SAO PAULO, April 28, 2017 /PRNewswire/ -- The study commissioned by Itau aims to measure the bank's contribution to the domestic economy as well as verifying performance indicators and reinforcing its commitment to sustainable growth. As such, Itau is seeking to learn more about the socio-economic impacts of its operations and activities in Brazil. This is the main addition to the the latest versions of Itau Unibanco's Integrated Report and Consolidated Annual Report for 2016, which have just been published and are available on the http://www.itau.com.br/relatorio-anual website. These publications also contain information on financial and non-financial performance, structure, activities and operations as well as the strategy for creating value across the full spectrum of our stakeholders.
Conducted in partnership with Rever Consulting, the study shows that in 2015 alone, Itau Unibanco and certain personal and corporate credit products (defined in accordance with their representativeness) generated the equivalent of R$ 294 billion to the Brazilian GDP, corresponding to 5% of the total output for that year (see info-graphic below). In salaries alone, the bank paid out R$ 19 billion; R$ 11 billion was paid out to suppliers and R$ 9 billion was paid in taxes. For every R$ 1 of GDP generated directly by Itau and its analyzed products, it contributed the equivalent of R$ 4.16 to the total Brazilian GDP.
Particularly noteworthy are the impacts that Itau Unibanco has on employment. In Brazil, the operations of Itau Unibanco Holding were responsible for more than 1.1 million direct, indirect and induced jobs in 2015. This breaks down as follows: more than 83,000 employees; 175,500 indirect jobs if the supply chain is taken into account; and 861,000 jobs induced by the consumption of households and in the form of public expenditures. The study also reveals that for each direct job provided by Itau Unibanco, resulting from its operations and the analyzed products, the bank contributes to the maintenance of a further 64 jobs nationwide.
The full reports in PDF in Portuguese and English as well as a video of chief executive officer, Roberto Setubal, and chairman of the Board of Directors, Pedro Moreira Salles, discussing results for 2016 are available for download on the http://www.itau.com.br/relatorio-anual website which has also been formatted for access via mobile phone. "Transparency is one of our key values and through these reports, we are able to share details of our operations and the contribution of the bank's activities to society," said Alexsandro Broedel, Itau Unibanco's executive director for Finance.
Ethics and Ombudsman
Another new feature of the new editions of the Integrated Report and Consolidated Annual Report for 2016 includes the improvements made to the bank's Ethics and Ombudsman's areas since the second half of 2015. The institution's Ombudsman – the inhouse ombudsman's channel – now reports directly to the chief executive officer. The main objective of this rearrangement within Itau Unibanco's overall structure is to reinforce the area's independence, since the channel is designed for employee use in order to help resolve interpersonal disputes and interests in the workplace. In addition, the Ethics area has now been integrated into the bank's Compliance structure, in line with the best international practices of governance.
During 2016, 1,227 complaints were received, with 670 subsequently being subject to investigation. One hundred forty seven investigations are still pending, 324 were handled through guidance or counselling and 86 were passed on to be dealt with by other areas. More than 180 allegations received prior to 2016 were solved, all of them following an investigation. In 2016, 50.2% of complaints investigated were deemed well-founded. The principal types of behavior identified in these cases were disrespect (44%), failure to comply with bank rules and guidelines (26%) and intimidation (10%).
Itau Unibanco's 2016 Consolidated Annual Report and the Integrated Report include some important statistics in relation to the bank's activities in the technological area. Some of them are:
- Up to December 2016, 73% of all bank transactions were routed through the digital channels representing a total 10.9 billion, up 21% from 2015.
- Itau Unibanco ended 2016 with 135 digital branches open from 7:00 a.m. to midnight – an increase of 40% compared to 2015.
- The bank has equipped all its managers in the corporate customer segment with tablets and smartphones.
- The Itau AbreContas (open an account) app was launched, resulting in the opening of more than 36 thousand accounts in just 2 months.
Itau Unibanco is a pioneer among Brazilian financial institutions and one of the first banks in the world to sign up to the pilot program of the International Integrated Reporting Council (IIRC) integrated reports in 2013. In 2014, the bank published the first version of its Report within the IIRC framework guidelines. In the same year, it published its first Consolidated Annual Report combining the Annual Sustainability Report, the 20F Form and the Debt Prospectus (Medium Term Notes). Both reports are reviewed by an independent auditor, reinforcing the emphasis on integrity and consistency of the data.
The Integrated Report is designed to provide a more cohesive and efficient approach to preparing corporate reports. The purpose is to improve the quality of information available to investors, ensuring a more efficient and productive allocation of capital. The principal objective of an integrated report is to explain to entities sourcing financial capital how an organization creates value over time.
With the adoption of the Integrated Report in 2013 Itau Unibanco has been the recipient of three accolades – BeyondBanking Awards (awarded by IBD – Inter-American Development Bank); Latin American Excellence Awards (Communication Director Magazine); and Aberje Award (Brazilian Association of Corporate Communication). In addition, the bank´s publications have set benchmark for companies in various sectors, among them, the Brazilian Development Bank - BNDES and EDP as well as being a source of research for academia.
Approximately 300 companies worldwide have already adopted the Integrated Report while a further 1,500 – including 120 Brazilian companies – are expected to use this medium shortly. "The Integrated Report is critical to the reputation of companies, generating as it does greater confidence in corporate governance. Overtime, it is quite likely that this model will become the standard for corporate reports. Organizations will cease to produce a plethora of communications, static and unrelated to one another. This will be made possible by an integrated process of thinking based on principles such as the interconnectivity of information," Broedel adds.
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SOURCE Itau Unibanco Holding S.A.