IRR310313.pdf - Banco Itaú

Executive Summary
Banking Services Fees and Income from Banking
Charges
R$ million
5,149 5,122
4,432
4,122 4,233
4,311 4,341 4,338
the existing seasonal factors of the first quarter, such as the
concentration of payments of taxes on assets, expenses related to
the beginning of the school year, among other.
The Expenses for Allowance for Loan and Lease Losses decreased
R$801 million in the quarter (a drop of 14.0%), totaling R$4,939
million. The income from the recovery of credits written off as
losses decreased R$124 million, totaling R$1,086 million.
Non-Interest Expenses
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
In the first quarter of 2013, banking service fees, including
income from banking charges, recorded only a slight decrease in
relation to the previous quarter, totaling R$5,122 million, despite
the seasonality factor that is typical at year end, which increases
the banking service fees in the period (mainly for credit cards).
When compared to the same period of the previous year,
banking service fees increased 18.8%, boosted by the acquisition
of minority shareholders’ interest in Redecard at the end of 2012.
Even if the effect of the proportional increase of our stake in
Redecard were disregarded, the increase would have been of
8.8%.
Result from Insurance, Pension Plan and
Capitalization
33.0 33.2
1,105
1,297
25.5
1,363
35.2
1,279
39.3 41.0
1,227 1,195
33.3
1,402
38.4
1,354
4.0% 4.0% 3.9%
3.6% 3.7%
7,895 8,253 8,327 7,956 8,205 7,898
3.4% 3.4%
R$ million
3.2%
8,491 8,280
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Non Interest Expenses (R$ million)
Non Interest Expenses / Average Assets
In the first quarter of 2013, non-interest expenses decreased
R$211 million (2.5%) in relation to the previous quarter, totaling
R$8,280 million. Personnel expenses increased 8.5% when
compared to the previous quarter, impacted by the recognition
of actuarial gains related to benefits to employees in
stockholders’ equity (until 2012 these were realized in income),
but were offset by the 7.3% drop in administrative expenses,
mainly due to the lower expenses with third-party services (lower
volume of advisory and audit services provided in the period)
and to the decrease in marketing expenses (decrease in expenses
with institutional advertising and promotional materials when
compared to the last quarter of 2012).
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Result form Insurance, Pension Plan and Capitalization Claims Ratio (%)
In the first quarter of 2013, the result of insurance, pension plan
and capitalization operations totaled R$1,354 million, an increase
of R$76 million from the same period of the previous year and a
decrease of R$48 million when compared to the fourth quarter of
2012. The result of insurance before the commercialization and
claims expenses grew 9.0% compared to the first quarter of 2012.
Result from Loan Losses, Net of Recovery
3,806
5,237 5,110
1,431
3,779
3,998
5,587
4,998 4,995
4,946
6,210 6,139 6,120
4,531
5,741
3,854
4,939
1,332 1,589 1,212 1,144 1,174 1,210 1,086
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Expenses for Provision for Loan and Lease Losses
Income from Recovery of Loans Written Off as Losses
Result from Loan Losses
R$ million
The result from loan losses, net of recovery, decreased 14.9% in
relation to the previous quarter, totaling R$3,854 million in the
quarter. This decrease becomes more significant if one considers
Risk-Adjusted Efficiency Ratio (R.A.E.R) (*) and
Efficiency Ratio (E.R.)
48.2
70.7
49.3
73.1
47.1
70.5
48.5
70.1
47.0
70.9
47.4
70.7
44.4
71.9
46.6
73.9
44.9
72.3
45.8
74.2
45.0
73.5
45.3
75.3
46.6
74.2
45.2
73.4
48.0
73.9
46.1
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Quarter E.R. (%) Quarter R.A.E.R. (%)
E.R. Cumulative figure of the last 12 months (%) R.A.E.R. Cumulative figure of the last 12 months (%)
(*) The criteria for calculating the ratios are detailed on page 24.
The risk-adjusted efficiency ratio, in the full concept (that includes
all expenses), for the first quarter of 2013 reached 72.8%, a
decrease of 60 basis points in relation to the previous quarter,
impacted by reduced expenses for allowance for loan and lease
losses and retained claims. In the last 12 months, the risk-adjusted
efficiency ratio reached 73.9%.
In the first quarter of 2013, the efficiency ratio, in the full concept
(that includes all expenses), reached 48.0%, corresponding to a
140 basis point increase from the previous quarter. In the 12-
month period, the efficiency ratio reached 46.1%, an
improvement of 50 basis points in relation to the same period of
the previous year.
72.8
Management Discussion & Analysis
Itaú Unibanco Holding S.A.
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