Apresenta

1
V National Meeting with Analysts and Investors
2
Schedule
1
Businesses leverage boost
2
Stabilization of loan delinquency
3
New scenario for Fee Income
4
Continued upgrade in productivity
5
Sustainable Businesses
6
Whats next?
3
Schedule
4
Continued upgrade in productivity levels
4
Net Interest Income boosted by strong credit
growth...
2007
2008
Loan Revenues
Net Interest Income
Other Interest Revenues
5
...although the reduction in interest rates
brings a spread contraction.
NIM by Loan Portfolio -
Individuals
Agribusiness
Businesses
1 Net Interest Income over Earning Assets
6
In this scenario, NIM decrease is more than
compensated by earning assets growth...
224.8
101.8
160.7
133.2
88.6
2005
2006
2007
2008
2004
Spread Effect1 R billion
Volume effect2 R billion
NIM3
Loan Portfolio R billion
1 Net Interest Income change related to spread
variation 2 Net Interest Income change related
to the Average Earning Assets growth 3 Spread
Net Interest Margin over Earning Assets
7
...demonstrated by the loan portfolio growth,
that overcame the banking industry.
R billion
Individuals
Agribusiness
Market Share1 -
Businesses
Foreign
1 Domestic Loan portfolio
8
In individuals businesses, payroll and car loans
lead the credit growth.
R billion
9
Businesses loan portfolio almost reaching R 100
billion...
R billion
SME
Middle and Large Companies
10
...and the Agribusiness credit growth is followed
by the intensive use of risk mitigators.
Agri Insurance
Contracted Crop 08/09
Crop 08/09
R billion
Insured
Agricultural Costs
Not Insured
Livestock Costs
Investment
Marketing
Agroindustrial Costs
11
The expressive growth in funding allowed business
expansion.
R billion
2004
2005
2006
2007
2008
1 As of sep/2008
12
Schedule
1
Businesses leverage boost
2
Stabilization of loan delinquency
3
New scenario for Fee Income
4
Continued upgrade in productivity levels
13
Loan Portfolio increase with maintenance of
quality...
5.0
4.7
4.3
3.7
3.6
6,800
5,743
5,378
4,527
3,531
6.6
6.5
6.4
6.1
6.1
5.8
5.4
5.4
5.4
5.1
3.4
2004
2005
2006
2007
2008
2.9
2.8
2.7
2.4
Provision Expenses/Loan Portfolio¹ -
2.5
2.1
2.0
Provision Expenses - R million
1.4
1.1
2004
2005
2006
2007
2008
Additional Required Provision / Loan Portfolio
-
Required Provision / Loan Portfolio -
Past Due Loans 90 days / Loan Portfolio -
1 Average Loan Portfolio 2 Net of Recovery
Losses² / Loan Portfolio -
14
...confirmed by delinquency levels, lower than
Banking Industry.
Businesses Delinquency¹ -
4.3
3.9
3.7
3.5
3.7
3.2
3.7
2.7
3.4
3.3
2.4
2.2
2.9
1.8
2.4
2.0
2.0
1.8
1.7
Dec/04
Dec/05
Dec/06
Dec/07
Dec/08
Past Due 90 BI
Past Due 90 BB
Past Due 15 BI
Past Due 15 BB
Individuals Delinquency¹ -
16.4
14.7
13.9
13.8
13.0
12.0
12.9
10.5
9.9
9.6
9.6
8.5
8.1
7.6
7.0
6.7
6.3
6.3
5.9
6.2
Dec/04
Dec/05
Dec/06
Dec/07
Dec/08
Past Due 90 BI
Past Due 90 BB
Past Due 15 BI
Past Due 15 BB
1 Contracted operations loan as reference for
interest rate
15
2005s Vintage¹ presented the highest delinquency
rate
Highest Rate in 2005 6.5
Delinquency 90 days
Months
Annual Vintage Analysis (since 2005) Client Risk
A.B.C.D and E Delinquency 90 days
1 Individual Loan Operations except overdraft
account, credit cards and car loans
16
Agribusiness delinquency has shown lower
delinquency levels than provisions.
Agribusiness Delinquency -
Equalization Revenues R million
307
Past Due 90 BB
Required Provision/Loan Portfolio
287
140
1,531
1,351
821
497
408
2004
2005
2006
2007
2008
Equalization Revenues
Weightening Factors
17
Schedule
1
Businesses leverage boost
3
New scenario for Fee Income
4
Continued upgrade in productivity levels
18
The great diversity of BBs loan portfolio and
its huge client base allows the growth of
non-financial income...
Fee Income
Accounts - million
10.5
R billion
9.9
25.7
8.9
1.6
7.6
6.6
24.2
2006
2008
2004
2005
2006
2007
Individuals
Businesses
Asset Management
Revenues - Debit and Credit Cards
246.3
R billion
R billion
220.1
182.7
153.5
124.0
2008
2004
2005
2006
2007
19
...with an emphasis on non-banking businesses.
R million
Cards Added Value
Insurance - Added Value
20
Schedule
1
Businesses leverage boost
3
New scenario for Fee Income
4
Continued upgrade in productivity levels
21
Banco do Brasil cost income ratio approaches the
level of private banks...
Coverage Ratio1 -
Efficiency Ratio2 -
1 Fee Income / Personnel Expenses
2 Administrative Expenses / Operating Income
(without one-off itens)
22
...with recurring productivity gains...
Assets per Collaborator R million
Deposits per branch R million
62.4
47.0
40.0
35.4
31.0
2004
2005
2006
2007
2008
Loan per branch R million
Clients per Collaborator
51.8
313
301
278
40.1
243
234
33.5
25.6
23.8
2004
2005
2006
2007
2008
2004
2005
2006
2007
2008
23
...resultant from the mix of intensive tecnology
and BBs distribution network.
Points of Service - thousand
Employees - thousand
89.0
83.8
82.7
81.9
79.7
2004
2005
2006
2007
2008
Transaction in Automated Channels -
ATMs - thousand
24
Schedule
1
Businesses leverage boost
3
New scenario for Fee Income
4
Continued upgrade in productivity levels
5
Sustainable Businesses
25
BB has incorporated in its businesses sustainable
principles...
Training Hours1
Employees Turnover -
thousand hours
Loan Porfolio - BB Florestal
Loan Portfolio - BB Produção Orgânica
R million
R million
1 Hours accumulated in the last 12 months
26
...reflecting in the companys daily routine the
concern with eco-efficiency practices.
Water Comsumption / Employee Main Building (m3)
White Paper Comsumption / Client (g)
Transactions without use of paper -
Use of Toner (thousand units)1
1 Reconditioned cartridges
27
Growth, effective risk management,
diversification, productivity gains, compose BBs
business model...
Boost of businesses operations1
New scenario for Fee Income3
Stability in Delinquency2
Continued evolution of cost income Ratio4
3 Fee Income / Earning Assets
1 Net Interest Income / Earning Assets
2 Allowance for loan losses / Earning Assets
4 Administrative Expenses / Earning Assets
28
...that allows BB to assume the commitment to
generate value to shareholders...
1.3
CAGR 20.7
R billion
Assets1 - R billion
Recurring Return over Assets
ROA
Recurring Return on Equity -
Recurring Net Income
Return on Equity -
Net Income
1 Financial Consolidated
29
which is also seen in our 2009 commitments.
Domestic Credit Portfolio Individuals 23 -
25 Companies 16 - 19 Agribusiness 2 - 5
Domestic Credit Portfolio Total 13 - 17
Net Interest Margin 6.8 - 7.2
Recurring ROE 19 - 22
Fee Income 5 - 8
Total Deposits 10 - 14
Allowance for Loan Losses 3.8 - 4.2
Administrative Expenses 9 - 12
Tax Rate 26 - 29
30
Schedule
1
Businesses leverage boost
3
New scenario for Fee Income
4
Continued upgrade in productivity levels
31
Relating to credit, we foresee

• BNDES disbursement leadership.
• Capital Markets structure strengthening.
• Operational activities specialization and
  centralization.

Payroll Loans

• Leverage the public servant customer base from
  payroll purchases and state banks acquisitions.

Auto Loans

• Increase share in the credit cooperative market.
• Keep up as SMEs main partner.

• Synergic join venture with Banco Votorantim
  aiming at auto loans market share growth.

32
5 mortgage market share by 2013.
Disbursements2 - R billion

• Business opportunities
• Assets growth
• Income fees increase
• Customer base expansion and fidelity
• Companies financing

Mortgage- GDP
Source ABECIP
1 Estimates
2 Banking Industry - Savings
33
Banco do Brasils Agribusiness market share
maintenance.
Opportunities
Banco do Brasils Guidelines

• Recovery of international demand
• Strong domestic market
• Production raise capacity
• USA subsidies decrease
• Agro-energy

Keep operations under reserve requirements level
Maintain Market Leadership
Agro book mostly with controlled rates
Grow Agro book but decrease its share in BBs
total credit portfolio
Increase risk mitigators use
Focus on short term operations
Improve Agro book risk
Reduce over rolled book
Social-environmental Responsibility
1 Source MAPA, Crop 2018/2019 expected growth in
relation to Crop 2007/2008
34
Active role in the Foreign Trade with efficiency
gains.
2009 Estimates
Foreign Exchange US 73 billion
Financing US 17 billion
Initiatives BB

• Online Foreign Trade / Digital Signature
• Documents Digitalization / Electronic File
• International Trade Bureau
• Vanguard in Foreign Trade Credit Card
• Consult and training in international business

Exporting US 44 billion 28 share
Exporting US 14 billion
Importing US 29 billion 25 share
Importing US 3 billion
35
Cards Market Opportunities 22 market share by
2014.
Cards Market Billing Potential with the
perspective of market share increase by BB

• Initiatives BB
• Multiple Functions Card.
• Access to a different kinds of credit
• Platform integrated to banking services granting
  more synergy with check account.
• Replacement of other payment means.
• Low income customers attractions.

1 Souerce ABECS, BCG/BB analysis.
36
Insurance doubled by 2013 following market
expansion.
Expected market by 2013 Capitalization - R11
billion Supplementary Pension Plan - R68
billion Auto - R32 billion Life - R18
billion Health - R12 billion
Insurance ( GDP ) - 2006 Ranking

• BB Initiatives
• Intensify selling through brokerages
• Grow cross-selling in traditional means
• Grow selling through call center and Internet
• Grow partnerships

37
Processes optimization due to improvements in
technology and back-office model seeking
productivity gains
Back-office model restructuring and IT platform
modernization
Mainframe structure and processing revision
Back-office platform creation all around Brazil
Modernization of BBs ATM Network, the largest of
Latin America
Linux install in all automated teller machines
Digitalization of all documents, including the
pre-existing ones
New data ware center
38
Business management generate sustainable results.
Agenda 21
Economic
Environmental
Social
Processes, Products and Services
Credit and Socio-environmental analysis
Transparency GRI
Eco-efficiency Program
Sustainability in BBs businesses.
3,000
2,500
2,100
1,700
1,300
1,211
Regional Sustainable Development Families
Involved - thousands
726
231
71
2005
2007
2008
2009
2011
2012
2013
2006
2010
39
Customers Return Expansion
Distribution Alternative Means
Wide Distribution Network
New Products Portfolio
Customers
Diverse Product Portfolio

48 million
9 million

Organic Growth1 8.2 a.a.
Ease Access ATMs
New Technologies
1 Check Accounts CAGR since 2004
40
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