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1 Banco do Brasil S.A. 2006. 2 Economic Environment Ratios %

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Presentation on theme: "1 Banco do Brasil S.A. 2006. 2 Economic Environment Ratios %"— Presentation transcript:

1 1 Banco do Brasil S.A. 2006

2 2 Economic Environment Ratios %

3 3 Industry Outlook 34.3 31.2 26.9 26.2 24.2 20022003200420052006 Loan / GDP (%)Number of Banks 166 164 163 160 158

4 4 Loan Segments IndividualsBusinesses 36.8 39.5 43.6 47.2 47.9 63.2 60.5 56.4 52.8 52.1 20022003200420052006 Participation - %

5 5 Loan Segments Payroll Loan Credit Card / Overdraft Account Vehicles Others 53.7 55.1 47.2 45.1 42.7 30.9 29.7 27.5 26.6 15.415.2 13.0 11.7 10.6 12.4 16.6 20.2 20022003200420052006 Participation - %

6 6 Banco do Brasil Structure COBRA BB-99.36% ON 99.34% 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-99.996% ON 99.996%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 VISA VALE BB BI 35% ON 37.47% Total PRONOR BB BI 0% ON 3.27% Total Strategic Partnerships Non-Strategic Partnerships BRASIL VEÍCULOS BB-BI 40% ON 70% Total NEOENERGIA BB-BI 7.67 ON 7.67 Total TECBAN BB BI 8.96% ON 8.96% Total CLEARINGS CIP - BB 9.80% BMF Câmbio BMF Ativos CBLC - BB 1.59% BMF Derivativos B Strategic Partnerships CADAM BB 0% ON 21.64% Total Non-Strategic Partnerships Banco do Brasil Other Partnerships Affiliated Companies B B B I Wholly Owned Subsidiaries BANCO POPULAR DO BRASIL BB -100% ON 100% Total

7 7 Organizational Structure Board of Officers Units Directorships Autonomous Departments Agribusiness Commercial Controlling Investor Relations Marketing and Communication Legal Distribution and Retail Channels Finance Executive Secretariat VP of Retail Service and Distribution VP of Rural Businesses and Government Affairs VP of Technology and Logistic VP of Credit, Controlling and Risk Management VP of Finance, Capital Market and Investor Relations Board of Directors General Shareholders Meeting CEO Board of Auditors Audit Committee Information Technology Micro and Small Businesses Employee Relation And Social-Env. Responsibility VP of Human Resources and Social-Enviro- nmental Responsibility Government Affairs Retail Services Capital Markets and Investments Technology Human Resources Credit Internal Controls Foreign TradeInternational Software Development Security Management Strategy and Organization Risk Management High Income Logistic Regional Sustainable Development VP of International Business and Wholesale Accounting Restructuring of Operational Assets Internal Audit Operational Support Pension Fund Management

8 8 Banco do Brasils Shares

9 9 Shares Performance

10 10 Shares Performance Earnings - % IbovespaBanco do Brasil dec/01jun/02dec/02jun/03dec/03jun/04dec/04jun/05dec/05jun/06dec/06 513.8 169.8

11 11 PerformancePerformance 2,028 2,381 3,024 4,154 6,044 20022003200420052006 22.6 22.3 23.0 26.8 32.1 Net Income - R$ million ROE - % 6,696 17,568 25,979 33,733 52,820 Market Capitalization - R$ million 20022003200420052006 579 74 6 95 4 1,498 2,418 Dividends / Interest on Capital - R$ million

12 12 Capital Structure 20022003200420052006 Shareholders Equity - R$ million Level 1 - % 2002200320042005 2006 BIS Ratio -% 9,197 12,172 14,106 16,850 20,758 17.3 17.1 15.2 13.7 12.2 8.4 9.7 10.6 11.7 3.8 4.0 4.6 5.4 5.6 Level 2 - %

13 13 HighlightsHighlights 204.6 230.1 239.0 253.0 20022003200420052006 14.8 15.1 16.5 17.3 16.3 Market Share¹ - % 20022003200420052006 Loan Portfolio - R$ billion Market Share - % Assets - R$ billion 296.4 CAGR: 9.7% 62.9 77.6 88.6 101.8 133.2 CAGR: 20.6% 13.7 16.7 15.3 15.9 16.3 (1) Domestic portfolio

14 14 HighlightsHighlights 20022003200420052006 Market Share - % 200220032004 20052006 Assets Under Management - R$ billion Market Share - % Deposits - R$ billion 97.3 110.0 115.5 137.7 20.3 20.2 22.4 20.9 66.2 102.7 124.0 153.5 182.7 CAGR: 28.9% 19.1 20.2 19.7 19.0 17.4 158.8 CAGR: 13.0%

15 15 Customers - million Employees - thousand HighlightsHighlights 14.4 17.5 19.7 21.5 22.8 1.0 1.2 1.4 1.6 IndividualsBusinesses 2002 2003 2004 2005 200624.4 22.9 15.4 21.1 18.8 CAGR: 12.0% 12.2% 75.9 78.0 79.7 83.8 82.7 2002 2003 2004 2005 2006

16 16 Administrative Expenses - R$ billionOperational Income - R$ billion 57.9 55.8 54.2 48.1 47.5 ProductivityProductivity Efficiency Ratio - % 9.6 11.3 12.6 13.1 13.7 16.7 20.3 23.2 27.3 28.9 20022003200420052006 CAGR: 9.3% 14.8%

17 17 4.5 5.5 6.6 7.6 8.9 5.5 6.8 7.1 7.5 7.9 20022003200420052006 Fee Income - R$ billion Personnel Expenses - R$ billion Coverage Ratio - % ProductivityProductivity 80.3 80.6 93.1 102.3 112.9 CAGR: 9.1% 18.9%

18 18 FundingFunding Demand Deposits24,34227,14028,99135,80240,059 Saving Deposits26,91827,42531,06932,84436,714 Time Deposits42,11748,17349,66563,49576,900 Interbank Deposits3,8767,2755,7685,3834,878 Investment Deposits--38134289 Money Market Borrowing48,32740,06344,52730,50849,283 Total145,581 150,077 160,058 168,167 208,124 20052006200420022003 Funding - R$ million

19 19 Loan Portfolio IndividualsSMEMedium/CorporateAgribusinessesForeign Trade 2005 - % 2006 - % 18.1 15.2 22.7 35.1 9.0 18.0 13.8 25.2 33.8 9.1 R$ billion 200420052006 2005 - % Total Portfolio88.6 101.8 133.2 30.8 Domestic79.5 92.6 121.0 30.6 Individuals16.1 18.4 24.0 30.5 Free Resources14.4 16.7 22.7 35.8 Payroll Loan1.5 3.8 8.3 117.8 Vehicles0.3 0.2 0.9 376.0 Businesses33.4 38.5 51.9 34.8 SME13.2 15.4 18.3 18.7 Medium and Corporate20.2 23.1 33.6 45.5 Agribusinesses30.0 35.7 45.1 26.2 Abroad9.0 9.2 12.2 32.7

20 20 DelinquencyDelinquency 5.6 6.1 6.6 3.3 4.0 2.9 5.4 4.1 5.6 4.7 5.9 4.6 3.0 3.3 dec/02dec/03dec/04dec/05dec/06 Allowance / Loan Portfolio - % Past Due Loans + 15 days / Loan Portfolio - % Past Due Loans + 60 days / Loan Portfolio - %

21 21 Delinquency - Individuals 14.2 14.5 13.8 7.3 7.2 7.8 7.6 7.5 6.8 6.3 14.0 12.9 12.1 12.8 14.5 13.9 10.5 6.7 8.5 dec/05may/06jun/06sep/06dec/06 Banking Industry Banco do Brasil Banking Industry Banco do Brasil Past Due Loans + 15 days - %Past Due Loans + 90 days - %

22 22 LoanLoan 12.6 16.0 27.5 31.0 40.4 20022003200420052006 14.0 16.2 12.2 13.9 21.7 20022003200420052006 Retail Loan - R$ billionCommercial Loan - R$ billion

23 23 LoanLoan 20022003200420052006 7.6 7.4 8.0 9.6 11.0 20022003200420052006 5.5 7.6 9.0 11.9 12.1 Foreign Trade Loan - R$ billion Contracted Amount ACC / ACE - US$ billion

24 24 LoanLoan 16.8 27.2 30.0 35.7 45.1 20022003200420052006 Agribusiness Loan - R$ billion 1,743 2,413 3,217 4,342 4,802 20022003200420052006 Pronaf - R$ million

25 25 RetailRetail Credit Cards Revenue - R$ billion¹ 20022003200420052006 Credit Cards Issued - million 13.5 18.1 24.3 31.6 38.8 14.1 9.3 6.9 5.3 4.7 (1) Banking Cards revenue included

26 26 InsuranceInsurance Managed Portfolio - R$ million 20022003200420052006 Cars Insured - thousand 136.1 171.8 238.7 318.5 367.0 676 625 578 500 445 Vehicle Insurance

27 27 InsuranceInsurance 441.6 570.5 680.6 717.1 820.1 Managed Portfolio - R$ million 20022003200420052006 Lives Insured - thousand 1,748 1,417 1,351 1,263 1,224 Life Insurance

28 28 InsuranceInsurance 3,785 5,586 7,781 9,659 12,473 Managed Portfolio - R$ million 20022003200420052006 Participants - thousand 886 1,178 1,365 1,576 1,756 Pension Fund

29 29 InsuranceInsurance 1,549 2,060 2,264 2,875 2,788 20022003200420052006 Quantity of Plans - thousand 2,631 2,661 2,792 2,949 1,653 Capitalization (Annuity Plans) Managed Portfolio - R$ million

30 30 Northeast Branches 993 Others2,882 Total 3,875 Branches 1,534 Others 3,927 Total 5,461 Branches 810 Others 2,096 Total 2,906 Branches 390 Others1,326 Total 1,716 Branches 242 Others 913 Total 1,155 North Midwest South Southeast Distribution Network Infrastructure and Technology

31 31 Infrastructure and Technology Branches Others Points of Service - thousand 2002 2003 2004 2005 2006 12.3 13.2 14.4 14.8 15.1 39.7 40.2 39.0 37.0 33.6 3.2 3.7 3.9 4.0 9.2 10.0 10.7 10.9 11.1 Automated Teller Machine (ATM) - thousand 2002 2003 2004 2005 2006

32 32 84.1 86.4 88.4 89.2 90.0 Transaction in Automated Channels - % 2002 2003 2004 2005 2006 48.3 12.7 16.6 10.8 7.7 3.9 ATM Internet Banking Cashier POS Others Breakdown of Transactions - % 47.1 12.7 17.5 10.0 9.0 3.8 2005 2006 Individuals Businesses Infrastructure and Technology

33 33 Sustainable Regional Development 200420052006 2005 - % Amount Contracted - R$ million 13.6 105.4 313.8 197.7 Benefited Families (thousand) 16.8 70.6 230.9 227.2 Involved Branches 428 1,482 2,502 68.8 Skilled Employees 1,370 4,062 6,052 49.0 Served Municipalities 642 1,503 2,788 85.5 Approved Business Plans 120 375 1,020 172.0 Productive Activities 40 70 - 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.

34 34 Banco do Brasils Foundation 20 thousand producers at apiculture, handmade, caju culture, manioc culture, sheep and goat livestock farming, recycles Productivity Chains AABB Comunidade Program Supported 50 thousand children in 2006 Supported 65 thousand people in 2006 BB Educar Program Social Investment: R$ million 2003200420052006 Education21.0 26.5 28.2 20.5 Job and Income21.1 47.7 74.3 77.5 Total42.1 74.1 102.4 98.1 Projects5611,357 1,154 1,013

35 35 HighlightsHighlights

36 36 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, its Associated and Affiliated Companies and Subsidiaries. Although these references and statements reflect the managements 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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