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ITUB Itau Unibanco Holding

Participants
Milton Maluhy Filho President
Alexsandro Broedel Chief Financial Officer
Renato Lulia Jacob Group Head of IR and Marketing Intelligence
Mario Pierry Banco da America
Tito Labarta Goldman Sachs
Henrique Navarro Santander
Jorge Kuri Morgan Stanley
Carlos Gomez HSBC
Geoffrey Elliott Autonomous
Thiago Batista UBS
Natalia Corfield JPMorgan
Call transcript
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Operator

Good morning, ladies and gentlemen. Welcome to Itaú Unibanco Holding Conference Call to discuss 2021 First Quarter Results. [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.

Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Securities Litigation Reform Act of 1996. materially result anticipated risks of factors. differ comments any and could a as macroeconomic performance from in that forward-looking other Actual conditions, market us Sao call With this Mr. are in in today Paulo conference Jacob, President; Filho, and Financial Renato Investor Broedel, Milton Group Maluhy of Alexsandro Head Intelligence. Officer; Chief and Lulia Marketing Relations

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

Milton Maluhy Filho

Hello. X.X% Three in both growth were X.X% loans respectively, growing, solid for directly a and conference approach of our I into and and as increasing mortgage new grew X. everyone, them, for and Good our quarter our reached volatile will the environment. despite the with as on had of BRL XX.X% macroeconomic product first jump net products XX.X% highlights being can the supported Slide business agribusiness important correlated we specific attending towards performance and we new is morning, sector. the for you quarter loan for thank income book, recurring well contributors a this important quarter. focus with segment of this in XXXX by of and this a the most straight the auto The renewed overall call. earnings look highlight the We sound to The in the When our start and performance billion, this demand X.X growth with quarter. was lodged.

would despite high positive first the constant volatile managed in trend result credit quality positive operational continue the opened this X.X finally, market. to margins our effects new portfolio. financial in this the We to is quarter wallet, period, generating banking well, clients I clients positive of the about And we more highlight as the generate in period, important the million strategy to a cycle also like to lastly, as new for digital efficiency. our remember, environment update channels row in And we opened originally contracted here quarter. credit it, decreased metric they like XX.X% changes evolved Cost negative this results. quarter. into relationship technology, second the the the of efforts Noninterest by in X.X% seasonal alone. than reflecting expenses our P&L, and its digitalization first trends the in I operation. margin than was navigate with continued XX.X% digital investment you Through would of through growth a as quarter more our X this digital which at XXX% full-fledged, with our a born the Looking in which life in very boosting financial million through a you with a relationships only

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Operator

[Operator Instructions] Our question Pierry comes Mario da America. first from Banco with

Mario Pierry

Thank you I it understand detailed helps better. strategy for questions. very us really presentation, X a the have Milton, bank's

is X quite clients that You iti growing first you're show your on iti, The right? fast.

attract not clients, You're able are to the they of clients bank.

Brazil declining you're clients? you So to excluding charge I expenses, is how you clients, had my to As next to onetime threat another of IT. employee that of how of compare you be the operating if over of you And see aggressively? to monetization profitability your about question years? in restructuring. of there, you branch would your like making understand right? then all think that for provision topic, to do how then see the the the base as will about, from How think fintechs? about these on on of monetizing do do about products how but to talked you competition some you here that hires is, ability see room talked your on branches reducing You right? it Itaú? there Is for in Well, your monetize that threat quite level rank And a related second couple network think We do regular these bank do clients, the you you

Milton Maluhy Filho

first start one. Mario. the will for Thank very you you, with question. Thank much I your

iti Of course, when platform. you mentioned about the platform,

end, the to to very it first beginning, be compete way banking to approaching way attract platform. banking But a major clients. started a do we in we and concepted to a the had very the to At a full payment the to thing clients. we the were digital migrate is So approaching was at is market and This change -- that the offer.

showed, we end. numbers we are the clients are -- new the to on bringing see bank we can you As at the not

of clients, and are to very young with XX% a And also, the bank. we people public are new So the clients approach this coming which the major nonbanking have clients important platform.

this do happen different used you that fifth and in the business of fourth profitability. So what we will will year, It's know what past plan the be is the second, a that third, a in different doing as to completely and way.

idea the to mechanic. So the is here change

we we to we them bring unique very experience. a clients bring So -- do --

quarters, the coming we the monetize platform. in So to understand will and how their needs

the are approaching. way is we this So

Of our course, a ways personal so this one don't will have strategy. best in be, roadmap. credit We of monetizing in view term, of the credit the and will platform products This long cards mid- to of is this loans. course, be the

a which have is different of again. clients a very it's We approach important, need roadmap

And so features different the together enhancing be new products and and we'll for products. as with need creating clients they

So unique bringing find a service a to user a technology to and that those future. it's those we'll give and clients in of very but platform, monetize level very difficult the believe number we experience do now, ways you right clients with good

they They well. they not a we is fintechs, have some complementary anymore. fintechs about that some opening new see the for of see an grew They coming. size. this are, but little, So course, Talking as new most yes, markets important fighting Some markets, are so we important way. companies markets And are

in we the competes as in And sheet, long the to approve credit the tough This these a We bank. in and in balance models it's from mandate with have, is a could deliver here, credit recognize for each we term though our markets market. have the we there iti you well. this the believe the competition that of that the a client. new market, the increase fintechs see the job can the manage midterm our to better and data still we be platform already the credit to in opening and to is compete to and have, that open is As fintechs inside capability even differentiation to coming capability part with with here and platforms experience Itaú

why anything reason is define regular of hand, like a because new throughout quarters. It in in it's other a OpEx provisions these provisions the that branches. is the be do It's simplification recurring, the of this is have way months. specific nonrecurrent, made for about Now the the a asked. believe won't the last the the the we not in very coming a nonrecurrent talking And the so we doesn't X with to bank. seeing to structural course one this that project clients and we our This don't deliver services we of you

of this, the various nonrecurrent. a going effects. in generate the there we why merge course, and through And team. So of anticipate is made That's will on reason provisions those the types a

banking of in When nominal the So we about have first very doesn't future the we Talking of and we XX% that, the the that system. have past more XX a following. years. okay? the the quarter, though in basis, are look lines. So last of Even the impact it have on reached throughout XX% system, the was costs comfortable an constructive of of believe years with the branches, there banking branches the be today, to information in banking payments X our share some important than we the an to clients clients clients, XX%, mobile will with transactions, used market our here unrelated I on new is improvement

XXX,XXX very coming that have I that more reason we period. this say than there when Having compared nowadays, channels And have when to a in And per markets to because lower of important closed very have. that bank And a look are that, said city the look Brazil. of is countries you lot, going the inhabitants, good -- through branch changed that the to branches of are digitalization, the but still an the digitalized now, you payments. we years branches. are were why more share X through we X X,XXX comfortable though will And density their even means When important relevant Brazil, we in currency, of much our payments have won't figures of their the is branches transformation we the a nowadays, we we the have So around area. of you much very if from a redundancy role had in playing see development gone see branches. compared we in and

period, are our see but digital we important will penetration the X,XXX branches, migration we a the changing digital it's to of I about reducing our the even channels. see an we but going our are is pandemic, in to how We pandemic and the that. lot that expected comfortable very there are a -- be course, channels, the to way the period, we reduction throughout and to a that moves clients people branches need kept believe to, Of of restructured. flow after have after in lot we XX% may branches branches, branches this GDP

that We we clients branches model, very have have -- major to specific I call that a also ambition you have, will our in And more branches to demand. information specific information specific more I this the you next hubs, change very can about about bring and are call, regions and and what full is serve about in in can that this. with what idea we satellites the a give the go

say So could a we it from having experience phygital that's presence talk products, see be and face-to-face the why And branch. be to a physical remote here, a we be demand physical important. in or in complex more do could still that -- general, and branches -- presence, very physical huge believe is and the clients to for the remotely we

do believe that our role we to physical So branches strategy. the an have still important

Mario Pierry

appreciate answers. I Milton. clear, very That's your

every iti? week. And to think new acquisition bit makes we acquisition all follow at really banks other seems an people like iti. on popping up you choose When account do little then your download a quickly. it up at we in can cost cost, have What of just digital iti bank think digital a talk customer about about Let your you Brazil, me the if

Milton Maluhy Filho

the a wants current client, of regular that one. of He wants a simple experience account. it's process and all, the a account. Perfect. he payment first you Look, He doesn't for has charge youth, through appeal of the sexy an brain think the somehow client product, that something he -- he opportunities something new and the with for looks with a client. it have want that free important when And see on digital that go to and role, be brings himself to I

in credit. you So it's they card. some discounts of can that iti cash some very provide to this impressive. minutes, financial provided is us when And provide iti, information what that experience wants of something as you and can, clients, well in and surveys for market, pay put the have want a to they wants interviews very have lot see and to have lot a wants most and when some to to to He education, market. to and wants. to free in him he so for important some those income this they credit they that payment as to And account, score the to his very service, he is But for charge, them account, that important you this don't leads the open a an it's see cash we go a in behavior that specific provide account also is own of things a the basically of is well credit is make an very client, that rankings iti. or gamification account, understand don't make But open the nowadays an a of we And you prepaid that in backs client then X the generation. bills, this clients, we see experience he start

to of branch huge didn't bank. the because, if very, for. what is is are if other basically monetize competitive that BRL a we able this cost to we nowadays, that here And XX, we have made working any we the client be physical of in a day, more acquiring or will with account, cost a of So cost very acquisition XX not what percentage end for through per when go which term, have at this is long a is the they the of What BRL the look market we we're channel. acquisition, couldn't

to and cost, make bring So why this to has very are is amount And achieving our been of cost of -- people. a iti important client CAC, competitive. we very very, client a acquisition way a

Operator

Our next Sachs. Tito comes question from Labarta Goldman with

Tito Labarta

recurring revenue my cost help think seasonality, credit just margin that historical by dynamics. sort again, growth business performance is the I may. the competitive back us as a you expect use. good then go I down how year, by you questions, guess, is also know pick forward? both you normalize? environment, revenue sort under the and about helpful. And going think of guidance in so now the the a the below And the asset sort going there, If clients. of much have couple asset right, rates? about growth could do to you but levels, revenue on, which If credit to want But the but which financial all you be on for it's a looking excess new despite I level can basis, cost about just also on if you back cost guidance of financial how terms we basis, level know mix I the talking about know or the fees, question growth you can is get is in year-over-year fintechs to see on a also us on the up? outlook, the side, there. for you longer-term credit think begin even be and things this management, of revenue is would normal, plenty perhaps think the with first, more are also everything a worst this competitive of longer-term up given best was down outlook, growth I can you're with movements given should should behind the in of Also of changing growth your growth. once a of have on supported But bit which can of cyclical. help your reserves think you the good down, that of credit, pressure I Do advisory But cost and on And second management but of seasonality margin income are on loan despite some clients fee then cards impacted a

Milton Maluhy Filho

Thank Tito. you for the question,

of margin year. first main clients, had we talking like So that the effects is last with with to here the would major I all, X reinforce topic that

an like and very strong the a investment lines the with a wouldn't last important price, period this we We clean very revolving rate I on and pandemic in have the Bank with had and us we hand, also much year. for for a discussions impact of to migrate some in clients Somehow, portfolio. which Central value financial in -- in clients had that, here impact with the other the relationship pricing had the strong that a term, decisions But it's margin credit and made very portfolios a But credit activity. I grace say our regulating, the would the with better we spread hit huge self-inflicted last we reinforce to short was and long-term very in client. but credit we lower interest when our from the revolving a lifetime year revenues low, say an

quarters help we quarters. X lines pace important the we'll that in that. how -- it's the the the And the year, portfolio, government in made this financial coming those to of we again, be a and a line government have return of which reducing slow is focused loss We to on on paying the the been have in throughout last very terms well for impact had expected guarantees we credit with very clients positive credit in in because impact well-protected an that to This an our And row. return still a on equity go them from Even this we've So as of lines. credit clients. it's a crisis. on though very due also has the margin amount

we've an seeing in quarter. the that, having last been So said acceleration

quarter from On see balance credit about of a of trend we coming positive quarters. XXXX, those first Talking the on the coming an lines, we the improvement. expect that

well guidance to the will what ahead. believe we the I'm environment that deliver So as seen portfolio the in increase not in and mix. the as XXXX, clients of course, in we also we won't a -- coming able grew capability lines with not the grew to good the open through still credits putting the that market, are companies, here it's see only lines, think of on big the sheet credit in a XXXX, positive moment depend, we credit here we've looking It but have balance we the portfolio I capital large catch talking hand, that we about it market about the of see portfolio with return. but pandemic, the the tough in when we credit NII, and as have help going retail to are But to course, we up. the local seen that capability other company's the have the are -- a that, on But past, market, so we compared

side brings fee but pressures that it and the NIM, in profitability lines on those is the to very not but also general. are the able credit here, it in important, So we corporates only NII put the clients large which cross-sell on with corporate

the only we part we a see short is this that look of of very to the the calculation. you again, look value we for And client. but to positive difficult But is trend. lifetime self-inflicted. do to that make So It's view here our to -- have cannot term,

to to do only the do that credit Talking of come information, positive we'll quarters, also decision we coming but that close first expectation of and very out expectation believe of we We believe provided and do can this this but the that the yes, made we of this difficult provision clients, be above cost we we do that have expected And quarter, very, You range to we you, consumption of provision, not do consume. talking using toughest on looking And reversing when I've cross-sell we NPL expectation. our last with provisioning that not formation, the cost we the our credit, is that. terms not do our year. in in we those of quarter. more this the the in have that about reason for okay? which tough a deliver we made have were still seeing would had so not provisions go say much outcomes we in I we but seeing to a last about believe I'm were the capability level. part the cost, and below especially those very credit is good will loss quarters, of is we and bottom they in the have revert the I'm the the NPS expectation the consume, consume. more this guidance last XXX% to word and because been pandemic year, saying on of the been done that in moment the we've I'm to we don't have the moments, that about than consumed provisions, believe

large been project we to to in well the cost mid this credit the overall see difficult on credit believe companies You of at a But for the positive XXXX. grow quarters. years in It's growing the very row, expect When as seeing that the nominal very this living. portfolio cost cost that is we the a are coming we are We having look you well. and X it's performance for this a you have as of we similar scenario credit, as of very will at compared corporate level. XXXX, look and good

Tito Labarta

can. That's very follow-up, thorough. X All I right. if Milton, Maybe helpful, very

as lifetime Any getting be you're targeting you what value clients, very provide can clients? to these of the initial LTV mentioned, that. eventually you CAC On to kind right, on of data might focused monetize on you or

Milton Maluhy Filho

which, I part. the first sorry, missed I'm CAC and

Tito Labarta

LTV to the lifetime -- lifetime -- value to Like a yes, sorry, CAC. like

Milton Maluhy Filho

here and in KPIs No, that all it's guaranteeing that but it's a we implied all different different calculated segments are we are for the not have releasing businesses. we that pursuing that for the because metric is and in looking ways, this

release, of different So on them we going have have of X follow. with figure which approach we throughout have lifetime we that that are many lot of the NPS proactive to the a especially that, correlated seeing the have we in benefits helping don't figures value What we been is crisis, we a doing very that clients the the is on well client. seeing

the So way seeing this is that. we've been

Operator

Henrique Santander. Our with next from comes Navarro question

Henrique Navarro

of the provision, for My normally, plan I personally first this I is your on next than to long-term itself. back is on -- saw we go there -- X to the higher that presentation I'm question over both provision core years. going a come to a bank the tips normally when understand I restructuring. mean the do provision cost you the where reduce have through are the kind

based next the and understand what kind for to relations X I I years between the like savings shall this that's expect years this of X one. second provision? question. the mean, So forward we jump the Then would to first my ago, I'll provision on iti And of

Milton Maluhy Filho

Okay. Thank you, Henrique.

go X year been dealing has in to for nominal This that we've that, we that reduction reduction now. program years market is leading you tell row. through -- we've the to So the our I a can efficiency that saying And in are costs. second this a do pursuing and to with here been

we to So is achieve years for would you here you now, a This efficiency This why meanwhile, that's so things the initiatives. that why message program. we investment this to we a horizon looking part costs to And give of X to of core can with want the to see this what and we to and the one a say see change to can open provision, in deliver. what from reduce is in to of row, the not of years is new we where separate can X from its course, the what investment. positive here what is say, be that's X can idea room structured good cost, look, bank give is core want years separate it's this

before, this now. saw X,XXX moving is than XXX you And place As initiatives. have right are in we target. a more

do. So day, we else can are every discussing we what

in So we the it simplifying because this of may help deliver clients why but course, will our is we are we the branches. us not the way with achieve, relationship

commercial operation investment front there team, over a and this is in the On huge here.

initiatives, slides. part on we of This reduction the what is are one but seeing this were of but in there transformation not is this coming previous others explains we the as is are making So the in here many this the years. bank, the

Henrique Navarro

second My is on Okay. iti. question

mentioned clients XX% X which You million account, without you and active Itaú. from are of coming XX% that our have basically clients clients of an means

So until you you do reach clients. those we're decrease this you like end iti to I do talking XX And will I understand, clients XXXX. many hear breakeven? target's mean shall iti? million from and believe Itaú about you might when how How you of to see cannibalization -- that X cannibalization clients million something mean, it's Itaú. do would increase, would looking I come from see the forward? I how between of like this

Milton Maluhy Filho

either have coming or a do question, we will. view, to Henrique, Perfect. someone simple this very so cannibalization we

migrate of cost and that nowadays clients, important for they that for in we not So have in base regular the bank. see it's this branch, this are that to will bank our the at because we have churn that client follow of the regular have a especially basis, product ones expected allocate an as many we the all is profitable and profile, most if on accounts better you that for they clients, for offers them the current something those you the and is market

our are cost clients. And of serve a acquisition cost very way client platform can maintenance, a correct they small we cost very with they with cost a when better more So somehow. of digital in serve a to to and the much migrate very this

the account you is of end view branches. your the using the keep of at and products, clients when have this your So positive the current the that true bank

see I clients. years, also a so as way migration. we intelligent were as a that -- didn't someone very the those not clients coming those So losing or a past economic I have technology And negative today serve to positive on migration, else, way, the to in

was to I So the those losing market. clients

capture, I also bring Now to market. and losing that the new retain would can be clients clients

and the we how clients, and we pivoting way. the of on how So what positive I we why, seeing the breakeven many see here are size, a About that is as any each, And reason not investing are monetize. that. relase giving

see KPIs quarters a more So see that were we planned X the doing review business quarter had the and OKRs at keep invest we don't X-year we for like yes, a will and And that. we achieved. that if quarterly plan, understand on to more if this

bank. this So approach this P&L., and that to iti in the new our market, the is way the way the works, is we specific of have new business all completely same the with metric terms we different we don't are lines a and in approaching a competition used way than

client success most NPS, following relevant engagement, of we the the to acquisition, metric understand the way as cost well So that we now. are are are what to relating are learning those metrics

Operator

from question next Jorge Our with comes Stanley. Kuri Morgan

Jorge Kuri

ago. with different to go pointed a margin. were your item and evidently, year and margin last to But wanted months, relationship rates, you the SELIC which parts mainly the understand there, XX out, X And the in there's outlook fared. a clients of margin is as net interest between your I is back rates Milton, which very how there lot moving over big

in of rates with It rates your XX% quarter in back this average will be first quarter what it be that So the just was last margin above about the so first SELIC a of annualized are year you second your asset think a today, first it similar And X% business. do should be? in question where you you of margin year, to you X% SELIC significantly go X% the Would where what is think average which for from Brazil fair in quarter. what around your If and quarter then, X%. right is is up will an of consensus do average say with in have was average annualized X%? to which environment the X.X% rates was SELIC management back below last be I forget that year? to did year to X.X% And around general,

bit a there's confusion there. think I

to didn't. amount you. X%? those really rates but year of you Your SELIC same back the products, under impacted should have generate up And of acceleration -- volumes an which what think, is average and your to really the well, also, next custody we for did it fees big do is in see fees income margins I X% by moving the as can management, of part result fixed where you a Where think your rates over a

Milton Maluhy Filho

Thank you. much, very Jorge. you Thank

when tell and you I you direct was this, a ago, here beginning of growing the in impact see a year, few with year margin grew that this corporate NIM. the So years look the will not portfolio that our has with and back same course, clients, will financial last large you way it

have compare first back the mix mix of in that to XXXX we had see we the the go have So now. and and quarter it we to

we increase mix credit in of So you it wholesale portfolio was side, will mix, vehicle more to you we to when XXXX, the and on back personal due this quarter a auto go the portfolio, lower growing that not less side the have first NII card, NII riskier corporate the have but had loan more only also, mortgage, loans we large to compared of and retail on side, companies. a less the be

is So the back having But one with that of with we margin This believe we a okay? don't we're improving X.X% I to mix, said to going believe clients. issues. I think will this be I financial now be our different going that, saw.

to of SELIC we the of right, X.X% you're this, will especially rate. impact on those capability one, second of were yes, on now to The the impact bring of on pass interest clients, will competition, through -- depending but margin scenario, low We the of pass-through increase to have you some here course, first the and lines bank. impacts. the rate, the course, also, financial by is, in seeing interest a expect with year-end quarter a there credit our interest working rate the But the depending the capital

of believe a see will I bring below we'll I be back mix X.X%. bit go easily. So to little don't believe a there here sensibility you our what

many long So there for the think okay? I mentioned, back points. I it's one run the this reasons a of is get to

one, funds products products What very second and clients saw and the to I all, treasury this. think simple responsibility to the products, of it's to reduction on to bank. of be deposits so important within with here management, asking it's what we asset the The change rate, about money happened, happened? very interest simple the for understand clear our market to First

So just management, we're this we to product the idea, you what give XX%, asset on traditional an in lost recovering bank. deposits the in

the was We assets, And within hitting a migration if saw product. a to is assets funds. bank. had lot concerned the see of a products portfolios We the you'll pandemic. the look and of deposit, a and our major those of those why you fixed at there in was everybody mark-to-market credit that effect reason volatility very those because some So lot on growth, profitability about income the crisis a huge was

the was this first So topic.

first in lost quarter that quarter this explains then XXXX we been of last million, hand, we second more last bring had our little BRL alpha, more And last when we this XXXX. little we had statement. deliver the to in reduction more And of happened line. performance third why What to look had clients. about around products this we of quarter our to quarter that we performance this we've a volatility quarter and asset to the On first and fees, fees our less more alpha in bit bit in as the on and here income deliver year income -- we XX increasing have a management compared the we

better will we quarters, to performance in be that a coming is expectation able Our the fees. deliver

on depends the it we do course, depends teams, believe about we our an market, that are generation, on make Of but positive recover. and important alpha we

we and it for myself will this to is This have bank from may the an increase fees to funds a I course, of in our the is like do asset be deliver from we interest product the year-end, are it a this we again, -- generate see, capacity fixed but and this coming we in Whenever expected to though migration made And expectation. of to even traditional rate that type that. when we if riskier asset lot performance not why we volatility, lose by quarters. more that's I'm income. clear. our expect more income those clients migration, sure first, grew products, looking migration more So product

Jorge Kuri

if Yes. I looking but Brazil, this, were and question margin, let fine, me first you I do go back at to quantify let's consolidated was consolidated at it guess -- we is margin. the And think the the looking which I then on

at X.X% you're now. So

and You X% X.X% difficult are said at level. pick you current double you're back even means that XXXX rates if to it at of than XXX end points. rates will say the maybe the from go be margins, up that to But more basis

and grow X.X%, numbers in still You'll X.X% XX% a that over average XX% Is you volumes next mean, seems prices. XX% And in math? to on if a I'm prices, under is roughly you're improvement I improvement below prices in your NII scenario, recovery go from the year about Is an possible there, growth. talking this that, understating X.X%, or which right the on X.X%, pretty potentially realistic? a Where expectations? these within think

Milton Maluhy Filho

will mix No, about in in terms quarters. in only thing of I anything the cannot I will way the correct. is the math the say improve our is think coming math, that the depend portfolio

What the set That that we the in that have So to mix I on that. do And how maintain are we'll tell math same of will we coming if correct. parable. we means to don't believe I The you the the mix have keep quarters? now, have, but is is question track level difficult projection, you now is answer improve but the

Jorge Kuri

modes a rates months But risk a last COVID behind months? top-down over the XX with on interest today, wouldn't from significantly justified XX be the the economy next hopefully, lower growing, perspective, just versus

Milton Maluhy Filho

opportunity. have will able think the be may and Sure, to I have to the market we and in in again, how the lot about a We the quarters. perspective the as But to increase mix believe coming margin But competition. well we have the sure. do put competition evolve. the that so we

this positive, but have on we I'm So to keep track.

Operator

Gomez next from with comes Carlos Our question HSBC.

Carlos Gomez

reasons an going And you year. Two there we Any And from for we if know should or XP One have transaction, if we for expect from should noticed anything dates me. second, increase give labor that on forward? for brief that new that update was questions in claims. us closing? is last particular the almost They could it? is there doubled an you provisions the what

Milton Maluhy Filho

about have to so. the Talking okay? of have the news XP, we make could so but I to have end this process, by something in Carlos. Fed We you, here for end yet. didn't Thank approval that that Let's We have many sent are the may had month a see the information all of approval. we of cannot the we control now or by we this their have this so the term, We is already we spinoff. the maybe decision, needed expectation we January short the expecting months, approval and wait any

new have So any we that. specific don't on

made provision an we in why we we balance We reason this impact side. we nonrecurring side, restructuring provisions. the within serve are But side, sheet retail where the made that related the made provision nonrecurring it's more labor may the labor On the the the exactly as clients the simplifying to is this we and we completely reinforced on have on that's why quarter. our way

Carlos Gomez

And Okay. but That's on clear. approval XP there? there's the Any regarding transaction. from your XP, negotiation very news itself also Fed, with

Milton Maluhy Filho

No.

is XP stakeholders. On made side, among a the negotiations they This the a communication the market. to

We the spinoff. are after anymore not involved

This So do doesn't shareholders with that is have it's us. to directly a with XP our shareholders. negotiation

to incorporation have between the this is communication made materialized. again, a offer make about be they this, that in But that discussion to they're think I expect but conditions, market to an we to willing market shareholders.

we of involved that are process We The only involved not in Fed approval. is are the part with that.

Operator

question from comes next Our with Autonomous. Geoffrey Elliot

Geoffrey Elliot

It's Geoffrey A couple Autonomous. Elliott questions. with of

know go bit Firstly, that brand doing to the right in few you've terms for be a last past and the separate in trying been been with on iti, what critical Next It sounds a I of has years. of what you're Bradesco after that different And clients. it said Itaú. digital doing bank, like strategy wouldn't

you're that different? can what doing So understand us you help is

Milton Maluhy Filho

your Thank question. very Okay. for you much, Geoffrey,

to from within very a This at strategy As the account -- was evolved have that clients. to is profile to bank bank, we a something made full that experience deliver so this separate this the the the offers the is And that said is model our our beginning, payment We digital have not platform. before. account mentioned it's bank. to one I our and experience of business different to clients

platforms clients. for did different to on evolution of separate transformation the doesn't inside platforms saw the you focused, is this. if is deliver the business from -- same And on value and in slide, the clients, because as a And we basically and where we'll and like This previous transformation. this kept no way digital is So that specific demand a a with But bank. digital there mean process if decided that. somehow banking iti. the proposition the we from our have digital bank necessary, is way be delivering, very bank This businesses can it's and this we future we our something full young

that inside profile a this and characteristics. Itaú business this So has is

Geoffrey Elliot

obviously And the down question, then the current second during quarter. account fees,

impact You so anyway of their and to you money more transfers, mentioned there a the they don't any downgrading access seeing to the package expensive for checking evidence becoming Are free get of have dock them they those? free. account edgy pay packages transfers can customers because

Milton Maluhy Filho

Perfect.

I think there are X answers for your question here.

features have First interesting with are capability to on to on those needs bring of packages much the new the for the wholesale the packages much feature have client. more we and we the more all, buy that of we aligned a the somehow are changing and in a side trying -- embed as clients

something if are was we stock relevant. So and very changing hedge

they the We features and are bringing client wish. can keep so new the serve if package

hand, is view the have clear approach. our clients, very other very, this the On and suitability to we a

be we revenues lose that we migrating clients fit term. even So though the specific will short don't in a to package

not the So to of that here, migrate it's the with suitability the usage of are lifetime investing and again, the confirmed client, the package value clients. idea

of the very to packages, ones. cheaper some packages, And different client that package we and doing that we'll is end that him So are a of if migrating the try in way. a features, we'll reinvent be user at positive to not

is we we and important the suitability this when that needs metric the look decision. client of the make So most

So this our is approach.

expect, we in working this view. So this line are in pressure coming years, the and yes, towards we

Operator

[Operator Instructions] UBS. next Thiago question Our Batista with comes from

Thiago Batista

you is X on that I have feasible. But was Actually, call, In Portuguese X one, on about the first not that mentioned XX%. questions. is ROE a follow-up. to the or time, back 'XX ROE the difficult levels an very

your was, say, Q, Looking let's ROE for the XX.X%. first

of you So you a your in I'm let's branch. future? not Honestly, more the correctly bit give this office, The plan? back change recurring again of do details is if not this a one restructure is, this is near that the believe be simplification I'm way this in should of plan. a plan. second of if about of Can got type little profitability say, the the sure the

bit plan? a can you of if this on details little give more So

Milton Maluhy Filho

both Okay, Thiago, questions. of let me answer try your to

in terms On you the guide of on won't one, first I give equity. a return

return implied of if a of working guidance you at had gave we quarter, equity. In performance is released of on had This guidance. we last a towards something we are, that than our better -- We terms midpoint look guidance and if look this in the XX.X% that. you what our quarter, course,

on you course, see, quarterly Of a guide as don't can we but basis.

provide the at for now. I you guided you clients. attention by available equity. about by the of the own keep is here will branches, This information. So the best the XX.X% the to for the have we can we I the believe end, this have different just operation an this will here past, of is this on And the -- something had give We explained it question, the the this, the owners merge X the the we look now teams from what guidance, and is terms this of that the course, store. we to talking responsible to have Most XXXX, provisions idea much information the mentioned, of and We commercial that want have to integrating I care We the we guidance but the the And area your X best what second you And as in information I return you commercial positions can branches. in is say right I are on internally here which in want X geographic In that the this to operational here. all may are again, and midpoint of very year-end, year. decision. okay? the this give can the we as take And client. of what why -- of This is And of in our be And we announced different best if second including. we impact. you that responsible area. is is is made for made, to way focused teams decision don't someone is owner. the the we of was used And is

Operator

Our Natalia next from JPMorgan. comes question Corfield with

Natalia Corfield

I questions. have X

than of plans And your your what for capital XXXX? The remind minimum an statutory, And Brazil just very year, plan to in I'd first me if restricted dividend dividend. what's now because you could for in with would be ATXs X to thoughts in this also for one so relates year, right are the issuance your on markets, the also call terms of of year? like your to international terms that on have what were You update helpful. on you of next a so that? know is your last distribute more going in

Milton Maluhy Filho

much, very Thank you Natalia.

question. through go me first your let So

X pay keep it. we still the dividends, -- the to of policy, same what Bank Central We have dividend same. We with policy from XX.X% change don't our paying the the we release exceeds capital. but any restriction it's Our of Level the way didn't now

and And how the So payment. reach the minimum to the the first made is this regulatory was we payment that dividend we depend XX% amount. which in in statutory XX.X% pay it quarter will fast exceed

keep more so than then this we XX% until So the we the that. XX.X%, idea to distribute can here is reach

So appetite this the the for We risk is the policy. the kept and for XX.X% we capital policy, kept in now.

is this So don't that. basically think. I

Natalia Corfield

A follow-up.

X the XX.X%, mean or you when -- XX.X% CETX? the On is XX.X% Tier

Milton Maluhy Filho

Level one.

market, So our It we international have on approach. be that will a plan the don't on question anticipation ATX includes in So market here second okay? what the well, depends for on the conditions. as

for instruments market and on as looking always are We foreign well. local hybrid the

So will will it on it depend on price, conditions. depend

where to Our like base. the always the market, our is. We propositions, here diversify talking are investors to teams understanding having market

on important offshore in it's depend and the it in market have think I local market. conditions. to market the will bonds But

every market, opportunity. now will But will debt is the market following anticipate difficult it our team to in market international conditions. opportunity capital on If be up an So that. doing be do something there to we'll again it's depend

Operator

Mr. This statements. this time, concludes your you may at closing question-and-answer Milton Maluhy, today's with session. proceed

Milton Maluhy Filho

Well, the thank for interest for call. you all questions, conference in our the participating in

Stay here. information catch we to you safe. I new lot Thank saw, up changed very it much. sooner. Bye-bye. we a a hope well. Stay lot, provide you of As and

Operator

Thank our conclude today. does Conference Unibanco you That for Holding for your Earnings participation. Itaú very much

may You now disconnect.