Fair value of financial instruments (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Carrying and Estimated Fair Values for Financial Instruments

The following table summarizes the carrying and estimated fair values for financial instruments:


			12/31/2018						12/31/2017
			Carrying value			Estimated fair value			Carrying value			Estimated fair value
Cash deposits on demand	(a	)		37,159			37,159			18,749			18,749
Financial assets				1,424,876			1,433,116			1,330,251			1,338,314
Central Bank compulsory deposits	(a	)		94,148			94,148			98,837			98,837
At Amortized Cost				994,759			1,002,999			905,729			913,792
Interbank deposits	(b	)		26,420			26,510			29,048			29,112
Securities purchased under agreements to resell	(a	)		280,136			280,136			244,707			244,707
Securities	(c	)		110,395			112,171			111,424			113,049
Loan operations and lease operations portfolio ^(*)	(d	)		536,091			542,465			497,719			504,093
Other financial assets	(e	)		75,090			75,090			59,568			59,568
(-) Provision for Expected Loss				(33,373	)		(33,373	)		(36,737	)		(36,737	)
At Fair Value Through Other Comprehensive Income				49,323			49,323			52,149			52,149
Securities	(c	)		49,323			49,323			52,149			52,149
At Fair Value Through Profit or Loss				286,646			286,646			273,536			273,536
Securities	(c	)		263,180			263,180			250,693			250,693
Derivatives	(c	)		23,466			23,466			22,843			22,843
Financial liabilities				1,151,237			1,150,700			1,056,717			1,054,981
At Amortized Cost				1,119,734			1,119,197			1,024,584			1,022,848
Deposits	(b	)		463,424			463,363			402,938			402,911
Securities sold under repurchase agreements	(a	)		330,237			330,237			312,634			312,634
Interbank market debt	(b	)		134,670			134,533			124,587			124,257
Institutional market debt	(b	)		93,974			93,635			98,482			97,103
Other financial liabilities	(e	)		97,429			97,429			85,943			85,943
At Fair Value Through Profit or Loss				27,711			27,711			27,211			27,211
Derivatives	(c	)		27,519			27,519			26,746			26,746
Structured notes				192			192			465			465
Provision for Expected Loss				3,792			3,792			4,922			4,922
Loan Commitments				2,601			2,601			3,015			3,015
Financial Guarantees				1,191			1,191			1,907			1,907

(*)

In the composition of balance there are operations designated at fair value through profit or loss, in the amount of R$ 102 at 12/31/2017.

Summary of Breakdown of Fair Value Hierarchy Levels

The following table presents the breakdown of fair value hierarchy levels.


	12/31/2018								12/31/2017
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial assets at fair value through profit or loss		224,872		34,206		2,833		261,911		213,421		31,579		3,947		248,947

Investment funds		2,003		2,323		0		4,326		1,738		1,775		—		3,513
Brazilian government securities		213,816		3,242		0		217,058		205,027		2,816		1		207,844
Government securities – other countries		1,517		562		0		2,079		1,643		2,306		—		3,949

Argentina		1,129		0		0		1,129		1,466		—		—		1,466
Chile		147		155		0		302		39		18		—		57
Colombia		0		207		0		207		—		2,092		—		2,092
United States		117		0		0		117		100		—		—		100
Italy		0		115		0		115		—		—		—		—
Mexico		120		0		0		120		5		—		—		5
Paraguay		0		1		0		1		—		3		—		3
Uruguay		0		84		0		84		—		193		—		193
Other		4		0		0		4		33		—		—		33
Corporate securities		7,536		28,079		2,833		38,448		5,013		24,682		3,946		33,641

Shares		6,175		2,003		1,268		9,446		3,875		65		2,019		5,959
Bank deposit certificates		1		968		0		969		1		334		—		335
Securitized real estate loans		0		0		1,411		1,411		—		—		1,795		1,795
Debentures		168		4,707		85		4,960		486		2,608		122		3,216
Eurobonds and others		1,192		173		31		1,396		651		37		—		688
Financial credit bills		0		19,719		5		19,724		—		21,170		—		21,170
Promissory notes		0		435		0		435		—		391		—		391
Other		0		74		33		107		—		77		10		87
Financial assets at fair value through other comprehensive income		30,680		18,643		0		49,323		35,234		16,915		—		52,149

Brazilian government securities		27,038		801		0		27,839		32,218		708		—		32,926
Government securities – other countries		2,448		16,324		0		18,772		1,550		14,992		—		16,542

Germany		22		0		0		22		—		—		—		—
Chile		0		7,653		0		7,653		—		9,550		—		9,550
Colombia		0		5,505		0		5,505		—		3,020		—		3,020
United States		2,425		193		0		2,618		1,550		—		—		1,550
France		0		891		0		891		—		—		—		—
Paraguay		0		1,529		0		1,529		—		1,800		—		1,800
Uruguay		0		553		0		553		—		622		—		622
Other		1		0		0		1		—		—		—		—
Corporate securities		1,194		1,518		0		2,712		1,466		1,215		—		2,681

Shares		161		0		0		161		148		—		—		148
Bank deposit certificates		0		1,053		0		1,053		—		685		—		685
Debentures		0		2		0		2		—		1		—		1
Eurobonds and others		1,033		463		0		1,496		1,318		529		—		1,847
Financial assets at fair value through profit or loss		1,269		0		0		1,269		1,746		—		—		1,746

Brazilian government securities		1,269		0		0		1,269		1,746		—		—		1,746
Financial liabilities designated at fair value through profit or loss		0		192		0		192		—		465		—		465

Structured notes		0		192		0		192		—		465		—		465

Summary of Breakdown of Fair Value Hierarchy Levels for Derivative Assets and Liabilities

The following table presents the breakdown of fair value hierarchy levels for our derivative assets and liabilities.


	12/31/2018												12/31/2017
	Level 1			Level 2			Level 3			Total			Level 1		Level 2			Level 3			Total
Assets		15			23,309			142			23,466			158		22,249			436			22,843

Futures Contract		0			0			0			0			158		—			—			158
Swap Contract– adjustment receivable		0			12,959			90			13,049			—		8,821			369			9,190
Options Contract		0			4,163			52			4,215			—		3,271			66			3,337
Forwards Contract		0			1,835			0			1,835			—		6,911			—			6,911
Credit derivatives - financial Institutions		0			120			0			120			—		137			—			137
NDF - Non Deliverable Forward		0			3,711			0			3,711			—		2,950			—			2,950
Check of swap - Companies		0			44			0			44			—		68			—			68
Other derivative financial instruments		15			477			0			492			—		91			1			92
Liabilities		(22	)		(27,471	)		(26	)		(27,519	)		—		(26,643	)		(103	)		(26,746	)

Swap Contract – adjustment payable		0			(19,351	)		(3	)		(19,354	)		—		(13,590	)		(102	)		(13,692	)
Options Contract		0			(3,906	)		(23	)		(3,929	)		—		(2,792	)		(1	)		(2,793	)
Forwards Contract		0			(470	)		0			(470	)		—		(6,272	)		—			(6,272	)
Credit derivatives - financial Institutions		0			(140	)		0			(140	)		—		(58	)		—			(58	)
NDF - Non Deliverable Forward		0			(3,384	)		0			(3,384	)		—		(3,745	)		—			(3,745	)
Check of swap - Companies		0			(162	)		0			(162	)		—		(122	)		—			(122	)
Other derivative financial instruments		(22	)		(58	)		0			(80	)		—		(64	)		—			(64	)

Summary of Changes in Balance Sheet for Financial Instruments Classified by Level 3 Fair Value Hierarchy

The tables below show the changes in balance sheet for financial instruments classified by ITAÚ UNIBANCO HOLDING in Level 3 of the fair value hierarchy. Derivative financial instruments classified in Level 3 correspond to other derivatives indexed to shares.


	Fair value at 12/31/2017			Total gains or losses (realized / unrealized)						Purchases			Settlements			Transfers in and / or out of Level			Fair value at 12/31/2018			Total Gains or Losses (Unrealized)
	Fair value at 12/31/2017			Recognized in the result			Recognized in other comprehensive income			Purchases			Settlements			Transfers in and / or out of Level			Fair value at 12/31/2018			Total Gains or Losses (Unrealized)
Financial assets designated at fair value		3,947			(377	)		—			90			(353	)		(474	)		2,833			(618	)

Brazilian government securities		1			(1	)		—			—			—			—			0			—
Corporate securities		3,946			(376	)		—			90			(353	)		(474	)		2,833			(618	)
Shares		2,019			34			—			—			(203	)		(582	)		1,268			(442	)
Securitized real estate loans		1,795			(359	)		—			57			(89	)		7			1,411			19
Debentures		122			(41	)		—			—			(53	)		57			85			(196	)
Eurobonds and others		—			2			—			20			(2	)		11			31			—
Financial credit bills		—			—			—						—			5			5			—
Other		10			(12	)		—			13			(6	)		28			33			1

	Fair value at 12/31/2017			Total gains or losses (realized /unrealized)						Purchases			Settlements			Transfers in and / or out of Level			Fair value at 12/31/2018			Total Gains or Losses (Unrealized)
	Fair value at 12/31/2017			Recognized in the result			Recognized in other comprehensive income			Purchases			Settlements			Transfers in and / or out of Level			Fair value at 12/31/2018			Total Gains or Losses (Unrealized)
Derivatives - assets		436			(3	)		—			205			(254	)		(242	)		142			61

Swap Contract– adjustment receivable		369			(5	)		—			—			(30	)		(244	)		90			61
Options Contract		66			2						205			(223	)		2			52			—
Other derivative financial instruments		1												(1	)					0			—

Derivatives - liabilities		(103	)		40			—			(148	)		141			44			(26	)		6

Swap Contract – adjustment payable		(102	)		(37	)		—			—			92			44			(3	)		(3	)
Options Contract		(1	)		77			—			(148	)		49			—			(23	)		9
	Fair value at 12/31/2016			Total gains or losses (realized / unrealized)						Purchases			Settlements			Transfers in and / or out of Level			Fair value at 12/31/2017			Total Gains or Losses (Unrealized)
	Fair value at 12/31/2016			Recognized in the result			Recognized in other comprehensive income			Purchases			Settlements			Transfers in and / or out of Level			Fair value at 12/31/2017			Total Gains or Losses (Unrealized)
Financial assets designated at fair value through profit or loss		3,808			(232	)		—			578			(146	)		(61	)		3,947			(412	)

Brazilian government securities		1			—			—			—			—			—			1			(1	)
Corporate securities		3,807			(232	)		—			578			(146	)		(61	)		3,946			(411	)
Shares		1,662			122			—			400			—			(165	)		2,019			(274	)
Securitized real estate loans		2,092			(355	)		—			58			—			—			1,795			16
Debentures		37			(1	)		—			106			(124	)		104			122			(153	)
Eurobonds and others		—			—			—			9			(9	)		—			—			—
Other		16			2			—			5			(13	)		—			10			—
Financial assets designated at fair value through other comprehensive income		227			—			—			200			(427	)		—			—			—

Corporate securities		227			—			—			200			(427	)		—			—			—
Securitized real estate loans		6			—			—			—			(6	)		—			—			—
Eurobonds and others		221			—			—			200			(421	)		—			—			—

	Fair value at 12/31/2016			Total gains or losses (realized / unrealized)						Purchases			Settlements			Transfers in and / or out of Level			Fair value at 12/31/2017			Total Gains or Losses (Unrealized)
	Fair value at 12/31/2016			Recognized in the result			Recognized in other comprehensive income			Purchases			Settlements			Transfers in and / or out of Level			Fair value at 12/31/2017			Total Gains or Losses (Unrealized)
Derivatives - Assets		521			(33	)		101			—			(244	)		91			436			17

Swap Contract– adjustment receivable		468			(41	)		—			—			(100	)		42			369			32
Options Contract		47			12			101			—			(143	)		49			66			(14	)
Other derivative financial instruments		6			(4	)		—			—			(1	)		—			1			(1	)

Derivatives - Liabilities		(60	)		(117	)		(15	)		—			111			(22	)		(103	)		(57	)

Swap Contract – adjustment payable		(56	)		(122	)		—			—			97			(21	)		(102	)		(60	)
Options Contract		(4	)		5			(15	)		—			13			—			(1	)		3
Credit derivatives - financial Institutions		—			—			—			—			1			(1	)		—			—

Summary of Sensitivity Analyses Operations of Level 3

The table below shows the sensitivity of these fair values in scenarios of changes of interest rates, asset prices, or in scenarios vary in prices with shocks and the volatility for non-linear assets:


Sensitivity – Level 3 Operations			12/31/2018						12/31/2017
Market risk factor groups	Scenarios		Impact						Impact
Market risk factor groups	Scenarios		Result			Stockholders’ equity			Result			Stockholders’ equity
		I		(0.4	)		(1.2	)		(1.9	)		(2.4	)
Interest rates		II		(9.3	)		(29.3	)		(47.0	)		(55.4	)
		III		(18.6	)		(57.8	)		(93.9	)		(114.5	)

Shares		I		(63.4	)		0			(146.6	)		—
		II		(126.8	)		0			(293.2	)		—

Nonlinear		I		(48.2	)		0			(9.2	)		—
		II		(89.3	)		0			(11.9	)		—