Itaú Unibanco (ITUB4) Investor Day 2024 summary

Strategic vision and transformation

• Celebrating 100 years, the organization emphasizes adaptability, innovation, and a client-centric culture as core to its longevity and future plans.

• Major transformation initiatives include digitalization, cloud migration, and the integration of technology such as AI and GenAI across all business areas.

• The One Itaú project restructures the individual segment, focusing on client engagement, phygital service models, and tailored offerings for different income segments.

• Efficiency is pursued through a cultural shift, automation, and data-driven decision-making, moving away from top-down cost-cutting to collaborative, sustainable improvements.

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

Technology, data, and client experience

• Over 250 generative AI projects are in place, with AI used for coding, customer service, fraud prevention, and legal operations, driving efficiency and personalization.

• Cloud migration exceeds 60%, enabling agility, scalability, and rapid deployment of new solutions, with over 1 million lines of code written using GenAI.

• Customer experience is enhanced through proactive, AI-driven interactions, hyper-personalization, and seamless phygital journeys, resulting in double-digit NPS improvements.

• The legal department leverages AI to process and analyze 12 million documents, reducing onboarding time and improving litigation outcomes.

• Data-first and AI-first approaches are now standard across departments, with model validation and risk management also automated for scale and quality.

Growth, profitability, and capital allocation

• Growth is driven by expanding the client base, leveraging technology, and integrating banking and acquiring services, with a focus on sustainable, high-quality growth.

• The credit portfolio is expected to grow by 8–8.3% in 2024, supporting double-digit bottom-line growth, with a robust capital structure in place.

• Dividend policy targets a payout above 30%, with extraordinary dividends likely as excess capital is generated and regulatory changes are considered.

• The wholesale and SME segments have achieved market leadership, quadrupling in size and maintaining profitability above 30%.

• Asset management and advisory services are being scaled with GenAI, aiming to double specialist account loads and expand product offerings.