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Unibanco´s Consolidated Results for the Period Ended December 31, 2000
Conference Call - February 20, 2001
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ContentsContents
• Financial Summary
• Competitive Positioning
• Concluding Remarks
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Financial SummaryResults and Capitalization
2000 1999
Net income (R$ million) 739 591 25.0Earnings/1000 shares 6.02 5.57 8.1Net worth (R$ million) 5,504 4,002 37.5
ROAE 17.5 18.5ROAA 1.8 1.7BIS Ratio - Central Bank 16.5% 17.5%
%
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Financial SummaryLoan Growth
In R$ million
General Purpose Lending Trade Finance
Subtotal
Personal LoansReal EstateLeasingCredit Cards
Subtotal
Year %change
Quarter % change Dec/99 Sep/00Dec/00
10,254
42.9%
30.9%
59.5%16.3%-2.0%51.7%
41.9%
8,3893,070
11,459
2,762441769
1,773
5,745
7,1783,557
10,735
2,130436950
1,560
5,076
22.2%23.8%22.7%
23.0%15.0%21.1%33.5%
25.4%
3,80214,056
3,398507931
2,367
7,203
Total 34.5%17,204 15,811 23.6%21,259
6.9%
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December 1999 December 2000
Retail Banking
32%LargeCorporate
41%
Private
1% Credicard and Fininvest10%
Corporate MiddleMarket
16%
LargeCorporate
49%
Retail Banking
24%
Credicard and Fininvest8%
Private
Corporate Middle Market
17% 2%
Financial SummaryFinancial SummaryLoan Breakdown Loan Breakdown
R$ 15,811 million R$ 21,259 million
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Financial SummaryDeposits In R$ million
Demand Deposits 2,392 1,686 706 165 541
Savings Deposits 3,706 2,688 1,018 989 28
Interbank Deposits 199 99 100 45 55
Time Deposits 7,053 4,995 2,058 1,141 917
In R$ million
Dec/00 Sep/00Bandeirantes + 50% Fininvest
Organic Growth
Total Deposits 1,5429,468 3,882 2,340 13,350
Growth
Deposits/Loans up from 55% to 63% QoQ
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Financial SummaryFunding
In R$ million
Year %change
Funding in local currency Funding in foreign currency
Quarter % change Dec/99 Sep/00Dec/00
60.0%13.1%
52.5%
20,9758,001
17,238
18,5279,064
13,423
41.3%28.1%
18.7%
29,64010,250
20,467
Total Customer Funds 47.2%46,214 41,014 30.6%60,357
Assets under management
29,703 30,82634,322
41,014 60,327
96 97 98 99 2000
• CAGR of 19.4%, 103.1% in 4 years
Total funding
44.6%28,976 27,591 37.7%39,890
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Financial SummaryFee Income In R$ million
96 97 98 99
904
1,2441,368 1,449
1,640
• CAGR of 16.1%, 81.4% in 4 years
Tariffs and comissions 228 195 16.9 802 701 14.4Credit Cards 180 148 21.6 619 501 23.6Asset Management 62 62 - 219 247 (11.3)
4Q00 3Q00 % 2000 1999 %
Total 1,449405 16.0 1,640 470
• Bandeirantes and Fininvest contributed R$ 25 million in fees in Dec/2000.
2000
13.2
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Fees/Personnel Exp.(%) 140.8 137.6 78.3
Fees/Total Expenses.(%) 54.6 53.1 33.8
Cost Asset Ratio(1) 6.3 7.6 10.2
Financial SummaryPersonnel and Administrative Expenses
• Acquisitions of Bandeirantes, Fininvest and Credibanco contributed R$ 90 million to total expenses
• Other newly consolidated companies (Cibrasec, Serasa, Banco1.net) contributed R$ 32 million to total expenses
• 5.6% increase in expenses YoY excluding both factors mentioned above
2000 1999 1996
2,682 2,632 2,771 2,727
1,165
96 97 98 99 2000
1,107 1,147 1,143 1,053
3,002
Personnel Adm. Expenses (1) Excludes impacts of Banco Bandeirantes and 50% of Fininvest
1,837
1,575 1,485 1,628 1,674
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Financial SummaryCredit Quality
In R$ million
AA A B C D - H
44%
27%
9%12%8%
2Q00 3Q00 4Q00
17,327
44%
28%
10%10%8%
17,833
80% 82% 81%41%
30%
10%
10%9%
22,148
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Gross Profit from Financial Intermediation 926 917 880 3,501 3,348
Provisions for Losses (net of recovery) (276) (260) (71) (859) (870)
Fee Income 470 405 366 1,640 1,449
Personnel & Admin. Expenses (892) (734) (715) (3,001) (2,727)
Other 78 (48) (254) (112) (303)
Income Before Tax & Profit Sharing 306 280 206 1,169 897
Net Income 183 205 166 739 591
Financial Summary Consolidated Income Statement
4Q00 3Q00 4Q99 2000 1999
In R$ million
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Competitive Positioning - Retail BankingCompetitive Positioning - Retail BankingClient Base and Distribution NetworkClient Base and Distribution Network
Unibanco branches/CSB/ISBBandeirantes branches/CSBFininvest Network
BandeirantesFininvest
Unibanco
99 2000
3.7
4.0
3.0
0.7
7.7
3.5
98 99
1,080
2000
1,623
98
1,017
462
64
1,097
# of Clients (in million) Points of Sale
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10,000
7,500
4,450
3,600
2,500
1,500
700
0
25 5018 30 35 37 40 45 55 60 65 65 70Age
Income
Source: Brazil IBGE (PNAD) - All sources
Young Affluent Affluent
Successful Beginner
Upper Middle Family Older Up-scale
Middle Family Middle Core
Young Mass Market Mass Market
Younger Lower Older Lower
19.9%
from 2.1% to 10.8%
Competitive Positioning - Retail BankingCompetitive Positioning - Retail BankingCustomer Base - Market Share Customer Base - Market Share
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Competitive Positioning - Credit CardsCompetitive Positioning - Credit Cards
100% Cartão Unibanco100% Fininvest100% Bandeirantes
# 1 in Credit Cards in Latin America
Subtotal
3,326 7 2,512534 1 1,802287 1 109
14,671 29 7,240
2,550 6 2,033336 1 1,237
12,781 31 6,408
4,147 9 4,423
MarketShare %
TransactionsR$MM
Cards Issued(´000)
MarketShare %
TransactionsR$MM
Cards Issued(´000)
33% Credicard
2000 1999
2,886 7 3,270- --
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Competitive Positioning - Wholesale BankingCompetitive Positioning - Wholesale Banking
2.9
98 99 2000
3.83.6
Trade Financing98 99 2000
BNDES Onlendings
4.0
98 99 2000
5.6
98 99 2000
12.4
10.0
Total Loans Private Banking Portfolio
in R$ billion
9.1
3.1
2.4
1.7
4.4
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Competitive Positioning - Wholesale BankingCompetitive Positioning - Wholesale Banking
•Ranked #3 in disbursements of BNDES onlendings; entered 2001 as financial advisor to 37 projects demanding R$ 11 billion in financing
•Maintained share in excess of 8% of trade financing
•Capital Markets/Syndicated Lending: lead managed transaction totaling R$ 8.5 billion, up from R$ 7.4 billion in 1999
•M&A: completed 11 advisory mandates; earned Euromoney Awards for Excellence 2000
•Expanded middle market presence: increased client base and geographic presence
Particularly well positioned for increased volumes in capital markets activities for large corporates, credit for the middle market, and advisory
and convenience/cash management services to both segments.
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Competitive Positioning Competitive Positioning Insurance Insurance
Combined Ratio (%)
108.0
105.0
101.2
104.7
108.3106.5
98 99 00Unibanco AIG Market
61.6 62.7 61.9
66.368.9 68.0
98 99 00
Unibanco AIG Market
Claims (%)
Premiums Written
Premiums Written by Segment Unibanco AIG Seguros
31%Auto Life and
accidents27%
Health6%
Property14%
10%8%4%
Others
CTPLMarine cargo
1,075 997 1,150
379 349369
98 99 00
Insurance (Unibanco, AIG, Trevo) Pension Plans
1,4541,346
1,519
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Competitive Positioning Competitive Positioning Asset ManagementAsset Management
• Focus on distribution
Assets undermanagement in R$ billion
98 99UnibancoBandeirantes
2000
10,17513,423
20,467
18,697
1,770
Market Share
98 99 2000
6%5%
4%
Management fees
Lever retail volumes from organic growth and acquisitions
• Focus on performance Maintain solid position in institutional/ corporate segment and increase of volumes in Private
98 99 2000
2.66%1.88%
1.41%
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Concluding RemarksConcluding RemarksCompetitive Arena - Multiple of Total Assets
1-Bradesco 2.9x 2-Itaú 2.3x 3-Santander Banespa 2.3x 4-Bamerindus 1.6x 5-Unibanco 6-Econômico 0.9x7-Nacional 0.8x8-Real 0.7x
1990Multiple
Challenges:
• end of inflation
• growth / scale
• efficiency / quality
• capitalization
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1-Bradesco (1) 1.8x 2-Itaú (2) 1.3x 3-Santander Banespa (2) 1.2x 4-Unibanco (1) 1.0x 5- ABN Real (3) 0.7x 6-Safra (3) 0.4x7-HSBC Bamerindus (3) 0.4x8-BBVA Econômico (3) 0.2x
Concluding RemarksConcluding RemarksCompetitive Arena - Multiple of Total Assets
1-Bradesco 2.9x 2-Itaú 2.3x 3-Santander Banespa 2.3x 4-Bamerindus 1.6x 5-Unibanco 6-Econômico 0.9x7-Nacional 0.8x8-ABN Real 0.7x
1990Multiple
Challenges:
• declining spreads
• growth / scale
• efficiency / quality
2000Multiple
(1) As of December,2000 (2) As of September,2000 (3) As of June,2000
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Concluding RemarksConcluding RemarksThe Credit OpportunityThe Credit Opportunity
20% Average
Loan Growth (R$ 31.6 Billion)
18% 12.4%R$ 10.2
billion
5 years BIS RatioROAE
Forecast: PotentialLeveragein 5th year
BIS 16.5%Assets R$ 51.5 billion
Loans R$ 21.3 billion
December 2000
Credit as lever for whole spectrum of revenues
of a well balanced universal banking franchise