Banco do Brasil
3Q10
1
Disclaimer
The tables and charts in this presentation show the financial numbers, rounded, in
R$ millions. The columns of changes and the totalizers use the financial figures as
basis, not the rounded numbers in R$ millions. The used roundings follows the rules
established by Resolution 886/66 of IBGE: If the last digit is more or equal than 5, it
increases by one unit the last digit to stay; if the last figure is less than 5, the last
digit to stay remains unchanged. The variations in both percentage and nominal,
were calculated using numbers in units.
2
Economic Environment
Price Index IPCA¹ - %
Interest Rate Selic² - %
5.9
4.5
13.75
13.25
4.3
11.25
4.7
10.75
8.75
3.1
2006
2007
2008
2009
9M09
(1) 12 months
Sorce: IBGE
2006
2006
2008
2009
9M10
(2) End of Period
Source: Central Bank
Total Payroll Index³
106.5
2007
111.6
2007
(3) Basis 100 = 2005
Source: IBGE
119.1
2008
121.7
2009
Unemployment4 - %
133.4
10.0
9M09
2006
9.3
2007
(4) 12 months average
Source: IBGE
7.9
8.1
2008
2009
7.1
9M09
3
Banking Industry
Banking Industry Loan Portfolio - R$ trillion
46.7
45.0
39.7
Banking Industry Loan Operations¹ - R$ billion
1,202
33.4
30.2
1,123
1,054
886
844
0.8
0.8
0.9
456
0.6
0.6
0.3
0.4
0.6
0.7
0.3
2006
2007
2008
2009
3Q10
Public
Loan/GDP - %
2006
656
603
567
2007
2008
2009
Individuals
Private
584
9M10
Businesses
Credit Risk
Consumer Loans² - R$ billion
7.2
6.2
176.0
5.5
5.8
5.3
157.1
3.7
139.1
111.6
77.4
4.4
131.8
3.4
3.2
106.2
78.9
48.1
35.7
64.7
63.3
91.9
120.7
45.8
2006
2007
2008
2009
Sep/10
Vehicle
3.2
Mortgage
Payroll
(1) Loan as reference for interest rate – Contracted amount
(2) Free Resources. Source: Central Bank
2006
2007
2008
2009
Sep/10
Allowance / Portfolio - %
Past Due Loan + 90 dias / Loan Portfolio - %
4
Shareholders General Meeting
Board of Auditors
Board of Directors
Audit Committee
Internal Audit
Board of Officers
CEO
VP of
International
Business
and Wholesale
VP of
Retail Business
VP of
Retail and
Distribution
VP of
Agribusiness
and SME
VP of
Government
Foreign
Trade
Cards
Distribution
Agribusiness
Government
Commercial
Loans and
Financing
Retail
Micro
and Small
Enterprises
International
Insurance,
Pension Plans and
Capitalization
São Paulo
Distribution
Pension Fund
Management
Business Suport
and Operations
VP of
Credit,
Controllership
and Global Risk
VP of
Finance,
Capital Markets
and IR
VP of
Technology
VP of
People Management
and Sustainable
Development
Finance
Technology
People
Management
Controllership
Internal
Controls
Capital
Markets
and Investments
Software
Development
Relations with
Employees and
Sponsored
Entities
Credit
Strategy
and
Organization
Investor
Relations
IT
Infrastructure
Risk
Management
Security
Management
Restructuring
of Operational
Assets
Legal
Accounting
Marketing and
Communication
High Income
Sustainable
Development
Executive
Secretariat
Distribution Network
Management
Directorships
Units
Position: September 30, 2010
5
Banco do Brasil S.A.
Finance Ministry
Previ
BNDESPar
Fdo. Garantia à Exp.
CONTROLLED
COBRA
BB
LEASING
BB - 99.88% ON
99.94% Total
BI - 0.007% ON
0.003% Total
BB
CARTÕES
BB - 100% ON
100% Total
NOSSA CAIXA
ADM. DE CARTÕES
BB – 100%ON
100% Total
BB SEGUROS
PARTICIPAÇÕES
BB
CONSÓRCIOS
BB -100% ON
100% Total
BB
CORRETORA
BB – 100% ON
100%Total
Fundo Fiscal de Inv. E Estabilização
Fundo Garantidor para Investimentos
Foreign Capital
Companies
BB DTVM
BB - 100% ON
100% Total
BB ALIANÇA
PARTICIPAÇÕES
51,9%
10,4%
0,0%
4,9%
NOSSA CAIXA
CAPITALIZAÇÃO
BB – 100% ON
100% Total
Individuals
Treasury Shares
BB BI
BANCO DO BRASIL
SECURITIES LLC
BB - 100% ON
100% Total
5,9%
0,0%
ATIVOS S.A.
BB BI - 49% ON
74.50 % Total
BAMB - 51% ON
25.50% Total
BANCO DO
BRASIL AG
VIENA
BB LEASING
Co. LTD
BAMB
BB - 100% ON
100% Total
BB - 100% ON
100% Total
BB – 100% ON
100% Total
2,2%
0,3%
17,0%
7,5%
BB -100% ON
100% Total
BB - 100% ON
100% Total
BB -100% ON
100% Total
BB USA HOLDING
COMPANY, INC.
BB
SECURITIES
BAMB -100% ON
100% Total
BB TURISMO
BB AGViena-100%ON
100% Total
BAMB - 99% ON
BB Leasing - 1% ON
100% Total
BB MONEY
TRANSFERS, INC.
BESCVAL
BB USA HoldCo-100% ON
100% Total
BB – 99.62% ON
99.62% Total
BB – 100% ON
100%Total
RELATED COMPANIES / SHARES
BB ALIANÇA
BB SEGUROS PARTICIPAÇÕES
BB BI
Strategic Interest
Aliança do
Brasil
BB Aliança 100% ON
100% Total
Strategic Interest
SBCE
Insurance Group
BRASILCAP
BB Seguros 49.99% ON
49.99% Total
BANCO DO BRASIL
Participações
Strategic
Estratégicas
Interest
Non-strategic Interest
CIBRASEC
ITAPEBI
PRONOR
BB
BB-BI 12.09% ON
12.09% Total
BRASILPREV
BB-BI 9.09% ON
9.09% Total
BB
3.03% ON
3.03 % Total
BB-BI 19% ON
19% Total
1.77% PN
1.05% Total
BB-BI
5.51% PN
3.27% Total
BBDTVM 29.51% ON
12.02% Total
BANCO VOTORANTIM
BV PARTICIPAÇÕES
BB
BB Seguros 49.99% ON
BB
100% PN
74.99% Total
EBP
KEPLER
WEBER
CBSS
BB-BI
BB BI
BRASIL
VEÍCULOS
11.11% ON
11.11% Total
BB BI
35.00% ON
40.35% Total
BBDTVM
17.57% ON
17.55% Total
0.02% ON
0.02% Total
NEOENERGIA
BB-BI 8.81% ON
8.81% Total
BB 49% ON
49% Total
Participação Não Estratégica
Non-strategic Interest
CADAM
CADAM
TECBAN
BB
BB BI
MANAGED
FOUNDATION
28.65% ON
28.65% Total
49.99% ON
50% Total
MAPFRE
NOSSA
CAIXA
BB Seguros 100% ON
100% Total
CIELO
49.99% ON
BANCO
50% Total
VOTORANTIM
BB BI 13.53% ON
13.53% Total
56.19% PN
Total
BB21.64%
56.19%
PN
21.64% Total
SPONSORED
BB PREVIDÊNCIA
Private Pension Entity
FBB
CASSI
PREVI
FUSESC
SIM
PREVBEP
ECONOMUS
6
Position on September 30, 2010
Ownership Structure
Shareholding Breakdown
Free Float - %
30.4
21.7
Free float: 30.4%
21.5
21.8
13.4
14.8
13.4
11.7
10.2
10.0
7.6
17.0
17.0
11.3
11.8
2007
2008
2009
7.2
59.2
10.4
10.0
2006
Federal Government
Foreign Investors
PREVI
Other
3Q10
7
Share’s Performance
Price / Book Value
Dividends and Interest on
Own Capital / Share – R$
3.1
2.5
2.1
1.9
1.3
2006
2007
2008
2009
9M10
1.4
1.0
2006
2.5
1.2
0.8
2007
Earnings / Share – R$
3.4
1.6
2008
2009
9M10
Price / Earnings¹
4.0
14.9
2.9
8.6
2.0
7.5
7.8
2009
9M10
4.3
2006
2007
(1) Profit in 12 months
2008
2009
9M10
2006
2007
2008
8
Share’s Performace
206.9%
128.1%
110.0%
107.5%
12.4%
09/30/2010
12/31/2005
Banco do Brasil
Bradesco
(1) Since 10/07/2009, date of first operation with Unit SANB11
Itaú Unibanco
Ibovespa
Santander¹
9
Profitability
32.1
32.5
26.9
30.7
24.7
26.1
25.8
19.5
25.9
21.6
2.0
3.5
4.1
2.4
3.1
25.1
22.6
20.0
91.9
76.3
75.3
0.0
R$ billion
80.2
10.1
8.8
6.0
2.4
5.9
5.1
-20.0
8.5
6.7
7.7
52.8
7.0
6.0
37.7
-40.0
5.0
3.7
-60.0
-80.0
2006
2007
2008
2009
9M09
9M10
ROE - %
Recurring ROE - %
Recurring Income
Net Income
2006
2007
2008
2009
9M09
9M10
Dividends and Interest on Own Capital – R$ billion
Market Capitalization – R$ billion
10
Assets
22.0
16.8
15.6
21.2
17.2
796.8
708.5
521.3
367.2
296.4
CAGR = 30.2%
2006
2007
Market Share¹ - %
(1) Source: Central Bank of Brazil
2008
2009
Sep/10
Assets – R$ billion
11
Capital Structure
Basel
48.2
17.3
15.6
15.2
5.6
36.1
4.9
13.7
14.2
4.0
4.0
9.7
10.2
2009
Sep/10
4.3
29.9
24.3
20.8
11.7
2006
2007
2008
2009
Shareholder’s Equity – R$ billion
Sep/10
2006
10.7
10.9
2007
2008
Tier I
Tier II
12
Funding
498.4
R$ billion
11.8
56.5
362.0
14.3
208.1
5.2
40.1
36.7
49.3
260.6
51.9
5.6
51.3
55.0
45.8
91.1
72.3
149.6
76.9
85.5
2006
2007
2008
75.7
11.6
59.0
CAGR (%): 27.3
85.7
24.0
10.9
160.8
165.6
25.4
38.2
193.5
192.0
2009
Sep/10
Money Market Borrowing
Saving Deposits
Time Deposits
Demand Deposits
BV and BNC are included since 2009
513.9
27.6
Other
13
Loan Portfolio¹
16.5
16.0
17.1
R$ billion
20.1
20.0
300.8
339.8
18.0
17.3
224.8
CAGR (%): 28.4
74.0
11.0
66.4
15.1
14.1
160.7
133.2
12.2
11.4
140.5
30.4
125.3
51.9
45.1
51.9
63.7
49.1
97.2
65.5
24.0
32.0
48.8
2006
2007
2008
Market Share² - %
Businesses
(1) Loan Portfolio considering BV and BNC since 2009
(2) Domestic Loan Portfolio / SFN Loan Portfolio
91.8
107.4
2009
Sep/10
Individuals
Agribusiness
Abroad
14
Loans to Individuals
107.4
91.8
1.5
2.4
R$ billion
20.7
48.8
24.0
2.1
0.9
2.8
9.9
8.3
2006
32.0
2.3
3.0
3.8
11.0
2.5
6.7
7.6
14.4
11.9
17.6
2007
2008
2.5
3.0
CAGR (%): 49.1
25.3
10.1
10.4
9.4
24.0
21.2
142.2
41.5
54.4
36.5
42.2
2009
Sep/10
Other
Vehicle Loan
Mortgage
Payroll Loans
Credit Card
Overdraft Accont
26.7
15
BV and BNC are included since 2009
Loans to Companies
140.5
125.3
R$ billion
48.5
97.2
CAGR (%): 30.4
44.9
29.6
65.5
51.9
34.9
30.8
24.6
18.3
80.4
92.0
62.3
33.6
40.9
2006
2007
2008
2009
Middle and Corporate Companies
BV and BNC are included since 2009
Sep/10
SME
16
Loans to Agribusiness
63.7
66.4
R$ billion
26.0
51.9
45.1
74.0
18.5
19.2
CAGR (%): 14.1
7.5
11.7
8.5
34.7
36.6
40.2
2006
2007
45.2
47.3
48.0
2008
2009
Sep/10
Individuals
Businesses
17
Loans to Agribusiness
Crop Insurance Breakdown - %
Working Capital (R$ billion)
11.6
50%
15.5
14.9
7.0
38%
39%
33%
58.4%
66.6%
62%
50%
67%
61%
54.7%
35.7%
Crop 2007/2008 Crop 2008/2009 Crop 2009/2010 Crop 2010/2011*
With insurance
Reinsurance
Without insurance
74.2%
Other
Other
11%
HANNOVER
2%
IRB
30%
MAPFRE RE
9%
CATLIN
3%
MUNICH RE
9%
PARTNER RE
12%
SCOR
12%
SWISS RE
12%
Soybean
Korn
Rice
Wheat
Others
Total
% Mitigated
Costs* Rural Insurance Hedge Price
3.580
66,4%
7,0%
1.223
71,2%
10,1%
765
72,0%
16
87,3%
1.438
37,4%
7.022
62,0%
5,3%
(*) Crop 2010/2011 – up to september 2010
18
Credit Risk
5.0
4.6
3.7
5,743
5,380
2006
2007
4.7
3.8
3.6
11,629
10,919
11,486
2009
Sep/09
Sep/10
6,800
2008
Provision Expenses / Loan Portfolio¹ - %
6.5
6.4
Provision Expenses² - R$ million
6.1
6.2
5.3
2.5
2.7
2.4
1.4
1.5
2007
2008
2.2
2.3
2006
3.3
2009
2.7
1.8
Sep/10
Required and Additional Provision / Loan Portfolio - %
(1) Average Loan Portfolio and 12 months expenses
(2) Without one-off items
(3) Net of credit recovery
Past Due Loans + 90 days / Loan Portfolio - %
Annualized Net Loss³ / Loan Portfolio - %
19
Net Interest Income
33.1
29.0
24.5
18.1
23.8
20.8
65.3
59.5
58.4
R$ billion
23.7
36.7
15.1
40.0
47.3
23.9
19.7
17.7
14.7
34.5
21.6
25.3
2006
2007
Net Interest Income
2008
41.7
39.8
29.7
2009
Other Interest Revenues
9M09
9M10
Loans Revenues
20
NIM
NIM by Product
NIM vs. Selic
28.7
67.0
64.0
25.4
53.7
21.0
67.4
55.8
18.7
16.6
15.1
11.9
12.5
9.9
9.5
5.6
8.1
7.6
7.0
6.7
6.4
9M10
2006
2007
2008
2009
9M10
8.1
6.9
6.7
7.2
6.3
5.5
6.3
5.1
5.3
2006
2007
2008
2009
Individuals - %
Agribusiness - %
Businesses - %
(1) Net Interest Income / Earning Assets
(2) Annualized
NIM¹/Cumulative Selic² - %
Cumulative Selic² - %
NIM¹ - %
21
Productivity
47.5
45.6
46.2
40.7
43.0
44.0
48.4
40.2
35.2
33.1
30.9
28.9
19.7
14.3
13.7
2006
2007
16.1
2008
17.7
14.2
2009
9M09
9M10
Cost / Income Ratio¹ - %
Administrative Expenses1
(1) Without one-off items
Operating Income1
22
Productivity
127.7
136.2
128.2
129.5
119.8
112.9
13.5
11.8
7.9
7.8
2006
10.5
9.9
8.9
2007
11.6
8.7
2008
9.9
9.7
7.6
2009
9M09
9M10
Coverage Ratio¹ - %
Personnel Expenses1
(1) Without one-off items
Fee Income
23
Credit and Debit Cards
37.9
66.2
50.1
88.6
62.9
87.3
55.8
21.3
77.8
62.9
78.1
68.5
77.8
28.0
25.4
25.7
27.7
CAGR (%)
19.8
14.1
41.7
47.2
52.7
59.3
2006
2007
2008
2009
54.2
60.5
9M09
9M10
10.5
Revenues – R$ billion
Credit Cards Issued - million
Debit Cards Issued - million
24
Structure
Employees - thousand
104.0
82.7
2006
81.9
2007
Points of Service - thousand
108.5
89.0
2008
2009
Sep/10
39.7
45.4
2007
2008
2009
5.1
4.0
4.0
4.3
11.1
11.3
11.6
13.0
13.2
2006
2007
2008
2009
Sep/10
44.2
Branches
91.3
91.1
2007
2008
90.0
2006
4.9
15.3
Transaction in Automated Channels - %
ATM - thousand
39.3
18.3
15.1
Other
39.7
17.9
16.0
Sep/10
2006
92.0
91.8
2009
Sep/10
25
Structure
Northeast
Retail:
1,019
Wholesale: 7
Government: 9
Private Banking: 12
5.2%
20.8%
North
Retail:
252
Wholesale: 2
Government: 7
Private Banking: 2
Southeast
8.4%
45.0%
Midwest
Retail:
401
Wholesale: 5
Government: 5
Private Banking: 10
20.6%
Retail:
2,139
Wholesale: 49
Government: 6
Private Banking: 72
South
Retail:
1,000
Wholesale: 23
Government: 3
Private Banking: 10
Position: september 2010
26
Structure
Internet Banking – million of customers
Sep/10
10.7
2009
9.3
2008
8.6
2007
8.5
2006
8.2
Breakdown of transactions - %
3Q09
8.8
3Q10
5.9
6.8
10.7
7.8
37.8
38.1
8.2
18.6
21.1
15.3
21.0
ATM
Internet Individuals
Internet Businesses
Cash
POS
Other
27
Asset Management
Customer Profile
Wholesale
9.8%
Government
25.2%
Foreign
Investor
4.5%
R$ billion
350.9
306.7
Institutional
37.5%
302.6
Retail
23.0%
246.3
220.1
Investment Profile
182.7
Other
12.7%
CAGR = 19.0%
2006
2007
2008
2009 Sep/09 Sep/10
Equities
14.8%
Multi-Strategy
14.1%
Fixed Income
58.4%
28
Asset Management, cards and insurance businesses boost revenues.
Asset Management
Fee Income
Asset Management Fees¹ – R$ million
R$ billion
612.5
575.0
3.5
3.6
3.6
4.1
4.0
531.5
540.1
536.7
R$ billion
302.6
306.7
330.1
4Q09
1Q10
2Q10
350.9
Δ = 15.9%
Δ = 15.0%
3Q09
344.9
3Q10
3Q09
4Q09
1Q10
2Q10
3Q10
(1) Includes BV
Insurance
Card Revenues
14.3
R$ billion
23.7
25.8
28.4
24.0
25.5
13.2
14.5
12.8
298.5
297.7
R$ million
252.6
4Q09
1Q10
2Q10
3Q10
13.5
347.4
240.4
Δ = 19.8%
3Q09
Insurance Ratio² - %
Δ = 37.6%
3Q09
4Q09
1Q10
2Q10
(2) Insurance Net Income / BB’s Recurring Net Income
3Q10
29
Investor Relations Unit
SBS - Quadra 1 - Bloco C - Ed. Sede III - 5° floor
70073-901 - Brasília (DF)
Phone: (61) 3310 3980
Fax: (61) 3310 3735
bb.com.br
[email protected]
30