ITUB - Earnings call transcript Q1 2022 | Itaú Unibanco Holding S.A.

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Renato Lulia-Jacob

Hello. Good morning, everyone. I’m Renato Lulia. I’m the Investor Relations Director and Market Intelligence of Itaú Unibanco. Thank you for taking part on our video conference to talk about the earnings call, the earnings results of the first quarter of 2022. transmitted just our the launched of Paulo. being Itau Investment financial is São so Personnalité, at event directly first from Center center This Faria Lima,

to clients personalized these make decisions. for And here all Here video service have financial experience we for offer answers in better an onsite a of you talk about to And we’re the going give we session. studio our rooms that for this I’ll also questions conference desire use seeing from and and more studio. transmitting to instructions our for results. meeting, the the

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submit button to You just press screen. have on the to the

For will our those the website. presentation and at at that the website website Investor the website, today XXXX-XXX-XXX, number message via there submit the accessing a presented available or for on here also is download of Relations IR be are you

results Now the quarter floor start of is presentation let’s of of the the yours. first the XXXX. Milton,

Milton Maluhy Filho

Welcome our XXXX. everyone. of of earnings to Quarter morning, the Good call, Earnings First Results

billion. when quarter. billion. result have you give quarter I of to Brazil, at results the compare we we’re quantity results. then we result first fourth presentation. look of quality, our a at going to XXXX, the Q&A of the start the wanted I’m some do information, about all, the exclusively of a And talking end presentation recurring traditional First R$X.X to of If going results, to we the of the And got qualifying R$X.X we it

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credit a and Now consolidated, credit R$XXX X.X% about had the R$XXXX billion Brazil portfolio getting billion. in let’s our we a talk of portfolio, growth to

that information we the the Brazil while all XX%, index less, of efficiency the XX.X%, at is at highlight the the very very strong. quarter this in in When the Another look below consolidated is looking – indexes. bank to XX.X% relevant running which is smallest and series

you records, that If lowest at operating level we have. look at the we of recent the years are

acquisition a of talk let’s Now, little clients, about M&A, well I the apologize. bit

XXXX, clients. digitally of acquired million we X.X quarter This

and products. it we’ve talked credit We products What – Itaú is about We and have agenda. DNA market during to want channels about this well, brought our highlight. several this in and channels, we the the do in a This I’m businesses interest, of We association. talk a all about always really that I and really lot slide? would of had of is that show the associate the to channels, this. like screen talking And we a about talk cards, ITI

have have we partnerships, acquisitions. We M&As,

We built only not that the and doing partners, with business as and have agenda of agreements several M&A This with objective, was that together partnerships. commercial are done agenda we’ve well. accelerated

active. venture what we the to objective that acquisition our we an what investment going relationship equity to of the will we or very And the depending the clients. other to And an are doing with capital in improving improve going fund but capture have to we of We that want or we also have are FinTech And that can with do they’re invest business. and and are partners we Obviously, our have companies are simply the capture and clearly strength are commercial on the can the company Besides, of corporate or just have also our a to taking we generated of proposition at be in companies value assure going to developed have part market. that focus the be not And profile associate have value to level the the are partners, these And other bank we the with more startup. the fund, this some ecosystem. a the for companies. that going relationships of we are of with strengths being is identify that bank. value ecosystem, integrated improving and a the value to

and to investors are we dedicated are partners agribusiness, recently cases. joint PayPal, our And to few Samsung, and we have a agnostic the really you our being also M&A quarters, clients and are are can and Reddit, a here, helping we done of Then others, is partnerships little corporate we bit the a ecosystem. marketplace have few give TOTVS, for We’ve We always that ventures start We’ve strongly. we the in And in equity our focused of with not exclusive is of And services very Ideal A capital, everything Paketá, partnership. mention I’m in improving here, ZUP, of we operation forever, Orbia, TOTVS. company we the that do which dive be agribusiness, to It growing financial have have we’ve Pravaler, and invested. done integrated start with business we’ve this e-commerce we value that about deep Samsung we talked building a just of is we that a main iPhone you to have doing portfolio, that sector. give on venture Monkey, clients, great idea, to previous also finance products, Locaweb, digital. marketplace focus which just six a important in TOTVS well is that we we products. Apple. capturing the logic color, is providing all that portfolio going but the and our in of known. client are And for an the our QX sense, sold

Now results. let’s talk about

give you information It me a sense. talking Let more without wouldn’t about any make clients. bit

very just more are can summarized to you the ourselves clients. a on we so slide is we Here simple organizing show focus how

me Let of start and definition of with the segmentation the engagement. public

we to bank, capture but we can the Here, of analytics IT, reacting intelligence, data best the in This clusterization of value data to and to the the database trying clients, real-time. of delivering are client have is needs? clients we have of with way who best and segmentation, only the of defining artificial and try the having with What and in science, own each in doing lot talk these behaviors conversation in not also using our a means investment best engage a clients science. talk learning. a machine Since our define

have data scientists. also with done that We

strengths our our with our end resulted improving customer. are client of combination and We and in pillars robust delivery this This teams. for a more

that a in terms what We so engaged to X.X in. of the if more I credit client, that we business regardless have more have customer best than not engaged can client with get that we client, eight engaged times clients mean, client of bank. what the less they is times penetrate than we the penetrate for we in NPS experience engaged. an in is a engaged offer the compare we more our the conversions times that the channel can X.X do have higher omni-channel in it

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growing we natural person and at we portfolio a portfolio, of it’s size drop. relevant about talk had a very few the the portfolio, when information, medium Let’s credit X.X% companies, micro, small the portfolio look

growth the portfolio, a at look X.X%. big company’s you we had If of

effect this looking spreadsheet effect of was robust and is is XX different natural portfolio of and medium a and of a XX% small size in growth year-on-year effect billion rates our a quarter vision, and quarter, so very in that is currencies. we operations growth XX.X%. – of evaluation very portfolio last portfolio slight person growth, our have in companies. this exchange the X.X% at regardless is of annual of had in a we the XX.X% of there growth in the allocated micro first the the an the growth Latin hired Now portfolio, in total, it In Brazilian the but also since in our consolidated real of rate American important the exchange done And

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it’s relevant. Here, very

If of you XX.X% the portfolio. person with is look of December our at guarantees natural portfolio XXXX,

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we renegotiating. to products, at with that this very short-term, specifically the portfolio, look This amortization that have are you more to of emphasis. guarantees, the This is the If portfolio. guarantees, is we because you clients see without they’ve the and products an amortized important, been of taken not when this real is renegotiated pay real, these XX% days not portfolio in

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having good performance. quality, So given it and credit And we increased. we shows emphasis with a how – not portfolio to have

sold We our have portfolio. not

start this for is very We those that have we and sense sold, if the sell can to useful portfolio information economically, makes But to sell you. not the clusters.

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compared to is quarter, a So always effect. previous seasonal the there

a days, in the so previous is the year. results what margin days growth margin quarter we quarter quarter, is strong that of can of deliver in regards less the very less the a with to is third the aligned So affects which business that last

be growth results, margin. we X.X% results NIM basically the results, very and you X.X%. I the already because a solidity, this margin, Obviously, would to margin, difficult margin X.XX about there in the then reasons. year. guidance two market. So with gave to our robust is X.X these are margin, we a the the annualize year the an the We very margin, from annualized When consistency Brazilian in talk average in increase in of have NIM strong have It

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end we when it we we previous the months with at of guidance, This months do important our is the spinoff spinoff. remember a the as had with that We guidance the the had when services after about talk based quarter compare very that comparison to that except you five insurance, in look was done the for of important, us remember May. already very our If information still first results and year. five XP, to

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result is Now, of important to highlight is the insurance. the what here

are We year-on-year growing XX%.

this look we’ve a growth, you the longer series, at If strong. the is XX.X%. this just growth very had longest the we had biggest on that of And quarter growth

you you of premiums increase see earned if can So an that look in at insurance, XX%.

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result issued estimate accumulating the have pile time. are results then itself. premiums results as You and you sales simple Very and regenerate through of the XX%, those XX% the a year recognized in

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you the back time, you told hope for I’ve third that If remember of year, you normalization gradual delays. that we the will go to long for fall quarter of a last normalization, our

our them with very XXXX, Now activities, two low XXXX vouchers, an made a period. levels. way very reasons, if low but – to very gave well. this company the and years, we’ve a activity, population in give to opportunity for adjust whether government an at increase delays behaving and during start a still that effort be resources The the more the lockdown, spent for made delay delays savings that’s less the economic with curve, there they’re the is corona several And it’s in relevant to the families for from gradual

better We a you are as reflected credit the of quality is mix, this portfolio, our I our growing indicators. the told of in quality and

the XX you very the at days, If the low above we growth. have look delay NPL X.X%,

look you horizontal. is If America at small growth is X% in very Latin Brazil

small a So let’s indicators adjustment important in this X.X%, growth natural very once small presence, small because gradual expected. if it and the expected. but you small is look there the There paying companies, have at presence is a the reasonable the attention we long our A the be in to very we below size have we are medium is these that movement, natural we very best at growth we and the When look growth, also And what micro, is companies remember, though what levels have a there where for would companies, stabilize an is records, stable. big expectation of again, that and pre-pandemic, the medium historical actual the to we I’ve correction are in delays, the expect. are even pre-pandemic. told an you believe the and

in if to And suffer any companies, first quarter this it’s then Just always because you of quarter, natural go of lot tends records, whether is have of more. back the the expenses. or the a concentration the pay very to a historical presence difficult lack

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looking the as we So margin. liquid are

So is very generating way. in quality, index capacity coverage consistent results our with of a solid. The with sustainability

at end, we coverage small XXXX, have at coverage. so XXX%, if of in average, the you of at a the we look if but wholesale period XXX% XXXX you look to average the ran the XXX%, So drop,

when look still say we XXX% to period. want I previous is So at maybe comfortable that

over our are default. coverage to very still balance sheet protected having we good a the well delays So with

here rates for recurring about to We’ve day Now day. talked this numbers discipline consistency interest is themselves. and our the expenses speak of

the done correction expenses So our look whether inflation for strongly the and IGPM interest period, when the if our indexes IPCA still on number is at non-recurring the payroll, all of rates. impact these it we is very inflation which rates,

incur that not expenses interest recurring do Our rates. from

still there X.X%, is delta We the drop are above growing and X.X%. the of inflation a in

we contention core interest see of we the drop of we if are that period. consolidated that effort do, look not we the cost the that volume operation volume, Very rates, So X.X% running to for of everything it from all costs of and on important bank this the you a quarter. at the growth payroll, year-on-year of the came the in core at stemming metrics, processing X.X%, look for can message, when expenses zero reductions, the

without, the at So we all in and stop still controlled any inflation of any time to absorbed expenses the future. increase investing in

we going of new to So the talk bank in what what businesses, the in expansion I of technology. to the do what invest, is going are we’re about future investment

our long-term result we’re This focus, looking investments the businesses, looking exist. up I are So still very you would solid at deliver the that we expansion, a been the bank, already longer can the investing with and growing a we in that reducing always ahead commercial level, series. can see for so cost we new has here, and businesses have a efficiency franchise, that our show And vision, quarter. to like

running XX.X% are serious Brazil. XX.X% of the lowest at the in We and standards

Our that we was the all The considering the first for we the no in have this are dividends of exception, take comparability We again enough had portfolios. expenses. the once growth we the robust the here. to to consideration. all that with And results quarter, into make efficiency, are expenses finance

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disclosed in we a lacking had had before. the Colombia year, that the We of of with bank Chile. was the Itaú that acquisition Over still part the

to of this we voluntary same back new, also XXXX. really launch So program quarter to integrate is in this of the expect kind prospective expenses had terms we doesn’t any there first doing it’s that the in what it do in recurring but as we that a have program the was in higher this was a now, dismissal with we but extraordinary thing It past. XXXX, what probably now. why time, than not the launch finalized a are of in we element, provisions this the that’s now, this the like of expect condition At now, expenses important results, expenses, thing this non-recurring of the provisions it bit for with most not the different did is little was we seen we have you’ve have And this. and acquisition, had

So XX.X%, we have this is ATX.

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in of this important Now, that’s to very it’s guidance, in think terms I be consistent coherent, important I think game.

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was that So disclosed Well, I should wrap – I guidance was to like you. now we would up we’re comfortable to the that with published. think listen still and

If thank studio you Renato so can this. you much. have I comments, any am back all so now to continue to the see that questions, we going any

Renato Lulia-Jacob

said your all be before, as I have is over you Milton. Hello, or using this Milton them Well, send to on the I can comments, us you WhatsApp the page. and want, our your Send if IR available button questions, platform. on material going here.

we call. our so the discussion now debate that with start Let with over earning to it can you the me in turn

Flavio from already Bank have of America So from Yoshida, question first Merrill the we Lynch.

Milton Maluhy Filho

Good Hello. Flavio, morning.

Renato Lulia-Jacob

still is. he’s There connecting. I think it

Milton Maluhy Filho

morning. Hello, Flavio. you us? Good Can hear

Renato Lulia-Jacob

Flavio, can Flavio, sure. hear Maybe on not I’m you’re mute sure. Not you us?

Milton Maluhy Filho

I’m not hear Flavio sure can me.

Okay.

we’ll the question then Flavio. back I think second maybe and we can to try go

Renato Lulia-Jacob

again. try I’ll

hear probably question from us? connectivity issue. Can So I Tiago a Batista. is have you a There Tiago,

double or Well, in it’s in team see the meantime, an technical you Milton, to Let’s I’m meantime, all the results connectivity those issue for But that solve interesting mentioned. we’re just that. having check. to the issue, audio waiting

the in I of the know our the to main So this are of quarter. of terms you repeat consistency highlights to results wanted highlights, some what want if

Milton Maluhy Filho

Well, is as this were saying, live. you

yes, something. that we’re via or a connectivity So maybe I probably issue think having Zoom

I very while as So a saying ago this a was quarter. consistent was

really main from here what of expect results to aligned you, the we still it’s happy We in questions. for were makes this trust the is of expecting. year. there that but the something all well terms consistency very with be a as might terms think the term And quarter of future entire Again, I few us in very hear guidance satisfied, we and were well. and

So that’s didn’t have we in why changes that. any

Renato Lulia-Jacob

Okay.

I Hello, is Flavio. hear I’m you us with Flavio, you. mute think on if now? hear sure me you’re Flavio cannot we Can now. not

Flavio Yoshida

before. on mute I was

Renato Lulia-Jacob

There it is.

now. Okay, Flavio we can hear you

Flavio Yoshida

today? How Great. are you

Milton Maluhy Filho

Flavio. you. Great from Nice to hear

Flavio Yoshida

of Well, it’s a the great terms figures the about here to of guidance higher talking seen Well, first the to what than is have have this are question. you not in opportunity ask And the you before. guidance. we quarter that they’re

the margins. to very that growth, for comes a companies the I is about When it credit that cards you at corporative can that’s when ask growth. to see before. to you than good you look And it was wanted what had usually stronger also bit So have

haven’t changed comes you the guidance? year, by year, goes why the the suffer are going Do to it know et wanted mean, why throughout of you to the I I cetera? margins. to guidance, more when as especially you for wanted you So rest time ask haven’t to I the changed pressure – think the the margins

Milton Maluhy Filho

Thank Flavio. you very much for the question

the truly with for the now. I working is inconvenience think We’re connectivity issue. sorry this But

bonuses, going when very the to have that. was that a the is is with is this impact we balance the – is There when very that were some also that. also ago getting annual, special in in on many is believe projections, there for we’re There at invoicing. why lines. we’re credit that that for be at reasons is the instance, above is certain the instance, forecast, in And understand a this cards. lines, have something It reinforce a has will margin, guidance There of looking some also I a looking activities. there while had seen Christmas fourth can aligned why product quarter. is in a in seen we discussing advancement seasonality. this different for Also we solid year-on-year. since there Now we for that’s what credit, That’s people renegotiation. the We solid personal or There seasonality the reduction it we future quarter, or was terms brings guidance. are And And with is amortization. be reduction. or But also resuming an also there

were recover year know So strongly. from of a expectations And we last that that the and that off there a aspects. had had some change. guidance, course standpoint of has things in we preparing the the the margins, I year of you started margin, We and when But a lot very, projection would the We for last say some margins. interest macro the we did things. XX.X% for rate, many beginning of inflation quarter-on-quarter. quarter the rate, see, acceleration credit few the year, very the we quality were of

we year, been of I accelerating. have mean, were so result that accelerating margins. the last we the So makes

Now them makes it guidance. converge towards the

see. we what that’s So

of see that don’t very the reason We’re comfortable And to lines. change a with in we the still positive, any very guidance.

Renato Lulia-Jacob

Tiago, you, Flavio for screen. but you, And Thank see on Thank you. question. have the from here do we another question Milton. I Thank Tito

let Tito, it you. So me to over turn

Tito Labarta

hear can hear Can I you. me? you Yes.

Renato Lulia-Jacob

Yes. Brilliantly. Thank you.

Tito Labarta

right just taking sorry, the after question, for Thanks hear and My question. my I call speak. the translation Okay. Great. I

and growing your current in asset you you right? there’s mean, question, and mentioned, quality in the terms environment. in quite growth client the good bit as my had NII of market about NII are I also but provisions provisions, a deterioration So in just concerns growth

that about do have lending. how you those How growth I asset concerned in that two insecure point Do growth? later potential hand. hand involve you think So quality from deterioration? Are kind about think mean, the year? you you in you at just should in see of some do lines the risk

Milton Maluhy Filho

you Okay. Tito. your much Thank question. very for

from perspective message through the here of forward. go the me Let and looking cost some credit

all, of about guidance. positive First are we the very

this the figures of well, the So guidance we going the the we’re deliver to still we market at believe told with beginning – year.

by difficult when situation we found second vintages. seeing in some last semester the deterioration a we Second, we of out saw that specific some were year

predict very are and other lot. we fast So models here a

the we XXXX when that been throughout fast ever to will unusual credit and cost to decision. years. long and you the look very, look lowest But because level, course reduce That XXXX, the we very also that of positive were impact the per this period. made ratios to this delinquency the of in of I’ve anyhow, a to a And two market, and that portfolio have the level very when origination credit you So year made we saying means series. low you saw decision some

So to indicators. it seem doesn’t reasonable have solo those

we’re normalization pandemic. So the the our and end, year by to review what before below the throughout delinquent the believe the we saying market gradual been what very expect of going to be We a to that similar we’ve period. we’re still or seeing

way credit their comfortable but they in even on So basically pay we And the We quarter, lines. and much the go comparing were a portfolio. fourth When to have the some they credit our or payroll, a in are remember quarter with long-term is saw back where using a relationship portfolios effect very first higher clean also example. and some good in there’s we more some we that portfolio basis clients this some with more a and relationship previous they seasonable review. with XX% here facilities to a XX nominal to have overdraft and that paycheck, of have, consuming is we quarter, in that because known more clients XX% the growth some

So of a we when and XX% growth. very bank of little course, NIM bit of line, the the balance cost are but for of bank, we more And sheet. positive, very the the to than the the positive the higher NII have NII I credit, – in look bottom

But we’re it’s normalizing the but we I’ve quarters third seeing still saying, So will quarter of three you as year or believe. expect, throughout delinquency before or were the more starts. the that what to very getting we telling last close pandemic the been still we stable, comfortable, things near ratios that increase

comfortable have expecting we’re So quarters throughout about we slightly deterioration but still ahead. that still very figures, the again, the

Renato Lulia-Jacob

Milton. Thank you so much,

Tiago Now question Batista. a we have from

Unidentified Analyst

morning. good and Hello

Milton Maluhy Filho

morning. Good

Unidentified Analyst

me can okay? hear You

Milton Maluhy Filho

Yes.

Unidentified Analyst

you’re the the bank question below were – really So I XX.X% target around talking From I you million XP. capital. mean, to We you R$XXX going that the were consumption had considering about a have have, about that and without

when that level. So semester, is that per to there it’s plan that I mean, creating, XXX% Milton, a also, I still that? something think, But is below capital, you and about that think you bothers reconsider all you XX% mentioned you’re

reconstitute going next new for all that to you this do of long hedge? a reduction might work? goal you given take it And we how in think is that? months, few going approach do how to see think are the So So to the

Milton Maluhy Filho

many you. you, I Thank Thank There for with question. you could you. Thank share are things the Tiago. that here

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the an a of So is be bank. standpoint, from not appetite going on the there to impact dividend risk

distributing are QCD, the XX.X% still We as used the are we to.

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Renato Lulia-Jacob

we we question from inverted Well, another Milton. thank now screen. have you, you, in Tiago. And [indiscernible] No, Thank [indiscernible] the

well. as with we go are can We question [indiscernible] the adjusting

Renato Lulia-Jacob

kind Gustavo, of I you thought were Gustavo. that different

Unidentified Analyst

is morning, Good results. very simple. congratulations Milton, everyone. everyone, My for the question

Renato Lulia-Jacob

audio. question? we We lost think Can can the you hear No, repeat I the it.

Unidentified Analyst

but billion guidance. have it Sure. we Well, guidance. And if expected. passed, about the question and the R$X guidance we The had think R$X what is already the we R$X we billion, now, Milton is result to treasury you specified that billion

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Milton Maluhy Filho

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So we expect more volatility.

there adversities market. even trading the are well doing Our the inherent structure we the to performance portfolio is of though wise,

lot and we’ve a rates, delivering of Brazil and effects we different still the States at different structurally had the look United are interest levels the mainly. we So banking when results of

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shouldn’t will maintain long it benefit might guidance or a to additional review to be response the unless So guidance, the But might an expectation opportunity volatility up the nonetheless. that that within us. we we come say is

Renato Lulia-Jacob

Milton. you, Thank

that I think who’s Now next. everybody thinks knows

So much. you here is Rodman. very Thank

Unidentified Analyst

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Milton Maluhy Filho

Thank you. equity for return thank on Well, question. you, the Rodman

that and growth Now portfolio than we a a higher in we’ve see insurance. in services what bit a is seen

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Renato Lulia-Jacob

you, Milton. Thank Great.

Now we order, from Friedman following have the Citi. Eric [ph]

Unidentified Analyst

Thank accepting talked my you was what everyone. call. My clients. for is question Good Good the Hello, morning. Milton morning, everyone. growth of

is So we can see clearly what happening.

bank. call, if the a that can We it’s do the the in we these brokerage, given improvement you if It’s follow-up I the bank? possible. M&A centers. well, improve the can Do of difficult – addition, deliveries I and other specifically, you on the can client to, that regulatory to within see are In for the and the Milton you centered opportunities? execute But know a the wanted flexibility trend flexibility units, This of the to we have the do the and business how improve on know I lead in clear banks. universe? don’t a interest wanted Milton rates is of going we is you the I with see What for I Can that comment opportunities have that here insurance, different that the difficulty have think? Can I consolidation that there be but startups. think the limited to some some potentials in highlighted think issues. sports this is a platform client. several legal

Milton Maluhy Filho

[ph]. you Thank the you, Thank Eric for question.

We’ve have of very a we we relevant related the even clients. way to the way, focus face makes on only incentives Here efficiency. all This I’ve digital the that lot sense client. changed has if a is changed mantra the bank. we that talked in that cultural, if throughout transformation, – But the all

So accounting, clients, dedicated to all the have people, goals to unlock have with exception client. objectives is of risks that our with that including everybody have collaborators an

we the move Of already have – or say the modernization, course, take to XX%. I of stop And services, X,XXX the legacy we that that system the of migrated in that it’s processing our the when XX% not systems, We’ve legacy, of cloud. the center said, system. as software the deliver the migrate, all it simply all done that’s data you and to migration

to and in avant-garde architecture infers new the Going modernization, technology. cloud

and up are process. We in this running

from Our modernization the legacy We that. start are from understand we what of the year end the pains the expectation modernized. client. relevant and context in the XX% get of to platform to We of client. prioritizing with the is the it’s of stems the But

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pains have context series that – in modern correcting, whatever to the the to of increased tribes, working the squads, that the the dedicate of platforms. time the the you the a speed measure new this delivery of and operating the you’re of time a you amount enormous. XXX% client the we legacy mistake a to you want and The the understanding quality platforms, changes testing, production, is codes it, market, code, of which in So in to have call modern of And – making at platforms, lot. dedicate lines develop what for taking we

more have we So efficiency.

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Unidentified Analyst

know camera, about is of that. much, you more difficult Thank very Milton. this When to the side to here all on It market. we’re sometimes we communicate that the

Renato Lulia-Jacob

Hello, now. Santander from Navarro Henrique. Henrique have We

Henrique Navarro

is wanted my I I XX wanted XX, is of which at reported we normalized day mean, is I delinquency see And is aligned morning. do I Good question. to is has think or think Hello. many comes delinquency, because It the XX you it what aligned nowadays, real problem. the delinquency the with ask risk. with have the might about think But it Thank portfolio failure for its control. real, concern results, already. a a a under delinquency. a concern, – taking XX to pay, been especially and that real with real know, it it concern but has seen is if We’ve it some when the XX others actually that day bigger to to Itaú, concern, rate it – I to lead to is

So to volatile. very with for portfolio my happen? something shouldn’t know with and that very the of I is question we’ve it has do seasonal, of Why worry that that Itaú more, about that to maybe. with the market. following it or is to we delinquency profile have I seen it because does symmetry mean, XX really does wanted the I mean, do the a day rest the the

XX the you hear rate? to about wanted wanted day from to I understand I delinquency what think So you,

Milton Maluhy Filho

you question. the Hi, Thank Henrique, again. you nice to for see

in asked you something to the think call. previous even that about I related

something it’s tell. I truly quarter, thing is you’re So short concerned The there normalizing we’ve seasonality that. Well, the especially can delays, about. that in little. a it’s little the is that seen by for first

in there’s – look you of bank, history If a deviation of records that’s yes, that. at the usually the the

to change at look I see huge still delays. per is short se, period to don’t that If in previous comes quarters, I normal. think I portfolios, few When be behavior. we’ve the Brazil of before be something a seen So the and what rate next usual Brazil might an increase similar see still time. a it it close going especially to to XX, increase And but the I still over delinquency in in for stable, it’s to for had the similar to going we pandemic. there

it think is a I behavior. good

would to we’re have there portfolios. that even selling portfolio. two haven’t a is done I would levers. think one know a highlight. we active sold indicator, like We that the would I I not There portfolios say mean, no impact of I on – that. not positive selling and active real are

understand compare, kind conditions are. or you to whenever active would it important the effect see what be. to selling It’s what important portfolios of So is

reintegrate really have of reference good we to a here. to compare. we the So portfolios sales whenever also topic to first want compare the That’s

billion. but mean, very the to nowadays portfolio, program, future. the thing looking We’ve careful. into CR reduction, portfolio. renegotiated is the The we’re we at wanted I ended mean, X.X% had we it with Itaú second nominal a ever looking one I renegotiate R$XX been the the since renegotiated

R$XX billion. it is – we’re looking Now at

basically So change, portfolio. the we a had half

good So it’s still coverage.

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these terms we’re not looking portfolios. at We’re changing the is indicators. a of of here anything what’s What screenshot in happening to delinquency

a is not positive again, perspective much. more more for moment, is The growing So future. not might interest. GDP super it challenging The the that inflation, be

So we been very have careful.

going this proactive ever last do last the think continue second in and to adjusting concessions we’re year, reducing I year. We have that been to since very year, semester

until and to make There that of back gradually deterioration stable We’re end we’re believe adjust to a we it’s and be sure level. a what okay. working we trying happen. a the year to go to in it’s the going be again, believe timely that might manner going will But to that’s

Renato Lulia-Jacob

Can Geoff, Elliott Geoff attending hey, hear you well? Autonomous, as call. thanks the from for

Geoff Elliott

can hear me as well. can I you you hope hear

Renato Lulia-Jacob

Yes. Hi.

Geoff Elliott

increase on significantly to through where customers a how rates you’d on now floating you loans interest is were question squeezed? of in but And threshold of of think this lot know start year quite so in consumer of really ago, higher and are kind any speeding another specifically the that there start your than rates and are side, the quality? interest have credit a I into credit, get topic So they levels to credit rate increase rates don’t –

Milton Maluhy Filho

Yes. your you Thank for you, Thank Thank Geoff. question. you.

think I the we retail clients clients. wholesale separate what call from to the we have

their have plus raised CDI On clients, the indeed, they credits on general. in wholesale

Okay.

have as have hike rate or we are impact. locally you when increase an interest seeing they So an

So see used is we when whole the that good we to the thing as leverage in companies portfolio of much working the past. lower of see the wholesale, than we are that with

huge so that even facts past in when the used of see the things a devaluation side. we have you same the is that, impact see this So one or we like to don’t

they impacting do debt and you general, costs So corporate process. an have in this the middle clients of financial whenever have the as well, clients market corp rate their hiking interest

So is hand. one this from

on On the more margin. retail, it’s the

rate, have by the have credit putting have being Because that their liability interest we origination. you do. through So new and production. the clients rate to then the the new Yes, interest the this path in of correct new you general don’t marginal

estate, So in is that production reduction look my demand, an you for we real as in have view when important well.

we both. So do

some and other of rate, adjustments that this less be. First same interest selection to interest the do for price lower products, auto clients, may when loans we with you for new have adverse for But are our to levels credit they at all, in of see policies we hand, afraid rate. we than clients asking mortgage on the have used because the you

but as to we much marginal level that those reduced a the we on impact of they course, it’s something but would more keep of we but compared but to any say that an see companies, selection, corporate the impact past, the still that adjust we feel on. also guarantee clients pressure, is leverage our the most demand work to won’t much diverse of active lower have very policies stays have lower So general, eye when to in I

Geoff Elliott

Thanks Milton.

Renato Lulia-Jacob

JP now We from have Morgan. a question

Milton Maluhy Filho

Hello, Domingo.

Unidentified Analyst

morning. Good

my having we’re me you We’re audio issue question. ask trying to here, let get – but an

So Milton, I have questions. two quick

grew one that. limits XX. the the of for more because and balance the The use seems like have rest a of It The first over in card, portfolio. little would the you bit the all FII control we XX, see that and portfolio be

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how in So is the terms the do much represent question of think the total profit might of bank. you that

Milton Maluhy Filho

hope were Excellent issues. been hear able you’ve solve able Domingo. to I questions. audio the your to We

So access this hear I are going think it’s to you right to able back have to normal if answer not now. my and hopefully, you’re later, to all

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everything that at market. That was cards. changes has There growing changes. that, that So now, it’s we’re actually now, of or are are also figures we’re grown market, with in – to the right and But value line share, impact portfolio lot Right on an the great that that have is share we’re not market also XX% we the the has but credit looking despite in consumed. XX% trying having of a defend we – not cards. market the share a something portfolio, to of in in it a great market going

different perspectives. a relevant is it it very thing, but really is So

the you have you account, individuals with that in So chain. you everyone an the have financial have institutions,

We few have changed a things.

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past reduced over the without grown has a into So transition and had the financed one what lot at few years, a the pandemic. interest the before certain has lately, portfolio we are back a lot we looking

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year. stop having last probably year. we’re looking weaker year, going this We’re quarter a and kind comparison of quarter naturally stronger And first to last at year the or much that next

of scenario. have more to going We’re normalized a

Unidentified Analyst

Excellent.

Renato Lulia-Jacob

Suisse. question from a Telles Marcelo now We from Credit have Hello Marcelo.

Milton Maluhy Filho

you Good here, to Marcelo. have

Marcelo Telles

you, Thank thank Renato. Milton and you,

also to an I in that think think my around – wanted that’s quarter-on-quarter. in in And I have but it ask XX%, and to the rates but my real future? actually questions estate of rates very consider negative the change think bank? necessary competitive strategy impact have about there’s in most comes strategy funds we funding. question the be to a or FIIs an think you you your your of here the manner a affect to this margins and for case, going going the Do and the funding how to increase answered is was do been, to there the you’ve – of XX% independent in already, cost it’s the of rethink or terms of what been been the interest scenario, funding Especially platforms. when I is we’ve And

Milton Maluhy Filho

Thank Marcelo. the for Thanks you, question.

avoiding you service, as able platform bit give a We’ve consultants. this consultants, about open been be talking investing talking while. an mentioned on our been here. while about And little Let with our We’ve a this been We’ve for to has conflict brought sector we to me of great results. a context this ago. with investment offer a commercial

retail, gained also have share lot in banking. in We of private a

have shows of There the some we results. team, shown that seen that really that So commercial we’re dedication also terms are a interesting in the of very that strong offer, metrics regard. lot in have we’ve the that some And other results.

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but changed, the with working most have indicators, the indicators liquidity the So most still ones. we’re conservative competitive

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important places. So there other change, an difference important here against an is

though fee the may we miss we that an are profitability, to we’re are or in we mean, – or that, a own I might them lower administration So see whenever a something we growing. migrate them migrate results. many profitability a and are interest products see do rate, losing that to but even to product. able like yield that our clients a you is in hiking here migrating management there we higher still We higher there their be or having

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Renato Lulia-Jacob

another have Sachs. WhatsApp one is for space then from we have and the the so next Goldman We question

Unidentified Analyst

everyone. Hello, Hello Renoto.

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Milton Maluhy Filho

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Renato Lulia-Jacob

WhatsApp. we you, There of two? lot via another Milton. do is Thank a Can questions

of gather all I’m to them. So trying

Unidentified Analyst

even natural relevant. for For the persons mentioned is the appear capital you dividends, this funds, more themes that well

in of you do the So see payment dividends XXXX? how

Milton Maluhy Filho

the of growing, see results growing. Well, the here response. because value is the I an are a for increase, dividend the

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capital if higher. capital low profitability a lot of in So the is have and I distribution with the bank, low

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Renato Lulia-Jacob

an And you the had the due with rate. the interest inflation another with the question. We’ve How it consolidated Perfect. does efficiency time, let’s Brazil. finish in Anything impact questions about Thank mentioned you, we Milton. the have of to several bank? – cost

– all the bank stable of we have this of having what can of not result throughout a only how reach cost ambitious years. the the we So the are that core goal to levers of

Milton Maluhy Filho

Great.

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inflation news IGBM almost very with in efficiency relevant to freezing, subcontracted XX%, pressure. we of cost – agenda. and this our the can brute our over a APCA, strong is we This are do through inflationary force, is our and this homework have do have then until the a when materialized and the has way payroll costing we we part a the we that not cost. this for not going We peak on that homework. is And subcontracted was is have bank. the cannot is through everyone. the discussion, cost last The increase we we year September in of see inflationary we reducing, in that say Since part, is our simply a a And very changes be to to increase And have an structural have the control strong. X,XXX will that work. new there program And initiatives. is quarter, And inflation,

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challenges. have We

guidance is this We with – than agenda intensity. an much much will that have deepen of the the inflation. costs of has below year-on-year we that growth lower expectation the And

Renato Lulia-Jacob

Thank Milton. you,

Renato Lulia-Jacob

like of will manager this we bid we Q&A, farewell, come I that And to And the navigate last would you with to year. that, you the of our the published end to session invite with before but I our vision and more expands the all on context operations, and in the promoting is from the the and website the this of transformations besides that that market our sector. the of stems transparency cost report new economic

have, of capitals. value in the And portfolio what see management through terms generating you the strategy, of everything our how this see description strategy, our I documented can careful share wanted in can IR You in website. of in service business our of are new something investor we we to relations.

You WhatsApp. our via can team access

again, much, Everyone, participation. for very for for in much we you your process. Thank quarter, you would here see as you Thank you And the anywhere. shortly. been learning information this also being questions. I for you very your mistakes, can is seeking very that, make initiative for for will we In another consistency, much. see and and result is this We’ll me. much Thank once the service important of very thank our that in is cultural for apologize number, any channel, in the you I can your doubts. you are mistakes. to with This You issues and for you the beginning told quarters. is need of our us with XXXX-XXX-XXX. And you and I participation our you Thank choose stakeholders thank phone time. clarify which this this get as With has the you next the what next transformation time. the quarter. is see in-house, transmission, your agenda Thank part you technical at the but our of a Milton.

Itaú Unibanco Holding (ITUB) 9 May 222022 Q1 Earnings call transcript