1 banco do brasil s.a. 2006. 2 economic environment ratios %

1

Banco do Brasil S.A.Banco do Brasil S.A.

20062006

2

Economic EnvironmentEconomic EnvironmentEconomic EnvironmentEconomic Environment

Ratios %

GDP 1.9 0.5 4.9 2.3 2.9Exchange Rate - R$ / US$ 52.3 (18.2) (8.1) (11.8) (8.7)Interest Rate - Selic 25.0 16.5 17.8 18.0 13.3Price Index - IPCA 12.5 9.3 7.6 5.7 3.1Sovereign Risk 1,439 463 383 303 192Trade Balance - US$ bilhões 13.1 24.8 33.6 44.7 46.1

20062002 2003 2004 2005

3

Industry OutlookIndustry OutlookIndustry OutlookIndustry Outlook

34.331.2

26.926.224.2

2002 2003 2004 2005 2006

Loan / GDP (%)Number of Banks

166164

163160

158

4

Loan SegmentsLoan SegmentsLoan SegmentsLoan Segments

Individuals Businesses

36.839.5

43.647.2 47.9

63.260.5

56.452.8 52.1

2002 2003 2004 2005 2006

Participation - %

5

Loan SegmentsLoan SegmentsLoan SegmentsLoan Segments

Payroll Loan Credit Card / Overdraft AccountVehicles Others

53.7 55.147.2 45.1 42.7

30.9 29.7

27.5 26.6 26.6

15.4 15.2

13.011.7 10.6

12.4 16.6 20.2

2002 2003 2004 2005 2006

Participation - %

6

Banco do Brasil StructureBanco do Brasil StructureBanco do Brasil StructureBanco do Brasil Structure

COBRA

BB-99.36% ON 99.34% total

BB LEASINGBB - 100% ON

100% Total

BB VIENA BB -100% ON

100% Total

BBCARTÕESBB - 100% ON

100% Total

BB LEASING Co. LTD

BB - 100% ON 100% Total

BB DTVM BB -100% ON

100% Total

BBCORRETORA

BB - 100%ON 100% Total

BAMBBB -100% ON

100% Total

BBCONSÓRCIOS

BB - 100% ON 100% Total

BB BIBB - 100% ON

100% Total

BANCO DO BRASIL SECURITIES LLC

BB - 100% ON 100% Total

BBSECURITIESBAMB -100% ON

100% Total

BB TURISMO

BAMB-99.996% ON 99.996%Total

ATIVOS S.A. BB BI - 49% ON

74.50 % TotalBAMB - 51% ON 25.50% Total

ALIANÇADO BRASIL

BB-BI 40% ON 70% Total

BRASILPREV

BB-BI 49.99% ON 49.99%

Total

CIBRASEC

BB-BI 9,09% ON 9,09% Total

SBCE

BB-BI 12.08% ON 12.08% Total

BRASILSAÚDE

BB-BI 49.92%ON 49.92% Total

VISANET

BB BI Classe A 35% Classe B 28.75% 31.99% Total

ITAPEBI


BRASILCAP

BB-BI 49.99% ON

49.99% Total

KEPLER WEBER

BB-BI 24.38% ON 24.38% Total

VISA VALE

BB BI 35% ON 37.47% Total

PRONOR

BB BI 0% ON 3.27% Total

Strategic Partnerships

Non-Strategic Partnerships

BRASIL VEÍCULOS


NEOENERGIA

BB-BI 7.67 ON 7.67 Total

TECBAN

BB BI 8.96% ON 8.96% Total

CLEARINGS• CIP - BB 9.80%• BMF Câmbio• BMF Ativos • CBLC - BB 1.59%• BMF Derivativos

B B

Strategic Partnerships

CADAM

BB 0% ON 21.64% Total

Non-Strategic Partnerships

Banco do BrasilBanco do Brasil

Other Partnerships

Affiliated Companies

B B B I

Wholly Owned Subsidiaries

BANCO POPULAR DO BRASIL BB -100% ON

100% Total

7

Organizational StructureOrganizational StructureOrganizational StructureOrganizational Structure

Board of Officers

Units

Directorships

Autonomous Departments

Ag

rib

usi

nes

s

Co

mm

erci

al

Co

ntr

oll

ing

Inve

sto

r R

elat

ion

s

Mar

keti

ng

an

dC

om

mu

nic

atio

n

Leg

al

Dis

trib

uti

on

an

d R

etai

l C

han

nel

s

Fin

ance

Exe

cuti

veS

ecre

tari

at

VP of Retail Service and Distribution

VP of Rural Businesses

and Government

Affairs

VP ofTechnology and Logistic

VP of Credit, Controlling

and Risk Management

VP of Finance, Capital Marketand Investor

Relations

Board of Directors

General Shareholders Meeting

CEO

Board of Auditors

Audit Committee

Info

rmat

ion

Tec

hn

olo

gy

Mic

ro a

nd

Sm

all

Bu

sin

esse

s

Em

plo

yee

Rel

atio

nA

nd

So

cial

-En

v.R

esp

on

sib

ilit

y

VP of HumanResources and Social-Enviro-

nmentalResponsibility

Go

vern

men

t A

ffai

rs

Ret

ail

Ser

vice

s

Cap

ital

Mar

kets

an

d I

nve

stm

ents

Tec

hn

olo

gy

Hu

man

Res

ou

rces

Cre

dit

Inte

rnal

Co

ntr

ols

Fo

reig

n T

rad

e

Inte

rnat

ion

al

So

ftw

are

Dev

elo

pm

ent

Sec

uri

ty

Man

agem

ent

Str

ateg

y an

d

Org

aniz

atio

n

Ris

k M

anag

emen

t

Hig

h I

nco

me

Lo

gis

tic

Reg

ion

alS

ust

ain

able

Dev

elo

pm

ent

VP of International Business and

Wholesale

Acc

ou

nti

ng

Res

tru

ctu

rin

g o

fO

per

atio

nal

Ass

ets

Internal Audit

Op

erat

ion

alS

up

po

rt

Pen

sio

n F

un

d M

anag

emen

t

8

Banco do Brasil’s SharesBanco do Brasil’s SharesBanco do Brasil’s SharesBanco do Brasil’s Shares

Shareholders Number of

Shares %

Number of Shares

%

National Treasury 584,778,036 72.1 566,778,036 68.7PREVI 112,415,335 13.9 94,415,335 11.4BNDESPar 46,604,052 5.7 41,604,052 5.0Treasury Stocks 11,257,677 1.4 - - Foreign Investors 26,682,549 3.3 59,771,452 7.2Others 28,879,766 3,6 62,747,548 7.6

Total 810,617,415 100.0 825,316,423 100.0

Controlling Shareholder 755,055,100 93.1 702,797,423 85.2

Free Float 55,562,315 6.9 122,519,000 14.8

2005 2006

9

Share’s PerformanceShare’s PerformanceShare’s PerformanceShare’s Performance

Earning per Share - R$ 2.8 3.3 3.8 5.2 7.3Book Value per Share - R$ 12.6 16.6 17.6 21.1 25.2Price / Book Value 0.7 1.4 1.8 2.0 2.5Price / Earnings 3.3 7.4 8.6 8.1 8.7Payout - % 28,6 31.3 31.5 36.1 40.0Dividend Yield - % 10.8 4.2 3.7 4.4 4.6Share Earnings - % (1.4) 162.1 44.4 33.9 65.8Daily Average Volume - R$ million 1.6 4.2 4.9 8.6 25.2

Performance Ratios 20062002 2003 2004 2005

10

Share’s PerformanceShare’s PerformanceShare’s PerformanceShare’s Performance

Earnings - %

Ibovespa Banco do Brasil

dec/01 jun/02 dec/02 jun/03 dec/03 jun/04 dec/04 jun/05 dec/05 jun/06 dec/06

513.8

169.8

11

PerformancePerformancePerformancePerformance

2,0282,381

3,024

4,154

6,044

2002 2003 2004 2005 2006

22.6 22.3 23.026.8

32.1

Net Income - R$ million

ROE - %

6,696

17,568

25,979

33,733

52,820

Market Capitalization - R$ million

2002 2003 2004 2005 2006

579 746954

1,498

2,418

Dividends / Interest on Capital - R$ million

12

Capital StructureCapital StructureCapital StructureCapital Structure

2002 2003 2004 2005 2006

Shareholder’s Equity - R$ millionLevel 1 - %

2002 2003 2004 2005 2006

BIS Ratio -%

9,19712,172

14,106

16,850

20,758

17.317.115.2

13.712.2

8.4 9.7 10.6 11.7 11.7

3.84.0

4.65.4 5.6

Level 2 - %

13

HighlightsHighlightsHighlightsHighlights

204.6230.1 239.0

253.0

2002 2003 2004 2005 2006

14.815.1

16.517.3

16.3

Market Share¹ - %

2002 2003 2004 2005 2006

Loan Portfolio - R$ billion

Market Share - %

Assets - R$ billion

296.4

CAGR: 9.7%62.9

77.688.6

101.8

133.2

CAGR: 20.6%

13.716.7

15.315.916.3

(1) Domestic portfolio

14


2002 2003 2004 2005 2006

Market Share - %

2002 2003 2004 2005 2006

Assets Under Management - R$ billion

Market Share - %

Deposits - R$ billion

97.3110.0 115.5

137.7

20.320.220.2

22.4

20.9

66.2

102.7

124.0

153.5

182.7

CAGR: 28.9%

19.120.219.7

19.017.4

158.8

CAGR: 13.0%

15

Customers - million

Employees - thousand


14.4

17.5

19.7

21.5

22.8

1.0

1.2

1.4

1.4

1.6

Individuals Businesses

2002

2003

2004

2005

2006 24.4

22.9

15.4

21.1

18.8

CAGR:

12.0%

12.2%

75.9

78.0

79.7

83.8

82.7

2002

2003

2004

2005

2006

16

Administrative Expenses - R$ billion Operational Income - R$ billion

57.9 55.8 54.248.1 47.5

ProductivityProductivityProductivityProductivity

Efficiency Ratio - %

9.611.3 12.6 13.1 13.7

16.720.3

23.2

27.328.9

2002 2003 2004 2005 2006

CAGR:

9.3%

14.8%

17

4.5

5.5

6.6

7.6

8.9

5.5

6.8 7.17.5 7.9

2002 2003 2004 2005 2006

Fee Income - R$ billion Personnel Expenses - R$ billion

Coverage Ratio - %

ProductivityProductivityProductivityProductivity

80.3 80.6

93.1

102.3

112.9

CAGR:

9.1%

18.9%

18

FundingFundingFundingFunding

Demand Deposits 24,342 27,140 28,991 35,802 40,059Saving Deposits 26,918 27,425 31,069 32,844 36,714Time Deposits 42,117 48,173 49,665 63,495 76,900Interbank Deposits 3,876 7,275 5,768 5,383 4,878Investment Deposits - - 38 134 289Money Market Borrowing 48,327 40,063 44,527 30,508 49,283

Total 145,581 150,077 160,058 168,167 208,124

2005 200620042002 2003

Funding - R$ million

19

Loan PortfolioLoan PortfolioLoan PortfolioLoan Portfolio

Individuals SME Medium/Corporate Agribusinesses Foreign Trade

2005 - % 2006 - %

18.1

15.2

22.7

35.1

9.018.0

13.8

25.2

33.8

9.1

R$ billion 2004 2005 2006 2005 - %Total Portfolio 88.6 101.8 133.2 30.8

Domestic 79.5 92.6 121.0 30.6 Individuals 16.1 18.4 24.0 30.5 Free Resources 14.4 16.7 22.7 35.8

Payroll Loan 1.5 3.8 8.3 117.8 Vehicles 0.3 0.2 0.9 376.0

Businesses 33.4 38.5 51.9 34.8 SME 13.2 15.4 18.3 18.7 Medium and Corporate 20.2 23.1 33.6 45.5

Agribusinesses 30.0 35.7 45.1 26.2 Abroad 9.0 9.2 12.2 32.7

20

DelinquencyDelinquencyDelinquencyDelinquency

5.66.1

6.6 6.6

3.34.0

2.9

5.4

4.1

5.6

4.7

5.9

4.6

3.03.3

dec/02 dec/03 dec/04 dec/05 dec/06

Allowance / Loan Portfolio - %

Past Due Loans + 15 days / Loan Portfolio - %

Past Due Loans + 60 days / Loan Portfolio - %

21

Delinquency - IndividualsDelinquency - IndividualsDelinquency - IndividualsDelinquency - Individuals

14.2 14.513.8

7.3 7.27.8 7.6

7.56.8 6.8

6.3

14.012.9

12.112.8

14.513.9

10.5

6.7

8.5

dec/05 may/06 jun/06 sep/06 dec/06

Banking Industry

Banco do Brasil

Banking Industry

Banco do Brasil

Past Due Loans + 15 days - % Past Due Loans + 90 days - %

22

LoanLoanLoanLoan

12.616.0

27.531.0

40.4

2002 2003 2004 2005 2006

14.0

16.2

12.213.9

21.7

2002 2003 2004 2005 2006

Retail Loan - R$ billion Commercial Loan - R$ billion

23

LoanLoanLoanLoan

2002 2003 2004 2005 2006

7.6 7.48.0

9.6

11.0

2002 2003 2004 2005 2006

5.5

7.6

9.0

11.9 12.1

Foreign Trade Loan - R$ billion Contracted AmountACC / ACE - US$ billion

24

LoanLoanLoanLoan

16.8

27.230.0

35.7

45.1

2002 2003 2004 2005 2006

Agribusiness Loan - R$ billion

1,743

2,413

3,217

4,342

4,802

2002 2003 2004 2005 2006

Pronaf - R$ million

25

RetailRetailRetailRetail

Credit Cards Revenue - R$ billion¹

2002 2003 2004 2005 2006

Credit Cards Issued - million

13.5

18.1

24.3

31.6

38.8

14.1

9.3

6.95.3

4.7

(1) Banking Cards revenue included

26

InsuranceInsuranceInsuranceInsurance

Managed Portfolio - R$ million

2002 2003 2004 2005 2006

Cars Insured - thousand

136.1

171.8

238.7

318.5

367.0

676625

578500

445

Vehicle Insurance

27


441.6

570.5

680.6717.1

820.1


2002 2003 2004 2005 2006

Lives Insured - thousand

1,748

1,4171,3511,2631,224

Life Insurance

28


3,785

5,586

7,781

9,659

12,473


2002 2003 2004 2005 2006

Participants - thousand

886

1,1781,365

1,5761,756Pension Fund

29


1,549

2,0602,264

2,875 2,788

2002 2003 2004 2005 2006

Quantity of Plans - thousand

2,631 2,6612,792 2,949

1,653

Capitalization (Annuity Plans)


30

Northeast

Branches 993Others 2,882Total 3,875

Branches 1,534Others 3,927Total 5,461



Branches 242Others 913Total 1,155

North

Midwest

South

Southeast

Distribution Network

Infrastructure and TechnologyInfrastructure and TechnologyInfrastructure and TechnologyInfrastructure and Technology

31


Branches Others

Points of Service - thousand

2002

2003

2004

2005

2006

12.3

13.2

14.4

14.8

15.1

39.7

40.2

39.0

37.0

33.6

3.2

3.2

3.7

3.9

4.0

9.2

10.0

10.7

10.9

11.1

Automated Teller Machine (ATM) - thousand

2002

2003

2004

2005

2006

32

84.1

86.4

88.4

89.2

90.0

Transaction in Automated Channels - %

2002

2003

2004

2005

2006

48.3

12.7

16.6

10.8

7.7 3.9 ATM

Internet Banking

Internet Banking

Cashier

POS

Others

Breakdown of Transactions - %

47.1

12.7

17.5

10.0

9.03.82005 2006

Individuals

Businesses


33

Sustainable Regional DevelopmentSustainable Regional DevelopmentSustainable Regional DevelopmentSustainable Regional Development

2004 2005 2006 2005 - %

Amount Contracted - R$ million 13.6 105.4 313.8 197.7

Benefited Families (thousand) 16.8 70.6 230.9 227.2

Involved Branches 428 1,482 2,502 68.8

Skilled Employees 1,370 4,062 6,052 49.0

Served Municipalities 642 1,503 2,788 85.5

Approved Business Plans 120 375 1,020 172.0

Productive Activities 40 70 70 -

Strategy for job and income generation in a sustainable way which began in 2003.

Support to environmentally correct, socially fair, economically viable and culturally diversified productive activities.

34

Banco do Brasil’s FoundationBanco do Brasil’s FoundationBanco do Brasil’s FoundationBanco do Brasil’s Foundation

20 thousand producers at apiculture, handmade, caju culture, manioc culture, sheep and goat livestock farming, recycles

Productivity Chains

AABB Comunidade Program

Supported 50 thousand children in 2006

Supported 65 thousand people in 2006

BB Educar Program

Social Investment:

R$ million 2003 2004 2005 2006Education 21.0 26.5 28.2 20.5 Job and Income 21.1 47.7 74.3 77.5 Total 42.1 74.1 102.4 98.1

Projects 561 1,357 1,154 1,013

35


R$ - millionNet Income 2,028 2,381 3,024 4,154 6,044Net Interest Income 13,575 15,327 15,464 16,709 17,980Fee Income 4,454 5,491 6,607 7,648 8,887Administrative Expenses (9,644) (11,326) (12,562) (13,143) (13,744)

R$ - million

Assets 204,595 230,144 239,014 252,977 296,356Loan Portfolio 62,900 77,636 88,554 101,789 133,157Deposits 97,253 110,014 115,531 137,658 158,841Assets Under Management 66,153 102,658 124,021 153,508 182,683

%

ROE 22.6 22.3 23.0 26.8 32.1Efficiency 57.9 55.8 54.2 48.1 47.5Coverage 80.3 80.6 93.1 102.3 112.9BIS Ratio 12.2 13.7 15.2 17.1 17.3

20062002 2003 2004 2005

2002 20062003 2004 2005

2002 2003 2004 2005 2006

36

Investor Relations UnitSBS - Quadra 1 - Bloco C - Ed. Sede III - 5° floor

70073-901 - Brasília (DF)Phone: 55 (61) 3310.3980

Fax: 55 (61) 3310.3735

[email protected]

DisclaimerDisclaimer - 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

1 banco do brasil s.a. 2006. 2 economic environment ratios %

Documents

total bb bi bb

total bb leasing bb

total bb viena bb

total bb cartes bb

total bb dtvm bb

total bb corretora bb

total bb consrcios bb

total bamb bb