Banco do Brasil
1Q10
1
Disclaimer
The tables and charts in this presentation show the financial numbers, rounded, in
R$ millions. The columns of variation and the totalizers expand upon the financial
figures and not the rounded numbers in R$ millions. The used roundings follows the
rules established by Resolution 886/66 of Foundation IBGE: If the last digit is less
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.
Banco do Brasil is doing a stock offering. Read carefully the Offering
Memorandum, specially the "Risk Factors" section.
2
Economic Environment
Price Index IPCA¹ - %
Interest Rate Selic² - %
5.9
5.2
4.5
13.75
13.25
11.25
4.3
8.75
8.75
2009
Mar/10
3.1
2006
2007
2008
2009
Mar/10
(1) 12 months
Sorce: IBGE
2006
2006
2008
(2) End of Period
Source: Central Bank
Total Payroll Index³
107.5
2007
112.8
2007
(3) Base 100 May/2002
Source: IBGE
120.6
2008
123.2
2009
Unemployment4 - %
125.7
Mar/10
10.0
2006
9.3
2007
(4) 12 months average
Source: IBGE
7.9
8.1
7.8
2008
2009
Mar/10
3
Banking Industry
Banking Industry Loan Portfolio - R$ trillion
45.0
39.7
Banking Industry Loan Operations¹ - R$ billion
112.3
45.0
70.1
0.8
0.8
0.8
0.6
0.6
0.3
0.3
0.4
0.6
0.6
2006
2007
2008
2009
1Q10
Public
Loan/GDP - %
2006
59.9
50.0
49.4
43.0
2007
2008
2009
Individuals
Private
Businesses
7.2
6.7
6.2
157.1
5.5
163.1
5.3
4.4
139.1
111.6
77.4
2006
64.7
3.7
106.2
114.8
3.2
4.0
3.2
78.9
45.8
63.3
91.9
100.8
2007
2008
2009
1Q10
Vehicle
1Q10
Credit Risk
Consumer Loans² - R$ billion
48.1
35.7
105.3
86.8
33.4
30.2
105.5
100.3
Mortgage
(1) Loan as reference for interest rate
(2) Free Resources Source: Central Bank
Payroll
2006
2007
2008
2009
1Q10
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
VP of
Government
Foreign
Trade
Cards
Distribution
and Retail
Channels
Agribusiness
Government
Commercial
Loans and
Financing
International
VP of
Credit,
Controllership
and Global Risk
VP of
Finance,
Capital Markets
and IR
VP of
Technology
and Logistics
VP of
People Management
and Sustainable
Development
Finance
Logistics
People
Management
Controllership
Internal
Controls
Retail
Capital
Markets
and Investment
Technology
Relations with
Employees and
Sponsored
Entities
Credit
Strategy
and
Organization
Insurance,
Pension Plans and
Capitalization
Micro
and Small
Enterprises
Investor
Relations
Software
Development
Pension Fund
Management
São Paulo
Distribution
IT
Infraestructure
Reestructuring
of Operational
Assets
Legal
High Income
Operational
Support
Accounting
Marketing and
Communication
Sustainable
Development
Risk
Management
Security
Management
Executive
Secretariat
Channel
Mannagement
Directorships
Units
Position: Mar.31, 2010
5
Banco do Brasil
National Treasury
51,8991 %
BNDESPAR
2,4285 %
Businesses
4,7951 %
Treasury Stock
0,1099 %
Export Guarantee Fund
8,9266 %
Naval Constr. Garantee Fund 1,7511%
CONTROLLED
COBRA
BB
LEASING
BB-99,88% ON
99,94% Total
BI-0,00653% ON
0,00327% Total
BB - 100% ON
100% Total
BB
CONSÓRCIOS
BB
CORRETORA
BB - 100% ON
100% Total
BB DTVM
BB -100% ON
100% Total
NOSSA CAIXA
ADM. DE CARTÕES
BB - 100%ON
100% Total
BB ALIANÇA
PARTICIPAÇÕES
BB SEGUROS
PARTICIPAÇÕES
BB – 100% ON
100%Total
BB – 100% ON
100%Total
AFFILIATED
BB -100% ON
100% Total
NOSSA CAIXA
CAPITALIZAÇÃO
BB – 100% ON
100% Total
BB – 100% ON
100% Total
BB
CARTÕES
BB BI
BB - 100% ON
100% Total
BB - 100% ON
100% Total
BANCO POPULAR
DO BRASIL
BB -100% ON
100% Total
BB -100% ON
100% Total
BANCO DO
BRASIL AG
VIENA
BB LEASING
Co. LTD
BAMB
BB - 100% ON
100% Total
BB -100% ON
100% Total
BANCO DO BRASIL
SECURITIES LLC
ATIVOS S.A.
BB - 100% ON
100% Total
BB
SECURITIES
BB BI - 49% ON
74,50 % Total
BAMB - 51% ON
25,50% Total
BB USA HOLDING
COMPANY, INC.
BB AG -100% ON
100% Total
BB TURISMO
BAMB - 99% ON
BB Leasing - 1% ON
100% Total
BAMB -100% ON
100% Total
BB MONEY
TRANSFERS, INC.
BB USA HoldCo-100% ON
100% Total
C O M P A N I E S / BB BI H O L D I N G S
BB ALIANÇA PARTICIPAÇÕES
BB SEGUROS PARTICIPAÇÕES
BB BI
BANCO DO BRASIL
Strategic Participation
Aliança do
Brasil
100% ON
100% Total
BESCVAL
BESCREDI
BESCLEASING
Previ
10,3720 %
Individuals
5,2918 %
Foreign Capital
11,7275 %
PPP Guarantee Fund
2,3348%
FGHAB Fund
0,0652%
Investment Gar. Fund
0,2918%
Strategic Participation
Non-strategic Participation
SBCE
Insurance Group
ITAPEBI
PRONOR
BB
1,77% PN
1,05% Total
5,51% PN
3,27% Total
BBDTVM 29,51% ON
12,02% Total
BB-BI
BRASILCAP
BRASILPREV
BB-BI 19% ON
19% Total
BB-BI 12,088% ON
12,088% Total’’
Participações
Strategic Estratégicas
Participation
BANCO
VOTORANTIM
BB 49,99% ON
BANCO
50% Total
VOTORANTIM
BB
BB Seguros 49,99% ON
49,99% Total
Other Participation
BB Seguro 49,99% ON
49,99% Total
KEPLER
WEBER
BB-BI
EBP
BRASILSAÚDE
BB Seguros 49,99% ON
49,99% Total
BRASIL
VEÍCULOS
BBDTVM
BB BI
11,11% ON
11,11 Total
BB-BI 8,81% ON
11,99% Total
BB Seguros 40% ON
70% Total
CIELO
BB BI
MANAGED
18,94% ON
17,65% Total
0,0245% ON
0,0228% Total
NEOENERGIA
FOUNDATION
SPONSORED
FBB
CASSI
23,54% ON
23,54% Total
CIBRASEC
BB-BI 9,09% ON
9,09% Total
3,03% ON
3,03 % Total
BB
VISA VALE
BB BI
35,00% ON
40,35% Total
TECBAN
BNC 49% ON
49% Total
Participação Não Estratégica
Non-strategic Participation
CADAM
CADAM
BB
BB BI 13,53% ON
13,53%% Total
49,99% ON
50% Total
MAPFRE
NOSSA
CAIXA
56,19% PN
Total
BB21,64%
56,19%
PN
21,64% Total
BB PREVIDÊNCIA
Closed Private
Pension Entity
PREVI
Position: Mar.31, 2010
6
Ownership Structure
Participation
Free Float - %
Free float: 21,9%
14.8
10.2
11.7
21.7
21.5
21.8
21.9
11.7
10.2
10.0
10.2
10.0
11.3
11.8
11.7
2007
2008
2009
Mar/10
7.6
2.4
7.2
10.4
65.3
2006
National Treasury
BNDESPar
PREVI
Others
Foreign Investors
7
Share’s Performace
Price / Book Value
Dividends and Interest on
Own Capital / Share – R$
3.1
2.5
2.1
1.4
2.0
1.0
1.3
1.6
0.8
0.4
2006
2007
2008
2009
1Q10
2006
2007
Earnings / Share – R$
3.4
2.5
4.0
8.6
(1) Profit in 12 months
2008
2009
1Q10
14.9
2.0
2007
2009
Price / Earnings¹
1Q10
7.5
7.1
2009
1Q10
4.3
0.9
2006
2008
2006
2007
2008
8
Share’s Performace
112.2
110.3
90.5
61.2
2005
2006
BB
2007
Bradesco
2008
Itaú
2009 Mar/10
IBOVESPA
9
Profitability
32.1
26.9
32.5
30.7
23.8
2.0
2.4
3.5
4.1
0.7
28.0
0.9
76.7
76.3
75.3
10.1
8.8
52.8
6.0
5.1
1.7
2006
2007
43.3
37.7
2008
2009
ROE - %
Net Income – R$ billion
1Q09
2.4
1Q10
2006
2007
2008
2009
1T09
1Q10
Dividends and Interest on Own Capital – R$ billion
Market Capitalization
10
Assets
R$ billion
16.8
15.6
1
22.0
22.0
708.5
724.9
17.2
521.3
367.2
296.4
CAGR = 31.7%
2006
1 Data as of Dec/09
2007
2008
2009
Mar/10
11
Capital Structure
Basel
36.1
37.6
17.3
29.9
15.6
15.2
5.6
24.3
4.9
2006
2007
2008
2009
Shareholder’s Equity – R$ billion
Mar/10
2006
13.8
4.0
4.3
9.7
9.5
2009
Mar/10
4.3
20.8
11.7
13.7
10.7
10.9
2007
2008
Tier II
Tier I
12
Funding
R$ billion
498.4
500.5
11.8
11.0
56.5
55.0
75.7
78.7
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
2006
2007
160.8
10.2
157.9
43.1
149.6
85.5
26.2
26.5
72.3
76.9
CAGR (%): 31.0
2008
193.5
197.9
2009
Mar/10
Money Market Borrowing
Saving Deposits
Time Deposits
Demand Deposits
33.8
Other
13
Credit Portfolio
16.5
16.0
R$ billion
133.2
12.2
224.8
160.7
11.4
20.1
19.8
300.8
305.6
17.3
17.5
66.4
64.9
CAGR (%): 29.1
15.1
11.8
63.7
11.9
125.3
128.1
32.0
51.9
45.1
51.9
17.1
52.8
97.2
65.5
24.0
32.0
48.8
2006
2007
2008
Market Share² - %
(1) Portfolio Balance considering BV
(2) Domestic Credit Portfolio
Businesses
91.8
95.1
2009
Mar/10
Individuals
Agribusiness
Abroad
14
Consumer Finance
91.8
R$ billion
48.8
24.0
2.1
0.9
2.8
9.9
32.0
2.3
3.0
3.8
11.0
2.5
6.7
7.6
1.5
2.4
95.1
1.9
2.7
20.7
21.0
9.3
8.9
8.3
11.9
2006
2007
2008
21.2
22.0
42.3
60.3
36.5
38.5
2009
Mar/10
Other
Vehicle Loan
Mortgage
Payroll Loans
Credit Card
Overdraft Accont
* BV and BNC are included since 2009
8.2
162.1
14.4
17.6
CAGR (%): 52.8
27.9
15
Credit to Businesses
125.3
128.1
44.9
45.2
R$ billion
97.2
CAGR (%): 32.0
32.0
65.5
34.9
32.0
51.9
24.6
18.3
80.4
82.9
2009
Mar/10
62.3
33.6
40.9
2006
2007
2008
Middle and Corporate Enterprises
* BV and BNC are included since 2009
SME
16
Credit to Agribusiness
63.7
66.4
64.9
19.2
17.2
R$ billion
51.9
45.1
18.5
CAGR (%): 11.9
8.5
11.7
8.5
24.2
36.6
40.2
2006
2007
45.2
47.3
47.7
2008
2009
Mar/10
Individuals
Businesses
17
Credit to Agribusiness
Working Capital (R$ billion)
11.6
Crop Insurance Breakdown - %
15.5
12.8
38%
37%
50%
59.6%
50%
72.5%
63%
62%
71.9%
Crop 2007/2008
Crop 2008/2009
With insurance
Crop 2009/2010*
39.1%
Without insurance
*until March/2010
Reinsurance
Everest RE
1%
Hannover RE
3%
Catlin RE
3%
75.6%
Demais
10%
IRB
24%
Working Capital
R$ milhões
Mapfre RE
4%
Münchener
Rück do Brasil
10%
Scor RE
15%
Partner RE
15%
Swiss RE
15%
Total
Segurado
% Segurado
North
135.2
80.6
59.6%
Northeast
499.8
362.5
72.5%
Midwest
2,307.7
1,658.8
71.9%
Southeast
4,107.6
1,607.2
39.1%
South
5,779.4
4,371.7
75.6%
Total
12,829.7
8,080.8
63.0%
18
Credit Risk
5.0
4.6
3.7
5,743
2006
3.6
11,629
4.5
3.8
6,800
5,380
2007
2008
2009
2,491
3,026
1Q09
1Q10
Provision Charges / Loan Portfolio¹ - %
6.5
6.4
Provision Charges² - R$ million
2.5
2.7
2.4
6.2
6.0
3.3
3.1
2.2
2.3
2006
6.1
1.4
1.5
2007
2008
2009
2.6
Mar/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
24.5
18.1
20.8
65.3
7.0
58.4
R$ billion
9.4
23.6
36.7
15.1
40.0
23.9
14.7
34.5
21.6
41.7
15.3
25.3
6.3
9.0
2006
2007
Net Interest Income
2008
2009
1Q09
18.6
6.1
12.5
1Q10
Other Interest Revenues
Loans Revenues
20
NIM
NIM by Product
NIM vs. Selic
77.6
28.7
67.0
64.0
25.4
21.0
53.7
55.8
18.7
18.2
15.1
11.9
12.5
9.9
8.4
5.6
8.1
7.6
7.0
6.7
6.5
1Q10
2006
2007
2008
2009
1Q10
8.1
6.9
6.7
7.2
6.7
5.5
6.3
5.1
5.3
2006
2007
2008
2009
Individuals - %
Agribusiness - %
Businesses - %
(1) Net Interest Income over Earning Assets
(2) Annualized
Global NIM¹/Cumulative Selic² - %
Cumulative Selic² - %
Global NIM¹ - %
(3) Includes loan fees from Banco Votorantim
21
Productivity
47.5
45.6
46.2
40.7
42.0
44.9
48.4
35.2
30.9
28.9
19.7
14.3
13.7
16.1
12.8
9.8
4.1
2006
2007
2008
2009
1Q09
5.7
1Q10
Cost / Income Ratio without one-off items - %
Administrative Expenses1
(1) Without one-off items
Operating Income1
22
Productivity
127.7
136.2
128.2
131.9
112.9
118.7
13.5
11.8
8.9
7.9
10.5
9.9
7.8
8.7
2.1
2006
2007
2008
2009
2.9
1Q09
2.9
3.6
1Q10
Coverage Ratio without one-off items - %
Personnel Expenses1
(1)
Without one-off items
Fee Income
23
Credit and Debit Cards
37.9
66.2
50.1
88.6
18.0
24.0
78.1
68.5
25.4
55.8
82.1
26.1
86.4
78.2
28.0
25.2
CAGR (%)
33.1
21.3
14.1
23.5
41.7
47.2
52.7
2006
2007
2008
56.0
53.0
58.4
2009
Mar/09
Mar/10
10.9
Revenues – R$ billion
Credit Cards Issued - million
(1) Dado Anualizado
Debit Cards Issued - million
24
Structure
Employees - thousand
104.0
82.7
2006
81.9
2007
Points of Service - thousand
103.9
89.0
2008
2009
Mar/10
15.1
15.3
16.0
4.0
4.0
4.3
11.1
11.3
2006
2007
4.9
5.0
11.6
13.0
13.1
2008
2009
Mar/10
Others
ATM - thousand
39.7
39.3
39.7
45.4
2007
2008
2009
Branches
Transaction in Automated Channels - %
45.8
91.3
91.1
2007
2008
90.0
2006
18.0
17.9
Mar/10
2006
92.0
91.4
2009
Mar/10
25
Structure
North
5.2%
Northeast
Retail
249
Wholesale
2
Government
7
Private Banking 2
20.9%
Retail
1.011
Wholesale
7
Government
9
Private Banking 11
8.5%
Midwest
44.5%
Retail
403
Wholesale
5
Government 5
Private Banking 10
South
Southeast
20.8%
Retail
998
Wholesale
23
Government
3
Private Banking 10
Retail
2.080
Wholesale
46
Government
6
Private Banking 73
26
Structure
Internet Banking – million of customers
Mar/10
9.5
2009
9.3
2008
8.6
2007
8.5
2006
8.2
Transactions per Channels - %
1Q09
1Q10
6.3
6.0
9.4
8.9
9.1
19.1
40.0
16.6
38.7
8.6
19.4
18.0
ATM
Internet Individuals
Internet Businesses
Cash
POS
Other
27
Asset Management
Customer Profile
Wholesale
9.2%
330.1
R$ billion
Government
25.7%
Foreign
Investor
4.7%
306.7
Institutional
37.0%
246.3
220.1
Retail
23.4%
182.7
Investment Profile
Others
12.6%
CAGR = 20.0%
Equities
15.8%
Fixed Income
57.3%
2006
2007
2008
2009
1Q10
Multi-Strategy
14.3%
28
Credit cards and insurance business boost revenues.
Asset Management¹
Fee Income
Asset Management Fees – R$ million
R$ billion
506.4
531.5
540.1
536.7
445.5
3.4
3.5
3.6
3.6
R$ billion
2.9
293.9
259.3
302.6
306.7
330.1
Δ = 5.8%
Δ = 4.9%
1Q09
2Q09
3Q09
4Q09
1Q10
1Q09
2Q09
3Q09
4Q09
Resultado de Seguridade
Cards Revenues
Insurance Ratio² - %
R$ billion
14.3
21.2
23.7
25.8
24.0
R$ million
18.0
16.3
282.0
14.3
298.5
252.6
217.2
2Q09
(1) Includes BV
3Q09
4Q09
15.2
13.2
240.4
Δ = 8.4%
Δ = 7.3%
1Q09
1Q10
1Q10
1Q09
2Q09
3Q09
4Q09
(2) Insurance Net Income / BB’s Recurring Net Income
1Q10
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]
For futher information access bb.com.br/ir
30