Exhibit 99.1

 

Announcement to the Market

Disclosure of results for the second quarter and first half of 2017, according to
International Financial Reporting Standards – IFRS

We present below the differences between our financial statements in BRGAAP¹ and in International Financial Reporting Standards - IFRS. We emphasize that the main difference in the result and equity relates to the allowance for loan losses, that uses the concept of incurred loss in IFRS and of expected loss in BRGAAP.

The complete consolidated financial statements under IFRS for the first half of 2017 are available at our website: www.itau.com.br/investor-relations

Comparison between BRGAAP¹ and IFRS

																R$ million
Balance Sheet	BRGAAP			Adjustments and Reclassifications 2			IFRS			BRGAAP			Adjustments and Reclassifications 2			IFRS
				Jun/30/2017									Dec/31/2016
Total Assets		1,448,335			(87,113	)		1,361,222			1,427,084			(73,843	)		1,353,241
Cash and Cash Equivalents, Reserve Requirements, Interbank Deposits, Securities Under Repurchase Agreements, Financial Assets and Derivatives 3		789,288			(15,630	)		773,658			767,222			(16,395	)		750,827
Loan Operations		479,875			(5	)		479,870			491,225			(859	)		490,366
(-) Allowance for Loan Losses 4		(35,533	)		7,872			(27,661	)		(35,986	)		9,014			(26,972	)
Other Financial Assets 5		114,166			(61,500	)		52,666			106,458			(52,541	)		53,917
Tax Assets 6		60,602			(18,076	)		42,525			61,210			(16,936	)		44,274
Investments in associates and jointly controlled entities, Goodwill, Fixed and Intangible Assets, Assets Held for Sale and Other Assets		39,938			227			40,164			36,954			3,875			40,829
Current Liabilities and Long Term Liabilities		1,318,152			(95,422	)		1,222,730			1,299,869			(81,442	)		1,218,427
Deposits		352,327			-			352,327			329,414			-			329,414
Deposits Received Under Securities Repurchase Agreements 3		339,123			(17,201	)		321,922			366,038			(16,874	)		349,164
Financial Liabilities Held for Trading, Derivatives, Interbank and Institutional funding		255,777			478			256,255			257,167			(228	)		256,939
Other Financial Liabilities 5		124,486			(60,755	)		63,731			123,604			(51,772	)		71,832
Reserves for Insurance, Private Pension and Capitalization		169,747			337			170,084			156,656			567			157,223
Provisions and Other Liabilities		59,232			(5,738	)		53,494			49,320			(1,301	)		48,019
Tax Liabilities 6		17,460			(12,543	)		4,917			17,670			(11,834	)		5,836
Total Stockholders' Equity		130,183			8,309			138,492			127,215			7,599			134,814
Non-controlling interests		11,804			745			12,548			11,625			607			12,232
Controlling Stockholders' Equity 7		118,379			7,564			125,944			115,590			6,992			122,582

¹ BRGAAP represents the accounting practices adopted in Brazil for financial institutions, according to regulation of the Brazilian Central Bank;

² Resulted from reclassifications between assets and liabilities and other effects from IFRS adoption;

³ Resulted from the elimination of transactions between the parent company and exclusive funds (mainly PGBL and VGBL fund quotas), which are consolidated under IFRS;

⁴ Implementation of the criteria for calculating the Allowance for Loan Losses as defined in IFRS;

⁵ Difference in accounting, mainly for Foreign Exchange Portfolio, which started to be considered as net effect of Assets and Liabilities;

⁶ Difference in accounting, mainly for deferred taxes, which are now treated as a net effect of Assets and Liabilities in each of the consolidated companies;

⁷ Conciliation of Controlling Stockholders' Equity is presented in the following table.

Itaú Unibanco Holding S.A.

 

Below, the conciliation of the Result and Equity, and the conceptual description of the major adjustments.

Conciliation

																R$ million
Adjustments	Equity			Result
	Jun/30/2017			2ndQ/17			1stQ/17			2ndQ/16			1stH/17			1stH/16
BRGAAP - Values Attributable to Controlling Stockholders		118,379			6,014			6,052			5,518			12,066			10,702
(a) Allowance for Loan Losses		5,622			71			(149	)		470			(78	)		1,061
(b) Adjustment to market value of shares and quotas		209			-			-			-			-			-
(c) Acquisition of interest in Porto Seguro Itaú Unibanco Participações S.A.		454			(3	)		(4	)		(3	)		(7	)		(7	)
(d) Effective interest rate		(76	)		1			-			8			1			20
(e) Financial Leasing Operation		659			(34	)		(24	)		38			(58	)		86
(f) Other adjustments		697			320			126			(32	)		446			(152	)
IFRS - Values Attributable to Controlling Stockholders		125,944			6,369			6,001			5,999			12,370			11,710
IFRS - Values Attributable to Minority Stockholders		12,548			423			(123	)		323			300			310
IFRS - Values Attributable to Controlling Stockholders and Minority Stockholders		138,492			6,792			5,878			6,322			12,670			12,020

Differences between IFRS and BRGAAP Financial Statements

(a) On IFRS (IAS 39), loan losses allowances must be made when there is objective evidence that loan operations have suffered a reduction in its value (Incurred Loss). On BRGAAP, the expected loss model is used ⁸.

(b) On IFRS (IAS 39 and 32), stocks and quotas classified as permanent investments were measured at fair value and its gains and losses were recorded directly on Equity, with no impact on the income statement of the period.

(c) On IFRS, the effect of accounting at fair value the acquisition of the participation in Porto Seguro Itaú Unibanco Participações S.A. was recognized.

(d) On the IFRS (IAS 39), the assets and financial liabilities measured at amortized cost are recognized according to the methodology of effective interest rate, which appropriates the revenues and costs directly attributed to the acquisition, issue or disposal for the period of operation. On BRGAAP, the recognition of expenses and revenues from fees occurs at the time of contracting these operations.

(e) Under IFRS (IAS 17) the financial leasing operations are recorded as Fixed Assets on the other hand of Other Financial Liabilities. On BRGAAP, as of September 30, 2015, the consideration of these transactions are now recorded in income in accordance with CMN Resolution No. 3,617/08.

(f) Other Adjustments mainly comprise the difference in the eligibility of operations of the Cash Flow Hedge for purposes of IFRS and the reversal of the Goodwill Amortizations pursuant the BRGAAP.

⁸ For more details see our Complete Financial Statements for the first half of 2017

For comparison purposes, we present on the table below the Result and the Recurring Result according to the IFRS and the BRGAAP.

																																		R$ million
Recurring Result	2ndQ/17									1stQ/17									1stH/17									1stH/16
	BRGAAP			IFRS			Variation			BRGAAP			IFRS			Variation			BRGAAP			IFRS			Variation			BRGAAP			IFRS			Variation
Result - Attributale to Controlling Stockholders		6,014			6,369			355			6,052			6,001			(51	)		12,066			12,370			304			10,702			11,710			1,008
Exclusion of the Non-Recurring Events		155			31			(123	)		123			(11	)		(134	)		278			20			(258	)		107			59			(48	)
Goodwill Amortization		123			-			(123	)		125			-			(125	)		248			-			(248	)		188			-			(188	)
Liability Adequacy Test - LAT		-			-			-			-			-			-			-			-			-			(140	)		-			140
Provision for Contingencies		55			55			-			18			18			-			73			73			-			63			63			-
Civil Lawsuits - Economic Plans		22			22			-			18			18			-			40			40			-			56			56			-
Tax and Social Security		33			33			-			-			-			-			33			33			-			6			6			-
Impairment		7			7			-			-			-			-			7			7			-			9			9			-
Program for the Settlement or Installment Payment of Taxes		-			-			-			-			-			-			-			-			-			(12	)		(12	)		-
Others		(31	)		(31	)		-			(20	)		(29	)		(10	)		(51	)		(60	)		(10	)		-			-			-
Recurring Result - Attributable to Controlling Stockholders		6,169			6,400			231			6,176			5,990			(186	)		12,345			12,391			46			10,809			11,769			960

The tables in this report show the figures in millions. Variations and summations, however, are calculated in units.

São Paulo, July 31, 2017.

Marcelo Kopel

Investor Relations Officer

Itaú Unibanco Holding S.A.