1 st Quarter 2013 Earnings Results

Transcription

1 Conference Call 1 st Quarter 2013 Earnings Results Alfredo Egydio Setubal Executive Vice-President and Investor Relations Officer May

2 Highlights Recurring Net Income of R$3.5 billion, with a 0.3% increase in the quarter and Recurring ROE of 19.1%. Managerial financial margin totaled R$11.5 billion in the 1Q13: Decrease of R$1.1 billion compared to the 4Q12, due to the decrease of R$278 million in the margin with market and of R$803 million in the margin with clients (R$255 million due to fewer calendar days in the quarter). Compared to the 1Q12, the margin decreased by R$1.7 billion, basically due to the decrease of R$ 361 million in the financial margin with market, the reduction of the Selic rate (decrease of R$507 million), the reduction of cash from the acquisition of minority interest in Redecard (effect of R$289 million) and the changes in the mix of products (impact of R$365 million). Improvement in credit quality: The 90-day NPL ratio improved 30 basis points compared to the 4Q12 and 60 basis points in 12 months, consolidating the reduction trend started in late 2012, despite of the unfavorable seasonality traditionally present in the first quarter. The Allowance for Loan and Losses decreased 14.0% in the quarter and 20.5% compared to the 1Q12, consistent with the decrease in the NPL ratio. The Financial Margin of Credit, net of Expenses for Allowance for Loan Losses, has shown relative stability in the last quarters and reached R$5.8 billion in the 1Q13, an increase of 1.6% from the 1Q12. Banking Service Fees remained at the level of R$5.1 billion that had been reached in the 4Q12, despite the seasonality of the period, which benefits revenues at the end of the year. Compared to the 1Q12, banking service fees increased 18.8%. Results from Insurance, that includes Pension Plans and Capitalization, totaled R$1.4 billion in the 1Q13, an increase of 5.9% from the 1Q12. Non-Interest Expenses decreased R$211 million compared to the 4Q12, due to the reduction in Administrative and Operating Expenses. The increase in 12 months reached 4.1%, lower than the inflation rate in the period. In the 1Q13, the Risk-adjusted Efficiency Ratio decreased 60 basis points compared to the previous quarter.

3 Results 1Q13 4Q12 1Q12 1Q13-4Q12 Variation 1Q13-1Q12 Operating Revenues 18,817 19,932 19, % -3.6% Financial Margin with Clients 10,929 11,732 12, % -10.8% Financial Margin with Market % -37.7% Banking Service Fees ¹ 5,122 5,149 4, % 18.8% Income from Insurance ² 2,169 2,176 1, % 9.0% Loan Losses and Retained Claims (4,420) (5,027) (5,463) -12.1% -19.1% Expense for Allowance for Loan Losses (4,939) (5,741) (6,210) -14.0% -20.5% Recovery of Credits Written Off as Losses 1,086 1,210 1, % -10.4% Retained Claims (567) (496) (465) 14.3% 22.0% Other Operating Expenses (9,568) (9,898) (9,228) -3.3% 3.7% Non-interest Expenses (8,280) (8,491) (7,956) -2.5% 4.1% Tax Expenses and Others ³ (1,288) (1,407) (1,272) -8.4% 1.2% Income before Tax and Profit Sharing 4,828 5,008 4, % 0.0% Income Tax and Social Contribution (1,295) (1,459) (1,302) -11.2% -0.5% Minority Interests in Subsidiaries (21) (47) % % Recurring Net Income 3,512 3,502 3, % -0.9% Non-recurring Events (40) (10) (118) - - Net Income 3,472 3,492 3, % 1.4% ¹ Banking Service Fee considers Income from Banking Charges ² Income from Insurance includes the Results from Insurance, Pension Plan and Capitalization Operations before Retained Claims and Selling Expenses. ³ Includes Tax Expenses (ISS, PIS, COFINS and other) and selling expenses with insurance.

4 Banking Operations & Insurance Operations Consolidated Banking Operations (without excess capital) 1Q13 Insurance Operations 4 Excess Capital Operating Revenues 19,635 16,501 2, Managerial Financial Margin 11,526 11, Banking Service Fees ¹ 5,122 5, Income from Insurance ² 2, ,968 - Loan and Retained Claim Losses (4,812) (3,861) (951) - Result from Loan and Lease Losses (3,854) (3,854) - - Retained Claims (958) (8) (951) - Other Operating Expenses (9,965) (8,798) (1,159) (8) Non-interest Expenses (8,509) (7,976) (533) - Tax Expenses and Others 3 (1,456) (822) (626) (8) Income before Tax and Profit Sharing 4,857 3, Income Tax and Social Contribution (1,313) (950) (299) (63) Profit Sharing and Minoritary Interests (33) (20) (13) - Recurring Net Income 3,512 2, ROE / RAROC 19.1% 20.1% 36.6% 3.7% Risk-Adjusted Efficiency Ratio 73.8% 75.3% 70.1% - ¹ Banking Service Fees considers Income from Banking Charges ² Income from Insurance includes the Results from Insurance, Pension Plan and Capitalization Operations before Retained Claims and Selling Expenses. ³ Includes Tax Expenses (ISS, PIS, COFINS and other) and selling expenses with insurance. 4 Considers the proportional result of our interest in Porto Seguro.

5 Financial Margins 12.7% 12.8% 11.9% 12.0% 11.2% 11.7% 8.0% 8.1% 7.5% 7.9% 12.7% 11.0% 10.7% 7.8% 7.4% 13.4% 13.4% 12.6% 12.3% 11.4% 9.8% 11.3% 11.6% 10.8% 9.8% 9.1% 8.3% 7.3% 7.4% 7.6% 6.9% 6.9% 7.0% 6.9% 6.9% 6.8% 6.5% 6.5% 6.0% 5.9% 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Gross Credit Spread NIM with clients Net Credit Spread Risk adjusted NIM with clients CDI

6 Variation of Financial Margin Margin Evolution (Quarter) 11, (255) (73) (322) (286) (78) 10,929 4Q12 Volume Calendar Days Products Mix Mix of Clients and Spreads Selic and Other Equity in Earnings of Affiliates 1Q13 Evolution of Loan Portfolio Mix ¹ % Mar/ Dec/ Mar/ Corporate Very Small, Small and Middle Market Vehicles Credit Card Personal Loans Mortgage Loans Argentina/Chile/Uruguay/Paraguay Ow n Payroll Loans ¹ Excluding endorsements and sureties

7 Financial Margin of Credit and Allowance for Loan Losses The Financial Margin of Credit, net of Expenses for Allowance for Loan Losses, has shown relative stability in the last quarters, as a result of the adoption of a policy of stricter selectivity in origination. 8,918 9,108 9,624 10,027 10,573 10,902 10,504 10,344 9,681 3,173 3,715 3,657 3,880 4,839 4,862 4,781 4,531 3,854 5,745 5,394 5,967 6,148 5,734 6,040 5,724 5,814 5,827 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Expenses for Allowance for Loan Losses net of Recovery of Credits Written Off as Losses Financial Margin of Credit (-) Expenses for Allowance for Loan Losses net of Recovery of Credits Written Off as Losses

8 Financial Margin with Market , , , Average , Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 0 Sale of Cetip/ BM&FBovespa Shares Financial Margin with Market (ex-sale of Shares) Average Financial Margin with Market (ex-sale of Shares)

9 Banking Service Fees and Result from Insurance* Variation 1Q13 4Q12 1Q12 1Q13-1Q13-4Q12 1Q12 Asset Management % 14.5% Current Account Services % 30.4% Loan Operations and Guarantees Provided % -8.2% Collection Services % -1.5% Credit Cards 2,087 2,037 1, % 36.1% Orbitall's Processing Service % -80.2% Other % 3.7% Banking Service Fees Income¹ 5,122 5,149 4, % 18.8% Result from Insurance, Net ² 1,354 1,402 1, % 5.9% Total 6,476 6,551 5, % 15.9% ¹ Desconsidering the impact of Orbitall s Services, Banking Service Fees Income would have increased 21.5% over the first quarter of Even if the effect of the proportional increase of Redecard s contribution were disregarded, the increase would have been of 8.8%. ² Income from insurance, pension plan and capitalization operations (-) Retained claims (-) Selling expenses with insurance, pension plan and capitalization. 4,960 5,227 5,530 5,795 5,590 5,568 5,532 6,551 6, % 29.3% 29.1% 30.2% 28.6% 28.1% 28.8% 32.9% 34.4% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Banking Service Fees + Result from Insurance, Net (Banking Service Fees + Result from Insurance, Net)/Operating Revenues * Banking Service Fees also considers Income from Banking Charges and the Result from Insurance includes Insurance, Pension Plan and Capitalization after Retained Claims and Selling Expenses..

10 Insurance Operations* Net Income Evolution 35.5% 33.0% 33.2% 25.5% 35.2% 39.3% 41.0% 33.3% 38.4% 3, % 3, % 3,940 3,746 3,544 3,585 3,412 3,502 3, % 16.4% 15.2% 13.8% 13.7% 16.0% 15.5% 88.6% 86.9% 85.7% 83.6% 84.8% 86.2% 86.3% 84.0% 84.5% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Recurring Net Income Banking Operations Recurring Net Income Insurance Operations * Claims Ratio (does not include our 30% interest in Porto Seguro) Net Income of Insurance Composition * 1Q13 D Q Combined Ratio Composition¹ 1Q13 D Q Earned Premiums Insurance, Contribution Pension Plans and Capitalization Service Fees Retained Claims Selling Expenses Technical Result Financial Margin Non-Interest Expenses Others¹ Income Before Income Tax and Social Contribution Income Tax/Social Contribution and Profit Sharing Recurring Net Income , , % 3.3% 8.3% -7.4% 2.9% -28.2% -13.3% 84.4% - 0.2% 4.4% -2.7% Insurance Claims Ratio Selling Expenses/Earned Premiums Administrative Expenses and Others/Earned Premiums Combined Ratio 38.4% 28.1% 15.9% 82.4% 500 bps -370 bps 150 bps 280 bps ¹ Others: Other Operating Income/Expenses, Tax Expenses and Non-operating Income ¹ Does not include our 30% interest in Porto Seguro and our health insurance operation. *Considers operations from Insurance, Pension Plan and Capitalization

11 Loan Ratios Expenses for Provision for Loan Losses 1.79% 1.69% 1.74% 1.64% 1.71% 1.57% 1.58% 1.50% 1.44% 1.42% 1.38% 1.23% 1.25% 1.09% 1.16% 1.17% (6.2) (6.1) (6.1) (5.7) (5.2) (5.6) (5.1) (4.5) (5.0) (5.0) (4.9) (3.3) (3.8) (3.8) (4.0) (4.5) R$ billion 1.34% 1.04% (4.9) (3.9) Expenses for provision for loans losses / Credit portfolio 1 Result from Loan and Lease Losses / Credit portfolio 1 Expenses for provision for loan losses Result from Loan and Lease Losses 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 ¹ Average balance of the Loan Portfolio of the two previous quarters. Balance of Allowance for Loan Losses R$ billion Complementary portion of the provision expected loss model Allowance for loan losses Loan Portfolio Rating A G ¹ Allowance for loan losses Loan Portfolio Rating H ¹ Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 ¹ Resolution 2,682/99 CMN

12 Loan Ratios 90-day NPL Ratio 8.1% 8.0% 7.4% 5.4% 3.1% 5.9% 5.6% 4.8% 4.1% 4.0% 6.7% 6.3% 6.0% 5.8% 5.7% 7.3% 7.5% 5.8% 6.3% 6.6% 6.7% 6.9% 6.7% 4.2% 4.2% 4.5% 4.7% 4.9% 5.1% 5.2% 5.1% 4.6% 4.8% 4.5% 4.2% 3.3% 3.2% 2.8% 2.9% 3.1% 3.5% 3.5% 3.5% 3.7% 3.5% 3.3% 3.2% 2.9% Individuals Total Companies Jun/09 Sep/09 Dec/09 Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 90-day Coverage Ratio 173% 166% 156% 153% 158% 161% 148% 147% 149% 39% 35% 32% 30% 29% 30% 29% 27% 27% 42% 41% 37% 35% 32% 32% 33% 39% 39% 91% 89% 87% 88% 87% 87% 89% 90% 92% Specific Allowance Coverage Generic Allowance Coverage Complementary Allowance Coverage Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13

13 Loan Ratios 15 to 90-day NPL Ratio 9.3% 5.9% 8.6% 7.7% 8.1% 7.5% 6.7% 5.2% 5.1% 4.7% 4.5% 4.2% 7.9% 7.5% 7.2% 7.2% 7.5% 6.9% 7.2% 6.5% 6.3% 6.7% 3.9% 4.7% 4.5% 4.3% 4.4% 4.8% 4.5% 4.2% 4.0% 3.6% 3.1% 2.3% 2.1% 2.5% 2.0% 2.2% 1.7% 2.4% 2.4% 2.1% 2.3% 2.3% 2.2% 1.8% 1.5% 1.9% Individuals Total Companies Jun/09 Sep/09 Dec/09 Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 NPL Creation and Write Off R$ billion % 1.9% 1.7% 1.6% 1.2% 1.2% 1.4% 1.5% 1.6% 1.7% 1.6% 1.9% 1.6% 1.5% 1.4% 1.4% Write Off NPL Creation NPL Creation/Loan Portfolio¹ Jun/09 Sep/09 Dec/09 Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 ¹ Average balance of the Loan Portfolio of the two previous quarters

14 Non Interest Expenses Variation 1Q13 4Q12 1Q12 1Q13-1Q13-4Q12 1Q12 Personnel Expenses (3,720) (3,430) (3,402) 8.5% 9.3% Adm inistrative Expenses (3,429) (3,699) (3,392) -7.3% 1.1% Personnel Expenses and Adm inistrative (7,150) (7,129) (6,794) 0.3% 5.2% Operating Expenses¹ (1,011) (1,291) (1,064) -21.7% -5.0% Other Tax Expenses² (119) (71) (97) 67.6% 22.8% Non Interest Expenses³ (8,280) (8,491) (7,956) -2.5% 4.1% ¹ Considers expenses with provision for contingencies, credit card selling, claims and other. ² Includes IPTU, IPVA, IOF and other. Does not include PIS, Cofins and ISS. ³ If the effect of proportional consolidation of the results of Redecard in 2012 were excluded, the Non-Interest Expenses would have increased 2.1% compared to the 1Q % 78.2% 66.3% 66.2% 67.0% 69.6% 70.3% 67.9% 70.0%, (7,479) (7,895) (8,253) (8,327) (7,956) (8,205) (8,491) (7,898) (8,280) 13% 14% 15% 14% 15% 14% 12% 16% 14% 43% 43% 43% 46% 43% 44% 44% 44% 41% 44% 43% 43% 40% 43% 42% 44% 40% 45% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Personnel Expenses Other Administrative Expenses Other Operating and Tax Expenses (Banking Service Fees + Result from Insurance*) / Non-interest Expenses * Banking Service Fees also considers Income from Banking Charges and the Result from Insurance includes Insurance, Pension Plan and Capitalization, after retained claims and selling expenses.

15 Efficiency Ratio and Risk-Adjusted Efficiency Ratio Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Quarter E.R. (%) Quarter R.A.E.R. (%) E.R. Cumulative figure of the last 12 months (%) R.A.E.R. Cumulative figure of the last 12 months (%)

16 Highlights Assets Stockholders Equity ¹ % + 1.4% + 2.7% + 0.3% 896,842 1,014,425 1,028,707 72,484 74,220 74,416 Mar 31, 12 Dec 31, 12 Mar 31, 13 Mar 31, 12 Dec 31, 12 Mar 31, 13 ¹ In the fourth quarter of 2012, the acquisition of the minorities interest in Redecard was accounted for as a capital transaction because it did not represent a change in the control of the company, and the difference between the value paid and the value corresponding to minority shareholders interest net of tax effects impacted our equity in R$7,360 million on December 31, 2012.

17 Loans by Type of Client / Product Mar 31, 13 Dec 31,12 Mar 31, 12 Mar 31,13 - Dec 31,12 Variation Mar 31,13 - Mar 31, 12 Individuals 152, , , % 2.4% Credit Card 41,362 40,614 36, % 13.1% Personal Loans 43,690 40,508 38, % 12.1% Vehicles 48,532 51,220 59, % -17.8% Mortgage Loans 19,165 18,047 14, % 31.3% Companies 250, , , % 9.2% Corporate 163, , , % 17.2% Very Small, Small and Middle Market 86,946 88,959 89, % -3.4% Argentina/Chile/Uruguay/Paraguay 30,860 29,293 21, % 42.1% Total with Endorsements and Sureties 434, , , % 8.4% Corporate Private Securities 21,924 22,652 17, % 28.5% Total with Endorsements, Sureties and Private Securities 456, , , % 9.2% Total with Endorsements, Sureties and Private Securities (ex-vehicles) 407, , , % 13.7% Note: The payroll loan portfolio acquired from BMG is accounted as personal loans and, for comparison purposes, the previous periods were reclassified. The payroll loan portfolio acquired from other banks is classified as corporate risk.

18 Funding and Assets Under Management Variation Mar 31, 13 Dec 31,12 Mar 31, 12 Mar 31,13 - Mar 31,13 - Dec 31,12 Mar 31, 12 Demand Deposits 33,718 34,916 26, % 25.3% Savings Deposits 87,072 83,451 68, % 27.1% Time Deposits 109, , , % -14.2% Debentures (Repurchase Agreements) 122, , , % 10.7% Funds from Bills ¹ 36,151 37,539 37, % -3.1% (1) Total - Funding from Institucional Clients and Account Holders (*) 388, , , % 4.9% Onlending 38,826 36,048 34, % 11.1% (2) Total Funding from Institutional & Account Holders 427, , , % 5.4% Assets Under Administration ² 581, , , % 10.9% Technical Provisions for Insurance, Pension Plan and Capitalization 96,624 93,210 77, % 24.1% (3) Total Clients 1,105,945 1,093,576 1,008, % 9.7% Deposits from Banks 8,444 7,600 8, % -1.5% Funds from Acceptance and Issuance of Securities Abroad 16,069 15,999 10, % 46.7% Total Funds from Clients + Banks 1,130,458 1,117,175 1,027, % 10.0% Repurchase Agreements ³ 174, , , % 69.3% Borrow ings 24,065 23,077 17, % 40.4% Foreign Exchange Portfolio 40,634 31,104 49, % -17.7% Subordinated Debt 52,031 54,372 44, % 15.7% Collection and payment of Taxes and Contributions 4, , % -16.1% Free Assets 4 62,735 61,910 62, % 0.2% Free Assets and Other 359, , , % 26.9% Total Funds (Free, Raised and Managed Assets) 1,489,664 1,449,203 1,310, % 13.6% (*) Funds from Institutional Clients totaled R$23,339 million, which corresponds to 6.0% of the total raised with Account Holders and Institutional Clients. ¹ It includes funds from Real Estate, Mortgage, Financial, Credit and Similar Notes. ² In December 2012, we began consolidating the exclusive investment funds for the implementation of consolidated subsidiaries. ³ It does not include own issued debentures, classified as funding. 4 Stockholders Equity + Minority Interests - Permanent Assets.

19 Ratio between Loan Portfolio and Funding R$ billion 102.9% 104.1% 100.5% 95.5% 96.7% 98.0% 93.6% 94.1% 90.1% 75.9% 76.6% 75.2% 71.9% 75.9% 76.8% 75.9% 73.9% 76.9% - 2.9% + 1.4% Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Funding¹ Reserve Requirements and Cash Loan Portfolio Loan Portfolio / Funding (%) Loan Portfolio / Gross Funding² (%) ¹ Includes resources obtained from account holders and institutional clients, onlending, foreign borrowings and securities, borrowings and subordinated debts that are not included in TIER II Reference Equity. Considers the deductions of reserve requirements, cash and cash equivalents. ² Considers gross funding (disregarding the deductions of reserve requirements, cash and cash equivalents).

20 BIS Ratio Evolution of BIS Ratio and Tier I (Economic Financial Consolidated) 17.7% 16.7% 16.1% 12.5% 11.7% 10.9% Mar/12 Dec/12 Mar/13 BIS Tier I Quarter Evolution RE RWE BIS Ratio December, % Subordinated Debt approved % Net Income for the period % Capital Transaction (Aquisition of minorities' interests Redecard) % Asset Valuation Adjustment (AFS) % Interest on Net Equit and Dividends % Other changes in referential equity % Changes in RWE % March, % RE= Referential Equity RWE = Risk Weighted Exposure 1 Net income considered in the Economic Financial Consolidated R$ billion If the remaining realization of assets and the complementary allowance for loan losses were considered, the ratio would have been 18.7%. Note: Based on the financial conglomerate concept ( consolidado operacional ), the BIS ratio reached 18.9% on March 31, 2013.

21 Basel III Estimated impacts from full implementation Total Capital Core Capital Common Equity Tier I 17.7% 17.2% 15.8% Regulatory Capital Required Regulatory Capital Required % 11.0% 0-2.5% 11.8% 11.1% 9.9% % 2.5% 0-2.5% 4.5% 2.5% 8.0% 4.5% Rules 2013, Mar Rules 2013, Oct Rules 2019, Dec Until 2015, Dec 2019, Dec * Rules 2013, Mar Rules 2013, Oct Rules 2019, Dec Until 2015, Dec 2019, Dec In March 2013, the Brazilian Central Bank published the rules for Basel III in Brazil, aiming to ensure adequate minimum capital levels for financial institutions through the deduction of prudential adjustments from the capital base and the creation of stiffer clauses for capital eligible debts. Additionally, the minimum capital required for credit risk coverage calculation was changed. Part of the rules became effective on the date of the announcement (with positive impacts on the ratio) and another part will become effective in October, 2013 (with negative impact on the ratio). Itaú Unibanco maintains a confortable capital ratio position, both regarding its Total Capital ratio (Tier I + Tier II) and its Core Capital ratio, even anticipating all impacts of the new rule that will occur gradually until Capital Buffers *Represents BIS II Level I Note: Capital ratios were calculated for the Economic Financial Consolidated of Itaú Unibanco Holding

22 Recurring ROE 23.3% 22.3% 22.6% 22.3% 21.4% 21.1% 20.0% 19.4% 19.1% 23.4% 20.4% 23.5% 21.8% 20.0% 19.4% 18.5% 19.3% 19.1% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Recurring Return on Average Equity (quarterly) Recurring Return on Average Equity (12 month moving average)

23 Market Capitalization and Average Daily Trading Volume R$ billion (1) 874 Average Daily Trading Volume Mar/13 Market Capitalization (R$ billion) NYSE (ADR) BM&FBOVESPA (Non-voting + Common) (1) As of March 28, 2012, Itaú Unibanco was the 15 th largest bank in the world in terms of market capitalization (Source: Bloomberg)

24 Expectations for 2013 Expectations 2013 Total Credit Portfolio Growth of 11% to 14% Expenses for Provision for Loan Losses Between R$ 19 billion and R$ 22 billion Banking Service Fees and Result of Insurance ² Growth of 15% to 18% ¹ Non-Interest Expenses Growth of 4% to 6% Risk-Adjusted Efficiency Ratio Improvement of 200 to 400 basis points ¹The expectation regarding Banking Service Fees for 2013 was restated from between 11% and 14% to between 15% to 18%, due to the reclassification of the revenues from Redecard, in accordance with Itaú Unibanco s proportional interest in the company. ² Banking Service Fees (+) Income from insurance, pension plan and capitalization operations (-) Retained claims (-) Selling expenses with insurance, pension plan and capitalization

25 Conference Call 1 st Quarter 2013 Earnings Results Alfredo Egydio Setubal Executive Vice-President and Investor Relations Officer May