Itaú Unibanco Introduces Voluntary Retirement Program, While Profits Rise

RIO DE JANEIRO, BRAZIL – Itaú Unibanco announced on Monday, July 29th, a net taxable income for the second quarter of 2019 of R$ 6.815 (US$1,78) billion, an increase of 9.1 percent in comparison to the same period of the previous year (R$ 6.244 billion).

In relation to the first quarter, taxable income increased 1.6 percent (R$ 6.710 billion).
The bank’s recurring net income, which excludes one-off factors in the fiscal quarter, totaled R$ 7.034 billion between April and June, a 10.2 percent increase over the same period in 2018 (R$ 6.382 billion) and 2.3 percent over the same period in the first quarter (R$ 6.877 billion).

According to Itaú, the result for the second quarter was driven by growth in its loan portfolio and an increase in revenues generated by services.

The bank further announced the introduction of a Voluntary Retirement Program (PVD), which will start on August 1st and will last until August 31st.

The announcement was made in a statement released to the market, and applies to “all companies exclusively controlled by Itaú Unibanco Holding S.A. in Brazil.” The bank failed to provide information on the financial impact expected from the measure and the expectation of employee involvement.

The company offers two forms of termination. An employee wishing to join the PVD may choose between:

• Receiving half a month’s salary for each year worked in the company, without exceeding a limit of six salaries, plus maintenance of the health plan for five years;
• Receiving half a month’s salary for each year worked in the company, without exceeding a limit of ten salaries, plus the maintenance of the health plan for two years.

According to the company, “both packages provide additional benefits, such as profit sharing and payment of all legal termination indemnities.”

Itaú was the second bank to announce an employee termination plan. Earlier, Banco do Brasil advised that it would introduce a set of measures to promote an institutional reorganization, which would include an adjustment in the bank’s staff, with the implementation of an encouraged termination plan.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error