IRR310313.pdf - Banco Itaú

Balance Sheet by Currency
We adopt a management policy for foreign exchange risk
associated with our asset and liability positions that is primarily
intended to prevent impacts on consolidated results from
fluctuations in foreign exchange rate parities.
Brazilian tax legislation determines that gains and losses from
exchange rate variations on permanent foreign investments
must not be included in the tax basis. On the other hand, gains
and losses arising from financial instruments used to hedge such
asset positions are impacted by tax effects. Therefore, in order not
to expose net income to foreign exchange rate variations, a
liability position must be built at a higher volume than the
hedged assets.
The Balance Sheet by Currency shows our assets and liabilities
denominated in local and foreign currencies. On March 31, 2013,
the net foreign exchange position was a liability of US$9,058
million.
Assets | Mar 31, 2013
Liabilities and Equity | Mar 31, 2013
Note: It does not consider eliminations of operations between local and foreign business units.
Assets and liabilities denominated in foreign currencies
Business in Brazil
Consolidated Total Local Currency
Foreign
Currency
R$ million
Business
Abroad
Cash and Cash Equivalents 13,737 7,578 5,803 1,776 7,075
Short - Term Interbank Deposits 197,423 186,359 186,359 0 11,790
Securities 261,204 224,951 224,803 149 65,977
Loan, Lease and Other Loan Operations 344,160 281,395 268,450 12,945 75,081
Loans 371,348 307,285 294,340 12,945 76,380
(Allowance for Loan Losses) (27,188) (25,890) (25,890) - (1,298)
Other Assets 198,805 170,825 156,030 14,795 45,346
Foreign Exchange Portfolio 40,225 19,258 6,422 12,836 37,817
Other 158,580 151,567 149,608 1,959 7,529
Permanent Assets 13,378 36,916 12,563 24,353 791
Total Assets 1,028,707 908,025 854,008 54,018 206,061
Derivatives – Purchased Positions 78,398
Total Assets After Adjustments (a) 132,415
Business in Brazil
Consolidated Total Local Currency
Foreign
Currency
R$ million
Business
Abroad
Deposits 238,555 177,712 177,457 255 62,210
Funds Received under Securities Repurchase 296,103 276,941 276,941 - 19,162
Funds from Acceptances and Issue of Securities 53,277 67,180 37,892 29,288 14,750
Borrowings and On Lendings 62,890 53,363 38,960 14,403 22,584
Interbank and Interbranch Accounts 9,245 9,095 7,335 1,760 150
Derivative Financial Instruments 8,434 6,466 6,466 - 2,550
Other Liabilities 186,376 144,370 132,200 12,169 59,375
Foreign Exchange Portfolio 40,634 19,739 7,941 11,798 37,746
Other 145,742 124,631 124,260 371 21,628
Technical Provisions of Insurance, Pension Plan
and Capitalization 96,624 96,585 94,816 1,769 39
Deferred Income 1,090 994 504 490 96
Minority Interest in Subsidiaries 1,697 905 905 - 792
Stockholders' Equity of Parent Company 74,416 74,416 74,416 - 24,353
Capital Stock and Reserves 70,944 70,944 70,944 - 23,924
Net Income 3,472 3,472 3,472 - 430
Total Liabilities and Equity 1,028,707 908,025 847,892 60,133 206,061
Derivatives – Sold Positions 90,791
Total Liabilities and Equity After Adjustments (b) 150,925
Net Foreign Exchange Position Itaú Unibanco (c = a - b) (18,509)
Net Foreign Exchange Position Itaú Unibanco (c) in US$ (9,058)
We present below the net foreign exchange position, a liability position at a higher volume than the balance of the hedged assets
(overhedge), which, when considering the tax effects on the net balance of other assets and liabilities denominated in foreign currency,
reflects the elimination of the exposure to foreign exchange variations.
R$ million
Balance Sheet
Variation
Mar/13
Dec/12
Mar 13 – Dec 12
Investments Abroad 24,353 20,459 3,894 19.0%
Net Foreign Exchange Position (Except Investments Abroad) (42,862) (34,390) (8,472) 24.6%
Total (18,509) (13,931) (4,578) 32.9%
Total in US$ (9,058) (6,817) (2,241) 32.9%
Management Discussion & Analysis
Itaú Unibanco Holding S.A.
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