Relationships - Banco Itaú

Annual Sustainability Report 

2009

This Report presents a panorama of the main accomplishments of 

Itaú Unibanco Holding S.A. in 2009, the first year after the merger between 

Itaú and Unibanco. The year was notable for its expectations and major 

challenges, many of which have now been overcome thanks to the 

performance and hard work of all the Bank’s teams, who share our Vision of 

being a leader in sustainable performance and customer satisfaction. 

R$608 billion in assets 

39.8 million clients 

102,000 employees 

88,000 suppliers 

4,900 branches and banking services outlets in over 1,100 cities and towns 

Present in 12 countries in the Americas, Europe and Asia

Reading Guide 

Unibanco Holding S.A. regularly reports to 

the general public on its financial, social 

and environmental performance and future 

projections. To give our stakeholders clear and 

easy access to the information they want, we 

have divided this Report into publications 

tailored for specific groups (see diagram on 

opposite page). 

The traditional printed Report is designed 

for a select group consisting of shareholders, 

investors, analysts, governments and customers, 

and provides the most material information 

about our operations. The magazine version is 

widely distributed and includes testimonials 

from customers, employees and other 

stakeholders to demonstrate the impact of 

our activities on people’s lives. The Audiobook 

is an aural program whose content is similar 

to that of the magazine, and was made 

specifically for the visually impaired. These 

three communication platforms are present in 

the Online Report, which brings together all 

the information in the 2009 Itaú Unibanco S.A. 

Annual Sustainability Report. 

The icons below accompany the text and 

are used to draw our readers’ attention to 

the relationship between the information 

presented and Itaú’s priority Essence of 

Sustainability themes. 

Essence of Sustainability 

The eight challenges that comprise Itaú Unibanco’s Essence of Sustainability, which are 

referred to throughout this Report (for more information see page 24). 

Transparency and Governance 

Climate Change 

Customer Satisfaction 

Financial Education 

Socio-environmental Criteria 

Microfinance 

Diversity 

Stakeholder's Engagement

Relatório Anual de Sustentabilidade 2009 em Revista 1 

2009 Annual Sustainability Report 

Online Report 

www.itauunibanco.com.br/ 

relatoriodesustentabilidade 

revista 

Annual Sustainability Report 2009 

Dialogues 

Interaction initiatives for our 

strategic relationship groups 

People 

The role of our employees 

as we become a global player 

Reaching a Milestone 

Overcoming the merger and 

global financial crisis with 

our achievements in 2009 

Transformation through Art 

Instituto Itaú Cultural and Instituto 

Unibanco broaden public access 

to culture and education 

Printed Version 

Audiobook 

Magazine

Annual Sustainability Report 2009 

Contents 

Message from the Chairman of the Board 2 

Message from the President 4 

2009 Highlights 6 

Profile 8 

Panorama 18 

Sustainability Vision 20 

Corporate Governance 26 

Business 46 

Relationships 72 

Social and Cultural Investments 108 

Awards and Recognition 118 

Glossary 120 

Appendices 122 

2009 Annual Sustainability Report 1

Message from the Chairman of the Board 

“A crisis is a terrible thing to waste.” 

Paul Romer – Senior Fellow at the Stanford Institute for 

Economic Policy Research 

What a difference a year makes. 

A year ago I wrote my first letter as Chairman 

of Itaú Unibanco in the midst of one of the 

worst economic crises the modern world has 

ever seen—one that brought down some of 

the biggest names in international finance. 

Thanks to widespread panic and a grim business 

environment, stock markets around the world 

hit rock bottom during the first quarter of 2009. 

Many felt the world was heading towards 

depression. 

As I sit down to write this letter in January 2010 

the general mood is entirely different. Stock 

markets have substantially recovered, Brazil’s 

Bovespa Index has edged closer to its historic 

high, and key risk indicators are back to their precrisis 

levels. Uncertainty remains, but the feeling 

of panic is behind us. 

The global economy, however, still faces great 

challenges. An overhang of private sector debt 

and the accelerated growth of public debt, 

combined with still-growing unemployment and 

the inevitable reduction in fiscal and monetary 

stimulus packages, makes the possibility of a 

sustained economic recovery open to scepticism. 

Ironically, the idea of decoupling is back in 

vogue—but this time with a twist. There 

are now fewer uncertainties regarding the 

prospect of economic growth in developing 

countries, particularly the so-called BRICs, than 

in the developed world. There is an increasing 

consensus that the paths are diverging, at 

least for the coming years: low growth rates in 

Europe, the United States and particularly Japan, 

as opposed to higher and more sustainable 

growth rates in countries such as China, India 

and Brazil. 

Brazil, in particular, came through the crisis 

relatively unscathed. After a sudden stop in 

the fourth quarter of 2008, the effects of which 

were still being felt during the first quarter of 

2009, the economy rebounded vigorously. By 

the fourth quarter of 2009 Brazil was growing 

at an annual rate of 8%, with rapidly expanding 

industrial activity. The job market also 

rebounded swiftly: the average unemployment 

rate was 8.1% in 2009, very close to the 7.9% 

rate of 2008, while the total wage bill boasted 

real growth of 3.9% for the year. 

Taking all of this into consideration, I look 

forward to 2010 with confidence. Brazil’s 

economy should grow close to 6%, with inflation 

remaining under control. Job creation is now 

at record levels. In fact, one of the biggest 

challenges that companies will face in coming 

years is hiring and training enough qualified 

employees, which from a country’s perspective is 

a good problem to have. The markets’ indifference 

to the upcoming presidential elections reflects a 

high degree of maturity and consensus within 

Brazilian society over those policies which have 

ensured economic stability. There are several 

risks with this rosy scenario, however, particularly 

on the fiscal side, which could bring serious 

challenges to the next administration. 

And what about Itaú Unibanco 

The bank had two major challenges in 2009: 

executing a highly complex merger and 

managing a credit portfolio in an apparently 

rapidly shrinking market. One of the risks of 

a merger of this size and complexity is that 

people become internally focused, which can 

negatively affect market share and profitability. 

Our approach was to avoid dragging out the 

decision-making process by quickly selecting 

new teams, business models, IT systems and 

product portfolios. 

+ Decoupling – The ability of an economy to grow without corresponding increases in environmental pressure. 

2 Itaú Unibanco Holding S.A.

By December 2008 the new Executive 

Committee had been chosen. In February 2009, 

when the Central Bank approved the merger, 

the second level of management was put into 

place. In March the three treasury operations 

(Itaú, Itaú BBA and Unibanco) were consolidated 

into a single unit. By mid-year all senior 

management had gone through a thorough 

evaluation by the Executive Committee, allowing 

for a clear understanding of the talents and 

skill sets available to the new organization. 

By year-end Itaú Unibanco was almost fully 

integrated, save the branch network, which will 

be merged during 2010. Despite a strong focus 

on restructuring, Itaú Unibanco kept its market 

share among private sector banks across virtually 

all our business lines. 

Defining the proper culture is, in my opinion, a 

cornerstone of the successful integration of the 

two organizations that formed Itaú Unibanco, 

as it offers our over 100,000 employees a clear 

vision of the future and provides a powerful 

management tool to attract and develop 

the new talent and leadership needed in 

the years to come. We will be building on 

solid ground. Last year, two of Brazil’s leading 

workplace analysts—the Great Place to Work 

Institute and the University of São Paulo— 

named Itaú Unibanco as one of the country’s 

best companies to work for. Neither Itaú nor 

Unibanco had ever appeared at the same 

time in both lists, which shows how highly our 

employees value the opportunities the merger 

will bring to their professional development. 

new group within Brazil’s rapidly expanding 

insurance market. 

Based on data from the International Monetary 

Fund, and adjusting for local currency 

purchasing power, we estimate that Brazil 

will be one of the five largest economies in 

the world before the end of this decade. I am 

confident that Itaú Unibanco, whose creation 

is a testament to the stability of Brazil’s financial 

system and the strength of its economy, will be 

one of the leading agents behind this growth. 

Sincerely, 

Managing the credit portfolio was not an easy 

task in 2009. During the first quarter we stated 

that some deterioration in the portfolio was to 

be expected until the third quarter of the year 

when, according to our models, a reversal of the 

trend would occur. In retrospect, this is exactly 

what happened. Excess reserves provided 

ahead of the merger were instrumental in 

strengthening the Bank’s balance sheet which, 

together with prudent lending throughout 2009, 

allowed Itaú Unibanco to successfully confront 

the many challenges of these adverse economic 

conditions. The Bank ended the year with 

recurring return on equity of 22.3%. 

In the fourth quarter of 2009 the Board’s Human 

Resources committee conducted a thorough 

analysis of the type of organizational culture 

best suited to the bank’s ambitious goals. 

All these accomplishments were 

enthusiastically received by the markets: Itaú 

Unibanco shares rose 129% in local currency 

terms in 2009, while our market value at yearend 

reached R$182 billion (US$104 billion), 

placing us ninth among banks worldwide— 

and sixth among western banks. 

Before concluding this letter, I wish to mention 

a key strategic decision we took in 2009: the 

sale of our automobile and home insurance 

operations to Porto Seguro S.A., in return for 

a 30% equity stake in the resulting entity. This 

leading insurance company now offers the 

marketplace a strong line-up of well-known 

brands, the largest distribution network in 

the country, unparalleled customer service 

and a wide array of products and services. We 

are excited by the growth prospects for this 

Pedro Moreira Salles 

Chairman of the Board of Directors 

Itaú Unibanco Holding S.A. 


Message from the President 

“Intensely. That’s how 

we lived and worked in 2009.” 

And that’s how we started 2010. After all, the 

process of integrating an organization of our 

size has required flexibility, commitment and 

adaptability from all of us. Just over a year after 

the beginning of joint operations, virtually all 

areas of the Bank have been unified, which 

reveals our teams’ level of mobilization. 

This is underlined by the fact that even in the 

middle of this intense process of transformation 

we kept our market share in our key business 

portfolios, and were chosen by our staff as 

one of Brazil’s best places to work. We have 

consolidated our leadership in motor vehicle 

financing and in the cards market, grown 

significantly in mortgage lending and redoubled 

our efforts with small and medium-sized 

companies, all of which are priority segments for 

us. We also restructured our insurance area and 

joined forces with Porto Seguro, Brazil’s leading 

vehicle insurer, which should add greatly to the 

products and services we offer. 

We have been alert to the effects of the global 

economic situation on our markets, but have 

not allowed ourselves to become paralyzed. 

In fact, we have looked for innovative and 

creative solutions to remain by our customers’ 

side and maintain our commitment to provide 

them with high quality financial services. We 

have made car loans easier and, faced with 

the challenges imposed by these economic 

times, have made refinancing much faster, 

which helps customers better adapt to their 

financial means. In mortgage lending our 

strong portfolio has continued to grow. We 

have increased the range of services for 

credit card customers, which has improved 

their perception that electronic money is an 

ally in their financial planning. In insurance 

our priority has been simplicity, enabling 

customers to clearly identify the value of 

having protection. All these initiatives share 

the philosophy of placing customers first, 

regardless of internal or external circumstances. 

In 2010 our challenge will be to complete the 

integration of Unibanco’s 1,000 branches to 

the Itaú platform while maintaining service 

quality. Our teams have been working on this 

since 2009, and have shown they can make 

this integration a success, thanks to shared 

cultures and values which will allow us to 

develop business opportunities that will easily 

exceed the sum of our strengths. Now, with all 

our areas restructured and driven by a single 

culture, we will begin to reap the rewards of the 

potential synergies generated by the merger. 

With the creation of Itaú Unibanco Holding S.A., 

we envision new new business opportunities 

in the domestic market, in which gains of scale 

have become crucial in the face of determined 

competitors. At the same time, we have 

expanded our operations in the Southern Cone as 

a springboard to strengthen our performance in 

Latin America. 

Given the desire to become a key player in the 

global financial market, in August we established 

an International Advisory Board, whose objective 

is to help expand our presence within the 

international financial community. This new 

Board will allow us to better monitor the risks and 

opportunities offered by the global economy. 

In this environment of change and hard work, 

it’s critical to be connected to the desires of 

the markets we serve. Listening to customers, 

investors, consumer protection agencies and 

the general public are one of our primary 

commitments, as our strategic relationship 

groups are in the best position to point out where 

we need to improve. We also recognize that not 

everyone may be happy with our integration 

process, but we are committed to minimizing 

these impacts and restoring their level of 

satisfaction and trust. 


In 2009 we undertook extensive relationship 

efforts to show investors the scale of the bank 

we are building. Also in the relationships 

area, we are focusing on financial education 

and in 2010 will increase the scope of the 

Conscientious Use of Money program. We 

want to give the general public information 

to help them be better prepared and able to 

use financial services and products. 

Although we dedicated considerable time 

and effort to integrating our operations, we 

did win a number of awards at home and 

abroad, including Bank of the Year in Latin 

America from the British magazine The Banker, 

and Sustainable Bank of the Year in Emerging 

Markets from the British newspaper Financial 

Times. This recognition was not just for our 

dedication, but for all our continuing work 

to add value for investors, shareholders, 

customers and society. 

Faced with the prospects of growth for the 

Brazilian economy, in 2010 we are focused on 

achieving performance consistent with our 

size, and consequently contributing to the 

development of our society. The recovery of 

economic activity will have a positive impact on 

the financial sector, where expansion of credit is 

expected. The year will also mark the beginning 

of a memorable period for Brazil, which is 

looking ahead to two landmark events: the 2014 

Soccer World Cup and the 2016 Olympic Games. 

We will be active participants in helping build 

this future, and are sure that all of us - individuals, 

professionals, fans and citizens - will have many 

accomplishments to celebrate. We look forward 

to even more years as intense as this past one. 

Sincerely, 

In 2009 Itaú Unibanco was selected for 

the Dow Jones Sustainability World Index, 

marking our tenth year on the world’s most 

important sustainability index. This is further 

evidence that we have taken the right path, 

and employed consistent practices which are 

attuned to the challenges of our times. 

Roberto Setubal 

President and CEO, Itaú Unibanco Holding S.A. 


Highlights 2009 

A decade on the Dow Jones Sustainability World Index 

For the tenth consecutive year we were part of the list of 317 companies from 27 countries that 

comprise the Dow Jones Sustainability World Index. Maintaining our participation in this select 

group during the first year of integrating our operations required a maximum effort from our 

staff teams, who showed their commitment to ethical, transparent management and the need 

to combine financial return with creating socio-environmental value. Itaú is Latin America’s only 

financial institution to have been part of the Index since its inception in 1999. Among the seven 

Brazilian companies selected for the 2009/2010 edition, two are directly or indirectly linked to our 

operations: Itaúsa and Redecard. 

Integration Progress 

In the first year after the merger, the results of the integration of operations between Itaú and Unibanco 

exceeded expectations. To strengthen our performance and ensure excellence in customer service, 

we sought out the best aspects of both banks in all business areas. Other measures included adopting 

the Board’s new governance structure, which now works through five committees, and the rapid 

unification of the Corporate, Investment Banking, Brokerage, Asset Management, Vehicles, Private 

Banking and Treasury areas, all of which were fully integrated by the first quarter. 

Leadership in Cards 

Revenues from credit cards reached R$5.8 billion in 2009, an increase of 7% over 2008 and accounting 

for more than a third of our income from services. We are the leaders in Brazil’s credit card segment, 

offering Itaucard, Unicard and Hipercard products to nearly 23 million account and non-account 

holders. In 2009 we conducted about R$85 billion in credit card operations. 

Association with Porto Seguro 

In August Itaú joined forces with Porto Seguro, Brazil’s largest automobile insurer, creating one of the 

most important partnerships in the domestic insurance industry: Porto Seguro Itaú Unibanco (Psiupar), 


10 years 

on the Dow Jones Sustainability World Index. 

which will carry out home and car insurance for both institutions. The company immediately became 

a leader in these segments, with 3.4 million vehicles and 1.2 million homes insured. The controllers of 

Porto Seguro own 57% of Psiupar, while the Bank has 43%. Our employees who worked in the vehicle 

and home insurance areas have now joined the new company, which is based in São Paulo. 

Partnerships 

Our partnership with retail chain Magazine Luiza has been expanded and extended until 2029. 

Under the terms of the agreement we paid R$250 million to increase our exclusive relationship with 

Luizacred S.A. The partnership includes the distribution of credit products by Luizacred, a financial 

services company jointly controlled by Magazine Luiza and the Bank, in all of Magazine Luiza’s physical 

and virtual outlets, as well as through call centres, the internet, mailing and other points of sale or 

forms of contact between the retailer and its customers. Magazine Luiza is one of Brazil’s largest 

retailers, with 455 stores. In 2010 we will step up efforts to secure other partnerships similar to those 

we have established with the Lojas Americanas, Marisa, Magazine Luiza, CBD and Ponto Frio retail 

chains, and Vivo, a mobile telephone carrier. 

Unique Carbon Credit Fund 

In September we launched the Itaú Carbon Index Fund, the first carbon credit index-linked fund in the 

Brazilian capital market, raising over R$170 million by November. Returns are based on the Barclays 

Capital Global Carbon Excess Return Index Euro (BGCI), a global index that tracks the performance of 

carbon credits traded through the European Union’s Emissions Trade Scheme (ETS) and the UN’s Clean 

Development Mechanism (CDM). 

Rio Wind raises over R$2 billion 

The Wind River (Rio Wind) equity fund, launched in Japan by our Asset Management division in partnership 

with Daiwa Asset Management, reached a milestone in November. In little more than 30 days, the 

fund, which is composed of shares of Brazilian companies, raised R$2 billion from Japanese investors. 


Profile 

• Creating Value 

• Leadership in Sustainability 

• A New Bank, a New Culture 

• Key Indicators 

The creation of Itaú 

Unibanco Holding S.A., 

announced on November 3, 2008, resulted in one of the 

world’s largest financial services institutions. 

The merger between Itaú and Unibanco was approved by the Central 

Bank of Brazil on February 18, 2009. We have continued our commitment 

to sustainable development by providing services, processes, products 

and transparent relationships to our strategic relationship groups, 

bringing together and reinforcing the sustainability vision and strategies 

shared by Itaú and Unibanco. 

We are leaders in numerous domestic business areas, and boast a highly skilled work force. Our 

operating strategy in the increasingly competitive financial sector is to continue building a modern 

corporate culture in keeping with a bank that seeks superior financial returns. To accomplish this 

we will continue to follow, as always, the good corporate governance practices developed over 

time by both institutions. 

We operate in more than 1,100 Brazilian cities and towns throughout the entire country. Overseas 

we have branches and offices in 12 countries in the Americas, Europe and Asia, and we plan to 

increase our presence in these markets in coming years, after consolidating our operations in Brazil 

and Latin America. 

Based in São Paulo, the Bank had approximately 102,000 employees and a network of about 4,900 

branches and banking services outlets at the end of 2009, plus over 30,000 ATMs installed in Brazil’s 

five regions. 

Itaú Unibanco trades its common and preferred shares on the São Paulo (BM & FBovespa) Stock 

Exchange, and share deposit certificates and receipts (CEDEARs and ADRs) on the Buenos Aires 

(BCBA) and New York (NYSE) stock exchanges, respectively. 


In this chapter 

The key indicators and features of Itaú Unibanco Holding S.A. 

• Assets and financial results in 2009 

• Building the future 

• Overview of social and cultural activities 

Pre-launch campaign of 

the new corporate culture 

to Itaú Unibanco staff. 


Profile 





Creating Value 

During the first year of the merger, which was marked by the 

challenges of the process of consolidating our operations, our 

performance was recognized by winning a number of national and 

international awards, thanks to the market position we achieved and 

the consistency and transparency of our practices. These 

awards include: 

Best Brazilian Bank (three awards) - Latin Finance, Euromoney and 

Global Finance magazines; 

• Most Admired Company in Brazil’s Banking Sector - Carta Capital 

magazine; 

• One of Brazil’s Best Companies to Work For (two awards), The Great 

Place to Work Institute and Época magazine; and Exame and Você 

SA magazines, Fundação Instituto de Administração (FIA) and the 

University of São Paulo (USP); 

• Most Sustainable Bank of the Year in Emerging Markets - Financial 

Times newspaper and the International Finance Corporation (IFC); 

• Bank of the Year in Brazil and Latin America - The Banker magazine; and 

• Named one of 20 model companies in the 2009 Exame 

Sustainability Guide. 

Leadership in Sustainability 

For the tenth consecutive year Itaú 

Unibanco was chosen to be one of 317 

companies from 27 countries on the 

2009/2010 edition of the New York Stock 

Exchange’s Dow Jones Sustainability World 

Index (DJSI World). We are the only financial 

institution in Latin America to be part of 

this Index since its inception in 1999. The 

DJSI World tracks indices that evaluate the 

performance of public companies that are 

leaders in sustainability, by geographical 

distribution and sector of activity. These 

companies are part of the leading 10% of 

world leaders in sustainability, covering 70 

sectors in 22 countries. 

Among the seven Brazilian companies 

selected for the 2009/2010 edition of the 

Index, two are directly or indirectly linked 

to our operations: Itaúsa (the Group’s 

controlling shareholder) and Redecard, 

of which we own 50%. Itaúsa, a leader in 

financial services, is on the Index for the 

sixth time and was selected for the third 

consecutive year. 

Itaú, Itaúsa and Redecard are also among the 

more than 30 companies from 12 sectors 

that make up the São Paulo Stock Exchange 

(BM & FBovespa) Corporate Sustainability 

Index (ISE). Launched in 2005, the ISE covers 

only listed companies that are recognized for 

adopting financial, socio-environmental and 

corporate governance best practices. 


R$608.3 billion 

in total consolidated assets. 

The Itaú Unibanco Vision 

Be the leading bank in sustainable performance and customer satisfaction 

The Organization innovated in setting out its vision. We chose a simple sentence – 

albeit an objective and challenging one - that could be easily memorized. Any reader 

will quickly ascertain where we want to go and what we want to be: giving customers 

and our performance the same level of priority. 

Code of Ethics - Principles 

• Identity 

• Good Faith 

• Interdependence 

• Excellence 

A New Bank, a New Culture 

Successful organizations have one thing in 

common: a strong corporate culture. Based on 

this reasoning we dedicated our best efforts 

throughout 2009 to learning the aspirations of 

our employees and consequently drawing up 

the Bank’s new culture and vision. 

Throughout this process over 16,000 

employees from our administrative areas and 

the branch network took part in quantitative 

and qualitative surveys. The issue also 

extended to the People Committee, which 

operates under the Board of Directors, while 

the design of the new corporate culture was 

discussed in several Executive Committee 

sessions. After countless hours of work, Our 

Way was the result. 

The process of building our Vision was 

concomitant to that of the new culture. Both 

take into account the values perpetuated by 

Itaú and Unibanco throughout their histories 

and what we want for our future. Our Way 

has in its DNA a little of the Itaú Way and the 

Unibanco Way, combined with our commitment 

to continually improve for our customers, 

employees, shareholders and the country. 

The Itaú Unibanco Vision and Our Way were 

announced at the Leaders Meeting held in 

São Paulo on February 22-25. During the 

event the Chairman of the Board of Directors, 

Pedro Moreira Salles and the Chairman of 

the Executive Committee, Roberto Setubal, 

spoke to an audience of 14,000 Bank leaders 

and pointed out their fundamental role in 

practicing these values and attitudes. 

During the same event both men announced 

the launch of the new Itaú Unibanco Code of 

Ethics, which was also built on the previous 

principles and codes of both institutions. 

This laid the foundations for us to build 

a cohesive, clearly directed team, with a 

commitment to the same values and attitudes. 

Team Itaú Unibanco - a bank with a deep 

interest in people and what they are capable 

of doing to make this a better world. 

Building the Future 

We combined an enormous legacy with the same solid 

foundations, corporate positioning and values and principles 

developed over the years by Itaú and Unibanco, which were 

created by two men who believed in their ideas: Alfredo 

Egydio de Souza Aranha and João Moreira Salles. 

The stories of the two banks crisscross each other on the 

timeline. September 27, 1924 saw the beginning of banking 

services offered by Casa Moreira Salles, which would later 

become Banco Moreira Salles. This institution soon figured 

in a long series of mergers and acquisitions, finally adopting 

the name Unibanco in 1975. 

The cornerstone of Itaú was laid by Alfredo Egydio de Souza 

Aranha on January 2, 1945, when the first branch of Banco 

Central de Crédito opened its doors. The Itaú brand emerged 

in 1973, although the name had already been used by the 

group for companies such as Itaú America. 

With converging paths, the merger between the institutions 

became public on November 3, 2008, concluding more than 

a year of private discussion on how best to combine the 

operations. On January 2, 2009 Itaú celebrated 64 years since 

its founding, while Unibanco marked its 85th anniversary 

on September 27. So in honour of the memory and legacy 

built by their founders, the anniversary date of Unibanco, the 

older of the two banks, was chosen. 

Historically, two names have been crucial to the success 

achieved by Itaú and Unibanco: Olavo Setubal and Walther 

Moreira Salles. The lives of these two businessmen, and the 

growth of the two banks they led, become intertwined with 

Brazil’s economic, political and social history. 

Similarities between the two banks are present in the values 

of their leaders and staff teams. The founders’ successors 

have remained faithful by building on another common 

feature: the ability to meet customer needs with excellence 

and in increasingly differentiated ways. 


Profile 





Memory Preserved 

The Memory Space facility, located within the Itaú Unibanco Business Center at our 

corporate headquarters, houses the story of two institutions that have joined forces 

to become one of the world’s ten largest financial services groups, according to US 

firm Bloomberg. 

The idea of preserving our memory was born in 2003, with the safekeeping, handling 

and providing of information to support our internal areas and business activities, and to 

promote our culture and values. The Memory Space features an exhibit area, a technical 

reserve for keeping document collections, research and technical treatment rooms and a 

mini-auditorium for viewing films, plus a refreshment area. 

To celebrate our 85 years of existence, in September 2009 the Memory Space opened its 

Joining Histories, Building the Future exhibit, which runs until May 2010 and takes visitors 

on a journey through time by recreating the parallels between our histories and the 

transforming ideas of our founders. The journey includes the technology revolution and 

growth of customer services, from the old manual processes to the latest in automated 

banking, right up to the time of the merger and our most recent initiatives. 

Social and Cultural Actions 

In the social and cultural areas we 

operate through three independent but 

complementary organizations that underline 

our contribution to sustainable development: 

Fundação Itaú Social, Instituto Unibanco 

and Instituto Itaú Cultural. With different 

strategy and governance structures, in 2009 

they helped present the 50th anniversary 

of the music of Roberto Carlos, the Salvador 

Carnaval, the Joinville Dance Festival and the 

Curitiba Theatre Festival, among other events, 

in addition to sponsoring all categories of the 

Brazilian national soccer team as well as other 

sports-related projects designed to train and 

develop Brazilian athletes. Total investments 

exceeded R$9 million. 

When visiting the facilities, visitors can access corporate information, photos of our 

headquarters and historical images displayed on interactive digital screens, all in an 

environment designed to stimulate knowledge and gain insights into history. 


The Portuguese Language Olympics program - Writing 

the Future, developed by Fundação Itaú Social, received 

the 2009 Corporate Citizen of the Americas Award from 

the Organization of American States’ (OAS) Foundation 

for the Americas. 

Joinville Dance Festival. 

Financial Results 

Itaú Unibanco’s net income was R$10.1 

billion in 2009, with a 21% return on average 

shareholder’s equity. Consolidated net equity 

reached R$50.7 billion at December 31. The 

Solvency (Basel) Ratio (the minimum capital 

required to guarantee loans) remained at 16.7%, 

based on the Bank’s consolidated results. 

The Bank’s preferred shares rose 61.5% in 

value from December 31, 2008, while the 

market value reached R$175.1 billion at 

year-end, a figure that places us among the 

world’s nine largest banks, according to the 

US firm Bloomberg. 

In Brazil the consumer client credit portfolio 

reached R$103.1 billion, up 10.7% from 2008. 

Large company loans reached R$88.9 billion, 

while the credit portfolio for micro, small and 

medium-sized companies finished the year at 

R$60.1 billion. 

Proprietary, raised and managed assets totalled 

R$855.1 billion, rising 5.9% during the period, 

while technical provisions for insurance, 

pensions and annuities were R$52.4 billion. 

In 2009 the Bank collected or provided a total of 

R$14.1 billion in taxes and social contributions. 

It also collected and transferred R$8.1 billion in 

taxes from customers, derived from financial 

services. Consolidated assets reached R$608.3 

billion at the end of December, the largest such 

amount among privately-controlled financial 

groups in the Southern Hemisphere. 


Profile 





Itaú Unibanco Business Centre, 

São Paulo, Brazil. 

Key Indicators 

(in R$ billions) 

Total Assets 608.3 

Credit Operations 1 278.4 

Customer Deposits 2 190.8 

Net Equity 50.7 

RNI 3 10.5 

1 

Including endorsements and sureties 

2 

Demand, Savings, Interbank and Term Deposits 

3 

Recurring Net Income 

TOTAL ASSETS 


2005 

2006 

2007 

2009 2008 

2009 

244.2 

313.4 

444.5 

638.1 

608.3 

NET INCOME 


2005 7.2 

2006 15,8 

8.4 

2007 

11.9 

2008 10.0 

2009 

10.1 


Financial results show the Bank has 

remained competitive during the 

integration process. 

Revista Exame, junho de 2009 

11% 

Shareholders 

20% 

Reinvested Profits 

2008 

13% 

31% 

Payroll 

2008 

19% 

2008 

32% 

2008 

34% 

2008 

2% 

3% 

Third Parties 

35% 

Taxes 

Distribution of Value 

Added (DVA)* - 2009 

Total distributed: R$35 billion 

* 

Refers to the direct economic value generated and 

distributed by the Organization, including revenues, 

operating costs, employees compensation, donations and 

other community investments, retained earnings and 

payments to capital providers and government. 

CREDIT OPERATIONS * 


2005 114.9 

2006 

2007 

148.4 

202.9 

2008 271.9 

2009 278.4 

SOLVENCY (BASEL) RATIO (%) 

2005 17.0 

2006 15,8 17.2 

2007 

17.9 

2008 

2009 

16.1 

16.7 

* 

Including endorsements and sureties 

CUSTOMER DEPOSITS 


Total Deposits 190.8 

Cash Deposits 

Savings Accounts 

Term Deposits 

25.8 

2.0 Interbank Deposits 

48.2 

114.7 

ROE (%) * 

2005 30.9 

2006 15,8 29.4 

2007 

26.2 

2008 

2009 

24.8 

22.3 

* Average Recurring Return on Equity – Annualized 

NET EQUITY 


EFFiCIENCY RATIO (%) 

2005 15,8 24.9 

2005 

49.6 

2006 

33.5 

2006 15,847.4 

2007 

40.8 

2007 

46.5 

2008 

43.7 

2008 

45.3 

2009 

50.7 

2009 

42.4 


Profile 





Branch in Santiago, Chile. 

Presence in the Global Market 

Unibanco London Branch 

Europe (London) 

Europe (Luxembourg) 

Unibanco (Luxembourg) 

Unibanco Representative 

Office (New York) 

Unibanco Securities (New York) 

Securities (New York) 

(New York) 

BBA (New York) 

Itaú Bank Ltd. (Cayman) 

BBA (Nassau) 

Europe (Portugal) 

Securities (Dubai) 

Securities (Tokyo) 

(Tokyo) 

BBA (Shanghai) 

Unibanco Grand Cayman Branch 

Unicorp Bank & Trust Ltd. (Cayman) 

Securities (Hong Kong) 

Unibanco (Brazil) 

(Brazil) 

Interbanco S.A. (Paraguay) 

BBA (Brazil) 

(Chile) 

(Uruguay) 

BBA (Uruguay) 

(Argentina) 

BBA (Argentina) 

(in US$ millions) 

at December 31, 2009 Assets Net Equity 

Overseas branches 29,746 5,065 

Banco Itaú Argentina S.A. 1,217 99 

Itaú Europe (consolidated) 16,052 889 

Cayman (consolidated) 7,026 2,372 

Chile (consolidated) 6,617 747 

Uruguay (consolidated) 1,761 161 

Paraguay 1,105 142 

Other companies overseas 824 750 

Overseas (consolidated) 56,084 10,178 


Domestic Presence 

North Region 

68 

Northeast Region 

242 

Midwest Region 

282 

Branches 

South Region 

633 

Southeast Region 

2,499 


Channels 2008 2009 

Branches 3,906 3,724 

Banking Services Outlets 999 918 

ATMs 30,909 32,704 

(at December 31, 2009) 


Panorama 

Solid bases 

for growth 

Amidst the global financial crisis of 2009 we focused on integrating 

the operations of the banks that were merged at the end of 2008. 

This process included selecting the teams and establishing our operating 

model, market approach and product portfolio. By year-end we had 

accomplished the integration, with the exception of the branch network 

conversion process, which will be completed in 2010. 

At the same time we maintained our strategy 

of establishing solid partnerships with wellestablished 

companies that are recognized 

for their expertise in specific niches, in order 

to expand the scope of our products and 

services, such as our new agreement with 

Porto Seguro. Our market share among 

privately-controlled banks remained stable in 

most business areas. 

Customer satisfaction and sustainable 

performance are priorities for us, and 

represent the basis of all our investments in 

human capital, technology and processes. In 

2010 our strategic goals are to grow the Bank’s 

operations in Brazil, prepare the Organization 

and our employees to perform in a bank that 

also competes in the international market, 

support the growth of lending operations 

and increase gains of scale in all customer 

segments. We expect to be able to offer better 

quality services at more affordable prices as 

a result of our investments in technology, 

training and development of new risk 

management methodologies. 

This year Brazil’s economy should return to 

its pre-crisis growth levels. The outlook is 

for Brazil to grow around 6% for the year. 

This optimism is linked to credit, which has 

begun the year at a fast pace, spurred by 

competition between banks and the gradual 

reduction of the default rate, thanks to 

improvements in the Brazilian economy which 

began in the second half of 2009. Credit is 

expected to grow 15% to 20%, driven by 

retail operations and small and medium-sized 

companies, in addition to growth of 20% to 

25% in mortgage lending for the property 

development segment. 


In 2010 our priorities are to grow the Bank’s operations in Brazil, 

prepare the Organization and its employees to perform in a 

bank that also competes in the international market, support the 

growth of lending operations and increase gains of scale in all 

customer segments. 

Branch in Japan. 

Internationalization 

The long-term forecast is for interest rates to 

continue to drop in Brazil, despite an expected 

slight rise during the year to counter domestic 

supply and demand which has been stimulated 

by rising middle class incomes and the 

consequent higher propensity to consume. 

The Real, in turn, should remain strong, in line 

with other emerging currencies which are 

strengthening against the US dollar. 

These conditions should allow Brazilian banks 

to return to growth in lending, unlike what 

will occur in the United States and Europe, 

for example, whose economies will not start 

demonstrating any significant recovery before 

early 2011. It is estimated that the global 

economy should start growing again in 2010, 

and maintain a growth rate just below 4% over 

the next decade, due to stronger growth in 

emerging countries, whose participation in the 

global GDP should increase markedly. 

The severe financial crisis that erupted in 2008 

dramatically affected most of the developed 

world’s major financial institutions. As this 

process is still far from being fully resolved, 

it represents many opportunities for Itaú 

Unibanco, which ended 2009 as one of the 

world’s largest banks by market capitalization, 

with a solid capital base and high standards of 

corporate governance. 

At the height of the crisis, Latin American 

banks lost less market value than the major 

international institutions, making our position 

in the global market even more favourable. 

Latin American banks also performed better 

in profitability, leading the ranking of banks 

in the Americas. Furthermore, they were 

less exposed to the assets that triggered the 

international crisis, such as sub-prime mortgage 

securitizations and off balance sheet assets. 

Banking supervision in the region is also 

more comprehensive, closing loopholes for 

derivatives and securitization, and requiring 

more robust capital reserves. 

In the midst of the worldwide process of 

consolidating the banking system, which will 

continue for the next few years as a direct result 

of the crisis and the subsequent establishment 

of new regulations for the financial services 

industry, there are countless opportunities in 

Latin America and abroad for healthy banks 

like Itaú Unibanco. Our ambition is to move 

gradually, using our differentiated fundamentals 

to position ourselves as a global bank. This 

process will occur, but only after we have 

consolidated our operations in the domestic 

and regional markets. 

In addition to opportunities for mergers and 

acquisitions, there is a wide range of financial 

services and products to be offered by Brazilian 

banks to the international market. These 

include meeting the business needs of Brazilian 

companies that have become multinational, 

as well as meeting the demands of foreign 

investors, who are increasingly likely to bet 

on Brazil’s growth as the country consolidates 

its position as a global player through its 

companies and financial institutions. 


Sustainability 

Vision 

Commitment to 

lasting development 

The year 2009 marked the consolidation of 

our sustainability positioning. 

Shortly after the announcement of the merger between Itaú and 

Unibanco, we released two documents: the Essence of Sustainability, 

which outlines the eight priority themes for the Bank’s actions to ensure 

its long-term sustainability; and the Sustainability Policy, whose 

guidelines permeate our strategy, management and relationship 

with all stakeholders. 

The Executive Committee also approved our new Sustainability Governance, which institutionalized 

company-wide sustainability discussions and decisions among the heads of our many areas. 

We set out challenges that transcend our own operations, as they are predicated on a model of the 

awareness of society and the responsible use of financial products and services. Through these three 

defined structures, which have been widely disseminated to our employees, we are reaffirming our 

commitment to sustainable development, with a focus on dialogue and transparency. 

For Itaú Unibanco, sustainability means maintaining our business over the short, medium and 

long-term, to deliver continual value to our stakeholders. 

This understanding gains even more strength with the release of our new vision, which reinforces 

the importance of sustainable performance. 



The Bank’s Sustainability Governance Structure. 

• Sustainability Policy 

• Practical actions of the Sustainability Agenda 

• Sustainability Agenda priorities for 2010 

Reflecting pool at the Itaú Unibanco 

Business Centre in São Paulo. 


Sustainability Vision 

• Commitment to 

Sustainable Development 

Sustainability Governance 

Sustainability Monitoring Committee 

Board of Directors – Yearly meetings 

Executive Sustainability Committee 

Executive Committee – Half-yearly meetings 

Sustainability Committee 

Senior Managers and Directors – Meetings every two months 

Sustainability Commission 

Superintendents and Managers – Monthly meetings 

Monitoring 

Guidelines and Policies 

Strategic 

Operational 

Sustainability Policy 

The Bank’s Sustainability Policy was released 

in early 2009. The initiative is designed to 

inform all our strategic relationship groups 

of the guidelines that permeate our strategy 

and management, and promote innovations, 

reviews and adjustments of our operations, 

based on the concepts of sustainability. 

This document provides operating guidelines 

with respect to managing our businesses, 

products and services, staff members and 

relationships with suppliers, customers, society 

and the environment. 

To ensure our practices are consistent with the 

Sustainability Policy, in 2009 an internal audit 

was undertaken to examine the alignment 

of our management structure, processes and 

sustainability standards to the commitments 

required under the policy, taking into account 

the following: 

• process of approval, disclosure, updating 

and scope of the policy; 

• governance for sustainability; 

• management structure; 

• guideline implementation process; 

• commitments undertaken by the Bank; 

• communication; and 

• monitoring. 

The audit revealed that the Sustainability Policy 

guidelines are being applied in a consistent 

and satisfactory manner, albeit at various 

stages of implementation across our business 

areas. The audit also pointed to improvement 

opportunities for the policy, ranging from 

establishing the frequency of updates to 

defining of corporate processes, procedures 

and controls which are structured to identify 

and monitor management practices. 

Sustainability Governance 

The goal of Sustainability Governance is to 

ensure we meet our list of commitments, which 

allows us to undertake initiatives, promote 

the improvement of practices and align the 

decision making process. The Sustainability 

Governance structure is composed of about 

70 executives, from members of the Board of 

Directors to managers and coordinators, and is 

split into four levels 

1. Sustainability Monitoring Committee 

Comprised of members of the Board of 

Directors, this committee is responsible for 

monitoring the following: adoption of the 

Sustainability Policy and its related practices; 

checking its compliance with our values and 

principles; monitoring the progress of our 

ongoing strategy of integrating sustainability 

into our culture and business management; 

plus observing standards, trends and national 

and international benchmarks. The Committee, 

which meets once a year, can also propose, 

whenever it deems necessary, new approaches 

to the issues that constitute the sustainability 

agenda and which can help the Bank with the 

strategic handling of these issues. 


Itaú Unibanco is one of 20 model companies in 

Exame magazine’s 2009 Sustainability Guide. 

Main decisions 

of Sustainability 

Governance in 2009: 

2. Executive Sustainability Committee 

Every six months members of the Executive 

Committee that make up the Executive 

Sustainability Committee meet to define the 

guidelines and strategic orientation of the 

Sustainability Policy, review its integration into 

our business practices and culture, and assess 

the annual planning proposed by the 

Sustainability Committee. These meetings bring 

the additional benefit of allowing our teams to 

clearly see senior management’s commitment 

to the effective application of the policy. 

3. Sustainability Committee 

The chief function of this committee, which is 

composed of directors, is to define our action 

strategies in keeping with the policies and 

guidelines established by the Executive 

Committee. It is also responsible for: monitoring 

action plans, indicators and targets; supporting 

areas on issues related to integrating 

sustainability into their activities, products 

and services; contributing to stakeholder 

engagement for each theme; reinforcing the 

involvement of leadership; and reporting to 

the Executive Committee and the Board of 

Directors on integrating sustainability into the 

Organization’s daily business activities. Until 2009 

the Committee met quarterly, while in 2010 it will 

meet once every two months. 

4. Sustainability Commission 

The Sustainability Commission is made up 

of superintendents and managers, and is 

responsible for: promoting the progress of 

our sustainability agenda; analyzing risks 

and opportunities in relation to the market; 

proposing projects, solutions and new 

approaches (based on market practices and 

trends); implementing action plans defined 

in the sustainability strategy; spreading 

the culture of sustainability throughout 

our operating areas, primarily in customer 

relations; and reporing to the Sustainability 

Committee on the progress of action 

plans for integrating sustainability into the 

Organization’s management and business. 

The Commission previously met every two 

months, but in 2010 it will meet monthly. 

The Bank also relies on multidisciplinary 

work groups which are set up in response 

to identified needs and which help further 

specific issues and/or develop projects in 

conjunction with a variety of areas. The 

work groups are made up of members of 

Sustainability Governance and employees 

– called “Sustainability Leaders” – who are 

knowledgeable about the sustainability themes. 

Approval of the Sustainability and Sustainability 

Governance policies. 

Approval of the institutional use of the FSC paper. The 

first steps were the certification of one of our in-house 

printers and accreditation of external printers already 

certified by the FSC. In 2010 this type of paper will be 

widely adopted by the Organization. 

Presentation and approval of the Sustainability Project 

for middle market companies. This initiative is designed 

to make the segment a sustainability standard through 

training, folders and actions that maximize business 

opportunities and minimize risks. The pilot project began 

in Campinas (SP) at the end of 2009. 

Using the Essence of Sustainability, two major themes 

were chosen as a target for specific actions: financial 

education and climate change. The former is related to 

Conscientious Use of Money initiatives, and is seen as a 

high priority. In 2010, in addition to continuing measures 

targeted at the general public, actions are planned for 

employees that work in this area. 

To discuss climate change, a working group was set up to 

develop a proposal for the Bank’s positioning on this issue. 

The short list of ideas was selected for the Sustainable 

Ideas Bank (SIB), for implementation in 2010. 

The Socio-environmental Property Loans Credit Policy 

(Financing Plan) and the socio-environmental risk 

assessment macro flow were presented and approved. 

The financial status and architecture of the socioenvironmental 

fund portfolios were presented. 

Meetings for the Sustainability Committee were 

set at once every two months, and monthly for the 

Sustainability Commission, due to increased demand for 

definitions and projects linked to environmental issues. 


Sustainability Vision 

• Commitment to 

Sustainable Development 

The Essence of Sustainability 

In late 2008 we held the first review of the key 

challenges for our sustainable performance and 

released the document entitled the Essence of 

Sustainability. The text covers the views of staff 

and specialists, as well as best global practices 

in the financial sector. Like any policy it is a 

“living” document, open to adjustments and 

reviews so that it is continually aligned with the 

demands of society. 

The stakeholder consultation process continued 

in December 2009, when two panels were 

held. The first was for employees, while the 

second featured a group of market experts and 

analysts. Both panels however, shared the same 

goal: evaluate the relevance to the Organization 

of the eight challenges listed in the Essence of 

Sustainability. The meetings also helped 

broaden these groups’ knowledge of our 

concepts and sustainability practices. 

Following are the eight challenges that make up 

our Essence of Sustainability document and which 

impact directly on sustainable performance. 

Their respective symbols also appear throughout 

the Report, indicating how the Organization is 

responding to these sustainability challenges. 

1. Transparency and Governance 

The culture of transparency in the corporate 

world leads to improved quality in stakeholder 

relations, which results in greater trust. Good 

corporate governance ensures increased 

desire to provide transparent information 

internally and externally, which is the first step 

on the road to sustainability. 

2. Customer Satisfaction 

Customer satisfaction indicates how sensitive 

we are to the needs of our most important 

strategic relationship group. Respecting 

and satisfying our customers are the means 

to making this relationship long lasting to 

ensure business continuity. Accordingly, we 

must also offer products and services that 

meet their real needs. This issue has gained 

ground with the Bank’s new vision - “Be the 

leading bank in sustainable performance and 

customer satisfaction” – and is also one of the 

commitments taken on in the Sustainability 

Policy: “Maintaining our business over the 

short, medium and long-term, to deliver 

continual value to our stakeholders”. 

3. Socio-environmental Criteria 

By adopting socio-environmental criteria in 

our policies and management, we are 

committing to promote sustainable 

development. Socio-environmental criteria 

should be applied in all our business activities, 

from financing to investment and throughout 

the entire supply chain. 

4. Diversity 

Promoting diversity means building quality 

relationships with people of different 

backgrounds, races, cultures and opinions, 

without discrimination but understanding their 

differences and promoting inclusion. We must 

encourage respect for diversity among our 

employees and other stakeholders. 

5. Climate Change 

Climate change is one of the great challenges 

that society and our planet will continue to 

face in the quest for sustainable development. 

Everyone should consider themselves agents as 

we seek to understand the phenomena and find 

viable solutions to the impact caused by human 

activity on the climate. Itaú Unibanco believes 

that it has much to contribute as a financial 

institution committed to promoting sustainable 

development for people and businesses. 


Engagement Strategy: 

Stakeholder Panels. 

Challenges for 

2010 

Improve internal and external disclosure of the Essence of Sustainability, based 

on the results of the Stakeholder Panels held in 2009. 

Review the Sustainability Policy. 

Develop positioning and operating strategy in response to climate change. 

Reinforce the stakeholder engagement strategy, consistent with the guidelines 

of the AA1000 standard. 

6. Financial Education 

Financial education is a factor capable of 

promoting economic development and social 

inclusion. The commitment to developing 

tools that allow people to better manage their 

finances can contribute to mitigating one of 

the major challenges faced by Brazilian society: 

social inequality. 

7. Microfinance 

Thinking of ways to reduce poverty is essential 

for sustainable development to be effectively 

achieved. Microfinance comprises an efficient 

tool for the economic and social inclusion of 

the disadvantaged. 

8. Stakeholder Engagement 

Increasing opportunities for dialogue and 

interaction with strategic relationship groups is 

essential for any organization concerned with 

having a socially responsible activity. We must 

understand the needs of different groups to 

respond with the appropriate products, services 

and mutual understanding in relationships. 

Awards and Recognition in 2009 

Awards and recognition represent a way for the general public to view our contribution to society. 

We have been included in the Dow Jones Sustainability Index - DJSI World every year since this 

index began in 1999, and likewise for the BM & FBovespa Corporate Sustainability Index (ISE), which 

began in 2005. In 2009 the Bank received other forms of recognition related to sustainability: 

• chosen as the Sustainable Bank of the Year in Emerging Markets for the FT Sustainable Banking 

Awards by the British newspaper Financial Times; 

• included as one of the 20 model companies in the Exame magazine Sustainability Guide; 

• named the Most Sustainable and Ethical Bank in Latin America by Latin Finance magazine and 

consultants Management & Excellence; 

• named by IstoÉ Dinheiro magazine as one of the “50 Companies on the Side of Good”; 

• recognized as one of the leading private institutions in the Americas in the fight against poverty 

by the Corporate Citizen of the Americas Award, presented by the Organization of American 

States (OAS) for the “Portuguese Language Olympics - Writing the Future”; developed by Fundação 

Itaú Social; and 

• included in the “Top 50 Companies in Sustainability” by Imprensa magazine. 

LEARN MORE: 

To see the full version of our Sustainability Policy, visit: 

ww2.itau.com.br/environmental/pdf/politica_sustentabilidade_ItauUnibanco.pdf 

To learn more about the Essence of Sustainability, visit: 

www.itauunibanco.com.br/relatoriodesustentabilidade/en/pdf/essencia.pdf 

To learn more about the commitments and representations we have undertaken, visit the online 

version of this Report at www.itauunibanco.com.br/relatoriodesustentabilidade 


Corporate 

Governance 

• Governance Structures 

• Transparency in Reporting 

• Socio-environmental Risk 

• Crisis Management 

• Ethics Management 

Stronger Structures 

In June 2009 the Board of Directors approved our 

new corporate governance structure 

Our new corporate governance structure has been strengthened by combining the best 

practices of both banks, which is the same guideline used in the integration of processes 

and business. Corporate Governance now operates under five committees: Audit, People, 

Appointment and Corporate Governance, Risk and Capital Management, and Strategy. 

With this stronger governance structure we seek to build a management model which is increasingly 

committed to sustainability at all decision-making levels (read more about our sustainable practices in the 

Sustainability Vision section of this Report). 

SHAREHOLDING STRUCTURE 

Banco Itaú 

Chile S.A. 


Uruguai S.A. 

Moreira Salles 

Family 

Egydio Souza Aranha 

Family 

Banco 

Itaucard S.A. 

50% ON 

66.53% Total 

IUPAR 

Itaú Unibanco 

Participações S.A. 

51% ON 

25.79% Total 


Holding S.A. 


S.A. 

Free Float (*) 

100% Total 60.97% ON 

39.03% ON 

17.87% PN 

82.13% PN 

Companhia E. Johnston 34.43% Total 

65.57% Total 

Itaúsa 

de Participações 

50% ON 

33.47% Total 

36.20% ON 

18.31% Total 

Bank of America Free Float (*) 

Itaú Corretora de 

Valores S.A. 

2.47% ON 

8.42% PN 

5.41% Total 

10.34% ON 

91.58% PN 

50.50% Total 

99.99% Total 100% Total 99.99% Total 100% Total 

99.99% Total 99.99% Total 30% Total 


BBA S.A. 

Porto Seguro 

S.A. 

99.99% Total 


Europa S.A. 

99.99% Total 


Argentina S.A. 

99.99% Total 

Hipercard Banco 

Múltiplo S.A. 

99.99% Total 

Orbitall Serv. 

Proc. de Inf. 

Comerciais S.A. 

50% Total 

Redecard S.A. 

99.99% Total 100% Total 100% Total 

Cia. Itaú 

Capitalização 

Itaú Seguros S.A. 

Itaú Vida e 

Previdência S.A. 

* 

Shares issued and outstanding. 

Note: Direct and indirect subsidiaries. 



The Organization’s new governance structure. 

• The composition of the Board of Directors and Management Committees 

• Risk Management and Disclosure Policy 

• Socio-environmental Risk Policy for Commercial Credit 

• New Code of Corporate Ethics 

Passageway at the Itaú Unibanco 

Business Centre in São Paulo. 


Corporate Governance 






The association between Itaú and Unibanco 

involved an unprecedented shareholding 

reorganization, with the migration of the 

shareholders of Unibanco Holdings S.A. and 

Unibanco-União de Bancos Brasileiros S.A., 

through a share exchange, to Itaú Unibanco 

S.A., formerly known as Banco Itaú Holding 

Financeira S.A. The new Organization is 

controlled equally through Unibanco 

Holdings S.A. Itaú (Iupar), Investimentos Itaú 

S.A. (Itaúsa) and Companhia E. Johnston de 

Participações S.A. 

We are always focused on creating value for 

all our stakeholders through the adoption 

of best corporate governance practices, 

which is an ongoing and long-term process 

geared to the sustainable growth of the 

Organization. In this context transparency, 

ethics and environmental responsibility are of 

the utmost importance and must encompass 

all stakeholders. Clear evidence of this 

commitment is the presence of independent 

members on the Board of Directors and other 

councils and committees, and our compliance 

with the São Paulo Stock Exchange (Bovespa) 

Level 1 corporate governance and Sarbanes- 

Oxley Act + , both of which require adopting 

a number of internal control and risk 

management procedures. 

We hold public meetings in cities around 

Brazil, the United States and Europe so that 

investors, analysts, shareholders and other 

strategic relationship groups can interact with 

our senior management and discuss strategies 

for making investment decisions. In these 

meetings we detail our value creation strategy 

as well as the outlook for our operations, while 

investors have the opportunity to express 

their views, criticize and make suggestions to 

us on topics they would like to see discussed 

by the Executive, the Board of Directors or at 

Shareholder Meetings. 

The www.itau-unibanco.com.br/ri website 

and the direct contact e-mail for our Investor 

Relations (relacoes.investidores@itauunibanco.com.br) 

area are other effective 

communication channels available to 

shareholders and investors. 

The committees report to the Board of 

Directors, which in turn elects and/or 

appoints their members to help create 

a common and systematic treatment 

of matters of strategic importance or 

regarding control of the Bank. The Board 

and Committees act as collaborative groups 

and seek to obtain consensus through 

the dialogue and systemic vision that 

characterize our management. 

Following are selected corporate governance 

achievements in 2009, which are the result of 

the continual review and improvement process 

in our management model: 

• changes to the Articles of Incorporation; 

• new operating rules for the Board of Directors; 

• new regulations for the Audit Committee; 

• Corporate Governance Policy; 

• Material Information Disclosure Policy; 

• Trading Policy; 

• Operational Risk Management Policy; 

• Stock Option Plans; and 

• Itaú Unibanco Holding S.A. Principles 

of Conduct. 

Board of Directors 

A collaborative group comprised of 13 members, 

the Board of Directors is responsible for defining 

our strategy and those of our subsidiaries, 

analyzing issues of relevance and effectively 

overseeing our management on behalf of the 

Bank’s shareholders. It also determines the 

general direction of the institution’s business, 

elects and removes executive directors and 

establishes their responsibilities, oversees the 

performance of line directors and convenes 

Shareholder Meetings. 

+ Sarbanes-Oxley – An American law, enacted in 2002, which establishes rules for the standardization and improvement of the financial controls of 

publicly-traded companies which are listed in the United States. 


13 members 

constitute the Board of Directors, which defines the strategy 

of the group and its subsidiaries, and oversees management 

on behalf of shareholders. 

ADMINISTRATION OF ITAÚ UNIBANCO HOLDING S.A. 

Fiscal Council 


Audit 

Committee 

People 

Committee 

Appointment 

and Corporate 

Governance 

Committee 

Risk and Capital 

Management 

Committee 

Strategy 

Committee 

International 

Advisory 

Board 

Internal 

Audit 

Independent 

Audit 

Executive Board 

Disclosure 

and Trading 

Committee 



The Board of Directors has independent members, 

whose responsibilities include safeguarding the interests 

of the Organization and its minority shareholders, in 

addition to managing conflict of interest risks. 

Members of the Bank’s 

Board of Directors. 

The Board is also the body of record for 

disclosing company financial statements. It 

selects and removes independent auditors 

and decides on the payment of interim 

dividends and payment of interest on 

capital. It also decides on share repurchases 

and the buying and/or granting of call 

and put options. It approves the rules put 

forward by the Audit Committee for its 

own operation, and monitors its activities 

through regular reports. 

The Board also guides the implementation of 

the Organization’s financial, environmental 

and social policies, as well its socioenvironmental 

responsibility practices. 

To manage these activities we have four 

internal governance groups which feature 

representatives of our many different areas: 

the Sustainability Monitoring Committee 

(which meets annually with the Board of 

Directors); the Executive Sustainability 

Committee (half-yearly meetings of the 

Executive Committee); the Sustainability 

Committee (executive meetings every two 

months); and the Sustainability Commission 

(monthly meetings of supervisors and 

managers). Our collaborative bodies (Board 

of Directors, committees and commissions) 

also discuss ethics related-issues through 

the Senior Ethics Commission, the Audit 

Committee, the Disclosure and Trading 

Committee and the Commission to Prevent 

and Combat Illegal Acts. 

The Board of Directors currently has three 

independent members. The independence 

of these members is designed primarily 

to protect the interests of the business 

and our minority shareholders by 

allowing the discussion of ideas which 

may differ from those of the directors 

representing the control block. The 

existence of independent advisers, free of 

any business ties to the Organization, also 

helps manage risk in relation to conflicts 

of interests that might impair a board 

member’s ability and neutrality when 

analyzing issues before the Board. 

Only three members of the Executive Board 

sit on the Board of Directors (Roberto 

Setubal, President and Chief Executive 

Officer, Alfredo Egydio Setubal, Vice- 

Chairman and Director of Investor Relations, 

and Ricardo Villela Marino, Executive Director 

of People and External Units), which allows 

the Board to have greater involvement and 

access to information on management, 

without compromising their impartiality. 


Chairman 

Pedro Moreira Salles 

Vice-Chairmen 

Alfredo Egydio Arruda Villela Filho 


(also President and CEO) 

Directors 

Alcides Lopes Tápias 

Alfredo Egydio Setubal 

(also Director of Investor Relations) 

Candido Botelho Bracher 

Fernando Roberto Moreira Salles 

Francisco Eduardo de Almeida Pinto 

Gustavo Jorge Laboissiere Loyola 

Henri Penchas 

Israel Vainboim 

Pedro Luiz Bodin de Moraes 

Ricardo Villela Marino 







Executive Committees 

Itaú Unibanco Holding S.A. Executive Committee 

There are two executive committees 

responsible for managing and 

representing the Bank: the Executive 

Committee, which is responsible for all 

group operations except those of the 

wholesale bank, which are under the 

responsibility of the Itaú BBA Executive 

Committee. Both committees report 

directly to the Board of Directors. 

Disclosure and 

Trading Committee 


Alfredo Egydio Setubal 

Antonio Carlos Barbosa de Oliveira 

Geraldo Carbone 

José Castro Araújo Rudge 

Márcio Schettini 

Marco Bonomi 

Ruy Moraes Abreu 

Sérgio Werlang 

Marcos Lisboa 

Ricardo Villela Marino 

Chairman 

Wealth Management & Services 

Technology, Legal and Compliance 

Consumer Bank 

Insurance, Corporate Pensions, Annuities, 

Institutional Relations and Marketing 

Consumer Credit 

Itaucred - Vehicles, Mortgages and Consórcios 

Corporate 

Risk and Finance 

Operational Risk and Efficiency 

People and External Units 

The main purpose of the Disclosure and 

Trading Committee is to manage the 

Disclosure and Trading Policy. Its scope of 

activities covers a range of internal actions 

designed to improve information flows and 

oversee the ethical conduct of management 

and staff who are parties to the Disclosure 

of Material Information and Trading 

policies to preserve the transparency, 

quality, fairness and security of information 

provided to shareholders, investors, the 

media, government authorities and other 

groups involved in the capital markets. 



Five committees 

and an Advisory Board comprise the governance 

structure of Itaú, which has been strengthened by 

combining the best practices from both banks. 

Members of the Itaú BBA S.A. 

Executive Committee. 

Itaú BBA S.A. Executive Committee 

Candido Botelho Bracher 

Chairman 

Alberto Fernandes 

Sales and Products 

Antonio Carlos Barbosa de Oliveira 

IT, Legal, Compliance and Operations 

Daniel Gleizer 

Institutional Treasury 

Jean Marc Etlin 

Investment Bank 

Rodolfo Fischer 


Audit Committee 

There is a single Audit Committee for all our 

companies and it is responsible for ensuring 

the quality and integrity of financial statements, 

compliance with legal and regulatory 

requirements and the quality and effectiveness 

of internal control and risk management 

systems. The Audit Committee is also 

responsible for the performance, independence 

and quality of the work of external auditors, as 

well as the performance, independence and 

quality of internal auditing. 

People Committee 

The People Committee is responsible for guiding 

the development and retention of talents. For 

this reason, among other responsibilities, it 

must develop pay models for top executives 

and evaluate and approve compensation 

packages for directors, as proposed by the CEO. 

Additionally, the People Committee establishes 

guidelines for recruitment, appraisal and 

career planning to ensure the development of 

successors for all key positions. 

Appointment and 

Corporate Governance Committee 

The Appointment and Corporate Governance 

Committee’s main objective is to monitor the 

governance of the Organization, particularly 

with respect to matters related to the Board 

of Directors. It also is responsible for helping 

the Chairman of the Board decide on board 

membership. Its most important functions 

include: identifing, analyzing and proposing 

candidates for the Board to submit at 

Shareholders Meetings; review the definition 

criteria for independent directors; evaluate 

the work of the Board; and discuss and make 

recommendations on the succession of the 

Chairman of the Board and other directors, 

plus the Chief Executive Officer. Based on 

criteria established by the Board of Directors, 

the Committee also analyzes and comments 

on situations of potential conflict of interest 

between directors and companies within 

the Organization. 







Risk and Capital 

Management Committee 

The Risk and Capital Management Committee, 

which is comprised of members who are 

elected annually by the Board of Directors, 

was established in 2008. The Committee’s 

responsibilities include monitoring and 

reviewing policies and helping define our 

general approach toward market, financial, 

credit, liquidity, legal, image and operational 

risks, among others. 

Strategy Committee 

The main function of the Strategy Committee is 

to discuss issues that may have a major impact 

on our business. The Committee’s tasks are all 

designed to support the Board of Directors in 

its discussions with the Itaú Unibanco Executive 

on strategic guidelines for business matters. The 

Committee’s responsibilities include identifying 

investment opportunities and setting budget 

guidelines to support and advise the CEO in 

monitoring corporate strategy. The Strategy 

Committee is supported by the Economic 

Scenarios Subcommittee, which is comprised of 

Organization executives with relevant expertise. 

It provides the Board with macroeconomic data 

to support its discussions on defining strategies, 

investments and budgets. 

International Advisory Board 

Stakeholder communications took a 

step forward through the creation of the 

International Advisory Board, which is an 

important internal governance body and a 

strategic initiative in the context of today’s 

economy, in which Brazil is consolidating 

itself as a global player. 

Chaired by Brazil’s former Minister of the 

Economy, Pedro Malan, the Board’s goal is to 

help increase our presence in the international 

financial community while we continue to 

strengthen our position as the country’s 

biggest and best privately-controlled bank. 

The Board’s other members feature important 

business leaders and academics from a number 

of countries, all of whom are renowned for 

their experience in the financial world. These 

individuals are: Andre Lara Rezende, Carlos 

Ghosn, Jacob Frenkel, Marcel Telles, Pedro Aspe, 

Raghuram Rajan and Woods Staton, in addition 

to Roberto Setubal and Pedro Moreira Salles. 








Transparent Reporting 

The progress of the integration process has 

made management and reporting even 

greater priorities for Itaú Unibanco. As a listed 

company and one of the major players in the 

global financial market, our shares are traded 

on three bourses: the São Paulo Stock Exchange 

(BM & FBovespa), where we maintain a Level 1 

governance standing, the Buenos Aires Stock 

Exchange (BCBA) and the New York Stock 

Exchange (NYSE). 

Given the growth of our operations, the 

distribution of our shares in the capital 

markets and diversification of our strategic 

relationship groups, we have adopted 

monitoring instruments and reporting systems 

consistent with internationally recognized 

commitments such as the Global Compact, the 

Equator Principles, the guidelines of the Global 

Reporting Initiative (GRI) and the AA1000 and 

SA8000 standards. 

Our business practices are based on financial 

sector codes of ethics and trends in the 

economy. They seek to track, if not define, best 

practices of the national and international 

markets, such as those which underline the 

performance of companies on industry metrics 

like the Dow Jones Sustainability Index and 

the São Paulo Stock Exchange (ISE-BM&F 

Bovespa) Corporate Sustainability Index. 

Our disclosure policy includes the 

publication of quarterly results and 

newsletters, in addition to conferences, 

Roadshows + and periodic meetings with 

analysts. Due to the international financial 

crisis that erupted in late 2008 - over the 

course of which Brazil came through 

relatively unscathed - the number of 

meetings held in Europe, Asia and Latin 

America has been increasing. 

In Brazil, the Investor Relations 

(IR) area – whose objectives include the 

clear and transparent dissemination of 

public information on which to base an 

investment in Itaú Unibanco shares - held 

a record number of 22 public meetings in 

2009, which shows the level of interest of 

foreign and local investors in the country. 

These meetings represent one of the most 

important communication channels with 

the market, and are greatly appreciated 

by investors, analysts and shareholders, as 

they provide the opportunity to discuss 

with senior management the strategies and 

results obtained by the Bank. 


Two of the ten executive areas of the new governance 

structure – Operational Risk and Efficiency, and Risk and 

Finance – combine our risk management practices into 

a unified business vision. 

Risk Management 

The economic crisis has transformed 

risk management into a top priority for 

many companies and governments. For 

Itaú Unibanco it represents one of the 

pillars of the Governance Policy, which 

we consolidated in 2009. The main risks 

that affect the financial system are: 

market, credit, liquidity, operational and 

underwriting. 

With the new committee structure established 

under the scope of the Board of Directors we 

have set up a Risk and Capital Management 

Committee comprised of Pedro Luiz Bodin 

de Moraes, Roberto Setubal, Candido Botelho 

Bracher, Francisco Eduardo de Almeida Pinto 

and Gustavo Loyola. 

In the first half of 2009 we unified our ideas 

and procedures. The risk management 

structure was also reviewed to differentiate 

business activities from management and 

control, ensuring independence between 

these areas and balance in decision-making 

with respect to risks incurred and compliance 

with regulatory requirements. 

The risk management structure of the Risk 

and Finance area supports our operations. 

The risk of default of each operation, the 

necessary guarantees, the spread to be 

charged, and the cost of capital by allocating 

resources to meet the standards of internal 

models and the rules of the of Basel II 

Capital Accord are measured to price each 

transaction fairly for customers and securely 

for shareholders. 

In the Organization, risk management 

consists of the process by which the 

existing and potential risks of a transaction 

are identified; consistent risk limits are 

established in line with all our business 

strategies; policies, procedures and 

methodologies are approved in keeping 

with previously established risk limits; our 

portfolio risk is managed vis-à-vis the best 

risk-return ratios; and capital is allocated in a 

manner commensurate with the risks. 

Main Risk Categories 

Market Risk 

Market risk is the risk that market values 

of positions held by the Bank, as well as 

their financial margins, will be affected 

due to exchange rate and interest rate 

fluctuations, and the prices of stocks and 

commodities. Given the dynamics of the 

economy, market fluctuations cannot be 

measured accurately. We have to monitor 

them and manage our operations to 

reduce any eventual negative impact 

on financial results and maximize 

opportunities for monetary gains. 

Our market risk management strategy 

balances the Bank’s business goals with its 

appetite for risk, taking into account the 

political, economic and market conditions, 

our market risk portfolio and expertise at 

operating in specific markets. 

Market risk control is performed by the 

Market Risk and Liquidity Executive, 

which conducts daily measurement, 

evaluation and reporting activities 

through its control units. 

Credit Risk 

Credit risk is the probability that a 

borrower may not have sufficient funds 

to meet the commitments of their debt. 

Accordingly, we monitor the possibility 

of losses associated with non-payment 

of financial obligations, the devaluation 

of a loan stemming from deterioration 

in the borrower’s risk classification, the 

reduction of earnings or remuneration, 

the benefits granted in renegotiation 

and the cost of loan recovery. 

At Itaú Unibanco, governance of credit 

risk management is through committees 

and commissions which evaluate the 

market’s competitiveness conditions, 

establish our appetite for risk and review 

control practices and policies. Credit risk 

is controlled by means of set limits and 

levels of decision-making authority. 

We plan to increase our assets while 

evaluating the risk-return ratio and 

paying close attention to the quality of 

the credit portfolio and generation of 

shareholder value. The evolution of the 

quantitative management and statistical 

modeling tools for active credit 

portfolio management has allowed us 

to identify expected losses that reflect 

the statistical average, as well as the 

unexpected losses, also known as 

Value at Risk – VaR) + . 

+ Roadshows – A travelling presentation of business opportunities to institutional investors which specialize in globalized business. 

VaR – Value at risk. A company’s total risk exposure, or the maximum potential expected loss of an investment portfolio, with a given 

probability and time horizon. 



With the significant diversification of risks by 

our business units, the Organization maintains 

a reduced overall exposure to market risk, when 

compared with its capital. 

Liquidity Risk 

Liquidity risk is designed to detect imbalances 

between negotiable assets and payable 

liabilities, or when there is a mismatch 

between payments and receipts that might 

affect our payment capability, considering the 

different currencies and settlement terms for 

rights and obligations. 

Liquidity risk management uses best 

practices to avoid cash shortages and 

difficulties in honouring payments due. 

We have established guidelines and limits, 

and compliance is regularly reviewed by 

technical committees designed to ensure 

an additional safety margin beyond the 

minimum projected security needs. Liquidity 

management policies and their associated 

limits are established based on periodically 

reviewed prospective scenarios, and on the 

limits set by the Senior Institutional Treasury 

Liquidity Commission. 

Operational Risk 

Operational risk is the risk of loss resulting 

from inadequate or failed internal processes, 

people and systems, or from external 

events. This category also includes legal risks 

associated with inadequate or incomplete 

contracts, as well as penalties incurred due 

to non-compliance with legal provisions and 

compensation for damages to third parties 

arising from our activities. 

During the Itaú Unibanco merger process, 

for example, operational risks are carefully 

monitored once they become part of the 

migration of branches and systems. 

Under our integrated operational risk 

management policy, approved by the Board 

of Directors, we have adopted all Central Bank 

requirements with respect to operational risk 

management, pursuant to CMN Resolution 

3380 of June 2006, which is based on the 

principles and good practices of Basel II. 

The operational risk management governance 

structure is made up of the Board of 

Directors, the Audit Committee, Internal 

Audit, the President’s Office plus Executive 

Officers and Related Technical Risk areas. This 

structure is responsible for the operational 

risk management process, which includes 

four phases: identification, evaluation, 

management and monitoring. 

We employ management models for financial 

evaluation by business line, quantifying 

operational risks incurred by using statistical 

models that allow provisioning of reserves 

for expected losses and allocation of capital 

for unexpected losses. This gives us a more 

refined pricing process for products and 

services offered to the market, and follows the 

criteria of the Basel II Capital Accord, within 

the timeframes set by the regulator. 

Underwriting Risk 

Underwriting risk is applicable to insurance 

companies and is associated with the 

probability of decision errors in determining 

the price and/or calculation of technical 

reserves for insurance products, as well as in 

monitoring the decisions made. Similar to 

Basel II + , the International Association of 

Insurance Supervisors (IAIS) guides insurance 

companies on employing risk management 

systems which supplement their minimum 

capital and solvency margin systems. 

Our team specializes in underwriting risk 

analysis and control for insurance products, 

and builds mathematical models that 

capture such risks in the proper allocation of 

managerial capital. 

Market Risk Indicators 

The following Value at Risk table consolidates 

Itaú Unibanco’s total VaR, covering the 

portfolios of: Itaú BBA, Banco Itaú Europa, 

Banco Itaú Argentina, Banco Itaú Chile and 

Banco Itaú Uruguay. The portfolios of Itaú 

Unibanco S.A. and Itaú BBA are grouped 

together, separated by risk factor. 

+ Basel II Capital Accord – Replaces the Basel I agreement which was signed in the Swiss city of Basel in 1988. The new accord was ratified by more 

than 100 countries and seeks to establish minimum capital requirements to be held by commercial banks as a precaution against credit risk. Basel II 

is built on three pillars: Capital (save); Supervision, (inspect) and Transparency and Market Discipline (disclose), in addition to 25 basic accounting and 

supervision principles. 







We maintained our policy of operating 

within reduced thresholds in relation 

to our capital. Values at risk in the 

consolidated table were influenced, as in 

the other business units that comprise 

it, by lower levels of volatility of the 

principal internal and external risk factors 

during the fourth quarter of 2009, as well 

as a conservative portfolio management 

approach. 

The table shows a significant 

diversification of risks in the business units, 

enabling the Organization to maintain 

a very low total exposure to market risk, 

compared with its capital. 

VaR Itaú Unibanco Holding S.A. (in R$ millions) 

VaR by risk factor 31/Dec/09 * 31/Dec/08 

Fixed Rate 69.1 159.3 

TR Interest 11.7 13.8 

Inflation Rates 16.2 4.6 

Coupon Rate 11.3 16.6 

Exchange Rate Variation – US$ 13.7 17.2 

Private Issues and 

Sovereign Abroad 

2.2 22.2 

Equities 7.4 15.5 

External Rates 1.8 7.8 

Commodities 3.1 0.0 

Forex – Other Currencies 3.7 1.0 

Others 3.8 8.6 

Unibanco - 161.6 

Banco Itaú Europa 1.7 5.9 

Banco Itaú Argentina 1.4 5.1 

Banco Itaú Chile 0.8 1.1 

Banco Itaú Uruguai 0.3 2.8 

Effect of Diversification (61.1) (97.9) 

VaR Global Total 87.2 345.3 

Maximum VaR 60.9 814.6 

Average VaR 160.8 263.0 

Minimum VaR 241.6 126.6 

Itaú Unibanco + Itaú BBA 

* Includes the Flow Book portfolio. 








Projects evaluated and financed by Itaú BBA 

Other projects approved 1 by Itaú BBA 

using Equator Principles criteria - 2009 1 using Equator Principles criteria – 2009 

Sectors 

Projects 

Investments 

Itaú BBA’s 

(in R$ millions) 

share 

Sectors Projects 

Investments 



Energy 4 23,970.42 949.79 

Services 1 1,810.38 660.40 

Total 5 25,780.80 1,610.20 

Sectors 

Projects 

Investments 



share 


A 3 25,529.40 1,470.41 

B 2 251.40 139.79 

Total 5 25,780.80 1,610.20 

1. Projects in this table were financed during 2009, and were approved by the governance structure in 2009 

or in previous years. 


share 


Energy 2 1,993.55 722.00 

Services 1 214.00 30.00 

Total 3 2,207.55 752.00 

Sectors 

Projects 

Investments 



share 


A 1 1,386.00 323.00 

B 1 214.00 30.00 

C 1 607.55 399.00 

Total 3 2,207.55 752.00 

1. Projects in this table were approved by the governance structure in 2009, but by year-end still had not been 

financed, and therefore were not included in the previous table. 

Socio-environmental Risk 

The Equator Principles cover, among 

other issues, the following: 

• protection of human rights and 

community health, safety and security; 

• protection of cultural property and 

heritage; 

• land acquisition and involuntary 

resettlement; 

• impacts on indigenous peoples, and their 

unique cultures, systems and values; 

• pollution prevention and waste 

minimization, pollution controls and solid 

and chemical waste management; 

• sustainable management of natural 

resources and biodiversity; and 

• employment conditions. 

We are committed to improving our 

environmental risk management through 

in-depth studies of our credit operations. 

Accordingly, we seek to establish longer 

lasting relationships with customers and 

other stakeholders in order to consolidate 

a new stance in the financial market, 

one which promotes and is capable of 

multiplying good socio-environmental 

practices. 

Equator Principles 

We are in the leadership position for the 

Equator Principles worldwide. We were 

appointed to chair its Steering Committee 

on September 23, 2008, becoming the 

first financial institution from an emerging 

economy to take on this post, where we will 

remain until March 15, 2010. We were the 

unanimous choice of the member banks 

of the Committee, due to the commitment 

we have displayed in applying the Equator 

Principles criteria to project analysis, as well as 

the conduct of our Socio-environmental Risk 

Policy for Corporate Credit, which is based on 

voluntary compliance with global initiatives 

and accepted environmental standards, 

policies, guidelines and procedures. 

Being at the forefront of this challenge 

allows us to consolidate and disseminate 

our experience in socio-environmental risk 

management policies. In October 2009, for 

example, in partnership with the International 

Finance Corporation (IFC) - the World Bank 

arm for financing private investments - 

and other bank members of the Steering 

Committee of the Equator Principles, we 

led the discussions in London as part of the 

consultation and review process of the IFC’s 

Performance Standard. 

Financial institutions that decide to 

voluntarily join the Equator Principles commit 

to set and use socio-environmental criteria 

when granting loans for projects whose 

total value equals or exceeds US$10 million 

(Project Finance operations, as defined in 

Basel II), in addition to criteria established for 

Performance Standards by the IFC and the 

Health, Safety and Environment Guidelines 

defined by the World Bank, which are 

recognized worldwide. 


Itaú Unibanco has been in the leadership position in 

the Equator Principles worldwide since 2008, and our 

appointment has been extended until March 2010. 

In Essence 

Socio-environmental criteria 

Assessing socio-environmental 

criteria is fundamental in integrating 

sustainability with business. 

We have adopted the Equator Principles, incorporating 

socio-environmental requirements into our credit 

operations analyses. We comply with the Principles for 

Responsible Investment (PRI), participate in the Carbon 

Disclosure Project (CDP) and have created socially 

responsible investment funds. 

The division by risk category, based on the IFC’s socio-environmental criteria for project 

classification and applied to the framework of the projects evaluated using the criteria of 

the Equator Principles, corresponds to the following groups: 

Category A 

Category B 

Projects expected to have significant social and/or environmental 

impacts that are diverse, irreversible or unprecedented. 

Projects expected to have limited potential for social and/or environmental 

impacts. They are few in number, usually specific to the location, largely 

reversible and readily addressed through mitigation measures. 

Category C 

Projects expected to have few or minimal social or environmental impacts. 








Socio-environmental analysis categories, by risk potential 

A- 

B- 

A+ 

B+ 

C 

High potential for significant socio-environmental impact. 

Low socio-environmental risk management capacity 

Medium potential for significant socio-environmental impact 

Low socio-environmental risk management capacity 

High potential for significant environmental impact 

Company capable of managing socio-environmental risks 

Medium potential for significant socio-environmental impact 

Company capable of managing socio-environmental risks 

Low potential for significant socio-environmental impact 

High 

Medium 

Low 

Environmental Risk Policy 

In addition to commitments taken on by 

joining the Equator Principles in 2007, we 

have established a Corporate Credit Socioenvironmental 

Risk Policy. This initiative 

reaffirms our strategy of integrating social 

and environmental criteria into the credit 

decision-making process. In applying the 

policy we seek to evaluate the socioenvironmental 

risk of project funding and 

of the customers’ activities, in this case by 

analyzing their socio-environmental risk 

management capability. 

In 2009, during the integration activities, 

we continued to consolidate our Corporate 

Credit Socio-environmental Risk Policy. 

This process began in December 2007 

with a unique socio-environmental 

risk assessment methodology, whose 

unique scope was the result of extensive 

consultation with some of our strategic 

relationship groups, similar to international 

standard AA1000. The policy’s main 

objectives are: 

• establish guidelines and tools to assess 

socio-environmental risks in corporate credit 

risk analysis; 

• give internal support to sustainable 

development actions and programs and 

provide guidelines for training professionals 

from the business and corporate credit 

areas; and 

• encourage corporate clients to improve their 

socio-environmental practices. 

Currently, Itaú Unibanco and Itaú BBA also 

develop specific guidelines to evaluate certain 

sectors. One example is the housing sector, 

which already has a sector-specific socioenvironmental 

policy, established in late 2009 

for the mortgage loan review process for 

commercial banking customers (read more 

about the subject in the Business/Mortgage 

section of this Report). 

The Policy in Practice 

The Corporate Credit Socio-environmental Risk 

Policy began in 2007, and was expected to be 

implemented within two years to provide socioenvironmental 

risk analysis of commercial loans 

of over R$5 million. This objective was achieved 

in 2009, and the socio-environmental risk analysis 

process and tools for commercial loans are now in 

operation. The procedures include two separate 

stages: (1) classification of a sector socioenvironmental 

risk (High, Medium and Low 

risk - A, B, C); and (2) individualized analysis of 

those clients in high or medium (A and B) socioenvironmental 

risk classes, involving financing 

of $5 million or more. 

The continuous improvement of the 

application process for this policy is a strategic 

concern at Itaú Unibanco. We have made 

investments in organizing the structure of the 

area in charge and in technology, with a view 

to improving the analysis tools to make the 

process faster and easier. 

In 2009 we analyzed middle market customers 

(medium-sized companies) in the portfolio, 

using the criteria set by the policy. Every 

customer involved with financing equal to 

or higher than R$5 million received a sector 

socio-environmental risk classification of A, 

B or C, while eligible candidates (classes A 

and B), which represent 60% of this group, 

underwent the review process. During the 

year, 2,046 socio-environmental technical 

statements were issued – 1,933 in favour and 

113 against. Of these, 13 were considered 

favourable after clarifications provided 


In 2009 

we issued 2,046 socio-environmental opinions: 

1,933 in favour and 113 against. 

Projects reviewed 1 by Itaú BBA and financed under the criteria of the Policy 

Category 

Projects 

Total 

Investment 



share 


A+ 1 517.22 348.09 

B+ 12 2,062.39 630.29 

C 1 79.30 48.19 

Total 14 2,658.91 1,026.58 

Sectors 

Projects 

Total 

Investment 



share 


Sugar and Ethanol 4 774.46 144.26 

Energy 6 964.04 355.73 

Extraction Industry 2 673.28 388.54 

Manufacturing 1 132.14 83.00 

Services 1 114.97 55.04 

Total 14 2,658.91 1,026.58 

Other projects approved 1 using the Policy criteria 

Category 

Projects 

Total 


Investment 

share 

(in R$ millions) (in R$ millions) 

B+ 4 665.77 282.73 

Total 4 665.77 282.73 

Sectors 

Projects 

Total 

Investment 



share 


Sugar and Ethanol 1 150.82 90.00 

Energy 2 295.00 150.90 

Services 1 219.95 41.83 

Total 4 665.77 282.73 

1. Projects in this table were approved by the governance structure in 2009, but by year-end still had 

not been financed, and therefore were not included in the previous table. 

by customers, while 100 remain classified 

as unfavourable and are currently being 

monitored by the socio-environmental risk 

analysis area. 

Monitoring Practices 

Monitoring is one of the stages of the socioenvironmental 

risk analysis process, and 

investigates whether the practices and/or 

projects being financed for corporate clients, 

depending on the case, remain compliant 

with the standards set by the Bank. This 

stage includes actions such as site visits by 

socio-environmental risk analysts and socioenvironmental 

consulting experts to assess 

the practices set out in the contract. 

Based on the results obtained during 

the monitoring stage, and based on our 

socio-environmental commitments, we 

can question the practices of our corporate 

clients, as well as their application to the 

projects being financed. In such cases, 

clients must submit supplementary 

information and/or review their 

environmental practices in order to ensure 

the delivery of service standards established 

by Itaú Unibanco. 

Training and Qualification 

As defined by one of the objectives of the 

Corporate Credit Socio-environmental Risk 

Policy, throughout 2009 Itaú Unibanco and Itaú 

BBA held training sessions for their respective 

teams of employees in the commercial, product 

and corporate credit areas to qualify them with 

respect to their objectives, concepts and use 

of policy guidelines in socio-environmental 

management. At Itaú Unibanco training activities 

were undertaken via e-learning (Distance 

Education), while at Itaú BBA all meetings were 

in person. 

At Itaú Unibanco the training is targeted at credit 

analysts and product and commercial managers 

(corporate customer service delivery), and were 

made available to about 2,000 employees. For 

2010 the goal is to reach all 6,000 professionals in 

these areas. 

At Itaú BBA the group that received training 

was comprised of credit analysts and managers. 

Next year the training should cover all the 

areas involved, directly or indirectly, in credit 

operations. 








Itaú Unibanco Tatuapé 

Administrative Centre, 

São Paulo. 

Crisis Management 

Itaú Unibanco’s structured crisis management 

program has delivered positive results. Begun 

in September 2008, the Corporate Crisis 

Management Program was also implemented 

throughout 2009 at the units in Uruguay, 

Argentina, Chile and Paraguay, and as well 

as in New York, Lisbon and Luxembourg. Our 

goal is to cover all international operations by 

the end of 2010. 

The program is based on a multidisciplinary 

management model approach designed to 

coordinate quick response actions to any crisis 

that could result in human and/or financial 

losses, or affect our image and reputation. 

The crisis management model provides 

three levels of action - strategic, tactical 

and operational - as described in the 

Crisis Management Policy, and covers 

the entire Group. 

The program’s key points include over 200 

focus agents, or appointed representatives 

whose mission is to act in solving a 

possible crisis, assisting the Corporate Crisis 

Management Committee in business recovery, 

monitoring problem situations and improving 

processes with a focus on prevention. 

Following are selected actions carried out in 

2009 which exemplify the essence of the Crisis 

Management Program, as they contributed to 

preserving operations: 

• Business Impact Analysis 

Our position in Brazil’s National Financial 

System increases our responsibility to ensure 

business continuity, even in situations of 

abnormality. Analysis of impacts on our 

business is a task performed by all units 

of the Organization, with the objective of 

mapping priority processes and services 

in crisis situations. Based on this work, 

contingency plans are then drawn up to 

maintain activities that can or must not be 

interrupted, allowing us to conduct business 

and provide customer service even in 

emergency situations. 

• People Contingency 

Due to the Influenza A (H1N1) epidemic, 

we mobilized ourselves to prevent the risk 

of a pandemic. In addition to publicizing 

contagion prevention information to all our 

business units, we also developed a plan to 

enable employees to work off-site, should the 

progress of the disease prevent access to the 

workplace. 

With its consolidation in 2009, the Corporate 

Crisis Management Program was one of the 

initiatives that allowed us to earn a high score 

in the New York Stock Exchange Dow Jones 

Sustainability World Index. 


Ethics Management 

The merger between Itaú and 

Unibanco also led to a new Corporate 

Ethics Code, released in February 2010, 

together with the process of building 

a new culture that will help redefine 

sector codes of conduct. 

The new bank’s Vision - to be a leader in 

sustainable performance and customer 

satisfaction - expresses our conviction 

that organizations cannot buy long-term 

success, rather, success depends on the 

ability to lead with ethics and responsibility. 

Accordingly, the new Code of Ethics 

describes the behaviour expected from our 

employees and reinforces our commitment 

to best practices in the market. As a result, 

we developed the following four Ethics 

Principles to govern our personal and 

organizational conduct covering different 

times, places and cultures: 

• Identity – We align our businesses with 

our corporate identity, based on high 

standards of ethics, resilience and respect 

for sustainability; 

• Good Faith – Our actions are transparent 

and we take responsibility for our actions 

and choices; 

• Interdependence – We are open to dialogue 

and we interact with our strategic relationship 

groups in order to share actions and goals that 

lead to the common good; and 

• Excellence – We develop environments that are 

conducive to high quality work and those who 

perform it for the institution and society. 

We have updated the management practices 

in the Corporate Ethics Policy. The new 

policy was conceived based on corporate 

values and vision, the requirements set by 

international standards AA1000 and SA8000 

and the sustainability indices of the São Paulo 

and New York stock exchanges. In practice 

the Corporate Ethics Policy guides the 

implementation of two programs: 

• Ethical Commitments Management 

Program; and 

• Continuing Education Program on Ethics. 

The Ethical Commitments Management 

Program provides managers and other 

employees with tools and information that 

enable them to resolve ethical dilemmas and 

conflicts of interest. 

The Continuing Education Program on 

Ethics disseminates our values and standards 

of conduct to staff members. In addition, 

periodic internal communication actions are 

used to encourage the adoption of ethical 

practices in relationships and daily activities 

of the Organization. In 2010 an awareness 

and education program will be undertaken to 

expand the awareness of our new Code for all 

our employees. 

In 2009, based on the guidelines of the two 

programs, we held a Money Laundering 

Prevention training event which was attended 

by about 13% of our employees via e-learning, 

approximately 14% of whom were managers. 

We also provided e-mail training in Cash 

Transactions Control, launched in 2009, 

which reached about 13% of our staff. Those 

employees who were considered multipliers 

received presence training during the period. 








To ensure the ethical conduct of our 

employees and partners we adopted control 

procedures, criteria for investor and supplier 

relations, information security measures and 

prevention of money laundering, among 

other measures. 

Preventing and combating illegal acts are part 

of our institutional responsibility. To formalize 

this commitment to society and following best 

market practices and recommendations from 

international organizations, we established 

the Corporate Policy for Preventing and 

Combating Illegal Acts. To maintain a 

control environment that discourages such 

acts by means of preventive actions or by 

encouraging employees to commit to our 

values and principles, some strategic actions 

were adopted, such as software updates, staff 

training and certification in money laundering 

prevention. 

In addition, all business units are subject to 

the application of the Corporate Policy for 

Combating Corruption and Bribery, and have 

specific assessment and control procedures for 

the risks inherent in their processes. 

The merger between Itaú and Unibanco also 

encouraged us to continue and develop staff 

awareness campaigns, focusing not only on 

Protection of Information for the Organization, 

but also on shedding light on personal 

information exposure risks on the Internet. This 

initiative seeks to educate staff about virtual 

threats and forms of protection to ensure the 

integrity of our information. 

In 2010 development of the Corporate Program 

for Combating Corruption and Bribery continues 

to be integrated into all initiatives, and gives 

greater visibility to compliance with this policy. 

Part of the program includes the consolidation 

of internal control practices, training and 

communication actions, and the improvement 

of complaints routing and investigation 

channels. Our goals are to increase the scope 

of training and place greater emphasis on 

communication actions related to this issue. 

Combating Corruption 

In 2009 we recorded five instances involving 

employees who sought financial benefits 

or personal favours in their relationships 

with suppliers or customers. The cases were 

examined and ended with the dismissal of 

the staff members involved - two of whom 

were removed with just cause. 


The merger between 

Itaú and Unibanco resulted in a 

new Corporate Ethics Code. 

LEARN MORE: 

Ethics Management Governance 

Objectives Projects/Process Frequency 

Board of Directors • Approve changes in the Corporate Ethics Code Annually 

Senior Ethics 

Commission 

• Submit proposals for improving the Corporate Ethics 

Code to the Board of Directors. 

• Establish and administrate the Corporate Ethics Policy 

and Corporate Policy to Combat Corruption and 

Bribery (Policies). 

• Monitor the ethical climate and assess the compliance 

of the business and operations of the holding company 

and its subsidiaries with the guidelines of the Policies. 

• Examine variances in the conduct of group companies. 

• Rule on interpretations of the Corporate Ethics Code, 

ethical dilemmas, conflicts of interest and other 

guidelines in the Policies. 

Half-yearly 

The biographies of the members of the 

Board of Directors are available at 

www.itau-unibanco.com.br/ri 

The biographies of the members of the Itaú 

Unibanco Executive Committee are available 

at www.itau-unibanco.com.br/ri 

The biographies of the members of the 

Itaú BBA Executive Committee are available at 


For more information on the initiatives of the 

Equator Principles, please visit 

www.equator-principles.com 

For risk analysis and other socio-environmental 

risk practices of Itaú Unibanco, please visit 

www.itau.com.br/socioambiental 

Ethics Committees 

of related 

companies in 

Brazil and abroad 

Sector Ethics 

Committees 

(one per 

executive area) 

• Rule on interpretations of the Corporate Ethics Code, 

ethical dilemmas, conflicts of interest and other 

guidelines in the Policies. 

• Monitor the ethical climate and assess compliance of 

the organization’s business and operations with the 

guidelines of the Policies. 

• Examine variances in conduct within the companies 

of the Bank. 

• Submit an annual report to the Senior Ethics Commission. 

• Monitor the ethical climate and assess compliance of 

business areas and their operations with the guidelines 

of the Policies. 

• Examine variances in the conduct of the business area. 

• Submit an annual report to the Bank’s Ethics Committee. 

Quarterly 

Quarterly 


Business 

• Branches 

• Consumer Credit 

• Encouraging Microcredit 

• Itaucred 

• Insurance, Pensions and Capitalization 

• Small and Medium-sized Companies 

• Wholesale and Investment Bank 

• Wealth Management & Services 

• International Market 

Responsible Performance Strategy 

The integration of the operations of Itaú and Unibanco has brought benefits to all 

clients through improved corporate governance risk management, as well as the 

provision of a range of innovative products and services. 

The merging of our operations also helped us increase the supply of 

credit in 2009, even in an economic environment marked by uncertainties 

and expectations. The challenge of creating a new institution with solid 

and competitive bases and a leadership role in Brazil and Latin America, 

has become a major objective to be achieved collectively, one that from 

now on will be guided by our corporate Vision: Be the leading bank in 

sustainable performance and customer satisfaction. 

To continue in this direction we maintained one of our traditional competitive strategies: customer 

segmentation, whereby we identify the needs of each customer group to create products and 

banking services that meet and exceed the specific demands of a broad and diverse set of 

individuals and companies. 

In 2010 our main goals are to consolidate our operations in Brazil while preparing the framework 

for the Bank’s employees to work in an organization that seeks to become a global player in the 

international market. With a continual focus on customer satisfaction we support the growth of 

credit operations and broader economies of scale across all business segments. 



Our main results and business outlook. 

• Growth in lending 

• Services for commercial clients 

• The incorporation of Unibanco branches into the Itaú network 

• Innovation in our international units 


Business 

• Branches 



• Itaucred 






Segmentation: a differential 

in customer service. 

Branches 

Our branch network typifies our commitment 

to society to promote economic 

development, environmental protection, 

social inclusion and broadening the general 

public’s access to banking services and 

products. In short, the durability of our 

business is based on long-term relationships 

with our stakeholders. 

One way to achieve this vision is to 

invest in strategies and practices which 

promote transparency, responsible lending 

and financial education - one of eight key 

themes of the Essence of Sustainability. 

Throughout 2009 all our business areas 

began reviewing their procedures and 

processes and the changes are already being 

felt in 2010. In this context our popular 

Responsible Use of Money program has 

gained greater importance (read more in the 

Sustainability Vision and Client/Relationships 

sections of this Report). 

We are in the middle of a process of 

transformation and continuous improvement 

to satisfy our clients even more. Our customers 

began to enjoy the benefits of the merger 

as of January 29, 2009, when the entire ATM 

network was integrated. By year-end we were 

present in more than 1,100 cities and towns, 

offering about 4,900 branches and banking 

services outlets (PABs), plus more than 30,000 

ATMs to handle financial services essential 

to the everyday life of our nearly 40 million 

account and non-account holder clients. 

As part of the strategy to segment our business 

activities, consumer or individual clients are 

divided into three main groups: 

• Retail customers, earning up to R$4,000 

a month; 

• Uniclass customers (R$4,000 - R$7,000), both 

under the Itaú brand; and 

The Consumer Client Bank has its own 

infrastructure to serve this market segment, 

which is one of the largest within our 

Organization. Its Billing, Credit, Product 

Development, Payroll Advance Loan and 

Government Relations structures give us a 

unique view into the financial lives of our 

customers, allowing us to quickly create and 

deliver products and services that meet their 

real needs. 

The main directives that guide employees 

working in the Consumer Client segment 

can be summed up in three basic attitudes: 

all employees must offer the best customer 

service, try to understand their customers’ 

real needs, and help them be financially 

organized. 

• Personnalité clients, earning over R$7,000 

(served by a network of dedicated Personnalité 

branches). 


R$3.7 billion 

was invested in technology last year by the Bank. 

Integrated Network 

In 2009 our efforts were focused on the integration 

of operations plus the various teams and areas. 

Throughout 2010 the major change was the 

incorporation of Unibanco’s 1,000-branch 

network into the Itaú platform – the brand that 

will continue in the sector. The operation will 

require investments of R$580 million, including 

expenditure on works, equipment and materials. 

We expect to integrate an average of about 150 

branches each month. 

In addition to performing these adjustments 

efficiently to maintain excellence in service and 

quality of banking services, we face the highly 

unique challenge of bringing to the Itaú brand 

the integration of operations of two financial 

institutions that have merged and gained scale. 

Investments in Technology 

In 2009 the Bank invested R$3.7 billion in technology. Our clients 

conducted approximately five billion transactions through self-service 

channels: ATMs alone accounted for 30% of all operations, while our 

19.1 million registered Internet Banking clients performed two billion 

operations during the year. 

We modernized the navigation platform of our domestic ATM network, 

making it even more simple and intuitive. This measure is consistent with 

our ongoing process of technology growth to facilitate customer service. 

In 2009 our Information Technology (IT) area reformulated its working 

methods to reduce systems development time, increase the availability 

of services, facilitate development of future architecture, align itself 

even further with the business and stimulate innovation. The rapid 

integration of the ATM network is a result of changes implemented 

over the years. We expect even more significant growth in 2010, as the 

integration process continues. 

Our ongoing changes will not be restricted to 

creating a new layout of the branch network, 

which was also designed to give more modernity 

and greater visibility in the urban landscape. The 

greatest concern in converting the Unibanco 

branches to Itaú’s systems is ensuring not only the 

modernization of facilities, but preserving a close 

relationship with our customers and the quality of 

banking services. 


Business 

• Branches 



• Itaucred 






With the integration of our 

operations, we will continue to be a 

leader in the capital markets. 

Consumer Credit 

Change of strategy 

In 2009 we wound down the activities 

of our Taií and Fininvest consumer 

credit companies and closed all 389 

outlets in the network. As part of the 

integration process we are reorganizing 

our operations in this segment, and 

these activities will now fall under 

Financeira Itaú CBD (FIC) and Financeira 

Americanas Itaú (FAI). 

In 2010 we will step up efforts to secure 

other partnerships similar to those 

we have established with the Lojas 

Americanas, Marisa, Magazine Luiza, 

CBD and Ponto Frio retail chains, and 

Vivo, a mobile telephone carrier. In 

2009 we established more than 300 

new partnerships. 

Consumer credit represents 40% of all loans 

granted by the Bank. Despite the credit crisis 

that marked the year 2009, we maintained our 

27% market share, a performance that resulted 

primarily from debt renegotiation policy 

changes implemented in the fourth quarter of 

2008. Forecasts indicate that consumer lending 

will play a prominent role in the Brazilian 

economy in 2010. Our personal loan portfolio 

reached R$103.1 billion in 2009, up 10.7% from 

2008, and may grow another 20% to 25% next 

year, while mortgage lending analyses reveal 

optimistic growth projections of about 20% to 

25% for the same period. 

On another front we will continue to seek out 

partnerships with large retailers in 2010. In 2009 

this sector added new sales outlets to distribute 

financial products and services offered by the 

Bank, accounting for more than 17 million 

clients throughout Brazil. 

Credit Cards 

We are the domestic credit cards leader, 

with a 37.5% market share, equivalent to 

a turnover of R$85 billion generated by 52 

million cards in circulation. The integration 

of our operations, which should be 

completed in the first half of 2010, 

will consolidate Itaucard, Unicard and 

Hipercard, creating the largest credit card 

issuer in the country. Currently we have 

23.4 million account and non-account 

holders who use Itaucard and Unicard 

credit cards. 

As in other areas of the Organization, 

the main challenge with credit cards 

is to ensure comprehensive customer 

satisfaction. Accordingly, in 2009 we 

maintained our focus on five strategic 

objectives: integration; guaranteed 

budget and results; ensuring the quality 

of data processing during the integration; 

maintaining market share; and principally, 

building a strategy for improving our 

excellence in providing services to clients. 

The major change in card operations 

in 2009 was due to a general review of 


Credit Cards which transfer funds to social organizations and charities 

In 2009 we offered three ways for our customers to use their credit cards to make donations to institutions linked to environmental 

conservation, child and adolescent rights and helping the disabled. 

When they receive one of our socio-environmental cards – Aqualung Unicard, Greenpeace Unicard and Abrinq Foundation Unicard - 

customers make a monthly donation. The value of the transfer varies according to each card, and totaled R$203,000 during the year. 

Through Hipercard, clients can authorize a debit donation to AACD, a charity for handicapped children and young people. In 2009 

donations from this card totaled R$3 million. 

The Always Present Program is optional for Itaucard MasterCard ® International, Visa Itaucard International, Gold Mastercard® and 

Visa Gold Itaucard customers, allowing them to donate to institutions that are part of our “catalogue”. 

Card/Program 

Aqualung Unicard 

Greenpeace Unicard 

Fundação Abrinq Unicard 

Hipercard 

Always Present Program 

Charities Benefited 

Instituto Ecológico Aqualing, which promotes environmental education and preservation. 

Greenpeace, which works toward environmental preservation. 

Fundação Abrinq, which works to improve the quality of life of children and adolescents. 

AACD, which works with disabled children and adolescents. 

Doctors of Joy, Growing up in the Country, Create, Bem TV, FUMDHAM, Friends of the Earth, Aqualung, 

Fundação Abrinq, Hope House, Abdim, Carpe Diem and Unicef. 

products, policies and procedures – more 

than 200 actions were put in place - to 

improve everything from processes to 

transparency in customer relations. Our 

team’s key accomplishments included 

reformatting the billing statement, which 

cleared up items that previously generated 

customer questions; changes in the 

customer service script to reduce response 

time; simplification of the authorization 

policy, which reduced the number of 

calls to the call centre, and changing the 

process to replace cards (read more in the 

Relationships/Clients section of this Report). 

Redecard 

We own 50% of Redecard, a company 

offering multi-branded credit, debit and 

benefit cards, and which is a leader in 

the domestic payment cards market. 

In 2009 the number of credit and debit 

card transactions through Redecard grew 

18.2%, reaching R$148 billion. During 

the year it accredited 342,000 new 

establishments, allowing the availability of 

equipment for electronic transactions to 

rise 11% about 987,000 units. 

University Student Credit 

We have a special line of credit to fund 

undergraduates in partner educational 

institutions. This facilitates the access 

of young low-income people to 

higher education. Students have the 

opportunity to complete their studies 

while paying approximately half the 

monthly fee, with the remainder to be 

paid after graduation. We offer these 

loans at 7% to 8% per year, a level below 

the cost of the Central Bank lending rate 

and far below prevailing market rates, 

which range from 15% to 25% a year. 

By year-end over 5,000 people in 23 

states were registered in the program, 

accounting for total assets of R$22.5 

million. Most of these people belong 

to families whose parents did not 

attend university, while two-thirds of 

the families who benefit earn up to five 

times the monthly minimum salary, 

which demonstrates the program’s 

potential for social transformation. In 

2010 we expect to reach up to 12,000 

young people for a total benefit value of 

R$50 million. 

Specialized Network 

Itaú Unibanco University Student Credit 

is available for 73 private educational 

institutions, spread across 213 campuses in 

23 states. Students can apply at the schools 

themselves, which are supported by a 

network of 171 bank branches in the cities 

where the schools are located, and whose 

staff are specially trained to provide this 

product’s services. 

Payroll Advance Loans 

We maintained our goal of growing 

without losing profitability in payroll 

advance loans for private sector workers, 

civil servants and pensioners. 

In 2009 we consolidated the integration 

of portfolios acquired from other financial 

institutions, based on Central Bank Circulars 

3407, 3411 and 3414, which altered the 

regulations to facilitate transactions between 

the banks. At December 31 the portfolio 

amounted to R$6 billion, down 6.4% from 2008. 


Business 

• Branches 



• Itaucred 






Encouraging Microcredit 

In 2009 microcredit made strides in 

developing a sustainable business 

model. A series of meetings with 

employees, stakeholders and experts 

on the eight themes in the Essence of 

Sustainability, including microcredit, 

yielded important information for 

improving our actions in the industry 

(read more in the Sustainability Vision 


The process of working closer with the 

general public and the government allowed 

us to identify at least three key demands: make 

microfinance products more available; make 

clients and the general public more aware of 

our activities; and reach a scale commensurate 

with our aspirations. Microcredit is also among 

our priorities for 2010. 

The Bank’s microcredit activities are conducted 

on three fronts: 

• Microinvest - offers manufacturing microcredit 

to informal micro-entrepreneurs in lowincome 

communities. In 2009 the service was 

offered in two large communities: Rocinha in 

Rio de Janeiro, and Paraisópolis in São Paulo; 

• granting of credit lines to civil society 

organizations of public interest (Oscips) 

registered with the National Program 

of Manufacturing Microcredit (PNMPO). 

Under this model the evaluation of microentrepreneur 

credit is carried out directly by 

the Oscips; and 

• providing microcredit to low-income account 

holders through the branch network, 

eliminating the need for these customers to 

show how the loan will be used. This is a low 

interest personal loan provided in installments 

of up to R$1,000. 


The Bank has strengthened its strategy to develop 

partnerships which make it easier to make 

special loans to micro-entrepreneurs, a group 

which typically faces difficult access to traditional 

financing lines. 

In Essence 

Microfinance 

We work on three fronts... 

...in lending money to micro-entrepreneurs who 

have difficulty accessing traditional financing lines: 

making direct loans (manufacturing microcredit); 

partnerships with civil society organizations 

(Oscips) that operate as microfinance institutions 

in disadvantaged communities; and microcredit to 

low-income account holders. 


Business 

• Branches 



• Itaucred 






Microinvest 

In the manufacturing microcredit segment 

we offer financing to formal and informal 

entrepreneurs through Microinvest. 

Created in October 2003, Microinvest is a 

partnership with the International Finance 

Corporation (IFC), the World Bank’s arm 

that finances private sector projects. 

The company maintains a belief in a 

broad-based granting of financial services 

to low-income residents through a model 

that combines close contact with the 

client - typical in the most successful 

programs in Asia and Eastern Europe - with 

state of the art information technology 

tools. This allows the demographic 

information acquired by the field teams 

to be added to the communication 

facilities and knowledge management 

brought about by technological advances, 

especially in the use of smart phones and 

statistical treatment of the data collected. 

In 2009 we implemented a new lending 

model developed with technical 

cooperation from CGAP, a World Bank 

organization. Additionally, through an 

agreement signed with the Inter-American 

Development Bank (IDB), Microinvest 

has developed projects to strengthen its 

team and the implementation of good 

microfinance practices. The combination 

of these efforts has improved the quality 

of the portfolio and loan repayments. 

To accelerate the growth of the portfolio 

over the next three years, Microinvest has 

implemented new projects to standardize 

flow and procedures, and establish an 

internal audit structure for processes. 

Microinvest currently has 110 employees, 

including a field team of 70 agents and 

eight micro supervisors. The agents 

evaluate the ability of micro-entrepreneurs 

to make their loan payments, as well as 

the impact these loans will have on their 

activities. They also advise clients on general 

financial matters. 

Since beginning its operations 

Microinvest has made over 24 million 

loans, equivalent to R$72 million, with 

interest rates ranging from 2.8% to 4% 

per month. In 2009 it made 3,778 loans, 

totalling R$13 million. The focus of the 

loans is on informal urban entrepreneurs 

located primarily in the metropolitan 

areas of São Paulo, Rio de Janeiro and Rio 

Grande do Sul States. 

For micro-entrepreneurs Microinvest 

created the Financial Education Program in 

2008, the scope of which was expanded in 

2009. Microcredit personnel who act as an 

important agent in educating customers on 

the responsible use of credit now have a special 

training program to help them better perform 

their customer relations functions. 

Financing 

Microcredit Institutions 

Itaú Unibanco also uses microcredit in 

new business opportunities, being Brazil’s 

only privately-controlled bank to provide 

a specific line of funding for civil society 

organizations of public interest (Oscips). 

This strategy has allowed us to strengthen 

a still underdeveloped sector in Brazil, 

one which is fundamental for successful 

entrepreneurship: namely, microfinance 

institutions which serve those who form 

the base of the social pyramid. We seek 

to expand these partnerships because 

microfinance institutions, without this 

support, cannot reach all the communities 

needing this type of financial service. 

In 2009 this line of financing grew 125% from 

R$8 million to R$18 million, and we currently 

are working with nine Oscips. 


The construction industry is 

one of our priorities in 2010. 

The first step to satisfying our 

customers is knowing their needs 

and necessities. 

Itaucred 

Vehicles 

Itaú Unibanco’s vehicle loans sector 

performed well in 2009, in spite of the 

economic crisis and consequent increase 

in default levels. To confront this adverse 

situation, the area focused its attention 

on improving lending processes, which 

have become more efficient, and the 

renegotiation of debts. With these measures 

in place we expect that by mid-2010 

payments in arrears for more than 90 days 

will return to their pre-crisis levels. 

The result of these actions led to a drop 

in default rates and helped us continue to 

lead the domestic vehicle financing market, 

with a loan portfolio of approximately 

R$51.3 billion, up 4% from 2008. Total loans 

for financing and leasing + transactions 

totalled R$24.8 billion. 

Consórcios 

As a result of the merger, in 2009 we created 

a new business division for the Consórcio 

area, which includes Itaú Consórcio 

Administradora and Administradora 

de Consórcio Fiat, in partnership with 

automobile manufacturer Fiat. The operations 

of these two management companies are in 

the process of becoming unified so they can 

maintain the best practices of each, ensuring 

better savings for the Organization and the 

most comprehensive range of products for 

consórcio members. 

Unique to Brazil, consórcios are groups of 

consumers who pool their resources so they 

may each purchase certain goods under 

beneficial conditions. These groups and their 

funds are managed by the Bank. 

The outlook for 2010 is positive, even for the 

property consórcio, which should grow more 

than 10%. In 2009 we recorded a total of 

85,195 shares sold. 

Mortgages 

Mortgage lending is booming in Brazil, despite 

setbacks caused by the global economic 

crisis, particularly in 2009. Given the optimistic 

forecasts for growth in coming years, the 

sector represents a priority for the Bank, and 

we are preparing to operate on a large scale to 

provide financial support to the development 

of construction in Brazil. 

We adopted several innovations in 2009, 

including the separate pricing of loans for 

individuals, which now includes each client’s 

credit profile and operation before setting 

interest rates, and reducing the number of 

documents needed to grant a loan to business 

people and end users. These initiatives have 

resulted in higher gains because they give us 

better support conditions to conduct business, 

and make the financing process easier. 


Business 

• Branches 



• Itaucred 






New Rules 

Consistent with industry best practices and 

our Corporate Sustainability Policy, as of 2010 

we will adopt a new Socio-environmental 

Policy for property loans to commercial clients 

and construction companies. This initiative 

covers 100% of new loans, estimated at 

about R$6 billion. Our goal is to assess the 

level of socio-environmental risk involved 

in financing and implement environmental 

responsibility practices in the company and 

the development project. 

The evaluation will be conducted using 

three online questionnaires to facilitate the 

process and streamline the evaluation and 

response to the client. We expect that by the 

end of 2010, 30% of the current portfolio will be 

assessed under this new policy. 

Once the risk is identified, the operation will 

be subjected to detailed analysis of socioenvironmental 

risk. Based on survey results, 

receiving a loan may require resolving the 

identified risks, or be subject to a new approval, 

or even be denied. The same results may 

occur during the time period for releasing the 

financing monies. 

This policy also provides for a specific 

clause in the Financing Plan contracts to 

ensure they comply with Brazil’s National 

Environmental Policy (Decree Law 

99274/1990 and 9605/1998), in addition 

to meeting certain requirements of the 

Federal Constitution. If the company does 

not comply with this legislation, we may 

terminate the contract or liquidate it ahead 

of schedule. 

The new rules will apply to all funding for the 

construction of residential and/or commercial 

properties (Financing Plan) in Brazil. 


In pensions, our priorities are to offer financial 

consulting to clients and present pension plans 

as a complement to their financial portfolios. 

R$17 million 

was the value of our environmental insurance premiums at the 

end of 2009. There is no similar product on the Brazilian market. 

Insurance, Pensions and Capitalization 

In 2009 we made a series of changes in 

our insurance business. The area was 

restructured to meet diverse market 

sectors, without losing focus on customer 

satisfaction and risk management. The 

changes were designed to consolidate 

an integrated operation that operates in 

a highly competitive market which offers 

great and immediate growth potential. 

Due to our splitting of the Itauseg and Itaú 

Seguros Auto e Residência S.A. (Isar) portfolios 

in November, the auto and residential 

segments no longer form part of Itaú 

Unibanco Holding S.A.’s consolidated results. 

As well, the association with Porto Seguro, 

announced in August, led to the creation of 

Porto Seguro Itaú Unibanco Participações 

(Psiupar), which now has 28% of all auto 

insurance sales in Brazil. Currently, Itaú 

Unibanco Holding S.A. owns 43% of Psiupar 

and indirectly has 30% of Porto Seguro S.A. 

In health insurance we sold 100% of Unibanco 

Saúde Seguradora to Tempo Participações and 

are now awaiting final approval of the deal 

from the National Health Agency (ANS). In the 

high risk segment we purchased the XL Capital 

group’s share, allowing us to maintain the service 

structure for large industrial and commercial 

clients, which involves, among other projects, 

construction, chemicals and petrochemicals, 

energy and infrastructure. 

The restructuring of our insurance area also 

covered the December sale of the 14.025% 

shareholding we held in Allianz Seguros S.A., a 

Brazilian subsidiary of German insurer Allianz, for 

R$109 million. 

Net income from insurance, pensions and 

capitalization reached R$3.9 billion in 2009, while 

technical provisions totalled R$51.4 billion at 

year-end, a figure that makes us market leaders 

in a number of sectors. 


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Insurance by iPhone 

Auto insurance customers can now call for 24- 

hour assistance using their iPhone. Introduced in 

early 2009, this service allows insurers to use GPS 

to monitor the route of the assistant sent to help, 

including location and expected arrival time. 

Pensions 

We reached approximately R$40 billion in 

total pension reserves, including plans for 

individuals and corporations. Individual 

pension plans were transferred to the Wealth 

Management & Services area. The priority is 

to provide financial consulting to clients and 

present private pension plans as a complement 

to their financial portfolios, as they bring longterm 

advantages in the form of tax deductions. 

To meet this goal we adopted a new 

management tool which has allowed the 

commercial area to better identify client 

needs regarding pension products. This 

measure, coupled with the reformulation 

of the product range we offer, resulted 

in increased sales and record revenues in 

the corporate plans sector, despite the 

recession caused by the economic crisis. 

Our pensions portfolio ended the year 

with approximately R$43.2 billion in 

reserves, an increase of 24.4% over 2008. 

In the supplementary corporate pension 

plans sector, even with the economic 

downturn, we achieved record revenues 

of R$9.6 billion. 

Capitalization 

Itaú and Unibanco’s capitalization areas 

were integrated quickly and the products 

of the two institutions were maintained. 

Capitalization is an investment vehicle 

unique to the Brazilian market, combining 

the features of an annuity with a bonus 

component. In 2009 sales reached 

approximately R$1.8 billion, with technical 

reserves of around R$2.3 billion. A total of 

6,085 clients drew bonus earnings in 2009, 

from a total pool of R$41.1 million. 

We occupy third place in the market, 

helped by sales of our socio-environmental 

plans, which donate part of their revenues 

to groups such as the Disabled Children’s 

Assistance Association (AACD), the United 

Nations Children’s Fund (UNICEF) and the 

World Wildlife Fund (WWF). 

Established in 2007, our partnership with 

AACD helps this charity to treat and care for 

handicapped children. In 2009 the AACD 

received over R$3 million from Itaú Unibanco. 


In service 

to companies, we focused our efforts on providing financial 

and management consulting to strengthen our relationship 

with this client segment. 

Garantech 

Garantech, a subsidiary of Itaú Unibanco Holding 

S.A. which acts as a principal partner with retail 

chains in Brazil, maintained its leading position 

in the extended warranty sector, with a 65.5% 

market share. 

The company stepped up its communications 

with clients to make this type of insurance, 

still considered new in Brazil, as popular as it 

has become in the United States. Their policies 

extend the manufacturer’s warranty for product 

lines in white and brown goods - refrigerators, 

freezers, stoves and other household appliances. 

Garantech was one of the top companies 

at the 2009 Abrasa Awards, winning in four 

categories: Best in Extended Warranty Insurance 

for the sixth consecutive year; Executive of the 

Year; Network Inspector; and Gold Case, for its 

“Sustainability - Garantech working so the dream 

of a green future can come true”, in recognition 

of the company’s efforts to promote projects 

and follow principles that ensure environmental 

conservation. The Sustainable Guarantee 

program, for example, is designed to reduce 

environmental impact by promoting the proper 

collection and disposal of electronic equipment. 

Climate Impact 

Insurers treat climate change as an increasing risk factor for their 

operations due to potential losses that may be caused by hurricanes, 

floods, droughts, earthquakes and other weather events. 

Given these conditions, our strategy is to create solutions and 

products to help our clients protect themselves from risks brought 

on by climate change, and provide advice on changing their 

processes to reduce any environmental harm they cause. 

Environmental Insurance 

In 2009 we continued to be the only company in the industry to offer 

civil liability insurance for damage from environmental pollution. 

This product was launched in 2005 by Unibanco to meet the needs 

of companies concerned with the impacts of their operations, 

not only in the communities where they operate, but also for the 

environment in general. Environmental insurance ended the year 

with premiums of R$17 million. In 2010 Itaú Unibanco is preparing 

to face a more competitive market, after the entry of 

new competitors. 


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Small and Medium-sized Companies 

Our operation with small and medium-sized 

companies (PMEs) performed very well 

in 2009, obtaining the best result in the 

companies sector, despite uncertainties 

caused by the global financial crisis and a 

record increase in defaults. We faced the 

period of economic downturn without 

reducing our support to the manufacturing 

sector, job creation or improving our 

relationship model. We started servicing our 

commercial customers in a more personal 

and specialized manner by focusing on 

financial and management consulting. 

We gained 246,000 new 

commercial clients in 2009, up 41% from 

2008, and ended the year with more than 

844,000 companies in the portfolio, while 

in the same period loans increased 13.7% 

to R$42.5 billion. The most popular credit 

lines were for cash flow and long-term 

products such as Finame, leasing + and 

BNDES financing. 

The average growth rate achieved by the 

Bank in the companies sector was 20% 

above the market average. We expect the 

sector to reflect solid growth in coming 

years, in a scenario where the economic 

climate is more conducive to increased 

production and services, coupled with the 

formalization process that small and middle 

market companies have been undergoing. 

In 2010 the corporate sector will remain 

a major priority for the Bank, as much of 

the credit expansion will be for small and 

medium-sized companies. With growth 

prospects of 25% in the loan portfolio in 

Brazil, which would raise this segment’s 

share to over 45% of the country’s GDP, we 

plan to grow 21% above the market. 

Socio-environmental Training 

Staff in the commercial and credit areas 

received distance training in 2009 to 

help them disseminate our Corporate 

Credit Socio-environmental Risk Policy 

and present the flow process of Socioenvironmental 

Risk Analysis in Credit 

Decisions. In the first phase 1,985 

employees were involved, 830 of whom 

have now been trained. 

In 2010 we will continue our socioenvironmental 

training, helping all 

employees involved in the credit approval 

process to meet the analysis criteria of 

the Socio-environmental Risk Policy. The 

team will dedicate itself to new business 

opportunities which have been identified 

after analyzing over 1,800 companies. 

We also created specific training programs 

to make employees become multipliers of 

our corporate culture in their relationships 

with customers, sustainability-related 

groups and the general public. This 

initiative covers everything from programs 

like the responsible use of money and 

the processes that facilitate responsible 

lending, to initiatives that educate 

stakeholders on the Bank’s policy of (re) 

investing profits. 

Innovations 

To raise awareness among corporate clients 

on their legal responsibilities to environmental 

issues, in 2009 we launched the “Sustainability 

Counter.” This project received widespread 

support from clients and helped them think of 

ways to help reduce greenhouse gas emissions 

(GHG) and what role they could play with 

respect to climate change. 


The small and medium-sized company segment 

grew substantially in 2009, and the outlook for 

2010 continues to be positive. 

With each digital signature forex operation 

conducted through the Bankline service, the 

Sustainability Counter shows clients the amount 

of paper saved and the amount of carbon 

dioxide (CO 2 

) that was not emitted into the 

atmosphere. In 2010 we want to extend digital 

signature operations to other products and 

make the Counter an increasingly popular tool. 

On the same lines as the Sustainability Counter, 

we have spared no efforts to encourage the use 

of Authorized Direct Debit (DDA), an innovative 

payment method adopted throughout the 

financial system. The service, which is widely 

accepted, allows all bills and accounts to be 

paid electronically through the client’s bank. 

This measure avoids the use of tons of paper, 

as the physical bill is no longer issued. It also 

reduces line-ups in branches and greater 

security when paying bills, and is much faster 

due to less time needed to issue a bill. Thanks 

to our ongoing investments in advanced 

technology we will offer this service to all 

clients beginning in October. 

Incentives for Sustainable Management 

We offer the market products and services that help business management be focused 

on sustainability, guiding corporate clients to consider their economic, social and 

environmental scope. 

We also created a guide for managers which covers the sustainability aspects of 

products offered to corporate clients, plus new business opportunities. As well as 

increasing the number of employees trained in corporate sustainability, we hope to 

develop and implement projects that bring together the expertise of the Organization’s 

various areas, and enhance our ability to service the corporate sector by focusing on 

socio-environmental issues. 

In 2009 we also developed communications specifically designed for clients, 

which emphasized sustainable business management and addressed the issues of 

sustainability, financial and environmental management and climate change. 

Another initiative was the revision of the Products Evaluation Form (FAP), which now 

includes questions about sustainability. For 2010 the goal is to analyze all our products 

and processes related to our operations in the corporate sector to ensure they have a 

sustainability component. 

In 2010 we also seek to develop capacity-building activities for managers. This will help 

make Itaú Unibanco a standard in sustainable business in this segment, and contribute 

to more accountable corporate management among clients and non-clients. 


Business 

R$1.7 billion 

was Itaú BBA’s net profit in 2009. 

Wholesale and investment 

bank operations have been 

consolidated into Itaú BBA. 

Wholesale and Investment Bank 

With the integration of financial operations, 

Unibanco’s Wholesale and Investment 

Bank has been consolidated into Itaú BBA. 

In this new structure the customer base 

was divided into two segments: Corporate, 

which includes conglomerates with annual 

revenues of R$150 million to R$500 million, 

and Large Corporate, for groups with 

revenues of over R$500 million. Itaú BBA 

has strengthened its leadership position 

in the market, thanks to a highly qualified 

team that is structured to meet the specific 

requirements of each client sector. 

In 2009 Itaú BBA’s net income reached R$1.7 

billion, down 2.4% from 2008. This slightly 

lower result was due primarily to the impact 

of providing R$1.15 billion against doubtful 

loan losses during the year, R$682 million 

higher than in 2008. These reserves, however, 

were partially offset by an increase of 14.8% in 

income from clients, which amounted to just 

over R$4 billion. 

The consequences were more visible in 

the first half of 2009, mainly because of the 

economic downturn and lower export and 

investment levels. Under these conditions the 

Bank readjusted the debt profile of its clients 

by evaluating their portfolio risk level. The 

effectiveness of Itaú BBA’s risk management 

was essential to get through the crisis with no 

further difficulties. 

As an investment bank, Itaú BBA maintained 

its leadership position for the sixth consecutive 

year in distribution of fixed income, as ranked 

by the Brazilian Association of Financial 

and Capital Markets Institutions (Anbima). 

Debenture and promissory note operations in 

which the Bank participated totalled R$17.8 

billion, while securitization operations added a 

further R$1.4 billion. Itaú BBA also reached the 

number one position in the international debt 

issues ranking, acting as a Bookrunner + on 

deals totalling US$5 billion, including an issue 

by a foreign company. 

The global financial crisis had a major effect 

on the operations of the Wholesale Bank. 


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In equity issues Itaú BBA acted as Bookrunner + 

for IPO + and Follow-on + totalling R$14.2 

billion. In number of transactions we ranked 

first, having participated in 14 out of the 24 

issues carried out during 2009. 

Itaú BBA also participated in 33% of fixed 

income and 58% of equity issues. After an 

abrupt halt due to the financial crisis, the 

frequency of issues resumed in the second 

half of the year. 

Expectations for 2010 are optimistic given 

the volume of investments planned and the 

funds that businesses need as they prepare 

to face a growing Brazilian economy. These 

projects are combined with the increasing 

interest in local opportunities among 

domestic and foreign investors. 

In this context Itaú BBA’s challenge will be to 

consolidate and improve its performance in 

the Corporate sector and maintain its Large 

Corporate positioning in a more competitive 

environment. 


The process to integrate the Treasury 

operations was successful. The task of unifying 

the treasuries of the three banks (Itaú, 

Unibanco and Itaú BBA) required considerable 

effort and had impacts on all areas of the 

Bank. On the other hand, the mitigation of 

operational and financial risks led to gains 

in efficiency and control which are already 

evident in the 2009 financial results. 

Treasury contributed to our consolidated net 

earnings with a market financial margin of 

R$5.6 billion in 2009. Despite the international 

economic crisis, which resulted in high 

volatility and a low appetite for risk, we 

managed to buy up depreciated assets. 

Other initiatives were adopted with a focus 

on automated transactions, including online 

investing through the Bankline service, the 

development of treasury sales operations in 

New York for corporate clients, and the creation 

of new products to respond to competition 

from State and major international banks and 

Brazilian private financial institutions. 

+ Bookrunner – Any bank that structures a securities issue by setting the price and inviting other subscribers to participate. It also 

structures the order book for debt securities or shares and allocates the securities among the investors. 

IPO – Initial public offering, or the first time a company’s shares are offered to the market. 

Follow-on – An additional offering of shares, which had been in the control block, after a company conducted a previous share issue. 


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Wealth Management & Services 

All our investment products for consumer 

and corporate clients fall under the 

responsibility of the new Wealth 

Management & Services structure, which 

brings together Private Banking activities 

(with separate local and international 

operations), Asset Management, Securities 

Brokerage, Consumer Client Investment 

Products and Services, Capital Markets, 

Internal Control and Compliance plus 

Domestic and Foreign Institutional Clients. 

With this change we have improved 

the integration of products, processes and 

people, allowing us to maintain our quality 

management of third party assets that 

differentiates us in the financial market. 

This integration will also help us improve 

customer service and offer products that 

are best suited to each investor profile. In 

2009, when the priority was the integration, 

the Bank was named best fund manager by 

Exame magazine. 

Asset Management 

At December 31 our Asset Management 

area had R$226 billion in assets under 

administration, as ranked by Anbima. 

We manage or act as an advisor for 

funds in Brazil and Latin America, and 

in countries such as South Korea, Chile, 

Argentina, Uruguay, Mexico, Canada, 

Norway, Portugal and Luxembourg. 

During the period, total assets managed 

abroad exceeded R$18.8 billion. 

The structuring of more specialized areas 

for the management of each type of fund 

also sets the Bank apart, which starts 2010 

with a differentiated team that is prepared 

to take advantage of a new growth cycle 

in the Brazilian economy. Foreign interest 

soared in the second half of 2009, as the 

country has recovered quickly from the 

international economic crisis and enjoys 

a healthy outlook for economic growth in 

coming years. 


In just 30 days 

the Bank raised R$2 billion from Japanese investors 

who were interested in the Rio Wind Fund, which was 

launched in November, 2009. 

Sustainable Funds 

We presented some new products in 

2009, including the launch of the first 

Brazilian investment fund tied to a carbon 

credits index, which raised more than 

R$170 million. The Itaú Carbon Index 

Fund is designed for investors with a 

global investment portfolio in Unibanco 

or Itaú of at least R$300,000. This initiative 

shows that banks can act effectively in 

stimulating the development of this 

market and contribute towards combating 

climate change, using their expertise in 

the business. 

The creation of the Itaú Carbon 

Index Fund increased the portfolio of 

products which reflect our concern for 

global warming. Launched in 2007, the 

Itaú Eco-change funds also contribute to 

environmental conservation by allocating 

30% of their management fees to carbon 

emission reduction projects developed by 

non-governmental organizations (NGOs). 

In November 2009 we launched the Rio 

Wind Fund, making reference to the 

Olympics and the Soccer World Cup. 

Investors were found in Japan through 

Daiwa Asset Management. In just over 

30 days this new investment opportunity 

raised about R$2 billion from Japanese 

investors seeking a fund consisting of 

shares in Brazilian companies. 

In 2009 Unibanco Asset Management 

followed the Principles for Responsible 

Investment (PRI), which is an initiative 

of a group of 20 institutional investors 

from 12 countries that have accepted 

the UN’s 2005 challenge to develop 

the PRI principles, including several 

new themes. These principles cover 

environmental, social and governance 

criteria and provide a benchmark for 

achieving better returns on long-term 

investments and more sustainable 

capital markets. 

Itaú Social Excellence Fund 

Invests in companies that have differentiated 

social responsibility practices. Allocates 50% 

of management fees to social projects. 

Value: R$365 million 

2008: R$242.9 million 

Corporate Governance Fund 

Invests in companies that have differentiated 

corporate governance practices. 


2008: R$278.9 million 

Ecomudança (Eco-change) Fund 

Allocates 30% of management fees to support 

actions which reduce carbon emissions. 


2008: R$135.3 million 

Private Social Fund 

Donates part of its earnings to educational 

and vocational-related social projects. 

Value: R$2.9 million 

2008: R$5.8 million 

Unibanco Sustainability Fund 

Invests in companies that are on the 

São Paulo Stock Exchange Corporate 

Sustainability Index (ISE). 

Value: R$6.8 million 

2008: R$3.4 million 

Itaú Carbon Index Fund 

Investment tied to a carbon credits 

index. Linked to global efforts to reduce 

greenhouse gas emissions. 



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Voting Policy for 

Investment Funds 

The Bank has created a policy for exercising 

voting rights in the portfolios of the 

investment funds managed by the institution. 

The goal is to establish requirements, 

principles and procedures that govern the 

company when voting at shareholders’ 

meetings as a representative of the 

investment funds under our management. 

The general principles of the voting policy 

include aspects related to the sustainability 

of the business, and are based on three 

pillars: act proactively on environmental 

preservation, social development and good 

corporate governance. 

Itaú Corretora 

In 2009 Itaú Corretora (the Bank’s 

securities brokerage arm) consolidated 

its position in the Brazilian capital market 

and prepared its expansion into the 

international market. The integration of 

operations was fully consolidated by the 

end of the year, giving it the necessary 

conditions to seize on the opportunities 

of Brazil’s growing economy. 

To achieve the goal of being the leading 

Brazil specialist, offering high-quality 

analysis and one of the market’s largest 

distribution capacities, Itaú Corretora 

conducted major investments and 

increased its presence in the international 

market. It has an office in London and a 

presence in Dubai and Hong Kong, while 

the New York office, located on Fifth 

Avenue, should open in 2010. 

Itaú Corretora’s biggest challenge will 

be to adopt internationally recognized 

practices to attract investors from around 

the world who seek to invest in stock 

markets in Brazil, Latin America and 

emerging markets in general. One way to 

create value for these investors is the use 

of advanced technology that allows for 

electronic or algorithmic trading, in which 

buy and sell orders are done by computer, 

making operations more efficient. 

Together with Itaú BBA, Itaú Corretora 

also participates actively in various IPOs 

and bond issues. Its goal is to become 

Latin America’s leading specialist in its 

field by 2011. 


Institutional Clients 

Brazil’s positive international image as one of the 

most promising investments among emerging 

countries has also helped our standing in the 

foreign market. The institutional client sector 

ended the year with 1,538 active accounts (65% 

Brazilian and 35% foreign) and revenues of 

R$618 million. We manage R$98 billion in assets, 

R$18 billion of which comes from clients abroad. 

Our segmentation strategy mirrors that of the 

world’s largest banks and creates a competitive 

edge for the local market. In the fourth quarter 

of 2009, taking advantage of synergies and to 

optimize relationships, Brazilian and foreign 

customers began to be serviced within the 

same organizational structure. 

Private Bank 

Itaú Unibanco’s Private Bank operations, 

which manage the assets of high net worth 

individuals, were organized into local and 

international structures in 2009. This measure 

allows greater transparency and agility in 

asset management, a key differential in light 

of Brazil’s economic recovery. 

During the year we were named Outstanding 

Private Bank - Latin America by the Private Banker 

International magazine, which is considered the 

world’s most important award in the wealth 

management sector. With more than R$90 billion 

in assets, we are the private banking leader in 

Brazil and Latin America according to Private 

Banker International, and a standard of excellence 

for financial managers the world over. 

Our operations in the United States, 

headquartered in Miami, consolidate our 

internationalization strategy. Acquisitions 

of private banking operations in 2007 from 

BankBoston International in Miami; from 

BankBoston Trust Company Limited in Nassau; 

and from ABN AMRO Bank N.V. in Miami and 

Montevideo were important business additions 

and crucial toward Itaú Private Bank becoming 

one of the leaders in the region. 

Many of the 9,000 clients we gained through 

the acquisition of BankBoston and ABN AMRO 

operations come from other Latin American 

countries, including Argentina, Chile, Uruguay and 

Venezuela. To care for their needs in the form of 

information and orientation, Itaú Private Bank has 

created specialized structures in these countries. 


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International Market 

In the midst of a global economic crisis, 

the merging of Itaú and Unibanco created 

an institution which today occupies a 

prominent position in the international 

market. The Bank, which is preparing to act 

as a global player, is among the ten largest 

financial institutions in the world, based on 

rankings by the US firm Bloomberg. 

Our international presence and strength 

are demonstrated by a broad network of 

overseas operations, which allows us to 

offer quality support to Brazilian companies 

operating in other countries. It is also clear 

evidence that we are a company with 

global objectives. 

We have built our international presence 

based on strategically positioned units 

in the Americas, Europe and Asia, which 

work together in the areas of foreign trade 

finance, the placement of Eurobonds, 

offers of more sophisticated financial 

operations (structured notes) and private 

banking operations through Banco Itaú 

Europa Luxembourg. 

We operate in New York, Grand Cayman, 

Nassau, Lisbon, Madeira, London, 

Luxembourg and Miami. In Asia, where our 

presence has grown each year, we work 

through Itaú Corretora in Singapore, Hong 

Kong and Tokyo. Itaú Corretora was also 

the first brokerage firm from a BRIC (Brazil, 

Russia, India and China) country to open an 

operations base in Japan. 

Banco Itaú Europa 

Banco Itaú Europa (BIE), headquartered in 

Lisbon, posted net income of €36.6 million 

in 2009, a result 86.8% above the figure 

registered for 2008. The consolidated banking 

product reached €135.6 million, up 12.6% in 

the period. 

BIE is involved in allocating and distributing 

structured finance to corporate clients, 

capital markets, treasury and international 

private banking. At December 31, 2009 

the Bank registered consolidated assets of 

nearly €5.1 billion, in line with the amounts 

of December 2008. 


US$56 billion 

was the sum of Itaú Unibanco’s asset operations 

abroad in 2009. 

Brazilians overseas can easily 

send remittances and access their 

accounts in Brazil. 

Its commercial loan portfolio reached €2.1 

billion, and is backed by an asset composition 

primarily consisting of structured loans 

typically associated with the financing of 

Brazilian exports. In this context BIE operates 

in line with the dynamic of the Itaú Group’s 

market segmentation structure, increasing 

its corporate and middle market client base 

by offering products specifically structured 

for the international marketplace and capital 

markets, and supporting investments by 

European companies in Brazil. 

BIE’s international private banking activity, 

developed by BIE Luxembourg, BIE International 

(Miami) and BIE-Bank & Trust (Bahamas), had 

nearly US$10 billion in managed assets and 

approximately US$2.3 billion in customer 

deposits at year-end. 

BIE currently has branches in London and 

on the island of Madeira, with permanent 

representatives in Madrid, Paris and Frankfurt, 

as well as subsidiaries in the Cayman Islands, 

Luxembourg, Miami and Nassau. 

Southern Cone 

Our internationalization strategy begins 

in Latin America, where we offer a 

network of 188 branches located in 

Argentina (81), Chile (70), Paraguay (19) 

and Uruguay (18). In all there are 4,800 

employees to serve nearly 700,000 

clients, with assets of R$18 billion. 

Profits earned by operations in the 

region have grown steadily from R$87 

million in 2005 to R$177 million in 2009. 

Among public and privately-owned 

banks, Itaú Unibanco is fourth largest 

in Uruguay and Paraguay, ninth in Chile 

and sixteenth in Argentina. 

At all our branches we focus on 

increased earnings and better 

operational efficiency. The Latin 

American operations also function as 

test laboratories for our advance on 

the international market. Accordingly, 

specially-skilled employees have been 

hired in Brazil and abroad, and are being 

trained to implement the concept of 

international culture that is starting to 

grow within the Organization. 

The objective for 2010 is to become 

the leader in Latin America’s financial 

market. To achieve this we have been 

concentrating our efforts on aligning our 

culture with all the other countries in the 

region, a project that involves key areas 

of the Bank, including Human Resources, 

Sustainability Policies and Corporative 

Governance. 

Argentina 

Banco Itaú Argentina (BIA) will receive 

investments of U$20 million in 2010, sufficient for 

the Bank to help it become the leading financial 

institution in Argentina, where we have been 

present for 15 years. These investments are to be 

made in the area of Information Technology and 

on professional training courses. 

BIA had a network of 81 branches at the end of 

the year. The number of clients increased by 7%, 

reaching a total of 250,000 individual account 

holders and 7,800 business accounts, while total 

assets reached R$2.1 billion. It also posted a 

R$1.1 billion credit portfolio, R$1.6 billion in 

deposits and R$10 million in net income. 


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Interbanco branch, Paraguay. 

Chile 

We plan to open ten new branches in 

Chile in 2010, taking advantage of the 

recovery of the local economy and the 

prestige that we are building each day, 

demonstrated by being named the Best 

Brazilian Company in Chile by the Brazil- 

Chile Chamber of Commerce. 

Interbanco has the country’s largest 

number of customers, which it segments, 

and is the leader in the supply of products 

and services. The client portfolio has 

grown 13%, totalling approximately 

220,000 consumer clients and 2,400 

corporate clients, who are served from 25 

branches and banking services outlets. 

At the end of 2009, 70 branches were 

operating in Chile. The increased number 

of clients during the year was due 

to organic growth. Consumer clients 

increased 6% to nearly 85,000, while total 

assets reached R$10.7 billion. 

The credit portfolio was R$7.7 billion, deposits 

totalled R$7 billion and net income was 

R$95 million. 

Paraguay 

We operate in Paraguay through 

Interbanco, which is the country’s fourth 

largest bank. In 2009 it was named by the 

British magazine Euromoney as the Best 

Bank in Paraguay, and in 2007, 2008 and 

2009 was named by the Global Finance 

magazine as the country’s Best Bank. 

At the end of 2009 local operations reached 

R$1.9 billion in assets. The credit portfolio was 

R$900 million, deposits were R$1.6 billion and 

net income totalled R$91 million. 

Uruguay 

We operate in Uruguay through Banco Itaú 

Uruguay, which ended 2009 with 

R$3 billion in assets, and a R$1.2 billion 

credit portfolio. Deposits reached R$2.3 

billion, thanks to a 12% rise in the 

customer base, which comprises 120,000 

consumer clients and 9,000 corporate 

clients, who are served from 18 branches. 

Through Banco Itaú Uruguay we own 100% 

of Unión Capital Afap, a Uruguayan private 

pension company with approximately 195,000 

customers and US$858 million in assets under 


10 new 

branches will be opened in Chile. 

175,000 

people in Uruguay are Bank 

pension customers. 

administration, equal to 17% of all pension 

fund assets in Uruguay. 

Asian Continent 

We are active in Asia through the operations 

of Itaú Corretora, which has offices in Hong 

Kong, Tokyo and Singapore. We were the 

first securities dealer from a BRIC (Brazil, 

Russia, India and China) country to establish 

an operational base in Japan. In the Asian 

market our financial activities are focused on 

sourcing Japanese institutions to invest in 

Brazilian assets. 

This scenario points to an influx of 

foreign money into Brazil, so establishing 

international partnerships in this segment is 

vital for the success of the business. 

We began investing in Japan in 2006. 

Since then our operations have posted 

significant growth. We currently manage 

R$40 million in Brazilian and Latin 

American fixed income and equity funds, 

which benefit from our management or 

advisory capacities in partnership with 

Japanese asset managers. 

LEARN MORE: 

Read about all the actions undertaken by the 

Garantech Sustainable Warranty program by 

visiting www.garantech.com.br 

Learn about the Bank’s main sustainabilityrelated 

credit lines in the online version of this 

Report at www.itauunibanco.com.br/ 


For Itaú Unibanco, Asia represents a priority 

market that has required investments geared 

primarily to sourcing and securing Asian 

customers with considerable interest in Brazil, 

as shown by the huge demand for our Rio 

Wind fund, launched in November. 

In 2010 we expect our relationship with 

investors on the Asian continent will 

increase due to the likelihood of significant 

investments in Brazilian infrastructure in 

coming years, offshore oil exploration in 

the ‘pre-salt’ layer and the hosting of the 

Soccer World Cup and Olympic Games. 


Relationships 

• Employees 

• Customers 

• Shareholders 

• Suppliers 

• Media and Public Relations 

• Environment 

Transparency and Ethical Conduct 

2009 marked the beginning of building a new culture in the Organization. This challenge 

requires us to combine the values of Itaú and Unibanco, which historically have always 

maintained a common thread: seeking transparent, ethical and lasting relationships with 

their many stakeholders + . 

To incorporate stakeholder engagement into our management strategy through an 

internationally recognized methodology, in 2006 we adopted and continue to follow 

the guidelines of AccountAbility standard 1000 (AA1000) + . 

The main groups with whom we engage, as mentioned in our Sustainability Policy, are clients, employees, 

shareholders, investors, suppliers, business partners and the general public. The dynamics and goals of the 

business areas determine the development of projects to improve and meet the demands of all these groups, 

which are gradually integrated into our practices and become part of our culture. 

In 2009 we conducted research on our relationship with stakeholders, in conjunction with the UK consultancy firm 

AccountAbility. One of the main findings of this analysis concerns the need for engagement to develop a strategic 

tool to achieve sustainability-related goals, based on ideals aligned with our priorities. Their recommendation is 

that opportunities be created for stakeholders to influence the adoption of initiatives, which, if undertaken as 

strategic goals of the Organization, will strengthen our commitment to sustainability. 

In tandem with this analysis, Stakeholder Panels were held in 2009 to advance the development of those issues 

of greatest importance to the Bank, from the perspective of our different relationship groups. These meetings 

resulted in further information for our sustainability strategy, as well as for training and involvement projects 

developed by the Commission and by the Sustainability Leaders. The events also allowed us to hear the opinions 

of different stakeholders regarding the Organization's practices and their expectations for Bank performance, 

based on the Essence of Sustainability, which was included in the 2008 Sustainability Report. 

These perceptions must be consolidated and incorporated into the process of improving our products and 

services as well as into our own strategy. Additionally, the results of the panels will be used as a basis for planning 

in 2010, when the Policy and Essence of Sustainability will be re-evaluated in light of all these considerations, to 

consolidate our sustainability strategy. 


In this Chapter 

Itaú Unibanco’s practices with its strategic relationship groups. 

• The characteristics of each profile 

• Engagement initiatives 

• New management programs 

• People management guidelines 

In Essence 

Stakeholder Engagement 

As part of our integrated, 

comprehensive strategy to mobilize 

our different relationship groups and 

create awareness among them... 

...we held Stakeholder Panels, created the Clients Forum 

and extended the powers of the Ombudsman. We also 

maintain a website for communication with suppliers, 

held sustainability meetings with various public groups 

and created the Itaú Sustainable Finance Award. 



• Employees 

• Customers 


• Suppliers 



Employees 

Our Greatest Asset 

One of our major concerns in 2009 was to 

ensure that the process of consolidating 

Itaú and Unibanco had the backing and 

support of our employees, and that right 

from the start it be based on best people 

management practices. Accordingly, 

we have created a specific work group 

under the responsibility of the People 

Committee, which reports directly to the 

Board of Directors. This group has the 

challenge of promoting the consolidation 

of a new corporate culture, which has at 

its foundation the values and principles of 

each of the two institutions that became 

Itaú Unibanco. 

In 2009 we were able to progress with the 

engagement of most of our employees 

in the integration process. This work 

consisted of identifying a set of goals and 

values which reflected the best aspects of 

each bank and how they could be applied 

to the new Organization, as well as what 

could function collectively. This body of 

principles and goals was turned into our 

new Vision, which has been disseminated 

through communication campaigns and 

training and development programs. 

A sign that we are on the right track 

lies in the fact that in 2009, during the 

first year of integrated operations, we 

were named by the Great Place to Work 

Institute as one the Best Companies to 

Work for in Brazil, in partnership with 

Época magazine, the University of São 

Paulo (FIA-USP) Fundação Instituto de 

Administração (FIA), and Exame and Você 

S/A magazines. 

During the year we implemented a new, 

unified and simplified Objectives System 

designed to achieve greater alignment and 

commitment from every employee to help 

us attain our results. We also introduced a 

new labour benefits package. 


101,640 

employees were on the Bank’s 

payroll at the end of 2009. 

Itaú Holding Unibanco S.A. Employee Categories, by Function 

2008 2009 

Management 

(Supervisors, Managers and Coordinators) 

14,848 14,998 

Administration (Junior, Line and Senior) 50,160 53,224 

Trainees 178 200 

Production (non-commissioned) 42,841 33,218 

Subtotal (*) 108,027 101,640 

Board 48 18 

Executive Officers 198 194 

Interns 1,350 1,048 

Apprentices 2,371 1,794 

Total 111,994 104,694 

(*) 

IncludesstaffwithaCLTcontractandatexternalunits. 

Sustainability Policy 

In 2009 fixed remuneration for staff, plus their 

respective charges and benefits, totalled R$8.6 

billion, while social benefits for employees 

and their dependents reached the equivalent 

of R$1.5 billion. Additionally, we invested 

R$117 million in advancement, training and 

development programs. 

In 2008 we introduced SA8000, an 

international standard recognized worldwide 

and the most applicable to our work 

environment. However, in the midst of 

changes arising from the merger of Itaú and 

Unibanco, plus the renovation of buildings 

and branches, which also required employees 

to change their work locations, the process 

was temporarily put on hold, but should be 

resumed in 2010. 

The Sustainability Policy contains the 

following guidelines for our employees, 

who are a strategic relationship group: 

• promote an inclusive workplace 

environment which values diversity 

and equality; 

• develop education programs and 

awareness of sustainability for all 

managers and employees; 

• apply sustainability criteria to the selection, 

hiring, promotion and dismissal of staff, as 

well as during the evaluation of results and 

remuneration; 

• ensure adequate working conditions and the 

well-being of employees by complying with 

occupational health and safety standards; and 

• encourage the responsible use of financial 

services through financial education. 



Employees 

• Employees 

• Customers 


• Suppliers 



Employees 

ItaúUnibancoHoldingEmployees,byRegionand 

ExternalUnits. 

2008 

9,301 

South 

Career 

2009 

8,682 

South 

2008 

3,911 

Midwest 

2009 

3,656 

Midwest 

2008 

1.188 

North 

2009 

976 

North 

2008 

6.228 

Northeast 

2009 

5,798 

Northeast 

* 

Externalunitshad5,400employees 

atDecember31,2009. 

2008 

82,021 * 

Southeast 

* Revised 

2009 

77,128 

Southeast 

Attraction and Retention 

We seek to ensure, in our daily activities, an 

attractive working environment by adopting 

management practices geared to stimulating 

the exchange of ideas, teamwork, transparency, 

creativity and meritocracy. 

We spare no efforts to retain talented 

individuals. One of the most important projects 

developed in 2009 was the People Relocation 

Program (PRP), which is designed to create 

career opportunities for the largest possible 

number of employees. To-date more than 

2,300 experienced employees, who had priority 

within internal selection processes, have been 

relocated. 

To develop and maintain our employees and 

attract new candidates, we reformulated our 

internal and external recruitment programs to 

adopt best market practices and simultaneously 

align the desired results with our business 

strategy. 

Career Opportunities Program (POC) 

This program allows employees to take 

advantage of job opportunities that arise in the 

Organization. 

Trainee Program 

With the support of mentors and executives, we 

give trainees the opportunity to work in several 

areas of the Bank. In 2009 we registered a record 

34,287 applicants, of which 87 candidates were 

hired from 487 finalists. 

Corporate Internship Program 

Lasting up to two years, this program allows 

students to complement their academic studies 

by working in various areas of the Organization. 

Special Talent Programs 

To attract professionals from leading schools to 

our trainee, training and internship programs, 

we participated in nine events at Brazilian 

universities and also promoted seven events at 

universities in the U.S. and Europe during 2009. 

International Internship Program 

We hire interns from international universities 

every six months in order to offer students the 

opportunity to develop projects in our business 

areas. In 2009, two interns who worked on 

projects in the Wealth Management & Services 

area were hired from the United States. 


200 trainees 

were working in different areas of the Organization at the end of 2009. 

Hiring the Disabled program. 

A commitment to diversity. 

Summer Job Program 

This program is for students who live outside the 

city of São Paulo and do not have the time to 

invest in an internship during the school year. 

Development and Training 

With the challenge of making the merger 

between Itaú and Unibanco successful, one 

of the strategic priorities for development and 

training of staff is the search for alternatives 

so that teams are better prepared to face the 

challenges inherent to a new Organization. 

Accordingly, a Business School was inaugurated 

in 2009, whose main task is to propagate values 

and guidelines for business, based on our new 

corporate culture and by focusing on training 

employees in the areas of business and the 

development of new leaders. 

During 2009 the Business School ran a Strategic 

Management and Business program for senior 

executives, with modules covering issues such 

as strategic thought, change management and 

coaching. Leaders of business units located 

outside of Brazil also participated in the initiative, 

as a way to ensure that the targets set for 

successful integration are achieved in every area 

where we operate. 

Training activities carried out during 2009 

included: 

Corporate 

Approximately R$95 million was invested in 

training programs for employees in 2009. 

Activities included training courses and 

distance learning. 

Specifics 

A total of 30,557 employees participated 

in specific training for business, support, 

infrastructure and administration. 

Graduation 

A total of 4,399 employees participated 

in academic studies or development 

programs including undergraduate courses, 

graduate studies, MBA (in-company), 

foreign language classes and Masters 

degrees (including abroad). 

Anbima (formerly Anbid) 

In 2009 more than 2,900 employees were 

certified by the Brazilian Association of 

Financial and Capital Markets Institutions, 

which entitles them to begin or specialize in 

this industry as a career. 

Afro-Brazilians 

The Afro-Brazilian Training program is a social 

inclusion initiative created in 2005 with the 

main objective of hiring young black university 

students. To support the program, a training 

schedule was developed with 584 hours per 

student, covering behavioural issues and 

specifications of the banking industry. In 2009, 

64 students took part. 

Training of People with Disabilities 

In 2009 more than 25,000 employees 

participated in training courses to learn how 

to serve people with disabilities, including 

training programs with certification in Brazilian 

Sign Language. Another 116 employees with 

disabilities participated in special training 

sessions that specifically addressed behavioural 

issues and themes such as communication and 

safety. These courses provided a total of 40,000 

hours of training. 



Employees 

• Employees 

• Customers 


• Suppliers 



Investments in training motivate 

employees and make us more 

competitive. 

Training 

AverageHoursofTraining,perEmployee. 

2008 

9.33 

Executive 

2009 

4.70 

Executive 

2008 

20.97 

Management 

2008 

15.62 

Production 

2009 

24.76 

Management 

2008 

21.37 

Administration 

2009 

23.02 

Administration 

2009 

15.45 

Production 

Performance and Feedback 

Through individual tools such as coaching + , 

mentoring + and assessment + , we support 

leaders in the development of their skills, 

abilities and attitudes, with the goal of 

accelerating learning, consolidating their 

professional roles and promoting business 

sustainability. 

In 2009 we developed a new and unique model 

for performance evaluation: the Itaú Unibanco 

System of Performance Goals. The objective 

is to simplify the evaluation of employee 

performance by offering them continuous 

orientation, while the challenge is to achieve 

results and encourage high performance from 

our employees. 

With the adoption of the Itaú Unibanco 

System of Performance Goals, all employees 

now participate in a performance evaluation 

process. Out of a total of 93,168 employees, 

approximately 35,000 are covered by the new 

methodology, while the rest are evaluated 

by means of goals programs that address the 

specific nature of their area or business. In 2009 

we also created Strategic Planning for People 

(PEP), which consists of a structured process 

for objectively identifying talents, based on 

a survey and analysis of performance results 

and professional attitudes of regional managers 

of international units, executive officers and 

directors. In its first stage all vice presidents and 

executive directors participated in the process, 

which evaluated a group of 116 leaders. 

Remuneration 

In 2009 every employee became eligible for 

performance-related profit sharing. In the 

evaluation process, conducted from December 

2009 to January 2010, the goals were evaluated 

and the best performances of the year were 

presented to human resources committees. The 

best performances are recognized by means 

of the Compensation for High Performance 

Program. This initiative seeks to ensure the 

practice of meritocracy by acknowledging 

professionals who overcome challenges and 

show their commitment to our strategic 

objectives. 


Occupational Health and Safety Indicators 

Wellness 

To maintain a healthy environment for our 

employees, we invest in the adoption of new 

benefits and initiatives that preserve workplace 

health and safety and promote quality of life. 

New Benefits 

In October 2009 we announced a new increased 

benefits package. Aligned with the integration 

process, the design sought to harmonize and 

readjust various practices, identify best opportunities 

for synergy and consolidate them fairly to 

offer differentiated benefits to employees. The 

innovations we adopted include: charging special 

banking fees, pension funds, membership in the 

Itaú Unibanco Club, the Be OK personal support 

program, life insurance and various partnerships 

with companies offering unique advantages to 

every Bank employee. 

We also offered to employees a new medical 

insurance plan, with new terms for operating and 

tracking, so now everyone has access to better 

standards of medical and dental care provided by a 

wide, accredited network which includes the best 

Injuries 2008 2009 

Total cases 801 1,052 

Hours worked 261,000,301 254,835,692 

Injury rate 0.61 0.83 

Work-related 

Illness 

2008 2009 

Total cases 632 798 

Hours worked 261,000,301 254,835,692 

Illness rate 0.48 0.62 

Work days lost 2008 2009 

Total days 324,951 371,852 

Hours worked 261,000,301 254,835,692 

Days lost rate 249.00 291.84 

Absenteeism 2008 2009 

Work days lost 103,153 128,075 

Days worked in 

same period 

12,535,638 13,639,975 

Absence rate 0.82 0.94 

Note:in2009therewasasignificantincreaseinabsenteeismcausedbyrespiratorydiseasesduetothespreadoftheH1N1virus.The 

highestpercentageofabsenteeismwascausedbymuscle,boneandconnectivetissuediseases(23.3%),followedbyinstancesof 

mentalandbehaviouraldisorders(14%).However,thesesamegroupsofdisordersremainedstablebetween2007and2009. 

(*) 

Companiescovered:Grupo Itaú –BancoItaúS.A.,ItaúCorretoradeValoresS.A.,ItaúPrevidênciaeSegurosS.A.,ItaúLeasing,BancoFiatS.A, 

BancoItaúHoldingFinanceiraS.A,Isar–ItaúSeguroseResidência,FinanceiraItaúCDBCréd.Financ.eInvest.,FináustriaAsses.Adm.EServs. 

Créd.,BancoItaucredFinanciamentosS.A.,FinaPromoçãoeServiçosS.A.,BancoFiatS.A.,TrishopPromoçãoeServiçosLtda.,FicPromotorade 

VendasLtda.,Facilita,Fai,BancoItaúCartões,TotalServiçosPromoçãoeNegóciosLtda.,ItaúSegurosS.A.,ItausegSaúdeS.A.,OrbitallServs. 

Proces.InformaçõesCom.Ltda.,ItaúAdm.ConsórcioItaúSegurosS.A.,Kinea,BancoItaucardS.A.,IcarrosLtda.,Dtvm,Pró-ImóveleItaúXlSeguros 

CorporativosS.A.Grupo Unibanco–Unibanco-UniãodeBancosBrasileirosS.A.,MegabonusNegóciosVarejoLtda.,Uam–AssessoriaeGestãode 

InvestLtda.,ItaúSegurosS.A.(formerlyUnibancoAigSegurosS/A),Cia.ItaúdeCapitalização(formerlyUnibancoCia.deCapitalização),Banorte, 

UnibancoServiçosdeInvestimentoLtda.,HipercardBancoMúltiploS.A.,MarcepCorretagemdeSegurosLtda.,UnibancoAigSaúdeSeguradoraS/A, 

LuizacredSASoc.deCréd.Fin.Invest.,ProvarNegóciosdeVarejoLtda.,UnicardBancoMúltiploSA(75),InvestshopCorret.Val.Mob.C/SA,Unicard 

BancoMúltiploSA(80),UnibancoAigVidaePrevidenciaS/A,UnibancoProj.eConsult.deInvest.Ltda.,Prom.deVen.ePre.deSer.Ltda.,Unibanco 

ConsultoriadeInvest.Ltda.,MaxFácilPromotoradeVendas,UnibancoCons.Invest.InvestLtda.,DibensLeasingS/A-ArrendamentoMercantil. 

+ Coaching – training activity for professional development. 

Mentoring – monitoring the activities of employees by a tutor. 

Assessment – methodology used to evaluate the skills of employees. 



Employees 

• Employees 

• Customers 


• Suppliers 



Workplace Environment 

doctors, hospitals and clinics. All benefits 

are extended to legal dependents and 

household members. 

Quality of Life, Health 

and Safety at Work 

In terms of health and quality of life, Itaú 

Unibanco provides numerous activities for 

recreation, culture and health, including: walking, 

massage, fitness, nutrition education, a library, 

sports, choir, pre-retirement programs, sexually 

transmitted disease (STD/AIDS) prevention, 

vaccination against HPV and influenza, antihypertension 

and stress (Body and Mind Space), 

medical care, nutrition for pregnant women and 

many others. Programs specifically for health 

include the Personal Support Program, Be OK, 

Health Time, Stop Smoking Program, Vocal Health 

Program, the Support Program for Returning to 

Work, Rehabilitation Training and the Women’s 

Health Program. 

In the safety area the main theme developed in 

2009 was safety at work, at home and at leisure, 

with the aim of encouraging preventative habits 

and greater awareness in different everyday 

situations. 

With innovative processes and a set of actions 

oriented towards the construction of collective 

goals, during the first year of the merger we strove 

to maintain an attractive and stimulating working 

environment for all our employees. 

Organizational Culture 

In January 2009 we concluded the planning for 

an analysis of the corporate culture which has 

resulted from the merger of Itaú and Unibanco. 

The aim is to develop a work plan to consolidate 

the Organization’s new practices. In the following 

months the analysis was carried out, which 

included a quantitative stage (cultural survey 

and Values survey), involving approximately 

16,000 people, and a qualitative stage, with 

interviews (about 70) and focus groups (with 

90 executives and 240 managers) (For more 

information on our new culture, see the Profile 


Speak Frankly 

The Speak Frankly survey was implemented 

in 2009 and given to all our employees. It 

is the main tool to supply managers and 

senior management with information on the 

organizational climate of each area and the 

Bank as a whole, revealing positive points and 

areas where we need to improve. The results 

help us take the actions necessary to ensure 

the continuous improvement of processes of 

people management and satisfaction levels 

of employees. In this case, 79% of employees 

participated in the quantitative survey. In 

2010, in the qualitative stage, the project will 

continue with the dissemination of results and 

development of action plans. Managers will 

receive contributions from working groups 

and a practical guide to assist in the analysis of 

results and in building action plans. 

Sustainable Ideas 

Introduced in March 2009, the Sustainable Ideas 

Bank was created to encourage employees to 

reflect on the theme of sustainability and make 

suggestions that could be adopted by the Bank. 

As well as putting into practice the winning 

suggestions, the intention is to compose a 

virtual bank of ideas for consultation and future 

implementation. In its first year the Sustainable 

Ideas Bank received more than 1,300 

suggestions. Each employee can submit one or 

more ideas in three categories: eco-efficiency, 

sustainable finance and strategic relationships 

(stakeholders). 


Through the Sustainable Ideas Bank, employees from 

every area of the Organization can submit suggestions 

for innovations and improvements. 

Staff dining area at the Itaú 

Unibanco Tatuapé Administrative 

Centre, São Paulo. 

Through the Sustainable Ideas Bank, which 

runs annually, employees from every area of 

the Organization can offer suggestions for 

innovations and ways to improve. All ideas are 

evaluated at three levels, including by employees 

who work in areas related to the topic discussed. 

Employees who have ideas worth reviewing 

receive feedback, and the winners receive 

trophies, travel tickets and dinners. 

Walther Moreira Salles Award 

For recognition within the workforce, the 

Walther Moreira Salles Award recognizes 

different initiatives by employees. In 2009 

five categories were included: Efficiency, 

Quality, Innovation, Sustainability and People 

Management. Winners receive shares in the 

company and have their idea publicized. 

In 2009, 396 projects were submitted. The 

Award ceremony will be held in April 2010 at 

Sala São Paulo in the downtown area of the 

city of São Paulo. 

Ombudsman 

To encourage an open and transparent work 

environment we rely on the Ombudsman, 

a service created to receive complaints, 

suggestions, questions and reports, as well as 

giving advice to those employees interested 

in the intervention of a third party to resolve 

professional issues. The role of the Ombudsman 

is guided by three principles: independence, 

confidentiality and neutrality. 

Confidentiality is an option offered to 

the employee when they contact the 

Ombudsman service - by phone, fax, e-mail, 

internal mail, voice mail or in person. When 

accessing the service, the staff member has 

the choice of identifying themselves, choosing 

a degree of anonymity or total confidentiality. 

Once the choice is made to remain 

anonymous, confidentiality is maintained 

throughout the process. The purpose is to 

protect the employee from unnecessary or 

unwanted exposure. 

Neutrality is essential so that the case can 

be treated independently, without value 

judgments or misconceptions. The objective 

is to understand what occurs and to help the 

people involved reach a solution to the conflict. 

Independence is important to ensure 

freedom of action, the transparency 

needed in the process and the right of 

the Ombudsman to contact any person at 

whatever level, for clarification or the solution 

of the issue submitted by the employee. 

The Ombudsman has a blog for employees 

to share corporate issues and those 

of general interest. Since its launch in 

September 2008, up to December 31, 2009 

there have been more than 47,500 visitors. In 

2009, with the merger of Itaú and Unibanco, 

the service was extended to all employees 

of the Organization. 



Employees 

• Employees 

• Customers 


• Suppliers 



Internal Communication 

We have over 100,000 employees in Brazil 

and abroad, who always strive to do more 

and to do it better. These people believe 

in our core values and are aware of the 

influence they have on society. They know 

they are helping generate income in Brazil 

and that they should always act ethically 

and transparently in their relationship with 

our clients, which leads to sustainable results 

for everyone. 

Internal communication plays a crucial 

role in developing these attitudes: not 

only through it, but also because of 

it, we can align objectives and share 

information and important factors which 

guarantee the commitment of everyone 

in achieving the goals and strategies of 

the Organization. Furthermore, internal 

communication is a vital component 

toward building an environment that is 

more cooperative and differentiated, in 

which people feel respected, involved 

and take pleasure in their work. 

In 2009 one of the most important 

internal communication initiatives was the 

disclosure of changes regarding the team 

integration process, which included a career 

opportunities program, a unique system of 

recruitment goals, a new benefits package 

and new facilities. The main objective was to 

help the integration process go as smoothly 

as possible. 

To carry out the internal communication 

actions, known as Endomarketing initiatives, 

we provide a number of electronic and print 

communication channels. Since the beginning 

of the merger process they have ensured 

speed and transparency in the daily flow of 

information about the changes resulting from 

the integration of our operations. 

Our internal communication channels and 

initiatives include: 

• Itaú Unibanco Magazine - a monthly 

publication distributed to all employees; 

• Integration Bulletin; 

• Messaging via e-mail marketing; 

• Unibanco Portal (intranet); 

• Visual displays in administrative buildings; and 

• Internal campaigns. 

Other Channels 

In addition to the direct actions of internal 

communication, there are channels for 

two-way communication for the relationship 

between staff members and the Organization: 

Resolve – the internal postal service created to 

address questions and complaints forwarded 

by employees or their friends and relatives. 

People Central – direct service channel for the 

People area. 

Unions and Associations 

We have a structured communication and 

relationship plan with trade unions, and 

operate in compliance with Conventions 87 

and 98 of the International Labour Organization 

(ILO), which ensures freedom of association, 

protection of the right to organize and the right 

to collective bargaining without interference 

from authorities. 

In 2009 we conducted a total of 88 meetings 

with leaders and members of various trade 

union groups, the staff commission, and retiree 

associations representing the employees of the 

Brazilian operations. Of the total employees we 

currently employ, 1,642 are union leaders and 

38,541 are union members. 


2,300 employees 

received priority when participating in internal 

selection processes. 

In Essence 

Diversity 

We believe that different life experiences 

stimulate the development of people and 

organizations. 

Equal opportunities for different 

professional profiles. 

With a commitment to promote an inclusive labour 

environment, which values and respects diversity, we 

conduct initiatives to support the right of access and 

use of banking services by the disabled, movements 

aimed to improve women’s health and to promote the 

educational development of Afro-Brazilians. 



Employees 

• Employees 

• Customers 


• Suppliers 



Currently, 4.2% of our 

employees are disabled. 

Society 

The search for balance between our people 

management practices and the demands of 

a society in constant transformation is part 

of the continuous development process of 

the Organization. 

Diversity 

The Corporate Diversity Program illustrates 

our commitment to inclusion and 

equal opportunities. The challenge is to 

promote an inclusive work environment 

with investments to attract and retain 

employees, and to encourage attitudes that 

respect their differences. 

Hiring the Disabled 

In 2008 we had 2,736 disabled staff 

members. In 2009, even with the 

temporary suspension of external hiring 

due to the merger of operations, we 

maintained our commitment to inclusion 

and fulfilled our goal of hiring individuals 

with disabilities. To-date, 4,018 disabled 

employees have been hired, which 

represents 4.2% of the workforce. 

Through the Hiring People with Disabilities 

Program, 1,127 people were employed in 

2009. For 2010 the goal is to ensure that at 

least 5% of the staff is comprised of disabled 

people and to continually invest in the 

awareness of managers and teams so the 

inclusion process is legitimate and contributes 

to the results expected by the Organization. 

Solidarity Games 

With the slogan “Together we do more 

and do it better” these Games enabled 

the collection of clothing and bedding 

through partnerships developed with 

Social Solidarity Funds, State Social Welfare 

Boards, NGOs plus Departments of Social 

Welfare and Human Rights in all Brazilian 

states. With the active participation of all 

employees, in 2009 donations totalled 65 

tonnes, with supplies going to charities in 

the cities where they were collected. We 

also donated blankets to the South and 

Southeast regions and bedding to the 

North, Northeast and Midwest. 


One of our challenges for 2010 is to complete 

the design of the new corporate culture, 

which will help us communicate better with all 

employees and leaders. 


2010 

Complete the integration process. 

Disseminate the new corporate culture. 

Improve the process of training leaders by implementing 

the Leadership Academy. 

Talent management focused on attraction, development and retention. 

Awards and Recognition in 2009 

During the first year of integrating the operations we won a number of important awards in 

recognition of our efforts: 

• We were named by the Great Place to Work Institute as one the Best Companies to Work 

for in Brazil, in partnership with Época magazine, the University of São Paulo (FIA-USP) 

Fundação Instituto de Administração (FIA), and Exame and Você S/A magazines; 

• Human Resources Managers from the Bank were chosen as among the Most Admired HR 

Managers in Brazil, by Gestão & RH magazine; and 

• We were chosen for the third time as one of the Dream Companies of Young People in a 

survey conducted by Cia. de Talentos and TNS. 

LEARN MORE: 

About our People Management programs and initiatives in the online version of this Report at 

www.itauunibanco.com.br/relatoriodesustentabilidade 



• Employees 

• Customers 


• Suppliers 



Customers 

Commitment to Satisfaction 

For us, quality service for our approximately 

40 million customers (account and nonaccount 

holders) has become paramount in 

maintaining long-term relationships guided 

by values such as respect, trust and obtaining 

the desired results. Continuous improvement 

of our products and services is one of the 

main objectives of corporate governance. 

It is part of our business strategy to ensure 

transparency in customer service for the 

different segments in which we operate, and 

seek the most appropriate solutions for each 

customer profile. 

Attentive Ears 

The Ombudsman is the avenue of recourse 

for customers that were not satisfied with the 

service received or solution provided by our 

conventional service channels like the Customer 

Service Centre (SAC) or Contact Us. 

The primary responsibilities of the Ombudsman 

are to identify the best solutions to our 

customer demands and suggest improvements 

to products, services and the quality of service 

provided by the customer relationship channel. 

It is also responsible for handling complaints 

from the Central Bank, the Consumer Protection 

Agency (Procon), the media and other 

consumer defence groups. 

Since the beginning of the unification of 

the activities of Itaú and Unibanco, the main 

challenge has been integrating customer 

service operations to ensure maximum 

efficiency in solving the problems that arise in 

daily operations. 

Joint Action 

In addition to helping mediate conflicts 

and identify improvement opportunities, 

the Ombudsman works in tandem with 

the Customer Service Excellence area, 

whose responsibilities include setting and 

monitoring indicators for delivery of services 

to customers and tracking improvement 

plans developed by the Organization. 

This integrated action also contributes to 

building an institutional agenda focused on 

reducing failures in service, products and 

services, improving the problem solution 

process and transparency in communication 

with customers. 

The integration of the Itaú and Unibanco 

Ombudsman areas was completed in the 


39.8 million 

customers use the Organization’s 

many products and services. 

Although the Ombudsman is the final 

avenue of recourse for customers, 

we also offer a number of other 

communication channels. 

second half of 2009. In the course of this 

process the best practices from both 

organizations were reviewed to ensure 

continuity and quality of customer service, 

as well as efficiency and speed in resolving 

their problems. 

Customer Service Governance 

With the objective of spreading the “customer 

vision” throughout the Organization, reducing 

the number of complaints and increasing 

the level of satisfaction, we established a 

model of governance for issues related to 

customer service that included introducing a 

dedicated customer service structure to every 

business area, with a view to facilitating the 

implementation of improvement plans. 

As part of the establishment of this 

model, two committees were created, 

coordinated by the Customer Service 

Excellence area: 

• Customer Service Excellence Committee - 

comprised of directors from the business 

and support areas, this committee has 

been meeting every two weeks since June 

2009 to discuss issues related to quality and 

customer satisfaction. The meetings seek to 

promote synergy among the areas, identify 

best practices in service delivery, spread the 

“customer view” and seek effective solutions for 

internal processes that impact on consumer 

satisfaction and on our image; and 

• Executive Service Excellence Committee 

- established in August 2009, its members 

are executives from the business areas who 

meet monthly to discuss action plans and the 

strategic direction. 

Satisfaction Goals 

Our institutional commitment to customer 

satisfaction was strengthened by setting quality 

related goals for the different departments of 

the Organization. The goals established consist 

of reduced customer complaints and increased 

customer satisfaction, measured by satisfaction 

surveys. 

In the analysis of complaints, transparency is 

vital in consumer relations, a theme which is 

strongly reinforced by our executives, who 

reaffirm our commitment to promoting an 

organizational culture guided by respect for 

consumers. 

Institutional 

Recognition Program 

Recognizing and promoting good practices 

by employees who oversee the quality of 

service we provide represents an opportunity 

for us to promote a culture of transparency 

and respect for the customer. 

Prior to the merger, Itaú and Unibanco 

had already encouraged such initiatives 

through recognition programs. In 2009, 

while still operating separately, Itaú’s Star 

Service program and Unibanco’s Value 

Attitude program each inspired the search 

for quality in service delivery, encouraging 

respect for customers. 



Customers 

• Employees 

• Customers 


• Suppliers 



In Essence 

Customer Satisfaction 

Each business area has its own 

service delivery structure. 

Customer satisfaction is an 

ongoing challenge for us. 

Listening to our customers through surveys, market 

research, customer forums and other channels of 

communication is a basic premise of the Organization, 

whose principal objectives include building 

transparent and long lasting relationships guided 

by trust and respect. 


Through the Customer Forum, we hear suggestions 

that can help us improve our operations. 

Customer Forum 

The Customer Forum is the result of a 

pioneering initiative created in 2005 by 

Unibanco. At Itaú the initiative began in 

October 2008 with the establishment of two 

groups from the personal banking (retail) 

segment. This is a key channel for us to have 

closer dialogue with customers and listen to 

their suggestions and criticism, allowing us to 

improve the quality of services and products 

offered by the Organization. 

The Forum has an annual term of office, and 

is comprised of persons selected from our 

customer base. 

During each term the customers are invited 

to participate in three or four meetings, 

where they can air their views directly to 

the executives responsible for the different 

business segments. 

Consumer Protection 

As the integration process has progressed we 

have sought the best ways for our groups to 

work together. As a result we created a new 

area: Relationship with the Consumer Protection 

System, which underlines our commitment to 

maintain respect for people. The main challenges 

with this initiative, which is unique in the financial 

services sector, are to establish constructive, 

objective and proactive relationships which allow 

consumer protection agencies, regulators and 

sector groups to be cognizant of our position, and 

to point out risk areas and suggest opportunities 

for us to improve. 

Following are the main consumer protection 

agencies with whom we interact. 

• Regulators – Central Bank of Brazil (BACEN), the 

Securities and Exchange Commission (CVM) and 

the Superintendent of Private Insurance (SUSEP), 

which regulate Brazil’s financial, insurance, 

pension and capitalization systems. 

• Consumer Protection agencies – Department 

of Justice, the courts, the Consumer 

Protection Agency, Prosecutors, Department 

of Consumer Defence (DPDC) and the Civil 

Entities of the National System of Consumer 

Protection and Defence. 

• Sector groups – Brazilian Federation of Banks 

(Febraban), National Federation of Private 

Insurance and Capitalization (Fenaseg) and the 

Brazilian Consórcios Administrators (ABAC). 

Our performance in 2009, as analyzed and 

ranked by the Central Bank of Brazil and the 

Consumer Protection Agency, shows that 

ITAÚ IN THE 2009 CENTRAL BANK COMPLAINTS RANKING 

Number of complaints 

Jan * 

Feb * 

Mar 

Apr 

May 

Jun 

Jul 

Aug 

Sep 124 

Oct 

151 

Nov 75 

Dec 85 

256 

205 

248 

207 

303 

this decision was correct, as it allows us to 

identify customer demands more quickly 

and thus implement improvements to meet 

these demands. It also further enabled us 

to strengthen the partnership between the 

Organization and other consumer protection 

groups in order to ensure customer satisfaction. 

In December 2009 the Ministry of Justice 

issued its annual ranking of companies that 

had received the most complaints through 

Consumer Protection agencies affiliated with 

the National Consumer Defence System 

(Sindec). The financial sector (banks, card 

companies and lenders) ranked second in 

complaints, second only to telephone utilities. 

Despite the efforts of its employees, Itaú led the 

complaints in the banking sector, which lets 

us know the size of the challenge we have to 

overcome and encourages us to expand and 

strengthen our customer satisfaction initiatives. 

365 

410 

(*) In January and February the banks appear individually in the list; the ranking refers to Itaú, as during this 

period Unibanco was not on the list. 

630 

Ranking 

3 rd 

2 rd 

2 rd 

2 rd 

3 rd 

1 st 

1 st 

1 st 

1 st 

1 st 

3 rd 

1 st 



Customers 

• Employees 

• Customers 


• Suppliers 



To demonstrate our commitment to 

respect consumers, we have taken on the 

goal of an 8.9% decrease in the number of 

complaints to Consumer Protection agencies 

affiliated with the National Consumer Defence 

System, increase the number of issues resolved 

at first contact to 70%, and achieve the same 

percentage in progress for consumer service in 

conciliation hearings. 

The monthly ranking of complaints to the 

Central Bank also represents an important 

customer relationship management parameter 

and enables the identification of possible points 

for improvement. This year we figured among 

the three first places in all the lists published. 

In 2008 Itaú was absent in ten editions, while 

Unibanco was absent in four. 

During the year several working meetings were 

held around the country with representatives 

of the consumer defence system. This attention 

to the demands of customers led us to develop 

a new model of credit card bill - one of the 

products that caused the most complaints - 

which better addresses the needs of customers 

in terms of visualization and understanding of 

the information contained. The new bill will be 

implemented in 2010. 

In Rio de Janeiro a partnership between 

Itaú and the State Public Defender’s 

Office has allowed the development of a 

consumer service model whose processes 

allow more than 80% of the cases to be 

concluded with agreements. 

Valued Relationship 

In another pioneering initiative, in October 

2009 we created the Relationship Adviser 

office, which has the autonomy to establish a 

dedicated, direct relationship with consumer 

protection groups. The relationship Adviser 

acts in the 11 cities with the greatest number 

of demands sent to the Organization 

through these groups: Belo Horizonte, 

Brasília, Campinas, Curitiba, Fortaleza, 

Guarulhos, Goiânia, Recife, Rio de Janeiro, 

Salvador and São Paulo. 

In addition to strengthening the relationship 

with the local consumer protection agency 

and other consumer protection groups, 

the Adviser seeks to reduce the number of 

complaints, eliminate the conciliation hearings 

and identify opportunities for improvements 

in customer service. This Adviser has a 

corporate role, and represents all Bank 

companies at the local level. 


Education and Sustainability 

To celebrate World Consumer Day, on March 15, 

2009 we organized Consumer Week, with the 

goal of educating customers, employees and 

other relationship groups on the responsible 

use of money and consumption. This initiative 

is in keeping with the “financial education” 

theme, which is one of the challenges in our 

Sustainability Policy. 

Actions undertaken included the distribution 

of consumer guidance information booklets, 

the availability of hotsites with simulators and 

tips for the family budget and investments, 

chats with our guest experts through our 

site, the publication of specific contents on 

internal communication channels and internal 

campaigns that stressed to our employees the 

importance of respect for customers. 

In addition, presentations were made with the 

participation of consumer defence groups such 

as the Consumer Defence Agency, to inform 

our staff of the leading customer requirements, 

based on complaints received by these 

organizations. These presentations also allowed 

representatives from various areas of the Bank to 

learn about our ranking and the improvements 

needed to meet the demands of customers. 

We also held meetings with consumer 

defence system agencies to let them know 

the improvements we have implemented 

and the service channels customers have at 

their disposal. 

Sustainable Dialogues 

In 2009 we hosted nine meetings in the 

Itaú Sustainability Dialogues series, in the 

cities of São Paulo, Rio de Janeiro and 

Fortaleza. At some of the events the topic 

covered was Brazil’s image abroad, as the 

internationalization of Brazilian companies 

has become a priority issue in the interaction 

with strategic relationship groups in other 

countries. Topics such as entrepreneurship, 

responsible consumption, financial planning, 

Green IT, climate change and the Dow Jones 

Sustainability Index were also discussed. 

These meetings are designed to 

stimulate discussions around sustainable 

actions and initiatives, publicizing good 

practices and information sharing. In the past 

three years they have been held in São Paulo, 

Rio de Janeiro, Porto Alegre, Belo Horizonte 

and Fortaleza. 



Customers 

• Employees 

• Customers 


• Suppliers 



In Essence 


To contribute in a 

sustainable way ... 

...to economic development and social inclusion, 

disseminating relevant information on the 

conscientious use of money through presentations, 

chats and booklets. The challenge lies in making 

our customers, as well as society, be increasingly 

better prepared for the responsible use of financial 

products and services. 



2010 

Reduce customer attrition and thereby 

decrease the number of complaints. 

Responsible use of money 

and financial services 

We are determined to contribute to the financial 

education of the Brazilian people by inspiring a 

change in behaviours and attitudes. Accordingly, 

we have invested in the Responsible Use of Money 

program. In addition to lectures and chats targeted 

at employees, customers and the general public, 

teaching booklets are available through our website 

and in bank branches, and are written in an informal 

style that can reach everyone, whether individual or 

corporate customers. 

Extreme Makeover Project 

In 2009 we held the fourth edition of the Extreme 

Makeover project. Undertaken by the Bank in 

partnership with Editora Globo and Microsoft, this 

project provides financial and technology advisory 

services for micro and small enterprises. During the 

period covered by the project, companies receive 

classroom guidance on finance, banking products 

and technologies available, as well as ways of 

incorporating socio-environmental issues into their 

daily business activities. 

To replicate and present these suggestions and 

solutions to a larger number of people, in 2009 we 

provided online and blog consulting services to the 

participants, through which entrepreneurs can carry 

out financial, technological and environmental selfdiagnoses 

and monitor the changes underway in the 

companies taking part in the project. 

Increase transparency in the relationships 

with our customers and strengthen our 

partnerships with consumer protection 

agencies. 

Improve communication and transparency 

in contracts, bills and customer statements 

by making them even clearer and easier to 

understand. 

Strengthen our public commitment to listen 

to customers and address their concerns 

through the available service channels. 

Improve actions in financial education as part 

of the Responsible Use of Money program. 

LEARN MORE: 

About the activities of the Customer Forum in the online 

version of this Report, available at www. 

itauunibanco.com.br/relatoriodesustentabilidade 

To read the full content of brochures and other 

information about the Responsible Use of Money 

program, please visit www.itau.com.br/usoconsciente 



• Employees 

• Customers 


• Suppliers 



Shareholders 

Transparency in Communication 

Our Investor Relations (IR) activities were the first to be integrated after 

the announcement of the merger between Itaú and Unibanco. 

With the shareholder restructuring, stock 

held by shareholders of Unibanco-União 

de Bancos Brasileiros S.A. (Unibanco) 

and Unibanco Holdings S.A. (Unibanco 

Holdings) was incorporated into Banco Itaú 

S.A. and then into Itaú Unibanco S.A. (Itaú 

Unibanco). Consequently, the shareholders 

of Unibanco and Unibanco Holdings became 

shareholders of Itaú Unibanco and are 

entitled to dividends and interest on capital, 

including dividends paid monthly, declared 

by Itaú Unibanco from the base date of 

November 28, 2008. 

In our relationships with investors and 

shareholders we maintain transparency as 

our fundamental guideline. Special attention 

is paid to the communication platform for 

these strategic relationship groups, and we 

continually invest in the improvement of 

customer service channels and the quality of 

services provided. 

Similar to other areas of the Bank, the 

best practices of both Unibanco and 

Itaú were maintained in our shareholder 

communication policy. As part of our 

commitment to providing the market with 

clear, accurate, accessible and comprehensive 

information, the Shares in Focus newsletter 

was launched immediately following the 

merger. It presents the results of the Bank, the 

performance of our actions, IR activities and 

details about corporate social responsibility. 

Shares in Focus arose as a result of surveys 

which revealed the need for a succinctlyworded 

communication vehicle offering a 

brief summary of the most significant events 

of each quarter. 


22 meetings 

around Brazil were held with APIMEC-affiliated 

professionals, who received balanced, transparent 

reporting of our results and strategies. 

Strategic Relationship Groups 

• shareholders; 

• individual and institutional investors; 

• market analysts; 

• regulatory agencies; 

• capital markets agencies (national 

and international); 

• financial industry media; 

• academia. 

Shareholder 

Communication Channels 

• Itaú Unibanco Investor Relations website; 

• public meetings; 

• meetings with investor groups 

in Brazil and abroad; 

• teleconferencing; 

• Shares in Focus newsletter; 

• Annual Sustainability Report; 

• chats (individual investors); 

• e-mail alert; 

• Contact Us; 

• service by telephone. 



Shareholders 

• Employees 

• Customers 


• Suppliers 



Apimec Meetings: dialogue with 

investors and shareholders. 

The Investor Relations website features 

financial information, management analysis 

of operations, press releases, material facts, 

historical data and teleconferences, among 

other matters of interest. It is available in 

three languages and represents an important 

shareholder communication channel. In 2009 

more than one thousand e-mails were sent to 

answer questions from individual, corporate or 

institutional investors. 

Additionally, the Itaú Unibanco Investor 

Relations profile was set up on the Twitter 

microblog in order to convey relevant 

information about our performance in the 

capital markets. 

To strengthen our dialogue with shareholders 

and investors and provide balanced, 

transparent disclosure of our results and 

strategies, we participated in 22 meetings 

throughout Brazil for professionals affiliated 

with the Association of Capital Market Analysts 

and Investment Professionals (Apimec). 

The first meeting was held in São Paulo in 

December 2008, shortly after the merger 

announcement, in front of a record number 

of over 700 participants. This event was 

broadcast on the Internet with simultaneous 

translation into English and Spanish. In 

addition to Brazilian journalists, the event 

was also covered by reporters from Chile, 

Argentina, Paraguay and Uruguay. 

In 2009 we held Apimec + meetings in the 

cities of São Paulo (SP), Uberlândia (MG), 

Caxias do Sul (RS), Campo Grande (MS), 

Cuiabá (MT), Curitiba (PR), Goiânia (GO), 

Vitória (ES), Ribeirão Preto (SP), Manaus 

(AM), Belém (PA), Recife (PE), Salvador (BA), 

Brasília (DF), Santos (SP), Florianópolis (SC), 

Campinas (SP), Juiz de Fora (MG), Fortaleza 

(CE), Rio de Janeiro (RJ), Belo Horizonte (MG) 

and Porto Alegre (RS). 

Due to the economic and financial crisis 

and Brazil’s standing on the world stage, 

we held a record number of events abroad 

in 2009. To inform foreign investors about 

the performance of the Brazilian economy, 

meetings were held in Europe, the United 

States, Asia, the UAE and Latin America. 

+ Apimec – Association of Capital Market Analysts and Investment Professionals. 


10 events 

were held abroad for foreign investors in 2009. 

In Essence 

Transparency and Governance... 

...are mandatory requirements for 

responsible corporate activity. 

We have independent members on our Board of 

Directors and other councils and committees, and 

comply with São Paulo Stock Exchange Level 1 

Corporate Governance and Sarbanes-Oxley Act 

requirements, factors which have helped us be 

part of the New York Stock Exchange Dow Jones 

Sustainability World Index for the past ten years. 



• Employees 

• Customers 


• Suppliers 



Suppliers 

Value Partners 

To provide products and services essential 

to the operation of our different areas, we 

had commercial ties with 88,252 supplier 

companies in 2009. The post-merger size 

of the Organization strengthens the Bank’s 

position as a promoter of good practices in 

its community of partners. All contracts have 

clauses establishing the need to address 

and monitor compliance with labour, 

environmental and tax requirements, as well 

as respect for diversity and human rights. 

We also value the regionalization of 

hiring and encouraging suppliers which 

are based in the same state as the 

Organization’s purchasing unit. This occurs 

in cases where efficiency can be added to 

the commercial transaction. 

Supplier management is carried out centrally 

to ensure smooth handling of the purchase 

processes and transparency in the various 

operations performed. 

Purchasing Policies 

Before companies can become our suppliers 

of materials and services they must first 

register on the www.itau.com.br/suppliers 

website. This triggers the start of a detailed 

financial, administrative and technical 

assessment process. 

Introduced in 2006, the site has been 

improved to establish clear criteria for 

administrative certification. Information 

requested from suppliers covers health 

and safety issues, freedom of association, 

diversity, working hours and suitable pay. 

Companies whose activities represent risks for 

the environment must provide a respective 

Operating License (Environmental Legislation), 

and undergo technical visits. The site was 

developed along AA1000 guidelines, which 

are an international standard on ethics and 

social reporting for corporate transparency 

and accountability. The site also offers access 

to the Corporate Code of Ethics and socioenvironmental 

responsibility guidelines which 

are contractual clauses to help guide the 

actions of suppliers. 


In addition to security personnel training 

and refresher courses, the Bank created a video 

and the Keeping an Eye on Security and Good 

Service booklet. 

DISTRIBUTION OF LOCAL SUPPLIERS 

Local Suppliers (%) 

Midwest 70 

Northeast 

60 

North 

65 

South 76 

Southeast 77 

Brazil 77 


2010 

CalculatedbytotalvalueofbillingsfromlocalsuppliersdividedbythetotalvalueofpurchasesforeachState(inBrazil)andgroupedbygeopoliticalregion. 

Change in calculation methodology for 2009-In2008approximately46,000suppliersofItaúandUnibancowerelisted.Thisfigurewastheresultofadding 

upallsuppliersintheSAPpaymentsregistrationsystem.In2009weusedtheCNPJtaxnumberforanypaymentreceivedinthelast12months,regardlessofthe 

systeminwhichtheoperationwasperformed.Onthisbasisthedatabasebecomes88,252suppliers,thefigurecurrentlyrecognizedbytheOrganization. 

Ensure all our recurring suppliers are 

evaluated using the risk matrix. 

After registering, companies undergo the 

approval and document inspection process, 

in addition to an assessment of critical aspects 

of the company with respect to socioenvironmental 

issues. 

Rigorous Selection Process 

We have our own mechanisms to review 

our team of suppliers, segmented into 13 

categories of activities. One of these tools is the 

risk matrix, through which partners are scored 

according to their actions and responses for an 

extensive list of requirements which vary by line 

of business. 

The results of this evaluation are reported 

quarterly to managers from the pertinent areas 

and those in charge of the partner organization. 

At the end of 2009 about 90% of the 

outsourced labour workforce had already been 

covered by this evaluation process, including 

contracts signed with suppliers. 

Companies that fail to meet targets or act 

contrary to our policies and Code of Ethics are 

disaccredited and prevented from participating 

in further purchasing processes. 

Trained Security Personnel 

Our surveillance and security teams are 

formed by outsourced service providers. 

All professionals working in this area 

undergo strict training, required by law, 

which also includes issues related to 

human rights and human relations in 

order to prepare them for direct contact 

with the public. Aspects dealt with 

include appropriate and priority service 

to people with disabilities, public safety, 

criminology, interviewing techniques, 

radio communication, alarms and 

surveillance. 

In addition to training and refresher 

courses for security personnel, we have 

developed a video and the Keeping an 

Eye on Security and Good Service booklet, 

which educate these professionals on 

the alignment with our security policy. 

Both materials offer guidance on how 

to provide the best service to customers 

and other users of banking services, 

without losing focus on security, by 

addressing issues such as politeness, 

kindness, respect, discrimination and 

caring for people with disabilities. 

Improve the procurement site, using 

methodologies incorporated after the 

merger. 

Increase control and efficiency of the 

supplier database. 

LEARN MORE: 

For more information about our suppliers, 

visit the online version of this Report 

at www.itauunibanco.com.br/ 




• Employees 

• Customers 


• Suppliers 



Media and 

Public Relations 

Image and Reputation 

The media is one of the Bank’s strategic 

relationship groups, and has a specialized 

team tasked with leading our ongoing image 

building, encouraging strong relationships with 

opinion formers plus identifying and managing 

risks and opportunities. 

In the first year of the merger between Itaú 

and Unibanco a major concern was to disclose 

the speed of integration of operations and the 

benefits generated for customers. Among the 

most important measures resulting from this 

was the development of a communications 

plan which established a group of 

spokespersons who follow a single discourse 

on the developments of the merger, such as 

values, goals and business prospects. 

For 2010 the strategy is to strengthen our 

relationship with the press and other opinion 

formers, keeping the focus of communication 

on the integration process, the discussion of 

issues related to sustainability and financial 

education, as well as our consolidation as a 

global player. 

Highlights in 2009 

Service Delivery 

In 2009, 112 press releases and notes were issued, 

and over one thousand requests from journalists 

were answered. 

During the year 380 journalists and opinion 

formers participated in meetings, chats, 

workshops, interviews, Roadshows + and 

conference calls sponsored by the Organization. 

For the fourth consecutive year journalists from 

around Latin America came to Brazil to visit some 

of the places where we operate. 

We have an exclusive relationship channel for the 

media through the www.itau.com.br/imprensa 

website, which allows users to request interviews 

and information, access the database for news 

releases, studies and presentations published by 

the Bank, plus have their questions answered and 

receive the phone number for the service team 

responsible. In 2009 the site recorded 281,114 

single visits, a figure 60% higher than in 2008. 

In public relations our objective was to increase 

the visibility of the Organization by way of 

relationship actions at corporate events, as well 

as journalism activities to bring us even closer to 

our stakeholders. 


To help achieve this goal Itaú Unibanco 

participated directly or indirectly in organizing 

more than 20 public events in 2009. 


One of our goals is to enrich the discussion 

on various topics by using tools to positively 

influence opinion leaders. Examples of this 

are the “Sustainability on the Agenda” and 

“Macroeconomics on the Agenda” series, 

quarterly workshops for media professionals 

with the participation of outside experts, as 

well as releasing reports and studies by the 

Bank on macroeconomic conditions and 

other relevant issues. In 2009, two editions of 

each series were issued. 

As financial education is one of eight 

key themes of our Essence of Sustainability, 

a workshop on “Entrepreneurship in the 

Post-crisis Market” was held for reporters to 

show the opportunities available to small 

and medium sized companies in these times 

of easier credit. The event also discussed 

the new Authorized Direct Debit electronic 

payments system (ADD). 

In 2009 we also sponsored the Itaú 

Sustainable Finance Award, which 

recognized the best academic papers 

and reports on the subject. This initiative, 

supported by the U.K. consultancy 

SustainAbility and the Ethos Institute, had 

79 participants. Winners in each category 

received cash prizes plus trips to London, 

where they visited sustainability-related 

institutions. 

Social Investment 

Education is the road to sustainable 

development for Brazil. Our commitment 

to the community is focused on 

the development and spreading of 

methodologies which improve the quality of 

public schooling and strengthen the culture 

of social projects evaluation. Accordingly, 

every year we report on the social programs 

developed by Fundação Itaú Social. 

In 2009, 245 journalists from around the 

country each received a copy of Educational 

Reform in New York - Possibilities for Brazil, a 

publication which presents the educational 

experiences and strategies put in place in 

New York City. The book launch event also 

included a workshop featuring Chris Cerf, 

the New York Secretary of Education, as well 

as education specialists and technicians and 

Brazilian journalists. 

In June an international seminar held 

by Fundação Itaú Social discussed the 

relationship between economic development 

and education. American professor Eric 

Hanushek and specialists from Brazil took part 

in the event, which was followed by journalists 

from eight Brazilian States, leading to coverage 

in newspapers such as O Globo, Estado de 

Minas and Gazeta do Povo. 

Additionally, about 200 journalists received 

News in Network, a monthly newsletter which 

provides information on topics of interest 

from Fundação Itaú Social. 


2010 

Strengthen the Bank’s relationship 

with the media by focusing 

on communications about the 

integration process, discussions 

on sustainability-related issues 

and financial education, and our 

consolidation as a global player. 

Expand the discussion of sustainabilityissues 

by focusing on our Latin America 

consolidation strategy. 

Broaden our relationship with other 

opinion formers through institutional 

relationship events and actions. 



• Employees 

• Customers 


• Suppliers 



Environment 

The Green Overpass (Passarela 

Verde) adds value to São Paulo’s 

urban landscape. 

Eco-efficiency Management 

During the first year of the merger between 

Itaú and Unibanco our main concern was the 

integration of our teams, businesses, operations 

and processes. However, we also continued 

with our eco-efficiency projects, primarily 

those related to identifying improvement 

opportunities consistent with the new 

Sustainability Policy, which establishes the 

following environmental guidelines: 

• support market mechanisms and internal 

policies to promote respect for the 

environment, quality of life and preservation of 

biodiversity; 

• develop and improve mechanisms and 

internal policies for managing the indirect 

financial impacts of our operations; and 

• mitigate the environmental impacts of 

our operations. 

One opportunity for us to improve our 

operations is the management of environmental 

impacts from the generation of waste, 

greenhouse gas (GHG) emissions and the 

consumption of natural resources and electricity. 

In practice the behaviours encouraged by the 

Organization can also positively influence our 

many relationship groups. 

An example of this in 2009 was the 

development of a single model for selective 

waste collection in office buildings. With 

encouragement for our employees to take part, 

the project will be implemented in 2010, which 

should increase the volume and efficiency of 

our internal waste collection processes. 

In 2009 we focused our efforts on the design of 

an environmental management system for our 

operations, which we expect to implement in 

2010. This system will allow us to rationalize the 

consumption of electricity, water and fuel and 

to reduce waste and waste products. 


During 2009 the Bank consolidated the 

information in its greenhouse gas (GHG) 

emission inventories. 

Substance emissions harmful to the ozone layer, by weight - 2009 * 

Type of gas Consumption (Kg) ODP 

Estimated Emission 

(kg CFC-11 eq.) 

R-22 2,650.10 0.055 145.76 

141-b 27.00 0.11 2.97 

407-c 65.00 0.00 0.00 

R-134 a 446.80 0.00 0.00 

Total 3,188.90 ----- 148.73 

Note: figures refer to administrative buildings. Total consumption (Kg) of air-conditioning coolant gas in the administrative buildings, plus the 

estimated emissions of tonnes of CFC-11 equivalent is listed below. Values based on criteria set by the Montreal Protocol on the ODP (Ozone 

Depletion Potential). 

* 

Data taken from the Greenhouse Gas (GHG) Emission Inventory - 2009 and audited (limited assurance) by PricewaterhouseCoopers. 

Significant emissions of NOx and SOx. by weight - 2009 * 

Eco-efficiency 

We created our Eco-efficiency program to allow 

a significant advance on the environmental front 

after the merger between Itaú and Unibanco. 

One example of the actions we developed is the 

implementation of a single, centralized model 

for selective waste collection in our buildings. 

In 2009 this initiative faced challenges during 

the design stage, but these will become less 

of a factor in 2010 as the integration process 

evolves. Our main achievements in 2009 include 

the consolidation of a single inventory of GHG 

emissions which includes the operations of both 

Itaú and Unibanco. 

Source 


NOx (t) 


SOx (t) 

Own air fleet 3.01 0.27 

Own ground fleet 8.97 0.31 

Transportation 9.97 0.52 

Garantech 12.63 0.04 

Freight transport 111.99 1.97 

Cash transport 39.65 4.00 

Pouch transport 87.20 0.85 

Generators 21.96 8.65 

Taxis 5.92 0.04 

Mileage reimbursement 5.33 0.27 

Vehicle leasing 0.54 0.03 

Fuel tickets 82.24 4.11 

Fuel reimbursement 16.72 0.84 

Total 406.15 21.90 

Highlights in 2009 

Materials 

One of the principal actions in 2009 was the 

incorporation of the vision of sustainability 

into our building retrofits (whereby outdated 

equipment is replaced by more modern 

technology), and in new building projects. 

Several sustainability parameters like 

energy efficiency, percentage of recycled 

components in materials and certification 

(such as ISO 14001), are taken into account 

in the supply chain for products and services, 

promoting supplier compliance for ecoefficiency 

practices. 

Emissions 

During 2009 we consolidated the 

information in our greenhouse gas (GHG) 

inventories. This consolidation was carried 

out with advice from experts, and as of 

2010 will define the actions necessary for us 

to improve our targets and performance in 

fighting global warming. 

The inventory complies with the Brazilian 

GHG Protocol Program, which is based 

on the most widely used international 

standards for measuring emissions. Our main 

sources of direct emissions are the leakage 

of coolant gases from air conditioning 

systems and the burning of fossil fuels by 

power generation systems used in the 

event of power shortages. Our indirect 

emissions are caused by the transportation 

of people and materials, the transportation 

of cash and valuables carried out by 

third-party armoured vehicles, and by the 

consumption of electricity. 



Environment 

• Employees 

• Customers 


• Suppliers 



In Esssence 

Climate Change 

Climate change is one of our planet’s 

greatest challenges. It represents risks, 

but also opportunities. 

Climate change is a part of our strategies. We 

conduct inventories of greenhouse gas (GHG) 

emissions and develop studies and analyses in our 

Insurance area. In 2009 Itaú launched the Carbon 

Index Fund – Brazil’s first investment fund linked to 

a carbon credits index. 


Reuse of water in 2008: 

40,000 m 3 

51,226 m 3 was the approximate volume 

equivalent to 2.1% of 

the total consumed. 

of water reused in 2009. 

Direct and indirect greenhouse gas (GHG) emissions, by weight – 2009 

Energy 

Actions to reduce and control our energy 

consumption were expanded in 2009 by 

applying Green IT practices (see item on Green 

IT, below). 

Water 

One of our major environmental management 

concerns is to reduce and optimize water 

consumption in all facilities. Most of the water 

we use comes from the utility network supply. 

A number of initiatives were evaluated during 

the year, including water reuse projects in use 

at the Itaú Unibanco Eusébio Administrative 

Centre and the Itaú Business Centre.. 

Incentives and Partnerships 

We invest in forming partnerships and 

recognizing actions that lead to the 

dissemination of good sustainability practices. 

In 2009 one of our initiatives in this area was a 

partnership established with the Massachusetts 

Institute of Technology Sloan School of 

Management to promote discussions on 

sustainability in Brazil and Latin America. 

Itaú Unibanco Emission (tCO 2 

e) 

Own air fleet 866.78 

Own ground fleet 959.57 

Scope I 

Generators 2.258.3 

Gas leaks - HFCs and HCFCs 606.84 

Stationary combustion - LPG 63.2 

Stationary natural gas combustion 168.17 

Energy Consumption Emission (tCO 2 

e) 

Scope II 

Indirect greenhouse gas (GHG) emissions, by weight – 2009 

Itaú Unibanco Emission (tCO 2 

e) 

Staff use of public transport 2,736.17 

Garantech 1,286.18 

Cargo transport 9,147.93 

Pouch transport 9,324.77 

Scope III 

Administrative buildings and points of sale 14,223 

Cash transport 18,556.2 

Taxi 855.16 

Mileage reimbursement 830.12 

Car rental 83.69 

Fuel voucher 12,817.77 

Fuel reimbursement 2,606.12 

Air travel 13,111.4 

Total 71,355.51 



Environment 

• Employees 

• Customers 


• Suppliers 



Direct energy 

consumption, by 

primary energy source 

Waste Disposal in 2009 * – Itaú 

Waste Total amount (t) Recycling 

Paper/Cardboard 3,000.0 YES 

Plastic 157.0 YES 

Glass 5.9 YES 

Aluminum 621.8 YES 

Iron 366.5 YES 

Organic waste (landfill) 1,348.5 NO 

Organic waste (compost) 223.7 YES 

Light bulbs 7.7 YES 

Batteries 4.6 YES 

Electronic waste 118.0 YES 

Overall total 2009 (t) 5,853.6 

Overall total 2008 (t) 4,605.9 

* 

WiththemergingofoperationsofItaú 

andUnibancoin2009,theOrganization 

didnotconductthemonitoringof 

printercartridgesused. 

 

Note:forthoselocationswherethe 

generationofsolidwastewasnot 

recorded,theamountswereestimated 

basedonthenumberofemployees. 

Wasteproductsareproperlyremoved 

anddisposedofbythird-party 

companies. 

Total: 49,682.01 GJ 

Note:conversion:1l=0.2641gal; 

1gal=0.138GJ(diesel)and0.125GJ(gasoline). 

FiguresincludeItaúBBA. 

18,148.1 

cars for executive 

transport 

2008 

23,167.3 

31,553.8 

Generators in 

buildings and 

branches 

2008 

56,872.4 

Energy consumption 

Ano2009 

580,881 

Total electricity 

consumption (in MWh) 

2008 

536,182 

5.72 

MWh per employee 

2008 

5.55 

We have invested US$500,000 in this 

partnership project. Part of the funds 

will be used to create the Itaú Unibanco 

Sustainability Fund, which will promote 

sustainability research and development 

projects. Other monies will encourage 

studies that explore key challenges faced 

by Brazil and Latin America on issues such 

as sustainable economic development, 

economic and social inequality, lowering the 

emission of greenhouse gases, opportunities 

for the use of renewable fuels, biodiversity 

protection and sustainable agriculture. These 

funds may also be used for collaborative 

projects between students from MIT and 

universities in Brazil that are aligned with 

the areas covered by the Itaú Unibanco 

Sustainability Fund and the additional studies. 

The Eco-change (Ecomudança) Program 

is designed to stimulate and encourage 

projects by non-profit organizations that 

help reduce greenhouse gas emissions. We 

will invest R$330,000 in the program, to be 

invested in energy efficiency, renewable 

energy and waste management projects. This 

figure represents 30% of the management 

fees of the Itaú DI Ecomudança and Itaú RF 

Ecomudança funds from August 31, 2008 to 

September 1, 2009. The best carbon capture 

project will receive a further R$330,000. An 

analysis of projects will be held in partnership 

with the Ekos Institute, and the winners will be 

announced in March 2010. 

Bandeirantes Thermoelectric Plant 

The Bandeirantes Thermoelectric Plant 

(Uteb) is managed by the Bank and produces 

electricity from biochemical gas extracted 

from the Bandeirantes Landfill, located 

at Km 26 on the Bandeirantes Highway 

in São Paulo’s Perus neighbourhood. In 

2009 the plant eliminated the emission of 

approximately 390,000 metric tons of carbon 

dioxide equivalent into the atmosphere. 

The plant brings environmental benefits 

because it prevents the release of methane, a 

greenhouse gas. Accordingly, it is authorized 

to issue carbon credits which may be 

purchased by industries in countries that 

have emission reduction targets agreed in 

the Kyoto Protocol. 

We use the renewable energy produced by 

the plant to supply six of our administrative 

buildings. In 2009 the total electricity 

consumed by these units was 49,000 

MWh. For 2010 our goals are to supply an 

additional administrative centre with the 

energy generated by the plant and reach 

60,000 MWh. 


The Bank’s Green IT Committee discusses 

technological development, efficiency, 

cost reduction and risk mitigation, and the 

socio-environmental risks related to each. 

Total investments and expenditures in 2009 for environmental protection, by type 

Investment type 

Amount (R$) 

Gas cleansing 86,078.74 

Consulting for the GHG inventory 113,578.95 

Selective waste collection at administrative centres 760,800.00 

Waste removal and disposal 1,950.30 

Total 962,407.99 


2010 

Green IT 

Green Information Technology (IT) consists of 

a set of practices associated with technological 

developments for environmental efficiency, 

reduced costs and mitigating risks, including 

socio-environmental risks. 

Our Green IT Committee was established in 

2008 and is comprised of staff members 

from the Technology and Sustainability areas. 

The committee constantly discusses the 

subject and creates practices to reduce 

environmental impacts. 

Following are our main achievements in 

Green IT during 2009. 

Energy Efficiency 

Our energy efficiency actions are designed to 

reduce energy consumption by providing the 

right amount of electricity for each space. In 2009 

we undertook the following actions: updating of 

mainframe hardware, consolidation and server 

virtualization, acquisition of precision cooling 

machinery, virtualization of desktops and the 

exchange of CRT monitors with LCD devices, 

which generated savings of about 1,900 MWh, 

equivalent to R$590,000. 

“Green” workplace environment 

The use of instant messaging, 

smartphones, print management tools 

and videoconferencing rooms helped 

avoid unnecessary travel, leading to lower 

greenhouse gas (GHG) emissions. 

At the end of 2009 we opened three 

telepresence rooms that simulate the 

environment of an actual meeting, and in 

2010 another room will be in operation, 

helping reduce unnecessary travel. 

Sustainable disposal 

of electronic equipment 

The proper disposal of electronic 

equipment is an initiative that helps in the 

reuse of materials, which, after reprocessing, 

serve as raw material for new applications 

without the need to further exploit the 

environment, in addition to reducing health 

risks (some heavy metals, if absorbed into 

the soil or water table, can cause irreversible 

brain damage) which could occur through 

their improper disposal. 

In 2009 our sustainable disposal of 

electronic waste reached about 118 

metric tons as a result of exchanging 

obsolete IT equipment. Of this total, 

approximately 98% was reused after 

reprocessing and the remainder was 

treated in keeping with environmental 

agency and regulatory guidelines. 

Increase the fight against climate change 

through mitigation/reduction actions in our 

operations. 

Expand initiatives to capture and reuse 

rainwater. 

Replace the flushing systems at all 

administrative centers to achieve 

minimum savings of 20% to 40% in water 

consumption. 

Steadily increase the amount of materials, 

suppliers and technologies that will 

allow greater eco-efficiency gains in our 

technical projects. 

Implement the operations environmental 

management system. 

Use water for reuse in the cooling towers of 

other administrative buildings, plus those that 

already use this process. 

Supply an additional administrative center 

with renewable energy generated by the 

Bandeirantes Thermoelectric Plant. 

Develop and implement a waste management 

program that establishes procedures, keeps 

records and encourages service providers to 

improve their practices. 

Open one more telepresence room. 

Increase and publicize the practices of proper 

IT equipment disposal. 

Combine our best practices and meet with 

leading systems suppliers to better optimize 

the Bank’s systems. 


Social and Cultural 

Investments 

• Fundação Itaú Social 

• Instituto Unibanco 

• Instituto Itaú Cultural 

Joining forces 

strengthens our actions 

Making cultural and social investments and supporting related initiatives - 

primarily in education - embodies our cultural commitment to one of Brazil’s 

great development challenges. 

This position, which is aligned with our Vision, Values, Sustainability Policy 

and guidelines for the involvement of stakeholders, is enshrined in the 

Essence of Sustainability, a document released in early 2009 which sets out 

eight priority issues for the Bank. 

In practice we rely on the activities of Fundação Itaú Social, Fundação Unibanco and Instituto Itaú 

Cultural, which, while having different governance structures and strategies, act in a complementary 

manner, seeking to help improve the quality of education and spread culture throughout the country. 

Instituto Unibanco and Fundação Itaú Social invest in education initiatives - a key area for social 

transformation - the promotion of civic responsibility and the country’s sustainable growth, while 

Instituto Itaú Cultural seeks to broaden the general public’s access to culture and art, covering various 

means of expression throughout Brazil. 

These institutions are forming partnerships with the three levels of government (municipal, state 

and federal), the private sector and civil society organizations to participate in the joint development 

of solutions to Brazil’s social challenges. Their coordinated actions are also designed to ensure the 

sustainability of initiatives and to gain scale so their benefits can be extended to all of society. 



The main activities developed by Fundação Itaú Social, Instituto Unibanco 

and Instituto Itaú Cultural. 

• Public policy initiatives to improve the quality of public education 

• Actions to improve the spread of Brazilian culture 

• Goals and objectives in education and culture for 2010 

Instituto Itaú Cultural 

headquarters, in São Paulo. 



Investments 




Instituto Itaú Cultural facilities 

host free activities which are 

open to the public. 

Expanded Operation 

The merger between Itaú and Unibanco also 

represented the joining of forces of their 

three social and cultural institutions, making 

it possible to expand the scope, results and 

impacts of their programs. In 2009 our social 

and cultural investments reached R$248 million. 

Instituto Unibanco and Fundação Itaú Social 

focus on the quality of learning for children and 

young people, and formulate, implement and 

disseminate methodologies and educational 

technologies designed to improve public 

education policy in Brazil. 

Through initiatives undertaken with funding 

from Itaú Unibanco, Instituto Itaú Cultural uses 

tax incentives guaranteed by the Rouanet Law, a 

federal government initiative to support cultural 

incentives. This allows Instituto Itaú Cultural 

to develop free, multidisciplinary activities 

and programs nationwide, consistent with its 

objective of spreading access to culture and art. 

Its Directions program, for example, encourages 

the production of Brazilian art and culture, as well 

as publicizing and training local artists. 

Instituto Moreira Salles, which safeguards and 

preserves collections of Brazilian art and history, 

and whose activities were described in the 2008 

Itaú Unibanco Annual Sustainability Report, is 

now an independent entity as a result of the 

merger, and accordingly its activities do not form 

part of this Report. 

Focus on Education 

With activities converged on the area of 

education, in 2009 Fundação Itaú Social and 

Instituto Unibanco sought to unlock the 

synergies between their actions, a process which 

should strengthen further in 2010. 

Their joint actions include the integration of 

all volunteer programs, the formation of a 

partnership to conduct seven surveys on high 

school education, and the promotion of forums 

and debates on education administration. 


In 2010 the challenge will be to further unlock 

synergies between Instituto Itaú Cultural, 

Instituto Unibanco and Fundação Itaú Cultural. 

Fundação Itaú Social 

Fundação Itaú Social (the “Foundation”) is 

supported by an endowment fund, and its 

budget is based on any surplus obtained by the 

fund during the year. It operates primarily in the 

areas described below. 

Comprehensive Education 

The main program is the Itaú-Unicef Award, 

a pioneering initiative of the Foundation and 

the United Nations Children’s Fund (Unicef ), 

with technical coordination from the Centre 

for Studies and Research in Education, Culture 

and Community Action (Cenpec). Held every 

two years since 1995, the eighth edition was 

held in 2009, with 1,917 projects registered. The 

goal is to recognize and encourage the work 

of non-governmental organizations (NGOs) 

and other groups to contribute, in conjunction 

with public schools, to the comprehensive 

education of children and adolescents living in 

vulnerable conditions. 

Reading and Writing 

The Portuguese Language Olympics - Writing 

the Future was adopted as a public policy by 

the federal government in 2007, in partnership 

with the Ministry of Education. Through the 

distribution of training materials and national 

awards for texts written by public school 

students, it promotes the training of educators 

to teach reading and writing. In 2009, presence 

training sessions were held for 1,407 technicians 

from various Secretaries of Education. A further 

2,882 professionals received distance training, 

becoming multipliers to about 43,000 teachers 

in their respective schooling systems. A new 

edition of the Olympics will be held in 2010. 

In December 2009 it received the Corporate 

Citizen of the Americas Award from the 

Organization of American States’ (OAS) Fund for 

the Americas, which are private institutions that 

fight poverty in the Americas. 

Education Administration 

To strengthen education administration skills at 

various levels of the public school system and 

enrich and broaden the debate on the subject 

the Foundation runs two directed programs: 

Municipal Education Improvement and 

Excellence in Education Management. 

The Excellence in Education Management 

program seeks to study and analyze successful 

experiences in management education 

worldwide, and supply Brazilian managers 

with relevant information to help them 

improve existing methodologies. In 2009 

it published Education Reform in New York: 

Possibilities for Brazil, which it distributed to a 

qualified group of experts, opinion formers 

and Foundation partners. 

Based on this experience, in 2009 the 

Foundation - in partnership with the São 

Paulo State Secretary of Education - began a 

three-year pilot project for coaching teachers, 

implementing parent coordinators and the 

training of young leaders in ten schools in 

Eastern District 3. In 2010 a new publication 

will report on an innovative experiment in 

public schools in Pernambuco state. 

In 2009 the Foundation also continued its 

Municipal Education Improvement program, 

conducting 12 seminars on education 

management for 1,029 managers from 

627 cities. The program’s methodology 

was included in the 2010 Educational 

Technology Guide, published by the Ministry 

of Education (MEC). 



Investments 




Volunteer actions 

connect our teams to 

various communities. 

Another initiative is the Itaú Phase Portal 

(www.fundacaoitausocial.org.br/phase), which 

offers various support tools for analysis and 

decision-making in investments in education. 

Economic Assessment of Social Projects 

By valuing the importance of economic 

assessment as a management tool for social 

programs and projects, the Foundation, in 

partnership with the Bank’s specialized Risk 

and Finance Controls teams, developed the 

Economic Assessment for Social Projects 

program. This initiative applies the skills of 

our financial area to the social field in order 

to improve social investing in Brazil. 

The program spreads the culture of 

assessment in the social area through 

courses and seminars, in addition to an 

electronic guide covering the main issues, 

economic assessment methodology 

and other information, and is available 

on the Foundation’s website at www. 

fundacaoitausocial.org.br. 

Youth 

The Urban Youth program offers training 

to young, socially vulnerable residents of 

low-income suburban areas in Brazil’s larger 

cities. Its objectives are to expand their 

socio-cultural repertoire, increase and qualify 

their prospects of accessing the job market, 

encourage people to stay in or return to 

school, develop knowledge and basic skills 

for public and personal life and expand their 

capacity to move about the city. 

In 2009 the fifth edition of Urban Youth was 

held in São Paulo. Each edition involves 480 

people, and the program can be replicated 

by entities that work with young people, as 

the youth training content was systemized 

and will be published in 2010. The Social 

Franchise program also got underway 

in 2010, and was included in the 2010 

Educational Technology Guide, published by 

the Ministry of Education (MEC). 


11 courses in the Economic Assessment 

of Social Projects program were conducted in 2009. This initiative applies 

the skills of the Bank’s economic area to the social field in order to 

improve social investing in Brazil. 

Mobilization of Employees 

We encourage our teams to be committed to 

the community by encouraging employees 

from different areas to get involved in social 

actions. Fundação Itaú Social, in partnership 

with Instituto Unibanco, contributes to this 

mobilization through various programs designed 

to educate our professionals on the importance 

of social actions to Brazil’s development. 

Over 9,000 employees took part in our actions 

during 2009, including: 

• Saturday Volunteer - Six events, held in 

Salvador, Belo Horizonte, Goiânia, Manaus, 

Campinas and Porto Alegre involved a group 

of 1,292 volunteers. 

• Volunteer Week - Encourages the 

participation of employees in the volunteer 

program. The website had 80% more page 

views and 1,014 new registrations. 

• Itaú Child - Created in 2006, this program 

promotes mobilization for the rights of 

children and adolescents by encouraging 

the participation of employees, customers, 

partners and communities. Itaú Child places 

the entire network of Itaú and Unibanco 

branches and the mobilization of our 

employees at the service of this social cause. 

The program’s initiatives are diversified, 

based on the movements of awareness, 

involvement and the opportunity to make 

a solid commitment. With the support of 

2,867 branches, in 2009 two million copies 

of the Guide to Education in the Family were 

distributed. Another initiative was the 

expansion of 1,466 public school libraries 

nationwide. 

• Itaú Unibanco Solidarity – Now in its sixth 

edition, this program seeks donations and 

allocates taxes paid by bank employees to 

projects for protecting the rights of children 

and adolescents. A total of 252 volunteers 

took part through the Itaú Unibanco Solidarity 

Committees, which identified local projects 

to receive the donations. Results: R$902,000 

donated, 12,271 employees taking part, and 

29 projects benefitted. 



Investments 




Instituto Unibanco develops 

educational programs for the 

integration and training of 

young people. 

Instituto Unibanco 

Instituto Unibanco focuses on improving the 

quality of education offered to public high 

school students and particularly on the human 

development of young people in vulnerable 

situations. Its main activity is to develop 

technologies that help public schools improve 

their performance and reduce dropout rates. 

In 2009 more than 250 schools took part in this 

initiative. 

The two main projects developed by Instituto 

Unibanco - Among Youth and Youth With a 

Future - are listed in the Ministry of Education’s 

2010 Technologies Guide, enabling them to be 

adopted by schools. 

With the merger between Itaú and Unibanco, 

Instituto Unibanco has begun to develop 

projects and actions that are integrated with 

Fundação Itaú Social and Instituto Itaú Cultural. 

Among Youth 

The Among Youth program is designed to 

complement and address the shortcomings of 

the basic content of English and mathematics 

in the first year of high school, leading to better 

performance and lower dropout rates. The 

initiative also offers future educators - selected 

from universities - the opportunity for an 

invaluable educational and teaching experience, 

in which they can use the assessments on a largescale 

to identify the learning gap of each student. 

In 2009 the program was developed in the cities 

of Rio de Janeiro, Vitória, Juiz de Fora, Brasília 

and Campinas, involving more than 160 schools, 

approximately 20,000 high school students and 

520 university students. Investments during 

the year totalled about R$7 million, and are 

expected to reach R$6.3 million in 2010. 

The city government of Rio de Janeiro intends 

to adopt the Among Youth program as a public 

education policy in 2010 for Grade Nine students. 

Youth With a Future 

The Youth With a Future program offers 

technical and financial support for the design, 

implementation and evaluation of a plan to 

improve the quality of education. To participate, 

schools must commit to goals to be achieved 

within three years - the duration of the program – 

and be assessed periodically. To fund the activities 

each school receives R$100 per year, per student. 

Developed in partnership with State Secretaries 

of Education, the project also offers technical 

support to improve education management to 

achieve results. In 2009 the initiative benefited 

a group of about 70,000 students from 83 

schools, including 22 in Rio Grande do Sul State, 

20 in Minas Gerais State, 21 in greater São Paulo 

and 20 in Vale do Paraíba, in São Paulo State. 

The program’s budget was about R$13 million 

in 2009, and will rise to R$17.1 million in 2010, 

when it will work with 15 additional schools in 

Rio de Janeiro. 

Young Apprentice 

Instituto Unibanco works in partnership with 24 

non-profit groups to help insert young people 

aged 16 to 24 into the formal job market, under 

the Apprentice Law. In 2009 over 2,000 students 

were selected, primarily from public schools, to 

act as young learners and help reduce truancy 

and dropout levels. 





In 2009 

Instituto Itaú Cultural conducted 401 activities 

in Brazil and 121 abroad. 


Culture is a tool for social transformation, civic 

responsibility, and stimulating the construction 

of critical thinking within a nation. Accordingly, 

Instituto Itaú Cultural (the “Institute”) acts 

in different areas of expression, developing 

ongoing projects which support the 

production of, and increased access to, Brazilian 

art, the understanding of cultural practices by 

all social sectors and the encouragement of 

new talents throughout Brazil. 

Its principal activities include the 

Directions program, cultural activities and 

multidisciplinary exhibitions such as the 

Occupation project; the Culture Observatory; 

nationwide distance actions (through the 

website); virtual encyclopaedias and Web 

radio; cultural materials in print, digital, sound 

and virtual formats such as books, movies, 

catalogues, magazines, CDs and DVDs; plus 

partnerships with cultural institutions and 

public TV and radio stations throughout Brazil 

and in other countries. 

Like Fundação Itaú Social and Instituto 

Unibanco, the actions of Instituto Itaú 

Cultural are also designed to promote public 

policies and improve social conditions and 

access to culture. They are free of charge and 

focus on ensuring the spread and increase 

of artistic production throughout Brazil, 

using the cultural apparatus available to and 

incorporated by communities. 

The Institute’s social nature is manifested 

by its free events and the development of 

an educational program which includes 

teacher training, providing transportation 

for public schools to visit exhibits at its 

facilities in São Paulo, and the distribution of 

support materials. It also helps improve the 

skills of specialized professionals through 

training, research and other programs on the 

relationship between art and technology, all of 

which make use of new technological tools to 

broaden access to culture. 

In 2009 the Institute invested R$39 million. 

Of this figure, R$30 million came from the 

application of tax incentives guaranteed by 

Article 26 of the Rouanet Law for Cultural 

Support. During the year the Institute 

conducted 401 activities covering every 

Brazilian State, as well as 121 activities abroad. 



Investments 




Instituto Itaú Cultural promotes access 

to the production of Brazilian art. 

One of the main projects developed by the 

Institute is its Directions program, which for 

12 years has been supporting the artistic and 

intellectual production of art and culture 

professionals, researchers and students from 

around the country. The program covers nine 

areas: art, cyber arts, visual arts, film and video, 

dance, cultural journalism, literature, music and 

research in cultural management. In 2009 the 

program received 2,000 submissions in the 

dance, cyber arts, film and video and cultural 

journalism categories. 

In 2009 the Institute also strengthened its 

dialogue with institutions abroad by holding 

an extension course in Cultural Management 

at its facilities in São Paulo, in partnership with 

the Unesco Chair in Cultural Management and 

the University of Girona in Catalonia, Spain. 

Over 2,000 people applied for the 35 places 

available, including museum, cultural institute 

and government department specialists and 

managers from all over Brazil. The course 

runs until July 2010, and offers 240 hours 

of presence and online classes. 

Integration in Schools 

One of the first projects where Instituto 

Itaú Cultural and Instituto Unibanco came 

together was in forming a partnership for a 

contest among public school students and 

teachers, based on Instituto Itaú Cultural’s 

Brazilian History Panorama series. The Institute 

supported the national production of all 15 

episodes in the series (recorded on DVD), 

which offer a modern day examination of 

political and cultural events in Brazilian history. 

Seminars were held in nine cities to launch 

the contest, and featured the distribution of 

boxes containing DVDs and a teacher’s guide 

to the series as a means to stimulate debate 

and discussion with students. This is just one 

of the many ways that Instituto Itaú Cultural 

combines support for quality education with 

its mission to promote critical analysis of 

Brazilian culture. 



2010 

Duis eu lacus diam. Sed 

adignissim leo, at vestibulum 

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Challenges for 2010 

In the coming year the main goals 

and common objectives of the three 

institutions are: 

• strengthen the synergies between Instituto 

Itaú Cultural, Instituto Unibanco and 

Fundação Itaú Social; 

• create opportunities to engage our 

employees in social actions; 

• integrate the education management 

actions of Fundação Itaú Social and Instituto 

Unibanco; and 

Fundação Itaú Social 

Promote and qualify the discussion of public policies for comprehensive education. 

Publicize successful experiences in comprehensive education. 

Develop and disseminate methodologies for training young people. 

Enable educational administrators. 

Produce knowledge in educational management. 

Reach 80,000 schools and 300,000 teachers through the Portuguese Language 

Olympics - Writing the Future. 

Promote the use of assessment as a management tool. 


Expand its virtual databases through the release of Film, Music and Dance 

Encyclopaedias and the launch of the Institute’s new website, which will strengthen the 

portal’s content as a reference source for Brazilian art and culture. 

Instituto Unibanco 

Turn the key technologies developed by Instituto Unibanco into social franchises to be 

offered to the new State Governor as of 2011. 

Transfer technology from the Among Youth program to the Rio de Janeiro Municipal 

Secretary of Education, to be conducted experimentally in 349 schools in the city’s network. 

Implement, on an experimental basis, the Financial Education program into public schools 

in conjunction with Coremec/GAP, Brazil’s Ministry of Education and the World Bank. 

Apply social project impact assessment technology to all Instituto Unibanco actions. 

• provide grants to strengthen our 

relationship with the community. 

LEARN MORE: 

about the programs of Fundação Itaú Social, Instituto Unibanco and Instituto Itaú 

Cultural in the online version of this Report, available at www.itauunibanco.com.br/ 


For more information on the programs developed by Fundação Itaú Social, visit: 

www.fundacaoitausocial.org.br 

For more information about the activities of Instituto Unibanco, visit: 

www.institutounibanco.org.br 

To learn more about the projects and initiatives of Instituto Itaú Cultural, visit: 

www.itaucultural.org.br 


Awards and 

recognition 

In 2009 our achievements were recognized by leading media institutions and 

publications. Following are selected awards and recognition we received: 

Category: Performance and Efficiency 

• Latin America’s Best Bank - Latin Finance magazine. 

• Bank of the Year, Latin America - The Banker 

magazine. 

• Global Leader for Banking in Latin America - 

Emerging Markets Report. 

• Itaú Unibanco was one of the 20 most profitable 

publicly-traded financial institutions in the 

United States and Latin America. The ranking was 

conducted by consulting firm Economática. 

• One of Brazil’s Most Admired Companies, 

and First Place, Banks Category - Carta Capital 

magazine survey. 

• Best Bank in Brazil - Latin Finance. 

• Bank of the Year, Brazil - The Banker. 

• Best Bank in Brazil - Global Finance magazine. 

• Best Bank in Brazil – Euromoney magazine, for 

the 11th time. Also, Itaú BBA was chosen Best 

Regional Cash Manager, South America and Best 

Cash Manager, Brazil. 

• Latin America’s Best Managed Company, and 

Best Company in Corporate Governance, Brazil - 

Euromoney. 

• Brazil’s Most Shareholder-Friendly Company - 

Institutional Investors magazine. 

• One of the Best and Biggest Financial 

Conglomerates – Fundação Getúlio Vargas 

(FGV) Conjuntura Econômica magazine, with 

special recognition for: Best in Retail and 

Highest Net Income Growth. 

• Best Money Manager, Funds - Você S/A 

magazine and Fundação Getúlio Vargas (FGV). 

• Best Bank in Fund Management – Exame 

magazine Personal Investment Guide. 

• First Place, Large Banks, and Second Place, Best 

Banks - América Economia magazine ranking. 

• Best Money Manager, Funds - Você S/A 

magazine and Fundação Getúlio Vargas (FGV). 


LEARN MORE: 

To view our full list of awards and 

recognition, please see the online version of 

this Report at www.itauunibanco.com.br/ 


• Itaú BBA was named Best Bank in Latin America, 

Investment Banking by The Banker. 

• Itaú BBA was recognized for the Deals the Year 

Award by Latin Finance magazine. 

• Itaú BBA was named one of the World’s Best 

Investment Banks by Global Finance magazine. 

• For the second consecutive time, named 

Outstanding Private Bank - Latin America by 

Private Banker International magazine, 

considered the world’s top award in the wealth 

management segment. 

• Itaú Unibanco Private Bank was named Best 

Private Banking Services Overall in Brazil and 

The Outstanding Private Bank of the Americas 

by Euromoney magazine. 

Partners, with recognition in the Bank and 

Top Intangibles Brazil and First Place in the 

2009 Reputation Index ranking. 

• Banking Report Award, presented by Relatório 

Bancário. Winner in 11 categories. 

• Winner in the Premium Bank and Credit 

Cards categories for the Modern Consumer 

Excellence in Customer Service Award, 

presented by Consumidor Moderno magazine. 

• Winner in the CEO of the Decade, Marketing 

and Communication Personality of the Decade 

and Relationship of the Decade categories for 

the Modern Consumer Excellence in Customer 

Service Award, presented by Consumidor 

Moderno magazine. 

Category: Brand and Image 

• Itaú was named the second most valuable brand 

in Brazil by Brand Finance and Brand Analytics. 

• We were included in the 2009 Brands Yearbook: 

The 100 Most Prestigious Firms in Brazil, 

organized by Época Negócios magazine. 

Category: Information 

Technology and the Internet 

• In the E-Finance Award, presented by 

Executivos Financeiros magazine, Itaú won 

in five categories: Correspondent Banking, 

Business Intelligence, Virtualization, 

Applications Development and Hardware. 

• World’s Best Foreign Exchange Banks - Country 

Winners - Brazil by Global Finance magazine. 

• Intangibles Brazil Award, presented by Grupo 

Padrão and consulting firm DOM Strategy 


Glossary 

AA1000 

An international standard designed to ensure 

the quality of accounting, auditing and social 

and ethical reporting, composed of principles 

and a set of process standards. Its goal is to 

support organizational learning and overall 

performance - financial, environmental 

and ethical – leading to the organization’s 

contribution to sustainable development. 

Apimec 

Association of Capital Markets Analysts and 

Investment Professionals. A Brazilian group 

which promotes cultural activities designed to 

stimulate the integration, training and expertise 

of its members. 

Assessment 

A term used in the area of human resources to 

describe methods for identifying current and 

potential skills. The result of applying these 

methodologies allows greater understanding 

of development possibilities and career 

advancement for those candidates being 

assessed. 

Bookrunner 

Any bank that structures a securities issue by 

setting the price and inviting other subscribers 

to participate. It also structures the order book 

for debt securities or shares and allocates the 

securities among the investors. 

Coaching 

The process of preparing people, through 

individual monitoring and training, by offering 

them the tools, knowledge and opportunities 

needed for professional development. 

Commodity 

Materials requiring a manufacturing process 

before they are ready for consumers. These 

products are normally traded on commodities 

exchanges. 

Credit 

Covers the value of loans and financings, 

including endorsements and sureties. 

Customer deposits 

Customer funds held on deposit by a bank. 

Assets 

Includes the use of monies, typically in 

possessions and rights. 

Benchmark 

A reference or example to be followed. In the 

financial market the term is used to determine 

an index which acts as a comparison parameter 

between investments. An exchange rate 

fund, for example, may use the US dollar as a 

benchmark. 

Decoupling 

The ability of an economy to grow without 

corresponding increases in environmental 

pressure. 

Dow Jones Sustainability World Index 

(DJSI World) 

Launched in September 1999, the Dow Jones 

Sustainability Indices were the first to evaluate 

the financial performance of the world’s 

leading sustainability companies. The Dow 

Jones Sustainability World Index covers the top 

performing 10% of a group of 2,500 companies 

on the Dow Jones Global Total Stock Market 

Index, measured by financial, environmental 

and social criteria. 


Efficiency Ratio 

The ratio between non-recurring interest and 

interest income (financial margin + income 

from services + income from insurance, 

annuiities/capitalization and pensions + other 

operating income + tax expenses). 

Follow-on 

An additional offering of shares, which had 

been in the control block, after a company 

conducted a previous share issue. 

Gross Domestic Product (GDP) 

Refers to the sum of all wealth generated by 

the economy of a country in a period, usually 

one year. 

IPO 

Initial public offering, or the first time a 

company’s shares are offered to the market. 

ISE Sustainability Index 

Created in 2005, the São Paulo Stock Exchange 

Corporate Sustainability Index (ISE – BM & 

FBovespa) comprises companies recognized 

for their commitment to sustainability, as 

selected from the Exchange’s 150 most 

actively-traded companies. 

Leasing 

An agreement where one party gives another 

party the right to use a property, payable via 

lump sum or rent. 

Market share 

Percentage held by a company of the entire 

market available to it. 

Mentoring 

Partnership between a more experienced 

professional, who acts as a tutor, and a 

less experienced professional, in order to 

exchange experiences and knowledge, and 

promote professional and personal growth. 

Recurring Net Income 

The difference between revenue and 

expenses, net of income tax and profit 

sharing, recorded by a company during 

the fiscal year, excluding non-recurring or 

extraordinary events. 

Recurring Return on Equity 

The ratio between a company’s recurring 

net income and its average shareholders’ 

equity. 

Return on Equity (ROE) 

Net profit divided by shareholder’s equity, 

for a given period. 

Roadshow 

A travelling presentation of business 

opportunities to institutional investors 

which specialize in globalized business. 

SA8000 

International standard of social 

responsibility that covers the quality 

of working conditions, developed and 

supervised by Social Accountability 

International (SAI). 

Sarbanes-Oxley (SOX) 

An American law, enacted in 2002, which 

establishes rules for the standardization and 

improvement of the financial controls of 

publicly-traded companies which are listed 

in the United States. 

Shareholders’ Equity 

The difference between a company’s assets 

and liabilities, or the firm’s net worth. 

Solvency (Basel) Ratio 

The size of a company’s after-tax income 

compared to its total debt obligations. It 

provides a measurement of how likely a 

company will be to continue meeting its debt 

obligations. 

Stakeholder 

Any strategic relationship group. 

Value Added Statement 

Financial statement which shows how 

much value or wealth has been created by 

a company by using its capacity, capital, 

manpower and other resources, and how 

it is allocated among stakeholders such as 

employees, lenders, shareholders and the 

government in an accounting period. 

Value at Risk (VaR) 

A company’s total risk exposure, or the 

maximum potential expected loss of an 

investment portfolio, with a given probability 

and time horizon. 


Appendices 

C C+ B B + A A+ 

About this Report 

The 2009 Itaú Unibanco Holding S.A. Annual 

Sustainability Report follows the guidelines of 

the Global Reporting Initiative (GRI), an international 

standard for sustainability reporting, and 

the Brazilian Association of Public Companies 

(Abrasca). This Report also compares the Bank’s 

financial, social and environmental performance 

with the 10 Principles of the Global Compact 

(see table on page 123), a United Nations initiative 

to disseminate corporate responsibility. 

Now that a little over a year has passed since 

the merger that created Itaú Unibanco Holding 

S.A., in most cases we were able to present 

consolidated performance information covering 

the operations of the entire Organization, in 

Brazil and abroad, from January 1 to December 

31, 2009. Where this integration has not yet 

been consolidated, information specific to each 

transaction is presented. Similarly, any data 

range limitations are described in the notes 

accompanying the tables. 

Mandatory 

Optional 

Self-declared 

Assessed by 

third-parties 

Assessed by GRI 

External verification 

formalizes the eight main challenges for 

the Organization’s sustainable performance 

and served as a reference for selecting the 

contents of this Report. The Essence is the 

result of a first examination, which included 

consultations with experts and staff, plus 

analyzing financial sector benchmarks. 

In addition to the Essence of Sustainability, 

in December 2009 Itaú Unibanco hosted a 

Multistakeholder Panel that brought together 

60 representatives from the Bank’s strategic 

relationship groups – employees, customers, 

suppliers, competitors, experts, civil society 

organizations and the media. The focus 

of the meeting was to evaluate the 2008 



Sustainability Report. The main demands and 

subsequent actions taken are summarized in 

the table below. 

The 2009 Itaú Unibanco Holding S.A. Annual 

Sustainability Report represents the collective 

work of hundreds of people who provide 

information and indicators on the Bank’s 

performance throughout the year. It reflects 

a process of continuous improvement 

and bettering our sustainability practices. 

Accordingly, all comments, criticisms and 

suggestions are extremely valuable to us and 

should be e-mailed to visibilidadecorporativa@ 

itau-unibanco.com.br. 

This Report has a GRI Guidelines A+ application 

level in responding to all key indicators and the 

supplement for the financial services sector. 

Socio-environmental information was subject 

to an assurance from PricewaterhouseCoopers 

Independent Auditors, whose report appears on 

pages 126-127. 

Among the principles most important to 

the quality of a sustainability report are the 

inclusion of stakeholders and materiality, 

namely, focusing on the presentation of 

topics and issues essential to the operation 

of the company and to society. The Itaú 

Unibanco Holding S.A. Annual Sustainability 

Report undertook key procedures to meet 

these conditions. At the end of 2008 the Bank 

created the Essence of Sustainability, which 

Multistakeholder Panel – Principal Recommendations 

Demands 

Integrate the eight themes of the 

Essence of Sustainability into the 

Report 

Provide comparative data to facilitate 

understanding the indicators 

Present goals 

Present the positive and negative 

impacts of the operation 

Use the Report as a stakeholder 

education tool 

Include the voice of stakeholders 

through testimonials 

Highlight relationships between 

the Bank (branches) and the local 

community 

Describe employee engagement 

actions for sustainability 

Actions Taken 

The themes are discussed throughout the Report and are identified by icons. There are also specific 

texts to show the relationship of the content to the Essence topics. 

To enable monitoring the progress of our indicators, we have presented some responses from the 

previous Report, where the base is comparable. However, there is no consolidation of sustainability 

indicators of the Brazilian financial sector in the GRI standard. 

One year after the merger, the integration of systems and operations has allowed some goals to be 

presented, at the end of the chapters. Other goals, however, are qualitative and as such are not shown. 

The impacts were constantly evaluated, demonstrated by the transparency of the Bank’s 

communications. 

The magazine and audio versions of the Report were widely distributed to Itaú Unibanco S.A. 

stakeholders, and played an educational role in reporting our economic, social and environmental 

performance using accessible, journalistic language. 

The magazine and audio versions of the Report feature testimonials from customers, employees and 

representatives of other stakeholder groups. 

The Report describes relationship actions with the community, such as microcredit initiatives 

and social and cultural projects. The process of integrating Bank operations, which continued 

throughout 2009, was a limiting factor for the development and identification of key actions on the 

direct relationship between branches and communities. 

The Report presents the role of employees in Itaú Unibanco’s sustainability agenda and highlights 

actions of the joint construction of solutions, such as the Ideas Bank and Sustainability Leaders. 


• About this Report 

• GRI Cross Index and Correlation with the Global Compact 

• Independent Auditor’s Limited Assurance 

• AA1000 Assurance Statement 

• Communication and Service Channels 

10 Principles of the Global Compact 

Human Rights 

1. Businesses should support and respect the protection 

of internationally proclaimed human rights. 

2. Make sure that they are not complicit in human 

rights abuses. 

Labour Standards 

3. Businesses should uphold the freedom of association and 

the effective recognition of the right to collective bargaining. 

4. The elimination of all forms of forced and compulsory labour. 

5. The effective abolition of child labour. 

6. The elimination of discrimination in respect of employment 

and occupation. 

Environment 

7. Businesses should support a precautionary approach to 

environmental challenges. 

8. Undertake initiatives to promote greater environmental 

responsibility. 

9. Encourage the development and diffusion of environmentally 

friendly technologies. 

Anti-Corruption 

10. Businesses should work against corruption in all its forms, 

including extortion and bribery. 

Global Reporting Initiative Cross Index and Correlation with the Global Compact 

Global Reporting 

Page 

Global 

Compact 

Principle 

Global Reporting 

Indicadores gerais 

Page 

Global 

Compact 

Principle 

Strategy and analysis 

GRI Content Index 

1.1. Messages from the Chairman and the President 2 – 5 

3.12. GRI Summary 123 

1.2. Impacts, risks and opportunities 8; 18 and 19 

Assurance 

Organizational Profile 

2.1. Name of reporting organization 8 

2.2. Primary brands, products, and/or services 8 

2.3. Operational Structure 8; 16 and 17 

2.4. Location of organization headquarters 8 

2.5. Countries where the organization operates 8; 16 and 17 

2.6. Nature of ownership and legal form 8 

2.7. Markets served 8; 16 and 17 

2.8. Scale of the reporting organization 11 

2.9. Changes during the reporting period 8 

2.10. Awards received in the reporting period 10; 23; 85 and 118 

Report Parameters 

Report Profile 

3.1. Reporting period 122 

3.2. Date of most recent previous report 122 

3.3. Reporting cycle 122 

3.4. Contact point for questions regarding the report or its 

contents 

122 

Report Scope and Boundary 

3.5. Process for defining report content 72 and 122 

3.6. Boundary of the report 122 

3.7. Limitations on the scope or boundary of the report 122 

3.8. Basis for reporting 122 

3.9. Data measurement techniques and the bases of calculations 

of Itaú and Unibanco 

122 

3.10. Explanation of the effect of any re-statements of information 

provided in earlier reports 

122 

3.11. Significant changes from previous reporting periods 8 and 88 

3.13. External assurance 126 

Governance, Commitments, and Engagement 

Governance 

4.1. Governance structure of the organization 26 and 29 

4.2. Executive officers 30 

4.3. Independent and/or non-executive Directors 30 

4.4. Mechanisms for shareholders and employees to provide 

recommendations or direction to Board 

28 

4.5. Linkage between compensation for Board members, 

senior managers and executives 

28 

and the organization’s performance 

4.6. Processes in place for Board to ensure conflicts of interest 

are avoided 

30 

4.7. Process for determining the qualifications and expertise www.itauunibanco.com.br/ 

of Directors 


4.8. Statements of mission, values, codes of conduct and 

principles relevant to economic, 

environmental and social performance plus status of their 

11 

implementation 

4.9. Procedures of the Board of Directors 22; 23 and 30 

4.10. Processes for evaluating Board performance 30 

Commitments to External Initiatives 

4.11. Whether and how the precautionary approach or 

principle is addressed 

36 

4.12. Externally developed economic, environmental and 

social charters, principles or other initiatives 

6; 7 and 48 

4.13. Memberships in associations 34 

Stakeholder Engagement 

4.14. List of stakeholder groups engaged by the organization 72 

4.15. Basis for identification and selection of stakeholders 

with whom to engage 

122 

4.16. Approaches to stakeholder engagement, including 

frequency of engagement 

72 and 122 

by type and by stakeholder group 

4.17. Key topics and concerns that have been raised through 

stakeholder engagement 

122 


Appendices 






Economic Performance Indicators 

Indicadores de desempenho 

Page 

ECONOMIC PERFORMANCE 

Form of management 

EC1. Direct economic value generated and distributed 15 2 

EC2. Financial risks and opportunities related to climate 

change 

23 and 59 

EC3. Pension Plan 



EC4. Financial assistance received from the government 115 

Market Presence 

EC5. Ratio between lowest salary and local 

minimum salary 

EC6. Policy, practices and spending on locallybased 

suppliers 

EC7. Procedures for local 

hiring 

In 2009, the lowest salary was 5% higher 

than the national minimum wage. In 2008 

it was 15% higher. 

98 and 99 

The Organization’s practice is to undertake 

selective processes in its own facilities where 

job opportunities are available. Generally, 

candidates come from those facilities. 

Global 

Compact 

Principle 

Indirect Economic Impacts 

EC8. Development and impact of infrastructure investments 100 – 116 

ENVIRONMENTAL PERFORMANCE 


Materials 

EN1. Materials 



8 

EN2. Percentage of materials used that are recycled 



8 – 9 

Energy 

EN3. Direct energy consumption 106 8 

EN4. Indirect energy consumption 106 8 

EN5. Energy saved due to conservation and efficiency 

improvements 

106 8 and 9 

EN6. Energy efficient or renewable energy based products 

and services 

EN7. Initiatives to reduce indirect energy consumption and 

reductions achieved 

106 8 and 9 

106 8 and 9 

Water 

EN8. Total water withdrawal by source 105 8 

EN9. Water sources affected by withdrawal of water 105 8 

EN10. Water recycled and reused 105 8 and 9 

Biodiversity 

EN11. Protected and high biodiversity areas 

Protected and high biodiversity areas 

The Bank’s operating units are located solely 8 

in urban areas. 

EN12. Impacts on biodiversity see EN11 8 

EN13. Habitats protected or restored see EN11 8 

EN14. Management of impacts on biodiversity see EN11 8 

EN15. IUCN Red List species see EN11 8 

Emissions, effluents, and Wast 

EN16. Direct and indirect emissions of greenhouse gases 105 8 

EN17. Other indirect emissions of greenhouse gases 105 

EN18. Initiatives to reduce emissions of greenhouse gases 105 7, 8 and 9 

EN19. Emissions of substances harmful to the ozone layer 103 8 

EN20. NOx, SOx and other emissions 103 8 

EN21. Total water discharge 

Discharged water is only from domestic utility 

and collected rainwater. 8 

124 Itaú Unibanco Holding S.A. 

Indicadores Performance de Indicators desempenho 

EN22. Total weight of waste by type and 

disposal method 

EN23. Total weight and volume of significant 

spills 

EN24. Hazardous waste transported 

EN25. Water bodies and habitats affected 

Products and Services 

Page 

106 8 

No significant spills were recorded. 8 

The Organization does not perform the monitoring 

of this information. Waste generated 

by the company is properly transported and 

disposed of by third-parties. 

Itaú Unibanco does not significantly affect 

water bodies and/or habitats through 

discharge or drainage, as it generates only 

domestic effluents 

Global 

Compact 

Principle 

EN26. Mitigation of impacts of products and services 107 7, 8 and 9 

EN27. Percentage of products sold and their packaging 

materials reclaimed 

Compliance 

EN28. Monetary value of significant fines 

Transport 

EN29. Impacts of transporting products and other goods 

and materials 

Overall 

EN30. Total environmental protection expenditures and 

investments 

Performance Indicators 



In 2009, the Organization received no 

environmental fine or penalty. 

105 

107 

Page 

SOCIAL PERFORMANCE 

Labour Practices And Decent Work 

LA1. Total workforce by employment type and region 75 – 77 

LA2. Total number and rate of employee turnover 



LA3. Benefits provided to full-time employees 79 

Labour/Management Relations 

LA4. Percentage of employees covered by collective 

bargaining agreements 

LA5. Minimum period for notification in advance of 

operational changes 

Occupational Health and Safety 

LA6. Percentage of total workforce represented in 

joint management/worker health and safety 

committees 

LA7. Rates of injury, occupational diseases, lost days and 

absenteeism, and work-related fatalities 

LA8. Programs regard ng serious diseases 

LA9. Health and safety topics in agreements with unions 

Training and education 











8 

8 

8 and 9 

Global 

Compact 

Principle 

6 

1 and 3 

3 

79 1 

LA10. Hours of training 78 6 

LA11. Programs for skills management and continuous 

learning 

76 

LA12. Percentage of employees receiving regular performance 

and career development reviews 

78 

Diversity and equal opportunities 

LA13. Composition of governance bodies and workforce 



1 and 3 

1 

1 

1 and 6

Global 

Indicadores Performance de Indicators desempenho 

Page Compact Indicadores Performance de Indicators desempenho 

Page 

Principle 

LA14. Ratio of basic salary of men to women by employee 

category 

SOCIAL PERFORMANCE - HUMAN RIGHTS 

Form of Management 

Investment and Procurement Practices 

HR1. Percentage and total number of investment agreements 

with human 

rights clauses/screening 

HR2. Percentage of suppliers evaluated for human rights 

and actions taken 

HR3. Hours of human rights training for employees on 

human rights 

Non-discrimination 

HR4. Cases of discrimination 



No investment contracts were 

undertaken during the period. 

99 and www.itauunibanco.com. 

br/relatoriodesustentabilidade 

No training sessions on this topic 

were conducted in 2009. 



1 and 6 

1, 2, 3, 4, 5 and 6 

1, 2, 3, 4, 5 and 6 

1, 2, 3, 4, 5 and 6 

1, 2 and 6 

Compliance 

SO8. Fines and penalties for non-monetary 

non-compliance with laws and regulations 

R$141,869.16 – total fines paid for breaching 

municipal bylaws dealing with service 

time, not including labour issues and/or 

products and services. 

SOCIAL PERFORMANCE – PRODUCT REPSONSIBILITY 


Customer Health and Safety 

PR1. Assessment of impacts 44; 61 

PR2. Non-compliance with the voluntary codes 

Product and Service Labelling 



PR3. Procedures for products and services labelling 61 

Global 

Compact 

Principle 

Freedom of Association and Collective Bargaining 

HR5. Operations where freedom of association and collective 

bargaining may be at risk 

Child Labour 

82 and www.itauunibanco.com. 

br/relatoriodesustentabilidade 

1, 2 and 3 

HR6. Operations with risk of child labour 98, 99 1, 2 and 5 

Compulsory and Slave Labour 

HR7. Operations with risk of forced or compulsory labour 98, 99 1, 2 and 4 

Security Practices 

HR8. Security personnel trained in human rights 99 1 and 2 

Indigenous rights 

HR9. Violations of indigenous rights 

The Organization has no record of any violation 

of rights of indigenous peoples. 

SOCIAL PERFORMANCE – SOCIETY 


Community 

SO1. Managing impacts of operations on communities 110 a 117 

Corrupção 

1 and 2 

SO2. Assessments of risks related to corruption 44, 45 10 

SO3. Training in anti-corruption policies 44, 45 10 

SO4. Measures taken in response to cases of corruption 44, 45 10 

Public Policies 

SO5. Participation in public policy development and 

lobbying 

114, 115; 117 1 and 5 

SO6. Contributions 

to political parties 

Anti-competitive Behaviour 

SO7. Legal actions for anti-competitive behaviour, 

anti-trust and monopoly practices 

In 2009 Itaú made no political campaign contributions as there were no 

elections. As a practice, in election years our support for political campaigns 

is fully transparent and consistent with the principles and values of the 

Organization. 

To ensure the ethical conduct of this procedure, the Committee created 

a Contributions Policy Committee, composed of board members and 

executives of the Bank. This committee examines the candidates’ platforms 

and careers, and after extensive evaluation and discussion chooses 

those candidates offering proposals judged most effective for achieving 

sustainable development and improving the living conditions of Brazilians. 

The contributions go entirely to the candidates and not to political parties, 

and are recorded by the Organization, in strict compliance with legislation 

regulating donations to political campaigns. 

There were no reports during the period. 

Our concern with the issue of competition is 

described in our new Code of Corporate Ethics, 

and will become even more evident through 

corporate communications undertaken 

during 2010. 

10 

PR4. Non-compliance 

The Organization does not 

perform the monitoring of this 

information. 

PR5. Practices related to customer satisfaction 89 and 90 

Communication and Marketing 

PR6. Adherence to laws, standards and codes 



PR7. Non-compliance 

The Organization does not perform the 

monitoring of this information. 

Customer Privacy 

PR8. Violation of customer privacy 89 1 

Compliance 

PR9. Fines for non-compliance with laws and 

regulations concerning provision 

and use of products and services 

Fines paid - Procon – Individual complaints 

about products: R$38,040.03 

FINANCIAL SERVICES SECTOR PERFORMANCE INDICATORS 

FS1. Socio-environmental policies 24; 25; 38 – 40; 56 

FS2. Socio-environmental risk assessment 38; 40 and 41 

FS3. Socio-environmental monitoring of client 38; 40 and 41 

FS4. Training in socio-environmental policies 41; 44; 61 

FS5. Interactions on socio-environmental risks/opportunities 91; 93 

Financial Services 

FS6. Percentage of portfolio of business lines 

40 and www.itauunibanco.com.br/ 


FS7. Products and services for social benefit 53 and 60 

65 and 

FS8. Products and services for environmental benefit 



FS9. Socio-environmental policies audits 



FS10. Interaction with companies on socio-environmental issues 91; 93 

FS11. Assets subject to socio-environmental screening 



FS12. Voting policies applied to socio-environmental issues 



Society 

FS13. Access in areas of economic disadvantage 51 – 54 

FS14. Access for people with disabilities 77 and 99 

Products 

FS15. Development and sale of products and services 22 and 23 

FS16. Financial education 54; 91 and 93 


Appendices 






Independent Auditors’ Limited Assurance 

Report on the Annual Sustainability Report 

for 2009 of Itaú Unibanco Holding S.A. 

To the Board of Directors 


Introduction 

We have been engaged to perform a limited assurance engagement on the Annual Sustainability 

Report for 2009 of Itaú Unibanco Holding S.A., prepared under the responsibility of the Bank’s 

management. This responsibility includes designing, implementing and maintaining internal 

control over the proper preparation and presentation of the Annual Sustainability Report for 2009. 

Our responsibility is to provide a limited assurance report on the information disclosed in the 

Annual Sustainability Report for 2009 of Itaú Unibanco Holding S.A. 

Criteria to Prepare the Sustainability Report 

The Annual Sustainability Report for 2009 was prepared in accordance with the guidelines for 

sustainability reports of the Global Reporting Initiative (GRI-G3) for the A+ Application Level. By 

following these guidelines, Itaú Unibanco Holding S.A. reported 78 performance indicators between 

essential and additional, and 16 performance indicators of the financial sector supplement. 

Procedures Applied 

Our limited assurance work was performed in accordance with Assurance Standards and 

Procedures NPO-01 issued by the Brazilian Institute of Independent Auditors (IBRACON) and 

comprised: (i) planning the work, taking into consideration the relevance and the volume of 

information presented in the Annual Sustainability Report of Itaú Unibanco Holding S.A.; (ii) 

obtaining an understanding of the internal controls; (iii) examining, on a test basis, evidence that 

supports the quantitative and qualitative data in the Annual Sustainability Report; (iv) interviewing 

the managers responsible for the information; and (v) comparing the financial information with the 

accounting records. These procedures were deemed sufficient to allow a limited level of assurance 

and, consequently, do not include all those required for issuing a broader assurance report, as set 

forth in Assurance Standards and Procedures NPO-01. 

Our limited assurance work also comprised checking the application of the requirements 

prescribed by GRI-G3 for the reports with A+ Application Level. 


Scope and Limitations 

The objective of our work was to verify and evaluate whether the data included in the Annual 

Sustainability Report for 2009, with respect to the obtaining of qualitative information and 

measurement and calculation of quantitative information complies with the following criteria: 

(i) Brazilian Accounting Standards NBC T 15 - Social and Environmental Information; and (ii) 

guidelines for sustainability reports from the Global Reporting Initiative (GRI G3). Opinions, 

historical information, descriptive information and information resulting from subjective 

evaluations are not included in the scope of the work performed. 

Conclusion 

Based on our limited assurance work, we are not aware of any significant change that should be 

made to the information included in the Annual Sustainability Report of Itaú Unibanco Holding 

S.A. for the year ended December 31, 2009, for this information to be fairly presented, in all 

material respects, in accordance with the criteria utilized for the A+ Application Level. 

Further Considerations 

With regard to the definition of Sustainability Report Contents, in accordance with GRI-G3 

principles, we noted that the 2009 report is clearer in respect to the process of merger between 

Itaú and Unibanco and the integration of performance indicators of sustainability, in addition to 

presenting a unique strategy for sustainability. 

São Paulo, March 26, 2010 

PricewaterhouseCoopers 

Independent Auditors 

CRC 2SP000160/O-5 

Manuel Luiz da Silva Araújo 

CRC 1RJ039600/O-7 “S” SP 


Appendices 






AA1000 Assurance Statement 

Consistent with the ongoing process of independently auditing Itaú Unibanco’s stakeholder 

engagement procedures, BSD Consulting reviewed the preparation of the 2009 Itaú Unibanco Annual 

Sustainability Report as it pertains to the Bank’s current Policy and Essence of Sustainability. 

Objectives and Scope 

The auditing process is designed to provide Itaú Unibanco stakeholders with an independent 

opinion on: sustainability management processes; compliance with AA1000AS 2008 principles; and 

the continuity of the Bank’s engagement processes. The scope of our work covers the information 

contained in the print and online versions of the 2009 Itaú Unibanco Annual Sustainability Report. 

Methodology 

The independent evaluation process was conducted in compliance with AA1000 Assurance Standard 

2008 Type 1, which provides a moderate level of assurance. The evaluation approach consisted of: 

monitoring stakeholder panels, analysis of the Bank’s ongoing engagement processes, and checking 

those issues arising from the Bank’s new Sustainability Policy, a key element of which is the Essence 

of Sustainability. We interviewed managers and stakeholders currently involved in the processes of 

engagement or Essence issues in the Bank. 

Responsibilities and Limitations 

The Annual Sustainability Report is prepared by Itaú Unibanco, which is responsible for its content. 

Assessments of the reliability of the data reported and related GRI application levels were outside 

the remit of BSD Consulting. 

Independence 

BSD Consulting is a company which specializes in sustainability. We operate independently, and 

no BSD employee has any professional consulting relationship or other commercial ties with 

Itaú Unibanco. BSD Consulting is licensed by AccountAbility as an assurance provider (AA1000 

Assurance Licensed Provider), under registry number 000-33. 

Key Findings - AA1000AS Principles 

1. Inclusion – addresses the participation of stakeholders in the development of a transparent, strategic 

sustainability management process and the scope of these management efforts 

Following is our analysis of this Principle, pursuant to the Bank’s Sustainability Policy. 


• Governance and management: after a smooth merger process, Itaú Unibanco was able to align its 

management areas with sustainability and created committees that functioned at an operational level 

in 2009. However, there is a need to consolidate a strategic endorsement of sustainability management 

at senior levels, which could result in commitments and goals for the Organization’s performance in 

relation to the objectives of its Sustainability Policy. 

• Ethics and transparency: the new Itaú Unibanco entity enjoys a positive history in promoting ethics 

among employees and transparency with stakeholders. In 2009 the Bank undertook efforts to give even 

greater transparency to the relationship with its customers, however, the Organization still has failings in 

this area, as evidenced by an increased number of complaints. 

• Products and services: Itaú Unibanco continuously seeks to improve its service packages using social 

and environmental criteria, and to meet customer needs through consultations with key stakeholders. 

However, it is essential to balance the relationship between customer needs and products offered 

by modifying the sales strategy and customer service. This can help eliminate controversial market 

practices, as the search for market growth and the impacts of conventional products may conflict with 

the Organization’s pursuit of sustainable development. 

• Employees: the forms of dialogue with staff (Speak Frankly and the employee Ombudsman) were 

effective in identifying and resolving critical issues. The internal audit of these processes and the plan to 

revisit the SA8000 certification procedure underlines the Organization’s commitment to its employees. 

We expect this same approach to be maintained in the Bank’s international expansion activities. 

• Relationship with suppliers: the Bank still does not conduct proactive engagement to develop its 

suppliers (with the exception of security and transport personnel), which leads to major sustainability 

challenges. However, this area has shown commitment to the policy’s goals, working not only in the 

complex risk assessment of suppliers, but also beginning a full review of contractual status, including, 

among others, SA8000 criteria in all contracts. 

• Relationship with customers: Itaú Unibanco seeks to improve its level of service excellence using 

different tools such as Customer Forums, the Ombudsman, Relationships with Consumer Protection 

agencies and the inclusion of manager goals in an effort to restore or maintain customer satisfaction 

levels. The success of these measures will depend on how well the Bank can put into practice the 

necessary changes and include card customers, a group composed primarily of non-account holders 

who are served by third-parties, and who are not as committed to the Bank as regular customers. 

• Relationship with society: investments in society through the Bank’s Institutes are recognized for their 

level of excellence. The Bank should pursue the same level of excellence in transparency with respect 

to those issues most critical to society, such as fees and interest rates and the financing of political 

campaigns, which are not often discussed in the institution’s communications. 


Appendices 






• The Environment: Although the Bank has shown progress over the so-called retrofitting of 

materials in building renovation and calculating emissions and waste, it still fails to integrate 

sustainability through a management system such as ISO 14000, which forces the Bank to commit to 

continuous improvement and a broader scope for the entire branch network. The Bank should also 

strengthen the assessment of its environmental impact in indirect credit, which for now is restricted 

to just a few sectors. 

• Relations with shareholders: the relationship with shareholders is thoroughly assessed inside 

and outside the Bank, and employs a wide range of relationship channels and a high degree of 

transparency. We suggest including shareholders in the Sustainability Policy, as this stakeholder 

group has huge potential to positively influence the Bank’s sustainability agenda. 

2. Materiality (or relevance) - addresses issues necessary for stakeholders to draw conclusions on the 

Organization’s economic, social and environmental performance 

To define the issues which are most relevant to the search for sustainability, Itaú Unibanco has 

established, via consultation with experts and other stakeholders, the Essence of Sustainability, 

which comprises the following issues: 

• Governance Transparency; 

• Customer Satisfaction; 

• Socio-environmental Criteria; 

• Diversity; 

• Climate Change; 

• Financial Education; 

• Microfinance; and 

• Stakeholder Engagement. 

We found that all these issues are being addressed within the ongoing processes of the 

Sustainability Policy, and are already assessed under the principle of Inclusion. 

Based on the views of stakeholders involved in the Essence evaluation panels, the Bank needs to 

improve its explanation of the issues presented and provide tangible goals for progress regarding 

the selected areas. In our view, this process would be better served with a more systematic 

mapping of the Bank’s stakeholders and a materiality test showing that the areas actually relate to 

key issues raised by stakeholders. 


3. Response Capacity - addresses actions taken by the Organization due to specific 

stakeholder demands 

• Itaú Unibanco has channels such as the Ombudsman, Customer Forum and a supplier website 

to respond to the needs of its stakeholders. These and other existing channels work well, but it is 

extremely important that third-parties or non-account holders, who are impacted by the Bank’s 

operations, receive the same degree of response to critical issues raised. 

• The response to the market to create new products and realign business objectives in keeping 

with sustainability is ongoing, but a greater effort should be made to promote sustainable products 

and attitudes. Customers and shareholders still do not associate the Bank with sustainability. 

• The Bank has recognized and addresses the issue of greater transparency to its customers, an 

effort that deserves further attention in future Reports. 

• Organizational responses in relation to environmental challenges have begun and should 

continue on a more expanded basis through the introduction of a more rigid management system, 

in addition to the GRI indicators report. 

• The reporting of targets presented in previous reports is essential to chart the Bank’s performance 

regarding sustainability. 

After a one year period dedicated to organizational consolidation, Itaú Unibanco has begun 

integrating its sustainability management process by investing in the promotion of key issues and 

compliance with the sustainability policy. In turn, this policy should take on a greater role in the 

Organization’s processes and strategy through clearer goals and monitoring results and impacts. 

São Paulo, March 17, 2010 

Beat Grüninger 

Partner - BSD Consulting, Brazil 


Appendices 






Communication and Service Channels 

Itaú Customer Services 

Unibanco Customer Services 

Head Offices 

Praça Alfredo Egydio de Souza Aranha, 100 

Torre Olavo Setubal 

CEP 04344-902 – São Paulo – SP 

Investor Relations Services 


Torre Conceição – 11.º Andar 


E-mail: relacoes.investidores@itau-unibanco.com.br 


Shareholder Services 

São Paulo - SP 

Av. João Pinheiro, 195 – Térreo 

CEP 30130-180 – Sra. Jussara F. Souza 

Capitais e Reg. Metropolitanas 

4004 4828 

Other locations 

0800 970 4828 

www.itau.com.br 

SAC 

0800 728 0728 

Corporate Ombudsman 

0800 570 0011 

Caixa Postal n.º 67.600 

CEP 03162-971 

Clients with hearing disabilities 

0800 722 1722 

Main cities and metropolitan regions 

4002 0030 

Other locations 

0800 722 3030 

www.unibanco.com.br 

SAC 

0800 726 1809 

Ombudsman 

0800 722 6281 

Clients with hearing disabilitie 

0800 722 2808 

Brasília – DF 

SCS Quadra 3 – Edifício Dona Angela – Sobreloja 

CEP 70300-500 – Sra. Constância M. S. Oliveira 

Curitiba – PR 

Rua João Negrão, 65 – Sobreloja – CEP 80010-200 

Sra. Márcia N. Machado 

Porto Alegre – RS 

Rua Sete de Setembro, 746 – Térreo – 

CEP 90010-190 – Sra. Sandra F. da Silva 

Rio de Janeiro – RJ 

Rua Sete de Setembro, 99 – Subsolo 

CEP 20050-005 – Sra. Mônica Lopes C. Rodrigues 

Salvador – BA 

Av. Estados Unidos, 50 – 2.º andar 

Edifício Sesquicentenário – CEP 40010-020 

Sr. Watson P. Barreto 

São Paulo – SP 

Rua Boa Vista, 176 – Subsolo – CEP 01014-000   

Sra. Claudia Germano Vasconcellos 


Credits 

Publication and Overall Coordination 

Itaú Unibanco Corporate Visibility 

Coordination of Indicators 

Itaú Unibanco Superintendency of Sustainability 

Editorial and Graphic Design: Report Comunicação 

Translation: Montreal Consultants 

Revision: Assertiva Produções Editoriais 

Photos: Pisco Del Gaiso – Contents, 2, 4, 6, 7, 9, 14, 17, 21, 23, 24, 25, 

27, 29, 30, 32, 34, 35, 37, 39, 40, 42, 43, 44, 47, 49, 50, 51, 52, 53, 

55, 56, 58, 59, 60, 61, 62, 64, 65, 66, 67, 69, 73, 74, 75, 76, 77, 78, 

79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 90, 91, 92, 93, 95, 97, 98, 

104, 105, 107, 117, 118 and 119 

Ricardo Corrêa – Teclado (Learn More) 

Edu Simões – 31 

Alexandre Battibugli – 33, 48, 57 and 102 

Itaú Unibanco Archives – Cover, 11, 12, 16, 19, 68, 70, 94, 96, 

100, 109, 110, 111, 112, 113, 114 and 116 

Disclosure – 13 and 115 

Printing: Stilgraf Artes Gráficas e Editora Ltda. 

Print Run: 5,000 copies in Portuguese and 500 in English 

Distribution: sent to shareholders, investors, employees, clients, 

suppliers, charities, consumer protection groups, the media, 

government agencies and universities. 





If you have any questions, comments or suggestions, please e-mail us 

at: visibilidadecorporativa@itau-unibanco.com.br 

Our special thanks to everyone who authorized the use of their image, 

and to all staff members who helped create this Report. 

The paper used in this Report was manufactured from wood from 

certified forests and other controlled sources which meet FSC criteria. 

FSC Certification 

The paper used in this Report was manufactured 

from wood from certified forests and other controlled 

sources which meet FSC criteria.




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