1q21 institutional presentation
TRANSCRIPT
1Q21 Institutional Presentation
Itaú Unibanco Holding S.A.
1Q21
This presentation contains forward-looking statements regarding Itaú Unibanco Holding, its subsidiaries and affiliates - anticipated synergies, growth plans, projected results and future strategies. Although theseforward-looking statements reflect management’s good faith beliefs, they involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different fromthose anticipated and discussed herein. These statements are not guarantees of future performance. These risks and uncertainties include, but are not limited to our ability to realize the amount of the projected synergiesand the timetable projected, as well as economic, competitive, governmental and technological factors affecting Itaú Unibanco Holding’s operations, markets, products and prices, and other factors detailed in ItaúUnibanco Holding’s filings with the Securities and Exchange Commission which readers are urged to read carefully in assessing the forward-looking statements contained herein. Itaú Unibanco Holding undertakes in dutyto update any of the projections contained herein. This presentation contains managerial numbers that may be different from those presented in our financial statements. The calculation methodology for thosemanagerial numbers is presented in Itaú Unibanco Holding’s quarterly earnings report. To obtain further information on factors that may give rise to results different from those forecast by Itaú Unibanco Holding, pleaseconsult the reports filed with the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - CVM) and with the U.S. Securities and Exchange Commission (SEC), including Itaú Unibanco Holding’smost recent Annual Report on Form 20F.
AgendaCorporate
profileStrategicagenda
Corporategovernance
Our businesses
0413
3258
Economiccontext
Capital andrisk management
6780
Financial highlights 84
Additionalinformation94
Corporate profile
Corporate profile
About us?
Universal bank | 97 years of history | largest bank in Latin America¹
(1) Largest bank in market value; (2) 2020 Interbrand Ranking ; (3) March 2021 (4) In 1Q21. (5) December 2020.
Approximately
We are present in 18 countries
493 kdirect shareholders
4.3 kbranches and PABs
97 kemployees
56 million5
Retail clients
45 kATMs
Key
Multiple Bank1 Corporate & Investment Banking 2 Asset Management 3 Private BankingOther operations
5
Rest of the World
Argentina
Brazil
Chile
ColombiaMexicoPanamaParaguayPeru
Uruguay
Latin America
1
1
GermanyBahamasCaymanSpainUnited StatesFrancePortugalUnited KingdomSwitzerlandReino UnidoSuíça
1
1
1
1
1 2
3
2 3
1
1 2 3
1
3
Market Value³US$48.1 bn
Total assets3
R$2,124.8 bnCredit portfolio3
R$906.4 bn
RecurringManagerial ROE4
18.5%
Recurring Managerial Result4
R$6.4 bn
Tier I Capital 3
13.0%
Brazil’s most valuable² brand
R$37.4 billion
Corporate profile
What do we do?
Personal
Cards
Working capital
Mortgage
Micro credit
Vehicles
Rural
Current accounts
Cards and acquiring
Consórcio
Brokerage
Premium Bonds
Payment means
Capital markets
Life
Homeowners insurance
Auto
Dental
Card protection
Travel
Healthcare
Smartphone protection
Investments Guarantee insurance
Payroll loans
Imports/Exports
Pension plans
Full offering of products and services | diversified client base | solid brand
ServicesCredit InsuranceA completephysical and digital bank
The Retail Bank includes retail clients, high-income clients and very small and small businesses, in addition to products and services for non-account holders.
The Wholesale Bank is responsible for high net
worth clients (private banking), the units in Latin
America, banking for middle market and large
companies and corporations through Itaú
BBA, the unit responsible for corporate clients and
for its role as an investment bank.
Open platformInvestment and insurance products sold on open platforms.
$
$
$
$
$
$
$$
$
Main brands and commercial partners
Other productsOther products Other products...... ...
6
Corporate profile
How have we evolved?
First stepsCasa Moreira Salles opens in 1924, and Banco Central de Créditoin 1943.
Paths to growthMarked by mergers, acquisitions and business alliances that enabled the growth and consolidation of both institutions.
A historic mergerIn 2008, Itaú andUnibanco united to create Brazil’s largest private bank.
Focus onLatin AmericaOur international presence has evolved year after year. Today, Itaú is present in 18 countries.
A bank with a purposeWe believe that people have the power to transform the world, and that the bank can promote this transformation.
1929 1945 1983 1985 1990 2006 2016 2020
Adaptable culture | innovation | transparency in business
1930 1950 1960 1980 1984 2002 2014 2020
We have witnessed important changes around the world...
NY Stock Exchange crisis
First overseas branch of Itaú
First version of Windows appears
First Internet providers
World War II ends
Itaú on the NY Stock Exchange
First checks with client’s name
First in-branch calculators
FirstATMs
Mobile Banking in Brazil
First debit and credit cards
Banking automation begins
... and in Brazil
UK decides to leave the European Union (Brexit)
7
World Health Organization declares coronavirus pandemic
Fintechsstart to gain strength
Central Bank launches PIX
Corporate profile
A responsible bank | Commitments to positive impact
8
No poverty
SDG 1
Quality education
SDG 4
Genderequality
SDG 5
Affordable and clean
energy
SDG 7
Decent work and economic
growth
SDG 8 SDG 9Industry,
innovation and
infrastructure
Reduced inequalities
SDG 10
Sustainable cities and
communities
SDG 11 SDG 12Responsible
consumption and production
Climate action
SDG 13Peace, justice
and strong institutions
SDG 16
Each commitment to positive impact is sponsored by a senior executive from the bank's institutional and commercial areas.
(1) Potential material theme.
Partnerships forthe goals
SDG 17
Corporate profile
A responsible bank | ESG Timeline
9(1) Brazilian Corporate Sustainability Index
1999 2000
Environmental andsocial risk analysis
2004 2005 2008 2009
2020 2019 2017 2015 2013
2010
ESG aspects have been integrated into our management for over two decades
Commitments toPositive Impact
1
Sustainability FinanceFramework
2021
Applicable to Sustainable bonds
Amazon Plan in partnership with Bradesco and SantanderAmong the ten initiatives, four measures were prioritized
Amazon Conference
+ 12,000 participantsin the 3 days of the conference
+ 70 specialists, companies and members of the financial market
380 thousand native trees will be planted with donations
December, 2020
Fighting deforestation in the meat production chains Frigorific engagement for traceability
commitment Specific diligence to the meat producer sector
Stimulating sustainable chains R$100 million to finance agroindustry and cooperatives that
deal with sustainable cultures. Blended finance, credit mechanism for small producers with
technical assistance
Promotion of bioeconomy Research funding and investment in projects that unlock the
socioeconomic potential of new chains
Land regularization Legislative map and recommendation of how the financial
system can support regularization to stimulate economic activity in the region
Corporate profile
A responsible bank | ESG: highlights
10
USD 500 million raised with sustainable bonds in January 2021
First level 2 capital issueof a Latin American bank to finance green and social projects
Renewable energy and energy efficiency
Sustainable management of natural resources and land use
Sustainable transport
Sustainable water and waste management
Pollution prevention and control
Green buildings
Access to essential services
Inclusive Finance
R$100 billion
Positive Impact Commitments_ Status
for sectors with positive impact by 2025
R$ 48.1 bn¹
R$15 billion
for renewable energy generation and services by 2025
R$12.6 bn¹
R$11 billion
for small companies led by women by 2024
R$9.1 bn²
External consultancy issued second-party opinion
(1) From Aug-2019 to Dec-2020; (2) Balance in Dec-20
Corporate profile
A responsible bank | ESG: Sustainable bonds issuance
11
Sustainability Finance Framework: social and environmental criteria for resources allocation
12
Corporate profile
A responsible bank | Todos pela saúde
More than R$1 billion has already been allocated to 4 different initiatives.Next, check out some of the main achievements from April 2020 to today.
to protectR$325 million
to careR$475 million
Campaigns to clarify and raise awareness among the population and to guide on the proper use of protective masks
to informR$93 million
~ 175 million people
Purchase of oxygen plants worth R$6 millionDonation to North Region
Intended for the project Conexão in communities in RJ (which includes testing, telemedicine, instructions and donation of PPE) + impact assessment.
R$3.6 million to Fiocruz
Test Centers operations begins on the 31st of July in Rio de Janeiro city and on the 7th of August in Ceará state
+ 25,000 tests per day
Distributed to the elderly, users of public transport, residents of communities, indigenous people and homeless people
15 million masks
330,000 health professionals and 172,000 patientsBenefited by the distribution of more than 50 million protective equipment
Masks, gloves, glasses, face shields and others.
90 million of Personal ProtectiveEquipment
Investment in the new vaccine manufacturing plants of Fiocruz and Instituto Butantã
Support for epidemiological research and for the treatment of covid-19
to prepare R$136 million
society to resume social activities
and caregivers in more than 600 institutions
serving all cities in Brazil105,000 oximeters
Implementation of Reception Centers in vulnerable areas
2,500 units of hospital equipment
support to 50,000 elderly people
and awareness initiatives for truck drivers44,000 tests
Strategic agenda
Strategic agenda
Strategic agenda
Following a collective thought process, we defined our strategic agenda in order to achieve consistent and quality results in the years ahead.
Client centricity
Efficiency
Digital Transformation
People
14
Customer centricity is the central piece supported by three fundamental pillars: digital transformation, people and efficiency.
Our ambition is to be one of the world's best companies in client satisfaction.
We must have the best products, in less time and higher flexibility.
Our business is providing services and that is why people is a vital issue. We invest to provide a more open and diverse environment.
Price is of paramount importance customer satisfaction. We can only have competitive prices if we are efficient.
Strategic agenda
Client Centricity
We want our clients to have the best experienceThat is why we are continually and tirelessly striving to improve our client’s experience each time they engage with the bank
56 million clients
between 18 and over 80 years of age;
from low-income to the Private segment;
present throughout Brazil, both in the capital cities and hinterland, and overseas;
companies: from very small companies, to major corporate conglomerates.
We challenge ourselves daily to serve this very heterogeneous universe.
Satisfied clients create more valuePresent Value of R$/client recurring managerial result, 5-year forecast (base 100)
10xThe difference between the present value created by a client who advocates for the Itaú Branches segment (promoter), against the value generated by one who knocks it (detractor).
Universal Bank
15
100
468
950
ItaúBranches
5x
2x
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. Our actions, including digital transformation and the efforts involving people management, are designed for our clients’ satisfaction, a key metric for the entire organization.
Lessons learned from client feedbacks to enhance their
experience.
Active contact to understand our clients’ experience.
+13 k Meetings¹
+190 k Feedbacks¹
We want to be compared to the world’s best companies in client satisfaction
Satisfied clients create higher value
Global NPS
16
+ 12 points
+ 17 points
+ 27 points
2021 vs 2018(Mar-20 vs Aug-18)
2021 vs 2018 2023 vs 2018
1: Period: Jan-21 to Mar-21
17
Strategic agenda
Client Centricity
3,8 Updated in Apr-21
1st bank to offer a leanersmartphone app
Card receivables managed by phone
APP ITAÚ(INDIVIDUALS)
APP ITAÚ EMPRESAS
4,4
APP REDE
APP ITAUCARD
APP ITAÚ EMPRESAS
4.1 4.7
4.4
4.7 4.7
4.1 4.7
4 4.8
4.3 4.4
APP PERSONNALITÉ
APP LIGHT
Continuous updates for a better experience!
Our apps are among the best rated in app stores
App StorePlay Store
Of which 15.8 MM are individual and corporate account holders
24on the mobile chanel
Of these, 93% are individual account holders
Newfeatures
+ 24 MM unique clients using our digital channels in the 1st quarter*
*Also included App Luiza, Credicard e Hipercard.
Strategic agenda
Client Centricity
Juros pós-fixados Juros prefixados
Inflação Multimercado
Carteira em 26/08/2019Nível de risco: Moderado
Retorno esperado (em % CDI): 114.5% a.a.
Nível de risco: Arrojado
Retorno esperado (em % CDI): 133.9% a.a.
DIAGNÓSTICO DA SUA CARTEIRA
Sua carteira atual Carteira personalizada
07
Investment recommendationsWhat is the best way to invest your money?
Data only Itaú has:
Expected results from 28,000 financial products and assets 1,200,000 possible portfolio combinations 10,000 scenarios for market behavior
Testing 12 billion different scenariosfor all client profiles
Optimization in the client context (current portfolio, earnings and new investments)
2.5 minutesto generate arecommendation
+0.80 to 3.00 pp additional annualportfolio profitabilitybased on the recommendation
The most advantageous combination possible for each client, according to their profile and moment in life
Customized expert evaluation
Solution
Identifiedneed:
18
cloud
artificial Intelligence andmachine learning
big data and analytics
APIs
blockchain
What are they for?Identifying possible application
opportunities
Let’s testPilots and tests in lateral situations,
which do not compromise
client’s realneeds
New technology radar:
cloud
artificial Intelligence and machine learning
big data and analytics
APIs
blockchain
+
Technology applied to solve real problems,enabling measurement of value created
Expenditure Time Expenditure Time
$ $ $ $ $ $
Strategic agenda
Digital Transformation
19
Supply perspective x Demand perspective
Traditional model: supply perspective Modern model: demand perspective
New technology trends:
We find an applicationMore investment for
updating
time data customization
Client Bank
Market research
Solutiondevelopment
Data+ research
+ experimenting
time data customization
Bank
Client
Client
Before
Now
Strategic agenda
Digital Transformation
To achieve digital transformation, we need to change the way we develop services and products
20
Strategic agenda
Digital Transformation
21
+
Sponsoredbusiness verticals:Founders:
Spark Awards
Financial Innovation Awards 2016Startup Awards
Awardssince 2015:
International Visual Identity Awards
+ velocity to extend our digital offer
IF Design Award
Cubo is the most relevant hub for technologicalentrepreneurship promotion in Latin America.
Logistics & mobility | Retail | Health | Education | Fintech
Partnerships:
13 floors+ rooftop
22sponsors
215,000+ ft²
485filliatedstartups
membersstartups
30031
differentindustries
+ outros
evolution of the platform and DevOps culture go together
modernization
Strategic agenda
Digital Transformation
22
DevOps culture
(1) Resilience metric: MTTR – mean time to repair.
50%
+ autonomy + speed+ productivity+ efficiency
of our services will be in the public cloud in 2022
deployment volumemore delivery of codes in production
deployment frequencygreater pace in the delivery of codes in production
*metrics 1Q21 vs 1Q20
+ 57%
+ 140%
speed quality
system incidents-63%
resilience¹ of our applicationseven with more deployments
+ 48%
Jan-19 Mar-21
99.6% of availability in the client’s perspective
98.9%
23
Strategic agenda
Digital Transformation
99.6% of ourclientsfind no problems when using the main transactions on the internet and mobile channels
Data base 100New work methods lead to superior results
More technology solutions
Greater number of solutions delivered:
+ 139%
1Q2020 1Q2021
Higher speed
The 1Q 2020 suffered the “new portfolio” effect, stabilizing throughout the year.
1Q2020 1Q2021 + 55%
104 MM calls/year
The right service, for the right client at the right moment
One of the world’s largest voice transcription operations
Traditional monitoring
Calls monitored by people.<0.5% followed up
Capture client’s satisfaction limited to one sample
Transcription of 100% of the calls and analysis of the texts
client attendant
“I would like to increase my
limit.”
• Map opportunities
• Capture intentions without having to ask
• Channel efficiency
• Measure the satisfaction of 100% of our clients
In the past
Speech analytics
Today
Strategic agenda
Digital Transformation
Analytics: “listening to” 285,000 calls every day
24
Audio signal
Call content
Client´s data
25
Strategic agenda
Digital Transformation
digitally acquired new clients# million
digital banksustainable expansion
3.7
1Q20 1Q21
1.4
only in April, 2021
+1.5
+ 2.5 x
digital relationships
(1) Includes: installment, payroll , personalized and renegotiation credit lines, investments, funds, time deposits, savings deposits, pension plan, foreign exchange, premium bonds, credit cards, “consórcio”, overdraft, revolving credit and protected card, residential, travel, life and credit life insurance.
of sales¹ to individuals were made through digital channels+ 70% of sales vs. mar/20
54%
of clients served by the virtual assistant do not make calls to customer service center
95%
NPS of the super app
78 points
efficiency ratio of the digital channels in 2020
15%
26
Gender equality¹
→ Succession committees including at least one woman being evaluated and another woman carrying out the evaluation.
→ Mother and pregnant well-being policyFull payment of variable remuneration
Racial Representativeness¹
→ Support black students training.
→ Support career events focused on black candidates.
→ Development actions for black employees: socio-emotional for interns and mentoring for leadership.
LGBT+
→ We are committed to the “Business and LGBT+ Rights Forum” and the “UN Standards of Conduct for Business”.
→ We are part of the OUTStand Financial Market Pride Group (created to discuss inclusion and promote the appreciation of LGBT + professionals in the sector).
of our employees are
black people
23.4%
(1) Data base: December 2020, considers only Brazilian employees (83,919). (2) In calculating the number of people with disabilities we consider only employees hired under the Brazilian Labor Code (CLT).
People with disabilities (PwD) representation¹,²
42.5% 57.5%Men Women
97 thousand Employeesin Brazil and overseas
4.6%
PwD
Officers
Managers
Back office, sales, and front office employees
Trainees
Interns
Apprentices
14%
49% 51%
41% 59%
45%
49%
By hierarchical level¹
51%
33%
By age bracket¹
40.5%
53.5%
6.0%
47.1 k people30-50 years
35.7 k peopleup to 30 years
5.2 k people> 50 years
Strategic agenda
People¹
WomenMen
67%
86%
55%
VoU cOmO sOu
Home-office
IU Conecta
New work methods
Rendering our dress code flexible, respecting our employees and our strategic agenda..
We offer more flexible options that encourage employee autonomy.
A new platform for our employees’ day-to-day. A social network with several administrative tools.
Collaborative environments, delivery communities and focal space aiming for greater synergy, communication and integration among the teams.
Greater freedom for employees to reconcile their working hours with their personal life.
Flexibility
Is Itaú Unibanco a good place to work?
83%
13%
4%
Advocates
Neutrals
Knockers
In our employees’ view
(Scores 9-10)
(Scores 7-8)
(Cores 0-6)
Strategic agenda
People¹
27(1) Data base fev/2021.
In the market view
79e-NPS
Employee’s experience –An innovative and inspiring environment
2018
28
Support provided by psychologists, lawyers, nutritionists, physiotherapists, and financial advisors to
employees and their family members.
Fique OK (Be Ok) Program
Psychological and social work care to our employees at assistance centers.
Psychosocial services
It enables employees to take care of their personal issues through a flexible work schedule that allows them to leave
earlier or after regular working hours, when required, making up for these over- or underworked hours another day
Working hours - Flexible work schedule
A scientifically validated questionnaire used to measurethree risks of mental illness
Mental Health: Self-Report Questionnaire – 20 (SRQ20)
Over 18,000 employees
assisted
7,798 persons psychologically assisted
7,693 persons assisted with social work
69,439 eligible employees25,000 evaluated employees
(1) Data-base 2020.
Mental Health
Strategic agenda
People¹
Strategic agenda
People¹
The program takes into account the priorities of the year, the results obtained and the manner in which those results are delivered, since although it is important to achieve objectives, our values must underpin all actions.
Incentive Model
A bank that recognizes, values and encourages people development.
29
Partners’ and Associates’ ProgramTo align the interests of our officers and employees with those of our shareholders, we run a program for partners and associate intended for managers and employees with a differentiated performance.
Further details on page 66
(1) Data base 2020. Obs: Fixed compensations include compensation, social benefits and charges. Variable compensation includes employees´profits sharing and share-based payment.
Evaluation (directors and EDs)
Conversation with DG/VP/DE on the priorities for the year.
Objective indicators related to priorities as support (priorities, results achieved in the previous year and market data - if applicable).
_ performance _ reporting
Behavioral assessment (360º): evaluates whether the executive's behavior is consistent with our moment and our work models.
Results. Career Moment.
Assessment with up to 3 challenges (simpler and more agile).
Evaluation can even be 100% qualitative.
_performance _ Y axis e career committee
Behavioral assessment evaluates whether the employee's behavior is consistent with our moment and our work models.
Career evaluation and development in a collegiate committee (with inputs, Y axis and reporting - if applicable).
Evaluation (team)
R$ 22 bi
Fixed compensation
Variable compensation
R$ 18 billionRecognizes a professional’s competence and seniority.
R$ 4 billionRecognizes the level of individual
performance, the financial result attained by the bank and its sustainability in the short,
medium and long terms. Each employee has targets to be achieved, which are linked to
the strategy of each area which, in turn, reflects our global strategy.
Over than 1,400,000 live and online training sessions.
Courses and training
On average, 14 hours of live and online training per employee.
Hours of training
5.8 k scholarships, postgraduate and language courses.
Scholarships
78% of the employees have a supplementary plan.
Supplementary pension schemes
Investment in personnel
Total compensation
agile management
30
Strategic agenda
Efficiency
+ 2xinvestments in the development of solutions
continuousinvestment in technology
- 28%infrastructurecosts
2021e vs 2018
digital transformation
2Xmore productivitylower costs for developingnew features
2020 vs 2018
- 43% lead timefaster delivery of new features
47%eligible employees already work in an integrated work model squads with members from business, technology, operations, UX, among other areas.
squads
100% + than 21 thousandpeople
in 2022
31
Strategic agenda
Efficiency
efficiency as a strategic pillar
culturestrengthening
continuous questioning of activities and processes in search of efficiency gains
constant flow of initiativesbeing idealized, planned and implemented
same work methodologydetailed planning and indicators for the individual monitoring of each initiative
transversal program across the bankdevelopment and implementation of initiatives that seek structural efficiency gains
16 work frontstwo meetings per month with bank´s senior leadership
1,200 initiativesplannedreview, simplify and optimize processes, automate activities, use of data andanalytics
+ than 400under implementation
goalsequentially reduce the bank’s core cost over the next 3 years
Our business
Our business
Who are our clients?
Through our Retail and Wholesale Banking segments we offer a wide range ofproducts and services tailored to each client profile.
Personnalité>R$15 thousand or >R$250 thousand in total investments
Uniclass>R$4 thousand up to R$15 thousand
Retailup to R$4 thousand
Private Bank>R$5 million in total investment
;;;;;;;
; Middle > R$30 million up to R$500 million
Large> R$500 million up to R$4 billion
Ultra > R$4 billion
Very Small and Small Companiesup to R$30 million
Client profileby segment in Brazil
RETAIL
WHOLESALE
Individuals Companies
33* The values mentioned above for individuals refer to monthly income and the values for companies refer to annual revenue.
Our business
Retail Banking
Our distribution network¹3 , 8 7 7 B R A N C H E S A N D C S B s ² I N B R A Z I L
3 %North
8 %Northeast
7 %Midwest
67 %Southeast
15 %South
Main1Q21 Results
Serving a client base of over
56 million clients
MORE THAN 44,000ATMsin Brazil
Efficiency ratio
Returnonallocatedcapital
RecurringManagerialResult
R$2.2 billion
34.5 %
19.4 %
52.3 %
(1) As of March 2021. Does not include branches and CSBs in Latin America and Itaú BBA. (2) Client Service Branches.34
Retail Banking NPS
+11 points Mar-21 vs. Aug-18
DigitalBranches(Brazil)
Brick and Mortar Branches and CSBs²
Branches and CSBs
196
4,526
4,500
Mar-20 Mar-21
4,334195
4,139
195
4,305
Consolidatedprofit sharing
166(Mar-21 vs Mar-20)
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
195 digital branchesfor 2.3 millionclients
More than335,000 companies2
servedby accountmanager withmobility, usingsmartphone, tablet and videoconference
Use of digital channels¹Total current account holders (in millionpeople)
% of transactionsthrough digital channels Investments
Credit
Payments
52%
33%
85%
46%
24%
84%
1Q21 1Q20
ExtendedhoursDifferentiatedservice
15 digital branches for124 thousandvery small and small companies 3
+ 3 digital branches toassist 48 thousand Condominiums and their Administrators.
Digital branchesHighlights
35
Transfers 97% 96%
Mar-19 Mar-20 Mar-21
11.512.9 14.7
1.2 1.2
Individuals
Companies1.2
On-line account opening
Our business
Retail Banking
(1) Considers account holders (individuals and companies) and digital credit card holders. (2) Includes Emp3 and Emp2; (3) Includes only Emp4.
64% accounts opened by the app
1Q21 vs. 1Q20
Our business
Wholesale Banking
Our sales channels reach institutional clients in 18 countries.
Mainproducts and services
Main1Q21 Results
Only in Brazil, we serve approximately
23,000 corporate andinstitutional groups
Efficiencyratio
Return onallocatedcapital
Consolidatedprofit sharing
R$2.5 billion
38.3%
17.3 %
48.0 %
ParaguayArgentina
PeruColombiaUruguayPanamaMexicoUSABahamasCayman Chile
UKPortugalSpainGermanyFranceSwitzerlandCorporate
Institutional Clients
Private Banking
CreditsolutionsNationalandforeigncurrency
Service solutionsR$2.3 bnfixed incomedistributionR$6.2 bnequitiestransactionsin LatinAmericaR$130.6 bntotal volume ofMerger and AcquisitionR$5.8 bnfinancing of infrastructure projects in different sectorsSolutionsin WMS¹R$1,436 bn under local custodyR$145 bn under internationalcustodyR$753 bn² under asset management
$
36
(1) Data base March-21(2) Source: ANBIMA (Brazilian Financial and Capital Markets Association) – March 2021. Considers Itaú Unibanco and Intrag.
WholesaleBanking NPS
+12 points Mar-21 vs. Ago-18
RecurringManagerialResult
2021 Main initiatives for Southern Cone• Organic growth, focused on new businesses and new commercial partnerships
• Digital Transformation and Client Centricity
• Search for greater efficiency through standardization of initiatives and synergy between countries.
• Analysis of new business opportunities with technology as the main pillar.
38% 39% 41% 41% 41% 43% 45% 45% 46%
62% 61% 59% 59% 59% 57% 55% 55% 54%
44.9 44.6 44.7 46.0 48.6 49.3 50.3 50.8 56.1
Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21
Rede de Agências Itaú Consignado S.A.
31.7 32.6 33.5 35.5 38.5 39.0 39.7 40.7 45.4
8.8 7.6 6.4 5.5 4.8 4.2 3.7 3.53.8
4.3 4.4 4.8 4.9 5.4 6.2 6.8 6.66.944.9 44.6 44.7 46.0 48.6 49.3 50.3 50.8
56.1
Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21
INSS Setor Público Setor Privado
Personal loans
Money in the accountThe money is immediatelycredited, including on theweekends.
PurposeBorrowers can use the loan proceeds for all kinds of purposes.
Payroll loans
Reduced ratesInterest rates are lower than for other types of loans.
Easier repaymentFixed installments are deducteddirectly from the payroll of theborrower.
Payment conditionsFirst installment in up to 90 days.
Origination channels of payroll loans
Other personal loans
Payroll loans
(In R$ billion)
Evolution of personal loans portfolio
(In R$ billion)Composition of the payroll loans portfolio
(In %)
The payroll loans portfolio accounts for 62% of total operations in personal loans.
The portfolio of other personal loans accounts for 38% of total operations in personal loans.
62%
38%
$
$
Our business
Personal Loans and Payroll Loans$
Public SectorPublic Social Security
System (INSS)Private Sector Itaú Consignado S.A.Branches
37
25.8 25.0 26.4 27.9 30.1 33.4 36.2 35.8 34.8
44.9 44.6 44.7 46.0 48.6 49.3 50.3 50.8 56.1
70.6 69.6 71.1 73.8 78.7 82.8 86.5 86.5 90.8
Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21
79.1% 81.1% 83.7% 86.0% 88.3% 90.1% 91.2% 91.5% 93.5%
20.9% 18.9% 16.3% 14.0% 11.7% 9.9% 8.8% 8.5% 6.5%
Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21
Pessoas Físicas Pessoas Jurídicas
Our business
Mortgage Loans$
Mortgage loans portfolio Products and sales channels
Environmental and social assessment on mortgage loans
Client focused
Quick and efficient process withcredit analysis in up to one hour for operations of up to R$1 million.
possibility of digitally contracting.
specialized consultants providingsupport throughout the process.
+ 29.1 %vs Mar-20
+ 37.5 %vs Mar-19
(In R$ billion) (In %)
CompaniesIndividuals
38
Building site visit gatheringof information
Enterprise and region data
Indication of contamination search (LIC)
• Enterprise Environmental and Social Form;
• Building site photos;
• Document analysis;
• Consultation of the Contaminated Areas Register; and
• Consultation of Google Maps.
No Environmental
License?
Contaminationindicatives?
Environmental and Social Department + Environmental and Social Legal Department +
Compliance
• Technical analysis of evidence;
• Analysis of site contamination documentation; and
• Preparation of contractual clauses and conditions for release of funds.
Risksmitigated
Operation approved
Technical analysis for construction financing
48.5 47.2 47.8 48.0 48.5 49.8 51.7 56.0 66.8
Real EstateBrokers
29%
13%Partnerships
32%Branches:
high income clients
Regular banches and
Uniclass
25%
0,0%
Dev
elop
ers
Our business
Mortgage Loans¹
Loan to Value
Average Ticket and Average Origination Term²,³
$
(In %)
- 5.4 p.pvs Mar-20
+ 2.8 p.p.vs Mar-20
Vintage (quarterly average) Mortgage Loan Portfolio
Average loan maturity (in months)Value of the Property (R$k) Financing Average Ticket (R$k)
(1) Includes only Individuals. (2) Average loan maturity for new contracts; (3) Value determined using monthly credit origination average ticket and quarterly average LTV. Production source: ABECIP. 39
Vintage (quarterly average)
Mortgage Loan Portfolio
- 0.5 %vs Mar-20
+ 2.4 %vs Mar-20
Average loan maturity
Average value of the Property
Financing Average Ticket
+ 5.2 %vs Mar-20
55.0% 54.8% 57.4% 57.9% 58.6% 60.6% 63.8% 64.2%58.4%
41.6% 40.8% 40.0% 38.4% 38.8% 38.8% 39.1% 36.3% 41.9%
Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21
316 299 290 315 325 315 317 328 334
307 315 321 321 320 322 327 321 325
576 541 495551 553 523 493 516 505
Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21
3629
25
January February March
2.0 2.1 2.5 2.8 2.9 3.2 2.9 4.6 4.2 0.4 0.6 0.9 1.3 1.5
2.1 1.8
2.3 2.4 2.3 2.7 3.3
4.1 4.3 5.4
4.7
6.9 6.6
1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21
PF PJ
14.8 13.9 14.3 15.2 16,6 18.0 19.4 21.5 24.42.5 2.3 2.8 3.6 5.1 7.3 9.9 11.0
13.217.3 16.2 17.1 18.8 21.6 25.3
29.3 32.537.5
Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21
PF PJ
Our business
Vehicles$
40
Loan portfolio by client profile(In R$ billion)
Credit origination by client profile¹(In R$ billion)
CompaniesIndividuals
CompaniesIndividuals
(1) Includes Finame in Companies
90-day NPL Ratio ( Individuals – Vehicles)
40
(Base 100)
100
54 49 43 35 38 31 38
2012 2015 2016 2017 2018 2019 2020 1Q21
+ 39.4 %
+ 27.9 % 17.7 thousand sales points;
Sale of light and heavy vehicles:
• 81% of contracts are made in stores and dealers;
• 90% to individuals;
30% made in Digital Channels;
81% of financing are made up to 48 months.
Contracting
Average Ticket (individual)R$41.1 thousand
Contracts - thousand
Loan-to-value (individual)59%
Credline 2.0 New proposal origination platform, with
simple and renewed digital experience.
Floor PlanCredit lines for partner dealers.
iCarrosVehicle Marketplace with technological solutions, that brings buyers and sellers
together.
Eletronic signatureDigital and simple experience for the customer and the dealer.
Evolution of financing proposals on the iCarros platform:(Base 100)
$
iCarros Portal
Main commercial partnerships
41
22.1M access/month 88% mobile
Our business
Vehicles$
Main products and services
Facial RecognitionSimple and safe contracting process.
ConectCarPayment of tolls and parking without queuing.
InsurancesProtection to the car and tranquility in financing.
Lead ManagerCar dealer platform which allows lead
management in a single place.
Knowledge GarageDistance learning platform aimed at
training professionals in the sector
8
6
9
7
11
12
5
2
3
4
Digital ContractingIntegrated to iCarros and other digital environments, like dealers’ websites andothers e-commerces.
Digital AssistantOnline credit analysis and approval platform, without additional cost for the dealer.
1E-commerce solutionIntegrated payment and financial services
solution for car e-commerce.
10
We are leaders in the creditcard segment in Brazil, totaling around 34.2 million credit cards and 30.3 million debit cards (both in numberof accounts).
Our credit card options serve current account holders and non-current account holders
42
Our business
Credit Card
Main brands
Commercial partnershipsMain partnerships with retailers and traders.
Digital portfoliosIncreased comfort and convenience to our clients.
$
$
Personalcredit
Payment of bills ininstallments
Debt renegotiation
Consumer credit
Itaucard App Benefits to our clients
Digital billing statements: Paperless. More environmentally friendly.
Timeline: To follow up consumption.
Loyalty program: Points and reward program.
Virtual card: Added security for online purchases.Virtual cards generated (1Q20 = Base 100)
1001Q20
1Q21 229
2.3x
97,403 112,980 100,102
32,11442,384
35,513129,517
155,364135,615
1Q20 4Q20 1Q21
85.1%
74.5%
8.2%
8.6%
6.6%
16.9%Transactor
Installment with Interest
Revolving Credit + Overdue Loans
16.2%¹ of total sales are carriedout using digital channels
32.4%Market ShareWe are leaders in theBrazilian credit cardMarketData base: Dec-20
48.9%² in 4Q20 + 6.9 pp vs 4Q19of household consumptionare card expenses
SFN³ whithout
Itaú
+4 points CustomersatisfactionGlobal NPS - Business
Composition of credit balance
1Q21
R$135.6 billions-12.7% (vs. 4Q20)+ 3.2% (vs. 1Q20)
Credit- 11.4% (vs. 4Q20)+ 2.8% (vs. 1Q20)
Debit- 16.2% (vs. 4Q20)+ 10.6% (vs. 1Q20)
Transaction Volume (R$ million)
43
Our business
Credit Card
(1) Considers only credit cards issued to current account holders of Branches, Uniclass e Personnalité. (2) Considers credit, debit cards and pre-paid. (3) Brazilian Financial System.Note: Data base refers to Dec-20 except household comsuptiom.
Mar-21 vs. Aug-18
Debit
Credit
Total
76,575 92,447 81,546
45,282
62,02950,117
121,858
154,475131,663
1Q20 4Q20 1Q21
Our business
Acquiring services
Acquiring service revenues(R$ million)
1Q21
R$131.7 billions- 14.8% (vs. 4Q20)+ 8.0% (vs. 1Q20)
credit- 11.8% (vs. 4Q20)+ 6.5% (vs. 1Q20)
debit- 19.2% (vs. 4Q20)+ 10.7% (vs. 1Q20)
Transaction Volume (R$ million)Our brand
accepted by Rede machines
25 card brandsMore than
+36 pointsCustomersatisfactionGlobal NPS - Business
822 thousand
Clients
1.3 mnPOS number
44
1,106964 932 908
737528 642 728 621
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Note: Data base refers to Mar-21.
Mar-21 vs. Aug-18
Debit
Credit
Total
technology stack: state-of-the-art
iti Itaú 100% digital bankfree and differentiated account
45
Our business
iti
account opening in up to 4 minutes
payment account
digital cash withdrawal on ATMs
PIX (instant transfer)
payments
cell phone credit recharge
debit card
credit card
personal credit (beta)
6 MMclients inApril 2021
70%of clients are between 18 and 35 years old
15 MMclients until the end of 2021
target
70%of clients in the active base with registered PIX key
+ than+ than
3 MMnew clientsin 2021
84%of clients without an active account with Itaú
+ than
Revenue from insurance operations/GDP (%)
Our business
Insurance
We offer a wide range of insurance products related to life, personal accidents, vehicles and property, credit and travel. Ourinsurance core activities, which include our 30% equity stake in Porto Seguro, consist of mass-market insurance products related tolife and property, and credit.
Ranking¹,²
Potential growth in the sector8
(1) Source SUSEP, date: Feb-21, includes our 30% equity stake in Porto Seguro. Doesn´t consider Health insurance. VGBL is considered in Pension Plans;; (2) Insurance = Earned Premiums; Pension Plans = Provision for Benefits to be Granted and Premium Bonds =net revenues (3) Recurring insurance activities and other activities; (4) Recurring insurance activities include: Personal Insurance (Life, Personal Accidents, Unemployment, Funeral Allowance, Serious Diseases, Random Events, Credit Life), Housing, Homeowners, Multiple Peril and Travel; (5) Considers only Porto Seguro numbers; (6) Other activities include: Extended Warranty, Large Risks, DPVAT and IRB; (7) The sale of this portfolio was concluded on October 31, 2014. (8) Sector growth potential figures for Chile and USA refer to 2019.
46
2.9 3.0 3.2 3.3 3.43.7 3.8 3.8 3.6 3.8 3.7
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Chile: 4.5USA: 11.5
Combined Ratio – Recurring Activities Insurance
55.2% 52.4% 59.4% 63.9% 59.9%
49.1% 47.4%53.2% 58.1% 54.4%
1Q20 2Q20 3Q20 4Q20 1Q21Combined Ratio Extended Combined Ratio
jan-feb/21 jan-feb/20 Model
Total Insurance 3 4th 4th
Recurring Insurance Activities 4 4th 4th
Life & Personal Accidents 2nd 2nd Bancassurance
Credit Insurance 8th 6th Bancassurance
Pension Plan 3rd 3rd Bancassurance
Premium Bonds 5th 4th Bancassurance
Porto Seguro 2nd 2nd
Vehicles 5 Leader: Porto Seguro Leader: Porto Seguro Broker
Home Insurance 5 Leader: Porto Seguro Leader: Porto Seguro Broker
Other Insurance Activities 6 5th 5th
Large Risks 7
Health Insurance
we do not offer this product.
we do not offer this product.
Benefits Products OfferedMulti-channel BrokerSales Force
Our business
Insurance | Open Platform
Multi-channel distributionFocused on commissions and fees
Specialized sales force
Excellence in post-sales
Easy access and convenience to clients
Insurance consultants
Insurance Shop
Manager
Cashier
Internet Banking/Mobile
ATMIn
tern
alEx
tern
al
Auto and Fleet Insurance
Life (Individual and Group)
Health (Group)
Whole Life
Credit Life
Dental (Individuals and Group)
Card Protection
Premium Bonds
Mortgage
Travel
Cellphone Insurance
Homeowners
Corporate lines
47
Guarantee Insurance
Auto, Moto, Home and Pet Assistance
Crop Insurance
+
Multi-channelBroker Platform
Retention Post-Sales Analytics
SatisfactionMarketing Client service
Relationship with clients
Insu
ranc
est
ore
Prepaid health card
Call Center
Retail Partnerships
Vehicle Dealers
Digital Partnerships
Our business
Pension plan
Open platform
Funds carefully selectedalways keeping the client in mind
Technical Provisions
Concept 1,3,6,9: How much does the client have tosave to enjoy a peaceful retirement?
48
Retirement
Future expenses
Childreneducation
Tax planning
Financial returnEnable easychanging ofplanSuccessionplanning
Reasons to invest:
1
2
3
4
5
6
7
Years of salary accumulated Age1 353 456 559 65
R$ Billion
6.6 6.8 6.8 6.9 7.0 7.2 7.7 8.4 9.041.7 42.8 43.5 44.9 43.8 45.0 45.0 46.7 46.3
151.6 154.8 158.1 161.4 156.5 159.2 158.6 161.0 157.8
199.9 204.4 208.4 213.2 207.3 211.3 211.4 216.2 213.0
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21+ 27,9% (vs. 1Q20) + 0,8% (vs. 1Q20)+ 5,6% (vs. 1Q20) VGBLPGBLTraditional
Main products
Zero-fee products:
Our business
Services | Investments
SavingsPension PlanFixed incomeFunds Equities Treasury Direct
Variable Income Pension Plan Fixed Income Real Estate Fund Treasury Direct
Zero custody feefor shares of Itaú Corretora and thestock exchange
Zero initial andfinal contributionfees
Zero custody fee for third party FI via Itaú Corretora
Zero brokerage andcustody fee on digital channels
Zero custodyfee - Itaú Corretora
Real Estate Funds COE
Itaú Asset ManagementThe largest private asset manager in Brazil:
R$753 billion¹assets under management
+ 60 yearsin investment management
12 timesbest fund manager by “Guia de Fundos FGV”
We incorporate ESG issues intoour investment process.
Responsibleinvestments
49
Investment Open PlatformThird-party products offered
Funds Fixed income2
Fixed IncomeMultimarketEquityPension Plan
CDBLCALCI
(1) Source: ANBIMA (Brazilian Financial and Capital Markets Association) – March - 2021. Considers Itaú Unibanco and Intrag. (2) CDB - Time Desposits. LCA - Rural Credit Bills. LCI - Real Estate Credit Bills
investmentaggregator
accountopening
transactional journey for fixed income
Integratedbroker
short term long term
Our business
Services | Investments
50
asset managementthe most complete product shelf on the market
Mar-21 326 1,673 R$2 trillion
Mar-21 vs Dec-20 , in R$ billioninvestments
2.5%1.6%7.1%
totalown productsopen platform
focus on growth in absolute return products through multi-desk total of 15 desks and R$61 billion of AuM
expansion of product distribution via 16 banks and platforms
Itaú portfolio with accelerated funding R$10.6 billion in the quarter andR$30.8 billion in AuM in March-21
Fund of Funds (FoF)Itaú Asset Management
+ than 1,300funds undermanagement
149managers
in 1Q21, we launched:- 9 local products- 4 international products
~ R$270 Bn AuMlargest FoF in Brazil
CAGR
26% p.a.2017 to 2020
transformation in the investment journey
newinvestments app
Personal assistance or digital service - digital experience
available to Itaú clients and non-clients
differential: fund profitability projection for the next 12 months
the best digital investment experience
transparency: the client knows how the specialist's remuneration works
offices across the country (12 in operation) we are hiring +1.2 thousand specialists
complete serviceall products in one place
sophistication and expertise in recommending simulations, projections and research
what is to come:
a new advisory model
Investment BankingLeadership position and client recognition
51
Our business
Services | Wholesale Banking
Fixed incomeWe took part in local operations involving debentures, promissory notes and securitization, which totaling R$2,313 million in 2021, and were ranked second in the ANBIMA (Brazilian Financial and Capital Markets Association) ranking.
EquitiesWe entered into 17 transactions (including Block Trade) in South America in the first quarter of 2021, which totaled R$6,160 million, and were ranked second in the Dealogicranking.
Mergers and AcquisitionsIn 2021, we provided financial advisory services on 9 transactions in Brazil, with a total value of R$130,600 million and we were once again ranked first in the Dealogic ranking.
Project FinanceIn 1Q21, we served as advisor and/or creditor of approximately R$5.8 billion in financing to 15 different infrastructure projects in different sectors.
Ranking 1Q21 2020 2019
M&A¹ 1st 1st 1st
Local ECM¹ 2nd 1st 1st
Local DCM² 2nd 1st 1st
International DCM¹ 1st 2nd 3rd
Derivatives Total3 1st 1st 1st
(1) Source Dealogic; (2) Source ANBIMA – Brazilian Financial and Capital Markets Association. Information from Mar-21; (3) Source: Cetip. Information from Mar-21.
MiddleAnnual 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
diversified services, such as Cash Management, Foreign Exchange, Investment Banking and Funding."
Corporate BankingAnnual revenues over R$500 mn
“We offer a broad portfolio of banking products and services, ranging from“ cash management ”to structured
transactions and deals in the Capital Market. We serve around 4,000 large business groups (includes
Agrobusiness) in addition to serving more than 194 financial institutions.”
Markets, Products & PlanningTreasury operations for the conglomerate.
LatAmPresence in all banking segments in Latin America.
AgrobusinessLarge and Regional (medium size + producers)
“We serve more than 2,150 customers in the integrated agribusiness chain, from plants to rural producers, with an emphasis on Targeted products and Foreign Currency, in a
portfolio of more than R$30 billion.”
52
Our business
Services | Agribusiness
creation of the agribusiness segmentsets the stage for a strong growth agenda in the coming years
relevant expansion in agribusinessAgribusiness GDP has doubled in 10 years,representing 27% of Brazil's GDP in 2020 0.8
2.0+ 2x
2010 2020
In R$ trillion
2019 2021 target
2.400
# clients 463 2,400
2019 2021 target
2.400# employees 30034
credit portfolio balancein R$ billion
38.6
Mar-20
46.5
Mar-21
20.5%
• socio-environmental analysis in agribusiness operations
• expansion of the commercial team and geographic coverage
• evolution of the service model> specialization
• development of new products and structures
• scalability of operations by rural producers
• we will partner with meat producers to implement supplier traceability and support agroforestry chain
main developments and challenges
NPS totalagro71 rural
producers84
53
Outstanding operation in 2020Issues of ESG bonds coordinated by Itaú Unibanco
Local market
(1) Data base: Jan-21.
Our business
Services | Coordinating ESG Issuances for our clients¹
Offshore market
In 1Q2021, Itaú BBA coordinated fiveESG transactions of Brazilian companies in the offshore market
Local market
In 1Q2021, Itaú BBA coordinated six ESG transactions of Brazilian companies in the domestic capital market
Sustainability-linked bonds- USD 500mm for Klabin- USD 500mm for Movida
Sustainability bonds (green + social)USD 500mm for Itaú UnibancoUSD 750mm for Amaggi
USD 500mm in Green Bonds to Banco BTG
Sustainability-linked debenturesBRL 450 mm for Votorantim CimentosBRL 150 mm to Allonda
Green debentures for E1 (BRL 150mm) and CTEEP (BRL 673mm)Green CRI for Grupo Origo Energia (BRL 82mm)Green CRA for M Dias Branco (BRL 811mm)
USD 2.75 billion of ESG bonds coordinated by Itaú BBA in the offshore market
More than BRL 2 billion of ESG transactions coordinated by Itaú BBA in the Brazilian domestic capital market
Our business
Services | Wholesale Banking
Investment product management for the conglomerate and a full range of investment options to Retail Banking.
Evolution of Assets Under Administration¹
54
R$ billion
(1) Includes only Brazil (ex-Latam).
WMSLarge range of customized wealth management and
investments solutions
Private Banking
Securities Services
A full global wealth management platform with leadership position in Brazil.We have been recognized by the world’s top international Private Banking market publications:
Private Banker InternationalOutstanding Global Private Bank - Latin America, 2020
The BankerBest Private Bank in Brazil, 2020
849 922 1,002 1,068 1,135
1,290 1,276 1,343 1,407
Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21
Local Custody: we ended March with R$1,436.1 billion under custody (+4.3% from the volume under custody in the same period of 2020).
International Custody: we ended March with R$144.8 billion under custody (+54.8% from the volume under custody in the same period of 2020).
Corporate Solutions: we are leaders in the bookkeeping of shares, providing services to 208 companies listed on B3, representing 57.8% of the total market, and in the bookkeeping of debentures, we work as a bookkeeper for 340 (27.1%) issuances.
Our business
Services | Wholesale Banking
55
Timeline of IAM responsible investment practices
2008
2009
2010
2013
2014
2015
2016
2017
Signatory toProprietary model to
incorporate ESG issuesinto the analysis of
funding fixed income
ESG issuesincorporated intothe Proxy Voting
policy
White paper on theincorporation of ESG
issues into the analysisof funding
Internal study aboutESG issues and
sovereign bonds
White paper on theincorporation of ESG
into the analysis ofcorporate securities
Launching of AMEC Stewardship Code /
Latin America
Carbon footprintcalculator for funds
2018
White paper onresponsible investment
through the SDGs lenses
2019Incorporation of ESG issues
into the analysis of more than 95% of assets under
management (AuM) of IAM
Asset Management
White paper on responsible investment in the days of COVID-19 and launch of the funds:
-Itaú Momento ESG Actions;-Esg International Portfolio;
-Itaú Index ESG Water;-Itaú Index ESG Clean Energy.
2020
KineaIt is an independent platform of management of differentiated investments. With R$56,5 billion in assets as of March 2021, it operates in the segments of Multi-Markets, Real Estate, Pension Plan and Private Equity, Stock and Infrastructure.
Asset ManagementIn March 2021, we reached R$753,5¹ billion in assets under management.Over 60 years in investment management and 12 times best fund manager by “Guia de Fundos FGV”.
Itaú Asset Management (IAM) integrates ESG issues in the investment process:
(1) Source: ANBIMA (Brazilian Financial and Capital Markets Association) – March 2021. Considers Itaú Unibanco and Intrag.
56
Integrating ESG issues into business valuation
Itaú Asset Management (IAM)As asset managers, we are responsible for understanding the risks and opportunities involved in the business.
ESG product offering
“Momento ESG” FundEquity with active management.
ETF ISUS11Equity that replicates the ISE-B3 portfolio.
ETF GOVE11Equity that replicates the “Índice de Governança Corporativa Trade - B3” portfolio
Lauched Dec-20ESG product offering
Itaú Index ESG ÁguaVariable income fund - water business related.
Itaú Index ESG Energia LimpaVariable income fund - renewable sources energy related.
Carteira ESG InternacionalItaú Asset's international assets -ESG investment trends
99.84% of Assets under Management covered by ESG criteria
Board independence
and quality
Corporate GovernanceGovernance
dimensions
Socialdimensions
Environmentaldimensions
Company
Relationship withemployees
Relationship with
communities
Relationship with clients
Relationship withsuppliers
Waste, effluentsemissions
Climatechange
Water, energyand materials
Biodiversity and land use
Our business
Services | ESG at Itaú Asset Management
We announced our intention to acquire control of XP Inc. in stages
We communicated our commitment to BACEN to no longer acquire control
We announced the intention to spin off our part of the business in a company (“XPart”)
We sold 4.5% of the capital of XP Inc.
After the favorable opinion of the regulatory authority, there is up to 120 days³ for listing shares on B3 and for the distribution of new shares of XPart. The cut-off date (“ex”) and procedures will be given in due course.
Until the cut-off date (close to the listing date)the shares issued by Itaú Unibanco will continue to be traded with the entitlement to receive shares issued by XPart.
Once the new company is listed,the shareholders will receive an equity holding in XPart, in the same amount, type and proportion as the shares they hold in Itaú Unibanco.
The shareholders will continue to retain their current equity holdingin Itaú Unibanco and will also become shareholders of XPart.
The percentage of XP's capital that will held by XPartrepresented 40.52% at 12.31.2020, due to the capitalization of XP in December.
(1) After approval by BACEN; (2) Equivalent to 41.05% of the capital of XP Inc on the base date of September 30, 2020; (3) According to the Brazilian Corporation Law
Extraordinary General Meeting (EGM)
May 2017
Aug 2018
Nov 2020
Dec 2020
Jan 2021
We will acquire¹ 11.38% of the capital of XP Inc.
In 2022
On January 31st, the EGM approved the spin off of Itaú Unibanco`s participation² in the capital of XP Inc. into “XPart”, company to be constituted after the controllers obtain a favorable opinion from the regulatory authority.
Our business
XP Inc shareholding
57
Corporate 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.
59
20081996APIMECsmeetings andRoadshows
2000Corporate Code of EthicsIndependent Fiscal Council
1999APIMECs meetings
Inclusion in the DowJones Sustainability Index
2005Trading Committee and Policy
Inclusion in the CorporateSustainability Index
1997Level III ADR
2002DisclosureCommitteeand Policy
2001Stock Option Plan
Level I of Corporate Governance of B3
2003Election of Independent Members
2007Certification under section404 of Sarbanes-Oxley Act
Merger
Highlights
2018-XP Investimentos (XP)CADE’s approval of the acquisition of a minority interest, reaffirming the independence of management – ItaúUnibanco acquired 49.9% of the capital, with 30.1% of the common shares.- 21 years on the NYSE.- 50% stock splitwith a 50% increase in dividends paid monthly.- Encouraging diversity and new Vou Como Sou dress code.- General Data Protection Law as a Priority for Itaú Unibanco.- 10 years of merger between Itau and Unibanco.- The BylawsInclusion in the bylaws of the obligation that the majority of the members of the Board of Directors must be non-executive members and at least one third must be independent members.
2019- The creation of the Social Responsibility CommitteeApproved on January 31, 2019.
2020- Disclosure of the Management Members’ Compensation Policy.
2017Policy for Nomination ofExecutives: minimum 30% ofindependent members in C.A.
Inclusion in the BloombergEquality Index
2008CorporateGovernancePolicy
2007Voluntary adherenceto Abrasca’s Manual forMaterial InformationControl and Disclosure
2006Certification under section404 of Sarbanes-Oxley Act
Internal Regulation of theBoard of Directors
2004Audit Committee
Creation of Dividendreinvestment program
2001Level I of CorporateGovernance of B3
Election of IndependentBoard Members
1999Inclusion in the DowJones Sustainability Index
1995Stock Option Plan
2013
Related Party Committee
2011Voluntary adherence to the Abrasca’sCode of Self-regulation and Bestpractices of Publicly-Held Companies
Remuneration Committee
2009Strategy Committee
Risk and CapitalManagement Committee
Nomination and CorporateGovernance Committee
Personnel Committee
2012Digital Assembly
2010Partners and AssociatesProgram
2015Inclusion in the SustainabilityVigeo EIRIS Index – Emerging 70
New Management Structure ofItaú Unibanco Holding
2005Nominating and Compensation Committee
Inclusion in the Corporate Sustainability Index
2002Disclosure and Trading Committee
Level II ADR Program
Tag Along
Highly diversifiedshareholder base
Corporate governance
Our governance structure
Family control, with long-term vision
ON51.71%
PN0%
ON39.21%
PN0.004%
ON7.76%
PN99.61%
Free Float
ON36.73%
PN81.87%
Free Float*
74%
Traded on B3
26% Traded on NYSE
50% Brazilians50% Foreigners
Itaú Unibanco participações
(IUPAR)ITAÚSA
Itaú Unibanco Holding S.A.
Non-voting shares (PN)4.8 billion of shares
66.5%
33.47%
33.64%
ON63.27%
PN18.13%
Moreira Sallesfamily
Cia. E. Johnston de Participações66.36%
26.22% 53.04%19.88%
100%
Egydio de Souza
Aranhafamily
ON50.00%
PN0%
Note: ON = Common Shares; PN = Non-voting Shares; (*) Excluding shares held by majority owners and treasury shares.60
Corporate governance
Pillars of our Governance
Family control ensuring long-term strategic vision
Responsible for value creation by means of strategicdefinition
Focus on decision-making, resolving upon high impact topicsfor the company’s destiny
• Alignment among shareholders• Defines group’s vision, mission and values• Assesses significant mergers and acquisitions• Nominates executives to the Board of Directors• Evaluation of performance and admission of family members• Discusses and approves long-term strategies
IUPAR
Itaú Unibanco Holding S.A.
Shareholders’ General Meeting
Board of Directors
Fiscal Council
Executive Committee
Committees
Disclosure and Trading Committee
Professional management with the implementation ofstrategy and day-to-day management
decisions made ona collective basis
management alignedwith meritocracy-basedculture
Focus on performance and value creation
61
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.
Corporate governance
Board of Directors
• Defining and monitoring the strategy;• Assessing mergers and acquisitions; • Monitoring the Executive Committee performance; • Appointing officers (meritocracy);• Approving the budget;• Defining and supervising risk appetite and policies for capital use;• Defining and monitoring incentive andcompensation models and establishing goals; • Supervising the technology strategy; • Defining meritocracy policies;• Supervising the business operation.
The evaluation process of the Board of Directors iscarried out by a third-party. Each director evaluatesthemselves, the other directors and of the organ as a collegiate.
1
2
4
7
Risk and Capital Management
Social Responsibility Committee
3
5
6
8 Compensation Committee
Strategy Committee
Board of DirectorsCommittees
Main duties
Audit Committee
Personnel Committee
Related Parties Committee
Nomination and Corporate Governance Committee
62
2 Co-chairmenPedro Moreira SallesRoberto Egydio Setubal
9 Members, being 5 Independent members
5 8
2 4 7 86
6
1 Vice-presidentRicardo Villela Marino 6
Alfredo Egydio SetubalAna Lúcia de Mattos Barretto VillelaCandido Botelho Bracher¹João Moreira Salles
2 4 72 4 7
Fábio Colleti BarbosaMaria Helena dos Santos Fernandes de Santana¹Marco Ambrogio Crespi Bonomi Pedro Luiz Bodin de MoraesFrederico Trajano Inácio Rodrigues
2 3 4 7
4 5
3 5 8
6
6
(1) Awaiting approval by the Central Bank of Brazil
Our committees report directly to the Board of Directors.
Corporate governance
Board of Directors Committees
since 2009
Risk and Capital Management100% of the members are non-executive12 meetings in the year
Supports the Board of Directors; establishes the riskappetite; evaluates the cost of capital and the minimum return expected; allocatescapital; oversees risk management and control; improves risk culture andcomplies with regulatoryrequirements
since 2004
Audit100% of the members are independent60 meetings in the year
Ensures the integrity of thefinancial statements; complies with legal andregulatory requirements; and ensures the efficiency ofinternal controls and riskmanagement
since 2011
Compensation100% of the members are non-executive5 meetings in the year
Promotes discussions onincentive and compensationmodels; developscompensation policies for management members and employees; and establishes goals
since 2009
Nomination andCorporate Governance100% of the members are non-executive3 meetings in the year
since 2009
Personnel100% of the members are non-executive4 meetings in the year
Establishes policies for attracting and retaining talented professionals; proposes guidelines for recruiting and training employees; and presents long-term incentive programs and monitors the culture of meritocracy
since 2009
Strategy100% of the members are non-executive5 meetings in the year
Proposes budgetary guidelines; provides inputs for decision-making processes; recommends strategic guidelines and opportunities for investments internationalization and new business areas creation
since 2013
Related Parties100% of the members are independent12 meetings in the year
Manages transactions between related parties; and ensures equality and transparency for these transactions
since 2018
LATAM StrategyCouncil
Assesses the outlooks for the world economy; adoptsinternationally accepted trends, codes and standards; andprovides guidelines for the Board of Directors to analyze opportunities
since 2017
Digital AdvisoryBoardProposes technologicaldevelopments; assessesclient’s experience; andfollows world trends
since 2019 NEW
Social Responsibility4 meetings in the year
Defines strategies tostrengthen our social responsibility; monitors theperformance and defines theallocation process of theRouanet Law
8committees
Strategic committees
The Board ofDirectors isresponsible for electing themembers of thecommittees for one-year terms ofoffice.
They must have proven knowledge in the respective areas of work and technical qualification compatible with their duties.
Periodically reviews the criteria for nomination and succession;provides methodological support for the assessment of the Board of Directors and Chief Executive Officer; nominates members of the Board of Directors and Senior Vice Presidents (Diretores Gerais); and analyzes potential conflicts of interests
63
Alexandre ZancaniAuto loans, mortgage, “consorcio", credit for individuals and recovery, among others
André SapoznikPayments, operations, service and marketing
André Rodrigues Retail banking, digital channels, UX, insurance and SME finance
Carlos Constantini Wealth Management & Services(WMS)
even closer to the business areas
Since the beginning of 2021, this group has the mission to lead the bank's operations and transformation, in line with the priority fronts of customer satisfaction, efficiency, digitalization and focus on growth.
simplifying the operation and management model
allowing more autonomy and speed in decision making
Milton Maluhy FilhoNew CEO
Flávio Souza - Presidente do Itaú BBACommercial bank, CIB, ECM and DCM, research and wholesale credit
Pedro Lorenzini¹Treasury, asset products and client desks, macroeconomics and operations in South America
Ricardo GuerraTechnology
Alexsandro Broedel - CFOFinance and investor relations, real estate assets and procurement
Leila Melo Legal, ombudsman, institutional communication, sustainability and government relations
Matias Granata - CROMarket, credit and operational risks, capital management, corporate security, compliance and AML
Sergio FajermanPeople
Candido BracherFormer-CEO
New composition of the executive committee and responsibilities
Business Support
Corporate governance
New Executive Committee
64(1) Awaiting approval by the Central Bank of Brazil
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.
Corporate governance
Partners and Associates Program
Long-term incentivesThe program offers to participants the opportunity to invest in our non-votingshares (ITUB4), receiving a return also in shares, sharing short, medium andlong-term risks.
The partners program may also considerother instruments derived from shares,
as opposed to actual shares.
The share price considered at the grant and delivery dates is calculated on the
seventh business day before of each event, considering the average closing
price in the 30 days prior to the calculation.
Any partners and associates shares not yet received will also be subject to reduction
proportional to a possible reduction in the realized recurring managerial result of the
Issuer or of the applicable business area.
50%3 year
50%5 years
The investmentmust be retained
for:
Net variablecompensation
PartnersEight-year term of officeEligible to successive reappointmentsPossibility to invest 50% to 100% of net variablecompensation
AssociatesFour-year term of officeEligible to two reappointments (maximum 12-year term)Possibility to invest 35% to 70% of net variable compensation
year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8
grant year
Shares received will remain unavailablefor sale for five and eight-year term as
from each investment in shares
Partners and associate receive a return on theinvestment in the program
ITUB4
Available for sale
70% associates50% partners
30% associates50% partners
Available for sale
(delivery of 50%)ITUB4
(delivery of theremaining 50%)ITUB4
65
501440
313
269295
Oct-08 Oct-10 Oct-12 Oct-14 Oct-16 Oct-18 Oct-20
ITUB4 - with dividend reinvestmentBank basket with dividend reinvestment¹IBOVESPA IndexDollarCDI
100
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).
Corporate governance
Our shares
ITUB3
Stock Exchange
R$25.11Price²
Additional payout4
Tag Along5
Voting right
Priority dividends³
Characteristics of our shares
R$27.97 US$4.96
80% 80% 80%
ITUB4 ITUB
Appreciation of R$ 100 investedon the date before the announcement of the merger(10/31/08) to March 31,2021
Source: Economatica
(1) Simple average of the three largest Brazilian banks ex Itaú Unibanco; (2) Closing price as of March 31, 2021. Source: Economatica. (3) The non-voting shares will have the right to the priority minimum annual dividend (R$0.022 per share). (4) Additional payments may bemade in dividends or interest on capital. ADR holders will be paid by the Custodian Bank, which will be responsible for paying the holders in an average time 10 days as from the payment in Brazil. (5) Mechanism for protecting minority shareholders in the event of a change in the Company’s shareholding control.
66
Mar-21
Capital and risk management
Through our internal capital adequacy assessment process (ICAAP), we evaluate our capital adequacy for addressing risks, represented by our regulatory capital for credit, market and operating risks, and the capital required for covering other risks.
Capital adequacy
To ensure our solidness and the availability of capital to support the growth of our business, our Referential Equity remains above the minimum levels required by the Central Bank.
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.
preparation of managerial and regulatory reports
preparation of the capital plan, in situations of both normality and stress
We adopt a forward-looking approach when managing our capital, using the following pillars:
structuring of the capital contingency and recovery plans
internal capital adequacy assessment
identification of the material risks and the evaluation of additional capital
Main indicators ascertained based on the Prudential Conglomerate on base date March 31, 2021
Basel Ratio14.5%
Referential EquityR$155 billion
Dividends and IOC in 1Q21 R$1,284 million (net of taxes)
68
Capital and risk management
Basel III and Capital structure
Total Capital (10.25% - 12.75%)
Tier I (8.25% - 10.75%)
CET 1 (6.75% - 9.25%)
Mar-21
Additional Tier I Capital (AT1)
4,5%
1.25%
0 – 2.5%
1.5 %
2.0%
Countercyclical²
Conservation4
Common Equity Tier I
1.0 %Systemic³ACP¹
4.5%
Basel III requirement
Tier II
Our current ratio
14.5%
69
11.3%
1.5%
1.7 %
(1) ACP = Additional Principal Capital. (2) Countercyclical ACP: defined by each Central Bank. BACEN and currently set at 0%. (3) Systemic ACP: Requirement required for systemically important banks at domestic (D-SIBs) or global (G-SIBs). For Itaú Unibanco, this requirement is 1.0%. (4) Regulatory change implemented: conservation ACP from 2.5% to 1.25% from April 2020 to March 2021. As of April / 21, the conservation ACP will gradually increase, remaining again at 2.5% in April / 22. (CMN Resolution 4,783).
Capital and risk management
Capital cost management
Risk and Capital Management
Committee
Board of Directors
The cost of own capital is monitored monthly by a committee that reports to the Board of Directors.
When the monitoring indicators of the CoE exceed the monitoring range, the committee evaluates the indicators and decides whether to propose a revision of the capital cost to the Board of Directors.
Monitoring is based on in-house models, market data and evaluations of the cost of the bank’s capital and
that of the market.
The Board of Directors, then, deliberates on and approves the changes
or the ratification of the cost of own capital
We are continually striving to manage our capital allocation efficiently through an appropriate capital cost.
70
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.
Board of DirectorsPedro Moreira Salles
Roberto Egydio Setubal
Capital and Risk Management CommitteePedro Bodin¹
Audit CommitteeGustavo Loyola¹
3rd line of defense
Independent review of the activities in which the institution is engaged
Monitoramento mensal do Apetite de Riscos
Discussion of metrics and the outcome of Risk Appetite, as well as the main risk topics
Internal Audit Paulo Miron
Itaú Unibanco HoldingMilton Maluhy
Manages the risks these generate, with responsibility for identifying, assessing, controlling and reporting
1st line of defense
Ensures that the risks are managed and sustained on the principles of risk management:• Risk Appetite• Policies• Procedures• Dissemination of the risk culture in the business
2nd line of defense
Capital and risk management
How are we structured for managing risks?
André Rodrigues - Retail banking, digital channels, UX, insurance and SME finance
Alexandre Zancani- Auto loans, mortgage, “consorcio", credit for individuals and recovery, among others
Carlos Constantini- Wealth Management & Services (WMS)
Flavio SouzaPresident ofItaú BBA- Commercial bank, CIB, ECM and DCM, research and wholesale credit
Alexsandro Broedel(CFO)- Finance and investor relations, real estate assets and procurement
Matias Granata(CRO)- Market, credit and operational risks, capital management, corporate security, compliance and AML
Sergio Fajerman- People
Leila Mello- Legal, ombudsman, institutional communication, sustainability and government relations
André Sapoznik- Payments, operations, service and marketing
Ricardo Guerra- Technology
Pedro Lorenzini- Treasury, asset products and client desks, macroeconomics and operations in South America
71(1) Independent member.
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.
‘
stipulates that we must have enough capital to protect us from a stress event without adjusting our capital structure.
establish concentration limits, foster the diversification of revenues in the search to ensure low volatility in our results and the sustainability of our business.
is centered on controlling operational risk events that could have an adverse impact on our strategy.
deals with risks that could impact our brand value and reputation.
stipulates that our liquidity should weather long periods of stress.
Capital ratios in normal and stress situations
ratings on debt issues
Exam
ples
of
met
rics LCR
NSFR
greatest credit risks
highest exposures
concentration by sectors, countries and segments
market risk concentration
Capitalization Liquidity Credit, Market and Business Operational risk Reputation
operational risk events and losses incurred
information technology
suitability indicators
media exposure
follow-up on client complaints
regulatory compliance
that underpin our risk management structure
The policy is drawn up and approved by the Board of Directors
5 dimensions
Declaration by the BD: “We are a universal bank operating mainly in LatinAmerica. With the support of our risk culture, we operate to strict standardsof ethics and regulatory compliance in the search for high-level results andgrowth with low volatility, through long-standing relationships with ourclients, correct pricing of risks, diversified sources of funding and proper useof capital.”
Capital and risk management
How do we establish our risk appetite?
It is monitored, discussed and reported on a regular basis to the executive levels, the Board of Directors and the Audit Committee
Where is Risk Appetite inserted?
Risk Appetite
Global Limits
Specific Limits
Competencies and
Policies
Board of Directors
Executive Level
72
The principles of risk management define the fundamentals of risk management and risk appetite based on 6 pillars, providing guidance on how the employees of Itaú Unibanco Holding work and take decisions.
Sustainability and customer satisfaction
we want to be the leading bank in sustainable performance and in customer satisfaction. We strive
to create shared value for our employees, clients, shareholders and society, ensuring the perpetuity of
our business.
Risk Culture
our risk culture extends beyond policies, procedures and processes, strengthens the individual and
collective responsibility of all employees, so that they do the right thing at the right time and in the
correct manner, respecting the ethical way of doing business.
Pricing of risk
we operate with and assume business risks we know and understand, avoiding risks we are not familiar
with or in which there is no competitive advantage, carefully evaluating the risk-return ratio.
Diversification
we have a low appetite for volatility in our results, which is why we operate with a diversified base of
clients, products and businesses, striving to diversify the risks to which we are exposed and
prioritizing lower risk business.
Operational excellence
we want to be an agile bank with a robust and stable infrastructure, to provide a high-quality service.
Ethics and respect for regulations
For us, ethics are non-negotiable. We foster a proper institutional environment, instructing our employees to cultivate ethics in relationships and
business and to abide by the rules, thereby defending our reputation.
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.
Capital and risk management
Our risk management principles
73
Average VaR¹ in the quarter Liquidity Coverage Ratio (LCR) Net Stable Funding Ratio (NSFR)
(1) VAR = Value at Risk.
74
Capital and risk management
Market Risk and Liquidity Management
Solid management of liquidity and market risk
432.7 397.1 375.0
271.0
1Q18 1Q19 1Q20 1Q21
116.8%122.5% 123.6%
126.0% 125.0%
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
173.5% 164.0% 165.5%191.0%
Mar-18 Mar-19 Mar-20 Mar-21
Capital and risk management
Corporate Security Mindset
Constant concern about risksBenchmark with the market with an expanded view of risk and vulnerability testing throughout the perimeter.
Market leadershipDialogue and vision of trends with the main stakeholders and regulatory bodies in the category.
Sustainable and Efficient SolutionsAutomation of cyber security with the use of Analytics, guided by the main frameworks of Information Security.
Integration with Business and Technology
Presence with the IT and Business teams in the risk assessment of new products and services.
Security GovernanceEffectiveness and adequacy of our controls
based on clear and objective policies.
› Secure development› Secure infrastructure architecture› Data observability
protect by design› 24X7 Operations Center› Prevention, detection and response to threats› Constant blue team x red team exercises› Frequent and controlled pen testing
process discipline› Attraction, training and retention program› Continuous search for international benchmarking› Integration with the business› SI certified team
human capital
Security as a StrategyPreparation for the future with Research &
Development of controls and technologies.
75
Employees’
Capital and risk management
Information Security
technological infrastructure to face the constant evolution of cyber threats
application of corporate principles and guidelines for the protection of information and intellectual property
architecture of solutions and products with the highest degree of security together with the business and technology areas
maintaining the safety of current products, allowing for safe and efficient expansion
vulnerability management and adherence to security standards in a
technological environment
internal and external intrusion tests and scans in the environment, in order to reduce the risks of
attacks, image, exposure and information leakage
administration of security tools with a certified and specialized team in the most diverse technologies
monitoring and handling all types of attacks and security incidents
Gov
erna
nce
and
Proj
ects
Operations
Our processes guarantee the care and focus necessary to protect our environment ...
Gov
erna
nce
and
Proj
ects
Operations
76
Specific criteria must be met to keep on client and supplier relationships. Excluded activities that are understood to go against our values are:
• Use of compulsory labor; • Use of child labor in disagreement with legislation; and • Exploitation of prostitution, including child
prostitution.
Our E&S management guidelines are based on institutional issues and cover the most significant risks of our operation through specific procedures.
We identify, measure, mitigate and monitor the risks ofsocial and environmental character in joint action by the Risk areas,Sustainability and Compliance, taking into account the principles of
relevance and proportionality in business analysis
Excluded Activities Policy
Complexity• Financial volume • Product/Structure• Term
Risk exposure• E&S impact • Client segment• Supplier spending
ProportionalityMateriality
Capital and risk management
E&S Risk Management
77
In 2020 we approved a strategy that will result in the gradual reduction, by 2025, of Itaú’s credit exposure to clients whose activities are related to tobacco, such as agricultural producers that exclusively grow this crop, and cigarette manufacturers.
The Environmental and Social Risk Policy determines the environmental and social criteria that must be observed for the grant and renewal of credit to clients and for contracting and monitoring products.
For the purpose of helping decision-making on credit, clients from the corporate segment have an environmental and social risk rating that directly affect our risk rating models and, therefore, the pricing of their operations.
For clients that operate in the industries that are part of our list of Sensitive Industries, the risk rating is the result of the application of an individualized ESG analysis methodology. Specifically for Agricultural Producers, the analysis methodology includes the cross-referencing of public deforestation databases and georeferenced reports on their land.
Corporations and Agricultural ProducersWe apply an environmental and social assessment methodology that distinguishes the environmental and social risk profile of clients within the same industry:• Mining• Steel and iron and metallurgy• Oil and gas• Textile • Pulp and paper• Chemical and petrochemical • Agribusiness –Agricultural Producers• Agribusiness –Meatpacking plants• Agribusiness – Pesticides and fertilizers• Wood• Electric energy• Real estate
There are specific rules for credit approval, such as the restriction to some credit lines and approval by higher authority levels for: • Arms industry • Tobacco industry/Agribusiness - Tobacco
Sensitive Industries
Capital and risk management
Credit approval criteria
78
The Environmental and Social Risk Policy determines the environmental and social criteria that must be observed for the grant and renewal of credit to clients and for contracting and monitoring products.
Capital and risk management
Credit approval criteria
Approval authorities:In accordance with our Environmental and Social
Policy for Corporate Credit, the technical departments assess and classify the environmental and social risk according to its potential impact: high, medium and low.
Project finance: We observe criteria defined according to the type of operation/project based on the Environmental and Social Risk Policy or the Equator Principles.
Real Estate Guarantees The existence of environmental and social liabilities, including contamination, is assessed prior to the establishment of urban and rural real estate guarantees. In some cases, these liabilities are taken into consideration for the purpose of appraising the guarantee and the replacement of the real estate property may be requested.
Specific Products and OperationsNew products, as well as the structuring of specific operations, including those related to projects, are subject to an environmental and social risk assessment before their operation and/or contracting. This assessment may include an Action Plan that will be monitored with the client over the term of the financing.
79
Economic context
Economic context
Our expectations¹
Brazil
Chile
Colombia
Argentina
Peru
(1) Source: Brazilian Central Bank, FGV, IBGE, IMF, Bloomberg and Haver. (2) Source: Itaú Unibanco Holding analysis. (3) Unemployment Rate measured by PNAD Contínua. Obs: The data related to Inflation, Interest Rate and FX Rate from Brazil 2020 are oficial.
81
2015 2016 2017 2018 2019 2020 2021 ² 2022 ²
GDP - World 3.5% 3.3% 3.8% 3.6% 2.8% -3.3% 6.4% 4.6%GDP - USA 2.9% 1.6% 2.4% 2.9% 2.4% -3.5% 6.7% 4.7%GDP - Euro Zone 1.9% 1.8% 2.7% 1.9% 1.3% -6.7% 4.9% 5.2%GDP - China 7.1% 6.9% 6.9% 6.7% 6.1% 2.3% 8.5% 5.8%
GDP 2.3% 1.7% 1.2% 3.7% 0.9% -5.8% 8.5% 2.7%Interest Rate 3.50% 3.50% 2.50% 2.75% 1.75% 0.50% 1.50% 1.50%Inflation (IPC) 4.4% 2.7% 2.3% 2.6% 3.0% 3.0% 4.0% 3.0%FX Rate (Ch$ / US$, End of Period) 709 670 615 694 753 711 730 730National Unemployment Rate ³ (Year Avarage) 6.3% 6.7% 7.0% 7.4% 7.2% 10.8% 9.0% 7.5%
GDP 3.0% 2.1% 1.4% 2.6% 3.3% -6.8% 6.5% 3.0%Interest Rate 5.75% 7.50% 4.75% 4.25% 4.25% 1.75% 2.00% 2.00%Inflation (IPC) 6.8% 5.8% 4.1% 3.2% 3.8% 1.6% 3.7% 2.8%FX Rate (Co$ / US$, End of Period) 3175 3002 2932 3254 3287 3428 3700 3700National Unemployment Rate ³ (Year Avarage) 8.9% 9.2% 9.4% 9.7% 10.5% 16.1% 14.0% 11.0%
GDP 2.7% -2.1% 2.8% -2.6% -2.1% -9.9% 6.0% 2.5%Interest Rate 27.25% 19.88% 23.25% 49.50% 39.40% 34.30% 34.00% 24.00%Inflation (IPC) 26.9% 41.0% 24.8% 47.6% 53.8% 36.1% 47.0% 47.0%FX Rate (Ar$ / US$, End of Period) 13.01 15.85 18.77 37.81 59.90 84.15 110.00 151.00National Unemployment Rate ³ (Year Avarage) 6.5% 8.5% 8.3% 9.2% 9.8% 11.6% 11.0% 10.5%
GDP 3.3% 4.4% 2.1% 4.0% 2.2% -11.1% 10.2% 4.5%Interest Rate 3.75% 4.25% 3.25% 2.75% 2.25% 0.25% 0.25% 1.00%Inflation (IPC) 4.4% 3.2% 1.4% 2.2% 1.9% 2.0% 2.5% 2.3%FX Rate (Pe$ / US$, End of Period) 3.41 3.36 3.24 3.37 3.31 3.62 3.60 3.60National Unemployment Rate ³ (Year Avarage) 6.5% 6.7% 6.9% 6.6% 6.6% 13.6% 9.0% 7.0%
GDP -3.5% -3.3% 1.3% 1.8% 1.4% -4.1% 5.5% 1.8%Interest Rate (End of Period SELIC) 14.25% 13.75% 7.00% 6.50% 4.50% 2.00% 6.50% 6.50%Inflation (IPCA) 10.7% 6.3% 2.9% 3.7% 4.3% 4.5% 5.6% 3.6%FX Rate (R$ / US$, End of Period) 3.96 3.26 3.31 3.88 4.03 5.19 4.75 5.10National Unemployment Rate ³ (Year Avarage) 8.5% 11.5% 12.7% 12.3% 11.9% 13.5% 13.4% 12.1%
Economic context
We expect the IPCA to rise 5.6% in 2021
82
IPCA breakdown
We lifted our forecast for the consumer price index IPCA in 2021 to 5.6% (from 5.3%), incorporating higher current inflation readings and still-high agricultural commodity prices.
Regarding the tariff flag system in electricity bills, we anticipate red mode level 2 from June to November, and red mode level 1 in December. However, with below-average rainfall in the short term, the tariff flag may be higher at the end of the year. A red mode level 2 (the highest tariff surcharge) in December would represent an additional 20-bp impact on the IPCA in 2021.
1%
3%
5%
7%
9%
11%
13%
15%
17%
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Selic interest rateItaú Unibanco's expectation
6.3%
1 3.1%8.1%
-4%
0%
4%
8%
12%
16%
20%
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
YoY IPCANon-earmarked (76%)
Regulated prices (24%)
May-21
Economic context
Fiscal risk remains
83
Primary result - % of GDP
-0.6
-1.9-2.5
-1.7 -1.5-0.8
-9.4
-2.0-1.0
-13.0
-11.0
-9.0
-7.0
-5.0
-3.0
-1.0
2014 2015 2016 2017 2018 2019 2020 2021E 2022E
1We revised our primary deficit estimates to 2.0% of GDP (BRL 170billion) from 2.8% of GDP (BRL 240 billion) in 2021, and to 1.0% of GDP(BRL 95 billion) from 2.0% of GDP (BRL 185 billion) in 2022.
2The revision is based on better current data and expectations ofhigher economic growth in 2021, which imply positive effects fornext year.
3We also expect public debt to decline from 88.8% of GDP in 2020 to81.9% of GDP this year, and to 81.6% of GDP in 2022 (compared to ourprevious forecasts of 84.1% in 2021 and 84.5% in 2022).
4Given the pandemic's dynamics and its economic and socialconsequences, the main fiscal risk is an additional flexibilization ofthe spending ceiling regime.
Financial highlights
recurring
managerial resultsR$6.4 Bn
18.7%
recurring
managerial ROE 18.5%
2.4 p.p.
credit portfolio
quarter highlights
agribusiness segment
11.2%
auto loans for individuals
4.5%
mortgages for individuals
12.1%
non-interest expenses
+ than 5 milliontotal clients in March 2021
+ than 2 millionnew clients in 1Q21
1Q21 vs. 4Q20 change
R$906.4 Bn4.2%
R$12.4 Bn6.6%
margin with clients
R$16.2 Bn1.0%
margin withthe market
cost ofcredit
R$4.1 Bn31.9%
R$2.5 Bn57.1 %
digital clients acquisition
+ 3.7 millionin 1Q21
85
16.0 15.1 15.1 16.2
(0.9) (0.1) (0.05) (0.2) (0.05)0.4 1.1
4Q20 4Q20working capital
and others
4Q20spread-sensitive
operations
product mix asset spreads average volume lower volume ofcalendar days
Latin Americaand others
1Q21spread-sensitive
operations
1Q21working capital
and others
1Q21
11.1% 10.2%9.0% 8.6% 8.5%
4.1%5.2% 5.4% 6.2% 6.2%
1Q20 2Q20 3Q20 4Q20 1Q21
9.2%8.4%
7.5% 7.3% 7.3%
3.7% 4.3% 4.4% 4.5%5.4%
1Q20 2Q20 3Q20 4Q20 1Q21
In R$ billions
(1) Includes capital allocated to business areas (except treasury), in addition to the corporation's working capital, (2) Change in the composition of assets with credit risk between periods in Brazil, (3) Others considers the liability financial margin and structured wholesale operations.
1 13
2
financial margin with clientsfinancial margin with clients risk-adjusted financial margin with clients
annualized average margin - consolidated annualized average margin - Brazil
change in the financial margin with clients
R$0.2 Bn
86
mar-21 dec-20 Δ mar-20 Δ
individuals 261.3 255.6 2.2% 238.1 9.8%
credit card loans 82.8 86.3 -4.0% 83.8 -1.3%
personal loans 35.6 35.1 1.6% 37.4 -4.6%
payroll loans 56.1 55.3 1.4% 50.3 11.5%
auto loans 24.4 23.3 4.5% 19.4 25.6%
mortgage 62.4 55.7 12.1% 47.2 32.4%
very small, small and middle market loans 128.3 127.6 0.6% 104.5 22.7%
banking loans 106.7 105.3 1.3% 104.5 2.1%
government sponsored/guaranteed facilities 21.6 22.3 -3.2% - -
individuals + SMEs loans 389.6 383.2 1.7% 342.6 13.7%
corporate loans 279.0 269.0 3.7% 250.2 11.5%
credit operations 185.6 179.0 3.7% 171.9 8.0%
corporate securities 93.4 90.0 3.7% 78.3 19.3%
total Brazil 668.6 652.2 2.5% 592.8 12.8%
Latin America 237.8 217.3 9.4% 195.6 21.6%
total with financial guarantees and corporate securities 906.4 869.5 4.2% 788.3 15.0%
credit portfolio
In R$ billions credit¹ origination
change in personal loans portfolio
overdraft
personalized credit
installment credit
Mar-21 vs. Mar-20
23%
29%
25%
+
-
-
11%
7%
5%
31%
individuals 9%-
1Q21 vs. 4Q20
1Q21 vs. 1Q20
19%+
very small, small and middle market
corporate
private securities issuance³
total Brazil2
21%
4%
7%
-
+
-
65%-
-
+
+
+
Mar-21 vs. Dec-20
8%
13%
16%
-
+
+
Note: (1) Does not consider origination of credit card, overdraft, debt renegotiation and other revolving credits. Average origination per working day in the period, except for private securities issuance, (2) Does not include private securities issuance, (3) Considers total volume of fixed income and hybrid private securities issuance arranged by Itaú Unibanco on the local market (includes distributed volumes). 87
performing
within grace period
overdue between 15-90 days
Overdue over 90 days
reprofiled portfolio by product balance at March 31st 2021 - in R$ billions
individuals
personal loans
mortgage
auto loans
Payroll loans
credit cards
15.2
13.2
3.5
2.0
0.9
R$ 34.8 billion13%
very small and small companies
auto loans
working capital 9.9
1.3
R$ 11.2 billion
78.3%
3.0%
8.6%
10.2%
9%¹
portfoliorisk profilenon-overdue portfolio
March 31st, 2021
81.2%
100% performing
In February 2020
54% are collateralized
79% in ratings AA to C At the end of March 2021
R$ billionsR$ billions
5%
Reprofiled portfolio represents
of total credit portfolio
Individuals, very small and small companies
(1) On the total portfolio of very small, small and middle market companies.
loan portfolio reprofiling
53.5 50.8 46.0
Sep-20 Dec-20 Mar-21
9.5%Mar-21
vs. Dec-20
In R$ billions
88
credit quality
247%341%
470%519%
443%
193% 212%253% 236% 230%
239% 281%
339% 320% 298%
638%
920%1013% 952%
835%
1,2
mar/20 jun/20 set/20 dez/20 mar/21
5.3%3.9% 3.0% 2.8% 1.9%
cost of credit¹ratio between the annualized cost of credit and the loan portfolio² - (%)
coverage ratio – 90 days NPL %
(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 last two quarters.
15 - 90 days NPL - % 90 days NPL - %
Wholesale Brazil
Latin America
Retail Brazil
Total
5.1% 5.0%
4.3% 4.2%3.9%
2.3%2.0%
1.4%1.7%
2.5%
1.1%0.7% 0.5% 0.4% 0.4%
2.0%
1.4% 1.2% 1.3% 1.5%
3.1%2.7%
2.2% 2.3%2.3%
3.5%3.2%
2.6% 2.7% 2.7%
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
Latin America corporatetotal very small, small and middle market companiesindividuals Brazil
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
3.2%
1.2%
2.0%
0.8%
10.1 7.8 6.3 6.0 4.1
1Q20 2Q20 3Q20 4Q20 1Q21
3.5%
2.4%
3.0%
2.4%
2.8%
1.9%
1.0%1.1%
1.8% 1.6%
0.7%0.9%
0.7% 0.6% 0.5%
3.0%
1.9%
1.7%
1.9%2.0%
2.6%
1.7%
1.9%
1.8%
2.0%2.4%
1.7%
2.0%
1.8%2.0%
*ex reprofiledportfolio(Mar-21)
*ex reprofiledportfolio(Mar-21)
89
1Q21 4Q20 Δ 1Q20 Δ
credit and debit cards 2.9 3.1 -7.1% 3.0 -4.5%
card issuance 2.3 2.4 -4.8% 2.3 -0.9%
acquiring 0.6 0.7 -14.7% 0.7 -15.7%
current account services 1.8 1.9 -3.5% 2.0 -7.6%
asset management¹ 1.3 1.4 -7.2% 1.5 -10.6%
advisory services and brokerage 1.2 1.2 6.9% 0.9 33.2%
credit operations and guarantees provided 0.6 0.6 0.3% 0.6 -1.4%
collection services 0.5 0.5 -3.5% 0.5 4.1%
other 0.4 0.4 0.7% 0.3 24.2%
Latin America (ex-Brazil) 0.8 0.8 4.5% 0.7 14.3%
commissions and fees 9.6 9.9 -2.9% 9.5 0.5%
result from insurance operations² 1.5 1.4 5.5% 1.6 -5.4%
commissions, fees and result from insurance 11.0 11.2 -1.9% 11.1 -0.3%
In R$ billions
investment banking ranking ³
M&AR$130.6 billion financial advisory services in 9 transactions
ECMR$6.2 billion volume issued in 17 transactions
1st place 1st place
most active 1st quarter in capital market historyintense volume of IPOs comparedto previous years
building and execution of the strongest pipeline in the history of the investment bankmainly in capital market transactions
advisor of the largest M&Ain Brazil (ex-financial institutions).
highlight for tech companies' transactions
(1) Includes fund management fees and “consórcio” management fees, (2) Result from insurance includes the revenues from insurance, pension plan and premium bonds operations net of retained claims and selling expenses, (3) Source: Dealogic, March-21.
commissions and insurance
90
1Q21 4Q20 Δ 1Q20 Δ
personnel (4.9) (5.2) -5.9% (4.6) 5.8%
administrative (4.0) (4.4) -8.7% (4.0) -0.9%
other (1.5) (1.7) -9.6% (1.8) -17.2%
total - Brazil (10.4) (11.3) -7.6% (10.5) -0.8%
Latin America (ex-Brazil) (2.0) (2.0) -1.2% (1.6) 30.2%
non-interest expenses (12.4) (13.3) -6.6% (12.1) 3.2%
In R$ billions
non-interest expenses
(1) Includes operating expenses and other tax expenses (Includes IPTU, IPVA, IOF and others. Does not include PIS, Cofins and ISS), (2) Does not consider overhead allocation.
(1)
(2)
# employees
- 1,848Brazil(ex-technology)
- 499outside Brazil
mar/21 vs. mar/201,809
Mar-21
12,682
72,626
12,621
72,932
Dec-20
96,540 97,097
13,181
74,474
Mar-20
95,288
7,633 10,987 11,789 + 4,156IT team
(13.3)
Latin America
4Q20 Brazil
4Q20 Latin America
2.0(11.3)
(2.0)
R$ 0.9 Bn
quarterly change, highlighting investments1Q21 vs. 4Q20
investment in technology
investment in business
(0.2) (0.1)
seasonality other 1Q21 Brazil
0.5 0.1 (10.4)
efficiency program
0.5
1Q21
(12.4)
Brazil with investments
1Q21
(11.5)
91
capital
Common Equity Tier I (CET I) Additional Tier I (AT1)
(1) mainly tax credits.
Dec-20 tier I capital
net income prudential adjustments¹
Mar-21 tier I capital
11.5%
1.7%
13.2% + 0.5% - 0.2%13.0%
11.3%
1.7%
risk weighted assets
dividends and interest on own capital
- 0.1% - 0.4%
92
total credit portfolio²
financial margin with clients
financial margin with the market
cost of credit³
non-Interest expenses
effective tax rate
commissions and fees and results from insurance operations4,5
2021 guidance *
* The midpoint of the projections would imply an ROE of around 17.6%, taking into account other assumptions. This information should not be understood as a projection. (1) Includes units abroad ex-Latin America; (2) Includes financial guarantees provided and corporate securities; (3) Composed of result from loan losses, impairment and discounts granted; (4) commissions and fees (+) income from insurance, pension plan and premium bonds operations (-) expenses for claims (-) insurance, pension plan and premium bonds selling expenses; (5) 2021 guidance does not consider XP Inc. equity result starting in February 2021.
Growing 5.5% to 9.5%
Growing 2.5% to 6.5%
Range from R$4.9 bn to R$6.4 bn
Range from R$21.3 bn to R$24.3 bn
Growing 2.5% to 6.5%
Range from -2.0% to 2.0%
Range from 34.5% to 36.5%
Growing 8.5% to 12.5%
Growing 3.0% to 7.0%
Range from R$3.3 bn to R$4.8 bn
Range from R$19.0 bn to R$22.0 bn
Growing 2.5% to 6.5%
Range from -2.0% to 2.0%
Range from 34.0% to 36.0%
Brazil¹Consolidated
the ranges of our 2021 forecast remain unchanged
93
Additional information
Corporate profileAdditional information
Additional Information
A History of Successful Strategic Deals¹
(1) Includes mergers, acquisitions, joint-ventures and partnerships.
Foundationof Banco
Itaú
Casa Moreira Salles
Banco delBuen Ayre
BEG
Alliance with:
Unibanco
Itaú
1924
1943
1995 - 1998
NACIONAL
2000 - 2003 2004 - 20072009 - 2020
Uruguay Retail -Brazil
Acquisition of the minority interest
of:Banco Itaú BMG Consignado
Acquisition of aminority interest
in:
Merger 2008
Acquisition of the remaining 50% of:
96
Capital and risk managementAdditional information
Additional Information
Capital Ratios (BIS) | Prudential Conglomerate ¹
(1) Includes financial institutions, consortium managers, payment institutions, companies that acquire operations or directly or indirectly assume credit risk and investment funds in which the conglomerate substantially retains risks and benefits.98
In R$ millions, end of period 1Q21 4Q20
Core Capital 121,025 119,960
Tier I (Core Capital + Additional Capital) 139,552 137,157
Referential Equity (Tier I and Tier II) 155,280 151,244
Total Risk-weighted Exposure (RWA) 1,072,193 1,042,207 Credit Risk-w eighted Assets (RWACPAD) 963,403 921,934 Operational Risk-w eighted Assets (RWAOPAD) 82,026 92,792 Market Risk-w eighted Assets (RWAMINT) 26,764 27,481
Core Capital Ratio 11.3% 11.5%
Tier I Ratio 13.0% 13.2%BIS (Referential Equity / Total Risk-weighted Exposure) 14.5% 14.5%
Additional Information
Ratings
FitchRatings
Moody’s
Standard& Poor’s
99
Viability SupportLong Term Short Term Long Term Short Term Long Term Short Term
bb 4 BB B BB B AAA (bra) F1+ (bra)
International National Local Currency Foreign Currency
Subordinated DebtForeign Currency
Senior Unsecured DebtForeign Currency
Long Term Long Term Long Term Short Term Long Term Short Term(P) B1 (P) Ba3 Ba3 NP A1. br BR-1
International National
IssuerIssuer
Local Currency
Long Term Short Term Long Term Short Term Long Term Short TermBB- B BB- B brAAA brA-1+
International National Local Currency Foreign Currency
Economic contextAdditional information
101Source: Central Bank of Brazil.
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
-23.0%
-13.0%
-3.0%
7.0%
17.0%
27.0%Ap
r-15
Apr-1
6
Apr-1
7
Apr-1
8
Apr-1
9
Apr-2
0
Apr-2
1
Credit grant – Individuals – 12 monthsAcum. Growth 12 months (left)
Credit grant – Companies – 12 monthsAcum. Growth 12 months (left)
Monthly GDP - Itaú UnibancoAcum. Growth 12 months
80,000
130,000
180,000
230,000
280,000
Apr-15
Apr-16
Apr-17
Apr-18
Apr-19
Apr-20
Apr-21
Credit grant – Individuals – 3 monthsCredit grant – Companies – 3 months(in R$ millions constants of Dec. 2020)
Additional Information
Brazil | Economic context
102Source: Central Bank of Brazil. (1) Average Interest Rate individuals and companies refer to Apr-21.
14.65
41.02
2.750
10
20
30
40
50
60
70
80
Apr-
13
Aug-
13
Dec-
13
Apr-
14
Aug-
14
Dec-
14
Apr-
15
Aug-
15
Dec-
15
Apr-
16
Aug-
16
Dec-
16
Apr-
17
Aug-
17
Dec-
17
Apr-
18
Aug-
18
Dec-
18
Apr-
19
Aug-
19
Dec-
19
Apr-
20
Aug-
20
Dec-
20
Apr-
21
Average Interest Rate – Individuals (non-earmarked)¹Average Interest Rate – Companies (non-earmarked)¹Selic Interest Rate
21.24
9.45
30.69
-3
2
7
12
17
22
27
32
Feb-13
Aug-13
Feb-14
Aug-14
Feb-15
Aug-15
Feb-16
Aug-16
Feb-17
Aug-17
Feb-18
Aug-18
Feb-19
Aug-19
Feb-20
Aug-20
Feb-21
Commitment of household incomeAmortization componentInterest component
4.70
2.97
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Apr-1
3
Aug-13
Dec-13
Apr-1
4
Aug-14
Dec-14
Apr-1
5
Aug-15
Dec-15
Apr-1
6
Aug-16
Dec-16
Apr-1
7
Aug-17
Dec-17
Apr-1
8
Aug-18
Dec-18
Apr-1
9
Aug-19
Dec-19
Apr-2
0
Aug-20
Dec-20
Apr-2
1
NPL – Individuals (+90 days)Overdue loans – Individuals (15-90 days)
1.41
1.27
00.5
11.5
22.5
33.5
44.5
Apr-1
3
Aug-13
Dec-13
Apr-1
4
Aug-14
Dec-14
Apr-1
5
Aug-15
Dec-15
Apr-1
6
Aug-16
Dec-16
Apr-1
7
Aug-17
Dec-17
Apr-1
8
Aug-18
Dec-18
Apr-1
9
Aug-19
Dec-19
Apr-2
0
Aug-20
Dec-20
Apr-2
1
NPL – Companies (+90 days)Overdue loans – Companies (15-90 days)
(% YoY)
% of portfolio% of portfolio
% of overall Earnings
Additional Information
Brazil | Economic context
Total Credit (R$ billion) ¹ Growth in credit per customer (% YoY, nominal) ²
103
Credit growth by type of control (% YoY, nominal)²,³ Market Share of private banks vs. public banks (%)³
(1) Information for 2021 refers to data available disclosed on a monthly basis. (2) Total Credit includes earmarked and non-earmarked loans. (3) As of July 2016, HSBC Brazil retail operations are consolidated into Bradesco operations. Source: Central Bank of Brazil
1,411 1,501 1,579 1,581 1,530 1,607 1,789 2,100 2,395
1,038 1,270 1,492 1,570 1,552 1,497 1,483 1,486
1,731 2,449
2,771 3,071 3,151 3,082 3,103 3,272
3,585 4,126
Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21
Total Non Earmarked Credit Total Earmarked Credit
16.315.1
28.7
9.16.2
21.9
6.5
17.4
Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21
Total State OwnedDomestic Private Foreign Private
16.0
16.0 16.6
14.3
16.3 15.1
Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21
Companies Individuals Total
49.1 44.4
35.1 37.3
15.8 18.3
Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21
State Owned Domestic Private Foreign Private
Additional Information
Brazil | Economic context
104Source: Central Bank. (1) Source: Central Bank of each selected country. Reference date: Brazil´s data refer to Apr-21. Chile and Colombia refer to Dec-19 and Mexico refer to Sep-19. Other countries refer to Nov-19.
Credit evolution/GDP (Brazil %)
Credit/GDP ¹ (% in 2019)
Mortgage loans evolution/GDP (Brazil %)
Mortgage loans/GDP¹ (% in 2019)
49.1 50.3 52.3 52.048.4 46.1 46.0 48.3
53.6
Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21
6.6 7.79.1 9.7 9.7 9.4 9.1 9.3 10.0
Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21
54
94
33 4583
11686
147 13192
6910
2711 6
3849
31
48
67
4129
Additional Information
Brazil | Economic context
The Central Bank has a positive agenda for improving competitiveness and quality within the Financial System for years to come:
Inclusion
• Cooperatives
• Convertibility
• Capital Market Initiative (IMK)
• Micro credit
• Innovations Instantaneous Payments Open Banking
• International reserves
• Market efficiency
• Rural credit
• Real estate credit
• Relationship with Congress
• Relationships with international investors
• Communication plan for the actions of the Central Bank
• Transparency and communication in monetary policy
• Financial Education
Competitiveness Transparency Education
Source: Central Bank of Brazil105
Additional Information
Brazil | Economic context
Ranking of competitiveness¹ (position)
PISA Score ²
Days required to open a business
Time to prepare and pay taxes (hours)
(1) Relative position in the ranking when compared to other countries. (2) Ranking PISA. Source: World Economic Forum, Global Competitiveness Report 2018 – 2019.106
12
728
3343
4861
6568
71
Singapore
United States
Germany
China
Chile
Russia
Mexico
Turkey
Peru
India
Brazil 1814
109
98
744
2
India
Brazil
Switzerland
China
Mexico
Russia
Turkey
United states
Chile
Singapore
1501296
260241
175170
1596463
Brazil
Chile
Peru
Mexico
United states
Turkey
Russia
Singapore
SwitzerlandReading Math Science
1st 1st 1st
46th 62th
69th
China(Score: 590)
Argentina(Score: 404)
Brazil(Score: 404)
66th 74th
48th
62th 73th 68th
Chile(Score: 444)
China(Score: 555)
Brazil(Score: 413)
Argentina(Score: 402)
Chile(Score: 452)
China(Score: 591)
Brazil(Score: 384)
Argentina(Score: 379)
Chile(Score: 417)
Additional Information
Brazil | Economic context
Leverage and Monthly Debt Service
Debt service burden breakdown (%)
107
22.9 23.8 25.5
27.2 29.0 29.2
28.4 28.4 28.8
28.0 27.4 26.6 27.7 29.0 30.7
22.5 23.3 24.8 26.4 28.0 27.5 26.6 26.4 26.4 25.6 24.9 24.1 25.3 26.8 28.1
26.4 30.6 32.9
36.4 41.1 44.4 46.5 47.7 48.5 46.7 44.5 44.4 46.4 49.1 57.7
22.8 26.7 28.1 30.0 32.5 33.4 33.0
31.7 30.1
27.8 25.9 25.9
27.8
30.4 35.5
Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21
Debt service burden (%) Debt service burden - without mortgage (%) Debt Leverage (%) Debt Leverage - without mortgage (%)
15.6 15.9 16.8 18.7 20.1 19.8 19.8 19.9 19.5 18.1 17.4 17.4 18.5 19.7 21.2
7.3 7.9 8.7 8.5 9.0 9.4 8.6 8.6 9.3 9.9 10.0 9.2 9.2 9.3 9.5 22.9 23.8 25.5 27.2 29.0 29.2 28.4 28.4 28.8 28.0 27.4 26.6 27.7 29.0 30.7
Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21
Debt service burden - Principal Debt service burden - Interest
Additional Information
Brazil | Economic context
26.8 27.6 26.8 23.5 21.0 19.9 21.0 23.5
Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21
Additional Information
Brazil | Economic context
Companies Total Credit³ / GDP (%)
Companies Leverage (Gross Debt1 and Net Debt2)/ GDP
Source: Brazilian Central Bank and Itaú. (1) Includes loans granted by banks, capital markets and external debt. (2) Net debt is calculated by subtracting corporate financial investments (CDB) from gross debt. (3) Domestic loans granted by banks108
45.7%51.1% 52.7% 47.1%
45.6% 48.7%56.0% 58.2%
40.2%46.3% 48.2%
42.5% 39.5% 41.7%46.1% 46.0%
Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21
Gross Debt Net Debt
3.0
3.0
3.0
3.0 3.3
2.8 2.4 2.2
2.2
18.9 19.3 18.7 18.4 17.2 15.5 14.5 15.8 15.0
6.5 6.5 5.0 4.5 3.8
2.3 2.0 2.0
2.8
Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21NPL 90 days Total Spread SELIC
2.6 2.5 2.4 2.2 2.3 1.9 1.5 1.2 1.3
9.2 9.3 8.9 9.5 8.7 6.9 6.2 8.4 6.9
Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21
NPL 90 days Corporate Spread
3.4 3.4 3.5 3.6 4.1 3.5 3.1 2.9 3.0
25.3 25.6 24.9 23.8 23.0 21.2 20.0 20.5 20.2
Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21NPL 90 days Individuals Spread
Additional Information
Brazil | Economic context
Spread and Delinquency Evolution ¹
Individuals Spread and Delinquency | Brazil (%)
(1) Source: Brazilian Central Bank and Itaú Unibanco analysis. (2) Periods prior to 2014 do not consider CorpBanca’s information.
Companies Spread and Delinquency | Brazil (%)
Spread and Delinquency | Brazil (%)
109
20.924.1 23.9
20.3 21.8 21.9 23.7
14.518.5
10.0 11.814.3 13.8
7.0
6.5 4.52.0 2.85.0 5.0
7.0 7.5 7.0
7.05.6 4.6 4.4
2013 2014 2015 2016 2017 2018 2019 2020 1Q21Itaú Unibanco ROE SELIC Long Term Interest Rate (TJLP)
Indicators² | (%)
Additional Information
Brazil | Economic context
Reserve Requirements and Restricted Loans
110(1) Defined by Manual de Crédito Rural (MCR) for the period from Jul-20 till Jun-21; (2) Regulated by Resolution 4,854 (Central Bank).
Rate RemunerationReserve Requirement 21.0% No RemunerationRural 27.5% ¹ Max Interest: 6.0% annualMicrocredit 2.0% ² Max Interest: 4.00% monthlyAvailable to Lend 49.5%Reserve Requirement 20.0% Savings DepositsMortgage 65.0%Available to Lend 15.0%Reserve Requirement 17.0% SelicAvailable to Lend 83.0%
Rate
Demand Deposits
Savings Deposits
Time Deposits
Financial HighlightsAdditional information
Additional Information
1Q21 Results
112
1Q21 4Q20 Δ 1Q20 Δ
operating revenues 30.0 29.2 2.9% 29.2 2.8%
managerial financial margin 18.6 17.6 6.0% 17.8 4.7%
financial margin with clients 16.2 16.0 1.0% 17.0 -5.1%
financial margin with the market 2.5 1.6 57.1% 0.8 223.8%
commissions and fees 9.6 9.9 -2.9% 9.5 0.5%
revenues from insurance 1.8 1.7 5.2% 1.9 -3.0%
cost of credit (4.1) (6.0) -31.9% (10.1) -59.2%
provision from loan losses (4.4) (5.6) -21.4% (10.4) -57.3%
impairment 0.0 (0.8) -105.7% (0.1) -154.0%
discounts granted (0.4) (0.4) -8.1% (0.3) 53.8%
recovery of loans written off as losses 0.7 0.9 -22.5% 0.7 3.0%
retained claims (0.4) (0.3) 4.7% (0.3) 8.1%
other operating expenses (14.2) (15.2) -6.4% (13.8) 3.5%
non-interest expenses (12.4) (13.3) -6.6% (12.1) 3.2%
tax expenses and other (1.8) (1.9) -5.2% (1.7) 5.1%
income before tax and minority interests 11.3 7.6 49.1% 5.0 124.9%
income tax and social contribution (4.4) (2.8) 59.1% (1.0) 349.9%
minority interests in subsidiaries (0.5) 0.5 -200.7% (0.2) 261.3%
recurring managerial result 6.4 5.4 18.7% 3.9 63.6%
In R$ billions
Additional Information
Segments – Income Statement Pro Forma 1Q21
113
In R$ millionsRetail Banking Wholesale Banking
Activities with the Market + Corporation Itaú Unibanco
Operating Revenues 17,557 8,614 3,858 30,029 Managerial Financial Margin 9,966 5,304 3,364 18,634
Financial Margin with Clients 9,966 5,304 902 16,173 Financial Margin with the Market - - 2,461 2,461
Commissions and Fees 5,885 3,190 491 9,566
Result from Insurance, Pension Plans and Premium Bonds Operations before Retained Claims and Selling Expenses 1,706 120 4 1,829
Cost of Credit (4,049) (62) (0) (4,111) Provision for Loan Losses (4,219) (216) (0) (4,435) Impairment - 48 - 48 Discounts Granted (345) (65) - (409) Recovery of Loans Written Off as Losses 515 171 (0) 686
Retained Claims (354) (2) - (356) Other Operating Expenses (9,562) (4,350) (317) (14,229)
Non-interest Expenses (8,378) (3,927) (141) (12,446) Tax Expenses for ISS, PIS, Cofins and Other Taxes (1,180) (423) (176) (1,779) Insurance Selling Expenses (4) (0) 0 (4)
Income before Tax and Minority Interests 3,592 4,200 3,542 11,333 Income Tax and Social Contribution (1,279) (1,620) (1,489) (4,389) Minority Interests in Subsidiaries (102) (126) (318) (546) Recurring Managerial Result 2,210 2,453 1,734 6,398
Recurring Return on Average Allocated Capital 19.4% 17.3% 19.1% 18.5%Efficiency Ratio (ER) 52.3% 48.0% 3.8% 44.6%
Additional Information
Results – Brazil and Latin America
(1) Includes units abroad ex-Latin America. (2) Result from Insurance includes the Result from Insurance, Pension Plan and Premium Bonds Operations before Retained Claims and Selling Expenses. (3) Include Tax Expenses (ISS, PIS, COFINS and other) and Insurance Selling Expenses. Note: Latin America information is presented in nominal currency. 114
In R$ millionsConsolidated Brazil ¹
Latin America (ex-Brazil)
Consolidated Brazil ¹Latin America
(ex-Brazil)Consolidated Brazil ¹
Latin America (ex-Brazil)
Operating Revenues 30,029 26,077 3,952 29,180 25,890 3,290 2.9% 0.7% 20.1%
Financial Margin with Clients 16,173 14,046 2,127 16,020 13,984 2,036 1.0% 0.4% 4.5%
Financial Margin with the Market 2,461 1,456 1,005 1,567 1,097 471 57.1% 32.8% 113.7%
Commissions and Fees 9,566 8,747 819 9,855 9,071 784 -2.9% -3.6% 4.5%
Revenues from Insurance 2 1,829 1,829 - 1,738 1,738 - 5.2% 5.2% -
Cost of Credit (4,111) (3,706) (405) (6,033) (3,821) (2,213) -31.9% -3.0% -81.7%
Provision for Loan Losses (4,435) (3,914) (522) (5,641) (3,307) (2,335) -21.4% 18.4% -77.7%
Impairment 48 48 - (832) (832) - -105.7% -105.7% -
Discounts Granted (409) (398) (11) (445) (433) (12) -8.1% -8.1% -8.2%
Recovery of Loans Written Off as Losses 686 557 128 885 751 134 -22.5% -25.7% -4.6%
Retained Claims (356) (356) - (340) (340) - 4.7% 4.7% -
Non-interest Expenses (12,446) (10,353) (2,092) (13,322) (11,176) (2,145) -6.6% -7.4% -2.5%
Tax Expenses and Other 3 (1,783) (1,735) (48) (1,882) (1,770) (111) -5.2% -2.0% -56.9%
Income before Tax and Minority Interests 11,333 9,926 1,407 7,604 8,782 (1,179) 49.1% 13.0% -219.4%
Income Tax and Social Contribution (4,389) (3,915) (474) (2,758) (3,328) 570 59.1% 17.6% -183.1%
Minority Interests in Subsidiaries (546) (120) (427) 543 (86) 629 -200.7% 39.0% -167.9%
Recurring Managerial Result 6,398 5,891 506 5,388 5,368 20 18.7% 9.8% 2378.4%
1Q21 4Q20 Δ
Total Credit TradingInsurance
& servicesExcess
capitalTotal Credit Trading
Insurance& services
Excess capital
Total Credit TradingInsurance
& servicesExcess
capital
Operating revenues 30.0 15.9 0.7 13.4 0.1 29.2 16.3 0.1 12.6 0.2 0.8 (0.4) 0.6 0.8 (0.2)
Managerial financial margin 18.6 12.8 0.7 5.1 0.1 17.8 13.2 0.1 4.3 0.2 0.8 (0.4) 0.6 0.8 (0.2)
Commissions and fees 9.6 3.0 0.0 6.5 - 9.5 3.0 0.0 6.5 - 0.1 (0.0) 0.0 0.1 -
Revenues from insurance ¹ 1.8 - - 1.8 - 1.9 - - 1.9 - (0.1) - - (0.1) -
Cost of credit (4.1) (4.1) - - - (10.1) (10.1) - - - 6.0 6.0 - - -
Retained claims (0.4) - - (0.4) - (0.3) - - (0.3) - (0.0) - - (0.0) -
Non-interested expenses and other² (14.8) (7.2) (0.2) (7.4) 0.0 (13.9) (6.9) (0.1) (6.9) (0.0) (0.9) (0.3) (0.1) (0.5) 0.0
Recurring managerial result 6.4 2.7 0.3 3.4 0.0 3.9 0.0 (0.0) 3.7 0.1 2.5 2.6 0.3 (0.3) (0.1)
Average regulatory capital 139.6 80.2 2.4 51.8 5.2 128.0 72.5 1.6 48.3 5.6 11.6 7.7 0.7 3.5 (0.4)
Value creation 2.1 0.3 0.2 1.8 (0.1) 0.1 (2.2) (0.1) 2.3 (0.0) 2.0 2.4 0.3 (0.5) (0.1)
Recurring managerial ROE 18.5% 13.4% 49.9% 26.3% 1.1% 12.8% 0.2% -3.2% 31.0% 10.5% 5.7 p.p. 13.2 p.p. 53.2 p.p. -4.7 p.p. -9.4 p.p.
In R$ billions
The allocation of principal capital (Common Equity Tier 1) in the bank's business is made at 12%, according to our risk appetite.
(1) Resultado de Seguros inclui as Receitas de Seguros, Previdência e Capitalização, antes das Despesas com Sinistros e Comercialização.(2) Inclui Despesas Tributárias (ISS, PIS, COFINS e outras), Despesa de Comercialização de Seguros e Participações Minoritárias nas Subsidiárias.
1Q21 1Q20 1Q21 vs. 1Q20
Additional Information
Business Model
115
In R$ billions, end of period 1Q21 4Q20 Δ 1Q20 Δ
Individuals - Brazil 1 260.4 254.8 2.2% 237.0 9.9% Credit Card 82.8 86.3 -4.0% 83.8 -1.3% Personal Loans 34.8 34.2 1.6% 36.2 -4.0% Payroll Loans 2 56.1 55.3 1.4% 50.3 11.5% Vehicles 24.4 23.3 4.5% 19.4 25.6% Mortgage Loans 62.4 55.7 12.1% 47.2 32.4% Rural Loans 0.0 0.0 3.7% 0.1 -52.6%
Companies - Brazil 1 256.3 253.8 1.0% 221.2 15.8% Working Capital 3 169.6 169.4 0.1% 120.6 40.6% BNDES/Onlending 7.9 8.6 -7.9% 9.8 -18.6% Export / Import Financing 50.2 48.4 3.7% 67.3 -25.4% Vehicles 13.2 12.3 6.6% 9.9 32.5% Mortgage Loans 4.3 4.5 -4.1% 4.6 -5.1% Rural Loans 11.1 10.6 5.1% 9.1 21.4%
Latin America 4 221.2 201.9 9.5% 181.5 21.9% Total without Financial Guarantees Provided 737.9 710.6 3.8% 639.7 15.3%
Financial Guarantees Provided 75.0 68.9 8.9% 70.3 6.8% Total with Financial Guarantees Provided 812.9 779.5 4.3% 710.0 14.5%
Corporate Securities 5 93.4 90.0 3.7% 78.3 19.3% Total Risk 906.4 869.5 4.2% 788.3 15.0%
Additional Information
Credit Portfolio by Product
(1) Includes units abroad ex-Latin America; (2) Includes operations originated by the institution and acquired operations; (3) Also includes Overdraft, Receivables, Hot Money, Leasing, and other; (4) Includes Argentina, Chile, Colombia, Panama, Paraguay and Uruguay; (5) Includes Debentures, CRI and Commercial Paper, Rural Producer Certificate, Letras Financeiras, investment fund quotas and Eurobonds.
116
Additional Information
Credit Portfolio by Currency ¹
(1) Total with financial guarantees provided.
117
224.5
228.3
240.0
232.8
284.8
300.4
301.7
286.1
309.6
384.5
389.3
401.7
417.0
425.2
427.0
458.7
493.3
503.4
609.0
617.6
641.7
649.7
710.0
727.5
760.3
779.5
812.9
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Foreign Currency Local Currency
R$ billion
100122 132
173158
1Q18 1Q19 1Q20 4Q20 1Q21
100121
165187 174
1Q18 1Q19 1Q20 4Q20 1Q21
100128
157 178140
1Q18 1Q19 1Q20 4Q20 1Q21
100 115
198 204 211
1Q18 1Q19 1Q20 4Q20 1Q21
Additional Information
Credit¹ Origination | Brazil
Total Credit² – BrazilBase 100 = 1Q18
118
Credit² - Individuals
Credit² – CorporateCredit² – Very Small, Small and Middle Market
Note: Do not consider origination of Credit Card, Overdraft, Debt Renegotiation and other revolving credits. (1) Average origination per working day in the period, except for private securities issuance. (2) Does not include private securities issuance.
5% 19%-9%-7%
7%
4%
-11%
-21%
Additional Information
Credit Portfolio Breakdown
(1) Includes financial guarantees provided; (2) Industry and Extractivism = Mining (+) Steel and Metallurgy (+) Capital Assets (+) Petrochemical and Chemical (+) Energy and sewage (+) Oil and gas. Consumer Goods = Food and beverage (+) Pharmaceuticals and cosmetics (+) Electronic and IT (+) Clothing and Footwear (+) Wood & Furniture. Vehicles and Transportation = Transportation (+) Vehicles and autoparts. Real Estate and Construction = Real estate agents (+) Construction material (+) Infrastructure work. Agriculture and Related = Agribusiness and fertilizers (+) Sugar and alcohol. Other = Telecommunications (+) Commerce – Other (+) Services – Other (+) Industry – Other (+) Entertainment and Tourism (+) Other.
Companies Credit Portfolio by Business Sector¹,²R$ billion
Credit Concentration ¹Mar-21
119
In R$ billions, end of period 1Q21 4Q20Public Sector 4.6 5.5 -15.9%Private Sector 454.5 433.6 4.8%
Real Estate 33.4 31.6 5.9%Food and beverage 27.4 27.4 0.2%Transportation 26.0 23.3 11.6%Agribusiness and fertilizers 25.1 25.0 0.4%Energy and water treatment 20.9 19.5 7.2%Vehicles and auto parts 19.7 17.7 11.3%Banks and other financial 18.3 19.9 -8.1%Infrastructure work 15.6 15.0 4.1%Petrochemical and chemical 12.2 13.0 -5.5%Steel and metallurgy 11.6 9.7 19.3%Telecommunications 11.4 10.9 5.0%Mining 10.6 11.1 -3.8%Pharmaceutical and cosmetics 10.0 7.6 30.3%Electronic and IT 9.8 9.4 5.1%Capital Assets 9.2 9.8 -5.5%Oil and gas 9.0 8.9 1.0%Construction Material 7.0 6.6 5.5%Entertainment and tourism 6.1 5.9 2.4%Wood & Furniture 5.9 5.1 15.1%Services - Other 57.2 53.5 7.0%Commerce - Other 31.6 29.5 7.3%Industry - Other 11.8 11.3 4.0%Other 64.5 61.9 4.1%
Total 459.1 439.1 4.6%
Δ
Risk % of Total Risk % of Total
Largest Debtor 7.3 0.9 17.3 1.7
10 largest debtors 36.3 4.5 69.7 7.1
20 largest debtors 53.0 6.5 102.9 10.4
50 largest debtors 84.3 10.4 159.6 16.2
100 largest debtors 116.2 14.3 213.2 21.6
Loan, lease and other credit operations
Loan, lease, other credit operations and securities of companies and
financial institutions
40%
16%11%
12%
10%
6%
4% 1%
Other Industry and ExtractivismReal Estate and Construction Consumer GoodsVehicles and Transportation Agriculture and RelatedBanks and other financial institutions Public Sector
Additional Information
Credit Portfolio by Vintage¹
Profile of credit portfolio by origination period:• Older vintages with higher spreads are losing relevance compared to the most recent ones.• 63.1% of total origination was created in the past 12 months.
R$ billion
(1) Does not include financial guarantees provided.
120
34.8% 31.7% 29.8%
12.0% 14.2% 12.5%
8.3% 11.2% 11.6%
7.3% 6.0% 9.3%3.8% 5.0% 4.2%
33.8% 31.9% 32.7%
640 711 738
1Q20 4Q20 1Q21
Actual Quarter (q) q-1 q-2 q-3 q-4 q=<-5
Additional Information
Loan Portfolio Mix Change ¹ (%)
R$ billion
(1) Does not include financial guarantees provided; (2) Includes units abroad ex-Latin America; (3) Excludes Brazil.
Brazil 2
Consolidated
121
18.1 16.6 3.3 11.2 4.7 8.5 7.6 30.0mar/21
32.7
28.2
25.3
26.6
25.9
16.3
18.1
19.4
21.7
23.7
4.2
4.0
4.3
4.2
4.7
15.9
18.3
19.7
18.3
16.0
7.3
7.4
7.8
7.9
6.7
10.9
11.3
11.0
10.3
12.1
12.7
12.6
12.5
11.0
10.8
mar/17
mar/18
mar/19
mar/20
mar/21
Corporate Very Small, Small and Middle Market Vehicles Credit Card
Personal Loans Mortgage Loans Latin America 3 Payroll Loans
Additional Information
Provision for Loan Losses and Cost of Credit
R$ millionProvision for Loan Losses by Segment
Cost of CreditRR$ million
Note: Includes the consolidation of Citibank as of 4Q17.
122
(Provision for Loan Losses + Recovery of Loans Written Off as Losses + Impairment + Discounts Granted)
(*) Average balance of the loan portfolio, considering the last two quarters.
3,550 3,732 3,236 3,534 3,165 3,482 3,688 3,726 4,021 4,210 4,461 4,481
7,149
4,922 5,1624,645 4,219
1,410 619 532 248 393 168
-298 -354 -304 -371 -177
412
2,441
1,845 99
-1,339 -306
432 598 514 701 554 621514 423 489 568 638 1,252
808795
1,076 2,335522
5,392 4,948 4,282 4,483 4,111 4,2713,904 3,796 4,206 4,407 4,922 6,145
10,3987,561 6,337 5,641
4,435
4.5% 4.1% 3.6% 3.7% 3.3% 3.4% 3.0% 2.9% 3.1% 3.2% 3.5% 4.2%
6.8%4.7% 3.8% 3.2% 2.4%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Retail Banking - Brazil Wholesale Banking - Brazil Latin America ex-Brazil Provision for Loan Losses / Loan Portfolio (*) - Annualized
5,281 4,474 3,990 4,257 3,788 3,601 3,263 3,415 3,804 4,044 4,495 5,81110,087
7,770 6,319 6,0334,111
3.6% 3.0% 2.7% 2.9% 2.5% 2.3% 2.0% 2.1% 2.3% 2.4% 2.6%3.3%
5.3%
3.9%3.0% 2.8%
1.9%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21Cost of Credit Cost of Credit / Total Risk (*) - Annualized
(*) Average balance of the loan portfolio with financial guarantees provided and corporate securities, considering the last two quarters.
Allocation of Total Allowance by Type of Risk - ConsolidatedR$ million
12,978
10,618
10,563
11,471
11,363
10,911
22,634
30,176
29,770
47,083
52,158
51,244
Mar-20
Dec-20
Mar-21
15,87815,32611,450
3,2604,745
5,962
10,63210,104
5,222
29,77030,176
22,634
Mar-21Dec-20Mar-20
5,4652,588
1,423
742
63
630
Renegotiations
Overdue
Provision < 100%
5,352
315
1,238
2,803
206
650
Fully Provisioned
87%
13%65%
35%
123
Additional Information
Allowance for Loan Losses by Risk– Consolidated
¹ Includes units abroad ex-Latin America.² Excludes Brazil. Latin America ²Wholesale - Brazil ¹Retail - Brazil ¹
Potential LossRenegotiations and overdue loansOverdue operations according to the Brazilian Central Bank
8,1568,28510,272
520743790
1,8871,5911,915 10,56310,618
12,978
Mar-21Dec-20Mar-20
6,2076,6266,273
2,6512,8573,5882,0531,8801,611
10,91111,36311,471
Mar-21Dec-20Mar-20
4.03.3 3.5 2.9 3.4 3.1 3.5
2.43.0
2.42.8
2.1 1.90.8
1.50.7 1.2 0.7 0.9 0.7 0.6 0.5
3.5 2.4 2.31.6 1.7 1.6 1.9
1.0 1.1 1.8 1.6
Mar-17 Dec-17 Mar-18 Dec-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21Individuals Corporate Very Small, Small and Middle Market Companies
5.34.9 4.6 4.4 4.4
4.8 5.1 5.04.3 4.2 3.9
1.61.0
1.8 1.82.7
0.51.1
0.7
0.5 0.4 0.4
5.34.4 4.1
3.02.7 2.3 2.3 2.0
1.4 1.72.5
Mar-17 Dec-17 Mar-18 Dec-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21Individuals Corporate Very Small, Small and Middle Market Companies
3.22.7 2.7
2.3 2.5
2.3 2.61.7
1.9
1.8 2.0
3.3
2.7 2.6 2.3 2.42.4
2.41.7
2.0
1.8
2.02.7
2.9 3.12.3 2.6
2.3
3.0
1.9
1.7
1.92.0
Mar-17 Dec-17 Mar-18 Dec-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21Total Brazil ¹ Latin America ²
3.4 3.1 3.1 2.9 3.0 3.0 3.12.7 2.2 2.3 2.3
4.23.7 3.7 3.5 3.7 3.4 3.5
3.22.6 2.7 2.7
1.3 1.5 1.6 1.4 1.41.9 2.0
1.4 1.2 1.3 1.5
Mar-17 Dec-17 Mar-18 Dec-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21Total Brazil ¹ Latin America ²
Additional Information
Non Performing Loans Ratios
Note: Considers Citibank's consolidation as of 4Q17. (1) Includes units abroad ex-Latin America. (2) Excludes Brazil.
90-day NPL Ratio| Consolidated (%) 15 to 90-day NPL Ratio | Consolidated - %
90-day NPL Ratio | Brazil ¹ (%) 15 to 90-day NPL Ratio | Brazil ¹ - %
124
Additional Information
NPL Creation
R$ billion
125
5.14.7
5.3 5.0
7.3
3.32.8
5.76.1
3.63.9
4.3 4.44.9
3.2
2.3
5.14.5
1.20.4
0.1-0.5
1.1
-0.20.2 0.0
0.30.4 0.4
0.9 1.1 1.2
0.3 0.3 0.61.3
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Total Retail Banking - Brazil Whosale Banking - Brazil Latin America ex-Brazil
Additional Information
Provision for Loan Losses and NPL Creation by Segment Retail Banking - Brazil
Wholesale Banking - Brazil
Latin America ex–Brazil
Total
R$ billion
126
R$ billion
R$ billion
R$ billion
-0.3 -0.4 -0.20.4
2.4 1.8 0.1-1.3 -0.3
1.2 0.4 0.1-0.5
1.1 -0.2 0.2
0.0
0.3-26% -87% -119% -89%
215%
-982%
59%
3108%
-95%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
0.5 0.6 0.6 1.3 0.8 0.8 1.1 2.3 0.50.4 0.4 0.9 1.1 1.2 0.3 0.3 0.6 1.3
136% 138% 75% 115% 66%316% 362% 367%
41%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
4.2 4.4 4.9 6.1 10.4 7.6 6.3 5.6 4.45.1 4.7 5.3 5.0 7.3 3.3 2.8 5.7 6.1
83% 93% 93% 122%143% 230% 226%
99% 73%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Provision for Loan Losses Provision for Loan Losses / NPL CreationNPL Creation
4.0 4.2 4.5 4.57.1
4.9 5.2 4.6 4.23.6 3.9 4.3 4.4 4.9 3.2 2.3 5.1 4.5
113% 108% 104% 102%145% 153%
221%
91% 95%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
3108%
Additional Information
Insurance, Pension Plan and Premium Bonds
1
Result from Insurance, Pension Plan and Premium Bonds
127
R$ million
(1) Operating Revenues including the Result from Insurance, Pension Plan and Premium Bonds Operations net of retained claims and selling expenses.
In R$ millions 1Q21 4Q20 Δ 1T20 Δ Earned Premiums 1,131 1,123 0.7% 1,151 -1.7% Revenues from Pension Plan (14) (0) - (5) 190.2% Revenues from Premium Bonds 86 90 -4.0% 107 -19.8% Managerial Financial Margin 16 (96) - (34) - Commissions and Fees 512 537 -4.7% 549 -6.8% Earnings of Affiliates 98 85 15.4% 117 -16.7%
Revenues from Insurance, Pension Plan and Premium Bonds 1,829 1,738 5.2% 1,887 -3.0% Retained Claims (356) (340) 4.7% (329) 8.1% Insurance Selling Expenses (4) (6) -29.4% (5) -8.2%
Result from Insurance, Pension Plan and Premium Bonds 1,469 1,392 5.5% 1,553 -5.4%
Recurring Managerial Result 576 474 21.4% 612 -5.9%
1,607 1,675 1,5751,706
1,553 1,5081,629
1,392 1,469
5.8% 5.7%5.3% 5.4% 5.4% 5.4%
5.8%
4.8% 4.9%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Result from Insurance, Pension Plan and Premium Bonds Operations Result/Operating Revenues
Additional Information
Balance Sheet – Assets and Liabilities
R$ millionAssets 1Q21 4Q20 Δ∋ 1Q20 Δ∋Current and Long-term Assets 2,087,728 2,076,112 0.6% 1,944,900 7.3%
Cash and Cash Equivalents 39,369 46,224 -14.8% 71,881 -45.2%
Short-term Interbank Investments 252,251 294,486 -14.3% 282,565 -10.7%
Securities and Derivative Financial Instruments 659,818 635,947 3.8% 524,349 25.8%
Interbank and Interbranch Accounts 74,775 76,124 -1.8% 81,637 -8.4%
Loan, Lease and Other Loan Operations 137,577 134,640 2.2% 107,733 27.7%
(Allowance for Loan Losses) 687,447 659,149 4.3% 593,459 15.8%
Other Assets 236,492 229,542 3.0% 283,277 -16.5%
Permanent Assets 37,089 36,474 1.7% 37,598 -1.4%
Total Assets 2,124,817 2,112,586 0.6% 1,982,498 7.2%
Liabilities 1Q21 4Q20 Δ∋ 1Q20 Δ∋Current and Long-Term Liabilities 1,969,123 1,961,718 0.4% 1,843,947 6.8%
Deposits 821,379 809,010 1.5% 606,749 35.4%
Deposits Received under Securities Repurchase Agreements 261,774 280,541 -6.7% 313,540 -16.5%
Fund from Acceptances and Issue of Securities 140,351 136,638 2.7% 154,146 -8.9%
Interbank and Interbranch Accounts 61,613 59,147 4.2% 52,075 18.3%
Borrowings and Onlendings 88,393 83,200 6.2% 94,909 -6.9%
Technical Provisions for Insurance 73,615 79,599 -7.5% 87,909 -16.3%
Provisions 17,137 16,250 5.5% 16,704 2.6%
Allowance for Financial Guarantees Provided 802 754 6.4% 843 -4.9%
Bonds 220,441 223,469 -1.4% 214,565 2.7%
Other Liabilities 283,619 273,110 3.8% 302,507 -6.2%
Deferred Income 3,346 3,163 5.8% 3,286 1.8%
Minority Interest in Subsidiaries 11,979 11,112 7.8% 11,641 2.9%
Stockholders' Equity 140,369 136,593 2.8% 123,624 13.5%
Total Liabilities and Equity 2,124,817 2,112,586 0.6% 1,982,498 7.2% 128
Additional Information
Funding
• Loan Portfolio mainly funded by domestic client funding
• Diversified funding base
(1) Includes funds from Real Estate, Mortgage, Financial, Credit and Similar Notes. (2) Includes installments of subordinated debt that are not included in the Tier II Referential Equity. (3) Includes Certificates of Banks Deposits (CDB), Certificates of Agribusiness Receivables (CRA), Certificates of Real Estate Receivables (CRI), Debentures, Agricultural Credit Bonds (LCA) and Real Estate Credit Bonds (LCI).
129
In R$ millions, end of period 1Q21 4Q20 Δ∋ 1Q20 Δ∋
Funding from Clients (A) 891,298 881,561 1.1% 700,779 27.2%
Demand Deposits 141,657 134,805 5.1% 101,711 39.3%
Savings Deposits 183,265 179,470 2.1% 149,600 22.5%
Time Deposits 491,630 491,234 0.1% 350,704 40.2%
Debentures (Linked to Repurchase Agreements and Third Parties’ Operations) 1,187 1,985 -40.2% 4,166 -71.5%
Funds from Bills(1)
and Structured Operations Certificates 73,559 74,067 -0.7% 94,598 -22.2%
Other Funding (B) 197,722 187,366 5.5% 199,400 -0.8%
Onlending 10,803 11,456 -5.7% 10,648 1.5%
Borrowings 77,590 71,744 8.1% 84,261 -7.9%
Securities Obligations Abroad 66,793 62,571 6.7% 59,548 12.2%
Other(2) 42,537 41,594 2.3% 44,943 -5.4%
Portfolio Managed and Investment Funds(3) (C) 1,444,898 1,423,641 1.5% 1,302,887 10.9%
Total (A) + (B) + (C) 2,533,918 2,492,567 1.7% 2,203,065 15.0%
81.2% 75.6% 76.8% 76.7% 77.5%
71.1% 65.1% 66.3% 66.5% 67.8%
9001,010 1,039 1,069 1,089
788870 897 927 952
640 657 689 711 738
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
39.7%
43.4%
9.0%
7.9%
Over to 365
0-30
31-180181-365
Ratio between Loan Portfolio and Funding % Funding (Maturity Breakdown)
130
Additional Information
Funding
R$ billion
In days
Portfolio / Funding from clients and other funding Portfolio / Funding from clients and other funding net of reserve and cash
Loan portfolioFunding from clients and other funding
Loan portfolioFunding from clients and other funding net of reserve required by BACEN and Cash
1Q21 Institutional Presentation
Itaú Unibanco Holding S.A.
Sao Paulo, May 4th, 2021