4Q15. Management Discussion & Analysis and Complete Financial Statements

Transcription

1 4Q15 Management Discussion & Analysis and Complete Financial Statements

2 CONTENTS 03 Management Discussion & Analysis 05 Executive Summary 15 Income Statement and Balance Sheet Analysis Managerial Financial Margin Credit Portfolio Result from Loan Losses Commissions and Fees & Result from Insurance, Pension Plan and Premium Bonds Insurance, Pension Plan and Premium Bonds Operations Non-interest Expenses Tax Expenses for ISS, PIS, Cofins and Others Income Tax and Social Contribution on Net Income Other Balance Sheet Information Balance Sheet by Currency 40 Capital Ratios 42 Risk Management 43 Business Analysis 45 Segment Analysis 50 Activities Abroad 55 Additional Information 61 Report of Independent Auditors 63 Complete Financial Statements It should be noted that the managerial financial statements relating to prior periods may have been reclassified for comparison purposes. The tables in this report show the figures in millions. Variations and totals, however, are calculated in units. Therefore, there may be differences due to rounding. Future expectations arising from the reading of this analysis should take into consideration the risks and uncertainties that involve any activities and that are outside the control of the companies of the conglomerate (political and economic changes, volatility in interest and foreign exchange rates, technological changes, inflation, financial disintermediation, competitive pressures on products, prices and changes in tax legislation, among others).

3 4 th quarter of 2015 Management Discussion & Analysis Itaú Unibanco Holding S.A.

4 (This page was intentionally left blank) Itaú Unibanco Holding S.A. 04

5 Management Discussion & Analysis Executive Summary Itaú Unibanco Holding S.A. (Itaú Unibanco) information and financial indicators are presented below. Highlights In R$ millions (except where indicated), end of period 4Q15 3Q15 4Q Indicators Other Balance Sheet Performance Shares Results Recurring Net Income 5,773 6,117 5,660 23,832 20,619 Net Income 5,698 5,945 5,520 23,360 20,242 Operating Revenues (1) 26,680 26,945 23, ,910 89,840 Managerial Financial Margin (2) 16,764 17,595 14,705 66,557 55,155 Recurring Net Income per share (R$) (3) Net Income per share (R$) (3) Number of Outstanding Shares at the end of period in thousands (4) 5,921,351 5,950,089 6,024,702 5,921,351 6,024,702 Average price of non-voting share on the last trading day of the period (R$) (4) Book Value per Share (R$) Dividends and Interest on Own Capital net of taxes (5) 3,429 1,351 3,694 7,304 6,635 Dividends and Interest on Own Capital net of taxes (5) per share (R$) (*) Market Capitalization (6) 155, , , , ,161 Market Capitalization (6) (US$ millions) 39,882 39,254 71,592 39,882 71,592 Recurring Return on Average Equity Annualized (7) 22.3% 24.0% 24.7% 23.9% 24.0% Return on Average Equity Annualized (7) 22.0% 23.3% 24.0% 23.5% 23.5% Recurring Return on Average Assets Annualized (8) 1.7% 1.9% 1.9% 1.9% 1.8% Return on Average Assets Annualized (8) 1.7% 1.9% 1.9% 1.8% 1.8% Solvency Ratio - Prudential Conglomerate (BIS Ratio) (9) 17.8% 16.1% 16.9% 17.8% 16.9% Common Equity Tier I 14.0% 12.3% 12.5% 14.0% 12.5% Estimated BIS III (Common Equity Tier I) - Full Implementation of BIS III (10) 13.6% 12.4% 11.9% 13.6% 11.9% Annualized Net Interest Margin of Spread-Sensitive Operations (11) 11.0% 10.8% 10.5% 10.8% 10.3% Annualized Net Interest Margin with Clients (11) 10.9% 10.9% 10.4% 10.7% 10.3% Annualized Net Interest Margin of Spread-Sensitive Operations after Provision for Credit Risk (11) 7.1% 6.9% 7.6% 7.0% 7.3% Annualized Net Interest Margin with Clients after Provision for Credit Risk (11) 7.5% 7.4% 7.8% 7.3% 7.6% Nonperforming Loans Index (NPL over 90 days) 3.5% 3.3% 3.1% 3.5% 3.1% Nonperforming Loans Index (NPL 15 to 90 days) 2.6% 3.0% 2.5% 2.6% 2.5% Coverage Ratio (Provision for Loan Losses/NPL over 90 days) 208% 214% 193% 208% 193% Efficiency Ratio (ER) (12) 45.5% 44.2% 46.5% 44.0% 47.0% Risk-Adjusted Efficiency Ratio (RAER) (12) 64.5% 63.1% 61.6% 63.0% 62.9% Total Assets 1,359,172 1,322,693 1,208,702 Total Credit Portfolio, including Sureties and Endorsements 548, , ,519 Loan Portfolio (A) 473, , ,760 Sureties, Endorsements and Guarantees 74,244 75,143 73,759 Deposits + Debentures + Securities + Borrowings and Onlending (B) (13) 648, , ,106 Loan Portfolio/Funding (A/B) 73.0% 77.1% 78.8% Stockholders' Equity 106, ,353 95,848 Assets Under Administration 765, , ,516 Total Number of Employees 90,320 91,437 93,175 Brazil 83,481 84,490 86,192 Abroad 6,839 6,947 6,983 Branches and CSBs Client Service Branches 4,985 5,012 5,070 ATM Automated Teller Machines (14) 26,412 26,454 27,916 EMBI Brazil Risk CDI rate In the Period (%) 3.4% 3.4% 2.8% 13.3% 10.8% Dollar Exchange Rate Quotation in R$ Dollar Exchange Rate Change in the Period (%) -1.7% 28.1% 8.4% 47.0% 13.4% Euro Exchange Rate Quotation in R$ Euro Exchange Rate Change in the Period (%) -4.2% 28.2% 4.3% 31.7% -0.2% IGP-M In the Period (%) 3.9% 1.9% 1.9% 10.5% 3.7% (*) The number of outstanding shares was adjusted to reflect the share bonus of 10% granted on June 05, 2014 and July 17, Note: (1) Operating Revenues are the sum of Managerial Financial Margin, Commissions and Fees, Other Operating Income and Result from Insurance, Pension Plan and Premium Bonds Operations Before Retained Claims and Selling Expenses; (2) Described on pages 16 to 17; (3) Calculated based on the weighted average number of outstanding shares; (4) The number of outstanding shares was adjusted to reflect the share bonus of 10% granted on June 05, 2014 and July 17, 2015; (5) IOC Interest on Capital. Declared amounts paid/accrued; (6) Total number of outstanding shares (common and non-voting shares) multiplied by the average price of non-voting share on the last trading day in the period; (7) Annualized Return was calculated by dividing Net Income by Average Stockholders Equity. The quotient of this division was multiplied by the number of periods in the year to derive the annualized rate. The calculation bases of returns were adjusted by the amount of dividends that has not yet been approved at shareholders or Board meetings, proposed after the balance sheet closing date; (8) Return was calculated by dividing Net Income by Average Assets. The quotient of this division was multiplied by the number of periods in the year to derive the annualized rate. (9) Up to the fourth quarter of 2014, this ratio was calculated based on the financial conglomerate; (10) Takes into consideration the use of tax credit; (11) Does not include financial margin with the market. See details on page 17; (12) For further details on the calculation methodology of both Efficiency and Risk-Adjusted Efficiency ratios, please refer to page 34; (13) As described on page 38; (14) Includes ESBs (electronic service branches) and service points at third parties establishments. Itaú Unibanco Holding S.A. 05

6 Management Discussion & Analysis Executive Summary Net Income and Recurring Net Income Our recurring net income totaled R$5,773 million in the fourth quarter of 2015 as a result of the elimination of non-recurring events, which are presented in the table below, from net income of R$5,698 million for the period. Non-Recurring Events Net of Tax Effects In R$ millions 4Q15 3Q15 4Q Recurring Net Income 5,773 6,117 5,660 23,832 20,619 Non-Recurring Events (75) (172) (140) (473) (377) Social Contribution Rate Increase (a) - 3,988-3,988 - Complementary Provision for Loan Losses (b) - (2,793) (668) (2,793) (668) Contingencies Provision (c) (28) (540) (38) (696) (126) Financial Leasing Accounting Change (d) - (520) - (520) - Pension Fund (e) - (130) - (130) - Goodwill Amortization (f) (32) (34) (54) (162) (177) Program for Settlement or Installment Payment of Taxes (g) (4) (1) (62) 37 (25) Impairment (h) (7) - (9) (50) (9) Gain from Sale of Large Risk Insurance Operations (i) Criteria Adjustment - Credicard (j) (37) Porto Seguro (k) (60) IRB (l) Improvement of Labor Claim Provision Model (m) - - (74) - (74) Other (20) (143) - (163) - Net Income 5,698 5,945 5,520 23,360 20,242 Note: Impacts of the non-recurring events, described above, are net of tax effects further details are presented in Note 22-K of the Financial Statements. Non-Recurring Events of 2015 and 2014 (a) Social Contribution Rate Increase: Effect on the balance of the social contribution tax credit resulting from the rate increase from 15% to 20% as established by Provisional Measure No. 675/15 of May 2015 (converted into Law No. 13,169/15 in October 2015). (b) Complementary Provision for Loan Losses: Complementary provision for loan losses to the minimum required by Resolution No. 2,682/99 of the National Monetary Council mainly due to a more challenging economic environment. (c) Contingencies Provision: Recognition of provisions for tax and social security lawsuits and losses arising from economic plans that were in effect in Brazil during the 1980's. (d) Financial Leasing Accounting Change: Regarding financial leasing contracts related to the new Technology Center implementation. (e) Pension Fund: Provision to settle the surplus of the defined contribution pension fund in accordance with the regulation. (f) Goodwill Amortization: Effect of the goodwill amortization generated by acquisitions made by the Conglomerate. (g) Program for the Settlement or Installment Payment of Taxes: Effects of our adherence to the Program for the Settlement or Installment Payment of Federal and Municipal Taxes. (h) Impairment: Adjustment in the carrying amount of assets in order to reflect its fair value. (i) Gain from Sale of Large Risk Insurance Operations: Effect of the sale of large risk insurance operation completed on October 31, (j) Criteria Adjustment - Credicard: Criteria adjustment for provisions recognition for loan losses resulting from Credicard acquisition. (k) Porto Seguro: In 2015, effect on the balance of the social contribution tax credit resulting from the rate increase in proportion to our equity in the company and in 2014, effect of the favorable decision, by the Federal Supreme Court (STF), on the legality of the COFINS tax on this type of operation in proportion to our equity in the company, in addition to the provision for losses on tax losses. (l) IRB: Favorable decision effect on the increase of the PIS/COFINS calculation basis of IRB Brasil Resseguros S.A. (m) Improvement of Labor Claim Provision Model: Resulting from changes for the improvement of our model for the recognition of provisions for own and third parties labor claims. Managerial Income Statement We apply consolidation criteria for the managerial results that affect only the breakdown of accounts and, therefore, do not affect net income. These effects are shown in the table on the following page ("Accounting and Managerial Statements Reconciliation"). Additionally, we adjusted the tax effects of the hedges of investments abroad - which were originally accounted for as tax expenses (PIS and COFINS) and income tax and social contribution on net income and were reclassified to the financial margin - and the non-recurring events. Our strategy for the foreign exchange risk management of the capital invested abroad is aimed at mitigating, through financial instruments, the effects resulting from foreign exchange variations and takes into consideration the impact of all tax effects. In the fourth quarter of 2015, the Brazilian real appreciated 1.7% against the U.S. dollar and of 4.2% against the Euro, compared with depreciations of 28.1% and 28.2%, respectively, in the previous quarter. Highlights On December 31, 2015, we entered into an agreement by which we agreed to acquire a 81.94% stake in the equity stock of Recovery do Brasil Consultoria S.A. and 70% of a R$38 billion portfolio in credit rights associated with portfolio recovery activities, resulting from credits mainly originated from market banks. After obtaining applicable regulatory authorizations and the compliance of certain suspension conditions, we will pay R$640 million for the stake in the equity stock of Recovery and R$ 570 million for the stake in the credit rights portfolio. Itaú Unibanco Holding S.A. 06

7 Management Discussion & Analysis Executive Summary Accounting and Managerial Income Statements reconciliation for the past two quarters is presented below. Accounting and Managerial Statements Reconciliation 4 th Quarter of 2015 In R$ millions Accounting Non-recurring Events Tax Effect of Hedge Managerial Reclassifications Managerial Operating Revenues 27,543 (202) (499) (162) 26,680 Managerial Financial Margin 17, (499) ,764 Financial Margin with Clients 15, ,495 Financial Margin with the Market 1,768 - (499) - 1,269 Commissions and Fees 8, (556) 7,645 Result from Insurance, Pension Plan and Premium Bonds Operations Before Retained Claims and Selling Expenses 1,849 (205) ,271 Other Operating Income 277 (3) - (274) - Equity in Earnings of Affiliates and Other Investments 194 (17) - (177) - Non-operating Income (30) Result from Loan Losses (4,384) - - (250) (4,634) Provision for Loan Losses (5,866) - - (250) (6,116) Recovery of Loans Written Off as Losses 1, ,482 Retained Claims (406) (406) Other Operating Income/(Expenses) (13,699) (12,959) Non-interest Expenses (11,782) (11,119) Tax Expenses for ISS, PIS, Cofins and Other Taxes (1,660) (13) (1,582) Insurance Selling Expenses (258) (258) Income before Tax and Profit Sharing 9, (419) (64) 8,680 Income Tax and Social Contribution (3,191) (35) 419 (8) (2,815) Profit Sharing (72) Minority Interests (92) (92) Net Income 5, ,773 Accounting and Managerial Statements Reconciliation 3 rd Quarter of 2015 In R$ millions Accounting Non-recurring Events Tax Effect of Hedge Managerial Reclassifications Managerial Operating Revenues 15,265 1,342 10,653 (315) 26,945 Managerial Financial Margin 5,545 1,342 10, ,595 Financial Margin with Clients 13,922 1, ,319 Financial Margin with the Market (8,378) - 10,653-2,276 Commissions and Fees 7, (599) 7,082 Result from Insurance, Pension Plan and Premium Bonds Operations Before Retained Claims and Selling Expenses 1, ,268 Other Operating Income 177 (1) - (176) - Equity in Earnings of Affiliates and Other Investments (153) - Non-operating Income (10) - Result from Loan Losses (9,262) 4,629 - (20) (4,653) Provision for Loan Losses (10,357) 4,629 - (20) (5,747) Recovery of Loans Written Off as Losses 1, ,094 Retained Claims (437) (437) Other Operating Income/(Expenses) (12,491) 544 (1,063) 263 (12,748) Non-interest Expenses (11,764) (10,906) Tax Expenses for ISS, PIS, Cofins and Other Taxes (459) (12) (1,063) (39) (1,574) Insurance Selling Expenses (268) (268) Income before Tax and Profit Sharing (6,926) 6,515 9,590 (72) 9,108 Income Tax and Social Contribution 13,010 (6,343) (9,590) 12 (2,911) Profit Sharing (60) Minority Interests (79) (79) Net Income 5, ,117 Itaú Unibanco Holding S.A. 07

8 Management Discussion & Analysis Executive Summary We present below the income statement from a standpoint that highlights Operating Revenues, which are composed by the sum of the main accounts in which revenues from banking, insurance, pension plan and premium bonds operations are recorded. Income Statement Operating Revenues Perspective In R$ millions 4Q15 3Q15 change 4Q14 change change Operating Revenues 26,680 26,945 (266) -1.0% 23,754 2, % 103,910 89,840 14, % Managerial Financial Margin 16,764 17,595 (831) -4.7% 14,705 2, % 66,557 55,155 11, % Financial Margin with Clients 15,495 15, % 13,687 1, % 59,580 51,560 8, % Financial Margin with the Market 1,269 2,276 (1,007) -44.2% 1, % 6,977 3,595 3, % Commissions and Fees 7,645 7, % 6, % 28,500 25,777 2, % Result from Insurance, Pension Plan and Premium Bonds Operations Before Retained Claims and Selling Expenses 2,271 2, % 2, % 8,853 8,908 (55) -0.6% Result from Loan Losses (4,634) (4,653) % (3,284) (1,350) 41.1% (18,129) (13,023) (5,106) 39.2% Provision for Loan Losses (6,116) (5,747) (369) 6.4% (4,614) (1,502) 32.6% (22,898) (18,071) (4,827) 26.7% Recovery of Loans Written Off as Losses 1,482 1, % 1, % 4,769 5,049 (279) -5.5% Retained Claims (406) (437) % (497) % (1,597) (2,023) % Operating Margin 21,639 21,855 (216) -1.0% 19,973 1, % 84,184 74,795 9, % Other Operating Income/(Expenses) (12,959) (12,748) (211) 1.7% (11,633) (1,326) 11.4% (49,001) (44,439) (4,563) 10.3% Non-interest Expenses (11,119) (10,906) (212) 1.9% (10,113) (1,006) 9.9% (41,886) (38,483) (3,403) 8.8% Tax Expenses for ISS, PIS, Cofins and Other Taxes (1,582) (1,574) (9) 0.6% (1,239) (343) 27.7% (6,056) (4,856) (1,200) 24.7% Insurance Selling Expenses (258) (268) % (281) % (1,060) (1,100) % Income before Tax and Minority Interests 8,680 9,108 (427) -4.7% 8, % 35,183 30,356 4, % Income Tax and Social Contribution (2,815) (2,911) % (2,595) (220) 8.5% (10,994) (9,427) (1,568) 16.6% Minority Interests in Subsidiaries (92) (79) (13) 16.4% (85) (7) 8.6% (356) (311) (45) 14.5% Recurring Net Income 5,773 6,117 (344) -5.6% 5, % 23,832 20,619 3, % We present below the income statement from the standpoint that highlights the Managerial Financial Margin. Income Statement Managerial Financial Margin Perspective In R$ millions 4Q15 3Q15 change 4Q14 change change Managerial Financial Margin 16,764 17,595 (831) -4.7% 14,705 2, % 66,557 55,155 11, % Financial Margin with Clients 15,495 15, % 13,687 1, % 59,580 51,560 8, % Financial Margin with the Market 1,269 2,276 (1,007) -44.2% 1, % 6,977 3,595 3, % Result from Loan Losses (4,634) (4,653) % (3,284) (1,350) 41.1% (18,129) (13,023) (5,106) 39.2% Provision for Loan Losses (6,116) (5,747) (369) 6.4% (4,614) (1,502) 32.6% (22,898) (18,071) (4,827) 26.7% Recovery of Loans Written Off as Losses 1,482 1, % 1, % 4,769 5,049 (279) -5.5% Net Result from Financial Operations 12,130 12,942 (812) -6.3% 11, % 48,428 42,133 6, % Other Operating Income/(Expenses) (3,450) (3,835) % (3,082) (368) 11.9% (13,245) (11,777) (1,469) 12.5% Commissions and Fees 7,645 7, % 6, % 28,500 25,777 2, % Result from Insurance, Pension Plan and Premium Bonds Operations 1,607 1, % 1, % 6,196 5, % Non-interest Expenses (11,119) (10,906) (212) 1.9% (10,113) (1,006) 9.9% (41,886) (38,483) (3,403) 8.8% Tax Expenses for ISS, PIS, Cofins and Other Taxes (1,582) (1,574) (9) 0.6% (1,239) (343) 27.7% (6,056) (4,856) (1,200) 24.7% Income before Tax and Minority Interests 8,680 9,108 (427) -4.7% 8, % 35,183 30,356 4, % Income Tax and Social Contribution (2,815) (2,911) % (2,595) (220) 8.5% (10,994) (9,427) (1,568) 16.6% Minority Interests in Subsidiaries (92) (79) (13) 16.4% (85) (7) 8.6% (356) (311) (45) 14.5% Recurring Net Income 5,773 6,117 (344) -5.6% 5, % 23,832 20,619 3, % Itaú Unibanco Holding S.A. 08

9 Management Discussion & Analysis Executive Summary Net Income R$ millions 6,134 6,117 5,808 5,660 5,773 5,457 5,984 4,973 5,945 5,733 5,698 4,529 5,404 5,520 4,899 4,419 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Operating Revenues In the fourth quarter of 2015, operating revenues, representing revenues from banking, and insurance, pension plan and premium bond operations, totaled R$26,680 million, a 1.0% decrease from the previous quarter and a 12.3% increase from the same period of the previous year. The main components of operating revenues and other items of income statement are presented below. R$ millions 20,662 22,118 23,305 23,754 24,946 25,339 26,945 26,680 Recurring Net Income Net Income Recurring net income for the fourth quarter of 2015 amounted to R$5,773 million, representing a 5.6% decrease from the previous quarter and a 2.0% increase from the same period of the previous year. Compared to the previous quarter, the highlights were the increases of 1.1% in the financial margin with clients, of 7.9% in our commissions and fees and of 35.4% in recovery of credits written off as losses. These increases were more than offset by the decrease of 44.2% in our financial margin with the market, the increase of 6.4% in provision for loan losses and the increase of 1.9% in our non-interest expenses. In 2015, recurring net income was R$23,832 million, 15.6% higher compared to the previous year. The increase in net income was mainly due to an increase of 15.7% in operating revenues, partially offset by the increases of 26.7% in the provision for loan losses and of 8.8% in non-interest expenses. 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Managerial Financial Margin The managerial financial margin for the fourth quarter of 2015 totaled R$16,764 million, a decrease of R$831 million compared to the third quarter of 2015, mainly due to the decrease of R$1,007 million in our financial margin with the market. Our financial margin with clients increased R$176 million in the quarter. 4Q15 3Q15 2Q15 1Q15 4Q14 3Q14 1,269 2,276 1,561 1,871 1,018 1,083 13,687 13,287 15,495 15,319 14,673 14,092 R$ millions 15,963 14,705 14,369 16,764 17,595 16,235 2Q ,712 13,593 Return on Average Equity % 1Q Financial Margin with the Market 11,874 12,488 Financial Margin with Clients Compared to 2014, managerial financial margin increased R$11,402 million. This growth was due to the increases of R$8,020 million in financial margin with clients and of R$3,382 million in financial margin with the market. Financial Margin of Spread-Sensitive Operations, net of the Provision from Loan Losses 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Recurring Return on Average Equity (quarterly) Recurring Return on Average Assets (Annualized) The annualized recurring return on average equity reached 22.3% in the fourth quarter of Stockholders equity reached R$106.5 billion, a 3.0% increase compared to the previous quarter and an 11.1% increase from the same period of the previous year. Annualized recurring return on risk-weighted assets reached 1.7% in the fourth quarter of 2015, decreasing 20 basis points from the previous quarter. Our financial margin of spread-sensitive operations, net of provision for loan losses and recovery of loans written off as losses, increased 0.5% from the fourth quarter of 2014 and 3.2% when compared to the third quarter of The ratio of the provision for loan losses, net of recovery of loans written off as losses, to the spread-sensitive operations financial margin reached 34.0% this quarter, decreasing 80 basis points when compared to the previous quarter. R$ millions 29.3% 28.1% 28.7% 26.8% 10,817 3,164 11,513 11,657 3,231 3, % 33.6% 34.8% 34.0% 12,234 12,658 13,066 13,367 13,629 3,284 4,455 4,387 4,653 4,634 7,653 8,281 8,314 8,950 8,203 8,679 8,714 8,994 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Result from Loan Losses Financial Margin of Spread-Sensitive Operations (-) Result from Loan Losses Result from Loan Losses / Financial Margin of Spread-Sensitive Operations Itaú Unibanco Holding S.A. 09

10 Management Discussion & Analysis Executive Summary Result from Loan Losses R$ millions Non-Interest Expenses 3,164 3,231 3,343 3,284 4,252 4,465 4,741 4,614 4,455 4,387 4,653 4,634 5,515 5,520 5,747 6, % 3.5% 3.4% 3.4% 3.2% 3.2% 9,039 9,577 9,753 10,113 9,881 9, % 3.3% 10,906 11,119 1,088 1,234 1,397 1,330 1,060 1,133 1,094 1,482 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Provision for Loan Losses Recovery of Loans Written Off as Losses Result from Loan Losses The result from loan losses decreased 0.4% when compared to the previous quarter, totaling R$4,634 million in the quarter. This decrease was mainly due to the increase of 35.4% (R$387 million) in our revenues from recovery of loans written off as losses, partially offset by an increase of 6.4% (R$369 million) in provision for loan losses. In 2015, the result from loan losses reached R$18,129 million, a 39.2% increase when compared to the previous year, mainly due to higher provisions for loan losses (26.7%). 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Non-Interest Expenses (R$ million) Non-Interest Expenses / Average Assets (%) Non-interest expenses increased 1.9% in the fourth quarter of 2015 when compared to the third quarter of Personnel expenses decreased R$112 million, whereas administrative expenses increased R$208 million in the fourth quarter of 2015 when compared to the previous quarter, mainly due to expenses on third -party services, data processing and telecommunications. Compared to 2014, non-interest expenses increased R$3,403 million, up 8.8% from the same period of the previous year. Excluding operations abroad expenses, the increase would have been 6.2% in the period. Commissions and Fees R$ millions Efficiency Ratio and Risk-Adjusted Efficiency Ratio (*) 6,057 6,338 6,558 6,825 6,867 6,906 7,082 7, Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q Commissions and fees increased R$563 million (7.9%) from the previous quarter, totaling R$7,645 million. Compared to the previous year, these revenues grew R$2,723 million (10.6%). 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Quarterly Efficiency Ratio (%) Quarterly Risk-Adjusted Efficiency Ratio (%) Trailing 12-month Efficiency Ratio (%) Trailing 12-month Risk-Adjusted Efficiency Ratio (%) Result from Insurance, Pension Plan and Premium Bonds R$ millions ,536 1,366 1,437 1,446 1,482 1,544 1,563 1, ,232 1,247 1,403 1,366 1,397 1,446 1,469 1,455 (*) Calculation criteria are detailed on page 34. In the fourth quarter of 2015, efficiency ratio, according to the criteria that include all expenses except result from loan losses, reached 45.5%, an increase of 130 basis points compared to the previous quarter, mainly due to the decrease in financial margin with the market (44.2%) combined with the increase in our noninterest expenses (1.9%). In the 12-month period, the efficiency ratio reached 44.0%, improving 20 basis points from the previous quarter and 300 basis points from the same period of the previous year. 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Result from Other Activities Result from Insurance, Pension Plan and Premium Bonds Loss Ratio - Core Activities (%) In the fourth quarter of 2015, the result from insurance, pension plan and premium bonds from core activities, which consist of mass-market products related to life, property, credit, pension plan and premium bonds reached R$1,455 million, a decrease of R$14 million when compared to the previous quarter and an increase of R$88 million when compared to the fourth quarter of The loss ratio of core activities reached 29.4% this quarter. In the fourth quarter of 2015, the risk-adjusted efficiency ratio, which also includes the result from loan losses, reached 64.5%, an increase of 140 basis points when compared to the previous quarter, due to a decrease in the provision for loan losses (0.4%), in addition to the effects previously mentioned. In the 12-month period, risk-adjusted efficiency ratio reached 63.0%. Itaú Unibanco Holding S.A. 10

11 Management Discussion & Analysis Executive Summary Balance Sheet Assets In R$ millions, end of period 4Q15 3Q15 change 4Q14 change Current and Long-term Assets 1,340,483 1,303, % 1,188, % Cash and Cash Equivalents 18,544 18, % 17, % Short-term Interbank Investments 280, , % 229, % Securities and Derivative Financial Instruments 338, , % 299, % Interbank and Interbranch Accounts 67,373 69, % 63, % Loan, Lease and Other Loan Operations 473, , % 451, % (Allowance for Loan Losses) (34,078) (34,193) -0.3% (26,948) 26.5% Other Assets 195, , % 153, % Foreign Exchange Portfolio 68,909 64, % 42, % Other 126, , % 110, % Permanent Assets 18,689 18, % 19, % Investments 3,939 3, % 3, % Real Estate in Use 7,055 7, % 7, % Intangible Assets and Goodwill 7,695 7, % 8, % Total Assets 1,359,172 1,322, % 1,208, % At the end of the fourth quarter of 2015, our assets totaled R$1.36 trillion, a growth of 2.8% (R$36.5 billion) when compared to the previous quarter. The main changes are presented below: R$ billions Compared to the previous year, the increase of 12.4% (R$150.5 billion) was mainly due to the increases in short-term interbank investments, securities and loan operations. R$ billions Short-term Interbank Investments Loan, Lease and Other Loan Operations Securities and Derivative Financial Instruments Other Assets Change Dec-15 - Sep-15 Short-term Interbank Investments Securities and Derivative Financial Instruments Loan, Lease and Other Loan Operations Other Assets Change Dec-15 - Dec-14 Balance Sheet Liabilities and Equity In R$ millions, end of period 4Q15 3Q15 change 4Q14 change Current and Long-Term Liabilities 1,248,995 1,215, % 1,109, % Deposits 292, , % 294, % Demand Deposits 61,092 57, % 48, % Savings Deposits 111, , % 118, % Interbank Deposits 14,949 18, % 19, % Time Deposits 105, , % 108, % Deposits Received under Securities Repurchase Agreements 350, , % 325, % Fund from Acceptances and Issue of Securities 75,590 59, % 47, % Interbank and Interbranch Accounts 6,926 11, % 5, % Borrowings and Onlendings 104, , % 88, % Derivative Financial Instruments 31,116 42, % 17, % Technical Provisions for Insurance, Pension Plans and Premium Bonds 132, , % 112, % Other Liabilities 255, , % 217, % Subordinated Debt 65,785 65, % 54, % Foreign Exchange Portfolio 68,466 63, % 43, % Other 120, , % 119, % Deferred Income 1,960 1, % 1, % Minority Interest in Subsidiaries 1,755 1, % 2, % Stockholders' Equity 106, , % 95, % Total Liabilities and Equity 1,359,172 1,322, % 1,208, % The main changes in liabilities at the end of the fourth quarter of 2015, compared to the previous quarter, are presented in the chart below: R$ billions Compared to the previous year, the main changes are as follows: R$ billions Deposits Received under Fund from Acceptances Securities Repurchase and Issue of Securities Agreements Derivative Financial Instruments Other Liabilities Change Dec-15 - Sep-15 Fund from Acceptances and Issue of Securities and Borrowings and Onlendings Deposits Received under Securities Repurchase Agreements Foreign Exchange Portfolio Other Liabilities Change Dec-15 - Dec-14 Itaú Unibanco Holding S.A. 11

12 Management Discussion & Analysis Executive Summary Credit Portfolio with Endorsements, Sureties and Private Securities At the end of the fourth quarter of 2015, our total credit portfolio (including sureties, endorsements and private securities) reached R$585,504 million, decreasing 0.9% when compared to the previous quarter and increasing 4.6% compared to the same period of the previous year. Excluding the effect of the foreign exchange variation, our credit portfolio would have remained unchanged in the period and would have decreased 2.9% in the 12-month period. In the individuals segment, the highlight in the quarter was the growth of the credit card portfolio (6.3%) and of the mortgage loan portfolio (3.4%). In the 12-month period, the highlights were the payroll loan and mortgage loan portfolios, which increased 12.1% and 19.8%, respectively, whereas the vehicles portfolio decreased 7.6% in the quarter and 30.9% in the 12-month period. The companies segment, excluding private securities, decreased 1.8% in the quarter and increased 0.9% in the 12-month period. The corporate portfolio decreased 1.6% when compared to the previous quarter and increased 2.0% in the 12-month period, whereas the very small, small and middle market companies portfolio decreased Dec-15 Sep-15 Jun % when compared to the previous quarter and 1.7% in the 12- month period. Excluding the effect of the foreign exchange variation, the corporate portfolio would have decreased 1.0% when compared to the previous quarter and 9.2% in the 12-month period. The balance of our operations in Latin America decreased 0.6% in the quarter and increased 34.8% in the 12-month period. Excluding the effect of the foreign exchange variation, the growth of this portfolio would have been 4.9% when compared to the previous quarter and 7.3% in the 12-month period. The balance of endorsements and sureties reached R$74,244 million at the end of the fourth quarter of 2015, with a decrease of 1.2% when compared to the previous quarter and an increase of 0.7% in the past 12 months, mainly due to changes in the Latin America portfolio, which decreased 8.9% from the previous quarter and increased 28.8% in the 12-month period. In R$ millions, end of period 4Q15 3Q15 change 4Q14 change Individuals 187, , % 186, % Credit Card Loans 58,542 55, % 59, % Personal Loans 28,961 30, % 28, % Payroll Loans (1) 45,437 45, % 40, % Vehicle Loans 19,984 21, % 28, % Mortgage Loans 34,631 33, % 28, % Companies 288, , % 285, % Corporate Loans (2) 205, , % 201, % Very Small, Small and Middle Market Loans (3) 82,688 84, % 84, % Latin America (2) (4) 72,125 72, % 53, % Total with Endorsements and Sureties 548, , % 525, % Corporate - Private Securities (5) 37,431 38, % 34, % Total with Endorsements, Sureties and Private Securities 585, , % 559, % Total with Endorsements, Sureties and Private Securities (6) (ex-foreign exchange rate variation) 585, , % 603, % Endorsements and Sureties 74,244 75, % 73, % Individuals % % Corporate 65,976 66, % 66, % Very Small, Small and Middle Market 4,067 4, % 4, % Latin America (4) 3,650 4, % 2, % (1) Includes operations originated by the institution and acquired operations. (2) Certain credits that were classified as a Corporate Loans were reclassified to Latin America segment and for comparison purposes, prior periods have been reclassified. (3) Includes Rural Loans to Individuals. (4) Includes Argentina, Chile, Colombia, Paraguay and Uruguay. (5) Includes Debentures, CRI and Commercial Paper. (6) Calculated based on the conversion of the foreign currency portfolio (U.S. dollar and currencies of Latin America). Note: Mortgage and Rural Loan portfolios from the companies segment are allocated according to the client s size. For further details, please refer to page 18. Credit Portfolio Currency Breakdown NPL Ratio (90 days overdue) R$ billions % Mar-15 Dec-14 Sep-14 Jun-14 Mar Foreign Currency Itaú Unibanco Holding S.A Local Currency On December 31, 2015, R$147.1 billion of our total credit assets were denominated in or indexed to foreign currencies. That portion decreased 3.5% in the quarter, mainly due to the appreciation of the Brazilian real against the U.S. dollar and the currencies of other Latin American countries Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Individuals Total Companies At the end of the fourth quarter of 2015, the NPL ratio for operations overdue for over 90 days (NPL 90) increased 20 basis points when compared to the previous quarter and 40 basis points compared to December At the end of the fourth quarter, there were transfers of financial assets with no risk retention and with low probability of recovery, to affiliated company, related to specific economic groups. Excluding the effect of the transfer of financial assets, the NPL ratio for operations overdue for over 90 days of the total portfolio and of the companies portfolio would have reached 3.7% and 2.3%, respectively, in December

13 Management Discussion & Analysis Executive Summary 2015 Forecast (*) The table below presents the results for 2015 compared with our forecast previously disclosed: Actual Total Credit Portfolio 1 Growth of 3.0% to 7.0% Growth of 4.6% 2 Managerial Financial Margin 3 Growth of 14.5% to 17.5% Growth of 20.7% Provision for Loan Losses Net of Recovery of Loans Between R$15 billion and R$18 billion R$18.1 billion Commissions and Fees and Result from Insurance Operations 4 Growth of 9.5% to 11.5% Growth of 9.9% Non-Interest Expenses Growth of 7.0% to 10.0% Growth of 8.8% 2016 Forecast (*) The table below presents our 2016 forecast: Consolidated Brazil 5 Total Credit Portfolio 1 from -0.5% to 4.5% from -1.0% to 3.0% Financial Margin with Clients Growth of 2.0% to 5.0% Growth of 1.0% to 4.0% Provision for Loan Losses Net of Recovery of Loans Between R$22 billion and R$25 billion Between R$21 billion and R$24 billion Commissions and Fees 4 Growth of 6.0% to 9.0% Growth of 4.5% to 7.5% Non-Interest Expenses Growth of 5.0% a 7.5% Growth of 4.0% a 6.5% (1) Includes endorsements, sureties and private securities; (2) Excluding foreign exchange rate variation - Decrease of 2.9% (3) Includes Financial Margin with Clients and Financial Margin with the Market; (4) Commissions and Fees (+) Income from Insurance, Pension Plan and Premium Bonds Operations (-) Expenses for Claims (-) Insurance, Pension Plan and Premium Bonds Selling Expenses; (5) Includes units abroad ex-latin America. (*) Does not include the effect of CorpBanca s transaction. Although Although the the growth growth plans plans and and projections projections of of results results presented presented above above are are based based on on management management assumptions assumptions and and information information available available in in the the market market to to date, date, these these expectations expectations involve involve inaccuracies inaccuracies and and risks risks that that are are difficult difficult to to anticipate anticipate and and there there may may be, be, therefore, therefore, results results or or consequences consequences that that differ differ from from those those anticipated. anticipated. This This information information is is not not a guarantee guarantee of of future future performance. performance. The The use use of of these these expectations expectations should should take take into into consideration consideration the the risks risks and and uncertainties uncertainties that that involve involve any any activities activities and and that that are are beyond beyond our our control. control. These These risks risks and and uncertainties uncertainties include, include, but but are are not not limited limited to, to, our our ability ability to to perceive perceive the the dimension dimension of of the the synergies synergies projected projected and and their their timing, timing, political political and and economic economic changes, changes, volatility volatility in in interest interest and and foreign foreign exchange exchange rates, rates, technological technological changes, changes, inflation, inflation, financial financial disintermediation, disintermediation, competitive competitive pressures pressures on on products, products, prices prices and and changes changes in in tax tax legislation, legislation, among among others. others. Itaú Unibanco Holding S.A. 13

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15 4 th quarter of 2015 Management Discussion & Analysis Income Statement Analysis Itaú Unibanco Holding S.A.

16 Management Discussion & Analysis Income Statement Analysis Managerial Financial Margin The managerial financial margin for the fourth quarter of 2015 totaled R$16,764 million, decreasing R$831 million or 4.7% when compared to the previous quarter. In 2015, the managerial financial margin totaled R$66,557 million, increasing R$11,402 million or 20.7% when compared to The main drivers of these changes are presented below: In R$ millions 4Q15 3Q15 change change Financial Margin with Clients 15,495 15, % 59,580 51,560 8, % Spread-Sensitive Operations 13,629 13, % 52,720 46,220 6, % Working Capital and Other 1,866 1,952 (86) -4.4% 6,860 5,340 1, % Financial Margin with the Market 1,269 2,276 (1,007) -44.2% 6,977 3,595 3, % Total 16,764 17,595 (831) -4.7% 66,557 55,155 11, % Managerial Financial Margin with Clients The managerial financial margin with clients consists of revenues generated from the use of financial products by clients, including both account and non-account holders. For clarity purposes, we classify these operations into two different groups: i) financial margin on spread-sensitive operations and ii) working capital and other. In the fourth quarter of 2015, financial margin with clients totaled R$15,495 million, an increase of 1.1% when compared to the previous quarter, due to the increased margin on spread-sensitive operations, which was higher than the reduction in the margin of working capital and other. Working Capital and Other The financial margin of working capital and other reached R$1,866 million in the fourth quarter of 2015, a 4.4% decrease when compared to the third quarter of 2015, mainly due to the lower average CDI rate in the quarter. Annualized Rate of Working Capital and Other In R$ millions 4Q15 3Q15 change Average Balance 77,412 69,383 8, % Financial Margin 1,866 1,952 (86) -4.4% Average Rate ( p.a. ) 9.9% 11.6% -170 bps CDI - Annualized Quarterly Rate 13.8% 14.0% -20 bps In 2015, our financial margin with clients totaled R$59,580 million, an increase of 15.6% when compared to 2014, due to the higher margin of spread-sensitive operations and of working capital and other. Spread-Sensitive Operations 9.5% 9.6% % % 9.5% 10.1% % % 77 The financial margin of spread-sensitive operations, which includes the results from credit assets, non-credit assets and liabilities, totaled R$13,629 million in the fourth quarter of 2015, an increase of 2.0%, or R$262 million when compared to the previous period. 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Balance (R$ billion) Average Rate (p.a.) In 2015, the financial margin of spread-sensitive operations reached R$52,720 million and increased 14.1% or R$6,500 million when compared to the previous year. Annualized Rate of Spread-Sensitive Operations In R$ millions 4Q15 3Q15 change Average Balance 510, ,977 (1,715) -0.3% Financial Margin 13,629 13, % Average Rate ( p.a. ) 11.0% 10.8% 20bps Managerial Financial Margin with the Market The financial margin with the market consists of treasury transactions that include Asset and Liability Management (ALM) and proprietary trading operations. The financial margin with the market in the fourth quarter of 2015 totaled R$1,269 million, driven by the management of structural positions in Brazil and abroad. Financial Margin with the Market R$ millions 10.2% 10.5% 10.2% 10.5% 10.6% 10.8% 10.8% 11.0% ,083 1, ,871 1,213 1,561 1,383 2,276 1,682 1,744 1,269 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Balance (R$ billion) Average Rate (p.a.) 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Financial Margin with the Market 1-year moving average of Financial Margin with the Market (ex-sale of Shares) Itaú Unibanco Holding S.A. 16

17 Management Discussion & Analysis Income Statement Analysis Managerial Financial Margin with Clients As a result of the previously mentioned changes, the annualized average rate of managerial financial margin with clients, which excludes the financial margin with the market, reached 10.9% in the fourth quarter of 2015, remaining stable when compared to the third quarter of The annualized average rate of risk-adjusted financial margin with clients reached 7.5% in the fourth quarter of 2015, with an increase of 10 basis points when compared to the previous quarter. The annualized average rate of spread-sensitive operations reached 11.0% in the quarter, with an increase of 20 basis points when compared to the previous quarter. The annualized average rate of risk-adjusted financial margin of spread-sensitive operations reached 7.1% in the fourth quarter of 2015, with an increase of 20 basis points when compared to the previous quarter. 4Q15 3Q In R$ millions, end of period Average Balance Financial Margin Average Rate (p.a.) Average Balance Financial Margin Average Rate (p.a.) Average Balance Financial Margin Average Rate (p.a.) Spread-Sensitive Operations 510,263 13, % 511,977 13, % 507,356 52, % Working Capital and Other 77,412 1, % 69,383 1, % 69,164 6, % Financial Margin with Clients 587,675 15, % 581,360 15, % 576,520 59, % Provision for Loan Losses (6,116) (5,747) (22,898) Recovery of Loans Written Off as Losses 1,482 1,094 4,769 Financial Margin of Spread-Sensitive Operations after Provisions for Credit Risk Financial Margin with Clients after Provisions for Credit Risk 510,263 8, % 511,977 8, % 507,356 34, % 587,675 10, % 581,360 10, % 576,520 41, % Financial Margin with Clients and Spread-Sensitive Operations before and after Provisions for Credit Risk 13.1% 14.0% 13.8% 12.1% 10.8% 10.8% 11.1% 10.3% 10.5% 10.2% 10.5% 10.6% 10.3% 10.1% 10.4% 10.4% 10.5% 10.2% 10.8% 10.7% 10.9% 10.8% 11.0% 10.9% 7.3% 7.1% 7.6% 7.6% 7.4% 7.1% 7.8% 7.6% 7.0% 6.7% 7.4% 7.4% 7.5% 7.1% 6.9% 7.1% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Annualized average rate of spread-sensitive operations Annualized average rate of financial margin with clients Annualized average rate of risk-adjusted spread-sensitive operations Annualized average rate of risk-adjusted financial margin with clients CDI (annualized quarterly rate) Composition of the Change in the Financial Margin with Clients In order to better demonstrate the effect of the changes in our financial margin, we segregated the effects of changes in the balance of spread-sensitive operations, mix of products, clients and spreads and working capital and other effects. In the fourth quarter of 2015, the 1.1% increase in our financial margin with clients was mainly driven by the positive effect of the mix of products, clients and spreads, which more than offset the negative effect of the lower volume of spread-sensitive operations and the decrease in working capital margin and other. Financial Margin with Clients Change 15, (154) (86) 15,495 3Q15 Mix of products, clients and spreads Balance of Spread- Working Capital and (*) Sensitive Operations other R$ millions 4Q15 (*) Balances do not include the effects of foreign exchange rate variations. Itaú Unibanco Holding S.A. 17

18 Management Discussion & Analysis Income Statement Analysis Credit Portfolio Credit Portfolio by Product In the table below, the loan portfolio is split into two groups: individuals and companies. For a better understanding of the performance of these portfolios, the main product groups of each segment are presented below. In R$ millions, end of period 4Q15 3Q15 change 4Q14 change Individuals 209, , % 201, % Credit Card 58,542 55, % 59, % Personal Loans 28,411 29, % 27, % Payroll Loans (1) 45,437 45, % 40, % Vehicles 19,984 21, % 28, % Mortgage Loans 34,631 33, % 28, % Rural Loans % % Latin America (2) 22,055 21, % 15, % Companies 264, , % 250, % Working Capital (3) (5) 107, , % 108, % BNDES/Onlending 48,559 50, % 52, % Export / Import Financing (5) 37,071 39, % 30, % Vehicles 4,253 4, % 5, % Mortgage Loans 10,966 11, % 10, % Rural Loans 9,393 9, % 7, % Latin America (2) (5) 46,419 47, % 34, % Total without Endorsements and Sureties 473, , % 451, % Endorsements and Sureties 74,244 75, % 73, % Total with Endorsements and Sureties 548, , % 525, % Corporate Private Securities (4) 37,431 38, % 34, % Total Risk 585, , % 559, % (1) Includes operations originated by the institution and acquired operations. (2) Includes Argentina, Chile, Colombia, Paraguay and Uruguay; (3) Also includes Overdraft, Receivables, Hot Money, Leasing, and other; (4) Includes Debentures, CRI and Commercial Paper. (5) Certain credits that were classified as Working Capital and Export / Import Financing were reclassified to the Latin America segment, and for comparison purposes, prior periods have been reclassified. At the end of the fourth quarter of 2015, our total credit portfolio (including sureties, endorsements and private securities) reached R$585,504 million, decreasing 0.9% when compared to the previous quarter and growing 4.6% when compared to the fourth quarter of Individuals portfolio reached R$209,319 million at the end of the fourth quarter of 2015, an increase of 1.0% when compared to the previous quarter. In this quarter, the highlight was the growth of 6.3% in the credit card portfolio, reaching R$58,542 million, of 3.4% in mortgage loans, reaching R$34,631 million, and of 3.0% in the Individuals portfolio - Latin America, reaching R$22,055 million. Our vehicle portfolio decreased 7.6% reaching R$19,984 million. The companies loan portfolio decreased 2.0% in the fourth quarter of 2015, totaling R$264,511 million. Changes in this portfolio were mainly driven by decreases of 9.8% in vehicle portfolio, which reached R$4,253 million, of 5.1% in export-import financing, which reached R$37,071 million, of 4.6% in BNDES/Onlending, which reached R$48,559 million, and of 1.5% in the companies portfolio Latin America, which reached R$46,419 million. Excluding the effect of the foreign exchange variation and corporate private securities, the loan portfolio, without endorsements and sureties, would have increased 0.3% when compared to the previous quarter and decreased 3.7% in the 12- month period. Credit Portfolio by Business Sector (including endorsements and sureties) The changes in the companies loans portfolio, including the Latin America portfolio, are listed below: In R$ millions, end of period 4Q15 3Q15 change Public Sector 4,648 4,719 (71) -1.5% Private Sector Companies 329, ,598 (6,170) -1.8% Vehicles and auto parts 21,867 22,597 (731) -3.2% Real Estate 21,124 21,310 (185) -0.9% Food and beverage 20,484 20, % Transportation 16,695 17,766 (1,071) -6.0% Agribusiness and fertilizers 16,403 17,219 (815) -4.7% Energy and water treatment 13,750 12, % Steel and metallurgy 13,234 13,816 (581) -4.2% Sugar and Alcohol 11,028 11,290 (262) -2.3% Banks and other financial institutions 10,255 10,753 (498) -4.6% Petrochemical and chemical 9,977 10,164 (186) -1.8% Telecommunications 9,614 9, % Capital Assets 9,366 9,643 (277) -2.9% Mining 8,214 7, % Construction Material 7,457 7,777 (320) -4.1% Pharmaceutical and cosmetics 6,791 6,973 (182) -2.6% Infrastructure work 6,745 7,100 (354) -5.0% Oil and gas 6,497 7,176 (678) -9.5% Electronic and IT 6,267 6,646 (379) -5.7% Clothing and footwear 5,312 5,505 (193) -3.5% Services - Other 31,397 32,016 (619) -1.9% Commerce - Other 19,208 17,695 1, % Industry - Other 9,547 9,902 (355) -3.6% Other 48,195 49,890 (1,695) -3.4% Total 334, ,317 (6,241) -1.8% Itaú Unibanco Holding S.A. 18