EX-99.1 2 v465295_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

ANNOUNCEMENT TO THE MARKET

 

Itaú Unibanco Holding S.A. (“Itaú Unibanco” or “Company”) announces to its stockholders and the market at large that, on the earnings release of the first quarter of 2017, it will change the presentation of the Managerial Income Statement. Discounts granted, resulting from credit negotiations with negative impact on the outstanding accounting balance, will be disclosed as a component of the financial margin with clients.

 

We present below the Managerial Income Statement, including the change mentioned above:

 

In R$ millions  2016   2015   change 
Managerial Financial Margin   70,910    70,696    214    0.3%
Financial Margin with Clients   63,911    63,719    192    0.3%
Financial Margin with Clients (ex-Discounts Granted)   65,122    64,465    657    1.0%
Discounts Granted   (1,211)   (746)   (465)   62.2%
Financial Margin with the Market   6,999    6,977    22    0.3%
Result from Loan Losses and Impairment   (24,269)   (19,058)   (5,211)   27.3%
Provision for Loan Losses   (26,152)   (23,844)   (2,308)   9.7%
Impairment   (1,882)   (85)   (1,797)   - 
Recovery of Loans Written Off as Losses   3,765    4,871    (1,106)   -22.7%
Net Result from Financial Operations   46,640    51,637    (4,997)   -9.7%
Other Operating Income/(Expenses)   (15,876)   (15,007)   (868)   5.8%
Commissions and Fees   30,952    29,278    1,674    5.7%
Result from Insurance, Pension Plan and Premium Bonds Operations   6,263    6,196    66    1.1%
Non-interest Expenses   (46,625)   (44,426)   (2,199)   4.9%
Tax Expenses for ISS, PIS, Cofins and Other Taxes   (6,466)   (6,056)   (410)   6.8%
Income before Tax and Minority Interests   30,765    36,630    (5,865)   -16.0%
Income Tax and Social Contribution   (8,540)   (11,287)   2,748    -24.3%
Minority Interests in Subsidiaries   (75)   (1,527)   1,451    -95.1%
Recurring Net Income   22,150    23,816    (1,666)   -7.0%
Efficiency Ratio   45.9%   44.4%          
Risk-Adjusted Efficiency Ratio   69.7%   63.4%          
Annualized average rate of financial margin with clients   10.2%               
Annualized average rate of risk adjusted financial margin with clients   6.2%               

 

This change has no impact on the forecasts disclosed by the Company for 2017, as stated in the Management Discussion & Analysis and Complete Financial Statements for the 4th quarter of 2016. The spreadsheet including quarterly historical information since 2015, which reflects the new presentation model of the Managerial Income Statement, is available in our Investor Relations website (www.itau.com.br/investor-relations).

 

As of the second quarter of 2017 earnings release, Discounts Granted line will be reclassified and disclosed in “Result from loan losses, impairment and discounts granted” in the Managerial Income Statement, to better reflect the Company’s management model.

 

 

 

 

We present below the Managerial Income Statement including the reclassification of Discounts Granted from “Financial margin with clients” to "Results from loan losses, impairment and discounts granted”, and its respective efficiency ratios and net interest margins:

 

In R$ millions  2016   2015   change 
Managerial Financial Margin   72,121    71,442    679    0.9%
Financial Margin with Clients   65,122    64,465    657    1.0%
Financial Margin with the Market   6,999    6,977    22    0.3%
Cost of Credit   (25,480)   (19,804)   (5,676)   28.7%
Provision for Loan Losses   (26,152)   (23,844)   (2,308)   9.7%
Impairment   (1,882)   (85)   (1,797)   - 
Discounts Granted   (1,211)   (746)   (465)   62.2%
Recovery of Loans Written Off as Losses   3,765    4,871    (1,106)   -22.7%
Net Result from Financial Operations   46,640    51,637    (4,997)   -9.7%
Other Operating Income/(Expenses)   (15,876)   (15,007)   (868)   5.8%
Commissions and Fees   30,952    29,278    1,674    5.7%
Result from Insurance, Pension Plan and Premium Bonds Operations   6,263    6,196    66    1.1%
Non-interest Expenses   (46,625)   (44,426)   (2,199)   4.9%
Tax Expenses for ISS, PIS, Cofins and Other Taxes   (6,466)   (6,056)   (410)   6.8%
Income before Tax and Minority Interests   30,765    36,630    (5,865)   -16.0%
Income Tax and Social Contribution   (8,540)   (11,287)   2,748    -24.3%
Minority Interests in Subsidiaries   (75)   (1,527)   1,451    -95.1%
Recurring Net Income   22,150    23,816    (1,666)   -7.0%
Efficiency Ratio   45.3%   44.0%          
Risk-Adjusted Efficiency Ratio   70.1%   63.7%          
Annualized average rate of financial margin with clients   10.4%               
Annualized average rate of risk adjusted financial margin with clients   6.2%               

 

With this initiative, Itaú Unibanco reaffirms its commitment to provide transparent information to stockholders and capital market agents.

 

São Paulo-SP, April 26, 2017.

 

MARCELO KOPEL
Investor Relations Officer