Santander Brasil

Wholesale BankingWholesale Banking

May 12, 2010

2

This presentation was prepared by Banco Santander (Brasil) S.A. It is provided forp p p y ( ) pinformational purposes only and does not constitute an offer to sell or a solicitationto buy any security. It may contain forecasts about future events. Thesepredictions/estimates evidently involve risks and uncertainties, whether foreseen ornot by the Company. Therefore, the future results of the Company may differ fromy p y p y ycurrent expectations. Past performance and/or these predictions are not guaranteeof future performance. The Company is not obliged to update the presentation/suchforecasts in light of new events or circumstances.© 2010 by Banco Santander (Brasil) S.A.. All Rights Reserved.y ( ) g

3

Agenda

Market Overview

Santander Wholesale BankingSantander Wholesale Banking

Santander Wholesale Banking Growth Strategy

4Market Overview – Credit4

46%

40%

50%

500

600

Corporate Loans (YoY Growth%) Spreads (%)

19,0

1 117,5

20,0

33%

1% 4%

10%

20%

30%

100

200

300

400

13,6

17,1

10 0

12,5

15,0

,

%0%0

Jan-

08

Mar

-08

May

-08

Jul-0

8

Sep

-08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-0

9

Sep

-09

Nov

-09

Jan-

10

Mar

-10

Credit to Corporate (Volume - BRL bln) Credit to Corporate (YoY Growth %)

T D li (%)

10,0

Jun-

05

Sep

-05

Dec

-05

Mar

-06

Jun-

06

Sep

-06

Dec

-06

Mar

-07

Jun-

07

Sep

-07

Dec

-07

Mar

-08

Jun-

08

Sep

-08

Dec

-08

Mar

-09

Jun-

09

Sep

-09

Dec

-09

Mar

-10

310

287300

350

Tenors Delinquency (%)

3,6

3,0

4,0

5,0

195

150

200

250

5 5 5 6 6 6 6 7 7 7 7 8 8 8 8 9 9 9 9 0

1,7

0,0

1,0

2,0 5 5 5 6 6 6 6 7 7 7 7 8 8 8 8 9 9 9 9 0

Jun-

05

Sep

-05

Dec

-05

Mar

-06

Jun-

06

Sep

-06

Dec

-06

Mar

-07

Jun-

07

Sep

-07

Dec

-07

Mar

-08

Jun-

08

Sep

-08

Dec

-08

Mar

-09

Jun-

09

Sep

-09

Dec

-09

Mar

-10

Jun-

05

Sep

-05

Dec

-05

Mar

-06

Jun-

06

Sep

-06

Dec

-06

Mar

-07

Jun-

07

Sep

-07

Dec

-07

Mar

-08

Jun-

08

Sep

-08

Dec

-08

Mar

-09

Jun-

09

Sep

-09

Dec

-09

Mar

-10

Source: Santander Investor Relations

5

Market Overview – Capital Markets (ECM & DCM)

ECM Evolution – Volume & Number of DealsECM Evolution – Volume & Number of Deals DCM Evolution – Volume & Number of DealsDCM Evolution – Volume & Number of Deals

+34.2%

Volume = BRL MM; N = Number of Deals Volume (BRL MM)

-5.5% -6.4%71 407 67 474 63 161

20%

49%30%

10,882 14,600

9,61915,025

34,88247,131

N=12

+335%17%

19% 15%

14%

38% 36%

71,407 67,474 63,161

10% 8%

13%

42%28%

YTD Mar 09 YTD Mar 10

6.6572.213

2.962

2,213

YTD Mar 09 YTD Mar 10

60,474

7,602 10,844

27,28036,287

2007 2008 2009

N=11N=19

N=3N=64

N=4 N=5N=5

N=12% 7% 5%

67%

36% 44%

2007 2008 2009Promissory Notes FIDC Debentures CRI

20

40 81224

289318

19

1065

71

IPOs Follow ons+9.2%Number of DealsForeign Investors Participation – YTD Feb10

y

60 85 10247

3369

97131

6620

27 25

3 1316

23

Individuals8.7%

Inst. Investors36.5%

USA36.8%

EU15.7%Other

2.3%

Foreign Investors

54.8%

2007 2008 2009Total Promissory Notes FIDC Debentures CRI

YTD Mar 09 YTD Mar 10

Source: ANBIMA

6

Market Overview – Capital Markets (M&A)

Volume = BRL billion; N = Number of Deals

M&A Evolution – Volume & Number of Deals*

N 40

N=65 N=134

N=91N=86

N=1N=1

N=2

N=2

N=40N=14 N=10 N=15 N=10 N=9

Announced Deals by Value

Number of Deals Volume

Announced Deals by Value Capital Source (2009)

Source: ANBIMA

(*) – Source: ANBIMA. Megadeals include operations with volume greater than BRL 3.0 billion

7

Agenda

Market Overview

Santander Wholesale Banking

Santander Wholesale Banking Growth StrategySantander Wholesale Banking Growth Strategy

8

Santander Wholesale Banking Client Segmentation

Revenue Classification CriteriaRevenue Classification Criteria Client DistributionClient Distribution

GB&M

~530 *GB&M

Client List

Corporate

Corporate

~650 (13%)

(10%)

BRL 250MM and above

Empresas

Empresas **

~3900 (77%)

BRL 30MM-250MM

(*) Includes MRG model clients only( ) Includes MRG model clients only

(**) Annual revenues greater than BRL 20K

9

Santander Global Wholesale Banking* Overview – (IFRS Criteria)

Profit Before Tax (% / Total)Profit Before Tax (% / Total)

Total Revenues = BRL 931 MMTotal Revenues = BRL 931 MM

Profit Before Tax (% / Total) Profit Before Tax (% / Total)

3M10

3M10

Costs = BRL 167 MMCosts = BRL 167 MM

Profit Before Tax = BRL 758 MMProfit Before Tax = BRL 758 MM

Source: Santander Financial Statements (IFRS)

(*) GB&M only

10

Santander Wholesale Banking – Credit Evolution & League Tables

Credit Evolution (Large Corporates) *Credit Evolution (Large Corporates) *

BRL MM

League TablesLeague Tables

M&A (Announced Transactions – Value)1st

39.1 36 5

38.6 39.6

( )Bloomberg - 2009

Project Finance (Fin. Advisor & Structuring) Anbima - 2009

1st

1st

1.3%

36.5 35.0

DCM (External Issues)1

Bond Radar - 20091st

DCM (Domestic Issues)Anbima - 2009

ECM (Closed Deals)

4th

1 t

1Q09 2Q09 3Q09 4Q09 1Q10

ECM (Closed Deals)Thomson Financial and Bloomberg - 2009

FXBanco Central de Brasil - 2009

1st

3rd

1 Brazilian Corporate BondsSource: Managerial Information 1Q10

(*) Does not include Empresas. Volumes do not include guarantees and other collaterals

11

Agenda

Market Overview

Santander Wholesale Banking

Santander Wholesale Banking Growth StrategySantander Wholesale Banking Growth Strategy

12

Santander Wholesale Banking Growth Strategy

Empresas(BRL 30-

Empresas(BRL 30-

General Strategy…

Focus on clients relationship

Increase share of wallet cross-selling and lead strategic transactions/loans with(BRL 30-250MM)

~3,900 activeclients

(BRL 30-250MM)

~3,900 activeclients

Increase share of wallet, cross-selling and lead strategic transactions/loans with the existents key clients

Expand market penetration with new clients and clients with unexplored potential

Cross-selling to individual clients

Com

pani

esC

ompa

nies

General Strategy…

Cross-selling to individual clients

Explore value chain and sector opportunities with large companies

CC

Corporate(BRL 250MMand above)

Corporate(BRL 250MMand above)

General Strategy…

Increase cross-selling and diversification

Expand use of our wholesale and Investment Banking product platforms

~650 clients~650 clients Increase share of wallet

Continuous active NPL management (recovery and prevention)

Cross selling to individual clientsCross-selling to individual clients

13

GB&M Growth Strategy

Become the top relationship bank for the main players of sectors with high growth perspectives, like Energy, Mining, Construction, Infrastructure and Agribusiness.

11

Take advantage of our global capabilities and support local clients who intends to become international. 22

The concept of one-stop shop and the first option for share of mind products.33 p p p p p

Santander is well positioned in Investment Banking products and intends to take advantage of the good perspectives for M&A, ECM and DCM markets.

44

Increase our client’s satisfaction, generating value to the Bank.55

Leverage Retail opportunities through our origination capacity.66

Increase net profit, ensuring full costs control and preserving a low risk profile.77

Investor RelationsJuscelino Kubitschek Avenue 2,235 10th floor

São Paulo | SP | Brazil | 04543-011T l ( 11) 3 3 3300Tel. (55 11) 3553-3300

e-mail: ri@santander.com.br

Santander Brasil

R l E t t Fi &Real Estate Finance&Mortgage in Brazil

May 12, 2010

2

This presentation was prepared by Banco Santander (Brasil) S.A. It is provided forp p p y ( ) pinformational purposes only and does not constitute an offer to sell or a solicitationto buy any security. It may contain forecasts about future events. Thesepredictions/estimates evidently involve risks and uncertainties, whether foreseen ornot by the Company. Therefore, the future results of the Company may differ fromy p y , p y ycurrent expectations. Past performance and/or these predictions are not guaranteeof future performance. The Company is not obliged to update the presentation/suchforecasts in light of new events or circumstances.© 2010 by Banco Santander (Brasil) S.A.. All Rights Reserved.y ( ) g

3

Main Topics

I. Macro Conditions

II. Market PotentialII. Market Potential

III. Loans Evolution

IV. Builders: Offer and Demand

V. Funding

VI. Final Remarks

4Supportive Macro Backdrop

Interest rates are at historical low levels.

Resilient job market, supportive for the housing sector.

In our view, these are tailwinds for the Brazilian real estate sector.

Brazilian Interest Rate (2003 2011E) Brazil’s Job Market (2005-2011E)Brazilian Interest Rate (2003- 2011E) Brazil s Job Market (2005-2011E)

9

10

11

8

10

12

Rat

e (%

)

Payr

oll (

%)

20

25

30

Nominal Selic Real Selic

2

7

7

8

9

2

4

6

Une

mpl

oym

ent

Rea

l Gro

wth

in P

12

5

10

15

7

Source: BACEN and Santander.Source: BACEN and Santander.

6 -2005 2006 2007 2008 2009E 2010E 2011E

Real Growth in Payroll Unemployment Rate

0

J-03

M-0

3S-

03J-

04M

-04

S-04

J-05

M-0

5S-

05J-

06M

-06

S-06

J-07

M-0

7S-

07J-

08M

-08

S-08

J-09

M-0

9S-

09J-

10M

-10

S-10

J-11

M-1

1S-

11

5Favorable Macro Conditions

Monthly Houses Housing

High Housing Deficit Brazil´s main Real Estate drivers

Reduction of interest rates

.

18%

12%A/B

C

> 10 minimum wages

5 – 10 minimum wages

WagesHouses g

Deficit Regulatory Framework0.1 million

0.3 million

Loans tenor extension

28%

42%

D

E

3 - 5 minimum wages

< 3 minimum wages

0.7 million

4.5 million

Source: IBGE 2006, CBCI e GV Consult.

Favorable Demographic Pyramid

Construction and consumer credit availability (Earmarked resources)

54 million 5.7 million

Income growth50

60

70

80

Housing Deficit (5.7 million)

0

10

20

30

40

Government support ( “Minha Casa, Minha Vida” )

Source: IBGE and Santander. 0

6Brazilian Mortgage Market PotentialMortgage as % of GDP (2008)

99%

81% 80%

63% 62%

Source: Associação Hipotecária Espanhola, ABECIP e BACEN (2008 )

16% 15% 11%3%

Holanda Reino Unido Irlanda Portugal Espanha Polônia Chile México Brasil

* Brazil includes FGTS e SBPE

*

ç p p , ( )

GlobalBrazilCredit Distribution: Santander Brazil vs. Santander Global

6 4%6.4%Mortgages

68%

32%Others

93.6%Others

68%Mortgages

Source: Financial Statements 2009 - Santander Brazil Source : Annual Report 2009 – Santander Group (Distribution of credit risk)

7Mortgage Loans Evolution

O th t th B ili id ti l t k t

R$ Billion

68

Over the past years the Brazilian residential mortgage market has shown strong growth.

51

68

34

50CAGR: +47%

Private and Public Banks

25

40

17 1859

18

30

1016

25

Mainly public banks operates FGTS

5 7 7 10175

2005 2006 2007 2008 2009 2010E

(1)FGTS SBPE

Source: ABECIP – Brazilian Association of Real State Loan and Savings

SBPE: Brazilian System of Savings and LoansFGTS: Guarantee Fund for length of Service

(1)(1)

8Mortgage Market Overview 2010Mortgage Origination – 1Q10 Outstanding balance Jan/2010

45

36%75%

Number of units(thousands units)

Amount (R$ billion)

Santander Group leads the market among private banks

6.2 Total market: R$ 103.2 billion

33

453.5

Other Banks

6.9%5.4%

Banco A

Banco C

Mar/10

Construction Loan Origination – 1Q10

1Q09 1Q09 1Q10

Number of units Amount8.9%

8.5%1Q10

Banco ABanco B

Number of units(thousands units)

Amount (R$ billion) 70.3 %

32

67%3.8

2 0

79%

FGTS outstanding is about R$ 40 bn

Santander market share without FGTS is 15%

Mar/10Mar/09 Mar/09 Mar/10

19

2.0

1Q09 1Q10 1Q09 1Q10

Source: ABECIP, BACEN and Santander

Mar/10Mar/09 Mar/09 Mar/101Q09 1Q10 1Q09 1Q10

9Sales vs. Inventories

Housing market seems pretty healthy in terms of inventory (less than 6 months of sales and below 2007 levels in absolute terms).

Market rebound coupled with conservative launching have boosted sales speed (VSO).

( ff )

Inventories in SP below Sep/08 Level

Rebound was lead by smaller segment (more affordable).

16 25.000

10

12

14

15.000

20.000

le (3

-MM

A)

of U

nits

4

6

8

5 000

10.000

Mon

ths

of S

al

Stoc

k o

-

2

-

5.000

A-06

M-0

6J-

06J-

06A-

06S-

06O

-06

N-0

6D

-06

J-07

F-07

M-0

7A-

07M

-07

J-07

J-07

A-07

S-07

O-0

7N

-07

D-0

7J-

08F-

08M

-08

A-08

M-0

8J-

08J-

08A-

08S-

08O

-08

N-0

8D

-08

J-09

F-09

M-0

9A-

09M

-09

J-09

J-09

A-09

S-09

O-0

9N

-09

D-0

9J-

10F-

10

Source: Secovi and elaborated by Santander

Inventory (LHS) Sales (LHS) Months of Sale (RHS)

10Government’s Housing Package: “Minha Casa,Minha Vida”

Government program created to reduce the housing deficit and support the sector.p g g pp

Construction of 1.0 million homes for families with monthly income of up to 10 minimum wages.

Package totaling R$34 0 billionPackage totaling R$34.0 billion.

In 2010 Minha Casa, Minha Vida (MCMV) is running at a rate of 600,000 units per year.

723 5800

595.7 

723.5 

408.7500

600

700

nd

170.0 

352.0 

104.6 

231.7 

408.7 

100

200

300

400

thou

san

5.6 0

100

2Q09 3Q09 4Q09 1Q10Contracts Submitted (accum.) Contracts Signed (accum.) Annualized Rate

Source: CEF and elaborated by Santander

11

10 000

Sales Regaining “pre-Lehman” levelsSales from Listed Co’s (R$MM) Close to Sep/08

1,750 1,616

2,602

2,110 3,088 3,332 3,131

6,392 5,916

8,286

6,186

4 142 3 912

6,620 7,577 7,563

5.000

6.000

7.000

8.000

9.000

10.000

Sales in the mid-high income

R$ MM

4,642 4,300 5,684

4,076 2,842 2,221

3,532 4,245 4,432

1,300 1,691

4,142 3,912

-

1.000

2.000

3.000

4.000

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Sales in the mid high income segment are still some 20-30% bellow pre-crisis levels.

Affordable segment is offsetting th d li4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Mid-High Total Brokerage Co's

Source: Listed Constructions and Properties Agency’s Reports ‐ Elaborated by Santander

the decline.

Listed companies are selling at an annualized rate of 200,000 units/year.Sales Speed VSO from Listed Co’s coming back to 30%’s units/year.

Sales speed (VSO) is coming back to 30%’s.

Sales Speed VSO from Listed Co s coming back to 30% s

28%26%

30%

23%

15% 15%

24%27%

30%

15% 15%

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09Source: Listed Constructions and Properties Agency’s Reports ‐ Elaborated by Santander

12

S

Brazilian Saving Accounts and Mortgage system

52%

SourcesUses

Individual mortgages

100%

Saving

65%

Individual mortgages

and construction

g gProperties up to

R$ 500,000

Construction loans Average loan per unit up to

R$ 500,000

Saving Accounts(R$ billion)

Saving AccountsDeposits

Cost of TR+ 6.17% aa

construction loans

13%Properties over R$ 500,000

R$ 500,00019 % 256.6

30%Compulsory

Deposits215.8Monthly average

or last 12 months

average (the lower

jan‐09 jan‐10

5%Free Usage

(amount)

Source: BACEN

13Funding Analysis (SBPE) (1)

Scenario Jan’10Mortgage

outstanding 2013R$ Billion

R$ 169 bn

Scenario Jan 10 outstanding 2013

Sources UsesWith 40% of annual growth in mortgage and 10% in saving

R$ 169 bn

230 Remaining (3)

and 10% in saving accounts, the funding will finish in 4 years.

LCIs, LHs (2)

86

20

Earmarked resources

Committed Loans

Mortgage outstanding

63

20 149

Scenario Mortgage Outstanding

Savings Oustandings

Mortgage Outstanding (R$ Bi)

Month / Year

1 60% 20% 262 Jan-13

2 40% 10% 230 Nov-133 40% 17% 331 Dec-144 20% 0% 167 May-15y

(1) SBPE (Brazilian System of Savings and Loans) Not included FGTS.(2) Real estate credit bills (LCI’s) and Mortgages Notes (LH).(3) FCVS (Compensation Fund Wage Variation) , default and multipliers.

14Securitization in Brazil:  CRI market

T l I R$ 13 8 b

CRI Issuance (R$ billions)

Total Issuance : R$ 13.8 bn

CRI1 Issuance (R$ billion) Share (%)

CIBRASEC32%

WALTER TORRE

ALTERE5%

OTHERS9%5

6

(R$ billions)

BRC

WALTER TORRE5%

2

3

4

BRAZILIAN SECURITIES

26%

RIO BRAVO17%

6%

0

1

2

1 2 2 2 2 2 2 2 2 2 226%

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Source: CIBRASEC – Brazilian Securitization Company

1. CRI: Mortgage Backed Securities

15Pension Funds Investment Profile in Brazil

55% f h i f d’ i i fi d i d55% of the pension fund’s investments are in fixed income products.

Biggest Pension FundsInvestment distribution

Mortgage0,5% Others

# Pension FundsInvestment (Billion R$)

1 Previ 137.75

2 Petros 40.55

3 F f 32 98

Total: R$ 447 bn

Mortgage0.5%

InvestmentFunds

Stocks20%

,9% 3 Funcef 32.98

4 Fundação Cesp 15.21

5 Valia 10.37

6 ItauBanco 9.49

7 Sistel 9 46(Fixed Income)40%

Investment

7 Sistel 9.46

8 Centrus 9.09

9 Banesprev 8.67

10 Forluz 6.92

Public Bonds15%

Investment Funds 

(Equities)16% 2% of fixed income investment shifted to

CRIs would represent around R$ 5.0 bn.

Source: CIBRASEC – Brazilian Securitization Company

16Final Remarks

Mortgage growth will reduce the funding availability to the Real Estate financing.

Other funding alternatives will be required(Debentures,Notes,IPO’s)

Construction cycle shortening will be important to reduce companies’ short term funding liabilities, and to deliver affordable segment houses(lack of savings)

Mortgage will be available earlier in the process to speed up the cashMortgage will be available earlier in the process, to speed up the cash management ,new product development (PIP)

Inflation Hedge will be provided to avoid industry mismatch.

Investor RelationsJuscelino Kubitschek Avenue 2,235 10th floor

São Paulo | SP | Brazil | 04543-011Tel. (55 11) 3553-3300

e-mail: ri@santander.com.br

Santander Brasil

Santander Cards BusinessSantander Cards Business

May 12, 2010

2

This presentation was prepared by Banco Santander (Brasil) S.A. It is provided forp p p y ( ) pinformational purposes only and does not constitute an offer to sell or a solicitationto buy any security. It may contain forecasts about future events. Thesepredictions/estimates evidently involve risks and uncertainties, whether foreseen ornot by the Company. Therefore, the future results of the Company may differ fromy p y p y ycurrent expectations. Past performance and/or these predictions are not guaranteeof future performance. The Company is not obliged to update the presentation/suchforecasts in light of new events or circumstances.© 2010 by Banco Santander (Brasil) S.A.. All Rights Reserved.y ( ) g

3

Agenda

Overview of Brazilian Cards Industry

Santander Cards IssuerSantander Cards Issuer

Santander Cards Acquirer

4Overview of Brazilian Cards IndustryCards industry continues to show substantial growth rates, even considering the competitive scenario consolidation and recent regulation changes

600

Total industry debit + credit cards and spend

400

500

200

30018.8% a.a.

23.7% a.a.

0

100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

# cards (MM) Total Spend (R$ bn)

Source: ABECS. Prepared by Ferrés Consultoria.

5Overview of Brazilian Cards IndustryCards transactions have been strongly replacing checks transactions last 10 years

In billions transactions (cards include debit + credit)

7

4

5

6

21% a.a.

2

3

4

‐8.1% a.a.

0

1

2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Cards Checks

Source: ABECS and BCB. Prepared by Ferrés Consultoria.

6Overview of Brazilian Cards IndustryLower income population’s tool as formal payment means and bank services inclusion

Total AB C DEEconomic classes

For classes D/E the ratio of card holder is higher than check account holders

Card holders (% of pop.)Cards 67% 81% 64% 36%Credit Cards 45% 61% 38% 20%Credit Cards 45% 61% 38% 20%Debit Cards 53% 70% 49% 19%

Check accounts holders (% of pop ) 67% 82% 64% 33%Check accounts holders (% of pop.) 67% 82% 64% 33%

Source: Researches Abecs. Survey on 11 metropolitan areas.

7Overview of Brazilian Cards IndustryThe relative lower participation as a mean of payment shows a relevant up side opportunity for Brazilian Cards Industry

(1)Higher utilization of cards in private consumption (1)

12.4% 14.0% 15.8% 17.1% 19.1% 21.4%

2003 2004 2005 2006 2007 2008

...but below developed countries (2)

2X

(1) Source : ABECS and IBGE

(2) Source: ABECS, Bank of International Settlements, United Nations, IBGE

8

Card penetration, average ticket and transactions per card are still low in BrazilOverview of Brazilian Cards Industry

628

Number of cards (MM)

~ 15 MM credit cards / year

104 124 136 153201 217 233 249147 173 196 225

453514 565

628

2007 2008 2009 2010 (e)

Spend (R$ Bn) Average Ticket (R$ per transaction)

Credit Debit Private Label Total

93 98 100 104

68 71 73 75215 256

309302375

444535

CAGR: 21.1% CAGR: 3.7%

48 51 53 5553 52 52 51

2007 2008 2009 2010 (e)

174 215

83 107 129 15845 53 60 68

2007 2008 2009 2010 (e)Credit Debit Private Label Total Credit Debit Private Label Total

Source: ABECS (Associação Brasileira das Empresas de Cartões de Crédito e Serviços)

99

Agenda

Overview of Brazilian Cards Industry

S t d C d ISantander Cards Issuer

Santander Cards Acquirerq

10Santander Cards Issuer – Role in the Value ChainSets rules for issuers and

Issues credit and

acquirers

Card Brands

Captures and processes transactions

Issues credit and debit cards

Issuers Acquirers

Use credit and debit cards

Merchants

cards

Clients

11Santander Cards Issuer – our approachTo be the world’s best integrated cards monoliner within a retail bank…

Retail BankMonoliner Retail Bank

Access to customers’ base

Product focus

Specialized

Monoliner

pcapabilities

Direct channels: Telemarketing / Mailings Brand

Traditional channels: branches / agents

Mailings

Global specialized systems

Economies of scale

Brand

… contributing to improving our local banks’ performance

12Santander Cards Issuer – our model Is based on managing all levers along the product lifecycle …

PORTFOLIO MANAGEMENTACQUISITION

Acquisition Activation RetentionSpending OutstandingsProduct innovation and…

Activation RetentionSpending

r rel

atio

nshi

p Outstandings

PlatinumUnlimited

h of

cus

tom

er

VALUE

Cancellation

Light

FreeReward

Mini Card

Time

Dep

th VALUELight

Flex

Mini Card

Launch strategies

Multichannel management

Specialized risk managementTime

Profitability

… supported by an end-to-end view of RISKS and TECHNOLOGY

13Santander Cards Issuer – our model The Business expansion will be held in two dimensions: Customer Base and Profitability per Account

Increase the profitability by using Card Accountsprofitability by using

the card’s platforms as a distribution channel

for other banking products and services 1Q10

e

Card Accounts

per A

ccou

nt

S i

Personal Loan

Insurance

1Q09

7%

Net

inco

me

Δ P

rofit

abilit

y

Payment Services

Savings Insurance

1Q09 1Q10

10%

Continuous product innovation as a growth

lever

(1) Source: Internal data

lever

14Santander Cards – market positionIn Brazil, where our model is already well established, our market share has improved significantly

Other Banks BANK “A”

Market Share end of 1Q10 increases to

Rev

BANK A

BANK “D”

increases to 9.9%25.30

15 107.10

23.40

3.6 9.4

volving Ba

BANK “C”

BANK “B”

15.10

19.70

9.4

3.52.3

3.6 9.4 alance %

2005 Organic Growth

Santander

Banco Real

Acquisition

Current Dec/2009

%

Note 1: Competitor data as of December, 09, source Competitor Quarter Reports, BCB and internal analysis. Santander´s current Market Share as of December, 09

Note 2: Include non interest bearing due to unpaid balances

15Santander Cards Issuer – continuous growthThe Credit market continues to show substantial growth rates, even considering the competitive scenario consolidation and recent regulation changes

C d (MM) Market SantanderCAGR (06 09)Cards (MM)

Key Observations

~80% of the Cards Market is

Market

136124104

826853

+21%+18%

(04~09)

SantanderCAGR (06~09)

Total Spend (R$ Bi)

~80% of the Cards Market is concentrated at the top 4 Banks (Banco do Brasil, Itaú, Bradesco and Santander)

10875

20090807060504

256

+22%

There is an important opportunity for cards revolving growth

R l t l ti h

256215

17414211595

33261914

+22%+22%

33%

(04~09)

Revolving Balance (R$ Bi)

Relevant regulation changes are being implemented, representing significant opportunities for issuers and

261914

0504 2009080706

25.722 1

+33%

new acquiring business players

22.117.2

13.411.38.22.42.11.71.2

+27% +24%

+26%

(04~09)

Note 1: Source Banco Central do Brasil, including +360 days balance

Note 2: Source ABECs – Brazilian Cards Association

20090807060504

16Santander Cards Issuer – 1Q10 performanceThe business growth is leveraged by Cards Accounts expansion…

Cards Accounts (MM) Key NotesCards (MM)

Cards Accounts has presented sustainable growth,

+13%

+16%

10 0427 890

+20%

+14%

year over year

Cards Accounts growth rate has continuously

9.7458.67410.0427.8907.5426.916

continuously increased quarter over last quarter, reflecting our strategy

1Q104Q091Q091Q104Q091Q09

strategy

YoY growth

Quarter annualized growth

17Santander Cards Issuer – 1Q10 performance… generating relevant revenue increase

Net Fee (R$ MM)

213+25% 213

171

+25%

1Q101Q09

Source: Santander Income Statement 1Q10

181818

Agenda

Overview of Brazilian Cards Industry

Santander Cards Issuer

Santander Cards AcquirerSantander Cards Acquirer

19Santander as Issuer and AcquirerSets rules for issuers and

Issues credit and

acquirers

Captures and processesCard Brand

Issues credit and debit cards

Captures and processes transactions

Issuers Acquirers

Uses credit and debit cards

Merchant

debit cards

Clients

20Santander’s Experience in Other Countries

Sovereign

Puerto RicoUK

Mexico

Colombia

Totta

S i

SantanderArgentina

SpainPortugal

Santander + Acquiring Partners

21New Model: Santander (Acquiring + Financial Services)

rs

Innovative value offerProducts and Services + Acquiring +

Acq

uire

r

Other POS Capturing Services

ACQUIRERSERVICES

FINANCIALSERVICESSERVICES SERVICES

Banks

FINANCIAL SERVICES + ACQUIRING - packaged in a suitable value offer to corporate clients

22Partnership Santander & GetNet

Creation of a Partnership leveraged by GetNet’s p g ytechnological expertise and POS network

Brand

MASTERCARDLicense

Investment in Capturing Network and

License

Integrated value offer – Acquiring and Banking

Business

gProcessing Platform

Other POS Capturing Ser ices

Partnership

Business

Commercial Model –Distribution/Pricing

Communication and

Services

165 POS (Capturing Terminals - 2009)Communication and

Media

Terminals 2009)“Time To Market”

23GetNet Tecnologia

Entrance in the Acquirer industry through a technologicalpartner - GetNet Tecnologia

Technological Platform for capturing, authorizing and the processing of

GETNET TECNOLOGIACampo Bom – RS

CORREA DA SILVA GROUP

transactions

165 thousand POS

Services at Capturing Terminals:

Domestic Capital

N&SP – Network and Service Provider

Customized solutions for capturing, authorization and processing of transactions and information Services at Capturing Terminals:

- Mobile Recharge- “Vale Transporte” (transportation ticket)Recharge - “PAT Alimentação e Refeição” (meal ticket)

transactions and information

Main Clients: Goodcard, Banco BNG, Serasa, Microsoft, Base Card, Wal-Mart, Brasil Telecom, Claro, Tim, Vivo, Telefonica, Oi, Embratel, CTBC, Amazonia Celular, Banco Matone, etc.

PAT Alimentação e Refeição (meal ticket)- “Cartão Convênio” / Private Label / CobrandOver 800 employees

Annual turnover of R$ 2,29 Bn (2009)

24Santander Conta Integrada: Innovative value proposeSantander (Acquiring + Financial Services) & Getnet = Capillarity Synergy and corporate client base + technological knowledge

SECUNDARY BENEFITS:A “Win-win” Relationship: the bank recognizes the

financial volume of the client in transactions made with

Synergy and corporate client base + technological knowledge

Competitive rates for prepayment of receivables

Prepayment of receivables through

financial volume of the client in transactions made with MASTERCARD brand credit card:

Reduction of up to 100% of checking account fee for financial transaction volume over R$ 3 Prepayment of receivables through

POS (pioneer in the market)

Call center support to merchants24hours / 7 days

thousand/month in each POS

5 days without interest rate charge by using overdraft

24hours / 7 days

Mobile Recharge

Guarateed Account or Working Capital limits based on financial transaction volume multiples

negotiated in the POS

SERASA / RECHEQUE* consultancy

Regional cards capture

Corporate current account with integrated bank domicile

POS connection using both dial-up and/or broadband.

* Credit Bureau

25Santander Conta Integrada: products offering engine for companies

Besides seizing the value of a high profitability business, it also provides:

Higher transaction financial volume from corporate clients.p

Loan portfolio growth mitigating the risks.

Increase of corporate client base and improvement of the competitive market position.

Improvement on the relationship with corporate customers and, consequently, increase

of number of products and services per clientof number of products and services per client.

Be the first bank of our corporate client.

GOALS FOR 2012150,000 new current accounts originated via the acquiring business

300,000 new affiliated merchants

A share of 10% in the financial transaction volume of the card market

26Conclusion

S t d i th i i l hi thi i i d l iSantander is the pioneer in launching this acquiring model in Brazil

fThe partnership provides the bank access to a network of more than 160,000 merchants and to GetNet’s know how

The credit card industry is expected to grow around ~20% p.y. and double its size in 4 years

This strategy focuses on strengthening the relationship with SME clients – main competitors are banks

Santander Conta Integrada – “Win-Win” relationship between the bank and small and middle market companies (SMEs)

Investor RelationsJuscelino Kubitschek Avenue 2,235 10th floor

São Paulo | SP | Brazil | 04543-011T l ( 11) 3 3 3300Tel. (55 11) 3553-3300

e-mail: ri@santander.com.br

Santander Brasil

Varejo

12 de Maio de 2010

2

Esta apresentação foi preparada pelo Banco Santander (Brasil) S.A. e não constituif t li it ã d f t i i ã d l biliá i El duma oferta ou solicitação de oferta para aquisição de valores mobiliários. Ela pode

conter informações sobre eventos futuros e estas projeções / estimativas estãosujeitas a riscos e incertezas relacionados a fatores fora da capacidade daCompanhia de controlar ou estimar precisamente, tais como condições de mercado,

bi t titi fl t õ d d d i fl ã d ó ãambiente competitivo, flutuações de moeda e da inflação, mudanças em órgãosreguladores e governamentais e outros fatores relacionados às operações daCompanhia, sendo que os resultados futuros da Companhia poderão diferirmaterialmente daqueles projetados. Estas projeções e estimativas não devem seri t t d ti d f f t A C hi ã b iinterpretadas como garantia de performance futura. A Companhia não se obriga empublicar qualquer revisão ou atualizar essas projeções e estimativas frente aeventos ou circunstâncias que venham a ocorrer após a data deste documento.© 2010 by Banco Santander (Brasil) S.A.. All Rights Reserved.

3

Nossa Ambição

2010 D fi

Como fomos em 2009

2010 – Desafios

Estratégias a ég a

Resultados 1º trimestre de 2010

Conclusões

4Nossa ambição

Ser o melhor e mais eficiente banco no Brasil

SER LÍDER DE MERCADO EM

banco no Brasil

SER LÍDER DE MERCADO EMCrescimento de Receitas e Rentabilidade

SER O MELHOR BANCO EM S ti f ã d Cli tSatisfação dos Clientes

SER O MELHOR BANCO Para se Trabalhar

CONSTRUIR A MARCAMais Reconhecida e Atrativa

dentre os Bancos no Brasil

5Para alcançar nossos objetivos precisamos ter...

6...apoio produtos, ferramentas, marca, equipe engajada...

• Produtos de Valor

T l i b t átil• Tecnologia robusta e versátil

• Gestão de crédito eficaz

• Rede de agências ampla e bem

posicionada

• Pessoas engajadas e reconhecidasPessoas engajadas e reconhecidas

• Marca forte e admirada

7

Nossa Ambição

2010 D fi

Como fomos em 2009

2010 – Desafios

Estratégias a ég a

Resultados 1º trimestre de 2010

Conclusões

82009 foi um ano particular mas com muitas entregas...

4o Trimestre3o Trimestre2o Trimestre1o Trimestre

2008 Mar/09 Mai/09 Set/09 Dez/09

Crise no Mercado

• Aumento do risco • Vantagem para os

Integração ATMs

Lançamento de

IPO

Aumento do risco• Baixa liquidez

Vantagem para os clientes

• Desafios operacionais• Força comercial cresce• Necessidades de

treinamentos

Produtos “Juntos”

• Capacidade para investir

• Expectativas crescem

• Impacto positivo de imagem na mídia

treinamentosLançamento Van

Gogh no Santander

crescem• Concorrência se

acirra

imagem na mídia• Clientes ficam

ainda mais exigentes

9... trazendo o melhor dos dois mundos para lançar produtos de valor que nos fortalecem e nos destacam comercialmente ...

102009 – Clientes

O aumento de abertura de contas e a redução de encerramentosO aumento de abertura de contas e a redução de encerramentos propiciou crescimento da Base Ativa mesmo em um ano de crise.

Ab t d C t

+4%Base Ativa (Critério BACEN*)

Abertura de Contas

Mil Clientes

10.240+4%

9 831 +409

dez-09

jan-09

Dez 2009Dec 2008

9.831 +409

-2%

Contas Encerradas

Dez 2009Dec 2008

dez-09

jan-09

* Clientes com movimentação espontânes nos últimos 30 dias

0909

11Destaques de crescimentos de volumes de empréstimos em 2009

R$ MM

+21%

R$ MM

+39%

Cartão de Crédito Consignado

+21% +39%

20092008 20092008

Crédito Imobiliário

+17%

Crédito Imobiliário

20092008

12

Nossa Ambição

2010 D fi

Como fomos em 2009

2010 – Desafios

Estratégias a ég a

Resultados 1º trimestre de 2010

Conclusões

13Temos para 2010 importantes desafios ...

14Integração pautada por princípios rígidos ...

Minimizando impactos aos clientes

15... minimizando impactos aos clientes.

O número da agência e da g

conta corrente

16

Implantação dos GAPsImplantação dos Gaps.

97% da integração sistêmica concluída 1219 Implantados

*Base da análise: 12/03

Fonte: Plano Único 26/02/10

1259Gaps

1259Gaps

152Projetos

Associados

1219 Implantados

150 Implantados

40 Em Andamento

152Projetos

A i d

150 Implantados

40 Em Andamento

15PróMais

15 Implantados

2 Em AndamentoAssociados

15PróMais 15 Implantado

2 Em Andamento

17

Implantação dos GAPsImplantação dos Gaps.

97% da integração sistêmica concluída

Fonte: Plano Único 26/02/10

Especificação Funcional

Construção e Prova Integrada

Homologação Funcional

Testes em Produção Simulados

1 2 3 4 5

1259Gaps

152Projetos

Associados

1219 Implantados

150 Implantados

40 Em Andamento

99% 99% 97%Status:Testes com dados convertidos (Real)

e negativos (Santander)

15PróMais

15 Implantados

2 Em Andamento

18Abertura de Agências.

600

Plano em execuçãoexecução

150 150 150 150

2010 Fase 1

2011 Fase 2

2012 Fase 3

2013 Fase 4

19Estratégia Comercial.

SELEÇÃO CAPACITAÇÃO INCENTIVOS

Direcionado para oportunidades internas. Contudo não deve gerar

SELEÇÃO

Incluindo conteúdo para desenvolvimento de

habilidades para rentabilizar

CAPACITAÇÃO

Principalmente direcionado para aceleração da

rentabilização através da conquista de novos Clientes.

INCENTIVOS

Pessoasg

impacto na Rede Atualp

novos negócios q

Gradativamente convergirá para o modelo da Rede Atual

Ações A conquista e fidelização dos novos Clientes serão fatores determinantes: migrações de ClientesAções Comerciais

A conquista e fidelização dos novos Clientes serão fatores determinantes: migrações de Clientes não serão estimuladas. A conquista de folhas business deve ser foco

INTERNA EXTERNA

ComunicaçãoÁreas terão percepção clara de que este é um

projeto que estamos construindo juntos, através de uma comunicação estruturada,

contínua e participativa

Nossos Clientes e o mercado devem ter a percepção clara de nosso crescimento

Gestão Comercial

Novas agências terão gestão comercial específica por um período e deverão incorporar a Rede Atual gradativamente

20Comunicação visual externa - Agências.

2010 Jan Troca da Marca OutMarJa

21Santander Adquirência / Conta Integrada

Estratégia pioneira de comercializaçãost atég a p o e a de co e c a ação

SERVIÇO DE ADQUIRÊNCIA

SERVIÇOS FINANCEIROS

Appropriado “Time To Market”

150 000 novas contas originadas via adquirência

Objetivos 2012

300 000 novos estabelecimentos credenciados

~ R$ 5 bilhões em financiamento

10% de share do volume de transações com cartões10% de share do volume de transações com cartões

22

Nossa Ambição

2010 D fi

Como fomos em 2009

2010 – Desafios

Estratégias a ég a

Resultados 1º trimestre de 2010

Conclusões

23Nossa estratégia é crescer market share através do incremento de contas ativas, com foco nos segmentos mais rentáveis...

Abertura de 600 novas agências e 300 PAB´s até 2013

R d i t d iã

Alavancas de crescimento Base de Correntistas

282 R$/conta /mês

Receita por Segmento

Foco em crescer nos segmentos mais rentáveis

Aumentar #

− Rede mais concentrada na região sudeste

− Expansão em cidades principais no Norte/ Nordeste e Centro-Oeste

Financiamento ao consumo –Ganho de Market share em

37 104

Menor Renda Média Renda Alta Rendade Clientes Ganho de Market share em

automóveis− Mais de 1 milhão de contratos

Fortalecer a estratégia atual− Novos produtos− Universitários

R$/conta /mês

Business

1.005

Aumentar receita

Foco nos segmentos de alta renda e na parcela emergente do média renda tanto em

Universitários− Folhas de pagamento (Cross sell

com atacado)217

Receita entre Receita entremédia do média renda tanto em indivíduos quanto em Business

Receita entre R$0.5-R$5MM

Receita entre R$5-R$30MM

24…alavancando os lucros pelo desenvolvimento do relacionamento com nossos clientes e troca de melhores práticas ...

Identificamos oportunidades de troca de boas práticas tanto no e temos estratégias bem definidas

Clientes Satisfeitos são mais

Consolidar o sistema de CRM para mapear e fortalecer o 434364

PF

V j

Receita média (R$/conta /mês)

+19%+49%

Identificamos oportunidades de troca de boas práticas tanto no relacionamento com clientes, quanto na gestão de produtos ...

... e temos estratégias bem definidaspara aproveitá-las

Expandir a penetração de Oportunidade de crescer a

são mais rentáveis1 relacionamento de clientes

Low Medium High305

364

Relacionamento

VarejoR$

% de saldo de cartões financiado

p p çfinanciamento em cartões

Crescer a penetração dos d t d

Penetração de cartões2

Oportunidade

31% 18%

% Penetração de seguros

produtos de seguros:– Vendas nas rede; Cross-selling– Novos clientes através de parcerias

C i t t t l d

de crescer a Penetração de seguros3

Resultados

32% 4%

SMEs Accounts / SME Loan Amount/ Conquistar a quota natural de Business, alavancando melhores práticas e lançando novos produtos

Resultados de Business

denotam potencial de crescimento2

SMEs Accounts /Branch

SME Loan Amount/ Branch (R$ MM)

150 265 5.9 11.1

(1) Fevereiro, 2009, compreende PF apenas(2) As of December, 2008(3) As of June, 2009

25... tratando as reclamações como oportunidades de melhoria e encantamento dos clientes.

Nos últimos 7 meses apenas em 1 mês ficamos entre os 5 bancos com mais reclamações, e ainda assim em 5º lugar.

Unificação dos Resultados Santander e Real

26

Nossa Ambição

2010 D fi

Como fomos em 2009

2010 – Desafios

Estratégias a ég a

Resultados 1º trimestre de 2010

Conclusões

27

PF

Base de Clientes – 1º Tri/10

+456(+5%)

9 849

PF

Base Ativa (Critério BACEN*) 9.8499.7189.393

+131

+478(+5%)

Base Ativa (Critério BACEN*)

4 0PJ

10.37910.2409.901

+139

529,7527,9

4,0(+1%)

525,7+1,8

mar/10dez/09mar/09

mar/10dez/09mar/09

• Clientes com movimentação espontânes nos últimos 30 dias

• Fonte BACEN

28

PF

Volume de Empréstimos – 1º Tri/10

Produção Parcelados PF

+12,3%

46.43943 086

PF

Empréstimos *

Produção Parcelados PF(CP Puro, Consignado, Crédito Imobiliário, CDC / Leasing)

41.349

43.086

+3,9%

Empréstimos *

+22%+40%

PJ **

77.250

74.376

+22%

Produção Parcelados BUS(Capital de Giro, Crédito

mar/10dez/09mar/09

33.027

-6,7%

32 617

mar/10dez/09mar/09

(Capital de Giro, Crédito Imobiliário, CDC / Leasing)

mar/09 mar/10

30.811

dez/09

32.617

j /10 /10f /10

+65%+33%

mar/09 mar/10dez/09 jan/10 mar/10fev/10

* Carteira Total Saldo Ponta* Small Business + Governos + Instituições + Empresas

29

Crédito Pessoal Puro

Crescemos volume em produtos de maior spread

Cheque Especial

+7%

Crédito Pessoal Puro

+11%

Cheque Especial

Cheque EmpresaCartão de Crédito

dez/09 jan-10 fev-10 mar/10dez/09 jan-10 fev-10 mar/10

+15%+1%

jan-10 fev-10 mar/10dez/09fev-10 mar/10jan-10dez/09 jan-10 fev-10 mar/10dez/09fev-10 mar/10jan-10dez/09

30

Nossa Ambição

2010 D fi

Como fomos em 2009

2010 – Desafios

Estratégiass a ég as

Resultados 1º trimestre de 2010

Conclusões

31Conclusões

O Santander já possui a escala necessária para competir com os grandes players.

A conclusão da integração durante 2010 nos orientará para o mercado.

O S t d té it d l t d d t f t O Santander mantém ritmo de lançamentos de produtos com forte posicionamento comercial mesmo durante o processo de integração

A Conta Integrada nos levará a alcançar a cota natural em pequenas A Conta Integrada nos levará a alcançar a cota natural em pequenas e médias empresas

Estamos no rumo certo em busca da satisfação de clientes que pode ser notado pelo bom desempenho no aumento da Base de Clientes e ranking de reclamações do Banco Central

Investor RelationsJuscelino Kubitschek Avenue 2,235 10th floor

São Paulo | SP | Brazil | 04543-011T l ( 11) 3 3 3300Tel. (55 11) 3553-3300

e-mail: ri@santander.com.br

Santander Brasil

Finance

May 12, 2010

2

This presentation was prepared by Banco Santander (Brasil) S.A. It is provided forThis presentation was prepared by Banco Santander (Brasil) S.A. It is provided forinformational purposes only and does not constitute an offer to sell or a solicitationto buy any security. It may contain forecasts about future events. Thesepredictions/estimates evidently involve risks and uncertainties, whether foreseen ornot by the Company. Therefore, the future results of the Company may differ fromnot by the Company. Therefore, the future results of the Company may differ fromcurrent expectations. Past performance and/or these predictions are not guaranteeof future performance. The Company is not obliged to update the presentation/suchforecasts in light of new events or circumstances.© 2010 by Banco Santander (Brasil) S.A.. All Rights Reserved.© 2010 by Banco Santander (Brasil) S.A.. All Rights Reserved.

3Highlights

Net profit of R$ 1,763 MM in 1Q10, up 112% YoY and 11% vs. 4Q09

Net profit increase driven by revenue growth and cost control

Performance Ratios improved

Efficiency Ratio¹: 33.1%, drop of 4.4 p.p. YoY and 4.1 p.p. QoQ

Recurrence²: 61.1%, increase of 8.3 p.p. YoY and 3.5 p.p. QoQ

ROAE³: 18.0%, increase of 2.6 p.p. YoY and 0.1 p.p. QoQ

Sound Balance Sheet Metrics

BIS Ratio³: 24.4% in mar/10

Coverage: 102.8% in mar/10

Equity³ of R$ R$ 42,417 MM

1. General Expenses excluding amortization / Total Revenue excluding Cayman hedge2. Net Fee/General Expenses excluding amortization 3. Excludes Goodwill on acquired companies (Banco Real and Real Seguros Vida e Previdência)

4Net profit evolutionR$ MM

Net profit growth is accelerating

76%

112%

11%

1,591 1,5911,763

906 832

4Q08 4Q09 1Q09 4Q09 1Q10

5Results by Segment¹

Net Profit before tax

847

Global Wholesale Banking

0.9xR$ MM

Global 1 204

Commercial Banking

2.1x

847 758

1Q09 1Q10

R$ MM

56%36%

Commercial Banking

Global WholesaleBanking 575

1,204

1Q09 1Q10

1Q09 1Q10

Asset Management and Insurance 56%

8%

Asset Management

1Q09 1Q10

59

1622.7x

R$ MM

Asset Management and Insurance

59

1Q09 1Q10

1. Does not consider the fiscal effect of Cayman hedge

6Gross Revenue vs General Expenses

Gross Revenue¹ and General Expenses²R$ MM 1Q10 x 1Q109

7,288 7,471 7,598 7,776 8,03210.2%

3 0

2 731 2 649 2 674 2 893 2 655-2.8 %

2.7 3.0

2,731 2,649 2,674 2,893 2,655

1Q09 2Q09 3Q09 4Q09 1Q10

General ExpensesGross Revenue

1. Gross Revenue = Total Income excluding Cayman Hedge. Including Cayman Hedge 1Q10/1Q09 grows 7.6%2. Excludes amortization

7Total Revenues

8 032

3.3%

R$ MM10.2%

1,443 1,573 1,556 1,666 1,622673 409 386 260 5777,288 7,471 7,598 7,776 8,032

1Q10 1Q09Y-o-YVar.

Net Interest Income 5,833 5,172 12.8%

Net Fees 1 622 1 443 12 4%

5,172 5,489 5,656 5,850 5,833

Net Fees 1,622 1,443 12.4%

Subtotal 7,455 6,615 12.7%

Others¹ 577 673 -14.3%

1Q09 2Q09 3Q09 4Q09 1Q10

Others¹ Net Fees Net Interest Income

Total Revenues 8,032 7,288 10.2%

1. Result from Financial Operations excluding the fiscal effect of Cayman hedge + Others

8Net Fees

R$ MM

1Q10 1Q09Y-o-YVar.

Banking fees 588 549 7 1%-2.6%

12.4%

Banking fees 588 549 7.1%

Insurance 342 259 32.2%

Asset Management 201 171 17.6%1,443 1,573 1,556 1,666 1,622

Credit and Debit Cards 213 171 24.9%

Collection services 125 121 2.8%

Capital Markets 108 64 68 1%Capital Markets 108 64 68.1%

Trade (COMEX) 102 101 1.3%

Others¹ (56) 8 n.a.

1Q09 2Q09 3Q09 4Q09 1Q10

Total 1,622 1,443 12.4%

1. Includes taxes and others

9

R$ MM

General Expenses and Amortization

6 9%

-3.5%

Variation

317 328 339 265 286

1Q10 1Q09 Y-o-Y Q-o-Q

Other General Expenses 1,300 1,371 -5.2% -8.6%

-6.9%

2,977 3,0133,048 3,158 2,941

Variation

2,731 2,649 2,674 2,893 2,655

Personnel Expenses 1,355 1,360 -0.4% -7.8%

Depreciation and Amortization 286 317 -9.8% 7.9%

1Q09 2Q09 3Q09 4Q09 1Q10

Depreciation and Amortization General Expenses

Total 2,941 3,048 -3.5% -6.9%

10Non-recurrent events

Value (R$ Million)Value (R$ Million)

Sale of Assets 64

Provision for contingencies (28)

Total (after tax) 37Total (after tax) 37

11Managerial Loan Portfolio¹ - IFRS

R$ Billion

1.1% Variation

2.0%

1Q10 1Q09 Y-o-Y Q-o-Q

Individuals 43,992 40,503 8.6% 1.8%

Consumer Financing 25,509 24,511 4.1% 1.6%

R$ Million137.1 134.2 132.9 138.4 139.9

SMEs 30,811 33,027 -6.7% -2.0%

Corporate 39,597 39,076 1.3% 2.5%mar.09 jun.09 sep.09 dec.09 mar.10

Total IFRS 139,910 137,117 2.0% 1.1%

Individuals31%

Corporate29%

Consumer Finance

SMEs22%

18%

1. Loans for the year 2009 have been reclassified for comparison purposes with the current period, due to re-segmentation of clients occurred in 2010

12

R$ Billion

Managerial Loan Portfolio - BR GAAP¹

3.6%

1Q10 1Q09 Y-o-Y Q-o-Q1.5%

R$ Million

Variation

139.1 137.3 136.2 142.0 144.1 Individuals 46,439 41,349 12.3% 3.5%

Consumer Financing 27,842 26,224 6.2% 1.9%

mar.09 jun.09 sep.09 dec.09 mar.10

SMEs 30,811 33,027 -6.7% -2.0%

Corporate 39,031 38,497 1.4% 1.7%

Total BR GAAP 144,124 139,097 3.6% 1.5%

5 9%

>15%

Annualized growth rate

3.6%5.9%

1Q10/ 1Q10/ mar 10/1Q10/ 1Q09

1Q10/ 4Q09

mar.10/ feb.10

1. The portfolio in BR GAAP is higher than in IFRS because includes portfolios acquired from other banks and portfolio of the partnership Aymoré

13

R$ Billion

Deposits and Assets Under Management

1Q10 1Q09 Y-o-Y Q-o-Q

0.3%R$ Million

Variation

6.7%

240 3235 7 243 1 239 5

80.1 85.5 93.1 98.4 106.6

Demand 13,699 12,356 10.9% -9.5%

Savings 25,781 20,447 26.1% 2.2%

Time 68 252 87 954 -22 4% -9 9%

225.2 240.3235.7 243.1 239.5

145.1 150.2 150.0 141.1 133.8

mar.09 jun.09 sep.09 dec.09 mar.10

Time 68,252 87,954 22.4% 9.9%

Others¹ 26,025 24,333 7.0% 4.3%

Funding from Clients 133,757 145,090 -7.8% -5.2%Funds (AUM) Funding from Clients¹ Clients

Funds (AUM) 106,572 80,125 33.0% 8.3%

Total 240,329 225,215 6.7% 0.3%

Funds (AUM) Funding from Clients

Demand6%

Savings11%

Funds

Time28%

Funds44%

Others¹11%

1. Repurchase commitments backed on Debentures, Real Estate Credit Notes (LCI) and Agribusiness Credit Notes (LCA)

14Performance Ratios

Efficiency Ratio¹ (%) Recurrence² (%) ROAE (adjusted)³ (%)

8.3 p.p.

-4.4 p.p. 2.6 p.p.

19 357.0 52 861.1

36.3 37.533.1

19.3

15.418.0

52.8

2009 1Q09 1Q10 2009 1Q09 1Q102009 1Q09 1Q10

1.General Expenses excluding amortization / Total Revenue excluding Cayman hedge2. Net Fee/General Expenses excluding amortization 3. Excludes Goodwill on acquired companies (Banco Real and Real Seguros Vida e Previdência)

15

R$ MM

Allowance for Loan Losses¹ - IFRS

1.8%

11 9%

Y-o-Y

11.9%

2,360 2,467 2,148

2,403 500

3,008

1Q10 1Q09 Var.

Allowance for loan losses 2,403 2,360 1.8%

2,508

1Q09 2Q09 3Q09 4Q09 1Q10

Additional Provision

1. Includes recoveries of written-off credits

16Quality of Loan Portfolio - IFRS

Coverage²Deliquency¹ (%)

8.6 8.89.7 9.3 8.8

7.07.7

7.2 7.0107%

97% 101% 102% 103%

4.2

5.7 6.15.3 5.3

6.0

1Q09 2Q09 3Q09 4Q09 1Q10

Individuals Corporate Total

1Q09 2Q09 3Q09 4Q09 1Q10

1. Nonperforming loans for over 90 days + performing loans with high delinquency risk / total loans managerial2. Allowance for Loan Losses / nonperforming loans for over 90 days + performing loans with high delinquency risk

17Quality of Loan Portfolio – BR GAAP

Delinquency Over 90¹ (%) NPL Over 60² (%) Coverage Ratio Over 90³

7.2 7.47.9 7.8

7.2

6.2 6.55.9 114% 108% 113% 120%

8.9 9.2 9.4 9.28.7

6.2

7.6 7.76.8 6.4

3.2

5.1 5.3

4.23.7

5.0 5.4 97% 108%

4.0

6.2 6.1

4.7 4.4

1Q09 2Q09 3Q09 4Q09 1Q10

Individuals Corporate Total

1Q09 2Q09 3Q09 4Q09 1Q101Q09 2Q09 3Q09 4Q09 1Q10

Individuals Corporate Totalp p

1) Nonperforming loans for over 90 days / total loans BR GAAP2) Nonperforming loans for over 60 days / total loans BR GAAP3) Allowance for Loan Losses / nonperforming loans for over 90 days + performing loans with high delinquency risk

18ConclusionIntegration is evolving as scheduled

A ti iti

• Credit card platform integration concluded in the 1Q10 and final tests for branch networkintegration• Costs controlled and synergies obtainedActivities• Loan book growth is accellerating

• Commercial re-alignment to cacht up loan activity in corporate loans

• L hi f “C t I t d ” d t f i SME

Well behaved results

• Launching of “Conta Integrada” product focusing SMEs

• Balanced betweenRevenues

Improved asset quality

Balanced between

• Gross jaws increased by 13 p.p.

Costs

Net income jumped 112% YoY and 11% QoQ

• Both NPLs over 60 and 90 days continue its declining trend

• Increased coverage

Net income jumped 112% YoY and 11% QoQ

19

ANNEXES

Income Statement

Balance Sheet

20Adjusted Allowance for Loan Losses¹ - BR GAAP

R$ MM$

-9.6%

-11.4%

2,413 2,490 2,462569419 157

2,403 2,181 1Q10 1Q09 Y-o-Y Q-o-Q

Adjusted Allowance for Loan Losses² 2,181 2,413 -9.6% -11.4%

Variation

1Q09 2Q09 3Q09 4Q09 1Q10for Loan Losses

Increase in Additional Provision

Decrease in Additional Provision

1.Excluding recoveries of written-off credits2.Allowance for Loan Losses adjusted by the increase/decrease in additional provision

21Quarterly Results ManagerialR$ MM

Income Statements 1Q09 2Q09 3Q09 4Q09 1Q10 - Interest and Similar Income 9,996 9,775 9,731 9,841 9,278 - Interest Expense and Similar (4,824) (4,286) (4,075) (3,991) (3,445)Interest Income 5,172 5,489 5,656 5,850 5,833 Income from Equity Instruments 7 8 7 8 4 Income from Companies Accounted for by the Equity Method 205 52 33 5 10 Net Fee 1,443 1,573 1,556 1,666 1,622 - Fee and Commission Income 1,664 1,799 1,797 1,888 1,841 - Fee and Commission Expense (221) (226) (241) (222) (219) Gains/Losses on Financial Assets and Liabilities and Exchange Diferences 514 459 240 306 608Gains/Losses on Financial Assets and Liabilities and Exchange Diferences 514 459 240 306 608 Other Operation Income (Expenses) (53) (110) 106 (59) (45) Total Income 7,288 7,471 7,598 7,776 8,032 General Expenses (2,731) (2,649) (2,674) (2,893) (2,655) - Administrative Expenses (1,371) (1,297) (1,345) (1,423) (1,300)

P l (1 360) (1 352) (1 329) (1 470) (1 355)- Personnel espenses (1,360) (1,352) (1,329) (1,470) (1,355) Depreciation and Amortization (317) (328) (339) (265) (286) Provisions (net)¹ (559) (1,250) (1,190) (482) (629) Impairment Losses on Financial Assets (net) (2,381) (2,518) (3,844) (2,125) (2,407) - Allowance for Loan Losses² (2,360) (2,467) (3,008) (2,148) (2,403) - Impairment Losses on Other Financial Assets (net) (21) (51) (836) 23 (4) Net Gains on Disposal of Assets 49 1,040 2,280 34 117 Net Profit before taxes 1,349 1,766 1,831 2,045 2,172 Income Taxes (517) (153) (359) (454) (409) Net Profit 832 1,613 1,472 1,591 1,763Net Profit 832 1,613 1,472 1,591 1,763

1. Includes provision for tax contingencies and legal obligations2. Includes recovery of credits written off as losses

22

I S Var Y-o-Y

Income Statement ManagerialR$ MM

1Q10 1Q09 ABS % - Interest and Similar Income 9,278 9,996 (718) -7.2% - Interest Expense and Similar (3,445) (4,824) 1,379 -28.6%Interest Income 5,833 5,172 661 12.8%Income from Equity Instruments 4 7 (3) 42 9%

Income Statements Var Y o Y

Income from Equity Instruments 4 7 (3) -42.9%Income from Companies Accounted for by the Equity Method 10 205 (195) -95.1%Net Fee 1,622 1,443 179 12.4%- Fee and Commission Income 1,841 1,664 177 10.6%- Fee and Commission Expense (219) (221) 2 -0.9%Gains/Losses on Financial Assets and Liabilities and Exchange Diferences 608 514 94 18.3%Other Operation Income (Expenses) (45) (53) 8 -15.1%Total Income 8,032 7,288 744 10.2%General Expenses (2,655) (2,731) 76 -2.8%- Administrative Expenses (1,300) (1,371) 71 -5.2%p ( ) ( )- Personnel espenses (1,355) (1,360) 5 -0.4%Depreciation and Amortization (286) (317) 31 -9.8%Provisions (net)¹ (629) (559) (70) 12.5%Impairment Losses on Financial Assets (net) (2,407) (2,381) (26) 1.1%

Allowance for Loan Losses² (2 403) (2 360) (43) 1 8%- Allowance for Loan Losses (2,403) (2,360) (43) 1.8%- Impairment Losses on Other Financial Assets (net) (4) (21) 17 -81.0%Net Gains on Disposal of Assets 117 49 68 n.aNet Profit before taxes 2,172 1,349 823 61.0%Income Taxes (409) (517) 108 -20.9%Net Profit 1,763 832 931 111.9%

1. Includes provision for tax contingencies and legal obligations2. Includes recovery of credits written off as losses

23

Assets mar/09 jun/09 sep/09 dec/09 mar/10

Balance Sheet - AssetsR$ MM

Assets mar/09 jun/09 sep/09 dec/09 mar/10

Cash and Balances with the Brazilian Central Bank 23,317 24,813 21,261 27,269 36,835

Financial Assets Held for Trading 22,347 15,809 19,261 20,116 23,133

Other Financial Assets at Fair Value Through Profit or Loss 6,462 6,068 16,986 16,294 15,873

Available - for- Sale Financial Assets 27,294 30,593 44,763 46,406 37,183

Loans and Receivables 159,356 161,645 149,973 152,163 150,003

- Loans and advances to credit institutions 30,977 31,993 27,932 24,228 20,330

- Loans and advances to credit customers 137,227 138,811 132,343 138,005 139,678

- Impairment losses (8,848) (9,159) (10,302) (10,070) (10,005)99 178 157 163 133Hedging derivatives 99 178 157 163 133

Non-current assets held for sale 120 58 53 171 41

Investments in associates 460 502 417 419 423

Tangible Assets 3,742 3,600 3,682 3,702 3,835

Intangible Assets: 30,534 30,589 30,982 31,618 31,587Intangible Assets: , , , , ,

- Goodwill 27,190 27,263 28,312 28,312 28,312

- Others 3,344 3,326 2,670 3,306 3,275

Tax Assets 12,798 13,386 15,058 15,779 14,834

Other Assets 3,170 1,637 3,642 1,872 2,169Total Assets 289,699 288,878 306,235 315,972 316,049

24

Liabilities mar/09 jun/09 sep/09 dec/09 mar/10

Balance Sheet - LiabilitiesR$ MM

Liabilities mar/09 jun/09 sep/09 dec/09 mar/10

Financial Liabilities Held for Trading 8,268 4,887 5,316 4,435 4,505

Other Financial Liabilities at Fair Value Through Profit or Loss 257 363 2 2 2

Financial liabilities at amortized cost 208,267 207,644 205,801 203,567 203,499

- Deposits from the Brazilian Central Bank 1,049 870 562 240 117 p- Deposits from credit institutions 23,435 21,793 18,754 20,956 24,092

- Customer deposits 155,231 154,922 154,548 149,440 147,287

- Marketable debt securities 11,535 11,299 10,945 11,439 11,271

- Subordinated liabilities 10,938 10,996 11,149 11,304 9,855 6 079 7 764 9 843 10 188 10 877- Other financial liabilities 6,079 7,764 9,843 10,188 10,877

Liabilities for Insurance Contracts - - 13,812 15,527 16,102

Provisions1 9,749 10,203 11,555 9,480 9,881

Tax Liabilities 6,402 7,352 9,287 9,457 8,516

Other Liabilities² 6,084 6,624 4,796 4,238 2,815 Other Liabilities , , , , ,Total Liabilities 239,027 237,073 250,569 246,706 245,320

Equity Shareholders' Equity 50,148 51,135 55,079 68,706 70,069

Minority Interests 5 5 5 1 1

Valuation Adjustments 519 665 582 559 659 Total Equity 50,672 51,805 55,666 69,266 70,729 Total Liabilities and Equity 289,699 288,878 306,235 315,972 316,049

1. Includes provision for pension and contingencies2. Includes other financial liabilities at fair value in income and derivatives used as hedge

25Reconciliation IFRS x BRGAAP

1Q10R$ MM

1Q10

BR GAAP Net Profit 1,015

- Reversal of Goodwill amortization / Others 832

PPA ti ti (58)- PPA amortization (58)

- Others (26)

IFRS Net profit 1,763

Investor RelationsJuscelino Kubitschek Avenue 2,235 10th floor

São Paulo | SP | Brazil | 04543-011T l ( 11) 3 3 3300Tel. (55 11) 3553-3300

e-mail: ri@santander.com.br