Company Data Company Name: Banrisul S/A Company Type: Multiple-service bank controlled by the State of Rio Grande do Sul. Incorporated in: September 12th 1928. Incorporated under the Laws of: State Law nº 459/28. Stake of the State: 57.0%. Stake of the State on ordinary stocks: 99.6%. Free float: 43.0% 2 The State of Rio Grande do Sul at a Glance 4th economy of Brazil accouting for 7.0% of the Brazilian GDP; State’s GDP growth in 2007: 7.0% (Brazil’s GDP: 5.2%); 2nd largest industrial expansion in the country; Ranked 3rd among Brazilian states in terms of retail trade growth State’s GDP: R$ 2,556.8 billion / US$ 1,312.6 billion * Data 2007 3 Socioeconomic overview of Rio Grande do Sul Indicators Venezuela Colombia GuyanaSuriname French Guiana Ecuador RS Brazil Population 10,963,219 186,770,562 Area (km2) 281,749 8,498,332 Population density 38.9 22.0 Urban population (%) 81.2 82.8 1.3 1.7 HDI 0.814 0.766 HDI-Income 0.754 0.723 HDI-Education 0.904 0.849 HDI-Life expectancy 0.785 0.727 Gini index 0.520 0.569 Life expectancy (years) 74.2 71,9 Infancy mortality rate 13.1 24.9 Illiteracy (%) 5.2 11.1 Average years of education 6.9 6.5 17.1 25.6 Growth population rate Brazil Peru Brazil Bolivia Brazil Brazil Paraguay Brazil Chile Argentina Uruguay ² RS 0 240 480 960 1.440 Kilometers 1.920 Poverty (% population) 4 Main factors contributing to the Bank’s business and performance are: Strong partnership with Rio Grande do Sul state Strong identification by state citizens Regional multiple-service bank focused on credit products 5 Strong partnership with Rio Grande do Sul State ICMS Collection Account Public Cash Management • Centralizes the ICMS (VAT) collection for RS (average monthly inflows of R$1 billion) and IPVA collection for RS (average monthly inflows of R$71 million). • Cash of the State, State owned companies and State autarchies. Judicial Deposits Fund Management • Unique and intrinsic asset for Banrisul, pursuant to the state constitution. • Base of approximately 365,000 clients, which represent approximately R$613 million per month. Cross Selling • Exclusivity to payroll payments and payroll-deductible loans to State employees. 6 Banrisul Highlights Stockholder Breakdown BANRISUL STOCK - Presently Officers 0.00% Fund Banrisul de Seg. Social 0.15% Inst. Prev. do Estado RGS 0.05% Estado do Rio Grande do Sul 56.97% Free Float 42.83% Stockholder ON % PNA PNB TOTAL (PNA + PNB) % TOTAL OF STOCKS % State of Rio Grande do Sul 204,199,859 99.60% 2,721,484 26,086,957 28,808,441 14.12% 233,008,300 56.97% Fund Banrisul de Seg. Social 449,054 0.22% 158,983 0 158,983 0.08% 608,037 0.15% Inst. Prev. Do Estado RGS 44,934 0.02% 168,612 0 168,612 0.08% 213,546 0.05% Free Float 324,014 0.16% 872,006 173,948,574 174,820,580 85.71% 175,144,594 42.83% TOTAL 205,017,861 100.00% 3,921,085 200,035,531 203,956,616 100.00% 408,974,477 100.00% 8 Banrisul Network Service Network Branches Rio Grande do Sul Santa Catarina Other States Abroad Service Points Eletronic Sales Points Representative Office Total Network 424 395 13 14 2 273 427 1 1,125 Presence in the State of Rio Grande do Sul Total Municipalities in the State of Rio Grande do Sul 496 Municipalities with Banrisul Branches 294 Municipalities with Banrisul Service Points 105 Total Municipalites Serviced by Banrisul 408 Service Range 82.3% Population of the State of Rio Grande do Sul serviced by Banrisul 97.4% State of Rio Grande do Sul's GDP serviced by Banrisul 97.3% 9 Brazilian Competitive Market BRAZILIAN COMPETITIVE MARKET AS OF JUN/08 - IN R$ MILLION, EXCEPT NR. OF BRANCHES INDEX BRAZIL STATE OF RGS % STATE OF RGS / BRAZIL BANRISUL % BANRISUL / STATE OF RGS TIME DEPOSITS 414,981 18,669 4.5% 7,133 38.2% SAVING DEPOSITS 247,732 19,893 8.0% 4,468 22.5% DEMAND DEPOSITS 113,568 8,686 7.6% 1,562 18.0% LOAN PORTFOLIO 1,067,355 45,540 4.3% 9,951 21.9% NR. OF BRANCHES 19,528 1,302 6.7% 423 32.5% Source: Central Bank of Brazil 10 Regional multiple-service bank focused on credit products Credit Products Portfolio Innovative and Differentiated Products Personal credit Direct credit to consumer Overdraft loan (“Banricompras”) Vehicle financing Payroll deductible loan Real estate credit Agribusiness financing Receivables discount Working capital Individuals: Debit card with “Pre-approved credit line” “Promicro” SME: Discount receivables Machines and equipments Vendor Compror Leasing Leveraging business with diversified client base and segment More than 40 thousand affiliated stores 47 million transactions in 2007 R$2.56 billion in transactions in 2007 R$34 million in gross income in 2007 11 Banricompras Debit card to make cash, term or installment payments for their purchases in accredited commercial establishments A mean of payment that increases the purchase power, makes it easier to monitor expenses and does not burden card users About 66,000 establishments affiliated More than 34 million transactions in Aug 08, equivalent to almost R$ 2 billion in financial turnover 12 IT Investments Chip Card - Multos A highly secure operating system that supports multiple applications for use in smart cards. MULTOS allows cards to be monitored during all steps of a transaction, simplifying and improving the smart card issuing process. Internet Banking The Bank offers access channels to clients through Home and Office Banking. Mobile Banking A debit card via cell phone to check balances and statements, and allows for the wire transfer of resources between accounts and the payment of bills through a mobile phone. Banrisul International IT Forum (Porto Alegre – RS – Brazil) Oct 28, 2008 http://www.banrisul.com.br/bob/data/Forum_Internacional_de_TI_Banrisul_agenda_textovrs08.pdf 13 Self-service Channels Benefits 14 Net Income R$ million 15 15 Assets R$ million CAGR: 18.50% p.a. CAGR: 19.02% p.a. 16 16 Interest on Own Capital and Dividends Paid R$ million 17 17 Funding R$ million CAGR: 15.75% p.a. CAGR: 15.10% p.a. 18 18 Securities R$ million 19 19 Credit Portfolio R$ million 20 20 Credit Portfolio yearly rate of growth 21 21 Commercial Credit Portfolio yearly rate growth 22 22 Funding yearly rate of growth 23 23 Credit Portfolio Breakdown R$ million 24 24 Commercial Credit Portfolio Individuals and Companies R$ million 25 25 Credit Portolio by Rating R$ million 26 26 Default Rate In % 27 27 Basel Ratio In % 28 Number of Clients InR$Million million 29 NOTICE TO THE MARKET Freed of Reserve Requirement Impacts on Banrisul • Measures of Central Bank released R$ 1,842.6 millions in reserve requirement • On september 24, the total amount in reserve requirements was R$ 3,883 millions 30 NOTICE TO THE MARKET Freed of Reserve Requirement Impacts on Banrisul Main figures in August, 2008 Loan portfolio: R$ 10,589.7 million Total funding, including investiment funds: R$ 18,051.7 million Federal securites + short term and interbank investiments: R$ 6,460.1 million Basel Index, after Basel II alterations: 18,11% - Allow for R$ 10 billion increase in the loan book 31 NOTICE TO THE MARKET Freed of Reserve Requirement Impacts on Banrisul Current situation Treasury invested only in federal securities indexed to the SELIC – LFT or inter-banking operations pegged to federal securities Not exposed to exchange, swaps or derivatives Payroll-deductible loans portfolios acquired: more than R$ 500 millions Default, overdue more than 60 days totaled 3,12% Summarizing, conditions to continue growing 32 Ricardo Hingel CFO & IRO Investor Relations Rua Capitão Montanha, nº 177 – Centro Porto Alegre – Rio Grande do Sul - Brazil CEP 90010-040 Phone: +55 51 3215-3232 Fax: +55 51 3215-3200 www.banrisul.com.br/ir [email protected]