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

BUSINESS PERFORMANCE
We present below the main achievements of Itaú Unibanco in the period from January to September 2010.
Net income for the first nine months of the year reached R$ 9.4 billion, with annualized return of 23.3% on
average equity (19.8% for the same period of 2009). Recurring net income was R$ 9.6 billion, with annualized
return of 23.8%. Itaú Unibanco paid or provided for its own taxes and contributions in the amount of R$ 9.4
billion for the same period of 2010. The Bank also withheld and passed on taxes in the amount of R$ 5.7 billion,
which were directly levied on financial operations.
Total consolidated assets reached R$ 686.2 billion at September 30, 2010.
Consolidated stockholders’ equity totaled R$ 57.2 billion at the end of September 2010. The loan portfolio,
including endorsements and sureties, reached R$ 313.2 billion, an increase of 16.6% as compared to the
balance at September 30, 2009. In Brazil, the balance of loans to individuals totaled R$ 118.8 billion. In the
large company segment, the portfolio balance totaled R$ 104.4 billion, and the very small, small and middlemarket
company portfolio reached R$ 76.4 billion, whereas the real estate loan portfolio reached R$ 12.0 billion
at September 30, 2010, with a 52.7% increase in comparison with September 30, 2009.
Free, raised and managed assets totaled R$ 941.9 billion, an increase of 13.1% as compared to September 30,
2009.
Basel ratio stood at 15.3% at the end of September 2010, based on economic-financial consolidated.
Itaú Unibanco’s preferred shares rose 21.6% as compared to the quotation of June 30, 2010, and 12.7% as
compared to the quotation of September 30, 2009. The market value at Stock Exchanges of Itaú Unibanco,
calculated considering the average quotation of preferred shares outstanding in the last trading session of the
period, reached R$ 182.2 billion at the end of September. According to the company Bloomberg, Itaú Unibanco
ranked tenth among banks in the world at September 30, 2010, having market value as parameter.
In the credit card market, Itaú Unibanco, the leader in the consumer credit segment in Brazil, by means of
Itaucard, Unicard and Hipercard, offers a wide range of products to 40 million account-holders and non-account
holders clients, originated in proprietary channels and through partnerships with companies that have
outstanding performance in the markets they are engaged. From January through September, the transacted
amount reached R$ 92.2 billion, a 26.9% increase in relation to the same period of the previous year.
Insurance, pension plan and capitalization operations reached R$ 10.8 billion in the period from January to
September 2010 in premium income. Technical provisions for these segments totaled R$ 58.5 billion at
September 30, 2010.
The vehicle segment of Itaú Unibanco remains by far in the leading position in this market and posted a good
performance in the period from January to September 2010, reaching a portfolio balance of R$ 57.3 billion,
13.2% higher than the same period of the prior year.
In the investment banking area, Itaú BBA took part in operations of debentures and promissory notes that
totaled R$ 12.1 billion, and of securitization that totaled R$ 2.3 billion in the first nine months of 2010. In the
Brazilian Financial and Capital Markets Association (ANBIMA) ranking of fixed-income distribution, Itaú BBA
was the first position in September 2010, with a market share of 20.0%. In the fixed-income international issues,
Itaú BBA acted as joint bookrunner of offerings, with a total volume of US$ 11.6 billion, reaching the second
position in this ranking until September 2010. Noteworthy in the period was the offering of Brazilian sovereign
bonds carried out by Itaú BBA, which became the first Brazilian bank to lead the funding for the National
Treasury through Global 2041, with a total volume of US$ 500 million. In capital markets, Itaú BBA coordinated
in the first nine months of 2010 ten public offerings that totaled R$ 130.8 billion, consolidating its leadership
position among the market leaders. In September 2010, Itaú BBA acted as global coordinator in the offering of
Petrobras shares, the biggest public offering of shares in the world, which total funding reached R$ 120 billion.
With the addition of this offering, Itaú BBA acted as coordinator in 61% of transactions, which represented 91%
of the financial volume issued in this year. In this same period, Itaú BBA also provided financial advisory
services to 26 merger and acquisition operations. With the completion of these operations, Itaú BBA closed the
period occupying the second position in the Thomson ranking in number of transactions.
Itaú Unibanco S.A. – - September0, 2010 53