IRR310313.pdf - Banco Itaú

Activities abroad
Credit Portfolio Evolution (1)
R$ Billion
The information on our operations consolidated in Itaú BBA
International is presented below:
23.4
24.7
22.1 22.9
20.4 19.3
20.3
17.8
25.6 25.8
27.1 27.1
28.3 28.3
Itaú BBA International - Income Statement
R$ million
Itaú BBA International
1Q13 4Q12 1Q12
sep/11 dec/11 mar/12 jun/12 sep/12 dec/12 mar/13
Credit Portfolio
Credit Portfolio | Geographical Distribution (1)
10.4%
11.2%
10.5%
mar/13
Chile
67.8%
Argentina
Uruguay
Credit Portfolio (Current Currency²)
10.3%
11.8%
11.6%
Paraguay
mar/12
66.2%
Europe, Caribbean and Miami
Our banking activities are carried out in Europe (United Kingdom,
Switzerland and Luxembourg) and outside Europe (Miami, the
Cayman Islands and the Bahamas), mainly in two business
segments:
· Corporate & Investment Banking: we meet the financial needs of
companies with international presence and operations, with a
focus on operations related to financing and investment
relationships between companies in Latin America and Europe.
The services offered include the origination of structured
financing, hedging transactions, trade financing and advisory to
both European companies investing in Latin America and Latin
American companies investing overseas.
Operating Revenues 217 109 87
Financial Margin 154 31 27
Banking Service Fees and Income from Banking Charges 62 73 51
Other Operating Income 4 6 2
Equity in Earnings of Affiliates and Other Investments 0 0 7
Non-operating Income (4) (1) 0
Loans and Retained Claims Losses net of Recovery 1 0 0
Operational Margin 218 109 87
Other Operating Expenses (95) (111) (73)
Non-interest Expenses (95) (111) (73)
Income before Tax and Profit Sharing 123 (2) 15
Income Tax and Social Contribution (9) 31 (7)
Profit Sharing (2) (2) (2)
Recurring Net Income 112 27 6
Return on Average Equity – Annualized 23.2% 6.5% 1.9%
Return on Average Assets – Annualized 2.6% 0.6% 0.2%
Efficiency Ratio 43.8% 101.6% 83.3%
Net income for the first quarter of 2013 amounted to R$112
million, basically explained by the increase of R$123 million in the
financial margin compared to the fourth quarter of 2012. This
increase is related to the growth of the trading and foreign
exchange portfolios (R$52 million) and to the positive foreign
exchange variation in foreign currency investments (R$71
million). Besides, administrative expenses dropped compared to
the fourth quarter of 2012 because the costs of the restructuring
process in Europe (advisory and consulting fees), of
approximately R$7 million, were recorded in the last quarter of
2012.
In relation to the first quarter of 2012, the significant growth in
net income is also explained mainly by the increase in the
financial margin. Also, there was an increase in revenues from
commissions on syndicated operations and private portfolio
management service fees.
· Private Banking: Under the corporate structure of Itaú BBA
International, we manage private banking activities in
Luxembourg, Miami, the Bahamas and Switzerland, offering
specialized financial products and services to high net-worth
Latin American clients.
Continuing the restructuring process of our banking activities in
Europe, on February 1, 2013, Banco Itaú BBA International S.A.,
which is headquartered in Portugal, was merged into Itaú BBA
International Limited, which is headquartered in the United
Kingdom. The purpose of this restructuring process is to allow
Itaú IBBA International to improve its performance, expand its
client base, strengthen its position as the Group’s international
platform, improve and optimize financing sources, enhance risk
diversification and achieve higher profitability levels.
(1) The information refers to our main operations in Latin America (Argentina, Chile, Paraguay and Uruguay).
Management Discussion & Analysis
Itaú Unibanco Holding S.A.
66