IRR310313.pdf - Banco Itaú

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At March 31, 2013, total default rate, considering the balance of transactions overdue for over 90 days, reached
4.5%, posting a decrease of 60 bps as compared to March 31, 2012. This ratio remained steady for the portfolio
of credits to individuals and fell 80 bps for the portfolio of credits to companies at the end of March 2013. The
default rate from 15 to 90 days posted a decrease in relation to the same period of the previous year, falling
from 4.8% to 4.0% in the bank’s total portfolio.
3.3.2) Funding
Free, raised and managed assets totaled R$ 1.5 trillion at March 31, 2013, a 13.6% growth as compared to the
same period of 2012. Of this total, 45.6% refer to investment funds, managed portfolios and technical provisions
for insurance, pension plan and capitalization, 26.1% to deposits, debentures, and funds from bills, 24.1% to
Free assets and other funding, and 4.3% to Onlending, interbank deposits and Foreign borrowings through
securities.
As compared to March 2012, we recorded a 26.6% increase in demand deposits added to savings deposits,
which are funded at a lower cost. The increase in funding (net of Compulsory deposits and Cash and cash
equivalents) enabled the improved Loan portfolio and funding ratio, reaching 76.9% at March 31, 2013.
3.3.3) Capital Strength
Basel Ratio – At the end of March 2013, the ratio reached 17.7%, posting an increase of 160 bps as compared
to the same period of 2012, an event that evidences our strength in the capital base.
In March 2013 the Central Bank issued rules for the implementation of Basel III. Itaú Unibanco Holding has
been implementing internal processes to assess the impact of changes in our capital ratio, and the concepts of
this new capital structure have been included in our prospective analyses of capital and liquidity, as part of the
process to adjust our business to the new regulation. We do not foresee the need for changing in our capital
management as a result of the Basel III new requirements.
Rating Agency – on February 28, Moody’s rating agency announced the downgrading of ratings of long-term
subordinated debt issued by Brazilian banks, including Itaú Unibanco Holding, which moved from Baa2 to Baa3.
This recent change is part of the international review in Moody’s subordinated debt rating methodology.
3.4) Stock Market
Market Value – At the end of the first quarter of 2013, we ranked as the 15th largest bank of the world under the
market value criterion (R$ 161.4 billion), according to the Bloomberg ranking, despite of the Real depreciation,
since the ranking is calculated in US dollars.
Traded volume – In the first quarter of 2013 we daily traded R$ 670.3 billion on the stock exchanges where our
shares are traded, with a daily average volume of R$ 310.3 million (ITUB3 and ITUB4) on BM&FBOVESPA and
R$ 360.0 million (ITUB) on New York Stock Exchange (NYSE).
Dividends/Interest on Capital – In the first quarter of 2013, we paid or provided for R$ 587.3 million in dividends
and interest on capital, net of taxes. We highlight that stockholders with stock position on March 28, 2013 will be
paid dividends of R$ 0.015 per share on May 1, 2013, related to the April 2013 base period.
Relations with the Market – we started the Apimec (Association of Capital Market Analysts and Investment
Professionals) meetings cycle with a presentation in Curitiba/PR at Expo Money, the largest financial education
and investments in Latin America. There are 21 Apimec meetings scheduled for 2013 around Brazil.
In March 2013 we held the third Itaú Unibanco Investor’s Day meeting in São Paulo, intended for institutional
investors. This meeting was attended by our CEO and some of the bank's main executives, as well as by 106
investment analysts.
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