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Institutional Presentation June 2006

Unibanco and Unibanco Holdings, S.A. Institutional Presentation June 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.

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Institutional Presentation June 2006

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  1. Unibanco and Unibanco Holdings, S.A. Institutional Presentation June 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$35.6 mln / US$16.2 mln ADTV* at Bovespa R$83.9 / US$38.6 mln ADTV* at NYSE Financial statements in US GAAP since 1997 *In 2Q06

  4. A Snapshot of Unibanco Retail and Consumer Credit • Serves individuals and SMEs with annual revenues lower than R$150 million. • Over 22 million clients • Leading Consumer Finance franchise • Highlight: Improvement of the credit card portfolio, which posted a 42.9% growth over the past 12 months Wholesale As of June 2006 Insurance & Annuity – Unibanco AIG • Joint venture with AIG • Individuals and corporate: life, auto, assets, disability, pension funds and annuities • Issuance of the first environmental insurance policy in Brazil • Unibanco Insurance and Pension Plans placed 4TH in the ranking of Insurance and private pension plans published by Susep and ANS, and holds a 7.4% market share (as of May 2006) CROSS SELLING • A balanced business mix • Aggressive expansion in the retail segment • Benchmark in consumer finance and wholesale business Wealth Management • Offers investment products via Unibanco Asset Management to individuals and institutional investors and covers high net worth individuals, in the private banking segment • Total assets under management: R$41,1 billion • #2nd place in Private Banking (Anbid), with more than 10% market share • “Top Gestão” asset management award - by S&P • Full coverage of more than 2,000 corporations with annual revenues greater than R$150 million, in addition to institutional investors in Brazil and internationally • Investment Banking: M&A, Capital Markets & Project Finance • The Wholesale loan portfolio reached R$18,491 mm, up 20.2% over the past 12 months

  5. Organizational Structure CEO PedroMoreiraSalles • Prominent Board Members • Independent Audit Committee Board of Directors Pedro Malan Chairman Pedro Moreira Salles Vice-Chairman Audit Committee Gabriel Jorge Ferreira Chairman Members João Dionisio Armínio Fraga Joaquim F. Castro Neto Gabriel J. Ferreira Israel Vainboim Pedro Bodin Board Members Eduardo A. Guimarães Guy Almeida Andrade Insurance and Pensions José Rudge Wholesale and Wealth Management Demosthenes Madureira Retail Márcio Schettini Treasury Daniel Gleizer Legal, Tax, Audit, Compliance, and Risk Lucas Melo Corporate Communication and HR Marcos Caetano Planning. Control. Operations and IR Geraldo Travaglia Operational Efficiency Marcos Lisboa

  6. Timeline Over 80 years of history to become one of the leading full service banks in Brazil 1965/1970 1975/1983 1995/1998 2000/2004 2005/2006 1924 1940 1991 BancoAgrícolaMercantil Banco Predial The 15financialinstitutions ofthe GrupoUnião deBancos arerenamedUnibanco Incorporation of BancoNacional Unibancolaunches anew brand BancoMoreiraSalles União deBancosBrasileiros CasaMoreiraSalles Instituto MoreiraSalles New Service Model Headquartersmoved toSão Paulo

  7. Segmentation and Distribution Private Bank Large Companies Upper Middle Market UniClass Segment Lower Middle Market PAYROLL Points of Sale Exclusive Segment 323 1,691 Small Business 1,064 6,095 2,977 12,150 Corporate Individuals Private Banking Wholesale Retail Nationwide Distribution Client Focus (As of June 2006) More than 17 thousand points of sale Branches Corp. Site Branches North 11 North 8 North 73 Northeast 69 Northeast 41 Northeast 383 Mid-West 44 Mid-West 30 Mid-West 134 Southeast 688 Southeast 224 Southeast 2,000 South 119 South 42 South 251 Brazil 931 345 2,841 Brazil Brazil Stores North 6 North Northeast 42 Northeast Mid-West 19 Mid-West Southeast 196 Southeast South 31 South Brazil 294 Brazil Consumer Finance Companies Stores Mid-West 42 Southeast 553 South 118 Brazil 713

  8. Universal Bank Greater focus on higher margin and faster growing businesses High Margin Low Retail Growth Wholesale & Wealth Management Insurance

  9. Consumer Finance

  10. Credit Cards Loan Portfolio (R$ Million) 42.9% 4,117 2,881 Jun-05 Jun-06

  11. SMEs & Auto Financing SMEs (R$ Million) Auto Financing (R$ Million) 22.9% 15.1% • Approximately 542,000 companies • Leveraging synergies with the group (Fininvest, Unicard, Hipercard) • Wide range of banking services • Significant contribution to core deposits’ growth 4,768 7,886 4,143 6,414 Jun-05 Jun-06 Jun-05 Jun-06 • Operates nationwide through Unibanco Financeira and in the accredited network of auto dealers • Better qualified, trained and remunerated sales force • Leader in financing heavy commercial vehicles

  12. Fundamentals

  13. Loan Portfolio Mix Migration to fast growing segments with higher margins 33% 50% 56% 56% 56% Retail 67% 50% 44% 44% Wholesale 44% Dec-99 Jun-04 Jun-05 Jun-06

  14. Improved Funding Structure • Main actions • Development of alternative sources of funding such as SuperPoupe • Link individual variable compensation at branch level to Core Deposits • Focus on cash management services, such as Payroll and Collection TDCs Core Deposits Core Deposits Evolution R$ Millions 4,201 Jun 06 vs Mar 06 Jun 06 vs Jun 05 Jun 06 vs Jun 04 2,350 19.6% 7.7% 47.9% 403 7.3% 17.2% National Financial System1 0.2% Jun-04 Jun-05 Jun-06 1 Source: Brazilian Central Bank, preliminary data Core Deposits National Financial System Unibanco 132 132 Dec-04=100 Dec-04=100 128 106 38% 47% 34% 1 preliminary data 33% Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Credit Core Deposits Core/Credit

  15. Cost Management R$ Millions Efficiency Ratio Evolution 53.2% 63.4% 61.2% 47.8% 59.5% 53.7% 52.8% 51.3% 49.2% 48.1% 2,728 47.5% 2,420 1,373 1,351 1,355 1,323 1,233 1,365 1,308 1,187 1,242 5,706 4,549 2,815 2,891 2,745 2,337 2,579 1,961 2,136 2,293 2.212 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 1H05 1H06 Expenses Revenues Efficiency Ratio

  16. Financial Performance

  17. Performance R$ Millions 2Q06 1H06 D1H06/1H05 D2Q06/2Q05 Net Income 548 1,068 + 21% + 25% + 27% + 22% 869 1,703 Operating Income 24.7% 23.6% 24.0% 23.0% 9.8 21.4% 9.8 9.5 8.7 8.7 16.4% 17.3% 7.7 7.7 1Q06 2Q06 1H05 1H04 2Q04 2Q05 1H06 Annualized ROAE (%) Stockholders’ Equity (R$ Bln)

  18. Highlights • 25% net income growth, 1H06 versus 1H05 • Financial margin (before provisions for loan losses) grew to 10.6% in 1H06, vis-a-vis 10.1% in 1H05 – despite declining interest rates Results • Growth of 5.7% in 2Q06 • 19.3% up in 12 months. Highlight to credit cards portfolio growth: 42.9% Loan Portfolio • Efficiency ratio of 47.5%, a 530 b.p. improvement from 2Q05 (52.8%) • 1.3% change in personnel and administrative expenses, 2Q06 versus 1Q06 Efficiency • 29.3% ROAE in 2Q06 • 93.9% combined ratio in 1H06, from 99.2% in 1H05 • 47.3% loss ratio in 2Q06, from 55.6% in 1Q06 Insurance • Approximately 60% gain over the past 12 months • Higher weight in the Ibovespa index: 1.825% (1) • Stock Dividend (Bonificação de Ações) aimed at increasing liquidity Units UBBR11 (1) 1st Preview of the Theorical Portfolio Sep - Dec 2006.

  19. Financial Indicators R$ Millions Loan Portfolio Total Assets 41,929 98,217 39,875 39,684 36,872 93,770 91,831 35,154 88,423 82,884 Jun-06 Jun-05 Sep-05 Dec-05 Mar-06 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Profit from Financial Intermediation Earnings per Share (R$) 2,392 0.20 2,357 0.19 2,262 0.18 2,159 0.17 2,005 0.16 2Q05 3Q05 4Q05 1Q06 2Q06 2Q05 3Q05 4Q05 1Q06 2Q06

  20. Income Statement R$ Millions 2Q06 1Q06 2Q05 1H06 1H05 Profit from Financial Intermediation 1,724 1,715 1,570 3,439 3,103 (+) Fees from Services Rendered 901 863 783 1,764 1,534 (-) Personnel & Administrative Expenses (1,373) (1,355) (1,233) (2,728) (2,420) (+/-) Other Operating Income / Expenses (383) (389) (435) (772) (818) (=) Operating Income 869 834 685 1,703 1,399 1 (3) 22 (2) 16 (+/-) Non-Operating Income (+/-) Income Tax and Social Contribution (159) (147) (129) (306) (295) (Effective Income Tax Rate) 21% 20% 21% 21% 24% (-) Profit Sharing / Minority Interest (163) (164) (125) (327) (266) Net Income 548 520 453 1,068 854

  21. Performance – 2Q06 versus 1Q06 1Q06 = 100 108 106 104 102 100 100 100 100 Loan Portfolio Core Deposits Financial Margin before Provision Provision for Loan Losses 104 104 105 101 100 100 100 100 Fee Income Adm. Expenses Operating Income Net Income 1Q06 2Q06

  22. Performance – 2Q06 versus 2Q05 2Q05 = 100 154 119 120 119 100 100 100 100 Loan Portfolio Core Deposits Financial Margin before Provision Provision for Loan Losses 127 121 115 111 100 100 100 100 Fee Income Adm. Expenses Operating Income Net Income 2Q06 2Q05

  23. Loan Portfolio Growth 19.3% R$ Millions 5.7% 41,929 39,684 35,154 23,934 Retail(1) 23,281 2.8% 20,100 9.7% Wholesale 17,995 16,403 15,054 Jun-05 Mar-06 Jun-06 (1) It includes acquired credit of individuals, cosigned by the financial institutions that sold the credits.

  24. Loan Portfolio Growth – Individuals and Corporate Main Highligths D Year D Quarter R$ Millions Individuals(1) 17.3% 1.6% Credit Cards 42.9% 3.3% 16,048 Consumer Finance Companies 14.0% -2.1% 15,793 13,686 Auto Financing 14.4% -1.7% Branch Network 8.1% 4.9% Jun-06 Jun-05 Mar-06 Corporate R$ Millions 20.6% 8.3% SMEs 22.9% 5.3% 25,881 23,891 Large Corporate 19.5% 9.7% 21,468 Jun-06 Jun-05 Mar-06 (1) It includes acquired credit of individuals, cosigned by the financial institutions that sold the credits.

  25. Loan Portfolio Quality Loan Portfolio, by risk level Additional allowance for loan losses (R$ Millions) +33% 548 494 92.0% 93.1% AA-C 92.8% 412 8.0% 6.9% D-H 7.2% Jun-05 Jun-05 Mar-06 Jun-06 Mar-06 Jun-06

  26. Loan Portfolio Coverage Allowance for Loan Losses / Loan Portfolio Jun-06 Mar-06 Jun-05 Consumer Finance Companies 11.0% 10.1% 9.4% Credit Cards 8.5% 7.7% 4.5% Commercial Bank - Individuals 8.8% 9.1% 7.6% Auto Financing 4.8% 4.4% 2.8% SMEs 5.7% 5.2% 4.0% Retail 7.2% 6.7% 5.2% 3.6% 4.0% 4.6% Wholesale Unibanco Consolidated 5.6% 5.6% 4.9%

  27. Financial Margin 27.6% 27.9% 19.4% 27.2% 21.7% 10.9% 10.7% 10.6% 10.5% 10.1% 7.9% 8.1% 8.1% 7.6% 7.6% 2Q05 1Q06 2Q06 1H05 1H06 Provision for Loan Losses/ Financial Margin Post Provision Financial Margin Financial Margin

  28. Fee Income R$ millions 1H05 2Q05 1H06 1Q06 2Q06 453 491 525 890 1,016 Banking fees Credit Cards 246 282 476 294 576 Assets under management 84 90 168 82 172 863 1,534 Total 783 901 1,764 Fee Income/ Personnel and Administrative Expenses 64.7% 65.6% 63.7% 63.5% 63.4% 2Q05 1Q06 2Q06 1H05 1H06

  29. Personnel and Administrative Expenses R$ Millions 1H05 2H05 1H06 2Q05 1Q06 2Q06 Commercial Bank 795 888 893 1,567 1,718 1,781 Subsidiaries 438 467 480 853 954 947 Total 1,233 1,355 1,373 2,420 2,672 2,728 2.1% 1.3% 2,728 1,373 2,672 1,355 1,086 2,420 544 1,233 998 542 Personnel Expenses 913 467 1,642 829 Other Administrative Expenses 1,674 813 1,507 766 2Q05 1Q06 2Q06 1H05 2H05 1H06

  30. Insurance and Private Pension Plans R$ Millions Net Income Technical Reserves 21.1% 15.5% 7,593 97 7,304 1,729 6,272 Insurance 1,676 92 1,424 84 5,864 Private Pension Plans 5,628 4,848 Combined Ratio Loss Ratio Jun-05 Mar-06 Jun-06 2Q05 1Q06 2Q06 100.0% 55.6% 94.0% 93.7% 53.3% 47.3% 2Q05 1Q06 2Q06 2Q05 1Q06 2Q06

  31. Stocks

  32. Units and GDSs UBB 172 Dow Jones 109 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 • Unibanco Units gained approximately 60% 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 65% • ADTV during 2Q06 was US$16.2 million on the Bovespa and US$38.6 million on the NYSE Units (UBBR11) versus Ibovespa GDSs (UBB) versus Dow Jones Brazilian Stock Index

  33. 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 August 15th ) (closing on July 17th) (opening on July 18th) Unit Price (R$) 26.30 13.15 16.00 Outstanding Shares (millions) 1,398.9 2,797.8 2,797.8 Market Cap (R$ Billions) 18.4 18.4 22.3 Ratio (Units per GDS) 5 : 1 10 : 1 10 : 1 GDS Price (US$) 59.91 59.91 74.49

  34. Perspectives 2006

  35. Perspectives Macroeconomic Perspectives 2005 2006 (E) Exchange Rate R$/US$ (Enf of Year) 2.34 2.20 Real GDP Growth (%) 2.3% 3.5% SELIC (End of Year) 18.00% 14.00% IPCA (Inflation) 5.7% 4.8% Trade Balance (US$) 44.8 bi 39.0 bi

  36. Annex I Dividends

  37. Dividend History 334 35% 38% 37% 38% 35% 35% 36% 37% 35% 617 R$ Million CAGR = 20% 448 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 1H06 • Unibanco has paid semi-annual dividends for more than 3 decades • From 2005 on, Unibanco started paying quarterly dividends

  38. Annex II Ratings

  39. Unibanco Ratings

  40. 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.

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