Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q3 2023 Earnings Presentation
58 slides from Itau Unibanco's earnings presentation, Nov 7, 2023
Slide 1: Announcement to the Market: 3rd Quarter 2023 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 2023 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: Conferência com a imprensa 3T23
conferência com a imprensa 3T23 São Paulo, 7 de novembro de 2023
Slide 4: Destaques do trimestre
destaques do trimestre consolidado ROE recorrente gerencial receita de serviços e seguros ¹ custo do crédito NPL > 90 dias índice de capital nível 1 R$ 9,0 bilhões 3,4 R$ 12,9 bilhões 3,6% 3,0% 0,1 p.p R$ 9,3 bilhões 1,9 14,6% 1,0 p.p resultado recorrente gerencial estável 0,5 p.p 22,0% Brasil 21,1%
Slide 5: Carteira de crédito
Corporativo | Interno set/23 jun/23 D set/22 D pessoas físicas 408,0 405,4 0,6% 385,0 6,0% cartão de crédito 127,7 128,4 -0,5% 128,8 -0,8% crédito pessoal 60,7 58,2 4,2% 51,5 17,9% crédito consignado 73,8 74,9 -1,4% 72,2 2,3% veículos 32,8 32,4 1,0% 31,8 3,1% crédito imobiliário 112,9 111,5 1,3% 100
Slide 6: Margem financeira com clientes
margem financeira com clientes (1) Inclui o capital alocado às áreas de negócio (exceto tesouraria), além do capital de giro da corporação; (2) Mudança na composição dos ativos com risco de crédito entre períodos no Brasil; (3)América latina e outros considera operações estruturadas do atacado. marg
Slide 7: Receita de serviços e resultado de seguros
receita de serviços e resultado de seguros ¹ ² em R$ bilhões administração de recursos- saldo em R$ bilhões 2.094 346 2.048 326 2.440 2.374 jun/23 set/23 2,2% 6,3% produtos próprios plataforma aberta 2,8% total 3T23 2T23 D 3T22 D cartões de crédito e débito 4,2 4,0 4,0% 3,9 7,0% emissão 3,0 2,9 4,5%
Slide 8: Qualidade do crédito
qualidade do crédito Brasil Brasil Impacto cessão de créditos¹ consolidado consolidado +0,01 p.p. 3,0%3,1% 2,7% 2,2% 2,3%2,3%2,3% 2,6% 2,5%2,6% 2,7%2,8%2,9%2,9% 3,0%3,0% 3,4%3,5% 3,2% 2,6%2,7% 2,7%2,7%2,8%2,8% 2,9% 3,0% 3,2% 3,4% 3,4% 3,5%3,5% 1,9% 2,0% 1,4% 1,2% 1,3% 1,5% 1,4% 2,0% 1,6%1,6% 1,7% 1,
Slide 9: Despesas não decorrentes de juros
despesas não decorrentes de juros (1) Considera despesas operacionais, despesas de provisão e outras despesas tributárias (Inclui IPTU, IPVA, IOF e outros. Não inclui PIS, COFINS e ISS. variação com destaque para investimentos 9M23 vs. 9M22 (40,1) América Latina Brasil 9M22 9M22 América Latina 6,4 (
Slide 10: Guidance 2023
8 Corporativo | Interno (1) Inclui garantias financeiras prestadas e títulos privados; (2) Composto pelo resultado de créditos de liquidação duvidosa , impairment e descontos concedidos; (3) Receitas de prestação de serviços (+) resultado de operações de seguros, previdência e capitalização ( (--) d
Slide 11: Conferência com a imprensa 3T23 - Presenters
conferência com a imprensa 3 T23 São Paulo, 7 de novembro de 2023 Milton Maluhy Filho Presidente Alexsandro Broedel Chief Financial Officer (CFO)
Slide 12: Attachment 02
Attachment 02
Slide 13: Earnings review 3Q23
earnings review 3 Q 23 São Paulo, November 7 th 2023
Slide 14: 3Q23 highlights
c ommissions and insurance¹ cost of credit +90 d ays NPL tier 1 c apital ratio R$ 9.0 billion 3.4% R$12.9 billion 3 3 21.1% 0.1 p.p. R$ 9.3 billion 1.9 14.6% 1.0 p.p. recurring managerial result stable 0.5 p.p 22.0% Brazil consolidated 3Q23 vs. 2Q23 change
Slide 15: Credit portfolio
credit portfolio in R$ billion ¹ (1) includes private securities. Sep-23 Jun-23 D Sep-22 D individuals 408.0 405.4 0.6% 385.0 6.0% credit card loans 127.7 128.4 -0.5% 128.8 -0.8% personal loans 60.7 58.2 4.2% 51.5 17.9% payroll loans 73.8 74.9 -1.4% 72.2 2.3% auto loans 32.8 32.4 1.0% 31.8 3.1% mort
Slide 16: Financial margin with clients
financial margin with clients margin with clients risk-adjusted financial margin with clients annualized average margin Brazil 4 annualized average margin consolidated 8.6% 8.7% 8.7% 8.8% 8.9% 5.6% 5.1% 5.3% 5.4% 5.6% 3T22 4T22 1T23 2T23 3T23 R$0.7 bn (+3.2%) 3Q22 4Q22 1Q23 2Q23 3Q23 9.4% 9.4% 9.4%
Slide 17: Financial margin with the market
financial margin with the market In R$ billion 0.5 0.4 0.2 0.5 0.1 0.2 0.1 1.0 0.8 0.9 0.8 1.0 1.3 1.0 1.0 0.6 0.5 0.7 0.6 1.1 0.7 -0.4 -0.5 -0.6 -0.5 -0.5 -0.4 -0.4 11QT2222 22QT2222 33TQ2222 44TQ2222 11TQ2233 22TQ2233 3T23 Brazil capital index hedge Latin America 3Q23 5
Slide 18: Commissions, fees and result from insurance
commissions, fees and result from insurance In R$ billion 3Q23 2Q23 D 3Q22 D credit and debit cards 4.2 4.0 4.0% 3.9 7.0% card issuance 3.0 2.9 4.5% 2.9 2.9% acquiring 1.2 1.2 2.8% 1.0 18.9% current account services 1.6 1.7 -2.3% 1.8 -8.9% asset management¹ 1.5 1.4 1.4% 1.4 3.8% advisory services an
Slide 19: Credit quality
credit quality Brazil Brazil 3.1% 3.5% 2.4% 3.0% 2.4% 2.8% 2.6%2.4% 2.7% 3.1% 3.1% 3.2% 3.2% 3.5% 3.4% 3.2% 1.6% 1.9% 1.0%1.1% 1.8% 1.6% 1.4% 1.3% 1.2% 1.6%1.6%1.5% 1.6% 1.8% 1.8% 1.7% 1.2% 0.7% 0.9% 0.7%0.6%0.5% 0.8%0.2%0.2%0.2%0.1%0.1% 0.2%0.2% 0.3%0.2% dez/19mar/20 jun/20 set/20 dez/20mar/21 jun/
Slide 20: Quality and cost of credit
quality and cost of credit annualized cost of credit/ loan portfolio² - (%) cost of credit¹ (in R$ billion) (1) provision for loan losses + recovery of loans + impairment + discounts granted; (2) average loan portfolio balance with financial guarantees provided and corporate securities considers the
Slide 21: Non-interest expenses
non-interest expenses change, highlighting investments 9M23 vs. 9M22 (40.1) Latin America Brazil 9M22 9M22 Latin America 6.4 (33.7) (6.3) Core: (0.4) | 1.1% business and technology (2.4) Brazil 9M23 (36.5) efficiency program 1.0 9M23 (42.8) Brazil with investments (36.1) transactional and other In R
Slide 22: Artificial intelligence
artificial intelligence 570+ AI models currently in use More security to our customers Use of AI for voice interpretation and detection of possible fraud attempts. Generative AI improves productivity and corporate customer experience Highly accurate (+97%) reading and analysis of corporate informati
Slide 23: Diversity and inclusion
diversity and inclusion Objective by 2025 Hiring flow of black people: Target: 40% current: 40.7% 35% to 40% 27% to 30% Current: 35.1% Valor 1000 Great Place to Work Lugares incríveis para trabalhar Current: 27.3% Reached in Jul 23 Black representation Women in leadership Objective by 2025 Reached i
Slide 24: Capital
capital Jun 23 common equity Tier I (CET I) n et income, dividends and interest on own capital Sep 23 Tier I capital 11,3% 12.2% + 0 4% r isk weighted assets 1 - 0.3% 1.5% 13.1% 14.6% + 0.9% Basel III, evolution of internal models and corporate events common equity Tier I (CET I) a dditional Tier I
Slide 25: Banco Itaú Argentina
Banco Itaú Argentina R$ 4.0 billion Credit portfolio as of Jul-23 Operating revenues R$ 1.9 billion R$ 648 million Non-interest expenses Recurring managerial result R$ 578 million The result of the sale was a negative in R$1.2 billion and considered as an extraordinary item in 3Q23 Itaú Unibanco's B
Slide 26: 2023 guidance
14 Corporativo | Interno (1) Includes financial guarantees provided and corporate securities; (2) Composed of result from loan losses, impairment and dis counts granted; (3) commissions and fees (+) income from insurance, pension plan and premium bonds operations ( (--) expenses for claims (--) insu
Slide 27: Earnings review 3Q23
earnings review 3Q23 São Paulo, November 7 th 2023
Slide 28: São Paulo, November 2023
16 Corporativo | Interno São Paulo, November 7 th 2023
Slide 29: Results
results 3Q23 2Q23 D 3Q22 D 9M23 9M22 D operating revenues 39.5 38.8 1.8% 36.6 8.1% 115.8 104.9 10.5% managerial financial margin 26.3 26.0 1.1% 23.9 9.9% 77.0 67.6 13.9% financial margin with clients 25.6 24.9 2.5% 23.4 9.3% 74.5 65.4 13.9% financial margin with the market 0.7 1.1 -33.1% 0.5 38.6% 2
Slide 30: Business model
business model the allocation of principal capital (Common Equity Tier 1) in the bank’s business was made at 12% until the first quarter of 2022 and at 11.5% from the second quarter of 2022 on, according to our risk appetite. in R$ billion Total Credit Trading Insurance & services Excess capital Tot
Slide 31: Earnings review 3Q23
earnings review 3Q23 São Paulo, November 7 th 2023
Slide 32: Attachment 03
Attachment 03
Slide 33: 3Q23 institutional presentation
3Q23 institutional presentation
Slide 34: A full service bank with years of history
_ with 99 years of history, we are a full service bank most valuable 4 Latin American brand US$8.7 bn ( 1 ) In 11/01/2023 ; (2) On September 30th, 2023; (3) I n 3Q23; (4) 2023 Brand Finance Ranking Global 500 the best bank to work for in Brazil and winner of LinkedIn’s Diversity award 97.5 k employe
Slide 35: We are present in countries
we are present in 18 countries (1) Considers financial guarantees provided and private securities. (2) Recurring Managerial ROE calculated by dividing Recurring Managerial Result by the Average Shareholders' Equity. (3) Reached by dividing Non-Interest Expenses by the sum of Managerial Financial Mar
Slide 36: Most complete portfolio of products and services
with the most complete portfolio of products and services... ...and brands and partnerships to serve different client profiles working capital investment acquiring banking Individuals Companies The values mentioned above for individuals refer to monthly income and the values for companies refer to a
Slide 37: Corporate development and partnerships
Corporate development 5 Corporate venture capital Commercial partnerships M&A and Joint Ventures products distribution channels technology & people Corporativo
Slide 38: Clients choose how they want to be served
our clients choose how they want to be served 6 (1) Chile, Colombia, Paraguay and Uruguay, (2) for individuals; (3) Comparing 3Q23x3Q22. It includes unsecured loans, payroll loans, personalized credit, renegotiation, investments, funds, time deposits, savings accounts, pension plans, foreign exchang
Slide 39: History and milestones
1924 first credit and debit cards new Brazilian Payment System is set up banking automation begins Technical Operations Center (CTO) is set up 1980 first Internet providers mobile banking in Brazil 1990 first iPhone is launched 1983 first ATM in Brazil 1960 1970 one of the four top data processing c
Slide 40: Solid governance
solid governance governance pillars ensures business sustainability Partners’ program long-term incentives Deliberates on significant topics Itaú Unibanco Holding S.A. Stockholders’ Meeting 3 Effective Members 3 Alternate Members Fiscal Council IUPAR Family control ensures a long-term vision Respons
Slide 41: Risk culture and strict models
supported by our risk culture, we operate based on strict models Capital and Risk Management Committee Audit Committee Independent review of the activities developed by the institution Monthly risk appetite monitoring Discussion of metrics and the outcome of Risk Appetite, as well as the main risks
Slide 42: Values that guide our cultural transformation
Corporativo | Interno 10 values that guide our cultural transformation journey Itubers are ambitious in their goals a nd efficient in their execution are committed to sustainable growth strive to make a positive impact on society Itubers are as diverse as our clients welcome different points of view
Slide 43: Strategic pillars
Corporativo | Interno 1. client centricity We want to be the benchmark in satisfaction, transforming our culture so that the client is at the center of everything. Our actions and efforts are designed for our clients’ satisfaction, a key metric for the entire organization. 4. growth Intensify the re
Slide 44: We put the client first
+793k¹ calls +1,100¹visits _commitments assumed by branches employees, aligned with learnings, aiming to improve the client experience. +50k¹ initiatives products and services _the most complete product portfolio in the Brazilian financial sector, using data to provide the best offers. we are determ
Slide 45: Technology enabling the best service
technology enabling our clients to have the best service growth in the volume of our implementations in the first nine months of 2023, 13 times more than in 2018¹ -98% reduction in high client impact incidents compared to 2018¹ + + = Artificial intelligence and Data Integrated into our work methodol
Slide 46: Efficiency gains
client centricity and digital transformation with efficiency gains reviewing, streamlining and optimizing processes, automating activities, using data and analytics progressively reducing the bank’s core costs in the coming five years ongoing challenging activities and processes to seek efficiency g
Slide 47: Leadership in several businesses and growth opportunities
leadership in several business and growth opportunities Market leader Card payments grow 4.2% in 2Q23 in Brazil4 The most complete shelf of cards 27.9% market share in revenue in Jun/23 Cards 12.3% market share in credit porfolio in Jun/23 Ranked #1 in private sector and INSS (Jun/23)6 Payroll Loans
Slide 48: Market leadership by business
Corporativo | Interno 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1 Brazilian association of services and credit card companies (ABECS - Associação Brasileira das Empresas de Cartões de Crédito e Serviços); 2 ANBIMA Ranking; 3 By Guia de Fundos FGV 4 Dealogic and Anbima rankings of volume
Slide 49: Growth alongside innovation
growth alongside innovation new products, channels and services launched Specialized investment platform: • Global visualization of portfolios • Products from Itaú and peers • Digital and human interaction channels • Financial Education Platform: íon Edu investment platform 2.9 million app downloads
Slide 50: ESG initiatives integrated into business
ESG initiatives integrated into business ensure the bank’s sustainabilitystrategy based on ten positive impact commitments financial citizenship To take care of people's financial health inclusion and entrepreneurship To support entrepreneurship to enhance social development responsible investment T
Slide 51: ESG initiatives: discover some of our initiatives
ESG initiatives integrated into business ensure the bank’s sustainability discover some of our initiatives business In August, we held the Itaú BBA Experience 2023, an event aimed at black university students. The goal of the event was to introduce the Itaú BBA to students interested in the financia
Slide 52: Solid results and sustainable value creation
solid results and sustainable value creation 20 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M22 9M23 average cost of capital ROE BRL billion recurring managerial result value creation cost of capital
Slide 53: Higher revenue with cost discipline
higher revenue with a cost discipline 17.6 3Q19 15.6 3Q20 17.6 3Q21 23.4 3Q22 3Q23 BRL25.6bn financial margin with clients 2.5% 3Q23 vs. 2Q23 1.5 3Q19 1.4 3Q20 1.9 3Q21 0.5 3Q22 3Q23 BRL0.7bn financial margin with the market 33.1% 3Q23 vs. 2Q23 4.5 3Q19 6.3 3Q20 5.2 3Q21 8.0 3Q22 3Q23 BRL9.3bn cost
Slide 54: Without overlooking risk management
without overlooking risk management 703 Sep-19 847 Sep-20 962 Sep-21 1,111 Sep-22 Sep-23 BRL1,163bn credit portfolio¹ 1.0 % Sep-23 vs. Jun-23 4.7 % Sep-23 vs.Sep-22 Sep-23 3.0% 90 days NPL 0.0 p.p. 0.2 p.p. Sep-23 vs. Sep-22 ¹ Includes financial guarantees provided and corporate securities. ² Deposi
Slide 55: Capital structure suitable for growth strategy
capital structure suitable for carrying out our growth strategy Basel ratio Minimum required capital Itaú Unibanco 23 Corporativo | Interno Corporativo | Interno diversified shareholders
Slide 56: Diversified shareholder base with high liquidity
diversified shareholders base with high liquidity Daily average volume of shares traded (BRL million) ITUB4 480 k direct shareholders in September 2023 F ree float* | Non voting shares 4.8 billion of shares Brazilians B3 Foreigners B3 NYSE we are listed at B3 and NYSE and make up top market indices
Slide 57: 2023 guidance: reaffirmed and normalized
2023 guidance: reaffirmed and normalized 25 (1) Includes financial guarantees provided and corporate securities; (2) Composed of result from loan losses, impairment and dis counts granted; (3) commissions and fees (+) income from insurance, pension plan and premium bonds operations ( (--) expenses f
Slide 58: Investor Relations
Investor Relations (11) 2794 3547 ri@itau unibanco.com.br www.itau.com.br /ri
Itau Unibanco Holding — Q3 2023 Earnings Presentation on 6ix