Download February 9, 2017 150/2017-SAE/GAE 2 Itaú Unibanco Holding

February 9, 2017
150/2017-SAE/GAE 2
Itaú Unibanco Holding S.A.
Attn. Mr. Marcelo Kopel
Investor Relations Officer
Ref.: Request for clarification o a report published on the press
Dear Sirs,
With respect to the news published on this date, in the Valor Econômico newspaper, the following information is
presented:
1.
2.
3.
Itaú currently operates using the cost of capital of 15.5%, whereas the return on credit is 9.4% from previous year;
Itaú’s target is to operate with result on credit that equals at least the cost of capital;
This goal is expected to be achieved only in the end of 2018.
We have been unable to identify this information in the documents sent by your company through the Empresas.NET
system. Should this not be the case, then please advise us as to where we can locate the document and pages in which
this information can be found and the date and time that it was sent.
Please note that the company should disclose periodic, eventual and other information of interest to the market through
the Empresas.NET system, thus ensuring its widespread and immediate dissemination and the equitable treatment of its
investors and other market participants.
In this light, we request your clarifications by 09:00 a.m. on February 10, 2017, on the aforementioned items with your
confirmation or otherwise as well as other information deemed as material, without prejudice to the provision in the sole
paragraph of Article 6 of CVM Instruction No. 358/02.
This reply should be made through the Periodic Information System (IPE), in the Category: Material Fact or
Announcement to the Market, Type: Clarifications on CVM/BOVESPA Consultations, and Subject: News Published in the
Media, and it will be simultaneously disclosed to BM&FBOVESPA and CVM. The reply made through Material Fact does
not avoid the possible determination by CVM of any responsibilities on the untimely disclosure, in accordance with CVM
Instruction No. 358/02.
We call attention to the obligation, provided in the sole paragraph of Article 4 of CVM Instruction No. 358/02, to inquire the
management members and stockholders of the controlling company in order to determine whether they were aware of
information that should be disclosed to the market.
In the file to be sent, the content of the foregoing consultation should be transcribed before the company’s reply.
This request comes within the scope of the Cooperation Agreement signed by the Brazilian Securities and Exchange
Commission – CVM and BM&FBOVESPA on December 13, 2011 and failure to respond may render this company
subject to a punitive fine imposed by the CVM’s Department of Public Company Supervision – SEP, in accordance with
CVM Instruction No. 452/07.
Regards,
Nelson Barroso Ortega
Corporate Monitoring Department
BM&FBOVESPA S.A. Securities, Commodities and Futures Exchange
c.c.:
CVM - Brazilian Securities Exchange Commission
Mr. Fernando Soares Vieira - Department of Public Company Supervision
Mr. Francisco José Bastos Santos - Department of Market Surveillance
São Paulo (SP), February 10, 2017
To
BM&FBOVESPA S.A. - Securities, Commodities and Futures Exchange
Corporate Monitoring Department
Dear Sirs,
Page 2
Ref.: Request for clarification – Official Letter No. 150/2017-SAE/GAE 2
In response to the Official Letter from Corporate Monitoring Department - BM&FBOVESPA in relation to the report
published in the newspaper Valor Econômico on February 9, 2017, Itaú Unibanco Holding S.A. (“Itaú Unibanco” or
“Company”) wishes to clarify that:
On February 07, 2017, at 5:13 p.m., the Company sent through the Empresas.net system the Material Fact on the
Projections for fiscal year 2017, and also updated the Reference Form with this information. On February 08, 2017, at
9:19 a.m., the Company sent through the Empresas.net system the Announcement to the Market on the slides that
would be presented on the same date at the Conference Call on the 2016 Result.
Based on slide 9 made available to the conference call (attached), named “Business Model”, which includes the 9,4%
Credit’s Recurring ROE for fiscal year 2016, and on the Projections, an analyst questioned the speaker about the
relationship between ROE (return on equity) and cost of capital, and stated as follows: “If the cost of capital decreases,
even if the bank’s future ROE is lower than it is today, it will probably be better”; and added: “However, I would like to
understand how you envision this evolution in the next years. Whether you think that this ROE’s gap for the cost of
capital may increase in the next years or not.”
The speaker explained the relationship between ROE and cost of capital emphasizing that the variables in the financial
market (such as spread, volumes, Selic rate, etc.) interact on a dynamic basis similar to “communicating vessels” and not
to “stationary vessels“.In this context, the speaker stated that he expects a better economic scenario for 2018, stressing
that “there is no way not to be better for the bank.” After describing the optimism towards 2019 and 2020 (“if we continue
the trend of good economic policies we are experiencing now”), the speaker ended up with the following sentence
“(...)we always have to operate the loan portfolio based, at least, on the cost of capital.” Therefore, the speaker did not
mention the end of 2018 as being the target for the Credit’s ROE to reach, at least, the cost of capital.
By the way, it is natural to the Company to seek the highest possible return, using the cost of capital as a reference.
Additionally, we present below the calculation schedule of the cost of capital for credit prepared based on information
included on slide 9, which is attached to this reply (a calculation that can be made based on the information made
available to the market):
Amounts in R$ billion
Cost of Capital - Credit
2016
Creation of Value (A)
(3.2)
Capital (B)
56.4
Net Income (C)
5.3
Capital Remuneration (D=C-A)
8.6
Cost of Capital (E=D/B)
15.2%
The cost of capital for credit of 15.2% calculated considers that the regulatory capital of R$56.4 billion should be
remunerated by R$8.6 billion. Considering that net income for the year was R$5.3 billion, which generated a 9.4%
Recurring ROE, there was a negative creation of value of R$3.2 billion.
Regards,
ITAÚ UNIBANCO HOLDING S.A.
Marcelo Kopel
Investor Relations Officer
c.c.:
CVM - Brazilian Securities Exchange Commission
Mr. Fernando Soares Vieira - Department of Public Company Supervision
Mr. Francisco José Bastos Santos - Department of Market Surveillance
Business Model
2016
In R$ billions
Operating Revenues
2
Credit
Trading
Insurance
and Services
Excess
Capital
Consolidated
Credit
Trading
change
Insurance
and Services
Excess
Capital
Consolidated
Credit
Trading
Insurance
and Services
Excess
Capital
108.3
55.1
2.2
48.3
2.7
108.7
57.9
2.9
47.8
0.2
-0.4%
-4.8%
-22.7%
1.0%
-
Managerial Financial Margin
69.0
45.4
2.2
18.7
2.7
70.6
48.3
2.9
19.2
0.2
-2.2%
-6.1%
-23.0%
-2.5%
-
Commissions and Fees
31.0
9.8
0.0
21.2
-
29.3
9.6
-
19.7
-
5.7%
1.9%
-
7.5%
-
Result from Insurance 1
8.3
-
-
8.3
-
8.9
-
-
8.9
-
-5.7%
-
-
-5.7%
-
Result from Loan Losses
(22.4)
(22.4)
-
-
-
(19.0)
(19.0)
-
-
-
18.0%
18.0%
-
-
-
(1.5)
-
-
(1.5)
-
(1.6)
-
-
(1.6)
-
-7.0%
-
-
-7.0%
-
Non-interest Expenses and
Other Expenses 2
(53.8)
(25.9)
(0.3)
(27.4)
(0.1)
(53.1)
(26.0)
(0.4)
(26.7)
(0.0)
1.3%
-0.3%
-14.6%
2.7%
-
Recurring Net Income
22.1
5.3
1.1
13.6
2.1
23.8
8.1
1.5
14.1
0.1
-7.0%
-34.2%
-26.4%
-3.6%
-
Regulatory Capital
115.6
56.4
3.3
34.3
21.5
106.5
61.0
2.7
41.4
1.3
8.6%
-7.6%
22.3%
-17.1%
-
Value Creation
5.6
(3.2)
0.7
8.5
(0.3)
8.2
(0.9)
1.1
8.0
0.0
-31.6%
251.1%
-36.5%
5.9%
-
Recurring ROE
20.3%
9.4%
34.0%
39.5%
9.9%
23.9%
13.3%
56.6%
33.9%
10.1%
560 bps
-20 bps
Retained Claims
1
Consolidated
2015
-360 bps
-380 bps -2,250 bps
Result from Insurance includes the Result from Insurance, Pension Plan and Premium Bonds Operations before Retained Claims and Selling Expenses.
Include Tax Expenses (ISS, PIS, COFINS and other), Insurance Selling Expenses and Minority Interests in Subsidiaries.
Itaú Unibanco Holding S.A.
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