IRR310313.pdf - Banco Itaú

Banking Operations & Insurance Operations
The pro forma financial statements below were prepared based on internal information from our management model for the purpose of
presenting the performance of our banking and insurance operations (1) .
Statement of Income | Operating Revenues Perspective
R$ million
1Q13
4Q12
Consolidated
Banking
Operations
Insurance
Operations
Consolidated
Banking
Operations
Insurance
Operations
Operating Revenues 19,635 16,667 2,968 20,738 17,726 3,012
(2)
Managerial Financial Margin 11,526 11,526 - 12,608 12,608 -
Banking Service Fees and Income from Banking Charges (2) 5,122 5,122 - 5,149 5,149 -
Result from Insurance, Pension Plan and Capitalization (2) 2,957 29 2,928 2,938 (21) 2,959
Other Components of Operating Revenues 30 (10) 40 44 (9) 54
Loan and Retained Claim Losses Net of Recovery (4,812) (3,861) (951) (5,413) (4,536) (878)
Result from Loan and Lease Losses (3,854) (3,854) - (4,531) (4,531) -
Retained Claims (958) (8) (951) (882) (5) (878)
Operating Margin 14,823 12,805 2,017 15,325 13,190 2,135
Other Operating Income/(Expenses) (9,965) (8,806) (1,159) (10,295) (9,019) (1,275)
Non-interest Expenses (8,509) (7,976) (533) (8,716) (8,097) (618)
Selling Expenses From Insurance (390) 137 (527) (421) 148 (569)
Other Results (1,066) (967) (99) (1,158) (1,070) (88)
Income before Tax and Profit Sharing 4,857 4,000 858 5,030 4,171 859
Income Tax and Social Contribution and Profit Sharing (1,345) (1,034) (312) (1,529) (1,230) (298)
Recurring Net Income 3,512 2,966 546 3,502 2,941 561
(1)
The Insurance Operations, in this section, include insurance pension plan and capitalization operations.
(2)
Under the managerial reporting standards , both the fees and the financial margins are allocated as result from insurance, pension plan and capitalization.
Evolution of Net Income and Segments’ Share in Net Income of Itaú Unibanco
Banking Operations
The recurring net income from banking operations (banking
products and services) reached R$ 2,966 million in the first
quarter of 2013, an increase of 0.9% from the previous quarter,
mainly due to the reduction in the expenses for the provision for
loan losses, which were partially offset by the drop in operating
revenues as a result of the reduction in the managerial financial
margin for the period.
The share of the banking operations in total net income reached
84.5% in the quarter, an increase of 50 basis points from the
fourth quarter of 2012.
Insurance Operations
The recurring net income from insurance operations (1) reached
R$ 546 million in the first quarter of 2013, a decrease of 2.7% from
the previous quarter, mainly due to the increase in retained
claims and reduction in the managerial financial margin, which
were partially offset by the increase in earned premiums, pension
contributions and capitalization revenues in the period.
In the first quarter of 2013, the insurance ratio (represents the
share of recurring net income from Insurance, Life and Pension
Plan and Capitalization in Itaú Unibanco Holding’s recurring net
income) reached 15.5%, a drop of 50 basis points from the
previous quarter.
The ratio of operating revenues from insurance operations to
total operating revenues reached 15.1%, an increase of 60 basis
points in relation to the previous quarter.
86.9 85.7
2,882
3,379
R$ million
83.6 84.8 86.2 86.3
84.0 84.5
3,133
3,004
3,090
2,944 2,941 2,966
13.1
10.3
435
16.4
14.3
15.2
10.0 10.2 13.9
562
613
539
13.8
13.6
495
14.3
13.7
469
R$ million
16.0
15.5
14.5
15.1
561 546
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Recurring Net Income from Banking Operations Share of the Banking Operations (%)
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Recurring Net Income from Insurance Operations
Operating Revenues from insurance operations / Total Operating Revenues (%)
Insurance Ratio (%)
Note: Insurance Ratio (%) = Insurance, Life and Pension Plan and Capitalization segment’s recurring net income/ Itaú Unibanco’s recurring net income.
(1)
Net income from Insurance Operations, in this section, includes net income from the insurance pension plan and capitalization operations.
Management Discussion & Analysis
Itaú Unibanco Holding S.A.
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