Itau Unibanco's recurring net income totals R$ 10.5 billion in the first nine months of 2012 and delinquency decreases

SAO PAULO, Oct. 23, 2012 /PRNewswire/ --

• In the first nine months of 2012, recurring net income totaled R$10.5 billion, a decrease of 3.2% in relation to the same period of 2011. The annualized return on average equity was 19.0%.
• The efficiency ratio reached 45.0% in the nine months to September, down from 47.4% in the same period of 2011, keeping Itau Unibanco as the most efficient bank in Brazil.
• Total assets grew 14.7% year-on-year and reached R$960.2 billion on September 30, 2012.
• The total adjusted credit portfolio (including endorsements, sureties and private securities) increased 10.0% year-on-year and totaled R$437.6 billion. Excluding the vehicle portfolio, the growth was 13.6% year-on-year.
• The NPL ratio for operations overdue for more than 90 days dropped to 5.1% in September 2012, with perspective of improvement in the coming periods.
• Total funds (free, raised and managed assets) amounted to R$1.26 trillion.
• In September, Itau Unibanco announced investments of R$ 10.4 billion in technology, innovation and services between 2012 and 2015.
• On September 24, and in subsequent trading sessions, Itau Unibanco acquired 48.0% of Redecard by means of a Tender Offer, for a total value of $ 11.3 billion. Itau Unibanco's stake on Redecard reached 98.0%.

At the end of the third quarter of 2012, Itau Unibanco's recurring net income for the first nine months of 2012 totaled R$10.5 billion and the return on average equity was 19.0%.  One of the highlights was the efficiency ratio, which reached 45.0% in the first nine months of 2012, improving 240 basis points from the same period of the previous year, thus reinforcing Itau Unibanco's position as the most efficient bank in Brazil.

The total adjusted credit portfolio (including endorsements, sureties and private securities) reached R$437.6 billion, an increase of 10.0% in relation to the quarter ended September 30, 2011. Year-on-year, loans to individuals showed an increase of 3.0%, driven by mortgage loans which grew 32.4%, payroll loans which grew 29.7%, and by our portfolio in Argentina, Chile, Paraguay and Uruguay which grew 63.4%. In the same period, loans to companies showed a growth of 12.7%, led by the increase of 17.7% in the corporate portfolio and of 34.8% in loans to companies in Argentina, Chile, Paraguay and Uruguay.  

Itau Unibanco was the first bank to announce a reduction in its credit card charges through the launch of Itaucard 2.0 in August 2012. The product is already available to all clients, with charges ranging from 3.99% and 5.99% a year, and more than 300,000 clients have acquired the product since its launch.

As a recognition of its work, Itau Unibanco was considered a leading bank in the international banking industry in three categories of the Dow Jones Sustainability World Index (DJSI) in its 2012/2013 edition. The bank, which was chosen for the 13th consecutive time to compose the index, was the leading bank in Human Capital Development, Strategic Stakeholder Engagement and Anticrime and Fraud Policies/Actions.

In July, the rating agency Standard & Poor's disclosed its revision of the ratings of Brazilian banks, and the ratings attributed to Itau Unibanco Holding were upgraded to: Foreign Currency (Short term), from A-3 to A-2 and Local Currency (Short term), from A-3 to A-2.

Technology – On September 25, Itau Unibanco announced investments of R$10.4 billion in technology, innovation and service between 2012 and 2015. Considered one of the largest private investments ever made for the growth of the Brazilian economy, the bank's purpose is to increase efficiency, focusing on clients, in the search for excellence in service quality.

This strategy includes the opening of a new data center in Mogi Mirim (State of Sao Paulo), with investments of R$ 2.3 billion for its construction and operation. This is one of the largest technology centers in the world, with capacity to support the expansion of Itau Unibanco operations over the next decades.

Redecard - On September 24, Itau Unibanco acquired 44.4% of Redecard by means of a Tender Offer for the purchase price of R$35.00, totaling R$10.5 billion. Since the auction, additional 3.6% Redecard shares were acquired. With these acquisitions, Itau Unibanco's interest in the capital of Redecard was increased to 98.0%, a total investment of R$ 11.3 billion. The bank expects to complete the purchase of 100% of the share until the end of 2012. On October 18, 2012, the Brazilian Securities and Exchange Commission (CVM) canceled the registration of Redecard as a public company. The advantages of this operation include greater flexibility in the offer of products and payment services and the synergies arising from the integration of some support areas. Redecard remains as an independent company in its operations, working together with other banks with greater flexibility in pricing and meeting demands.

Further information on results is available on Itau Unibanco website at www.itau-unibanco.com/ir.

Contact:
Geraldo Soares
+55-11-2794-3547