ITUB4.SA - Earnings call transcript Q3 2022 | Itaú Unibanco Holding S.A.

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Renato Lulia

Good morning, everyone. I’m Renato Lulia, Group Head of Investor Relations and Market Intelligence at Itaú Unibanco. Thank you for participating in our video conference to talk about our earnings for the third quarter of 2022, which are broadcasting directly from our office here on Faria Lima Avenue in Sao Paulo. This event will be divided into 2 parts. In the first part, Mr. our earnings explain quarter the will XXXX. of Filho performance for and third Milton

the where Q&A will have we’ll Next, session to with be analysts interact us directly. able investors and

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Milton Filho

to And during bring information conference quarter consider XXXX. for that third I’ll everyone. Thank of figures. in on in you then straight the go I morning, for earnings presentation, some relevant. our Good participating the I’ll the the

of X.X% good in reached with reaching up BRL posted of posted the able X.X%, grew also XX.X%. to previous robust margin The is we from posted X.X news Brazil, managerial billion, XX.X up X.X X.X% previous alone, in profitability billion a points. to first BRL X.X%, it on. and high billion. increase in maintain of in When been result very stable reaching the quarter, And more I’ll BRL X.X% X.X look a grew percentage Brazil the The details consolidated trillion. a quarter. Brazil, positive provide very of we X.X%, quarter, from quarter. level billion. the in billion. growing And we BRL So increase BRL Brazil, loan reaching X.X an ROE clients And of XX.X recurring the portfolio at XXX.X it very later we’ve growth Consolidated a XX%, BRL that

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the On were There’s reaching of have capital our our clients. in to increase appetite. grew good without we risk core capital able We good base, percentage which the points, XX.X% news. above ratio, performance our quarter financial no equity X.X

deliver. we slide Net that to is been lot figures and we’ve Score for There years a include of dedication. here a But are briefly to tools. very behind a some central There’s So working what I concept. show the with is here the lot the now message decided work of Promoter

of been opportunities to are. our feedback the read where high into is We’ve levers more NPS, feedbacks our process the into incorporates and the the products, of understand competitiveness. transaction, every standpoint, model them and volume have interpretation Everyone year. this receiving them and NPS, incorporate global of from channels, already information. received client the for pieces than X all And we interpreted. million we So and measurements We

to consider good we has confident segments client of end back by which made in very have we’ll of And this bank goal news to very end XX have already commitment here. I points for Two another XXXX to on achieve more XX possible. global of pieces another X grow the record we’ve a increase. of XXXX. I in points Therefore, we end the to X reach our high that period. X NPS, the how year, by points year. expectation of to which by levels. believe of I’m been XX% basis Therefore, a straight-line main of understand we our all by to is is In Therefore, grown is The the grow XXXX So we news more points the are next the end is XX assessing points possible. and points at us. grow go, year, the the there the are our of believe businesses

that monitoring So this our level of believe is NPS XX we’ve XX% above than businesses we is And excellent, more every excellence is the and been this above month. points. what of are

of growth we in loan see have the a the each can Personal we segment growth a of we quarter-over-quarter In loans of rates, part of segments, quarter for and portfolio, therefore, A income place that themselves, accounts in and the X.X% this see segment. loan an quarter. personal paid explanation lower and for in growth I’d took personal growth X.X% and year-over-year X.X% like both lines. overdraft Obviously, and credit in of XX.X%. individuals higher in the a installments consists [Uniclass] for X.X% Brazil, Speaking grew the the of to consumer SMEs. of these of the with XX% but say portfolio default

share had portfolio loan you with this Another sector, We telling loans in important been we INSS I’ve for the now. that the company gap time had in always some in an highlight the sector. and public regarding a payroll pensioners is huge private

our well. So as we set goal share in public increasing the of the sector

in So the XX% and news, the grew year-on-year. we good quarter X%

the origination, see of XX% we was with an this there levels. Regarding SMEs in years, focusing revenue clients our on and period. higher with been in was in we’ve But can based that origination portfolio and therefore, increase of lower the XX.X% grew larger the profile where default over which

are, very capital, can the in clients from healthy to room X cycle. million. margin And decided way. where the a already throughout the a news grew BRL for the So opportunities quarter, and The make growth there’s Trying good core previous adjustments. and this, we the necessarily to make BRL where origination with understand to we’ve you quarter. we where adjustments and although told XXX grew financial billion, -- see working the another Very slowdown already I’ve margin need for portfolio in

from grew So quarter. it the up BRL X.X X.X% previous billion,

been third seen graph consolidated margin growth quarter-on-quarter. the was it In at third annualized Brazil, average it of not the And in X.X% reached in the margin in started but from XXXX This to that also the is message of increasing X.X% annualized important went risk-adjusted we’ve up XXXX. the quarter quarter our and only X.X%. in here, Another in X.X% margin.

managing quality. it’s to news. with grow good So been We’ve

interest in quarter in of XXXX to well I rate that, with you’ve volatility. interest interest guidance. positive no this a think with the highlight effects rate And result. the highlight. This able the longer difference next XXX want we’ve that of quarter, market year, between the the even the means very is as this we a and our capital the maintain susceptible this consistently and around The rates able the is we meet the Brazil challenging with numbers number Brazil we to I expectations. to hedge mind increase quarters. we in beginning year item is to BRL that that established last the in market, the million, cost overhead market. released and remind interest margin have international higher been as included currently Despite performed an million we’ve very a seen very ratio to overhead over cost mentioned results that BRL of The more is a the with We that There rates. XXXX a should so, in you when in per We the margin the year’s compared to a and been the keep we strategy. XXX

good number your a insurance So we’ve from and had commissions fees and margin. we to results growth operations. a able under the to been lines in keep now of Draw attention

is recorded we We to performance have business, we cards Credit the debit this it’s the growth XX.X%, your a in of quarter the business. fee Typically, perform will third a quarter, recognize ideal. management basis, Therefore, a quarter performance our Therefore, period. and and and second the criteria. if in is the fair quarter by cash well of attention again crucial asset So quarter in last drop in felt but asset we important managed draw year. fourth a increased happen it to accounting the on the recognize was the In In effect comparing also it of should the the funds, we X%. management in fee. nearly to with the very second fourth accounted the fourth quarters. not

business to grow. that continues Another is the insurance highlight

with our we’ve just you performance, over on. a telling we is been been there positive pension over core insurance and growing What I’ve plans portfolio call year-on-year on our would less that and on improving business Here, delighted gap in hedge due that insurance we XX% The and was we impacts evolution. impacts period. have and operations insurance to fact deflation that focus I’m this positive the in

forward to activity M&A. in so a a and leading but origination, in hard. fixed-income due financial ESG solid in we has you have been XX% services. performance is was a in rankings. share keep advisory see, to income This good, of drop the a here bond There in have year issuances. trying can but a not Moving for as XX% distribution Equities And and this a harder the been XX% and little Despite slight fair we we’ve in all less the drop brokerage bank on fixed very both line, equities, quarter.

really that talk Last Let’s is strong. about just let’s say DCM not asset management. performance but the least,

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our lot it have comes flexibility We needs. a to when of meeting clients’

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to the X.XX% NPL compare X.XX%, was from the in decreased economic sale active the you basically period. difference we If portfolio it positive result, is and the the had It effect a ratio. also

an portfolio, to X for the X this we weren’t it information because The by the that we the basis come When for sale value, days X.XX%. active as sake XX basis of mostly moment which it rise individuals. So individuals total Brazil, by share for made thought address portfolio of sale about overdue something here made economic in again, by I’d positive for active points. a was If session The up the with again, to NPL to I’ll overdue days and transparency, healthy Once in slight balance Q&A pause piece talk you. critical would a be was portfolio active like the is NPL of impacted a sold increase of XX was posted important have sheet. point. our impact the surely here, talk XX points. points basis would And NPL bank’s will NPL of at been only a was good something about

expectation of must that you XXXX. I was third last of the remember NPL the quarter be in that a You for gradual there bank’s would told the year, normalization This ratio.

pre-crisis. been has very while a As healthy can normalization happening in way operating lower levels see, still the than you in

worse, individuals for more perhaps NPL a the to quarter. get expect We for little one

we for may of be But scale information to a of our this We quarter today. uncertainty. we what there’s best have is next similar lot impact the Things course, to expectation have quarter. change. of the This expect a for

XX similar XXXX. we slight an quarter basis of normalization NPL see to had of in to for levels the important pre-COVID in those We NPL expect This SMEs. is a message. first points rise We

basis the short-term points. a SMEs, delinquency, rose days Moving XX XX XX ratio individual’s to NPL to points, basis whereas overdue for of there drop XX was for

overdue segment been days NPL rates expect short-term gradually we and pre-COVID really to the for which for comfortable quarters. although large for I’ve and in levels, So is super normalize corporate the we last with X.X% similar is what best segment. exactly is the telling NPL delinquency you delinquency measure levels those consistent X the not well-behaved to NPL XX to at had monitoring

cost portfolio the XXX total credit. XX credit of of to ratio was in an BRL million there’s X.X%. quarter, correspond But flat portfolio The at which only quality NPL and to Moving billion to X.X of renegotiated days overdue. BRL increase

we keep So providing really sense to makes focused, clients support renegotiating good to purpose some who no than need There’s service what highly and renegotiate. it. other

collection we clients the those in are for care. However, with follow our red, who due regrettably far rules all

which pandemic This over the also for portfolio is we coverage, a is information which overdue at the implemented the important BRL to days Another it to positive program, billion. the Travessia beginning XX.X reprofile our sound now very billion, of one segregated the in The news. XXX%. through coverage BRL it’s is reprofiled in XX were the XX.X NPL program is very that overdue make that and portfolio this This is that piece at who was clients time of portfolio started at the help crisis. not

ratio portfolio portfolio the a increase. those of of posted the amortization tends slight cost than mix more up XX% remaining drop, running collateralized year-on-year of XX.X% half periods. still value paid. Therefore, but is XX% more due growth, of to portfolio tends good quality. lower to So credit the X-year The to nominal we is also unsecured this with down to levels is are amortized but the The this volume has portfolio credit once and at the quarter-on-quarter. increase duration and than pre-pandemic to amount collateralized, been period,

adequate flat and mentioning for a We -- is in regarding coverage drop the That must average. much item. historical XXXX little individuals, there’s coverage or to XXX%. we’ve quarter. operating XXX% fairly not mind coverage been XX that reached worth XXX% points the in the from to coverage XXXX keep all nearly percentage We previous segments. ratio we compared average a So this of With at above was reached

major The impacted which I’d XXXX say of the quarter was in effect effect consumer bargaining. Going market was X.X%, price salary by a index, INPC the XXXX. broad is a and adjustment to IPCA, we forward was more OpEx, to this inflation The BRL X.X%, September collective of so-called effects quarter. The based plus challenging the due measured XXXX on negotiated up index, September X.X%. bonus XX.XX%, bonus a XX million price general of since rose or until IGPM recorded

year-over-year. and quarter-over-quarter X.X% increased OpEx X.X% So

as the run OpEx agenda years. bargaining bonus Just that with like no show negotiation to remember that our follows. even X a in managed bonus impact last since it was to collective of year, was I’d different negotiated every This there means XXXX. below to inflation we OpEx

X First, way XX, and was there rise MXX below we compare XM inflation. core a expenses X.X% between

the of much salary is because the inflation reminder, adjustment. bank’s a higher As

our We doing but on increasing place positive some have ago time that a costs more in to OpEx, would revenues. like this counterparty be efficiency And bank results. with burden I Moreover, started which in keeps say business. the transaction growing, may a is in program,

new in business and business seeking generation X.X in Our efficiency, reduction. billion. expansion, productivity, revenue higher and investments investments are technology, BRL by There grew in cost

financial great in end, America good ratio. cost investments of the manage methodology. excluded a these calculated complete management. The manage efficiency performance So have has It’s operations. and the the not we the true long Latin on In industry lowest term. focused are bank the discipline with for banking had in the do when the We we And sake cost. cost ratio that we

going but ratio Brazil X.X%. this to with and regarding capital We Our Last managed in XX.X% from in points CETX XX.X% to capital reached to quarter efficiency least, XX news is in XX.X% XX.X% and consolidated. the XX% increase great. by the not basis

the here case points, that basis capital have recognition XX optimize to is limit to we to regulatory feel real growth dividends X.X%. way, CETX have to and the in buffer in in of news, we of ratio. which increase results just due basically about our finish our the very only for portfolio. still keep appreciated a here mind XX.X%, is The a earnings, these and have provision also and You Brazilian the higher positive the we including This main We that reached message capital loan good finance for presentation, shareholders, were very of able accumulate And this quarter. were too. my is messages. I

aware all for Renato highly you we’ll of care. face we’re now at a I’ll the much face and participation. more, you be challenges that future. and course, thank session. major very the See Of for while. attendance Q&A the your aware challenges Once we in times joining in Take

Renato Lulia

so session. arrived, just with our has Milton And be will can bilingual. it we Q&A start

we in we the want can English remember language Portuguese your you questions be translation, Please option have WhatsApp. if for of it. question. and plus you that, will And number answer the the the submit select the via So will question for XXXX-XX-XXX-XXXX. that And can

Flavio Yoshida

opinion, very low. scenario to very the to that you I is like challenging. the would future, the and next And excellent at year challenging, least in XXXX. a of is scenario the is would I work profitability the good for for bank for understand, results in congratulate The the your like visibility

most can year. you’re will you’ve be, this let’s you next done planting of year just what throughout harvest say, However, all so

we’ve the seen a quarter. dynamic, credit that year? wanted was expecting of the understand I an also good what we to result second from in next acceleration And are portfolio, So the dynamic

can still that But I going of you next as a portfolio guidance the wanted to a give deceleration the for expect. understand to I next what for year? can was feeling bit year-on-year. you’re we for growth publish know what the a of us And there Now year.

Milton Filho

you question. Yoshida, for the thank

think the you’ve correct, scenario of very question, the not I we don’t any with that XXXX. concluded working are first but I well. to want since information Well, is provide it’s still

We have and refine. a lot a points need of we that of uncertainties lot to

for fourth In about the point. call a And results the really of message the the issuance the talk few the to the year the working of But There with here we in of it. core going guidance first the are points. next budget. of final the We review quarter, is these sustainable we’re points of is XXXX. been we’ve Well, growth. That’s that’s what for quarters. last central reviewed over the haven’t

Of the a course, in expectation, deliver growth the understand can impact there deposits. working is still rates The there a There reaffirm, interest the small that of therefore, next bank capital, we the that portfolio the -- this the is for business. will is are the Well, there lines. our therefore, we the the see a is healthy. that we guidance within year. ranges results for decrease of hedge is for a geography, inertia XXXX. But way is the and the way bank does the that portfolio, that And there

So there observed. eye we unfold, see activities we and to have an of are on is credit. as There there investment keep challenges how cost to the bank, that an this. such in have the the challenges integral is always Well, will

question follow-up the inspires very quarter, second decrease -- scenario nonetheless, bank cautious. the there question are third your to bringing We’re we and a healthily. the -- growing the the in is linking The risk and cautious in well, portfolio first actually, of was of still careful and

getting lower-risk penetration are clients. a in We the

lower leverage have well we some relationship acquired the the in We’ve we Well, deleveraging we credit capillarity especially the a to credit. the these and have here, in increasing a are you income the have and wallet higher bank, very we mono-product. also the than typically, cases, with the only that have challenges, have external ocean that able of history. risks. clients And X If clients a share have clients we of the we that for with, the groups are careful clients credit for card where mono-product. are have clients the the been average. mention segment And We our where to the the open shareholders cards digital and we

than since a been our quarter. next that a cost going a the the proposition do also a is we’re finance If in Here, and a credit. we it’s the we’ve conservative, as has with at This done concession a -- is a over a the see been we’re guidance, look partners, we’ve the the is portfolio have that we reduction We the there to concession this decrease. risk the in that XXXX. was the well, of And our going the portfolio When material anticipate see is this reduction way credit reduced grow the of period And for And a in following been XX% adjustments year. I is point that in base there up quality in to see in can the and going just portfolio you open last here and use the the of we’ve that growing added at see we nonetheless. has that value to you effect, much to been is a charging. what Well, look central over there, business. whole. physical. reduction is to less And

go back be robust some we in the profile And the in pre-pandemic. the to adequate. we important also to where portfolio are are allows bank that of to very in we consistent allows We affluent us [Selic] segments. we to compensations in navigate and of And a are are observed have results what very upscale able credit these are now an portfolio that in a throughout There balance period. all us working the very very universal way of relevant this difficult

Renato Lulia

Milton. Thank you,

have Thiago UBS. from the now question from next We Batista

Thiago Batista

lower customers. quality seeing it’s higher. the this we I’m of spread. a look for It And results, still growth Congratulations are rate much good for sensitive question of If margin -- at strong spread to in quarter-on-quarter, very X%. spread, was your portfolio. but Pre-COVID here, we the than was pre-COVID. now My operations what about focusing is was

will post-revision. converge those clients, products it levels change other mix so then? we and Why the Now were come is XXX destripping we was because a of to the imagine margin the is go alternative that It’s the in the is close mix was it’s so the of do will that or changed? That And Can pre-COVID to pre-COVID to customers, to below bps can so point. the levels the we or not, large back pre-provision back imagine market X%. X.X%. margin pre-COVID? That’s the

Milton Filho

thank your attention for few pay Well, A Okay. and the the to of the that key much different much margin. question Thiago, analyzing you are very all, than information we pre-COVID. of of more that to things evolution is for have first the the results.

And over a of that line, margin. so had changed. had growing is an mix trusts. there was That’s an example, in had between with -- with of the guaranteed our that accounting it point risky, the the mix product. of course, X less to cap an an of COVID, less and on brings regulatory portfolio a a of portfolio is effect non-guaranteed, that thing, cap effect drop a but points. X an has beginning the the first guaranteed of the And impact in bank was Well, The percentage and giving that profits risk course. the the grown which information, increase there profitability of capillarity for important percentage at the We margin, the

if portfolio, look, back something So X XX%. grew that go years, our we it’s just wholesale

years that If horizontal. down you past, go X in a is portfolio very the has it’s -- back that

second guarantee have less period have less, that impact this has interest you is rate aspect you some seen margin. we’ve has portfolio, third relevant the an the in we that very that been the and wholesale That’s there and impacted. And on well, the The if the when really very, high. products So an more more clean. very for But impact the there compare And are we’ve is the And retailing in increased the wholesale. increase XX.XX%. rates. flow, until more speed are phenomenon

You spread have a the mat real X, of estate cap, and dynamic we the have overdraft, the postpaid.

from the line. and savings So side, the and of front on benefit are the the leave credit, you X the in have the and the you impact in an on spread liabilities effects the other in one credit benefiting that have you you hand, the account

are several we had margins and effects. other back not vision should what go there in to My that is pre-pandemic. So we

are still a We our an stabilizing but our margin levels seeing thus bit is seeing maybe the stabilizing above best are far. This with we estimation expansion, that here. of

Renato Lulia

Thank you, Milton.

Bradesco Schroden Third from Gustavo BBI. online, question

Gustavo Schroden

I ask Congratulations questions. on want the results, very to strong. few a

one. The first correct to one better players. see dynamics is of Part the delinquency is some asset quality. for the We I’m different going it’s appetite risk. wording lack for are a phrase a of and the that between use individuals growing. There

accept quicker. start rhythm? We everyone. going financing. well, question deceleration NPL at cars let’s still much difficult along in up is for NPL of until even deceleration there predict growth, continue your just Milton estimate, quarter is can vehicles -- in for what I is risk lines, future It’s detail-rich deterioration ‘XX. is dividends. but not It’s to But about going -- risk quarter growing trying looking this those next not has what do say, about wanted you question, to stabilize believe very stop. next we’re the the that really growing, if a limit will to appetite or specifically we in also of we the fact, or thinking stop In the to year, regarding you you’re to Well, I’m second My understand credit cards quarter, going is in it if but see the this lines. first been we a maintain, do And the in how that those in riskier that can with appetite the your

go I the exclude a replenishing really capital the FX to a capital with extraordinary XX%. is is think to -- is that XXXX effects, back. trend of dividend trend itself. The is ROE There level of the

do So dividends to back going XX% are to that next year? you think the go

Milton Filho

you thank again. comments to pleasure you. It’s you our see for about a once Thank Gustavo, the results.

Let individuals, me address natural delinquency and persons.

portfolio. let we operation actually the in complete understand all, is me our very of Well, Portuguese. First speak Well, diverse. for individuals

credit the We the have have we you of appetite all the personnel unit we’re have that we’ve observing And we cards The and segments cycles class operations, talked. portfolios like the the to vehicles say, monolinear, we the portfolio and our create open holder as credit is value. our inflation account all is we feel of credit, X a that the cards. with have of real that products, estate, have, increase or operation ocean

So hasn’t the on our see dynamic the depends -- these the changed. result crops, we and of It’s conditions you scenario, in what prospective reality, are we of say. it what observing. the appetite

-- adjustments. shows then our to the always we X The commented, in one we’ve epitope. is ocean necessary open the We’ve And feed at expose, the is concession. important is them to portfolio within rigorously. had react that adjust adjustment this in and margin, portfolio model. reducing, very that now We the been So cards, of vehicles. done is you products, relevant These -- vehicles total are this that able we reduced and we’ve the concession certain as credit the of before

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So card volatile. the credit is more

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since individual very solid portfolio is is of a have are credit computer we very this So diverse a performance Therefore, very during diverse. period. that the

have compensation. We

Some relationship be a we at have future, terms that less there the more good we are that we unless of look risk have have not with of a appetite of pressured, where pressured. in will some expanding credit. good a capillarity lines are have If we review the of records clients we more

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retails. and wholesales have We

have of their ultra-large corporations We we above clients. middle the BRL market, million. XX have biggest then Brazil, the And

at look We’ve extraordinary. had the -- a really So is performance our with control would grown when really, the clients. with we wholesale, costs. We popularity

small of have and companies, better not the retail. a companies, credit profile of cost we a for we because the the they a this cost healthy. more the but have is -- very is of middle, is we’ve the behaved a from wholesale invoicing is a quality with if margin we value been different. with quality our The solid story have Well, that the to of growing very When and is credit is not that net And mix but upscale a operate proposition. for we We have middle-year go lot this margin retail, bit is the where with changed. very well

how just we are new always see managing As bring We we’re we’re models the bank, at observations at elements, new at looking and always profitability, and looking our refeed we as line. looking top not that. we

estimation Our that are margin, well, always aspect main are defined. the is allocated we of way the return this appetite Even In we very making and decision-making we can mantra assets, we possible, best pricing, the value, process. on driver have operations policies in as for though run creation for are the the for but financial our the well the a credit past our decreases, growth look sorry. banks. possible, number [Poladian] done estimation dividends, as we margin not a of growing X. with with performance how at clients manage. We’ve an relevant we expanding only portfolio are Question as that’s of and our being future able doing the And to also

Before we give floor dividends. Rafael. the your The objective. to question is for About

table dividends, on we for policy When hand, that know published. matrix Our assets said you the that one risk. that underrated APR by is, was the the there are

other On profitability. the the hand,

percentage reduced XXX.X and it points the has Our had XX%, And we a on appetite XX CapitalOne. was the board. we about at reduced for for were talking SATX risk

is event. this our So

of Before observing dividends, at table still the XX.X%. we’re

we grow portfolio, second respectively, investments looking capacity be go real to we the The only observing, able the invest. to not to are excess best, of new and an and to point, capital, are our growing We we always not doing when acquisitions.

in so because very a used the capital of to the payout high for why and a with We proctoring was very payout past, opportunities was that a that -- policy And that bank high. the an use are the operate the that we That’s we up there with high. in see was capital. didn’t payout quarter we the have very perspective coming the with created was excess of of

don’t increasing. we Now the see

reasons. XX% X at still We’re working for

are We the in a capital. up doing catching

really of If you the episode. last years, look are X we’ve the the about main the at bank replenished we capital

are that or that the that There capital, positive change challenges There consume and credit go public capital, with of days. the the we future are challenges, bank. are that regulator we the that intangibles risk benefits still [Basel] a have operational some working some and have way We their against in are in nonetheless, we same can transactions or the for the investing in risk.

looking the an to with we and is shareholders, bank the have we of horizon, information we really, the increase do working the least months, been the distribution pay payout. with capacity certainly. at doing, to understand going sense What has the has yes. the And at see any we’re do we’ve not XX are in And for able in the predictability any do increased If future are XX So the next of increasing changes, looking consistency the profitability, the that at profit. any not capital scenario. to the reasonable we adequate that

Renato Lulia

going are go Milton, Now Yes. we to Rafael

Sorry for the start. full

your it’s Now turn.

Rafael Frade

about us I Congratulations the policy that are going here. to answer questions There think of have your results. I X dividends. your dividends, on was

has on an is offering commented over-offering, open I credit over the Milton that even there think on in cards of the that previous hand. the on maybe event

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Milton Filho

for Rafael, comments. thank your the question. you for initial you Thank

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takes parent time. digest to it and adjustment it way affect that the in to credit. and cost happen the portfolio of the of corrections time time. a And takes the in the takes will such growth do It So on time about the

once that guidance. There If beginning of you towards slowly we we that more give the year, that the more stabilize that to follow to expansion was it this in robust of at of a any the is pre-pandemic? at of we’re was not around there of the credit still in the again, lot going quarter a were the they’re look we is that But be to not think lot fourth there have small We guidance things And we going look still unity running levels going should than ‘XX, will that the indicator. anticipating When to threshold. relationship and ahead, the of lower X.X% be I’m we’re online bank. up. believe line were believe is a going a uncertainties. defined, index. up that Look, per

Renato Lulia

good. Very

Let’s the question. next go to

We questions have a long list today. of

Melone]. He screen. is one, on Next [Renato

Unidentified Analyst

limits? more Can results. bit a the you For cutoff the much the your on little expand congratulations you’re concession? adjustments that on with Well, example at how was how do credit on drop continue doing approvals? much next with And the of well, Also, in nowadays? you year? the the the these to are going you reductions, Or are scenario level -- you correct for digital

Milton Filho

that the adjustments all, of necessary first that I Renato, were was say already done.

bad this we a is can space what Remember, always and in the of dynamic look the models vision. we Of course, with margin, at a time is the model If also commerce how history, a do is look but this our are always macro only expectation there performing, a perspective. the client agenda. of the the we’ve scenario, working that not and been is with then we on rate is at there adjustments, can prospective

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the that better that There you sharing. share we’ve in decision the many been give of the was that that made suffering in have income time, less a given level we percentage our in is was with this risk we’ve in public reduction are this was adjustment the So a grew public there relevance a And the points cycle. for that long -- period, done. to just for XX managing a

So the is guaranteed there products.

whole. products. the have the in portfolio them in we percentage So guaranteed a products we’ve of capillarity these increased the points And X as

the But were adjustment, always For the the adjustment. -- happened. information at the If And sharing that there things the the an be that that is based available, look future, can additional already adjustments on big we we’re done. analyzing.

much of we cuts what, the shows adjustment adjustment, of look of card, our central volatility, dimension not seeing at interpret [elepilty]. with the If vehicles the dynamic. these we’re a we’re and is very are size gives and data. credit you open harvest We the the connected you production in XX% of XX% XX% relevant whatever And they point in volume, the and cut how ocean to more that quick of XX%

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Renato Lulia

from Next Tito from Goldman question Sachs. Labarta comes

Tito Labarta

environments. macro Great. capital, the My question, more bit given and a the specifically, but little on political

core Tier I XX.X%, mentioned, XX%. think, X, You

right good improvements quarter. this You’re there, around

would do to that need going hold Just you capital. into, we’re maybe given the more you that feel scenario

Brazil. some government. know deteriorating don’t uncertainty movements you’ve on quality potential fiscal on what the situation from the Asset is I heard in

sector increased Just debts. what renegotiating use potentially we heard is of public like some banks,

make you hold can capital? what provide want potential you’re to cautious you more from And any that on government would So color to hearing programs? more

Milton Filho

Okay, Tito. you much. very Thank

So question. I’ll answer language English your in of the to respect

the is America. in you bank, the use of have going that? the were also for our in could Latin banks why and what this was That of base currencies, dividend a the topic the So and our policy we have the that capital remember, risk is for the was in related And appetite other if when that the but just time, especially biggest Tier largest we back we the to in FX, huge valuation, or have levels that Brazil, was we expecting valuation. we define only we portfolio, seeing about held XX.X%, abroad, because bank. we X impact the the that were At not

to So From the had look devaluation. is this tax a you FX that would that huge base. huge it second time, strategy have impact was generate there will impact real capital It when have depreciation, was we consideration. bank a this in today, we the of take a the whenever and in our that credit, to due overhead

no there overhead. So more is

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hedge even been of at So we the we effectiveness though seeing of and had the the beginning appreciation our perfect. some year, are devaluation has some

for volatility, that That means is that can we good that might in now of we we had uncertainties the type have So that replace very this with buffers news. further future. the

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So are that. confident with we

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this We should be in bank, have the operational in won’t risk XXXX the XXXX. will that impact be but

some buying or pending have some investing companies. We that still approvals are

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Renato Lulia

Jason your which you. but from I’ll language question never sure to next up that question, to the going And ask comes leave Thanks. Mollin, you’re

Jason Mollin

in very question, congratulations on to that. to and in Most do have is living all the everything performance I’ll first, do to solid and opinion. I’d challenging for been results. Well, my question set up of English a addressed. ask one my the my is -- like in repeat questions operational the Itaú Unibanco since high environment, you I’ll it up have standards

been that recap how been But it report, provide commentary and strong through digital And the started the to transformation let cultural agenda you there challenges? statement a them, I update and provided continues transformation So you evolve. cultural how really In MPS. metrics ask customer And can with Itaú have is facing you you if differentiates evolving, satisfaction me have on have digital management the... the Unibanco’s and this. think

Milton Filho

It’s Jason. you us. Thank to compliment. Good see you for to a pleasure Great. you, have the with here

do other many culture answered day how time someone I So transformation. is transformation think XXX%. spent asking I why was me that? cultural the Because is the my I something And with that the every that of to And new Every talk come single every single to down, top walk the moment decision promotion, day. every every and you we single single culture. single have discussion need

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all are We directors.

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in Net it’s transformation, cultural measure Promoter ENPS, I way Score. the the Employee the So

one is a won great the not only We great first to work. system, the work, in over, at receive end people, company very have on in feedback should we you of are you Just if from all had had have the its day, that in good looking so a at we right the bank, This at clients the historical points place reached our ENPS team. number, place to relevant the ENPS. has give But maximum Brazil, achieving the look also most been in ENPS to you the you when XX if but of the the companies in working direction. financial And #X we range.

moving way, still base right but we positive are that we are right very the in challenges. forward, So

-- change don’t or months. you X don’t You in ship X involves

bank new have And also We to moving do the time. we come all are forward. time by, we bringing the culture are as that to

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journey. is we on the towards. And I so happy this XX% are other very of going would process But with hand, the say we are XX% or that that evolution far. the the we are So

to front. still that have we of work a lot do in So

Renato Lulia

And have now next Pactual. Rosman from question, we the BTG

Eduardo Rosman

question very have quick you. for I a

ones, the -- Well, Bradesco. a the investors lot for results about the of their well, of [Poltor] with are Itaú talked surprised private think partner the I transformation. that you of Santander difference other and

peers. seeing mean thing. I And get and a how peers, we in well, the you’re much How explained continue on not the money. us are that on issues. how cyclical in individuals can of look its crop, the took thing that CEO, transformation? you the the the to see. can Itaú can gap that performance more explain since It -- a -- we and Maybe and for by I’m bank that to will structural more think in be companies guidance to trying would high to cycle your will much give if have more that operates be had you wanted the the the the to the if how depends at You number, you client do return but difference much to a

Milton Filho

question. you to answer I an statement Rosman, before our a for competition, for thank the enormous. have enormous respect first, want do I before -- I

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look to We at the have term. statement. the first long That’s

going do I single that conclusions the I the comparisons. I is to predictable, believe itself more and statement talk There I other. comparison, to are the a relative that to from element sustainable, is bank. exclusively to you have your answer. that want factors, attribute talk said that about capabilities this I’m There why Maybe the data long bank term, I or about quality from one information own of internal I based. strength to series did of are no should external to There’s we the all having not about don’t factors I a believe factors, want Second factors. the get want give and performance try talk you. the

plays the What in we’re the by the a you a If look in First that universal bank, role competition. we fact do investing a we are all of at that mean that? of our quality strong all, that businesses, I have results.

performance. highlighted had have We

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is So there hand. here a structural issue at

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interest the rate. of talk So

challenges of positions Banking the hedge, levers is is you are the well be rates, very positioned of the We’re is the had year overhead. that in other. directionally for March, those results on in rare the whether to regardless example, very doing well. it’s We can dynamic, have the of banking, don’t the positions increase we Trading year, pressure. more last more more badge, the of that still this healthy choosing time if delivering interest

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culture. tide just is digital It’s The not one don’t helps digital it isn’t cultural evident you there that answer. have condition. transformation, say the not sufficient. It’s necessary is transformation would I to a right So that enough if the transformation

look client the had businesses, world look all way, the And capacity very the If is understand correct needs. that agility and if the at an also and the complete. the have you at react you wholesale is historical to we in the don’t operation we retail mats. to we don’t When

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that well the about talking digitalization We’re as done. we’ve

a gap. well. the So retail doing insurance very there theme. us a doing well. It was business, in really, individuals Retail for that was is

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to that that to have vision the a I very allowed scenarios. if a it’s of So that the and answer, strong, very achieved a and and that I we’ve are responsibility believe robust us we give has well brings universal navigate factors. bank an you fact great competitiveness that is that challenging set the leadership And with client of

Renato Lulia

[ph] Kuri with us. Jorge here is

Unidentified Analyst

efficiency. congrats on operating the on great And also My question is results.

about so results think And it. I what resilient. big to I you’ve of has I done your and part little it, think you’ve a that’s said lot driven on think be a

to X.X% margin rates. expenses just in ago net to of interest X.X% assets assets and to to I’m looking with from years X gone volatility the volatility out today, the you’ve the expenses at So clean

the more about a to you point is run over you want the another next assets bank to you how cost-income years, with you’re on X X out X think And to next do? cost can next ratio? bank what expenses you years, XX% If see at needed Can run X can to When of it get think about assets? ratio, you and the XX%, percentage the much you could years cost-to-income with there? come X.X% we

Milton Filho

much your you Jorge, thank for very Okay, comments.

say, we we like As overdeliver. to underpromise,

doing or in think been So for is we’ve the as I say say, while ratio. it’s the now. name that view a definition efficiency, that My efficiency an

well. we for So but to we look as look revenues cost,

a depends it scenario. So lot on the

a in We very are now. favorite moment

lower you finding in If see we’re this when level the level lowest we the look year, efficiency of ratio.

our So can do, as see, keep a the control. there under we you that when can operational the is lot compare leverage we bank to you look costs can and can of assets. and We grow

are are investing in to is we bank. lot I a other of highlight not future the that point the -- that The would like we

it’s you you won’t by long cost, the your you the franchise, wrong have you approach you to quarter, cost want a do for make to next So strong in better but a not the sell if and cost-only grow take have very that, that And term. cost franchise not decide can you decisions to businesses, not much to a invest easy ratio product. in

that are here that we have. do based. do the we we way is business we’re it the So Even going our invest, expanding this if because keep the growing keep to have we bank, to decisions long-term

So doing my efficiency is have room view keep agenda. still the that we to

discussing We that every on do you strategic are are part cost, single is our day. of have focused This agenda, that. and always to we

very focused on are We that.

increase. So that room to is have my view still

efficiency doing investments, you most ourselves. nowadays, we the relevant But as have that We global level the like is know. benchmark thing it’s are of that ratio for I think international banks

not very satisfied. are but happy So we

we decisions generate we will to it capability that on able now, depend in So I many but the have quarters. good think in pressure, and we will the scenario. on It did more. room the be revenues depends up are more depends still pressure. It to And less taken to do that the coming

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low the We cost will is keep keep delivering bank, core This costs. is and keep agenda. we investing the the will -- investing in This mantra. on the

Renato Lulia

Mato back Inter. from Now, Portuguese, we to have we and go [Ph] Banco

Unidentified Analyst

regarding the results. cards. on question The is Congratulations credit

to You this reducing have the an what fees, for action increase for rate. I Is is demonstrated wanted overdraft is and there any the that healthy plan in delinquency? level the understand

Milton Filho

once Thank you with us again. for being

you we In period, fact, cannot at -- during snapshot. if the a pandemic just look

less We the purchasing payment less have credit the the to stuff is in look picture, expenses, we and at card less more picture. and expenses lockdown fees. whole have people the What

the So card rate. without predominantly. credit interest -- And our portfolio dropped billion remember XX we that EUR have JPY of billion portfolio, in is the the XXX

EUR portfolio. XX rate is So the billion interest

in course, So yes, the were see less. reduction And more people with of the during where period open some of saw in a ocean. we dynamics spending portfolios, empire delinquency and we the

they paying maybe rate. goes they go agreement. and Before They the do the through delinquent, go the for installments installment by decline paying the interest

have limits step. clients the and these the adjustment the those delinquency the portfolios. is to structural of a -- in concession, whether management until capital. done to part initiatives. the is And when the given has active they -- of our Yes, several management and active be part are a installed, crops, the goes bank are of very the the quality we’ve clients, up that margin. So There benefits with are in actions bank the for adjustment and -- the do to of previous necessary also difficulty. of signs in to through that of series understand portfolio communicating of try the the adjustments. capacity There limits they reduction that is but

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say will this. with the I This the for a are has -- person, that working natural when university. within tendency that and expecting portfolio So information contained -- to we’re be is strongly stabilize, the a nowadays, universe individuals, we stabilization

Renato Lulia

Next question, from we Navarro have Santander. Henrique

Henrique Navarro

of that is like Congratulations you XXXX, Imagine on imagine have the corporate XXX the the result. we coverage My the portfolio that. portfolio. something lower should question regarding be index. If risk

that if that you provision the dividends, Imagine down we interested and bit regulatory line. is then provision before that revert way it you So in you can a records, taxes XXX%? the taxes think increase risk, about consider you the that the the to XXXX, bank your and closer And do criteria, The is also the provision. the over in even then something mentioned where more income. you

profits, coverage that to hypotheses work And in mentioned. we assumptions with the reduction the considering can I for So XXX these index ‘XX? those these year

sense, that do them of make If make sense. you comment? can Some not

Milton Filho

XXX% reasonable bank we process. We Well, a think a I you thank do compliments. the about opportunity. ballpark, to think Henrique, Yes. have an don’t objective. it’s certain stabilization Thank have throughout We not goal. for of a anticipating for this don’t is But we the we level. you this Since index coverage an through modest always with loss, indicator. coverage great a are are manage consequence operating through the a expected is decision-making time the

coverage above at with bank index So the at should reasonable I to when the remain the we this of think confirming that, yes, still When throughout -- coverage, threshold I yes, I that XX%. are but is is look retail, period. look XX%

XX above operating XX%, great a basis we XX%, still period operating We’re is points in percentage of what news. which are

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It liability by already provisioned So anticipated. expected expected we already coverage. of had anything that is the any loss that on event takes that is

So separate. we need to that’s why

there’s isolatedly, to going have We wholesale, volatility retail. look at to in be

them. So have because take client restructuring it’s where that and legacy have provision before before will you the you that, have stress we is a the of stronger, much delinquency situation a with then the

reasonable that challenges the There future. levels. are it’s some coverage to expect have for So good we

reflected way, And give is provisions, So not good navigate reflected the that, to as some coverage you this above but stabilization relationship the mark retail, reasonable we’ll because if would to an because of usage of you a it’s we how coverages the to we a remember, those in I segment, say look provision as on we’ve to able going we number bank coverage. it formation, you’re even fighting be I’m increase expect to the in though NPLs. observed -- perfected. not commented, in project with we’ll still our We’ve some probably NPL all, provisions, give buffer protection balance and total the well against regulatory been in and certain think In against going it’s indicator with that I at give coverage I sheet, an you a index, XXX. on do the there’s idea the above for you

your the threshold. time level or lower margin a lower in take indicator that, you do that to any you you So

Renato Lulia

we We’ve line. got And down have questions now from X Credit more Suisse. the Marcelo Telles

Marcelo Telles

microphone. I Sorry, issue had here an my with

all, course, do we substitute? banks. Milton to First use can in as of an It’s wanted it a business, And you the of result. other card the credit different on PIX is that the now in threshold, a Clearly, the the type increase you opinion how And ask of able you our How is the but be BXB this really and to here -- congratulations chain? see level [Picor] given Do PIX wanted credit the in it of Brazil, fact transaction, card part PIX capture business, in well, do threat transfer? of This what to the impressive. value different think gets you see great I that important about answered, I picks you super to regards most of transaction more market, growth that on see questions the PIX your the transfers. Milton, of to are in were, to my the

Milton Filho

Thank for Thank Thank you, you on I, to you PIX. the all like say for We question. following. of all, in would comments. Marcelo. the first the were

charge As experience, brings it the it, the bank. We already of we this PIX, soon is didn’t discussion as inside for good the tariff internal the If got if XX/X. for transfer we of the a said experience. great

to will cost. transfer come was always EBITDA So for holder universalized for a another, client of freedom when did one they remember from to they the -- transfer account it XX/X another that was the PIX and account the on holder and it it that.

the revenue. of PIX footage on is an our But get focused since impact it’s our There best agenda, So product process front that any on clients. was client, one of the in culture product. is was is the in best product. our The the the to course,

decision the that working at of been we’ve really to diligently, from been How with then payment. a focus evolution on, So payment we’ve and receivables PIX the is is PIX it doing first of on what dislocated. was working method type

of that a the payment, volume ends the market share the we of transactional the great market of and magnitude orders X in keeping have We’re share. receivable at XX% and

very think I numbers relevant our are given that size. these So

they what using they level thinking package of clients, a still accounts They’re we’re services they’re of suitability at not not the looking not But hired. -- at So it. offers. the packages and using the about of of of have a they’re the -- the certain

doing We’re adjustments. the

for that solution well still this that new Brazil. the credit we I PIX Bank ourselves at somehow still BXB is there on are getting the client have speed, more, long-term is vision model, in -- a captured at at a we when PIX, of tens Central Ian a be different So be complement the Central the for PXB right would experience, evolution. a and the so initiatives, can time is map PIX that role method the potential know that centered of great if can X-point grew done, products Bank, sandbox the client the has they We the the price, as going a payment a road that the getting here Central the the that substitute

engagement evolution here So say well, very other our Itaú you opinion it’s its today the Itaú PIX PIX saving in PIX. The the to we’ve because because platforms the never level will evolution to path accounts. wanted of the bank the system always regards line. had the No, of have the is But bank, success We a difficult is trailed, will relevant. inception. banks what and down the the the any of it only fact in all the retaliation and to be in checking from for or work enormous. and assessment the PIX have And since PIX investment any work any is and bank

works only interoperability that So because of that.

satisfied concert we’re of other very that. certainly -- PIX for the good the other it’s This And for good if the with business advances. methods going comes bank, of be So is the we it’s model, are to long if the client. payment, good at for disrupt term. the to It’s

Milton Filho

We have with us, Nicolas of America. Bank Riva from

Nicolas Riva

going I’m ATX on on purpose. So to capital ask your the

calling said going So not and weeks the in XX a to X few you’re be ago, you December.

guess coupon monitoring which And every be call to cost. and right it said the going the on can you’re continue now between refinancing said market. you on you X% based economics. basically about the difference the X should was on But I months, You reset,

And would refinancing Brazilian option points? on call seen placement private is, question raised BRL in a a the have color to quarter domestic some the billion Banco coupon premium then ATX terms pay you for domestic years. any extract that in XX the basis it’s, my cost that? willing there to XXX in if in research be we second, recent of is market Or access in banks basis points, in third order Brasil certain example, in So that market. X.X versus where

raise of how to I I my about question refinance then some finally, could much with sure capital. be, Tito domestic just you the So purpose? the do would in going you the want on Labarta global to capital, there, think ATXs market question back that make correctly. just understood asked And to

on XX% going making Tier on based If targets targets. XX.X% remain decisions you’re if your to dividends those CETX, and X, internal be

Milton Filho

Nicolas. questions. Okay, your to Thank Good see you again. for you

talking start me about Let ATX. the

to you It’s we the points. formal looking the we said, market As basis the market the on that tap to recap that we repricing XXX the very more on said than be call a of prices and should the exercising difference were basis relevant. wouldn’t

decision think the only that, sense the also before that That were call. but exercise that very should much we this to would I in saying not conferences, economic So was the be we to I that it was investors we before saying exercise we communicating transparently, definition were make any And made. didn’t date, this move.

is of thing X automatic the basis that not that before we call. The would XX be basis or exercising say it’s but we But that there discuss, is this that be say of we level exercising. define will would if is, we there price points no that we second won’t I is points, will whatever premium saying premium months there exercising be that we’ll XX

One way raised the will same. to And Brasil, in only we local. did Capital ATXs -- that the well, can there We But as deep not we also issued is it’s go alternatives no dip. second your market. evaluate is we just the Banco change very no of refinance back locally same local offshore, have, comment, offshore we do the but have you There you size in where can a market not the or to

we to certain do in It abroad. swapping very portfolio So have can dollars. up we have and issued same it’s But competitive terms size was even level, to we that competitive. a of price, to our very U.S. don’t the

understand So thing the size. we to the is need

it I be that, exercising to from have that can by above be for And what need the exercising. in year. will the doesn’t are me of future will still the same discuss costs see But -- case that and benefits to very points, that But say XX You made, we difficult on some around, now reasonable that. the the be strategy. we basis you would be we the very We the seem short it’s second understand exercised that is let exercising term, way the next the price. of calls. that comment March question the same should pursue we’ll capital, And clear on we

XX% is Board in we defined bank for appetite will on points XX.X%. have Our are and is the XX the that the be risk the should we X. that This why above of level That’s we of appetite Directors risk have CETX, defined. basis

observing still that are we market. and same approved purpose, dividend to For released we the the policy

payout Level So XX.X%, though of of the risk is the discussing be XX% X.X%, we Below appetite that, shouldn’t XX.X% extra even and any bank X.

Nicolas Riva

If ask can a I follow-up.

at to purpose So the points. question X.X% your least that you Basically, comment the about is issue, a precise. the if And market. you right current issue you be basis able global then XX saying par and course, be in rates, your then wouldn’t then of global below what you’re with think would call now would

Milton Filho

saying I’m much to I’m is call be have basis. the I not more yield XX% discussing. price points that, there we If or make Yes. below decision the The XX But to have basis an call. be discussions. be thing again, wouldn’t that we that the will even will base. at we that there is we’re for -- time. economic above the safe. on the discuss days going we exercise is economic decision on the today, that won’t to expensive, have looking exercise because an I more XX But the we

Tier have a of and the understand level X the a to we what that you we and good that premium of compare compare idea premium the new you have to that issue just price, repricing to the of give are So embedded. have

XX basis the mentioning this here. range So I’m that is

Renato Lulia

these measure I’m In plan presentation. in to of We’re you going back a getting [indiscernible], a to credit credit towards delinquency industry in cards. the we it’s deceleration do the of raise a going the Rafael more parallel question, last through And Well, to Reviews harsh because has ask end. the business perceive segments? cards from And in to the have seen for whole decelerate anything? issuance of credit read. I’m you the [indiscernible] in

Milton Filho

It’s the for us you all, that question. a day. join of through can’t first shame Well, you thank

I think question. that the we previous go back to

have course, This I is The a adjustments. done, of as necessary has we’ve -- is what think measures adjustment this and review across market the still Itaú the relevant been also only not readjustments specific in is done concession that of opportunities. suffering the the taken in we’ve but But call. and is of for happen the board. whole Unibanco not the necessary the what limits we is

the and to this, want to the where the we decline and we separate where important of with actually to face situation the have it’s that transactional derisking do the -- franchise. the need day-to-day card we to opportunity product is in to a every bank. grow of So mention continue as that do such time invest you very And credit the of portfolio

mentioned other So doesn’t relationship any long-lasting with products I make a sense.

adjustments are there be are the that done. taking. will So opportunities But we wherever still necessary,

seen deceleration that from all the in the feeling market, doing in we’ve the relevant adjustment the market is the concession. So they are

Renato Lulia

finish we our And closing our do Q&A earnings. with quarter will results earnings third And the that, can session. Milton, we if will finish for the you also, ‘XX, in of the

Milton Filho

I and for you, our conducting thank here thank you in all would to for participation your event. this. presence Renato, like Well,

agenda. our it’s us, information quality a shared receive the be It’s a to the with able questions. maximum quantitative. to pleasure transparency, For level your of always great pleasure We’ve share to

our we And agenda, is your are and are and And very adjustments the continue are predictability This that would And of in Thank the much to long-term the for operate scenarios very is challenges to Your the market, we cautious I facing objective will say the say and is care every know you sustainability. because all side, -- again, the you day. ourselves for our work on also you’re thank to that are to ahead, I presence. that challenging, why welcome. necessary propagations with have humble. you with our is bank it. necessary, to Once comments. the this making we well, like prepare value, we create

We very respectful. are

not the a role market lot with as working you. play And other and whole, a each are to of you down from hard Thank passion we soon. competition, much. we also continue do. but will to our we Thank earth, our what We only will very see with

Itaú Unibanco Holding (ITUB) 16 Nov 222022 Q3 Earnings call transcript