1 / 45

Institutional Presentation September 2006

Unibanco and Unibanco Holdings, S.A. Institutional Presentation September 2006. Investor Relations. Overview of Unibanco. Highlights. Controlled by the Moreira Salles group. Publicly traded at Bovespa (Brazil) and NYSE. Level I Corporate Governance on the Bovespa.

mohawk
Download Presentation

Institutional Presentation September 2006

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unibanco and Unibanco Holdings, S.A. Institutional Presentation September 2006 Investor Relations

  2. Overview of Unibanco

  3. Highlights Controlled by the Moreira Salles group Publicly traded at Bovespa (Brazil) and NYSE Level I Corporate Governance on the Bovespa Level III ADR on the NYSE and a member of IBOVESPA Very liquid stock: R$28.8 mln / US$13.2 mln ADTV* at Bovespa R$55.6 / US$25.3 mln ADTV* at NYSE Financial statements in US GAAP since 1997 *In 3Q06

  4. A Snapshot of Unibanco

  5. Organizational Structure • Prominent Board Members • Independent Audit Committee

  6. Timeline Over 80 years of history to become one of the leading full service banks in Brazil

  7. Segmentation and Distribution Nationwide Distribution Client Focus (As of September 2006)

  8. Client Base

  9. Universal Bank Greater focus on higher margin and faster growing businesses

  10. Consumer Finance

  11. Credit Cards

  12. Credit Cards: Hipercard Presence troughout the country 2004: 9 Northeast capitals 2006: 18 capitals among Northeast, South and Southeast

  13. Partnerships – Unibanco and Ipiranga

  14. Partnerships – Unibanco and VR

  15. Partnerships – Unibanco and Banco Cruzeiro do Sul

  16. Financial Performance

  17. Performance 9M06 D3Q06/3Q05 1,634 + 19% + 19% 2,609 R$ Millions 3Q06 D9M06/9M05 Net Income(1) 566 + 23% Operating Income + 21% 906 24.8% 23.1% 24.7% 23.3% 21.3% 10.1(1) 10.1(1) 9.8 9.0 9.0 16.4% 17.8% 7.9 7.9 3Q04 3Q05 2Q06 3Q06 9M05 9M04 9M06 Annualized ROAE (%) Stockholders’ Equity (R$ Bln) (1) Before the extraordinary event

  18. Goodwill Amortization Goodwill amortization period: • R$460 million accounted as an Extraordinary Result 10 years • Interest on Capital Stock/Dividends of 2006 will disregard the extraordinary effect of the goodwill amortization 5 years R$ Millions Net Income Stockholders´Equity ROAE 9M06 3Q06 9M06 Before Extraordinary Event 10,070 566 1,634 23.1% Extraordinary Result (460) (460) (460) After Extraordinary Event 9,610 106 1,174 16.9%

  19. Goodwill Amortization Expenses R$ Millions Former Criteria - 10 years Goodwill Balance Sep-06 Amortization 2012 to 2016 4Q06 2007 2008 2009 2010 2011 1,062 (37) (156) (167) (171) (175) (86) (270) New Criteria - 5 years Goodwill Balance Sep-06 Amortization 2012 to 2016 4Q06 2007 2008 2009 2010 2011 - 598 (46) (176) (169) (113) (76) (18) • R$(464) million - Impact in net income due to reduction in the • goodwill amortization period from 10 to 5 years. • The R$(464) million does not consider the goodwill amortization related to the 3Q06. Therefore, the net income of R$566 million was impacted by a goodwill • amortization expense of R$ 33 million related to this quarter.

  20. Highlights • Unibanco total assets surpassed the mark of R$100 billion in 3Q06 Assets Destaques • Improvement of loan portfolio quality • 3.3% growth in the quarter • Up 17.5% in 12 months. Highlight: 30.2% growth in credit card portfolio Loan Portfolio Provision for loan losses • Reduction of 13.3%, 3Q06 versus 2Q06 • 23% net income growth, 9M06 versus 9M05 (21% growth in operating income) • Financial Margin (before provisions for loan losses) grew to 10.4% in 9M06, vis-a-vis 10.0% in 9M05 – despite declining interest rates Results

  21. Highlights • Efficiency ratio of 48.5% in 9M06, a 400 b.p. improvement over 9M05 (52.5%) • 0.7% variation in personnel expenses, 3Q06 versus 2Q06 Efficiency • Technical Reserves: R$7.9 billion in September 2006, compared to R$6.7 billion in September 2005 • 94.5% combined ratio in 9M06, from 99.3% in 9M05 • 50.3% loss ratio in 9M06, from 53.7% in 9M05 Insurance Units UBBR11 • 15% gain in 3Q06, while the Ibovespa stayed flat • Larger weighting in the Ibovespa index: 1.935% (0.984% in May, 2005)

  22. Financial Indicators R$ Millions Loan Portfolio Total Assets 101,999 43,323 98,217 41,929 39,875 39,684 93,770 36,872 91,831 88,585 Sep-06 Sep-05 Dec-05 Mar-06 Jun-06 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Profit from Financial Intermediation Earnings per Unit (R$) 2,481 2,392 0.39 2,357 0.38 2,262 0.37 0.36 2,141 0.33 3Q05 4Q05 1Q06 2Q06 3Q06 3Q05 4Q05 1Q06 2Q06 3Q06

  23. Income Statement R$ Millions 3Q06 2Q06 3Q05 9M06 9M05 Profit from Financial Intermediation after Provisions for Loan Losses 1,902 1,724 1,638 5,341 4,742 (+) Fees from Services Rendered 909 901 847 2,673 2,381 (-) Personnel & Administrative Expenses (1,458) (1,373) (1,324) (4,186) (3,744) (+/-) Other Operating Income / Expenses (447) (383) (398) (1,219) (1,217) (=) Operating Income 906 869 763 2,609 2,162 (+/-) Non-Operating Income (27) 1 (1) (29) 15 (+/-) Income Tax and Social Contribution (155) (159) (170) (461) (465) (Effective Income Tax Rate) 21% 21% 25% 21% 24% (-) Profit Sharing / Minority Interest (158) (163) (117) (485) (383) Net Income(1) 566 548 475 1,634 1,329 (1) Before the extraordinay event

  24. Performance – 9M06 versus 9M05 9M05 = 100

  25. Loan Portfolio Growth R$ Millions 17.5% 3.3% 43,323 41,929 36,872 24,338 Retail 23,934 1.7% 21,193 5.5% Wholesale 17,995 18,985 17,995 15,679 Sep-05 Jun-06 Sep-06

  26. Loan Portfolio Growth – Individuals and Corporate Main Highligths D Year D Quarter R$ Millions Individuals 13.5% 2.1% Credit Cards 30.2% 5.2% 16,383 Consumer Finance Companies 2.6% -5.7% 16,048 14,434 20.4% 4.4% Car Loans Motorcycle Financing -41.7% -18.1% Sep-06 Sep-05 Jun-06 Branch Network 11.9% 5.3% Corporate R$ Millions 20.1% 4.1% SMEs 17.7% 0.9% 26,940 25,881 Large Corporate 21.1% 5.5% 22,438 Sep-06 Sep-05 Jun-06

  27. Loan Portfolio Quality Loan Portfolio, by risk level Coverage D-H Portfolio 87% 81% 66% Sep-05 Jun-06 Sep-06 AA-C 92.7% 93.1% 93.3% E-H Portfolio 114% 112% 109% 7.3% 6.9% 6.7% D-H Sep-05 Jun-06 Sep-06 Sep-05 Jun-06 Sep-06

  28. Additional Allowance for Loan Losses R$ Millions

  29. Loan Portfolio Coverage Allowance for Loan Losses / Loan Portfolio Sep-06 Jun-06 Sep-05 Consumer Finance Companies 12.4% 11.0% 10.0% Credit Cards 9.8% 8.5% 5.2% Commercial Bank - Individuals 9.4% 8.8% 8.1% Auto Financing 4.6% 4.8% 3.3% SMEs 6.6% 5.7% 4.2% Retail 7.9% 7.2% 5.6% 3.4% 3.6% 3.9% Wholesale Unibanco Consolidated 5.8% 5.6% 4.9%

  30. Financial Margin 26.1% 23.3% 20.8% 27.9% 23.5% 10.7% 10.7% 10.6% 10.4% 10.0% 8.1% 8.1% 7.9% 7.6% 7.6% 3Q05 2Q06 3Q06 9M05 9M06 Provision for Loan Losses/ Financial Margin Post Provision Financial Margin Financial Margin

  31. Provisions for Loan Losses / Financial Margin -20 b.p. 29.0% 27.9% 27.2% 23.5% 23.3% 3Q05 4Q05 1Q06 2Q06 3Q06

  32. Deposits and Assets under Management R$ Millions Sep-06 Jun-06 Sep-05 Demand Deposits 4,469 4,405 3,505 Savings Deposits 5,558 5,187 5,524 Core Time Deposits 4,648 4,201 2,628 Core Deposits 14,675 13,793 11,657 Time Deposits 22,096 24,984 22,897 Debentures 7,034 5,065 2,683 Total Deposits + Debentures (A) 43,805 43,842 37,237 Assets Under Management (B) 42,475 41,081 35,700 Total Deposits + Debentures + AUM (A+B) 86,280 84,923 72,937 36% 34% 40% Core Deposits / Total Deposits

  33. Core Deposits Growth Core Time Deposits Core Deposits Evolution R$ Millions Sep 06 vs Jun 06 Sep 06 vs Sep 05 Sep 06 vs Sep 04 4,648 2,628 25.9% 39.3% 6.4% 1,030 10.8% 18.5% Brazilian Financial System (1) 4.5% Sep-04 Sep-05 Sep-06 (1)Source: Brazilian Central Bank, preliminary data Core Deposits Brazilian Financial System Unibanco 118 112 109 Dec-05=100 Dec-05=100 102 42% 34% 38% 31% Dec-05 Mar-06 Jun-06 Sep-06 Dec-05 Mar-06 Jun-06 Sep-06 Credit Core Deposits Core/Credit

  34. Efficiency Ratio R$ Millions Efficiency Ratio Evolution 61.2% 52.5% 51.4% 49.8% 47.5% 48.5% 2,930 8,636 2,891 7,125 2,576 2,136 1,458 4,186 1,373 3,744 1,324 1,308 3Q04 3Q05 2Q06 9M05 9M06 3Q06 Efficiency Ratio Expenses Revenues

  35. Insurance and Private Pension Plans R$ Millions Premiums Earned Technical Reserves 17.6% 20.9% 526 7,856 7,593 487 1,829 6,678 Insurance 1,729 435 1,703 6,027 Private Pension Plans 5,864 4,975 Combined Ratio Extended Combined Ratio Sep-05 Jun-06 Sep-06 3Q05 2Q06 3Q06 99.5% 95.6% 94.0% 87.1% 86.3% 85.7% 3Q05 2Q06 3Q06 3Q05 2Q06 3Q06

  36. Stocks

  37. Units and GDSs Weight (%) Index Sep to Dec-2006 Ibovespa 1.881 IBrX-50 3.550 IBrX-100 3.056 IGC Corporate Governance Index 3.913 ISE Susteinability Index* 9.569 (*) Valid from December 2005 to December 2006. Units (UBBR11) versus Ibovespa • Unibanco Units gained approximately 41% in the last 12 months • Unit continues to increase its weighting within the Ibovespa. Since its inclusion in the Ibovespa, in May 2005, its participation increased more than 91% • ADTV during 3Q06 was US$13.2 million on the Bovespa and US$25.3 million on the NYSE GDSs (UBB) versus Dow Jones Brazilian Stock Index

  38. Stock Dividend (Bonificação de Ações) To increase the liquidity of Unibanco’s and Unibanco Holdings’ shares in the Brazilian stock market by means of having a quotation value accessible to small investors. After Current Before (closing on Nov-07th ) (closing on July 17th) (opening on July 18th) Unit Price (R$) 26.30 13.15 17.50 Outstanding Shares (millions) 1,398.9 2,797.8 2,799.3 Market Cap (R$ Billions) 18.4 18.4 24.3 Ratio (Units per GDS) 5 : 1 10 : 1 10 : 1 GDS Price (US$) 59.91 59.91 81.41

  39. Annex I Dividends

  40. Dividend History 334 35% 38% 37% 38% 35% 35% 36% 37% 35% R$ Million 617 451 CAGR = 20% 448 97 2nd Half 1st Half 362 340 Pay Out Ratio 323 244 264 196 180 210 171 354 164 283 133 143 108 82 204 89 166 160 152 131 102 82 54 1997 1998 1999 2000 2001 2002 2003 2004 2005 9M06 • Unibanco has paid semi-annual dividends for more than 3 decades • From 2005 on, Unibanco started paying quarterly dividends

  41. Annex II Ratings

  42. Unibanco Ratings Moody’s Global Scale: Foreign Currency Global Scale: Local Currency Long TermDebt Long Term Deposits Short Term Deposits Financial Strength Long Term Deposits Short Term Deposits Ba2 Ba3 NP - A1 P-1 Brazil Brazil Baa3(1) Ba3 NP C- A1 P-1 Unibanco Unibanco Standard and Poor’s Foreign Currency Local Currency Long Term Short Term Long Term Short Term BB Brazil Brazil BB+ B B Unibanco BB B Unibanco BB B Fitch Ratings Foreign Currency Local Currency Long Term Short Term Long Term Short Term BB B BB - Brazil Brazil Unibanco BB+ B Unibanco BB+ B (1) The Baa3 rating was attributed to the MTN Programme (Medium Term Note Programme) of Unibanco and also to the notes indexed to the IGP-M (General Market Price Index) and payable in US dollars issued by Unibanco Grand Cayman Branch.

  43. Brazilian Economy

  44. Perspectives Macroeconomic Perspectives 2005 2006 (E) 2007 (E) Exchange Rate R$/US$ (Enf of Year) 2.34 2.20 2.23 Real GDP Growth (%) 2.3% 3.2% 3.5% SELIC (End of Year) 18.00% 13.25% 12.25% IPCA (Inflation) 5.7% 3.1% 4.0% Trade Balance (US$) 44.8 bi 46.0 bi 39.0 bi

  45. Investor Relationsphone: 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.

More Related