Unibanco Brasileiros S.A. (UBB)

2008 Third Quarter Results

Unibanco announces to the market that net income of the quarter ended on September, 30, 2008 reached R$704 million, totaling R$2.2 billion in the first nine months of 2008. Stockholders’ equity reached R$12.9 billion and the annualized return on average equity was 24.4% .

Recurring net income posted an increase of 5.6% and 16.8% in comparison to the third quarter of 2007 and nine months of 2007, respectively.

Total assets amounted to R$178.5 billion, representing an increase of 33.3% in comparison to September 30, 2007.

The loan portfolio reached R$74.3 billion, up 32.9% from September 30, 2007, 20.9% in 9 months of 2008, and 7.7% from 2Q08.

The asset quality of loan portfolio improved, with the total allowance for loan losses as a percentage of the portfolio classified as D to H reaching 102.6% on September, 2008 compared to 101.7% in June, 2008 and 98.9% in September, 2007.

The non performing loans coverage reached 118.1% in September, 2008 in comparison to 118.4% in June, 2008 and 118.0% in September, 2007.

The non performing loans as a percentage of total loan portfolio was 3.9% in September, 2008, versus 4.0% in June, 2008 and 4.1% in September, 2007.

Total funding through deposits plus debentures reached R$73.2 billion, posting an increase of 8.0% compared to the second quarter of 2008.

The annualized financial margin before provision for loan losses was 6.6% in 3Q08, impacted by the negative result from Treasury financial intermediation in September 2008 in the amount of R$17 million due to the significant reduction of our outstanding proprietary positions subject to market risks in the last month of the quarter. In 3Q08, the Treasury contribution to the financial margin was positive in R$97 million in comparison to R$154 million in 3Q07.

Results

•  Results • Highlights

In 2Q05, Unibanco’s net income increased by 48.5% from 2Q04 and 13.0% from 1Q05, reaching R$453 million. In 1H05 net income reached R$854 million, an increase of 47.0% Y-o-Y. Operating income was R$684 million, up 70.6% from 2Q04. The graph below shows the evolution of the return on average equity:

First half results were, in part, a consequence of Unibanco’s restructuring process, started in June 2004, when structural changes led the bank to a new level of results. The highlights among the changes are:

• Consolidation of Unibanco as a universal bank, operating in the Retail, Wholesale, Wealth Management, Insurance and Private Pension Plans segments, leading to the improved use of cross-selling;
  
  
• Segmentation strategy focusing on the segments with higher margins and higher growth rates, while maintaining the leadership in the consumer finance segment.

Net income growth in 2Q05 over 1Q05 was largely due to:

• 6.0% credit portfolio growth, relative to an expansion of 3.7% in the financial system credit operations (source: Brazilian Central Bank);
  
  
• Credit quality improvement: non-accrual portfolio coverage ratio rose to 125.7% from 118.8%. The non-accrual portfolio represented 3.9% of the credit portfolio, improving from 4.3%;
  
  
• 9.5% growth in the individuals credit portfolio, positively impacted by consumer finance portfolio and commercial bank finance;
  
  
• 3.9% growth in the corporate credit portfolio. The portfolio of small and medium sized companies posted a 7.2% increase, mainly due to account receivables financing. Cross-sell activities were implemented this quarter, leading to acquisition of payroll accounts and to the offering of banking services to retailers associated with our consumer finance and credit card companies.
  
  
• 3.2% increase in the level of core deposits, while core deposits in the Brazilian financial system decreased by 0.5% during the quarter;
  
  
• Improvement in the efficiency ratio, from 53.7% in the first quarter to 52.8% in the second, in line with the restructuring process started in June, 2004.

The seek of synergies among the business units, through a cross-selling program, was further developed. Initiatives from all business units were also reflected in the results. In the first half of 2005, focus on the retail segment was intensified through the launch of an expansion program for Hipercard and Fininvest. In wholesale, we highlight the third position in the ranking as financial agent for BNDES, the National Economic and Social Development bank, and second position in the BNDES-exim category. Insurance and private pension plans businesses maintained the leadership in the property risks, aviation, D&O (Directors & Officers), international transportation, and extended warranty segments, according to the latest industry data released by SUSEP (as of May 2005). In the industry Global Ranking, published by ANBID, Private Bank’s asset under management hold the second position, with 10.2% market share in June, 2005.

4

•  Results • Performance Indicators

Stockholders’ equity, in June, 2005, amounted to R$8,660 million, up 12.4% from June 2004. Annualized return on average equity (ROAE) was 23.0% and 21.4% in the quarter and in 1H05, respectively. The following table shows performance indicators:

Financial margin before provision for loan losses, adjusted by the net impact of investments abroad, reached R$3,763 million in 1H05, an increase of 28.6% when compared with 1H04, mainly due to credit operations increase and change in its composition, to core deposits growth, and to the high level of the basic interest rate (Selic) during the period. Financial margin after provision for loan losses reached R$1,529 million in the quarter, presenting a growth of 2.7% Q-o-Q, influenced mostly by an additional provision made in 2Q05.

The annualized financial margin, before provision for loan losses, increased to 10.2% in 2Q05, from 8.2% in 2Q04 (9.5% in 1Q05).

5

Results

Net income in 1Q05 stood at R$401 million, up 45.3% Y-o-Y and 6.9% above the previous quarter. In 1Q05, Unibanco’s operating income reached R$711 million, 51.0% and 33.4% higher when compared with the same period of last year and the last quarter, respectively.

Financial margin before provision for loan losses, adjusted by the net impact of investments abroad, reached R$1,744 million in 1Q05, an increase of 17.1% when compared with 1Q04. Financial margin after provision stood at R$1,434 million in the quarter, presenting a growth of 21.9% Y-o-Y and 7.2% Q-o-Q.

Results

Net income in 1Q05 stood at R$401 million, up 45.3% Y-o-Y and 6.9% above the previous quarter. In 1Q05, Unibanco’s operating income reached R$711 million, 51.0% and 33.4% higher when compared with the same period of last year and the last quarter, respectively.

Financial margin before provision for loan losses, adjusted by the net impact of investments abroad, reached R$1,744 million in 1Q05, an increase of 17.1% when compared with 1Q04. Financial margin after provision stood at R$1,434 million in the quarter, presenting a growth of 21.9% Y-o-Y and 7.2% Q-o-Q.

Annualized financial margin, after provision for loan losses, increased from 7.0% in 4Q04 to 7.6% in 1Q05.

Provision for loan losses over the financial margin improved from 23.1% in 4Q04 to 17.8% in 1Q05, as shown in the graph below:

The following chart demonstrates net revenue bt business type:

Table of Contents

Results

In the fourth quarter of 2004, Unibanco provisioned R$151 million in interest on capital stock, gross of taxes.

The profit from financial intermediation, before provisions for loan losses, was R$2,014 million in the fourth quarter of 2004.

Results

Net income in the third quarter of 2004 stood at R$327 million, up 7.2% when compared to previous quarter. In the nine months of 2004, Unibanco reached a net income of R$908 million, up 19.3% when compared to the same period of last year. Operating income for the third quarter of 2004 stood at R$556 million, a 38.7% growth compared to the second quarter of 2004.

Investments abroad totaled R$2,0 billion and R$1,9 billion at the end of September 2004 and June 2004, respectively. During the course of the nine months of 2004, these investments abroad were reduced by dividend payment. The tables below show the variation of investments abroad and the exchange rate fluctuation impact on these investments:

The exchange rate fluctuation on investments abroad is not deductible and not taxable. This impact was offset by a hedge against fiscal effects, which had a positive impact in the financial margin.