Unibanco – União de Bancos Brasileiros S.A.



       Individual and Consolidated
      Quarterly Information for the
    ...
Unibanco - União de Bancos Brasileiros S.A.


    Report of Independent Accountants
    on the Limited Review


    To the...
Unibanco - União de Bancos Brasileiros S.A.


4   Our limited reviews were conducted for the purpose of issuing a report o...
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SERVIÇO PÚBLICO FEDERAL
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CVM CODE                UNIBANCO...
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CVM CODE              UNIBANCO -...
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Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
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Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
Unibanco – União de Bancos Brasileiros S.A. Individual and ...
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Unibanco – União de Bancos Brasileiros S.A. Individual and ...

  1. 1. Unibanco – União de Bancos Brasileiros S.A. Individual and Consolidated Quarterly Information for the Quarter Ended September 30, 2007 and Auditors’ Independent Report
  2. 2. Unibanco - União de Bancos Brasileiros S.A. Report of Independent Accountants on the Limited Review To the Board of Directors and Stockholders Unibanco - União de Bancos Brasileiros S.A. 1 We have carried out limited reviews of the accounting information included in the Quarterly Information (ITR) of Unibanco - União de Bancos Brasileiros S.A. (Unibanco) and Unibanco - União de Bancos Brasileiros S.A. and subsidiary companies (Unibanco Consolidated) for the quarters and nine-month periods ended September 30, 2007 and 2006. This information is the responsibility of the Company’s management. 2 Our reviews were conducted in accordance with the standards established by the Institute of Independent Auditors of Brazil (IBRACON) and the Federal Accountancy Council (CFC), and mainly comprised: (a) inquiries of and discussions with officials responsible for the accounting, financial and operating areas of Unibanco and subsidiary companies with regard to the main criteria adopted for the preparation of the quarterly information and (b) a review of the significant information and of the subsequent events which have, or could have, significant effects on the financial position and operations of Unibanco and subsidiary companies. 3 Based on our limited reviews, we are not aware of any material modifications which should be made to the aforementioned Quarterly Information for it to be in conformity with the accounting practices adopted in Brazil applicable to the preparation of the Quarterly Information, consistent with the standards established by the Brazilian Securities Commission (CVM). 1
  3. 3. Unibanco - União de Bancos Brasileiros S.A. 4 Our limited reviews were conducted for the purpose of issuing a report on the accounting information included in the ITR mentioned in the first paragraph, taken as whole. The statements of cash flows, which are presented in Note 23 to provide supplementary information with respect to Unibanco - União de Bancos Brasileiros S.A. and Unibanco Consolidated, are not required as an integral part of these quarterly financial statements. The statements of cash flows have been subjected to the limited review procedures described in paragraph 2, and, based on our limited reviews, nothing has come to our attention that causes us to believe that the statements of cash flows are not presented fairly, in all material respects, in relation to the quarterly financial statements taken as a whole. 5 The limited review of the Quarterly Information (ITR) for the six-month period ended June 30, 2007 was conducted in connection witch the audit of the financial statements of Unibanco and Unibanco Consolidated, on which we issued an unqualifield opinion dated August 8, 2007. São Paulo, november 7, 2007 PricewaterhouseCoopers Auditores Independentes CRC 2SP000160/O-5 Paulo Sergio Miron Contador CRC 1SP173647/O-5 2
  4. 4. (Convenience translation into English from the original previously issued in Portuguese) SERVIÇO PÚBLICO FEDERAL CVM - COMISSÃO DE VALORES MOBILIÁRIOS QUARTERLY INFORMATION – ITR DATE – SEPTEMBER 30, 2007 Corporate Legislation FINANCIAL INSTITUTION THE FILING WITH THE CVM DOES NOT IMPLY ANY EVALUATION OF THE COMPANY. THE ACCURACY OF THE INFORMATION PRESENTED IS THE RESPONSIBILITY OF THE MANAGEMENT OF THE COMPANY. IDENTIFICATION 1 - CVM CODE 2 - CORPORATE NAME 3 - CNPJ 01158-4 UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. 33,700,394/0001-40 4 – NIRE 35,300,102,771 HEAD OFFICE ADDRESS 1 - COMPLETE ADDRESS 2 - DISTRICT Avenida Eusébio Matoso, 891 Pinheiros 3 - POST CODE 4 – TOWN 5 - STATE 05423-901 São Paulo SP 6 - AREA CODE 7 - PHONE 8 – PHONE 9 - PHONE 10 - TELEX 11 55 (11) 3584-1980 - - - 11 - AREA CODE 12 - FAX 13 – FAX 14 - FAX 11 55 (11) 3584-1585 - - - 15 - E-MAIL investor.relation@unibanco.com.br DIRECTOR OF INVESTOR RELATIONS (Mailing address) 1 – NAME Geraldo Travaglia Filho 2 - COMPLETE ADDRESS 3 - DISTRICT Av. Eusébio Matoso, 891 – 4th Floor Pinheiros 4 - POST CODE 5 - TOWN 6 - STATE 05423-901 São Paulo SP 7 - AREA CODE 8 – PHONE 9 – PHONE 10 - PHONE 11 - TELEX 11 55 (11) 3584-1980 - - - 12 - AREA CODE 13 – FAX 14 – FAX 15 - FAX 11 55 (11) 3584-1585 - - - 16 - E-MAIL investor.relation@unibanco.com.br ITR REFERENCE / AUDITOR FISCAL YEAR IN COURSE CURRENT QUARTER PRIOR QUARTER 1 - START 2 - END 3 – NUMBER 4 - START 5 - END 6 - NUMBER 7 - START 8 - END Jan 1, 2007 Dec 31, 2007 3 July 1, 2007 Sept 30, 2007 2 April 1, 2007 June 30, 2007 9 - NAME/CORPORATE NAME OF THE AUDITOR 10 - CVM CODE Pricewaterhousecoopers Auditores Independentes 00287-9 11 - Responsible Partner Name 12 – Responsible Partner CPF Paulo Sérgio Miron 076,444,278-30 3
  5. 5. (Convenience translation into English from the original previously issued in Portuguese) SERVIÇO PÚBLICO FEDERAL CVM - COMISSÃO DE VALORES MOBILIÁRIOS QUARTERLY INFORMATION – ITR DATE – SEPTEMBER 30, 2007 Corporate Legislation FINANCIAL INSTITUTION IDENTIFICATION 1 - CVM CODE 2 - CORPORATE NAME 3 – CNPJ 01158-4 UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. 33,700,394/0001-40 CAPITAL BREAKDOWN NUMBER OF SHARES 1 - CURRENT QUARTER 2 - PRIOR QUARTER 3 - SAME QUARTER PRIOR YEAR (in thousands) September 30, 2007 June 30, 2007 September 30, 2006 Paid-Up Capital 1 – Common 1,511,316,336 1,511,316,336 1,511,316,336 2 – Preferred 1,296,439,472 1,296,439,472 1,296,439,472 3 – Total 2,807,755,808 2,807,755,808 2,807,755,808 In Treasury Stock 4 – Common - - - 5 – Preferred 7,397,316 4,089,060 8,444,360 6 – Total 7,397,316 4,089,060 8,444,360 COMPANY CHARACTERISTICS 1 - TYPE OF COMPANY Financial Institution 2 - TYPE OF SITUATION Operating 3 - NATURE OF CONTROLLING SHAREHOLDER Private National 4 - ACTIVITY CODE 124 – Commercial Bank 5 - PRINCIPAL ACTIVITY Banking – Multiple Service Bank 6 - TYPE OF CONSOLIDATED Total 7 - TYPE OF REPORT OF INDEPENDENT ACCOUNTANTS Without Exceptions COMPANIES EXCLUDED FROM CONSOLIDATED STATEMENTS 1 - ITEM 2 – CNPJ 3 – CORPORATE NAME REMUNERATION APPROVED AND/OR PAID DURING AND SUBSEQUENT TO THE QUARTER 1 - ITEM 2 – EVENT 3 - APPROVAL 4 - REMUNERATION 5 - BEGINNING OF 6 - TYPE OF SHARE 7 - REMUNERATION DATE PAYMENT PER SHARE 01 RCA 07/20/2007 Interest on own capital 07/31/2007 ON 0.0388235000 02 RCA 07/20/2007 Interest on own capital 07/31/2007 PN 0.0427059000 03 RCA 07/20/2007 Interest on own capital 07/31/2007 ON 0.0839185000 04 RCA 07/20/2007 Interest on own capital 07/31/2007 PN 0.0923104000 05 RCA 09/27/2007 Interest on own capital 10/31/2007 ON 0.0388235000 06 RCA 09/27/2007 Interest on own capital 10/31/2007 PN 0.0427059000 07 RCA 09/27/2007 Interest on own capital 10/31/2007 ON 0.0271650000 08 RCA 09/27/2007 Interest on own capital 10/31/2007 PN 0.0298815000 4
  6. 6. (Convenience translation into English from the original previously issued in Portuguese) SERVIÇO PÚBLICO FEDERAL CVM - COMISSÃO DE VALORES MOBILIÁRIOS QUARTERLY INFORMATION – ITR DATE – SEPTEMBER 30, 2007 Corporate Legislation FINANCIAL INSTITUTION IDENTIFICATION 1 - CVM CODE 2 - CORPORATE NAME 3 – CNPJ 01158-4 UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. 33,700,394/0001-40 SUBSCRIBED CAPITAL AND CHANGES DURING THE CURRENT FISCAL YEAR 1 - ITEM 2 – DATE OF 3 – CAPITAL 4 - CHANGE 5 - CHANGE 7 - NUMBER OF 8 - ISSUE PRICE CHANGES (in thousands of (in thousands SOURCE SHARES ISSUED Reais) of Reais) (in thousand) (in Reais) DIRECTOR OF INVESTOR RELATIONS 1 - DATE 2 - SIGNATURE November 8, 2007 5
  7. 7. (Convenience translation into English from the original previously issued in Portuguese) UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. DATE - SEPTEMBER 30, 2007 QUARTERLY INFORMATION INDIVIDUAL BALANCE SHEET Corporate Legislation Amounts expressed in thousands of Reais ASSETS September 30, 2007 June 30, 2007 CURRENT ASSETS 82,320,720 82,807,864 CASH AND DUE FROM BANKS 1,535,802 1,451,457 SHORT-TERM INTERBANK INVESTMENTS (Note 4) 37,551,690 33,832,149 Securities purchased under resale agreements 25,936,261 22,299,835 Interbank deposits 11,534,880 11,439,683 Foreign currency investments 80,549 92,631 MARKETABLE SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (Note 5) 6,853,605 12,107,313 Own portfolio 4,133,111 6,338,304 Subject to repurchase commitments 370,924 3,526,266 Pledged with Brazilian Central Bank 729,893 1,011,754 Pledged under guarantees rendered 283,322 344,882 Derivative financial instruments (Note 5(f)) 1,336,355 886,107 INTERBANK ACCOUNTS 6,369,774 5,546,772 Payments and receipts pending settlement 641,226 594,211 Compulsory deposits: - Brazilian Central Bank 5,690,747 4,923,848 - National Housing System - SFH 2,266 1,272 Correspondent banks 35,535 27,441 INTERDEPARTMENTAL ACCOUNTS 58,338 76,543 Third-party funds in transit 191 212 Internal transfers of funds 58,147 76,331 LENDING OPERATIONS 21,290,548 19,700,489 Lending operations: (Note 6(a)) - Public sector 284,883 203,993 - Private sector 21,862,742 20,386,092 Allowance for losses on lending (Note 6(d)) (857,077) (889,596) LEASING OPERATIONS 241,818 48,078 Leasing operations: (Note 6(a)) - Private sector 243,490 48,384 Allowance for losses on leasing (Note 6(d)) (1,672) (306) OTHER CREDITS 8,005,316 9,647,173 Foreign exchange portfolio (Note 7(a)) 5,025,708 6,799,271 Income receivable 520,471 511,438 Negotiation and intermediation of securities 30,770 4,508 Deferred tax (Note 19(a)) 709,215 711,978 Prepaid taxes 237,964 332,859 Sundry (Note 8) 1,540,885 1,329,846 Allowance for losses on other credits (Note 6(d)) (59,697) (42,727) OTHER ASSETS 413,829 397,890 Other assets 168,056 165,148 Allowance for losses on other assets (31,766) (28,802) Prepaid expenses (Note 9) 277,539 261,544 6
  8. 8. (Convenience translation into English from the original previously issued in Portuguese) UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. DATE - SEPTEMBER 30, 2007 QUARTERLY INFORMATION INDIVIDUAL BALANCE SHEET Corporate Legislation Amounts expressed in thousands of Reais ASSETS September 30, 2007 June 30, 2007 LONG-TERM ASSETS 42,221,165 39,138,509 INTERBANK INVESTMENTS (Note 4) 1,353,001 1,215,520 Interbank deposits 1,353,001 1,215,520 MARKETABLE SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (Note 5) 22,240,155 20,340,323 Own portfolio 2,786,225 2,444,889 Subject to repurchase commitments 15,831,226 15,832,402 Pledged with Brazilian Central Bank 1,390,456 - Pledged under guarantees rendered 1,604,199 1,580,840 Derivative financial instruments (5 Note(f)) 628,049 482,192 INTERBANK ACCOUNTS 55,314 54,527 Compulsory deposits: - National Housing System - SFH 55,314 54,527 LENDING OPERATIONS 14,687,903 13,772,165 Lending operations: (Note 6(a)) - Public sector 672,855 740,341 - Private sector 14,505,804 13,540,023 Allowance for losses on lending (Note 6(d)) (490,756) (508,199) LEASING OPERATIONS 321,606 60,627 Leasing operations: (Note 6(a)) - Private sector 323,829 61,014 Allowance for losses on leasing (Note 6(d)) (2,223) (387) OTHER CREDITS 3,038,625 3,233,899 Receivables on guarantees honored 37,845 37,772 Foreign exchange portfolio (Note 7(a)) 502,774 539,282 Income receivable 28,343 30,131 Deferred tax (Note 19(a)) 1,161,082 1,235,339 Prepaid taxes 20,254 20,062 Sundry (Note 8) 1,294,808 1,378,331 Allowance for losses on other credits (Note 6(d)) (6,481) (7,018) OTHER ASSETS 524,561 461,448 Prepaid expenses (Note 9) 524,561 461,448 PERMANENT ASSETS 13,415,825 12,580,478 INVESTMENTS 12,531,763 11,715,250 Investments in associated companies (Note 11(a)) 12,402,515 11,587,585 -Local 9,401,527 8,382,407 -Foreign 3,000,988 3,205,178 Goodwill on acquisitions of subsidiary companies (Note 11(b)) 79,324 84,719 Other investments 78,523 71,545 Allowance for losses (28,599) (28,599) FIXED ASSETS 367,190 355,248 Land and buildings in use 184,546 183,661 Other fixed assets 970,777 943,099 Accumulated depreciation (788,133) (771,512) DEFERRED CHARGES 516,872 509,980 Organization and expansion costs 1,008,307 971,768 Accumulated amortization (491,435) (461,788) TOTAL 137,957,710 134,526,851 7
  9. 9. (Convenience translation into English from the original previously issued in Portuguese) UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. DATE - SEPTEMBER 30, 2007 QUARTERLY INFORMATION INDIVIDUAL BALANCE SHEET Corporate Legislation Amounts expressed in thousands of Reais LIABILITIES September 30, 2007 June 30, 2007 CURRENT LIABILITIES 69,344,322 69,092,808 DEPOSITS 22,763,913 21,461,548 Demand deposits 4,318,498 4,484,726 Savings deposits 8,377,420 7,588,623 Interbank deposits 1,619,833 1,444,530 Time deposits 8,357,975 7,862,782 Other deposits 90,187 80,887 SECURITIES SOLD UNDER REPURCHASE AGREEMENTS 23,843,960 26,951,596 Own portfolio 8,509,622 12,214,795 Third parties portfolio 15,334,338 14,736,801 RESOURCES FROM SECURITIES ISSUED (Note 12) 3,067,592 2,986,651 Mortgage notes 75 151,121 Real estate notes 754,947 778,185 Debentures 90,172 15,334 Securities abroad 2,222,398 2,042,011 INTERBANK ACCOUNTS 754,912 668,926 Receipts and payments pending settlement 666,702 585,196 Correspondent banks 88,210 83,730 INTERDEPARTMENTAL ACCOUNTS 588,588 437,701 Third-party funds in transit 588,575 432,755 Internal transfers of funds 13 4,946 BORROWINGS (Note 13) 4,798,685 3,266,499 Borrowings in Brazil - governmental agencies 103 115 Foreign borrowings 4,798,582 3,266,384 ONLENDING IN BRAZIL - GOVERNMENTAL AGENCIES (Note 13) 2,288,844 1,987,943 BNDES (National Economic Development Bank) 1,273,001 1,139,684 FINAME (National Industrial Financing Authority) 974,167 814,896 Other 41,676 33,363 FOREIGN ONLENDINGS (Note 13) 2,423 6,970 Foreign onlendings 2,423 6,970 DERIVATIVE FINANCIAL INSTRUMENTS (Note 5(f)) 3,810,382 2,570,359 Derivative financial instruments 3,810,382 2,570,359 OTHER LIABILITIES 7,425,023 8,754,615 Collection of taxes and social contributions 1,412,258 1,076,872 Foreign exchange portfolio (Note 7(a)) 3,431,614 5,493,863 Social and statutory 598,002 652,602 Taxes and social security (Note 14) 256,922 368,825 Negotiation and intermediation of securities 944,237 350,753 Subordinated debt (Note 15(b)) 27,375 16,183 Sundry (Note 15(c)) 754,615 795,517 8
  10. 10. (Convenience translation into English from the original previously issued in Portuguese) UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. DATE - SEPTEMBER 30, 2007 QUARTERLY INFORMATION INDIVIDUAL BALANCE SHEET Corporate Legislation Amounts expressed in thousands of Reais LIABILITIES September 30, 2007 June 30, 2007 LONG-TERM LIABILITIES 56,997,677 54,621,077 DEPOSITS 27,492,352 26,608,390 Interbank deposits 13,068,371 13,239,802 Time deposits 14,423,981 13,368,588 SECURITIES SOLD UNDER REPURCHASE AGREEMENTS 7,800,877 7,309,062 Own portfolio 7,800,877 7,309,062 RESOURCES FROM SECURITIES ISSUED (Note 12) 5,183,789 5,397,368 Real estate notes 204 55 Debentures 1,229,641 1,249,386 Securities abroad 3,953,944 4,147,927 BORROWINGS (Note 13) 1,436,684 1,107,692 Borrowings in Brazil - governmental agencies 269 300 Foreign borrowings 1,436,415 1,107,392 ONLENDING IN BRAZIL - GOVERNMENTAL AGENCIES (Note 13) 4,783,268 4,466,015 BNDES (National Economic Development Bank) 2,457,304 2,432,860 FINAME (National Industrial Financing Authority) 2,144,519 1,858,373 Other 181,445 174,782 FOREIGN ONLENDINGS (Note 13) 6,186 15,518 Foreign onlendings 6,186 15,518 DERIVATIVE FINANCIAL INSTRUMENTS (Note 5(f)) 525,628 756,247 Derivative financial instruments 525,628 756,247 OTHER LIABILITIES 9,768,893 8,960,785 Foreign exchange portfolio (Note 7(a)) 502,279 539,599 Allowance for tax contingencies (Note 14) 1,727,499 1,509,092 Taxes and social security (Note 14) 40,968 42,632 Negotiation and intermediation of securities - 91,710 Subordinated debt (Note 15(b)) 4,818,335 4,133,002 Sundry (Note 15(c)) 2,679,812 2,644,750 DEFERRED INCOME 23,140 15,074 Deferred income 23,140 15,074 STOCKHOLDERS' EQUITY (Note 17) 11,592,571 10,797,892 Capital: 8,000,000 8,000,000 - Local residents 5,611,553 5,598,844 - Foreign residents 2,388,447 2,401,156 Capital reserves 160,745 160,745 Revaluation reserve on subsidiaries 4,905 5,313 Revenue reserves 2,703,510 2,722,845 Unrealized gains and losses - marketable securities and derivative financial instruments (48,477) (62,665) Treasury stock (65,884) (28,346) Retained earnings 837,772 - TOTAL 137,957,710 134,526,851 The accompanying notes are an integral part of these financial statements. 9
  11. 11. (Convenience translation into English from the original previously issued in Portuguese) UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. DATE - SEPTEMBER 30, 2007 QUARTERLY INFORMATION INDIVIDUAL STATEMENTS OF INCOME Corporate Legislation (Amounts expressed in thousands of Reais, except per share data) From July 1, 2007 From January 1, 2007 From July 1, 2006 From January 1, 2006 to September 30, 2007 to September 30, 2007 to September 30, 2006 to September 30, 2006 REVENUE FROM FINANCIAL INTERMEDIATION 3,645,244 10,472,942 3,744,325 10,163,279 Lending operations 1,526,442 4,403,493 1,691,626 4,820,512 Leasing operations 1,427 8,286 - - Marketable securities 1,789,020 5,061,821 1,659,457 4,353,670 Derivative financial instruments 324,362 627,790 207,768 643,094 Foreign exchange transactions (Note 7(b)) (100,441) 58,842 63,111 (30,914) Compulsory deposits 104,434 312,710 122,363 376,917 EXPENSES ON FINANCIAL INTERMEDIATION (2,282,262) (6,720,251) (2,611,783) (6,794,621) Deposits and securities sold (1,905,772) (5,523,147) (2,186,083) (5,710,991) Borrowings and onlendings (136,727) (476,950) (194,735) (318,644) Provision for credit losses (Note 6(f)) (239,763) (720,154) (230,965) (764,986) GROSS PROFIT FROM FINANCIAL INTERMEDIATION 1,362,982 3,752,691 1,132,542 3,368,658 OTHER OPERATING INCOME (EXPENSES) (563,823) (1,425,196) (357,399) (1,180,181) Services rendered 550,555 1,584,710 527,159 1,453,827 Salaries, benefits, training and social security (454,777) (1,310,909) (424,286) (1,278,939) Other administrative expenses (434,138) (1,293,242) (460,546) (1,294,947) Financial transaction and other taxes (158,648) (466,023) (94,144) (387,377) Equity in the results of associated companies (Note 11(a)) 262,637 1,211,319 243,552 870,690 Other operating income (Note 18(a)) 15,897 19,307 89,990 167,126 Other operating expenses (Note 18(b)) (345,349) (1,170,358) (239,124) (710,561) OPERATING INCOME BEFORE NON-RECURRING EVENTS 799,159 2,327,495 775,143 2,188,477 Profit from non-recurring events (Note 26) 532,379 735,779 (459,329) (459,329) Non-operating income (expenses) (7,483) (17,557) (11,993) (27,951) INCOME BEFORE TAXES AND PROFIT SHARING 1,324,055 3,045,717 303,821 1,701,197 INCOME TAX AND SOCIAL CONTRIBUTION (Note 19(b)) (22,935) (124,813) (92,704) (235,066) Provision for income tax 41,203 (230,524) 9,555 (162,323) Provision for social contribution 11,660 (66,485) 4,700 (64,800) Deferred tax asset change (75,798) 172,196 (106,959) (7,943) PROFIT SHARING (101,928) (300,152) (105,000) (291,659) Management (9,270) (26,936) (9,148) (22,845) Employees (92,658) (273,216) (95,852) (268,814) NET INCOME FOR THE PERIOD 1,199,192 2,620,752 106,117 1,174,472 Number of outstanding shares (Note 17(a)) 2,800,358,492 2,800,358,492 2,799,311,448 2,799,311,448 Net income shares: R$ 0.43 0.94 0.04 0.42 The accompanying notes are an integral part of these financial statements. 10
  12. 12. (Convenience translation into English from the original previously issued in Portuguese) UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. DATE - SEPTEMBER 30, 2007 QUARTERLY INFORMATION CONSOLIDATED BALANCE SHEET Corporate Legislation Amounts expressed in thousands of Reais ASSETS September 30, 2007 June 30, 2007 CURRENT ASSETS 95,993,043 95,725,823 CASH AND DUE FROM BANKS 1,657,300 1,837,149 SHORT-TERM INTERBANK INVESTMENTS (Note 4) 32,282,658 27,019,804 Securities purchased under resale agreements 27,548,132 22,407,210 Interbank deposits 4,653,977 4,519,963 Foreign currency investments 80,549 92,631 MARKETABLE SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (Note 5) 12,092,207 18,480,042 Own portfolio 9,265,450 12,474,101 Subject to repurchase commitments 374,222 3,531,592 Pledged with Brazilian Central Bank 729,893 1,040,019 Pledged under guarantees rendered 470,664 536,371 Derivative financial instruments (Note 5(f)) 1,251,978 897,959 INTERBANK ACCOUNTS 6,551,588 5,728,778 Payments and receipts pending settlement 661,882 615,040 Compulsory deposits: - Brazilian Central Bank 5,842,501 5,077,027 - National Housing System - SFH 2,266 1,272 Correspondent banks 44,939 35,439 INTERDEPARTMENTAL ACCOUNTS 59,986 76,736 Third-party funds in transit 191 212 Internal transfers of funds 59,795 76,524 LENDING OPERATIONS 27,381,415 25,501,833 Lending operations: (Note 6(a)) - Public sector 284,883 203,993 - Private sector 29,003,304 27,206,738 Allowance for losses on lending (Note 6(d)) (1,906,772) (1,908,898) LEASING OPERATIONS 1,924,623 1,405,716 Leasing operations: (Note 6(a)) - Private sector 1,983,079 1,450,491 Allowance for losses on leasing (Note 6(d)) (58,456) (44,775) OTHER CREDITS 13,342,558 14,861,637 Foreign exchange portfolio (Note 7(a)) 5,025,708 6,799,271 Income receivable 408,313 307,502 Negotiation and intermediation of securities 536,079 901,092 Deferred tax (Note 19(a)) 1,162,962 1,189,956 Receivables from credit card operations 2,739,111 2,621,368 Insurance premium 1,441,354 1,478,279 Prepaid taxes 904,218 628,056 Sundry (Note 8) 1,256,247 1,061,420 Allowance for losses on other credits (Note 6(d)) (131,434) (125,307) OTHER ASSETS 700,708 814,128 Other assets 281,985 265,998 Allowance for losses on other assets (69,641) (62,679) Prepaid expenses (Note 9) 488,364 610,809 11
  13. 13. (Convenience translation into English from the original previously issued in Portuguese) UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. DATE - SEPTEMBER 30, 2007 QUARTERLY INFORMATION CONSOLIDATED BALANCE SHEET Corporate Legislation Amounts expressed in thousands of Reais ASSETS September 30, 2007 June 30, 2007 LONG-TERM ASSETS 35,497,547 31,425,142 INTERBANK INVESTMENTS (Note 4) 1,260,270 1,104,913 Interbank deposits 1,260,270 1,104,913 MARKETABLE SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (Note 5) 9,679,606 7,641,017 Own portfolio 4,299,421 3,391,867 Subject to repurchase commitments 2,206,767 2,568,084 Pledged with Brazilian Central Bank 1,390,456 - Pledged under guarantees rendered 1,144,518 1,190,133 Derivative financial instruments (Note 5(f)) 638,444 490,933 INTERBANK ACCOUNTS 55,314 54,527 Compulsory deposits: - National Housing System - SFH 55,314 54,527 LENDING OPERATIONS 15,329,617 14,404,713 Lending operations: (Note 6(a)) - Public sector 672,855 740,341 - Private sector 15,198,022 14,212,729 Allowance for losses on lending (Note 6(d)) (541,260) (548,357) LEASING OPERATIONS 2,772,972 1,857,518 Leasing operations: (Note 6(a)) - Private sector 2,857,913 1,916,775 Allowance for losses on leasing (Note 6(d)) (84,941) (59,257) OTHER CREDITS 5,547,674 5,703,790 Receivables on guarantees honored 37,845 37,772 Foreign exchange portfolio (Note 7(a)) 502,774 539,282 Income receivable 66,129 52,398 Deferred tax (Note 19(a)) 2,163,857 2,234,649 Prepaid taxes 171,809 164,346 Sundry (Note 8) 2,617,864 2,691,052 Allowance for losses on other credits (Note 6(d)) (12,604) (15,709) OTHER ASSETS 852,094 658,664 Prepaid expenses (Note 9) 852,094 658,664 PERMANENT ASSETS 2,434,056 2,425,451 INVESTMENTS 888,933 885,121 Investments in associated companies (Note 11(a)) 268,566 256,185 -Local 268,566 256,185 Goodwill on acquisitions of subsidiary companies (Note 11(b)) 411,462 456,284 Other investments 269,603 243,003 Allowance for losses (60,698) (70,351) FIXED ASSETS 827,099 830,521 Land and buildings in use 606,569 605,627 Other fixed assets 1,542,936 1,564,400 Accumulated depreciation (1,322,406) (1,339,506) DEFERRED CHARGES 718,024 709,809 Organization and expansion costs 1,401,715 1,355,598 Accumulated amortization (683,691) (645,789) TOTAL 133,924,646 129,576,416 12
  14. 14. (Convenience translation into English from the original previously issued in Portuguese) UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. DATE - SEPTEMBER 30, 2007 QUARTERLY INFORMATION CONSOLIDATED BALANCE SHEET Corporate Legislation Amounts expressed in thousands of Reais LIABILITIES September 30, 2007 June 30, 2007 CURRENT LIABILITIES 79,731,495 76,339,114 DEPOSITS 22,400,134 21,573,548 Demand deposits 4,160,695 4,625,641 Savings deposits 8,832,632 8,044,191 Interbank deposits 741,513 879,515 Time deposits 8,575,107 7,943,314 Other deposits 90,187 80,887 SECURITIES SOLD UNDER REPURCHASE AGREEMENTS 18,693,990 20,576,405 Own portfolio 8,496,642 11,469,821 Third parties portfolio 10,197,348 9,106,584 RESOURCES FROM SECURITIES ISSUED (Note 12) 1,630,763 1,627,752 Mortgage notes 28,770 175,126 Real estate notes 754,947 778,185 Debentures 116,609 21,569 Securities abroad 730,437 652,872 INTERBANK ACCOUNTS 781,597 681,777 Receipts and payments pending settlement 707,717 616,046 Correspondent banks 73,880 65,731 INTERDEPARTMENTAL ACCOUNTS 590,007 440,443 Third-party funds in transit 588,598 432,780 Internal transfers of funds 1,409 7,663 BORROWINGS (Note 13) 5,031,649 3,522,955 Borrowings in Brazil - governmental agencies 103 115 Borrowings in Brazil - other agencies 105,194 140,708 Foreign borrowings 4,926,352 3,382,132 ONLENDING IN BRAZIL - GOVERNMENTAL AGENCIES (Note 13) 2,629,269 2,369,127 BNDES (National Economic Development Bank) 1,273,001 1,139,684 FINAME (National Industrial Financing Authority) 1,314,592 1,196,080 Other 41,676 33,363 FOREIGN ONLENDINGS (Note 13) 2,423 6,970 Foreign onlendings 2,423 6,970 DERIVATIVE FINANCIAL INSTRUMENTS (Note 5(f)) 3,828,349 2,588,597 Derivative financial instruments 3,828,349 2,588,597 OTHER LIABILITIES 24,143,314 22,951,540 Collection of taxes and social contributions 1,460,597 1,128,912 Foreign exchange portfolio (Note 7(a)) 3,431,614 5,493,863 Social and statutory 1,171,617 709,304 Taxes and social security (Note 14) 1,048,181 845,677 Negotiation and intermediation of securities 1,739,402 1,589,351 Technical provisions for insurance, retirement and capitalization plans (Note 15(a)) 9,569,989 7,846,452 Subordinated debt (Note 15(b)) 27,108 16,136 Payable to merchants - credit card 3,670,815 3,318,900 Sundry (Note 15(c)) 2,023,991 2,002,945 13
  15. 15. (Convenience translation into English from the original previously issued in Portuguese) UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. DATE - SEPTEMBER 30, 2007 QUARTERLY INFORMATION CONSOLIDATED BALANCE SHEET Corporate Legislation Amounts expressed in thousands of Reais LIABILITIES September 30, 2007 June 30, 2007 LONG-TERM LIABILITIES 40,630,286 40,522,448 DEPOSITS 11,673,333 11,958,473 Time deposits 11,673,333 11,958,473 SECURITIES SOLD UNDER REPURCHASE AGREEMENTS 7,267,873 6,745,225 Own portfolio 7,267,873 6,745,225 RESOURCES FROM SECURITIES ISSUED (Note 12) 2,508,365 2,560,382 Real estate notes 204 55 Debentures 1,929,641 1,949,386 Securities abroad 578,520 610,941 BORROWINGS (Note 13) 1,431,535 1,097,403 Borrowings in Brazil - governmental agencies 269 300 Borrowings in Brazil - other agencies 5,461 3,084 Foreign borrowings 1,425,805 1,094,019 ONLENDING IN BRAZIL - GOVERNMENTAL AGENCIES (Note 13) 5,141,416 4,831,949 BNDES (National Economic Development Bank) 2,457,304 2,432,860 FINAME (National Industrial Financing Authority) 2,502,667 2,224,307 Other 181,445 174,782 FOREIGN ONLENDINGS (Note 13) 6,186 15,518 Foreign onlendings 6,186 15,518 DERIVATIVE FINANCIAL INSTRUMENTS (Note 5(f)) 526,179 756,580 Derivative financial instruments 526,179 756,580 OTHER LIABILITIES 12,075,399 12,556,918 Foreign exchange portfolio (Note 7(a)) 502,279 539,599 Allowance for tax contingencies (Note 14) 2,663,992 2,430,390 Taxes and social security (Note 14) 267,909 218,108 Negotiation and intermediation of securities - 91,710 Technical provisions for insurance, retirement and capitalization plans (Note 15(a)) 622,208 1,987,134 Subordinated debt (Note 15(b)) 4,806,051 4,118,725 Sundry (Note 15(c)) 3,212,960 3,171,252 DEFERRED INCOME 51,963 32,329 Deferred income 51,963 32,329 MINORITY INTEREST (Note 11(a)(7)) 1,918,331 1,884,633 STOCKHOLDERS' EQUITY (Note 17) 11,592,571 10,797,892 Capital: 8,000,000 8,000,000 - Local residents 5,611,553 5,598,844 - Foreign residents 2,388,447 2,401,156 Capital reserves 160,745 160,745 Revaluation reserve on subsidiaries 4,905 5,313 Revenue reserves 2,703,510 2,722,845 Unrealized gains and losses - marketable securities and - - derivative financial instruments (48,477) (62,665) Treasury stock (65,884) (28,346) Retained earnings 837,772 - STOCKHOLDERS' EQUITY MANAGED BY PARENT COMPANY 13,510,902 12,682,525 TOTAL 133,924,646 129,576,416 The accompanying notes are an integral part of these financial statements. 14
  16. 16. (Convenience translation into English from the original previously issued in Portuguese) UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. DATE - SEPTEMBER 30, 2007 QUARTERLY INFORMATION CONSOLIDATED STATEMENTS OF INCOME Corporate Legislation (Amounts expressed in thousands of Reais, except per share data) From July 1, 2007 From January 1, 2007 From July 1, 2006 From January 1, 2006 to September 30, 2007 to September 30, 2007 to September 30, 2006 to September 30, 2006 REVENUE FROM FINANCIAL INTERMEDIATION 4,490,689 13,067,868 4,578,963 12,952,978 Lending operations 2,555,673 7,434,783 2,741,845 7,886,638 Leasing operations 155,268 383,573 70,311 160,750 Marketable securities 1,087,435 3,350,296 1,151,606 3,135,540 Financial results from insurance, pension plans and annuity products 324,751 920,225 252,822 811,949 Derivative financial instruments 218,577 457,176 175,364 608,190 Foreign exchange transactions (Note 7(b)) 43,762 206,718 63,636 (29,608) Compulsory deposits 105,223 315,097 123,379 379,519 EXPENSES ON FINANCIAL INTERMEDIATION (2,225,748) (6,480,825) (2,695,514) (7,564,163) Deposits and securities sold (1,258,533) (3,662,704) (1,711,820) (4,718,852) Price-level restatement and interest on technical provision for insurance, pension plans and annuity products (233,196) (647,832) (183,677) (565,682) Borrowings and onlendings (173,889) (541,117) (220,449) (390,304) Provision for credit losses (Note 6(f)) (560,130) (1,629,172) (579,568) (1,889,325) GROSS PROFIT FROM FINANCIAL INTERMEDIATION 2,264,941 6,587,043 1,883,449 5,388,815 OTHER OPERATING INCOME (EXPENSES) (1,241,810) (3,580,386) (977,802) (2,780,834) Services rendered 925,497 2,704,120 909,429 2,673,049 Insurance, annuity products and retirement plans premiums 1,091,665 3,661,133 947,046 3,045,973 Changes in technical provision for insurance, annuity products and retirement plans (221,915) (1,129,407) (248,578) (1,016,599) Insurance claims (319,585) (925,056) (257,102) (767,448) Private retirement plans benefit expenses (140,877) (444,836) (132,150) (478,924) Selling, other insurance and private retirement plans expenses (225,606) (590,002) (134,648) (336,569) Credit card selling expenses (59,614) (185,860) (71,730) (215,601) Salaries, benefits, training and social security (577,108) (1,679,348) (547,732) (1,634,015) Other administrative expenses (836,655) (2,536,018) (910,118) (2,552,266) Financial transaction and other taxes (308,984) (914,106) (195,065) (697,105) Equity in the results of associated companies (Note 11(a)) 10,003 31,332 12,991 48,044 Other operating income (Note 18(a)) 39,988 135,291 99,169 203,457 Other operating expenses (Note 18(b)) (618,619) (1,707,629) (449,314) (1,052,830) OPERATING INCOME BEFORE NON-RECURRING EVENTS 1,023,131 3,006,657 905,647 2,607,981 Profit from non-recurring events (Note 26) 532,379 735,779 (459,329) (459,329) Non-operating income (expenses) (7,198) (13,410) (26,683) (28,608) INCOME BEFORE TAXES AND PROFIT SHARING 1,548,312 3,729,026 419,635 2,120,044 INCOME TAX AND SOCIAL CONTRIBUTION (Note 19(b)) (193,117) (624,696) (154,697) (460,510) Provision for income tax (67,001) (622,000) (135,513) (468,269) Provision for social contribution (29,231) (217,594) (47,346) (158,581) Deferred tax asset change (96,885) 214,898 28,162 166,340 PROFIT SHARING (124,995) (368,240) (125,549) (347,152) Management (9,356) (27,175) (9,148) (22,845) Employees (115,639) (341,065) (116,401) (324,307) INCOME BEFORE MINORITY INTEREST 1,230,200 2,736,090 139,389 1,312,382 MINORITY INTEREST (31,008) (115,338) (33,272) (137,910) NET INCOME FOR THE PERIOD 1,199,192 2,620,752 106,117 1,174,472 Number of outstanding shares (Note 17(a)) 2,800,358,492 2,800,358,492 2,799,311,448 2,799,311,448 Net income shares: R$ 0.43 0.94 0.04 0.42 The accompanying notes are an integral part of these financial statements. 15
  17. 17. (Convenience translation into English from the original previously issued in Portuguese) CVM CODE UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. FINANCIAL 01158-4 DATE – SEPTEMBER 30, 2007 INSTITUTION QUARTERLY INFORMATION Corporate Legislation NOTES TO THE QUARTERLY INFORMATION (Amounts expressed in thousands of Reais, unless otherwise indicated) 1. Operations The operations of Unibanco - União de Bancos Brasileiros S.A. and its direct and indirect subsidiaries and jointly controlled companies in Brazil and abroad include, in addition to the financial activities of the Unibanco Conglomerate, other activities carried out by subsidiaries with specific objectives principally related to insurance, credit card operations, annuity product plans and private retirement plans. 2. Presentation of Quarterly Information The quarterly information of Unibanco - União de Bancos Brasileiros S.A. and its foreign branches (Unibanco) are presented together with the consolidated quarterly information of Unibanco and its direct and indirect subsidiaries, and its jointly controlled companies (Unibanco Consolidated), as shown in Note 11. The consolidated quarterly information have been prepared in accordance with consolidation principles determined by the Brazilian Securities Commission and Brazilian Central Bank. Intercompany investments, balances, income and expenses, as well as unrealized intercompany gains and losses, were eliminated upon consolidation. The investments held by consolidated companies in Exclusive Investment Funds have been consolidated and Investments in these fund portfolios are classified by type of transaction and type of paper. The assets, liabilities, revenues and expenses of jointly controlled companies have been included in the consolidated quarterly information on a proportional basis. The quarterly information of the leasing subsidiary was reclassified by means of off-book adjustments, in order to reflect its financial position and results of operations in the consolidation, in accordance with the financial method of accounting for leasing transactions. In preparing our quarterly information, estimates and assumptions were used to account for certain assets, liabilities, revenues and expenses in accordance with accounting practices adopted in Brazil. Estimates and assumptions were used to account for the allowance for credit losses, the provision for litigation, the fair value of financial instruments, in the methods of determining reserves of insurance and private retirement plan businesses and to determine the remaining useful lives of certain assets. Actual results in future periods could differ from those estimates and assumptions and judgments adopted. The statement of income for the third quarter of 2006 and for the nine-month period ended September 30, 2006, were reclassified for the purpose of better comparison in respect of non- recurring events results, see Note 26 3. Summary of Significant Accounting Policies The accounting policies adopted by Unibanco and its subsidiary companies are in accordance with the requirements of Brazilian Corporate Law and the regulations of the National Monetary Council, the Brazilian Central Bank, the Brazilian Securities Commission and the Superintendency of Private Insurances. (a) Determination of net income Net income is determined on the accrual basis and considers: • income, expenses and monetary or exchange rate variations, at official rates or indexes, pro rata temporis, on current and long-term assets and liabilities; 16
  18. 18. (Convenience translation into English from the original previously issued in Portuguese) CVM CODE UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. FINANCIAL 01158-4 DATE – SEPTEMBER 30, 2007 INSTITUTION QUARTERLY INFORMATION Corporate Legislation NOTES TO THE QUARTERLY INFORMATION (Amounts expressed in thousands of Reais, unless otherwise indicated) • the effects of the provisions to adjust the assets to market or realizable values; • the adjustments to the technical reserves for insurance, annuity products and retirement plans; • the insurance premiums, as well their respective acquisition costs, are recognized in earnings when the policy is issued and the changes in the technical provision for unearned premium and the deferred acquisition costs are recognized over the related contract period; • the commissions related to the policy issuance are deferred and appropriated to earnings on a straight-line basis over a period of 12 months; • the effects of the adjustment of investments in subsidiary and associated companies to reflect the equity method of accounting; • the provision for federal income tax at the rate of 15% on taxable income, plus a specific surcharge of 10% on taxable income over established fiscal limits; • the provision for social contribution calculated at the rate of 9% on the adjusted income before income tax; and • tax credits calculated on temporary differences between book value and tax bases, and on tax loss carry-forwards. (b) Current and long-term assets These assets are stated at cost plus, when applicable, the related income and monetary and exchange rate variations, and less the related unearned income and/or allowances for losses, except for marketable securities, the derivative financial instruments and financial assets subject to hedge, which are presented as stated in item (c). The allowance for credit losses is set up in an amount considered sufficient to cover probable future losses. Management's analysis to establish the allowance required takes into account the economic environment, accumulated experience, specific and general portfolio risks, as well as the regulations of the Brazilian Central Bank. (c) Marketable securities and derivative financial instruments Marketable securities Marketable securities are classified into three categories accounted for as follows: • Trading securities – acquired for trading purposes. They are stated at cost plus accrued interest and adjusted to their fair values. Unrealized gains and losses are recognized currently in earnings. • Securities available for sale – acquired as part of the strategy of managing market risks. They are negotiated as a result of changes in the interest rates, in payment conditions or other factors. They are stated at cost plus accrued interest and adjusted to their fair value, with the related income recognized in the period and unrealized gains and losses recorded as a separate component of stockholders’ equity, net of applicable taxes, in “Unrealized gains and losses – marketable securities and derivatives”. The realized gains and losses and permanent losses are recognized in the incoming statement in a contra account in the stockholders’ equity. 17
  19. 19. (Convenience translation into English from the original previously issued in Portuguese) CVM CODE UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. FINANCIAL 01158-4 DATE – SEPTEMBER 30, 2007 INSTITUTION QUARTERLY INFORMATION Corporate Legislation NOTES TO THE QUARTERLY INFORMATION (Amounts expressed in thousands of Reais, unless otherwise indicated) • Securities held to maturity – marketable securities for which there is an intention and financial ability to hold them to maturity. They are held at cost plus accrued interest recognized currently in earnings. Derivative financial instruments (assets and liabilities) The derivative financial instruments are classified based on Management’s intent for hedging or non- hedging purposes. • Derivative financial instruments designed to hedge or to modify characteristics of financial assets or liabilities and (i) which are highly correlated with respect to changes in fair value in relation to the fair value of the item being hedged, both at inception date and over the life of the contract; and (ii) are effective at reducing the risk associated with the exposure being hedged, are classified as hedges as follows: - Fair value hedge. The financial assets and liabilities and the corresponding derivative financial instruments are accounted for at fair value and any offsetting gains or losses recognized currently in earnings; and - Cash flow hedge. The effective hedge portion of financial assets and liabilities and the respective derivative financial instruments are accounted for at fair value and any unrealized gains and losses are recorded as a separate component of stockholders’ equity, net of applicable taxes, as “Unrealized gains and losses – marketable securities and derivatives”. The non-effective hedge portion, if any, is recognized currently in earnings. • Transactions involving derivative financial instruments to meet customer needs or for the bank’s own purposes that do not meet hedge accounting requirements established by the Brazilian Central Bank, primarily derivatives used to manage overall exposure, are accounted for at fair value with unrealized gains and losses recognized currently in earnings. (d) Prepaid expenses It is composed by financial resources related to benefits or services that will be provided in the future. (e) Permanent assets Investments, fixed assets and deferred charges are originally stated at cost. Investments in subsidiary and associated companies are accounted for using the equity method of accounting (in the proportion of the ownership interest in the stockholders equity of the associated companies), as shown in Note 11. The effects in subsidiary and associated companies related to the valuation of marketable securities and derivatives, as mentioned above in item (c), are recognized by the controlling company so as to maintain the original accounting made by the subsidiary and associated companies. Other investments consist, principally, of investments carried at cost, adjusted when applicable by an allowance for losses, and membership certificates of stock and commodities exchange adjusted to book equity values. Goodwill relating to the acquisition of subsidiaries is being amortized over periods not exceeding five years, see Note 11 (b). Upon the merger of the subsidiary company with the discontinuation or expiration of the acquired brand, the respective goodwill is amortized in full. 18
  20. 20. (Convenience translation into English from the original previously issued in Portuguese) CVM CODE UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. FINANCIAL 01158-4 DATE – SEPTEMBER 30, 2007 INSTITUTION QUARTERLY INFORMATION Corporate Legislation NOTES TO THE QUARTERLY INFORMATION (Amounts expressed in thousands of Reais, unless otherwise indicated) Depreciation of fixed assets is calculated on the straight-line method at the following annual rates: buildings in use - 4%; equipment in use - 10%; and communications, data processing, and transportation systems - 20%. Deferred charges, composed substantially of leasehold improvements and software acquisition and development, are amortized over the term of the respective lease contracts or up to five years as from the beginning of their use. (f) Current and long-term liabilities These amounts include, when applicable, accrued interest and monetary and exchange rate variations, except for derivative financial instruments and liabilities subject to hedge, which are presented above in item (c). (g) Contingent assets and liabilities and legal liabilities. The recognition, measurement and disclosure of contingent assets and liabilities are made according to the criteria defined in Deliberation CVM nº 489 of 2005. Contingent assets – Contingent assets are not recorded, except upon evidence guaranteeing their realization. Contingent liabilities – Contingent liabilities are recorded, based on the opinion of Legal Counsel Advisers and the Administration, whenever a loss is considered as probable for judicial and administrative claims, which would cause a probable outflow of resources for the settlement of liabilities and when the amounts involved can be reasonably estimated. Legal liabilities – Taxes and social security – result from obligations arising under legislation, independently from the probable outcome of litigation in progress, which have their full amount recorded. (h) Technical provisions for insurance, complementary pension plans and annuity products The technical provisions are established in accordance with the rules of Resolution CNSP no. 162/06 and 139/05. In accordance with Resolution CNSP no. 135/05, an actuarial valuation is also performed on an annual basis and reported to the Superintendency of Private Insurance (SUSEP) with the respective actuarial report The provision for unearned premiums (PPNG) is established to cover claims to be incurred through the deferment of premium income over the related contract period according to the regulation of the Superintendency of Private Insurance - SUSEP. When the actuarial calculation determines a shortfall the provision for insufficient premiums (PIP) is increased. The provision for payment of unsettled claims (PSL) is recorded to cover claims reported until the date of the calculation base, considering commitments assumed by the insurance company. The provision for claims incurred but not yet reported (IBNR) is established based on the risk of incidents incurred but not yet reported until the reporting date and the amount is determined through actuarial calculation. The mathematical provisions related to the free benefits generator plan (VGBL and PGBL) and comprise the amounts of the liabilities assumed under the form of survival insurance and are established based on the financial method determined in the contract under the responsibility of a legally qualified actuary. The mathematical provisions represent the present value of future benefits estimated based on actuarial methods and assumptions. 19
  21. 21. (Convenience translation into English from the original previously issued in Portuguese) CVM CODE UNIBANCO - UNIÃO DE BANCOS BRASILEIROS S.A. FINANCIAL 01158-4 DATE – SEPTEMBER 30, 2007 INSTITUTION QUARTERLY INFORMATION Corporate Legislation NOTES TO THE QUARTERLY INFORMATION (Amounts expressed in thousands of Reais, unless otherwise indicated) The mathematical provision for benefits to be granted represents the commitments assumed with participants, whose vesting event and the Mathematical Provision for Benefits granted corresponds the value of commitments whose vesting event has not occurred has already occurred. Both provisions are calculated according to methodology approved in the Actuarial Note of the plan or product. The financial expenses related to the technical provision are recorded as “Interest and monetary correction on technical provision for insurance, pension plans and annuity products”. 4. Short-Term Interbank Investments Unibanco Unibanco Consolidated September 30, June 30, September 30, June 30, 2007 2007 2007 2007 Securities purchased under resale agreements 25,936,261 22,299,835 27,548,132 22,407,210 Own position 9,101,502 6,210,018 10,713,373 6,317,393 - Financial treasury bills 1,997,204 231,775 3,546,457 231,775 - Treasury bills 5,047,250 4,166,442 5,109,868 4,181,962 - Treasury notes 2,035,034 1,778,356 2,035,034 1,788,011 - Other 22,014 33,445 22,014 115,645 Financial Position 15,334,338 14,736,801 15,334,338 14,736,801 - Financial treasury bills 8,874,548 495,951 8,874,548 495,951 - Treasury bills 3,815,084 10,719,727 3,815,084 10,719,727 - Treasury notes 523,043 1,594,404 523,043 1,594,404 - Other 2,121,663 1,926,719 2,121,663 1,926,719 Settlement and clearing chamber 1,500,421 1,353,016 1,500,421 1,353,016 Interbank deposits 12,887,881 12,655,203 5,914,247 5,624,876 Foreign currency investments 80,549 92,631 80,549 92,631 Total 38,904,691 35,047,669 33,542,928 28,124,717 Current 37,551,690 33,832,149 32,282,658 27,019,804 Long-term 1,353,001 1,215,520 1,260,270 1,104,913 5. Marketable Securities and Derivative Financial Instruments (a) The balances can be summarized as follows: Unibanco Unibanco Consolidated September 30, June 30, September 30, June 30, Marketable Securities 2007 2007 2007 2007 Trading assets 2,086,908 4,391,974 7,068,391 10,382,200 Available for sale 23,851,416 25,236,629 10,339,201 11,646,217 Held to maturity 1,191,032 1,450,734 2,473,799 2,703,750 Subtotal 27,129,356 31,079,337 19,881,391 24,732,167 Derivative financial instruments 1,964,404 1,368,299 1,890,422 1,388,892 Total 29,093,760 32,447,636 21,771,813 26,121,059 Current 6,853,605 12,107,313 12,092,207 18,480,042 Long-term 22,240,155 20,340,323 9,679,606 7,641,017 20

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