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1 Banco do Brasil S.A. 2H07. 2 Economic Environment Interest Rate - SelicPrice Index - IPCA Ratio - % Source: Central Bank and Brazilian Institute of.

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Presentation on theme: "1 Banco do Brasil S.A. 2H07. 2 Economic Environment Interest Rate - SelicPrice Index - IPCA Ratio - % Source: Central Bank and Brazilian Institute of."— Presentation transcript:

1 1 Banco do Brasil S.A. 2H07

2 2 Economic Environment Interest Rate - SelicPrice Index - IPCA Ratio - % Source: Central Bank and Brazilian Institute of Geography and Statistics - IBGE 2003 16.5 9.3 2004 17.8 7.6 2005 18.0 5.7 2006 13.3 3.1 1H07 12.0 2.1 15.3 1.5 1H06

3 3 Trade BalanceInternational Reserves Economic Environment Sovereign Risk – basis points Source: Agência Estado, Ministry of Development, Industry and Foreign Trade and Central Bank USD billion 463 383 303 192 2003 24.8 49.3 2004 33.6 52.9 2005 44.7 53.8 2006 46.1 85.8 1H07 20.6 147.1 19.4 62.7 1H06 240 160

4 4 Banking Industry 20032004200520061H07 BusinessesIndividuals Loan Segments – Free Resources % Loan / GDP - % Source: Central Bank 26.2 26.9 28.1 30.8 32.3 39.5 43.6 47.2 47.8 49.0 60.5 56.4 52.8 52.2 51.0

5 5 Loan Segments 2003200520061H072004 Payroll LoanCredit Card / Overdraft Account CarsOthers Individual Loan Segments - % Source: Central Bank 45.1 26.6 11.7 16.6 42.5 26.7 10.6 20.2 42.0 26.0 10.9 21.0 47.2 27.5 13.0 12.4 55.1 29.7 15.2

6 6 Banco do Brasil Structure COBRA BB-99.36% ON 99.34% Total BI-0.03% ON 0.03% Total BB LEASING BB - 100% ON 100% Total BB VIENA BB -100% ON 100% Total BB CARTÕES BB - 100% ON 100% Total BB LEASING Co. LTD BB - 100% ON 100% Total BB DTVM BB -100% ON 100% Total BB CORRETORA BB - 100%ON 100% Total BAMB BB -100% ON 100% Total BB CONSÓRCIOS BB - 100% ON 100% Total BB BI BB - 100% ON 100% Total BANCO DO BRASIL SECURITIES LLC BB - 100% ON 100% Total BB SECURITIES BAMB -100% ON 100% Total BB TURISMO BAMB - 99% ON BB LEASING – 1%ON 100%Total ATIVOS S.A. BB BI - 49% ON 74.50 % Total BAMB - 51% ON 25.50% Total ALIANÇA DO BRASIL BB-BI 40% ON 70% Total BRASILPREV BB-BI 49.99% ON 49.99% Total CIBRASEC BB-BI 9.09% ON 9.09% Total SBCE BB-BI 12.08% ON 12.08% Total BRASILSAÚDE BB-BI 49.92%ON 49.92% Total VISANET BB BI Classe A 35% Classe B 28.75% 31.99% Total ITAPEBI BB-BI 19% ON 19% Total BRASILCAP BB-BI 49.99% ON 49.99% Total KEPLER WEBER BB-BI 24.38% ON 24.38% Total DTVM 0.30% ON 0.30% Total VISA VALE BB BI 35% ON 40.35% Total PRONOR BB 0% ON 1.05% Total BI 0% ON 3.27% Total DTVM 29.5% ON 12.02% Total Strategic Partnerships Non-Strategic Partnerships BRASIL VEÍCULOS BB-BI 40% ON 70% Total NEOENERGIA BB-BI 8.81% ON 8.81% Total TECBAN BB BI 8.96% ON 8.96% Total CLEARINGS CIP BB 9.78% ON 9.78% Total CBLC BB 2.45% ON 2.45% Total B Strategic Partnerships CADAM BB 0% ON 21.64% Total Non-Strategic Partnerships Banco do Brasil Banco do Brasil Other Partnerships Affiliated Companies BB BI Wholly Owned Subsidiaries BANCO POPULAR DO BRASIL BB -100% ON 100% Total

7 7 Organizational Structure Board of Officers International Business and Wholesale Retail Service and Distribution Government Affairs Technology and Logistic Finance, Capital Market and Investor Relations CEO Human Resources and Social- Environmental Responsibility Credit, Controlling and Risk Management Vice-Presidents Credit and Debit Cards and New Retail Business Agribusinesses Board of Directors General Shareholders Meeting Board of Auditors Audit Committee Internal Audit

8 8 Banco do Brasil’s Shares National Treasury PREVI BNDESPar Foreign Investors Others 68.7 11.4 5.0 7.0 7.8 Free Float: 14.8 Participation - % As of June 2007

9 9 Share’s Performance 20032004200520061H07 Price / Book Value 20032004200520061H07 Price / Earnings 7.4 8.6 8.1 8.7 14.9 1.4 1.8 2.0 2.5 3.1

10 10 Share’s Performance 31.3 2003 31.5 2004 36.1 2005 40.0 2006 40.0 1H07 Payout - % 20032004200520061H07¹ Dividend Yield - % (1) Dividend and Interest on Own Capital in the last 12 months 4.2 3.7 4.4 4.6 2.7

11 11 Share’s Performance Jun/03Jun/04Jun/05Jun/06 IbovespaBanco do Brasil 666.4% 311.2% Jun/07

12 12 PerformancePerformance Net Income - R$ million ROE - % Market Capitalization - R$ billion Dividends / Interest on Capital - R$ million 2003 2,381 2004 3,024 2005 4,154 2006 6,044 22.3 23.0 26.8 32.1 2003 17.6 2004 26.0 2005 33.7 2006 52.8 1H06 52.8 2H061H07 746 954 1,498 2,418 1H06 3,889 2H06 2,156 1H07 2,477 22.6 24.3 47.8 41.3 69.1 862 991 1,555

13 13 Capital Structure Shareholder’s Equity - R$ billionTier I - % BIS Ratio -% Tier II - % 12.2 2003 14.1 2004 16.8 2005 20.8 2006 19.2 1H06 1H07 20032004200520061H061H07 9.7 4.0 10.6 4.6 11.7 5.4 11.7 5.6 17.3 17.1 15.2 13.7 22.3 11.6 5.7 10.6 5.3 15.9 17.3

14 14 113.1 145.2 273.8 333.0 HighlightsHighlights Market Share² - % Loan Portfolio - R$ billion Market Share - % Assets - R$ billion 20032004200520061H06 1H07 230.1 239.0 253.0 296.4 77.6 2003 88.6 2004 101.8 2005 133.2 20061H061H07 16.3 16.5 15.3 15.9 14.8 15.1 16.5 17.3 CAGR: 11.1% (2) Domestic Portfolio(1) As of March/2007 CAGR: 19.6% 15.1¹ 15.1 16.6 15.7

15 15 208.9 HighlightsHighlights Market Share - % Assets Under Management - R$ billion Market Share - % Deposits - R$ billion 110.0 2003 115.5 2004 137.7 2005 158.8 20061H06 1H07 102.7 2003 124.0 2004 153.5 2005 182.7 20061H061H07 19.1 20.2 19.7 19.0 20.3 20.2 22.4 CAGR: 12.2% (1) As of March/2007 CAGR: 22.5% 139.9 164.5 20.7¹ 19.4 171.2 19.1 19.7

16 16 Customers - million HighlightsHighlights IndividualsBusinesses Employees - thousand 200318.8 17.51.2 200421.1 19.71.4 200522.9 21.51.4 200624.4 22.8 1.6 1H07 24.6 1H06 23. 7 1H07 2003 78.0 2004 79.7 2005 83.8 2006 82.7 1H06 CAGR: 8.5% 23.31.6 22.21.5 79.3 82.9

17 17 Infrastructure and Technology Distribution Network Northeast Branches 995 Others 2,895 Total 3,890 Branches 1,539 Others 3,923 Total 5,462 Branches 810 Others 2,120 Total 2,930 Branches 391 Others 1,327 Total 1,718 Branches 242 Others 917 Total 1,159 North Midwest South Southeast 7.7% 11.3% 25.7% 36.0% 19.3%

18 18 Infrastructure and Technology Branches Others Points of Service - thousand Automated Teller Machine (ATM) - thousand 200313.23.210.0 200414.43.710.7 200514.83.910.9 200615.14.011.1 3.911.01H0615.0 4.011.21H0715.2 1H07 37.02003 39.0 2004 40.22005 39.7 2006 1H06 40.0 41.7

19 19 Infrastructure and Technology Transaction in Automated Channels - % ATM Internet Banking Cashier POS Others Breakdown of Transactions - % 1H06 1H07 2004 88.4 2005 89.2 2006 90.0 1H0689.0 1H0789.9 86.4 2003 47.3 31.1 11.0 6.8 3.7 45.9 32.2 10.1 7.8 4.0

20 20 Administrative Expenses - R$ billionOperational Income - R$ billion ProductivityProductivity Efficiency Ratio - % 11.3 20.3 12.6 23.2 13.1 27.3 13.7 28.9 20032004200520061H062H061H07 55.8 54.2 48.1 47.5 6.7 14.7 7.1 14.2 7.5 15.3 49.1 45.5 49.7

21 21 Fee Income - R$ billionPersonnel Expenses - R$ billion Coverage Ratio - % ProductivityProductivity 20032004200520061H062H061H07 6.8 5.5 7.1 6.6 7.5 7.6 7.9 8.9 112.9 102.3 93.1 80.6 3.9 4.3 4.0 4.5 4.4 4.8 110.1 113.6 112.2

22 22 Net Interest Income 2004200520061H062H061H07 17.1 11.3 2.9 15.8 19.2 12.4 2.0 16.8 21.6 13.5 1.6 18.7 10.4 6.8 0.9 9.4 11.2 6.7 0.7 9.3 12.2 6.2 1.3 9.6 R$ billion Security Revenues Loan Revenues Other Interest RevenuesInterest Expense Net Interest Income 15.5 16.7 18.0 8.7 9.3 10.1

23 23 FundingFunding R$ billion Demand DepositsSaving Deposits Time DepositsOthers¹ 2003 150.1 2004 160.1 2005 168.2 2006 208.1 1H06 191.4 1H07 239.3 (1) Include Interbank Deposits, Investment Deposits and Money Market Borrowing 48.2 47.3 27.4 27.1 49.7 50.3 31.1 29.0 63.5 36.0 32.8 35.8 76.9 54.4 36.7 40.1 69.4 57.5 33.2 31.4 81.4 80.2 40.8 36.8

24 24 Loan Portfolio 16.1 33.4 30.0 9.0 18.4 38.5 35.7 9.2 24.0 51.9 45.1 12.2 2004200520061H061H07 IndividualsBusinessesAgribusiness Abroad R$ billion 88.6 101.8 133.2 113.1 145.2 41.7 39.9 21.6 9.9 56.3 48.8 27.9 12.2

25 25 DelinquencyDelinquency 6.1 7.4 6.5 3.1 3.6 2.8 6.1 4.1 5.0 4.6 5.0 3.2 Jun/04Jun/05Jun/06Jun/07 Allowance / Loan Portfolio - % Past Due Loans + 15 days / Loan Portfolio - % Past Due Loans + 60 days / Loan Portfolio - %

26 26 Loan Portfolio - Individuals 2004200520061H061H07 Cars Payroll Loan Overdraft AccountCredit Cards Others 16.1 18.4 24.0 R$ billion 0.3 2.2 2.0 1.5 10.0 0.2 2.2 2.5 3.8 9.7 0.9 2.2 3.1 8.3 9.5 21.6 0.4 2.6 2.7 6.0 9.9 27.9 1.7 2.6 3.4 10.2 9.9

27 27 Loan Portfolio - Businesses 2004200520061H061H07 13.2 20.2 15.4 23.1 18.3 33.6 Middle and Large EnterprisesSmall and Micro Enterprises 33.4 38.5 51.9 41.7 56.3 R$ billion 16.6 25.1 21.4 35.0

28 28 Loan Portfolio - Agribusiness Mini-Sized Farmers Small-Sized Farmers Other Farmers Cooperative 2004200520061H061H07 1.3 3.1 6.0 19.6 1.8 3.8 7.4 22.8 2.0 5.3 8.6 29.2 30.0 35.7 45.1 39.9 48.8 R$ billion 1.8 1.9 4.4 7.6 26.1 5.9 9.1 31.9

29 29 RetailRetail Credit Card Revenue - R$ billion¹ Issued Credit Cards - million (1) Debt cards included 18.1 2003 24.3 2004 31.6 200520061H061H07 14.1 9.3 6.9 5.3 37.9 17.6 22.7 9.9 15.7

30 30 InsuranceInsurance Managed Portfolio - R$ million Insured Cars - thousand Car Insurance 171.8 238.7 318.5 367.0 20032004200520061H061H07 676 625 578 500 351.3 405.2 718 635

31 31 InsuranceInsurance Managed Portfolio - R$ million Insured Lives - thousand Life Insurance 20032004200520061H061H07 570.5 680.6 717.1 820.1 1,263 1,351 1,417 1,748 753.7 826.3 1,824 1,685

32 32 InsuranceInsurance Managed Portfolio - R$ million Participants - thousand Pension Fund 20032004200520061H061H07 5,586 7,781 9,659 12,480 1,178 1,365 1,576 1,760 10,741 14,061 1,903 1,652

33 33 InsuranceInsurance Managed Portfolio - R$ millions Quantity of Plans - thousand Capitalization (Annuity Plans) 20032004200520061H061H07 2,060 2,264 2,875 2,886 2,822 2,727 2,768 2,661 2,792 2,949 2,851 2,859

34 34 Sustainable Regional Development Strategy for job and income generation in a sustainable way which began in 2003. Support to environmentally correct, socially fair, economically viable and culturally diversified productive activities.

35 35 Investor Relations Unit SBS - Quadra 1 - Bloco C - Ed. Sede III - 5° floor 70073-901 - Brasília (DF) Phone: 55 (61) 3310.3980 Fax: 55 (61) 3310.3735 www.bb.com.br ri@bb.com.br Disclaimer Disclaimer - This presentation contains references and statements, planned synergies, increasing estimates, projections of results and future strategy for Banco do Brasil, it’s Associated and Affiliated Companies and Subsidiaries. Although these references and statements reflect the management’s belief, it also involves imprecision and high difficult risks to be foreseen, consequently, it may conduct to a different result than the one anticipated here. These expectations are highly depended on market conditions, on the Brazilian economic performance, on the sector and the international market. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation. For further information access www.bb.com.br/ri


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