Title: Click to edit Master text styles
1Click to edit Master title style
- Click to edit Master text styles
- Second level
- Third level
- Fourth level
- Fifth level
Institutional Presentation June 2005
2Overview
3Unibancos profile
Unibanco
March/04
- Countrys largest consumer finance operation
- Universal Banking model
- Retail
- Wholesale
- Insurance / Pensions
- Wealth Management
- Established in 1924
- Controlled by the Moreira Salles Group
- Brazils oldest private sector bank
- 3rd largest private sector bank
Total Client Base
Wide Distribution Network
- 1,271 branches and corporate site branches
- 7,527 ATMs
- 255 Fininvest Stores
- 5 regional wholesale offices
- Offices and branches in Luxembourg, Cayman,
Assunción - Brokerages in São Paulo, New York and Luxembourg
Ratings
Foreign Currency Moodys
B2 / NP Standard Poors
BB- / B Fitch Ratings B /
BB-
4Snapshot of Unibanco
Multiple of Assets
Unibanco is Brazils third largest private bank,
and it is bridging the gap over its peers.
1990
2004
1- Banco do Brasil 13.8x 2- CEF 8.2x 3-
Bradesco 2.9x 4- Itaú 2.3x 5- Banespa 2.3x 6-
Bamerindus 1.6x 7- 1.0x 8- Econômico 0.9x 9-
Nossa Caixa 0.9x
1- Banco do Brasil 3.3x 2- Bradesco 2.0x 3-
CEF 2.0x 4- Itaú 1.7x 5- 1.0x 6- Santander
Banespa 0.9x 7- ABN Real Sudameris 0.8x 8-
Safra 0.6x 9- HSBC Lloyds 0.5x
Source Unibanco Research
5Shareholder structure
March 2005
Indireta
Shareholders
Total (Direct and Indirect)
ON
PN
59.4
UNIBANCO HOLDINGS
96.6
15.6
Moreira Salles Group
17.7
Caixa Brasil
7.5
0.1
Moreira Salles Group - Float
Units GDSs
31.9
Other
2.2
UNIT 63.8
4.8
Caixa Brasil
0.5
10.0
0.2
Moreira Salles Group - Float
0.03
0.3
31.9
Units GDSs
-
69.5
3.7
Other
2.9
4.6
TOTAL
100
100
100.0
6New Organizational Structure
Auditing Committee Gabriel Jorge
Ferreira Chairman Eduardo A. Guimarães Guy
Almeida Andrade Members
CEO Pedro Moreira Salles
Retail Márcio Schettini
Wholesale and Wealth Management Demosthenes
Madureira
Insurance and Pensions José Rudge
Treasury Daniel Gleizer
Legal, Auditing, and Risk Lucas Melo
Planning, Control, Operations, and IR Geraldo
Travaglia
Corporate Communication and HR Marcos Caetano
7Timeline
8Renewed Brand
9Business Units
10Unibanco Business Overview
In terms of Assets, Unibanco is the 3rd largest
privately held bank in Brazil, 5th in Latin
America and it is recognized as a benchmark in
the Brazilian wholesale banking segment
Retail and Consumer Credit
Insurance Annuity Unibanco AIG
- Offers banking services for individuals and small
companies with annual revenues lower than R150
million - Has 18.6 million clients and 16,382 points of
sale nationwide - Offers consumer financing via Fininvest, Banco
Dibens, PontoCred, LuizaCred, Hipercard among
others - Hipercard over 2.8 million cards issued and over
70,000 affiliated stores
- Offers a full range of insurance products for
individuals and corporate life, auto, assets,
disability, pension funds and annuities - 3 rank in Brazil with over 9 market share
- Leader in corporate risk insurance
- Pioneer and first mover in product development
As of March 31, 2005
- Total Assets R82.11 bln (US30.8 bln)
- Credit Portfolio R33.18 bln (US12.5 bln)
- Net Worth R8.36 bln (US3.1 bln)
- Net Profit 1Q05 R401 mln (US151 mln)
Wholesale
Wealth Management
- Offers investment products via Unibanco Asset
Management for individuals and institutional
investors and covers high net worth individuals
in the private banking segment - Total assets under management R34 billion
(US12.8 bln)
- Coverage of 2,000 corporates with annual revenues
greater than R150 million and institutional
investors in Brazil and internationally - One-stop-shop. Universal bank providing a full
range of financial services to corporate and
institutional investors treasury, derivatives,
cash management, project finance, investments,
financing, capital markets, MA, brokerage and
research
11Segmentation Strategy
12Large Scale Distribution - Retail
13Leading Consumer Finance Franchise
Alliances
Joint-Ventures
Fully Owned
142005 Perspectives
Focus on higher margin and fast growing businesses
Consumer Finance
Branch Network
Credit Cards
High
SMEs
Autos
Private
Margin
UAM
Insurance Pension
Low
Wholesale
Low
High
Growth
151Q05 Results
16Unibanco in 1Q05
D 1Q05 / 1Q04
45.3
Net Income R401 million Operating Income
R711 million Annualized ROAE ()
51.0
21.0
20.1
17.8
17.3
16.1
1Q04
2Q04
3Q04
4Q04
1Q05
17Stockholders Equity and ROAE
R billion
21.0
20.1
17.8
8.4
17.5
17.3
17.1
16.5
16.1
8.1
7.9
13.8
7.7
7.4
7.2
7.0
6.8
6.7
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
ROAE ()
Stockholders Equity
18Performance Indicators
R Million
D
D
1Q05
4Q04
1Q04
Qtr
Year
Net Income
401
375
276
6.9
45.3
Operating Income
711
533
471
33.4
51.0
Financial Margin After Provision for Loan Losses
7.6
7.0
7.2
Total Assets
82,109
79,350
71,505
3.5
14.8
Stockholders Equity
8,363
8,106
7,358
3.2
13.7
Annualized ROAE
21.0
20.1
16.1
Earnings per Share (R)
0.29
0.27
0.20
7.4
45.0
BIS Ratio
16.4
16.3
18.1
Efficiency Ratio
53.7
59.5
59.5
19Income Statement
R Million
20Financial Margin
R Million
21Efficiency
R Million
59.5
59.5
53.7
64.8
64.6
62.3
1,365
1,186
1,143
741
851
766
1Q04
4Q04
1Q05
Efficiency Ratio
Fee Income/ Personnel and Administrative Expenses
Personnel and Administrative Expenses
Fee Income
22Personnel Administrative Expenses
R Million
Excluding Credicard and Orbitall
61.3
64.6
60.1
1,316
1,186
1,071
656
791
766
1Q04
4Q04
1Q05
Fee Income/ Personnel and Administrative Expenses
Personnel and Administrative Expenses
Fee Income
23Personnel and Administrative Expenses
R Million
D
D
1Q05
4Q04
1Q04
Qtr
Year
Commercial Bank
772
879
729
-12.2
5.9
Subsidiaries
375
384
338
-2.3
10.9
Acquired Companies
39
53
4
-26.4
875.0
Subtotal
1,186
1,316
1,071
-9.9
10.7
Credicard / Orbitall
-
49
72
Total
1,186
1,365
1,143
-13.1
3.8
24Personnel and Administrative Expenses
R Million
Excluding Credicard and Orbitall
Consolidated
Subsidiaries
Commercial Bank
-12.2
-5.3
-9.9
1,316
1,186
879
-6.0
772
787
740
437
-8.0
461
-3.1
414
424
326
-15.7
-16.7
-11.7
316
529
446
418
348
111
98
4Q04
1Q05
4Q04
1Q05
4Q04
1Q05
Administrative Expenses
Personnel Expenses
25Employees
Number of Employees
Number of Officers
- 4.4
28,229
-20.0
27,408
26,982
155
124
-2.9
-1.6
Mar-05
Jun-04
Dec-04
Mar-04
Mar-05
26Loan Portfolio Growth
R Million
22.2
D Mar-05 / Mar-04
4.3
17.2
33,176
31,796
Individuals 30.8
27,140
12,199
5.4
11,570
24.1
9,324
3.7
13.5
Corporate 17.7
20,977
20,226
17,816
Mar-04
Dec-04
Mar-05
27Loan Portfolio Quality
Allowance for Loan Losses / Loan Portfolio
Mar-04
Dec-04
Mar-05
Auto Financing
2.0
2.5
2.7
Consumer Companies
9.3
6.8
6.5
Commercial Bank and other Companies
4.8
5.4
5.2
5.1
5.2
5.1
28Loan Portfolio Quality
Loan Portfolio E-H (overdue gt90 days) / Loan
Portfolio
Allowance for loan losses / Loan Portfolio E-H
108.9
5.4
107.8
4.9
91.5
4.7
Mar-04
Mar-05
Mar-04
Mar-05
Dec-04
Dec-04
29Loan Portfolio Mix
R Million
27,140
31,796
33,176
49
54
55
51
46
45
Mar-04
Dec-04
Mar-05
Wholesale
Retail
30Continuous growth in Retail
R Million
37.5
5.7
18,185
17,199
32.8
30.8
44.3
53.4
21.2
13,225
6.3
-5.9
14.5
5.9
7.2
5,986
5,629
3,901
3,900
3,273
3,682
2,859
2,982
2,700
2,794
2,396
2,630
2,235
1,661
1,981
Commercial Bank Others
Auto Financing
Consumer Finance Division
Credit Cards
SMEs
Total Retail
Mar-04
Dec-04
Mar-05
31Retail Portfolio Breakdown
Mar-05
Total Retail R18,185 Million
32Retail Portfolio Breakdown
Mar-05
Fininvest R1,739 Million LuizaCred R234
Million PontoCred R423 Million
Credit Portfolio
Individuals
Total Retail R18,185 Million
33Retail Portfolio Breakdown
Mar-05
Unicard R1,577 Million Hipercard R1,053 Million
Credit Portfolio
Individuals
Total Retail R18,185 Million
34Credit Cards Cards Issued
Millions of Cards
UNIBANCO
9.6
Itaú
7.52
7.29
Credicard
Ourocard
7.17
Bradesco
7.09
35Wholesale Loan Portfolio
Large Corporate
R Million
7.7
2.7
14,991
14,597
13,915
Mar-04
Dec-04
Mar-05
36Funding and Assets under Management
R Million
D
D
Mar-05
Dec-04
Mar-04
Qtr
Year
Demand deposits
3,415
2,525
6.1
35.2
3,220
Saving deposits
5,801
5,798
-2.8
0.1
5,966
SuperPoupe
1,962
20.7
-
1,625
Core Deposits (A)
11,178
8,323
3.4
34.3
10,811
Time deposits and interbank deposits (B)
23,791
19,091
4.7
24.6
22,720
Total Deposits (AB)
34,969
27,414
4.3
27.6
33,531
Assets under management (C)
34,206
29,324
3.7
16.6
32,979
Total Deposits Funds (ABC)
69,175
56,738
66,510
4.0
21.9
37Insurance and Private Pension Plans
R Million
1Q05
1Q04
D
Year
Net Premium Written Pension Plan Revenues
1,178
1,027
14.7
Net Income
76
69
10.1
Combined Ratio
98.6
98.8
-0.2 p.p.
Extended Combined Ratio
85.1
85.0
0.1 p.p.
Technical Reserves
37.3
5,941
5,535
4,326
1,217
1,101
947
4,724
4,434
3,379
1Q04
4Q04
1Q05
Insurance
Private Pension
38Unibanco Shares
39Unibanco shares
- Quarterly Dividends
- The first quarterly payment of interest on
capital stock took place on April, 2005. -
- Next payments on July/05, October/05,
January/06. - Units in the Ibovespa
- Unibanco Units (UBBR11) became part of the
Ibovespa index portfolio in May 2005, with an
initial weight of 0.984.
40Unibanco shares
Liquidity Increase in Bovespa
41Unibanco shares
R Million
1Q04
2Q04
3Q04
4Q04
1Q05
Daily volume traded (R Million)
55.7
47.7
35.0
30.3
86.8
Bovespa ( of trades)
8
7
13
18
32
NYSE ( of trades)
92
93
87
82
68
Units weight in the indexes ()
IBrX-50
-
-
2.72
2.93
2.96
Ibovespa
-
-
-
-
0.98
()
P/BV
1.33
1.11
1.22
1.44
1.54
() GDS
Market Capitalization (R Billion)
9.8
8.6
9.7
11.7
12.8
42Perspectives
432005 Perspectives
2004
2005(E)
GDP Growth
5.2
3.5
Fx Rate R/US (end-of-year)
2.6544
2.70
SELIC (end-of-year)
17.75
18.25
7.6
6.4
IPC-A
442005 Perspectives
Estimates
Loan Portfolio
17-22
Corporate
10-15
Large
7-12
Small /Medium
25-30
Individuals
22-27
Commercial bank and other companies
25-30
Consumer Finance
25-30
Credit Cards
15-20
Administrative Expenses
lt 5
45Social Responsibility
46Instituto Moreira Salles
- Established in 1990, Instituto Moreira Salles
mission is to promote and develop cultural
projects. - Conceives and executes the majority of its
initiatives.
- Recitals
- Courses and art workshops
- Popular Music Memory
- IMS maintains 4 Cultural Centers in Rio de
Janeiro, São Paulo and Minas Gerais - Coordination of 54 art film theaters (Espaço
Unibanco / Unibanco Arteplex).
Together, these centers constitute the largest
private complex dedicated to arts and culture in
Brazil
47Instituto Unibanco
Target Mainly teenagers and youngsters
Formal Education Teachers Skill
Development Professional Education Employability
48Microcredit
- Microinvest a partnership between International
Finance Corporation (IFC) and Unibanco - Controlling Shareholders 75 Banco Fininvest
and 25 IFC - Offers loans to micro and small entrepreneurs,
between R 400.00 and R 10,000.00, helping them
start and consolidate their businesses.
- Established on October 2003
- Points of sale (SP, RJ and RS)
- Fininvest stores
- 2 points of sale in poor communities Rocinha and
Jardim Ângela
49Sustainable economic development
- Initiative led by the International Finance
Corporation and a group of banks in 2002 - Unibanco was the first emerging market bank to
adopt the Equator Principles - Equator Principles are a set of social and
environmental voluntary criteria used to evaluate
and approve credit for infrastructure projects
over US50 million - Demonstration effect to stimulate other banks to
join.
Corporate loans other than Equator-regulated
procedures to evaluate and monitor environmental
risks.
50For further information contact our Investor
Relations Area atphone 5511-3097-1980fax
5511-3813-6182email investor.relations_at_unibanco.
com site www.ir.unibanco.com
This presentation contains forward-looking
statements regarding Unibanco. its subsidiaries
and affiliates - anticipated synergies. growth
plans. projected results and future strategies.
Although these forward-looking statements reflect
managements good faith beliefs. they involve
known and unknown risks and uncertainties that
may cause the Companys actual results or
outcomes to be materially different from those
anticipated and discussed herein. These risks and
uncertainties include. but are not limited to.
our ability to realize the amount of the
projected synergies and the timetable projected.
as well as economic. competitive. governmental
and technological factors affecting Unibancos
operations. markets. products and prices. and
other factors detailed in Unibancos filings with
the Securities and Exchange Commission which
readers are urged to read carefully in assessing
the forward-looking statements contained herein.
Unibanco undertakes no duty to update any of the
projections contained herein.