Material Fact: Itaú Wins The Bidding Process Promoted By Minas Gerais For Payroll Management Services

Itaú Unibanco has successfully won a bidding process on July 16, 2021, to provide payroll management services for the State of Minas Gerais.

Rhea-AI Summary

Itaú Unibanco has successfully won a bidding process on July 16, 2021, to provide payroll management services for the State of Minas Gerais. This lucrative contract involves managing payroll for approximately 618,000 public servants and includes a monthly amount of R$ 4.8 billion. The proposal also entails a cash payment of R$ 2.4 billion, which will be recorded as intangible and recognized on a deferred basis. This initiative supports Itaú's phygital strategy, enhancing service accessibility through online accounts and dedicated physical sites.

Positive

• Won a significant contract for payroll management services amounting to R$ 4.8 billion.
• Cash payment of R$ 2.4 billion recognized as intangible, positively impacting future earnings.
• Expanding client service options through a phygital strategy, including online account openings.

Negative

• None.

Argus Session date unavailable

-3.37% session move Open Argus

Details

News Market Reaction – ITUB

The recorded move for ITUB in the trading session of this news was -3.37%.

Data tracked by StockTitan Argus. Session date unavailable.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

SÃO PAULO, July 16, 2021 /PRNewswire/ -- ITAÚ UNIBANCO HOLDING S.A. ("Itaú Unibanco") announces to its stockholders that it won as of today, July 16, 2021, the bidding process promoted by the State of Minas Gerais, as it has presented the best financial proposal for the rendering of payroll management services, for five years, to state public servants (active, retirees and pensioners), and to companies that are suppliers of the State, totaling a monthly amount of approximately R$ 4.8 billion ("operation").

The proposal establishes a payment in cash of R$ 2.4 billion for payroll management. This payment will be recorded as "Intangible" and recognized in the statement of income on a deferred basis.

This operation reaches 618 thousand public servants, 20% of which concentrated in the metropolitan region of Belo Horizonte; a balance of payroll loans portfolio of R$ 7.7 billion and; 6.3 thousand companies that are suppliers of the State.

Itaú Unibanco will allow current accounts to be opened fully online and at new dedicated physical sites, in addition to our branches already existing in the State. This operation falls into the Phygital (physical and digital) strategy, which is targeted to offering service models to the most varied client profiles.

The agreement is now on its formalization phase.

São Paulo (State of São Paulo), July 16, 2021.

RENATO LULIA JACOB
Group Head of Investor Relations and Market Intelligence

Itaú Unibanco – Comunicação Corporativa
(11) 5019-8880 / 8881 – imprensa@itau-unibanco.com.br

View original content:https://www.prnewswire.com/news-releases/material-fact-itau-wins-the-bidding-process-promoted-by-minas-gerais-for-payroll-management-services-301335884.html

SOURCE Itaú Unibanco Holding S.A.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the significance of Itaú Unibanco winning the bidding process in Minas Gerais?

Itaú Unibanco's win signifies a major contract worth R$ 4.8 billion for payroll management services for public servants, enhancing its revenue and market position.

How many public servants will benefit from Itaú Unibanco's payroll management services?

Approximately 618,000 public servants will benefit from the payroll management services provided by Itaú Unibanco.

What is the cash payment amount linked to the payroll management services contract?

The cash payment linked to the contract is R$ 2.4 billion, which will be recorded as intangible and recognized on a deferred basis.

What strategy is Itaú Unibanco implementing with this new contract?

Itaú Unibanco is implementing a phygital strategy, allowing for both online account openings and dedicated physical sites to enhance service delivery.

When was the contract for payroll management services awarded to Itaú Unibanco?

The contract was awarded on July 16, 2021.