ITUB Itau Unibanco Holding SA

BRGAAP

BRGAAP

Adjustments and Reclassifications ²

Mar/31/2019

Dec/31/2018

Total Assets

1,651,425

(105,454)

1,545,971

1,649,614

(96,817)

1,552,797

Cash and Cash Equivalents, Compulsory Deposits and Financial Assets At Amortized Cost ^{3 4 6}

1,163,379

(18,377)

1,145,002

1,172,276

(12,837)

1,159,439

(-) Estimated Loss at Amortized Cost⁵

(33,249)

(36)

(33,285)

(33,326)

(47)

(33,373)

Financial Assets at Fair Value Through Other Comprehensive Income ⁴

111,367

(59,672)

51,695

105,065

(55,657)

49,408

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

(3,333)

3,249

(84)

(3,441)

3,356

(85)

Financial Assets at Fair Value Through Profit or Loss ⁴

316,163

(29,982)

286,181

315,383

(28,737)

286,646

Tax Assets⁷

49,234

(7,416)

41,818

50,242

(7,412)

42,830

Investments in Associates and Jointly Controlled Entities, Goodwill, Fixed Assets, Intangible Assets, Assets Held for Sale and Other Assets 

47,864

6,780

54,644

43,415

4,517

47,932

Total Liabilities

1,519,103

(111,791)

1,407,312

1,505,490

(103,159)

1,402,331

Financial Assets at Amortized Cost ^{3 6}

1,221,736

(110,940)

1,110,796

1,220,233

(100,499)

1,119,734

Financial Assets at Fair Value Through Profit or Loss ⁴

27,783

197

27,980

27,675

36

27,711

Expected Loss (Loan Commitments and Financial Guarantees) ⁵

1,281

2,597

3,878

1,265

2,527

3,792

Provision for Insurance and Pension Plan 

203,839

1,202

205,041

199,995

1,192

201,187

Provisions

18,261

-

18,261

18,613

-

18,613

Tax Liabilities ⁷

10,958

(5,829)

5,129

10,915

(5,631)

5,284

Other Liabilities

35,244

983

36,227

26,794

(784)

26,010

Total Stockholders' Equity

132,322

6,337

138,659

144,124

6,342

150,466

Non-controlling Interests

12,498

1,407

13,905

12,367

1,317

13,684

Total Controlling Stockholders' Equity ⁸

119,824

4,930

124,754

131,757

5,025

136,782

¹BRGAAP represents accounting practices in force in Brazil for financial institutions, according to regulation of the Central Bank of Brazil;

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

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

⁴Refer to reclassification of financial assets between measurement categories at fair value and amortized cost;

⁵Application of criterion for calculation of Expected Loss as set forth by IFRS;

⁶Difference in accounting, particularly from Foreign Exchange Portfolio, which are now be presented as net effect between Assets and Liabilities;

⁷Difference in accounting, particularly differed taxes, which are now accounted for as net effect between Assets and Liabilities in each one of the consolidated companies;

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

R$ million

Stockholders' Equity *

1st Q/19

4th Q/18

1st Q/18

 BRGAAP - Values Attributable to Controlling Stockholders 

119,824

6,710

6,206

6,280

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

465

(74)

559

91

(b)Adjustment to Fair Value of Financial Assets

(1,088)

125

(42)

(75)

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

442

(1)

(1)

(2)

(d)Criteria for Write-Off of Financial Assets 

2,177

(39)

(38)

45

(e)Financial Lease Operations

329

(36)

(29)

(40)

(f) Other adjustments

2,605

62

(2)

90

IFRS - Values Attributable to Controlling Stockholders 

124,754

6,747

6,653

6,389

IFRS - Values Attributable to Minority Stockholders 

13,905

156

204

168

IFRS - Values Attributable to Controlling Stockholders and Minority Stockholders 

138,659

6,903

6,857

6,557

* Events net of tax effects 

Differences between IFRS and BRGAAP Financial Statements

(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) UnderIFRS, 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 expectative. 

(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.

⁹More details in the Complete Financial Statements for the first quarter of 2019.

R$ million

1st Q/19

BRGAAP

IFRS

BRGAAP

IFRS

Result - Attributale to Controlling Stockholders

6,280

6,389

109

Exclusion of the Non-Recurring Events

167

-

(167)

139

(7)

(146)

Goodwill Amortization

167

-

(167)

146

-

(146)

Civil Lawsuits - Economic Plans

-

-

-

(97)

(97)

-

Impairment

-

-

-

92

92

-

Others

-

-

-

(2)

(2)

-

Recurring Result - Attributable to Controlling Stockholders

6,877

6,747

6,419

6,383