Banco do Brasil
3Q09
1
1
Disclaimer
This presentation may include 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, they also involve
imprecision and high difficult risks to be foreseen, consequently, they may
conduct to a different result than the one anticipated here. These expectations are
highly dependent on market conditions, on Brazil’s economic and banking system
performances, as well as on international market one. Banco do Brasil is not
responsible for bringing up to date any estimate in this presentation.
2
2
Economic Environment
Price Index IPCA¹ - %
Interest Rate Selic² - %
18.00
5.9
5.7
13.75
13.25
4.3
4.5
11.25
3.1
2005
2006
8.75
2007
2008
Sep/09
(1) 12 months
Source: IBGE
2005
2007
2008
Sep/09
(2) End of Period
Source: Brazilian Central Bank
Total Payroll Index³
3
2006
108.2
115.2
120.8
2005
2006
2007
(3) Base 100 Dec/2004
Source: IBGE
128.8
2008
Unemployment Index4 - %
131.4
Sep/09
9.9
2005
10.0
2006
(4) 12 months average
Source: IBGE
9.3
2007
7.9
8.1
2008
Sep/09
3
Economic Environment
Banking Industry Loan Portfolio - R$ trillion
Banking Industry Loan Operations¹ - R$ trillion
1.2
45.7
41.3
30.2
28.1
34.2
1.2
0.9
0.3
0.3
0.6
0.6
0.8
0.8
0.4
2005
2006
2007
2008
Sep/09
0.2
Loan/GDP - %
0.5
0.4
Public
0.9
0.9
1.3
0.7
0.6
1.1
1.0
0.4
2005
2006
2007
Individuals
Private
Consumer Loans³ - R$ billion
0.6
0.6
0.6
0.5
2008
2009²
Businesses
Credit Risk
153.9
7.2
6.4
139.1
77.4
35.7
48.1
2005
2006
Vehicles
4
45.8
3.7
63.3
64.7
78.9
100.5
2007
2008
Sep/09
Mortgage
(1) Loan as Reference for Interest Rate
(2) Projection made over 9- month volume
5.5
111.1
111.6
59.1
29.1
31.7
6.2
2005
Payroll
(3) Free Resources Source: Central Bank
3.7
2006
5.3
3.2
2007
4.4
3.2
2008
Sep/09
Allowance / Loan Portfolio - %
Past Due Loan +90 days / Loan Portfolio - %
4
Shareholders General Meeting
Board of Auditors
Board of Directors
Audit Commitee
Internal Audit
Board of Officers
CEO
VP of
International
Business and
Wholesale
VP of Cards and
New Retail
Business
VP of Retail and
Distribution
VP of
Agribusiness
VP of
Government
VP of Finance,
Capital Markets
and IR
VP of Technology
and Logistics
VP of Human
Resources and
Social
Environmental
Responsability
VP of Credit,
Controlling and
Risk Management
Foreign Trade
Cards
Distribution and
Retail Channels
Agribusiness
Government
Finance
Logistics
Human
Resources
Controlling
Internal
Controls
Wholesale
Consumer
Lending and
Finance
Retail
Pension Fund
Management
Capital Markets
and Investment
Technology
Employee
Relations and
Sponsored
Companies
Credit
Strategy and
Organization
Internationall
Insurance,
Pension and
Capitalization
SME
Investor
Relations
Software
Development
Risk
Management
Security
Management
Sustainable
Development
High Income
IT
Infrastructure
Restructuring of
Operational
Assets
Legal
Chanel
Operational
Support
Accounting
Marketing and
Communication
Executive
Secretariat
5
Directorships
Units
5
CONTROLLED
COBRA
BB-99,36% ON
99,35% Total
BI-0,04% ON
0,04% Total
BANCO NOSSA
CAIXA
BB
LEASING
BB DTVM
BB -100% ON
100% Total
BB - 100% ON
100% Total
BB ALIANÇA
PARTICIPAÇÕES
BB –99,32% ON
99,32% Total
BESCVAL
BESCREDI
BESCLEASING
BB -100% ON
100% Total
BB SEGUROS
PARTICIPAÇÕES
BANCO POPULAR
DO BRASIL
BB BI
BB - 100% ON
100% Total
BB - 100% ON
100% Total
BANCO DO BRASIL
SECURITIES LLC
ATIVOS S.A.
BB
CONSÓRCIOS
BB - 100% ON
100% Total
BB - 100% ON
100% Total
BB
SECURITIES
BB BI - 49% ON
74,50 % Total
BAMB - 51% ON
25,50% Total
BB - 100%ON
100% Total
BB LEASING
Co. LTD
BAMB
BB -100% ON
100% Total
BB -100% ON
100% Total
BB
CORRETORA
BB - 100% ON
100% Total
BB – 100% ON
100%Total
BB - 100%ON
100% Total
BB
CARTÕES
BB TURISMO
BB VIENA
BAMB - 99% ON
BB Leasing - 1% ON
100% Total
BAMB -100% ON
100% Total
BB -100% ON
100% Total
NOSSA CAIXA
ADM. DE CARTÕES
BNC 100% ON
100% Total
RELATED COMPANIES / PARTICIPATION
BANCO NOSSA CAIXA
BB SEGUROS PARTICIPAÇÕES
Strategic Participation
MAPFRE NOSSA
CAIXA
BNC 49% ON
49% Total
BANCO DO BRASIL
BB BI
Strategic Participation
Strategic Participation
Grupo Seguridade
ITAPEBI
SBCE
BRASILCAP
BRASILPREV
BB-BI 19% ON
19% Total
BB-BI 12,088% ON
12,088% Total’’
KEPLER
WEBER
BB Seguro 49,99% ON
49,99% Total
BB ALIANÇA PARTICIPAÇÕES
BB-BI
BRASILSAÚDE
BB Seguros 49,99% ON
49,99% Total
100% ON
100% Total
BRASIL
VEÍCULOS
BBDTVM
Other Participation
1,77% PN
1,05% Total
5,51% PN
3,27% Total
BBDTVM 29,51% ON
12,02% Total
BB
49,99% ON
50% Total
BB-BI 8,81% ON
11,99% Total
Non-Strategic Participation
CADAM
VISANET
F OUNDATION
BANCO
VOTORANTIM
NEOENERGIA
BB Seguros 40% ON
70% Total
BB BI
MANAGED
18,94% ON
17,65% Total
0,0245% ON
0,0228% Total
Strategic Participation
PRONOR
BB
BB-BI
BB Seguros 49,99% ON
49,99% Total
Aliança do
Brasil
Non-Strategic Participation
31,63% ON
31,63% Total
CIBRASEC
BB-BI 9,09% ON
9,09% Total
VISA VALE
BB BI
35,00% ON
40,35% Total
TECBAN
BB
BB BI 8,96% ON
8,96% Total
56,19% PN
21,64% Total
SPONSORED
BB PREVIDÊNCIA
Entidade Fechada de
Previdência Privada
6
FBB
CASSI
PREVI
6
Ownership Structure
Participation
Free Float - %
Free float: 21.8%
10.1%
21.7
21.5
21.8
10.0
10.2
11.7
11.7
11.3
10.1
2007
2008
Sep/09
11.7%
14.8
2.5%
6.9
7.2
10.4%
65.4%
3.4
7.6
3.5
2005
National Treasure
PREVI
7
BNDESPar
Foreign Investors
2006
Others
7
Share’s Performance
Price / Book Value
Dividends and Interest on
Own Capital / Share – R$
3.1
1.4
2.4
2.5
1.0
2.0
1.4
0.8
0.6
0.3
2005
2006
2007
2008
3Q09
2005
2006
2007
2008
3Q09
Price / Earnings
Earnings / Share – R$
14.9
3.4
2.4
1.7
8.1
2.0
9.0
8.7
4.3
0.8
2005
8
2006
2007
2008
3Q09
2005
2006
2007
2008
3Q09
8
Share’s Performance
270.3%
269.8%
177.3%
139.2%
dec/04
dec/05
Bradesco
9
dec/06
dec/07
Banco do Brasil
dec/08
Itaú
sep/09
Ibovespa
9
Profitability
32.5
32.1
26.8
31.0
3.5
25.9
22.5
1.5
2.4
2.3
2.0
80.2
75.3
58.4
8.8
6.0
4.2
6.0
5.1
ROE - %
Net Income - R$ billion
10
52.8
5.9
2005 2006 2007 2008
2.4
9M08 9M09
37.7
33.7
2005
2006
2007
2008
Sep/08 Sep/09
Dividends and Interest on Own Capital - R$ billion
Market Capitalization - R$ billion
10
Capital Structure
Basel
33.7
29.9
17.1
24.3
17.3
15.6
20.8
5.4
16.8
15.2
13.0
5.6
4.9
4.3
3.9
2005
2006
2007
2008
3Q09
Shareholder’s Equity - R$ billion
11
11.7
11.7
10.7
10.9
2005
2006
2007
2008
Tier I
9.1
3Q09
Tier II
11
Assets
19.7
17.3
16.8
16.1
17.6
685.7
521.3
367.2
296.4
253.0
CAGR: 30.5%
2005
2006
2007
Market Share¹ %
12
1 Position of Jun/09
Source: Brazilian Central Bank - Consolidado Bancário I and II, without BNDES
2008
Sep/09
Assets² - R$ billion
2 Including BV and Nossa Caixa
12
Funding
23.6
19.3
18.9
19.5
21.4
480.6
R$ billion
9.9
260.6
168.2
5.5
35.8
32.8
30.5
63.5
208.1
5.2
40.1
36.7
49.3
5.6
51.3
45.8
76.9
85.5
2006
2007
2005
Market Share¹ - %
Time Deposits
13
1 Posição do SFN de Jun/09
362.0
50.1
14.3
51.9
72.2
55.0
153.6
CAGR (%): 25.0
16.9
23.4
9.4
91.1
53.9
72.3
149.6
2008
Money Market Borrowing
Demand Deposits
194.7
34.8
3Q09
Saving Deposits
Others
13
Funding
Total Funding
69.7
Total Deposits
73.9
71.1
412.4
60.9
480.6
310.8
= 42.3%
= 52.5%
Jun/09
Sep/09
Savings Deposits
64.4
71.3
66.3
Sep/08
Sep/09
81.3
81.2
76.3
185.1
194.7
127.6
52.7
= 52.6%
= 37.1%
14
Jun/09
Time Deposits
72.2
69.0
Sep/08
327.0
229.8
315.1
Sep/08
66.1
62.4
Jun/09
Sep/09
Balance – R$ billion
Sep/08
Cost - % Selic
Jun/09
Sep/09
14
Loan Portfolio
20.1
15.3
16.5
16.0
17.1
285.5
14.8
R$ billion
224.8
15.1
160.7
101.8
9.2
35.7
38.5
18.4
2005
133.2
11.4
12.2
51.9
45.1
51.9
15
1 Domestic Portfolio
68.1
13.5
63.7
18.8
117.0
34.5
97.2
50.8
65.5
24.0
32.0
48.8
2006
2007
2008
Market Share¹ - %
CAGR (%): 31.7
Individuals
Businesses
85.7
Sep/09
Agribusiness
Abroad
15
Consumer Finance
R$ billion
85.7
1.3
19.3
48.8
6.7
2.5
7.6
32.0
24.0
9.5
11.0
14.4
20.3
2006
2007
2008
3Q09
0.2
2.2
2.5
3.8
9.7
Others
Payroll Loans²
16
1 Including BV
2 Including BNC
34.0
17.6
0.9
2.2
3.1
8.3
Credit Cards
Overdraft Account
238.2
7.6
3.0
2.3
3.8
11.9
18.4
2005
2.9
8.0
CAGR (%): 50.7
36.4
79.4
21.8
Vehicle Loans¹
Mortgage
16
Credit to Businesses
R$ billion
103.4
97.2
41.2
CAGR (%): 30.1
34.9
65.5
30.0
51.9
37.3
24.6
38.5
18.3
75.8
15.4
23.1
2005
62.3
33.6
2006
40.9
2007
Middle and Corporate Enterprises
17
2008
3Q09
SME
17
Credit to Agribusiness
R$ billion
63.7
51.9
45.1
35.8
18.5
68.1
20.5
CAGR (%): 18.7
11.7
43.4
8.5
12.6
5,3
30.5
2005
36.6
2006
Individuals
18
40.2
2007
45.2
47.6
2008
3Q09
Businesses
18
Agribusiness
Working Capital
08/09 Crop
R$ 15.5 billion
Crop Insurance Breakdown - %
09/10* Crop
R$ 5.6 billion
64.3%
63.5%
61.6%
38.4%
66.7%
33.3%
74.6%
39.8%
With insurance
Without insurance
74.9%
*until September/2009
Reinsurance
19
%
IRB
24
SCOR
15
SWISS RE
15
PARTNER RE
15
MÜNCHENER RÜCK 10
MAPFRE RE
4
OTHERS
7
Total
90
R$ million
North
Northeast
Mid-West
Southeast
South
Total
Working Capital
Total
Insured
32.2
20.7
109.2
69.3
929.4
693.2
1,258.2
500.8
3,326.2
2,489.8
5,655.2
3,773.8
% Insured
64.3%
63.5%
74.6%
39.8%
74.9%
66.7%
19
4.7
5.0
Credit Risk
4.7
3.7
3.6
8,679
5,378
2006
2007
4,527
2005
6,800
5,743
2008
Provision Charges² - R$ million
3Q09
6.6
6.5
6.4
3.4
2.9
2.7
2.4
1.1
1.4
2007
2008
6.1
6.7
Provision charges / Loan Portfolio¹ - %
2.0
2005
3.6
2.5
2006
2.4
3Q09
Past Due Loans + 90 days / Loan Portfolio - %
Required and Additional Provision / Loan Portfolio - %
20
(1) Average Loan Portfolio and 12 months expenses
(2) Without one-off items
(3) Net of credit recovery
Annualized Net Loss³ / Loan Portfolio - %
20
Net Interest Income
24.1
R$ billion
16.8
15.5
20.8
18.1
11.4
58.4
47.3
33.6
14.4
36.7
15.1
40.0
23.9
38.1
14.7
14.6
34.5
19.2
21.6
25.3
2005
2006
2007
Net Interest Income
21
17.7
23.5
2008
9M08
29.7
9M09
Loan Revenues
Other Interest Revenues
21
Spread
NIM by Product
30.1
NIM vs. Selic
64.0
28.7
53.7
25.4
8.4
22
45.1
21.0
19.8
8.1
6.9
6.7
7.2
6.0
5.5
6.3
5.1
5.3
2005
2006
2007
2008
9M09
Individuals - %
Businesses - %
Agribusinesses - %
(1) Net Interest Income over Earning Assets
(2) Annualized
65.2
56.9
19.0
15.1
11.8
12.5
10.4
8.6
8.1
7.6
7.1
6.8
2005
2006
2007
2008
9M09
Global Spread¹ / Cumulative Selic² - %
Cumulative Selic² - %
Global¹ - %
22
Productivity
48.1
47.5
46.2
45.3
45.7
43.0
R$ billion
34.0
13.7
13.1
2005
30.9
28.9
27.3
2006
33.1
25.2
14.3
2007
15.4
11.5
2008
9M08
14.2
9M09
Cost / Income Ratio without one-off items - %
Administrative Expenses¹
Operating Income¹
23
(1) without one-off items
23
Productivity
140.1
127.7
129.5
124.5
112.9
102.3
R$ billion
10.5
9.9
8.9
7.5
7.6
7.9
7.8
9.9
8.8
8.5
7.6
6.3
2005
2006
2007
2008
9M08
9M09
Coverage Ratio without one-off items - %
Administrative Expenses¹
Fee Income
24
(1) without one-off items
24
Credit and Debit Cards
66.2
30.3
38.6
50.5
17.0
78.1
68.5
49.3
9,3
55.8
85.1
CAGR (%): 15.7
77.0
33.5
27.5
25.4
25,0
52.7
52,0
57.6
2008
3Q08
3Q09
21.3
10.2
14,1
40,0
41,7
47.2
2005
2006
2007
Revenues – R$ billion
Debit Cards Issued - million
25
23.7
Credit Cards Issued - million
25
Structure
Points of Service - thousand
Employees - thousand
83.8
2005
82.7
2006
81.9
2007
89.0
2008
104.1
3Q09
14.8
15.1
15.3
16.0
17.2
3.9
4.0
4.0
4.3
5.0
10.9
11.1
11.3
11.6
12.3
2005
2006
2007
2008
3Q09
Branches
Transaction in Automated Channels - %
ATM - thousand
26
Others
40.2
39.7
39.3
39.7
2005
2006
2007
2008
43.8
89.2
90.0
91.3
91.1
92.2
3Q09
2005
2006
2007
2008
3Q09
26
Structure
Distribution Network by Customer
North
Varejo
246
Atacado
2
Governo
7
Alta Renda 2
20.7%
Midwest
8.4%
Varejo
393
Atacado
5
Governo
5
Alta Renda
11
43.6%
South
27
Northeast
5.2%
Varejo
1,064
Atacado
22
Governo
3
Alta Renda
9
22.1%
Varejo
1,001
Atacado
7
Governo
9
Alta Renda
10
Southeast
Varejo
2,064
Atacado
46
Governo
5
Alta Renda
47
27
Structure
Internet Banking – million of clients
3Q09
9.1
2008
8.6
2007
8.5
2006
8.2
2005
7.9
Transactions per Channels - %
3Q08
8.7
5.8
3Q09
8.8
TAA
5.9
Internet Individuals
9.9
7.8
37.8
40.6
20.2
28
Cash
18.6
14.9
Internet Businesses
POS
21.1
Others
28
Asset Management
Client Profile
R$ billion
311.4
Foreign
Investors
Wholesale 4.5%
10.0%
246.3
220.1
Government
27.0%
Institutional
Investors
36.6%
182.7
153.5
Retail
22.0%
Investment Profile
Others
13.0%
CAGR: 20.8%
2005
29
2006
2007
2008
3Q09
Equities
15.3%
Fixed Income
56.5%
Multimarket
15.2%
29
Cards, Insurance and AUM Businesses
Fee Income
Assets under management¹
R$ billion
8.8
9.9
516.3
241.5
2.9
3.1
2.9
3.4
531.5
506.4
465.4
445.5
246.3
259.3
311.4
293.9
3.5
= 6.0%
= 13.1%
3Q08 4Q08 1Q09 2Q09 3Q09 9M08 9M09
3Q08
4Q08
1Q09
2Q09
3Q09
AUM Fees - R$ million
Credit Cards
Insurance Net Income²
R$ billion
62.9
46.9
Insurance Ratio³ - %
10.7
13.2
14.3
16.3
14.3
15.0
10.8
751.8
17.0
19.4
18.0
R$ million
21.2 23.7
= 34.2%
30
3Q08 4Q08 1Q09 2Q09 3Q09 9M08 9M09
(1) Including BV
217.7 214.7 217.2
543.9
282.0
252.6
3Q08 4Q08 1Q09 2Q09 3Q09
(2) Not including Nossa Caixa
(3) Insurance Net Income / BB’s Recurring Net Income
= 38.2%
9M08 9M09
30
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
bb.com.br
[email protected]
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
31
31