Itaú Unibanco Holding S.A. Announcement to the Market - IFRS - Result for the 2nd Quarter and 1st Half of 2017
SÃO PAULO, Aug. 1, 2017 /PRNewswire/ -- We present below the differences between our financial statements in BRGAAP1 and in International Financial Reporting Standards - IFRS. We emphasize that the main difference in the result and equity relates to the allowance for loan losses, that uses the concept of incurred loss in IFRS and of expected loss in BRGAAP.
The complete consolidated financial statements under IFRS for the first half of 2017 are available at our website: www.itau.com.br/investor-relations
Comparison between BRGAAP1 and IFRS |
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R$ million |
||||||
Balance Sheet |
BRGAAP |
Adjustments and |
IFRS |
BRGAAP |
Adjustments and |
IFRS |
Jun/30/2017 |
Dec/31/2016 |
|||||
Total Assets |
1,448,335 |
(87,113) |
1,361,222 |
1,427,084 |
(73,843) |
1,353,241 |
Cash and Cash Equivalents, Reserve Requirements, Interbank Deposits, Securities Under Repurchase Agreements, Financial Assets and Derivatives³ |
789,288 |
(15,630) |
773,658 |
767,222 |
(16,395) |
750,827 |
Loan Operations |
479,875 |
(5) |
479,870 |
491,225 |
(859) |
490,366 |
(-) Allowance for Loan Losses4 |
(35,533) |
7,872 |
(27,661) |
(35,986) |
9,014 |
(26,972) |
Other Financial Assets5 |
114,166 |
(61,500) |
52,666 |
106,458 |
(52,541) |
53,917 |
Tax Assets6 |
60,602 |
(18,076) |
42,525 |
61,210 |
(16,936) |
44,274 |
Investments in associates and jointly controlled entities, Goodwill, Fixed and Intangible Assets, Assets Held for Sale and Other Assets |
39,938 |
227 |
40,164 |
36,954 |
3,875 |
40,829 |
Current Liabilities and Long Term Liabilities |
1,318,152 |
(95,422) |
1,222,730 |
1,299,869 |
(81,442) |
1,218,427 |
Deposits |
352,327 |
- |
352,327 |
329,414 |
- |
329,414 |
Deposits Received Under Securities Repurchase Agreements3 |
339,123 |
(17,201) |
321,922 |
366,038 |
(16,874) |
349,164 |
Financial Liabilities Held for Trading, Derivatives, Interbank and Institutional funding |
255,777 |
478 |
256,255 |
257,167 |
(228) |
256,939 |
Other Financial Liabilities5 |
124,486 |
(60,755) |
63,731 |
123,604 |
(51,772) |
71,832 |
Reserves for Insurance, Private Pension and Capitalization |
169,747 |
337 |
170,084 |
156,656 |
567 157,223 |
|
Provisions and Other Liabilities |
59,232 |
(5,738) |
53,494 |
49,320 |
(1,301) |
48,019 |
Tax Liabilities6 |
17,460 |
(12,543) |
4,917 |
17,670 |
(11,834) |
5,836 |
Total Stockholders' Equity |
130,183 |
8,309 |
138,492 |
127,215 |
7,599 |
134,814 |
Non-controlling interests |
11,804 |
745 |
12,548 |
11,625 |
607 |
12,232 |
Controlling Stockholders' Equity7 |
118,379 |
7,564 |
125,944 |
115,590 |
6,992 |
122,582 |
1 BRGAAP represents the accounting practices adopted in Brazil for financial institutions, according to regulation of the Brazilian Central Bank; |
Below, the conciliation of the Result and Equity, and the conceptual description of the major adjustments.
Conciliation |
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R$ million |
||||||
Adjustments |
Equity |
Result |
||||
Jun/30/2017 |
2ndQ/17 |
1stQ/17 |
2ndQ/16 |
1stH/17 |
1stH/16 |
|
BRGAAP - Values Attributable to Controlling Stockholders |
118,379 |
6,014 |
6,052 |
5,518 |
12,066 |
10,702 |
(a) Allowance for Loan Losses |
5,622 |
71 |
(149) |
470 |
(78) |
1,061 |
(b) Adjustment to market value of shares and quotas |
209 |
- |
- |
- |
- |
- |
(c) Acquisition of interest in Porto Seguro Itaú Unibanco Participações S.A |
454 |
(3) |
(4) |
(3) |
(7) |
(7) |
(d) Effective interest rate |
(76) |
1 |
- |
8 |
1 |
20 |
(e) Financial Leasing Operation 659 |
(34) |
(24) |
38 |
(58) |
86 |
|
(f) Other adjustments |
697 |
320 |
126 |
(32) |
446 |
(152) |
IFRS - Values Attributable to Controlling Stockholders |
125,944 |
6,369 |
6,001 |
5,999 |
12,370 |
11,710 |
IFRS - Values Attributable to Minority Stockholders |
12,548 |
423 |
(123) |
323 |
300 |
310 |
IFRS - Values Attributable to Controlling Stockholders and Minority Stockholders |
138,492 |
6,792 |
5,878 |
6,322 |
12,670 |
12,020 |
Differences between IFRS and BRGAAP Financial Statements |
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(a) On IFRS (IAS 39), loan losses allowances must be made when there is objective evidence that loan operations have suffered a reduction in its value (Incurred Loss). On BRGAAP, the expected loss model is used 8. |
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8For more details see our Complete Financial Statements for the first half of 2017 |
For comparison purposes, we present on the table below the Result and the Recurring Result according to the IFRS and the BRGAAP.
R$ million |
||||||||||||
Recurring Result |
2ndQ/17 |
1stQ/17 |
1stH/17 |
1stH/16 |
||||||||
BRGAAP |
IFRS |
Variation |
BRGAAP |
IFRS |
Variation |
BRGAAP |
IFRS |
Variation |
BRGAAP |
IFRS |
Variation |
|
Result - Attributable to Controlling Stockholders |
6,014 |
6,369 |
355 |
6,052 |
6,001 |
(51) |
12,066 |
12,370 |
304 |
10,702 |
11,710 |
1,008 |
Exclusion of the Non-Recurring Events |
155 |
31 |
(123) |
123 |
(11) |
(134) |
278 |
20 |
(258) |
107 |
59 |
(48) |
Goodwill Amortization |
123 |
- |
(123) |
125 |
- |
(125) |
248 |
- |
(248) |
188 |
- |
(188) |
Liability Adequacy Test - LAT |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(140) |
- |
140 |
Provision for Contingencies |
55 |
55 |
- |
18 |
18 |
- |
73 |
73 |
- |
63 |
63 |
- |
Civil Lawsuits - Economic Plans |
22 |
22 |
- |
18 |
18 |
- |
40 |
40 |
- |
56 |
56 |
- |
Tax and Social Security |
33 |
33 |
- |
- |
- |
- |
33 |
33 |
- |
6 |
6 |
- |
Impairment |
7 |
7 |
- |
- |
- |
- |
7 |
7 |
- |
9 |
9 |
- |
Program for the Settlement or Installment Payment of Taxes |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(12) |
(12) |
- |
Others |
(31) |
(31) |
- |
(20) |
(29) |
(10) |
(51) |
(60) |
(10) |
- |
- |
- |
Recurring Result - Attributable to Controlling Stockholders |
6,169 |
6,400 |
231 |
6,176 |
5,990 |
(186) |
12,345 |
12,391 |
46 |
10,809 |
11,769 |
960 |
The tables in this report show the figures in millions. Variations and summations, however, are calculated in units.
Marcelo Kopel
Investor Relations Officer
SOURCE Itaú Unibanco Holding S.A.
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