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December 2003

Institutional Presentation. December 2003. Snapshot. (R$ billion - as of December 2003). Founded in 1924 Controlled by Moreira Salles Group Brazil’s oldest private sector bank 3 rd largest private sector bank Country’s largest consumer finance operation Universal Banking model

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December 2003

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  1. Institutional Presentation December 2003

  2. Snapshot (R$ billion - as of December 2003) • Founded in 1924 • Controlled by Moreira Salles Group • Brazil’s oldest private sector bank • 3rd largest private sector bank • Country’s largest consumer finance operation • Universal Banking model • Retail banking • Wholesale banking • Insurance / Pensions • Wealth Management $69.6 $27.9 $25.4 $7.2 Shareholders Equity Deposits Loans Assets BIS Ratio 18.6%

  3. Core Businesses December 31, 2003 Retail Wholesale Insurance Wealth Bank Bank and Pensions Management • Life • Automobile • Property & Casualty • Health • Homeowners • Pensions and Retirement Plans • Large and Middle Market Corporations • Trade Finance • Corporate Finance and Brokerage • Project Finance • Leasing • Treasury • Cash management • Mergers and Acquisitions • Asset Management • Private Banking • Higher and Middle Income Individuals • Lower Income Individuals • Small Companies • Credit Cards • Consumer Finance • Mortgage Finance • Savings Account Holders and Retirees • Savings, Capitalization, and Annuities

  4. Large Companies Private Bank (Annual Sales > R$150 million) (Financial Investment > R$1 million) Upper Middle Market UniClass Segment (R$40 million < Annual Sales < R$150 million) (Monthly Income > R$4,000) Banco1.net (Virtual Bank) (Monthly Income > R$800) Lower Middle Market (R$5 million < Annual Sales < R$40 million) Segmentation Exclusive Segment (R$1,300 < Monthly Income < R$4,000) Special Segment (R$350 < Monthly Income > R$ 1,300) Payroll Small Business (Annual Sales < R$5 million) Corporate Individuals Wholesale Bank Private Bank Retail Bank

  5. The Businesses

  6. Brand Positioning - Checking-account holders Monthly income over R$1,000 - Retirees - Payroll 12 million people Monthly income beetween R$350 and R$1,000 17 million people Monthly Income under R$350 37 million people Brands targeted for all segments Source: IBGE - 2000 census - Economically active population, over 10 years old

  7. Operational Highlights In Million Client Base 14.1 13.2 1.1 13.1 1.1 1.1 3.0 3.0 2.9 7.7 4.0 3.5 3.9 3.0 0.7 6.0 5.6 5.2 4.0 3.7 0.8 Dec-94 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Note: Unibanco includes saving account holders and retirees, from 1999.

  8. Distribution Network Evolution 10,230 226 + 9,861 127 173 347 333 5,616 CAGR = 34% 111 5,459 350 8,442 8,076 3,400 3,772 500 1,559 711 1,383 1,314 1,279 1,080 Dec- 99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-94... Note: Fininvest includes Fininvest stores and points-of-sale at retailers

  9. 53 297 105 1,384 Wide Distribution Network North 8 14 4 217 Northeast Network Mid-West 65 52 22 1,021 111 Fininvest Stores 36 25 6 376 25 8 Fininvest - Points of Sale 7,965 Southeast PontoCred 336 LuizaCred 173 654 258 63 4,559 225 140 873 Branches & in-store branches South 406 Corporate-site branches 2,020 Banco 24 Horas (ATMs) 110 57 181 16 1,792 86 25 11,884 TOTAL

  10. Consumer Companies Direct Management Indirect Management

  11. Consumer Companies Consumer Companies (including Credicard Group) R$ Million Main Indicators D % 2003 2002 2003/2002 Billings 23,067 20,139 14.5% Equity Income 504 407 23.8% Credit Portfolio 4,060 3,511 15.6% Loan Losses 765 881 -13.2% Loan Losses / Credit Portfolio 18.8% 25.1% -630 b.p. Volume of Transactions (in million) 338 274 23.4% Consumer Companies: Fininvest, Unicard, 50% LuizaCred, 50% PontoCred and 33.3% Credicard

  12. Consumer Companies Consumer Companies Managed by Unibanco R$ Million Main Indicators D % 2003 2002 2003/2002 Billings 10,088 9,277 8.7% Equity Income 308 163 89.2% Credit Portfolio 2,782 2,411 15.4% Loan Losses 647 778 -16.8% Loan Losses / Credit Portfolio 23.3% 32.2% -890 b.p. Volume of Transactions (in million) 122 111 9.9% ROAE 51.7% 36.8% 1,490 b.p. Consumer Companies Under Management: Fininvest, Unicard, 50% PontoCred and 50% InvestCred.

  13. Consumer Companies R$ Million Main Indicators D% 2003 2002 2003/2002 Billings 5,428 4,823 12.5% Equity Income 130 96 35.4% Credit Portfolio 1,065 915 16.4% Loan Losses 234 233 0.4% Loan Losses / Credit Portfolio 22.0% 25.5% -350 b.p. Number of Credit Cards (in thousands) 4,385 3,853 13.8% ROAE 76.5% 64.0% 1,250 b.p.

  14. Consumer Companies R$ Million Main Indicators D % 2003 2002 2003/2002 Billings 3,574 3,440 3.9% Equity Income 159 53 200.0% Credit Portfolio 1,358 1,202 13.0% Loan Losses 355 498 -28.7% Loan Losses / Credit Portfolio 26.1% 41.4% -1530 b.p. ROAE 49.5% 23.5% 2600 b.p. Administrative and Personnel Expenses 387 424 -8.7%

  15. Insurance + Private Pension Plans R$ Million D% 4Q03 3Q03 4Q02 2003 2002 2003/2002 Billings + Premiums Written 788 728 630 3,373 2,460 37.1% Net Income 54 57 62 258 254 1.6% Equity Income 27 28 31 129 127 1.6% Technical Reserves +40% 3,892 3,532 2,785 +10.2% +26.8% 3,071 2,723 2,004 821 781 809 825 825 Dec- 03 Dec-02 Jun-03 Insurance Private Pension Plans

  16. Insurance 7.21% Market Share – Premiums Written 6.65% 4.90% 2.88% 1998 2000 2002 Nov-2003 Source: SUSEP and ANS Administrative Expenses / Premiums Written 17.1% 13.0% 10.6% 9.8% 2000 2001 2002 2003

  17. Combined Ratio December 2003 Market Average 104.7 112.99% 108.91% 108.28% 107.07% 104.75% 103.06% 102.43% 99.80% 93.87% 84.57% BRADESCO AGF VERA CRUZ PORTO REAL ITAÚ SUL UASEG HSBC CAIXA SEGURO AMERICA SEGUROS * Includes Garantech Source: Susep

  18. Ranking 2003 Leadership • Fire • Transportation • Petrochemical • Aviation • D&O • Extended Warranty • Home* • Corporate Pension* * Second Position on this segments.

  19. Consolidated Results

  20. Performance Indicators R$ Million D% 2003 2002 2003/2002 Net Income 1,052 1,010 4.2% Earnings/1000 shares (R$) 7.65 7.29 4.9% Operating income 1,906 1,083 76.0% ROAE 15.3% 16.0% -70 b.p. BIS Ratio 18.6% 15.7% 290 b.p. Total Loans 27,917 26,751 4.4% Deposits+Funds 52,302 44,372 17.9% Stockholders' Equity 7,156 6,559 9.1% Dividends/Interest on Capital Stock- net 362 340 6.5%

  21. Financial Margin R$ Million D % 2003 2002 2003/2002 11,431 14,062 -18.7% Revenue from Financial Intermediation -41.2% (4,923) (8,366) Expenses on Financial Intermediation Financial Margin before Provisions for Loan Losses (A) 14.3% 6,508 5,696 Provisions for Loan Losses -20.8% (1,455) (1,837) Financial Margin after Provisions for Loan Losses 30.9% 5,053 3,859 Total Average Assets (-) Fixed Assets (B) 69,208 62,021 11.6% 9.4% 9.2% b.p. Net Financial Margin (A/B) 2.2

  22. Consolidated Results In R$ Million D % 2003 2002 5,053 3,859 31% Profit from Financial Intermediation 2,838 2,616 8% (+) Fee Income (4,578) (4,233) 8% (-) Personnel & Adm. Expenses (1,407) (1,159) 21% (+/-) Other Operating Income/Expenses 1,906 1,083 76% (=) Operating Income 11 29 -62% (+/-) Non-Operating Income (expenses), Net 1,917 1,112 72% (=) Income Before Taxes & Profit Sharing (493) 216 -328% (+/-) Income Tax & Social Contrib. (372) (318) 17% (-) Profit Sharing/Minority Interest Net Income 1,052 1,010 4%

  23. Securities Portfolio R$ Million Dec-03 % Porfolio Dec-02 % Porfolio Trading Securities 5,845 39% 4,957 28% Securities Available 3,452 23% 6,411 35% for Sale Securities Held to Maturity 5,773 38% 6,610 37% Total Securities 15,070 17,978

  24. Loan Portfolio Breakdown R$ Million 4.4% +4.9% 27,917 -0.5% 26,751 26,624 Wholesale Bank +3.8% 15,794 -4.1% 15,223 15,870 +6.3% +4.8% Retail Bank 12,123 11,401 10,881 Dec-02 Sep-03 Dec-03

  25. Loan Portfolio Breakdown R$ Million Individuals +8.6% 9,451 8,702 +4.4% 5,453 5,225 +15.4% +14.4% 2,326 2,015 1,672 1,462 Multiple Bank Fininvest / PontoCred / Total Individuals Unicard / 2002 and Other Companies LuizaCred Credicard 2003 Corporate +2.3% -4.7% 18,466 18,049 14,566 13,888 +31.8% +30.6% 3,064 2,324 1,514 1,159 Large Corporate Middle Market Small Companies Total Corporate

  26. AA A B C D-H AA-C Loan Porfolio / Total Loan Portfolio Loan Portfolio Breakdown 91.2% R$ Million 91.0% 90.5% 27,917 26,751 26,195 34.5% 34.9% 39.0% 29.0% 33.9% 34.5% 10.1% 9.9% 9.8% 17.0% 12.2% 7.9% 9.0% 9.5% 8.8% Dec-02 Jun-03 Dec-03

  27. Non-Accrual Portfolio / Loan Portfolio 140.5% 126.5% 115.1% 102.8% 96.6% 6.0% 5.5% 4.8% 4.4% 4.2% Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Coverage Ratio of Non-Accrual Portfolio Non-Accrual Portfolio / Loan Porfolio

  28. 13% 14% 87% 86% Dec-03 Dec-02 Loan Portfolio Net Write-Off / Loan Portfolio Required Provision vs. Additional 5.2% 3.9% 2002 2003 Additional Provision / Total Provision Minimum Required Provision / Total Provision

  29. Funding R$ Million +17.9% 52,302 44,372 +46.6% 26,945 18,384 25,988 25,357 -2.4% Dec-02 Dec-03 Deposits Funds

  30. Deposits and Funds Under Management R$ Million D Dec03-Sep03 D Dec03-Dec02 Dec-03 Sep-03 Dec-02 2,729 2,309 3,251 420 (522) Demand Deposits 5,918 5,509 5,722 409 196 Savings Deposits 16,710 17,168 17,015 (458) (305) Time Deposits 25,357 24,986 25,988 371 (631) Total Deposits 26,945 24,336 18,384 2,609 8,561 Funds 52,302 49,322 44,372 2,980 7,930 Deposits + Funds

  31. Issue Amount Date Term Maturity Coupon Return (p.y.) (Million) Issues – Capital Markets US$ 1.4 billion raised in 2003 EUROBONDS Jan-03 US$ 100 1 year Jan/04 6.875% 7.000% Jul-03 US$ 125 18 months Jan/05 4.000% 4.000% Jan-04* US$ 100 18 months Aug/05 3.000% 3.050% SECURITIZATION Libor + Libor + Jun-03 US$ 120 6 years Jul/09 4.250% 4.250% Jun-03 US$ 105 6 years Jul/09 6.150% 6.150% Libor + Libor + Nov-03 US$ 226 10 years Oct/13 2.860% 2.860% TIER II 1st to 5th year Dec/08 7.375% Dec-03 US$ 200 8.200% 6th to 10th year Dec/13 9.375%

  32. Net Revenue by Business 37% 46% 40% Net Financial Result 41% 27% 22% 25% 20% Banking Fees 15% 21% 21% 19% Credit Cards 12% 11% 11% 11% Insurance/Annuities/Pension Plans 7% 4% 4% Asset Management Fees 5% 1998 2000 2002 2003

  33. Fee Income / Personnel and Administrative Expenses 160.1% 158.9% 61.8% 62.0% 2002 2003 Fee Income / Personnel and Administrative Expenses Fee Income / Personnel Expenses

  34. 3,963 4,233 4,578 Total Expenses - Unibanco Consolidated Personnel and Administrative Expenses x IPC-A 23.0% IPC-A 15.5% Unibanco R$ million IPC-A 9.3% Unibanco 8.2% 2001 2002 2003 Total Expenses

  35. Unibanco Pessoas Human Resources

  36. Human Resources Critical Conditions to Strategy Positioning • Business units aligned with Unibanco’s goals • Employees’ commitment • Allows the long term strategy tracking • Objectives and challenges transparent to all employees Balanced Scorecard (BSC) Internally known as PDG – Painel de Gestão

  37. Human Resources Strategic Management: 5 Main Principles Mobilize change through leadership Make strategy a continual process Executives’ Commitment Performance Culture Planning and budget linked to BSC Data systems and analysis ORGANIZATION FOCUSED ON STRATEGY Translate the strategy into operational terms Make strategy everyone’s everyday job Align the organization to the strategy Strategy Communication Performance and Potential Evaluation Bonus based on performance Mission / Vision Strategic Maps Objectives, Ratios and Initiatives Relationship: Unibanco and Businesses Units Businesses Units and Support Units

  38. Human Resources Balanced Scorecard Hall of Fame Unibanco is now the first and only Latin American institution to appear in the Balanced Scorecard Hall of Fame, title reserved for the companies that excel in the implementation of the Balanced Scorecard (BSC) model.

  39. Human Resources PDG as an achiever to EVA (Economic Value Added) Making decisions Making decisions Managing from a value creation Managing from a value creation intended at adding intended at adding standpoint standpoint market value to Unibanco market value to Unibanco GVU GVU GVU Results Results Clients Clients ACHIEVER: PDG ACHIEVER: PDG Internal Internal Processes Processes People People and and Technology Technology

  40. Social Responsibility

  41. Social Responsibility – Instituto Moreira Salles Instituto Moreira Salles Created in 1990, committed exclusively to promote and develop cultural programs Conceives and executes the majority of its initiatives Priority to medium/long-term activities and projects Aiming to make culture even more accessible to the public Web Site: www.ims.com.br

  42. Social Responsibility – Instituto Moreira Salles Cultural Centers dedicated to photography, literature, music and history of Brazil. Espaços Unibanco de Cinema Cultural Centers Espaços Unibancode Cinema, a network of 35 movie theatres showing high quality / independent films. Poços de Caldas São Paulo São Paulo Rio de Janeiro Belo Horizonte The country’s largest private complex dedicated to culture and arts in Brazil. Belo Horizonte Rio de Janeiro Porto Alegre Fortaleza Juíz de Fora

  43. Social Responsibility – Instituto Moreira Salles Brazilian Literature Brochures Published twice a year by the Instituto Moreira Salles Institute since March 1996. Each publication is a monography that leans over the most important Brazilian authors Literary features, interviews, biographical data, declarations, photo’s archive and bibliography are some of the items that can found in these brochures. Since 2003, São Paulo State Bureau has addopted the Brazilian Literature Brochures to supply public schools and libraries.

  44. Social Responsibility – Unibanco Institute • 2002 – New Concept • Main focus definition, concentrating on Unibanco’s social activities. • To Promote Education Support dedicated to Non-Governamental Organizations or foundations focused on education and Unibanco Ecologia efforts directed to Environmental Education (Environment Defense and Preservation)

  45. Social Responsibility – Unibanco Institute Target: Mainly teenagers and young grown-ups Formal Education Teacher´s Skill Development Professional Education Employability

  46. Closing Remarks

  47. Corporate Governance Board of Directors – as of end of January 2004 Unibanco Unibanco Unibanco Holdings Chairman: Roberto Konder Bornhausen Chairman: Pedro Moreira Salles Vice-Chairman: Pedro Moreira Salles Vice-Chairmen: Gabriel Jorge Ferreira Pedro Sampaio Malan Board Members: Israel Vainboim Board Members: Israel Vainboim Tomas Zinner Pedro Bodin de Moraes Gabriel Jorge Ferreira Armínio Fraga Carlos Alberto Cruz Tomas Zinner Guilherme Affonso Ferreira Koji Yamada

  48. The largest consumer credit franchise in Brazil. Alliance with the world’s largest insurance company. Wholesale bank Benchmark for the industry. Cutting-edge wealth management expertise. Great opportunities of cross-selling. Experienced Management Team Improving eficciency ratios. Massive use of technology. The largest credit card operation in Brazil. Widespread distribution network A full-range product offering Comfortable capital adequacy ratio. Unibanco: Positioned for Growth In the year of its 80th anniversary, Unibanco enjoys an unique position in the Brazilian financial market.

  49. For further information contact our Investor Relations Area atphone: 5511-3097-1626 / 1313fax: 5511-3813-6182email: investor.relations@unibanco.com.br site: www.unibanco.com (select Investor Relations option) • 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 management’s good faith beliefs. they involve known and unknown risks and uncertainties that may cause the Company’s 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 Unibanco’s operations. markets. products and prices. and other factors detailed in Unibanco’s 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.

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