about 3 rd Q/09 Earnings Results

Transcription

1 Conference Call about 3 rd Q/09 Earnings Results Alfredo Egydio Setubal Investor Relations Officer November 4 th,

2 Highlights 1. Earnings: 3 rd Q/09: Recurring Net Income of R$2,687 million, an increase of 10.6% compared to previous quarter; annualized recurring ROE of 22.4%. 3 rd Q/09: Net Income of R$2,268 million; annualized ROE of 18.9%. 2. Extraordinary Items : Negative impact in net earnings of R$419 million, mainly due to the amendment in Itaú Unibanco association with CBD. 3. Additional Provision: During the quarter, the amount of R$373 million of the additional provision was used. The balance of additional provision stood at R$6,104 million at the end of the quarter. 4. NPL ratio over 90 and NPL ratio (*): The NPL ratio over 90 days and the NPL ratio (60 days) reached 5.9% and 7.0%, respectively, at the end of the period, a 50 bps and 30 bps change compared to the prior quarter, with a clear improvement tendency. 5. BIS Ratio: The BIS ratio reduced 20 bps to 16.3% in the third quarter. During the period, the portion of operating risk in the ratio increased from 50% to 80%, pursuant to the Brazilian Central Bank Circular-Letter 3,383. Such change generated a 30 basis point impact on the Basel Ratio. (*) Credits overdue more than 60 days, which are not accrued. 2

3 Highlights R$ Million 3 rd Q/09 2 nd Q/09 Variation Jan-Sep/09 Jan-Sep/08 Variation Net Income 2,268 2, % 6,854 8, % Recurring Net Income 2,687 2, % 7,677 8, % Earnings per Share (R$) % % Recurring Earnings per Share (R$) % % Market Capitalization 161, , % 161, , % ROE (Average Equity) Annualized 18.9% 22.3% -342 bps 19.8% 25.5% -570 bps Recurring ROE (Average Equity) Annualized 22.4% 21.1% 130 bps 22.2% 25.9% -370 bps BIS Ratio 16.3% 16.5% -20 bps 16.3% 14.7% 161 bps Efficiency Ratio 41.1% 42.7% -162 bps 42.0% 44.5% -252 bps 09/30/09 06/30/09 09/30/08 09/30/09 x 09/30/09 x 06/30/09 09/30/08 Total Assets 612, , , % 6.0% Retail Loan Portfolio (*) 167, , , % 10.1% Deposits + Debentures + Borrowings and Onlending and Securities (**) 264, , , % 9.9% Stockholders' Equity 48,862 47,269 44, % 9.8% (*) () Includes Credit Card, Personal Loans, Vehicles, Micro, Small and Middle Market, Rural Loans and Mortgage g Loans. The total loan portfolio reached R$ 268,693 million in September 30, 2009, an increase of 1.0% from 06/30/09 and 5.5% from 09/30/08. Includes endorsements and sureties (**) Net of Reserve Requirements First nine months of 2008 data reflect the sum of results and balances separately posted by Itaú and Unibanco. For comparison purposes, we have adjusted the accounting statements (income statement and balance sheet) for periods before the first quarter of 2009, with the full consolidation of Redecard. 3

4 Non Recurring Effects Net of Taxes R$ Million 3 rd Q/09 2 nd Q/09 Jan-Sep/09 Jan-Sep/08 Recurring Net Income (A) 2,687 2,429 7,677 8,232 Economic Plans Provision (56) (54) (166) (176) Disposal of Investments (*) Goodwill Amortization (**) - (15) (506) (20) Association Itaú Unibanco with CBD (363) - (363) - Total of non Recurring Effects (B) (419) 142 (823) (100) Net Income (A + B) ,268 2, ,854 8,133 (*) 2ndQ/09 reflect the sale of Visa Inc. and Visanet s stakes. (**) Jan-Sep/09 reflect the acquisition of 3.58% Redecard s stake. First nine months of 2008 data reflect the sum of results and balances separately posted by Itaú and Unibanco. For comparison purposes, we have adjusted the accounting statements (income statement and balance sheet) for periods before the first quarter of 2009, with the full consolidation of Redecard. 4

5 Itaú Unibanco 3 rd Q/09 2 nd Q/09 Variation Jan- Sep/09 Jan- Sep/08 R$ Million Variation Managerial Financial Margin Plus Banking Service Fees 16,136 15, % 47,710 42, % Financial Margin with Customers 9,380 9, % 27,834 24, % Financial Margin with Market 1,456 1, % 4,133 1, % Banking Service Fees and Income from Banking Charges 3,853 3, % 10,996 11, % Result from Op. of Insurance, Pension Plans and Capitalization before Retained Claims 1,391 1, % 4,170 3, % Other Operating Income % % Loan Losses and Retained Claims (4,518) (4,522) -0.1% (13,391) (8,958) 49.5% Provision for Loan and Lease Losses (4,669) (5,027) -7.1% (14,070) (7,715) 82.4% Use of Additional Provision % 1,687 (141) - Recovery of Credits Written Off as Losses % 1,440 1, % Retained Claims (791) (732) 8.1% (2,448) (2,209) 209) 10.8% Other Operating Income / (Expenses) (8,931) (8,804) 1.4% (26,642) (25,242) 5.5% Non Interest Expenses (6,306) (6,392) -1.3% (19,055) (17,774) 7.2% Tax Expenses for ISS, PIS and Cofins (787) (788) -0.1% (2,378) (2,452) -3.0% Other Results (*) (1,838) (1,625) 13.1% (5,209) (5,016) 3.9% Recurring Net Income 2,687 2, % 7,677 8, % (*) () Other results is composed by Non Operating Income, Equity in the Earnings of Associated Companies, Income Tax and Social Contribution, Profit Sharing and Minority Interest in subsidiaries. First nine months of 2008 data reflect the sum of results and balances separately posted by Itaú and Unibanco. For comparison purposes, we have adjusted the accounting statements (income statement and balance sheet) for periods before the first quarter of 2009, with the full consolidation of Redecard. 5

6 Net Interest Margin (NIM) 14.5% 14.4% 4% 12.1% 12.7% 12.8% 10.5% 10.3% 11.0% 13.3% 12.2% 2% 11.7% 95% 9.5% 9.8% 9.2% 97% 9.7% 9.1% 11.3% 11.0% 10.5% 10.2% 10.3% 10.0% 10.1% 10.7% 4 th Q/07 1 st Q/08 2 nd Q/08 3 rd Q/08 4 th Q/08 1 st Q/09 2 nd Q/09 3 rd Q/09 NIM CDI BM&F Fixed Rate (1 year) Data until September 30, 2008 reflect the sum of results and balances separately posted by Itaú and Unibanco. 6

7 Loans by Type of Customer (*) Variation R$ Million 09/30/09 06/30/09 12/31/08 09/30/08 09/30/09 x 06/30/09 09/30/09 x 12/31/08 09/30/09 x 09/30/08 Individuals 98,383 96,543 93,172 92, % 5.6% 6.3% Credit Card 25,215 24,307 23,638 20, % 6.7% 20.9% Personal Loans 22,498 22,702 21,681 24, % 3.8% -8.6% Vehicles 50,670 49,535 47,853 47, % 5.9% 7.6% Businesses 147, , , , % -4.2% 6.2% Corporate 90,299 91, ,826 90, % -12.2% -0.1% Micro, Small and Middle Market 56,709 54,312 50,640 48, % 12.0% 18.1% Directed Loans 12,761 11,784 11,898 11, % 7.3% 7.9% Rural Loans 4,929 4,674 5,654 6, % -12.8% -19.0% Mortgage Loans 7,832 7,110 6,244 5, % 25.4% 36.4% Argentina/Chile/Uruguay/Paraguay 10,541 11,663 13,402 12, % -21.3% -12.4% Total 268, , , , % -1.2% 5.5% Total Retail (**) 167, , , , % 7.8% 10.1% (*) Includes endorsements and sureties. (**) Includes Credit Card, Personal Loans, Vehicles, Micro, Small and Middle Market, Rural Loans and Mortgage g Loans. September 30, 2008 data reflect the sum of balances separately posted by Itaú and Unibanco. 7

8 Non-Performing Loans and Coverage Ratios NPL Ratio (90 days) NPL Ratio over (61-90 days) 79% 7.9% 6.8% 6.6% 6.5% 6.4% 6.9% 4.2% 3.9% 4.0% 3.8% 3.9% 4.4% 1.6% 1.3% 1.3% 1.2% 1.3% 1.9% 81% 8.1% 5.4% 3.1% 81% 8.1% 5.9% 4.1% 1.5% 0.8% 0.2% 1.7% 1.0% 0.3% 1.6% 1.0% 0.3% 1.5% 0.8% 0.2% 2.0% 2.0% 1.5% 1.3% 1.2% 0.9% 0.8% 0.6% 0.3% 1.7% 1.1% 07% 0.7% Dec/07 Mar/08 Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/07 Mar/08 Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Individuals Total Companies NPL Ratio (*) 60 days 8.3% 8.3% 8.1% 7.9% 8.1% 5.1% 4.8% 4.9% 4.6% 4.8% 5.6% 2.5% 1.9% 1.5% 1.6% 1.5% 1.7% 98%10 9.8% 10.0% 0% 9.7% 6.7% 7.0% 4.8% 39% 3.9% Coverage Ratio (**) 60 days 184% 162% 147% 142% 135% 138% 146% 145% Dec/07 Mar/08 Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/07 Mar/08 Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 (*) Credits overdue more than 60 days, which are not accrued. Data until September 2008 reflect the sum of results and balances separately posted by Itaú and Unibanco. (**) Allowance for loan losses / NPL Ratio. 8

9 Provision for Loan Losses 10.2% 9.8% 9.0% 8.3% 83% 7.6% 7.0% 6.2% 6.0% 5.8% 5.7% 5.5% 5.1% 5, % 4.2% 4.2% 4.0% 4,373 4, , ,252 4,296 2,460 2,674 2,722 3,834 2,091 15% 16% 1.8% 1.2% 1.3% 1.4% 1.3% 1.5% 1.6% 1.8% 4thQ/07 1stQ/08 2ndQ/08 3rdQ/08 4thQ/08 1stQ/09 2ndQ/09 3rdQ/09 Recurring Expenses for Provisions for Loan Losses (R$ million) Use of additional provision (R$ million) Recurring Expenses for Provisions for Loan Losses / Credit Portfolio (1) Provisions for Loan Losses (Specific + Generic+ Additional) / Credit Portfolio (end of period balance) Provisions for Loan Losses (Specific + Generic) / Credit Portfolio (end of period balance) (1) Average balance of the two previews quarters. Data until 3Q08 reflect the sum of results and balances separately posted by Itaú and Unibanco. 9

10 Funding and Managed Resources R$ Million 09/30/09 06/30/09 12/31/08 09/30/08 09/30/09 x 06/30/09 Variation 09/30/09 x 12/31/08 09/30/09 x 09/30/08 Demand Deposits 23,306 23,499 28,071 23, % -17.0% -0.5% Saving Deposits 44,132 40,835 39,286 37, % 12.3% 18.7% Time Deposits 105, , ,909 85, % -10.9% 23.3% Mortgage - Backed Notes / Debentures (Committed operations) 65,497 62,917 55,477 67, % 18.1% -2.3% Subtotal 1 Funding from Customers 238, , , , % -1.2% 11.8% Institutional Customers 20,007 21,865 30,442 32, % -34.3% -38.0% Onlending 20,661 18,400 18,456 17, % 11.9% 19.6% Subtotal 2 Funding from Customers 279, , , , % -3.8% 6.2% Assets under Management 310, , , , % 20.2% 17.1% Technical Provisions of Insurance, Pension Plans and Capitalization ti 49,978 48,044 41,574 40, % 20.2% 24.7% Subtotal 3 Customers 639, , , , % 8.4% 12.6% Deposits from Banks 2,232 3,147 2,921 3, % -23.6% -30.2% Funds from Acceptance and Issuance of Securities 6,474 6,778 6,993 7, % -7.4% -10.3% Total Funding 648, , , , % 8.0% 12.1% September 30, 2008 data reflect the sum of balances separately posted by Itaú and Unibanco. 10

11 Ratio between Loan Portfolio and Funding R$ Million 09/30/09 06/30/09 12/31/08 09/30/08 09/30/09 x 06/30/09 Variation 09/30/09 x 12/31/08 09/30/09 x 09/30/08 Funding from Customers 279, , , , % -3.8% 6.2% (-) Compulsory Deposits + Available Funds (33,179) (28,470) (39,036) (51,404) 16.5% -15.0% -35.5% Funds from Acceptance and Issuance of Securities abroad 6,474 6,778 6,993 7, % -7.4% -10.3% Borrowings 12, , ,180 22, % 1% -49.8% -45.1% Total (A) 264, , , , % -6.3% 9.9% Loan Portfolio (B) (*) 237, , , , % -1.6% 5.8% B/A 89.5% 87.4% 85.2% 92.9% 9% 206 bps 425 bps -345 bps (*) The credit portfolio balance does not include endorsements and sureties. 92.9% R$ Billion 89.5% 87.4% 85.2% 85.6% /30/08 12/31/08 03/31/09 06/30/09 09/30/09 Funding Loan Portfolio Loan Portfolio / Funding September 30, 2008 data reflect the sum of balances separately posted by Itaú and Unibanco. 11

12 Banking Fees Revenues and Income from Banking Charges R$ Million 3 rd Q/09 2 nd Q/09 Variation Jan-Sep/09 Jan-Sep/08 Variation Asset Management % 1,629 1, % Current Account Services % 1,549 1, % Loan Operations and Guarantees Provided % 1,767 1, % Collection Services % % Credit Cards 1,463 1, % 4,233 3, % Other % 932 1, % Total 3,853 3, % 10,996 11, % Historical data of Banking Fees Revenues and Income from Banking Charges 6.5% 3,940 3,708 3,846 3,825 4,063 3,526 3,617 3, thQ/07 1stQ/08 2ndQ/08 3rdQ/08 4thQ/08 1stQ/09 2ndQ/09 3rdQ/09 Participation over Managerial Financial margin Plus Banking Service Fees (in %) First nine months of 2008 data reflect the sum of results and balances separately posted by Itaú and Unibanco. For comparison purposes, we have adjusted the accounting statements (income statement and balance sheet) for periods before the first quarter of 2009, with the full consolidation of Redecard. 12

13 Non-Interest Expenses R$ Million 3 rd Q/09 2 nd Q/09 Variation Jan-Sep/09 Jan-Sep/08 Variation Personnel Expenses (2,374) (2,463) -3.6% (7,234) (6,734) 7.4% Other Administrative Expenses (2,774) (2,885) -3.8% (8,431) (7,706) 9.4% Other Operating Expenses (1,051) (963) 9.1% (3,130) (3,101) 0.9% Tax Expenses (*) (106) (80) 32.0% (260) (234) 11.3% Total (6,306) (6,392) -1.3% (19,055) (17,774) 7.2% (*) PIS, Cofins and ISS not included. Historical data of Non Interest Expenses -1.3% 6,012 5,506 5,805 6,462 7,015 6,357 6,392 6,306 4thQ/07 1stQ/08 2ndQ/08 3rdQ/08 4thQ/08 1stQ/09 2ndQ/09 3rdQ/09 First nine months of 2008 data reflect the sum of results and balances separately posted by Itaú and Unibanco. For comparison purposes, we have adjusted the accounting statements (income statement and balance sheet) for periods before the first quarter of 2009, with the full consolidation of Redecard. 13

14 Efficiency Ratio (*) 45.6% 45.4% 45.3% 45.0% 44.7% 43.4% 43.6% 46.3% 47.7% 7% 42.3% 42.7% 41.1% 2ndQ/08 3dQ/08 3rdQ/08 4thQ/08 1tQ/09 1stQ/09 2ndQ/09 3dQ/09 3rdQ/09 Quarter figure Cumulative figure of the last 12 months (*) Starting this quarter, we have introduced a modification in the methodology to calculate the efficiency ratio, excluding the risk portion associated to our insurance and pension plan operations (claims) in the components of the ratio: Efficiency Ratio = Non-interest Expenses (Personnel Expenses + Other Administrative Expenses + Other Operating Expenses + Tax Expenses with Other Taxes) (Managerial Financial Margin Plus Banking Service Fees + Tax Expenses for PIS/COFINS/ISS) Data until 3Q08 reflect the sum of results separately posted by Itaú and Unibanco. For comparison purposes, we have adjusted the accounting statements (income statement and balance sheet) for periods before the first quarter of 2009, with the full consolidation of Redecard. 14

15 Segmentation Itaú Unibanco Commercial Bank Itaú BBA Consumer Corporation + Credit Treasury Note: The consumer-credit s chart reflects mainly the operations performed in channels dedicated to non-account holders. 15

16 Segmentation Highlights Pro Forma R$ million Commercial Consumer Corporation + Itaú Unibanco Itaú BBA Bank Credit Treasury (*) 3 rd Quarter 2009 Recurring Net Income 1, ,687 Allocated Tier I Capital 14,286 13,024 7,117 14,435 48,862 RAROC in the quarter (% p.y.) 28.8% 15.9% 24.9% 19.8% 22.4% Total Assets 460, ,909 71,713 47, ,399 2 nd Quarter of 2009 Recurring Net Income ,429 Allocated Tier I Capital 14,653 9, ,848 15,323 47,269 RAROC in the quarter (% p.y.) 22.6% 15.4% 28.0% 19.3% 21.1% Total Assets 453, ,675 69,849 50, ,387 (*) () Do not reflect the sum of the parts because certain intercompany transactions were eliminated only at the Consolidated level. Note: We revisited the criteria for disclosure of business structures and introduced certain changes in the model. Accordingly, the segment managerial statements for the second quarter of 2009 are once more presented to enable the comparison between periods. 16

17 Insurance, Pension Plans and Capitalization Combined Ratio and Underwriting Margin Technical Provisions R$ Million 21.3% 22.3% 24.6% 24.3% 21.7% 20.7% 19.8% 22.7% 93.3% 90.9% 90.2% 91.8% 93.9% 93.5% 90.7% 91.0% 16.9% 16.6% 17.6% 16.9% 17.7% 7% 18.3% 18.0% 19.5% 28.2% 26.4% 26.1% 26.8% 26.5% 24.9% 26.4% 24.6% 48.2% 47.9% 46.5% 48.1% 49.8% 50.4% 46.3% 47.0% 48,040 49,990 45,866 2,159 2,194 43,082 2,137 7,096 7,077 2,102 38,448 40,049 34,938 36, ,008 1,986 2,015 1,930 1,944 6,904 5,232 4,675 4,595 4,743 28,413 29,813 31,787 32,802 34,076 36,722 38,785 40,720 4thQ/07 1stQ/08 2ndQ/08 3rdQ/08 4thQ/08 1stQ/09 2ndQ/09 3rdQ/09 Dec/07 Mar/08 Jun/08 Sep/08 Dec/08(*) Mar/09 Jun/09 Sep/09 Insurance Claims / Earned Premiums Selling Expenses / Earned Premiums Administrative Expenses and Others / Earned Premiums Underwriting Margin (% Earned Premiums) Pension Plan Technical Provisions Insurance Technical Provisions Capitalization Technical Provisions (*) According to Circular 379/2008 of Susep, beginning in 2009, the insurance technical provisions are shown without deducting the balance of reinsurance. We have adjusted Dec/08 for comparison purposes. 17

18 Conference Call about 3 rd Q/09 Earnings Results Alfredo Egydio Setubal Investor Relations Officer November 4 th,