MD&A and Financial Statements (PDF) - Banco Itaú

Balance Sheet
Securities Portfolio
Securities Portfolio History
Itaú Unibanco Holding S.A.
R$ million
Sep 30,10 % Jun 30,10 % Sep 30,09 %
Variation (%)
Sep/10 –Jun/10 Sep/10 –Sep/09
Total Public Securities 59,177 41.7% 52,055 40.4% 54,458 44.4% 13.7% 8.7%
Government Securities – Domestic 51,585 36.4% 45,791 35.5% 45,011 36.7% 12.7% 14.6%
Government Securities – Foreign 7,592 5.4% 6,264 4.9% 9,447 7.7% 21.2% -19.6%
Portugal - 0.0% - 0.0% 27 0.0% - -
Austria - 0.0% - 0.0% 453 0.4% - -
Argentina 274 0.2% 224 0.2% 196 0.2% 22.6% 39.8%
Denmark 1,534 1.1% 788 0.6% 1,851 1.5% 94.6% -17.1%
Spain 836 0.6% 441 0.3% 1,874 1.5% 89.7% -55.4%
Korea 2,043 1.4% 2,090 1.6% 1,503 1.2% -2.2% 35.9%
Chile 1,382 1.0% 1,182 0.9% 1,463 1.2% 16.9% -5.5%
Paraguay 267 0.2% 368 0.3% 282 0.2% -27.5% -5.3%
Uruguay 855 0.6% 774 0.6% 457 0.4% 10.5% 87.0%
United States 361 0.3% 391 0.3% 1,082 0.9% -7.7% -66.7%
Others 40 0.0% 6 0.0% 258 0.2% 550.8% -84.6%
Corporate Securities 28,180 19.9% 27,432 21.3% 23,230 19.0% 2.7% 21.3%
PGBL/VGBL Fund Quotas 43,621 30.7% 41,436 32.2% 36,404 29.7% 5.3% 19.8%
Derivative Financial Instruments 10,901 7.7% 7,901 6.1% 8,485 6.9% 38.0% 28.5%
Total Securities 141,879 100.0% 128,825 100.0% 122,576 100.0% 10.1% 15.7%
At September 30, 2010, the securities portfolio added up
to R$ 141,879 million, representing a 10.1% increase from
the prior quarter. The securities portfolio mix was changed
in the period, with an increase in the exposure to
government securities. On the other hand, the relative
share of corporate securities decreased.
Evolution of Securities Portfolio
R$ million
138,344 141,879
136,248
10,069 124,745 122,576 120,189 121,372 128,825 10,901
17,605
8,048
7,901
8,485 5,939 8,162
30,024
32,334
43,621
34,476
41,436
36,404 38,626 40,153
25,774 27,998
24,117
28,180
23,230 23,414
13,888
23,968
27,432
12,035
9,440
7,592
9,447 8,319 7,993
6,264
52,907 51,958 48,664 45,011 43,889 41,097 45,791 51,585
Derivative Financial Instruments
PGBL/VGBL Fund Quotas
Private Securities
Public Securities – Foreign
Public Securities – Domestic
Dec/08 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Jun/10 Sep/10
Credit Portfolio by Risk Level
At September 30, 2010, the share of credits rated "AA" to
"C" grew by 30 basis points compared to the prior quarter,
accounting for 90.4% of the portfolio. The increased share
was a result of the overall improvement in the portfolio
profile, attested by the growth in “AA” and “A” portfolios,
by 8.7% and 7.2%, respectively. Such growth was basically
driven by the reduced risks associated with the corporate
segment. At the same time, the credit portfolio rated “D-H”
continues to lose share since September of last year, as a
result of the improved economic scenario and the
introduction since the end of 2008 of more conservative
credit policies.
Evolution of Credit Portfolio by Risk Level
27.8% 26.1% 21.7% 21.2% 21.0% 21.4% 21.9% 22.6%
42.0% 41.2%
43.3% 44.2% 45.1% 44.3% 44.7% 45.3%
Dec/08 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Jun/10 Sep/10
AA
A
B
C
D-H
Δ Balance
Sep10 x
Jun/10
8.7%
7.2%
17.0%
17.0% 17.8% 17.9% 17.7% 18.4% 18.2% 17.3% 0.4%
5.2% 6.2% 6.4% 5.6% 5.8% 5.7% 5.3% 5.3% 5.5%
8.0% 9.5% 10.8% 11.1% 10.5% 10.2% 9.9% 9.6% 0.0%
20
Management Discussion & Analysis 3 rd Quarter, 2010