Unibanco Announces Consolidated Financial Results for 2Q08

Thu. August 07, 2008; Posted: 07:46 AM

Unibanco's net income reached R$756 million in 2Q08, up 18.5% when compared to 2Q07. The highlight in the quarter was the operating income of R$1,358 million, up 19.9% when compared to 1Q08.

Stockholders' equity was R$12.7 billion, and annualized return on average equity (ROAE) reached 26.6% in 2Q08.

Unibanco's total assets reached R$172 billion, up 32.7% when compared to June 30, 2007. Annualized return on average assets (ROAA) was 1.9% in 2Q08.

The loan portfolio reached R$68,991 million, up 4.3% in the quarter and 33.6% in 12 months. Retail portfolio increased 39.2% in 12 months. The highlights in this period were the 86.9% growth in Auto loans, 48.9% in Small and Medium Companies portfolio, 35.9% in Credit Cards and 33.9% in Payroll loans (own origination). Wholesale portfolio grew 25.5% in 12 months, as a result of an increasing demand from large companies for funds in the Brazilian market, mainly due to the lower liquidity in the international market.

The balance of Allowance for Loan Losses reached R$3,268 million in June 2008, representing 4.7% of the loan portfolio, from which R$985 million are based on percentages above those required by the regulatory authority.

Total personnel and administrative expenses posted a 3.2% increase in the quarter. In 1H08, these expenses posted a 7.1% increase when compared to 1H07, largely due to growth in volume of business, increase of employees and wage increases. It is worth mentioning the increase of only 4.9% in other administrative expenses under Unibanco's direct management in the same period, below the inflation rate of 6.05%, due to the efficiency gains and cost controls, despite the expansion of business activities.

As a consequence of operational efficiency management, the efficiency ratio reached 42.0% in 2Q08 vis-a-vis 47.0% verified in 2Q07, a 500 b.p. improvement. In the same period, the cost to average assets ratio also favorably decreased from 4.6% to 3.7%.

Unibanco remains satisfied and confident with the ongoing results and the continuous improvement of its performance.

The earnings conference call will take place tomorrow, August 8. For additional information and to download the complete documents, please access Unibanco's Investor Relations website.

SOURCE Unibanco

http://www.unibanco.com.br

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