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Unibanco and Unibanco Holdings, S.A. Consolidated Earnings 4 th Quarter 2005

Unibanco and Unibanco Holdings, S.A. Consolidated Earnings 4 th Quarter 2005 February 17 th , 2006. Investor Relations. Performance. 4Q05. 2005. D 2005 / 2004. Net Income. R$1,838 million. R$509 million. +43.3%. Operating Income. R$2,921 million. +49.0%. R$748 million. 24.2%.

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Unibanco and Unibanco Holdings, S.A. Consolidated Earnings 4 th Quarter 2005

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  1. Unibanco and Unibanco Holdings, S.A. Consolidated Earnings 4th Quarter 2005 February 17th, 2006 Investor Relations

  2. Performance 4Q05 2005 D2005 / 2004 Net Income R$1,838 million R$509 million +43.3% Operating Income R$2,921 million +49.0% R$748 million 24.2% 23.3% 21.1% 23.0% 21.0% 9.3 20.1% 9.0 9.3 17.8% 8.7 17.3% 16.8% 8.4 16.1% 8.1 8.1 7.9 7.7 7.4 3Q05 4Q04 1Q05 4Q05 1Q04 2Q04 3Q04 2Q05 2004 2005 Annualized ROAE (%) Stockholders’ Equity (R$ Bln)

  3. Highlights • 43.3% net income growth, 2005 versus 2004 • 7.2% net income growth, 4Q05 versus 3Q05 • Improvement in efficiency ratio: 49.2% in 4Q05 from 59.5% in 4Q04 Results • Individuals: 31.1% • Credit Cards: 43.2% • SMEs: 30.3% • Large Corporate: 19.0% Loan Portfolio Growth 25.4% total annual growth Cost Management • 1.0% decrease in personnel and administrative expenses, 4Q05 versus 4Q04 • Over the year, an increase of 0.7% • Units were included in the Ibovespa Index in May • Ibovespa’s best performing stock during 2H05, with a 72% gain • The largest increase in weighting within Ibovespa, 59% • 33% free float increase Units

  4. 2005 – A Retrospective

  5. Macroeconomic View Real GDP growth Public accounts under control (% of GDP) 4.9% 70 6 + 60 4.4% 5 50 4 40 3 30 2.5% 2 20 1.6% 1.5% 1 10 0.5% 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2005(E) 2000 2001 2002 2003 2004 Primary surplus Public debt Total Credit Expansion(R$ Bln) + 21.5% 607 + 19.6% 500 418 2003 2004 2005 Source: Brazilian Central Bank Loan portfolio/ GDP ratio: 31.3%1 1 preliminary data

  6. Businesses Highlights Retail • Retail segment surpassed 20 million clients • Expansion of Fininvest and Hipercard operations • SuperPoupe deposits reached R$3 billion • New positioning • New service model in the branch network, the “Novo Modelo de Atendimento” New logo New marketing campaign Wholesale • 19.0% loan portfolio growth, 2005 versus 2004 • Lead manager in the issuance of 18 debentures, ranking 1st by number of transactions and 2nd in origination and distribution • 2nd place in BNDES-Exim modality, reaching a 18% market share, and 3rd place in BNDES general ranking • Manager in 4 of the main Brazilian stock public offerings, totaling approximately US$1.5 billion - including the participation as lead manager of Unibanco’s Units and GDSs offering, the largest equity deal in Brazil since 2002 • Top 10 Research House, according to Institutional Investor. 1st place in Consumer Goods category and 3rd place in Aerospace, Transportation and Industrials category

  7. Businesses Highlights Insurance • Leadership in property, aviation, D&O, energy, and extended warranty products • Increase in the participation at IRB-Brasil Re to 11% • Issuance of the first environmental insurance policy in Brazil • Combined Ratio of 95.4% in 4Q05, the best ever for Unibanco AIG Seguros • 31.4% growth in Insurance and Private Pension Plans Technical Reserves in 2005 Wealth Management • Private Bank ranked 2nd in assets under management, with a 11.4% market share • Rating AMP1 (very strong) by Standard & Poors Rating Services • Top “Gestão de Renda Variável” asset management award - by Valor Econômico newspaper

  8. 2005 Highlights JanGlobal Public Offering of Units and GDSs JanQuarterly Interest on Capital Stock Mar New Marketing Campaign • Selling Shareholders: Commerzbank and BNL • Offering size: 6.6% of Unibanco’s capital • Price: R$15.65 per Unit • Financial volume: R$718.3 million • Demand: 4.9x Book • Quarterly payments of Interest on Capital Stock • Related to the year 2005, Unibanco declared R$ 617 million in Interest on Capital Stock/Dividends, up 38% from 2004 • New logo • New Service Model • A more transparent and agile bank, working to surpass client expectations

  9. 2005 Highlights MayUnits Included in the Ibovespa JulPerpetual Bonds • 0.984% weight at the time of inclusion in the Ibovespaindex • Since their inclusion in the Ibovespa, the Units achieved the largest weighting gain in the index’s portfolio • Units current weight in the Ibovespa is 1.564% • Issuance of Perpetual Bonds in July 2005: US$500 millions • 8.70% annual coupon • Call Option: subject to redemption, in whole, in Jul-2010 or in any subsequent interest payment date occurring thereafter

  10. 2005 Highlights SepGlobal Public Offering of Units and GDSs Dec Unibanco Units were Ibovespa’s best performers during 2H05 • Selling Shareholder: CGD (Caixa Geral de Depósitos) • Offering size: 12.3% of Unibanco’s capital • Price: R$20.49 per Unit and US$44.00 per GDS • Financial Volume: R$1,765 million • Demand: 3.0x Book • Until February 15, the Units and GDSs appreciated by 70% and 87%, respectively • 72% return versus 34% of Ibovespa • ADTV1 increased by 340.9%, reaching R$19.4 million in 2005, from R$4.4 million in 2004 • ADTV1 for 4Q05 peaked up to R$21.0 million at Bovespa and US$43.8 million at NYSE 1 Average daily trading volume

  11. 2005 Highlights Dec-05Units included in the Corporate Sustainability Index - ISE Feb-06 Moody's upgrades Unibanco's Financial Strength Rating • The index is an initiative of Bovespa, in partnership with IFC (International Finance Corporation) • ISE’s purpose is to measure the return of a theoretical portfolio comprised by shares of companies committed to social responsibility and corporate sustainability • Units current weight in the ISE index is 9.569% • According to the agency, this upgrade “reflects Unibanco's consistently robust core earnings and the management's ability to steer the bank towards higher-yielding businesses, while maintaining asset quality and controlling costs”.

  12. Fundamentals

  13. Shift in the Loan Portfolio Mix Migration to fast growing segments with higher margins 67% 50% 46% 44% 48% Wholesale 50% 54% 56% Retail 33% 52% Dec-99 Dec-03 Dec-04 Dec-05

  14. Focus on higher margin and fast growing businesses R$ millions Credit Cards Consumer Finance Companies 31.6% 43.2% 2,941 4,001 2,235 2,794 Dec-04 Dec-05 Dec-04 Dec-05 SMEs Auto Financing 30.3 % 25.2% 4,609 7,335 5,629 3,682 Dec-04 Dec-05 Dec-04 Dec-05

  15. Improved Funding Structure R$ millions SuperPoupe Deposits 2002 2003 2004 2005 3,044 12,451 8,973 8,647 10,811 Core deposits 2,628 2,350 Time deposits 16,710 22,720 23,048 17,015 1,962 1,625 Total deposits 25,357 35,499 25,988 33,531 1,030 Core Deposits Evolution: Comparison 403 Growth in 2005 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 15.2% National Financial System (1) 8.5% 1 preliminary data

  16. Cost Management R$ millions Efficiency Ratio Evolution 60.9% 63.4% 61.2% 59.5% 59.5% 53.7% 52.8% 51.3% 51.5% 49.2% D % 1,921 1,960 2,136 2,293 2,209 2,334 2,579 2,745 18.9% 8,310 9,878 1,143 1,242 1,308 1,365 1,232 1,323 1,351 1,186 0.7% 5,058 5,092 1Q04 2Q04 4Q04 4Q05 2004 2005 1Q05 2Q05 3Q05 3Q04 Efficiency Ratio Revenues Expenses

  17. Financial Performance

  18. Income Statement R$ millions 2005 4Q05 4Q04 Profit from Financial Intermediation 1,606 1,376 6,343 (+) Fees from Services Rendered 891 851 3,270 (-) Personnel & Administrative Expenses (1,351) (1,365) (5,092) (+/-) Other Operating Income / Expenses (398) (329) (1,600) (=) Operating Income 748 533 2,921 (+/-) Non-Operating Income 5 36 9 (+/-) Income Tax and Social Contribution (137) (101) (601) (Effective Income Tax Rate) 20% 20% 23% (-) Profit Sharing / Minority Interest (107) (93) (491) Net Income 509 375 1,838

  19. Performance: 2005 versus 2004 Basis 100 = 2004 146 125 129 115 100 100 100 100 Financial Margin before Provision Core Deposits Loan Portfolio Provision for Loan Losses 149 143 113 107 100 100 100 100 Adm. Expenses * Operating Income Net Income Fee Income * 2004 2005 (*) Excludes Credicard/Orbitall

  20. Financial Margin (before Provision for Loan Losses) 10.8% 10.8% 10.3% 9.7% 9.4% 4Q04 1Q05 2Q05 3Q05 4Q05 Loan Portfolio (R$ millions) Total Assets (R$ millions) 91,831 88,423 39,875 36,872 35,154 82,731 82,109 33,176 31,796 79,350 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Financial Indicators BIS Ratio (%) 18.2% 17.3% 16.4% 16.3% 16.1% Dec-04 Mar-05 Jun-05 Sep-05 Dec-05

  21. Earnings per Share 17.1% CAGR In R$ 1.32 + 43.5% 0.92 0.76 0.73 0.70 0.60 2000 2001 2002 2003 2004 2005

  22. Loan Portfolio Growth R$ millions 25.4% 8.1% 39,875 36,872 31,796 17,370 8.2% 16,052 14,597 8.1% 20,820 22,505 17,199 Dec-04 Sep-05 Dec-05 Retail Wholesale

  23. Loan Portfolio Growth – Individuals and Corporate • Main Highlights over 12 months: Individuals (R$ millions) 31.1% 7.9% 43.2% Credit Cards Consumer Finance Companies 31.6% 15,170 14,061 Auto Financing 25.2% 11,570 Branch Network 26.6% Dec-05 Dec-04 Sep-05 Corporate (R$ millions) 22.1% 8.3% SMEs 30.3% 24,705 22,811 19.0% Large Corporate 20,226 Dec-05 Dec-04 Sep-05

  24. Loan Portfolio Coverage Allowance for Loan Losses / Loan Portfolio Dec-05 Sep-05 Dec-04 Consumer Finance Companies 10.1% 10.0% 8.6% Credit Cards 6.1% 5.2% 5.3% Commercial Bank - Individuals 9.2% 8.1% 8.7% Auto Financing 3.6% 3.3% 2.5% SMEs 4.7% 4.2% 3.9% Retail 6.1% 5.6% 5.2% Wholesale 3.9% 3.9% 5.3% Unibanco Consolidated 5.2% 4.9% 5.2%

  25. Loan Portfolio Quality Loan Portfolio, by risk level Allowance for Loan Losses/ Loan Portfolio E-H 112% 112% 91.0% AA-C 92.3% 108% 92.7% 4.1% 3.1% 3.0% D 4.3% 4.6% 4.9% E-H Dec-04 Sep-05 Dec-05 Dec-04 Sep-05 Dec-05

  26. Deposits and Assets under Management R$ millions Dec-05 Sep-05 Dec-04 Demand deposits 3,778 3,505 3,220 Saving deposits 5,629 5,524 5,966 SuperPoupe 3,044 2,628 1,625 Core Deposits 12,451 11,657 10,811 Time deposits 23,048 22,897 22,720 Total Deposits (A) 35,499 34,554 33,531 Assets under Management (B) 37,396 35,700 32,979 Total Deposits + AUM (A+B) 72,895 70,254 66,510 Core Deposits / Total Deposits 35.1% 33.7% 32.2%

  27. Financial Margin 23.1% 20.4% 29.0% 22.6% 10.8% 10.0% 9.4% 8.9% 7.6% 7.7% 7.2% 7.1% 2004 2005 4Q04 4Q05 Provision for Loan Losses/ Financial Margin Financial Margin after Provision Financial Margin

  28. Fees from Services Rendered R$ millions 2005 2004 4Q05 4Q04 Banking fees and other fees and commissions 1,880 1,662 517 445 Credit Cards 1,051 841 289 248 Assets under management 339 385 85 98 Subtotal 3,270 2,888 891 791 Credicard and Orbitall - 353 - 60 - Total Fees from Services Rendered 3,270 3,241 891 851 891 851

  29. 4Q05 4Q04 2005 2004 Personnel Expenses 480 529 1,911 1,928 Other Administrative Expenses 871 787 3,181 2,834 Subtotal 1,351 1,316 5,092 4,762 Credicard and Orbitall - 49 - 296 Total 1,351 1,365 5,092 5,058 Personnel and Administrative Expenses R$ millions 186% 171% 161% 156% 66% 64% 64% 62% 4Q04 4Q05 2004 2005 Fees from Services Rendered/ Personnel Expenses Fees from Services Rendered/ Personnel and Adm. Expenses

  30. 2006 Perspectives

  31. 2006 Outlook 2005 2006 (E) GDP Growth 2.5% (E) 3.5% FX Rate R$/US$ (end-of-year) 2.34 2.25 SELIC (end-of-year) 18.00% 14.75% IPCA (Consumer Price Index) 5.7% 4.5% Trade Balance Surplus (US$) 44.8 bln 39.0 bln

  32. Main Challenges for 2006 • Client base expansion • Consolidation of the new marketing positioning • Additional cross-selling initiatives • Cost of funding optimization • Tight cost control

  33. For further information contact our Investor Relations Area atphone: 5511-3097-1980fax: 5511-3097-1585email: investor.relations@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 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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