Itaú Unibanco Holding S.A. Announcement to the Market - IFRS - Results for the 2nd Quarter of 2018
Disclosure of results for the second quarter and first half of 2018, according to International Financial Reporting Standards - IFRS
SÃO PAULO, July 30, 2018 /PRNewswire/ -- We present below the differences between our financial statements in BRGAAP and in International Financial Reporting Standards – IFRS.
As from January 1, 2018, IFRS 9 came into effect, the accounting standard that replaces IAS 39 in the treatment of Financial Instruments. The new standard is structured to encompass the pillars of classification, measurement of financial assets and impairment and was applied retrospectively by Itaú Unibanco Holding.
The complete consolidated financial statements under IFRS for the first half of 2018 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 Reclassifications 2 |
IFRS |
BRGAAP |
Adjustments and Reclassifications 2 |
IFRS |
|
Jun/30/2018 |
Dec/31/2017 |
||||||
Total Assets |
1,542,684 |
(73,589) |
1,469,095 |
1,503,503 |
(67,264) |
1,436,239 |
|
Cash and Cash Equivalents, Compulsory Deposits and Financial Assets At Amortized Cost 3 4 6 |
1,073,167 |
9,467 |
1,082,635 |
1,031,742 |
28,310 |
1,060,052 |
|
(-) Estimated Loss at Amortized Cost 5 |
(35,019) |
(1,107) |
(36,127) |
(36,325) |
(412) |
(36,737) |
|
Financial Assets at Fair Value Through Other Comprehensive Income 4 |
104,216 |
(51,399) |
52,817 |
103,538 |
(51,305) |
52,233 |
|
(-) Expected Loss at Fair Value Through Other Comprehensive Income 5 |
(3,299) |
3,213 |
(86) |
(2,892) |
2,808 |
(84) |
|
Financial Assets at Fair Value Through Profit or Loss 4 |
307,686 |
(27,519) |
280,167 |
308,570 |
(35,034) |
273,536 |
|
Tax Assets 7 |
54,638 |
(7,663) |
46,975 |
59,648 |
(15,399) |
44,249 |
|
Investments in Associates and Jointly Controlled Entities, Goodwill, Fixed Assets, Intangible Assets, Assets Held for Sale and Other Assets |
41,295 |
1,418 |
42,713 |
39,224 |
3,766 |
42,990 |
|
Total Liabilities |
1,407,686 |
(79,366) |
1,328,320 |
1,364,565 |
(72,683) |
1,291,883 |
|
Financial Assets at Amortized Cost 3 6 |
1,119,760 |
(75,393) |
1,044,367 |
1,088,090 |
(63,506) |
1,024,584 |
|
Financial Assets at Fair Value Through Profit or Loss 4 |
31,923 |
753 |
32,676 |
26,930 |
281 |
27,211 |
|
Expected Loss (Loan Commitments and Financial Guarantees) 5 |
1,948 |
3,079 |
5,027 |
1,950 |
2,972 |
4,922 |
|
Provision for Insurance and Pension Plan |
188,429 |
1,064 |
189,493 |
180,445 |
787 |
181,232 |
|
Provisions |
19,192 |
- |
19,192 |
19,736 |
- |
19,736 |
|
Tax Liabilities 7 |
10,094 |
(5,112) |
4,982 |
20,440 |
(12,604) |
7,836 |
|
Other Liabilities |
36,340 |
(3,758) |
32,582 |
26,974 |
(612) |
26,362 |
|
Total Stockholders' Equity |
134,998 |
5,777 |
140,775 |
138,938 |
5,418 |
144,356 |
|
Non-controlling Interests |
13,240 |
1,198 |
14,439 |
12,014 |
964 |
12,978 |
|
Total Controlling Stockholders' Equity 8 |
121,758 |
4,579 |
126,336 |
126,924 |
4,454 |
131,378 |
|
1 BRGAAP represents accounting practices in force in Brazil for financial institutions, according to regulation of the Central Bank of Brazil; |
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2 Resulted from reclassification of assets and liabilities and other effects from the adoption of IFRS; |
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3 Resulted from the elimination of transactions between parent company and exclusive funds (particularly PGBL and VGBL funds), which are consolidated under IFRS; |
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4 Refer to reclassification of financial assets between measurement categories at fair value and amortized cost; |
|||||||
5 Application of criterion for calculation of Expected Loss as set forth by IFRS; |
|||||||
6 Difference in accounting, particularly from Foreign Exchange Portfolio, which are now be presented as net effect between Assets and Liabilities; |
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7 Difference in accounting, particularly differed taxes, which are now accounted for as net effect between Assets and Liabilities in each one of the consolidated companies; |
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8 Reconciliation of Controlling Stockholders' Equity is presented in the following table. |
Below is the reconciliation of Results to Stockholders' Equity, with the conceptual description of major adjustments.
Reconciliation |
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R$ million |
|||||||
Stockholders' Equity * |
Result * |
||||||
Jun/30/2018 |
2nd Q/18 |
1st Q/18 |
2nd Q/17 |
1st H/18 |
1st H/17 |
||
BRGAAP - Values Attributable to Controlling Stockholders |
121,758 |
6,244 |
6,280 |
6,014 |
12,524 |
12,066 |
|
(a) Expected Loss - Loan and Lease Operations and Other Financial Assets |
(502) |
(459) |
91 |
163 |
(368) |
(187) |
|
(b) Adjustment to Fair Value of Financial Assets |
135 |
(57) |
(75) |
40 |
(132) |
202 |
|
(c) Acquisition of Interest in Porto Seguro Itaú Unibanco Participações S.A. |
446 |
(2) |
(2) |
(2) |
(4) |
(4) |
|
(d) Criteria for Write-Off of Financial Assets |
2,271 |
(20) |
45 |
(186) |
25 |
(109) |
|
(e) Financial Lease Operations |
433 |
(40) |
(40) |
(34) |
(80) |
(57) |
|
(f) Other adjustments |
1,795 |
74 |
90 |
336 |
164 |
483 |
|
IFRS - Values Attributable to Controlling Stockholders |
126,336 |
5,740 |
6,389 |
6,331 |
12,129 |
12,394 |
|
IFRS - Values Attributable to Minority Stockholders |
14,439 |
154 |
168 |
318 |
322 |
261 |
|
IFRS - Values Attributable to Controlling Stockholders and Minority Stockholders |
140,775 |
5,894 |
6,557 |
6,649 |
12,451 |
12,655 |
|
* Events net of tax effects |
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Differences between IFRS and BRGAAP Financial Statements |
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(a) In the adoption of IFRS 9, there was a change in the calculation model of incurred loss (IAS 39) to expected loss, considering forward-looking information. On BRGAAP, the concept of Expected Loss is used, pursuant to BACEN Resolution No. 2,682/99.9 |
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(b) Under IFRS, stocks and quotas classified as permanent investments were measured at fair value and its gains and losses were recorded directly in Result. Additionally, there was a change in the model of classification and measurement of financial assets due to the new categories introduced by IFRS 9. |
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(c) Under IFRS, the effect of accounting at fair value of the acquisition of interest in Porto Seguro Itaú Unibanco Participações S.A. was recognized. |
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(d) Criterion for write-off of financial assets on IFRS considers the recovery behavior. |
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(e) Under IFRS (IAS 17) the financial lease operations are recorded as Fixed Assets, as a contra-entry of Other Financial Liabilities. Under BRGAAP, as from September 30, 2015, the consideration of these transactions are now recorded in result, in accordance with CMN Resolution No. 3,617/08. |
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(f) Other Adjustments is mainly composed of reversal of Amortizations of Goodwill under BRGAAP. |
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9 More details in the Complete Financial Statements for the first half of 2,018. |
For comparison purposes, we present on the table below the Result and Recurring Result in IFRS and BRGAAP.
R$ million |
||||||
Recurring Result |
2nd Q/18 |
2nd Q/17 |
||||
BRGAAP |
IFRS |
Variation |
BRGAAP |
IFRS |
Variation |
|
Result - Attributale to Controlling Stockholders |
6,244 |
5,740 |
(504) |
6,014 |
6,331 |
317 |
Exclusion of the Non-Recurring Events |
138 |
17 |
(121) |
155 |
31 |
(123) |
Goodwill Amortization |
150 |
- |
(150) |
123 |
- |
(123) |
Provisions for Contingencies |
7 |
7 |
- |
55 |
55 |
- |
Impairment |
10 |
10 |
- |
7 |
7 |
- |
Others |
(29) |
- |
29 |
(31) |
(31) |
- |
Recurring Result - Attributable to Controlling Stockholders |
6,382 |
5,757 |
(625) |
6,169 |
6,362 |
194 |
The tables in this report show the figures in million. Variations and summations, however, were calculated in units.
São Paulo, July 30, 2018.
Alexsandro Broedel
Group Executive Finance Director and Head of Investor Relations
Contact:
Itaú Unibanco - Corporate Communication
+55 (11) 5019-8880 / 8881 - [email protected]
SOURCE Itaú Unibanco Holding S.A.
Related Links
https://www.itau.com.br/investor-relations
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