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Overview of Unibanco

Overview of Unibanco. 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$21.0 mln / US$9.0 mln ADTV * at Bovespa

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Overview of Unibanco

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  1. Overview of Unibanco

  2. 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$21.0 mln / US$9.0 mln ADTV * at Bovespa US$43.8 mln ADTV * at NYSE Financial statements in US GAAP since 1997 * For the period Oct 1 - December 31; US$1 = R$2.34

  3. A Snapshot of Unibanco

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

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

  6. Segmentation and Distribution 17,020 Points of Service Private Bank(Financial Investment > R$3 million) Large Companies(Annual Sales > R$150 million) Branches Corp. Site Branches Upper Middle Market (R$40 million < Annual Sales < R$150 million) North 11 North 8 North 70 Northeast 68 Northeast 42 Northeast 380 UniClass Segment (Monthly Income > R$4,000) Mid-West 43 Mid-West 31 Mid-West 133 Southeast 676 Southeast 223 Southeast 1,909 South 116 South 45 South 244 Brazil 914 349 2,736 Brazil Brazil Lower Middle Market (R$5 million < Annual Sales < R$40 million) PAYROLL Stores Points of Sale Exclusive Segment (R$350 < Monthly Income < R$4,000) North 4 329 North Northeast 37 Northeast 1,485 Small Business (Annual Sales < R$5 million) Mid-West 17 1,043 Mid-West Southeast 191 Southeast 6,283 South 30 2,881 South Brazil 279 Brazil 12,021 Corporate Individuals Consumer Finance Companies Stores Mid-West 41 Private Banking Wholesale Retail Southeast 426 South 254 Brazil 721 A superior strategy and comprehensive distribution system... Client Focus Nationwide Distribution (As of December 2005) …foster cross-selling opportunities across our expanding client base

  7. Universal Bank Greater focus on higher margin and faster growing businesses Retail Wholesale & Wealth Management Insurance

  8. Consumer Finance Leading Consumer Finance Platform Consumer Finance Loan Portfolio (R$ Million) Leading Consumer Finance Platform 33.9% Alliances Alliances with a great number of retailers across the country 3,068 2,292 Joint-Ventures Fully- Owned Dec-04 Dec-05 • Fininvest: aggressive growth plan • Leveraging Alliances and Joint Ventures • Cross Selling focus: Credit Cards, Banking Accounts, Capitalization, Insurance and Extended Warranty

  9. Highlights • Issues Visa and Mastercard cards • Alliances with retailers • Acquirer, issuer and processor of credit cards • Accept by more than 120 thousand retailers Credit Cards Loan Portfolio (R$ Million) 43.2% 4,001 2,794 Dec-04 Dec-05

  10. SMEs & Auto Financing SMEs (R$ Million) Auto Financing (R$ Million) 30.3% 25.2% • Approximately 510,000 companies • Leveraging synergies with the group (Fininvest, Unicard, Hipercard) • Wide range of banking services • Significant contribution to core deposits’ growth 4,609 7,335 3,682 5,629 Dec-04 Dec-05 Dec-04 Dec-05 • Fast growing segment • Strong relationship with dealers through Unibanco´s affiliates • Better qualified, trained and remunerated sales force • Larger base of active dealers with 20% growth in 2005

  11. Fundamentals

  12. Shift in the Loan Portfolio Mix Migration to faster 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

  13. SuperPoupe Deposits 2002 2003 2004 2005 3,044 12,451 8,973 Core deposits 8,647 10,811 2,628 2,350 Time deposits 17,015 16,710 22,720 23,048 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% Improved Funding Structure R$ millions • 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 1 preliminary data

  14. 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

  15. Performance Evolution: 2005 2005 / 2004 +43.3% Net Income R$1,838 million Operating IncomeR$2,921 million +49.0% 24.2% 23.3% 23.0% 21.0% 20.1% 17.8% 17.5% 9.3 17.3% 17.1% 16.5% 9.0 16.1% 8.7 8.4 8.1 13.8% 7.9 7.7 R$ billion 7.4 7.2 7.0 6.8 6.7 4Q05 2Q05 3Q05 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Annualized ROAE (%) Stockholders’ Equity

  16. Financial Performance

  17. 2005 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

  18. Income Statement 2005 2004 Profit from Financial Intermediation 6,343 5,087 (+) Fees from Services Rendered 3,270 3,241 (-) Personnel & Administrative Expenses (5,092) (5,058) (+/-) Other Operating Income / Expenses (1,600) (972) (=) Operating Income 2,921 1,961 (+/-) Non-Operating Income 9 37 (+/-) Income Tax and Social Contribution (601) (339) (Effective Income Tax Rate) 23% 19% (-) Profit Sharing / Minority Interest (491) (376) Net Income 1,838 1,283 R$ Million

  19. Performance: 2005 versus 2004 2004 2005 (*) Excludes Credicard/Orbitall

  20. Financial Indicators 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 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

  22. Loan Portfolio Growth 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 Quality Loan Portfolio, by risk level Allowance for Loan Losses/ Loan Portfolio E-H

  25. Financial Margin Financial margin has consistently increased over the last quarters 23.1% 20.4% 22.6% 29.0% 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

  26. 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

  27. 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

  28. Stocks

  29. Units and GDSs • Ibovespa’s best performers during 2H05, gaining 72%. • The largest increase in weighting within the Ibovespa in the past two four-month periodical rebalances (59%). • ADTV of Units on the Bovespa increased 340.9%, to R$19.4 million in 2005 from R$4.4 million in 2004. • ADTV during 4Q05 was R$21.0 million on the Bovespa and US$43.8 million on the NYSE. Units (UBBR11) versus Ibovespa GDSs (UBB) versus Dow Jones Brazilian Stock Index Weight (%) Index 9/2/05 1/2/06 Ibovespa 1.264 1.564 IBrX-50 3.156 3.808 IBrX-100 2.799 3.329 IGC 4.933 5.096 (*) n/a 9.569 ISE (*) The index was initiated in Dec-05.

  30. Perspectives 2006

  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. Annex I 2005 – A Retrospective

  33. 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

  34. 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

  35. 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

  36. 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”.

  37. 2005 Business Units 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

  38. 2005 Business Units 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

  39. Annex II Dividends

  40. Dividend History 35% 38% 37% 38% 35% 35% 36% 37% 35% R$ Million 2nd Half 1st Half Pay Out Ratio • Unibanco has paid semi-annual dividends for more than 3 decades • From 2005 on, Unibanco started paying quarterly dividends

  41. Annex III 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 Ba3 B1 NP - - - Brazil Brazil Ba1 B1 NP C- A3 P-2 Unibanco Unibanco Standard and Poor’s Foreign Currency Local Currency Long Term Short Term Long Term Short Term Brazil BB 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

  43. Annex IV New marketing campaign

  44. Renewed Brand - 2005

  45. 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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