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

Balance Sheet
Itaú Unibanco Holding S.A.
R$ million
Total Funds
Sep 30, 10 Jun 30, 10 Sep 30, 09
Sep/10 – Sep/10 –
Jun/10 Sep/09
Funding from Clients 752,935 716,620 649,064 5.1% 16.0%
Repurchase Agreements (1) 65,844 74,641 66,712 -11.8% -1.3%
Borrowings 14,397 13,321 12,147 8.1% 18.5%
Foreign Exchange Portfolio 21,399 18,793 36,722 13.9% -41.7%
Subordinated Debt 33,017 28,255 22,773 16.9% 45.0%
Collection and Payment of Taxes and Contributions 3,707 3,738 3,377 -0.8% 9.8%
Free Assets (2) 50,608 48,821 42,346 3.7% 19.5%
Free Assets and Other 188,972 187,570 184,076 0.7% 2.7%
Total Funds 941,907 904,190 833,140 4.2% 13.1%
(1) Does not include own issued Debentures.
(2) Stockholders´ Equity + Minority Interests - Permanent Assets
Total funds reached R$ 941,907 million at September 30,
2010, growing by R$ 37,716 million and R$ 108,766 million
compared to June 2010 and September 2009, respectively.
External Funding
The table below highlights the main issues abroad of Itaú Unibanco outstanding as of September 30, 2010.
(1) Balance refers to principal amounts.
(2) Amount in US$ equivalent on the dates shown to JPY 30 billion.
(3) Perpetual Bonds.
(4) and (5) Amounts in US$ equivalent on the issue dates shown to CHP 46.9 billion, and
CHP 48.5 billion, respectively.
(6) and (7) Amounts in US$ equivalent on the dates shown to € 200 million, € 100 million
The highest improvement period-on-period was observed
in funds obtained from clients.
Main Issues in Effect (1) Balance at Exchange Balance at
Instrument Coordinator Issues Amortization
Jun 30, 10 Variation Sep 30, 10
and € 300 million, respectively.
(8) Amounts in US$ equivalent on the date to R$ 387 million.
(9) Unidade Financeira de Fomento
(10) 180–day Libor.
(11) 90–day Euribor.
(12) Structured Notes.
US$ millions
Fixed Rate Notes (2) Merrill Lynch 339 20 359 8/13/2001 8/15/2011 4.250%
Fixed Rate Notes Merrill Lynch and Itaubank 100 100 8/13/2001 8/15/2011 10.000%
Fixed Rate Notes Merrill Lynch and Itaubank 80 80 11/9/2001 8/15/2011 10.000%
Fixed Rate Notes (3) UBS/Merrill Lynch 500 500 7/29/2005 Perpetual 8.700%
Fixed Rate Notes (4) Itaú Chile 97 97 7/24/2007 7/24/2017 UF (9) + 3.79%
Fixed Rate Notes (5) Itaú Chile 98 98 10/30/2007 10/30/2017 UF (9) + 3.44%
Floating Rate Notes Itaubank 393 393 12/31/2002 3/30/2015 Libor (10) + 1.25%
Floating Rate Notes (6) Itaú Europa, HypoVereinsbank and LB Baden Wuerttemberg 122 14 136 12/22/2005 12/22/2015 Euribor (11) + 0.55%
Floating Rate Notes (7) Itaú Europa, UBS Inv. Bank/US and Natexis Banques Populaires 367 (67) 300 7/27/2006 7/27/2011 Euribor (11) + 0.32%
Floating Rate Notes (8) HSBC 215 14 229 5/30/2007 5/30/2012 9.210%
Medium Term Notes Banco Itaú Holding Cayman 1,000 1,000 4/15/2010 4/15/2020 6.200%
Medium Term Notes Banco Itaú Holding Cayman 0 1,000 1,000 9/23/2010 1/22/2021 5.750%
Other Notes (12) 2,244 587 2,831
Total 5,556 1,587 (67) 48 7,123
Issue
Date
Maturity
Date
Coupon % p.y.
Equity
At September 30, 2010, the stockholders’ equity totaled R$
57,225 million, an increase of R$ 2,151 million compared
to June. In the same period, the Basel Ratio was 15.3%.
Tangible Capital
A breakdown of the Basel ratio is presented below in order
to show the Tangible Common Equity (TCE) ratio,
internationally defined as Stockholders’ Equity less
intangible assets, goodwill and redeemable preference
shares. This is a conservative performance indicator, as it
R$ million
Sep 30,10 Jun 30,10
Stockholders´ Equity of Parent Company 57,225 55,074
(-) Intangible (3,273) (3,378)
(=) Tangible Equity (A) 53,953 51,696
Risk-weighted Exposure 489,357 454,925
(-) Intangible asset not eliminated from weighting (2,851) (2,914)
(=) Adjusted Risk-weighted Exposure (B) 486,506 452,011
Considering the issue of Subordinated Notes of U$1
billion, the ratio would be 15.6%.
shows the amount of hard equity held by a company. In
Brazil, non-voting shares basically have an equity function
and, for this reason, have not been excluded from Tangible
Equity.
BIS
Tier I (Core Capital)
Tangible Equity
Capital Ratios
15.7 15.3
12.3
11.4
11.9
11.1
Ratios
BIS 15.3% 15.7%
Tier I (Core Capital) 11.9% 12.3%
Tangible Equity (A/B) 11.1% 11.4%
Jun/10
Sep/10
23
Management Discussion & Analysis 3 rd Quarter, 2010