Itaú Unibanco (ITUB4) Investor Day 2024 summary

Strategic vision and transformation

• Celebrating 100 years, the organization emphasizes adaptability, innovation, and long-term vision, focusing on client centricity and sustainable growth across all segments.

• Major transformation initiatives include the One Itaú project, digitalization, and integration of banking and acquiring services for a seamless, client-focused experience.

• Technology and data are central, with over 250 generative AI projects, cloud migration, and agile methodologies driving efficiency and rapid product development.

• Diversity and inclusion targets for leadership have been met ahead of schedule, reinforcing a commitment to a diverse workforce and inclusive culture.

• The brand has evolved to "Made of the Future," reflecting a blend of legacy, trust, and innovation to engage new generations of clients.

Financial guidance and capital allocation

• The bank targets sustainable, high-quality growth, with 2024 credit portfolio guidance midpoint at 8–8.3% and expectations for double-digit bottom-line growth.

• Efficiency remains a top priority, with the best historical efficiency ratio achieved, improving from 46.3% to 38.3%, and a shift to collaborative, client-focused efficiency initiatives.

• Capital allocation is disciplined, with a CET1 target buffer of 12%, and excess capital to be distributed as extraordinary dividends, with payout expected above 30% for 2024.

• Value creation grew from R$3.5 billion in 2013 to R$12.3 billion in 2023.

• Dividend policy is flexible, balancing growth opportunities and capital needs, with a preference for extraordinary payments as confidence in results increases.

Business developments and growth drivers

• Retail transformation is anchored in the One Itaú platform, Super App, and segment-specific service models, driving NPS improvements and deeper client engagement.

• Serves 70 million clients, with improved NPS for Personnalité (+13 pts) and Uniclass (+10 pts), and a phygital strategy leading to 16x more tech deployments.

• Corporate and SME segments have quadrupled in size over five years, with integrated banking and acquiring services, and a unique ecosystem supporting sustainable, double-digit growth.

• International operations in Latin America are leveraging lessons from Brazil, with strong ROE in Uruguay, Paraguay, and Chile, and ongoing modernization and digitization efforts.

• ESG is deeply embedded, with a net zero target by 2050, a BRL 400 billion climate and social impact financing goal to be reached 18 months early, and innovative programs like Reverti for land recovery.