Itaú Unibanco Holdings S.A.Shivani AroraColleen Butts
Lakshmi GuptaSpencer Jones
April 4, 2012
Agenda
• Company Snapshot• Company Background• Financial Importance• Contributions and Outreach• Future Outlook
Snapshot
Headquartered in capital Sao Paulo
104,000 employees and operations in 19
countries
Non-governmental financial institution
In Brazil, 5000 branches and 30,000
ATMs
Largest Latin American bank and
one of the 10 largest banks in the world
Global Locations
Source: www.itau.com
Mer Merger with Unibanco
Created the largest private sector bank in the Southern Hemisphere
Born out of strong identity of values and a converging vision of the future
In November 2008, both signed an association agreement for merging the financial operations of the two banks
Scale, expertise and strong capital base to reinforce capacity to offer credit to the market in line with demands of both corporate entities and private individuals
• Insurance, pension plan and capitalization products, credit cards, asset management, and credit and product services for individuals, small and middle-market companies.
Corporate and Investment Banking
Financial products and services to its non-accountholders.
Commercial Banking
Itaù BBA
Consumer Credit
Four Operational Segments
Corporate and Treasury
• Results related to the trading activities in its portfolio, trading related to managing currency, interest rate and other market risk factors, gap management and arbitrage opportunities in domestic and foreign markets
Itaú Vision
“To be the industry’s best performing Bank, built to last, renowned for being sound and ethical, and
distinguished by highly motivated teams committed to customer satisfaction, to the community and to
generating competitive advantages.”
1960s 1970s 1980s 1990s1945 2000s - Now
Continued Growth• Rapid growth• Acquisitions increase –
urban area focus• 1st International
presence in NY and BA
New Infrastructure• Itaú Social Program• Itaú Cultural Institute• Continued International
Expansion
New Business Strategy• 25 years of organic growth• Government modernization
of financial systems• Mergers and Acquisitions• Banco Itaú, Banco Sul
Americano, Banco da América
Transformation• Political and Economic
Disruption• Conservative Stance• Adoption of technology:
“Electronic Bank”
Economic Powerhouse• Banco Itaú-BBA• 2003-2004 Interbrand ranks
Itaú most valuable in Brazil• 2008 – Itaú officially
becomes Itaú Unibanco S.A. following merger
Company Background
Banco Itaú S.A. Founded • Banco Central de Crédito• Headquartered in Sao
Paulo
Financial Snapshot
Net Income
• Net income in 2010 showed a growth of 32.3% reaching R$13.3 billion.
Stock Value
• On December 31, 2010, shares traded at US$22.84 on the New York Stock Exchange (NYSE), 5.1% over the closing price in the previous year.
Market Value
• Market value exceeds $80 billion• 50% bigger than BofA• Bigger than Goldman Sachs & Morgan Stanley
combined
Consumer Credit• Credit cards have become the primary banking instrument for individuals in Brazil
– Itaú Unibanco is among the ten largest credit card operators in the world, administering 56 million active credit cards.
– In 2010, 31 Itaucard stores opened with sole task of servicing credit card customers
• Vehicle financing is largest in Brazil and second in world– In 2010, recorded $58.9 billion in loans to all segments (motorbikes, trucks, etc.)– Controlling stockholder in Banco Fiat, accounting for 46% of the volume of
financed cars in the Fiat dealership network
Itaú Investment Banking*Itau has a fundamental role in representing Brazilian companies and Brazil to international investors.
• Petrobas issuance– One of six coordinators of the Petrobas
issuance (world’s larger issuance of shares ever)
• Debt securities– Leads in placing debt securities of Brazilian
companies in the international market– Carried out placement for the Republic’s
securities aboard (first bank to take part)• Fixed income securities
– Leader in issuance of fixed income securities of Brazilian companies
• IBBA provided financial consulting services to 35 merger and acquisitions operations
• Finances projects of oil rigs, wind farms, highways, small hydroelectric projects
MicroInvest (Microfinance)• Offers credit access under suitable conditions for the microfinance segment,
which has been increasing with the growth of the Brazilian economy.
• Target small business owners – most of whom are entrepreneurs working in the informal market (without a Corporate Taxpayers’ Registry Number) in the metropolitan regions of São Paulo, Rio de Janeiro and Porto Alegre.
• In 2010, signed 4,300 new contracts, totaling R$14.9 million. This represents a growth of 14.1% and 12.7%, respectively, in relation to 2009. For the coming years, Microinvest has ambitious targets, such as to increase its market share by 2.5 times
• Made significant investments in methodologies and technologies aimed at speeding up credit granting and maintaining direct contact with the client
For the People
• Fundação Itaú Socia is its social investment arm • More than $156 million in social and cultural
investments • Itaú owns one of Brazil's largest private art
collections • Education Programs for youth and customers
For the Environment
• Going paperless: Itau's Paperless Campaign
• Named Sustainable Bank of the Year in 2011 by the Financial Times and the International Finance Corporation– Goal by 2013: 80% of assets compliant with
environmental and social criteria.
Current Expansion• Opening of 123 branches and 43 Customer
Site Branches (CSB) • 93% in cities with more than 50 thousand
population• 82 branches and 8 CSB’s in the 4thQ/11
• Remodeling of 440 branches to the new service model of Itaù Unibanco
Where to Next?
• Acquisitions: ~US$432 billion in assets• HSBC Chile network (4 branches) in 2011• Opening of 19 branches in Latin America• Looking to spread presence in Columbia by buying up
assets from Santander or BBVA.• Standard Chartered ($50B) (capital flows between
markets) could also be a target for acquisition.
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