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Announcement to the Market - BRGAAP - Results for the 3rd Quarter of 2018

Itaú Unibanco Holding S.A. Results for the 3rd quarter of 2018

SÃO PAULO, Oct. 30, 2018 /PRNewswire/ -- Itaú Unibanco Holding S.A. ("Company") announces to its shareholders and the market at large that the Complete Financial Statements and the Management Discussion and Analysis for the 3rd quarter of 2018 ending September 30, 2018 are already available at the Investor Relations website (www.itau.com.br/investor‐relations).

Conference calls will be held with research analysts on Tuesday, October 30 in English at 10:00 a.m. (Brasília time) and in Portuguese at 11:30 a.m. (Brasília time).

Alexsandro Broedel
Group Executive Finance Director and Head of Investor Relations

 

Balance Sheet

BRGAAP

Adjustments and Reclassifications 2

IFRS


BRGAAP

Adjustments and Reclassifications 2

IFRS


Sep/30/2018




Dec/31/2017


Total Assets

1,613,162

(88,673)

1,524,489


1,503,503

(67,264)

1,436,239

Cash and Cash Equivalents, Compulsory Deposits and Financial Assets At Amortized Cost 3 4 6

1,156,310

(3,864)

1,152,446


1,031,742

28,310

1,060,052

(-) Estimated Loss at Amortized Cost 5

(34,278)

(754)

(35,032)


(36,325)

(412)

(36,737)

Financial Assets at Fair Value Through Other Comprehensive Income 4

101,963

(53,084)

48,879


103,538

(51,305)

52,233

(-) Expected Loss at Fair Value Through Other Comprehensive Income 5

(3,367)

3,281

(86)


(2,892)

2,808

(84)

Financial Assets at Fair Value Through Profit or Loss 4

287,413

(28,076)

259,338


308,570

(35,034)

273,536

Tax Assets 7

53,780

(6,958)

46,822


59,648

(15,399)

44,249

Investments in Associates and Jointly Controlled Entities, Goodwill, Fixed Assets, Intangible Assets, Assets Held for Sale and Other Assets

51,341

781

52,122


39,224

3,766

42,990









Total Liabilities

1,474,465

(94,883)

1,379,582


1,364,565

(72,683)

1,291,883

Financial Assets at Amortized Cost 3 6

1,178,680

(89,943)

1,088,737


1,088,090

(63,506)

1,024,584

Financial Assets at Fair Value Through Profit or Loss 4

32,063

30

32,093


26,930

281

27,211

Expected Loss (Loan Commitments and Financial Guarantees) 5

1,397

2,987

4,384


1,950

2,972

4,922

Provision for Insurance and Pension Plan

193,366

1,090

194,456


180,445

787

181,232

Provisions

18,971

-

18,971


19,736

-

19,736

Tax Liabilities 7

10,675

(4,477)

6,198


20,440

(12,604)

7,836

Other Liabilities

39,313

(4,570)

34,743


26,974

(612)

26,362

Total Stockholders' Equity

138,696

6,211

144,907


138,938

5,418

144,356

Non-controlling Interests

13,661

1,367

15,028


12,014

964

12,978

Total Controlling Stockholders' Equity 8

125,035

4,844

129,879


126,924

4,454

131,378

















1 BRGAAP represents accounting practices in force in Brazil for financial institutions, according to regulation of the Central Bank of Brazil;





2 Resulted from reclassification of assets and liabilities and other effects from the adoption of IFRS;







3 Resulted from the elimination of transactions between parent company and exclusive funds (particularly PGBL and VGBL funds), which are consolidated under IFRS;


4 Refer to reclassification of financial assets between measurement categories at fair value and amortized cost;






5 Application of criterion for calculation of Expected Loss as set forth by IFRS;








6 Difference in accounting, particularly from Foreign Exchange Portfolio, which are now be presented as net effect between Assets and Liabilities;



7 Difference in accounting, particularly differed taxes, which are now accounted for as net effect between Assets and Liabilities in each one of the consolidated companies;


8 Reconciliation of Controlling Stockholders' Equity is presented in the following table.









 


Stockholders' Equity *

Result *


Sep/30/2018

3rd Q/18

2nd Q/18

3rd Q/17

jan-sep/18

jan-sep/17

 BRGAAP - Values Attributable to Controlling Stockholders

125,035

6,247

6,244

6,077

18,772

18,143

(a) Expected Loss - Loan and Lease Operations and Other Financial Assets

(316)

189

(459)

(329)

(179)

(516)

(b) Adjustment to Fair Value of Financial Assets

(165)

(129)

(57)

142

(261)

345

(c) Acquisition of Interest in Porto Seguro Itaú Unibanco Participações S.A

444

(2)

(2)

(2)

(6)

(6)

(d) Criteria for Write-Off of Financial Assets

2,256

(17)

(20)

70

8

(39)

(e) Financial Lease Operations

393

(40)

(40)

(34)

(120)

(92)

(f) Other adjustments

2,231

(123)

74

69

40

552

IFRS - Values Attributable to Controlling Stockholders

129,879

6,125

5,740

5,993

18,254

18,387

IFRS - Values Attributable to Minority Stockholders

15,028

206

154

67

528

328

IFRS - Values Attributable to Controlling Stockholders and Minority Stockholders

144,907

6,331

5,894

6,060

18,782

18,715








* Events net of tax effects














Differences between IFRS and BRGAAP Financial Statements







(a) In the adoption of IFRS 9, there was a change in the calculation model of incurred loss (IAS 39) to expected loss, considering forward-looking information. On BRGAAP, the concept of Expected Loss is used, pursuant to BACEN Resolution No. 2,682/999

(b) Under IFRS, stocks and quotas classified as permanent investments were measured at fair value and its gains and losses were recorded directly in Result. Additionally, there was a change in the model of classification and measurement of financial assets due to the new categories introduced by IFRS 9

(c) Under IFRS, the effect of accounting at fair value of the acquisition of interest in Porto Seguro Itaú Unibanco Participações S.A. was recognized

(d) Criterion for write-off of financial assets on IFRS considers the recovery behavior

(e) Under IFRS (IAS 17) the financial lease operations are recorded as Fixed Assets,  as a contra-entry of Other Financial Liabilities. Under BRGAAP, as from September 30, 2015, the consideration of these transactions are now recorded in result, in accordance with CMN Resolution No. 3,617/08

(f) Other Adjustments is mainly composed of reversal of Amortizations of Goodwill under  BRGAAP







9 More details in the Complete Financial Statements for January to September, 2018







 

Recurring Result

3rd Q/18

3rd Q/17


BRGAAP

IFRS

Variation

BRGAAP

IFRS

Variation

Result - Attributale to Controlling Stockholders

6,247

6,125

(122)

6,077

5,993

(84)

Exclusion of the Non-Recurring Events

207

1

(206)

177

52

(125)

Goodwill Amortization

206

-

(206)

125

-

(125)

Disposal of IRB shares

-

-

-

(155)

(155)

-

Provisions for Contingencies

-

-

-

70

70

-

Impairment

1

1

-

137

137

-

Recurring Result - Attributable to Controlling Stockholders

6,454

6,126

(328)

6,254

6,045

(209)


Contact:
Itaú Unibanco - Corporate Communication
(11) 5019-8880 / 8881 - imprensa@itau-unibanco.com.br 

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