Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — Q2 2017 Earnings Presentation
23 slides from Itau Unibanco's earnings presentation, Aug 2, 2017
Slide 1: 2nd quarter 2017 – Earnings Review Conference Call
2nd quarter 2017 – Earnings Review Conference Call Candido Botelho Bracher President and CEO (Chief Executive Officer) Caio Ibrahim David Executive Vice-President, CFO (Chief Financial Officer) and CRO (Chief Risk Officer) Marcelo Kopel Investor Relations Officer
Slide 2: Pro Forma Information
Pro Forma Information The merger between Itaú Chile and CorpBanca was concluded on April, 1st 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 the new bank. In orde
Slide 3: Main Challenges
Main Challenges Seeking excellence and value creation for all our stakeholders, we perceive as our main challenges: Focus on Clients Risk Management We must further increase the focus on clients, aligned with We must commit ourselves to fully comply with the Risk international best practices not lim
Slide 4: Digital Strategy Highlights
Digital Strategy Highlights Individuals and Companies Account Holders Internet 2Q17 77% and mobile +400 bps transactions 2016 73% Digital clients 2Q17 13.6 (million) +6% 2016 12.8 Mobile users 2Q17 10.0 (million) +15% 2016 8.7 Itaú Unibanco Holding S.A. Recent Developments 2017 • + 400k clients; mos
Slide 5: Highlights
Highlights Recurring Net Income Consolidated R$6.2 bn - 0.1% (2Q17/1Q17) R$12.3 bn +15.0% (1H17/1H16) Brazil R$5.9 bn - 1.2% (2Q17/1Q17) R$11.9 bn + 16.6% (1H17/1H16) Recurring ROE (p.a.) Consolidated 21.5% - 50 bps (2Q17/1Q17) 21.8% + 170 bps (1H17/1H16) Brazil 22.7% - 80 bps (2Q17/1Q17) 23.1% + 22
Slide 6: Recurring ROE / Recurring ROA
Recurring ROE / Recurring ROA Consolidated ROE / ROA 24.8% 24.1% 22.1% 22.0% 21.5% 19.6% 20.6% 19.9% 20.7% 1.8% 1.8% 1.6% 1.4% 1.6% 1.6% 1.6% 1.7% 1.7% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Annualized Recurring Return on Average Equity (quarterly) Annualized Recurring Return on Average Assets
Slide 7: Results
Results In R$ billions 2Q17 1Q17 change 1H17 1H16 change Operating Revenues 27.2 27.3 -0.2% 54.5 54.6 -0.2% Managerial Financial Margin 17.4 17.4 -0.2% 34.8 35.2 -1.2% Financial Margin with Clients 15.8 15.5 1.4% 31.3 31.9 -2.0% Financial Margin with the Market 1.6 1.9 -13.1% 3.5 3.3 7.2% Commission
Slide 8: Results – Brazil and Latin America
Results – Brazil and Latin America 1H17 1H16 change Latin Latin Latin Consolidated Brazil 1 America Consolidated Brazil 1 America Consolidated Brazil 1 America In R$ billions (ex-Brazil)2 (ex-Brazil)2 (ex-Brazil)2 Operating Revenues 54.5 50.1 4.4 54.6 49.6 4.9 -0.2% 0.8% -10.2% Managerial Financial
Slide 9: Business Model
Business Model 1H17 1H16 change Insurance Excess Insurance Excess Insurance Excess Consolidated Credit Trading Consolidated Credit Trading Consolidated Credit Trading In R$ billions and Services Capital and Services Capital and Services Capital Operating Revenues 54.5 28.3 1.0 23.7 1.4 54.6 30.2 1.2
Slide 10: Credit Portfolio, end of period
Credit Portfolio In R$ billions, end of period 2Q17 1Q17 change 2Q16 change Individuals 179.4 180.5 -0.6% 182.6 -1.8% Credit Card Loans 56.4 56.2 0.3% 54.5 3.5% Personal Loans 25.9 26.3 -1.6% 28.7 -9.9% Payroll Loans 44.8 44.9 -0.1% 46.5 -3.7% Vehicle Loans 14.1 14.8 -4.6% 16.7 -15.6% Mortgage Loans
Slide 11: Financial Margin with Clients
Financial Margin with Clients Annualized Average Rate 14.0% 14.1% 14.1% 14.1% 14.1% 13.8% 13.1% 12.7% 11.1% 11.6% 11.0% 11.1% 10.9% 10.9% 10.1% 10.3% 10.5% 10.8% 10.3% 10.3% 7.4% 7.4% 7.5% 6.1% 6.7% 7.3% 6.8% 6.6% 6.7% 6.1% 5.4% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Annualized average rate of
Slide 12: Financial Margin with the Market
Financial Margin with the Market In R$ billions 1.7 1.7 1.8 1.8 1.7 1.7 1.7 1.6 1.4 2.3 2.0 1.9 1.7 1.7 1.6 1.6 1.5 2.1 1.3 1.7 1.4 1.6 1.8 1.2 1.2 1.5 1.3 0.2 0.2 0.3 0.3 0.2 0.2 0.3 0.1 0.1 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Financial Margin with the Market - Brazil3 Financial Margin wit
Slide 13: Credit Quality
Credit Quality 90-day NPL Ratio - Consolidated - % 15 to 90-day NPL Ratio - Consolidated - % 5.2 4.6 4.5 4.0 4.2 4.2 3.9 3.9 3.8 3.7 3.6 3.6 3.6 3.3 4.4 3.4 3.2 2.9 3.2 3.1 2.6 3.9 3.6 2.9 2.8 2.8 3.6 3.4 3.4 3.4 2.6 2.5 3.3 3.2 3.2 3.2 3.1 2.9 3.0 3.0 2.7 3.0 2.5 2.7 2.7 2.6 2.3 1.1 1.2 1.3 1.2 2.1
Slide 14: NPL Creation
NPL Creation In R$ billions 6.8* 6.3 6.0 5.7 5.5 5.3 5.3 5.0 4.9 4.5 4.4 4.3 4.3 4.2 3.9 4.1 3.6 3.8 3.8 3.5 2.3* 1.4 1.3 1.5 1.0 1.0 1.1 1.0 0.8 0.4 0.6 0.8 0.4 0.3 0.4 0.5 0.2 0.3 0.2 0.1 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Total Retail Banking - Brazil Wholesale Banking - Brazil Lat
Slide 15: Provision for Loan Losses and Cost of Credit
Provision for Loan Losses and Cost of Credit Provision for Loan Losses by Segment In R$ billions 5.8% 4.3% 4.4% 4.6% 5.0% 5.0% 4.7% 4.5% 3.8% 4.0% 4.0% 3.9% 4.3% 4.1% 7.8 6.0 6.4 0.8 6.3 6.2 5.8 5.7 5.8 5.4 4.9 4.6 4.9 4.8 0.4 2.7 0.4 0.4 4.4 0.4 0.4 0.4 1.4 1.5 0.8 0.4 0.3 0.2 0.3 0.3 1.9 1.3 1.8 1
Slide 16: Total Allowance by Type of Risk – Consolidated
Total Allowance by Type of Risk – Consolidated In R$ billions Allocation of Total Allowance(*) by Type of Risk - Consolidated Regulatory Breakdown 38.5 37.6 37.4 37.4 Complementary Expected and/or Retail - Brazil3 6.1 Allowance Potential Loss Related to expected 8.8 10.7 Wholesale - Brazil3 9.1 16.4
Slide 17: Coverage Ratio (90-day NPL)
Coverage Ratio (90-day NPL) Coverage Ratio and Expanded Coverage Ratio Coverage Ratio 715% 553% 494% 243% 231% 222% 212% 210% 215% 245% 206% 204% 232% 231% 187% Without CorpBanca With Itaú CorpBanca 159% 165% 166% 100% 102% 104% 104% 104% 104% 101% 97% 90% Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 D
Slide 18: Commissions & Fees and Result from Insurance
Commissions & Fees and Result from Insurance In R$ billions 2Q17 1Q17 change 1H17 1H16 change Asset Management ¹ 0.8 0.9 -3.4% 1.7 1.4 17.7% Current Account Services 1.7 1.7 1.7% 3.3 3.1 6.0% Credit Operations and Guarantees Provided 0.8 0.8 -1.6% 1.7 1.6 7.3% Collection Services 0.4 0.4 0.2% 0.8 0.
Slide 19: Non-Interest Expenses
Non-Interest Expenses In R$ billions 2Q17 1Q17 change 1H17 1H16 change Personnel Expenses (5.0) (4.8) 4.4% (9.8) (9.0) 8.9% Administrative Expenses (4.0) (3.8) 4.8% (7.8) (7.7) 0.9% Personnel and Administrative Expenses (9.0) (8.6) 4.5% (17.5) (16.7) 5.2% Operating Expenses (1.3) (1.1) 18.0% (2.3) (
Slide 20: Core Capital Ratio (Common Equity Tier I)
Core Capital Ratio (Common Equity Tier I) Changes in the Core Capital Ratio 15.4% 0.8% -0.2% -0.1% -0.2% 0.1% -0.1% 15.7% Common Equity 2Q17 Net Income Dividends and Other changes in Tax Credits Credit Risk-weighted Market Risk-weighted Common Equity Tier I Mar-17 interest on capital stockholders’ e
Slide 21: 2017 Forecast
2017 Forecast We kept unchanged the ranges of our 2017 forecast. As of 2Q17, Discounts Granted started to be disclosed in Cost of Credit, composed of Result from Loan Losses, Impairment and Discounts Granted. Therefore, we present this new version of our forecast considering the effects of the recla
Slide 22: 2017 APIMEC Meeting in São Paulo
2017 APIMEC Meeting in São Paulo Tuesday, September 26th at 2:00 p.m. Hotel Unique – Espaço de Eventos Av. Brigadeiro Luiz Antônio, 4700 - Jardim Paulista –São Paulo – SP Valet parking available The presentation will be transmitted via website www.itau.com.br/investor-relations, including simultaneo
Slide 23: 2nd quarter 2017 – Earnings Review Conference Call
2nd quarter 2017 – Earnings Review Conference Call Candido Botelho Bracher President and CEO (Chief Executive Officer) Caio Ibrahim David Executive Vice-President, CFO (Chief Financial Officer) and CRO (Chief Risk Officer) Marcelo Kopel Investor Relations Officer
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