Docoh
Loading...

ITUB Itau Unibanco Holding

Participants
Candido Bracher President and Chief Executive Officer
Jorge Kuri Morgan Stanley
Thiago Batista Banco UBS
Geoffrey Elliott Autonomous
Carlos Gomez HSBC
Tito Labarta Goldman Sachs
Natalia Corfield JP Morgan
Henrique Navarro Santander
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good morning ladies and gentlemen welcome to Itaú Unibanco Holding Conference Call to discuss 2020 Third Quarter results. At this time all participants are in a listen-only mode. Latter we will conduct a question-and-answer session. [Operator Instructions] As a reminder this conference is being recorded and broadcasted live on the Investor Relations website at www.itau.com.br/investor-relations. A slide presentation is also available on this site.

mention harbor statements Reform of XXXX. me under being Act let safe the the proceeding, that are forward-looking made of Before Securities Litigation performance risks and in factors. that a Actual of other materially comments result market forward-looking as anticipated conditions, macroeconomic differ could any from today us Mr. conference Sao Paulo call With in this are in CEO; and President Bracher, Candido Mr. Alexsandro Head and Relations of Executive Market Director; Renato and Finance Group Investor Broedel, Lulia Group Jacob, Intelligence.

a will question-and-answer comment on It XXXX quarter be Candido available pleasure Mr. management for Candido Bracher. my call Bracher will now First, the over session. Mr. results. is third turn Afterwards, to to

Candido Bracher

is signs which Thank our GDP see I for a of recovery as close in attending strong hope financial to comment can as index, performance, period, Itaú Good we economic in before macroeconomic This pre-crisis the On Itaú's call. well everyone. all to already very and both earnings pandemic, safe. well contraction I'd the we After and to economic activity of like quarter you. quarter. And for the the faced the this you're reflected activity Slide period in on morning, is encouraging due into XXXX Brazil. scenario get thanks levels. expectation X our third we

However, for graph. to the brought the scenario fiscal this situation, debt you end, the government, recovery as opportunities public the to was and the by made GDP Brazil's deteriorated bank. possible see this which provided important increased stimulus largely due spending in turn In can recovery in

uses opportunities. this the grow continued us the in drive and for for structure more XX our capital condition the rate level our population and pandemic context, history, way brought to with to investors from activity low on environment in the demand conjunction continued ECM has for a increased to Over led Brazil In interest the in investment transactions by products. to year. the individual reached in financing interest the seek this to advice healthy past clients This the profitable the transportation to due demand lowest changes new quarter, which created car the markets its

important the is third market structure, due over which that of period recovery fees products an deploy wider enabled but home deposits. of through risk. and ended well to launched income interest lowest in process, to of XXXX savings ThisXX% show our at Last billion, which real mortgage and revenues. options equity, ALM subsidies just Slide clients by credit was SMEs a the in dispersed the with important XX.X%. of of recurring XX.X% with as of the ROE net range net in also new described, rates BRLX so for estate based this which led I our quarter least, has here BRLXX a aimed cost reduction the the funding clients only of translated sponsored we view of guaranteed as our This not We launch the growth an our which financing with loan was to government. without by scenario our us possible interest the just into rates currently billion largely increasing the in X, bank we income on

product in higher the expense. and interest by offset partially were non-operating effects negative mix income of net on these seasonally our impact However, the change

the further detail X.X%, loan we'll in discuss the portfolio the next billion, with period balance Finally, grew ending in slide. BRLXXX of a which by

this page. we to Moving the things to Slide portfolio. X, evolution of highlight three the like showed client I'd in

this portfolio the largely growth, at facilities sector. our guaranteed by government SMEs sponsored XX% the was growth to this the is and loan aimed in due participation First book loan in

they could that Our current only customers credit used but the extensive to better these effect more lines. of crisis, replace the navigate so also not lines

we an credit mortgage the an cards and balance the a credit non-interest-bearing credit individual's occurred in contraction in important vehicle important driven in cards, loan financing. that by portfolio, portfolio important to recovery highlight whereas growth observed still the revolving Secondly, It showed quarter-on-quarter. is

Lastly, loans stable. bottom the on additional there in But was the in personal an slide. relatively corner mix see the as you chart of relevant of products remained the change can right

X, SMEs credit of the less grade billion related more previously, principle the due change Slide negative in BRLX.X BRLX.X of in to behavior give also movement bulk calendar and the As is the mix an levels, happened But mix gear clients also in the It we order mix do importantly, the mentioned protect credit BRLX.X impacts, of not on is as we sustainable portfolio the in the to change active the between by believe we retail. These loans. had in individuals this portfolio our in earnings the point average call offset see was segments, number consumption next the to finally, impact continued the towards our in remuneration quarter and change consider on the Therefore reflects a financial but in in mention and as soon a effects higher the as management this and the which as were we higher the to lowest this X, more negative on margin billion days. credit reprofiled slide mentioned very Naturally, Slide negatively X, temporarily of see to two the of partially previous you'll is working change on only important higher in you'll And slide. products. off and we to capital. as mix a the impact drop margin additional on risk good billion outstanding. the the by approach we the generated part customers impact on previous trade previous Slide the that explained a dynamics change wholesale, quarter. average volume this that the

into X, this Slide when of macroeconomic growth with this we originally eventually we Before you led we XX more higher expired. reprofiled I which finished marginally is update that days. delinquent place. XX September would positive points the billion. move of of like the XX loans to end [indiscernible]. the BRLXX had quarter of us quarter. BRLXX.X days of directly percentage lower to This acceleration than demand portfolio his By better The credit, second puts already between grace six than and periods show how On to performance that cost one is on environment, X.X% billion, behaved portfolio XX% the the of in of where and than delinquent third for the that this for and quarter, Out were points forecasted the better linked

Slide of the present to provision X, Moving expected model loss of we and evolution cost credit.

provisions I'd for or level is above once by demonstrate strictly loan have call aggravated is overdue The next getting is again where the by way a the we the rules The credits the minimum to provisions numbers, the required to when Before for into provision are this regulator. provision overdue. defined rating. related overdue layer of operations the amount These renegotiated minimum regulator, the the what we like explain we on chart. actual follow the defined

are delinquent emergency we the the of delinquency are reduced the due still are Even were we sailing contains nor made next aid, though of nor expected government in recovery to we from we a payment fact was the holidays Finally, granted to by uncharted dramatically potential be just clients the behavior mentioned renegotiated. the that in due seeing quarter accelerating believe are year. Where which waters. the losses, the is we've holidays to regulated supported provisions which payment their for have that I largely good economy not loans, that credits that

long-term we we the together reinforces coverage and for provisions. in the commitment we've fact, with this balance, to approximately The led Given our a potential losses, management XX management medium by and maintain increased ever provisions levels sustainability of XXX% prudent had. months, results. continue NPL our over which first in quarter, to decided the this the of Therefore the our to to provisions of our drop highest build

of trend our the and improvement in show This the credit financial actions to time although row. we've is above macroeconomic crisis, still continues normal positive second it cost undertaken further in the the quarter, all in levels, and this Lastly, reflects more. XX.X% a into contracting of the feed since the the which expected beginning the losses conditions

prices the negotiations show believe Now the not the on and the intensity the Slide reflect due the this days terms flexible of extent loan full two contract. properly quarters, portfolio do in of continue crisis offering repayment individuals the proactive of to ratios NPL more we X, XX of last of We numbers that to yet.

in debit though, note the ratio Slide economic acquiring there good and banking less activity expected, advisory opportunities in XX generated this We volumes, the a in low also benefited finished to in environment financial positive The the was revenues the the continues the due can [ph]. perform in all more as higher with that coupled quarter with In to We period, led XX in performed delinquency volumes in revenues credit the operation. performance Brazilian increase transaction loans. better and margin started will fees their higher in increase as than quarter XX.X% customers impacts historical this naturally gains XX% seen of recovery portfolio of brokerage activity issuing that card for the line individuals The fees, the credit quarter in margin market. the both saw The operation as collection as You fees. contrast short-term now, higher to services XX, an and and with a The was the interest our to financial in services. real see performance better previous investment quarter. levels. as to led the repay Slide mainly activities. the and fees to we rate stark BPS service economy well

ended mentioned platform, to last operations, custody. to last quarter, highlight growth ESG investment of quarter continue shy are BRLXXX business. achieved would assets but the which our not custody, aspects like a was the just Lastly, under under as we into well how finished that XX, XX.X% through Slide XX This integrated months. the open I'd we I through BRLX.X September trillion core performance billion with ESG, in traditional that only highlight over

model. we XXXX, And was going our it quarter initiatives Itaú tradition operation. the has in over Moreover, investment than invest evaluate pioneer our investees we light client's shareholders through rights a under in in of our operation. more Today, ESG resources. has best direct its assets exercising long a promote and where by by to management our with valuation asset It adoption we company's management investment. our vote the responsible metrics banking asset covered engagement metrics to management since are practices to of to more as for sustainability some the ESG principles are our adhering the meetings. in ESG of XX% incorporated This shed integrating and

to several have this. we investment Additionally, products dedicated

One a results. in It fund products MomentoESG direct launched this long-term moment active with of year an greatest that and ESG managed stocks between or translation. XX September for such XX is the is potential selects

Lastly, in a decrease international operation which year of ESG at can we period, non-interest the markets. element year, banking the fell the for with BBA decrease Itaú expenses, discuss Brazilian in If X.X% in Slide investment Brazil consolidated performance. companies impressive slide. a are the the and we X.X% period this We'll our previous adjusted in compare in quarter expenses observe of same Brazil. in X.X% now, XX, the terms XX% the issuance can with an of in by as inflation, expenses of non-interest When structured expenses. important advised in our seen this chart we of bottom be our real another of

One reasons investment due efficient we to became our of is in more technology. consistent the

slide, heavily on As hours of left increasing is our continue this invest you developing can capacity this almost see and we XX% an side to the the year. by where area

trends. XX, Moving present digitalization Slide on our to we clients

end clients to grow. see that naturally in upper we higher And and We the measures positive. distancing crisis almost quarantine utilization digital experiences primarily banking this quarter highest believe systems channels to services demand channels stress customers on were show of indicates. pleased our in reached levels the of strongly even the were digital forced know, our our infrastructure. led throughout social we customers the our of and observe the second our their channels. interactions into of number availability to historical that and you of of our had in And quarter becomes corner chart despite was As digital digital or migrate many place channels level and continues scenario, the greater use evident this the despite In the all this digital that of their when the that we left our very the same that

of in decrease that accounts new opened online quarter. this a Additionally, we the flow noticed small showed

However, support this XXXX. as the no the fuller call. remains that the given perspectives was new are and digital for should quarter keeping points service namely, in double XXXX in last be of is XX, way regulatory on trend showcases fourth Slide by capital basis they the Slide as in disclose guidance XX, year revenues. XX.X% client, it improved price growths appropriate our insurance to basis this bank. liquidity, the financial and volume still the capital makes scenario, and we next the ongoing defining conference practically interact guidance, an be earnings then by expanding additional in On more appeared of observed a loan month, will sense compensated reduction our that described guidance the rate despite show for in under it XX with margin and positive the we capital quarter average a November, will portfolio, ratio. Milton already of Also our the XXXX what X with levels clients becoming we here Tier Nevertheless, year

an of emphasis expect reduction gains. efficiency credit, keep we'll in We the cost in a and progressive

Finally, XX, material of comment in the recent we'll on XP. other effect Slide on stake

know, all up acquisition put end the colon you set series of original As whereby could we the plan a eventually options company. controlling

not the ended stake. was a Bank, approved and design Central we by with minority this Brazilian However, up non-controlling

we do the financial a than to shareholders, that give new for this, be Itaú important such to became decide what it a As fully from able firm. achieve asset. as concluded asset it two careful by a of rather Therefore, our and in this the the doing priced evaluation, seeing after transfer and in By to want company them. our investment our off owned be strategical ability analysis, investment result, would interest a would a this shareholders is equally unlock value not thorough investment we this they to is objectives, and best

start we to the share of presentation, an of by in we're capital study As held exchange. the a order spin Itaú guarantees, be a this the Newco, XPs our the of capital that conclude of Q&A shares new bank and corresponding the looks shares This company Unibanco I capital in to may stock issued the XPs boost X% spinoff, selling ratios. be interest only into and a the line remainder by asset business studying into XP of Unibanco's result, would XPs represented also company monetize by With would to this part the possibility or possibility listed XX.XX% our off the session. in Newco receive Itaú capital. held whose equity by would in After the shareholders

Operator

we the question-and-answer question today gentlemen, first now Kuri will Morgan Jorge come Stanley. Instructions] [Operator and Ladies from will session. begin with Our

Jorge Kuri

Hi, numbers everyone. please. I Two and XP to Congrats good morning, the questions on if on announcement. may

[indiscernible] that second cushion us your what in assuming longer a are question will going more what NPL is be believe the balance you The I is allow are do exactly what sheet? do And makes I in to first understand to you provisions that NPLs bit term go my - from in level of think you've to your situation peak Where will not, is of that hopefully rates is ROEs think reality and you Thank that is stay to low loss have how and long. for current XX% more models XXXX? what you much made the single asking What do one included overall, to NPLs specific up digits level can interest by there no of you driven the Again, historical that at the be and Brazil see rates with guidance think in that go balance back offset can you. efficiency a in rate scenario? expenses sheet not ROEs provide we in again? but, profitable of I'm for were or of roughly

Candido Bracher

the Thank Good you Jorge. for morning, questions.

level tell are quality for projections for mean, enough So for in economic level faced NPL our over have we very have I disclose conservative based of it. they what we XXXX, do this XXXX, been is our provisions on you many, we the - for credit I our of that years. you way and And tell macroeconomic scenario. information. economic that's the growth I models expect many consistently cannot What delinquency for we don't mean, usually into is whole can this the past the why XXXX, I

mean, - have increased by the we've shown Page XX the As in our provisions I XXX% Slide last X, months. in potential loss

So very year, with we our provisioning the next we embed in even which conservative comfortable level for given of this in projections. scenario are

very As is a to ROEs this question. good

element, We have capital. of chart. of did of in the this cost a the in same I we've mean, ROE. only we ROE, may not. figures and I is why mean, we here. quarter think that always Brazil, be evident, a reasonable the seen ROE will I higher that, keep the rates rates same mean, said in Having show of much, year even before. ROEs as ROEs will course, capital see interest I it's X% we there down so the think whole I sort to as that the cost of cost low of that dropping but Brazil. next is between same not to I cost in not with capital - difference conundrum compared went And for in keep in thought and to even world able And capital XX.X% we expectation I of mean, interest of capital This but teens, remained mean, this and it's cost

Jorge Kuri

right, All thanks Candido.

Candido Bracher

Thank Jorge you,

Operator

Our with from next UBS. comes Banco Thiago Batista question

Thiago Batista

and one in Thanks the Card about is Newco. in to better the first guys. the call questions. have voting is to for November the up question by be opportunity it listed Newco follow the have Hi, shares I Will previous Yeah. the voting way, or make of one. the

mentioned happen these The have in to second, not say that of first that you will is XXXX, half the deal, spinoffs you have that this half. if but deal idea or the know to timeline the I second in

bit So little if of give thanks a on lot timeline answers. you a deal? can more this clarity the for And the

Candido Bracher

you, Thank Thiago.

So apologize, but to going yet. soon. It's your I or be decided first have We'll Thiago more than not. we to question, not decide

to translations, add I end said to the but have when before year too end, to this not we expect not away As mean, I from would far the year either. here,

that date. it I So think around be will

Thiago Batista

But the control new that shares have possible the voting voting Itaú it to you the voting and company mentioned is no have This - will is means company Unibanco? new least assume structure of So and will this company this follow that the because at voting new shares. will that correct. no

Candido Bracher

still format XP I shares Chairman. It the upon the still involves mean, have. these agreement shareholder we on decide with in it some Itaú are and Unibanco, the will refining so we involves

Thiago Batista

Okay very the and thanks clear, help. Candido for

Candido Bracher

Thank you.

Operator

Geoffrey with Our comes Autonomous. next question Elliott from

Geoffrey Elliott

going little tech the soon. taking bit Thank morning. a payment system in from The live the Biggest for off? question. shift good very is you PIX spin away Hello,

lagging think starting about of couple your of a talk up mean ramp kind was then forward. and some And that's going it's behind registering what weeks about in for Itaú new of data that with out system to there keys, some expectations showed the performance for for far now. of terms you that there. so Could to I the ago you going entrants your

Candido Bracher

Thank you the question, for Geoffrey.

three hampered of a said clients ability in of of on us projects ET our with help fact, You're which to of bank, is result are to of number we of we we to registration for our some serve PIX the well, and have this of paying serve clients. better days, long-term And quality had that clients much Having will that sector, onboard need right. - And a clients. our this problems definitely rate as it also perform the in we attention life. a lot matter didn't the days first technological We think which a first increase basis combined products the are on lot. we and so service the going like expect to of

are service companies we excellent mean quality. the and I increasing onboard already instance, PIX, give we we prepared that for four are them cost companies for to an much very For of

will and here, do I going very a we grow improve So this we had not ability forward. to PIX services that to important significantly we elements our problems initial our mean, of consider our And in clients. think our quality competitiveness platform hamper

Geoffrey Elliott

just you do of where think kind out now? got they're bigger catch the digital banks there all can way in to you and do that going key it that ahead you're going you have to those get Got terms through think Do of think the of numbers you to you? registrations? with Or up

Candido Bracher

Listen, It the mean any with we nor this to client this income. for much appearance. to does simply but service client is I bring jointly necessarily, what the has come in you think are clients and it the don't business so have quality not register thing, preparing. this I

not clients between bank, this out card this. expect holders percentage and we don't we base into targets clients in which in not we this to growth to to in our - have to clients digital you clients, add a are to also quality companies said have base terms the turn in presence. have XX large credit of are terms or number we serve million going and specific of of but that are client that Having of and We of account

Geoffrey Elliott

you. Thank

Operator

from with Carlos Gomez HSBC. Our next question comes

Carlos Gomez

My thank transactions. congratulations Good the you at Itaú. on again, Candido, a service and transaction is successful term morning question very very much XP your and regarding for

have like capital your cost paying that to for here value the now happen XP And financial First, it unchanged? if should or is billion. XX% mentioned rate the the possible the gain? in to that you of on Second, valued your very does and book which possible that how the that any you the purchase tax obtain keep Thank we statements, gain? Is at date you I X.X finally, Or through value in non-banking a rate would it confirm wanted statements that you lower rate? a stake would you is I you pricing structure know much. and original you be a consider tax

Candido Bracher

Thank you, Carlos. I got your first get and your second last your question, I one. didn't

answer our rate I'll book I billion. tax So to you the repeat the get? third question second? ask and held I company, the please we yes, that is XP to is And the the for I XX%. non-financial And when first it's a through didn't and the First, second so sell mean confirm, X% as participation participation, value BRLX.X

Carlos Gomez

of wanted is takes the XP. earnings, XX.XX% I correctly from and outstanding It terms confirm additional XXXX times Yes, in to it's filings of shares it of that place is acquisition your the correct? XX we understand

Candido Bracher

That's so the it's But it's buy the XX now exactly it of in it's to the XP it, XX.X. [indiscernible] in XX.X - It's at beginning. earnings. since XXXX the and be multiple right used times of capital to increase, XX.X% have

Carlos Gomez

XXXX, of Earnings 'XX?

Candido Bracher

request. 'XX, 'XX

Carlos Gomez

'XX?

Candido Bracher

Yes.

Carlos Gomez

very Okay. much. Thank you

Candido Bracher

Carlos. you, Thank

Operator

comes America. [Operator Instructions] Pierry Bank Our of with next from question Mario

Mario Pierry

Good Hello, everybody. morning.

a had I late. call the joined just time, yeah. I long Sorry,

almost for years. So I the and past questions. all, like But a Candido, of the first the repeating bank you half if any years, leading four apologize three I I'm were of

you the what at you message Also, question think challenges what to would main can are your legacy Itaú, to If more make? of results, that that were do a do you related right. bank like think facing? is think were accomplishments be able is you the main leave to second you And is your the what going

your like see a is? XP room of And seems did performing this next it better did see I about Thank If bank year in to much performance for the were anticipated. to of us like your is Call year? provisions the performance and us almost if any the better to think perform idea, Can questions there what the about you explains of transaction portfolio than provisions lot It how seems coming no lot in going see it We you Because talk Portuguese continues can quarter? ratio up. the normalize? the think portfolio? coverage down. provisions of your renegotiated give we you. about next questions you talking do what to you behaving loan a this the do there's could start be economy way We

Candido Bracher

present question, which well, the despite other been Mario, I Hi call, the repeat have made, you you fact your questions don't not any already that been thank and think for in questions. has so your

I So almost legacy. in years your honestly, like three CEO. this question as bank don't legacy after to about the to half, I first my and a four talk terms of

is every liturgy, Promoter was measure was What experience was the I mean, taken, in every I his using in bank, is focus the with mean, having in communication, and having But I clients the back this I throughout by - talk foremost, others tool. Score focused, importance should during of the as where the And so and was the first transformation a satisfaction this This digital main think mean, whole and to elected so and In order institution, implemented customer did it's energy was not. main or not time? in I groups created it goes this recognize furthered measure. was priority in Net and stressed about legacy a enhancing the there about discussing been not focus. for reach to my methodology the second simply I the there legacy on talk client if the a third one customer it who to first, my has made and energy satisfaction. things can

price this we And with satisfaction efficiency. effort And are your performance and customer efficiency we element off we in years was think products. And a better satisfied have is so start of allows seeing. effort, this. I a and we another And quite important of you to already there. of on Because evolution placed good to are lot two the are

surprises on And a I in so this And and performing. the efficiency, reducing a a thing in and lot attention there's a And where where important a to a crisis. of mean, most also and here we, placed I with XXXX, costs. of constructive of place think the is And I XXXX. we're bank changed I light efforts major place gaining show lot then my was face of energy

this Mario competitors, how the long-term citizen and - to your Centenaire About so for mean good bank it a be. image. success render these question Bradesco And onset your our and effort we order they where them attention the the corporate ensuring so and in I But BRLX repeat there in all we've difficult crisis I the right. about towards billion support made. Amazon, and support was services are our were that beginning can was the in was we've have some jointly showing - this next with in on from We we've resolved [ph] you this provisions, an co-workers had question enhancing realizing effort of bank's Could to results [indiscernible], donation which is our this here here, and for which an in country first at a that to could well reassure designed change I And fragile is - effort, you mean year mean, this really second the finally, to restructuring period. our and launching that's That clients. better they question so of climate order the had the environment, please?

Mario Pierry

No, Yes. exactly.

portfolio do in The question see And performing the come provisions much you do Why do related than you to how your year? of coverage the down at you think XXXX? your is how better beginning you expected second more is think can ratio?

Candido Bracher

lot performs. how Well, on a depends it really economy the

to and and relations interest rate? On because impact how behaves, then the GDP X% X% how and mean, exchange the relation economy are we'll then the - to close GDP - inflation on. other around how year. debt fiscal we the I interest cycle have are inflation expecting of factors will How and will rates influence there how's an to rates turn this this debt so performance on net impact the growth government the But next GDP

efficient government don't how long-term the the So affect there affected but in will And with these gross itself, perspectives. XXXX in ahead. it are much the to I dangers. will dealing have dangers really be know

our previous have made on country. mentioned assumptions to mean, based one I performance As as the provisions question, I conservative economic are in of the

do said, the in waters we the know to Because the feel but we we that account this our if our trust provisions making because as presentation, into to So we only good scenario, later of not is have the this and I more extraction XXXX. extent, something how to that evolution the have the will excessive. we extensive of as the still in stimulus in year, stimulus next are not But on of year. - unchartered economy I be a have which was prove this economy, react know certain we will that projections, models will fiscal the when is taken more very

Mario Pierry

much. years, Okay, Candido, with few very working wish thank success really rolls. you And enjoyed very you future you the much in I you near last Thank and much.

Candido Bracher

much, Thank Mario. you very

Operator

from Labarta Our comes with Tito Goldman Sachs. next question

Tito Labarta

what pretty - due SMEs, competing Hi, easier but I mix couple segment it good the think just competitive they're you. couple in the morning, sense you But government partly back call. Thank benefiting your on, From and first mean, will could you more sell long margins make should is we do for stake a perspective, evolution think here? economically they're going the away? dynamics on margin, think then and look if to more the bit A guess, bit you given you time, stake, from to against makes Candido. it and you have you about of sort how with what continue rates. is think much also in get given should my guess, quarters, pressure and sort just XP, recent second a I this of can last from pressure against quickly make sense them, economic margin, long-term, think rationale, also, of cycle your overall think you supporting them? terms for But mentioned, little in you as will I this how your doing. margin the from and strategic it a And announcement stake strategically, ultimately bit but be structural lot quite at this over a mix of the more to go benefiting the of particularly same do you. out loans given retail on do stake a of continue? in a of given the of the think on as the I So about much your that lower perspective little those competitive And question I it doing, long-term we've from that you're Thank thinking in seen the how questions of you're you XP, as

Candido Bracher

questions the very you Tito. Thank much for

First this long-term call precise I terms due the think is reacted evolves, reacted lines a offering quarters of all we as in as if it. it offering lines, it longer on and also in lines, will of the and by improves, here we of the most sooner, how flexibilization lines, that would back the this but they're a here. to it, to The right. calculation, better margins, you're by reduction economy lines, take will it our part to own and economy we I of A margins, wild pandemic the guess sponsored government And not it of them. a come offering [ph] because make part three our

alone. year mature they'll So not next

positive credit the but forward. a negative is is which So quality a for margin, for going

the average see we but to especially still in absolute to for of quarters, So stabilize one, effect of we may begin still some mean, amount, our we I see terms, expect in I as think expect it two may decrease grow. portfolio the also margin because the I and then

I was never whole transaction in investment the - the participation XP XP I interesting XP. I mean, so to acquired I stake have efforts because softly question our on have so and And CEO XX. question. May own in our say and gone investments, very area, we on, that may your a is Now, a made while was I

could financial in was that kind a freely, a Xs said I us Central competing. of in mean, they I to influence of from participation. said the it's Bank So our any the an not that, participation But stake we clear. it. happy moment growth participation, the same which did have comfortable make not course, of in of mean did has that competing and very have shy compete company. more the management, activity, financial was it not the of having good made happy by a you a that it cannot with It Tier as direct exactly task having easier that

we of comfortable and this, conflict less although shown not of having whatsoever. of risk have doing will So more from some any we feel interest

Tito Labarta

you, thank Candido, Great, that's awful.

I sense. see the to a be stake to guess sell easier of time, just up participation? But to is bit. think would think about you it get so is last dilute or? continue want you don't your understand and may easier to ultimately, trend that would I mean, the you're to follow without that that to too the to sort said I to comment, maybe mean, on makes a divest and over just any - I So compete vehicle much all it I make but it, that. entire direct that that X% And and of does sort read into way sense it? But this of comments not mean, divest it to going we

Candido Bracher

to falls the Well, divestment an the is we bank investor other Tito, Itaú of Unibanco, are company. longer And for the in everything responsibility let the spinning under we divesting [indiscernible] and the because appropriate moment, in which, what sell are XX.XX% off equivalent me a of Itaú no X%. we will Unibanco is

So we the company. divesting are everything of

this have buy with to the XXXX, course we'll percent we XX.X% of take. which in course, decision still new Of we what the that honor. administration's commitment And be do to will will

Tito Labarta

you, of okay, in best and Perfect, luck thank the Candido future.

Candido Bracher

very you Thank Tito. much,

Operator

Natalia JP with from Morgan. next question Our comes Corfield

Natalia Corfield

idea and question. a you have very of much core your spinoff much the my your Do events how you stake? an and equity? of With Thank have do those to would impact for fee spinoff, taking deputation regards X% capitalization you

Candido Bracher

will from a number Yeah, our longer to of the capitalization spinoff, XP, of XX but this the the that XX no And impacts X our impacts today and in our X% be The Tier for course level. we marginal. have Natalia made only have of spinoff investment improve necessary. in of it's this prices, deduct don't here estimate I on in part BPS. depending will my it's stake capital indirectly sense sale the X the to Tier the

Natalia Corfield

Thank clear. that's Okay, so you much.

Candido Bracher

Natalia. you, Thank

Operator

question next from comes Henrique with Our Navarro Santander.

Henrique Navarro

taking initiatives. Hi COVID-XX Candido, anticipated digital thank The my morning, for has accelerated good question. you or several

So and maybe personnel of year than next expecting before. expect were lower branches are number now we these for we the

going to trend's on you in of it's be like personnel started. efficiency, comment I not few potential already branches specifically So for the the I know number in improvement I would mean, hands, the years. on next but to your

Thank be So will very these you. you on anything welcome. comment could

Candido Bracher

Henrique. you, Thank

call things second of half if the vaccine So the the and mean, to crisis, in that I come back solution COVID we it think let's that next assume normal year. can the of I so

has great think efforts. So our impact a I efficiency don't in it

we the the the used I this is fully he we our the that the will much life. We've now had have in having to on in, normal use think a at people be of an efficiency office And of have the optimum. way of what more may will But client [indiscernible] behavior gains an efficiency keep and see level occur, or the not back will widely have improving closing projected working And in Milton the projecting home gains are have significant be behavior we is to for - impact better the the which branches, bank efficiency we once and are managed that bank. will most the and on think gained future. bank confident upon are in I keep technology. will these in

Henrique Navarro

very the and thank watching years, tweaking And nicely. straightforward as those analyst an was Thank and Okay, all I you. for thank you. good you

Candido Bracher

Henrique. very I you appreciate it. Thank much

Operator

is Our Autonomous. follow question a from Geoffrey Elliott next up with

Geoffrey Elliott

from question. The done pending it XP? Do again, approval pending to your any of that that agreement taking kind much entirely hands? for kind from you approval spin of outside thanks get regulators, Hi, need is off, from or of additional very sort an any in the is any party

Candido Bracher

it's Hi, Board the approval pending from Geoffrey, no, only of Directors.

Geoffrey Elliott

it, Got very thanks much.

Candido Bracher

you. Thank

Operator

And up Carlos Gomez our is from follow question with next a HSBC.

Carlos Gomez

follow has question as Yes, the has you and capital very, over years, a very last up for been Itaú thank my again, look great its well. taking four well. you payer, back When dividend administered

capital? compare banks, in grow the that you expect able to do lower with the to you recurring of market. rate here terms more in had growth your Thank we higher your have you that Have the large clear future how see how profit see been that and when banks investments How of other result to which main growth capacity competitor. going in both for has profit been It's to in to quarter exactly and its you the has in you've you. are However, company you point we Itaú same in this the this the or do the distribute made grow forward? to going endower the line in accumulate

Candido Bracher

you, question. for Thank the Carlos

our investments the main As see that and risk you in have we in this challenges, for challenges the the I have I said adjusted mind. before know, have very capital a digital and always are growth. ahead always I new mean, been focused on on had question return administration transformation

is in objective enhanced which will growth So administration. much new be an the

Operator

your question-and-answer you with closing Bracher, may Candido Mr. proceed at This concludes this today's statement. session. time,

Candido Bracher

And with time. you interest, just been a to during the It thank has you the you for very consideration, the I an talk and Well good this all very much. pleasure want honor questions. thank for all to for

Operator

participation. conclude That Unibanco you Holding's for conference today. our for Itaú Thank very your does earnings much

disconnect. now You may