Itaú Unibanco Holding S.A. Announcement to the Market - IFRS - Results for the 1st Quarter of 2018

USA - English

• Brazil - Português

Comparison between BRGAAP¹ and IFRS 

R$ million

BRGAAP

BRGAAP

Mar/31/2018

Dec/31/2017

Total Assets

1,524,354

(82,947)

1,441,407

1,503,503

(67,264)

1,436,239

Cash and Cash Equivalents, Compulsory Deposits and Financial Assets At Amortized Cost ^{3 4 5}

1,039,613

3,222

1,042,835

1,031,742

28,310

1,060,052

(-) Estimated Loss at Amortized Cost ⁵

(35,883)

(661)

(36,544)

(36,325)

(412)

(36,737)

Financial Assets at Fair Value Through Other Comprehensive Income ⁴

109,277

(48,911)

60,366

103,538

(51,305)

52,233

(-) Expected Loss at Fair Value Through Other Comprehensive Income ⁵

(3,003)

2,920

(83)

(2,892)

2,808

(84)

Financial Assets at Fair Value Through Profit or Loss ⁴

317,345

(26,528)

290,817

308,570

(35,034)

273,536

Tax Assets ⁷

54,950

(14,198)

40,752

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

42,055

1,209

43,264

39,224

3,766

42,990

Total Liabilities

1,393,624

(88,605)

1,305,018

1,364,565

(72,683)

1,291,883

Financial Assets at Amortized Cost ^{3 6}

1,100,081

(78,219)

1,021,862

1,088,090

(63,506)

1,024,584

Financial Assets at Fair Value Through Profit or Loss ⁴

34,815

959

35,774

26,930

281

27,211

Expected Loss (Loan Commitments and Financial Guarantees) ⁵

1,863

2,971

4,834

1,950

2,972

4,922

Provision for Insurance and Pension Plan

185,492

800

186,292

180,445

787

181,232

Provisions

19,524

-

19,524

19,736

-

19,736

Tax Liabilities ⁷

17,016

(11,554)

5,462

20,440

(12,604)

7,836

Other Liabilities

34,833

(3,563)

31,270

26,974

(612)

26,362

Total Stockholders' Equity

130,730

5,659

136,389

138,938

5,418

144,356

Non-controlling Interests

12,219

1,139

13,358

12,014

964

12,978

Total Controlling Stockholders' Equity ⁸

118,511

4,520

123,031

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;

² Resulted from reclassification of assets and liabilities and other effects from the adoption of IFRS;

³ Resulted from the elimination of transactions between parent company and exclusive funds (particularly PGBL and VGBL funds), which are consolidated under IFRS;

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;

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;

⁸ Reconciliation of Controlling Stockholders' Equity is presented in the following table.

Reconciliation

R$ million

Stockholders'
Equity *

Result *

Mar/31/2018

 1st Q/18

 1st Q/17

 BRGAAP - Values Attributable to Controlling Stockholders

118,511

6,280

6,052

(a) Expected Loss - Loan and Lease Operations and Other Financial Assets

(48)

(350)

(b) Adjustment to Fair Value of Financial Assets

(367)

(75)

163

(c) Acquisition of Interest in Porto Seguro Itaú Unibanco Participações S.A.

448

(2)

(2)

(d) Criteria for Write-Off of Financial Assets

2,291

45

77

(e) Financial Lease Operations

473

(40)

(24)

(f) Other adjustments

1,723

90

147

IFRS - Values Attributable to Controlling Stockholders

123,031

6,389

6,063

IFRS - Values Attributable to Minority Stockholders

13,358

168

(57)

IFRS - Values Attributable to Controlling Stockholders and Minority Stockholders

136,389

6,557

6,006

* Events net of tax effects

(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

(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.

(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.

(d) Criterion for write-off of financial assets on IFRS considers the recovery behavior.

(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.

(f) Other Adjustments is mainly composed of reversal of Amortizations of Goodwill under  BRGAAP.

⁹ More details in the Complete Financial Statements for the first quarter of 2,018.

R$ million

1st Q/17

BRGAAP

IFRS

Variation

BRGAAP

IFRS

Variation

Result - Attributable to Controlling Stockholders

6,280

6,389

109

6,052

6,063

11

Exclusion of the Non-Recurring Events

139

(7)

(146)

123

(11)

(134)

Goodwill Amortization

146

-

(146)

125

-

(125)

Civil Lawsuits - Economic Plans

(97)

(97)

-

18

18

-

Impairment

92

92

-

-

-

-

Others

(2)

(2)

-

(20)

(29)

(10)

Recurring Result - Attributable to Controlling Stockholders

6,419

6,383

6,176

6,052