Post-employment benefits (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Main Assumptions Used in Actuarial Valuation of Retirement Plans

The main demographic assumptions comprise: mortality table and turnover of active participants and the main financial assumptions include: discount rate, future salary increases, growth of plan benefits and inflation.


	12/31/2018	12/31/2017	12/31/2016
Discount rate ⁽¹⁾	9.72% p.a.	9.98% p.a.	10.24% a.a.
Mortality table ⁽²⁾	AT-2000	AT-2000	AT-2000
Turnover	Itaú Experience 2008/2010 ⁽³⁾	Itaú Experience 2008/2010	Exp.Itaú 2008/2010
Future salary growth	4.00% to 7.12 % p.a.	5.04% to 7.12 % p.a.	5.04% to 7.12% p.a.
Growth of the pension fund benefits	4.00 % p.a.	4.00 % p.a.	4.00% p.a.
Inflation	4.00 % p.a.	4.00 % p.a.	4.00% p.a.
Actuarial method	Projected Unit Credit	Projected Unit Credit	Cred.Unit.Projet.

(1)

Determined based on market yield related to National Treasury Notes (NTN-B) and compatible with the economic scenario observed on the balance sheet closing date, considering the volatility of interest market and models used.

(2)

Correspond to those disclosed by SOA – Society of Actuaries, that reflect a 10% increase in the probabilities of survival regarding the respective basic tables.

(3)

Updated to the new expectation of mass behavior.

Summary of Allocation of Assets by Category Segmented into Quoted and Not Quoted in Active Market

Below is a table with the allocation of assets by category, segmented into Quoted in an Active Market and Not Quoted in an Active Market:


	Fair value						% Allocation
Types	12/31/2018		12/31/2017		12/31/2016		12/31/2018			12/31/2017			12/31/2016
Fixed income securities		18,065		16,851		15,134		96.05	%		95.81	%		91.61	%
Quoted in an active market		17,775		16,281		14,751		94.51	%		92.57	%		89.29	%
Non quoted in an active market		290		570		383		1.54	%		3.24	%		2.32	%
Variable income securities		24		19		685		0.13	%		0.11	%		4.15	%
Quoted in an active market		18		15		681		0.09	%		0.09	%		4.12	%
Non quoted in an active market		6		4		4		0.04	%		0.02	%		0.03	%
Structured investments		59		24		9		0.31	%		0.14	%		0.05	%
Quoted in an active market		1		1		1		0.01	%		0.01	%		0.01	%
Non quoted in an active market		58		23		8		0.30	%		0.13	%		0.04	%
Real estate		578		615		623		3.07	%		3.49	%		3.77	%
Loans to participants		82		79		69		0.44	%		0.45	%		0.42	%

Total		18,808		17,588		16,520		100.00	%		100.00	%		100.00	%

Summary of Calculation of Net Amount Recognized in Balance Sheet, Corresponding to Defined Benefit Plan

Following is the calculation of the net amount recognized in the balance sheet, corresponding to the defined benefit plan:


	12/31/2018
	BD and CV Plans			CD Plans			Other post- employment benefits			Total
1 - Net assets of the plans		18,808			1,604			0			20,412
2 - Actuarial liabilities		(15,493	)		0			(282	)		(15,775	)

3 - Asset restriction (*)		(3,664	)		(939	)		0			(4,603	)

4 - Net amount recognized in the balance sheet (1+2+3)		(349	)		665			(282	)		34

Amount recognized in Assets (Note 18a)		66			665			0			731
Amount recognized in Liabilities (Note 18b)		(415	)		0			(282	)		(697	)


	12/31/2017
	BD and CV Plans			CD Plans			Other post- employment benefits			Total
1 - Net assets of the plans		17,588			1,634			—			19,222
2 - Actuarial liabilities		(14,491	)		—			(257	)		(14,748	)

3 - Asset restriction (*)		(3,217	)		(912	)		—			(4,129	)

4 - Net amount recognized in the balance sheet (1+2+3)		(120	)		722			(257	)		345

Amount recognized in Assets (Note 18a)		345			722			—			1,067
Amount recognized in Liabilities (Note 18b)		(465	)		—			(257	)		(722	)


	12/31/2016
	BD and CV Plans			CD Plans			Other post- employment benefits			Total
1 - Net assets of the plans		16,520			1,287			—			17,807
2 - Actuarial liabilities		(13,723	)		—			(221	)		(13,944	)

3 - Asset restriction (*)		(3,008	)		(491	)		—			(3,499	)

4 - Net amount recognized in the balance sheet (1+2+3)		(211	)		796			(221	)		364

Amount recognized in Assets (Note 18a)		317			796			—			1,113
Amount recognized in Liabilities (Note 18b)		(528	)		—			(221	)		(749	)

(*)

Corresponds to the excess of the present value of the available economic benefit, in conformity with paragraph 58 of IAS 19.

Summary of Change in Net Amount Recognized in Balance Sheet

f)	Change in the net amount recognized in the balance sheet


	12/31/2018
	BD and CV plans												CD plans									Ohter post- employment benefit			Total
	Net assets			Actuarial liabilities			Asset ceiling			Recognized amount			Pension plan fund			Asset ceiling			Recognized amount			Liabilities			Recognized amount
Amounts at the beginning of the period		17,588			(14,491	)		(3,217	)		(120	)		1,634			(912	)		722			(257	)		345
Amounts recognized in income (loss) (1+2+3)		1,700			(1,454	)		(321	)		(75	)		157			(90	)		67			(25	)		(33	)
1 - Cost of current service		0			(69	)		0			(69	)		0			0			0			0			(69	)
2 - Cost of past service		0			0			0			0			0			0			0			0			0
3 - Net interest ⁽¹⁾		1,700			(1,385	)		(321	)		(6	)		157			(90	)		67			(25	)		36
Amounts recognized in stockholders’ equity (4+5+6)		580			(688	)		(126	)		(234	)		(102	)		63			(39	)		(19	)		(292	)
4 - Effects on asset ceiling		0			0			(126	)		(126	)		0			63			63			0			(63	)
5 - Remeasurements ^{(2) (3)}		566			(683	)		0			(117	)		(102	)		0			(102	)		(19	)		(238	)
6 - Exchange variation		14			(5	)		0			9			0			0			0			0			9
Other (7+8+9+10)		(1,060	)		1,140			0			80			(85	)		0			(85	)		19			14
7 - Receipt by allocation of funds ⁽⁴⁾		0			0			0			0			0			0			0			0			0
8 - Benefits paid		(1,140	)		1,140			0			0			0			0			0			19			19
9 - Contributions from sponsor		69			0			0			69			(85	)		0			(85	)		0			(16	)
10 - Contributions from parcipants		11			0			0			11			0			0			0			0			11

Amounts end of the period		18,808			(15,493	)		(3,664	)		(349	)		1,604			(939	)		665			(282	)		34


	12/31/2017
	BD and CV plans												CD plans									Ohter post- employment benefit			Total
	Net assets			Actuarial liabilities			Asset ceiling			Recognized amount			Pension plan fund			Asset ceiling			Recognized amount			Liabilities			Recognized amount
Amounts at the beginning of the period		16,520			(13,723	)		(3,008	)		(211	)		1,287			(491	)		796			(221	)		364
Amounts recognized in income (loss) (1+2+3)		1,639			(1,416	)		(307	)		(84	)		126			(50	)		76			(22	)		(30	)
1 - Cost of current service		—			(69	)		—			(69	)		—			—			—			—			(69	)
2 - Cost of past service		—			—			—			—			—			—			—			—			—
3 - Net interest ⁽¹⁾		1,639			(1,347	)		(307	)		(15	)		126			(50	)		76			(22	)		39
Amounts recognized in stockholders’ equity (4+5+6)		487			(493	)		98			92			324			(371	)		(47	)		(28	)		17
4 - Effects on asset ceiling		—			—			97			97			(15	)		(371	)		(386	)		—			(289	)
5 - Remeasurements ^{(2) (3)}		485			(487	)		1			(1	)		339			—			339			(28	)		310
6 - Exchange variation		2			(6	)		—			(4	)		—			—			—			—			(4	)
Other (7+8+9+10)		(1,058	)		1,141			—			83			(103	)		—			(103	)		14			(6	)
7 - Receipt by allocation of funds ⁽⁴⁾		—			—			—			—			(12	)		—			(12	)		—			(12	)
8 - Benefits paid		(1,141	)		1,141			—			—			—			—			—			14			14
9 - Contributions from sponsor		71			—			—			71			(91	)		—			(91	)		—			(20	)
10 - Contributions from parcipants		12			—			—			12			—			—			—			—			12

Amounts end of the period		17,588			(14,491	)		(3,217	)		(120	)		1,634			(912	)		722			(257	)		345

	12/31/2016
	BD and CV plans												CD plans									Ohter post- employment benefit			Total
	Net assets			Actuarial liabilities			Asset ceiling			Recognized amount			Pension plan fund			Asset ceiling			Recognized amount			Liabilities			Recognized amount
Amounts at the beginning of the period		13,633			(11,587	)		(2,134	)		(88	)		2,229			(270	)		1,959			(179	)		1,692
Amounts recognized in income (loss) (1+2+3)		1,483			(1,317	)		(241	)		(75	)		269			(30	)		239			(19	)		145
1 - Cost of current service		—			(62	)		—			(62	)		—			—			—			—			(62	)
2 - Cost of past service		—			—			—			—			—			—			—			—			—
3 - Net interest ⁽¹⁾		1,483			(1,255	)		(241	)		(13	)		269			(30	)		239			(19	)		207
Amounts recognized in stockholders’ equity (4+5+6)		2,300			(1,672	)		(633	)		(5	)		(817	)		(191	)		(1,008	)		(36	)		(1,049	)
4 - Effects on asset ceiling		—			—			(633	)		(633	)		(1,053	)		(191	)		(1,244	)		—			(1,877	)
5 - Remeasurements ^{(2) (3)}		2,308			(1,715	)		—			593			236			—			236			(36	)		793
6 - Exchange variation		(8	)		43			—			35			—			—			—			—			35
Other (7+8+9+10)		(896	)		853			—			(43	)		(394	)		—			(394	)		13			(424	)
7 - Receipt by allocation of funds ⁽⁴⁾		—			—			—			—			(515	)		—			(515	)		—			(515	)
8 - Benefits paid		(1,060	)		1,060			—			—			—			—			—			13			13
9 - Contributions from sponsor		149			—			—			149			121			—			121			—			270
10 - Contributions from parcipants		15			—			—			15			—			—			—			—			15
11 - Balance arising from the CorpBanca acquisition (Note 3)		—			(207	)		—			(207	)		—			—			—			—			(207	)

Amounts end of the period		16,520			(13,723	)		(3,008	)		(211	)		1,287			(491	)		796			(221	)		364

(1)

Corresponds to the amount calculated at 01/01/2018 based on the beginning amount (Net Assets, Actuarial Liabilities and Restriction of Assets), taking into account the estimated amount of payments/ receipts of benefits/ contributions, multiplied by the discount rate of 9.98% p.a.(at 01/01/2017 the rate used was 10.24% p.a.);

(2)

Remeasurements recorded in net assets and asset ceiling correspond to the income earned above/below the expected return rate;

(3)

The actual return on assets amounted to R$ 2,266 (R$ 2,124 at 12/31/2017).

(4)

Refers to distribution of excess pension fund from Itaubanco CD Plan.

Summary of Defined Benefit Contribution

g)	Defined benefit contribution


	Estimated contribution		Contributions made
	2019		01/01 to 12/31/2018		01/01 to 12/31/2017		01/01 to 12/31/2016
Pension plan - FIU		47		58		58		78
Pension plan - FUNBEP		10		11		14		71

Total		57		69		72		149

Summary of Maturity Profile of Defined Benefit Liabilities

h)	Maturity profile of defined benefit liabilities


	*Duration ()**		2019		2020		2021		2022		2023		2024 to 2028
Pension plan - FIU		10.88		799		824		859		894		929		5,184
Pension plan - FUNBEP		10.09		370		387		404		420		435		2,362
Other post-employment benefits		12.02		17		18		19		20		21		127

Total				1,186		1,229		1,282		1,334		1,385		7,673

(*)

Average duration of plan´s actuarial liabilities.

Summary of Sensitivity of Defined Benefit Obligation

The results obtained are shown in the table below:


	BD and CV pension plans								Other post-employment benefits
Main assumptions	Present value of liability			Income		Stockholders’ equity ^(*)			Present value of liability			Income		Stockholders’ equity ^(*)
Interest rate
Increase by 0,5%		(718	)		—		76			(15	)		—		(15	)
Decrease by 0,5%		782			—		(250	)		17			—		17
Mortality rate
Increase by 5%		(160	)		—		45			(6	)		—		(6	)
Decrease by 5%		167			—		(48	)		7			—		7
Medical inflation
Increase by 1%		—			—		—			33			—		33
Decrease by 1%		—			—		—			(28	)		—		(28	)

(*)

Net of effects of asset ceiling