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

ITAÚ UNIBANCO HOLDING S.A.
Consolidated Statement of Cash Flows
(In thousands of Reais)
01/01 to
09/30/2010
01/01 to
09/30/2009
ADJUSTED NET INCOME
25,736,657 29,048,166
Net income
9,433,161 6,853,820
Adjustments to net income:
16,303,496 22,194,346
Granted options recognized 82,494 85,644
Adjustment to market value of securities and derivative financial instruments (assets/liabilities) (302,188) (2,573,210)
Effects of changes in exchange rates on cash and cash equivalents 441,005 2,778,897
Allowance for loan losses 11,954,420 12,382,541
Results from operations with subordinated debt 1,833,246 833,532
Results from securitization of foreign payment orders - (309,741)
Financial expenses on technical provisions for pension plan and capitalization 2,898,334 3,089,433
Depreciation and amortization (Note 15b) 1,669,292 1,640,143
Adjustment to legal liabilities – tax and social security 98,898 1,809,860
Adjustment to provision for contingent liabilities (762,828) (305,323)
Deferred taxes (38,184) (590,540)
Equity in earnings of affiliates and other investments (Note 15a III) (180,481) (180,369)
Income from available-for-sale securities (1,894,680) 1,800,901
Income from held-to-maturity securities (125,938) 508,736
Amortization of goodwill - 556,576
(Income) loss from sale of investments (160,205) (365,914)
Minority interest 713,235 622,763
Other 77,076 410,417
CHANGE IN ASSETS AND LIABILITIES
(42,539,714) (5,171,670)
(Increase) decrease in interbank investments
13,197,646 9,740,732
(Increase) decrease in securities and derivative financial instruments (assets/liabilities)
(16,360,120) 7,917,651
(Increase) decrease in compulsory deposits with the Central Bank of Brazil
(48,221,338) 23,833
(Increase) decrease in interbank and interbranch accounts (assets/liabilities)
1,752,071 803,321
(Increase) decrease in loan, lease and other credit operations
(45,903,066) (4,541,461)
(Increase) decrease in other receivables and other assets
3,169,906 2,932,181
(Increase) decrease in foreign exchange portfolio and negotiation and intermediation of securities (assets/liabilities)
612,848 605,584
(Decrease) increase in deposits
4,144,481 (17,100,006)
(Decrease) increase in deposits received under securities repurchase agreements
23,701,546 2,305,994
(Decrease) increase in funds for issuance of securities
6,059,702 (1,058,040)
(Decrease) increase in borrowings and onlending
8,566,880 (9,930,073)
(Decrease) increase in credit card operations (assets/liabilities)
768,169 (871,608)
(Decrease) increase in securitization of foreign payment orders
- (3,518,992)
(Decrease) increase in technical provision for insurance, pension plan and capitalization 2,827,414 3,890,507
(Decrease) increase in collection and payment of taxes and contributions
3,233,845 2,711,712
(Decrease) increase in other liabilities
2,049,735 3,883,964
(Decrease) increase in deferred income 42,826 668
Payment of income tax and social contribution
(2,182,259) (2,967,637)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
(16,803,057) 23,876,496
Interest on capital / dividends received from affiliated companies
Funds received from sale of available-for-sale securities
Funds received from redemption of held-to-maturity securities
Disposal of assets not for own use
Disposal of investments
Payment of income tax and social contribution from sale of investments
Acquisition of minority interest in Itaú XL Seguros Corporativos S.A. (Note 2a)
Acquisition of minority interest in Previtec – Previdência e Tecnologia Ltda. (Note 2a)
Sale of fixed assets
Write-offs of intangible assets
Purchase of available-for-sale securities
Purchase of held-to-maturity securities
Net cash and cash equivalents of assets and liabilities arising from the purchase of Redecard S.A.
Purchase of investments
Purchase of fixed assets
Purchase of intangible assets
NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES
85,374 63,152
11,151,067 11,310,223
532 47,471
263,673 191,477
189,189 384,145
(56,511) (124,411)
(157,299) -
(32,000) -
52,456 49,790
70,931 -
(9,878,320) (9,460,025)
(514,403) -
- (485,994)
(22,585) (32,080)
(1,344,097) (700,408)
(321,832) (318,444)
(513,825) 924,896
Increase (decrease) in subordinated debt 9,146,034 (525,537)
Change in minority interest (585,491) (458,314)
Granting of stock options 303,927 218,010
Purchase of treasury shares - (21)
Dividends and interest on capital paid (4,152,051) (3,619,572)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 4,712,419 (4,385,434)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (12,604,463) 20,415,958
Cash and cash equivalents at the beginning of the period
65,917,455 37,182,300
Effects of changes in exchange rates on cash and cash equivalents (441,005) (2,778,897)
Cash and cash equivalents at the end of the period (Notes 4a and 5)
52,871,987 54,819,361
Itaú Unibanco S.A. – - September0, 2010 63