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

Balance Sheet by Currency (*)
Itaú Unibanco adopts an exchange rate risk management
policy with respect to its assets and liabilities positions that
is primarily intended to prevent impacts on consolidated
results from fluctuations in exchange parities.
The Brazilian tax legislation determines that exchange
variation gains and losses on permanent foreign
investments shall not be included in tax calculations. Gains
and losses arising from financial instruments used to
hedge such asset positions, however, are impacted by tax
Balance Sheet
Assets
Itaú Unibanco Holding S.A.
effects. Therefore, in order not to expose net income to
exchange variations, a liability position should be built at a
higher volume than the hedged assets.
The Balance Sheet per Currencies shows assets and
liabilities balances denominated in local and foreign
currencies. As of September 30, 2010, the net exchange
position, including investments abroad, was an liability of
US$ 9,071 million.
Consolidated
Itaú Unibanco
Total
Sep 30,10
Business in Brazil
Itaú Unibanco
Local Currency
Foreign
Currency
R$ million
Business
Abroad
Itaú Unibanco
Cash and Cash Equivalents 11,063 7,116 5,584 1,532 4,534
Short Term Interbank Deposits 112,483 105,236 105,135 101 9,244
Securities 141,879 124,538 124,183 355 31,740
Loans 279,035 249,095 241,299 7,796 40,866
(Allowance for Loan Losses) (23,284) (22,575) (22,575) 0 (709)
Other Assets 154,796 148,374 136,220 12,154 26,479
Foreign Exchange Portfolio 20,571 19,274 7,714 11,560 21,306
Other 134,226 129,100 128,506 594 5,173
Permanent Assets 10,275 30,418 8,992 21,426 1,283
TOTAL ASSETS 686,248 642,202 598,838 43,364 113,438
Derivatives – Purchased Positions 47,913
Futures 20,451
Options 11,509
Swaps 6,436
Other
TOTAL ASSETS AFTER ADJUSTMENTS (a)
9,517
91,277
Liabilities and Equity
Consolidated
Itaú Unibanco
Sep 30,10
Business in Brazil
Itaú Unibanco
Total Local Currency
Foreign
Currency
Deposits 194,917 162,252 162,031 220 34,165
Funds Received under Securities Repurchase Agreements 155,636 149,090 149,090 0 6,546
Funds from Acceptances and Issue of Securities 23,379 28,205 13,972 14,234 8,746
Borrowings and OnLendings 43,259 45,776 30,620 15,156 10,307
Interbank and Interbranch Accounts 8,281 8,115 5,989 2,126 166
Derivative Financial Instruments 9,077 7,388 7,388 0 1,905
Other Liabilities 132,090 122,469 110,565 11,904 30,141
Foreign Exchange Portfolio 21,399 20,154 8,853 11,301 21,254
Other 110,691 102,315 101,712 603 8,887
Technical Provisions of Insurance, Pension Plans
and Capitalization 58,490 58,481 57,792 689 8
Deferred Income 237 209 209 0 28
Minority Interest in Subsidiaries 3,658 2,992 2,992 0 0
Stockholders' Equity of Parent Company 57,225 57,225 57,225 0 21,426
Capital Stock 47,792 47,792 47,792 0 20,194
Net Income 9,433 9,433 9,433 0 1,232
TOTAL LIABILITIES AND EQUITY
686,248 642,202 597,872 44,330 113,438
Derivatives – Sold Positions 62,315
Futures 23,990
Options 16,302
Swaps 12,412
Other
TOTAL LIABILITIES AND EQUITY AFTER ADJUSTMENTS (b)
9,611
106,645
Net Foreign Exchange Position Itaú Unibanco (c = a - b) (15,368)
Net Foreign Exchange Position Itaú Unibanco (c) in US$ (9,071)
(*) Does not consider eliminations of operations between local and foreign businesses.
Business
Abroad
Itaú Unibanco
24
Management Discussion & Analysis 3 rd Quarter, 2010