Banco do Brasil
2Q09
1
1
Economic Environment
Ratio - %
18.0
13.8
13.3
11.3
9.3
5.9
5.7
4.8
4.5
3.1
2005
2006
2007
Selic Interest Rate
2
2008
1H09
IPCA - Price Index
2
Economic Environment
US$ billion
416
281
303
192
222
208.4
206.8
180.3
85.8
53.8 44.7
2005
46.1
2006
40.0
2007
24.7
2008
14.0
1H09
Sovereign Risk - basis points
International Reserves Volume
3
Trade Balance
3
Banking Industry
43.7
41.3
34.2
28.1
52.8
30.2
52.2
47.2
47.8
51.9
2006
2005
54.7
48.1
2007
51.6
45.3
2008
48.4
1H09
Loan Segments - Free Resources %
SFN: Loan / GDP - %
4
Source: Brazilian Central Bank
Businesses
Individuals
4
Loan Segments
Individual Loan Segments¹ - %
14.3
13.1
12.6
14.0
14.7
20.4
25.1
26.8
28.9
30.8
33.1
34.0
30.3
28.3
32.6
28.7
26.6
26.8
26.2
2005
2006
2007
2008
1H09
32.7
Others
Vehicles
5
¹ Referential Credito to Tax Rate
Source: Brazilian Central Bank
Payroll Loan
Credit Cards / Overdraft Account
5
Shareholders General Meeting
Board of Auditors
Board of Directors
Audit Committee
Internal Audit
Board of Officers
VP of
International
Business
and Wholesale
VP of
Cards and New
Retail Business
CEO
VP of
Retail and
Distribution
Foreign
Trade
Cards
Distribution
and Retail
Channels
Wholesale
New Retail
Business
Retail
Insurance.
Pension and
Capitalization
Micro
and Small
Enterprises
International
VP of
Agribusiness
Agribusiness
VP of
Government
VP of
Finance.
Capital Markets
and IR
VP of
Credit.
Controlling
and Risk
Management
Human
Resources
Controlling
Capital
Markets
and Investment
Technology
Employee
Relations
and Social Env.
Resp.
Credit
Investor
Relations
Software
Development
Finance
Pension Fund
Management
High Income
Directorships
VP of
Human
Resources and
Social
Environmentall
Responsability
Logistics
Government
Low Income
6
VP of
Technology
and Logistics
Internal
Controls
Strategy
and
Organization
Security
Management
Legal
Risk
Management
Marketing and
Communication
IT
Infraestructure
Reestructuring
of Operational
Assets
Executive
Secretariat
Operational
Support
Accounting
Units
6
Banco do Brasil
C O N T R O LLED
COBRA
BB
LEASING
BB DTVM
BB-99.36% ON
99.35% Total
BI-0.04% ON
0.04% Total
BB - 100% ON
100% Total
BB
CARTÕES
BANCO DO BRASIL
SECURITIES LLC
BB - 100% ON
100% Total
BB BI
BB - 100% ON
100% Total
BB -100% ON
100% Total
BB -100% ON
100% Total
ATIVOS S.A.
BB
CORRETORA
BB BI - 49% ON
74.50 % Total
BAMB - 51% ON
25.50% Total
BB - 100%ON
100% Total
BB - 100% ON
100% Total
BANCO POPULAR
DO BRASIL
BAMB
BB -100% ON
100% Total
BB
SECURITIES
BAMB -100% ON
100% Total
BB LEASING
Co. LTD
BB
CONSÓRCIOS
BB - 100% ON
100% Total
BB - 100% ON
100% Total
BB TURISMO
BB VIENA
BAMB - 99% ON
BB Leasing - 1% ON
100% Total
BB -100% ON
100% Total
RELATED COMPANIES / PARTICIPATION
BB
BB BI
Strategic Participation
Non-Strategic Participation
Other Participation
Securities Group
CADAM
BRASILCAP
BRASILPREV
BRASIL
VEÍCULOS
VISA VALE
BB
BB BI
BB-BI 49.99% ON
49.99% Total
BB-BI 49.99% ON
49.99% Total
BRASILSAÚDE
BB-BI 40% ON
70% Total
SBCE
ALIANÇA
DO BRASIL
BBBI - 100%ON
100% Total
BB-BI 49.92%ON
49.92% Total
CIBRASEC
35% ON
40.35% Total
VISANET
BB BI
31.63% ON
31.63% Total
BB-BI 12.09% ON
12.09% Total
56.19% PN
21.64% Total
BB-BI 9.09% ON
9.09% Total
TECBAN
BB BI 8.96% ON
8.96% Total
Non-strategic Participation
ITAPEBI
PRONOR
BB-BI 19% ON
19% Total
MANAGED
1.77% PN
1.05% Total
BB-BI
5.51% PN
3.27% Total
BBDTVM 29.51% ON
12.02% Total
KEPLER
WEBER
BB
BB-BI
BBDTVM
18.94% ON
17.65% Total
0.0245% ON
0.0228% Total
NEOENERGIA
BB-BI 8.81% ON
11.99% Total
FOUNDATION
SPONSORED
BB PREVIDÊNCIA
Closed Private
Pension Entity
7
FBB
CASSI
PREVI
7
Ownership Structure
Participation
Free Float - %
Free float: 21.7%
10.6%
21.7
21.5
21.7
10.0
10.2
11.1
11.7
11.3
10.6
2007
2008
1Q09
11.1%
14.8
2.5%
6.9
7.2
10.2%
65.6%
3.4
7.6
3.5
2005
National Treasure
PREVI
8
BNDESPar
Foreign Investors
2006
Others
8
Share’s Performance
Price / Book Value
3.1
2.5
2.0
1.4
1.7
Price / Earnings
14.9
2005
2006
2007
2008
13.6
1H09
8.1
8.7
4.3
2005
9
2006
2007
2008
1H09
9
Share’s Performance
Dividends and Interest on Own Capital / Share – R$
1.4
1.0
0.8
0.6
0.6
Earnings / Share – R$
2005
2006
2007
2008
3.4
1H09
2.4
1.7
2005
10
2.0
1.6
2006
2007
2008
1H09
10
Share’s Performance
211.9%
151.1%
123.1%
96.5%
dec/04
dec/05
Banco do Brasil
11
dec/06
Ibovespa
dec/07
Bradesco
dec/08 jun/09
Itaú
11
Profitability
3.5
32.5
32.1
26.8
34.0
2.4
27.5
22.5
1.5
2.0
1.6
1.6
75.3
8.8
66.5
54.4
52.8
6.0
5.1
4.2
4.0
2005 2006 2007 2008
ROE - %
Net Income - R$ billion
12
4.0
1H08 1H09
37.7
33.7
2005
2006
2007
2008
1H08 1H09
Dividends and Interest on Own Capital - R$ billion
Market Capitalization - R$ billion
12
Capital Structure
Basel
32.4
29.9
17.1
24.3
20.8
5.4
17.3
2006
2007
2008
1H09
Shareholder’s Equity - R$ billion
13
15.2
15.3
4.9
4.3
4.5
5.6
16.8
2005
15.6
11.7
11.7
10.7
10.9
10.8
2005
2006
2007
2008
1H09
Tier I
Tier II
13
Assets
17.3%
16.8%
16.1%
17.6%
20.2%
598.8
521.3
367.7
296.4
253.0
CAGR: 27.9%
2005
2006
Market Share¹ %
14
(1) Until Mar/09 - Source: Brazilian Central Bank
2007
20082
1H09
Assets² - R$ billion
(2) Economic-Financial Consolidated
14
Funding
23.8%
18.9%
19.3%
19.5%
21.4%
412.4
362.0
R$ billion
14.3
208.1
168.2
5.5
35.8
32.8
30.5
5.2
40.1
36.7
49.3
51.9
5.6
51.3
55.0
45.8
91.1
72.3
63.5
76.9
85.5
2005
2006
2007
(¹) Until Dec/08 - Source: SFN
69.0
CAGR (%): 29.2
9.9
149.6
Market Share - %
Time Deposits
15
260.6
7.7
49.1
2008
Money Market Borrowing
Demand Deposits
101.5
23.6
9.4
185.1
41.0
35.8
1H09
Saving Deposits
Others
15
Funding
Funding Cost - as % of Selic
100.0
95.3%
74.2%
62.2%
Saving Deposits
Time Deposits
Judicial Deposits
16
69.1%
59.3%
60.0%
Total Deposits
Money Market Borrowing
Total Funding
16
Loan Portfolio
18.7
16.5
15.3
17.1
16.0
252.5
224.8
R$ billion
15.1
160.8
133.2
12.2
101.8
9.2
51.9
38.5
17
10.6
20.0
103.4
32.6
97.2
45.6
65.5
24.0
32.0
2005
2006
2007
(*)Sep/08 - Domestic Portfolio
CAGR (%): 29.6
63.7
51.9
18.4
Market Share* - %
67.6
11.4
45.1
35.7
13.1
48.8
2008
Individuals
Businesses
68.5
1H09
Agribusiness
Abroad
17
Consumer Finance
R$ billion
68.5
48.8
24.0
0.9
2.2
3.1
18.4
0.2
2.2
2.5
3.8
8.3
9.7
9.5
2005
2006
2007
CAGR (%): 45.6
186.0
7.9
29.5
40.4
17.6
11.9
11.0
Others
Payroll Loans
18
32.0
3.0
2.3
3.8
6.7
2.5
7.6
8.2
2.9
7.8
79.5
14.4
20.0
2008
1H09
Credit Card
Overdraft Account
23.2
Vehicle Loans
18
Credit to Businesses
R$ billion
103.4
97.2
39.5
CAGR (%): 34.8
34.9
65.5
31.3
51.9
37.1
24.6
38.5
18.3
15.4
23.1
2005
33.6
2006
63.9
2008
1H09
40.9
2007
Middle and Corporate Enterprises
19
62.3
SME
19
Credit to Agribusiness
R$ billion
63.7
51.9
45.1
35.8
18.5
67.6
20.2
CAGR (%): 20.0
11.7
47.0
8.5
13.5
5.3
30.5
2005
36.6
2006
Individuals
20
40.2
2007
45.2
47.4
2008
1H09
Businesses
20
Credit Risk
4.7
5.0
3.7
3.6
4.2
9.2
6.8
5.7
5.4
2006
2007
4.5
2005
Provision Expenses/Loan Portfolio¹ - %
21
(1) Average Loan Portfolio and Expenses in the last 12 months.
2008
1H09
Provision Expenses - R$ billion
21
Credit Risk
6.5
6.4
6.1
5.8
3.4
5.4
2.9
5.4
2.7
5.4
2.4
1.1
1.4
1.7
2008
1H09
2.0
2005
(1) Net of Recovery
5.9
3.3
2.5
2006
2007
Additional + Required Provision / Loan Portfolio - %
Past Due Loans + 90 days / Loan Porfolio - %
22
7.0
6.6
Required Provision / Loan Portfolio - %
Losses¹ / Loan Portfolio - %
22
Net Interest Income
24.5
R$ billion
20.8
18.1
16.8
15.5
58.4
33.6
14.4
36.7
15.1
40.0
23.9
31.3
14.7
22.1
34.5
19.2
21.6
2005
2006
25.3
2007
2008
12.2
7.7
14.4
Net Interest Income
23
11.4
1H08
19.1
1H09
Loan Revenues
Other Interest Revenues
23
NIM
18.0
13.3
13.8
11.3
8.6
2005
8.1
7.6
2006
2007
9.3
7.1
2008
Selic - %
6.9
1H09
Annualized NIM by Loan Portfolio - %
30.1
28.7
NIM¹ - %
24
21.0
21.2
6.9
6.7
7.5
5.5
8.4
8.1
6.0
5.5
6.3
5.7
2005
2006
2007
2008
Individuals
(1) Annualized Net Interest Income over Earning Assets
25.4
Businesses
1H09
Agribusiness
24
Productivity
48.1
47.5
46.2
45.3
45.4
42.1
R$ billion
28.9
27.3
13.7
13.1
34.0
30.9
14.3
21.5
15.4
16.6
7.5
2005
2006
2007
2008
1H08
9.1
1H09
Cost/Income Ratio without one-off Itens - %
Administrative Expenses¹
Operating Income¹
25
(1) without one-off itens
25
Productivity
143.2
127.7
102.3
134.7
124.5
112.9
R$ billion
10.5
9.9
8.9
7.5
7.6
7.9
7.8
8.5
6.4
5.8
4.1
2005
2006
2007
2008
1H08
4.7
1H09
Coverage Ratio without one-off Itens - %
Administrative Expenses¹
Fee Income¹
26
(1) without one-off itens
26
Credit and Debit Cards
66.2
30.3
38.6
50.5
37.6
29.9
CAGR (%): 14.4
78.1
76.2
78.9
33.4
68.5
49.3
9.3
55.8
24.9
25.4
52.7
51.2
53.5
2008
1S08
1S09
21.3
8.7
14.1
40.0
41.7
47.2
2005
2006
2007
Revenues – R$ billion
Debit Cards Issued - million
27
25.4
Credit Cards Issued - million
27
Structure
Checking Accounts - million
1H09
32.6
32,2
28,5
28,7
2008
28.5
2007
25.7
2006
24.2
2005
23.0
Individuals
2.2 34.8
1.9 30.4
1.7 27.4
1.6 25.7
CAGR (%): 10.6
10.7
13.8
1.4 24.4
Businesses
Employees - thousand
103.5
1H09
2008
2007
2006
2005
28
89.0
81.9
82.7
83.8
28
Structure
Points of Service - thousand
1H09
12.3
2008
11.6
2007
11.3
4.0
2006
11.1
4.0
2005
10.9
Others
17.2
4.9
4.3
16.0
15.3
15.1
3.9
14.8
Branches
Transaction in Automated Channels - %
29
1H09
91.1
2008
91.1
2007
91.3
2006
90.0
2005
89.2
29
Structure
Distribution Network by Customer
North
Retail
239
Wholesale
2
Government 7
High Income 2
20.7%
Midwest
8.4%
Retail
393
Wholesale
5
Government
5
High Income 10
43.6%
South
30
Northeast
5.1%
Retail
1.060
Wholesale
22
Government
3
High Income
9
22.2%
Retail
996
Wholesale
7
Government
9
High Income 10
Southeast
Retail
2.051
Wholesale
46
Government
5
High Income
47
30
Structure
Internet Banking – million of customers
1H09
9.1
2008
8.6
2007
8.5
2006
8.2
2003
7.9
Transactions per Channels - %
1H08
8.5
5.9
1H09
9.5
8.8
5.9
8.9
38.7
42.7
19.0
18.6
14.4
31
ATM
Internet Individuals
Internet Businesses
Cash
POS
Others
19.1
31
Asset Management
Client Profile
R$ billion
293.9
246.3
220.1
Wholesale
9.1%
Foreign
Investors
4.5%
Institutional
Investors
39.9%
Government
23.5%
182.7
153.5
Retail
23.0%
Investment Profile
Others
12.9%
CAGR: 20.4%
2005
32
2006
2007
2008
1H09
Equities
16.0%
Fixed Income
53.1%
Multimarket
18.0%
32
Insurance - Added Value
R$ million
1,511
1,130
1,209
889
848
760
CAGR: 19.3%
2005
33
2006
2007
2008
1H08
1H09
33
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
34
34