Exhibit 99.1
ITAÚ UNIBANCO HOLDING S.A. CNPJ 60.872.504/0001-23 A Publicly-Listed Company NIRE 35300010230 ANNOUNCEMENT TO THE MARKET Itaú Unibanco Holding S.A. 2nd Quarter 2020 Result 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 2nd quarter of 2020 ending June 30, 2020 are already available on the Investor Relations website (www.itau.com.br/investor-relations). Additionally, we forward the information described below: • Press Presentation on the quarterly result, scheduled for 08/04/2020 at 8:30 am (Brasĺlia official time) (Attachment 01); • Presentation for public conference calls on the quarterly result, scheduled for Tuesday, 08/04/2020, in Portuguese at 09:00 am (EDT) and in English at 10:30 am (EDT) (Attachment 02); • Institutional Presentation of the 2nd quarter of 2020 (Attachment 03). The expectations and tendencies presented are based on information available up to the moment and involve risks, uncertainties, and assumptions that may be beyond our control. These information’s strengthen our commitment to transparency in our disclosures to the many strategic audiences we have. São Paulo ‐ SP, August 04, 2020. Alexsandro Broedel Group Executive Finance Director and Head of Investor Relations
Attachment 01 (portuguese only)
Teleconferência com a Imprensa Resultados 2T20 04/08/2020
Contexto Momento atual Indicadores PIB Postos de trabalho Medidas do Taxa de juros—% variação em % (CAGED com ajuste sazonal) Governo SELIC (final do período) econômicos -10,6% -1,3 mi ~R$ 370 bi 2,25% Indicadores sugerem que a Expectativa¹ Segundo trimestre ~ 5% do PIB -2,25 p.p 2T20 vs. 1T20 de 2020 (mar – jul/20) (jul/20 vs. dez/19) atividade econômica atingiu o piso em abril e já mostra alguma recuperação Índice Itaú de Atividade Econômica (base 100 = nível de março, pré-crise). Considera o consumo de bens, consumo de serviços (em operações da Itaucard) e uma proxy para a energia elétrica industrial. 100 91 84 55 (1) Expectativa: Equipe Econômica do Itaú Unibanco. 13/03 28/03 09/06 25/07 2
Contexto Suporte aos clientes durante a crise R$ 52 bilhões em flexibilização das condições de Foram concedidos Ações conjuntas pagamentos de empréstimos em novos créditos com o governo Em 30 de junho de 2020 16 de março a 17 de julho de 2020 R$ 1,6 bilhão R$ 96,8 bilhões de crédito emergencial para folha de pagamento Esta iniciativa inédita visa tratar de forma estruturada o para pagar o salário de mais 660 mil endividamento, dando fôlego aos clientes e garantindo funcionários nos últimos meses que tenham condições sustentáveis ao longo do tempo. R$ 14,1 pessoas físicas bilhões 1º banco privado O leque de soluções customizadas inclui carência no pagamento, a oferecer linha de alongamento de prazos de empréstimos e oferta de crédito adicional. micro e crédito do Pronampe R$ 17,1¹ pequenas R$ 3,6 bilhões - todo o volume Já beneficiou cerca de: Carência de até empresas disponibilizado—para cerca de 36 mil bilhões 1,8 milhão 120 dias para pessoas físicas micro e pequenas empresas 180 dias para micro e pequenas empresas R$ 2,9 bilhões pessoas físicas R$ 13,2 médias Alongamento do prazo de até empresas subscritos pelo Itaú Unibanco na bilhões operação entre CCEE(*) e bancos 200 mil 6 anos para pessoas físicas de um total de R$ 15,2 bi, para apoiar as micro e 5 anos para micro e pequenas empresas geradoras, distribuidoras e pequenas R$ 52,4 grandes empresas concessionárias de energia empresas Melhores condições de taxas de juros bilhões (*) CCEE – Câmara de Comercialização de Energia Elétrica (1) Considera o crédito emergencial para folha de pagamento e linha de crédito do Pronampe. 3
Destaque Todos pela saúde R$ 94 milhões R$ 222 milhões para informar para preparar ~ 175 milhões de pessoas a sociedade para o retorno à normalidade Campanhas de esclarecimento e Apoio em pesquisas epidemiológicas e conscientização da população e orientação para o tratamento da covid-19 para o uso correto de máscaras de proteção. Investimento nas novas fábricas de Dos mais de vacinas da Fiocruz e Instituto Butantã R$ 1,2 bilhão doados R$ 347 milhões para proteger até o momento, 330 mil profissionais de saúde R$ 396 milhões e 172 mil pacientes para cuidar Mais de R$ 1 bilhão já apoio a 50 mil idosos Beneficiados pela distribuição de mais de foram destinados em 50 milhões de equipamentos de proteção. E cuidadores em mais de 600 instituições 4 áreas de atuação. + 25 mil testes por dia 105 mil oxímetros Algumas das principais Início das operações da Central de Testagem atendendo todos os municípios do Brasil no dia 31 no RJ e no dia 7 de agosto no CE realizações destes 90 dias. 44 mil testes 14 milhões de máscaras E ações de conscientização para caminhoneiros Distribuídas para idosos, usuários de transporte público, moradores de comunidades, população 1 mil equipamentos hospitalares indígena e pessoas em situação de rua. Implementação de Centros de Acolhimento em áreas vulneráveis. 4
2020 ESG Aspectos ESG vêm sendo integrados à gestão do Banco há mais de duas décadas 1999 2004 2005 2008 2009 2010 2017 2018 2019 Sustainability Dow Jones Princípios do Índice de Princípios Global Carbon Índice de Objetivos de Princípios para Equador Sustentabilidade para Reporting Disclosure Igualdade de Desenvolvimento Responsabilidade Index (DJSI) Empresarial Investimento Initiative Project Gênero da Sustentável Bancária (ISE) Responsável Standards (CDP) Bloomberg (ODS) (ONU) (PSI) (GRI) 2020 Plano integrado Em conjunto com os bancos Bradesco e Santander, anunciamos 10 medidas concretas, construídas a partir de 3 frentes prioritárias para a região: Desde 2012 para promoção do conservação ambiental Compensamos 100% e desenvolvimento da bioeconomia de nossas emissões desenvolvimento diretas (escopo 1)1 investimento em infraestrutura sustentável sustentável da Desde 2017 garantia dos direitos básicos da população Compensamos 100% Amazônia de nossas emissões Os três bancos estão trabalhando em conjunto no detalhamento das indiretas (escopo 2)2 iniciativas e no estabelecimento de objetivos, metas e métricas claros. Práticas de gestão e 100% aderentes ao TCFD até 2022 Seguimos o principal framework mundial da agenda de Adotamos os indicadores SASB transparência ESG mudanças climáticas – Task Force on Climate-related Reportamos 12 dos 14 indicadores do Sustainability Accounting Financial Disclosures. Standards Board em nosso Relatório Anual Integrado 2019 (1) Escopo 1: Emissões diretas de gases do efeito estufa (GEE) provenientes de fontes que pertencem ou são controladas pelo Itaú Unibanco; (2) Escopo 2: Emissões indiretas de GEE provenientes da aquisição de energia elétrica que é consumida pelo Itaú Unibanco. 5
2T20 Destaques financeiros Em R$ bilhões Carteira de crédito Lucro líquido 7,2 7,3 R$ 811,3 bi 7,0 4,2 811,3 recorrente 3,9 788,3 703,4 722,6 R$ 4,2 bi 674,5 2T19 3T19 4T19 1T20 2T20 jun/19 set/19 dez/19 mar/20 jun/20 Custo do crédito1 ROE recorrente 23,5% 23,5% 23,7% R$ 7,8 bi 13,5% 12,8% 10,1 13,5 % 5,8 7,8 4,0 4,5 13,0% 13,0% ROE recorrente (%) 12,5% 12,5% 12,5% Custo de capital médio (%) 2T19 3T19 4T19 1T20 2T20 2T19 3T19 4T19 1T20 2T20 Espaçoreservado (1) Despesapararodapé de Provisão para Créditos de Liquidação Duvidosa + Recuperação de Créditos + Impairment + Descontos Concedidos) 6
2T20 Carteira de crédito Em R$ bilhões Jun/20 Mar/20 Jun/19 Originação de crédito¹ Pessoas físicas 228,8 238,1 -3,9% 222,3 2,9% 1S20 vs. 1S19 Cartão de crédito 72,9 83,8 -13,1% 79,3 -8,1% Pessoas físicas + 5% Crédito pessoal 37,3 37,4 -0,2% 32,8 13,7% Crédito consignado 50,4 50,3 0,2% 49,1 2,6% Micro, pequenas e médias empresas + 13% Veículos 19,5 19,4 0,3% 17,2 13,2% Grandes empresas + 59% Crédito imobiliário 48,8 47,2 3,5% 44,0 11,0% Total Brasil ² + 29% Micro, pequenas e médias empresas 107,4 104,5 2,8% 83,1 29,3% Emissão de títulos privados ³ - 16% Total PF + Micro, pequenas e médias empresas 336,2 342,6 -1,8% 305,4 10,1% Grandes empresas 259,2 250,2 3,6% 203,4 27,5% Operações de crédito 175,4 171,9 2,0% 146,4 19,8% Movimentação do crédito pessoal Títulos privados 83,9 78,3 7,1% 56,9 47,3% Jun/20 vs. Mar/20 Total Brasil 595,5 592,8 0,5% 508,8 17,0% Crédito sob medida + 44% América Latina 215,9 195,6 10,4% 165,7 30,2% 674,5 Cheque especial - 23% Total com garantias financeiras e títulos privados 811,3 788,3 2,9% 20,3% 736,7 Crediário - 36% Total (ex-variação cambial) 811,3 810,8 0,1% 10,1% (1) Não considera originação de cartão de crédito, cheque especial, renegociação de dívida e outros créditos rotativos. Média por dia útil no período, exceto para emissão de títulos privados; (2) Não inclui emissão de títulos privados; (3) Fonte: ANBIMA. Considera o volume total das emissões de títulos privados de renda fixa e híbridos, coordenadas pelo Itaú Unibanco no mercado local (inclui volume distribuído. 7
2T20 Provisão para perda de crédito Em R$ bilhões Modelo de perda esperada Custo do crédito¹ 5,3% Relação entre 3,3% 3,9% Alocação da provisão total 2,4% 2,6% o custo do 10,1 crédito¹ anualizado Jun/20 vs. Jun/19 e a carteira 7,8 4,5 5,8 49,3 Total + 48,9% de crédito²—(%) 4,0 47,1 Perda Esperada 2T19 3T19 4T19 1T20 2T20 33,1 25,7 Perda Potencial + 99,4% 22,6 Relacionada à perda esperada em Varejo e perdas potenciais do Atacado. R$ 12,8 bi Índice de cobertura (NPL 90 dias—%) 12,9 Ratings agravados 920% Atacado—Brasil Relacionada a agravamento da + 19,6% classificação de risco de operações em R$ 1,9 bi 638% 11,5 11,4 atraso e de operações renegociadas. 341% América Latina 9,5 399% 281% Total 247% Atraso 227% 239% + 13,8% 208% 212% Varejo—Brasil 10,7 13,0 12,1 Relacionado ao provisionamento 193% mínimo requerido em função do atraso. R$ 1,5 bi 172% jun/19 set/19 dez/19 mar/20 jun/20 Jun/19 Mar/20 Jun/20 (1) Despesa de Provisão para Créditos de Liquidação Duvidosa + Recuperação de Créditos + Impairment + Descontos Concedidos; (2)Saldo médio da carteira de crédito com avais, fianças e títulos privados considerando-se os dois últimos trimestres. 8
2020 Perspectivas Em função da baixa Níveis de liquidez e capitalização adequados aos nossos cenários de stress test. visibilidade sobre a extensão e profundidade A carteira de crédito, no curto prazo, seguirá com expansão proporcionalmente maior no segmento de grandes empresas, ao mesmo tempo em que a flexibilização de créditos para dos efeitos da crise atual, pessoas físicas, micro e pequenas empresas levará a carteira a manter estabilidade nesses manteremos suspensas as segmentos. A reversão desta tendência de mudança de mix pode ser causada por uma maior projeções para o ano de demanda de clientes pessoa física e/ou pelo incremento da atividade no mercado de capitais. 2020. Potencial redução adicional da taxa média da margem financeira com clientes (NIM) devido à progressiva mudança do mix da carteira de crédito e impacto da menor taxa de juros na remuneração do nosso capital de giro próprio e margem de passivos. Crescimento trimestral das receitas de serviços e seguros em linha com a tendência de recuperação da atividade econômica e reabertura do mercado de capitais. Possível redução no custo do crédito no curto prazo – ancorado no modelo de perda esperada que reagirá prontamente a mudanças no cenário macroeconômico do país e as condições financeiras dos nossos clientes. A gestão estratégica de custos baseada no contínuo investimento em tecnologia, nas novas formas de trabalho, na otimização dos canais de distribuição, além dos projetos estruturais de Nota: As perspectivas apresentadas neste slide não devem ser entendidas como projeção formal de eficiência continuará trazendo benefícios nos próximos trimestres. performance financeira para o ano de 2020. 9
Teleconferência com a Imprensa Resultados 2T20 04/08/2020 Itaú Unibanco Holding S.A.
Attachment 02
Conference call 2Q20 Earnings review São Paulo, August 4th, 2020 Candido Botelho Bracher President and CEO Milton Maluhy Filho Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Director, Group Head of Finance and Investor Relations Renato Lulia Jacob Head of Investor Relations and Market intelligence Itaú Unibanco Holding S.A.
Context Current outlook Economic GDP Formal Jobs Government Interest rate—% % change (CAGED, seasonally adjusted) measures SELIC (end of period) indicators -10.6% -1.3M ~R$370B 2.25% Indicators suggest Prospect¹ Second quarter ~5% of GDP -225 bps 2Q20 vs. 1Q20 of 2020 (Mar. to July-20) (July-20 vs. Dec-19) economic activity hit the bottom in April and already shows signs of rebounding. Itaú Economic Activity Index (base 100 = March level, pre-crisis). Considers the consumption of goods, services (in Itaucard operations) and a proxy for industrial electricity. 100 91 84 55 (1) Forecast by Itaú Unibanco Economic Team. 03-13 03-28 06-09 07-25 2
Context Support for clients during the crisis R$52 billion in loan portfolio reprofiling New credits were Participation in In June 30, 2020 granted government initiatives March 16 to July 17, 2020 R$1.6 billion R$96.8 billion in emergency credit for payrolls This unprecedented initiative aims to address to finance salaries of more than 660 thousand employees in the last indebtedness using a structured approach, providing months clients with some respite and ensuring that they enjoy R$14.1 individuals st sustainable conditions over time. billion 1 private bank to offer the Pronampe² The range of customized solutions includes grace periods, extended credit line loan terms and additional credit offer. very small R$17.1¹ and small R$ 3.6 billion - all available volume –billion companies for about 36 thousand very small and It has already benefited: Grace period of up small companies 120 days for individuals ~1.8 million 180 days for very small and small companies R$2.9 billion R$13.2 middle-individuals subscribed by Itaú Unibanco in billion market Term extension of up to companies the initiative between CCEE³ ~200 thousand 6 years for individuals and banks of a total of R$ 15.2 billion, to very small and small 5 years for very small and small companies R$52.4 large companies support energy generators, companies billion distributors and concessionaires Better interest rate conditions (1) Includes emergency credit for payroll financing and the Pronampe² credit line; (2) Pronampe is a national support program for very small and small companies; (3) Chamber of Commercialization of Electric Energy 3
Retail Loan Carteira portfolio Flexibilizada reprofiling R$52 billion Reprofiled portfolio by product (in R$ billions) March 16 to June 30, 2020 in loan reprofiling for Very small and individuals, very small and Individuals 37.6 14.6 small companies small businesses Mortgage loans 16.1 Working capital 12.1 Personal loans 12.9 Vehicle loans 2.5 100%up to date in February Vehicle loans 4.7 Cards 2.8 Payroll loans 1.0 58%are collateralized Reprofiled volume per working day (in R$ billions) 1.0 1.0 90% in ratings AA to C 0.8 0.6 93% individuals 0.4 0.3 83% very small and small companies 03/16 to 04/18 to 05/02 to 05/16 to 05/30 to 06/13 to 04/17 05/01 05/15 05/29 06/12 06/26 4
Highlights Todos pela saúde R$94 million R$222 million to inform to prepare ~ 175 million people society to resume social activities as normal Campaigns to clarify and raise awareness Support for epidemiological research among the population and guidance on and for the treatment of covid-19 the proper use of protective masks Investment in the new vaccine From R$1.2 billion manufacturing plants of Fiocruz R$347 million and Instituto Butantã donated to date, to protect more than $1 billion has 330,000 health professionals R$396 million and 172,000 patients to care already been allocated Benefited by the distribution of more than support to 50,000 elderly people to 4 areas of activity. 50 million protective equipment and caregivers in more than 600 institutions Next, check out some of the main + 25,000 tests per day 105,000 oximeters achievements in these 90 days. Test Centers operations begins on the 31st of serving all cities in Brazil July in Rio de Janeiro city and on the 7th of August in the Ceará state 44,000 tests and awareness initiatives for truck drivers 14 million masks Distributed to the elderly, users of public 1,000 units of hospital equipment transport, residents of communities, Implementation of Reception Centers in indigenous people and homeless people vulnerable areas 5
2020 ESG ESG aspects have been integrated into the Bank’s management for over two decades 1999 2004 2005 2008 2009 2010 2017 2018 2019 Sustainability Dow Jones Equator B3’s Corporate Principles for Global Carbon Bloomberg’s Sustainable Principles for Principles Sustainability Responsible Reporting Disclosure Gender Development Banking Index (DJSI) Index Investment Initiative Project Equality Goals Responsibility (ISE) (PRI) Standards (CDP) Index (SDG) (UN) (GRI) 2020 Integrated plan to Together with the banks Bradesco and Santander, we announced 10 concrete measures targeting 3 areas considered top priority for the region: Since 2012 promote We offset 100% Environmental conservation and development of a bioeconomy of our direct sustainable emissions (scope 1)1 Investment in sustainable infrastructure development of Since 2017 Guarantee of the basic rights for the population We offset 100% the Amazon of our indirect The three banks are working together on specifying the initiatives and emissions (scope 2)2 setting clear objectives, goals and metrics. ESG management 100% adherent to the TCFD until 2022 We follow the main global framework of the climate We adopted the SASB indicators and transparency practices change agenda—Task Force on Climate-related We reported 12 of the 14 indicators of the Sustainability Accounting Financial Disclosures. Standards Board in our Integrated Annual Report 2019. (1) Scope 1: Direct greenhouse gas (GHG) emissions from sources that are owned or controlled by Itaú Unibanco. (2) Scope 2: Indirect GHG emissions from the acquisition of electricity that is consumed by Itaú Unibanco. 6
Financial Highlights
2Q20 Financial Highlights In R$ billions Credit Portfolio Recurring 7.2 7.3 R$811.3 bn 7.0 4.2 811.3 net income 3.9 788.3 703.4 722.6 R$4.2 bn 674.5 2Q19 3Q19 4Q19 1Q20 2Q20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Cost of Credit ¹ Recurring ROE 23.5% 23.5% 23.7% R$7.8 bn 13.5% 12.8% 10.1 13.5 % 5.8 7.8 4.0 4.5 13.0% 13.0% Recurring ROE (%) 12.5% 12.5% 12.5% Average Cost of Capital (%) 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 (1) Provision for Loan Losses + Recovery of Loans + Impairment + Discounts Granted Espaço reservado para rodapé 8
2Q20 Credit portfolio In R$ billions Jun-20 Mar-20 Jun-19 Credit origination¹ Individuals 228.8 238.1 -3.9% 222.3 2.9% 1H20 vs. 1H19 Credit card loans 72.9 83.8 -13.1% 79.3 -8.1% Individuals + 5% Personal loans 37.3 37.4 -0.2% 32.8 13.7% Payroll loans 50.4 50.3 0.2% 49.1 2.6% Very Small, Small and Middle Market + 13% Vehicle loans 19.5 19.4 0.3% 17.2 13.2% Corporate + 59% Mortgage Loans 48.8 47.2 3.5% 44.0 11.0% Total Brazil ² + 29% Very Small, Small and Middle Market Loans 107.4 104.5 2.8% 83.1 29.3% Private securities issuance³ - 16% Individuals + SME’s Loans 336.2 342.6 -1.8% 305.4 10.1% Corporate loans 259.2 250.2 3.6% 203.4 27.5% Credit operations 175.4 171.9 2.0% 146.4 19.8% Change in personal loans Corporate Securities 83.9 78.3 7.1% 56.9 47.3% Jun-20 vs. Mar-20 Total Brazil 595.5 592.8 0.5% 508.8 17.0% Personalised credit + 44% Latin America 215.9 195.6 10.4% 165.7 30.2% 674.5 Overdraft - 23% Total with Financial Guarantees and Corporate Securities 811.3 788.3 2.9% 20.3% 736.7 Installment credit - 36% Total (ex-foreign exchange rate variation) 811.3 810.8 0.1% 10.1% Note: (1) Does not consider origination of credit card. overdraft. debt renegotiation and other revolving credits. Average origination per working day in the period. except for private securities issuance. (2) Does not include private securities issuance. (3) Source: ANBIMA (Brazilian Financial and Capital Markets Association). Considers total volume of fixed income and hybrid private securities issuance arranged by Itaú Unibanco on the local market (includes distributed volumes). 9
2Q20 Financial margin with clients Annualized average rate %—Consolidated Annualized average rate %—Brazil 9.9% 10.0% 10.0% 10.0% 10.0% 12.2% 12.1% 11.8% 12.1% 12.2% 12.2% 11.9% 9.8% 9.8% 9.2% 11.1% 8.4% 10.2% 7.6% 7.7% 7.6% 7.6% 7.5% 9.5% 9.6% 9.2% 9.2% 9.2% 9.0% 7.4% 8.4% 6.7% 3.7% 4.3% 5.2% 4.1% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Financial Margin with Clients Risk-adjusted Financial Margin with Clients Change in financial margin with clients R$ billion R$0.3 bn 17.0 15.8 0.7 0.2 0.1 15.4 1.0 16.5 (1.3) (0.6) (0.7) (0.04) 1Q20 1Q20 1Q20 Retail Product Segment Mix2 Asset Spreads Average Asset Latin America Other 3 2Q20 2Q20 2Q20 Working Capital1 Spread-Sensitive Mix Portfolio (ex-Brazil) Spread-Sensitive Working Capital1 and Other Operations Operations and Other (1) Includes capital allocated to business areas (except treasury), in addition to the corporation’s working capital. (2) Mix of segments: lower share of the Retail portfolio and higher share of the Wholesale portfolio. (3) Includes the liability margin and structured wholesale operations. 10
2Q20 Provision from loan losses In R$ billions Expected loss provisioning model Cost of credit¹ 5.3% ratio between 3.3% 3.9% Allocation oftotal provisions 2.4% 2.6% the annualized 10.1 cost of credit¹ Jun-20 vs. Jun-19 and the loan 7.8 4.5 5.8 49.3 Total + 48.9% portfolio²—(%) 4.0 47.1 Expected loss 2Q19 3Q19 4Q19 1Q20 2Q20 Potential loss + 99.4% 33.1 25.7 Related to expected loss in retail 22.6 R$12.8 bn segment and potential loss in the Coverage ratio wholesale segment. (90 days NPL—%) 12.9 Aggravated risk ratings 920% Wholesale—Brazil Related to aggravated risk rating of + 19.6% overdue R$1.9 bn 638% 11.5 11.4 341% Latin America and renegotiated operations 9.5 399% 281% Total Overdue operations 247% 227% 239% Related to minimum provision required + 13.8% 208% 212% Retail—Brazil 10.7 13.0 12.1 193% due to overdue operations R$1.5 bn 172% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Mar-20 Jun-20 (1) Provision for Loan Losses + Recovery of Loans + Impairment + Discounts Granted; (2) Average loan portfolio balance with financial guarantees provided and corporate securities considers the last two quarters. 11
2Q20 Credit quality 15-90 days NPL (%) 90 days NPL (%) Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 3.5% 3.4% 3.4% 3.5% 2.6% 3.2% 2.5% 2.3% 2.4% 2.4% 2.3% 2.4% 1.7% 3.0% 3.1% 2.2% 2.9% 2.9% 2.7% 1.7% 3.5% 5.1% 5.0% 3.4% 4.7% 4.8% 3.2% 3.1% 4.5% 3.0% 2.5% 2.5% 2.4% 2.3% 1.9% 2.4% 2.3% 2.3% 2.3% 1.6% 1.6% 2.0% 1.4% 1.9% 1.8% 1.0% 1.4% 1.2% 1.9% 2.0% 1.4% 1.4% 1.4% 0.9% 0.9% 1.1% 0.7% 0.7% 0.7% 0.5% Total Brazil Latin America Individuals Corporate Very Small, Small and Middle Market companies 12
2Q20 Financial margin with the market In R$ billions 1.5 1.4 1.4 1.4 1.4 1.2 1.3 1.3 1.2 1.6 1.5 1.3 1.3 1.2 1.3 1.3 1.1 1.1 1.0 0.7 0.8 0.7 0.9 0.5 1.0 0.9 0.2 0.4 0.5 0.5 0.5 0.4 0.6 0.6 0.3 0.3 0.4 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Financial margin with Sale of shares—B3 Financial margin with 1 year moving average of the market – Brazil¹ the market– Latin America² financial margin with the market (1) Includes units abroad ex-Latin America; (2) Excludes Brazil. 13
2Q20 Commissions, fees and result from insurance operations In R$ billions 2Q20 1Q20 1H20 1H19 Monthly card transaction volume Credit and debit cards 2.5 3.0 -16.9% 5.5 6.5 -14.5% Base 100 = Jun/19 Card issuance 2.0 4.3 4.4 Acquiring 2.3 -13.3% -3.0% Issuance Services Acquiring 0.5 0.7 -28.3% 1.3 2.1 -38.9% Current account services 1.8 3.8 3.7 138 2.0 -6.3% 3.4% Asset management¹ 1.3 1.5 -13.2% 2.8 2.3 19.5% 131 100 101 Advisory services and brokerage 0.8 0.9 -15.9% 1.7 1.0 73.2% 100 77 Credit operations and guarantees provided 0.5 0.6 -19.2% 1.1 1.3 -10.7% 91 Collection Services 0.4 0.5 -7.4% 0.9 1.0 -6.9% 70 Other 0.3 0.3 3.9% 0.6 0.5 17.2% Jun-19 Dec-19 Apr-20 Jun-20 Latin America (ex-Brazil) 0.7 0.7 0.6% 1.4 1.5 -2.0% Commissions and fees 8.4 9.5 -11.8% 17.9 17.7 1.3% 275 7.2 % Open Platform 257 Result from insurance operations² 1.5 1.6 -2.9% 3.1 3.3 -6.7% Commissions, fees and resultfrom insurance 9.9 11.1 -10.5% 21.0 21.0 0.0% In R$ billion s (end of period) Mar-20 Jun-20 (1) Includes fund management fees and consorcio management fees; (2) Result from insurance includes the revenues from insurance, pension plan and premium bonds operations net of retained claims and selling expenses; 14
2Q20 Non-interest expenses Focus in technology In R$ billions 2Q20 2Q19 1H20 1H19 +802 Personnel Expenses (5.1) (5.5) -7.4% (10.3) (10.8) -4.9% employees Administrative Expenses (4.0) (4.2) -5.2% (8.0) (8.3) -3.7% hired by the Technology Other¹ (1.1) (1.3) -9.9% (2.4) (2.4) 0.0% area in the quarter (20.8) Total—Brazil (10.3) (11.1) -6.8% (21.6) -3.9% +1,327 employees in the last 12 months. Latin America (ex-Brazil)² (1.8) (1.6) 12.1% (3.4) (3.2) 5.6% Non-interest expenses (12.1) (12.7) -4.4% (24.2) (24.8) -2.6% Zup 1,448 employees incorporated in the Non-interest quarter 3.7% 2.4% expenses 1.8% -0.7% growing at a slower pace than inflation 0.4% -6.8% -0.5% -2.5% -4.0% Non-interest expenses growth year over year -9.0% Non-interest expenses growth (1) Includes operating expenses and other tax expenses compared to the same period of the (Includes IPTU, IPVA, IOF and others. Does not include PIS, Cofins and ISS); previous year (deflated by IPCA) 2Q19 3Q19 4Q19 1Q20 2Q20 (2) Does not consider overhead allocation. 15
2Q20 Digital dashboard Usability Quality Digital solutions Annual increase of 17.1% of Virtual stores For companies digital clients in 2020¹ (Itaú Varejo app, end of period) Individuals App Store R$3.6 billion² Companies Jun-19 4.7 13.5 trough Itaú Empresas app Credit card holders Mar-20 4.7 Pronampe³ emergency credit line, 11.9 4.7of 5 Jun-20 4.7 +1 m reviews directly trough smartphone 8.2 1st private bank to offer Pronampe. 10.3 6.6 Play store 5.5 1.2 Jun-19 4.3 1.2 R$1.6 billion Mar-20 4.4 1.1 4.4of 5 Jun-20 4.4 through the internet Jun-18 Jun-19 Jun-20 +1 m reviews Line of credit for payroll expenses XX,X with implementation in record time. ~ 1 million accounts opened Availability -% through Abreconta app in 2020 Share of customers with normal service on (thousand) the main digital functionalities in June 2020. For individuals Share of digitai channels in 2020 (%) +131% 99.6% Transfers 97% 987 1H20 vs. 1H19 99.0% Payments 85% 218 426 +353% Investiments 46% 1H18 1H19 1H20 1H20 vs. 1H18 Jan-19 Jun-20 Personal loan 40% (1) Considers account holders (individuals and companies) and digital credit card holders; (2) In July 202; (3) National Support Program to Micro and Very Small businesses. 16
2Q20 Capital June 2020 12,0% 0.3% 0.1% 12,1% 1,7% 0.2% 1,7% 0.1% 10,3% 10,4% Mar-20 Net income Prudential RWA of credit² RWA of Jun-20 Tier I Capital and dividends adjustments¹ the Market³ Tier I Capital (1) Tax credits, goodwill and intangible assets; (2) credit risk exposures (RWACPAD); (3) market risk capital requirement (RWAMINT) 17
2020 Perspectives Due to the lack of Capital and liquidity at appropriate levels considering our internal stress test scenarios. predictability of the extent and depth of the current In the short term, the credit portfolio will continue to expand proportionally more in the corporate segment, while more flexible repayment conditions for individuals, very small and small companies crisis, we will keep the 2020 will likely keep the portfolio stable in these segments. This trend of change in mix may reverse if forecast suspended there is an increase in demand for credit from individuals and/or more activity from capital markets. Possible reduction in the average rate of the financial margin with clients (NIM) due to the progressive change in the credit portfolio mix and the impact of the lower interest rate on the remuneration of working capital and liability margin. Quarterly growth of commissions, fees and results from insurance in line with the recovery trend of economic activity and the reopening of capital markets Possible reduction in the cost of credit in the short term—anchored in the expected loss model that will react promptly to changes in the country’s macroeconomic scenario and the financial conditions of our clients. Strategic cost management based on continuous investment in technology, new ways of working, optimization of distribution channels, in addition to structural efficiency projects will continue to Note: The perspectives presented on this slide should bring benefits in the coming quarters. not be taken as a formal projection of financial performance for the year 2020. 18
Appendix
2Q20 Results In R$ billions 2Q20 2Q19 1Q20 1H20 1H19 Operating revenues 28.0 29.5 -5.0% 29.2 -4.1% 57.2 57.7 -0.8% Managerial financial margin 17.8 18.5 -3.7% 17.8 -0.2% 35.6 36.1 -1.5% Financial margin with clients 16.5 16.9 -2.4% 17.0 -3.4% 33.5 33.3 0.6% Financial margin with the market 1.3 1.6 -16.9% 0.8 72.0% 2.0 2.8 -26.6% Commissions and fees 8.4 9.1 -7.4% 9.5 -11.8% 17.9 17.7 1.3% Revenues from insurance 1.8 2.0 -7.0% 1.9 -2.5% 3.7 3.9 -4.4% Cost of credit (7.8) (4.0) 92.1% (10.1) -23.0% (17.9) (7.8) 127.5% Provision from loan losses (7.6) (4.4) 71.6% (10.4) -27.3% (18.0) (8.6) 108.5% Impairment (0.2) (0.0) 359.4% (0.0) 121.3% (0.3) (0.1) 293.0% Discounts granted (0.8) (0.4) 92.5% (0.3) 182.0% (1.0) (0.7) 45.6% Recovery of loans written off as losses 0.7 0.8 -7.1% 0.7 10.9% 1.4 1.5 -8.6% Retained claims (0.3) (0.3) 8.1% (0.3) -2.5% (0.7) (0.6) 9.1% Other operating expenses (13.8) (14.4) -4.7% (13.8) 0.0% (27.5) (28.3) -2.7% Non-interest expenses (12.1) (12.7) -4.4% (12.1) 0.4% (24.2) (24.8) -2.6% Tax expenses and other (1.6) (1.8) -6.9% (1.7) -3.2% (3.3) (3.4) -3.4% Income before tax and minority interests 6.2 10.7 -42.5% 5.0 22.4% 11.2 21.0 -46.6% Income tax and social contribution (1.9) (3.4) -44.2% (1.0) 95.0% (2.9) (6.6) -56.4% Minority interests in subsidiaries (0.1) (0.3) -77.9% (0.2) -59.5% (0.2) (0.5) -55.2% Recurring net income 4.2 7.0 -40.2% 3.9 7.5% 8.1 13.9 -41.6% 20
1H20 Business model The allocation of principal capital (Common Equity Tier 1) in the bank’s business is made at 12%, according to our risk appetite. In the first half of 2020, we ended with R $ 36.2 billion of capital above the minimum (8% in 1Q20 and 6.75% in 2Q20 of CET1), determined by the Central Bank of Brazil. 1st Half of 2020 1st Half of 2019 Ä Insurance Excess Insurance Excess Insurance Excess Consolidated Credit Trading Consolidated Credit Trading Consolidated Credit Trading & services capital & services capital & services capital Operating Revenues 57.2 31.9 0.6 24.7 0.1 57.7 30.4 0.9 25.7 0.8 (0.5) 1.4 (0.3) (1.0) (0.6) Managerial Financial Margin 35.6 26.2 0.6 8.7 0.1 36.1 24.4 0.9 10.1 0.8 (0.5) 1.8 (0.3) (1.4) (0.6) Commissions and Fees 17.9 5.6 0.0 12.3 — 17.7 6.0 0.0 11.7 — 0.2 (0.4) (0.0) 0.6 -Revenues from Insurance ¹ 3.7 — — 3.7 — 3.9 — — 3.9 — (0.2) — — (0.2) - S Cost of Credit (17.9) (17.9) — — — (7.8) (7.8) — — — (10.0) (10.0) — — -Retained Claims (0.7) — — (0.7) — (0.6) — — (0.6) — (0.1) — — (0.1) -Non-Interested Expenses and (27.7) (13.8) (0.2) (13.8) 0.0 (28.7) (14.2) (0.4) (14.1) (0.0) 1.0 0.5 0.2 0.3 0.1 Other Expenses ² Recurring Net Income 8.1 1.0 0.2 7.0 (0.0) 13.9 5.8 0.3 7.2 0.6 (5.8) (4.8) (0.1) (0.2) (0.7) Average Regulatory Capital 126.8 75.9 1.4 50.6 (1.1) 123.9 62.6 1.4 39.8 20.0 2.9 13.3 (0.0) 10.8 (21.1) Value Creation 0.4 (3.5) 0.3 3.6 0.0 6.1 1.8 0.2 4.7 (0.6) (5.6) (5.3) 0.1 (1.1) 0.7 Recurring ROE 13.1% 2.5% 27.3% 27.6% 4.7% 23.6% 18.5% 40.6% 36.1% 6.3% -10.5 p.p. -16.0 p.p. -13.4 p.p. -8.5 p.p. -1.6 p.p. (1) Revenues from Insurance includes the Revenues from Insurance, Pension Plan and Premium Bonds Operations before Retained Claims and Selling Expenses. (2) Include Tax Expenses (ISS, PIS, COFINS and other), Insurance Selling Expenses and Minority Interests in Subsidiaries 21
2Q20 Renegotiated Loans Operations 25.2 25.7 25.2 25.4 24.7 26.0 25.7 28.9 32.6 Portfolio in Brazil 35.7 31.7 3.2 Latin America 27.9 27.6 28.4 28.1 1.6 27.5 27.3 26.9 2.7 2.5 1.7 Written-off as a Loss 2.3 2.2 2.1 2.3 2.3 2.4 9.8 1.8 1.8 1.8 1.8 1.3 2.0 2.0 7.9 Over 90 days overdue 8.5 8.7 8.2 8.0 7.3 7.6 7.3 7.6 31-90 days overdue 6.1 5.1 4.8 4.9 4.9 5.2 5.5 1.3 1.0 Up to 30 days overdue 5.2 1.3 1.4 1.4 1.4 1.3 1.3 1.2 Non-overdue 11.9 12.5 8.5 8.8 9.0 9.2 9.8 9.9 9.6 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 22
Conference call 2Q20 Earnings review São Paulo, August 4th, 2020 Candido Botelho Bracher President and CEO Milton Maluhy Filho Executive Vice-President, CFO and CRO Alexsandro Broedel Executive Director, Group Head of Finance and Investor Relations Renato Lulia Jacob Head of Investor Relations and Market intelligence Itaú Unibanco Holding S.A.
Attachment 03
2Q20 Institutional Presentation Itaú Unibanco Holding S.A.
This presentation contains forward-looking statements regarding Itaú Unibanco Holding, its subsidiaries and affiliates—anticipated synergies, growth plans, projected results and future strategies. Although these forward-looking statements reflect management’s good faith beliefs, they involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. These statements are not guarantees of future performance. These risks and uncertainties include, but are not limited to our ability to realize the amount of the projected synergies and the timetable projected, as well as economic, competitive, governmental and technological factors affecting Itaú Unibanco Holding’s operations, markets, products and prices, and other factors detailed in Itaú Unibanco Holding’s filings with the Securities and Exchange Commission which readers are urged to read carefully in assessing the forward-looking statements contained herein. Itaú Unibanco Holding undertakes in duty to update any of the projections contained herein. This presentation contains managerial numbers that may be different from those presented in our financial statements. The calculation methodology for those managerial numbers is presented in Itaú Unibanco Holding’s quarterly earnings report. To obtain further information on factors that may give rise to results different from those forecast by Itaú Unibanco Holding, please consult the reports filed with the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários—CVM) and with the U.S. Securities and Exchange Commission (SEC), including Itaú Unibanco Holding’s most recent Annual Report on Form 20F.
Agenda Corporate 04 profile 13 Strategic Our agenda businesses 31 52 Corporate governance Capital and 62 risk management 76 Financial highlights Additional 87 information
Corporate profile
About Corporate profile us? Universal bank | 95 years of history | largest bank in Latin America¹ Market Value³ Total assets3 Credit portfolio3 ROE4 Net income4 Tier I Capital 3 US$45.9 bn R$2,075.1 bn R$811.3 bn 13.5% R$4.2 bn 12.1% Brazil’s most We are present in 18 countries valuable² brand Rest of the World R$33.5 billion German 1 Approximately Bahamas 1 3 Cayman 1 2 3 56 million5 Latin America Spain 1 Retail clients United States 1 2 3 France 1 Argentina 434 k Portugal 1 direct shareholders Brazil United Kingdom 1 2 Chile Switzerland 3 4.5 k Reino Unido Colombia Suíça branches and PABs Mexico 1 97 k Panama Paraguay employees Peru 1 Key 46 k Uruguay Multiple Bank ATMs Other operations 1 Corporate & Investment Banking 2 Asset Management 3 Private Banking gest bank in market value; (2) 2019 Interbrand Ranking ; (3) June 2020 (4) In 2Q20. (5) April 2020. 5
What Corporate profile do we do? Full offering of products and services | diversified client base | solid brand A complete Credit Services Insurance The Retail Bank physical and digital $ Personal Current Life includes retail clients, high-income clients bank Cards Cards and acquiring Homeowners insurance and very small and small businesses, in $ Working capital Consórcio Auto addition to products and services for non-$ Real estate Brokerage Dental account holders. $ Micro credit Pension plans Card protection The Wholesale Bank is $ Vehicles $ Premium Bonds Travel responsible for high net worth clients (private $ Rural Payment means Healthcare banking), the units in Latin $ America, banking for Payroll loans $ Capital markets Smartphone protection middle market and large companies and Open platform Imports/Exports Investments Guarantee insurance corporations through Itaú Investment and insurance ... Other products ... Other products ... Other products BBA, the unit responsible products sold on open for corporate clients and platforms. for its role as an investment Main brands and commercial partners bank. 6
How Corporate profile have we evolved? Adaptable culture | innovation | transparency in business Britain World Health We have NY Stock World War II First First First Internet Itaú on decides to Organization witnessed Exchange ends overseas version of providers the NY leave the declares important crisis branch of Windows Stock European coronavirus changes around Itaú appears Exchange Union (Brexit) pandemic the world... 1929 1945 1983 1985 1990 2006 . 2016 2020 Focus on A bank with a First steps Paths to growth An historic Casa Moreira Salles Marked by mergers, merger Latin America purpose opens in 1924, and acquisitions and Our international We believe that people In 2008, Itaú and Banco business alliances that presence has have the power to Unibanco united to Central de Crédito enabled the growth evolved year after transform the world, and create Brazil’s in 1943. and consolidation of year. Today, Itaú is that the bank can largest private both institutions. present in 18 promote this bank. countries. transformation. 1930 1950 1960 1980 1984 2002 2014 2020 ... and in Banking Mobile Fintechs Central Bank First checks First debit First Brazil First in-branch automation Banking start to gain launches PIX with client’s and credit ATMs calculators begins in Brazil strength name cards 7
What Corporate profile are we seeking? To change leagues and compare ourselves with the world’s best companies in client satisfaction PurposeOur Promoting people’s power of transformation Our culture Simple. People Ethics are It’s only Passionate The best We think Always mean non- good for about argument and act like Our Way everything negotiable us if it’s performance is the one owners to us good for that the client matters Strategic agenda Client Digital People Efficiency centricity Transformation Our ambition is to be We must have the best Our business is providing Price is of paramount one of the world’s best products, in less time services and that is why importance customer companies in client and higher flexibility. people is a vital issue. We satisfaction. We can only have satisfaction. invest to provide a more open competitive prices if we are and diverse environment. efficient. Commitments to a Responsible Financing for Inclusion and Financial Transparency in Ethics in Inclusive Responsible Positive impact investment sectors with a entrepreneurship citizenship communication relationships and management management positive impact business 8
A Corporate responsible profile bank We believe that people Our commitments to a Main pacts, initiatives and voluntary commitments have the power to positive impact Responsible banking transform the world, and that a bank can promote Financing for sectors with a positive impact this transformation. To increase our financing and services in those sectors. Responsible investment To expand our offering and distribution of products and services for an economy that is more responsible and with a Ethics is present in our Transparency in the communication positive impact. business and results in transparency, respect and Inclusion and entrepreneurship To increase financial inclusion for entrepreneurs. honesty in our relationships with our stakeholders, in the Financial citizenship Sustainable development Climate change quality of our products and To promote client satisfaction, as well as their financial lives. services and in our concern Transparency in the communication Empresarial Contribuição para a Promoção Economia Verde da e with financial performance To strengthen our transparency, demonstrating the value Inclusiva and socioenvironmental created for our stakeholders. responsibility. Respect and diversity Ethics in relationships and business Ethics are non-negotiable. Promote the creation of an intimate and ethical financial ecosystem. Red Mujer Inclusive management Emprendedora To enhance our employees’ experience and to foster a working environment that is diverse, inclusive and healthy. Ethics and integrity Responsible management To improve the performance of our operations and to foster Carta Empresarial pelo Direitos Humanos e pela sustainable practices across our supply chain. Promoção do Trabalho Decente 9
A Corporate responsible profile bank | ESG ESG aspects have been integrated into the Bank’s management for over two decades 1999 2004 2005 2008 2009 2010 2017 2018 2019 Sustainability Dow Jones Equator B3’s Corporate Principles for Global Carbon Bloomberg’s Sustainable Principles for Principles Sustainability Responsible Reporting Disclosure Gender Development Banking Index Index Investment Initiative Project Equality Goals Responsibility (DJSI) (ISE) (PRI) Standards (CDP) Index (SDG) (UN) (GRI) 2020 Integrated plan to Together with the banks Bradesco and Santander, we announced 10 concrete measures targeting 3 areas considered top priority for the region: Since 2012 promote We offset 100% Environmental conservation and development of a bioeconomy of our direct sustainable emissions (scope 1)1 investment in sustainable infrastructure development of Since 2017 Guarantee of the basic rights for the population We offset 100% the Amazon of our indirect The three banks are working together on specifying the initiatives and emissions (scope 2)2 setting clear objectives, goals and metrics. ESG management 100% adherent to the TCFD until 2022 We follow the main global framework of the climate We adopted the SASB indicators and transparency practices change agenda—Task Force on Climate-related We reported 12 of the 14 indicators of the Sustainability Accounting Financial Disclosures. Standards Board in our Integrated Annual Report 2019. (1) Scope 1: Direct greenhouse gas (GHG) emissions from sources that are owned or controlled by Itaú Unibanco. (2) Scope 2: Indirect GHG emissions from the acquisition of electricity that is consumed by Itaú Unibanco. 10
2020 Corporate profile | Support for clients during the crisis R$52 billion in loan portfolio reprofiling New credits were Participation in In June 30, 2020 granted government initiatives March 16 to July 17, 2020 R$1.6 billion R$96.8 billion in emergency credit for payrolls This unprecedented initiative aims to address to finance salaries of more than 660 thousand employees in the last indebtedness using a structured approach, providing months clients with some respite and ensuring that they enjoy R$14.1 individuals st sustainable conditions over time. billion 1 private bank to offer the Pronampe² The range of customized solutions includes grace periods, extended credit line loan terms and additional credit offer. very small R$17.1¹ and small R$ 3.6 billion - all available volume –billion companies for about 36 thousand very small and It has already benefited: Grace period of up small companies 120 days for individuals ~1.8 million 180 days for very small and small companies R$2.9 billion R$13.2 middle- individuals subscribed by Itaú Unibanco in billion market Term extension of up to companies the initiative between CCEE³ ~200 thousand 6 years for individuals and banks of a total of R$ 15.2 billion, to very small and small 5 years for very small and small companies R$52.4 large companies support energy generators, companies billion distributors and concessionaires Better interest rate conditions (1) Includes emergency credit for payroll financing and the Pronampe² credit line; (2) Pronampe is a national support program for very small and small companies; (3) Chamber of Commercialization of Electric Energy 11
2020 Corporate profile | Todos pela saúde R$94 million R$222 million to inform to prepare ~ 175 million people society to resume social activities as normal Campaigns to clarify and raise awareness Support for epidemiological research among the population and guidance on and for the treatment of covid-19 the proper use of protective masks Investment in the new vaccine From R$1.2 billion manufacturing plants of Fiocruz R$347 million and Instituto Butantã donated to date, to protect more than $1 billion has 330,000 health professionals R$396 million and 172,000 patients to care already been allocated Benefited by the distribution of more than support to 50,000 elderly people to 4 areas of activity. 50 million protective equipment and caregivers in more than 600 institutions Next, check out some of the main + 25,000 tests per day 105,000 oximeters achievements in these 90 days. Test Centers operations begins on the 31st of serving all cities in Brazil July in Rio de Janeiro city and on the 7th of August in the Ceará state 44,000 tests and awareness initiatives for truck drivers 14 million masks Distributed to the elderly, users of public 1,000 units of hospital equipment transport, residents of communities, Implementation of Reception Centers in indigenous people and homeless people vulnerable areas 12
Strategic agenda
Strategic Strategic agenda agenda Following a collective thought process, we defined our strategic agenda in order to achieve consistent and quality results in the years ahead. Customer centricity is the central piece supported by three fundamental pillars: digital transformation, people and efficiency. Client centricity Our ambition is to be one of the world’s best companies in client satisfaction. Digital Transformation We must have the best products, in less time and higher flexibility. People Our business is providing services and that is why people is a vital issue. We invest to provide a more open and diverse environment. Efficiency Price is of paramount importance customer satisfaction. We can only have competitive prices if we are efficient. 14
Client Strategic agenda Centricity We want our clients to have the best experience That is why we are continually and tirelessly striving to improve our client’s experience each time they engage with the bank Universal Bank Satisfied clients create more value Present Value of R$/client net income, 5-year forecast (base 100) 56 million clients 2x 950 ï,§ between 18 and over 80 years of age;ï,§ from low-income to the Private segment; ï,§ present throughout Brazil, both in the capital 5x 468 Itaú cities and hinterland, and overseas; Branches ï,§ companies: from very small companies, to 100 major corporate conglomerates. The difference between the present value We challenge ourselves daily to serve created by a client who advocates for the this very heterogeneous universe. 10x Itaú Branches segment, against the value generated by one who knocks it 15
Client Strategic agenda Centricity Satisfied clients create We want to be the benchmark in satisfaction, transforming our culture so that the client is at the center of everything. Our actions, including digital transformation and the efforts involving people management, are designed for our clients’ higher value satisfaction, a key metric for the entire organization. Global NPS + 27 points + 17 points + 8 points Active contact to understand our Lessons learned from client clients’ experience. feedbacks to enhance their 2020 vs 2018 2021 vs 2018 2023 vs 2018 experience. (Jun-20 vs Aug-18) We want to be compared to the world’s best 60 k companies in client satisfaction + +4 k feedbacks per month¹ meetings per month¹ Comparable companies 1: Period: Jan-20 to Mar-20 16
Client Strategic agenda Centricity Continuous updates for a better experience Our apps are among the App Store best rated in app stores Play Store APP PERSONNALITÉ 4.3 4.7 APP ABRE CONTA APP ITAÚ 1st bank (INDIVIDUALS) offering bank account opening 4.4 4.7 by mobile phone 14.7 MM of individual and corporate account 4.7 4.7 holders using our digital channels More than half new users have been our APP LIGHT customers for over 1 year 1st bank APP ITAUCARD offering a leaner 47% of new entrants are over 50 years old: 17 p.p smartphone app 4.3 4.8 increase over the period before the pandemic 4.5 APP REDE New 56 Card receivables APP ITAÚ EMPRESAS on the mobile control by phone features 4.4 4.0 chanel 4.5 3,8 4.6 4,4 Updated in Jun-20 17
Client Strategic agenda Centricity Identified Investment recommendations need: What is the best way to invest my money? Solution Data only Itaú has: The most advantageous 2.5 minutes combination possible for each to generate a Expected results from 28,000 financial products and assets client, according to their profile 1,200,000 possible portfolio combinations recommendation10,000 scenarios for market behavior and moment in life +0.80 to 3.00 pp Testing 12 billion different scenarios additional annual for all client profiles portfolio DIAGNÓSTICO DA SUA CARTEIRA profitability Sua carteira atual Carteira personalizada based on the Optimization in the client context (current portfolio, earnings and new investments) Nível Carteira de risco: em 26/08/2019 Moderado Nível de risco: Arrojado Retorno esperado(em% % Retorno CDI): 133.9% esperado(em a.a. recommendation CDI): 114.5% a.a. Juros pós-fixados Juros prefixados Inflação Multimercado Customized expert evaluation 07 18
Strategic Digital agenda Transformation Supply perspective x Demand perspective Traditional model: supply perspective Modern model: demand perspective New technology trends: New technology radar: cloud cloud artificial Intelligence and client’s real artificial Intelligence machine learning + and machine learning big data and analytics needs big data and analytics APIs What are they for? APIs Identifying possible application blockchain opportunities blockchain We find an application Let’s test Technology applied to solve real problems, More investment for Pilots and tests in lateral situations, enabling measurement of value created updating which do not compromise Expenditure Time Expenditure Time $ $ $ $ $ $ 19
Digital Strategic agenda Transformation To achieve digital transformation, we need to change the way we develop services and products Before Market Solution research time data customization development Client Bank Client Now Data time data customization + research + experimenting Client Bank 20
Digital Strategic agenda Transformation + velocity to extend our digital offer 107 resident 88 projects startups between the bank and 397 Cubo startups Cubo is the most relevant 31 filliated different 13 floors hub for technological startups industries entrepreneurship promotion + rooftop in Latin America. 215,000+ ft2 + 29 sponsors Sponsored Spark Awards Founders: business verticals: Logistics & mobility | Retail | Health | Education | Fintech IF Design Award Awards International Visual Identity Awards since 2015: Financial Innovation Awards 2016 Partnerships: Startup Awards + outros 21
Strategic Digital agenda Transformation New work methods lead to superior results Data base 100 More technology solutions Higher productivity Greater number of solutions delivered Reduction in the delivery time of technology solutions 2Q2019 2Q2020 15% 2Q2019 2Q2020 -30% More availability Reduction of customers who had problems with major transactions on the -57% internet and mobile channels: clients Now99 .6% of our find using no the problems main when 2Q2019 2Q2020 transactions on these channels 22
Digital Strategic agenda Transformation Analytics: “listening to” 360,000 calls every day In the past Today One of the Traditional monitoring Speech analytics world’s largest Transcription of 100% of the calls and analysis of the texts voice transcription “I would like to operations increase my limit.” 130 MM client attendant calls/year Call Client´s The right Calls monitored by people. Audio signal content data service, for the <0.5% followed up • Measure the satisfaction of 100% of our clients right client at the • Map opportunities right moment Capture client’s satisfaction limited to one sample • Capture intentions without having to ask • Channel efficiency 23
Strategic Digital agenda Transformation¹ Data: the bank’s new capital Data and State-of-the-art Data analytics + algorithms + scientists Voice data Transactions Biometrics + Resultado petabytes 70 Interactions in Image data +485% of value captured in projects in analytics digital channels Data base: 2017 to Jul-20 Geolocation Text data (1) Data base Jul-20. 24
Digital Strategic agenda Transformation Focus on efficiency while continually investing in technology Technology investments 11% 154 Inflation (IPCA) 130 accumulated in the 122 100 period 100 101 106 109 45.3 46.4 47.6 45.5 2016 2017 2018 2019 Efficiency Ratio (%) Technology investments (Base 100) Non-interest Expenses (Base 100) 25
Digital Strategic agenda Transformation Digital dashboard Usability Quality Digital solutions Annual increase of 17.1% of Virtual stores For companies digital clients in 2020¹ (Itaú Varejo app, end of period) Individuals App Store R$3.6 billion² Companies Jun-19 4.7 13.5 trough Itaú Empresas app Credit card holders Mar-20 4.7 Pronampe³ emergency credit line, 11.9 4.7of 5 Jun-20 4.7 +1 m reviews directly trough smartphone 8.2 1st private bank to offer Pronampe. 10.3 6.6 Play store 5.5 1.2 Jun-19 4.3 1.2 R$1.6 billion Mar-20 4.4 1.1 4.4of 5 Jun-20 4.4 through the internet Jun-18 Jun-19 Jun-20 +1 m reviews Line of credit for payroll expenses XX,X with implementation in record time. ~ 1 million accounts opened Availability -% through Abreconta app in 2020 Share of customers with normal service on (thousand) the main digital functionalities in June 2020. For individuals Share of digitai channels in 2020 (%) +131% 99.6% Transfers 97% 987 1H20 vs. 1H19 99.0% Payments 85% 218 426 +353% Investiments 46% 1H18 1H19 1H20 1H20 vs. 1H18 Jan-19 Jun-20 Personal loan 40% (1) Considers account holders (individuals and companies) and digital credit card holders; (2) In July 202; (3) National Support Program to Micro and Very Small businesses. 26
Strategic agenda People1 By age bracket By region Approximately 5.4% 4.7 k people 97 thousand > 50 years North 1% 51.4% 45.5 k people 5% Northeast Employees² 30-50 years 3% Center-West 43.2% 38.3 k people Southeast in Brazil and overseas up to 30 years 83% South 7% 14% By gender By hierarchical level Inclusion and diversity People with Women 0.1% Officers 86% 14% disabilities 58.5% 15.0% Managers 48% 52% 4.2% 38.8% Administration 50% 50% Men 38.6% Operations 30% 70% Afro-Brazilians 41.5% 0.2% Trainees 59% 41% 22.9% 5.4% Interns 47% 53% 1.8% Apprentices 31% 69% (1) December 2019 —For information relating to employees, we only consider information from Itaú Unibanco companies under the management of the Human Resources department, except for International Units. (2) June 2020. 27
Strategic People¹ agenda Employee’s An innovative and inspiring environment. Is Itaú Unibanco a good place to work? experience In our employees’ eyes VoU cOmO sOu Our challenge is to be Rendering our dress code flexible, respecting our Advocates employees and our strategic agenda. (Scores 9-10) 78% increasingly attractive to . all generations and to 73 (Scores Neutrals 7-8) 18% engage and develop our Home-office e-NPS Knockers talent pool. To do so, we (Cores 0-6) 5% have consistently We offer more flexible options that encourage Attraction and retention of employees invested in disseminating employee autonomy. our purpose and what we 16.7% 49% Women turnover rate refer to as Our Way – a strong culture rooted IU Conecta 13.6 k 51% Men 12.1% Involuntary in collaboration, A new platform for our employees’ day-to-day. A admissions 86% Up to 30 years’ old meritocracy, ethics and social network with several administrative tools. 14% Over 30 years old total and unbridled 4.7% Voluntary respect for the individual. New work methods In the market view Collaborative environments, delivery communities and focal space aiming for greater synergy, communication and integration among the teams. Flexibility Greater freedom for employees to reconcile their working hours with their personal life. (1) Data base 2019. 28
People¹ Strategic agenda A bank that recognizes, values and encourages people development. Total compensation1 Incentive Model Fixed compensation The program takes into account the priorities of the year, the results obtained and the manner in which those R$ 17 billion results are delivered, since although it is important to achieve objectives, our values must underpin all actions. R$ 22 bi Recognizes a professional’s competence and seniority. Evaluation (directors and EDs) Evaluation (team) Variable compensation _ performance _ reporting _performance _ Y axis e career committee R$ 5 billion ï,§ Conversation with DG/VP/DE ï,§ Behavioral assessment ï,§ Assessment with up to 3 ï,§ Behavioral assessment evaluates Recognizes the level of individual performance, on the priorities for the year. (360º): evaluates whether challenges (simpler and whether the employee’s behavior is the financial result attained by the bank and its ï,§ Objective indicators related to the executive’s behavior is more agile). consistent with our moment and our sustainability in the short, medium and long priorities as support consistent with our moment ï,§ Evaluation can even be work models. terms. Each employee has targets to be (priorities, results achieved in and our work models. 100% qualitative.ï,§ Career evaluation and development achieved, which are linked to the strategy of the previous year and market ï,§ Results. in a collegiate committee (with each area which, in turn, reflects our global data—if applicable).ï,§ Career Moment. inputs, Y axis and reporting—if strategy. applicable). Investment in personnel Partners’ and Associates’ Program Courses and Hours of Scholarships Supplementary with To align those the of interests our shareholders, of our officers we run and a employees program training training pension schemes and for partners employees and with associate a differentiated intended for performance. managers Over than 1,000,000 live and On average, 13 hours of live 6.1 k scholarships, 72% of the employees have online training sessions. and online training per postgraduate and a supplementary plan. Further details on page 60 employee. language courses. (1) Data base 2019. Fixed compensations include compensation, social benefits and charges. Variable compensation includes employees´profits sharing and share-based payment. 29
Efficiency Strategic agenda Our strategic challenge cost management is to continually and improve investment the efficiency in technology of our and operations new ways by of maintaining working in order clients to at boost the center the use of of our our decisions, resources, through while efficiently managing the allocation and cost of capital. Key principles of our Strategic Cost Management weekly reported to the Executive Committee Automation and digitalization Optimization of service channels Consolidation, reorganization and redesign of operations Focus in technology Non-interest 3.7% 2.4% 1.8% +802 employees expenses -0.7% growing at a slower pace hired by the Technology area in the quarter 0.4% -6.8% than inflation -0.5% +1,327 employees in the last 12 months. -2.5% -4.0% Non-interest expenses growth Zup year over year -9.0% Non-interest expenses growth 1,448 employees incorporated in the compared to the same period of the quarter previous year (deflated by IPCA) 2Q19 3Q19 4Q19 1Q20 2Q20 30
Our business
Our Who business are our clients? Through our Retail and Wholesale Banking segments we offer a wide range of products and services tailored to each client profile. Client profile by segment in Brazil Individuals Companies Ultra Private Bank over R$4 billion >R$5 million in total investment Large Personnalité between R$500 million up to R$4 billion >R$10 thousand or >R$100 thousand in total investments ; Middle Uniclass between R$30 million up to R$500 million >R$4 thousand up to R$10 thousand Very Small and Small Companies Retail ;;;;;;; up to R$30 million up to R$4 thousand RETAIL WHOLESALE 32
Our Retail business Banking Serving a client base of over Branches and PABs Main 56 million clients Results2Q20 Ourdistributionnetwork comprises¹ Net income R$1.8billion 4,006 BRANCHES AND CSBs IN BRAZIL 3 % 8 % 7 % 67 % 15 % Northeast Southeast South Brick and Mortar Branches North Midwest and PABs Consolidated 42% DigitalBranches(Brazil) profitsharing Returnon allocatedcapital 15.3 % 4,722 234 Efficiencyratio 4,488 (Jun-20 vs Jun-19) 51.8 % 196 MORE THAN 45,000 196 ATMsin Brazil RetailBanking +8 points 4,526 4,292 NPS Dec-19 vs. Aug-18 Jun-19 Jun-20 (1) In June 2020. Does not include branches and CSBs in Latin America and Itaú BBA. 33
Our Retail business Banking The use of our digital channels significantly increased over the last years. Our digital branches also increased to serve clients who almost do not use brick and mortar branches. Use of digital channels¹ % oftransactions Highlight throughdigital channels Total currentaccountholders(in millionpeople) Digital branches 1H20 1H19 individuals Credit² 25% 18% 11.9 13.4 10.3 Investiments² 46% 41% 1.2 companies 196 digital branches Payments² 85% 72% 1.1 1.2 for over 2.3 millionclients Transfers�� 97% 91% Jun-18 Jun-19 Jun-20 More than335,000 companies4 AccountopeningsthroughtheAbrecontaapp servedbymanagers withmobility, The availability of digital channels remains high, usingsmartphone, tablet and at the highest level ever 645 videoconference 99.6% Extendedhours 99.6% of the clients Differentiatedservice impact did not on have the any main 205 99.0% 127 (June functionalities. 2020 18 digital branchesfor ) 107,000 microentrepreneurs5 2Q18 2Q19 2Q20 Jan-19 Jun-20 (1) Internet, mobile and SMS in Retail Banking; (2) Share of digital channels in the total volume of transactions (R$) in the Retail Banking; (3) Share of digital channels in the total volume (R$) of transactions in the Retail Bank segment; (4) Includes Emp3 and Emp4; (5) Includes only Emp4. 34
Our Retail business Banking | Support for clients during the crisis This unprecedented initiative aims to deal with debt in a structured way, giving clients breathing space and ensuring that they have sustainable conditions over time. R$52 billion Reprofiled portfolio by product (in R$ billions) March 16 to June 30, 2020 in loan reprofiling for Very small and individuals, very small and Individuals 37.6 14.6 small companies small businesses Mortgage loans 16.1 Working capital 12.1 Personal loans 12.9 Vehicle loans 2.5 100%up to date in February Vehicle loans 4.7 Cards 2.8 Payroll loans 1.0 58%are collateralized Reprofiled volume per working day (in R$ billions) 1.0 1.0 90% in ratings AA to C 0.8 0.6 93% individuals 0.4 0.3 83% very small and small companies 03/16 to 04/18 to 05/02 to 05/16 to 05/30 to 06/13 to 04/17 05/01 05/15 05/29 06/12 06/26 35
Our Wholesale business Banking Main Main Only in Brazil, We serve approximately productsandservices Results2Q20 21,000 corporate groups and Creditsolutions institutional Nationalandforeigncurrency Net R$825 million income Oursaleschannelsreachinstitutionalclientsin 18 Service solutions countries. R$3.3bnfixedincomedistribution R$585 mnequitiestransactionsin Latin Consolidated America 20 % profitsharing R$757mn total volume of Merger $ and Acquisition R$7.4 bnfinancing of infrastructure Returnon allocatedcapital 5.6 % Bahamas Cayman Chile projects in different sectors England USA Portugal Mexico Spain Solutionsin WMS Panama Uruguay Germany Efficiency France R$1,405 bn under local custody ratio 48.9 % Corporate Colombia Switzerland R$113 bn under international Peru Institutional Clients Paraguay custody Private Banking Argentina R$720 bn¹ under asset management WholesaleBanking +8 points (1) Source: ANBIMA (Brazilian Financial and Capital Markets NPS Dec-19 vs. Aug-18 Association) – June 2020. Considers Itaú Unibanco and Intrag. 2020 maininitiativesLatAm–ClientCentricity • Accelerating the digitization of customer experiences and journeys • Increasein 100% digital customeracquisition • Evolution of the digital technological platform • Implementation of NPS System for 3Q20 36
Our business $ Personal Loans and Payroll Loans Personal loans Evolution of personal loans portfolio (In R$ billion) Money in the account The money is immediately Payroll loans $ credited, including on the 83.1 86.8 weekends. 81.0 The payroll loans portfolio accounts for 58% of total 74.7 70.5 70.2 69.8 72.7 74.9 58% operations in personal loans. Purpose 49.1 49.4 50.4 46.5 44.6 44.8 44.4 45.4 46.7 The loan does not have to be $ Other personal loans justified. 31.9 33.7 36.4 28.2 25.8 25.4 25.3 27.3 28.2 The portfolio of the personal loans accounts for 42% 42% Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 of total operations in personal loans. Payroll loans Composition of the payroll loans portfolio Origination channels of payroll loans Reduced rates (In R$ billion) (In %) Interest rates are lower than for other types of loans. 50.4 49.1 49.4 46.5 44.6 44.8 44.4 45.4 46.7 6.6 46.5 44.6 44.8 44.4 45.4 46.7 49.1 49.4 50.4 4.6 5.1 5.8 6.5 Easier repayment 4.4 4.3 4.7 4.9 4.5 3.9 3.5 10.5 5.9 5.1 Fixed installments are deducted 9.2 8.2 7.0 64% 62% 61% 60% 59% 59% 58% 56% 56% directly from the payroll of the borrower. 36.5 38.8 39.0 40.2 31.4 31.0 32.2 32.8 34.6 36% 38% 39% 40% 41% 41% 42% 44% 44% Payment conditions Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 First installment in up to 90 days. Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 INSS Public Sector Private Sector Branches Itaú Consignado S.A. 37
Our business $ Mortgage Loans Client focused Mortgage loans portfolio Products and sales channels (In R$ billion) (In %) Quick and efficient process with credit analysis in up to one hour for 47.1 48.6 47.8 48.1 47.6 48.3 49.2 50.3 53.8 + 9.2 % vs Jun-19 operations of up to R$1 million. + 13.0 % 21.6% 20.0% 17.4% 14.9% 13.0% 10.7% 8.6% 9.2% 23.0% 32% 29% 21% 17% possibility of digitally contracting. vs Jun-18 Partnerships High Real Regular Branches 89.3% 91.4% 90.8% Income Estate 77.0% 78.4% 80.0% 82.6% 85.1% 87.0% specialized consultants providing Branches Brokers support throughout the process. Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 0.4% Developers Individuals Companies Environmental and social assessment on mortgage loans Technical analysis for construction financing Enterprise and region data Environmental and Social Department + Environmental and Social Legal Department + No Compliance • Levantamento de Indícios de Contaminação(LIC) Environmental • Enterprise Environmental and Social Form; License? • Technical analysis of evidence; Building site Risks visit gathering • Building site photos; • Analysis of site contamination documentation; mitigated of information and • Document analysis; • Preparation of contractual clauses and conditions • Consultation of the Contaminated Areas Indication of for release of funds. Register; and contamination? • Consultation of Google Maps. Operation approved 38
Our Mortgage business Loans¹ $ Loan to Value (Em %) 59.7% 62.1% 63.1% Vintage (quarterly average) 54.9% 54.6% 54.5% 54.7% 57.3% 58.4% + 3.4 p.p vs Jun-19 41.8% 41.8% 40.9% 40.2% 39.9% 38.7% 38.7% 38.6% 38.3% Mortgage Loan Portfolio—0.4 p.p. Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 vs Jun-19 Vintage (quarterly average) Mortgage Loan Portfolio Average Ticket and Average Origination Term²,³ Average value of the Property 584 561 554 537 523 538 546 548 500 + 0.4 % vs Jun-19 322 323 324 325 Average operation period 312 312 311 318 322 + 0.5 % vs Jun-19 296 306 305 294 302 315 328 314 313 Financing Average Ticket—4.4 % Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 vs Jun-19 Value of the Property (R$ mn) Average operation period (in months) Financing Average Ticket (R$ mn) (1) Includes only Individuals. (2) Average Operation Period for new developers’ contracts; (3) Value determined using monthly financing average ticket and quarterly average LTV. Production source: ABECIP. 39
Our business $ Vehicles Loan portfolio by client profile Contracting (In R$ billion) Contracts—thousand + 27.0 %ï,§ 13.2 thousand sales points; 31 19 29.5 ï,§ Sale of light and heavy vehicles: 11 23.2 28.1 20.3 18.3 16.7 17.8 20.2 6.0 9.1 10.1 • 83% of contracts are made in stores and dealers; April May June 3.6 16.4 4.3 Resumption of production 2.9 2.3 2.6 3.2 16.7 17.2 19.0 19.5 15.4 14.1 14.1 14.7 15.9 • 91% to individuals; R$37.6 thousand Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20ï,§ 28% made in Digital Channels; Average Ticket (individual) ï,§ 85% of financing are made up to 48 months. 61% Individuals Companies LTV (individual) Credit origination by client profile¹ 90-day NPL Ratio ( Individuals – Vehicles) (In R$ billion) (Base 100)—33.6 % 100 6.0 3.6 4.5 4.8 3.2 2.5 3.2 2.6 2.3 1.9 54 49 2.1 1.6 0.8 1.0 43 42 0.4 1.1 38 0.3 0.5 3.5 35 2.3 2.5 2.6 2.9 3.0 1.8 1.8 2.1 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20 Individuals Companies 2012 2015 2016 2017 2018 2019 2Q20 40 (1) Includes Finame in Companies 40
Our business $ Vehicles Main products and services iCarros Portal ï,§ 21 mn access/monthï,§ 87% mobile Evolution of financing proposals on the iCarros platform: Facial Recognition (Base 100) iCarros 1 11 147 Vehicle Marketplace with technological Simple and safe contracting process. 100 111 solutions, that brings buyers and sellers together. Credline 2.0 2 10 Digital Assistant New proposal origination platform, with Online credit analysis and approval platform, simple and renewed digital experience. without additional cost for the dealer. 2018 2019 2Q20 Floor Plan 3 9 Digital Contracting Credit lines for partner dealers. Integrated to iCarros and other digital environments, like dealers’ websites and others e-commerces. Main commercial partnerships Lead Manager 4 8 Eletronic signature $ Dealer platform to manage leads in one Digital and simple experience for the place. customer and the dealer. 5 7 ConectCar Knowledge Garage Payment of tolls and parking without queuing. Distance learning platform to training the professionals from the sector. 6 Insurances Protection to the car and tranquility in financing. 41
Credit Ourbusiness Card Our credit card options serve current account holders andnon-current account holders Weare leaders in the credit Main brands Convenience to clients card segment in Brazil, To individuals, verysmall, smallandmiddle-market companies Financial services through creditcards. totaling around 33.0 million and corporate segment. $ Personal credit cardsand 29.8 million credit debitcards(bothin number of accounts) . Payment ofbillsin installments Commercial partnerships $ Debt renegotiation Main partnerships with retailers and traders. Consumer credit Itaucard App Benefits toourclients Digital billing statements: Paperless. More environmentally friendly. Timeline: Tofollow up consumption. Loyalty program: Points andreward program. Digital portfolios Increased comfort and convenience toourclients. Virtual card: Added security for online purchases. Virtual cards generated (2Q19 = Base 100) 2Q20 238 2Q19 100 2.4x 42
Credit Ourbusiness Card Transaction Volume 2Q20 13.5%¹ 129.517 Total 126.316 R$101.3 billions oftotal salesare carried Debit -21.8% (vs. 1Q20) 30.947 32.114 101.335 out using digital channels -19.8% (vs. 2Q19) 25.509 Credit 40.3%² in 1Q20 95.368 97.403 Credit -22.2 % (vs. 1Q20) 75.826 -20.5 % (vs. 2Q19) + 3.6 pp vs1Q19 of household consumption Debit -20.6% (vs. 1Q20) are card expenses 2Q19 1Q20 2Q20 -17.6% (vs. 2Q19) Composition of credit balance 10.2% SFN Transactor 67.9% 22.0% 33.4% +2 points whithout Itaú Installment with Interest Market Share Customer 10.1% Weare leaders in the satisfaction 78.6% 11.3% Revolving Credit + Overdue Loans Brazilian creditcard Global NPS—Business Market Jun-20 vs. Aug-18 Data base: Mar-20 (1) ConsidersonlycreditcardsissuedtocurrentaccountholdersofBranches, Uniclasse Personnalité . (2) Consideronlycreditanddebitcards. Note: Data base referstoJun-20 excepthousehold comsuptiom. 43
Acquiring Ourbusiness services Transaction Volume Our brands 2Q20 121.858 Total 114.055 R$102.5 billions 102.521 45.282 Debit -15.9% (vs. 1Q20) 39.959 -10.1% (vs. 2Q19) More thande 40.429 25 brands credit -18.9% (vs. 1Q20) accepted by Rede 74.095 76.575 62.092 Credit -16.2% (vs. 2Q19) machines debit -10.7% (vs. 1Q20) 2Q19 1Q20 2Q20 + 1.2% (vs. 2Q19) Acquiring service revenues (R$ million) 837 thousand 1,226 1,252 1,177 1,106 Clients 964 932 908 +33 points 737 Customer 528 1.4 mn satisfaction POS Global NPS—Business number Jun-20 vs. Aug-18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Note: Data base referstoJun-20. 44
Our Insurance business We insurance offer a core wide activities,range of insurance which include products our 30%related interest to life, in Porto personal Seguro, accidents, consist vehicles of mass and-market property insurance credit products and travel. related Our tolife and property, and credit. Ranking¹ ,² Combined Ratio – Recurring Activities Insurance jan-may/20 jan-may/19 Model 52.7% 55.2% 53.8% 52.6% 50.5% Total Insurance 3 4th 4th Recurring Insurance Activities 4 4th 5th 58.3% 61.9% 60.6% 60.4% 57.1% Life & Personal Accidents 2nd 2nd Bancassurance Credit Insurance 6th 6th Bancassurance 2Q19 3Q19 4Q19 1Q20 2Q20 Pension Plan 3rd 3rd Bancassurance Combined Ratio Extended Combined Ratio Premium Bonds 5th 4rd Bancassurance Porto Seguro 3rd 3rd Potential growth in the sector 8 Chile: 4.7 Leader: Porto Seguro Leader: Porto Seguro Broker USA: 11.3 Vehicles 5 Revenue from insurance operations/GDP (%) South Korea: 10.5 Residential 5 Leader: Porto Seguro Leader: Porto Seguro Broker 3.8 3.8 3.8 3.7 3.6 Other Insurance Activities 6 6th 5th 3.2 3.3 3.4 2.9 2.9 3.0 Large Risks 7 we do not offer this product. Health Insurance we do not offer this product. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (1) Source SUSEP, date: May-20, includes our 30% interest in Porto Seguro. Doesn´t consider Health and VGBL is consider in Pension Plans; (2) Insurance = Earned Premiums; Pension Plans = Provision for Benefits to be Granted and Premium Bonds = Revenues from Premium Bonds; (3) Recurring insurance activities and other activities; (4) Recurring insurance activities include: Personal Insurance (Life, Personal Accidents, Unemployment, Funeral Allowance, Serious Diseases, Random Events, Credit Life), Housing, Homeowners, Multiple Peril and Travel; (5) Considers only Porto Seguro numbers; (6) Other activities include: Extended Warranty, Large Risks, DPVAT and IRB;(7) The sale of this portfolio has been concluded on October 31, 2014.(8) Sector growth potential figures for Chile, USA and South Korea refer to 2018. 45
Insurance Ourbusiness | Insurance Open Platform Vehicles Insurance consultants + Life Insurance Shop Multi-channel distribution Manager Health (Companies) Focused on commissions and fees Full Life Cashier Internal Internet Banking/Mobile CreditLife ATM Dental (Individuals and Companies) Specialized sales force Protected Card Call Center Premium Bonds Homeowners NAC/Partners Easy access and External Multi-channel Travel convenience to clients Corban Broker Platform Smartphone protection Mortgage Retention Post-Sales Analytics Corporate lines Marketing Clientservice Satisfaction Excellence in post- Guarantee Insurance sales Relationship with Auto, Moto, Home and clients Pet Assistance 46
Pension Ourbusiness plan Open platform Reasons toinvest: Concept 1,3,6,9: Howmuchdoes theclienthaveto savetoenjoya peaceful retirement? 1 Retirement 5 Financial return Years of salary accumulated Age Funds carefully selected 2 Future expenses always keeping theclientin 6 Enable easy 1 35 changing ofplan 3 45 mind 3 Children education 7 Succession 6 55 4 planning Tax planning 9 65 Technical Provisions R$ Billion 213.6 211.8 204.8 208.9 207.8 196.6 200.4 185.2 190.0 154.8 158.1 161.4 156.5 159.2 144.0 149.0 151.6 140.4 38.1 39.2 40.6 41.7 42.8 43.5 44.9 43.8 45.0 6.6 6.8 7.0 7.0 7.2 7.3 7.4 7.5 7.7 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Traditional + 5.7% (vs. 2Q19) PGBL + 5.1% (vs. 2Q19) VGBL + 2.8% (vs. 2Q19) 47
Services Ourbusiness | Investments Investment Open Platform Third-party products offered Funds Fixed income 2 Fixed Income CDB Multimarket LCA Funds Fixed income Pension Plan Equities RealEstateFunds Treasury Direct COE Savings Equity LCI Pension Plan Variable Income Pension Plan Fixed Income Real EstateFund Treasury Direct Zero custody fee Zero initialand Zero custody fee Zero brokerage and Zero custody for sharesofItaú final contribution for third party FI custody feeondigital fee-Itaú Corretora andthe fees via Itaú Corretora channels Corretora stock exchange Itaú Asset Management The largest private asset manager in Brazilin figures: Responsible R$720 billlion¹ investments assetsunder management We incorporate ESG issuesinto our investment process. + 60 years 11 times in investment management bestfund manager by “Exame” magazine (1) Source: ANBIMA (Brazilian Financial and Capital Markets Association) –June -2020. Considers Itaú Unibanco and Intrag. (2) CDB—Certificates of Banks Deposits. LCA—Agricultural Credit Bonds. LCI -Real Estate Credit Bonds 48
Services Ourbusiness | Wholesale Banking Middle Investment Banking Annual revenues from R$30 mn to R$500 mn Leadership position and client recognition “Focused on clients with the best ratings, with 95% of the credits being rated B3 or better, and with operations in Fixed income diversified services, such as Cash Management, Foreign We took part in local operations with debentures, promissory notes and securitization, Exchange, Investment Banking and Funding. “ which totaled R$3,338 million up to June 2020, taking the second place in the ANBIMA (Brazilian Financial and Capital Markets Association) ranking. Corporate Banking Annual revenues over R$500 mn Equities “We offer a broad portfolio of banking products and We undertook 8 offerings in South America in the first semester of 2020, which totaled services, ranging from“ cash management ”to structured US$585 million, taking the second place in the Dealogic ranking. transactions and transactions in the Capital Market. We serve around 3,317 large business groups (includes Mergers and Acquisitions Agrobusiness) in addition to serving more than 240 In the first half of 2020, we provided financial advisory on 18 transactions in South financial institutions. ” America, totaling US$757 million and maintaining the leadership position in the Dealogic ranking. Agrobusiness Large and Regional (medium size + producers) Project Finance “We serve more than 1,200 customers in the integrated In the first half of 2020, we served as advisor and/or creditor of approximately R$7.4 agribusiness chain, from plants to rural producers, with an billion in financing to 25 different infrastructure projects in different sectors. emphasis on Targeted products and Foreign Currency, in a Ranking 2Q20 2019 2018 portfolio of more than R$30 billion.” M&A¹ 1st 1st 1st LatAm Local ECM¹ 2nd 1st 1st Presence in all banking segments in Latin America. Local DCM² 2nd 1st 1st International DCM¹ 2nd 3rd 6th Markets, Products & Planning Treasury operations for the conglomerate. Derivatives Total3 1st 1st 1st (1) Source Dealogic; (2) SourceANBIMA –BrazilianFinancial andCapital Markets Association. Information fromJun-20; (3) Source: Cetip. Information fromJun-20. 49
Services Ourbusiness | Wholesale Banking WMS R$ million Large range of customized wealth management and investments solutions Securities Services Evolution of Assets Under Administration1 Local Custody: we ended Junewith R$1,404.5 billion under custody (practically stable from the same period of 2019). Investment Product management for the conglomerate and a full range of investment International Custody: we ended June with R$112.8 billion under custody (-36.4% from options to Retail Banking. the volume under custody in the same period of 2019). 1,363 1,299 Corporate Solutions: we are leaders in the bookkeeping of shares, providing services to 1,176 1,107 189 companies listed on B3, representing 58.2% of the total market, and in the 1,025 946 bookkeeping of debentures, we work as a bookkeeper for 342 (28.9%) used. 883 801 752 Private Banking With a full global wealth management platform, leadership position in Brazil. We have been recognized by the world’s top international Private Banking market publications: Private Banker International Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 • Outstanding Global Private Bank -Latin America, 2019 PWM / The Banker • Best Private Bank in Brazil, 2019 (1) Includes only Brazil (ex-Latam). 50
Services Ourbusiness | Wholesale Banking Asset Management Kinea It is an independent platform of management of differentiated investments. With R$61.1 billion in assets as of June 2020, it operates in the segments of Multi-Markets, Real Estate, Pension Plan and Private Equity, Stock and Infrastructure. Asset Management In June 2020, we reached R$720.21 billion in assets under management. Over 60 yearsin investment management and11 times bestfund manager by “Exame” magazine. Itaú Asset Management integrates ESG issuesin the investment process: Timeline ofIAM responsible investment practices Signatory to Proprietary modelto White paperonthe Launching ofAMEC White paperon incorporate ESG issues responsible investment White paperabout incorporation ofESG Stewardship Code/ intothe analysis of through theSDGslenses responsible investment in intothe analysis of Latin America funding fixed income (imagebelow). thedaysofCOVID-19 2008 2010 corporate 2014 securities 2016 2018 2020 2004 2009 2013 2015 2017 2019 Itaú Asset ESG issues White paperonthe Internal studyabout Carbon footprint Incorporation ofESG issues Management launches incorporated into incorporation ofESG ESG issuesand calculator for funds intothe analysis ofmore its Itaú Social theProxy Voting issuesintothe analysis sovereign bonds than95% ofassetsunder Excellence Fund(FIES) policy of funding management (AuM) ofIAM (1 Source: ANBIMA (Brazilian Financial and Capital Markets) Association) –June 2020. Considers Itaú Unibanco and Intrag. 51
Corporate governance 52
History Corporate governance of our Governance We facilitates believe accessthat a to sound capital and andmeritocracy contributes -based to business governance, continuity. guided towards long -term value creation, adds value to our business, Highlights 1999 2001 2006 2007 2017 1995 Inclusion in the Dow Level I of Corporate 2004 Certification under section Voluntary adherence Policy for Nomination of 2018 Stock OptionPlan Jones Sustainability Index Governance of B3 Audit Committee 404 of Sarbanes -Oxley Act to Abrasca’s Manual for Executives: minimum 30% of Election of Independent Creation of Dividend Internal Regulation of the Material Information independent members in C.A. -XP Investimentos (XP) Board Members reinvestment program Board of Directors Control and Disclosure CADE’s approval of the acquisition of a minority interest, Inclusion in the Bloomberg Equality Index reaffirming the independence of management –Itaú Unibanco acquired 49.9% of the capital, with 30.1% of the common shares 2000 -First woman elected on the Board of Directors -21 years on the NYSE Corporate Code of Ethics -50% stock split Independent Fiscal Council 2008 Corporate with a 50% increase in dividends paid monthly; 2002 Governance 2013 - Encouraging diversity and new Vou Como Sou Disclosure and Trading Committee Policy Related Party Committee dress code; Level II ADR Program - Board of Directors; 1996 Tag Along - General Data Protection Law as a Priority for Itaú APIMECs 2008 Unibanco meetings and 2005 2015 Roadshows Nominating and Compensation Committee Inclusion in the Sustainability -10 years of merger between Itau and Unibanco VigeoEIRIS Index – Emerging 70 Inclusion in the Corporate Sustainability Index New Management Structure of 2019 2005 Merger Itaú Unibanco Holding - Changes in the composition of the Trading Committee and Policy Executive Committee: Inclusion in the Corporate 2010 2012 Sustainability Index Digital Assembly Caio Ibrahim David assumed the position of Partners and Associates Program General Director of the Wholesale department 2007 1999 2002 and Milton Maluhy assumed the position of Certification under section APIMECs meetings Disclosure 404 of Sarbanes -Oxley Act Vice-President of Risks and Finance, being part Inclusion in the Dow Committee of the Executive Committee andPolicy 2009 2011 Jones Sustainability Index Strategy Committee Voluntary adherence to the Abrasca’s -The creation of the Social Responsibility Risk and Capital Code of Self-regulation and Best Committee Management Committee practices of Publicly -Held Companies Approvedon January 31, 2019 2003 Remuneration Committee Election of Independent Members Nomination and Corporate Governance Committee 2020 2001 Personnel Committee - Disclosure of the Management Members’ 1997 Stock Option Plan LevelIII ADR Compensation Policy Level I of Corporate Governance of B3 53
Our Corporate governance governance structure family family Egydio de Family control, with Moreira Souza long-term vision Free Float Salles Aranha ON PN ON PN 100% 36.73% 81.87% 63.27% 18.13% Cia. E. Johnston 66.36% 33.64% de Participações ON PN 50.00% 0% 33.47% Itaú Unibanco Highly diversified 66.5% participações Free Float* (IUPAR) shareholder base ON PN ON PN ON PN Non-voting shares (PN) 39.21% 0.004% 51.71% 0% 7.76% 99.59% 4.8 billion of shares 19.91% 26.15% 52.95% Traded onB3 74% 51% Brazilians 49% Foreigners Traded onNYSE Itaú Unibanco Holding S.A. 26% 100% Foreigners Note: ON = Common Shares; PN = Non-voting Shares; (*) Excluding shares held by majority owners and treasury shares. 54
Pillars Corporate governance ofour Governance management aligned decisions madeon Focus on performance with meritocracy -based a collective basis andvalue creation culture Family control ensuring long-term strategic vision IUPAR • Alignmentamong shareholders • Defines group’svision, missionandvalues • Assessessignificantmergersand acquisitions Itaú Unibanco Holding S.A. • Nominates executives totheBoard ofDirectors • Evaluation of performance andadmissionoffamilymembers • Discussesandapproveslong-termstrategies Focus on decision -making , resolving uponhigh impacttopics Shareholders’ General Meeting for the company’s destiny Fiscal Council Responsible for value creation bymeansof strategic Board of Directors definition Committees Executive Committee Professional management withthe implementation of strategy andday-to-day management Disclosure and Trading Committee 55
CorporateBoard governance of Directors the keyOur Board differentials of Directors of our consists management. of professionals with exceptional knowledge and expertise in different areas of expertise, some of Mainduties 2 Co-chairmen Board of Directors Pedro Moreira Salles 2 4 6 7 8 Committees • Defining and monitoring the strategy; Roberto Egydio Setubal 5 6 8 • Assessing mergers and acquisitions; • Monitoring the Executive Committee performance; 1 Audit Committee • Appointing officers (meritocracy); 1 Vice-president • Approving the budget; Ricardo Villela Marino 6 2 Personnel Committee • Defining and supervising risk appetite and policies for capital use; 3 Related Parties Committee • Defining and monitoring incentive and 9 Members, being6 Independent members Nomination and Corporate compensation models and establishing goals; 4 Governance Committee • Supervising the technology strategy; Alfredo Egydio Setubal 2 4 7 • Defining meritocracy policies; Ana Lúcia de Mattos Barretto Villela 2 4 7 5 Risk andCapital Management • Supervising the business operation. João Moreira Salles 6 Fábio Colleti Barbosa 2 3 4 6 7 6 Strategy Committee Gustavo Jorge Laboissière Loyola 1 3 8 The evaluation processoftheBoard of Directors is José Galló 2 7 Social Responsibility Committee carriedout bya third-party.Each director evaluates Marco Ambrogio Crespi Bonomi 4 5 themselves, theother directors andof the organ as a 8 Compensation Committee Pedro Luiz Bodinde Moraes 3 5 8 collegiate ”. Frederico Trajano Inácio Rodrigues 56
COVID Corporate governance -19 Governance Committee Responsible for monitoring the crisis and its impacts, deliberations and institutional positioning. Executive Committee agenda Check Point of Executive Committee + 7 Institutional Crisis Management Committee and Check Point of Risks Febraban and Retail War Rooms and Wholesale Committee People, Legal, Marketing, IT, CRM and Service channels War Rooms Monitoring Retail War Room and adjusting operations in real time. Institutional Crisis Management Committee ï,§ Morning Calls. ï,§ Operation monitoring. Wholesale Committee Consolidates the treasury, credit and ECM war ï,§ Decisions coordination. rooms and monitors and adjusts their operations ï,§ Risks and contingencies mitigation. in real time. Check Point of Risks Febraban* Coordination War Room between banks and alignment with ï,§ Closing day. public authorities and regulators.ï,§ Market, credit, liquidity and operational risks monitoring. * Febrabanis the Brazilian Federation of Banks. 57
Board Corporate governance of Directors Committees Our committees report directly tothe Board of Directors. Strategic committees 8 since2004 since2011 since2009 since2009 since2018 Audit Compensation Personnel Strategy LATAM Strategy committees 100% ofthemembersare independent 100% ofthemembersare non-executive 100% ofthemembersare non-executive 100% ofthemembersare non-executive 60 meetings in theyear 5meetings in theyear 4 meetings in theyear 5 meetings in theyear Council Ensures the integrity ofthe Promotes discussions on Establishes policies for Proposes budgetary guidelines; The Board of financial statements; incentive and compensation attracting and retaining provides inputs for decision—Assesses the outlooks for the Directors is complies withlegal and models; develops talented professionals; making processes; world economy; adopts responsible for regulatory requirements; compensation policies for proposes guidelines for recommends strategic internationally accepted trends, and ensures the efficiency of management members and recruiting and training guidelines and investment codesand standards; and electing the provides guidelines for the Board members ofthe internal controls andrisk employees; and establishes employees; and presents long- opportunities; and management goals term incentive programs and internationalizes and creates of Directors to analyze committees for monitors the culture of new business areas. opportunities one-yeartermsof meritocracy office. since2019 NEW since2013 since2009 since2009 since2017 Social Related Parties Risk and Capital Nomination and Digital Advisory Theymust have Responsibility 100% ofthemembersare independent Management Corporate Governance Board 12 meetings in theyear proven 4 meetings in theyear 100% ofthemembersare non-executive 100% ofthemembersare non-executive knowledge in the Defines strategies to Manages transactions 12 meetings in theyear 3 meetings in theyear Proposes technological respective areas between related parties; and Supports the Board of Periodically reviews the criteria for developments; assesses strengthen oursocial ensures equality and client’s experience; and of work and responsibility; monitors the Directors; establishes therisk nomination and succession; transparency for these appetite; evaluates the cost of provides methodological support follows world trends technical performance and defines the transactions allocation process ofthe capital x the minimum return for the assessment of the Board of qualification expected; allocates capital; Directors and Chief Executive Rouanet Law compatible with oversees risk management Officer; nominates members of the their duties. and control; improves risk Board of Directors and Senior Vice cultureand complies with ); Gerais Presidents (Diretores and regulatory requirements analyzes potential conflicts of interests 58
Our Corporate Executive governance Committee The Executive Committee is responsible for implementing the strategy andday-to-day management. Main duties • Implementing the guidelines and goals proposed by the Board of and human resources; Directors; • Monitoring market, creditand operational risks; and • Carrying out business and strategies related to products and segments; • Leading thebankin the search for value creation. • Ensuring thebest allocation and management of financial, operational Chief Executive Officer (CEO) Candido Botelho Bracher • Ombudsman Senior Vice Presidents (Diretores Gerais) Executive Vice Presidents Wholesale Retail IT and Operations Risksand Finance Legal and Human Resources Caio Ibrahim David Márcio de Andrade Schettini André Sapoznik Milton Maluhy Filho Claudia Politanski • Large and Medium • Branches • IT • Risks • Legal and Internal Corporates • Cards • Operations • Finance • Human Resources • Asset Management • Rede • Procurement • Corporate Communication • Institutional Treasury • Real Estate • Institutional and Governmental Relations • Private Bank • Insurance • Marketing • Custody • Vehicles • Sustainability • Latin America • Consortia • Investment Banking • Payroll 59
Partners Corporate governance and Associates Program program, Aiming at focused aligning on the managementinterests ofour members officers and and employeesemployees with with outstandingthose ofour performance.shareholders, we maintain a partner and associate’ Long -term incentives The investment The program offersto participants the opportunity toinvestin ournon-voting Net variable must be retained compensation ITUB4 shares (ITUB4), receiving a return alsoin shares, sharing short, medium and for: long-term risks . 50% 50% 3 year 5 years Partners and associate receive a returnonthe 70% associates 30% associates investment in the program 50% partners 50% partners Available for Available for The partners program mayalso consider , shares sale sale other instruments derived from grantyear as opposed toactualshares. year1 year2 year3 year4 year5 year6 year7 year8 The share price considered at the grant and delivery dates is calculated on the (delivery (delivery ofthe seventh business day before of each , event Sharesreceivedwillremain unavailable considering the average closing ITUB4 of50%) ITUB4 remaining 50%) for salefor fiveandeight-yeartermas fromeach investment in shares price in the 30 days prior to the calculation. Any partners and associates shares not yet Partners Associates received will also be subject to reduction Eight-yeartermofoffice proportional to a possible reduction in the Four-yeartermofoffice Eligibleto successive reappointments Eligibletotwo reappointments (maximum 12-year term) realized recurring net income of the Issuer Possibility toinvest50% to100% ofnet variable Possibility toinvest35% to70% ofnet variable compensation or of the applicable business area. compensation 60
Corporate Our shares governance traded Our capital as depositary stock is comprised receipts (ADRof9.8—billion ITUB ) on thecommon NYSE shares (New (ITUB3) York Stock and non Exchange) -voting .shares (ITUB4) . Non -voting shares are also Characteristics ofour shares Appreciation ofR$ 100 invested onthe date before the announcement ofthe merger ITUB3 ITUB4 ITUB (10/31/08) to June 30,2020 Stock Exchange ITUB4—with dividend reinvestment Bank basket with dividend reinvestment¹ Price² R$24.00 R$25.45 US$ 4.69 IBOVESPA Index Dollar 447 Voting right CDI 363 Priority dividends³ 290 259 Additional payout 4 255 100 Tag Along 5 80% 80% 80% Oct-08 Oct-10 Oct-12 Oct-14 Oct-16 Oct-18 Jun-20 Source: Economatica (1) Simple average of the three largest Brazilian banks ex Itaú Unibanco; (2) Closing price as of 06/30/2020, adjusted for earnings except dividends. Source: Economatica. (3) The non-votingshareswillhavetherighttothe priority minimum annual dividend (R$0.022 per share). (4) Additional payments maybemadein dividends or interest oncapital. ADR holders will be paid by the Custodian Bank, which will be responsible for paying the holders in an average time 10 days as from the payment in Brazil. (5) Mechanism for protecting minority shareholders in the event of a change in the Company’s shareholding control. 61
Capital andrisk management 62
Capital and riskOur principles management of risk management and theThe Board guidelines of Directors involving is our main the institution’scapital management level of capitalization. body, responsible for approving our institutional capital management policy Capital adequacy We adopt acapital, using theforward following-looking phases: approach when managing our Through our internal capital adequacy assessment process (ICAAP), we evaluate our capital adequacy for addressing risks, identification of the material risks and the evaluation of additional capital represented by our regulatory capital for credit, market and operating risks, and the capital required for covering other preparation of the capital plan, in situations of both normality and stress risks. To ensure our solidness and the availability of capital to internal capital adequacy assessment support the growth or our business, our Reference Equity remains above the minimum levels required by the Central structuring of the capital contingency and recovery plans Bank. preparation of managerial and regulatory reports Main indicators ascertained based on the Prudential Conglomerate on base date June30, 2020 Basel Ratio Reference Equity Dividends and IOCin 2Q20 Payout in 2019¹ 13.5% R$141 billion R$745 million (net of taxes) 66.2% (1) Dividends and net interest on own capital / recurring net income 63
Basel Capital and risk IIImanagement and Capital structure Our current ratio Basel III requirement 13.5% 1.4% Tier II 2.0% Total Capital (10.25%—12.75%) Additional Tier I Capital (AT1) 1.7 % 1.5 % TierI (8.25%—10.75%) CET 1 (6.75%—9.25%) Countercyclical² 0 – 2.5% ACP¹ Systemic³ 1.0 % Conservation 4 1.25% 10.4% Common Equity Tier I 4.5% Jun -20 (1) ACP = Additional Principal Capital. (2) Countercyclical ACP: defined by each Central Bank. BACEN and currently set at 0%.(3) Systemic ACP: Requirement required for systemically important banks at domestic (D-SIBs) or global (G-SIBs). For Itaú Unibanco, this requirement is 1.0% . (4) Regulatory change implemented: conservation ACP from 2.5% to 1.25% from April 2020 to March 2021. AsofApril / 21, the conservation ACP will gradually increase, remaining again at 2.5% in April / 22. (CMN Resolution 4,783). 64
Capital and riskPayout management Practice 2019 Total payout simulation ROE 2019 ROE 23.7% 15.0% 17.5% 20.0% 22.5% 25.0% RWA 9% 5.0% 65% -70% 70 -75% 75 -80% 80 -85% 85% -90% The return and growth RWA 10.0% 40% -45% 45 -50% 50 -55% 55 -60% 60% -65% scenario positioned the growth 35% 35% 35 -40% 40 -45% 45% -50% 15.0% percentage to be The percentage to be distributed may change every year based on the company’s profitability and capital demands, always considering the distributed in the range minimum set forth in the Bylaws. of 60% to 65% 2019 2019 Payout Dividend yield R$18.8 billion is the net amount paid and provisioned 66.2% 77.6% 5.5% in dividends and interest on own Dividends and net interest on Dividends and gross interest capital in 2019 own capital / recurring net income on own capital / net income¹ (1) Calculated based ondividendsand interest on own capital (IOC) gross of taxes over net income adjusted by the legal revenue reserves. 65
Capital Capital and risk management cost management We are continually striving to manage our capital allocation efficiently through an appropriate capital cost. The Board of Directors, then, Board of Directors deliberates on and approves the changes or the ratification of the cost of own capital When the monitoring indicators of the CoE exceed the monitoring range, the committee evaluates the indicators and decides whether to . Directors propose a revision of the capital cost to the Board of Monitoring is based on in-house models, market data and evaluations of the cost of the bank’s capital and that of the market. Risk and Capital The cost of own capital is monitored monthly by Management a committee that reports to the Board of Directors. Committee 66
How Capital and risk are wemanagement structured for managing risks? risks area and,A classical model lastly, with thethree audit lines of area defense: subordinated the business to the Board areas of bearDirectors primary responsibility for risk management, followed by the Discussion of metrics and Audit Committee the outcome of Risk Capital and Risk Management Board of Directors Gustavo Loyola¹ Appetite, as well as the Committee Pedro Moreira Salles main risk topics Pedro Bodin¹ Roberto Egydio Setubal Internal Audit rd 3 line of defense Monthly monitoring of Risk Appetite Paulo Miron Independent review of the Itaú Unibanco Holding activities in which the Candido Bracher institution is engaged Technology and General Wholesale General Retail Risk and Finance Control and Legal, Institutional and Operations Office Office Management Department Personnel Department Department Caio Ibrahim David Marcio Schettini Milton Maluhy Filho Claudia Politanski André Sapoznik • Executive Office, Finance and Market Risk 1st line of defense • Investor Relations Office 2nd line of defense • Operational Risk and Compliance Manages the risks these Executive Office Ensures that the risks are managed and sustained on the generate , with responsibility • Credit Risk, Modeling and AML principles of risk management: for identifying, assessing, Office • Risk Appetite controlling and reporting • Policies • Procedures (1) Independent director. • Dissemination of the risk culture in the business 67
Capital and riskRisk Managementmanagement risk management fully timely and preemptive action, widely disseminated integrated into the focusing on creating increasing and risk culture performance of the business sustainable value and on client centricity COVERAGE PERFORMANCE Previous Current ïƒ Future Credit Business Market Focus Processes Business Client and liquidity Regulatory Attitude Reactive Preemptive Operations Form Reporting Challenging Technology Compliance Center Problem Solution Corporate People Security 68
Our riskCapital and risk management management principles Riskrisk andappetite metrics, consists and coordinates of a 4-layer the set ofstructure: guidelines principles on the of risk assumption management, of risks. declaration by the Board of Directors, magnitude of the Thethe employees principles of risk of IUH work and takemanagement definedecisions. the fundamentals of risk management and risk appetite based on 6 pillars, providing guidance on how Sustainability and customer satisfaction Risk Culture Pricing of risk we want to be the leading bank in sustainable our risk culture extends beyond policies, procedures we operate with and assume business risks we know performance and in customer satisfaction. We strive and processes, strengthens the individual and and understand, avoiding risks we are not familiar to create shared value for our employees, clients, collective responsibility of all employees, so that with or in which there is no competitive advantage, shareholders and society, ensuring the perpetuity of they do the right thing at the right time and in the. ratio carefully evaluating the risk-return our business. correct manner, respecting the ethical way of business . doing Diversification Operational excellence Ethics and respect for regulations we have a low appetite for volatility in our results, we want to be an agile bank with a robust and stablenegotiable . For us, ethics are non- We foster a which is why we operate with a diversified base of infrastructure, to provide a high- . service quality proper institutional environment, instructing our clients, products and businesses, striving to employees to cultivate ethics in relationships and diversify the risks to which we are exposed and business and to abide by the rules, thereby prioritizing lower risk business. defending our reputation. 69
How Capital and risk do wemanagement establish our risk appetite? Riskmaximize appetite the defines creation the of value. nature and level of the risks acceptable to our organization, delimiting the conditions in which our management will strive to The policy is drawn up and approved by the Board of It is monitored, discussed and reported on a regular basis to the Directors executive levels, the Board of Directors and the Audit Committee Where is Risk Risk Appetite Board of Directors Declaration bytheBD:“Wearea universal bank operating mainly inLatin Appetite inserted? Executive Level America. Withthe support ofourrisk culture, we operate tostrict standards Global Limits ofethicsand regulatory compliance inthe search forhigh-level results and Specific growth with low volatility, through long-standing relationships with our Limits clients, correct pricing ofrisks, diversified sources of funding and proper use ofcapital. ” Competencies and Policies 5 dimensions that underpin our risk management structure Capitalization Liquidity Credit, Market and Business Operational risk Reputation stipulates that we must have stipulates that our liquidity establish concentration limits, foster the is centered on controlling deals with risks that could enough capital to protect us from should weather long diversification of revenues in the search operational risk events that impact our brand value and a stress event without adjusting periods of stress. to ensure low volatility in our results and could have an adverse impact reputation. our capital structure. the sustainability of our business. on our strategy. ï,§greatest creditrisksï,§operational risk events and ï,§suitability indicators losses incurredï,§Capital ratios in normal and ï,§LCRï,§highest exposuresï,§media exposure stress situationsï,§information technology metricsï,§NSFRï,§concentration by sectors, ‘ ï,§follow-up on client complaints Examplesofï,§ratings on debt issues countries and segmentsï,§regulatory complianceï,§marketrisk concentration 70
Capital andrisk Market management Risk and Liquidity Management Solid management of liquidity and market risk Average VaR¹ in the quarter Liquidity Coverage Ratio(LCR) Net Stable Funding Ratio(NSFR) 504.3 431.0 350.2 341.0 201.7% 122.8% 121.1% 122.2% 122.5% 205.9 169.5% 167.2% 179.1% 117.5% 116.8% 2Q16 2Q17 2Q18 2Q19 2Q20 Jun-17 Jun-18 Jun-19 Jun-20 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 (1)VAR=ValueatRisk. 71
Capital andrisk Corporate management Security Mindset Constant concern about risks Integration with Business and Benchmark with the market with an expanded view of Technology risk and vulnerability testing throughout the perimeter. Presence with the IT and Business teams in the risk assessment of new products and services. Market leadership Security Governance Dialogue and vision of trends with the main Effectiveness and adequacy of our controls stakeholders and regulatory bodies in the category. based on clear and objective policies. Employees Sustainable and Efficient Solutions Security as a Strategy Automation of cyber security with the use of Analytics, Preparation for the future with Research & guided by the main frameworks of Information Security. Development of controls and technologies. protectby design process discipline human capital › Secure development › 24X7 Operations Center › Attraction, training and retention program › Secure infrastructure architecture › Prevention, detection and response to threats › Continuous search for international benchmarking › Data observability › Constant blue team x red team exercises › Integration withthe business › Frequent and controlled pen testing › SI certified team 72
Information Capital andrisk management Security Our processes guarantee the care and focus necessary to protect our environment vulnerability management and technological infrastructure to face the adherence to security standards in a constant evolution of cyber threats technological environment application of corporate principles and internal and external intrusion tests and scans guidelines for the protection of information in the environment, in order to reduce the risks of and intellectual property attacks, image, exposure and information leakage and architecture of solutions and products with administration of security tools with a certified and the highest degree of security together with Projects Operations specialized team in the most diverse technologies the business and technology areas Governance maintaining the safety of current products , monitoring and handling all types of attacks allowing for safe and efficient expansion and security incidents 73
Capital and riskClimate management risk Climate risk and its variables comprise the analysis of Alignment with TCFD recommendations – December 2019 Implementation socioenvironmental risk at Itaú Unibanco. This approach Aspect Delivered in 2019 places Itaú in a strategic position to ensure the perpetuity of status Defining the target for implementing TCFD by 2022, Governance 73% its business and operations in the face of climate change and strengthening and integration of related teams. the consequent impacts on the economy. Attending and taking a position at global and local forums for the joint development of tools and scenarios; and Strategy 54% considering sectors highly exposed to climate change We highlight our work related to the strategic pillars of the Task when defining the bank’s sensitive sectors. Force on Climate -Related Financial Disclosures (TCFD) Developing and applying a methodology to analyze the The initiative was conceived within the scope of the Financial Stability Board (FSB),and proposes recommendations for climate disclosure forthe Risk management 76% bank’s portfolio’s exposure and sensitivity to climate change, as well as processes to assess climate risks in credit. financial and non-financial sectors on the pillars of Governance, Strategy, Risk Management and Targets and Metrics. Setting operation emissions targets with a limit scenario Targets and metrics 78% based on science; enhancing financed emissions; setting out indicator panels and adherence to projects. “Crises such as the one caused by the COVID -19 and climate change impacts respect no geographical or Including climate change information in financial reports; execution of the Brazilian Business Council for Sustainable political boundaries and put spotlight on social Cross-cutting Development (CEBDS) letter on advocacy pricing in Brazil; inequalities and vulnerabilities. The damage caused providing technical training on the topic to internal stakeholders. by climate change may be slower, but it is more long- Consolidated implementation status lasting than those caused by the pandemic, that’s for Dec-19 sure. “ Cândido Bracher. 74
Risk and capitalE&S Risk inmanagement Credit Granting E&S Risk Management in Credit Granting includes actions and criteria adopted by Itaú to analyze specific clients, products and operations, and establish real estate guarantees. To this end, we factor in: Exclusion List Sensitive Sectors Products and Specific Operations The Exclusion List applies to all client segments and Clients in the sectors mentioned below submitted to New products, as well as the structuring of specific includes activities that are contrary to our values. internal higher level credit approval authorities are operations, including project related operations, Therefore, we do not grant credit to: also submitted to a qualitative -quantitative ESG undergo an E&S risk assessment before starting • Use of labor analogous to slavery; analysis that directly impacts their risk rating: operations and/or at closing the deal. This analysis • Use of child labor in a manner that is not in • Mining can include an Action Plan to be followed accordance with legislation; • Steel and iron and metals up/monitored with the client over the financing • Oil and gas term • Exploitation of prostitution, including child • Textile prostitution. • Pulp and paper • Chemical and Petrochemical List of Restricted Activities Based on the existing risk and internationally Agribusiness: Rural Clients Real Estate Guarantees recognized market practices, we follow specific For rural producer clients, we apply a proprietary The existence of E&G liabilities is assessed, guidelines for granting and renewing credit to the analysis methodology that takes into account including contamination, before pledging urban sectors below: georeferenced reports on our clients and rural real estate as guarantees. In certain Firearms ’ real estate cases, these liabilities are taken into account to • Tobacco properties and in-person visits, which enable us to value the guarantee and the borrower may be • Extraction categorize and distinguish clients based on scores. required to replace the real estate property • of wood • Fishing pledged as collateral. • Cold storage plants and cattle slaughterhouses 75
Financial highlights 76
2Q20 Financial Highlights In R$ billions Credit Portfolio Recurring 7.2 7.3 R$811.3 bn 7.0 4.2 811.3 net income 3.9 788.3 703.4 722.6 R$ 4.2 bn 674.5 2Q19 3Q19 4Q19 1Q20 2Q20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Cost of Credit ¹ Recurring ROE 23.5% 23.5% 23.7% R$7.8 bn 13.5% 12.8% 10.1 13.5 % 5.8 7.8 4.0 4.5 13.0% Recurring ROE (%) 12.5% 12.5% 12.5% 13.0% Average Cost of Capital (%) 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 (1) Provision for Loan Losses + Recovery of Loans + Impairment + Discounts Granted Espaço reservado para rodapé 77
2Q20 Credit portfolio In R$ billions Jun-20 Mar-20 Jun-19 Credit origination¹ Individuals 228.8 238.1 -3.9% 222.3 2.9% 1H20 vs. 1H19 Credit card loans 72.9 83.8 -13.1% 79.3 -8.1% Individuals + 5% Personal loans 37.3 37.4 -0.2% 32.8 13.7% Payroll loans 50.4 50.3 0.2% 49.1 2.6% Very Small, Small and Middle Market + 13% Vehicle loans 19.5 19.4 0.3% 17.2 13.2% Corporate + 59% Mortgage Loans 48.8 47.2 3.5% 44.0 11.0% Total Brazil ² + 29% Very Small, Small and Middle Market Loans 107.4 104.5 2.8% 83.1 29.3% Private securities issuance³ - 16% Individuals + SME’s Loans 336.2 342.6 -1.8% 305.4 10.1% Corporate loans 259.2 250.2 3.6% 203.4 27.5% Credit operations 175.4 171.9 2.0% 146.4 19.8% Change in personal loans Corporate Securities 83.9 78.3 7.1% 56.9 47.3% Jun-20 vs. Mar-20 Total Brazil 595.5 592.8 0.5% 508.8 17.0% Personalised credit + 44% Latin America 215.9 195.6 10.4% 165.7 30.2% 674.5 Overdraft - 23% Total with Financial Guarantees and Corporate Securities 811.3 788.3 2.9% 20.3% 736.7 Installment credit - 36% Total (ex-foreign exchange rate variation) 811.3 810.8 0.1% 10.1% Note: (1) Does not consider origination of credit card. overdraft. debt renegotiation and other revolving credits. Average origination per working day in the period. except for private securities issuance. (2) Does not include private securities issuance. (3) Source: ANBIMA (Brazilian Financial and Capital Markets Association). Considers total volume of fixed income and hybrid private securities issuance arranged by Itaú Unibanco on the local market (includes distributed volumes). 78
2Q20 Financial margin with clients Annualized average rate %—Consolidated Annualized average rate %—Brazil 9.9% 10.0% 10.0% 10.0% 10.0% 12.2% 12.1% 11.8% 12.1% 12.2% 12.2% 11.9% 9.8% 9.8% 9.2% 11.1% 8.4% 10.2% 7.6% 7.7% 7.6% 7.6% 7.5% 9.5% 9.6% 9.2% 9.2% 9.2% 9.0% 7.4% 8.4% 6.7% 4.3% 5.2% 3.7% 4.1% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Financial Margin with Clients Risk-adjusted Financial Margin with Clients Change in financial margin with clients R$ billion R$0.3 bn 17.0 15.8 0.7 0.2 0.1 15.4 1.0 16.5 (1.3) (0.6) (0.7) (0.04) 1Q20 1Q20 1Q20 Retail Product Segment Mix2 Asset Spreads Average Asset Latin America Other 3 2Q20 2Q20 2Q20 Working Capital 1 Spread -Sensitive Mix Portfolio (ex-Brazil) Spread -Sensitive Working Capital 1 and Other Operations Operations and Other (1) Includes capital allocated to business areas (except treasury), in addition to the corporation’s working capital. (2) Mixof segments: lower share of the Retail portfolio and higher share of the Wholesale portfolio. (3) Includes the liability margin and structured wholesale operations. 79
2Q20 Provision from loan losses In R$ billions Expected loss provisioning model Cost of credit¹ 5.3% ratio between 3.3% 3.9% Allocation oftotal provisions 2.4% 2.6% the annualized 10.1 cost of credit¹ Jun-20 vs. Jun-19 and the loan 7.8 4.5 5.8 49.3 Total + 48.9% portfolio² -(%) 4.0 47.1 Expected loss 2Q19 3Q19 4Q19 1Q20 2Q20 Potential loss + 99.4% 33.1 25.7 Related to expected loss in retail 22.6 R$12.8 bn segment and potential loss in the Coverage ratio wholesale segment. (90 days NPL -%) 12.9 Aggravated risk ratings 920% Wholesale -Brazil Related to aggravated risk rating of + 19.6% 638% overdue R$1.9 bn 11.5 11.4 341% Latin America and renegotiated operations 9.5 399% 281% Total Overdue operations 247% 227% 239% 212% Related to minimum provision required + 13.8% 208% Retail -Brazil 10.7 13.0 12.1 193% due to overdue operations R$1.5 bn 172% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Mar-20 Jun-20 (1) Provision for Loan Losses + Recovery of Loans + Impairment + Discounts Granted; (2) Average loan portfolio balance with financial guarantees provided and corporate securities considers the last two quarters. 80
2Q20 Credit quality 15-90 days NPL (%) 90 days NPL (%) Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 3.5% 3.4% 3.4% 3.5% 2.6% 3.2% 2.5% 2.3% 2.4% 2.4% 2.3% 2.4% 1.7% 3.0% 3.1% 2.2% 2.9% 2.9% 2.7% 1.7% 3.5% 5.1% 5.0% 3.4% 4.7% 4.8% 3.2% 3.1% 4.5% 3.0% 2.5% 2.5% 2.4% 2.3% 1.9% 2.4% 2.3% 2.3% 2.3% 1.6% 1.6% 2.0% 1.4% 1.9% 1.8% 1.0% 1.4% 1.2% 1.9% 2.0% 1.4% 1.4% 1.4% 0.9% 0.9% 1.1% 0.7% 0.7% 0.7% 0.5% Total Brazil Latin America Individuals Corporate Very Small, Small and Middle Market companies 81
2Q20 Financial margin with the market In R$ billions 1.5 1.4 1.4 1.4 1.4 1.2 1.3 1.3 1.2 1.6 1.5 1.3 1.3 1.2 1.3 1.3 1.1 1.1 1.0 0.7 0.8 0.7 0.9 0.5 1.0 0.9 0.2 0.4 0.5 0.5 0.5 0.4 0.6 0.6 0.3 0.3 0.4 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Financial margin with Sale of shares -B3 Financial margin with 1 year moving average of the market –Brazil¹ the market–Latin America² financial margin with the market (1) Includes units abroad ex-Latin America; (2) Excludes Brazil. 82
2Q20 Commissions, fees and result from insurance operations In R$ billions 2Q20 1Q20 1H20 1H19 Monthly card transaction volume Credit and debit cards 2.5 3.0 -16.9% 5.5 6.5 -14.5% Base 100 = Jun/19 Card issuance 2.0 4.3 4.4 Acquiring 2.3 -13.3% -3.0% Issuance Services Acquiring 0.5 0.7 -28.3% 1.3 2.1 -38.9% Current account services 1.8 3.8 3.7 138 2.0 -6.3% 3.4% Asset management¹ 1.3 1.5 -13.2% 2.8 2.3 19.5% 131 100 101 Advisory services and brokerage 0.8 0.9 -15.9% 1.7 1.0 73.2% 100 77 Credit operations and guarantees provided 0.5 0.6 -19.2% 1.1 1.3 -10.7% 91 Collection Services 0.4 0.5 -7.4% 0.9 1.0 -6.9% 70 Other 0.3 0.3 3.9% 0.6 0.5 17.2% Jun-19 Dec-19 Apr-20 Jun-20 Latin America (ex-Brazil) 0.7 0.7 0.6% 1.4 1.5 -2.0% Commissions and fees 8.4 9.5 -11.8% 17.9 17.7 1.3% 275 7.2 % Open Platform 257 Result from insurance operations² 1.5 1.6 -2.9% 3.1 3.3 -6.7% Commissions, fees and resultfrom insurance 9.9 11.1 -10.5% 21.0 21.0 0.0% In R$ billions (end of period) Mar-20 Jun-20 (1) Includes fund management fees and consorcio management fees; (2) Result from insurance includes the revenues from insurance, pension plan and premium bonds operations net of retained claimsand selling expenses; 83
2Q20 Non-interest expenses Focus in technology In R$ billions 2Q20 2Q19 1H20 1H19 +802 Personnel Expenses (5.1) (5.5) -7.4% (10.3) (10.8) -4.9% employees Administrative Expenses (4.0) (4.2) -5.2% (8.0) (8.3) -3.7% hired by the Technology Other¹ (1.1) (1.3) -9.9% (2.4) (2.4) 0.0% area in the quarter Total -Brazil (10.3) (11.1) -6.8% (20.8) (21.6) -3.9% +1,327 employees in the last 12 months. Latin America (ex-Brazil)² (1.8) (1.6) 12.1% (3.4) (3.2) 5.6% Non-interest expenses (12.1) (12.7) -4.4% (24.2) (24.8) -2.6% Zup 1,448 employees incorporated in the Non-interest quarter 3.7% 2.4% expenses 1.8% -0.7% growing at a slower pace than inflation 0.4% -6.8% -0.5% -2.5% -4.0% Non-interest expenses growth year over year -9.0% Non-interest expenses growth (1) Includes operating expenses and other tax expenses compared to the same period of the (Includes IPTU, IPVA, IOF and others. Does not include PIS, Cofins and ISS); previous year (deflated by IPCA) 2Q19 3Q19 4Q19 1Q20 2Q20 (2) Does not consider overhead allocation. 84
2Q20 Capital June 2020 12.0% 0.3% 0.1% 12.1% 1.7% 0.2% 1.7% 0.1% 10.3% 10.4% Mar-20 Net income Prudential RWA of credit² RWA of Jun-20 Tier I Capital and dividends adjustments¹ the Market³ Tier I Capital (1) Tax credits, goodwill and intangible assets; (2) credit risk exposures (RWACPAD); (3) market risk capital requirement (RWAMINT) 85
2020 Perspectives Due to the lack of Capital and liquidity at appropriate levels considering our internal stress test scenarios. predictability of the extent and depth of the current In the short term, the credit portfolio will continue to expand proportionally more in the corporate segment, while more flexible repayment conditions for individuals, very small and small companies crisis, we will keep the 2020 will likely keep the portfolio stable in these segments. Increase in demand, or change in mix, is forecast suspended dependent on economic activity. Possible reduction in the average rate of the financial margin with clients (NIM)due to the progressive change in the credit portfolio mix and the impact of the lower interest rate on the remuneration of working capital and liability margin. Quarterly growth of commissions, fees and results from insurance in line with the recovery trend of economic activity and the reopening of capital markets Possible reduction in the cost of creditin the short term—anchored in the expected loss model that will react promptly to changes in the country’s macroeconomic scenario and the financial conditions of our clients. Strategic cost management based on continuous investment in technology, new ways of working, optimization of distribution channels, in addition to structural efficiency projects will continue to Note: The perspectives presented on this slide should bring benefits in the coming quarters. not be taken as a formal projection of financial performance for the year 2020. 86
Additional information 87
Corporate profile Additional information 88
Additional A History Information of Successful Strategic Deals¹ Acquisition of the remaining 50% of: Uruguay Retail-Brazil NACIONAL Acquisition of the Banco Itaú BMG Consignado Casa minority interest of: Moreira Salles Acquisition of a 1924 minority interest in: Unibanco 1995 -1998 2000 -2003 2004 -2007 Merger 2008 2009 -2020 Itaú 1943 Foundation of Banco Itaú Alliance with: BEG Banco del BuenAyre (1) Includes mergers, acquisitions, joint-ventures and partnerships. 89
Capital and risk management Additional information 90
Capital AdditionalInformation Ratios (BIS) | Prudential Conglomerate ¹ In R$ millions, end of period 2Q20 1Q20 Core Capital 108,119 107,668 Tier I (Core Capital + Additional Capital) 126,214 124,980 Referential Equity (Tier I and Tier II) 140,650 139,218 Total Risk-weighted Exposure (RWA) 1,040,622 1,043,517 Credit Risk-weighted Assets (RWACPAD) 922,909 917,107 Operational Risk-weighted Assets (RWAOPAD) 92,476 92,476 Market Risk-weighted Assets (RWAMINT) 25,237 33,934 Core Capital Ratio 10.4% 10.3% Tier I Ratio 12.1% 12.0% BIS (Referential Equity / Total Risk-weighted Exposure) 13.5% 13.3% (1) Includes financial institutions, consortium managers, payment institutions, companies that acquire operations or directlyorindirectly assume credit risk and investment funds in which the conglomerate substantially retains risks and benefits. 91
Additional Ratings Information FitchRatings International National Viability Support Local Currency Foreign Currency Long Term Short Term Long Term Short Term Long Term Short Term bb 4 BB B BB B AAA (bra) F1+ (bra) Moody’s International National Subordinated Debt Senior Unsecured Debt Issuer Issuer Foreign Currency Foreign Currency Local Currency Long Term Long Term Long Term Short Term Long Term Short Term Standard (P) B1 (P) Ba3 Ba3 NP A1. br BR-1 & Poor’s National International Local Currency Foreign Currency Long Term Short Term Long Term Short Term Long Term Short Term BB- B BB- B brAAA brA-1+ 92
Financial Highlights Additional information 93
Additional Results Information 2Q20 In R$ billions 2Q20 2Q19 1Q20 1H20 1H19 Operating revenues 28.0 29.5 -5.0% 29.2 -4.1% 57.2 57.7 -0.8% Managerial financial margin 17.8 18.5 -3.7% 17.8 -0.2% 35.6 36.1 -1.5% Financial margin with clients 16.5 16.9 -2.4% 17.0 -3.4% 33.5 33.3 0.6% Financial margin with the market 1.3 1.6 -16.9% 0.8 72.0% 2.0 2.8 -26.6% Commissions and fees 8.4 9.1 -7.4% 9.5 -11.8% 17.9 17.7 1.3% Revenues from insurance 1.8 2.0 -7.0% 1.9 -2.5% 3.7 3.9 -4.4% Cost of credit (7.8) (4.0) 92.1% (10.1) -23.0% (17.9) (7.8) 127.5% Provision from loan losses (7.6) (4.4) 71.6% (10.4) -27.3% (18.0) (8.6) 108.5% Impairment (0.2) (0.0) 359.4% (0.0) 121.3% (0.3) (0.1) 293.0% Discounts granted (0.8) (0.4) 92.5% (0.3) 182.0% (1.0) (0.7) 45.6% Recovery of loans written off as losses 0.7 0.8 -7.1% 0.7 10.9% 1.4 1.5 -8.6% Retained claims (0.3) (0.3) 8.1% (0.3) -2.5% (0.7) (0.6) 9.1% Other operating expenses (13.8) (14.4) -4.7% (13.8) 0.0% (27.5) (28.3) -2.7% Non-interest expenses (12.1) (12.7) -4.4% (12.1) 0.4% (24.2) (24.8) -2.6% Tax expenses and other (1.6) (1.8) -6.9% (1.7) -3.2% (3.3) (3.4) -3.4% Income before tax and minority interests 6.2 10.7 -42.5% 5.0 22.4% 11.2 21.0 -46.6% Income tax and social contribution (1.9) (3.4) -44.2% (1.0) 95.0% (2.9) (6.6) -56.4% Minority interests in subsidiaries (0.1) (0.3) -77.9% (0.2) -59.5% (0.2) (0.5) -55.2% Recurring net income 4.2 7.0 -40.2% 3.9 7.5% 8.1 13.9 -41.6% 94
Additional Segments Information – Income Statement Pro Forma 2Q20 Retail Banking Wholesale Banking Activities with the Itaú Unibanco Market + Corporation In R$ millions Operating Revenues 17,691 7,790 2,530 28,010 Managerial Financial Margin 10,603 5,123 2,050 17,776 Financial Margin with Clients 10,603 5,123 742 16,468 Financial Margin with the Market — 1,307 1,307 Commissions and Fees 5,448 2,551 397 8,396 Result from Insurance, Pension Plans and Premium Bonds Operations before Retained Claims and Selling Expenses 1,639 116 84 1,839 Cost of Credit (5,018) (2,757) 6 (7,770) Provision for Loan Losses (4,927) (2,640) 6 (7,561) Impairment—(196)—(196) Discounts Granted (669) (81)—(750) Recovery of Loans Written Off as Losses 578 160—738 Retained Claims (320) (1)—(321) Other Operating Expenses (9,575) (3,999) (177) (13,751) Non-interest Expenses (8,387) (3,633) (89) (12,109) Tax Expenses for ISS, PIS, Cofins and Other Taxes (1,178) (366) (88) (1,633) Insurance Selling Expenses (9) (0)—(10) Income before Tax and Minority Interests 2,777 1,033 2,359 6,168 Income Tax and Social Contribution (974) (189) (739) (1,902) Minority Interests in Subsidiaries (28) (19) (14) (61) Recurring Net Income 1,774 825 1,606 4,205 Recurring Return on Average Allocated Capital 15.3% 5.6% 33.3% 13.5% Efficiency Ratio (ER) 51.8% 48.9% 3.6% 46.5% 95
Additional Income Information Statement | Operating Revenues Perspective In R$ millions 2Q20 1Q20 ï„ 2Q19 ï„ Operating Revenues 28,010 29,206 -4.1% 29,492 -5.0% Managerial Financial Margin 17,776 17,805 -0.2% 18,451 -3.7% Financial Margin with Clients 16,468 17,045 -3.4% 16,879 -2.4% Financial Margin with the Market 1,307 760 72.0% 1,572 -16.9% Commissions and Fees 8,396 9,514 -11.8% 9,063 -7.4% Revenues from Insurance¹ 1,839 1,887 -2.5% 1,978 -7.0% Cost of Credit (7,770) (10,087) -23.0% (4,044) 92.1% Provision for Loan Losses (7,561) (10,398) -27.3% (4,407) 71.6% Impairment (196) (89) 121.3% (43) 359.4% Discounts Granted (750) (266) 182.0% (390) 92.5% Recovery of Loans Written Off as Losses738666 10.9% 795 -7.1% Retained Claims (321) (329) -2.5% (297) 8.1% Other Operating Expenses (13,751) (13,752) 0.0% (14,432) -4.7% Non-interest Expenses (12,109) (12,056) 0.4% (12,669) -4.4% Tax Expenses for ISS, PIS, Cofins and Other Taxes (1,633) (1,691) -3.5% (1,758) -7.1% Insurance Selling Expenses(10)(5) 102.1% (6) 71.9% Income before Tax and Minority Interests 6,168 5,038 22.4% 10,718 -42.5% Income Tax and Social Contribution (1,902) (975) 95.0% (3,408) -44.2% Minority Interests in Subsidiaries(61) (151) -59.5% (277) -77.9% Recurring Net Income 4,205 3,912 7.5% 7,034 -40.2% (1) Revenues from Insurance includes the Revenues from Insurance, Pension Plan and Premium Bonds Operations before Retained Claims and Selling Expenses. 96
Additional Information Results – Brazil and Latin America 2Q20 1Q20ï„ï€ Latin America Latin America Latin America Consolidated Brazil ¹ Consolidated Brazil ¹ Consolidated Brazil ¹ (ex-Brazil) (ex-Brazil) (ex-Brazil) In R$ millions Operating Revenues 28,010 24,734 3,276 29,206 26,411 2,795 -4.1% -6.3% 17.2% Financial Margin with Clients 16,468 14,553 1,915 17,045 15,340 1,705 -3.4% -5.1% 12.3% Financial Margin with the Market 1,307 667 640 760 387 373 72.0% 72.4% 71.5% Commissions and Fees 8,396 7,675 721 9,514 8,797 717 -11.8% -12.8% 0.6% Revenues from Insurance 2 1,839 1,839—1,887 1,887—-2.5% -2.5%—Cost of Credit (7,770) (7,061) (708) (10,087) (9,357) (730) -23.0% -24.5% -2.9% Provision for Loan Losses (7,561) (6,766) (795) (10,398) (9,590) (808) -27.3% -29.4% -1.5% Impairment (196) (196)—(89) (89)—121.3% 121.3% -Discounts Granted (750) (747) (3) (266) (261) (5) 182.0% 186.1% -35.3% Recovery of Loans Written Off as Losses 738 648 90 666 583 83 10.9% 11.2% 8.5% Retained Claims (321) (321)—(329) (329)—-2.5% -2.5% Non-interest Expenses (12,109) (10,241) (1,868) (12,056) (10,438) (1,618) 0.4% -1.9% 15.5% Tax Expenses and Other 3 (1,642) (1,565) (77) (1,696) (1,755) 59 -3.2% -10.8% -230.5% Income before Tax and Minority Interests 6,168 5,546 622 5,038 4,531 507 22.4% 22.4% 22.8% Income Tax and Social Contribution (1,902) (1,715) (186) (975) (844) (132) 95.0% 103.3% 41.7% Minority Interests in Subsidiaries (61) (42) (19) (151) (62) (89) -59.5% -31.4% -79.0% Recurring Net Income 4,205 3,788 417 3,912 3,626 286 7.5% 4.5% 45.9% (1) Includes units abroad ex-Latin America. (2) Result from Insurance includes the Result from Insurance, Pension Plan and Premium Bonds Operations before Retained Claims and Selling Expenses. (3) Include Tax Expenses (ISS, PIS, COFINS and other) and Insurance Selling Expenses. Note: Latin America information is presented in nominal currency. 97
Additional Information Business Model The allocation of principal capital (Common Equity Tier 1) in the bank’s business is made at 12%, according to our risk appetite. In the first half of 2020, we ended with R $ 36.2 billion of capital above the minimum (8% in 1Q20 and 6.75% in 2Q20 of CET1), determined by the Central Bank of Brazil. 1st Half of 2020 1st Half of 2019 Ä Insurance Excess Insurance Excess Insurance Excess Consolidated Credit Trading Consolidated Credit Trading Consolidated Credit Trading & services capital & services capital & services capital Operating Revenues 57.2 31.9 0.6 24.7 0.1 57.7 30.4 0.9 25.7 0.8 (0.5) 1.4 (0.3) (1.0) (0.6) Managerial Financial Margin 35.6 26.2 0.6 8.7 0.1 36.1 24.4 0.9 10.1 0.8 (0.5) 1.8 (0.3) (1.4) (0.6) Commissions and Fees 17.9 5.6 0.0 12.3—17.7 6.0 0.0 11.7—0.2 (0.4) (0.0) 0.6 -Revenues from Insurance ¹ 3.7 — 3.7—3.9 — 3.9—(0.2) — (0.2)—Cost of Credit (17.9) (17.9) ——(7.8) (7.8) ——(10.0) (10.0) — -Retained Claims (0.7) — (0.7)—(0.6) — (0.6)—(0.1) — (0.1) -Non-Interested Expenses and (27.7) (13.8) (0.2) (13.8) 0.0 (28.7) (14.2) (0.4) (14.1) (0.0) 1.0 0.5 0.2 0.3 0.1 Other Expenses ² Recurring Net Income 8.1 1.0 0.2 7.0 (0.0) 13.9 5.8 0.3 7.2 0.6 (5.8) (4.8) (0.1) (0.2) (0.7) Average Regulatory Capital 126.8 75.9 1.4 50.6 (1.1) 123.9 62.6 1.4 39.8 20.0 2.9 13.3 (0.0) 10.8 (21.1) Value Creation 0.4 (3.5) 0.3 3.6 0.0 6.1 1.8 0.2 4.7 (0.6) (5.6) (5.3) 0.1 (1.1) 0.7 Recurring ROE 13.1% 2.5% 27.3% 27.6% 4.7% 23.6% 18.5% 40.6% 36.1% 6.3% -10.5 p.p. -16.0 p.p. -13.4 p.p. -8.5 p.p. -1.6 p.p. (1) Revenues from Insurance includes the Revenues from Insurance, Pension Plan and Premium Bonds Operations before Retained Claims and Selling Expenses. (2) Include Tax Expenses (ISS, PIS, COFINS and other), Insurance Selling Expenses and Minority Interests in Subsidiaries 98
Additional Credit Information Portfolio by Product In R$ billions, end of period 2Q20 1Q20ï„ï€ ï€ ï€ 2Q19ï„ï€ ï€ ï€ Individuals—Brazil 1 228.0 237.0 -3.8% 221.5 2.9% Credit Card 72.9 83.8 -13.1% 79.3 -8.1% Personal Loans 36.4 36.2 0.6% 31.9 14.2% Payroll Loans 2 50.4 50.3 0.2% 49.1 2.6% Vehicles 19.5 19.4 0.3% 17.2 13.2% Mortgage Loans 48.8 47.2 3.5% 44.0 11.0% Rural Loans0.10.1 -18.5% 0.1 -32.1% Companies—Brazil 1 228.7 221.2 3.4% 177.0 29.2% Working Capital 3 131.4 120.6 9.0% 96.3 36.5% BNDES/Onlending9.79.8 -0.5% 13.6 -28.8% Export / Import Financing 63.2 67.3 -6.1% 44.9 40.6% Vehicles 10.1 9.9 1.3% 6.0 66.3% Mortgage Loans 5.04.6 9.2% 5.3 -5.7% Rural Loans9.49.1 2.6% 10.9 -13.9% Latin America 4 200.8 181.5 10.6% 154.3 30.1% Total without Financial Guarantees Provided 657.5 639.7 2.8% 552.9 18.9% Financial Guarantees Provided 70.0 70.3 -0.4% 64.7 8.2% Total with Financial Guarantees Provided 727.5 710.0 2.5% 617.6 17.8% Corporate Securities 5 83.9 78.3 7.1% 56.9 47.3% Total Risk 811.3 788.3 2.9% 674.5 20.3% (1) Includes units abroad ex-Latin America; (2) Includes operations originated by the institution and acquired operations; (3) Also includes Overdraft, Receivables, Hot Money, Leasing, and other; (4) Includes Argentina, Chile, Colombia, Panama, Paraguayand Uruguay; (5) Includes Debentures, CRI and Commercial Paper . 99
Credit AdditionalInformation Portfolio by Currency ¹ R$ billion Jun-20 300.4 427.0 727.5 Mar-20 284.8 425.2 710.0 Dec-19 232.8 417.0 649.7 Sep-19 240.0 401.7 641.7 Jun-19 228.3 389.3 617.6 Mar-19 224.5 384.5 609.0 Dec-18 219.5 379.1 598.6 Sep-18 233.4 366.7 600.1 Jun-18 223.5 365.1 588.6 Foreign Currency Local Currency (1) Total with financial guarantees provided. 100
Additional Credit¹ Information Origination | Brazil Base 100 = 2Q17 Total Credit2 – Brazil Credit2—Individuals 23% 2% 7% 179 -7% 167 145 155 142 145 114 124 100 100 2Q17 2Q18 2Q19 1Q20 2Q20 2Q17 2Q18 2Q19 1Q20 2Q20 Credit2 – Very Small, Small and Middle Credit2 – Corporate Market 5% 50% -1% 19% 207 161 170 168 173 114 138 100 100 107 2Q17 2Q18 2Q19 1Q20 2Q20 2Q17 2Q18 2Q19 1Q20 2Q20 Note: Do not consider origination of Credit Card, Overdraft, Debt Renegotiation and other revolving credits. (1) Average origination per working day in the period, except for private securities issuance. (2) Does not include private securities issuance. (3) Source: ANBIMA (Brazilian Financial and Capital Markets Association) . Considers total volume of fixed income and hybrid private securities issuance arranged by Itaú Unibanco on the local market (includes distributed volumes) . 101
Additional Credit Information Portfolio Breakdown Companies Credit Portfolio by Business Sector¹ ,² Credit Concentration ¹ R$ billion In R$ billions, end of period 2Q20 1Q20ï„ Jun-20 Loan, lease and other Loan, lease, other credit operations Public Sector 5.6 5.0 12.4% credit operations and securities of companies and Private Sector 416.1 396.4 5.0% financial institutions Real Estate 29.5 25.9 13.9% Transportation 25.0 23.8 5.2% Food and beverage 24.2 23.3 3.9% Risk % of Total Risk % of Total Agribusiness and fertilizers 22.7 22.8 -0.4% Largest Debtor 7.5 1.0 11.1 1.2 Vehicles and auto parts 20.1 19.1 5.2% 10 largest debtors 36.0 4.9 66.3 7.4 Banks and other financial 18.2 16.4 11.1% 20 largest debtors 52.6 7.2 100.7 11.2 Energy and water treatment 17.3 16.7 3.5% 50 largest debtors 83.0 11.4 161.2 17.9 Petrochemical and chemical 14.7 14.0 4.8% 100 largest debtors 114.5 15.7 212.6 23.6 Infrastructure work 12.7 11.9 6.2% Steel and metallurgy 12.0 11.5 4.6% Mining 11.4 10.1 12.8% 4% 1% Pharmaceutical and cosmetics 10.2 9.6 5.9% Telecommunications 10.1 9.6 5.3% 5% Oil and gas 9.2 9.2 0.4% 11% 8.7 8.3 5.5% 38% Electronic and IT Entertainment and tourism 7.1 6.6 7.8% 12% Construction Material 6.5 7.5 -13.5% Capital Assets 6.3 7.6 -16.6% 12% Footwear and clothing 6.1 5.6 8.9% 17% Services—Other 52.4 49.5 5.7% Commerce—Other 28.0 25.6 9.2% Other Industry and Extractivism Industry—Other 12.9 12.7 1.5% Real Estate and Construction Consumer Goods 50.8 49.1 3.6% Vehicles and Transportation Agriculture and Related Total Other 421.7 401.3 5.1% Banks and other financial institutions Public Sector (1) Includes financial guarantees provided; (2) Industry and Extractivism = Mining (+) Steel and Metallurgy (+) Capital Assets (+) Petrochemical and Chemical (+) Energy and sewage (+) Oil and gas. Consumer Goods = Food and beverage (+) Pharmaceuticals and cosmetics (+) Electronic and IT. Vehicles and Transportation = Transportation (+) Vehicles and autoparts. Real Estate and Construction = Real estate agents (+) Construction material (+) Infrastructure work. Agriculture and Related = Agribusiness and fertilizers (+) Sugar and alcohol. Other = Telecommunications (+) Commerce –Other (+) Services –Other (+) Industry –Other (+) Entertainment and Tourism (+) Other. 102
Additional Credit Information Portfolio by Vintage¹ Profile of credit portfolio by origination period: R$ billion • Older vintages with higher spreads are losing relevance compared to the most recent ones. • 62.1% of total origination was created in the past 12 months. 553 640 657 34.8% 33.8% 33.1% 5.1% 3.8% 4.7% 6.4% 7.3% 6.5% 8.0% 8.3% 8.6% 10.0% 12.0% 11.7% 35.7% 34.8% 35.3% 2Q19 1Q20 2Q20 Actual Quarter (q) q-1 q-2 q-3 q-4 q=<-5 (1) Does not include financial guarantees provided. 103
LoanAdditionalInformation Portfolio Mix Change ¹ (%) R$ billion Consolidated jun/20 3. 0 19.3 15.5 11.1 5.5 7.4 7.7 30.5 jun/20 27.8 22.3 4.3 16.0 8.0 10.7 11.0 jun/19 24.6 19.8 4.3 19.9 8.0 11.0 12.3 Brazil 2 jun/18 28.3 18.4 4.0 18.2 7.5 11.1 12.5 jun/17 32.7 16.3 4.0 16.1 7.2 10.9 12.8 jun/16 34.0 16.3 4.6 14.9 7.7 9.9 12.7 Corporate Very Small, Small and Middle Market Vehicles Credit Card Personal Loans Latin America 3 Mortgage Loans Payroll Loans (1) Does not include financial guarantees provided; (2) Includes units abroad ex-Latin America; (3) Excludes Brazil. 104
Additional Renegotiated Information Loans Operations 2Q20 25.2 25.7 25.2 25.4 24.7 26.0 25.7 28.9 32.6 Portfolio in Brazil 35.7 31.7 3.2 Latin America 27.5 27.9 27.6 28.4 28.1 1.6 27.3 26.9 2.7 2.5 1.7 Written-off as a Loss 2.3 2.2 2.1 2.3 2.3 2.4 9.8 1.8 1.8 1.8 1.8 1.3 2.0 2.0 7.9 Over 90 days overdue 8.5 8.7 8.2 8.0 7.3 7.6 7.3 7.6 31-90 days overdue 6.1 5.1 4.8 4.9 4.9 5.2 5.5 1.3 1.0 Up to 30 days overdue 5.2 1.3 1.4 1.4 1.4 1.3 1.3 1.2 Non-overdue 9.9 11.9 12.5 8.5 8.8 9.0 9.2 9.8 9.6 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 105
Additional Provision Information for Loan Losses and Cost of Credit Provision for Loan Losses by Segment R$ million 6.8% 5.0% 5.0% 4.7% 4.7% 4.5% 4.1% 4.2% 3.6% 3.7% 3.3% 3.4% 3.5% 10,398 3.0% 2.9% 3.1% 3.2% 6,337 808 6,169 5,823 7,561 5,392 4,948 4,282 4,483 4,111 4,271 6,145 2,441 396 412 4,407 4,922 795 757 432 3,904 3,796 4,206 598 701 554 621 1,252 1,546 1,825 514 638 7,149 1,070 1,410 619 489 568 1,845 532 248 393 168 514 423 412 4,395 3,932 3,996 4,021 4,210 4,461 3,550 3,732 3,236 3,534 3,482 3,688 3,726 4,922 3,165 4,481 -298 -354 -304 -371 -177 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Retail Banking—Brazil Wholesale Banking—Brazil Latin America ex-Brazil Provision for Loan Losses / Loan Portfolio (*)—Annualized (*) Average balance of the loan portfolio, considering the last two quarters. Cost of Credit (Provision for Loan Losses + Recovery of Loans Written Off as Losses + Impairment + Discounts Granted) RR$ million 5.3% 4.1% 4.2% 3.7% 3.9% 3.6% 3.0% 3.3% 2.7% 2.9% 2.5% 2.4% 2.4% 2.6% 2.1% 2.1% 2.3% 10,087 7,770 6,335 5,582 6,352 5,811 5,281 4,474 4,495 3,990 4,257 3,788 3,601 3,415 3,804 4,044 3,263 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Cost of Credit Cost of Credit / Total Risk (*)—Annualized (*) Average balance of the loan portfolio with financial guarantees provided and corporate securities, considering the last two quarters. Note: Includes the consolidation of Citibank as of 4Q17. 106
Additional Allowance Information for Loan Losses by Risk – Consolidated R$ million Allocation of Total Allowance by Type of Risk -Consolidated Jun-20 12,135 11,383 25,749 49,267 Mar-20 12,978 11,471 22,634 47,083 Jun-19 10,666 9,514 12,910 33,091 Overdue operations according to the Potential Loss Brazilian Central Bank Renegotiations and overdue loans Provision < 100% Renegotiations 25,749 1,136 22,634 739 323 6,544 2,613 84% 5,222 12,978 12,135 33% 5,761 10,666 2,996 11,471 11,383 1,915 1,665 12,910 7,398 790 9,514 1,611 1,571 5,962 1,212 754 1,168 Fully Provisioned 1,241 2,388 3,588 2,820 Overdue 3,457 926 3,254 10,272 9,717 435 11,450 11,806 8,286 431 6,992 6,273 7,065 67% 5,019 16% 208 1,232 6,721 Jun-19 Mar-20 Jun-20 Jun-19 Mar-20 Jun-20 Jun-19 Mar-20 Jun-20 1 Includes unitsabroadex-Latin America. ² Excludes Brazil. Retail-Brazil1 Wholesale -Brazil1 Latin America 2 107
Additional Non Information Performing Loans Ratios 90-day NPL Ratio| Consolidated (%) 15 to 90-day NPL Ratio | Consolidated -% 4.5 4.2 3.9 3.3 3.7 3.7 3.6 3.5 3.5 3.2 2.9 3.1 3.4 3.4 3.4 3.2 2.8 3.0 2.7 2.7 2.7 2.6 2.4 2.5 2.5 3.6 2.3 3.4 3.2 1.9 3.2 3.1 3.1 2.8 3.0 2.9 2.9 3.0 2.6 2.5 2.8 2.7 2.5 2.5 2.6 2.7 2.3 2.4 2.3 2.1 2.4 2.4 1.6 1.9 2.0 2.2 1.7 1.5 1.4 1.4 1.4 1.4 1.7 1.3 1.2 1.1 Jun-16 Mar-17 Jun-17 Mar-18 Jun-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-16 Mar-17 Jun-17 Mar-18 Jun-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Total Brazil ¹ Latin America ² Total Brazil ¹ Latin America ² 90-day NPL Ratio | Brazil ¹ (%) 15 to 90-day NPL Ratio | Brazil ¹ -% 5.9 5.3 5.1 5.0 4.9 4.7 4.8 5.3 4.6 4.5 4.4 4.5 4.2 5.6 4.0 5.2 3.7 3.5 3.5 3.5 3.4 3.4 3.2 3.1 4.1 2.7 4.0 2.4 3.5 2.4 3.6 2.3 2.3 2.3 2.3 2.2 2.0 1.7 1.9 2.7 1.6 1.4 1.6 2.7 2.4 1.0 2.1 1.7 1.8 1.8 1.6 1.6 1.2 1.1 1.0 1.2 1.0 1.4 0.7 0.8 0.9 0.7 0.7 0.9 0.7 0.5 Jun-16 Mar-17 Jun-17 Mar-18 Jun-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-16 Mar-17 Jun-17 Mar-18 Jun-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Individuals Corporate Very Small, Small and Middle Market Companies Individuals Corporate Very Small, Small and Middle Market Companies Note: Total and Latin America 15 to 90-day NPL Ratios prior to June 2016 do not include CorpBanca. (1) Includes units abroad ex-Latin America. (2) Excludes Brazil. 108
Additional NPL Creation Information R$ billion 7.3 5.3 5.0 5.1 5.0 4.4 4.7 3.8 4.9 4.4 3.3 4.3 3.9 3.5 3.5 3.5 3.6 3.2 1.2 1.2 1.0 1.1 0.5 0.7 0.9 0.4 0.1 1.1 0.3 -0.5 0.4 0.3 0.4 0.4 -0.2 -0.3 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Total Retail Banking—Brazil Whosale Banking—Brazil Latin America ex-Brazil 109
Additional Provision Information for Loan Losses and NPL Creation by Segment Retail Banking -Brazil 153% R$ billion 145% 100% 104% 108% 113% 108% 104% 102% 7.1 3.5 3.5 3.7 3.5 3.7 3.5 4.0 3.6 4.2 3.9 4.5 4.3 4.5 4.4 4.9 4.9 3.2 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Wholesale Banking -Brazil R$ billion 215% -66% -29% -53% -26% -87% -119% -89% 2.4 1.1 1.8 0.2 1.0 0.7 1.2 0.4 -0.2 0.4 0.1 -0.3 -0.3 -0.4 -0.3 -0.4 -0.2 -0.5 -982% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Latin America ex–Brazil R$ billion 316% 114% 130% 133% 136% 138% 75% 115% 66% 0.6 0.5 0.5 0.4 0.4 0.3 0.5 0.4 0.6 0.4 0.6 0.9 1.3 1.1 0.8 1.2 0.8 0.3 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Total 230% R$ billion 143% 113% 85% 83% 93% 93% 122% 79% 4.3 3.8 3.9 5.0 3.8 4.4 4.2 5.1 4.4 4.7 4.9 5.3 6.1 5.0 10.4 7.3 7.6 3.3 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Provision for Loan Losses NPL Creation Provision for Loan Losses / NPL Creation 110
Additional Insurance, Information Pension Plan and Premium Bonds In R$ millions 2Q20 1Q20ï„ï€ ï€ 2Q19ï„ï€ ï€ Earned Premiums 1,046 1,082 -3.4% 1,075 -2.7% Revenues from Pension Plan 50 64 -22.0% 117 -57.3% Revenues from Premium Bonds 61 107 -42.8% 107 -42.7% Managerial Financial Margin 25 (34)- (0)- Commissions and Fees 495 549 -9.8% 515 -3.8% Earnings of Affiliates 161 117 37.4% 164 -1.6% Revenues from Insurance, Pension Plan and Premium Bonds 1,839 1,887 -2.5% 1,978 -7.0% Retained Claims (321) (329) -2.5% (297) 8.1% Insurance Selling Expenses (10) (5) 102.1% (6) 71.9% Result from Insurance, Pension Plan and Premium Bonds 1,508 1,553 -2.9% 1,675 -10.0% Recurring Net Income 652 612 6.7% 680 -4.1% Result from Insurance, Pension Plan and Premium Bonds R$ million 1,675 1,706 1,645 1,590 1,607 1,521 1,575 1,553 1,508 5.9% 5.6% 5.8% 5.7% 5.5% 5.4% 5.4% 5.4% 5.3% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Result from Insurance, Pension Plan and Premium Bonds Operations Result/Operating Revenues 1 (1) Operating Revenues including the Result from Insurance, Pension Plan and Premium Bonds Operations net of retained claims and selling expenses. 111
Additional Balance Information Sheet – Assets and Liabilities Assets 2Q20 1Q20ï„ 2Q19ï„ R$ million Current and Long-term Assets 2,039,147 1,944,899 4.8% 1,644,067 24.0% Cash and Cash Equivalents 85,428 71,881 18.8% 59,313 44.0% Short-term Interbank Investments 316,297 282,565 11.9% 258,710 22.3% Securities and Derivative Financial Instruments 645,988 605,985 6.6% 473,608 36.4% Interbank and Interbranch Accounts 127,087 107,734 18.0% 134,741 -5.7% Loan, Lease and Other Loan Operations 657,478 639,699 2.8% 552,909 18.9% (Allowance for Loan Losses) (48,286) (46,240) 4.4% (31,952) 51.1% Other Assets 255,155 283,276 -9.9% 196,738 29.7% Permanent Assets 35,975 37,599 -4.3% 34,312 4.8% Total Assets 2,075,122 1,982,498 4.7% 1,678,378 23.6% Liabilities 2Q20 1Q20ï„ 2Q19ï„ Current and Long-Term Liabilities 1,934,181 1,843,947 4.9% 1,537,520 25.8% Deposits 727,196 606,750 19.9% 463,259 57.0% Deposits Received under Securities Repurchase Agreements 316,954 313,540 1.1% 316,543 0.1% Fund from Acceptances and Issue of Securities 145,140 154,146 -5.8% 125,336 15.8% Interbank and Interbranch Accounts 51,945 52,074 -0.2% 55,243 -6.0% Borrowings and Onlendings 95,184 94,909 0.3% 72,788 30.8% Derivative Financial Instruments 89,137 87,909 1.4% 35,655 150.0% Technical Provisions for Insurance, Pension Plans and Premium Bonds 218,386 214,565 1.8% 211,905 3.1% Other Liabilities 290,238 320,054 -9.3% 256,790 13.0% Deferred Income 3,123 3,286 -5.0% 2,606 19.9% Minority Interest in Subsidiaries 11,461 11,641 -1.5% 12,515 -8.4% Stockholders’ Equity 126,357 123,624 2.2% 125,737 0.5% Total Liabilities and Equity 2,075,122 1,982,498 4.7% 1,678,378 23.6% 112
Additional Funding Information • Loan Portfolio mainly funded by domestic client funding • Diversified funding base In R$ millions, end of period 2Q20 1Q20ï„ 2Q19ï„ Funding from Clients (A) 806,755 700,779 15.1% 550,691 46.5% Demand Deposits 118,787 101,711 16.8% 73,352 61.9% Savings Deposits 163,755 149,600 9.5% 137,568 19.0% Time Deposits 439,797 350,704 25.4% 250,521 75.6% Debentures (Linked to Repurchase Agreements and Third Parties’ Operations) 3,392 4,166 -18.6% 10,426 -67.5% (1) 81,024 94,598 -14.3% 78,824 2.8% Funds from Bills and Structured Operations Certificates Other Funding (B) 202,827 199,400 1.7% 148,763 36.3% Onlending 11,694 10,648 9.8% 14,615 -20.0% Borrowings 83,490 84,261 -0.9% 58,174 43.5% Securities Obligations Abroad 64,116 59,548 7.7% 46,513 37.8% Other(2) 43,526 44,943 -3.2% 29,463 47.7% Portfolio Managed and Investment Funds(3) (C) 1,331,135 1,302,887 2.2% 1,200,283 10.9% Total (A) + (B) + (C) 2,340,717 2,203,065 6.2% 1,899,738 23.2% (1) Includes funds from Real Estate, Mortgage, Financial, Credit and Similar Notes. (2) Includes installments of subordinated debt that are not included in the Tier II Referential Equity. (3) Includes Certificates of Banks Deposits (CDB), Certificates of Agribusiness Receivables (CRA), Certificates of Real Estate Receivables (CRI), Debentures, Agricultural Credit Bonds (LCA) and Real EstateCredit Bonds (LCI). 113
Funding Additional Information Ratio between Loan Portfolio and Funding % Funding (Maturity Breakdown) In days 96.0% 96.9% 93.3% 91.9% 81.2% 75.6% 78.6% 79.0% 78.2% 76.7% 71.1% 65.1% R$ billion 181-365 Over to365 1,010 31-180 11.3% 900 870 788 8.4% 737 760 36.0% 691 699 657 618 635 640 566 544 571 553 576 583 44.3% 0-30 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Portfolio / Funding fromclientsandother funding Portfolio / Funding fromclientsandother funding net of reserve andcash Loan portfolio Loan portfolio Funding fromclientsandother funding Funding fromclientsandother funding net of reserve required byBACEN andCash 114
2Q20 Institutional Presentation Itaú Unibanco Holding S.A. ITUB LISTED CDP LEVEL 1 NYSE BM&FBOVESPA