -5,7% (5,1) 4,3% Despesas Administrativas ( 4,1) (4,5) -7,6% (3,9) 6,0% Despesas Operacionais ( 1,1) (0,9) 14,1% ( 1,2) -7,3% (0,1) ( 0,1) -5,7% (0,
Slide 119: Capital - Aplicação integral das regras de Basileia III
Capital Aplicação integral das regras de Basileia III │31 de Março de 2019 15,9% 14,6% 13,5% 1,0% -2,4% 0,3% 0,1% -0,1% 0,8% 1,3% 1,0% 14,9% 13,3% 12,5% Tier I Parcela adicional de Tier I de Dez/18 com Lucro Líquido 1T19 e Ajustes Prudenciais RWA Capital Complementar Tier I Dez/18 dividendos e JCP e
Slide 120: Modelo de Negócios
Modelo de Negócios Em R$ bilhões 1T19 1T18 Δ Excesso Excesso Excesso Serviços & Serviços & Serviços & Consolidado Consolidado Consolidado Trading de Trading de Trading de Crédito Crédito Crédito Seguros Seguros Seguros Capital Capital Capital 2 8,2 14,6 0 ,4 12,8 0,4 2 7,4 13,9 0 ,6 12,3 0 ,6 0 ,8 0
Slide 121: Resultados
Resultados 1T19 4T18 Δ 1T18 Δ Em R$ bilhões Produto Bancário 28,2 28,5 -0,9% 27,4 2,8% Margem Financeira Gerencial 17,7 17,4 1,6% 1 7,0 3,9% Margem Financeira com Clientes 1 6,4 1 6,2 1,2% 15,3 7,6% Margem Financeira com o Mercado 1,2 1,1 8,2% 1 ,7 -28,4% 8 ,6 9,2 -6,2% 8 ,5 1,1% Receitas de Prestaç
Slide 122: Prática de Distribuição de Lucro
Prática de Distribuição de Lucro Com o objetivo de mantermos uma gestão eficiente de capital, visando a criação de valor para o acionista, anunciamos em Fato Relevante, divulgado no dia 26 de setembro de 2017, que pretendemos: Simulação de Payout Manter a prática de pagamento de dividendos e para ma
Slide 123: Transformação Digital
Transformação Digital Uso dos canais digitais ¹ % das transações realizadas nos canais digitais Pessoas Físicas (em milhões) Empresas (em milhões) 1T17 1T19 Crédito 11,5 16% 18% 1,2 10,0 1,1 1,0 Investimentos 37% 46% 8,8 Pagamentos 64% 80% mar-17 mar-18 mar-19 mar-17 mar-18 mar-19 Nota: Participação
Slide 124: Teleconferência - Imprensa Resultados do 1º trimestre de 2019
Teleconferência - Imprensa Resultados do 1° trimestre de 2019 Candido Botelho Bracher Presidente e CEO Milton Maluhy Filho Vice-Presidente Executivo, CFO e CRO Alexsandro Broedel Diretor Executivo de Finanças e Relações com Investidores Marcos Magalhães Diretor Executivo de Adquirência 18Teleconferê
Slide 125: Attachment
Attachment 03 Attachment 03
Slide 126: Itaú Unibanco reports profits of R$ 6.9 billion in the first quarter of 2019
Itaú Unibanco reports profits of R$ 6.9 billion in the first quarter of 2019 Result driven by a combination of a better financial margin, cost control and growth in the credit portfolio São Paulo, May 2, 2019 – Itaú Unibanco, the largest private sector bank in Latin America, reported a recurring net
Slide 127: Press release commentary on digital accounts and credit demand
In the first quarter of 2019, the bank surpassed 11.5 million individual account holders that use the digital “Since last year, we have seen growth in demand from channels via internet or mobile applications. In the individuals and small and case of business accounts, this figure has already middle-
Slide 128: Attachment
Attachment 04 Attachment 04
Slide 129: Conference Call 1st quarter 2019 Earnings Review
Conference Call st 1 quarter 2019 Earnings Review Candido Botelho Bracher President and CEO Milton Maluhy Filho Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Finance Director and Head of Investor Relations Marcos Magalhães Merchant Acquirer Executive Director 1Conference Call st
Slide 130: Highlights 1st quarter 2019
Highlights st 1 quarter 2019 Recurring Net Income Recurring ROE Credit ¹ NPL 90 days Consolidated Consolidated Consolidated Consolidated 7.7 % 7.1 % 140 bps 10 bps R$647.1 bn 1Q19 vs. 1Q18 R$6.9 bn 23.6% 3.0% 1Q19 vs. 1Q18 1Q19 vs. 1Q18 1Q19 vs. 1Q18 Brazil Brazil Brazil Brazil 6.5 % 4.6 % 110 bps 0
Slide 131: Recurring Net Income and Value Creation
Recurring Net Income and Value Creation 23.6% 22.2% 21.9% 21.8% 21.6% 21.3% ROE Average Cost of Capital 14.5% 14.5% 14.0% 13.5% 13.5% 13.5% Recurring Net Income 6.9 6.5 6.5 6.4 6.4 6.3 Value Creation 2.0 2.9 2.2 2.0 2.5 2.5 Cost of Capital 4.5 4.3 4.3 4.0 3.9 3.9 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 3 In R
Slide 132: Credit by Client profile or Product
Credit by Client profile or Product Credit origination¹ 1Q19 vs. 1Q18 In R$ billions, end of period 1Q19 4Q18 D 1Q18 D Total Individuals 2 15.6 211.3 2.0% 1 91.4 12.7% Brazil ² 21% Credit Card Loans 76.4 7 7.5 -1.3% 6 5.0 17.6% Personal Loans 3 1.1 2 9.2 6.5% 27.4 13.7% Individuals Payroll Loans 48.
Slide 133: Financial Margin with Clients
Financial Margin with Clients Annualized Average Rate Brazil Consolidated 12.6% 12.3% 12.2% 12.1% 12.1% 12.0% 12.0% 11.8% 10.3% 10.1% 9.9% 9.9% 10.0% 9.9% 9.8% 9.8% 9.6% 9.5% 9.2% 9.2% 9.2% 9.0% 8.9% 10.9% 9.2% 8.9% 7.6% 7.7% 7.6% 7.6% 7.4% 7.4% 7.3% 7.5% 7.1% 6.7% 6.4% 6.4% 6.4% 6.4% 2Q17 3Q17 4Q17
Slide 134: Financial Margin with the Market
Financial Margin with the Market 1.8 1.8 1.7 In R$ billions 1.6 1.5 1.4 1.4 1.3 1.2 1.9 1.7 1.6 1.4 1.4 1.3 1.3 1.1 0.1 1.2 0.2 1.7 1.3 1.3 0.9 1.2 1.1 0.9 1.0 0.5 0.5 0.2 0.2 0.5 0.2 0.3 0.3 0.3 0.3 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Financial Margin with Sale of shares - B3 Financial Mar
Slide 135: Cost of Credit and Credit Quality
Cost of Credit and Credit Quality NPL Ratio Consolidated (90 days) - % Brazil (90 days) - % Consolidated (15-90 days) - % Brazil (15-90 days) - % 3.5 3.5 3.1 3.3 3.2 3.36 3.7 3.7 3.68 4.9 3.5 3.51 4.6 2.94 4.5 3.4 4.5 4.43 4.41 3.1 2.9 2.8 2.5 2.4 2.7 2.3 3.4 4.5 2.64 3.16 4.3 3.1 3.1 2.89 2.6 3.02
Slide 136: Commissions and Fees and Result From Insurance Operations
Commissions and Fees and Result From Insurance Operations Current Account Holders Increase in the number of In R$ billions 1Q19 4Q1 3T 8 18 D 1Q18 D Individuals account 10.4% holders compared to 1Q18. Credit and Debit Cards 3.3 3 .5 -5.9% 3.3 -1.7% Current Account Services 1.8 1 .9 -0.4% 1.8 1.5% As
Slide 137: Non-Interest Expenses and Efficiency Ratio
Non-Interest Expenses Efficiency Ratio In R$ billions 1Q19 4Q18 D 1Q18 D 61.7 61.3 61.0 60.9 60.8 Personnel Expenses ( 5.3) ( 5.6) -5.7% (5.1) 4.3% Administrative Expenses ( 4.1) (4.5) -7.6% (3.9) 6.0% Operating Expenses (1.1) (0.9) 14.1% ( 1.2) -7.3% (0.1) (0.1) -5.7% (0.1) 9.3% Other Tax Expenses
Slide 138: Capital - Full application of Basel III rules
Capital Full application of Basel III rules│ March 31, 2019 15.9% 14.6% 13.5% 1.0% -2.4% 0.3% 0.1% -0.1% 0.8% 1.3% 1.0% 14.9% 13.3% 12.5% Tier I 2018 additional Tier I Dec-18 1Q19 net income and Prudential Adjustments RWA Additional Tier I capital Tier I Dec-18 dividends and IOC after additional oth
Slide 139: Unprecedented initiative in the acquiring business
Unprecedented initiative in the acquiring business Rede ended the prepayment rate on credit card transactions without installments • Effective May 2, 2109 • Credit card transactions without installments • Using any POS machine from • With a bank domicile in Itaú Unibanco • And annual sales up to R$3
Slide 140: 2019 Forecast
2019 Forecast Consolidated Brazil ¹ Previous Revised Previous Revised Total Credit Portfolio ² 8.0% 11.0% 8.0% 11.0% Unchanged Unchanged Financial Margin with Clients 9.5% 12.5% 9.0% 12.0% 9.5% 12.5% 9.0% 12.0% Financial Margin with the Market R$4.6 bn R$5.6 bn Unchanged R$3.6 bn R$4.6 bn Unchanged
Slide 141: Appendix
Appendix 13Appendix 13
Slide 142: Business Model
Business Model In R$ billions 1Q19 1Q18Δ Insurance Excess Insurance Excess Insurance Excess Consolidated Consolidated Consolidated Credit Trading Credit Trading Credit Trading & Services Capital & Services Capital & Services Capital Operating Revenues 2 8.2 14.6 0 .4 1 2.8 0 .4 2 7.4 1 3.9 0 .6 12.3
Slide 143: Results
Results In R$ Billions 1Q19 4Q18 Δ 1Q18 Δ Operating Revenues 28.2 28.5 -0.9% 27.4 2.8% Managerial Financial Margin 17.7 17.4 1.6% 17.0 3.9% Financial Margin with Clients 16.4 1 6.2 1.2% 15.3 7.6% Financial Margin with the Market 1.2 1.1 8.2% 1 .7 -28.4% Commissions and Fees 8.6 9 .2 -6.2% 8.5 1.1% 1
Slide 144: Payout Practice
Payout Practice Maintain the practice of paying dividends and interest on own capital at 35% of net income (however we excluded the maximum limit previously determined at 45%). Set forth, through the Board of Directors, the total amount to be distributed each year considering: our capitalization lev
Slide 145: Digital Transformation
Digital Transformation Use of Digital Channels ¹ % of transactions through digital channels Individuals (in millions) Companies (in millions) 1Q17 1Q19 Credit 11.5 16% 18% 1.2 10.0 1.1 1.0 Investments 37% 46% 8.8 Payments 64% 80% Mar-17 Mar-18 Mar-19 Mar-17 Mar-18 Mar-19 Note: Share of digital chann
Slide 146: Conference Call 1st quarter 2019 Earnings Review
Conference Call st 1 quarter 2019 Earnings Review Candido Botelho Bracher President and CEO Milton Maluhy Filho Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Finance Director and Head of Investor Relations Marcos Magalhães Merchant Acquirer Executive Director 18Conference Call s
Itau Unibanco Holding — Q1 2019 Earnings Presentation on 6ix