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As Of Filer Filing For·On·As Docs:Size 11/18/02 Unibanco Holdings SA 6-K 12/31/02 1:3.4M |
Document/Exhibit Description Pages Size 1: 6-K Report of a Foreign Private Issuer HTML 72K
| Provided by MZ Consult |
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under Securities Exchange Act of 1934.
Yes _______ No ___X____
For Immediate Release
For further information please contact:
Geraldo Travaglia
Lucas Melo
Julia Reid
Leandro Alves
Leticia Wrege
Unibanco
Av. Eusebio Matoso, 891-15.o floor
Sao Paulo, SP 05423-901
Phone.: (55 11) 3097-1626 / 1313
Fax: (55 11) 3813-6182 / 3097-4830
E-mail:investor.relations@unibanco.com.br
Unibanco and Unibanco Holdings
CONSOLIDATED RESULTS FOR THE THIRD QUARTER ENDED September 30, 2002
(São Paulo, Brazil, November 12, 2002) -- Unibanco - União de Bancos Brasileiros
S.A. and Unibanco Holdings S.A released today their consolidated financial
results under Brazilian GAAP for the third quarter ended September 30, 2002.
Highlights for the 9M02
- Net income for 9M02 reached R$744 million, up 1.8% over the 9M01 figure.
Net income for 3Q02 stood at R$269 million, 6.3% over 2Q02.
- Earnings per 1000 shares stood at R$5.37 in 9M02, 3.1% higher than the
R$5.21 posted in 9M01. Stockholders' equity stood at R$6.2 billion in
September 2002, an increase of 2.3% when compared to September 2001. Book
value per 1000 shares reached R$44.77 at the end of the period.
- 3Q02's annualized return on average equity (ROAE) was 18.4%, while the
annualized return on average assets (ROAA) was 1.6%. Annualized return on
average stockholders' equity was 16.5% for the first nine months of 2002.
- If one were to disregard the impact of the goodwill amortization from
Unibanco's acquisitions, net income would reach R$285 million and R$790
million in 3Q02 and 9M02, respectively. Stockholders' equity would be R$4.7
billion, resulting in a ROAE of 26.3% and 23.3% in 3Q02 and 9M02,
respectively.
- Unibanco's consolidated total assets reached R$73.4 billion on September
30, 2002, representing a growth of 16.0% for the quarter and 26.5% Y-o-Y.
R$28.2 billion of Unibanco's total assets were loans, R$21.3 billion were
marketable securities and derivative financial instruments - issued
primarily by the federal government - and R$8.5 billion were interbank
investments.
- The loan portfolio in September 2002, at R$28.5 billion, increased by 7.4%
over the quarter. For the last twelve months, the growth posted was 11.9%.
Growth was influenced by the foreign exchange rate fluctuation during the
period, namely 36.9% in 3Q02 and 45.8% accrued over the last 12 months.
- At the end of September 2002, the consolidated allowance for loan losses
balance totaled R$1,900 million, up 13.8% when compared to June 2002 mainly
due to an increase in excess provisions above the minimum required by
Resolution 2682. Total provisions increased from 6.3% of total loans in
June 2002 to 6.7% at the end of September 2002. These provisions were:
- R$628 million or 33.1% of the total, under Resolution 2682,
related to overdue credits;
- R$820 million or 43.1% of the total, for the different levels of
credit risk, under Resolution 2682, related to credits to mature;
- R$452 million or 23.8% of the total, based on more conservative
percentages than those required by the Regulatory Authority, of
which R$209 million were constituted in 3Q02.
- In September 2002, Unibanco's overall funding reached R$78.7 billion,
including R$19.3 billion in funds under management, up 12.6% and 22.3% over
the past three and twelve months, respectively. Time deposits were up 16.9%
in the quarter and 64.2% over the last 12 months mainly due to the
migration of resources from mutual funds that took place in the market
following the change in mark-to-market rules in May 2002.
- Core deposits (demand plus savings), at R$8.4 billion in September 2002,
increased by 10.2% in the quarter and 29.9% over the last 12 months.
- The Basel capital adequacy ratio stood at 12.3% in September 2002, against
13.4% in June and 13.3% in September 2001.
- The financial intermediation revenues reached R$12.3 billion in 9M02, up
41.5% compared to the same period last year. In 3Q02, the financial
intermediation revenues of R$5.7 billion rose 42.7% in the quarter.
- During 9M02, total fees from services rendered of R$1.9 billion posted a
19.2% growth compared to the same period last year. Total fees from
services rendered in 3Q02 totaled R$670 million, a 19.6% increase from 3Q01
and a 5.3% rise Q-o-Q. This performance reflects the growth of revenues
from banking fees and commissions, which rose by 9.4% this quarter, as a
result of customer-base increase, a greater ratio of client activation and
higher product penetration per customer.
- Administrative and personnel expenses reached R$1.1 billion in 3Q02, having
remained stable vs. 3Q01, despite the period's inflation. In 9M02, expenses
totaled R$3.2 billion, up 7.0% when compared to the same period of the
previous year, vs. a 7.9% inflation rate (IPCA) over 12 months, which
highlights the benefits of the implementation of cost-cutting measures.
- 9M02's efficiency ratio of 54.7% improved from 57.8% posted in 9M01. The
ratio was slightly higher in 3Q02 compared to the previous quarter,
reaching 55.6%, due mostly to the September 2002 collective bargaining
agreement. If one disregards this impact, the ratio would be 53.9%.
- The percentage of personnel and administrative expenses covered by fees
stood at 60.2% in the 9M02 compared to 54.1% in 9M01. This indicator has
been improving consistently over the last years.
Operating Highlights
Retail Bank
- Unibanco acquired 665,000 new bank accounts through the ContAtiva Program
in 9M02. In 3Q02, 209,000 new bank accounts were opened, keeping the pace
of more than 200,000 accounts per quarter. The continuing growth indicates
that the initial goal of opening 1.8 million new bank accounts, originally
foreseen to be performed in October 2003, should be reached ahead of
schedule in 1Q03. This program seeks to gain, for the network under the
Unibanco brand, customers whose monthly income is higher than R$1,000. This
achievement, coupled with customers, savings account holders and retirees
at the end of the quarter totals 5.6 million customers under the Unibanco
brand. When added to our consumer finance clients (Fininvest, Investcred,
LuizaCred), Unibanco services 12.9 million customers.
- Unibanco reached the end of September 2002 with 1,429 points of sale, as
follows: 799 branches, 444 corporate-site branches, 78 in-store branches
and 108 Fininvest stores.
- The retail loan portfolio, at R$11 billion in September 2002, was up 3.2%
Q-o-Q.
- Retail bank's deposits and funds grew from a R$15.9 billion balance in June
2002 to R$17.8 billion in September 2002.
- The table below shows the ROAE and earnings of the main companies also
contributing to the Retail Bank business. These companies are an integral
part of Unibanco's strategy of positioning itself across the full range of
financial services, and, through its consumer credit operations, covering
all income segments.
- Credibanco - Cartão Unibanco's total earnings stood at R$35 million in 3Q02
and R$88 million in 9M02. ROAE stood at 43.3% in 9M02. The company's credit
card operations posted a net income of R$59 million in 9M02 and R$23
million in 3Q02, representing a growth of 29.2% vs. 3Q01. Other Credibanco
operations generated net income of R$29 million in 9M02 and R$12 million in
3Q02. The credit card billings of Credibanco - Cartao Unibanco, measured in
terms of volume of purchases and drafts of its associates, reached R$1.2
billion in 3Q02, representing a growth of 17.4% vs. 3Q01, and accumulating
R$3.3 billion in 9M02, 17.5% above 9M01. The average monthly financed
volume reached R$368 million in 3Q02 with growth of 15% vs. 3Q01. In 9M02,
the average financed volume was R$365 million, up 22.1% when compared to
9M01. At the end of 3Q02, the number of cards issued stood at 3,808
thousand, up 8.3% Y-o-Y and 2.5% when compared to 2Q02.
- The Credicard group - formed by the companies Credicard, Redecard and
Orbitall - posted net income of R$127 million in 3Q02 and R$ 473 million in
9M02 of which R$54 million and R$189 million contributed respectively to
the bank's earnings. Billings of the Credicard group were R$8.1 billion in
3Q02 and R$22.8 billion in 9M02, 18,8% above 9M01.
- Fininvest contributed with R$28 million to Unibanco's bottom line in 9M02,
representing a 18% ROAE. The quarter result was affected both by the change
in the product mix and more prudent credit granting policies, resulting in
a reduction of assets. The restructuring and integration of activities with
Unibanco and Credibanco also contributed to the company's result. The
company ended 3Q02 with R$1.1 billion in loans (excluding LuizaCred
operations), 3.5 million active customers and 108 stores in the country's
main markets.
- LuizaCred consumer finance company, Fininvest's subsidiary resulting from
the Magazine Luiza partnership, reached a net income of R$3.2 million in
3Q02 and R$9 million in 9M02. ROAE stood at 52.9% in 9M02. LuizaCred ended
September 2002 with R$168 million in loans and 900,000 active customers.
- Investcred Unibanco bank, Globex - Ponto Frio partnership, posted a net
income of R$9 million in 3Q02. During 9M02, net income reached R$17 million
and ROAE stood at 21.7%. At the end of the 3Q02, the loan portfolio totaled
R$539 million and the number of active customers reached 2.9 million.
- Banco Dibens, an association with the Verdi Group targeting the financing
of vehicles, posted a net income of R$7 million in 3Q02 and R$25 million in
9M02, the latter representing a ROAE of 21.2%. The bank ended the quarter
with a R$1.2 billion loan portfolio, 20% higher than September 2001.
- Unibanco-Rodobens and Consorcio Nacional Ford (CNF) financing companies
sold, in 3Q02, 7.3 thousand quotas, representing a growth of 40% when
compared to the same period of last year. The volume negotiated totaled
some R$130 million between July and September 2002.
- Unibanco Capitalizacão posted sales of R$68 million in 3Q02, up 8% when
compared to 3Q01 and 5% vs. 2Q02. Administrative expenses totaled R$9
million representing a reduction of 23% vs. 3Q01. Net income reached R$14
million in 3Q02, up 55.6% compared to 2Q02. In 9M02, net income was R$36
million resulting in a ROAE of 37.1%.
Wholesale Bank
- The Wholesale Bank reached, at the end of September 2002, total loans of
R$17.5 billion up 10.2% when compared to June 2002. The portfolio growth in
the quarter was mostly due to the exchange rate devaluation of 36.9% in the
period. Excluding this impact, the portfolio would have decreased by 0.4%
- Wholesale bank's funding (deposits and funds accounts) increased from a
balance of R$25.6 billion in June 2002 to R$26.1 billion in September 2002.
- In an environment characterized by scarce trade finance lines to Brazil,
Unibanco signed, in October 2002, an agreement with the International
Finance Corporation ("IFC"), the financial segment of the World Bank, for a
360-day term Trade Finance Facility amounting to US$175 million. At
maturity, approximately US$50 million may be renewed for a similar period,
at Unibanco's discretion. The other US$ 125 million was syndicated to a
pool of 18 banks and represents the first tranche of a US$ 250 million
pre-approved credit limit under the IFC Facility.
- As a financial agent in the BNDES (Brazilian Development Bank) Onlendings
segment, Unibanco disbursed R$761.6 million in 9M02 with a 8.1% market
share and ranking first among private sector banks in disbursements. In the
overall ranking, Unibanco is placed 2nd after Banco do Brasil. In
BNDES-exim Unibanco disbursed R$150 million, with a 7.4% market share in
9M02.
- In Debt Capital Markets, Unibanco maintained its # 1 rank, both in terms of
origination and distribution of securities, with a 21% market share in both
categories. During the first 9M02, Unibanco coordinated twelve deals
amounting to R$4.3 billion of which Unibanco underwrote R$1.7 billion.
- In the Syndicated Loans segment, in 9M02, Unibanco took part as Arranger in
11 deals totaling R$3.2 billion and as Co-Arranger in nine transactions,
totaling R$1.9 billion.
- In Cash Management, more than 77 thousand corporate clients use Unibanco's
cash management services, such as payments and credit. In 9M02, the
financial margin of the cash management services rose by 20.3% relative to
the same period in 2001, reaching the level of R$237 million.
Insurance and Private Pension Plans
- The insurance and private pension plans businesses posted earnings of R$192
million in 9M02, with a 47.7% growth vs. the same period last year. The
companies' net income reached R$66 million in 3Q02, up 50% from 3Q01. ROAE
for the 9M02 was 21.3%.
- Total premiums in 9M02 reached R$1.8 billion, 26.7% higher than 9M01.
According to industry data released in August 2002 by the Insurance-
regulatory body (SUSEP) and the National Association of Private Pension
Funds (ANAPP), Unibanco's insurance companies ranked 4th, with a 6.5%
market share in terms of insurance and private pension plans.
- Technical reserves under management reached R$2.5 billion at the end of the
period, up 22% over 9M01, and 6% Q-o-Q.
- According to August 2002 figures made available by SUSEP, Unibanco AIG
Seguros e Previdencia ranked 1st in the fire insurance segment, with R$230
million in premiums and growth of 21.7% relative to the previous quarter.
The company also maintained its leadership of the following segments:
D&O (Directors & Officers - executive liability), extended
warranty, residential, international transportation, aeronautical and
petrochemical risks.
- The insurance companies administrative expenses totaled R$140 million in
9M02, down 4.8% if compared to 9M01. In 3Q02, the company posted R$46
million in administrative expenses, maintaining the same level of the
previous quarter. These results are the consequence of ongoing cost and
processes revisions. At the end of 9M02, administrative expenses were 10%
of premiums written, which compared to 19% in 1999, reflecting a
significant productivity and scale gain in the business.
- Unibanco AIG Previdencia headed the period's ranking in terms of corporate
sales, with a volume of R$230 million, 14.3% ahead of the runner-up,
according to the official statistics released by ANAPP in August 2002. The
company services approximately 513,000 individual customers and 871
corporate clients.
Wealth Management
- The Wealth Management segment comprises Unibanco's asset management
business and private banking, thus benefiting from the natural synergies
between the two areas.
- Unibanco Asset Management - UAM ended September 2002 with R$19.3 billion in
assets under management, down 2.8% when compared to September 2001 and 3.7%
vs. June 2002. This decrease results from the changes in the mark-to-market
rules for fund portfolios, as determined by the Central Bank of Brazil on
May 31, 2002. These changes caused a significant migration of funds to
deposits, mainly to time deposits. At Unibanco, total deposits grew by more
than 4 times the decrease in funds under management: deposits were up by
R$3.2 billion, against a drop of R$0.7 billion in assets under management.
UAM's market share was maintained at 4.6%.
- Private pension funds under UAM's management reached the end of September
2002 with assets totaling R$4.2 billion. The company is the second largest
manager in this segment, with a 10.9% share, according to Anbid.
- Investment funds managed by UAM stood out in the rankings published by
Exame magazine and Gazeta Mercantil newspaper. Exame's "Best 2002
Investment Funds Guide" classified seven UAM funds as being 5-stars
investments. According to Exame, UAM was chosen the best manager in three
out of six asset categories: fixed income, equities and leveraged funds.
UAM was also elected the 2nd best manager of funds in the Retail segment.
In the Gazeta Mercantil 2Q02 ranking, released on July 26, two UAM funds
were awarded the top place in their respective categories.
- Private Banking reached R$9.5 billion in funds under management by the end
of September 2002, up 24.8% vs. the previous quarter.
Technology and the Internet
- The user base of Unibanco's Internet Banking continued to grow. It reached
869,000 users, 41% above December 2001's 615,000 users. The number of
transactions reached the figure of 51.7 million in 9M02, representing a 63%
growth compared to 9M01. The financial volume in 9M02 stood at R$4.0
billion, 37% greater than that of the same period last year.
- The new version of Internet Banking for corporates, introduced in the
period, has already more than 50,000 customers that previously relied on
the 30-Hour micro service. This replacement by a web-based technology
provides greater flexibility and mobility to the user community,
facilitating the updating of versions and the addition of new offers. The
consolidation of this channel is essential for the bank's growth strategy,
strengthening the portfolio of products specifically designed for corporate
clients.
- The 30-Hour Telephone service was considered the best call center in the
financial market, according to IBOPE research. In this survey, Unibanco
achieved a grade of 6.5 out of 7 in Customer Servicing. Of the total number
of calls received by the 30-Hour Phone Service, a record 86% were processed
solely by the electronic servicing system.
Community-oriented Activities
- In September, the 2002 Social Welfare Action (SuperAÇão Social) program was
launched, this time involving all Unibanco’s employees. This program is an
employee initiative geared at encouraging volunteer work through social
welfare activities. Last year, more than 3,200 employees participated in
the initiative, helping more than 80 social welfare organizations.
- The Junior Achievement program consists of one of the most important
educational projects for youngsters focusing on the business world. In
September 2002, new groups were started in five public schools, involving
870 elementary school students and 83 Unibanco volunteers.
- The traditional Clothing Campaign received a record number of donations
this year. More than 11,000 kg of clothing were collected, almost twice as
much as in 2001. Similarly to previous years, for each kg obtained Unibanco
donated a blanket.
- In August 2002, Unibanco contributed to the construction of the Basic
Healthcare Unit of the Family Health Association (Associacao Saude da
Familia), in the district of Sapopemba in Sao Paulo. It will service some
30,000 needy people per month.
- In 3Q02, Unibanco Ecology (Unibanco Ecologia) donated another eight
environmental centers: in the cities of Santos, Santo Andre, Belo
Horizonte, Brasilia, Goiania, Salvador, Vitoria and Recife.
Unibanco Pessoas (Human Resources)
- Unibanco carries out several professional development initiatives geared
towards both training/technical education and behavior, totaling an
investment of roughly R$6.2 million in the 9M02. Thus, it invests in
activities that range from specific training programs (either multimedia or
in loco) to MBA programs in Brazil or abroad.
- As a result of its strategy of developing closer ties with universities,
such as the University of Sao Paulo Polytechnic School (Poli-USP), the
Getulio Vargas Foundation (FGV), the University of Campinas (Unicamp), the
Catholic University (PUC) and IBMEC, among others, Unibanco has carried out
several activities that attracted roughly 32,000 people interested in the
2003 Trainee Program.
- Unibanco is committed to hiring disabled people. One of the activities in
this area is the Program for Professional Qualification of Disabled People,
coordinated by Febraban and sponsored by another five financial
institutions. The first stage of this program has qualified 160 people.
Contents The Brazilian Economy Net Income and Stockholders' Equity Assets Securities Portfolio Loan Portfolio Allowance for Loan Losses Provision for Loan Losses Funding Capital Adequacy Ratio Performance Overview Results Fees from Services Rendered Personnel and Administrative Expenses Efficiency Ratio Main Investments Consolidated Balance Sheet Consolidated Income Statement
The Brazilian Economy
During the third quarter, Brazil's economy was affected by the unfavorable
combination of a slow-down and an increased aversion to risk by the
international markets, coupled with intense expectations concerning the
Brazilian elections. This situation led the country to face a strong credit
crunch. Because of the reduction in the volume of foreign debt rollovers,
Brazilian companies had to start buying US dollars to settle their debts,
thereby putting pressure on the exchange rate. The reduction in the volume of
trade finance lines also pressured the exchange rate. The devaluation of local
currency during the quarter reached 36.9%, accumulating 67.9% over the first
nine months of the year.
In July, the Central Bank reduced the Selic interest rate to 18.00%, from
18.25% per year. The rise of the dollar and the ensuing pressure on inflation,
however, put a stop to the process of cutting interest rates. In October, in
order to reduce the pressure for price increases, the Monetary Policy Council
(Copom) raised the Selic rate to 21% per year. 3Q02 inflation, as measured by
the IPCA consumer price index, reached 2.6%, vs. 2.3% during the same period in
2001. Economic activity suffered as a result of deteriorated expectations and
the pressure on the exchange rate. Industrial production during the quarter rose
by a modest 3.2% vs. the same period last year, and by 4.9% vs. the second
quarter.
In view of the deterioration of the macroeconomic scene, the financial
system was more prudent regarding the expansion of the credit portfolio. During
the third quarter, total credit in the financial system rose by 6.7%; the
private segment of the financial sector expanded its credit portfolio by 5.1%
and the government system by 7.6%.
Net Income and Stockholders' Equity
Unibanco
Net income for 9M02 reached R$744 million, up 1.8% over the 9M01 figure.
Net income for 3Q02 stood at R$269 million, 6.3% over 2Q02.
Earnings per 1000 shares reached R$1.94 in 3Q02, 6.3% higher than the
R$1.83 posted in 2Q02.
Stockholders' equity stood at R$6.2 billion in September 2002, an increase
of 2.3% when compared to September 2001.
If one were to disregard the impact of the goodwill amortization from
Unibanco's acquisitions, net income would reach R$285 million and R$790 million
in 3Q02 and 9M02, respectively. Stockholders' equity would be R$4.7 billion,
resulting in a ROAE of 26.3% and 23.3% in 3Q02 and 9M02, respectively.
The table below shows Unibanco's consolidated profitability:
Unibanco Holdings
Unibanco Holdings's net income for 9M02 totaled R$444 million, resulting in
earnings per 1000 shares of R$5.33. Stockholders' equity in September 2002
reached R$3.7 billion. The ROAE for the period was 16.3%, while the book value
per 1000 shares stood at R$44.80.
Assets
Unibanco's consolidated total assets reached R$73.4 billion on September
30, 2002, representing a growth of 16.0% for the quarter and 26.5% Y-o-Y. R$28.2
billion of Unibanco's total assets were loans, R$21.3 billion were marketable
securities and derivative financial instruments - issued primarily by the
federal government - and R$8.5 billion were interbank investments.
Securities Portfolio
The following table shows Unibanco's consolidated securities portfolio by
type and maturity at amortized cost regarding securities held to maturity and
marked-to-market for securities classified as available for sale and trading:
Unibanco's securities portfolio and the impacts of 3Q02 market value
adjustments, according to the new regulations issued by the Central Bank of
Brazil put into effect on June 30, 2002, are shown as follows:
The 36.9% devaluation of the real during the quarter was the main factor to
impact the balance of securities. Since the securities portfolio held to
maturity consists largely of securities indexed to the foreign exchange rate,
their balance increased compared to other assets. In addition, trading
securities amounting to some R$600 million matured during the period and were
not renewed.
Derivative financial instruments, adjusted as per Central Bank of Brazil
Circular Letter 3082, produced adjustments net of taxes and minority interest
during the quarter, of R$251 million and a negative R$9 million in income and
net equity, respectively.
Trading securities are acquired with the purpose of being actively and
frequently traded. They are accounted for at their acquisition cost plus
interest earnings and adjusted to market value, with the unrealized profit and
losses being recognized in the period's income statements. The following table
shows such securities' balance on September 30 2002:
Securities available for sale can be traded as a result of interest rate
fluctuations, changes in payment conditions or other factors. They are accounted
for at their acquisition cost plus earnings, which are recognized in the
period's income and adjusted to market value in a stockholders' equity account.
The following tables show their balance on September 30 2002:
Securities held to maturity are those that the institution has the
intention and financial capacity to keep until maturity. They are accounted for
at the acquisition cost plus interest earnings. The following tables show their
balance on September 30 2002:
Loan Portfolio
The loan portfolio in September 2002, at R$28.5 billion, increased by 7.4%
over the quarter - slightly above the market growth of 6.7%. For the last twelve
months, the growth posted was 11.9%.
Unibanco's consolidated loan portfolio by client, by segment and by
business is shown as follows:
Since personal loans are not dollar-indexed, they were not affected by the
Real devaluation. The consumer credit companies' loan portfolio posted a 10.6%
drop during the quarter. The reduction in the volume of credit operations at
these companies was driven by more rigid credit granting policies. As regards
September 2001, Retail loans rose by 3.1%, especially in consumer credit to
Unibanco's clients.
The credit portfolio in the Wholesale segment, including Private Banking,
posted a 10.2% growth relative to the previous quarter and 18.4% in the year,
which can be mostly ascribed to the exchange rate fluctuation. Excluding the
exchange rate effect, the portfolio would have decreased by 0.4% in the quarter.
Allowance for Loan Losses
At the end of September 2002, the consolidated allowance for loan losses
balance totaled R$1,900 million, up 13.8% when compared to June 2002 mainly due
to an increase in excess provisions above the minimum required by Resolution
2682. Total provisions increased from 6.3% of total loans in June 2002 to 6.7%
at the end of September 2002.
These provisions were:
- R$628 million or 33.1% of the total, under Resolution 2682,
related to overdue credits;
- R$820 million or 43.1% of the total, for the different levels of
credit risk, under Resolution 2682, related to credits to mature;
- R$452 million or 23.8% of the total, based on more conservative
percentages than those required by the Regulatory Authority, of
which R$209 million were constituted in 3Q02.
D-H rated loans, as a % of the total portfolio, posted a decrease of 1%,
from 8.5% to 7.5% compared to the June 2002's balance. That was driven by a more
rigid credit granting policy at Fininvest. Top-rated loans classified as AA-C,
represented, on a cumulative basis, 92.5% of the portfolio in September 2002,
above the 91.5% level posted in June 2002.
The following table shows the distribution of the credit portfolio and
total provision maintained by the Multiple Bank and by the consolidated
subsidiaries and associated companies:
The following tables show the breakdown of credit risk and allowance for
loan losses by company as of September 2002:
Provision for Loan Losses.
Unibanco's consolidated changes in provisions for loan losses and loan
recoveries are shown in the following tables. The credit quality ratio has been
posting a constant improvement, from 9.6% in 2Q02 to 8.7% in 3Q02, as per the
following tables.
Funding
The following table shows Unibanco's consolidated funding:
In September 2002, Unibanco's overall funding reached R$78.7 billion,
including R$19.3 billion in funds under management, up 12.6% and 22.3% over the
past three and twelve months, respectively. Total local and foreign funding
increased 19.1% over the quarter to R$59.4 billion on September 30, 2002. Local
funding increased 21.2% in the quarter to R$41.9 billion, mainly due to growth
in deposits and open market funding.
The balance of deposits (in local and foreign currencies) rose by 14.7%
this quarter, surpassing the market growth of 9.5% (according to Bacen
preliminary data). Demand deposits increased by 5.3%, savings accounts by 12.9%
and time deposits by 16.9%. Both time deposits and savings accounts rose
primarily because of the migration from asset management funds caused by the
introduction of new mark-to-market rule for funds in May 2002. The balance of
deposits coupled with funds grew 20.7% over the last 12 months. Unibanco has
been improving its deposits to loans ratio. This was 66.3% in September 2001 and
rose to 87% in September 2002. Deposits increased by 49.1% Y-o-Y, whereas the
credit portfolio increased by 13.6%.
In October 2002, the compulsory deposits were changed, rising to 53% from
48% on demand deposits, to 30% from 25% on savings accounts and to 23% from 18%
on time deposits. These changes were implemented following a significant
migration of funds from de asset management industry to deposits (see also
Operational Highlights - Wealth Management or Main Investments - Asset
Management). As a consequence, liquidity at Unibanco was impacted by
approximately R$ 1billion, however as the 5% increase in the three categories
are remunerated at the Selic interest rate, no changes to profitability are
expected.
The growth of funds obtained in the open market took place because Unibanco
was requested by the Central Bank of Brazil to act as its main dealer on the day
of September 30, 2002. On that date, the Central Bank's reserve balance at
Unibanco amounted to R$4.2 billion, vs. R$0.4 billion on June 30, 2002.
Funding from foreign currencies rose by 14.5% this quarter and by 37.1%
Y-o-Y, totaling R$17.5 billion at the end of September 2002. A highlight for
this growth were two important long-term foreign currency funding operations in
2Q02: the issuance of subordinated debt, amounting to US$200 million (R$795
million), with an initial rate up to the fifth year of 9.375% per year and from
the sixth year to maturity a rate of 11.7995%; and the securitization of
receivables amounting to US$400 million (R$1.6 billion), with a 7-year-term,
with an investor rate of quarterly Libor plus 0.57%.
In an environment characterized by scarce trade finance lines to Brazil,
Unibanco signed, in October 2002, an agreement with the International Finance
Corporation ("IFC"), the financial segment of the World Bank, for a 360-day term
Trade Finance Facility amounting to US$175 million. At maturity, approximately
US$50 million may be renewed for a similar period, at Unibanco's discretion. The
other US$125 million was syndicated to a pool of 18 banks and represents the
first tranche of a US$250 million pre-approved credit limit under the IFC
Facility.
Funds and portfolios managed by UAM - Unibanco Asset Management impacted by
the mark-to-market rule reached the end of September with R$19.3 billion in
assets, a 2.8% drop over the September 2001 figure and 3.7% when compared to
June 2002 (see also Operational Highlights - Wealth Management or Main
Investments - Asset Management).
Capital Adequacy Ratio The table below shows the BIS ratio over the quarter:
In October 2002, the Brazilian Central Bank edited Circular 3156 that
changed the weighting rules of the net foreign exchange exposure for the Basel
calculation. The factor applicable to net exposure, which was previously 50%,
became 100%. Furthermore, the Central Bank reduced the maximum allowed exposure
to the exchange rate from 60% to 30% of the reference equity base. This new rule
came into effect in October 2002. The new measures did not affect the ratio in
the month of October 2002, because Unibanco's net foreign exchange exposure was
within the 5% capital base limit authorized by the Central Bank.
Performance Overview
Results
The 3Q02 financial intermediation revenues of R$5.7 billion rose 42.7% vs.
the last quarter. In 9M02 the growth was 41.5% relative to 9M01. The adjusted
results provided by securities posted a 67.4% growth during the quarter, due to
the increase in balances and the exchange rate fluctuation. The revenues and
expenses from financial intermediation were mostly affected by the foreign
exchange fluctuation. The average spreads of the Retail and Wholesale portfolios
remained unchanged in 3Q02 vs. 2Q02. The net adjusted financial margin,
considering the net impact on investments abroad, stood at 10.7% in 3Q02 and
10.5% in 9M02, as follows:
Expenses with provisions for loan losses totaled R$717 million in 3Q02, up
17.0% over 2Q02. In 3Q02 free provisions increased by R$209 million due to more
prudential criteria than those required by Resolution 2682 (see Allowance for
Loan Losses).
Additionally, also due to prudential measures, several other provisions
were reinforced during the quarter amounting to R$74 million.
Investments abroad totaling R$3.8 billion and R$2.8 billion at the end of
September and June 2002, respectively, were kept approximately 60% hedged, as
shown below:
The following chart shows Unibanco's consolidated main assets and
liabilities in foreign and local currencies:
The following graph demonstrates net revenues by business:
Fees from Services Rendered
The breakdown of Unibanco's consolidated fees from services rendered is
demonstrated as follows:
Total fees from services rendered in 3Q02 totaled R$670 million, a 19.6%
increase from 3Q01 and a 5.3% rise Q-o-Q. During 9M02, total fees from services
rendered, of R$1.9 billion, posted a 19.2% growth compared to the same period
last year.
3Q02 banking fees of R$348 million grew by 27.5% from 3Q01, and 9.4% over
2Q02. This growth was due to the increase in Unibanco's customer base, a greater
activation ratio and an increased product penetration per customer.
Revenues from the credit card business amounted to R$258 million in the
quarter, remaining stable relative to 2Q02. In 9M02, credit card revenues showed
an increase of 23.2% compared to the same period last year. This performance is
due to higher than market growth in billings, 18.6% vs. 10.2% for the market and
the growth in the card portfolio.
The following graph shows the fees from services rendered vs.
administrative and personnel expenses:
The percentage of personnel and administrative expenses covered by fees
stood at 60.7% in 3Q02 and 60.2% in 9M02. This indicator has been improving
consistently over the last few years. In 3Q02, it suffered the impact of the
collective bargaining agreement, as well as of the bank workers' category single
bonus. Excluding these effects, the index would be 62.7% in 3Q02.
Personnel and Administrative Expenses
The breakdown of Unibanco's consolidated personnel expenses follows:
Personnel expenses increased by 10.2% and 1.4% when compared to 2Q02 and
3Q01, respectively. In 9M02, expenses posted a growth of R$34 million (2.8%)
relative to the same period last year.
At the Multiple Bank, the R$36 million (12.9%) increase in personnel
expenses in 3Q02 vs. 2Q02 was due to the impact of wage adjustments and of the
single bonus that resulted from the September 2002 collective bargaining
agreement. In 9M02, expenses fluctuated by only R$21 million (2.5%) vs. the same
period last year. When one takes into account the impact of the September 2001
wage adjustment and the organic growth program, this results clearly shows the
benefits of the bank's cost-cutting measures.
As for Unibanco's main subsidiaries and associated companies, 3Q02
personnel expenses rose by 4.1% vs. the previous quarter and, in 9M02 vs. the
same period last year, they increased by R$13 million (3.6%). This increase
resulted from the collective bargaining agreement and the measures taken to spur
the organic growth of the businesses. The increase was offset by cost
optimization, especially at Fininvest, where expenses already reflect the review
of operating procedures.
The following table shows the administrative expenses breakdown:
9M02 administrative expenses rose by R$172 million (9.9%) relative to the
previous year, whereas 3Q02's expenses grew by R$25 million or 3.9% compared to
3Q01.
The Multiple Bank's administrative expenses increased by R$16 million
(4.3%) in 3Q02 and by R$75 million (7.2%) in 9M02 vs. the same periods last
year. Cost-cutting measures taken helped to absorb the impact of the rate
increases in telephone services, power, postage, data transmission,
transportation and preparation of money that took place over the course of the
2S01 and 9M02, as well as of the volume increases that resulted from the organic
growth program ContAtiva.
The subsidiaries and associated companies posted a R$97 million (13.9%)
increase in 9M02 vs. 9M01, as a result of the several measures taken to expand
the volume of business of these companies, such as:
Efficiency Ratio
The 3Q02 efficiency ratio posted a slight increase compared to the previous
quarter, due mostly to the collective bargaining and the single bonus paid to
all bank workers. If one disregards this impact, the ratio would be 53.9%. In
9M02 the ratio posted an improvement, as per shown in the following chart:
Main Investments
Insurance and Private Pension Plans
The insurance and private pensions plans businesses posted earnings of
R$192 million in 9M02, with a 47.7% growth vs. the same period last year. The
companies' net income reached R$66 million in 3Q02, up 50% from 3Q01. ROAE for
the 9M02 was 21.3%.
Total premiums in 9M02 reached R$1.8 billion, 26.7% higher than 9M01.
According to industry data released in August 2002 by the Insurance regulatory
body (SUSEP) and the National Association of Private Pension Funds (ANAPP),
Unibanco's insurance companies ranked 4th, with a 6.5% market share in terms of
insurance and private pension plans.
Technical reserves under management reached R$2.5 billion at the end of the
period, up 22% over 9M01, and 6% Q-o-Q.
Insurance
The insurance companies, Unibanco AIG Seguros and AIG Brasil generated a
consolidated net income of R$192 million in 9M02, up 47.7% Y-o-Y. In 3Q02, net
income reached R$66 million, down 12% compared to 2Q02, caused by an increase in
the claim ratio, due to property damages caused by the atypical windstorms that
occurred during this period, as well as by the increase in claims in the power
and aviation sectors.
Net premiums written of R$1.4 billion in the 9M02, increased 34.8% Y-o-Y.
In 3Q02 they amounted to R$470 million, 30.9% above 3Q01 and 4.7% higher than
the previous quarter's figure. This performance resulted from the sales mix,
which focused on products with a higher margin, new product launches for the
brokerage channel, as well as from the opening of four new offices in the North
and South regions of Brazil. During this quarter, new life insurance sales
initiatives in the branch network were also introduced.
According to August 2002 figures made available by SUSEP, Unibanco AIG
Seguros e Previdencia ranked 1st in the fire insurance area, with R$230 million
in premiums and growth of 21.7% relative to the previous quarter and of 78.9%
Y-o-Y. The company also maintained its leadership of the following segments:
D&O (Directors & Officers - executive liability), extended warranty,
residential, international transportation, aeronautical and petrochemical risks.
The insurance companies administrative expenses totaled R$140 million in
9M02, down 4.8% if compared to 9M01. In 3Q02, the company posted R$46 million in
administrative expenses, maintaining the same level of the previous quarter.
These results are the consequence of ongoing cost and processes revisions. At
the end of 9M02, administrative expenses were 10% of premiums written, which
compared to 19% in 1999, reflecting a significant productivity and scale gain in
the business.
The combined ratio of the insurance companies in 9M02 stood at 99.3%, vs.
the market projected average of 103.2%, based on August 2002 figures from SUSEP.
The company maintained its top ranking relative to its main competitors as
regards this indicator. The same ratio, under a broader concept, which includes
the financial revenues from technical reserves (extended combined ratio) reached
93.5% in 9M02.
The insurance companies' technical reserves reached R$768 million at the
end of 3Q02, up 18.5% vs. 3Q01 and 6.7% over 2Q02.
The following graph shows the insurance premiums breakdown by distribution
channel:
Private Pension Plans
Unibanco AIG Previdencia earned R$24 million in net income in 9M02, up 50%
over 9M01. In 3Q02 net income reached R$7 million, down 15% from 2Q02, largely
due to the rise of the IGPM general price index over the last few months, which
increased the burden of liabilities tied to this index.
9M02 gross sales revenues reached R$434 million. If the 9M01 base is
adjusted by excluding the Bandeirantes' portfolio, growth for the 12-month
period is 16.6%. In 3Q02, sales revenues were R$138 million, up 4.1% when
compared to 2Q02.
Unibanco AIG Previdencia headed the period's ranking in terms of corporate
sales, with a volume of R$230 million, 14.3% ahead of the runner-up, according
to the official statistics released by ANAPP in August 2002. The company
services approximately 513,000 individual customers and 871 corporate clients.
In September 2002, technical reserves stood at R$1.7 billion, up 5.8% over
2Q02 and 23.6% in the last 12 months.
Credit Cards
In the credit card segment, Unibanco operates through Credibanco - Cartao
Unibanco, Fininvest, and its stake in the Credicard Group (Credicard, Redecard
and Orbitall).
Credibanco - Cartao Unibanco
Credibanco - Cartao Unibanco's total earnings stood at R$35 million in 3Q02
and R$88 million in 9M02. ROAE stood at 43.3% in 9M02. The company's credit card
operations posted a net income of R$59 million in 9M02 and R$23 million in 3Q02,
representing a growth of 29.2% vs. 3Q01. Other Credibanco operations generated
net income of R$29 million in 9M02 and R$12 million in 3Q02.
The credit card billings of Credibanco - Cartao Unibanco, measured in terms
of volume of purchases and drafts of its associates, reached R$1.2 billion in
3Q02, representing a growth of 17.4% vs. 3Q01 and accumulating R$3.3 billion in
9M02, 17.5% above 9M01. The average monthly financed volume reached R$368
million in 3Q02 with growth of 15% vs. 3Q01. In 9M02, the average financed
volume was R$365 million, up 22.1% when compared to 9M01. At the end of 3Q02,
the number of cards issued stood at 3,808 thousand, up 8.3% Y-o-Y and 2.5% when
compared to 2Q02.
Credit cards fee revenues reached R$46 million in 3Q02, 12.2% above the
2Q02 figure. In 9M02 the fee revenues amounted to R$129 million, up 18.3% when
compared to 9M01. This performance is due to portfolio increase and growth in
the volume of transactions.
Following are Credibanco - Cartao Unibanco main indicators:
Credicard Group
The Credicard group - formed by the companies Credicard, Redecard and
Orbitall - posted net income of R$127 million in 3Q02 and R$473 million in 9M02
of which R$54 million and R$189 million contributed respectively to the bank's
earnings. Billings of the Credicard group were R$8.1 billion in 3Q02 and R$22.8
billion in 9M02, 18.8% above 9M01. The group's good performance is related to
growth in the volume of transactions and to reductions in expenses with loan
losses in the period.
Fininvest
Fininvest contributed with R$28 million to Unibanco's bottom line in 9M02,
representing a 18% ROAE. The quarter result was affected both by the change in
the product mix and more prudent credit granting policies, resulting in a
reduction of assets. The restructuring and integration of activities with
Unibanco and Credibanco, responsible for the reduction of Fininvest's number of
employees from 5,000 to 3,000, also contributed to the company's result. The
company ended the period with R$1.1 billion in loans (excluding LuizaCred
operations), 3.5 million active customers and 108 stores in the country's main
markets.
Fininvest administrative expenses amounted to R$324 million in 9M02, with a
16.5% growth relative to 9M01, as a result of the expansion of the distribution
network with the opening of 29 new stores in 2S01 and 6 in 1S02 and the
establishment of new partnerships with stores and supermarkets. In 3Q02
administrative expenses totaled R$106 million, posting a 6.2% decrease vs. 2Q02,
benefiting from the restructuring and integration of activities with Unibanco
and Credibanco.
LuizaCred
LuizaCred consumer finance company, Fininvest's subsidiary resulting from
the Magazine Luiza partnership, reached a net income of R$3.2 million in 3Q02
and R$9 million in 9M02. ROAE stood at 52.9% in 9M02. LuizaCred ended September
2002 with R$168 million in loans and 900,000 active customers.
Investcred
Investcred Unibanco bank, Globex - Ponto Frio partnership, posted a net
income of R$9 million in 3Q02. During 9M02, net income reached R$17 million and
ROAE stood at 21.7%. At the end of the 3Q02, the loan portfolio totaled R$539
million and the number of active customers reached 2.9 million.
Banco Dibens
Banco Dibens, an association with the Verdi Group targeting the financing
of vehicles, posted a net income of R$7 million in 3Q02 and R$25 million in
9M02, the latter representing a ROAE of 21.2%. The bank ended the quarter with a
R$1.2 billion loan portfolio, 20% higher than September 2001.
Capitalization
Unibanco Capitalizacao posted sales of R$68 million in 3Q02, up 8% when
compared to 3Q01 and 5% vs. 2Q02. Administrative expenses totaled R$9 million
representing a reduction of 23% vs. 3Q01. Net income reached R$14 million in
3Q02, up 55.6% compared to 2Q02. In 9M02, net income was R$36 million resulting
in a ROAE of 37.1%.
Asset Management
Unibanco Asset Management - UAM ended September 2002 with R$19.3 billion in
assets under management, down 2.8% when compared to September 2001 and 3.7% vs.
June 2002. This decrease results from the changes in the mark-to-market rules
for fund portfolios, as determined by the Central Bank of Brazil on May 31,
2002. These changes caused a significant migration of funds to deposits, mainly
to time deposits. At Unibanco, total deposits grew by more than 4 times the
decrease in funds under management: deposits were up by R$ 3.2 billion, against
a drop of R$0.7 billion in assets under management. UAM's market share was
maintained at 4.6%.
Private pension funds under UAM's management reached the end of September
2002 with assets totaling R$4.2 billion. The company is the second largest
manager in this segment, with a 10.9% share, according to Anbid.
Investment funds managed by UAM stood out in the rankings published by
Exame magazine and Gazeta Mercantil newspaper. Exame's "Best 2002 Investment
Funds Guide" classified seven UAM funds as being 5-stars investments. According
to Exame, UAM was chosen the best manager in three out of six asset categories:
fixed income, equities and leveraged funds. UAM was also elected the 2nd best
manager of funds in the Retail segment. In the Gazeta Mercantil 2Q02 ranking,
released on July 26, two UAM funds were awarded the top place in their
respective categories.
Unibanco's full financial statements will be available on our website at
www.unibanco.com.br, by selecting Investor Relations - Financial Information -
Financial Statements, after they are filed with the CVM - Brazilian Securities
Exchange Commission.
This press release 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 on 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.
The nine months 2002 Conference Call will be held on November 13, at 07:00
a.m. (Eastern Time) in Portuguese, and at 09:00 a.m.(Eastern Time) in English.
See the webcast presentation through our site www.unibanco.com, Investor
Relations option - Presentation - Webcasting. For further information, please
contact us by sending an e-mail to investor.relations@unibanco.com.br, or by
phone 0xx11-3097-1313.
|
UNIBANCO HOLDINGS S.A.
| ||
| By: |
/S/
Israel Vainboim
| |
|
Israel Vainboim
Director and Chief Executive Officer
| ||
| By: |
/S/
Mauro Agonilha
| |
|
Mauro Agonilha
Director and Chief Executive Officer
| ||
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
| This ‘6-K’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| For Period End: | 12/31/02 | 20-F, 20-F/A, 6-K | ||
| Filed on: | 11/18/02 | 6-K | ||
| 11/12/02 | ||||
| 9/30/02 | 6-K | |||
| 6/30/02 | ||||
| 5/31/02 | ||||
| List all Filings | ||||