ITUB Itau Unibanco Holding SA

R$ million

BRGAAP

Adjustments and Reclassifications²

IFRS

BRGAAP

Adjustments and Reclassifications²

IFRS

Sep/30/2017

Dec/31/2016

Total Assets

1,466,000

(92,482)

1,373,518

1,427,084

(73,843)

1,353,241

Cash and Cash Equivalents, Reserve Requirements, Interbank Deposits, Securities Under Repurchase Agreements, Financial Assets and Derivatives³

814,453

(16,528)

797,926

767,222

(16,395)

750,827

Loan Operations

467,831

218

468,049

491,225

(859)

490,366

(-) Allowance for Loan Losses⁴

(34,702)

7,340

(27,362)

(35,986)

9,014

(26,972)

Other Financial Assets⁵

119,494

(63,317)

56,177

106,458

(52,541)

53,917

Tax Assets⁶

59,954

(20,732)

39,221

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

38,970

537

39,507

36,954

3,875

40,829

Current Liabilities and Long Term Liabilities

1,330,861

(101,034)

1,229,827

1,299,869

(81,442)

1,218,427

Deposits

359,904

-

359,904

329,414

-

329,414

Deposits Received Under Securities Repurchase Agreements³

336,951

(17,758)

319,193

366,038

(16,874)

349,164

Financial Liabilities Held for Trading, Derivatives, Interbank and Institutional funding

248,051

5

248,055

257,167

(228)

256,939

Other Financial Liabilities⁵

130,167

(62,664)

67,503

123,604

(51,772)

71,832

Reserves for Insurance, Private Pension and Capitalization

177,521

331

177,852

156,656

567

157,223

Provisions and Other Liabilities

56,559

(5,795)

50,764

49,320

(1,301)

48,019

Tax Liabilities⁶

21,708

(15,153)

6,556

17,670

(11,834)

5,836

Total Stockholders' Equity

135,139

8,552

143,691

127,215

7,599

134,814

Non-controlling interests

11,508

773

12,281

11,625

607

12,232

Controlling Stockholders' Equity⁷

123,631

7,779

131,410

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;

² Resulted from reclassifications between assets and liabilities and other effects from IFRS adoption;

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

⁴ Implementation of the criteria for calculating the Allowance for Loan Losses as defined in IFRS;

⁵ Difference in accounting, mainly for Foreign Exchange Portfolio, which started to be considered as net effect of Assets and Liabilities;

⁶ Difference in accounting, mainly for deferred taxes, which are now treated as a net effect of Assets and Liabilities in each of the consolidated companies;

⁷ Conciliation of Controlling Stockholders' Equity is presented in the following table.

Conciliation

Equity

Result

Sep/30/2017

3^rdQ/17

2^ndQ/17

3^rdQ/16

Jan-Sep/17

Jan-Sep/16

BRGAAP - Values Attributable to Controlling Stockholders

123,631

6,077

6,014

5,394

18,143

16,097

(a) Allowance for Loan Losses

5,548

(89)

71

24

(166)

1,085

(b) Adjustment to market value of shares and quotas

305

-

-

-

-

-

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

453

(4)

(3)

(4)

(11)

(11)

(d) Effective interest rate

(77)

(2)

1

5

(1)

25

(e) Financial Leasing Operation

626

(33)

(34)

37

(91)

123

(f) Other adjustments

924

98

320

105

544

(47)

IFRS - Values Attributable to Controlling Stockholders

131,410

6,048

6,369

5,561

18,418

17,271

IFRS - Values Attributable to Minority Stockholders

12,281

(130)

423

61

170

371

IFRS - Values Attributable to Controlling Stockholders and Minority Stockholders

143,691

5,918

6,792

5,622

18,588

17,642

Differences between IFRS and BRGAAP Financial Statements

(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 used⁸.

(b) On IFRS (IAS 39 and 32), stocks and quotas classified as permanent investments were measured at fair value and its gains and losses were recorded directly on Equity, with no impact on the income statement of the period.

(c) On IFRS, the effect of accounting at fair value the acquisition of the participation in Porto Seguro Itaú Unibanco Participações S.A. was recognized.

(d) On the IFRS (IAS 39), the assets and financial liabilities measured at amortized cost are recognized according to the methodology of effective interest rate, which appropriates the revenues and costs directly attributed to the acquisition, issue or disposal for the period of operation. On BRGAAP, the recognition of expenses and revenues from fees occurs at the time of contracting these operations.

(e) Under IFRS (IAS 17) the financial leasing operations are recorded as Fixed Assets on the other hand of Other Financial Liabilities. On BRGAAP, as of September 30, 2015, the consideration of these transactions are now recorded in income in accordance with CMN Resolution No. 3,617/08.

(f) Other Adjustments mainly comprise the difference in the eligibility of operations of the Cash Flow Hedge for purposes of IFRS and the reversal of the Goodwill Amortizations pursuant the BRGAAP.

⁸ For more details see our Complete Financial Statements for Jaunuary to September, 2017

3^rdQ/17

2^ndQ/17

Jan-Sep/17

Jan-Sep/16

BRGAAP

IFRS

Variation

BRGAAP

IFRS

Variation

BRGAAP

IFRS

Variation

BRGAAP

IFRS

Variation

Result - Attributale to Controlling Stockholders

6,077

6,048

6,014

6,369

355

18,143

18,418

275

16,097

17,271

1,174

Exclusion of the Non-Recurring Events

177

52

(125)

155

31

(123)

455

72

(383)

308

140

(168)

Goodwill Amortization

125

-

(125)

123

-

(123)

373

-

(373)

308

-

(308)

Disposal of IRB shares

(155)

(155)

-

-

-

-

(155)

(155)

-

-

-

-

Provision for Contingencies

70

70

-

55

55

-

143

143

-

143

143

-

Civil Lawsuits - Economic Plans

61

61

-

22

22

-

101

101

-

136

136

-

Tax and Social Security

9

9

-

33

33

-

42

42

-

6

6

-

Impairment

137

137

-

7

7

-

144

144

-

9

9

-

Program for the Settlement or Installment Payment of Taxes

-

-

-

-

-

-

-

-

-

(12)

(12)

-

Others

-

-

-

(31)

(31)

-

(51)

(60)

(10)

(140)

-

140

Recurring Result - Attributable to Controlling Stockholders

6,254

6,100

6,169

6,400

18,599

18,490

(109)

16,405

17,410

1,006