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Risk and Capital Management

12 Months Ended

Dec. 31, 2022

Note 32 - Risk and Capital Management

a) Corporate Governance

ITAÚ UNIBANCO HOLDING invests in robust risk management processes and capital management that are the basis for its strategic decisions to ensure business sustainability and maximize shareholder value creation.

These processes are aligned with the guidelines of the Board of Directors and Executive which, through collegiate bodies, define the global objectives expressed as targets and limits for the business units that manage risk. Control and capital management units, in turn, support ITAÚ UNIBANCO HOLDING’s management by monitoring and analyzing risk and capital.

The Board of Directors is the main body responsible for establishing guidelines, policies and approval levels for risk and capital management. The Capital and Risk Management Committee (CGRC), in turn, is responsible for supporting the Board of Directors in managing capital and risk. At the executive level, collegiate bodies, presided over by the Chief Executive Officer (CEO) of ITAÚ UNIBANCO HOLDING, are responsible for capital and risk management, and their decisions are monitored by the CGRC.

Additionally, ITAÚ UNIBANCO HOLDING has collegiate bodies with capital and risk management responsibilities delegated to them, under the responsibility of CRO (Chief Risk Officer). To support this structure, the Risk Department has departments to ensure, on an independent and centralized basis, that the institution’s risks and capital are managed in compliance with the defined policies and procedures.

ITAÚ UNIBANCO HOLDING's management model is made up of:

•

1st line of defense: business areas, which have primary responsibility for managing the risk they originate.

•

2nd line of defense: risk area, which ensures that risks are managed and are supported by risk management principles (risk appetite, policies, procedures and dissemination of the risk culture in the business).

•

3rd line of defense: internal audit, which is linked to the Board of Directors and makes an independent assessment of the activities developed by the other areas.

b) Risk Management

Risk Appetite

The risk appetite of ITAÚ UNIBANCO HOLDING is based on the Board of Director’s statement:

“We are a universal bank, operating mainly in Latin America. Supported by our risk culture, we insist on with strict ethical standards and regulatory compliance, seeking high and increasing returns, with low volatility, through lasting relationships with our customers, accurate risk pricing, widespread funding and proper use of capital.”

Based on this statement, six dimensions have been defined, each dimension consists of a set of metrics associated with the main risks involved, combining supplementary measurement methods, to give a comprehensive vision of our exposure.

The Board of Directors is responsible for approving guidelines and limits for risk appetite, with the support of CGRC and the CRO.

The limits for risk appetite are monitored regularly and reported to risk committees and to the Board of Directors, which will oversee the preventive measures to be taken to ensure that exposure is aligned with the strategies of ITAÚ UNIBANCO HOLDING.

Foremost among processes for proper risk and capital management are the Risk Appetite Statement (RAS) and the implementation of a continuous, integrated risk management structure, the stress test program, the establishment of a Risk Committee, and the nomination at BACEN of a Chief Risk Officer (CRO), with roles and responsibilities assigned, and requirements for independence.

The six dimensions of risk appetite are:

•

Capitalization: establishes that ITAÚ UNIBANCO HOLDING must have capital sufficient to face any serious recession period or a stress event without the need to adjust its capital structure under unfavorable circumstances. It is monitored by tracking ITAÚ UNIBANCO HOLDING’s capital ratios, both in normal and stress scenarios, and of the ratings of the institution's debt issues.

•

Liquidity: establishes that the liquidity of ITAÚ UNIBANCO HOLDING must withstand long periods of stress. It is monitored by tracking liquidity indicators.

•

Composition of results: defines that business will be focused primarily on Latin America, where ITAÚ UNIBANCO HOLDING has a diversified base of customers and products, with low appetite for income volatility or for high risk. This dimension comprises aspects related to business, profitability, market risk and credit risk. By adopting exposure concentration limits, such as industry sectors, counterparty quality, countries and geographical regions and risk factors, these monitored metrics are intended to ensure well-adjusted portfolios, low income volatility and business sustainability.

•

Operational risk: focuses on the control of operating risk events that may adversely impact business and operating strategy, and involves monitoring the main operational risk events and losses incurred.

•

Reputation: addresses risks that may impact the institution’s brand value and reputation with customers, employees, regulatory bodies, investors and the general public. The risk monitoring in this dimension is carried in addition to monitoring the institution’s conduct.

•

Clients: addresses risks that could compromise client’s satisfaction and experience, being monitored by follow-up of customer’s satisfaction and dissatisfaction, media exposure, direct impacts on clients (technology) and suitability indicators.

Risk appetite, risk management and guidelines for employees of ITAÚ UNIBANCO HOLDING for routine decision-making purposes are based on:

•

Sustainability and customer satisfaction: ITAÚ UNIBANCO HOLDING's vision is to be the leading bank in sustainable performance and customer satisfaction and, accordingly, it is committed to creating shared value for staff, customers, stockholders and society, ensuring the continuity of the business. ITAÚ UNIBANCO HOLDING is committed to doing business that is good both for the customer and the institution itself.

•

Risk culture: ITAÚ UNIBANCO HOLDING’s risk culture goes beyond policies, procedures or processes, reinforcing the individual and collective responsibility of all employees so that they will do the right thing at the right time and in the proper manner, respecting the ethical way of doing business.

•

Risk pricing: ITAÚ UNIBANCO HOLDING ’s operates and assumes risks in businesses that it knows and understands, avoids the ones that are unknown or that do not provide competitive advantages, and carefully assesses risk-return ratios.

•

Diversification: ITAÚ UNIBANCO HOLDING has little appetite for volatility in earnings, and it therefore operates with a diverse base of customers, products and business, seeking to diversify risks and giving priority to lower risk business.

•

Operational excellence: It is the wish of ITAÚ UNIBANCO HOLDING to be an agile bank, with a robust and stable infrastructure enabling us to offer top quality services.

•

Ethics and respect for regulations: for ITAÚ UNIBANCO HOLDING, ethics is non-negotiable, and it therefore promotes an institutional environment of integrity, encouraging staff to cultivate ethics in relationships and business and to respect the rules, thus caring for the institution’s reputation.

ITAÚ UNIBANCO HOLDING has various ways of disseminating risk culture, based on four principles: conscious risk-taking, discussion of the risks the institution faces, the corresponding action taken, and the responsibility of everyone for managing risk.

These principles serve as a basis for ITAÚ UNIBANCO HOLDING guidelines, helping employees to conscientiously understand, identify, measure, manage and mitigate risks.

I - Credit risk

The possibility of losses arising from failure by a borrower, issuer or counterparty to meet their financial obligations, the impairment of a loan due to downgrading of the risk rating of the borrower, the issuer or the counterparty, a decrease in earnings or remuneration, advantages conceded on renegotiation or the costs of recovery.

There is a credit risk control and management structure, centralized and independent from the business units, that provides for operating limits and risk mitigation mechanisms, and also establishes processes and tools to measure, monitor and control the credit risk inherent in all products, portfolio concentrations and impacts of potential changes in the economic environment.

The credit policy of ITAÚ UNIBANCO HOLDING is based on internal criteria such as: classification of customers, portfolio performance and changes, default levels, rate of return and economic capital allocated, among others, and also take into account external factors such as interest rates, market default indicators, inflation, changes in consumption, and so on.

For personal customers and small and middle-market companies, credit rating is based on statistical application models (at the early stages of the relationship with a customer) and behavior score (used for customers with which ITAÚ UNIBANCO HOLDING already has a relationship).

For large companies, the rating is based on information such as economic and financial condition of the counterparty, their cash-generating capability, the economic group to which they belong, and the current and prospective situation of the economic sector in which they operate, in accordance with the guidelines of the Sustainability and Social and Environmental Responsibility Policy (PRSA) and specific manuals and procedures of ITAÚ UNIBANCO HOLDING. Credit proposals are analyzed on a case by case basis, through an approval-level mechanism.

ITAÚ UNIBANCO HOLDING strictly controls the credit exposure of customers and counterparties, taking action to address situations in which the current exposure exceeds what is desirable. For this purpose, measures provided for in loan agreements are available, such as accelerated maturity or a requirement for additional collateral.

I.I - Collateral and policies for mitigating credit risk

ITAÚ UNIBANCO HOLDING uses guarantees to increase its capacity for recovery in operations exposed to credit risk. The guarantees may be personal, secured, legal structures with mitigating power and offset agreements.

For collateral to be considered instruments that mitigate credit risk, they must comply with the requirements and standards that regulate them, both internal and external ones, and they must be legally valid (effective), enforceable, and assessed on a regular basis.

ITAÚ UNIBANCO HOLDING also uses credit derivatives, to mitigate credit risk of its portfolios of loans and securities. These instruments are priced based on models that use the fair value of market inputs, such as credit spreads, recovery rates, correlations and interest rates.

I.II - Policy for Provisioning and Economic Scenarios

Both the credit risk and the finance areas are responsible for defining the methods used to measure expected loan losses and for periodically assessing changes in the provision amounts.

These areas monitor the trends observed in provisions for expected credit losses by segment, in addition to establishing an initial understanding of the variables that may trigger changes in the allowance for loan losses, the probability of default (PD) or the loss given default (LGD).

Once the trends have been identified and an initial assessment of the variables has been made at the corporate level, the business areas are responsible for further analyzing these trends in more detail and for each segment, in order to understand the underlying reasons for the trends and to decide whether changes are required in credit policies.

Provisions for expected losses take into account the expected risk linked to contracts with similar characteristics and in anticipation of signs of deterioration, over a loss horizon suitable for the remaining period of the contract to maturity. For contracts of products with no determined termination date, average results of deterioration and default are used to determine the loss horizon.

Additionally, information on economic scenarios and public data with internal projections are used to determine and adjust the expected credit loss in line with expected macroeconomic realities.

Sensitivity analysis

ITAÚ UNIBANCO HOLDING prepares studies on the impact of estimates in the calculation of expected credit loss. The expected loss models use three different scenarios: Optimistic, Base and Pessimistic. In Brazil, where operations are substantially carried out, these scenarios are combined by weighting their probabilities: 15%, 50% and 35%, respectively, which are updated so as to reflect the new economic conditions. For loan portfolios originated in other countries, the scenarios are weighted by different probabilities, considering regional economic aspects and conditions.

The table below shows the amount of financial assets at amortized cost and at fair value through other comprehensive income, expected loss and the impacts on the calculation of expected credit loss in the adoption of 100% of each scenario:



12/31/2022					12/31/2021
Financial Assets ⁽¹⁾	Expected Loss ⁽²⁾	Reduction/(Increase) of Expected Loss			Financial Assets ⁽¹⁾	Expected Loss ⁽²⁾	Reduction/(Increase) of Expected Loss
Financial Assets ⁽¹⁾	Expected Loss ⁽²⁾	Pessimistic scenario	Base scenario	Optimistic scenario	Financial Assets ⁽¹⁾	Expected Loss ⁽²⁾	Pessimistic scenario	Base scenario	Optimistic scenario
1,256,751	(54,476)	(530)	198	530	1,078,891	(46,348)	(340)	163	1,788
Financial Asset					-

1) Composed of Loan operations, lease operations and securities.

2) Comprises expected credit loss for Financial Guarantees R$ (810) (R$ (767) at 12/31/2021) and Loan Commitments R$ (2,874) (R$ (4,433) at 12/31/2021).

I.III - Classification of Stages of Credit Impairment

ITAÚ UNIBANCO HOLDING uses customers’ internal information, statistic models, days of default and quantitative analysis in order to determine the credit status of portfolio agreements.

Rules for changing stages take into account:

•

Stage 1 to stage 2: delay or evaluation of probability of default (PD) triggers.

For Retail market portfolios, ITAÚ UNIBANCO HOLDING classifies loan agreements which are over 30 days overdue in stage 2, except payroll loans for government agency, for which the figure is 45 days, due to the dynamics of payment for transfer of the product. For agreements with delay less than 30 days, the migration to stage 2 occurs if the financial asset exceeds the allowance for loan losses established by the risk appetite approved by ITAÚ UNIBANCO HOLDING’s Management for each portfolio, whereas the others remain in stage 1.

For the Wholesale business portfolio, information on arrears is taken into account when assessing the counterparty rating.

•

Stage 3: default parameters are used to identify stage 3: 90 days without payment noted, except for the mortgage loan portfolio, which are considered 180 days; debt restructuring; filing for bankruptcy; loss; and court-supervised recovery. The financial asset, at any stage, can migrate to stage 3 when showing default parameters.

Information on days of delay, used on an absolute basis, is one important factor for the classification of stages, and after a certain credit status has been defined for an agreement, it is classified in one of the three stages of credit deterioration. Based on this classification, rules for measuring expected credit loss in each stage are used, as described in Note 2d IV.

I.IV - Maximum Exposure of Financial Assets to Credit Risk

Summary of Credit Risk Exposure

12/31/2022 12/31/2021

Brazil Abroad Total Brazil Abroad Total

Financial  Assets 1,545,701 511,277 2,056,978 1,319,532 485,649 1,805,181

At Amortized Cost 1,120,797 350,447 1,471,244 914,776 350,614 1,265,390

Interbank deposits 18,955 40,637 59,592 17,795 52,147 69,942

Securities purchased under  agreements to resell 218,339 3,440 221,779 159,974 9,744 169,718

Securities 191,947 27,368 219,315 125,875 21,871 147,746

Loan and lease operations 636,836 272,586 909,422 562,646 259,944 822,590

Other financial assets 97,995 13,828 111,823 81,398 15,075 96,473

(-) Provision for Expected  Loss (43,275) (7,412) (50,687) (32,912) (8,167) (41,079)

At Fair Value Through Other  Comprehensive Income 48,438 72,614 121,052 44,648 60,974 105,622

Securities 48,438 72,614 121,052 44,648 60,974 105,622

At Fair Value Through Profit  or Loss 376,466 88,216 464,682 360,108 74,061 434,169

Securities 364,039 21,060 385,099 343,339 21,628 364,967

Derivatives 11,052 67,156 78,208 16,612 52,433 69,045

Other financial assets 1,375 - 1,375 157 - 157

Financial liabilities -  provision for expected loss 3,040 644 3,684 4,543 657 5,200

Loan Commitments 2,622 252 2,874 4,115 318 4,433

Financial Guarantees 418 392 810 428 339 767

Off balance sheet 472,372 72,005 544,377 446,267 73,431 519,698

Financial Guarantees 71,524 20,255 91,779 62,548 20,362 82,910

Letters of credit to be  released 47,354 - 47,354 45,773 - 45,773

Loan commitments 353,494 51,750 405,244 337,946 53,069 391,015

Mortgage loans 15,423 - 15,423 10,709 - 10,709

Overdraft accounts 157,408 - 157,408 147,878 - 147,878

Credit cards 177,658 3,754 181,412 176,384 3,840 180,224

Other pre-approved limits 3,005 47,996 51,001 2,975 49,229 52,204

Total 2,015,033 582,638 2,597,671 1,761,256 558,423 2,319,679

Amounts shown for credit risk exposure are based on gross book value and do not take into account any collateral received or other added credit improvements.

The contractual amounts of financial guarantees and letters of credit cards represent the maximum potential of credit risk in the event that a counterparty does not meet the terms of the agreement. The vast majority of loan commitments (mortgage loans, overdraft accounts and other pre-approved limits) mature without being drawn, since they are renewed monthly and can be cancelled unilaterally.

As a result, the total contractual amount does not represent our real future exposure to credit risk or the liquidity needs arising from such commitments.

I.IV.I - By business sector

Loans and Financial Lease Operations

12/31/2022 % 12/31/2021 %

Industry and commerce 197,351 21.7% 190,491 23.1%

Services 177,180 19.5% 173,332 21.1%

Other sectors 37,072 4.1% 37,652 4.6%

Individuals 497,819 54.7% 421,115 51.2%

Total 909,422 100.0% 822,590 100.0%

Other financial assets ⁽¹⁾

Schedule of other financial assets

12/31/2022 % 12/31/2021 %

Public sector 691,964 63.8% 580,619 62.2%

Services 167,176 15.4% 150,831 16.2%

Other sectors 119,436 11.0% 83,521 9.0%

Financial 106,469 9.8% 117,869 12.6%

Total 1,085,045 100.0% 932,840 100.0%

1) Includes Financial Assets at Fair Value through Profit and Loss, Financial Assets at Fair Value through Other Comprehensive Income and Financial Assets at Amortized Cost, except for Loan and Lease Operations and Other Financial Assets.

The exposure of Off Balance financial instruments (Financial Collaterals and Loan Commitments) is neither categorized nor managed by business sector.

I.IV.II - By type and classification of credit risk

Loan and lease operations

12/31/2022

Stage 1 Stage 2 Stage 3 Total Consolidated of 3 Stages

Loan  Operations Loan commitments Financial Guarantees Total Loan Operations Loan commitments Financial Guarantees Total Loan Operations Loan commitments Financial Guarantees Total Loan Operations Loan commitments Financial Guarantees Total

Individuals 305,210 233,996 511 539,717 59,639 8,538 1 68,178 35,254 226 - 35,480 400,103 242,760 512 643,375

Corporate 133,205 29,853 60,209 223,267 901 32 444 1,377 5,162 11 2,551 7,724 139,268 29,896 63,204 232,368

Micro/Small and medium companies 142,621 84,619 9,520 236,760 12,299 1,494 115 13,908 9,976 265 123 10,364 164,896 86,378 9,758 261,032

Foreign loans - Latin America 182,516 44,542 16,912 243,970 13,863 1,544 1,279 16,686 8,776 124 114 9,014 205,155 46,210 18,305 269,670

Total 763,552 393,010 87,152 1,243,714 86,702 11,608 1,839 100,149 59,168 626 2,788 62,582 909,422 405,244 91,779 1,406,445

% 61.4% 31.6% 7.0% 100.0% 86.6% 11.6% 1.8% 100.0% 94.5% 1.0% 4.5% 100.0% 64.7% 28.8% 6.5% 100.0%

12/31/2021

Stage 1 Stage 2 Stage 3 Total Consolidated of 3 Stages

Loan Operations Loan commitments Financial Guarantees Total Loan Operations Loan commitments Financial Guarantees Total Loan Operations Loan commitments Financial Guarantees Total Loan Operations Loan commitments Financial Guarantees Total

Individuals 270,371 220,961 944 492,276 38,168 20,723 - 58,891 23,997 686 - 24,683 332,536 242,370 944 575,850

Corporate 128,519 23,882 52,429 204,830 1,600 200 535 2,335 4,915 23 2,478 7,416 135,034 24,105 55,442 214,581

Micro/Small and medium companies 124,555 71,158 7,605 203,318 16,749 4,823 130 21,702 8,666 222 141 9,029 149,970 76,203 7,876 234,049

Foreign loans - Latin America 178,719 46,629 17,776 243,124 13,389 1,621 713 15,723 12,942 87 159 13,188 205,050 48,337 18,648 272,035

Total 702,164 362,630 78,754 1,143,548 69,906 27,367 1,378 98,651 50,520 1,018 2,778 54,316 822,590 391,015 82,910 1,296,515

% 61.4% 31.7% 6.9% 100.0% 70.9% 27.7% 1.4% 100.0% 93.0% 1.9% 5.1% 100.0% 63.4% 30.2% 6.4% 100.0%

Summary of Internal Rating

Internal rating 12/31/2022 12/31/2021

Stage 1 Stage 2 Stage 3 Total loan operations Stage 1 Stage 2 Stage 3 Total loan operations

Low 705,625 62,501 - 768,126 662,839 42,028 - 704,867

Medium 57,508 14,095 - 71,603 38,980 19,239 - 58,219

High 419 10,106 - 10,525 345 8,639 - 8,984

Credit-Impaired - - 59,168 59,168 - - 50,520 50,520

Total 763,552 86,702 59,168 909,422 702,164 69,906 50,520 822,590

% 84.0% 9.5% 6.5% 100.0% 85.4% 8.5% 6.1% 100.0%

Other financial assets

12/31/2022

Fair value Stage 1 Stage 2 Stage 3

Cost Fair value Cost Fair value Cost Fair value

Investment funds 32,491 27,660 27,140 5,259 5,259 92 92

Government securities 479,834 483,476 479,834 - - - -

Brazilian government 394,675 397,793 394,675 - - - -

Other Public - 36 - - - - -

Abroad 85,159 85,647 85,159 - - - -

Argentina 3,453 3,460 3,453 - - - -

United States 9,665 9,716 9,665 - - - -

Israel 860 852 860 - - - -

Mexico 14,010 14,021 14,010 - - - -

Spain 9,922 9,924 9,922 - - - -

Korea 10,363 10,365 10,363 - - - -

Chile 24,681 24,811 24,681 - - - -

Paraguay 3,463 3,461 3,463 - - - -

Uruguay 1,182 1,185 1,182 - - - -

Colombia 3,151 3,430 3,151 - - - -

Peru 6 7 6 - - - -

Switzerland 4,403 4,415 4,403 - - - -

Corporate securities 211,103 216,005 208,241 3,559 2,512 2,297 350

Rural product note 28,896 28,670 28,618 287 262 29 16

Real  estate receivables certificates 7,214 7,318 7,214 - - - -

Bank deposit certificate 1,172 1,172 1,172 - - - -

Debentures 110,075 110,732 108,140 2,470 1,610 2,037 325

Eurobonds and other 8,770 9,035 8,770 - - - -

Financial bills 19,504 19,535 19,504 - - - -

Promissory and commercial notes 11,250 11,251 11,250 - - - -

Other 24,222 28,292 23,573 802 640 231 9

Total 723,428 727,141 715,215 8,818 7,771 2,389 442

12/31/2021

Fair value Stage 1 Stage 2 Stage 3

Cost Fair value Cost Fair value Cost Fair value

Investment funds 20,139 4,906 4,914 15,224 15,225 - -

Government securities 423,085 426,959 423,085 - - - -

Brazilian government 362,449 365,947 362,449 - - - -

Other Public - 36 - - - - -

Abroad 60,636 60,976 60,636 - - - -

Argentina 1,335 1,310 1,335 - - - -

United States 7,189 7,226 7,189 - - - -

Mexico 12,413 12,424 12,413 - - - -

Spain 6,131 6,132 6,131 - - - -

Korea 5,604 5,604 5,604 - - - -

Chile 21,399 21,552 21,399 - - - -

Paraguay 1,469 1,526 1,469 - - - -

Uruguay 1,258 1,256 1,258 - - - -

Colombia 3,830 3,938 3,830 - - - -

Peru 8 8 8 - - - -

Corporate securities 173,163 169,489 167,457 3,391 2,789 4,993 2,917

Rural product note 12,744 12,474 12,597 146 121 38 26

Real estate receivables certificates 4,999 5,063 4,999 - - - -

Bank deposit certificate 390 392 390 - - - -

Debentures 103,659 99,438 98,867 2,383 1,923 4,704 2,869

Eurobonds and other 10,206 10,236 10,194 12 12 - -

Financial bills 10,168 10,185 10,168 - - - -

Promissory and commercial notes 8,901 8,874 8,901 - - - -

Other 22,096 22,827 21,341 850 733 251 22

Total 616,387 601,354 595,456 18,615 18,014 4,993 2,917

Other Financial Assets  - Internal Classification by Level of Risk

12/31/2022

Internal rating Financial Assets - At Amortized Cost Financial assets at fair value through profit or loss ⁽¹⁾ Financial Assets at fair value through other comprehensive income Total

Interbank deposits and securities purchased under agreements to resell Securities

Low 281,371 214,894 461,153 120,977 1,078,395

Medium - 3,816 2,104 75 5,995

High - 605 50 - 655

Total 281,371 219,315 463,307 121,052 1,085,045

% 25.9% 20.2% 42.7% 11.2% 100.0%

1) Includes Derivatives in the amount of R$ 78,208.

12/31/2021

Internal rating Financial Assets - At Amortized Cost Financial assets at fair value through profit or loss ⁽¹⁾ Financial Assets at fair value through other comprehensive income Total

Interbank deposits and securities purchased under agreements to resell Securities

Low 245,442 142,416 430,729 105,622 924,209

Medium - 4,399 3,219 - 7,618

High 18 931 64 - 1,013

Total 245,460 147,746 434,012 105,622 932,840

% 26.4% 15.8% 46.5% 11.3% 100.0%

1) Includes Derivatives in the amount of R$ 69,045.

I.IV.III - Collateral for loan and lease operations

12/31/2022 12/31/2021

Over-collateralized  assets Under-collateralized assets Over-collateralized assets Under-collateralized assets

Carrying value of the assets Fair value of collateral Carrying value of the assets Fair value of collateral Carrying value of the assets Fair value of collateral Carrying value of the assets Fair value of collateral

Individuals 141,896 336,597 3,085 2,861 113,194 282,131 1,014 907

Personal ⁽¹⁾ 2,971 11,106 1,469 1,394 2,436 8,338 639 583

Vehicles ⁽²⁾ 29,613 70,901 1,610 1,463 26,941 68,275 368 318

Mortgage loans ⁽³⁾ 109,312 254,590 6 4 83,817 205,518 7 6

Micro, small and medium companies and corporates ⁽⁴⁾ 173,007 614,178 41,395 36,233 170,334 634,871 32,436 26,933

Foreign loans - Latin America ⁽⁴⁾ 175,517 319,085 11,817 4,441 168,968 330,020 9,782 4,152

Total 490,420 1,269,860 56,297 43,535 452,496 1,247,022 43,232 31,992

1) In general requires financial collaterals.

2) Vehicles themselves are pledged as collateral, as well as assets leased in lease operations.

3) Properties themselves are pledged as collateral.

4) Any collateral set forth in the credit policy of ITAÚ UNIBANCO HOLDING (chattel mortgage, surety/joint debtor, mortgage and other).

Of total loan and lease operations, R$ 362,705 (R$ 326,862 at 12/31/2021) represented unsecured loans.

I.IV.IV - Repossessed assets

Assets received from the foreclosure of loans, including real estate, are initially recorded at the lower of: (i) the fair value of the asset less the estimated selling expenses, or (ii) the carrying amount of the loan.

Further impairment of assets is recorded as a provision, with a corresponding charge to income. The maintenance costs of these assets are expensed as incurred.

The policy for sales of these assets includes periodic auctions that are announced to the market in advance, and provides that the assets cannot be held for more than one year, as stipulated by BACEN.

Total assets repossessed in the period were R$ 336 (R$ 258 from 01/01 to 12/31/2021), mainly composed of real estate.

II - Market risk

The possibility of incurring financial losses from changes in the market value of positions held by a financial institution, including the risks of transactions subject to fluctuations in currency rates, interest rates, share prices, price indexes and commodity prices, as set forth by CMN. Price Indexes are also treated as a risk factor group.

Market risk is controlled by an area independent from the business areas, which is responsible for the daily activities of (i) risk measurement and assessment, (ii) monitoring of stress scenarios, limits and alerts, (iii) application, analysis and testing of stress scenarios, (iv) risk reporting to those responsible within the business areas, in compliance with the governance of ITAÚ UNIBANCO HOLDING, (v) monitoring of actions required to adjust positions and risk levels to make them realistic, and (vi) providing support for the safe launch of new financial products.

The market risk structure categorizes transactions as part of either the banking portfolio or the trading portfolio, in accordance with general criteria established by CMN Resolution 4,557, of February 23, 2017, and BCB Resolution No. 111, of July 6, 2021 and later changes. The trading portfolio consists of all transactions involving financial instruments and commodities, including derivatives, which are held for trading. The banking portfolio is basically characterized by transactions for the banking business, and transactions related to the management of the balance sheet of the institution, where there is no intention of sale and time horizons are medium and long term.

Market risk management is based on the following metrics:

• Value at risk (VaR): a statistical measure that estimates the expected maximum potential economic loss under normal market conditions, considering a certain time horizon and confidence level.

• Losses in stress scenarios (Stress Test): simulation technique to assess the behavior of assets, liabilities and derivatives of a portfolio when several risk factors are taken to extreme market situations (based on prospective and historical scenarios).

• Stop loss: metrics used to revise positions, should losses accumulated in a fixed period reach a certain level.

• Concentration: cumulative exposure of a certain financial instrument or risk factor, calculated at market value (MtM – Mark to Market).

• Stressed VaR: statistical metric derived from the VaR calculation, with the purpose is of simulating higher risk in the trading portfolio, taking returns that can be seen in past scenarios of extreme volatility.

Management of interest rate risk in the Banking Book (IRRBB) is based on the following metrics:

• ΔEVE (Delta Economic Value of Equity): difference between the present value of the sum of repricing flows of instruments subject to IRRBB in a base scenario and the present value of the sum of repricing flows of these instruments in a scenario of shock in interest rates.

• ΔNII (Delta Net Interest Income): difference between the result of financial intermediation of instruments subject to IRRBB in a base scenario and the result of financial intermediation of these instruments in a scenario of shock in interest rates.

In addition, sensitivity and loss control measures are also analyzed. They include:

• Mismatching analysis (GAPS): accumulated exposure by risk factor of cash flows expressed at market value, allocated at the maturity dates.

• Sensitivity (DV01- Delta Variation): impact on the fair value of cash flows when a 1 basis point change is applied to current interest rates or on the index rates.

• Sensitivity to Sundry Risk Factors (Greeks): partial derivatives of an option portfolio in relation to the prices of underlying assets, implied volatilities, interest rates and time.

In order to operate within the defined limits, ITAÚ UNIBANCO HOLDING hedges transactions with customers and proprietary positions, including its foreign investments. Derivatives are commonly used for these hedging activities, which can be either accounting or economic hedges, both governed by the institutional polices of ITAÚ UNIBANCO HOLDING.

The structure of limits and alerts obeys the Board of Directors’ guidelines, and it is reviewed and approved on an annual basis. This structure has specific limits aimed at improving the process of monitoring and understanding risk, and at avoiding concentration. These limits are quantified by assessing the forecast balance sheet results, the size of stockholders’ equity, market liquidity, complexity and volatility, and ITAÚ UNIBANCO HOLDING’s appetite for risk.

The consumption of market risk limits is monitored and disclosed daily through exposure and sensitivity maps. The market risk area analyzes and controls the adherence of these exposures to limits and alerts and reports them timely to the Treasury desks and other structures foreseen in the governance.

ITAÚ UNIBANCO HOLDING uses proprietary systems to measure the consolidated market risk. The processing of these systems occurs in a high-availability access-controlled environment, which has data storage and recovery processes and an infrastructure that ensures business continuity in contingency (disaster recovery) situations.

II.I - VaR - Consolidated ITAÚ UNIBANCO HOLDING

Is calculated by Historical Simulation, i.e. the expected distribution for profits and losses (P&L) of a portfolio over time can be estimated from past behavior of returns of market risk factors for this portfolio. VaR is calculated at a confidence level of 99%, historical period of 4 years (1000 business days) and a holding period of one day. In addition, in a conservative approach, VaR is calculated daily, with and without volatility weighting, and the final VaR is the more restrictive of the values given by the two methods.

From 01/01 to 12/31/2022, the average total VaR in Historical Simulation was R$ 678 or 0.4% of total stockholders’ equity (R$ 441 from 01/01 to 12/31/2021 or 0.3% of total stockholders’ equity).

VaR Total  (Historical Simulation) (in millions of reais) ⁽¹⁾

12/31/2022 12/31/2021

Average Minimum Maximum Var Total Average Minimum Maximum Var Total

VaR by Risk Factor Group

Interest rates 1,102 885 1,751 1,160 937 425 1,411 1,257

Currencies 26 9 55 26 18 10 37 13

Shares 27 18 65 65 42 17 98 24

Commodities 4 2 10 10 4 1 8 4

Effect of diversification - - - (527) - - - (602)

Total risk 678 494 1,172 734 441 198 707 696

1) VaR by Risk Factor Group considers information from foreign units.

II.I.I - Interest rate risk

The table below shows the accounting position of financial assets and liabilities exposed to interest rate risk, distributed by maturity (remaining contractual terms). This table is not used directly to manage interest rate risks, it is mostly used to permit the assessment of mismatching between accounts and products associated thereto and to identify possible risk concentration.

12/31/2022 12/31/2021

0-30 days 31-180 days 181-365 days 1-5 years Over 5     years Total 0-30 days 31-180 days 181-365 days 1-5 years Over 5 years Total

Financial assets 604,311 374,530 208,849 633,741 274,964 2,096,395 457,279 294,051 193,279 642,495 253,300 1,840,404

At amortized cost 464,682 314,721 167,134 392,172 171,952 1,510,661 395,256 258,580 152,270 345,538 148,969 1,300,613

Compulsory deposits in the Central Bank of Brazil 102,600 - - - - 102,600 92,580 - - - - 92,580

Interbank deposits 40,782 8,207 7,683 2,800 114 59,586 51,138 7,050 5,861 5,669 216 69,934

Securities purchased under agreements to resell 177,458 44,221 47 - 50 221,776 142,405 26,532 - 403 371 169,711

Securities 15,933 19,075 26,632 107,906 47,731 217,277 4,427 12,884 27,858 69,965 30,664 145,798

Loan and lease operations 127,909 243,218 132,772 281,466 124,057 909,422 104,706 212,114 118,551 269,501 117,718 822,590

At fair value through other comprehensive income 35,573 13,223 6,609 47,249 18,398 121,052 10,420 9,286 6,722 63,256 15,938 105,622

At fair value through profit and loss 104,056 46,586 35,106 194,320 84,614 464,682 51,603 26,185 34,287 233,701 88,393 434,169

Securities 81,484 39,344 26,454 169,113 68,704 385,099 36,111 13,872 28,532 212,911 73,541 364,967

Derivatives 22,572 7,215 8,362 24,834 15,225 78,208 15,492 12,292 5,632 20,777 14,852 69,045

Other Financial Assets - 27 290 373 685 1,375 - 21 123 13 - 157

Financial liabilities 651,532 177,388 142,668 585,754 112,329 1,669,671 660,751 127,205 107,515 361,399 228,857 1,485,727

At amortized cost 643,530 160,422 125,266 563,338 99,607 1,592,163 653,598 110,994 99,753 340,944 216,959 1,422,248

Deposits 360,548 75,395 62,860 360,225 12,410 871,438 402,930 52,259 38,563 220,822 135,798 850,372

Securities sold under repurchase agreements 264,284 5,698 816 16,223 6,419 293,440 239,843 2,627 725 5,659 3,994 252,848

Interbank market funds 12,918 67,034 57,476 148,390 8,769 294,587 9,976 46,610 41,520 69,043 9,996 177,145

Institutional market funds 5,379 11,800 3,552 36,642 72,009 129,382 439 9,045 18,422 43,559 67,171 138,636

Premium bonds plans 401 495 562 1,858 - 3,316 410 453 523 1,861 - 3,247

At fair value through profit and loss 8,002 16,966 17,402 22,416 12,722 77,508 7,153 16,211 7,762 20,455 11,898 63,479

Derivatives 8,002 16,950 17,164 22,278 12,467 76,861 7,153 16,174 7,625 20,404 11,848 63,204

Structured notes - 1 1 18 44 64 - - 16 48 50 114

Other Financial Liabilities - 15 237 120 211 583 - 37 121 3 - 161

Difference assets / liabilities ⁽¹⁾ (47,221) 197,142 66,181 47,987 162,635 426,724 (203,472) 166,846 85,764 281,096 24,443 354,677

Cumulative difference (47,221) 149,921 216,102 264,089 426,724 (203,472) (36,626) 49,138 330,234 354,677

Ratio of cumulative difference to total  interest-bearing assets (2.3)% 7.2% 10.3% 12.6% 20.4% (11.1)% (2.0)% 2.7% 17.9% 19.3%

1) The difference arises from the mismatch between the maturities of all remunerated assets and liabilities, at the respective period-end date, considering the contractually agreed terms.

II.I.II - Currency risk

The purpose of ITAÚ UNIBANCO HOLDING's management of foreign exchange exposure is to mitigate the effects arising from variation in foreign exchange rates, which may present high-volatility periods.

The currency (or foreign exchange) risk arises from positions that are sensitive to oscillations in foreign exchange rates. These positions may be originated by financial instruments that are denominated in a currency other than the functional currency in which the balance sheet is measured or through positions in derivative instruments (for negotiation or hedge). Sensitivity to currency risk is disclosed in the table VaR Total (Historical Simulation) described in item II.I – VaR Consolidated – ITAÚ UNIBANCO HOLDING.

II.I.III - Share Price Risk

The exposure to share price risk is disclosed in Note 5, related to Financial Assets Through Profit or Loss - Securities, and Note 8, related to Financial Assets at Fair Value Through Other Comprehensive Income - Securities.

III - Liquidity risk

Defined as the possibility that the institution may be unable to efficiently meet its expected and unexpected obligations, both current and future, including those arising from guarantees issued, without affecting its daily operations and without incurring significant losses.

Liquidity risk is controlled by an area independent from the business area and responsible for establishing the reserve composition, estimating the cash flow and exposure to liquidity risk in different time horizons, and for monitoring the minimum limits to absorb losses in stress scenarios for each country where ITAÚ UNIBANCO HOLDING operates. All activities are subject to verification by independent validation, internal control and audit areas.

Liquidity management policies and limits are based on prospective scenarios and senior management’s guidelines. These scenarios are reviewed on a periodic basis, by analyzing the need for cash due to atypical market conditions or strategic decisions by ITAÚ UNIBANCO HOLDING.

ITAÚ UNIBANCO HOLDING manages and controls liquidity risk on a daily basis, using procedures approved in superior committees, including the adoption of liquidity minimum limits, sufficient to absorb possible cash losses in stress scenarios, measured with the use of internal and regulatory methods.

Additionally the following items for monitoring and supporting decisions are periodically prepared and submitted to senior management:

• Different scenarios projected for changes in liquidity.

• Contingency plans for crisis situations.

• Reports and charts that describe the risk positions.

• Assessment of funding costs and alternative sources of funding.

• Monitoring of changes in funding through a constant control of sources of funding, considering the type of investor, maturities and other factors.

III.I - Primary sources of funding

ITAÚ UNIBANCO HOLDING has different sources of funding, of which a significant portion is from the retail segment. Of total customers’ funds, 31.5% or R$ 373.0 billion, is immediately available to customers. However, the historical behavior of the accumulated balance of the two largest items in this group – demand and savings deposits - is relatively consistent with the balances increasing over time and inflows exceeding outflows for monthly average amounts.

Summary of Funding from Customers

Funding from customers 12/31/2022 12/31/2021

0-30 days Total % 0-30 days Total %

Deposits 360,548 871,438 402,930 850,372

Demand deposits 117,587 117,587 9.9% 158,116 158,116 14.8%

Savings deposits 179,764 179,764 15.2% 190,601 190,601 17.9%

Time deposits 57,365 564,215 47.7% 52,563 497,051 46.5%

Other 5,832 9,872 0.8% 1,650 4,604 0.4%

Funds from acceptances and issuance of securities ⁽¹⁾ 12,436 256,495 21.8% 2,310 143,138 13.4%

Funds from own issue ⁽²⁾ - 8 - - 21 -

Subordinated debt - 54,540 4.6% - 75,036 7.0%

Total 372,984 1,182,481 100.0% 405,240 1,068,567 100.0%

1) Includes mortgage notes, guaranteed real estate credit bills, agribusiness, financial recorded in interbank markets funds and Obligations on the issue of debentures, Securities abroad and strutured operations certificates recorded in Institutional Markets Funds.

2) Refers to deposits received under securities repurchase agreements with securities from own issue.

III.II - Control over liquidity

ITAÚ UNIBANCO HOLDING manages its liquidity reserves based on estimates of funds that will be available for investment, assuming the continuity of business in normal conditions.

During the period of 2022, ITAÚ UNIBANCO HOLDING maintained sufficient levels of liquidity in Brazil and abroad. Liquid assets totaled R$ 259.0 billion and accounted for 69.4% of the short term redeemable obligations, 21.9% of total funding, and 16.2% of total assets.

Summary of Liquidity Indicators

The table below shows the indicators used by ITAÚ UNIBANCO HOLDING in the management of liquidity risk:

Liquidity indicators 12/31/2022 12/31/2021

% %

Net assets / customers funds within 30 days ^(1,2) 69.4% 56.5%

Net assets / total customers funds ^(1,3) 21.9% 21.4%

Net assets / total financial assets ^(1,4) 16.2% 16.2%

1) Net assets (present value): Cash, Securities purchased under agreements to resell – Funded position and Government securities - available. Detailed in the table Non discounted future flows – Financial assets.

2) Funding from customers table (Total funding from customers 0-30 days).

3) Funding from customers table (Total funding from customers).

4) Detailed in the table Non discounted future flows – Financial assets, total present value regards R$ 1,595,176 (R$ 1,411,089 at 12/31/2021).

Assets and liabilities according to their remaining contractual maturities, considering their undiscounted flows, are presented below:

Undiscounted future flows, except for derivatives which are fair value 12/31/2022 12/31/2021

Financial assets ⁽¹⁾ 0 - 30 31 - 365 366 - 720 Over 720 days Total 0 - 30 31 - 365 366 - 720 Over 720 days Total

Cash 35,381 - - - 35,381 44,512 - - - 44,512

Interbank investments 225,253 57,085 1,797 1,493 285,628 195,260 32,238 4,535 1,670 233,703

Securities purchased under agreements to resell – Collateral held ⁽²⁾ 46,146 9,912 - 116 56,174 32,435 - - - 32,435

Securities purchased under agreements to resell – Collateral repledge 138,381 30,926 - - 169,307 105,875 19,355 - - 125,230

Interbank deposits ⁽⁴⁾ 40,726 16,247 1,797 1,377 60,147 56,950 12,883 4,535 1,670 76,038

Securities 214,486 55,033 28,743 230,772 529,034 158,915 30,191 45,156 223,244 457,506

Government securities -  available 188,251 - 2 - 188,253 145,989 453 483 6,737 153,662

Government securities – under repurchase commitments 6,196 27,370 12,194 37,632 83,392 1,337 13,446 27,132 35,575 77,490

Private securities -  available 19,995 24,066 11,986 128,862 184,909 11,247 13,349 12,062 133,385 170,043

Private securities – under repurchase commitments 44 3,597 4,561 64,278 72,480 342 2,943 5,479 47,547 56,311

Derivative financial instruments - Net position 22,572 15,577 10,093 29,966 78,208 15,492 17,924 8,826 26,803 69,045

Swaps 4,866 5,499 8,261 28,276 46,902 1,820 3,803 7,341 25,050 38,014

Options 15,610 6,649 802 610 23,671 10,599 9,216 683 754 21,252

Forwards 460 135 - 6 601 1,595 1,513 3 - 3,111

Other derivatives 1,636 3,294 1,030 1,074 7,034 1,478 3,392 799 999 6,668

Loan and lease operations ⁽³⁾ 93,627 314,332 154,386 334,402 896,747 77,663 282,913 135,840 315,004 811,420

Other financial assets 3 314 91 967 1,375 - 144 5 8 157

Total  financial assets 591,322 442,341 195,110 597,600 1,826,373 491,842 363,410 194,362 566,729 1,616,343

1) The assets portfolio does not take into consideration the balance of compulsory deposits in Central Bank, amounting to R$ 115,748 (R$ 110,392 at 12/31/2021), which release of funds is linked to the maturity of the liability portfolios. The amounts of PGBL and VGBL are not considered in the assets portfolio because they are covered in Note 26.
2) Net of R$ 14,576 (R$ 9,266 at 12/31/2021) which securities are linked to guarantee transactions  at B3 S.A. - Brasil, Bolsa, Balcão and the BACEN.
3) Net of payment to merchants of R$ 109,981 (R$ 92,011 at 12/31/2021) and the amount of liabilities from transactions related to credit assignments R$ 772 (R$ 1,004 at 12/31/2021).
4) Includes R$ 28,108 (R$ 40,221 at 12/31/2021) related to Compulsory Deposits with Central Banks of other countries.

Undiscounted future flows, except for derivatives which are fair value 12/31/2022 12/31/2021

Financial liabilities 0 – 30 31 – 365 366 – 720 Over 720     days Total 0 – 30 31 – 365 366 – 720 Over 720     days Total

Deposits 370,101 138,908 66,162 405,977 981,148 397,416 96,669 95,397 350,792 940,274

Demand deposits 117,587 - - - 117,587 158,116 - - - 158,116

Savings deposits 179,764 - - - 179,764 190,601 - - - 190,601

Time deposit 66,750 134,941 66,161 405,977 673,829 46,938 94,040 95,149 350,791 586,918

Interbank deposits 1,022 3,967 1 - 4,990 933 2,629 248 1 3,811

Other deposits 4,978 - - - 4,978 828 - - - 828

Compulsory deposits (49,497) (17,084) (8,119) (41,048) (115,748) (49,924) (12,461) (11,797) (36,210) (110,392)

Demand deposits (13,148) - - - (13,148) (17,812) - - - (17,812)

Savings deposits (27,923) - - - (27,923) (25,807) - - - (25,807)

Time deposit (8,426) (17,084) (8,119) (41,048) (74,677) (6,305) (12,461) (11,797) (36,210) (66,773)

Securities sold under repurchase agreements ⁽¹⁾ 297,853 1,900 6,597 15,387 321,737 265,184 5,615 7,020 5,943 283,762

Government securities 229,077 1,899 6,597 15,375 252,948 191,281 1,261 3,885 5,687 202,114

Private securities 23,709 1 - 12 23,722 26,141 3,621 2,775 18 32,555

Foreign 45,067 - - - 45,067 47,762 733 360 238 49,093

Funds from acceptances and issuance of securities ⁽²⁾ 10,532 52,792 61,847 152,502 277,673 2,986 35,346 30,927 83,967 153,226

Loans and onlending obligations ⁽³⁾ 35,747 70,549 10,734 11,284 128,314 9,875 71,278 9,491 12,868 103,512

Subordinated debt ⁽⁴⁾ 492 22,085 7,803 43,189 73,569 55 27,857 16,282 48,969 93,163

Derivative financial instruments - Net position 8,002 34,114 9,056 25,689 76,861 7,153 23,799 8,596 23,656 63,204

Swaps 2,835 5,114 7,344 23,775 39,068 1,562 3,970 6,944 22,170 34,646

Option 3,221 25,087 901 673 29,882 4,086 16,896 786 779 22,547

Forward 55 10 - - 65 762 - - - 762

Other derivatives 1,891 3,903 811 1,241 7,846 743 2,933 866 707 5,249

Other financial liabilities - 252 34 297 583 - 158 - 3 161

Total financial liabilities 675,359 302,967 153,854 611,957 1,744,137 632,745 248,261 155,916 489,988 1,526,910

1) Includes own and third parties’ portfolios.
2) Includes mortgage notes, Guaranteed real estate notes, agribusiness, financial recorded in interbank market funds and Obligations on issue of debentures, Securities abroad and Structured Transactions certificates recorded in institutional markets funds.
3) Recorded in funds from interbank markets.
4) Recorded in funds from institutional markets.

Summary of Off Balance Commitments

Off balance commitments 12/31/2022 12/31/2021

Note 0 – 30 31 – 365 366 – 720 Over 720     days Total 0 – 30 31 – 365 366 – 720 Over 720     days Total

Financial Guarantees 2,987 31,548 12,731 44,513 91,779 3,742 28,530 11,046 39,592 82,910

Commitments to be released 161,822 50,552 20,386 172,484 405,244 151,235 35,605 18,541 185,634 391,015

Letters of credit to be released 47,354 - - - 47,354 45,773 - - - 45,773

Contractual commitments - Fixed and Intangible assets 13 and 14 - - - 3 3 - 3 - - 3

Total 212,163 82,100 33,117 217,000 544,380 200,750 64,138 29,587 225,226 519,701

IV - Emerging Risks

They are those with a potentially material impact on the business in the medium and long terms, but for which there are not enough elements yet for their complete assessment and mitigation due to the number of factors and impacts not yet totally known, such as technological alternatives in replacement of traditional banking services and the demographic transition of clients in contrast to technological innovations. Their causes can be originated by external events and result in the emergence of new risks or in the intensification of risks already monitored by ITAÚ UNIBANCO HOLDING.

The identification and monitoring of Emerging Risks are ensured by ITAÚ UNIBANCO HOLDING’s governance, allowing these risks to be incorporated into risk management processes too.

V - Social, Environmental and Climate Risks

Social, environmental and climate risks are the possibility of losses due to exposure to social, environmental and/or climatic events related to the activities developed by ITAÚ UNIBANCO HOLDING.

Social, environmental and climate factors are considered relevant to the business of ITAÚ UNIBANCO HOLDING, since they may affect the creation of shared value in the short, medium and long term.

The Policy of Social, Environmental and Climatic Risks (Risks SAC Policy) establishes the guidelines and underlying principles for social, environmental and climatic risk management, addressing the most significant risks for the institution’s operation through specific procedures.

Actions to mitigate the Social, Environmental and Climatic Risks are taken based on the mapping of processes, risks and controls, monitoring of new standards related to the theme and recording of occurrence in internal systems. In addition to the identification, the phases of prioritization, response to risk, mitigation, monitoring and reporting of assessed risks supplement the management of these risks at ITAÚ UNIBANCO HOLDING.

In the management of Social, Environmental and Climatic Risks, business areas manage the risk in its daily activities, following the Risks SAC Policy guidelines and specific processes, with the support of specialized assessment from dedicated technical teams located in Corporate Compliance, Credit Risk and Modeling, and Institutional Legal teams, that act in an integrated way in the management of all dimensions of the Social, Environmental and Climatic Risks related to the conglomerate’s activities. As an example of specific guidelines for the management of these risks, ITAÚ UNIBANCO HOLDING has specific governance for granting and renewing credit in senior approval levels for clients in certain economic sectors, classified as Sensitive Sectors (Mining, Steel & Metallurgy, Oil & Gas, Textiles & Clothing, Paper & Pulp, Chemicals & Petrochemicals, Meatpacking, Crop Protection and Fertilizers, Wood, Energy, Rural Producers and Real Estate), for which there is an individualized analysis of Social, Environmental and Climate Risks. The institution also has specific procedures for the Institution’s operation (stockholders’ equity, branch infrastructure and technology), suppliers, credit, investments and key controls. Credit Risk and Modeling, Internal Controls and Compliance areas, in turn, support and ensure the governance of the business areas’ activities. The Internal Audit acts in an independent manner, assessing risk management, controls and governance.

Governance also counts on the Social, Environmental and Climatic Risks Committee, whose main responsibility is to assess and deliberate about institutional and strategic matters, as well as to resolve on products, operations, and services, among others involving the Social, Environmental and Climatic Risks.

Climate Risk includes: (i) physical risks, arising from changes in weather patterns, such as increased rainfall and temperature and extreme weather events, and (ii) transition risks, resulting from changes in the economy as a result of climate actions, such as carbon pricing, climate regulation, market risks and reputational risks.

Considering its relevance, climate risk has become one of the main priorities for ITAÚ UNIBANCO HOLDING, which supports the Task Force on Climate-related Financial Disclosures (TCFD) and it is committed to its implementation of its recommendations. With this purpose, ITAÚ UNIBANCO HOLDING is strengthening the governance and strategy related to Climate Risk and developing tools and methodologies to assess and manage these risks.

ITAÚ UNIBANCO HOLDING measures the sensitivity of the credit portfolio to climate risks by applying the Climate Risk Sensitivity Assessment Tool, developed by Febraban. The tool combines relevance and proportionality criteria to identify the sectors and clients within the portfolio that are more sensitive to climate risks, considering physical and transition risks. The sectors with the highest probability of suffering financial impacts from climate change, following the TCFD guidelines, are: energy, transport, materials and construction, agriculture, food and forestry products.

c) Capital Management Governance

ITAÚ UNIBANCO HOLDING is subject to the regulations of BACEN, which determines minimum capital requirements, procedures to obtain information to assess the global systemic importance of banks, fixed asset limits, loan limits and accounting practices, and requires banks to conform to the regulations based on the Basel Accord for capital adequacy. Additionally, CNSP and SUSEP issue regulations on capital requirements that affect our insurance operations and private pension and premium bonds plans.

The capital statements were prepared in accordance with BACEN’s regulatory requirements and with internationally accepted minimum requirements according to the Bank for International Settlements (BIS).

I - Composition and Capital Adequacy

The Board of Directors is the body responsible for approving the institutional capital management policy and guidelines for the capitalization level of ITAÚ UNIBANCO HOLDING. The Board is also responsible for the full approval of the ICAAP (Internal Capital Adequacy Assessment Process) report, the purpose of which is to assess the capital adequacy of ITAÚ UNIBANCO HOLDING.

The result of the last ICAAP, which comprises stress tests – which was dated December 2021 – indicated that ITAÚ UNIBANCO HOLDING has, in addition to capital to cover all material risks, a significant capital surplus, thus assuring the solidity of the institution’s equity position.

In order to ensure that ITAÚ UNIBANCO HOLDING is sound and has the capital needed to support business growth, the institution maintains PR levels above the minimum level required to face risks, as demonstrated by the Common Equity, Tier I Capital and Basel ratios.

12/31/2022 12/31/2021

Available capital (amounts)

Common Equity Tier 1 147,781 130,716

Tier 1 166,868 149,912

Total capital (PR) 185,415 169,797

Risk-weighted assets (amounts)

Total risk-weighted assets (RWA) 1,238,582 1,153,841

Risk-based capital ratios as a percentage of RWA

Common Equity Tier 1 ratio (%) 11.9% 11.3%

Tier 1 ratio (%) 13.5% 13.0%

Total capital ratio (%) 15.0% 14.7%

Additional CET1 buffer requirements as a percentage of RWA

Capital conservation buffer requirement (%) ⁽¹⁾ 2.50% 2.00%

Countercyclical buffer requirement (%) - -

Bank G-SIB and/or D-SIB additional requirements (%) 1.0% 1.0%

Total of bank CET1 specific buffer requirements (%) 3.50% 3.00%

1) For purposes of calculating the Conservation capital buffer, BACEN Resolution 4,783 establishes, for defined periods, percentages to be applied to the RWA value with a gradual increase until April/22, when it reaches 2.5%.

At 12/31/2022 the amount of perpetual subordinated debt that makes up Tier I capital is R$ 18,336 (R$ 18,167 at 12/31/2021) and the amount of perpetual subordinated debt that makes up Tier capital II is R$ 18,431 (R$ 19,469 at 12/31/2021).

The Basel Ratio reached 15.0% at 12/31/2022, an increase of 0.3 pp compared to 12/31/2021. The mainly effects were the result of the period, partially offset by the increase of Risk-Weighted Assets and the Prudential and Equity Adjustments.

Additionally, ITAÚ UNIBANCO HOLDING has a surplus over the required minimum Referential Equity of R$ 86,328 (R$ 77,490 at 12/31/2021), well above the ACP of R$ 43,350 (R$ 34,615 at 12/31/2021), generously covered by available capital.

The fixed assets ratio shows the commitment percentage of adjusted Referential Equity with adjusted permanent assets. ITAÚ UNIBANCO HOLDING falls within the maximum limit of 50% of adjusted PR, established by BACEN. At 12/31/2022, fixed assets ratio reached 19.9% (16.9% at 12/31/2021), showing a surplus of R$ 55,748 (R$ 56,280 at 12/31/2021).

II - Risk-Weighted Assets (RWA)

For calculating minimum capital requirements, RWA must be obtained by taking the sum of the following risk exposures:

RWA = RWA_CPAD + RWA_MINT+ RWA_OPAD

• RWA_CPAD = portion related to exposures to credit risk, calculated using the standardized approach.

• RWA_MINT = portion related to capital required for market risk, composed of the maximum between the internal model and 80% of the standardized model, regulated by BACEN Circular No. 3,646 and No. 3,674.

• RWA_OPAD= portion related to capital required for operational risk, calculated based on the standardized approach.

Summary of risk weighted assets

RWA

12/31/2022 12/31/2021

Credit  Risk - standardized approach 1,118,752 1,044,344

Credit risk (excluding counterparty credit risk) 1,016,137 922,824

Counterparty credit risk (CCR) 40,222 42,898

Of which: standardized approach for counterparty credit risk (SA-CCR) 25,361 27,616

Of which: other CCR 14,861 15,282

Credit valuation adjustment (CVA) 7,695 8,102

Equity investments in funds - look-through approach 8,002 5,001

Equity investments in funds - mandate-based approach 104 95

Equity investments in funds - fall-back approach 1,461 824

Securitisation exposures - standardized approach 4,408 2,195

Amounts below the thresholds for deduction 40,723 62,405

Market Risk 23,240 22,985

Of which: standardized approach (RWA_MPAD) 29,050 28,731

Of which: internal models approach (RWA_MINT) 23,097 14,751

Operational Risk 96,590 86,512

Total 1,238,582 1,153,841

III - Recovery Plan

In response to the latest international crises, the Central Bank published Resolution No. 4,502, which requires the development of a Recovery Plan by financial institutions within Segment 1, with total exposure to GDP of more than 10%. This plan aims to reestablish adequate levels of capital and liquidity above regulatory operating limits in the face of severe systemic or idiosyncratic stress shocks. In this way, each institution could preserve its financial viability while also minimizing the impact on the National Financial System.

IV - Stress testing

The stress test is a process of simulating extreme economic and market conditions on ITAÚ UNIBANCO HOLDING’s results, liquidity and capital. The institution has been carrying out this test in order to assess its solvency in plausible scenarios of crisis, as well as to identify areas that are more susceptible to the impact of stress that may be the subject of risk mitigation.

For the purposes of the test, the economic research area estimates macroeconomic variables for each stress scenario. The elaboration of stress scenarios considers the qualitative analysis of the Brazilian and the global conjuncture, historical and hypothetical elements, short and long term risks, among other aspects, as defined in CMN Resolution 4,557.

In this process, the main potential risks to the economy are assessed based on the judgment of the bank's team of economists, endorsed by the Chief Economist of ITAÚ UNIBANCO HOLDING and approved by the Board of Directors. Projections for the macroeconomic variables (such as GDP, basic interest rate, exchange rates and inflation) and for variables in the credit market (such as raisings, lending, rates of default, margins and charges) used are based on exogenous shocks or through use of models validated by an independent area.

Then, the stress scenarios adopted are used to influence the budgeted result and balance sheet. In addition to the scenario analysis methodology, sensitivity analysis and the Reverse Stress Test are also used.

ITAÚ UNIBANCO HOLDING uses the simulations to manage its portfolio risks, considering Brazil (segregated into wholesale and retail) and External Units, from which the risk-weighted assets and the capital and liquidity ratios are derived.

The stress test is also an integral part of the ICAAP, the main purpose of which is to assess whether, even in severely adverse situations, the institution would have adequate levels of capital and liquidity, without any impact on the development of its activities.

This information enables potential offenders to the business to be identified and provides support for the strategic decisions of the Board of Directors, the budgeting and risk management process, as well as serving as an input for the institution’s risk appetite metrics.

V - Leverage Ratio

The Leverage Ratio is defined as the ratio between Tier I Capital and Total Exposure, calculated according to BACEN Circular 3,748, which minimum requirement is of 3%. The ratio is intended to be a simple measure of non-risk-sensitive leverage, and so it does not take into account risk weights or risk mitigation.

d) Management Risks of insurance and private pension

I - Management Structure, roles and responsibilities

In line with good domestic and international practices, ITAÚ UNIBANCO HOLDING has a risk management structure that ensures that the risks arising from insurance and pension plans products are properly monitored and reported to the appropriate bodies. The management process of insurance and pension plans risks is independent and focuses on the specific nature of each risk.

ITAÚ UNIBANCO HOLDING has committees to define the management of funds from the technical reserves for insurance and private pensions, to issue guidelines for managing these funds with the objective of achieving long term returns, and to define valuation models, risk limits and strategies on allocation of funds to specific financial assets. The members of these committees are not only executives and those directly responsible for the business management process, but also heads and coordinators of commercial and financial areas.

II - Risks of Insurance and Private Pensions

Insurance and pension plan risks arise from losses that contradict the expectations of ITAÚ UNIBANCO HOLDING linked to the operations of products sold in SUSEP supervised entities.

The underwriting risk results from the use of methodologies and/or assumptions in the pricing or provision of products, which can materialize in different ways, contrary to the expectations of the product offered: (i) Insurance results from the change in risk behavior in relation to the increase in the frequency and/or severity of claims occurred, contrary to pricing estimates; (ii) Private Pension is observed in the increase in life expectancy or in deviation from the assumptions used in the technical reserves.

Estimated actuarial assumptions are based on the past experience of ITAÚ UNIBANCO HOLDING, on market benchmarks and on the experience of the actuaries.

II.I - Effect of changes on actuarial assumptions

To measure the effects of changes in the key actuarial assumptions, sensitivity tests were conducted in the amounts of current estimates of future liability cash flows. The sensitivity analysis, conducted semiannually, considers a vision impacts caused by changes in assumptions, which could affect the income for the period and stockholders’ equity at the balance sheet date. This type of analysis is usually conducted under the ceteris paribus condition, in which the sensitivity of a system is measured when one variable of interest is changed and all the others remain unchanged. The results obtained are shown in the table below:

Impact in Income and Stockholders’ Equity ⁽¹⁾

Sensitivity Test 12/31/2022 12/31/2021

Private Pension Insurance Private Pension Insurance

Mortality Rates

5% increase 48 (7) 45 (2)

5% decrease (49) 7 (48) 2

Risk-free Interest Rates

0.1% increase 110 7 102 10

0.1% decrease (113) (7) (104) (10)

Conversion in Income Rates

5% increase (13) - (11) -

5% decrease 15 - 11 -

Claims

5% increase - (50) - (58)

5% decrease - 50 - 58

II.II - Risk concentration

For ITAÚ UNIBANCO HOLDING, there is no product concentration in relation to insurance premiums, reducing the risk of product concentration and distribution channels.

Summary of risk concentration

01/01 to 12/31/2022 01/01 to 12/31/2021 01/01 to 12/31/2020

Insurance premiums Retained premium Retention (%) Insurance premiums Retained premium Retention (%) Insurance premiums Retained premium Retention (%)

Individuals

Group accident insurance 976 973 99.7% 884 883 99.9% 849 847 99.8%

Individual accident 153 149 97.5% 176 175 99.4% 192 187 97.4%

Credit Life Insurance 1,412 1,412 100.0% 1,008 1,008 100.0% 624 624 100.0%

Group Life 1,422 1,422 100.0% 1,168 1,165 99.7% 956 955 99.9%

III - Market, credit and liquidity risk

III.I - Market risk

Market risk is analyzed, in relation to insurance operations, using the following metrics and sensitivity and loss control measures: Value at Risk (VaR), Losses in Stress Scenarios (Stress Test), Sensitivity (DV01 - Delta Variation) and Concentration. In the table, the sensitivity analysis (DV01 – Delta Variation) is presented in relation to insurance operations that demonstrate the impact on the market value of cash flows when submitted to a one basis point increase in the current interest rate or indexer rate and one percentage point in the share price and currency.

Summary market risk

Class 12/31/2022 12/31/2021

Account balance DV01 Account balance DV01

Government securities

National Treasury Notes (NTN-C) 5,966 (3.19) 5,154 (3.05)

National Treasury Notes (NTN-B) 6,832 (7.01) 6,094 (6.24)

National Treasury Notes (NTN-F) 257 (0.14) 205 (0.11)

National Treasury Bills (LTN) 277 (0.05) 166 (0.01)

Corporate securities

Indexed to IGPM - - 7 (0.02)

Indexed to IPCA 404 (0.39) 355 (0.36)

Indexed to PRE 30 - 23 -

Indexed to PYG 76 (0.01) 30 (0.01)

Shares 630 6 947 9

Post-fixed assets 3,776 - 6,048 -

Under agreements to resell 3,500 - 1,895 -

Total 21,748 20,924

III.II - Liquidity Risk

Liquidity risk is identified by ITAÚ UNIBANCO HOLDING as the risk of lack of liquid resources available to cover its current obligations at a given moment. For insurance operations, the liquidity risk is managed continuously by monitoring payment flows against liabilities, compared to the inflows generated by its operations and financial assets portfolio.

Financial assets are managed in order to optimize the risk-return ratio of investments, considering, on a careful basis, the characteristics of their liabilities. The risk integrated control considers the concentration limits by issuer and credit risk, sensitivities and market risk limits and control over asset liquidity risk. Thus, investments are concentrated in government and private securities with good credit quality in active and liquid markets, keeping a considerable amount invested in short-term assets, available on demand, to cover regular needs and any liquidity contingencies. Additionally, ITAÚ UNIBANCO HOLDING constantly monitors the solvency conditions of its insurance operations.

Schedule of Liquidity Risk

Liabilities Assets 12/31/2022 12/31/2021

Insurance operations Backing asset Liabilities  amounts ⁽¹⁾ Liability Duration (months) Asset Duration (months) Liabilities  amounts ⁽¹⁾ Liability Duration (months) Asset Duration (months)

Unearned premiums
Financial treasury bills (LFT)

Repurchase agreements

National treasury bills (LTN)

National treasury notes (NTN-B)

National treasury notes (NTN-C)

National treasury notes (NTN-F)

Bank deposit certificates (CDB)

Financial bills (LF)

Debentures
3,615 52.0 15.0 2,846 55.6 20.3

IBNR, PDR and PSL 880 44.0 22.3 869 48.6 27.0

Redemptions and Other Unsettled Amounts 23 13.1 15.2 19 17.9 20.3

Mathematical reserve for benefits to be granted and benefits granted 30 71.6 19.6 19 122.6 27.4

Financial surplus - - - 1 149.5 20.3

Other provisions 135 4.8 81.5 129 7.0 90.0

Subtotal 4,683 3,883

Pension  plan, VGBL and individual life operations

Related expenses 49 96.5 69.4 65 103.8 76.3

Unearned premiums 12 19.6 11.3 12 16.0 18.5

Unsettled claims 74 19.6 11.3 79 16.0 18.5

IBNR 26 19.6 11.3 27 16.0 18.5

Redemptions and Other Unsettled Amounts 394 19.6 11.3 358 16.0 18.5

Mathematical reserve for benefits granted 4,015 96.5 69.5 3,786 103.8 76.4

Mathematical reserve for benefits to be granted – PGBL/ VGBL 216,735 155.3 50.7 197,897 134.0 55.2

Mathematical reserve for benefits to be granted – traditional 8,036 214.3 82.0 7,513 195.9 79.8

Other provisions 397 214.2 82.0 665 195.9 79.8

Financial surplus 729 214.3 82.0 691 195.9 79.8

Subtotal 230,467 211,093

Total technical reserves Total backing assets 235,150 214,976

1) Gross amounts of Credit Rights, Deposits in Guarantee and Reinsurance.

III.III - Credit Risk

III.III.I - Reinsurers

Reinsurance operations are controlled through an internal policy, in compliance with the provisions of the regulatory authority governing the reinsurers with which ITAÚ UNIBANCO HOLDING operates.

We present below a breakdown of the risks assigned by ITAÚ UNIBANCO HOLDING´s subsidiaries to reinsurance companies:

• Insurance Operations: reinsurance premiums operations are entirely represented by: IRB Brasil Resseguros S.A. with 32% (38% at 12/31/2021), Mapfre Re do Brasil Companhia de Resseguros with 31% (36% at 12/31/2021), Austral Resseguradora S.A. with 11% (4% at 12/31/2021), Swiss Reinsurance Company with 16%, and Everest Reinsurance Company with 10% (RGA Global Reinsurance Company LTD with 22% at 12/31/2021).

• Private Pension Operations: related to reinsurance premiums are entirely represented by Mapfre Re do Brasil Companhia de Resseguros with 60% (60% at 12/31/2021), Swiss Reinsurance Comp with 40% (RGA Global Reinsurance Company LTD with 40% at  12/31/2021).

III.III.II - Premiums Receivable

ITAÚ UNIBANCO HOLDING considers the credit risk arising from past-due premiums immaterial, since cases with coverage payment in default may be canceled, pursuant to Brazilian regulations.

III.III.III - Risk level of financial assets

The table below shows insurance financial assets, individually evaluated, classified by rating:

12/31/2022

Financial Assets at Amortized Cost Financial assets at fair value through profit or loss ⁽¹⁾ Financial assets at fair value through other comprehensive income Total

Internal rating Interbank deposits and securities purchased under agreements to resell Securities

Low 6,560 15,171 205,665 547 227,943

Medium - 117 25 - 142

High - - 11 - 11

Total 6,560 15,288 205,701 547 228,096

% 2.9% 6.7% 90.2% 0.2% 100.0%

1) Includes Derivatives in the amount of R$ 1,146.

12/31/2021

Financial Assets at Amortized Cost Financial assets at fair value through profit or loss ⁽¹⁾ Financial assets at fair value through other comprehensive income Total

Internal rating Interbank deposits and securities purchased under agreements to resell Securities

Low 4,062 11,401 188,480 587 204,530

Medium - - 1 - 1

High - - 10 - 10

Total 4,062 11,401 188,491 587 204,541

% 2.0% 5.6% 92.1% 0.3% 100.0%

1) Includes Derivatives in the amount of R$ 2,946.