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

Pro Forma Financial Statements by Segment
Commercial Bank
The Commercial Bank result is derived in the offering of
financial products and banking services to a diversified
client base, including individuals and companies. The
segment includes retail clients (individuals and very small
companies), high-income clients, wealthy clients (private
bank) and small and mid-size companies.
In the third quarter of 2010, recurring net income of the
Commercial Bank totaled R$ 1,483 million, remaining
practically stable. In this quarter there was the 6.6%
growth in financial margin with clients, mainly driven by
growth in the loan portfolio.
The non-interest expenses grew 5.4% over the previous
quarter, mainly caused by the intensification of the
migration process of Unibanco's branch platform to Itaú.
The credit portfolio totaled R$ 114,805 million, or a 5%
increase compared with the prior period. The commercial
Bank return on allocated capital reached 31.7% per annum
while the efficiency ratio stood at 53.3% in the period.
Some Commercial Bank Highlights:
Assets Under Management (AUM)
R$ billion
Itaú Unibanco Holding S.A.
Quantity of Credit Card Accounts*
in thousands
25,707
24,676
23,520 23,280 23,800
Sep/09 Dec/09 Mar/10 Jun/10 Sep/10
*Does not include additional and partnership cards
Amount of Transactions
R$ million
26,303
25,420
24,154 24,719
21,199
20.1% 20.0% 20.1% 21.3% 20.8% 20.5% 20.2% 19.8% 19.4%
265 258 269
52
58 61
305 310
59 61
334 349 345 357
76 79 82 86
3rd Q/09 4th Q/09 1st Q/10 2nd Q/10 3rd Q/10
214 200 208
245 249 258 269 262
Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Jun/10 Sep/10
Investment Funds Managed Portfolios Market Share *
*Source: ANBIMA (Brazilian Association of Financial and Capital Market Entities)
At the end of the third quarter of 2010, assets under
management totaled R $ 357,495 million, a 3.7% growth
from the previous quarter.
Credit Cards
Itaú Unibanco is the leader in the Brazilian credit card
market. Itaucard, Unicard and Hipercard offer a wide range
of products to 25.7 million clients, both account holders
and non-account holders. In the third quarter of 2010, the
volume of transactions on credit cards added up to
R$26,303 million, equal to a 24.1% increase when
compared to the same period of the prior year.
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Mortgage Loans
In the third quarter of 2010, the mortgage loans portfolio
amounted to R$ 11,963 million, growing by 13.9%
compared to the prior quarter, and maintaining the
accelerated expansion rate that has characterized the real
estate market in the most recent quarters.
Between July and September 2010, the volume of new
mortgage loans financing contracts to individuals
amounted to R$ 1,099 million, while financing to
companies added up to R$ 2,265 million, for a total of R$
3,364 million.
R$ million
Volume of contracts
Variation
3 rd Q/10 2 nd Q/10
3 rd Q/10 –
2 nd Q/10
%
Individuals 1,099 1,022 77 7.5%
Companies 2,265 1,776 489 27.5%
Total 3,364 2,798 566 20.2%
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Management Discussion & Analysis 3 rd Quarter, 2010