Itaú Unibanco Holding (ITUB) 11 Feb 222021 Q4 Earnings call transcript

Company Profile

Participants

Milton Filho	Chief Executive Officer
Alexsandro Broedel	Chief Financial Officer
Renato Jacob	Group Head of Investor Relations and Marketing Intelligence
Matias Granata	Group Chief Risk Officer
Andre Sapoznik	Executive Vice President
Ricardo Guerra	Chief Information Officer
Carlos Constantini	Executive Director of Wealth Management Services
Andre Rodrigues	Payments, Operations and Marketing
Flavio De Souza	Member of The Executive Committee
Eduardo Rosman	BTG Pactual
Jorge Friedemann	Citibank
Gustavo Schroeder	Analyst
Thiago Batista	UBS
Mario Pierry	Bank of America Merrill Lynch
Geoffrey Elliott	Autonomous Research
Tito Labarta	Goldman Sachs Group
Henrique Navarro	Santander
Jason Mollin	Scotiabank
Marcelo Telles	Credit Suisse
Domingos Falavina	JP Morgan
Rorbeto Garcia	Analyst
Rafael Reis	Banco do Brasil

Call transcript

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Renato Jacob

[Interpreted] Good morning everyone, my name Renato Jacob and I represent market intelligence in Itaú Unibanco. Thank you very much for joining our video conference for the Fourth Quarter results in 2021. We're streaming this event from the headquarters of Itaú Unibanco and have three parts this event. In the first part, we'll talk about the results for the year of 2021.

Renato Jacob

[Foreign Language]

Milton Filho

Language] [Foreign

Flavio De Souza

Language] [Foreign

Andre Rodrigues

[Foreign Language]

Matias Granata

Language] [Foreign

Milton Filho

Language] [Foreign

Andre Sapoznik

Language] [Foreign

Carlos Constantini

Language] [Foreign

Milton Filho

Language] [Foreign

Alexsandro Broedel

[Foreign Language]

Ricardo Guerra

Language] [Foreign

Milton Filho

[Foreign Language]

Renato Jacob

WhatsApp you [Interpreted] your This text screen. the link using part? for the Milton, us you Q&A on questions also are is can now. third you the ready And have use just your that remember

us use so text Instructions] we're whatever answer question well. can going number or the language can a BTG Pactual first from the in Portuguese Rosman [Operator website to Eduardo use You This or you telephone is the you asking to as event English. asked, bilingual the is question.

Eduardo Rosman

to you're peers. massive everyone. is from from [Interpreted]. We what this difficult who accounts and doing Hi, transformation. have a for already whether there's transformation have good to job of hear morning, outside. digital that morning, be we morning, good. question than better. you results. And a you Good is able know understand your that Congratulations for whether know that I know They're I transformation, helps difficult very wanted that to Milton. to had to this margins. lot on know better It's Itaú digital this Good done. is type performance about It's Renato. through going the

So years? is we're do only next to this accounting you going or the whether know that what or that something can out for is improvement transformation you tell is this better find in

Milton Filho

joining Thank you Q&A you, Rosman. question. thank all [Interpreted] your this Thank And you session. for for

the talked now. is platforms, have platforms right? it stage this the year, slowest So of is of crucial should our transformation. how technological of modernized. we by this far modernized transformation? goes I of beyond And XX% around end First digital this just We changing at the our about end the for Guerra platforms processing. XX% year, all, little the had set which this can And of

on is what to how We we clients. is the prioritize focus important the this. pivotal I point think more

technology a sticklers to boost that transformation. idea the That that a us is has have has end is or something that cultural what year, another And new with update, a I've I not important by will simple bank will points, when really control. products We been new. the XX% that a and modernized, been point that bank, coding good allow level of remote react for clients just And or major of process. mean, the I So needs quality really a to digital updated. a will pain transformation. of us having mean don't digital as modernized have the brings me thinks better. the enabler fast a whole that that decision-making to the is they understand client's a have I that matters to bank very want very We're And client's We that to to talking cutting-edge expect platform will the our faster, is time-to-market to want that there's that much. but to. us about say as

have, We less environment, conserving type making also we what and towards talk hierarchy. progress is about new lighter of with already but preserving in a good mindset what a also

chances, autonomy starting small removed want of to administration. innovating improving. mistakes, have give to chance and the We to making really We and more taking staff, layers have and our one and

indicators. more have We

is are last objective, This more are started and process qualitative. not more Some that some year. a

channels, our through We the sales the part and it. indicate while. digital talking are updating these did upgrading, platform Over We which and transformation XXXX, a of in XX% results. that our have already this cultural for bolstering process expedite has been does about that's modernizing been of

more technology. competitive And bank in all we our the performance, able when to a been our technology we monitoring part been even shows infrastructure. XX,XXX technology, This is really have amount more and making to been of And perspective, we invest productivity, in our invest expressive investing indicators have to that. prize. doubled are technology, according scale, data that comes be to already than efficient more it able of we guidance than that we that very that's and sustainable have a better in plan We data staff in just team, increasing or that's have and in been have purchases, revolutionized the from

think data to that And getting in So of which something XXXX. faster what clients’ looking even our really in allow segment. the to needs data take instead cleansing, when interpret will at and of you decisions further management, improve solidified we're to XXXX, just is a that us we really

So at achieved homework so looking only we laborious to do. have far. is at and we lengthy very results have It the excited lot a of we're also But have had, process. but we and not a that

Eduardo Rosman

you Milton. Thank [Interpreted]

Renato Jacob

the few Citibank. And Friedman one quite next have already questions. from Jorge We a is

Jorge Friedemann

[Interpreted] to much not your asking Thank said. about you. having my going be what I'm you question. operations. Thank on Rosman echoing Congratulations for results

in transformation, countries? continuing a foreign dealing For information. you're little guidance, I be more view your like to tax your understand quite lot was that's But and you, a to about past to branches a Brazil, wanted I message strategies from bit was in cleared with also clear. a And to concerning about expand think of asset The try months we have in or take. how you've of understand a interesting Mexico, foreign and or issues very Chile. that in to opportunity had is and it's was that you're been and is, if other market. well. actions cost you have what There in interest planning recently, really countries your or there in lengthy the going but we're premium interested I'd It been other a a doing actions in

Milton Filho

and few talk decide Uruguay, to about in questions. international The have to Itaú have but with good Colombia, years bit we a we have we and performing a environment banks well you are operating a [Interpreted] we been macroeconomic challenges. strategies, of Argentina, Jorge. What Whenever well. you trial Thank In our us. the that there. you, We internationally. been see treasury, course, there something also It's thank wallet corporate we have especially for despite this the Paraguay also been Chile ago. various and where have is and expand asset great results challenges, had has bank decided we Argentina, and Unibanco, have again Argentina market your of for

the to the have bank. independently see And more banks have there. have We a have I FinTech cost, an been start the from create historical value. And just a getting started, and very we signs cross-border always it's but new and have consolidated Paraguay, developed auspicious we we completely have still can it's Uruguay value a was bank, market And good do we're Brazil. we an once we complex. that risks still merger, for continue operating good favoring from shareholders. long-term short-term will managing that with a moment. but It's And in short-term, took our and been marathon, is adding exposure they capital the really will quite really a Unibanco operation we through platform issues, performance organization. perspective value creation that the have Itaú were points our over credit, at Not look at favoring as really to and And that decision, after right well some going some a are we task. long-term some reduce the right? technology We but not

balance. and up. to Last as profits crop this of already little And And challenge lack is competitive to symmetry a fourth XX% taxes our capital and have fifth at to Chile a level the There mentioned. perspective. expect challenge. from So Brazil, you here operations, We year, important it better appetite year a in a set point made less in tax bring the in levied because capital also that now set concerning there this it capital as and that is Brazil in results Brazil, we of or challenge. from still about a or tax to a makes and is the well And we supports the and few is we performance we capital had a costs is year, have There Brazil a interesting today. adjustments is risk we upon a internationally a It we us some of speaking. challenge have operations.

because is Colombia that the virtually at now and another a Colombian capital have a was to Also, share as expanded bank straight. to now slice good was as operations positive increased going because have a the is the bank that We to in capital. Chile 's Looking And whole, our noticed. challenge. impact operation moment we it. we you the we of so XX% And for that used And zero. acquire was have capital and increase XX% probably still

devoted been scale a share We've have We simplifying level. management and cost retail. X.X% operations have challenge team. And very the the want Colombia, And raise we market another in we small to is to Colombian operation. a in a structure,

there. gain we the there. So to assets continue improve point it's at profits But that to we're more difficult comfortable this and have to is quite that

that I We changes think a we the And already it's and as on focus number have don't is assets make mentioned. see benefits opportunities a in we and will or Brazil Mexico in reaping but consolidating results As a great international to countries. of great expansions, also have. improve we and into as think we for to operations opportunity, are already and new We'll that continue unlikely that we any see have a you focus. country I consolidation opportunities

at process not we we're course, in look of And the that. a region. assets So like in will

to I Of way. description, job part go course of we're think unlikely but that it's

really moment. at value but value a symmetry, for or shareholders. operation amount a number this to in short-term, impact of any of Brazil have full will And have an allocate generation I because plate shareholders We of think for lack capital and have substantial and the the on a focus we outside generate

Renato Jacob

we Gustavo. third Gustavo. from [Indiscernible] Schroeder into can question? Gustavo Shall the We you, hear Hello, go

Gustavo Schroeder

Congratulations for there hedged, Renato. indeed that clarify a if and presentation. need opportunity. for but would that [Interpreted] is. aspect, well treasury? account in justify meaningless Good They structure good. could don't to be go very has And This in Thank the may expect You morning, capital the the see subject may impact to going the still a capital having $X have treasury behind But back to capital look from billion a just I hedge capital opportunity not the What We maybe if billion in we that? $X you could capital be is And less have and Milton keep treasury. operations. results. we years, I about do believe the you're cost? try and isn't, treasury match are there impact hedging. be going cost mismatch to your of a neutralize doesn't I'm this understand and on one-off believe wanted mistaken. you to liabilities this here, is an I this FX expected How what think you And I that's on right? a hedging $X only that, of like couple XXXX, a for upside this you billion rationale so onto assets

Milton Filho

Gustavo. you, great again. you Thank It's to [Interpreted] see

a way capital. our hedging me we're bit strategy Let going about that tell why and you hedging with little

using equity hedging. were bringing Brazil to other countries All of had from tools, derivatives we with banks back the using and

come There well, when it of as the though cost over taxes. substantial high there, know in Reals. and we've of with And a was symmetry lack opportunity. BRLs, that, to So hedging you always would doing a comes capital in there was is been back Brazilian

second XXXX. element that half of first first half hedging, XXXX, the the overhead -- over we working started hedging, of the So of the is in the of over with first half second half

that over now. is So

the that's you So is have I'm equity over tax only in FX indices. alongside wallets side currency, We the and talking go reals, had not of Real, RWA through our Argentinean and coming is Peso forth, the would flip more the you and It's actual took. with less so the bank now. had only for and will being the to a bank generate all as going to can't to the index point difficult depending be on the hedging these There vary And adverse of was on so and that they but buffer credit, past the we for for also capital credit another the important or is the -- that Peso generate in only about that if to that RWA because We tax a decision where that from a always devalued, from would we value or that deal Brazilian currencies hedging. of hedged Chilean a so with what currency. control. real aspect is manage negative the consume then able that's so capital bank, have have a coin the -- effects you're capital you the dollar.

have index opportunities bank may and control lose or to lose you XXX We index. $XX we to points is this X can risk capital it. points in lost the it grow need generate capital and volatile. whatever board, in you you can't your And is the that We So the recompose profit billion capital. XX Tier and the set appetite have because may to mergers acquisitions be. that flexibility by

then there What and and hedge that international capital the the a lower the market capital of margin because in due have at one is election that with and had think because allow the is has the an because to other -- -- to in devaluation good We of than the have billion year. will And practices? have that, to example. the if client. interest is increasing look is point a and can that appetite So But pivotal which grow generate very this allow $X acquisitions figures. other the We'll work rate, more substantial the that the be the current can operations And new bank is because possible being risk interest the one, FX with over-hedge, ending any banks we rates. Brazil, of this could multinational decision this and results exchanged then cost it index, generate I to important Then of cost. ability and normalization will rate wallets. cost is the then we we flip took bank for bank to margin see with And interest merges we for the and grow opportunity a and is of opportunity leverage can with the and our rates the lower estimate we with associations, the coin us is their businesses side point.

and we level generate value more the flip for side with shareholders bank current the generate also more will the to buffers. of will the allow the So leverage and operate value reduce as penetrate coin to and will of uncertainty more you can

we a uncertainties the this from and right level So what day, to But time. About crop billion of very a value especially -- that opportunity. little little of But I give hedging It creation the a capital we to of said. cost the change to wanted shareholder want be less, positive perspective, in a at for think It $X take. more, structure, around think the hedge, might could this we for is a due is we end a the I hedging up. of and bit or have be quite bit these is can decision strategy, course here. keep transparent

Renato Jacob

Thank [Interpreted] [Interpreted] to And Gustavo. to you, you, we're next the go Thank Milton. going question.

many have up. We coming

We have UBS. Thiago from Batista

Thiago Batista

will How Congratulations picks, carried there operations results. Bank market? have credit be The decision and what out through a will that credit the will that transfers. approved [Interpreted] be will central that impact recently; on project on your affect

Milton Filho

Fixed you, is still see great Thiago. a to Thank concept. [Interpreted] It's you. credit

yet to So details that's the be we going how don't working. know of

on the by clarity that be of should there is year, the expectation end it. Our more

important that fixed is the come the have crucial stay. more for point that I there to is is But definitions. operations So here think period time a

don't start, all really our the against on it from channels. current of And prioritize, really. we have embraced We the so we swim takes

transfers transfers. We or to the to that really our And embrace have And individual to a make we has about with client And really whatever XX% market however wants share opportunities product and [Indiscernible] want that. an can. client with payments penetrated become key we we base corporation. for

our Our delighting run, of creation and In vision value. with is them. lifetime proximity customers long the value,

extent, do careful But that sandbox, add you edge purpose. guidelines since for challenge to includes we we'll relevant But that already use terms anything in to the see to quickly the it many be to we of details, We've the customers, be quarters. are if relevant have that, good for as if for to once the whole, not It's for also payment to we fees it that. that advance than PIX chosen fact in want happen. I'm in an do that market, exactly the a was the better it's our our We going to need next past. waiting good So That's to in some want as and it. think In we're disruptive the for and income able everything XXXX, important and will be done to bank. And shows ourselves role. that market in it thinking. that whenever to that's to. in give on open few give has we to us and know PIX, the leading we we the you again, maybe of for quite PIX. it how we want that to core that's the don't the customer, up of some the for have revenue And

Renato Jacob

from New question next you. Bank Thank Pierry [Interpreted] York. Mario from And of America.

Milton Filho

Hi, Mario. [Interpreted]

Mario Pierry

hear you Can Hi. [Interpreted] me?

Milton Filho

Yes. [Interpreted]

Mario Pierry

results. opportunity for Thanks Thanks. My congratulations on XV. question about is and the the [Interpreted]

-- your understand and strategy what make to You stocks. attractive. a you're want and seems going at how price buy these stocks with XV you're that be purchase to going do to going you're have when I to the to

Milton Filho

to question. And again. you for thanks Nice see your [Interpreted] Hi, Mario.

familiar quite and negotiated waiting two the is You're a sale for we things. transaction process XP. This we with And that XXXX into made was when were with process. back purchase a

First, to the more wait for regulator's Central by some Bank But of need was minor the approval, thing the the formalities. and that We Brazil. was some XXXX already adjustments, still approved results. main

formalize As after reach published on of their know, exact few now how we to are purchase. which times The we with of amounts the were about And to you now, are XX.XX% we we months. XX.X% based talking XX the amounts week, XP. increases, profit in and results a And this price 'XX. the the capital negotiated And calculating a negotiated them. next that

So more we the to that XX in XX expect or upcoming the able finish we'll days, be transaction.

about from process a off given first it's and afterwards, the just spin perspective steps. the decision bank to size it we're shareholders And the a and that So non-strategic approval the and we complete can to want of to operation, talk all perspective, control and the operation deliver the the next set. naturally, you so made not purchase

our So that only focus. is next And the we'll steps. discuss then

Mario Pierry

Milton. Thank [Interpreted] you,

Renato Jacob

next Elliot Our comes from question Geoff from Autonomous.

you that [Operator welcome. today. to people choose Q&A session listen whatever to reminding Instructions] can the language want Just you Geoff,

Geoffrey Elliott

What's growth into financial interest mix, in you're pieces terms talk Thank you. about and spreads, in so taking the financial stronger in the that expecting me to rates? loan for hear The okay. the you moving more you're bit seeing growth of can and the that Can you go margins driving Hope margin Thanks book? with for than portfolio. outlook much loan question. a that competition, client points

Milton Filho

But to growing was Geoff. quick last we year And a just been you terms as with we've had you quarter Good very your of you for as very give strong financial because margin clients to reason we built next and again. Thank view, strong. a to to a the have clients. you, the question. portfolio. believe for The in know. in And portfolio see financial strong four in with three healthy yielding is two very we margin portfolio months. the been a why this good year pace has a year, that very last Thank

of of in this portfolio having a is full-year XXXX. an So there effects inertia the

important one is this So component.

The other rate working one the capital. our is interest in

been from Combining has XX% that have it working that the numbers those investments financial not but an so the we our impact building, investment can in know, the margin capital basically reason plus you capital, the the believe we As portfolio that's it in have we grow effects, round investments, has the reason. the is our impact. of why plus in clients, XXXX. This the positive impact only also working we

in have, take If already did a But that you come will from without pace we XXXX. us we -- additional in what be only take any accrual we -- will effort. portfolio the we the XX% XXXX still where different this in

can under in felt go very may the guidance. good growths in of we as portfolio terms as see But well. you we So mix

other growing XXXX. then retail months see guaranteed will saw couple capital hand, in we've see in we the We building opportunities more in in the the wholesale last portfolio on as So the margin how on good very of we pace. evolve a with still clean But portfolio us well a which it clients. side, depends growing. clean important venting lot products, a that been But helps the on we recover see markets with retail portfolio, all the will portfolio, of the products. But the

that this we how we So basically achieve in XXXX. should is believe

Renato Jacob

Thanks, Milton.

up from from that Sachs. question welcome. Tito, the English, take all Now Goldman Tito we let's Labarta warm in next

Tito Labarta

that macro, provisions know X% you so. how be deceleration but the the deteriorating rising. it's GDP, Renato, to how and that Brazil, in of low Milton of feel slight recession, a question loan maybe taking your question you will terms in My or growing of potential from a for also. into with my do follow-up, for you And growth, teens. just this with double-digits bit little growing growth morning, a growth Good a prudent bit your expectations Hi. or terms of indicate particularly thank XXXX, I little best but in comfortable given -- year,

you you. of macro? in give at and how bit more you for strongly that grow can growth weaker think like comfortable for why of the growing retail, what you little kind Thank color pace? corporate, you that with Can so So are a terms segments, implies

Milton Filho

what see minus portfolio. Good Tito. Basically we grow again. important, for It's about XXXX. X X.X%, you we to it's that is there question. still let's see Thank your a have but GDP the that for to is opportunity you talking say Hi, we're

nominal consideration, X% think we're XX%. credit this compare GDP we about at growth, and X% and I grow is in and have the take is GDP, that look process when portfolio around to talking and to to an we inflationary for for the There relevant nominal in with a inflation portfolio should XX%, the important Brazil, XXXX the portfolio growth.

are very the comfortable we So with pace.

have we to course, about way knowledge tech Of decide in a very relevant credit.

have are above clients, the lot We the all polls a of information we time. taking the

that. if feel to feel we And So comfortable, more we we we do deliver more. have slowdown, will will if

nominal I question pace talking I think base. about has have credit, believe, as of our did In So the best grow. natural XXXX, that important a portfolio basically, in now. in perceive than this still XXXX, are built we is portfolio that pace talking inertia but XXXX, know portfolio. slower we we slow talking confident the this of But for to was is that credit, that what opportunity. this with of the implied course, cost other we It more of XXXX. we already We're There believe highlight growth. there We it's about do pace, hand, look a our in your has should expectation we growing is when to in cost will healthy do

of portfolio, behind pre we about the to that is So talk should to the it's pre in perceived relation believe we and in the our in index still credit grow, we cost what -pandemic. the -crisis, important but

of This important. still we healthy So very we're going relation to cost portfolio. and to believe is in get credit a

has Second, even portfolio a and diminishing it though end an have year. are pace, the we the we the the believe should in healthy index, we impact so by of

keep coverage, of terms as we have should We coverage. believe the also saying. been delinquents In level same. it's the And should increase a healthy of we

happened delinquency that the remember we see personal in be but the might the now. be it This this said It believe quarter. we'll growth coming our ratio. end. right I still seeing delinquency on our last projection stabilized a portfolios quarter, is would We a You best ratio year that by will in up

So comfortable with also we been And those feel very of value engaging the still clients. increasing been clients. of We've return the we've risk the portfolios. more the about lifetime of dynamic

bank the in the So year doesn't XXXX. end

So long that relationship term in with we and relationship, clients the lifetime and the the enhancing we looking our and ones, the the And building the of have. are about value course. portfolio new

Renato Jacob

And Milton. next question How [Interpreted] we you? then Navarro [Foreign are Henrique It's to Language] back Portuguese. Thanks, Santander. from The go

Henrique Navarro

the of more this risks expectations. guidance caution greater our of And guidance But is that and was a I message was okay, higher at Maybe was And good the our [Interpreted] I above players third you've is projections Itaú sorry, different are level at about seeing will our for that is really the published. we talked X.X% maybe great that maybe that way bit you being XXXX, was XXXX, that not why was the you very accruals, and XXXX much risk that extensively as we're run being is yes, to very [Indiscernible] really you number some in out conservative, a inertia. know about able [Indiscernible] the at And I really the the impacts the and to deeper it's you. the Thank risk for on message Thanks I returns. the congratulations. and for that shed the why subject. with bit Are aligned but and taking. warning that's it's the risky, maybe thought the this one high. survey seems X.X. the than better accrual. In to way, you. opportunity it's Q, look that, this XXXX, we're to The was for -- into delivered terms dive guidance, in which that it going of market, there for is is between strong if misalignment considering scenario. more still, what of people says could scenario the Good. I you format light -- look Lots manage to for message the really talking I'm can talking risk meeting seeing a the credit great. a you a accrual probably but When of of banks but so you're something growth. risks on it's we're risk. first sent returns. you dangerous? initial And and a be to the able that back make growth -- understand in negative Thank the but [Indiscernible] you GDP about challenging And cautious? we When by this and interpret about for was look you're should XXXX, expectations mostly and minus growth credit, the monitor

Milton Filho

[Interpreted] Henrique, to again. Thanks, nice you see

relevant. important and in comparisons are I some think But clarifying that on that question the you depends think extremely aspects. your make I aspects is first, some everything that

we had regular the and pandemic came The in first stopped stimuli, and two XXXX, XXXX XXXX people about are is when several fiscal years other talk one comparability a year. consuming. of in terms fiscal 'XX that difficult In stimulus the and very you and

more is in were we that's last stimulus. metric. the see that we you or go did to And would I happen delinquency rates. The not so imagined it's important such there of XXXX. of continuity to job repay XXXX more XXXX, less reasonable did untouched the for a not see a at gradual In and a scenario normalization If since expecting volume interest consumption, a a scenario. XXXX, And true of in the that delinquency XXXX always XXXX, have a accruals we we been that told XXXX, anticipated kind lower. we happen, hired. a we less credit complementary In We that lot. capacity perspective. adverse better the not that would XXXX far. The look of much So that's which accruals, rates. get And aspect was incentives to back quarter. saw in companies were in an of delinquency low that people's That's also rates that checks a capacity, we good why increased second If that stimulus and

at it in again, natural a effects, the portfolio. and this we delinquency do fact look biggest that I it's I'll you'll rates. its not effects the This been have that not [Indiscernible] not well-behaved though but to lever persons. but does we're sell see going portfolios using are [Indiscernible] you in we the and delinquency made which that If see make does comment in did is it haven't numbers, say [Indiscernible] even are we

R$XX $XX over had in is we Our delinquency XXXX very [Indiscernible] that are the flexibilized recovery. play the good. clean rates quite in for that LGD, really been with delinquency rates a would are And about is a was that it by another program, possible And that has good and really portfolio XX%. was customers reduced important. with We portfolio. our the There's pure in And by of dealt we what most what good paid. our We end and installments the be portfolio, healthy them have aspect relevant that offering remains the the them are billion had good we portfolios way delinquency numbers. which portfolio, in and billion to talking guaranteed that are in the rates

next if loss work with and last comes time. year, at the grew provisions the So XX% look model, the years. the the And the an natural. with We credit cycle accrual than portfolio that three you in of the expected bank in anticipates that's by and we more

a I And guidance. the that in increase. the cautious. we're in was XXXX. just seeing cautious, we're expected This for the and that's is there The So phenomenon margins still And less expectation being timeline. is mismatch best the loss our but is being

do know, that the credit and going the reduced expectation results credit not during As If simply the make turn focus on will XXXX, blind need our cost the and the year. to not adjusted adjustments, we That's instance, intention. you to a for for we on best we're we our always bank In expectations. lines. eye we

consumption to material So and which will reminder, this -- of central if an deliver no and a of is guidance, and is make we XX% as our relevant. accruals, them to we there around expect of will expectation there ROI are adjustments, complementary we is

billion complementary around using without any $X to seeing $X billion accrual. growth You're of

the cycle we difficult I harder if accruals. And credit always balance that. So have and good. deal And think quite a have we we'll uncertainties, is more complementary with have or greater leeway to

the risk are quite also the and think I of just healthy. portfolios return natural. It's

have coin, question And at margins between you that's nominal side so XX% flip Brazil will there are over customers. in results we be but doesn't is during of portfolios XX%, But again, the portfolio for in customers the increasing, rates why to that your a uncertain, seem the relevant. which increased see if a XXXX. you nine, if these eight products for mastery that And we is growing that results. look and is well. these the so interest we necessary are and And legitimate, XX%, cautious also future know GDP I think or

Henrique Navarro

Milton. you, Thank [Interpreted]

Renato Jacob

[Indiscernible] Mollin. For be It's the English. Jason. in Jason next going to [Indiscernible], question, [Indiscernible]

You choose can [Indiscernible] your

Jason Mollin

capital [Interpreted] I model. XX Slide slide. the like shows XXXX, you to in I I'll should question year was XXX% return of think and of sustainable was business there it, value the in on regulatory on given had the and that we year, the almost returns segment How would and Milton publish this the portfolio. on of business generated of What that ROE my the refer ROE XX% guys generate rise can -- on investors guess context, sustainable a quarter the And to just And a I X.X and billion in segment destruction, XX.X% time. the I every for creation all ask on I this you I basis. this XX% or in value guess about call in you. in review new around mentioned, insurance formats. Itaú small XX% that wanted services English. meeting's Itaú like that from a and view this But credit the Thank segments? the it's

Milton Filho

Hi, to information. It's business that know would base. model you -- even are maybe in Good I'll what way Portuguese model, the here than answer better though year you. you very Jason. business I Thank English. the important about seeing this you. tell provide I my to the But English, highlight see we your

So credit bank. creation the cost we of of didn't a capital when when had value or it's you perspective, the you consider true look have for any the we in capital hikes

last saw So came you look we on credit, you trend the as from revenues, generating But the positive value. when that all quarter, value all we from basically, were creation from came the service, saying. the so had

But credit credit you for be So we full-year a looking achieve bit little about bit lower. can XXXX, well. talking little a higher, value-creation set. at on are may of cost we that We believe are as able be XX to a

we we and these we delivering generate of costs, see when on that, to has side. even if value the bit a and look for are creation very [Indiscernible] So pace service growth. the But we important shareholders, a on good very what little

of brings our penetration the Deep reciprocity cannot and clients. standalone relationship. we the forget credit for from So what is this look that

and relevant So lever credit, for a very it's good that. lever

just growing have the somehow that it's So important management services on I investment last that general, mentioned We with derivatives other quarter asset products, very other for credit reciprocity, the and may for interest cash on this believe all positive. the our see that we the may help especially in clients XXXX lever segments. lines, returns will for rates But do any effects for all we reasons in we the we the was that. have value management banking, that

So that. are much we pretty comfortable with

Renato Jacob

Telles you [Interpreted] Next from question. How do Milton. Marcelo Marcelo? Credit do, Thanks, Suisse.

Marcelo Telles

Renato. Hello, [Interpreted]

Renato Jacob

[Interpreted] Marcelo. Hello,

Marcelo Telles

answered, take the [Interpreted] as here you an to advantage about were for strategy investment ask Thank as presentation. questions platform. of Most to already but for the you format, my this Thank your well. I like

mentioned acquired Ideal use platform to as want technology to to IFAs. on leverage plug you and and the the You you want you

like about means products? you how transformational exactly, products an the Do related? hear within and is So distributing investment XP How I think investment you. your strategies it to your Thank from for of would Itaú? see create want possibilities can to you what you we that platform and Itaú

Milton Filho

you thank again Acquiring Thank at role question. strategy complement you has see [Interpreted] in have Marcelo, our great to environment and your very we to you, for bank. And a it's EDL the market, an very to you. percentage points acclaimed our important in market important X% the We share. In share share the points. of information we market in got two Banking, increase Private it with more had grew

the investments share market share, have market we absolute in as segment, lead well. in we got XX% this have We and

got are to out, bases, points we there market So coming in but always XX net, approximately. share and

our plan XX autonomous, is in we but offices, expanded audience. We or offices cities. strategy believe not to but big the we private into XX staff. -- general that own So We growing with our open public, our registered general

should are penetrate grow We in XX present in the cities course we cities, year. XX and other and this of

number the X,XXX focusing year, and branches and So offices end substantial XXXX, of on over have IFAs by of investments. should we this

support and that have which role And XXX from and platform And for high the franchise us, had exclusive relationship thousand will using over and so this now support and the getting IFAs enjoyed have We're have further manage the giving model, specialized clients it's this clients have group work they really manager the digital really the to we managers, [Indiscernible]. was income. the clients. this new This orchestrated. the very with We on. is using our been this model and strategy already very new and been portfolios. we Itaú has It where personal with migrated model. mentioned satisfied happy hand-in-hand how advising And

just well. this Andre Constantini now, in really from himself been have and putting heard You

a has few Itaú major So objectives.

market we markets operations traditional trading it high-frequency upgrades and mainly. First, it is some [Indiscernible] in

that edge get than edge technology So ours. this platform They have is better cutting an from we them.

that's point. So And another capital. is the the concerning human point second Itaú

bring notch so they we as to whole the professionals we to we top other us from to flexibility experience, strategy, external with can that our allow offices own value wealth strengthen our of also and team, to and Nielsen in our go should if are well. offer develop understand markets they So Autonomous and offices a penetrate

decision hiring Autonomous there for own BXC more conflict to own how teams how and towards unclear bit teams. in we're be It's platform, -- still model this. going moving develop. more between teams. teams is and And their can to own some this our around But with are and could more a Autonomous clients. the deal staff making with we plug We our soon this easily around And

So still this we're is model discussing. a

And more matter. on soon have this you clarity should

Marcelo Telles

you, Thank [Interpreted] Milton.

Renato Jacob

[Interpreted] Thank you Telles. Welcome. Domingos JPMorgan. from Falavina

Domingos Falavina

NII in then to provisions. that everyone. levels, The end the for Hello, do will working at more see a temporary you until coverage room items consume morning. do get this will here I just that be it probably see profit My has cover level coverage is will initial high this this new some with trying to This am XXXX? very you PDD. [Interpreted] of coverage. of the of have, with to is Itaú high bank and higher your What more we assumption XXXX. Maybe there's that was no and net to question at additional this room is a Good movement the has for quarter. Is positive or allowing and we there that

Milton Filho

talking about point We [Indiscernible] Great our already will non you flexibilized like to didn't to also you've break flexibilized portfolios. the Those you. portfolios In - XXXX, who expect budgeted Domingos. for complementary that. your positively raised, not need only What portfolios, program. try good and year surprises point. see the I and consume it is we That's And how question, but down. the behaved. Thank [Interpreted] it a

allowance us bring with happens is complimentary that which portfolio, at course provisions that So will the we're this right as makes tapping comfortable What to looking we're and consume the reviewed we will comfortable. that. we work felt at And complimentary return rate in costs very we the very moment come reviewed we risk levels, very higher the compare into And the The the on understood we provisions. guidance years to not still retail year. and when the NPL losses, look forward in. we And we guidance also to down the about operating was expected credit and previous XXXX. We of not provisions. comfortable

formation. that NPL of the So we in provisioned. to course convert had the that XX% And of time. expect we

We normalize. time, should formation. the I'm NPL from And portfolio. at and loss. I bring when retail and the well do. major delinquency this look go should lot We So our manage looking at the expectation of you course and We the retail you in as a in should with provisions that, come And clients through time. forward bank is of that the of down, the come use know NPL It don't expected as the course time.

the comfort, In but the not reduce to as quarter. goes operate it it the scenario past So plays out but XXXX, line idea where the will depend in is if XXXX scenario the complementary provisions likely in the We'll made that. if level normalizes, same probably said, presentation. the is of down, base forward expecting it the not -- scenario coverage we in scenario on for the I an I for saw to coverage to as some may the is levels. the but our fast, mentioned we're as were which to consumption on This now. ago, is, that happens we have in happen as make XXXX, one quarter And of provisions, possible provisions, looking it maybe these right our of and so which indicator we'll consume is we're that's did us use -- what of a coverage good use

Renato Jacob

from for our analysts Roberto [Interpreted] from last to Thank Thanks earnings meet question you. attending It's Roberto. now Hi, the comes call. Garcia. good Milton. The you,

Roberto Garcia

was you you tough macro so, the particularly well. impressive, as I very It's nice question the conditions. seeing call. Language] Thank given guidance, for [Foreign the on My guess,

anything particular that Thank could of conservative us [Indiscernible], on Is So that there concerning? particularly that find there that wondering you you. -- being was you're are how anything color would anything excited as if results. in is I guidance, you terms you could about? feel the impact too macro the you you feel that And give so some in be

Milton Filho

Gracias. Roberto, you see to you. good Thank

to your little grow saying, a too I constructive to the the opportunity So going first question, was we're was before portfolio. about as still,

at of of a generates there on made course, And provisions We portfolio basis. to And the in the of timing very this is in is mismatch how course, some are look nominal and margin. terms the relevant. have GDP, how

be we has will I [Indiscernible] do two last which in So the portfolio. three the to seeing with we've think years XXXX, growing to warriors, been

is that the risk to So pace. we're good fifth return very in consecutive this portfolio year a going

So this is our view.

grow. credit to of cost the expect we So

was I explaining reasons, for a the ago, said. I As little

we is the So beginning, that very right now. as I said, do estimative best can this in the

will year is We down of will be the we'll throughout not, to be the delinquency opportunity slow how conditions, year have leverage of evolve deciding if or families. understanding in terms if the there macro And we grow. to

we've So in been natural with this there past. is are the portfolio. the doing we as to is inertia doing how a But going be

As you in piling retail, portfolio. be the the you'll know

So retail very our reduced from, when manner, to growth you has our on say side production. providing the pace to the credit a market relevant to we a the important in we had crisis, the the of so it's look very last share clients, months XXXX. and -- we this almost for in lost of XX% in XXXX so due natural impact Coming and

those the a have been This very were clients relationship that share in present deploying fair we've as very in credit is at the recover Some market has an close past the time. we that in of in that market the to not well. and years our impact we

I to positive don't it's negatives. -- very fair believe the what guidance, the it's guidance, Looking I or positive, terms see of in the

best say. it's we think I that projection the

terms has earning before tax. numbers the important an implied think line bottom of I in growth

say coming we months any would see or best I how and those let's the our positives negatives. So lines. in there of is adjusting necessary be is This if no should projection,

Renato Jacob

last question, [Interpreted] was it but it I said isn't. the

from Hi, Brasil. Banco do Rafael. Welcome. have We Rafael

Rafael Reis

to [Interpreted] going congratulations all be you're payout. bit short in going morning. I your the with what question. of Hi, me hear wanted growth? you What doing or Thank support on profit format made? Good the my make and payout, everyone. this regarding and you've about expect having results. this could to what for term, little And a And you

Milton Filho

earnings There share, going since Well, you be and possible you're right? question, answers your always distributing and per point. with comment per for this at at Thank earnings-per-share payout, what to for profit and share Rafael. looking profit we're to two The to [Interpreted] the are do payout.

With going have improvement naturally. we XXXX, dividends the to we're in had in improvements

of We regardless capital review changed dividend the haven't our policy of indices.

is I we opportunity nominal now, and we for of that look to the policies an the you opportunity there pay some think and we we're to figure review target level, and not forecast, have If be grow per go We now. we're creating the capital levels bank to while to still quality or and growth the that then profitability target. I and the of at a bank, increase for entity shareholders. looking our ourselves continue have We're there franchise. bank for But on we indices a to still the We payout that, needs there lot and payout still a out X.X the up. bank lot is have think with right value dividend depending the very tell so to forward, apply then the capital XX% and bank to I the is can will have is that the we believe to shareholders, value number results But so share. could create a can't have to value the capital the because for is committing achieved. of point recovery that grow show distribute achieve. we to There have that committed we we a we Also policy. commitment This dividend's growth capital. that the below that that with

Renato Jacob

have at there to a of you still we've three question been directly bonds XX we're lots answered on and around already. your of question okay? your thoughts, your contact Could some have in initiatives been not has our for like And least Milton, We internal I'd terms what initiatives and [Interpreted] two you share as the them or answer that in ESG reminder, ask issuing team in answered questions been if minutes, of regard questions, is questions and maybe XXXX, the a minutes. getting WhatsApp. Several last please? But will just to green ESG. planning you a about RI

Milton Filho

agenda. everyone since agenda united been was a few has We [Interpreted] AM. to Jones Sure. for few council day it's on a had we over $X.X To the for things or significant. your there been the emphasize the starting billion. Dow initiative. It that a works fad. us, donation Ever are that evolution of very relevant. always ESG course joined point, health at It bank. like bono And tirelessly years. allocated last Index, we Sustainability the quite huge we've over I And [Foreign working not that X was Language] pro And constantly by every a was the

clean reach To we by XX% $XXX green that series in it, and recent proud So segments we impact of relevant, to were really ESG $XXX like energies, really made We we that of and our of, segments the a the an the give by XXXX, what's [Indiscernible], sectors of magnitude, it to to increased credit points. volume important to we decided in allocate XXXX. or and million lots terms all you and or a renewable other think credit announcement to have that agenda. was I energy, for reached we whether we billion collaborators. and tackle bank, and structure of Well, high benefits the operations intend bring commitment idea that us, of about

I a Amazon this challenging, and agenda. that So sectionally it's the We that country. reviewing. It's And group there's [Indiscernible]. it's hard, together also, to a an knowledgeable about very lot needs And cars, The it's that on part the numbers council with going sit but investing with will can that only Bradesco impacts But investment The subjects that lot are members of and slow a high have that's our cars. extremely a agenda car, not been in mobility bikes, something great that successful. be it results. council, complexity fact that a important electric really always you is mention huge making. we've believe we these that's of the we're use it's

results the really first of are test positive. The pilots

important, to be So The talking also about that's diversity very is it agenda and going very prominent agenda. soon. we're

direction the agenda the blacks people it's an to participating, -- treading, important to really not actively something the discussion Women that's that with most but pursue but about we commitments, not more of in Our have that committees terms have want getting that working sexual goal, that I we're headed. need rather to are more and this goals the we're so on. is succession reach, in in believe we're and orientation, women, is talking disabilities. voice thing where browns, we we path

to how this zero that dedicated areas going that So that made it's huge a we're in And in have terms commitment customers about quite progress net by diverse also agenda has has support There's a and we to and corporate we been of sustainability, our XXXX. have impact talk governance, great. sustainability. In we our the project.

law not want do we We enforcement to have be So agents. want commitment. to

to be long-term all ESG So is XXXX. well, you're going that by commitment, that's away XXXX it. zero because that it's when not It's XXXX. greater. This created the the future but even problem to say have get is right? by joint I and board the that just first we your it subjects, not dedicated We going far and half for your you We're an was And sign into are important is responsibility to plan things we signed working it's corporate project, it I a asked of by far for then process. a that a we're will successor, and signed, we reduce to always governance, is important we've reduce year. just plans when dedicated terms bit in plan awards that Net And the got There to away, departments that the that question very very on important. this the Zero

of finance worked else. everything commitments, recognizing the industry awards financial You've our the and the quality in statements,

we've protecting and best our extremely relevant awards. been getting practices we're So

for across agendas, So that the of top in bank. that has that. a with at it bank is separate be dealing and we've I area cannot this a ESG departments I list. all believe been our the a of about believe all talks presence of has to

Renato Jacob

[Interpreted] you. Thank

we talking But spend I questions. an this, our that two of we hours could think more have time's about up. so endless list I've told been

floor your answered, your to you like we're words If goodbyes. you. for and your give going question to has to back been back the I'd get final

Milton Filho

you. at Renato, the was first, this thank for to much different and the of Well, for present a you [Interpreted] format day event, leading the very end change meant

our with team committee. that about positive can thank our tell course, them. that I'm from to want got high action the also we anyway, to the extremely wanted this all we to I levels happy hear energy environment. commitments are more and this and I results the from So its demand And you a more interactive But hear them and now means aside, really jokes executive from of to bit of I'd is want site and will teleconference obsessed to the and talked value. I've done about levels. want That's what been is is that I that engaged the with. to maximum I this Cultural only by that transformation, that we're something jointly, transformation with create this able because do it with Everybody at digital really and together so finish word customer. everything. doing be be we believe let's it repeating to needs work we is, extremely creation But

and each but we'll talking can a We're delight, We our of have we some of execute base and we're to believe more not talking has that to that please of pursue small customers this about matters, hardly. center that our homework And really I customers, one be them customers. XX at about and do, than million very the initiatives.

see more and again next you bit believe a will you I was. you. like Thank that thank be So interactive time. And one it this

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