HispanicBusiness

SAO PAULO, Brazil, Aug. 10 /PRNewswire-FirstCall/ -- In 1H06, Unibanco's net income was R$1,068 million, up 25.1% from 1H05. Unibanco posted a 2Q06 net income of R$548 million, 21.0% higher than in 2Q05 and a 5.4% increase compared to 1Q06. Operating income for the quarter reached R$869 million, an increase of 4.2% and 26.9% in comparison with 1Q06 and 2Q05, respectively. The annualized return on average equity reached 24.7% in 2Q06.

The efficiency ratio reached 47.5%, a 530 b.p. decrease from 2Q05, confirming the trend of continuous improvement achieved during recent years. In 1H06, the 540 b.p. improvement in comparison to 1H05 is mainly explained by a 25.4% growth in revenues and supported by strict budgetary discipline.

Stockholders' equity reached R$9,816 million in June 2006, up 13.3% from June 2005.

Unibanco's consolidated assets totaled R$98,217 million at the end of June, 2006, up 18.5% from June, 2005.

The loan portfolio increased 5.7% from March, 2006, higher than the 5.2% growth posted by the Brazilian National Financial System (Source: Central Bank of Brazil). Since June, 2005, credit operations grew 19.3%, despite a 7.9% US currency devaluation against the Brazilian Real.

In the individuals credit operations, the highlight was the evolution of the credit card portfolio, which posted a 42.9% growth over the past 12 months.

Total deposits and assets under management (AUM) stood at R$79,858 million in June 2006, R$41,081 million of which arose from assets under management.

The continuous improvement in the deposit mix is explained by a 19.6% and 7.7% increase in core deposits when compared to June 2005 and March 2006, respectively. The highlight was the 65.7% growth in SuperPoupe over the past 12 months.

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 11th. For more information and to download the complete documents, please access Unibanco's Investor Relations website.

Investor Relations

http://www.ir.unibanco.com/ Unibanco

Web site: http://www.unibanco.com.br/http://www.ir.unibanco.com/