ITUB - Earnings call transcript Q3 2021 | Itaú Unibanco Holding S.A.

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Operator

Good morning, ladies and gentlemen. Welcome to the Itaú Unibanco Holding conference call to discuss 2021 third quarter results. [Operator Instructions].

As a reminder, this conference call is being recorded and broadcasted live on the Investor Relations website at www.itau.com.br/investor-relations. A slide presentation is also available on this site.

mention harbor statements Reform of XXXX. me under being Act let safe the the proceeding, that are forward-looking made of Before Securities Litigation results macroeconomic conditions, from risks and differ forward-looking Actual as market performance factors. in comments of anticipated any materially result a other actual -- that could call in are São Mr. us today in With this conference Paulo Filho, Investor Relations of CEO; Group Jacob, Head Alexsandro Milton Marketing Broedel, Intelligence. Lulia CFO; and Renato and

for Mr. management a comment will on third will Maluhy now be Afterwards, pleasure call available session. Milton turn Mr. First, my question-and-answer quarter XXXX is Milton It the results. to over Maluhy. to

Milton Filho

you. conference you for call. Thank joining earnings and XXXX quarter morning, Good everyone, our thank third

talk First our numbers. of I all, like to about would

the having our a on good XX.X, quarter, most increase X.X% would on had on we XX.X% in was year-on-year When on managerial we a profit. are and managerial posting XX.X% a billion quarter. Our very an result in BRL I had especially in look in X.X credit points in individual consolidated we highlights, relevant equity. XX.X%. X.X say, basis, return We of on equity, growth. is return credit X.X% Brazil, the On return in X.X% to we the we our The are portfolio, a And with growth equity. grew XX.X%. the which cards, our mortgage, quarter the increase is of SME

billion. client the of growth XX.X portfolio a and good we the got in good resulted general very we to X.X%, delivered grow very a with So in that of where BRL margin bank,

we comparing is quarter, On very with was XX.X% in cards. million It's a way banks, card, very good the issued insurance, an billion, to grew commissions is our which that. important achieved doing achieving We Brazil, in way it's a in we and X.X comparable the best the the one. ratio X.X, On calculated segment most BRL and even proper of which the increase which good believe achieved last efficiency the the XX.X credit achievement. we

iti, Looking knowing We challenge new quarter, still account talking achieved we to in million XX X.X year-end, mention we clients the this in worth about a those about bank, achieved to no -- last clients. But our are million achieve by September that clients total XX 'XX. XX% have holders. digital that it's of million

hand, On grew XXX% quarter-on-quarter. card the we credit sales other

and XX digitally still that phygital in in months had BRL billion call good we in Another call and XXXX. has important lot is offline. increased in acquired we of is this of do in figure very X.X with more a clients online this later I in third this a what one, XX% is what that X We but we to our one, the last give will strategy achieved We -- we quarter which investing we of million the volume year, quarter experienced detail to omnichannel on. OXO,

channels. the on we've digital sales, to On mention slide, very numbers relevant the achievement in it's been the having digital and our next

in And achieved it's had we look month, X.Xx of that the the side and in will increasing left-hand quarter a in share, see terms we third growing what engagement per in as you when share you of So channel, digital market user hits XXXX. our XX% on our well.

In are to. is X.Xx. you of mobile. we are a that in investment, insurance more one-stop the important share can X sales that channels using grew and of in More digital in in XX% In of they than used X.Xx. achieving a premium third bonds, years. our X.Xx. at are credit, a cards, per It's them, So digital in all that should we In XXX% in we When the look 'XX, we increase clients have channels. important year-end quarter and by all the as shop, digital very products than increased we channels see, month we we X.Xx And say XXXX.

this strategy. is and relevant we see it's that, for how very So our

slide, talking about this next we having we the our way physical serve our related the believe to channels. have the and clients also On phygital, having is digital and footprint, a a -- branches should bricks-and-mortar

relevant So This offer. this is our for conviction. is by very

contact when to service talking way of at a new modern way more products our and being point single of about we're a look, offer access the tech-based a So present. we branches, serving client, new all and environment, of

see human. here, can to you a we click have As

through So any a is and he and start migrate click a can client to channels, human. going time navigating digital our talking

automated channels capturing we client We and -- the the information the is of have going what know he And whenever through channels, where leads. then we XXX% he's what simulating. about

transfer conversion We lead we to sales. have when an this important manager the

We of relevant. hit which have a very is ratio XX%,

products omnichannel and reduction XX% in new action within managers' XX% in our to time Nowadays, reduction launch offers time. a we of experience. have XX%

the go So on glance. When how you a serving are this is we clients. this BBA slide, can phygital to at next our way see we our is Itaú

idea the with share operation. our to about bit wholesale you here is a So BBA little Itaú more

all, of we XX,XXX in First support clients segment. this

and and and long-term investment institutions, I highlights of it's have Itaú think products proposition companies. large real specialized like model, multinationals corporate we of segments: share. is industries, and complete major tech service, X relationship, few corporate, niches value a a And The some to that market service offer banking, agribusiness. important have some BBA financial estate, We middle a

agribusiness to as well. the banking growth leading we It's the there relevant compared is that When very on XX.X%. grew of lead, we important growth the credit management, had investment side, when of And an First payments we've an ranks. and is look we receipts, XX.X%. all, important months XXXX grew volumes of cash of XX% on XX% important of which we our bottom portfolio The when when to XXXX. say look segment, X been line to X

growth. we the We So acquisitions, Managers as -- fixed equity capital first income position. same and mergers the way the a achieved on well. same local and around markets, had

all volumes have But the have we're the customers the those information as distributed is -- banking. in can see, very here that increase still and and that it that, focused on investment you we increasing So doing most relevant last the products, are we you the years.

bit on next we points the XX NPS. above So It's talking same we our more the achieved in 'XX. a XX about points September the period credit on had portfolio. In looking slide, little what

We individuals. group have an in important

up the grace an is why a we this portfolio. BRL look important auto a only throughout the cards, to we that good, As is X.X% that mortgage for Brazil, manage the you which and reduction, you take credit and in in of knowing be we and important billion had reduction our this We way September we XX%, to When grace of only personal had look loans, portfolio collateralized. can made and pandemic see, in XX.X X.X% of still our a more 'XX to loan relevant portfolio payrolls period, had a the And that XX.X% you It's growth. this mention we XX% rate the had total variation, year, are in period. when reason growth. XX.X%, very the and quarter connection. When portfolio out had used we had foreign important reprofiled exchange X.X% the

relation personalized XX-XX of the at due, It's we and XX of decrease over year reprofiled all When to right-hand put program look basically to portfolio crisis. and an that the mention a XXXX, the we place credit When this have, days help have side, with as this has There the to we ratio credits important now but all important delinquency in are still the X.X. X.X% it's that we loans used has the above on the through X.X%. is to we it's balance. our go have well. So look do the the of days to clients last to figures average that to we

is hand, that hand, loans the though above the growing, XXXX. average had other behind we now loans unsecured in But had are on are the XXXX. even the On and overdraft still other the in the overdraft unsecured we what balance

So our important quarter portfolios. next can third you see In XX% growing or is as the XX.X XXXX in there you we clients growth, can see, Net to card, way this increasing growth them, believe in new the here. portfolio as evaluate quarter compare the Score, is the we XXXX, on the service it's Promoter of sustainable When that the NPS, of we payroll. see the the journey. credit our and individual the our say dynamic terms growth very portfolio a But all are growing slide, the of in to in a you can third

points. we So on X credit the card, increased

are And the small to vintage, of XX. healthy points, working average still we When and NPS overdraft, personnel have on In portfolio. be points. payment, In X -- increased it's XX.X%. portfolio XX and we to and we The LTV grew to mortgage, how grew the showing loans, XX we XX, our XX basis, still months. it's payroll, we it we the at the very XX be term, XX it worth XX%. XX.X, auto auto that grew a average now. we down used XX grew the points. the the increased On relevant same, used In loans, we're to we you very look NPS, mention with the portfolio. ago. say, with XX%. points. -- points, It on increased and it's used a in one increased the grew in be the loan X to the XX And we and XX.X In is a important And had It's also we year down loans, now to value when look the to payment the now, XX% we

unsecured on And the portion secured But -- So that of as we you growth it's this individual can portfolio very And It used to the also we consequence, as it's growing major a portfolio when figures our whole. made this ago. us we secured increase to years on the in to had the way. XX are they be two are portfolio see, XX. the look portfolio, good XX.

On to clients. our secure over XX the this days unsecured. a important delinquency good X.X%. highlight next you see NPL, of figure slide, way margin portfolio the it's is So the of can and with And the managing very this in then

with As you NII, volume an we see much look to most an the quarter. respect related we here a you from the comes next growth which see, as see average And the the you. with when are this of accumulated increase should also throughout can has XXX quarters, this can flat showed just to annualized million, the we the growth, in also important the that But working small hike and relation period. have other you that have capital I to to on interest we pretty rate capital. and can And base, in BRL this

slide, -- with next margin the about market. the financial I'm talking here On it's the

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quarter one these last So maybe been should margin last here in seeing with quarters. we relevant so we've X not marketing, have as in the

the portfolio. here highlight a to in card credit We give next Moving slide. our

XX% credit cards September debit growing we've So X.X%, been to of and and other the compared XXXX. when the cards

our global we hand, And September -- grew growing XX% XXXX, can other in NPS XX when 'XX. see, quarter months you against X.X X and -- cards third as XXX points, achieved the On X X of points months million to issued XXX, compared quarter-on-quarter. NPS

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quarter XX% mix. income, very We are is different the but growing important, issuing a year-on-year, which with

last And to the decreasing increasing we have the XX%. in less an term, that change annual then about told this mid- interchange. made our we we annual interchange. should and I quarter, long we On are interchange, important recently. we In portfolio growing the our fees, in strategy XX.X%. are we the in And on to is that have keep fees believe the

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We most approval, have to the it's convert and relevant client the important very sales. for

here, with lowest XX side, complaints channels, the next growth had a well. acquirer of points our cost customer have digital the in per number on in We chart, Reclame XXX I are reduction the of investment now of we customers in transformation the efficiency And that acquisition have base hubs of throughout XX% we of points the Aqui. using we journey. the The new as distributed at Brazil percentage the and active mentioned

be around year-end, our have taking have for We only us manager used the arena a better offices up somehow. XX We It's have new regional date. make to dedicated clients we client. the where should around or helping XX to to We of have the to specialists care assessing investment. by

which is inside ion From X,XXX with we but very had of is X more do by -- only we XXX,XXX it's launched our X,XXX downloads, clients Now open since the and for holders transactional the the we're than XXX,XXX can specialists. manager have consulted people app. be care XX,XXX idea going a have feedback, We end the XXXX. of We be -- nonaccount to to app, app, clients not of we months. by aggregated beginning fixed the the all portfolios transactions income, and in around should the also taking year XXXX service. the this And also around dedicated clients recent.

journalists’ we partnership So And are content achieved working had also, this We and focused is to production. it's we we been journalist a are up new Then with one, very we X newsroom through investment. of pillars: have network There content, pretty very we've journey The an Grupo influencers. now. digital content on our a in for much with Editora fundamental happy us, a platform, independent Globo what the Globo exclusive to Brazil. -- have first

Also social news Globo, Grupo will bringing now LinkedIn, Facebook, very and we have of channels our talk also GX. are commercial the that talking also O the on global not society. have of on YouTube digital wide breaks We influence television. it's Twitter, have We distribution in dissemination Globo, only on a we Instagram, that this ValorEconômico, of media, about investment to the content. diverse, And and

way it's ion, to of of this clients platform the We comment and a new delivering increase as delivering In content well. a page, quarter good of inside content on audience I our very role a very here So to the good also as commission insurance. and next had well.

remember X XP XXX year-on-year. see second But quarter. when we that exclude we XP, at had, As when you without though here, you year-on-year. can May didn't you with explained can X% quarter out we that this take based months XP, In spinoff That we quarter, XP, have But in quarter, made of quarter, look month the of the in grew was result grew and that XP. That on investment the the X.X% on BRL million XP. XX. X.X% grew X.X% on and last accounted in the means see we X the even here the in when we we XXXX

we're year So strong a in very office. the having

we side, room used in our XX.X have that insurance as in operational last okay? have margin we it's the work news to the have news, still insurance We And earned lot here. means we the of of good believe good to in news see believe So ratio to the the we the claims that insurance that say the margin, which a important room of from to more, a margin in dynamic. it's X.X to lower was points percentage business is in and growing than X.X well. is financial lot insurance. That quarter. in combined here a start premiums, relevant and we a underwriting increase the had is We ratio, in On increase change decline good X.X still

next more the a page, the talking credit quality. little On about bit

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other On to ratio explain coverage NPL the hand, important the it's XX days.

coming So can see, terms below, Brazil, we retail profile you of look from portfolio. -- the above in from when are coverage. on pretty And we much to that, we our flat

talking which to America impacts as with had Latin are The we one on do We the client. good well. very is about that coverage, has XXX X major specific

we where As I've quarters, a this client activity. it's been mentioning the client an have in -- previous

have in provisions in We guarantee, shares client us to and the been making previous this given we've quarter.

our that we So coverage, have as is the over loss an you expected you we our what in And happened is whenever on the impact here. provision the delinquency, have anticipate as model. wholesale same, can see

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this on reduction companies, the as been life also as very So it market is. And and is middle seeing a we've well. small

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next the for messages you. a about few noninterest talking slide, expenses, On

when Brazil, forget compared to had a total XXXX, look of at XXXX only we index flat. months all, the months of had X an XX.X. X.X% we the But inflation salary cannot almost growth, X of we readjustment, that of First we

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efficiency investment. room we've other this been the program, the on for On opening hand,

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of we site, an which years, providers, X other back. a have more And of Payroll, had suppliers. at XXX,XXX lot acquisition BRL say, have capital the here the On than important I in one have we employees, of X.X the in this this portfolio, we Minas this That also, but capital would of Gerais that will revenues billion. we investment, means hand, is

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still to Level capital come but XX.X% core why we this at Tier in XX.X good So level a is X. it's equity X,

about On Zero. the the Itaú Net I next talk page, here

We and carbon by XXXX reduce emissions by will reduce. that by agreed to is XXXX. neutral total recently This become something XX% very we

be call here always we will and are It's X. certified Our emission Scope initiative target science-based there target highlight, what SBTi. to important by X

say, a X inclusive are to of The XX% emissions. We our measuring but total Scope ways already is neutral. the approach, There it, to lot very it's of of clients. it's represents carbon important

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of is of approaching, of measuring those this XX XX economic we already out the in So have the emissions decarbonization groups, the way the to signed are up commitment. XX% about

for So the happening banks, this this direction, means for the moving is all market, could the transformation, is which clients agenda. the not sustainable are throughout for believe doing very presentation end that next are something very not talking The that the which this and what only cultural without is but The here. whole I slide. I we world it's that industry. about positive relevant throughout

iceberg, the outside results this this transformation. What is water see the ways. can you of X So are cultural

achieved So whole now through of and in we We companies second Best Work, individuals relevant sales the Bank companies Brazil. Place industry for are in channels. Work the have the NPS to Brazil XX% which share products digital XX% Great figures. in for their to individuals had and improved, in according to

mentioned channel that. are and products mobile XX billion the OXO, we of omnichannel BRL by already more So phygital proud in very approach. than I of XXX% the the our in it's say see is under availability on one-stop can XX.X%. the you customers. here, as on that shop we year-end a when digital behind What focused channels of water, very and very

off bank. centricity, the of customers So ways working

working have are integrated, in XX,XXX very We year already, by people of working communities communities, agility. more hierarchy people should much in less we the and XXXX. end XX,XXX

titles we in more to the President, the we Executive Executive Director. don't used Vice have have So bank,

the So we have only Everybody Directors. title. same has

executive It's We committee. the only in difference, the committee. executive have XX people the

years, environment innovate, we managed competitive have to lot throughout approach capabilities. There capability be to a still have room MVPs, more new where a look to believe create we fast. we people innovative we and learn, but more to for We risk are differential installed -- test, of fail products, different fast very when have to increase the for create us the

for very the throughout something We the program bank. to the are important is much the transformation expansion so the changed approach that digital this price of making incentives, appreciation are we we partnership So linked are like doing. stock that and more the

XXX of with now. to last have have but stack cloud about services have I've systems the that the migrate the expect the base, to technology that transformation. to are legacy technology emphasize we We services, used moving and to the we state-of-the-art. cloud, we XXX our a modernizing already XX% here the quarter, about by chat in modernized been Now those bank, are telling -- in have agile then here you least, partners, acquisition had months. in we we full we but of than And have X,XXX of to we more we work have on more M&A Network of high-growth also, And that And here the reformulating to alliances mention with results they also and are opportunity where agenda, bank XXXX. the that associative XXX here end have a year companies. cannot startups the last those we flexible and clients we Cubo we integration, should than and when not becoming our coming are more model, we to

So is as approach of are this an well focused in transformation bank. doing the very we that digital the

presentation, I you So finish with this, the for very and much. then open Q&A. Thank I the

Operator

Instructions]. [Operator

from Bank comes first Our Mario of with America. Pierry question

Mario Pierry

Milton. me Let ask two you questions,

most the year. especially deteriorating, I is, in right? have be we're strategy, loan right, to concerns for now, one think some economy bearish accelerating the from your non-collateralized getting your the next outlook products of when economists growth some outlook for one First investors about Brazil is

for So we're year about for outlook and quality in the next getting investors charges. the some concerns provision asset from

And at -- why net accelerate products growth little you seeing the discuss makes So in what question the related second cycle? the time strategy, you can non-collateralized in your income. I of is are to have you a this then that comfortable if bit interest them

credit the that volumes. showed still of of is bulk interest is coming from net spread stable. growth The clients in income You the

to to rising a credit in competitors, is, you I going improve with funding having environment, spreads from costs. bigger be of assume, especially I So forward, your your would wanted going understand ability a rate to some challenge is

spreads So the our little do rates your about to if a you ability and then competitive talk environment as you can see how increase bit rise?

Milton Filho

questions. Mario, much, for you Thank very your

market and talking loss as to we First that say of of terms said due the pandemic It's a very very important share year, crisis. to of growth all, production important in I about portfolio. the had last the

XX% give we So X% We share the just to if XX%, products. of of moved figures -- here, you X%. remember were you production in to to some market producting that

growth, So were the good and to delivering producing was X% we market still X%.

here, the not the lost remember. we just of to you portfolio idea as growth. the grow for share, is So sake And market

our have the what been evaluating portfolio, are of clients clients, about a We we lot what growing. is type

risk change fair I in this is we would that. space, So It's mention the segments. very our What appetite. we say, to share share doing relevant our are reoccupy or didn't many to

growth X to the compare, were you our when been with So behind when quarters had X with clients decreasing we market much -- we and margin general. our we've our in --

years terms well did have So X relevant clients, to that relationship, reoccupy of clients I than clients space we've design, we been what so income, last high more mid able year, than the would we in have by is, say. we that that more lost to

So of course, we forecasting. are

we -- believe now flat little When XXXX, economy X a X for the or go to you perspective economy a though a If you back back wouldn't go should months, different you much for bit see that GDP. figure. on the even decrease or including go the our

not were we about the growth So year anyway. of next very positive

economic change about that in not the is a there us major that. So caught worried projections

healthy it's So very growth. a

confident We that. are very about

growth Of from type the information about level due challenges course, that we but healthy that them. Brazil historical believe to economy, is this of relationship and have very the of clients, we in have we

we that. this viewing is So how are

the margin about the is a don't Talking So room spread. believe this we on in increase for side. is growth NII, lot there the and

be in see we impacted We believe a able in general -- same the way portfolio basis, of increase there by tough grew may competition. in should the there believe first course, growth we that grow that we should naturally, believe but a in is the We but specific So XXXX. don't that reduction there we in portfolio, that are won't are Selic some portfolios moment. be of the that

regular a look payroll, we have INSS, you fee. to when So the Consignado,

charge a specific more line. it's rate than You because a cannot regulated

the On cost your of hand, to funding other grow. start

changes catch you any so some then to on spread. you wait can have this So for up market

Are know XX% Selic. other just On the second. what we mortgage paying a listening -- me? When account the look side, you the of call, new, that to to we is the we

Mario Pierry

We're We're here. Yes. here. Yes.

Milton Filho

Sorry about that.

funding able, the the side. client. are on here the those pressure some of But see credits we we reprice to So whenever make we

is next there believe room don't spread a I be to the by to going of lot So increase year.

So this now. view my is

Operator

Kuri Stanley. from comes Morgan question next with Jorge Our

Jorge Kuri

Congrats on bit the a results for previous I well. wanted doing the quarter. on the little question. I hope everyone is maybe down to more drill

probably kind XXXX. portfolio but not deceleration. meaningful credit you are deceleration, a versus certainly suggesting, That's Your like of decelerate in a what will XXXX

could year better rate margins average flip interest doubling get you the of On next year. given potentially side, this Selic the versus the net

end those I so wanted And if year. around in how your probably -- see do NII will add XX% -- things growing up up to this X

side, together, year lower year? Selic How next And and when that's of in put related, year, made is I the first relative better for -- NII growth expenses you to comments but the year. things this expect do flat I'm So news think next second be So you the you rate, one Portuguese the is better which articles expense on your next the potentially some the question. perform to margins. guessing read call about those from you could that

to question low and that's us out. double are you anticipate in, to So hopefully, to operating help you it digits is in sort NII are high be like if of the your grow So flat, your maybe? to expenses able wanted I figure up reasonable profits the the teens

Milton Filho

Thank much Jorge. for Thank question. your you very you,

go to just through. So

many So of I topics you the in you are right think pretty much mentioned.

we're one the We'll do it's It's we the for still not same believe next be growing to portfolio be are, way we part. be year. growing in decrease So but that will going a portfolio. there

our here was Selic, financial and will our second different with The XXXX. not of be the will impact will margin in also one, working XXXX balance but in bring portfolio than the in yes, capital, this average it the this, impact clients. only But

the So as clients this well. will positive with margin be for

I'm be believe mentioned are the is that I just here the at last and going to if these but this last anticipate the had to So Selic X the margin important have quarter, one we're not least be highlight for you correct. next balance we're with is One we discussing next an to growing X going portfolios portfolio here. reasons I average to going because that you those take months into in clients of it's built the the quarter, XX year should important the this quarters. guidance, of the consideration acceleration other in were that we

for the forget last should do But very with cost that to believe were also, margin be now. is reasonable had we by expect, that very you some cannot relevant that We an this It's there credit. So made is increase consumed in year to believe the COVID clients. not we to provisions the -- of this honest. be

that a that means provision is increase there increase there in -- consumed if have is an So be still if an throughout the delinquency, will and year level good of by that very of we the XXXX.

going not year. to I'm So next anticipate

reduction months X As investing flat, In having costs much XXXX, I the an on talking look more about you of a bank, see of bank. I'm tell there when can Brazil billion we is you core X.X of in look BRL we million BRL when is costs, talk the cost, we what core in at terms are important the you can XXX keep of -- that when here, the XXX you grew. okay? but But

as a focus reduction here pressure very core we by But strong in still the or many to next have We places, deliver year. a inflationary the why not cost in flat numbers. are a but very have other

are this delivering we're year part This below compensate cost that saying a not view. I'm will is the say inflation X making. to going going be on all. important basis. I'm to next our a be at an investments consolidated So we What going that's of to

positive I'm only is and that different that macroeconomic mentioned. about The a facing to I challenging So we're all be important. environment, elements going topic those somehow just this and is

in be not time, Brazil an it's many going are first election for It's year. the to years. We but

But if So volatility it next may bring. in would we and we worsening the is, is how may there are than ourselves this market impact preparing the environment more I are more year, in negative. we economic positive general, the see and say,

Jorge Kuri

Milton, congrats again.

Operator

with from Our [indiscernible] next UBS. question comes

Unidentified Analyst

million to in about at XX you I would your of last current the the from the at million end clients at the detailed about like expectations digital of iti presentations hear X for the and year, clients end bank more month. the had because reaching next

a clients of beginning of was year. if at basically million the XX wrong. that launched net is addition this not Remember I'm it So XXXX, it

this share record back, this what of of done you this variety investing this it of information us So during share could large the What you expenses. If more to months market cash a launch please to been expansion more expansion. has can about related products, remarkable the during X period? with was

Milton Filho

in Look, of proposition there the important is a new period. the value change each throughout

started in then the on were a digital the much And also is to what working user give much a new then and at invest investing value marketing a be that. it on new that we especially we And the a proposition. payment awareness decided about performance experience, very should we more are to been a So more iti lot experience, bank, client on business, talking the side, we to than in marketing, technology lot naturally we've account, payment beginning, marketing fundamentals account. of this

role Itaú but pyramid. It's we cheap So also has clients the people, a clients today we or many some can we course, branches iti way this of of way our as business bank. Why? only it's serving much not of can, within Because low more Unibanco. the these income well a of where for role has important to it client. segment an achieve of offer And that have a for of the don't the clients, cheaper very serving young

very products we've new when well, though is investing this new to the And as and We investing very been period, we've strategy. -- this which to is So delivering cost even of were important. our many others. cheap acquisition throughout basically acquisition compared functions client is been iti in

are we happy making. the we've So achievements been to very

it's We fine. member working the strategy, have get member and very

lot. to business a product, and new we've able to deliver a been a it's grow So that new

we're go sure there, that get It's I'm we to million. hard not XX costs. this yes, year-end. where by challenge and get the have, should to going million, We whatever but is not XX the if it a

the the of functions, in new client, the this offer will is evaluating stickiness the new we cost We the are the term. generate the what always the loyalty, that product activation, long acquisition, to and

So we we now. up what to happy deliver are to

So clients, the we still have the this throughout and delivered do only be a many new to clients. lot not of for work platform, things to

have actual it So are of client bank, new but will customers the the also for XX% our bank important base an client of the well. -- as to clients base role

Unidentified Analyst

once. XXXX very XXXX very, transformation to then payment wallet digital the bank to digital terms considering and understand of helpful, at was plan especially to in This

of a Just the on platform. to make bank, follow-up topic the digital the to shifting transformation investment now ion, but the

the guys of the to into guidance platform, about mentioned quarter, slides I increased year. large bank, the is regards this this in next seeing X,XXX specialists there X,XXX And increase in last year. specialists potential the especially because As you into the the the believe a that presentation for during considering to in specialists next

ion. here have to about So understand X aspects I

And service the of app. this bunch strategic. with on confirm about the app and peaks apps. thinking but dedicated market the within not about my or think to the terms are is with in do investment if profile market share you this quarter, customers I'm providers wrong, for us me, customers' The other to Where are year next metrics customers there on believe, you for Milton, share the landscape, scenario of or like you volumes goal of there that XXX,XXX the in positioning the a first, of follow-up more were would question with using than this

Milton Filho

We all this us. to made clients have to relationship used a the value manager manager, proposition the care invest with have we different decision to taking the the that relationships. Look, of

thought a investment and banking, about new the unique with in that change And we So those needed credit talking we consultants. investment. clients were very environment that the investment

So brought specialists the bank. many reason we that's why to the so

himself already going offices would us date keep -- But approach. We we're we because to results around -- teams and that and are investment XX clients this up a but when we The many should a be to not XXX,XXX What serve needs we -- the relevant not should that that unique service. and will we where of specialists without of the assessment say, to having are a business, a client are investment we dedicated. the We how under investment the encourage his lot have that still need this have -- I this learning growing needs area. would this and say, client know level because platform growing or investment assessment is we have still have enough pilot customers lot. XX it's this need to using service regional I now have have also this justify

more and this we with scale generate ion XXX,XXX the is At specialist, a and up working serving we we if will here than future, clients. platform as a idea to more. XXX,XXX have clients have in to analyze the have much moment, near So

We to are market autonomous to ourselves a terms looking share the not of in industry. to compare

the is here business. increasing area. very case, we OKRs the what the be scaling are to why still we we up are what and are to But model and happy is going We this are and we the now. the This the offices have reason much growing more guarantee the looking achieving we to If that to. wanted to we KPIs that we're define to

Operator

Our from Tito with Goldman next Sachs. question comes Labarta

Daer Labarta

about right. X%. are growth, expenses a the up decline from I And growth have X% look expenses third-party provisions how the big If expenses quarter? in noninterest those you Do picked a personnel but the expense pull? up this you it Admin, to growth year? were on at expenses. question had a to up follow-up that. expenses up All cutting have that next cost lawsuits quarter? lot bit X%. on quarter, to on Is reduction a in a then and we Just saw expense get marketing below full then or think inflation. you'll for you And in adjustment, growth can claims. you mentioned you can below do fall next year, labor costs in month you the growth cost after only inflation, these you second which but to this of and the impact back keep you that provisions levers salary more think want be I able expect keep So next What drive again? And keeping to year understand what's going to under one

Milton Filho

it readjustment, events. impact. you quarter, Okay. this for yes, question. seasonal has an Look, Tito, in third The we your in some thank have fact, salary

doing finalized were judged. we are As were talking the only provisions that and about we we have, ones the

So no there discussing risk here. is of

of being those are in in say, conservative, would provisions. very So we I reversions terms

that any previously. whenever we shouldn't we don't level finalized, the So maintain have we or process of a have had we reason provisions keep it's why

this So is we what doing. are

have X,XXX of an give this terms initiatives idea. just In programs, program under to program, we the -- efficiency you

are So very the only that. not difficult bullet to tell -- whole It's there we one you but is for working bullet silver throughout what, bank.

changes. to So since tactical very small and activities that very structural

you idea, have of to to change care retail structures give model a operation. X Just separate our taking have the of used an in we We branches.

we the of that reduction also So guy an the is had. client sales made those reduce We we number buildings decisions commercial so on employees the that to and also Also places What decisions guy happened there forth. and made in forces, pandemic, and we important operational had have. we made many so about was the about we decisions integrated responsible throughout footprint. and this and We have. the buildings for

with a being lot What main focused negative investing But even X but big is should business. on that pace. core technology, how -- things cost including we of very least we this be believe small doing investing Broedel is or this things we in are still in things, at a So his very be is goal. to still inflation delivering doing and pressure, we that, the done. on there's things

in so costs. going we're have came Some to the of full those year the investments those January, not of

business, the to, I'm that. still core on X by of opportunity year. the next we we on are and we on cost wholesale believe there's here And retail the we cost, that lot So a Broedel confident deliver But very is side, investment side. still have can of side, doing on by side, the growing the my a

So in will it's a first that an it's task much person. more he impression, take than

Daer Labarta

Okay. Great. ask That's I helpful. can If question. follow-up a

more bit a though. Somewhat related, little conceptual, maybe

landscape sort be starting of in Just to I fully evolving digital, Are about you from build got digital? investments you go mean Would into it of it? the start how still kind that? that and that IT if competitive today, more you bank of sort the would see Given do not will to there do would competitive sort to were of and doing all go opportunity how how landscape branches? and you the would certain about products and you you you becoming the think go or into? scratch the

Milton Filho

Yes, it's good a question.

approach is same would we way doing way it the think are I the iti. we

customer start first very digital a experience. very you with a So platform, unique

footprint you past, those in that to clients, our start to the you when work channels. then and know very believe, You relevant learn up. how those you scale with didn't was all digital I have business for

opens competitive in even for you results anyone what have clients their that results. an Brazil, we have Because been only you believe though a have, -- brick-and-mortar branch we've we've been branch, physical we good seeing when you and account places. but have will the much in Why that? do I a a many measure, of with not And it's still opens replicate we and a footprint believe So impossible this on cost to those the on companies client when in but channel. clients increasing the do more digital physical footprint, The you having is -- channel, have digital digital that many advantage. than you

idea. twice It's give number, than So just more the to it's very you an relevant.

it's So completely different way with a to the client. interact -- to talk

if would be a bank would a it investment. I it have footprint digital demands scratch a very create us So of a impossible to -- as because for from digital lot

it's have but already. scale we -- this You have that, difficult to to

way best believe. in we now we optimize So that the can

will adjust is the don't still So then need it, going relevant. be to number more we but And do cross-selling, having if of branches. much capability to it's have branches, branches of have any the we the more there

complex much don't the we're will working or for client good some to But they those that advantage sure as So a with go attention. product, iti help to be to have need a branch. necessarily will then to more need And going to footprint individual very segments a whenever that they has, it well. do need a clients

And believe you I approach digital is profitability. this much So more relevant. by can that see

our the You can profitability. bank's and with clients. digital and this more to think more and capability cross-sell penetrate see I the the relationship And has to products to with do profitability

Daer Labarta

Okay. Great, Milton.

So if I understood, of maybe then you sort digitally, eventually, branches. but start having would

You to do of... sort that see some benefit to

Milton Filho

do Yes. relevant on be will relevant, term. But It can invest. depends you physical much if long how be in the believe that can branches is invest, still I the you

capability We that have already.

is think advantage end at the day. an I So of the this

Operator

with JPMorgan. Yuri comes Our from next Fernandes question

Yuri Fernandes

ahead guess terms. the strong growing to in question we I deposits you bit, you know advantage on deposits with versus about But funding less. have that regarding have given how XX, I for half quarter, loan moving companies, guess growth see had but loans right? good the or you are Like but at providing If accelerate maybe little relationship looking funding brick-and-mortar, XXXX, continue growth? you And a entire very more you loan growth, are and system. nominal up. a XXXX, an inflation, I outlook. I X will do may see the this a message of look still we And in Selic have

it How is a coming higher whole? with everybody income in you my Disposable know, question as And topic down don't guess, do more I higher is, industry funding see Brazil? is like rates. growing. I So a the inflation, for

in funding XXXX? for see we should what So

Milton Filho

especially you companies thank credit lines, were yes, well. had asking huge as not were they our Look, wholesale from in their lines. you increase this credit It's your for We as for in the phenomenon. XXXX, Yuri, Okay. question. a using had deposits. Many mentioned, perfectly but we coming

the at credit, of the the day, happened credit the the invested they really what within So but end they bank. got

is there any So need could working if that investment and the whenever the that that the funding, was redeem whatever they they capital, why need. future, they use as in reason needed

you for When other on So side, low look so investments, is important there rate, phenomenon an XXXX. this the with portfolio and migration -- the in XXXX, was the yield. a to equities, especially to looking everybody then funds, with strong XXXX, retail to to interest of

change. see and this quarter, now you phenomenon, this we see in we see As important

see start on income migration make that. to an equities other So we and treasury to more to funds has from that more will products risk banks fixed the role important products and

and terms can regulatory that NSFR. you level. minimum we You see liquidity both of the above in whole see and by figures the the our a are the regulatory in ratios as well LCR And can

migration are the to liquidity about have, income product but we in very the months. we fixed increase should as So confident the a coming interest we see rate

there's they election necessarily, coming, to In will investment, the look XXXX, portfolio the should in safe. less going the be a side, than bit increase all don't think have. to playing volatility, in So this in we this a -- be redeeming and will had I what should I observed grow -- more more than or but clients more the will investments and little work uncertainty, as line less more we believe an also But ratio with and in we much past. see corporate used be with more not they -- huge

Yuri Fernandes

sure you do has. guess clear. as that some big bank, Like everybody industry the a not if think But for a you whole? I as Super like advantage have you

Selic is expenses to So see in Yes. for is like everybody? story you do costs do capital up, the to the be same -- funding moving Or like Selic, you going addition this think

Milton Filho

in depend portfolio. the will the it pretty think growth I much of

be more going in the pay reduction need there's funding as whenever system, also, we'll and a more whole to equities believe, a to from is I -- and there you put portfolio other because going -- the natural migration to As need migrate for migrate maybe And cost. on or be less to you funds. pressure

pay market. the to need to you So more

is there's reduction the in a my the credit cost year. this migration, to funding general. in think other also in believe, side, on so for going next pressure view be And won't now. the I This much As natural I the put

Operator

question next Carlos from comes Our Gomez with HSBC.

Carlos Gomez

could Two your in relationship Group Corp very Chile. is, the comment separate questions. you One on if with

do the you how see in growth have you to the expand Or this the do future partnership Brazil X, portfolio? are The you And the to? have provisioned? the your currently exposure? next next a loan contribution. have X, second if continue have much Do X seen for in it's a you that investment X to Is with expecting how have have in less XX% Corp? refers of we time individual, you year. If to And years? really evolving growth evolving? see for little large and I is you in you If expect so next is over it your made And a to you a loan in slowdown of more CorpBanca the will do you future? and the a than capital what years? company expect you know expect growth you bit We XX% to it contradiction have and mean one-off

Milton Filho

question. relationship. cannot specifically specific clients, is and What there Corp I Group. for tell with one, cannot you, the say, about you your I can relationship I go Thank into about first Carlos, Talking the commercial

together, We fine. We bank are a it's all and partners. run

about now. that a I There the will providing Chapter now. on. and market, right we It's Itaú public what bank. right going event information, go I CorpBanca, And is releasing XX, Group. is are public Talking be this positive can they about So the the whenever but through tell know, very you have Corp cannot you from they as to

supporting capital. are of the increase We

level. we Directors don't have have but as already Group the XX.X Directors the the for that guarantee subscribed bank, as believe subscribing going that the there, Director We process we by and the year-end today, roughly I today. that will any, who a market discussions Corp we our is conducting positive. we only release But homework. shares, are that And the the And of focused. are have in doing to I by know, what a the be new will about about we CorpBanca. to are in meeting, this end if well will we to would As an I is participation information there we're market is the they the more announced have information, XX% the day this Whenever very The from -- information local acquired the you change shares on going have, the a we at telling. and new, be Board XX.X. not I the Itaú say, the details we have team still is have also have, will be book. bank there the book, the we on I to should of but that We're

having are very a We year good XXXX. in

we've we've positive Chile We for the we have the But the many Chile challenges in been enhanced know. in doing seeing in about as in places are we been now. LatAm, transformation other economy that and years you benefits many have as for

is how portfolio, Talking depend many this will I see. So about the it credit things. about

has year, been be be should a it saying Fibra that. in I general, next -- slowdown should and there So think

There economy will Economic about new depend So new agenda, government, an approach. the on it's election a there. XXXX year. growth be won't year. tough the is the new 'XX, and Talking

other So believe to the attention know, should you in cautious. and Brazil term. did, as good do should ones. in many countries, ones, the always We We paying There be we so as in are growing we should good economic we not but be long business cycles. be

year. coming for of So this the will the impact bank somehow pace the growing

So you negative, are more but than be months. for I our the coming we years, the believe we it's positive X see looking news to but what now give very difficult wait coming from guidance should to have still and

Operator

with today's at Milton time, this concludes may Mr. your question-and-answer statements. closing Maluhy, you session. This proceed

Milton Filho

do to here with much. this Very today. you Gentlemen, very happy call thank Okay. you

positive. are We

good delivered a we quarter. think I very

our would very in cultural we and Solid transformation, for And quarter. a digital the be the I here or of the quarters, positive say. the transformation talking hope challenges energy future And the bank, meeting level and but quarter, be have. the of everybody we'll coming individually good about next about more I to

very much coming. you So thank for

Operator

you does participation. earnings your for conference That Itaú today. holding our Thank conclude Unibanco for very much

You may now disconnect.

Itaú Unibanco Holding (ITUB) 4 Nov 212021 Q3 Earnings call transcript