Time Line

 

A federal charter is granted on September 27, 1924, authorizing a small-town prominent merchant to open a banking department. That was Casa Moreira Salles of Poços de Caldas, in Minas Gerais, founded by João Moreira Salles in 1918. This is how Unibanco, now the third-larger private bank in Brazil, took the initial steps into what was to become a remarkable journey.

Growth soon leads the Casa Moreira Salles banking department to become an independent financial institution, in 1931. The new Casa Bancária Moreira Salles becomes, for a decade, a well-known financier of regional enterprises, helping develop the community.

 

As business prospered, in July 1940 Banco Moreira Salles is formed from the merger of Casa Bancária Moreira Salles, Banco Machadense and Casa Bancária de Botelhos. Soon Banco Moreira Salles grows beyond the boundaries of a regional bank in southern Minas Gerais.

 

A branch is opened in Rio de Janeiro in 1941; followed by a São Paulo branch in 1942. As early as 1945, the bank operates from 34 locations, between headquarters, branches and banking posts. In another five years, this number rises to 63. Banco Moreira Salles overcomes geographical hurdles, following the extraordinary process of modernization, urbanization and industrialization Brazil was experiencing. In 1964, the bank had 191 branches.

 

In 1966, Banco Moreira Salles joins up with Deltec, Light & Power Co. and the Azevedo Antunes Group to create Banco de Investimento do Brasil (BIB). The constitution of BIB came from the merger of two companies with a tradition in Brazil's stock market: Deltec and Ibec (International Basic Economy Corporation, from the Rockefeller conglomerate). It is then that the Moreira Salles Group starts to distinguish itself by seeking alliances with existing excellence and experience, drawing in talent. Names such as Roberto Teixeira da Costa, Tomas Zinner, Gabriel Jorge Ferreira, Roberto Konder Borhnausen and Israel Vainboim joined the group at the inception of BIB. They would preside over Unibanco's trail of accomplishment in the following years.

 

Asked to define the formula to his success as an entrepreneur, Walther Moreira Salles once quipped: "There is only one secret. Know how to choose people". There is little doubt that the human factor has indeed constituted one of the hallmarks of success for Grupo Moreira Salles and Unibanco. Not to be overlooked were the multiple and durable alliances, many of them with foreign partners. They would contribute, from the start, to a global business outlook and a constant presence in the international market. Some of these partners came in the ensuing years, through BIB: Commerzbank AG in 1968, Crédit Suisse in 1969, Dai-Ichi Kangyo Bank in 1972, Philadelphia International Investment Corporation, Harris Bankcorp and White Weld in 1973. International alliances would be one of the group's major distinguishing qualities.

 

In May 1967 the bank merges with Banco Agrícola Mercantil (Agrimer), and the new name emerges: União de Bancos Brasileiros, S.A. (UBB). Born with 8,570 employees, 333 branches (the largest bank branch network in the country at the time) and over 1 million current-accounts spread over nine states in addition to the capital Brasília. Two years later it would rank second among Brazilian private banks.

 

The second major addition would follow in 1970, with the incorporation of Banco Predial do Estado do Rio de Janeiro, widenning the institutional profile to that of a popular retail bank. The merger of BIB's financial sophistication and this new culture turned out to be smooth and seamless, and permanently transformed the destiny of União de Bancos Brasileiros.

 

Not long after that, in 1972, UBB takes control of BIB, acquiring the stakes of Deltec (20%) and Idec (19%), creating conditions to establish a consolidated executive board at the helm of a cohesive, integrated financial group. Roberto Konder Bornhausen is named president of the bank in 1973.

 

To epitomize this integration and facilitate the overview of all the corporations as a group, simplifying communication with the public, all 15 financial institutions gain a single name in 1975: Unibanco. The name that would become analogous with tradition, service excellence, client commitment and transparency over the past 30 years is introduced to the market.

 

Ambassador Walther Moreira Salles presides, in 1976, over the constitution of the Board of Directors, and at the same time Roberto Konder Bornhausen takes over as Chief Executive Officer, position he would occupy until 1988, when he became vice-chairman of the board. Between 1988 and 1992, the CEO position is occupied by Israel Vainboim, ex-BIB official. In 1992, Tomas Zinner, also formerly with BIB, assumes as CEO stepping down in 1998.

 

In 1983, another alliance, changes the insurance industry in Brazil: Unibanco Seguradora (12th in the ranking at the time), merges with industry leader Sul América. Sul América Unibanco Seguradora is born counting on Unibanco's branch network to consolidate its leadership.

 

That same year, the first three Banco 24 Hours service centers are opened to the public in Curitiba, state of Paraná. Through Banco 24 Horas, clients could make deposits, withdrawals and check their accounts around the clock. Unibanco 24 Hours was the pioneer in 24/7 retail banking in Brazil.

 

Eight years later, Unibanco launches Banco 30 Horas, another unquestionable hallmark of success. The new service centers brought Unibanco to the clients 24 hours by phone in addition to the six hours of daily service at the branches. Today the service is available through many more channels, such as the Internet, mobile phone and fax. More value for the clients.

 

Also in 1991 Ambassador Walther Moreira Salles retires as Chairman of the Board, after a 60-year career, to become Honorary Chairman and take over the conglomerate's cultural endeavors. In his farewell speech, the Ambassador summed up Unibanco's working ethics: "We are people serving people. As impressive as the technology available to a bank can appear to be, in the end, each electronic exchange will still bear the plain and inevitable circumstance, of people serving people."

 

Instituto Moreira Salles (IMS) is launched in 1991, with its agenda set on people and the country's social development. Ambassador Moreira Salles would be the first President of the Instituto, promoting cultural programming for the public at large. A year later IMS opens Casa de Cultura de Poços de Caldas, in the city where Casa Moreira Salles was founded. It was a pause to revisit the roots, but also the start of a remarkable decade of growth, which would propel Unibanco to the current position, with a client-base of more than 18 million.

 

A new Data Processing Center goes online in 1993, increasing by 40% the bank's operation processing capacity. This upgrade provided the bank with an ever-evolving service quality, foreseeing what later proved to be a substantial growth in operations.

 

A major factor in this new growth spurt was the acquisition of part of the assets of Banco Nacional S.A., in 1995, an unprecedented operation in Brazil's market. It opened to Unibanco the doors to another major step forward, increasing the number of branches and service centers to 1,446, with 2.1 million clients and 1.4 million credit cards. In terms of scale, this was a giant leap Unibanco, one more time.

 

The next steps came soon. In 1996, Unibanco acquires a 50% stake in Fininvest, a financing firm with vast expertise in consumer credit, affiliated to the Icatu Group. In 1997, Unibanco is listed at the NYSE, the first Brazilian Bank to have its stock trade in Wall Street and seals a partnership with AIG, American International Group.

 

The new scale brought new organizational needs. To optimize the chain of command and speed up decision-making, in 1998 Unibanco revamps its organizational chart, supporting it on four pillars: Retail Bank, Wholesale Bank, Insurance and Asset Management. The following revision in operating and managerial processes trimmed costs and took Unibanco to a new level of efficiency, poised to thrive in face of the growing competitiveness in domestic and international financial markets at the eve of a new millennium.

 

New historic records would come shortly, in 2000. Unibanco closed the year with 1,623 branches and client service centers, 25% earnings growth and a 50% jump in client-base. This remarkable result was related to organic growth, though also partly the outcome of the acquisitions of the remaining 50% of Fininvest, Credibanco and Banco Bandeirantes. With the acquisition of Banco Bandeirantes, Unibanco also brought in a new foreign partner: Caixa Geral de Depósitos.

 

The largest financial group in Portugal, former controlling partner of Banco Bandeirantes, now held 12.3% of Unibanco's total equity and joined Commerzbank AG and Mizuho Financial Group in the block of strategic foreign partners.

 

The last decade of the 20th Century brought with it a powerful wave of consolidation to Brazil's financial market. For Unibanco, the strategy shifts to organic growth, gains in scale and client-base optimization.

 

At the end of 2000, the Retail Bank launches the ContAtiva program, with aggressive new account acquisition targets for the next three years. The target was reached almost a year ahead of schedule.

 

The new millennium dawns to new joint-ventures: with appliances and electronics chain Globex/Ponto Frio, through its banking arm InvestCred (now PontoCred); with department store chain Magazine Luiza, forming LuizaCred. Unibanco has a 50% stake in consumer credit with both store chains, in addition to managing operations. Fininvest is now fully owned by Unibanco. Together, these deals pushed Unibanco to a prominent position in terms of cross-sales to a market with a low bankability index.

 

In 2003 Unibanco acquires Creditec, further consolidating its leadership in the consumer credit segment. Pedro Sampaio Malan, formerly President of the Central Bank of Brazil and Minister of Finance, is elected vice-president of the Board of Directors. Pedro Bodin, ex-director of monetary policy at the Central Bank and one of the main executive and partner of the Icatu Group, joins Unibanco's Board of Directors.

 

This is also the year in which Unibanco undergoes relevant capital management-related changes. An exchange offer extends to all holders of preferred stock the right to transform their shares into Units (stock certificates of deposit representing one preferred share of Unibanco Holdings and one preferred share of Unibanco). A global offer from two foreign major shareholders allows for a significant increase in Unibanco stock liquidity in the domestic market: Mizuho Bank tenders its entire stake and Commerzbank AG sells part of its stake in Unibanco.

 

When the 80th anniversary year arrives, there is even more to celebrate. Right at the start of 2004, Unibanco acquires Hipercard, the private label credit card operation and main payment option for store chain Bompreço, and accepted by more than 70,000 retailers in northeastern Brazil. It is followed by the acquisition of Banca Nazionale del Lavoro's Brazilian operations and a joint-venture with another large supermarket chain, Sonae, to form a consumer finance firm.

 

Changes also occur at the corporate level. Armínio Fraga, former President of the Central Bank of Brazil joins the board and Pedro Moreira Salles announces sweeping structural changes. He would step down as Chairman of the Board of Directors to become Chief Executive Officer, to be replaced at the board by Pedro Sampaio Malan, who had been serving as Vice-Chairman for about a year. A new organizational chart is set into place, seeking more synergy between the various businesses, and the four-pillar structure is retired. Joaquim Francisco de Castro Neto, Fernando Sotelino, César Sizenando and Adalberto Schettert, among others, leave their executive functions after years of diligent service. Castro Neto becomes a board member.

 

It is a time to review and renew. Renewal consistently punctuated by a pioneering spirit. Unibanco adopts the Equator Principles, a set of social and environmental requirements used to evaluate and approve loans to infrastructure projects. Subsequently, Unibanco sells its 33% stake in Credicard to the two remaining original shareholders, after 33 years of joint accomplishments.