Investor Relations ir.unibanco

Conference Call 2Q05 | 1

Investor Relations

www.ir.unibanco.com

Consolidated Results 2nd Quarter 2005

Conference Call August 12, 2005


Unibanco in 2Q05

Net Income R$453 million

Operating Income R$684 million

+48.5%

+70.6%

2Q05 / 2Q04

7.7

7.9

8.1

8.4

21.0%

17.3%17.8%

20.1%

2Q04 3Q04 4Q04 1Q05

8.7

23.0%

2Q05

Annualized ROAE (%) Stockholders’ EquityAnnualized ROAE (%) Stockholders’ Equity(R$ billion)


Unibanco in 1H05

Net Income R$854 million

Operating Income R$1,395 million

+47.0%

+60.0%

1H05 / 1H04

6.87.7

16.4%15.2%

1H03 1H04

8.7

21.4%

1H05

Annualized ROAE (%) Stockholders’ Equity(R$ billion)


2Q05 1Q05 2Q04 1H05 1H04

Profit from Financial Intermediation 1,529 1,489 1,117 3,018 2,296

(+) Fees from Services Rendered 794 766 820 1,560 1,561

(-) Personnel & Adm. Expenses (1,232) (1,186) (1,242) (2,418) (2,385)

(+/ -) Other Operating Income/ Expenses (407) (358) (294) (765) (600)

(=) Operating Income 684 711 401 1,395 872

(+/ -) Non-Operating Income 17 (7) 18 10 6

(+/ -) Income Tax and Social Contribution (129) (165) (18) (294) (97)

(Effective Income Tax Rate) 21% 27% 5% 24% 13%

(-) Profit Sharing/ Minority Interest (119) (138) (96) (257) (200)

Net Income 453 401 305 854 581

Income Statement

R$ Million


Highlights

Total Assets (R$ million) Loan Portfolio (R$ million)

Financial Margin(Before Provision for Loan Losses)

2Q04 3Q04 4Q04 1Q05 2Q05

Earnings per Share (R$)

2Q04 3Q04 4Q04 1Q05 2Q05

8.2%

9.3%9.9% 9.5%

10.2%

0.220.23

0.270.29

Jun-04 Sep-04 Dec-04 Mar-05 Jun-05

79,771

84,062

79,35082,109

82,992

Jun-04 Sep-04 Dec-04 Mar-05 Jun-05

29,06429,724

31,796

33,176

35,154

0.32


Financial MarginFinancial Margin after Provision

6.4% 7.9% 7.9%

2Q04 1Q05 2Q05

8.2%

9.5% 10.2%

R$ Million

Financial Margin

2Q05 1Q05 2Q04 1H05 1H04

Financial Margin (A) 1,964 1,799 1,433 3,763 2,925Provision for Loan Losses (435) (310) (316) (745) (629)Financial Margin after Provision for Loan Losses (B) 1,529 1,489 1,117 3,018 2,296

Total Average Assets (-) Average Permanent Assets (C) 79,851 78,037 71,960 78,440 71,345

Financial Margin before Provision (% ) (A/ C) 10.2 9.5 8.2 9.8 8.4

Financial Margin after Provision (% ) (B/ C) 7.9 7.9 6.4 7.8 6.5

22.1% 17.2% 22.1%

Provision for loan losses/Financial Margin


Mar-05

2.7%

6.5%

5.2%

5.1%

Jun-05

2.9%

6.8%

4.9%

4.9%

Allowance for Loan Losses / Loan Portfolio

Loan Portfolio Coverage

Auto Financing

Consumer Credit Companies

Commercial Bank and Other Companies


5.2%

4.3%

Jun-04 Jun-05Mar-05

4.7%108.9%

Jun-04 Jun-05Mar-05

115.0%

98.9%

Coverage Ratio of Non-Accrual Portfolio Non-Accrual Portfolio / Loan Portfolio

Jun-04 Mar-05

110.0%

118.8%

Jun-05

125.7%

4.7%4.3%

Jun-04 Mar-05

3.9%

Jun-05

Loan Portfolio Quality

Loan Portfolio E-H (overdue > 90 days) / Loan Portfolio

Allowance for Loan Losses / Loan Portfolio E-H


Efficiency Ratio63.4%

53.7%52.8%

2Q04 1Q05 2Q05

R$373 million

R$ million

2Q05 1Q05 2Q04 % Q-o-Q

Efficiency Ratio 52.8% 53.7% 63.4% -90b.p. -1060 b.p

Expenses 1,232 1,186 1,242 3.8% -0.8%

Revenues 2,334 2,209 1,961 5.7% 19.0%

% Y-o-Y


Fees From Services Rendered

R$ million

1H05 1H04 Y-o-Y

Banking fees and other fees and commissions 884 809 9%

Credit cards (excluding Credicard in 1H04) 476 379 26%

Asset management fees 200 187 7%

Total 1,560 1,375 14%

Credicard and Orbitall - 186 -

Total fees from services rendered 1,560 1,561 0%


R$ million

33,17631,79629,064

Wholesale

Retail

21.0%

Dec-04 Mar-05Jun-04 (*)

35,154

Jun-05

6.0%

10.6%

(*) Pro-Forma: excludes Credicard portfolio; includes installment credits.

Loan Portfolio Growth

45%

55%

46%

54%

50%

50%

44%

56%


Corporate

Individuals

SME Large Corporate Total Corporate


Commercial Bank & Other Companies

Total Individuals

19,076

21,79520,977

14.3%

3.9%

4,667

6,4145,986 14,409

15,38114,991

37.4%

7.2%

6.7%

2.6%

9,988

13.35912,199

33.8%

9.5%

3,9765,4525,026

6,012

7,9077,173

37.1%

8.5%

31.5%

10.2%

R$ million

Jun-04 Mar-05 Jun-05

Loan Portfolio Mix – by client type



3,976

5,026 5,452

Total

37.1%

8.5%

32.0%

9.5%

21.5%

0.6%

Credit Cards(Unicard and HiperCard)

JVs with Retailers(PontoCred and LuizaCred)

1,2501,739 1,910

2,182 2,630 2,881

544657 661

Fininvest

52.8%

9.8%


Loan Portfolio Breakdown - Individuals Portfolio

R$ million


Commercial Bank & Other Companies

Loan Portfolio Breakdown - Individuals Portfolio

Branch Network TotalAuto Financing Other Companies(*)

6,012

7,1737,907

31.5%

10.2%

745 679

947

3,211

4,058 4,370

2,0562,436

2,590

36.1%

7.7%

26.0%

6.3%

27.1%

39.5%

R$ million

(*) Mainly Insurance/Garantech



Credit Cards (in million)

5.0

10.0

15.0

20.0

Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05

Visa

Mastercard

Private Label

MC + Visa + Hipercard

Total Cards

Hipercard

20.6

9.4

5.0

3.32.9

11.2

17.0

2Q051Q052Q04 1H051H04MC + Visa + HiperCard 3,596 3,094 2,778 6,690 4,651 Private Label 714 822 653 1,536 1,221

Total 4,310 3,916 3,431 8,226 5,872

8.0

RevenuesR$ million


Funding and Assets under Management

J un-05 Mar-05 Jun-04 %

Q-o-Q

% Y-o-Y

Demand deposits 3,547 3,415 2,953 3.9 20.1

Savings deposits 5,635 5,801 5,971 - 2.9 - 5.6

SuperPoupe 2,350 1,962 403 19.8 483.1

Core Deposits 11,532 11,178 9,327 3.2 23.6

Time deposits 23,212 23,598 19,807 - 1.6 17.2

Total Deposits (A) 34,744 34,776 29,134 -0.1 19.3

Assets under management (B) 35,119 34,206 30,503 2.7 15.1

Total Deposits + AUM (A+B) 69,863 68,982 59,637 1.3 17.1

R$ million


3,7704,724 4,848

1,077

1,217 1,424

2Q04 1Q05 2Q05

4,847

5,9416,272

29.4%

Insurance and Private Pension Plans

Technical Reserves

Private PensionInsurance

R$ million

Net Premium Written +Pension Plan Revenues

Net Income

Combined Ratio

Extended Combined Ratio

2Q05 1Q05 1H05 1H04

1,033 1,178 2,211 2,189

84 76 160 148

100.0% 98.6% 99.2% 99.3%

86.4% 85.1% 85.7% 87.2%


Highlights

Perpetual Securities – US$500 million

Issuing of Perpetual Securities in July, 2005: US$500 million

Coupon: 8.70% p.a.

Rating: Ba2 by Moody's Investors Service, Inc.

Investors: approximately 875 investors, specially from Asia and private banks.

Roadshow: Singapore, Hong Kong, Geneva and London.

100% of the investors visited during the road show took part of the book

The issuance of perpetual securities, if consolidated in June, 2005, would have made the BIS ratio to increase to approximately 18%.


Highlights

Perpetual Securities – US$500 million

- Expanded geographically Unibanco’s investor base

- Distribution:

By Investor By Region

7.4%11.4%

19.4%

61.7%

North America

South America

Europe Asia

83.5%

9.4%5.4%1.3%0.4%

ClientsPrivate

AdviserFinancialBanksHedge FundsCorporate and

Insurance


GDP Growth 5.2% 3.0%

FX Rate R$/US$ (end-of-year) 2.654 2.50

Selic (end-of-year) 17.75% 17.75%

IPCA 7.6% 5.6%

2004 2005(E)

2005 Outlook

Trade Balance Surplus (US$) 34 bln 40 bln


7.8%

5.4%

13.9%

15.5%20.9%

15.0%

7-12%

25-30%

30-35%

25-30%

10-15%

25-30%

7-12%

25-30%

25-30%

25-30%

10-15%

22-27%

Loan Portfolio

CorporateLargeSME

IndividualsCommercial bank and other companiesConsumer Finance

Administrative Expenses

Growth1H05

2005 - Perspectiveson May 11,2005

< 5%

17-22%

Revisedguidance

10.6%

1.4% < 5%

18-23%

2005 Growth Perspectives

Credit Cards 3.1% 15-20%15-20%


For further information contact our Investor Relations Area at

phone: 5511-3097-1980fax: 5511-3813-6182

email: [email protected]: 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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