1 ubs warburg 2001 global financial services conference new york - april 23 - 26, 2001 speaker:...
TRANSCRIPT
1
UBS Warburg 2001 Global Financial Services Conference
New York - April 23 - 26, 2001Speaker: Israel Vainboim
2
Contents
NOTE: Financial information contained in this presentation was converted into U.S. dollars by applying the exchangerate of US$ 1.00 = R$ 1.9554
The 90´s
Core Businesses
Distribution Network
Financial Summary
Competitive Positioning
The Credit Opportunity
Credit Card
Insurance
Asset Management
Internet
Concluding Remarks
3
The 90´s - Inflation, Real Interest Rate(1), GDP
(1) CDI deflated by IPCA
Source: IBGE, ANDIMA
Estimates: Unibanco Consultoria
Consumer Price Index (IPCA)
Real Interest Rate (CDI)
GDP
4.5
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
1000.0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000(E)
2500.02,477
1,119 916473
23.7
34.8
22.8 22.4
9.6
5.2
1.7
6.0
1.2-0.3
4.4 5.63.4
0.22.7 3.3
0.8
21.5
25.0
16.018.4
26.5
14.9
10.78.9
%
4.3
10.5
3.8
2001(E)
4
The 90´s - Brazilian Banking System as % of GDP
12%
8%
6%
1991 1995 1999
5
The 90´s - Focus on Revenues
69%
35%20%
1% 3%89 90 94 97 00
Maintained profitability with lower inflation
28278
1,244
1,640
90 94 97 00
Decreasing float income.... ....was offset by rising fee income
Search for alternative sources of revenue: Search for alternative sources of revenue: Insurance, Credit cards, Asset management, Fee income growth, Insurance, Credit cards, Asset management, Fee income growth,
Retirement plans, Annuities, Structured financeRetirement plans, Annuities, Structured finance
Float Income as % of Net Revenues Unibanco´s Fee Income (R$ MM)
6
The 90´s - Focus on Expenses
Cost control and productivity increase
Nominal GDP Inflation (IGP-DI) UBB´s Expenses
145
144
112
0
100
200
1996 1997 1998 1999 2000
7
5,90611,546
26,268
36,038
51,496
90 93 96 99 00
Total Assets (R$ MM)
CAGR = 24.2%
Total Funding (R$ MM)
5,41012,075
29,703
41,01460,357
90 93 96 99
CAGR = 27.3%
00
The 90´s - Performance Indicators
Total Loans (R$ MM)
2,7955,862
11,758
15,811
90 93 96 99
CAGR = 22.5%21,259
00
Shareholder´s Equity (R$ MM)
745933
2,154
4,002
90 93 96 99
CAGR = 22.1%5,504
00
8
The 90´s - Performance Indicators
1.432.22
2.99
5.576.02
90 93 96 99 00
Earnings per 1,000 Shares (R$)
CAGR = 15.5%
25 38
95
209
264
90 93 96 99 00
Dividends Paid (R$ MM)
CAGR = 26.6%
Net Income (R$ MM)
81127
285
591
739
90 93 96 99 00
CAGR = 24.7%
1111,206
3,137
6,797
8,507
90 93 96 99 00
Market Capitalization (R$ MM)
CAGR = 54.3%
9
The 90´s - Satisfaction Tracking
Employees Tracking
98 99 0097
Average Satisfaction &Motivation Ratio 63.0 67.0 68.3 72.0
Client Tracking
99 00 Feb/0198
Overall Satisfaction Ratio(all segments) 71.6 77.5 79.1 79.8
Internal Suppliers Tracking
98 99 00
Overall Satisfaction Ratio- 72.0 75.0 76.0
97
Source: Leadership 21
10
The 90´s - Foreign Direct Investment - Inflows
0,0
7,0
14,0
21,0
28,0
35,0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000E
US$ BI
SOURCE: CENTRAL BANK
11
The 90´s - Brazil’s Economic Environment
As of April 18th, 2001.Estimates: Unibanco Consultoria
GDP Growth (%) 3.3 0.2 0.8 4.5 3.8
• Agriculture -0.8 2.0 7.4 3.0 5.0
• Manufacturing 4.7 -1.5 -1.6 5.0 4.4
• Services 2.6 1.1 1.9 3.9 3.0
Inflation (IGP index %) 7.5 1.7 20.0 9.8 5.0
Fiscal Deficit (% of GDP) 6.1 8.0 10.0 4.6 3.8
Trade Balance (US$ Billion) -8.4 - 6.6 -1.2 - 0.7 -2.0
Nominal Interest Rates (SELIC %) 24.8 28.8 25.6 17.4 15.3
Interest Rates in US$ (SELIC %) 17.0 18.9 -15.1 7.4 10.0
Real Interest Rates (SELIC/IGP %) 16.1 26.6 4.7 6.9 9.8
Exchange Rate (R$/US$) 1.12 1.21 1.79 1.96 2.05
1997 1998 1999 2000 2001E
12
Overview of Unibanco
As of December 31, 2000
RetailBanking
WholesaleBanking
Insurance AssetManagement
Total premium revenues: R$ 2,016 MM• UBB Seguros: R$ 890 MM• AIG: R$ 244 MM• Retir. Plans: R$ 369 MM• Capitalization: R$ 272 MM•Trevo(*): R$ 241 MM
Technical Reserves: R$2,101 MM
Assets under management: R$ 20,5 BillionFees and commissions: R$ 219 MM
Loans: R$ 12,389 MMNet income fromfinancial intermediation:
R$ 607 MMFees and commissions:
R$ 176 MM
Loans: R$ 8,870 MMNet income fromfinancial intermediation: R$ 3,277 MMFees and commissions: R$ 1,245 MM
(*) Pro forma. Contributed R$ 15 MM in the month of Dec/00
Core Businesses
13
1,623Points of Sale
Banco1.net79,000 clients
818 “30 Hours” Self Service Branches (1)
70 MillionTelephone Calls in 2000
227,000Clients with Internet Banking
374,000Clients with PC Banking
5,165 ATMs (2)
Branch Network Remote Bank
+
=
As of December 31, 2000
(1)Includes Bandeirantes; (2)Includes customer service terminals
Distribution Network
Unibanco4.0 MM clients
Bandeirantes0.7 MM clients
Fininvest3.0 MM clients
127 branches101 PABs5 in-store
16 Fininvest stores
769 branches499 PABs58 in-store
48 Fininvest stores
14
In Corporate LegislationIn R$ MillionsConsolidated Balance Sheet - Assets
Available Funds +
Interbank Accounts 9,140 7,387 7,480
Marketable Securities 12,932 8,414 5,445
Loans, gross 21,259 15,584 13,812
Non Performing Loans(*) - 227 234
Loan Loss Provision (1,484) (972) (893)
Permanent Assets 3,337 1,673 1,617
Other Assets 6,312 3,725 4,032
Total Assets 51,496 36,038 31,727
Dec/00 Dec/99 Dec/98
Financial Summary
(*) NPLs are not disclosed since March 2000 when new risk adjusted provisioning regulation came into effect
15
In Corporate LegislationIn R$ MillionsConsolidated Balance Sheet - Liabilities
(1) Includes: Funds Obtained in the Open Market, Debentures, Mortgage Notes, Local Borrowings and Onlendings(2) Includes: Trade Finance Lines, Foreign Borrowings, Eurobonds and Commercial Papers. Includes foreign exchange settlement positions
Deposits 13,350 9,266 7,542Local Currency Funding (1) 17,399 10,419 9,347Foreign Currency Funding (2) 9,141 7,906 7,258Other Liabilities 5,173 3,887 4,147
Minority Interest 929 558 527
Equity 5,504 4,002 2,906
Total Liabilities + Equity 51,496 36,038 31,727
Funds under Management 20,467 13,423 10,175
Dec/00 Dec/99 Dec/98
Financial Summary
16
• Bandeirantes´ and Fininvest´s (50%) loan portfolio amounted to R$ 1.9 billion and R$ 616 million, respectively
• Excluding these acquisitions the loanportfolio grew 8.8% QoQ and 18.4% YoY
15,81117,204
21,259
Dec/99 Sep/00 Dec/00
Financial Summary
Loan Growth
YoY = 34.5%
QoQ = 23.6%
17
December 1999 December 2000
Retail Banking
32%LargeCorporates
41%
1% Private
Credicard&Fininvest10%
Corporate Middle Market
16%
LargeCorporates
Retail Banking
Credicard & Fininvest
Corporate Middle Market
2% Private
Financial Summary
R$ 15,811 million R$ 21,259 million
Loan Breakdown
49%24%
8%
17%
18
Financial Summary
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%
22,148Credit Quality
19
AA A B C D E - H
Resolution 2682
41%
25% 27%15%
33%
83%80%76%
80%
71%
63% 50% 74%70%
0%
20%
40%
60%
80%
100%
91% 90% 87% 89%
95%
89%
Unibanco Bradesco Itaú ABN* BB
Source: Brazilian Central Bank and Company Reports( * ) ABN as of June, 2000
Financial Summary
Credit Quality - Unibanco vs. PeersAs of December 31, 2000
20
Financial Summary
Demand Deposits 2,392 1,686 1,340 41.9 706 165 541
Savings Deposits 3,706 2,688 2,886 37.9 1,018 989 28
Interbank Deposits 199 99 33 101.0 100 45 55
Time Deposits 7,053 4,995 5,007 41.2 2,058 1,141 917
Total Deposits 13,350 9,468 9,266 41.0 3,882 2,340 1,542
In R$ million
Deposits/Loans up from 55% to 63% QoQDeposits/Loans up from 55% to 63% QoQ
Deposits
Dec/00 Sep/00 Dec/99 Quarter Growth Band+ Organic% change QoQ 50% Fininvest Growth
21
Financial SummaryIn R$ million
Year %change
Quarter %change Dec/99 Sep/00Dec/00
29,703 30,82634,322
41,014 60,327
1996 1997 1998 1999 2000
CAGR of 19.4%, CAGR of 19.4%, 103.1% in 4 years 103.1% in 4 years
Funding
Funding in local currency 29,640 20,975 18,527 41.3% 60.0%
Funding in foreign currency 10,250 8,001 9,064 28.1% 13.1%
Total Funding 39,890 28,976 27,591 37.7% 44.6%
Assets under management 20,467 17,238 13,423 18.7% 52.5%
Total Customer Funds 60,357 46,214 41,014 30.6% 47.2%
22
In Corporate LegislationIn R$ millions
199819992000
Net Interest Income 3,501 3,348 3,090
Provisions for Losses (net of recov.) (859) (870) (705)
Service Fee Income 1,640 1,449 1,368
Personnel & Admin. Expenses (3,002) (2,727) (2,771)
Others (111) (303) (256)
Income Before Tax & Social Contribution 1,169 897 726
Tax & Social Contribution (224) (113) (99)
Profit Sharing (127) (114) (94)
Minority Interest (79) (79) (79)
Net Income 739 591 454
Financial Summary
Consolidated Income Statement
23
Financial Summary
Net Financial Margin(*) - % Net Write-off/Total Loan Portfolio - %
12.2 12.6 12.0
9.9
97 98 99 00
4.75.0
3.9
97 98 99 00
4.0
(*) (Net income from financial intermediation + Provision for loan losses) / (Average total assets - Average permanent assets)
24
Financial Summary
In R$ million
CAGR of 16.1%, 81.4% in 4 CAGR of 16.1%, 81.4% in 4 years years
4Q00 3Q00 QoQ % 2000 1999 YoY %
Bandeirantes and Fininvest Bandeirantes and Fininvest contributed R$ 25 million in contributed R$ 25 million in
fees in Dec/2000. fees in Dec/2000. 96 97 98 99
904
1,2441,368 1,449
1,640
2000
Fee Income
Tariffs and commissions 228 195 16.9 802 701 14.4
Credit Cards 180 148 21.6 619 501 23.6
Asset Management 62 62 - 219 247 (11.3)
Total 470 405 16.0 1,640 1,449 13.2
25
Fees/Personnel Exp.(%) 140.8 137.6 78.3
Fees/Total Expenses.(%) 54.6 53.1 33.8
Financial Summary
• Acquisitions of Bandeirantes, Fininvest and Credibanco contributed R$ 90 million to total
expenses
• Other newly consolidated companies (Cibrasec, Serasa and Surinvest) contributed R$ 32 million to total expenses
• 5.6% increase in expenses YoY excluding these two factors
2000 1999 1996
Personnel Adm. Expenses
Personnel and Administrative Expenses
96 97 98 99 2000
2,682 2,632 2,771 2,727
1,165
1,1071,147 1,143 1,053
3,002
1,837
1,575 1,4851,628 1,674
26
Efficiency Improvement
Total Assets - R$ MM Efficiency Ratio(4) - % Cost Asset Ratio - %
(1) Excludes non-recurring gains; (2) Excludes assets of Banco Nacional acquisition; (3) Excludes assets of Bandeirantes and 50% of Fininvest;(4) (Personnel expenses + Other administrative expenses) / (Net income from financial intermediation + Provisions for loan losses + Fee income + Insurance,Capitalization and Pension Plans - Taxes + Other operating income - Other operating Expenses)
Financial Summary
11,54613,528
26,26828,139
31,727
36,038
51,496
22,796
78.8%
67.0%
57.2%
69.4%64.9%
60.8% 59.1%(1) 60.0%
93 94 95 96 97 98 99 00
9.0%8.2% 9.3%(2)
10.2%9.4%
8.7%7.6%
6.3%(3)
27
Investments ( R$ MM )
35%
65%
January 1995
November 2000
Filters (1) Branches
(1) Main customer service filters: Phone Banking, “30 Hour” Branches, PC Banking, Drop Box, Internet, Rede Shop
23 million transactions
68 million transactions
69%
31%
79
108133
268
319
203 205
275
317
92 93 94 95 96 97 98 99 00
Efficiency Improvement
Financial Summary
28
Strategic Initiatives
- Acquisition of the remaining 50%, from Banco Icatu, of the total capital of BancoBanco Fininvest Fininvest announced on December, 2000
- Alliance with Portugal Telecom and Bradesco to outsource UBB´s Telecom Network Telecom Network announced on December, 2000
- B2BB2B Alliance with Portugal Telecom and Banco Galicia
announced on August, 2000
- Acquisition of Banco Bandeirantes Banco Bandeirantes and alliance with CGD CGD announced on July, 2000, contracted on September, 2000 and concluded on December, 2000
- Spin off of Banco1.netBanco1.net and association with Portugal Telecom, which controls Telesp Celular (4.3 million customers) and which recently announced the acquisition of Global Telecom with 700,000 customers in Paraná and Santa Catarina. In addition, PT controls Zip.net (4.5 million clients). announced on May, 2000
- Alliance with the American International Group (AIG)(AIG) in Insurance and Pension Funds announced on October, 1997 and June, 1998 respectively
- Acquisition of Banco NacionalBanco Nacional announced on November, 1995
Competitive Positioning
29
Wholesale Banking Group Retail Banking Group
Note: For visual representation.
Corporate Banking(Annual Sales > R$ 80 MM)
Private Banking(Financial Investment > R$ 1,000,000)
Exclusive Client(R$ 1,300 < Monthly income< R$ 4,000)
Upper Middle Market(R$ 25 MM < Annual Sales < R$ 80 MM)
Lower Middle Market(R$ 10 MM < Annual Sales <R$ 25 MM)
R$ 350 < Monthly Income > R$1,300
Special Client
Banco 1 (Virtual Bank)(Monthly Income > R$ 1,000 )
Uni Class(Monthly Income > R$ 4,000 )
Exclusive Client
(Annual Sales < R$ 10 MM)
Small Businesses
INDIVIDUALSCORPORATE
• Fininvest Clients• Retirees
Client Segmentation
Competitive Positioning
30
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/1996) - 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%
Impact of Fininvest Acquisition - Client Base Market Share
Competitive Positioning
31
Unibanco branches/CSB/ISB
Bandeirantes branches/CSB
Fininvest Network
Bandeirantes
Fininvest
Unibanco
99 2000
3.7
4.0
3.0
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
Client Base and Distribution Network
0.7
Competitive Positioning
32
Banking Population - Comparative Analysis
(1) Population with annual income between US$ 1,650 and US$ 5,000 with no bank account (2) Source: World Bank, Brazilian Geography & Statistics Institute (IBGE), National Statistical Office, Republic of Korea, McKinsey - Mar/98(3) Unibanco´s estimates
Potential Holders(1)
Population under 18yrs. of age or annualincome below US$ 1,650/yr
AccountHolders
1995 2005
# of potential holders 26 million 46 million
# of account holders 23 million 42 million
Brazil
15 million 260 million 45 million 152 million 177 million
24% 26% 29%
76% 74% 70%
0% 0%1%
Holland(2) USA (2) Korea(2) Brazil(2)
(1995) (1994) (1995) (1995) 2005 - E(3)
68%
24%
17%26%
15%
Competitive Positioning
33
Banking Population
Approximately 10 to 15 million new current accounts will be opened over the next three years by lower income population
% of EAP80% 79% 71% 20%
12
192
32 33
Holland USA Korea Brazil
Bank customers (million)
The necessary Macroeconomic conditions already exist: New Minimum Wage: R$ 180/month GDP growth : 3.5% to 4% in 2001 and 2002 Growth of the economically active population (EAP): over 4% p.a.
Some 33 million people hold 54 million current
accounts
Source: Ernst & Young (Sisbacen - June and September 2000)
Competitive Positioning
34
Open: 66 branches135 Corporate-site branches58 In-store branches
Gain : 1.8 million customers
Investments: R$ 180 million
Expense Growth: R$ 200 million
Incremental Income : R$ 500 million
Organic Growth Plan - 3-year Objectives
Competitive Positioning - Continuous Focus on Growth
35
Retail Banking - Organic Growth - 2000
Intensive use of Database Marketing
Segment Average Products per Client Jan/97 Dec/99 Dec/00
Uniclass 3.3 5.8 5.8
Exclusive 3.1 4.6 4.7
Special 1.5 3.4 3.4
Total 2.6 4.6 4.7
< 1 year clients =
3.5
> 1 year clients =
5.0Scale = Clients x Transactions
Competitive Positioning - Continuous Focus on Growth
36
53%55%
60%
63%
67%68%
94 95 96 97 98 9950
60
70
The Credit Opportunity
(*) Includes state owned companiesSource: FMI, Central Bank of Brazil
25% 25%
67%
142%
0
50
100
150
Brazil* Argentina Chile* USA
%
Chilean Banking System
Private Sectorin 1999
%
Loan Volume - as % of GDP
37
Brazil
28%34%
42%50%
2000 2001 E 2005 E 2010 E
UBB´s Market share (*)
24.9% 15.8% 13.9%CAGR
5.3%
108% 266%Accumulated 24.9%
(*) Brazilian Banking System
The Credit Opportunity
Loan Volume - as % of GDP
38
Months MonthlyInterest Rates
Installments
4 mo 12.0% R$ 329.23
12 mo 8.0% R$ 132.69
24 mo 4.0% R$ 65.59
48 mo 2.0% R$ 32.60
60 mo 1.5% R$ 25.39
The Credit Opportunity - Term Lengthening
Installments on R$ 1,000 loan
39
The Credit Opportunity
20% Average
Loan Growth (R$ 31.6 Billion)
18% 12.4%R$ 10.2
billion
5 years BIS RatioROAEForecast:
Potential
Leverage
in 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
Leverage
40
Credit Cards
100% Cartão Unibanco
100% Fininvest
100% Bandeirantes
# 1 in Credit Cards in Latin America# 1 in Credit Cards in Latin America
Subtotal
3,326 7 2,512
534 1 1,802
287 1 109
14,671 29 7,240
2,550 6 2,033
336 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
- --
41
Credit Card - Brazilian Industry
1999 2000E 2001E 2005E 2010E
Tra
nsa
ctio
n (
R$
bill
ion
)
Nu
mb
er o
f C
ard
s (M
M)
41.6
50.465.2
113.6
222.2
24
28 3452
87
Source: ABECS - Associação Brasileira de Empresa de Cartões
Number of Cards Transactions
42
Brazilian Industry - Premiums Written
Source: Fenaseg.
Insurance
5.6
12.014.6 15.2
18.6 19.4
1993 1994 1995 1996 1997 1998
20.3
1999
23.4
2000
In R$ Billion
Premiums/GDP - %
Brazil 2.1Germany 5.0France 7.0USA 9.0
43
R$ million 2000 1999
Premiums Written 890 743
Investment Income 146 179
Net Income 140 142
Shareholder´s Equity 938 874
ROE (% annualized) 14.9 16.2
Ranking 5th (1) 6th
Combined Ratio (%) 101.2 102.6
Extended Combined Ratio (%)(2)
80.2 75.9
Main Statistics - Unibanco Seguros
Insurance
(1) Including AIG Seguros.(2) Includes non-equity related financial revenues.
44
Main Statistics - Unibanco Seguros + AIG + Trevo Seguradora
Insurance
(1) Trevo Segutradora consolidated only in the month of Dec/00 (2) Includes non-equity related financial revenues.
R$ million 2000 (1) 1999
Premiums Written 1,148 997
Investment Income 164 211
Net Income 141 143
Ranking 5th 6th
Combined Ratio (%) 101.2 104.8
Extended Combined Ratio (%)(2)
83.3 81.0
45
Combined Ratio (%)
108.0
105.0
101.2
104.7
108.3106.5
98 99 00Unibanco Market
61.6 62.7 61.9
66.368.9 68.0
98 99 00
Unibanco Market
Claims (%)
Premiums Written
Premiums Written by Segment Unibanco Seguros
31%Auto Life and
accidents27%
Health6%
Property
14%
10%
8%4%
Others
CTPL
Marine cargo
1,075 9971,150
379349
369
98 99 00
Insurance (Unibanco, AIG, Trevo) Pension Plans
1,4541,346
1,519
Insurance
46
Brazilian Industry
Source: ANBID/Central Bank of Brazil
Asset Management
% of GDP Mutual Funds
0
20
40
60
80
100
120
140
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
US
$ B
illi
on
0%
5%
10%
15%
20%
25%
% o
f G
DP
CruzadoPlan
CollorPlan
MexicanCrisis
AsianCrisis
RussianCrisis
Devaluation160 30%
2000
47
• Focus on distribution
in R$ billion
98 99UnibancoBandeirantes
00
10,175
13,423
20,467
18,697
1,770
Market Share - Mutual Funds
98 99 00
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 00
2.66%1.88%
1.41%
Asset Management
Assets under Management
48
Internet - Main Statistics
Dec Nov OctHits Entire Site (Successful) 33,581,149 29,575,528 31,893,336
Average Per Day 1,083,262 985,850 1,028,817 Home Page 1,514,163 1,406,697 1,432,431
Page Views Page Views (Impressions) 6,504,115 6,001,928 5,634,601 Average Per Day 209,810 200,064 181,761
VisitorSessions
Visitor Sessions 898,079 839,212 590,347 Average Per Day 28,970 27,973 19,043 Average Visitor Session Length 00:06:16 00:05:59 00:05:38
Visitors Unique Visitors 236,575 239,952 197,556 Visitors Who Visited Once 105,902 110,771 104,081 Visitors Who Visited More Than Once 130,673 129,181 93,475
49
386380372374374374379364370372377362372384382
272256238228215198190
176169160152148141132123
636610602589
572569540539532529
510513516505
0
100
200
300
400
500
600
700
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Home Banking Internet Banking Total On-Line
658
Internet - Registered On-line Clients
On-line Clients (thousand)
50
Internet – 2001 Main Goals
• Improve Internet Banking for Individuals and launch new site for small corporates
• Increase in 25% total transactions per access in Internet Banking (Individual)
• Conclude Cyber-Branches implementation
• Increase in 20% the number of products sold to our on-line clients
• Launch the gateway for payments through internet (Clique-Pague)
• Launch the electronic wallet (Num-Clique)
• Start B2B transactions (Tradecom)
• Double the number of active on-line clients
51
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
1-Bradesco 2.9x 2-Itaú 2.3x 3-Banespa 2.3x 4-Bamerindus 1.6x
5-Unibanco 1.0x 6-Econômico 0.9x7-Nacional 0.8x8-ABN Real 0.7x
1990
Multiple
2000
Multiple
(1) As of December,2000 (2) As of September,2000 (3) As of June,2000
Concluding Remarks
Competitive Arena - Multiple of Total Assets
52
Concluding Remarks
EstimatesReport Brokerage Analyst Recommend. Target Net Inc P/E at EPSDate House Price E 2001 today's E 2001
US$ R$ MM price R$10/04/01 Salomon Smith Barney José Garcia Cantera Neutral, High Risk 34,0 908 5,08 6,4629/03/01 Lehman Brothers Robert Lacoursiere Strong Buy 28,3 859 5,37 6,1123/03/01 Goldman Sachs Daniel Abut Buy 35,0 917 5,03 6,5215/03/01 Merrill Lynch Rodrigo Quintanilla Accumulate/LT Buy 35,0 923 5,00 6,5615/03/01 Warburg Dillon Read Laurence Madsen Buy 41,0 761 6,07 5,4113/03/01 Deutsche Bank Brent Erensel Strong Buy 40,0 874 5,28 6,2109/03/01 Pactual Bruno Zaremba Buy 37,5 770 6,00 5,4716/02/01 Morgan Stanley Jorge Kuri Neutral n.a 744 6,21 5,2916/02/01 ING Barings Paul Warme Buy 31,0 851 5,43 6,0516/02/01 Santander Bozano Pedro Guimarães Hold 27,7 1.061 4,35 7,5417/01/01 Dresdner Kleinwort Stephen Dreskin Buy n.a 900 5,13 6,4002/11/00 BBVA Securities Gustavo Teran Outperform 38,0 900 5,13 6,4001/11/00 JP Morgan Yolanda Courtines Buy 40,0 980 4,71 6,9723/10/00 ABN Amro Bank Antonio Klapka Hold 32,0 949 4,87 6,74
Average 35,0 885,4 5,26 6,29
Net Market Consensus published by: Income P/E EPS
FY01
IBES 856 5,66 6,09number of analysts 19
First Call - Thomson IR 862 5,62 6,13number of analysts 11
Dow Jones (Zack Earnings Estimates) 888 6,31 6,31number of analysts 5
Multex Investor 885 6,29 6,29number of analysts 6
Analysts Recommendations
53
P/BV
Note: Prices as of April 17, 2001 and Book Value as of December 31, 2000
Price to Book Value
1.20
2.07
2.91
Unibanco Bradesco Itáu
Concluding Remarks
54
Strategic Positioning
• Positioned to gain share and increase profitability in Retail (including credit card and consumer finance), Wholesale Banking, Insurance and Asset Management
• Focused on increasing return on capital through well established cost reduction and fee income growth initiatives
• Focused on proper management of risks: proven track record in credit and well provisioned
• Clearly defined control and management depth
• Relevant player in recent and future industry consolidation process
Concluding Remarks
55
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