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Banco Daycoval S.A. Interim Financial Statements for the Three-month Period Ended March 31, 2009 and Independent Accountants’ Review Report Deloitte Touche Tohmatsu Auditores Independentes

(Convenience Translation into English from the Original Previously Issued in Portuguese)


INDEPENDENT ACCOUNTANTS’ REVIEW REPORT

To the Shareholders and the Management of Banco Daycoval S.A. São Paulo - SP

1. We have performed a review of the accompanying interim financial statements of Banco Daycoval S.A. (Bank) and its subsidiaries and special purpose entity represented by the receivables investment fund (Consolidated), consisting of the individual and consolidated balance sheets as of March 31, 2009, the related statements of income, changes in shareholder’s equity (Bank), cash flows and value added for the quarter then ended, the performance report and the related notes to the interim financial statements, all expressed in Brazilian reais and prepared under the responsibility of the Bank’s Management.

2. Our review was conducted in accordance with specific standards established by the Brazilian Institute of Independent Auditors (IBRACON), together with the Federal Accounting Council- CFC, and consisted principally of: (a) inquiries of and discussions with certain officials of the Bank and its subsidiaries who have responsibility for accounting, financial and operating matters about the criteria adopted in the preparation of the interim financial statements, and (b) review of the information and subsequent events that had or might have had material effects on the financial position and results of operations of the Bank and its subsidiaries.

3. Based on our review, we are not aware of any material modifications that should be made to the interim financial statements referred to in paragraph 1 for them to be in conformity with standards established by the Brazilian Securities Commission (CVM), applicable to the preparation of mandatory interim financial statements.

São Paulo, May 5, 2009

DELOITTE TOUCHE TOHMATSU Gilberto Bizerra de Souza Auditores Independentes Engagement Partner

FEDERAL PUBLIC SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) INTERIM FINANCIAL STATEMENTS (ITR) 3/31/2009 Corporate Law FINANCIAL INSTITUTION 02079-6 BANCO DAYCOVAL S/A 62.232.889/0001-90

Page: 1

REGISTRATION WITH THE CVM DOES NOT IMPLY ANALYSIS OF THE COMPANY. MANAGEMENT IS RESPONSIBLE FOR THE ACCURACY OF THE INFORMATION PROVIDED.

01.01 - IDENTIFICATION

1 - CVM CODE 2 - COMPANY NAME 3 - FEDERAL TAXPAYERS’ REGISTRATION NUMBER (CNPJ)

02079-6 BANCO DAYCOVAL S/A 62.232.889/0001-90

4 - STATE REGISTRATION NUMBER (NIRE) 35300524110

01.02 - HEAD OFFICE 1 - ADDRESS AVENIDA PAULISTA, 1793

2 - SUBURB OR DISTRICT BELA VISTA

3 - POSTAL CODE 4 – MUNICIPALITY 5 – STATE 01311-200 SÃO PAULO SP 6- AREA CODE 11

7 - TELEPHONE 3138-0701

8 - TELEPHONE 3138-0714

9 - TELEPHONE 3138-0707

10 – TELEX

11- AREA CODE 11

12 - FAX 3138-0713

13 - FAX -

14 - FAX -

15 - E-MAIL [email protected]

01.03 - INVESTOR RELATIONS OFFICER (Company Mail Address) 1 – NAME MORRIS DAYAN 2 – ADDRESS AVENIDA PAULISTA, 1793

3 - SUBURB OR DISTRICT BELA VISTA

4 - POSTAL CODE 5 – MUNICIPALITY 6 – STATE 01311-200 SÃO PAULO SP

7- AREA CODE 011

8 - TELEPHONE 3138-0500

9 - TELEPHONE 3138-0504

10 - TELEPHONE 3138-1024

11 – TELEX

12- AREA CODE 011

13 - FAX 3138-0757

14 - FAX -

15 - FAX -

16 - E-MAIL [email protected] 01.04 - GENERAL INFORMATION /INDEPENDENT ACCOUNTANT

CURRENT YEAR CURRENT QUARTER PRIOR QUARTER 1 - BEGINNING 2 - END 3 - QUARTER 4 - BEGINNING 5 - END 6 - QUARTER 7 - BEGINNING 8 – END

1/01/2009 12/31/2009 1 1/01/2009 3/31/2009 4 10/01/2008 12/31/2008 9 - INDEPENDENT ACCOUNTANT 10 - CVM CODE

DELOITTE TOUCHE TOHMATSU 00385-9

11 - PARTNER RESPONSIBLE 12 - INDIVIDUAL TAXPAYERS’ REGISTRATION NUMBER OF THE PARTNER RESPONSIBLE

GILBERTO BIZERRA DE SOUZA 846.832.957-68


Page: 2

01.01 -IDENTIFICATION


02079-6 BANCO DAYCOVAL S/A 62.232.889/0001-90 01.05 - CAPITAL COMPOSITION

NUMBER OF SHARES 1 - CURRENT QUARTER 2 - PRIOR QUARTER 3 - SAME QUARTER IN PRIOR YEAR (thousand) 3/31/2009 12/31/2008 3/31/2008

Paid-up capital 1 - Common 142,418 142,418 142,418 2 - Preferred 80,215 80,215 80,215 3 - Total 222,633 222,633 222,633Treasury shares 4 - Common 0 0 0 5 - Preferred 3,306 2,615 0 6 - Total 3,306 2,615 0 01.06 - CHARACTERISTICS OF THE COMPANY 1 - TYPE OF COMPANY Financial institution 2 - SITUATION Operational 3 - NATURE OF OWNERSHIP Domestic Private 4 - ACTIVITY CODE 1240 – Banks 5 - MAIN ACTIVITY Multiple service bank with commercial, foreign exchange, investment, credit and financing portfolios 6 - TYPE OF CONSOLIDATION Full consolidation 7 - TYPE OF REPORT OF INDEPENDENT ACCOUNTANTS Unqualified report 01.07 - COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS 1 - ITEM 2 - CNPJ 3 - COMPANY NAME 01.08 - DIVIDENDS APPROVED AND/OR PAID DURING AND AFTER THE QUARTER 1 - ITEM 2 - EVENT 3 - DATE OF

APPROVAL 4 - TYPE 5 - DATE OF PAYMENT

6 - TYPE OF SHARE 7 - AMOUNT PER SHARE

01 RCA 3/30/2009 Interest Own Equity 4/15/2008 Registered common 0.1106300000

02 RCA 3/30/2009 Interest Own Equity 4/15/2008 Registered preferred 0.1106300000

(Convenience Translation into English from the Original Previously Issued in Portuguese) FEDERAL PUBLIC SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) INTERIM FINANCIAL STATEMENTS (ITR) 3/31/2009 Corporate Law FINANCIAL INSTITUTION

Page: 3



02079-6 BANCO DAYCOVAL S/A 62.232.889/0001-90 01.09 - SUBSCRIBED CAPITAL AND ALTERATIONS IN THE CURRENT YEAR

1 - ITEM 2 - DATE OF ALTERATION 3 - CAPITAL (R$ thousand)

4 - AMOUNT OF ALTERATION (R$ thousand) 5 - NATURE OF ALTERATION 7 - NUMBER OF SHARES ISSUED

(thousand) 8 - SHARE PRICE ON ISSUE DATE

(Reais) 01.10 - INVESTOR RELATIONS OFFICER 1 - DATE

5/06/2009 2 – Signature

(Convenience Translation into English from the Original Previously Issued in Portuguese)FEDERAL PUBLIC SERVICEBRAZILIAN SECURITIES COMMISSION (CVM) INTERIM FINANCIAL STATEMENTS (ITR) 3/31/2009 Corporate Law FINANCIAL INSTITUTION


1 - CVM CODE 2 - COMPANY NAME 02079-6 BANCO DAYCOVAL S/A 62.232.889/0001-90

02.01 - BALANCE SHEETS - ASSETS (In thousands of Brazilian reais - R$)

1 - Code 2 - Description 3 - 3/31/2009 4 - 12/31/20081 Total Assets 6.596.488 6.681.6811.01 Current Assets 5.070.250 5.072.8531.01.01 Cash 26.387 45.5571.01.02 Interbank investments 2.233.954 1.801.3671.01.02.01 Money market investments 2.189.868 1.784.6871.01.02.02 Interbank deposits 40.025 10.1001.01.02.03 Foreign currency investments 4.061 6.5801.01.03 Securities 531.026 623.3651.01.03.01 Own portfolio 43.964 201.9451.01.03.02 Linked to repurchase commitments 312.504 193.2331.01.03.03 Derivatives 77.612 154.4721.01.03.04 Linked to guarantees 96.946 73.7151.01.04 Interbank accounts 26.493 12.9011.01.05 Interbranch accounts 1.159 01.01.06 Lending operations 1.903.654 2.236.3981.01.06.01 Lending operations - Public sector 9.940 12.8471.01.06.02 Lending operations - Private sector 2.057.479 2.358.2681.01.06.03 (Allowance for loan losses) (163.765) (134.717)1.01.08 Other credits 297.232 292.6891.01.08.01 Foreign exchange portfolio 158.234 205.7271.01.08.02 Income receivable 125 1681.01.08.03 Trading account 3.137 4.9221.01.08.04 Other receivables - other 149.494 95.6271.01.08.05 (Allowance for other loan losses) (13.758) (13.755)1.01.09 Other assets 50.345 60.5761.01.09.01 Repossessed assets 19.099 26.1911.01.09.02 (Allowance for repossessed asset losses) (7.884) (7.375)1.01.09.03 Prepaid expenses 39.130 41.7601.02 Long-term assets 1.460.195 1.542.3311.02.02 Securities 374.060 373.1601.02.02.01 Own portfolio 88.765 74.3991.02.02.02 Linked to repurchase commitments 172.740 254.2061.02.02.03 Derivatives 111.884 18.1401.02.02.04 Linked to guarantees 671 26.4151.02.05 Lending operations 861.710 931.5721.02.05.01 Lending operations - Public sector 4.285 5.0551.02.05.02 Lending operations - Private sector 898.329 961.3221.02.05.03 (Allowance for loan losses) (40.904) (34.805)1.02.07 Other credits 178.236 182.9791.02.07.02 Tax credits 178.236 182.9791.02.08 Other assets 46.189 54.6201.02.08.01 Prepaid expenses 46.189 54.6201.03 Permanent assets 66.043 66.4971.03.01 Investments 59.731 59.8721.03.01.02 In subsidiaries 59.508 59.6491.03.01.03 Other investments 223 2231.03.02 Property and equipment in use 6.223 6.5261.03.03 Leased property 0 01.03.04 Intangible assets 89 991.03.05 Deferred charges 0 0

3 - FEDERAL TAXPAYERS’ REGISTRATION NUMBER

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02.02 - BALANCE SHEETS - LIABILITIES AND SHAREHOLDERS' EQUITY (In thousands of Brazilian reais - R$)

1 - Code 2 - Description 3 - 3/31/2009 4 - 12/31/20082 Total Liabilities and Shareholders' Equity 6.596.488 6.681.6812.01 Current Liabilities 2.966.909 3.405.7522.01.01 Deposits 1.034.357 1.262.4892.01.01.01 Demand deposits 70.169 113.8432.01.01.02 Interbank deposits 397.446 460.5102.01.01.03 Time deposits 566.719 687.9802.01.01.04 Other deposits 23 1562.01.02 Money market funding 1.066.663 1.290.6422.01.02.01 Own portfolio 479.275 440.4302.01.02.02 Third parties 587.388 850.2122.01.03 Funds from acceptance and issuance of securities 289.915 286.7172.01.03.01 Securities issued abroad 289.915 286.7172.01.04 Interbank accounts 6.166 4942.01.05 Interbranch accounts 4.638 2.6652.01.06 Borrowings 342.968 293.2492.01.06.02 Foreign borrowings 342.968 293.2492.01.07 Domestic onlendings 5.092 3.6862.01.07.01 BNDES 2.053 9002.01.07.02 FINAME 3.039 2.7862.01.08 Foreign onlendings 41.233 41.6602.01.09 Other payables 175.877 224.1502.01.09.01 Collected taxes and other 1.009 6772.01.09.02 Foreign exchange portfolio 35.594 58.9352.01.09.03 Social and Statutory 28.095 29.7922.01.09.04 Tax and social security 60.286 69.9072.01.09.05 Trading account 3.536 15.5812.01.09.06 Derivatives 13.736 19.0442.01.09.07 Other 33.621 30.2142.02 Long-term liabilities 1.989.331 1.661.1432.02.01 Deposits 898.635 499.6912.02.01.01 Interbank deposits 4.245 3.1272.02.01.02 Time deposits 894.390 496.5642.02.03 Funds from acceptance and issuance of securities 489.092 500.3612.02.03.01 Securities issued abroad 489.092 500.3612.02.06 Borrowings 260.258 349.2272.02.06.02 Foreign borrowings 260.258 349.2272.02.07 Domestic onlendings 9.550 10.3982.02.07.01 BNDES 2.227 2.5402.02.07.02 FINAME 7.323 7.8582.02.08 Foreign onlendings 21.392 32.2012.02.09 Other payables 310.404 269.2652.02.09.01 Tax and social security 304.842 264.2112.02.09.02 Derivatives 1.034 1.0852.02.09.03 Other 4.528 3.9692.03 Deferred income 6.181 7.5582.05 Shareholders’ equity 1.634.067 1.607.2282.05.01 Capital 1.359.143 1.359.1432.05.02 Capital reserves 170 1702.05.03 Revaluation reserves 1.991 1.9912.05.03.02 Subsidiaries/Affiliates 1.991 1.9912.05.04 Profit reserves 247.574 250.8432.05.04.01 Legal 20.308 20.3082.05.04.02 Statutory 235.000 235.0002.05.04.04 Unrealized profit 12.409 12.4092.05.04.07 Other profit reserves (20.143) (16.874)2.05.04.07.01 Treasury shares (20.143) (16.874)2.05.05 Adjustments of securities 1.420 (4.919)2.05.06 Retained earnings (accumulated deficit) 23.769 0

3 - FEDERAL TAXPAYERS’ REGISTRATION NUMBER (CNPJ)

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1 - CVM CODE02079-6 BANCO DAYCOVAL S/A 62.232.889/0001-90

03.01 - STATEMENTS OF INCOME (In thousands of Brazilian reais - R$)

Code Description 1/01/2009 to 3/31/2009 1/01/2009 to 3/31/2009 1/01/2008 to 3/31/2008 1/01/2008 to 3/31/20083.01 Income from financial intermediation 284.130 284.130 294.900 294.9003.01.01 Lending operations 192.863 192.863 212.759 212.7593.01.02 Securities transactions 68.569 68.569 73.287 73.2873.01.03 Derivatives 17.175 17.175 1.020 1.0203.01.04 Foreign exchange transactions 5.523 5.523 5.934 5.9343.01.05 Compulsory investments 0 0 1.900 1.9003.02 Expenses on financial intermediation (181.631) (181.631) (146.632) (146.632)3.02.01 Funding operations (95.123) (95.123) (107.984) (107.984)3.02.02 Borrowings and onlendings (11.244) (11.244) (9.171) (9.171)3.02.03 Allowance for loan losses (75.264) (75.264) (29.477) (29.477)3.03 Gross profit from financial intermediation 102.499 102.499 148.268 148.2683.04 Other operating expenses (income) (38.840) (38.840) (50.253) (50.253)3.04.01 Income from services provided 3.981 3.981 4.056 4.0563.04.02 Personnel expenses (15.036) (15.036) (15.997) (15.997)3.04.03 Other administrative expenses (26.763) (26.763) (32.036) (32.036)3.04.04 Tax expenses (7.973) (7.973) (9.025) (9.025)3.04.05 Other operating income 17.105 17.105 7.741 7.7413.04.06 Other operating expenses (9.985) (9.985) (5.142) (5.142)3.04.07 Equity in subsidiaries (169) (169) 150 1503.05 Income from operations 63.659 63.659 98.015 98.0153.06 Nonoperating expenses (7.341) (7.341) 66 663.06.01 Income 10 10 66 663.06.02 Expenses (7.351) (7.351) 0 03.07 Income before taxes and profit sharing 56.318 56.318 98.081 98.0813.08 Provision for income and social contribution taxes (20.264) (20.264) (36.142) (36.142)3.08.01 Provision for income tax (13.323) (13.323) (27.094) (27.094)3.08.02 Provision for social contribution tax (6.941) (6.941) (9.048) (9.048)3.09 Deferred income tax 14.597 14.597 11.905 11.9053.10 Statutory profit sharing/contributions (2.617) (2.617) (3.662) (3.662)3.10.01 Profit sharing (2.617) (2.617) (3.662) (3.662)3.10.02 Contributions 0 0 0 03.11 Reversal of interest on capital 0 0 0 03.13 Net income/loss 48.034 48.034 70.182 70.182

Number of shares 219.327 219.327 222.633 222.633Profit per shares 0,21901 0,21901 0,31524 0,31524Loss per shares

3 - FEDERAL TAXPAYERS’ 2 - COMPANY NAME

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04.01 - STATEMENTS OF CASH FLOW (In thousands of Brazilian reais - R$)

Code Description 1/01/2009 to 3/31/2009 1/01/2009 to 3/31/2009 1/01/2008 to 3/31/2008 1/01/2008 to 3/31/20084.01 Cash from operating activities 492.096 492.096 -104.508 -104.5084.01.01 Net cash provided by (used in) operating activities 168.193 168.193 112.787 112.7874.01.01.01 Net income 48.034 48.034 70.182 70.1824.01.01.02 Fair value adjustments of securities 6.339 6.339 -1.994 -1.9944.01.01.03 Depreciation and amortization 349 349 300 3004.01.01.04 Differed taxes -10.728 -10.728 -12.923 -12.9234.01.01.05 Reserve for contingencies 48.257 48.257 27.878 27.8784.01.01.06 (Allowance for loan losses) 75.261 75.261 29.477 29.4774.01.01.07 Allowance for doubtful accounts 3 3 0 04.01.01.08 Allowance for losses on other receivables 509 509 0 04.01.01.09 Equity in subsidiaries and affiliates 169 169 -150 -1504.01.01.10 Income and social contribution taxes on revaluation reserve 0 0 17 174.01.02 Change in assets and liabilities 323.903 323.903 -217.295 -217.2954.01.02.01 (Increase) decrease in interbank investments -44.086 -44.086 -2.328 -2.3284.01.02.02 Increase decrease in securities and derivatives -81.546 -81.546 36.926 36.9264.01.02.03 (increase) Decrease in interbank and inte rbranch accounts -7.108 -7.108 -3.371 -3.3714.01.02.04 (Increase)Decrease in lending operations 327.345 327.345 -438.017 -438.0174.01.02.05 (Increase) decrease in other receivables 37.079 37.079 -96.817 -96.8174.01.02.06 (Increase) decrease in other assets 18.154 18.154 -38.604 -38.6044.01.02.07 Increase (decrease) in deposits 170.813 170.813 106.157 106.1574.01.02.08 Increase (Decrease) in money market funding 38.845 38.845 112.314 112.3144.01.02.09 Increase (Decrease) in funds from�acceptance and issuance of securities � -8.071 -8.071 1.994 1.9944.01.02.10 Increase(Decrease) in borrowings and onlendings -49.927 -49.927 80.252 80.2524.01.02.11 Increase (Decrease) in other payables -76.218 -76.218 20.476 20.4764.01.02.12 Increase (decrease) in deferred income -1.377 -1.377 3.723 3.7234.01.03 Other 0 0 0 04.02 Net cash used in investing activities -34 -34 -510 -5104.02.01 Sale of property and equipment in use 22 22 38 384.02.02 Sales of investments 0 0 0 04.02.03 Purchase of investments 0 0 0 04.02.04 Purchases of property and equipment in use -56 -56 -548 -5484.02.05 Used in intangible assets 0 0 0 04.03 Net cash provided by financing activities -27.534 -27.534 -22.956 -22.9564.03.01 Interest on capital and dividends paid and/or accrued -24.265 -24.265 -22.956 -22.9564.03.02 Increase of Capital 0 0 0 04.03.03 Share buyback plan -3.269 -3.269 0 04.04 Exchange rate variation on cash and cash equivalents 0 0 0 04.05 Increase (decrease) in cash and cash equivalents 464.528 464.528 -127.974 -127.9744.05.01 Opening balance of cash and cash equivalents 1.164.342 1.164.342 901.292 901.2924.05.02 Closing balance of cash and cash equivalents 1.628.870 1.628.870 773.318 773.318

2 - COMPANY NAME 3 - FEDERAL TAXPAYERS’ REGISTRATION NUMBER

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1 - CVM CODE02079-6 62.232.889/0001-90

05.01 - STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (In thousands of Brazilian reais - R$)

Code Description Capital Capital Reserves Revaluation reserves Profit reserves Net income Adjustments of Patrimonial Evaluation Shareholders’ equity5.01 Opening balance 1.359.143 170 1.991 250.843 0 -4.919 1.607.2285.02 Prior year adjustments 0 0 0 0 0 0 05.03 Adjusted balance 1.359.143 170 1.991 250.843 0 -4.919 1.607.2285.04 Net income 0 0 0 0 48.034 0 48.0345.05 Allocation 0 0 0 0 -24.265 0 -24.2655.05.01 Dividends 0 0 0 0 0 0 05.05.02 Interest on capital 0 0 0 0 -24.265 0 -24.2655.05.03 Other allocations 0 0 0 0 0 0 05.06 Realization of profit reserves 0 0 0 0 0 0 05.07 Valuation adjustments to equity 0 0 0 0 0 6.339 6.3395.07.01 Adjustments of securities 0 0 0 0 0 6.339 6.3395.07.02 Accumulated translation adjustments 0 0 0 0 0 0 05.07.03 Business combination adjustments 0 0 0 0 0 0 05.08 Increase/Decrease in capital 0 0 0 0 0 0 05.09 Recognition/Realization of capital reserves 0 0 0 0 0 0 05.10 Treasury shares 0 0 0 -3.269 0 0 -3.2695.11 Other capital transactions 0 0 0 0 0 0 05.12 Other 0 0 0 0 0 0 05.13 Closing balance 1.359.143 170 1.991 247.574 23.769 1.420 1.634.067

3 - FEDERAL TAXPAYERS’ REGISTRATION NUMBER 2 - COMPANY NAME BANCO DAYCOVAL S/A

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08.01 - CONSOLIDATED BALANCE SHEETS - ASSETS (In thousands of Brazilian reais - R$)

1 - Code 2 - Description 3 - 3/31/2009 4 - 12/31/20081 Total Assets 6.727.893 6.830.9831.01 Current Assets 5.204.129 5.219.1301.01.01 Cash 27.210 45.7851.01.02 Interbank investments 2.233.954 1.801.3671.01.02.01 Money market investments 2.189.868 1.784.6871.01.02.02 Interbank deposits 40.025 10.1001.01.02.03 Foreign currency investments 4.061 6.5801.01.03 Securities 539.742 633.2851.01.03.01 Own portfolio 50.852 209.9271.01.03.02 Linked to repurchase commitments 312.504 193.2331.01.03.03 Derivatives 77.612 154.4721.01.03.04 Central Bank of Brazil 0 01.01.03.05 Linked to guarantees 96.946 73.7151.01.03.06 Assets guaranteeing technical reserves 1.828 1.9381.01.04 Interbank accounts 26.493 12.9011.01.05 Interbranch accounts 1.159 01.01.06 Lending operations 2.026.325 2.371.3301.01.06.01 Lending operations - Public sector 9.940 12.8471.01.06.02 Lending operations - Private sector 2.192.043 2.501.3941.01.06.03 (Allowance for loan losses) (175.658) (142.911)1.01.07 Leasing operations 0 01.01.08 Other receivables 298.901 293.8861.01.08.01 Foreign exchange portfolio 158.234 205.7271.01.08.02 Income receivable 321 3671.01.08.03 Trading account 3.137 4.9221.01.08.04 Insurance premius 885 2731.01.08.05 Other receivables - other 150.082 96.3521.01.08.06 (Allowance for other loan losses) (13.758) (13.755)1.01.09 Other assets 50.345 60.5761.01.09.01 Repossessed assets 19.099 26.1911.01.09.01.01 (Allowance for repossessed assets losses) (7.884) (7.375)1.01.09.02 Prepaid expenses 39.130 41.7601.02 Long-term assets 1.511.144 1.598.7891.02.01 Interbank investments 0 01.02.02 Securities 338.147 333.3121.02.02.01 Own portfolio 49.844 33.3991.02.02.02 Linked to repurchase commitments 172.740 254.2061.02.02.03 Derivatives 111.884 18.1401.02.02.04 Central Bank of Brazil 0 01.02.02.05 Linked to guarantees 671 26.4151.02.02.06 Assets guaranteeing technical reserves 3.008 1.1521.02.03 Interbank accounts 0 01.02.04 Interbranch accounts 0 01.02.05 Lending operations 948.572 1.027.8771.02.05.01 Lending operations - Public sector 4.285 5.0551.02.05.02 Lending operations - Private sector 985.191 1.057.6271.02.05.03 (Allowance for loan losses) (40.904) (34.805)1.02.06 Leasing operations 0 01.02.07 Other receivables 178.236 182.9801.02.07.01 Escrow deposits 0 01.02.07.02 Tax credits 178.236 182.9801.02.08 Other assets 46.189 54.6201.02.08.01 Prepaid expenses 46.189 54.6201.03 Permanent assets 12.620 13.0641.03.01 Investments 356 3561.03.01.01 In foreign branches 0 01.03.01.02 In subsidiaries 133 1331.03.01.03 In affiliates 0 01.03.01.04 Other investments 223 2231.03.01.05 Allowance for losses 0 01.03.02 Property and equipment in use 12.164 12.5971.03.03 Leased property 0 01.03.04 Intangible assets 100 1111.03.05 Deferred charges 0 0


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08.02 - CONSOLIDATED BALANCE SHEETS - LIABILITIES AND SHAREHOLDERS' EQUITY (In thousands of Brazilian reais - R$)

1 - Code 2 - Description 3 - 3/31/2009 4 - 12/31/20082 Total Liabilities and Shareholders' Equity 6.727.893 6.830.9832.01 Current Liabilities 2.988.896 3.435.6842.01.01 Deposits 1.025.334 1.258.4512.01.01.01 Demand deposits 65.087 113.7872.01.01.02 Interbank deposits 397.446 460.5102.01.01.03 Time deposits 562.778 683.9982.01.01.04 Other deposits 23 1562.01.02 Money market funding 1.066.663 1.290.6422.01.02.01 Own portfolio 479.275 440.4302.01.02.02 Third parties 587.388 850.2122.01.03 Funds from acceptance and issuance of securities 284.868 285.1342.01.03.01 Securities issued abroad 284.868 285.1342.01.04 Interbank accounts 6.166 4942.01.04.01 Receipts and payments pending settlement 0 02.01.05 Interbranch accounts 4.638 2.6652.01.05.01 Third-party funds in transit 0 02.01.06 Borrowings 369.573 324.2892.01.06.01 Domestic borrowings 26.605 31.0402.01.06.02 Foreign borrowings 342.968 293.2492.01.07 Domestic onlendings 5.092 3.6862.01.07.01 BNDES 2.053 9002.01.07.02 FINAME 3.039 2.7862.01.08 Foreign onlendings 41.233 41.6602.01.09 Other payables 185.329 228.6632.01.09.01 Collected taxes and other 1.009 6772.01.09.02 Foreign exchange portfolio 35.594 58.9352.01.09.03 Technical reserves - insurance 5.379 2.5212.01.09.04 Social and Statutory 28.189 29.8512.01.09.05 Tax and social security 61.708 71.1802.01.09.06 Trading account 3.536 15.5812.01.09.07 Derivatives 13.736 19.0442.01.09.08 Other 36.178 30.8742.02 Long-term liabilities 2.098.228 1.780.0052.02.01 Deposits 896.732 498.5182.02.01.01 Interbank deposits 4.245 3.1272.02.01.02 Time deposits 892.487 495.3912.02.02 Money market funding 0 02.02.03 Funds from acceptance and issuance of securities 489.092 500.3612.02.03.01 Securities issued abroad 489.092 500.3612.02.04 Interbank accounts 0 02.02.05 Interbranch accounts 0 02.02.06 Borrowings 371.036 469.2592.02.06.01 Domestic borrowings 110.778 120.0322.02.06.02 Foreign borrowings 260.258 349.2272.02.07 Domestic onlendings 9.550 10.3982.02.07.01 BNDES 2.227 2.5402.02.07.02 FINANME 7.323 7.8582.02.08 Foreign onlendings 21.392 32.2012.02.09 Other payables 310.426 269.2682.02.09.01 Tax and social security 304.864 264.2142.02.09.02 Derivatives 1.034 1.0852.02.09.03 Other 4.528 3.9692.03 Deferred income 6.181 7.5582.04 Minority interest 521 5082.05 Shareholders’ equity 1.634.067 1.607.2282.05.01 Capital 1.359.143 1.359.1432.05.02 Capital reserves 170 1702.05.03 Revaluation reserves 1.991 1.9912.05.03.01 Own assets 0 02.05.03.02 Subsidiaries/Affiliates 1.991 1.9912.05.04 Profit reserves 247.574 250.8432.05.04.01 Legal 20.308 20.3082.05.04.02 Statutory 235.000 235.0002.05.04.03 For contingencies 0 02.05.04.04 Unrealized profit 12.409 12.4092.05.04.05 Profit retention 0 02.05.04.06 Special for unpaid dividends 0 02.05.04.07 Other profit reserves (20.143) (16.874)2.05.04.07.01 Treasury shares (20.143) (16.874)2.05.05 Adjustments of securities 1.420 (4.919)2.05.06 Retained earnings (accumulated deficit) 23.769 0


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09.01 - CONSOLIDATED STATEMENTS OF INCOME (In thousands of Brazilian reais - R$)

Code Description 1/01/2009 to 3/31/2009 1/01/2009 to 3/31/2009 1/01/2008 to 3/31/2008 1/01/2008 to 3/31/20083.01 Income from financial intermediation 298.909 298.909 301.506 301.5063.01.01 Lending operations 205.965 205.965 220.883 220.8833.01.02 Securities transactions 70.246 70.246 71.767 71.7673.01.03 Derivatives 17.175 17.175 1.020 1.0203.01.04 Foreign exchange transactions 5.523 5.523 5.936 5.9363.01.05 Compulsory investments 0 0 1.900 1.9003.02 Expenses on financial intermediation (195.550) (195.550) (152.313) (152.313)3.02.01 Funding operations (94.926) (94.926) (107.837) (107.837)3.02.02 Borrowings and onlendings (25.360) (25.360) (14.999) (14.999)3.02.04 Allowance for loan losses -75.264 -75.264 -29.477 -29.4773.03 Gross profit from financial intermediation 103.359 103.359 149.193 149.1933.04 Other operating expenses (income) (39.018) (39.018) (50.861) (50.861)3.04.01 Income from services provided 4.241 4.241 4.317 4.3173.04.02 Personnel expenses (15.207) (15.207) (16.171) (16.171)3.04.03 Other administrative expenses (27.624) (27.624) (32.875) (32.875)3.04.04 Tax expenses (8.272) (8.272) (9.242) (9.242)3.04.05 Other operating income 18.161 18.161 8.541 8.5413.04.06 Other operating expenses (10.317) (10.317) (5.431) (5.431)3.04.07 Equity in subsidiaries 0 0 0 03.05 Income from operations 64.341 64.341 98.332 98.3323.06 Nonoperating expenses (7.341) (7.341) 66 663.06.01 Income 10 10 66 663.06.02 Expenses (7.351) (7.351) 0 03.07 Income before taxes and profit sharing 57.000 57.000 98.398 98.3983.08 Provision for income and social contribution taxes (20.831) (20.831) (36.328) (36.328)3.08.01 Provision for income tax (13.707) (13.707) (27.229) (27.229)3.08.02 Provision for social contribution tax (7.124) (7.124) (9.099) (9.099)3.09 Deferred income tax 14.597 14.597 11.905 11.9053.10 Statutory profit sharing/contributions (2.720) (2.720) (3.782) (3.782)3.10.01 Profit sharing (2.720) (2.720) (3.782) (3.782)3.10.02 Contributions 0 0 0 03.11 Reversal of interest on capital 0 0 0 03.12 Minority interest (12) (12) (11) (11)3.13 Net income/loss 48.034 48.034 70.182 70.182

Number of shares 219.327 219.327 222.633 222.633Profit per shares 0,21901 0,21901 0,31524 0,31524Loss per shares

2 - COMPANY NAME 3 - FEDERAL TAXPAYERS’ REGISTRATION NUMBER (CNPJ)

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10.01 - CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands of Brazilian reais - R$)

Code Description 1/01/2009 to 3/31/2009 1/01/2009 to 3/31/2009 1/01/2008 to 3/31/2008 1/01/2008 to 3/31/20084.01 Cash from operating activities 492.683 492.683 -104.649 -104.6494.01.01 Net cash provided by (used in) operating activities 168.207 168.207 113.065 113.0654.01.01.01 Net income 48.034 48.034 70.182 70.1824.01.01.02 Fair value adjustments of securities 6.339 6.339 -1.994 -1.9944.01.01.03 Depreciation and amortization 481 481 437 4374.01.01.04 Differed taxes -10.707 -10.707 -12.932 -12.9324.01.01.05 Reserve for contingencies 48.287 48.287 27.878 27.8784.01.01.06 (Allowance for loan losses) 75.261 75.261 29.477 29.4774.01.01.07 Allowance for doubtful accounts 3 3 0 04.01.01.08 Allowance for losses on other receivables 509 509 0 04.01.01.09 Equity in subsidiaries and affiliates 0 0 0 04.01.01.10 Income and social contribution taxes on revaluation reserve 0 0 17 174.01.02 Change in assets and liabilities 324.476 324.476 -217.714 -217.7144.01.02.01 (Increase) decrease in interbank investments -44.086 -44.086 -2.328 -2.3284.01.02.02 Increase decrease in securities and derivatives -84.277 -84.277 37.220 37.2204.01.02.03 (increase) Decrease in interbank and interbranch accounts -7.108 -7.108 -3.371 -3.3714.01.02.04 (Increase)Decrease in lending operations 349.049 349.049 -393.890 -393.8904.01.02.05 (Increase) decrease in other receivables 36.607 36.607 -97.561 -97.5614.01.02.06 (Increase) decrease in other assets 18.154 18.154 -38.604 -38.6044.01.02.07 Increase (decrease) in deposits 165.098 165.098 106.081 106.0814.01.02.08 Increase (Decrease) in money market funding 38.845 38.845 112.314 112.3144.01.02.09 Increase (Decrease) in funds from�acceptance and issuance of securities � -11.535 -11.535 1.986 1.9864.01.02.10 Increase(Decrease) in borrowings and onlendings -63.616 -63.616 33.827 33.8274.01.02.11 Increase (Decrease) in other payables -71.278 -71.278 22.889 22.8894.01.02.12 Increase (decrease) in deferred income -1.377 -1.377 3.723 3.7234.01.03 Other 0 0 0 04.02 Net cash used in investing activities -26 -26 -520 -5204.02.01 Sale of property and equipment in use 30 30 38 384.02.02 Sales of investments 0 0 0 04.02.03 Purchase of investments 0 0 0 04.02.04 Purchases of property and equipment in use -56 -56 -558 -5584.02.05 Used in intangible assets 0 0 0 04.03 Net cash provided by financing activities -27.534 -27.534 -22.956 -22.9564.03.01 Interest on capital and dividends paid and/or accrued -24.265 -24.265 -22.956 -22.9564.03.02 Capital increase 0 0 0 04.03.03 Share buyback plan -3.269 -3.269 0 04.04 Exchange rate variation on cash and cash equivalents 0 0 0 04.05 Increase (decrease) in cash and cash equivalents 465.123 465.123 -128.125 -128.1254.05.01 Opening balance of cash and cash equivalents 1.164.570 1.164.570 901.464 901.4644.05.02 Closing balance of cash and cash equivalents 1.629.693 1.629.693 773.339 773.339

2 - COMPANY NAME 3 - FEDERAL TAXPAYERS’ REGISTRATION NUMBER

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1 - CVM CODE02079-6 62.232.889/0001-90

11.01 - CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (In thousands of Brazilian reais - R$)

Code Description Capital Capital Reserves Revaluation reserves Profit reserves Net income Adjustments of Patrimonial Evaluation Shareholders’ equity5.01 Opening balance 1.359.143 170 1.991 250.843 0 -4.919 1.607.2285.02 Prior year adjustments 0 0 0 0 0 0 05.03 Adjusted balance 1.359.143 170 1.991 250.843 0 -4.919 1.607.2285.04 Net income 0 0 0 0 48.034 0 48.0345.05 Allocation 0 0 0 0 -24.265 0 -24.2655.05.01 Dividends 0 0 0 0 0 0 05.05.02 Interest on capital 0 0 0 0 -24.265 0 -24.2655.05.03 Other allocations 0 0 0 0 0 0 05.06 Realization of profit reserves 0 0 0 0 0 0 05.07 Valuation adjustments to equity 0 0 0 0 0 6.339 6.3395.07.01 Adjustments of securities 0 0 0 0 0 6.339 6.3395.07.02 Accumulated translation adjustments 0 0 0 0 0 0 05.07.03 Business combination adjustments 0 0 0 0 0 0 05.08 Increase/Decrease in capital 0 0 0 0 0 0 05.09 Recognition/Realization of capital reserves 0 0 0 0 0 0 05.10 Treasury shares 0 0 0 -3.269 0 0 -3.2695.11 Other capital transactions 0 0 0 0 0 0 05.12 Other 0 0 0 0 0 0 05.13 Closing balance 1.359.143 170 1.991 247.574 23.769 1.420 1.634.067

2 - COMPANY NAME 3 - FEDERAL TAXPAYERS’ REGISTRATION NUMBER BANCO DAYCOVAL S/A

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06.01 - NOTES TO THE INTERIM FINANCIAL STATEMENTS

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1. OPERATIONS

Banco Daycoval S.A. (the “Bank”) is a multiple service bank authorized to operate commercial, foreign exchange, investment, credit and financing portfolios and, through its direct and indirect subsidiaries, is active in third-party asset management and provision of services. The Daycoval Conglomerate’s companies conduct business on an integrated basis.

2. PRESENTATION OF FINANCIAL STATEMENTS

The Bank’s financial statements, including its foreign branch, and the consolidated financial statements (“Consolidated”) have been prepared in accordance with the accounting criteria set forth by Brazilian Corporate Law- Law no. 6404/76, the changes introduced by Law no. 11638/07 and Provisional Act no. 449/08 are being adopted for the first time for the recording of transactions for the year ended December 31, 2008, together with, when applicable, the standards and instructions of the National Monetary Council (CMN), the Central Bank of Brazil (BACEN), and the Standard Chart of Accounts for Financial Institutions (COSIF), the Brazilian Securities and Exchange Commission (CVM), the Private Insurance Authority (SUSEP), and the Accounting Pronouncements Committee (CPC).

The first-time adoption of the changes introduced by Law no. 11638/07 and Provisional Act no. 449/08 did not have material effects on the Bank’s individual and consolidated financial statements for the year ended December 31, 2008. In the consolidated financial statements, the balances and transactions between the Bank, its foreign branch, its direct and indirect subsidiaries and special purpose entities, represented by the receivables investment fund, have been eliminated. Net income and shareholders’ equity amounts related to minority interests were disclosed in a separate caption. The financial statements of the foreign branch and indirect subsidiary had the accounting criteria adjusted to the Brazilian accounting practices and translated into Brazilian reais. The consolidated financial statements for the quarters ended March 31, 2009 and December 31, 2008 include the accounts of the Bank, its foreign branch, and the following direct and indirect subsidiaries and special purpose entities:

(Convenience Translation into English from the Original Previously Issued in Portuguese) FEDERAL PUBLIC SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) INTERIM FINANCIAL STATEMENTS (ITR) 3/31/2009 FINANCIAL INSTITUTION

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Ownership Interest %

March 31, 2009

December 31, 2008

Financial activity - Foreign branch Banco Daycoval S.A. - Cayman Branch (1) 100.00 100.00 Insurance and pension plan activity Dayprev Vida e Previdência S.A. (“Dayprev”) 97.00 97.00 Non-financial activity ACS Participações Ltda. (“ACS”) 99.99 99.99 Daycoval Asset Management Administração de Recursos Ltda. 99.99 99.99 Treetop Investments Ltd. (“Treetop”) 99.99 99.99 IFP Planejamento e Consultoria em Informática Ltda. (“IFP”) 99.99 99.99 SCC Assessoria em Cadastro e Cobrança Ltda. (“SCC”) 99.99 99.99 Special Purpose Entities - SPE Daycoval Fundo de Investimento em Direitos Creditórios (“Daycoval FIDC”) (2)

100.00

100.00

Daycoval Veicúlos Fundo de Investimento em Direitos Creditórios (“Daycoval Veículos FIDC”) (2)(3)

100.00

100.00

(1) Start-up on May 28, 2008.

(2) The ownership percentage refers to the total subordinated shares held by the Bank in Daycoval FIDC and Daycoval Veículos FIDC.

(3) Start-up on August 11, 2008. Securities recorded in subsidiaries, except for those related to the financial, insurance and pension plan activities, are stated at acquisition cost plus accrued interest and monetary and exchange variations. When the fair value of these securities is lower than carrying value, an allowance is recorded for adjusting them to realizable value.

In the consolidation of Daycoval FIDC and Daycoval Veículos FIDC, the balances of the receivables portfolio and the allowance for loan losses were incorporated into the Bank’s loan portfolio, with recording of the financing under the caption “Borrowings and onlendings - domestic borrowings”, net of investments in investment fund shares represented by subordinated shares held by the Bank in Daycoval FIDC and Daycoval Veículos FIDC.


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Additionally, income from Daycoval FIDC and Daycoval Veículos FIDC receivables was recorded under the caption “Lending operations” in the statement of income, and the cost of financing, related to senior shares, was recorded under the caption “Borrowings and Onlendings”. The income earned by the Bank from appreciation of its shares in Daycoval FIDC and Daycoval Veículos FIDC, which was originally recorded under the caption “Securities transactions”, was reclassified to the caption “Lending operations”, in order to present fairly the operation in the consolidated financial statements.

As provided for by CVM/SNC-SEP Circular Letter No. 01/07, of February 14, 2007, the Bank’s Management added the balances of receivables and allowance for loan losses to the consolidated financial statements for the quarters ended March 31, 2009 and December 31, 2008, as it considers that the control (receiving, onlending and collection) of receivables assigned to Daycoval FIDC and Daycoval Veículos FIDC is under its responsibility, which in substance represents the provision of guarantees to Fund investors in relation to the receiving of these receivables.

The following is the main information on Daycoval FIDC and Daycoval Veículos FIDC, pursuant to CVM Instruction No. 408/05:

a) Characteristics of FIDCs:

Daycoval FIDC:

Daycoval FIDC is managed by Intrag Distribuidora de Títulos e Valores Mobiliários Ltda. and was established as a closed-end fund available to qualified investors according to prevailing regulation. Daycoval FIDC started operations on September 13, 2006, for a term of 3 years from the first payment of 1st series senior shares of the Fund.

Daycoval Veículos FIDC:

Daycoval Veículos FIDC is managed by Oliveira Trust Distribuidora de Títulos e Valores Mobiliários S.A. and was established as a closed-end fund available to qualified investors according to prevailing regulation. Daycoval Veículos FIDC started operations on August 11, 2008, for a term of 10 years from the first payment of 1st series senior shares of the Fund.


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b) Name, type, purpose and activities of Daycoval FIDC and Daycoval Veículos FIDC:

The purpose of Daycoval FIDC is to provide its investors with the appreciation of its shares by investing money principally in the acquisition of receivables from the financial industry, entered into by the Bank (Assignor) and its customers. These receivables arise from: (i) discounted notes and bank loan notes (CCB) transactions for Daycoval FIDC; and (ii) vehicles financing for Daycoval Veículos FIDC.

The Fund will seek to achieve, but will not guarantee, yield equivalent to 106% and 113% of the DI (interbank deposit rate), respectively for Daycoval FIDC and Daycoval Veículos FIDC. This benchmark applies to senior shares and there is no benchmark for subordinated shares.

c) Share of Daycoval FIDC’s net assets and profits:

According to article 24, item XV, of CVM Instruction no. 356, as amended by CVM Instruction no. 393, FIDCs should maintain a minimum ratio between the senior shares’ value and FIDCs' net equity. This ratio shall be daily determined and monthly reported to the Fund’s investors.

The table below shows minimum ratios between senior and subordinated share’s value to FIDC’s net equity:

% to FIDC’s net equity Daycoval

FIDC(1) Daycoval

Veículos FIDC(2) Senior shares 80.00 77.00 Subordinated shares 20.00 23.00

(1) Pursuant to Article 36 of Fund Regulation; (2) Pursuant to Article 11.12 of Fund Regulation.

d) Nature of Bank’s involvement with Daycoval FIDC and Daycoval Veículos FIDC, and type of exposure to loss, if any, arising from this involvement:

It is solely the responsibility of the Assignor (Bank) to ensure that the receivables satisfy assignment conditions, without affecting the assignee’s (Daycoval FIDC and Daycoval Veículos FIDC) right to do so, directly or by means of third parties.


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e) Amount and nature of receivables and payables between the Bank and receivables funds, assets transferred by the Bank and rights of use of Daycoval FIDC’s assets:

Daycoval FIDC:

In the quarters ended March 31, 2009 and December 31, 2008, the Bank assigned to Daycoval FIDC, without co-obligation, R$ 74,135 and R$ 92,275, respectively, relating to lending operations.

Daycoval FIDC Veiculos:

In the quartes ended March 31, 2009 and December 31, 2008, the Bank assigned to Daycoval FIDC Veiculos, without co-obligation, R$ 6,158 and R$ 25,895, respectively, relating to vehicle financing operations.

No income on the assignment of receivables to FIDCs has been recorded by the Bank.

Additionally, as investments in FIDC subordinated shares were maintained, the Bank recognized the effect of variation in these shares under the “Securities transactions” caption, as shown below:

Quarter ended March 31,

2009 December 31,

2008

Daycoval FIDC (641) 2,524 Daycoval Veículos FIDC (373) (767)

f) The balance sheets of Daycoval FIDC and Daycoval Veículos FIDC as of March 31, 2009 and December 31, 2008 were as follows:

Daycoval FIDC

Assets

March 31, 2009

December 31, 2008

Liabilities

March 31, 2009

December 31, 2008

Cash 8 8 Other payables 158 54 Federal government securities 22,208 42,620 Lending operations 47,889 59,170 Receivables 56,138 66,492 (-) Allowance for losses (8,249) (7,322) Net assets 71,360 105,861 Other receivables 1,413 4,116 Senior shares 50,076 77,731 Other assets - 1 Subordinated

shares 21,284 28,130

Total assets 71,518 105,915 Total liabilities 71,518 105,915


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Daycoval Veículos FIDC

Assets March 31,

2009 December 31, 2008

Liabilities

March 31, 2009

December 31, 2008

Cash 283 19 Derivatives 11,348 6,722 Interbank investments 28,360 14,226 Other payables 45 42 Federal government securities 22,390 18,789 Lending operations 161,644 171,953 Receivables 165,288 172,938 (-) Allowance for losses (3,644) (985) Net assets 201,284 198,338 Other receivables - 114 Senior shares 150,418 146,303 Other assets - 1 Subordinated shares 50,866 52,035 Total Assets 212,677 205,102 Total liabilities 212,677 205,102

g) Guarantees, sureties, mortgages or other collateral in favor of Daycoval FIDC and Daycoval Veículos FIDC:

The Bank has provided no guarantee, surety, mortgage or other collateral in favor of Daycoval FIDC, Daycoval Veículos FIDC or its investors.

h) Identification of the principal beneficiary or group of principal beneficiaries of FIDC’s activities:

The Bank holds all subordinated shares of Daycoval FIDC and Daycoval Veículos FIDC, the senior shares are held by qualified investors.

3. SIGNIFICANT ACCOUNTING PRACTICES

Significant accounting practices applied in the preparation of the financial statements are as follows:

a) Income and expenses are recorded on the accrual basis. Operations with fixed rates are stated at redemption amount, and income and expenses for future periods are reported as a reduction of the related assets and liabilities. Financial income and expenses are calculated under the exponential method, except when resulting from foreign operations, which are calculated under the straight-line method. Operations with floating rates or indexed to foreign currencies are adjusted through the balance sheet date.


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b) Interbank investments and other receivables, except securities and derivatives, are stated at cost, plus monetary and exchange variations and interest earned. When fair value is lower than carrying amount, an allowance is recorded to adjust the asset to realizable value.

c) Under BACEN Resolution No. 3604/08, cash and cash equivalents are represented by cash and deposits in financial institutions, recorded under the captions “Cash”, “interbank investments”, and “securities” classified in the trading portfolio, with maturities of up to 90 days, and the change in their fair value is considered immaterial.

d) Securities are stated at cost plus income earned, as detailed below: (i) fixed-income securities are adjusted at the applicable interest rate through their maturities; (ii) shares are adjusted based on the average price informed by the Stock Exchange which trades more shares; and (iii) investments in investment funds adjusted based on the share value informed by the fund managers.

Securities can be classified in conformity with BACEN Circular No. 3068/2001 into one of the following three categories:

• Trading securities - securities bought and held principally for the purpose of selling them in the near term and reported at fair value, with unrealized gains and losses included in income for the period.

• Available-for-sale securities - securities not classified as either trading securities or held-to-maturity securities. Unrealized gains and losses are reported in a separate component of shareholders’ equity, net of taxes, and are included in income for the year when realized.

• Held-to-maturity securities - securities that the enterprise has the positive intent and ability to hold to maturity and stated at cost, plus income earned, included in income for the period.


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Bonuses resulting from investments in shares of publicly-traded companies are recorded in securities portfolio only according to the respective number, without modifying the value of investments, when the corresponding shares are considered ex-rights on the stock exchange.

Dividends and interest on capital from investments in publicly-traded companies are recorded as income when related shares are considered ex-rights on the stock exchange.

e) Derivatives consist of option, forward, futures and swap transactions and are reported in conformity with BACEN Circular No. 3082/02, as described below:

• Option transactions - premiums received or paid are recorded at fair value under the caption “derivatives” in assets or liabilities, respectively, until the exercise of the option, and reported as a decrease or increase in the cost of the asset for the exercise of the option or as income or expense in the event of non-exercise.

• Futures transactions - daily adjustments are recorded at fair value under the caption “Trading account” in assets or liabilities and allocated daily to income or expense.

• Currency swap transactions - differential receivable or payable is recorded at fair value under the caption “Derivatives” in assets or liabilities, respectively, and allocated to income or expense.

• Forward transactions - are recorded at final contract value, less the difference between that value and the cash price of the asset, with recognition of income and expenses over the contract periods.

Derivative transactions are stated at fair value as of the balance sheet date, with gains and losses reported as described below:

• Derivatives that not qualify as hedge - in income or expense in the statement of income.

• Derivatives that qualify as hedge - classified as market risk value or cash flow hedges.


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Market risk hedges are intended to offset the movement in the fair value of the hedged item, with gains or losses included in income or expenses in the statement of income.

Cash flow hedges are intended to offset the change in estimated future cash flows, with gains or losses, net of taxes, included in a separate component of shareholders’ equity, with any other change included in income or expense in the statement of income.

f) Lending operations are classified based on Management’s risk assessment, considering the past experience with prior borrowers and guarantors, economic scenario, and specific and overall portfolio risks, pursuant to CMN Resolution No. 2682/99 ratified by the BACEN, which requires a periodic analysis of the portfolio and its classification into nine rating levels from AA (minimum risk) to H (maximum risk - loss).

Income from lending operations past-due for more than 60 days, regardless of the risk level, is only recognized when actually received. H-rated loans remain as such for six months and, thereafter, are written off against the existing allowance and remain controlled in a memorandum account not shown on the balance sheet.

g) Foreign exchange transactions are stated at realizable values, plus income and exchange variations earned on a pro rata daily basis.

h) Insurance premiums are recorded in income when the respective insurance policies and invoices are issued and deferred on a straight-line basis, over the insurance policy effective term, i.e., within the risk coverage period, by recording and reversing the unearned premium reserve and deferred selling expenses.


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i) Prepaid expenses related to commissions paid to third parties are controlled by contract and accounted for under the caption “Prepaid expenses”. The recognition of such expenses as “Other administrative expenses” is made on a pro-rata temporis basis, over the term of the respective contracts, or fully recognized, when such contracts are settled in advance.

j) Investments in subsidiaries are accounted for under the equity method.

k) Other investments are stated at cost, less allowance for loss, when applicable.

l) Property and equipment are stated at acquisition cost, except for real estate held by the subsidiary, which is recorded at acquisition cost plus revaluation at market value. Depreciation is calculated under the straight-line method at the annual rates stated in note 14, based on the economic useful lives of the assets.

m) Intangible assets correspond to rights acquired in intangible assets that are maintained or used in the operations of the Bank and its subsidiaries or exercised for such purpose; intangible assets with finite lives are amortized on a straight-line basis over the estimated period they will generate economic benefits.

n) The impairment of non-financial assets is recognized when the carrying amount of an asset or a cash generating unit is higher than its recoverable or realizable value. A cash generating unit is the smallest identifiable group of assets which generates cash flows substantially independent from other assets and groups of assets. Impairment losses are recorded in the statement of income for the period when they are recognized, when applicable. As of March 31, 2009, no events indicate that non-financial assets may be impaired.

As from the year ended December 31, 2008, the amounts of non-monetary items, except those recorded under the captions “Other assets” and “Other receivables - tax credits”, are periodically, at least annually, tested for impairment.


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o) Known or estimated liabilities, payables and contingencies, including tax charges calculated based on income for the period, include interest and exchange rate change or inflation adjustment accrued through the balance sheet date. Liabilities in foreign currency are translated into local currency at the exchange rates in effect on the balance sheet date, as informed by BACEN, and liabilities subject to indexation are inflation adjusted through the balance sheet date. Hedged liabilities are adjusted to fair value.

p) The provision for income tax is recorded at the rate of 15%, plus a 10% surtax when applicable. Beginning May 1, 2008, the provision for social contribution is calculated at the rate of 15%, as established by Provisional Act No. 413, of January 3, 2008, signed into Law No. 11727 on June 23, 2008.

q) Income tax and social contribution credits are recognized on temporary additions and deductions and based on legislation in effect at the date of recognition. These tax credits will be realized when the amounts on which they were recognized are utilized or reversed.

r) Technical reserves - insurance - calculated in accordance with the technical notes approved by SUSEP and the criteria established by CNSP Resolution No. 162 of December 26, 2006 and subsequent changes introduced by CNSP Resolution No. 181 of December 19, 2007.

r.1) Insurance

• Reserve for unsettled claims - is recorded, based on notices of claims, in an amount sufficient to cover future commitments under legal disputes, where the amount is determined by experts and legal counsel that perform the assessments based on insured amount and technical regulations, taking into account the likelihood of unfavorable outcome to the insurance company.

• Reserve for incurred but not reported losses (IBNR) - recorded to cover insured losses that have occurred but have not been reported.


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s) Contingent assets and liabilities and legal, tax and social security obligations

Contingent assets and liabilities and legal obligations are determined, recognized and disclosed in conformity with the criteria set forth in CVM Resolution No. 489/2005 and IBRACON Interpretation No. 02/2006, as described below:

• Contingent assets are not recorded in the financial statements, except when there is evidence that they will be realized and are not subject to appeals.

• Contingent liabilities are recorded in the financial statements when the risk of loss on an administrative or judicial proceeding is assessed by the legal counsel and Management as probable, with probable outflow of funds to settle obligations, and when the amounts involved can be reliably measured. Contingent liabilities classified as possible loss by the legal counsel are only disclosed in notes to the financial statements. Those classified as remote loss do not require provision and disclosure.

• Legal obligations (tax and social security) refer to lawsuits challenging the legality and constitutionality of certain taxes. The amount under litigation is determined, accrued and adjusted monthly.

t) Earnings per share are calculated based on the number of shares at the balance sheet dates.

u) Uses of estimates - The preparation of financial statements requires Management to make estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenues, expenses and other transactions, such as: (i) depreciation rates of property and equipment, (ii) amortization of intangible assets, and (iii) reserves for contingencies. Actual results could differ from those estimates.


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4. CASH AND CASH EQUIVALENTS

Cash and cash equivalents are as follows:

Bank Consolidated Type

March 31, 2009

December 31, 2008

March 31, 2009

December 31, 2008

Cash 26,387 45,557 27,210 45,785 Interbank investments(*) 1,602,479 951,155 1,602,479 951,155 Securities 4 167,630 4 167,630 Total Cash and Cash Equivalents 1,628,870 1,164,342 1,629,693 1,164,570

(*) Interbank investments included in cash and cash equivalents are stated net of the amount recorded under the caption “Money market investments - third parties funding” which as of March 31, 2009 and December 31, 2008 total R$587,388 and R$850,212, respectively, both in Bank and Consolidated.

5. INTERBANK INVESTMENTS

Interbank investments are as follows:

Bank and Consolidated March 31, 2009 December 31, 2008 Type Maturity Amount Maturity Amount Money market investments Up to 1 business day 2,189,868 Up to 1 business day 1,784,687 Interbank deposits Up to February 2010 40,025 Up to November 2009 10,100 Foreign currencies Up to 2 business days 4,061 Up to January 2009 6,580 Total 2,233,954 1,801,367

6. SECURITIES

a) By category and type:

Bank March 31, 2009 December 31, 2008 Available-for-sale securities

Adjusted Cost

Fair value (1)

Adjusted cost

Fair value (1)

Own portfolio 132,645 132,729 277,319 276,344

National Treasury bills (LTN) 7,420 7,688 167,672 167,686 Treasury bills (LFT) 32,483 32,482 14,245 14,241 National Treasury notes (NTN) 1,765 1,816 3,875 3,873 Foreign fixed-income securities 12,021 12,346 4,216 3,826 Bank certificates of deposit (CDBs) 4,929 4,929 5,269 5,269 Investment fund shares 72,150 72,150 80,165 80,165 Shares of publicly-traded companies 1,877 1,318 1,877 1,284

Held under repurchase agreements 482,313 485,244 453,135 447,439 National Treasury bills (LTN) 147,177 149,427 158,363 159,529 Treasury bills (LFT) 186,821 186,821 153,963 153,938 National Treasury notes (NTN) 148,315 148,996 140,809 133,972

Linked to guarantees 97,256 97,617 100,470 100,130 National Treasury bills (LTN) 55,951 56,313 45,808 45,477 Treasury bills (LFT) 41,305 41,304 54,662 54,653

Total 712,214 715,590 830,924 823,913


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Consolidated March 31, 2009 December 31, 2008 Available-for-sale securities

Adjusted cost

Fair value (1)

Adjusted cost

Fair value (1)

Own portfolio 102,020 100,695 244,298 243,326

National Treasury bills (LTN) 16,304 16,624 176,316 176,338 Treasury bills (LFT) 40,387 40,386 21,856 21,847 National Treasury notes (NTN) 1,765 1,816 3,875 3,873 Foreign fixed-income securities 27,897 26,761 27,114 26,724 Bank certificates of deposit (CDBs) 4,929 4,929 5,269 5,269 Investment fund shares 8,670 8,670 7,800 7,800 Shares of publicly-traded companies 2,068 1,509 2,068 1,475

Held under repurchase agreements 482,313 485,244 453,135 447,439 National Treasury bills (LTN) 147,177 149,427 158,363 159,529 Treasury bills (LFT) 186,821 186,821 153,963 153,938 National Treasury notes (NTN) 148,315 148,996 140,809 133,972

Linked to guarantees 97,256 97,617 100,470 100,130 National Treasury bills (LTN) 55,951 56,313 45,808 45,477 Treasury bills (LFT) 41,305 41,304 54,662 54,653

Assets guaranteeing technical reserves 4,834 4,837 3,088 3,090 Treasury bills (LFT) 4,834 4,837 3,088 3,090

Total 686,423 688,393 800,991 793,985

(1) The fair value of securities is obtained through the prices and rates prevailing as of March 31, 2009 and December 31, 2008 as disclosed by ANDIMA (National Association of Financial Market Institutions), investment fund managers, Commodities and Futures Exchange (BM&F BOVESPA S.A), and others in the case of securities acquired abroad.

b) Breakdown by maturity:

Bank March 31, 2009 Without

maturityUp to 3 months

From 3 to 12 months

From 1 to 3 years

From 3 to 5 years

Over 5 years

Total

Federal government securities - 35,238 390,645 52,520 36,741 109,703 624,847

National Treasury bills (LTN) - - 213,428 - - - 213,428 Treasury bills (LFT) - 35,238 177,217 7,978 36,741 3,433 260,607 National Treasury notes (NTN) - - - 44,542 - 106,270 150,812

Securities issued abroad - - - 4,687 - 7,659 12,346 Securities of financial institutions

Eurobonds and others - - - 4,687 - 7,659 12,346 Private-sector securities 1,318 4,929 - - - 6,247

Bank Certificates of Deposit (CDBs) - - 4,929 - - - 4,929 Shares of publicly-traded companies 1,318 - - - - - 1,318

Investment fund shares - - 21,284 - - 50,866 72,150

Receivables fund - - 21,284 - - 50,866 72,150 Total 1,318 35,238 416,858 57,207 36,741 168,228 715,590


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December 31, 2008 Without

maturity Up to 3months

From 3 to 12 months

From 1 to 3 years

From 3 to 5 years

Over 5 years

Total


National Treasury bills (LTN) - 167,630 132,874 72,188 - - 372,692 Treasury bills (LFT) - - 138,975 39,299 10,419 34,139 222,832 National Treasury notes (NTN) - - - 40,884 - 96,961 137,845

Securities issued abroad - - - 3,826 - - 3,826 Securities of financial institutions

Eurobonds and others - - - 3,826 - - 3,826 Private-sector securities 1,284 - - 5,269 - - 6,553

Bank Certificates of Deposit (CDBs) - - - 5,269 - - 5,269 Shares of publicly-traded companies 1,284 - - - - - 1,284

Investment fund shares - - 28,130 - - 52,035 80,165

Receivables fund - - 28,130 - - 52,035 80,165 Total 1,284 167,630 299,979 161,466 10,419 183,135 823,913

Consolidated March 31, 2009

Withoutmaturity

Up to 3months

From 3 to 12 months

From 1 to 3 years

From 3 to 5 years

Over 5 years

Total


National Treasury bills (LTN) - - 222,364 - - - 222,364 Treasury bills (LFT) - 35,626 179,781 17,767 36,741 3,433 273,348 National Treasury notes (NTN) - - - 44,542 - 106,270 150,812

Securities issued abroad 7,495 1,756 - 7,061 2,784 7,665 26,761 Shares 754 - - - - - 754 Time deposits - 1,283 - - - - 1,283 Investment funds 6,741 - - - - - 6,741 Securities of companies

Eurobonds and others - 473 - 7,061 2,784 7,665 17,983 Private-sector securities 1,509 - 4,929 - - - 6,438

Bank Certificates of Deposit (CDBs) - - 4,929 - - - 4,929 Shares of publicly-traded companies 1,509 - - - - - 1,509

Investment fund shares 8,670 - - - - - 8,670

Fixed-income funds 8,670 - - - - - 8,670 Total 17,674 37,382 407,074 69,370 39,525 117,368 688,393 December 31, 2008 Without

maturity Up to 3months

From 3 to 12 months

From 1 to 3 years

From 3 to 5 years

Over 5 years

Total


National Treasury bills (LTN) - 167,630 141,520 72,194 - - 381,344 Treasury bills (LFT) - 567 140,347 48,056 10,419 34,139 233,528 National Treasury notes (NTN) - - - 40,884 - 96,961 137,845

Securities issued abroad 14,745 2,951 1,778 4,982 2,226 42 26,724 Shares 729 - - - - - 729 Time deposits - 1,289 - - - - 1,289 Investment funds 14,016 - - - - - 14,016 Securities of companies

Eurobonds and others - 1,662 1,778 4,982 2,226 42 10,690 Private-sector securities 1,475 - - 5,269 - - 6,744

Bank Certificates of Deposit (CDBs) - - - 5,269 - - 5,269 Shares of publicly-traded companies 1,475 - - - - - 1,475

Investment fund shares 7,800 - - - - - 7,800

Fixed-income funds 7,800 - - - - - 7,800 Total 24,020 171,148 283,645 171,385 12,645 131,142 793,985

7. DERIVATIVES


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I. Qualitative information

The Bank conducts operations involving derivative financial instruments recorded in balance sheet and memorandum accounts to meet its own and customers’ needs. The other companies included in the consolidated financial statements did not enter into derivative transactions in the quartes ended March 31, 2009 and December 31, 2008.

Derivatives used are properly approved under the product use policy. Pursuant to this policy, prior to the implementation of each product all aspects should be analyzed, such as: objectives, forms of use, risks involved and adequate operational support infrastructure.

The components of credit and market risks involved in derivatives are monitored daily. Specific limits are set for derivative transactions, customers and custodians. Such limits are managed by a system that consolidates exposures by counterparty. Any deviations are promptly indicated and addressed for immediate solution.

The market risk of derivatives is managed by a prevailing risk policy, pursuant to which potential risks of price fluctuations in the financial markets are centralized in the Treasury department, which provides hedge for the other areas.

a) Derivatives:

The main derivatives used are swaps, dollar futures (DOL), fixed rate (DI) and exchange coupon (DDI), and non-deliverable forwards. BACEN Circular No. 3082/02 permitted a specific accounting in the cases derivatives are used to hedge against changes in fair value or cash flow.


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b) Risk management:

Market risk

The Bank uses value at risk (V@R) to measure the market risk of all products and markets, providing a basis for risk comparison of various portfolios. The Bank uses the parametric V@R model for a ten-days time horizon at the 99% confidence level. At the close of the day, said method is applied to the outstanding operations base. The Risk Management department manager analyzes and approves daily the calculated figures.

The reports containing the results are made available on the Bank’s intranet for authorized persons. The accuracy of the V@R model is determined through backtesting that consists of comparing the actual results to estimates generated from the V@R model.

To measure the possible effects of unexpected market movements, which are not predicted by V@R, the Bank uses scenario analysis techniques. The models include projected scenario analyses and stress testing, whose ultimate objective is to assure that the Bank and the companies included in the consolidated financial statements have capacity to respond to extreme market conditions.

Liquidity risk

Liquidity risk is related to the mismatching of assets and liabilities in relation to dates for inflows and outflows. The liquidity risk is controlled daily through an analysis of the Bank and its subsidiaries’ mismatch, principally in the short term. In addition, simulations with estimates of portfolio index changes are performed. Concurrently, liquidity indicators from balance sheet accounts are analyzed on a monthly basis. Finally, liquidity stress testing is carried out.

Risk factors

The main risk factors of the individual and consolidated financial statements are: fixed interest rate, interest rate linked to exchange variation, interest rate linked to SELIC (Central Bank overnight rate), DI (interbank deposit rate), Libor and foreign currency exposure.


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c) Sensitivity analyses:

As risk management governance practice, the Bank and its subsidiaries have a continuous risk management process that involves controlling all their positions exposed to market risks.

Market risk limits are proposed by a specific Committee, within the limits established by the Board of Directors, based on the features of the transactions, which are segregated into the following portfolios:

i.1) Trading portfolio: refers to transactions with financial instruments and commodities, including derivatives, held for trading or intended to hedge other financial instruments included in the trading portfolio. Transactions held for trading are those intended for resale, obtainment of benefits from fluctuations in actual or expected prices, or used in arbitration.

i.2) Banking portfolio: refers to transactions that are not classified into the trading portfolio and that are not represented by transactions arising from the Bank’s business lines.

The segregation described above relates to the way Management manages the Bank’s business and the Bank’s exposure to market risks, and are in conformity with the best market practices, the classification criteria set forth in BACEN Resolution 3464/07 and Circular 3354/07, and the New Capital Accord - Basel II. Thus, according to the nature of our business and in compliance with CVM Instruction 475/08, the sensitivity analysis was applied to transactions classified into the Trading portfolio as they represent exposures which would generate material impacts on the Bank’s net income.


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Banking portfolio was not considered in the sensitivity analysis for the following reasons:

• The loan operations in this portfolio are in part financed by demand deposits and foreign fundraising transactions, which constitute a natural hedge for possible interest rate fluctuations;

• Interest rate fluctuations do not have a material impact on the Bank’s income, as it is the Bank’s intent to hold these transactions to maturity; and

• The Banking portfolio does not include derivative transactions which are all classified into the Trading portfolio.

The table below shows the sensitivity analysis of the Trading portfolio as of March 31, 2009:

Financial exposures Scenarios Risk factors 1 2 3

Fixed rate (821) (1,034) (1,250) Foreign currency 4,045 5,034 6,013 Domestic exchange coupon 1,327 1,592 1,813 Price indices (15,526) (19,029) (22,396) Variable income (1,150) (1,438) (1,726) Other (840) (1,044) (1,246)

Total (12,966) (15,921) (18,772)

The sensitivity analysis was conducted considering the following scenarios:

• Scenario 1: refers to the probable scenario for risk factors, and available market information (BM&FBovespa, Andima, etc.) was used as basis for the preparation of this scenario. Accordingly, the risk factors considered were as follows: (i) R$/US$ exchange rate - 2.4260; (ii) fixed interest rate - 13.15% p.a.; and (iii) Ibovespa - 38,000 points;

• Scenario 2: As established by CVM Instruction 475/08, we considered a deterioration of the risk factors of approximately 25% for this scenario. Accordingly, the risk factors considered were as follows: (i) R$/US$ exchange rate - 3.0325; (ii) fixed interest rate - 16.44% p.a.; and (iii) Ibovespa - 30,400 points.


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• Scenario 3: As established by CVM Instruction 475/08, we considered a deterioration of the risk factors of approximately 50% for this scenario. Accordingly, the risk factors considered were as follows: (i) R$/US$ exchange rate - 3.6390; (ii) fixed interest rate - 19.72% p.a.; (iii) Ibovespa - 25,333 points.

It is important to mention that the results shown in the previous table reflect the impacts for each scenario projected on a static position of the portfolio as of March 31, 2009. The market dynamics changes this position continually and does not necessary reflect the actual position on these financial statements’ reporting date. Additionally, as mentioned above, there is a continuous management of the Trading portfolio positions to mitigate the risks associated to such portfolio, according to the strategy defined by Management and, when there are indications of deterioration of a certain position, proactive actions are taken to minimize possible adverse impacts and maximize the risk/return ratio for the Bank.

d) Hedging policy:

The hedging policy is determined based on the Bank’s operation risk exposure limits. Whenever its operations have risk exposures above the established limits, which might result in significant fluctuations in its income, the Bank uses derivatives, contracted in the organized or over-the-counter market to hedge against such risks, according to the hedging rules of the BACEN Circular No. 3082/02.

The hedge instruments are intended to mitigate market, exchange variation and interest risks. According to the market liquidity, the maturity dates of hedge instruments are the closest possible to the dates of the financial flows of the hedged operation, so as to assure an efficient hedge.

Should the hedged item have interim payments, either of interest or principal amortization, derivatives are also contracted with the same interim flows, either flows within the same operation or various operations having the same flows as the hedged item.


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Monthly monitoring is performed to evaluate the effectiveness of derivatives to hedge against market price fluctuations. The effectiveness of each hedge is between 80% and 125%, which refers to the range established by BACEN Circular No. 3082/02.

As of March 31, 2009 and December 31, 2008 the Bank did not have derivatives for cash flow hedge.

e) Fair value:

The estimated fair value of financial instruments is determined using available market information, principally prices and rates provided by the Commodities and Futures Exchange (BM&FBovespa S.A.). When applicable, mathematical models of rate interpolation for intermediate terms, and rate extrapolation for longer terms, are adopted.

The following pricing methodologies were adopted for calculating the fair value of derivatives:

• Futures transactions - quotations disclosed by the BM&FBovespa S.A.

• Swap agreements and non-deliverable forwards - consideration of the future cash flow, discounted to present value by future interest curves obtained from information disclosed by the BM&FBovespa S.A.

II. Quantitative information

Differentials receivable and payable and daily adjustments paid or received for derivatives are recorded in the respective balance sheet accounts “derivatives” and “trading account” against the corresponding statement of income accounts “derivatives” and, as of March 31, 2009 and December 31, 2008, are adjusted to fair value, and the nominal values of these transactions are recorded in memorandum accounts, as shown below:


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a) Breakdown of balances recorded in balance sheet accounts under the captions “derivatives” and “trading account” (Bank and Consolidated):

March 31, 2009 December 31, 2008 Assets

Current

Long-term

Current

Long-term

Derivatives 77,612 111,884 154,472 18,140 Swaps - differential receivable 76,022 110,505 152,602 16,446 Receivable from currency forward contract 1,590 1,379 1,870 1,694 Trading account

Futures transactions pending settlement 3,137 - 4,922 - Unsettled forward contract 753 - 4,922 DDI 612 - 4,391 - DI 80 - 531 - Dollar futures 61 - - - Other receivables Pending settlement 2,384 Liabilities Derivatives

13,736

1,034

19,044

1,085

Swaps - differential payable 13,533 1,034 18,543 1,085 Payable for currency forward contract 203 - 501 - Trading account

Futures transactions pending settlement 3,536 - 15,581 - Unsettled forward contract 3,488 - 15,581 DDI 3,420 - 14,984 - DI 68 - 95 - Dollar futures - 502 Other payables Pending settlement 48

b) Breakdown by type of contract and counterparty (Bank and Consolidated):

March 31, 2009 Adjustments Contract Counterparty Receivable Payable Future BM&F BOVESPA S.A. 753 (3,488) “Swap” Financial institutions 186,527 (14,252) Legal entities - (315) Total “Swap” Operations 186,527 (14,567) Currency Forward Contracts Financial iInstitutions 16 (203) Legal entities 2,953 - Total Currency Forward Contracts 2,969 (203)


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December 31, 2008 Adjustments Contract Counterparty Receivable Payable Future BM&F BOVESPA S.A. 4,922 (15,581) “Swap” Financial Institutions 169,048 (19,628) Currency Forward Contracts

Financial Institutions

-

(501)

Legal entities 3,533 - Individuals 31 - Total Currency Forward Contracts 3,564 (501)

c) Swap agreements (Bank and Consolidated):

March 31, 2009 Notional Cost Fair value Net Indexes value Bank Counterparty Bank Counterparty PositionAsset Operations Trading purpose USD x CDI 286,784 395,237 (296,644) 412,918 (300,701) 112,217Libor x CDI 11,506 14,680 (11,623) 14,917 (11,569) 3,348CDI x USD 52,175 53,028 (51,886) 53,028 (51,103) 1,925Libor x USD 19,403 27,088 (27,154) 27,524 (27,173) 351

Total 369,868 490,033 (387,307) 508,387 (390,546) 117,841 Fair value hedge Libor x CDI 210,583 279,114 (214,557) 283,924 (215,238) 68,686Total 210,583 279,114 (214,557) 283,924 (215,238) 68,686Total asset operations 580,451 769,147 (601,864) 792,311 (605,784) 186,527 Liability Operations Trading purpose CDI x USD 68,950 75,067 (86,834) 75,500 (87,688) (12,188)USD x CDI 20,628 18,920 (21,479) 20,108 (21,848) (1,740)Libor x CDI 31,265 30,752 (32,619) 32,603 (33,196) (593)Libor x USD 13,466 18,816 (18,891) 18,858 (18,904) (46)

Total 134,309 143,555 (159,823) 147,069 (161,636) (14,567) Total liability operations 134,309 143,555 (159,823) 147,069 (161,636) (14,567)


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December 31, 2008 Notional Cost Fair value Net Indexes value Bank Counterparty Bank Counterparty PositionAsset Operations Trading purpose USD x CDI 287,629 397,157 (294,553) 396,842 (302,334) 94,508Libor x CDI 11,506 14,943 (11,914) 14,870 (11,840) 3,030CDI x USD 39,734 40,702 (39,237) 40,702 (38,030) 2,672

Total 338,869 452,802 (345,704) 452,414 (352,204) 100,210 Fair value hedge Libor x CDI 220,735 298,487 (230,596) 300,397 (231,559) 68,838Total 220,735 298,487 (230,596) 300,397 (231,559) 68,838Total asset operations 559,604 751,289 (576,300) 752,811 (583,763) 169,048 Liability Operations Trading purpose CDI x Fixed rate 112 176 (192) 177 (193) (16)USD x CDI 51,893 49,308 (52,388) 52,715 (53,632) (917)CDI x USD 139,905 160,937 (184,763) 160,621 (179,316) (18,695)

Total 191,910 210,421 (237,343) 213,513 (233,141) (19,628) Total liability operations 191,910 210,421 (237,343) 213,513 (233,141) (19,628)

d) Currency forward contracts (Bank and Consolidated):

March 31, 2009 Notional Cost Fair value Net

Currency forward contracts value Bank Counterparty Bank Counterparty position (US$ thousand) Currency forward purchase 6,232 12,224 (14,657) 14,219 (11,471) 2,748 Currency forward sale 2,452 6,408 (6,211) 6,384 (6,163) 221

Total asset operations 8,684 18,632 (20,868) 20,603 (17,634) 2,969 Currency forward purchase 2,452 6,390 (6,211) 6,163 (6,361) (198) Currency forward sale 300 908 (923) 918 (923) (5)

Total liability operations 2,752 7,298 (7,134) 7,081 (7,284) (203)

December 31, 2008 Notional Cost Fair value Net Currency forward contracts value Bank Counterparty Bank Counterparty position

(US$ thousand) Currency forward purchase 6,729 12,787 (15,727) 14,620 (11,590) 3,030 Currency forward sale 4,203 9,998 (9,822) 10,047 (9,513) 534

Total asset operations 10,932 22,785 (25,549) 24,667 (21,103) 3,564 Currency forward purchase 4,203 9,994 (9,822) 9,513 (10,014) (501)

Total liability operations 4,203 9,994 (9,822) 9,513 (10,014) (501)


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e) Futures contracts (Bank and Consolidated):

March 31, 2009 Notional value Daily adjustments Contracts

Long position

Short position

Total exposure Receivable Payable

DDI 409,558 58,756 468,314 612 (3,420) DI 282,954 25,275 308,229 80 (68) Dollar futures - 5,811 5,811 61 - Total 692,512 89,842 782,354 753 (3,488) December 31, 2008 Notional value Daily adjustments Contracts

Long position

Short position

Total exposure Receivable Payable

DDI 471,424 134,047 605,471 4,391 (14,984) DI 529,378 21,363 550,741 531 (95) Dollar futures 15,328 - 15,328 - (502) Total 1,016,130 155,410 1,171,540 4,922 (15,581)

f) By maturity (Bank and Consolidated):

March 31, 2009 Operations

Up to 3 months

From 3 to 12months

From 1 to 3years

From 3 to 5 years

Over 5years

Total

Future 135,156 211,854 397,040 29,573 8,731 782,354 “Swap” 279,546 53,481 381,733 - - 714,760 Currency forward 15,843 4,454 5,090 - - 25,387

Total 430,545 269,789 783,863 29,573 8,731 1,522,501 December 31, 2008 Operations

Up to 3 months

From 3 to 12months

From 1 to 3years

From 3 to 5 years

Over 5years

Total

Future 476,495 81,780 572,244 28,232 12,789 1,171,540 “Swap” 388,168 268,170 95,176 - - 751,514 Currency forward 13,025 12,768 6,575 - - 32,368

Total 877,688 362,718 673,995 28,232 12,789 1,955,422

g) Trading location (Bank and Consolidated):

Notional value March 31,

2009 December 31,

2008 Futures-

Commodities and Futures Exchange (BM&FBovespa S.A) 782,354 1,171,540 Swap-

Clearinghouse for the Custody and Financial Settlement of Securities (CETIP) 714,252 750,491 Commodities and Futures Exchange (BM&FBovespa S.A) 508 1,023

Currency forward contract - Clearinghouse for the Custody and Financial Settlement of Securities (CETIP) 25,387 32,368


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h) Guarantee margins (Bank and Consolidated):

March 31, 2009 December 31, 2008 Federal government securities Adjusted cost Fair value Adjusted cost Fair value LTN (National Treasury bills) 55,951 56,313 45,808 45,477 LTF (Treasury bills) 41,305 41,304 54,662 54,653

Total 97,256 97,617 100,470 100,130

i) Gains and losses on derivatives (Bank and Consolidated):

As March 31, 2009 and December 31, 2008 gains and losses on derivatives were recorded directly under the caption “derivatives”, as shown below:

Bank and Consolidated March 31, 2009 March 31, 2008 Derivatives Gain Loss Net Gain Loss Net Swap 67,826 (58,980) 8,846 32,217 (30,025) 2,192 Currency forward contract 2,635 (2,546) 89 1,596 (1,863) (267) Futures market 192,345 (184,105) 8,240 82,226 (83,131) (905)

Total 262,806 (245,631) 17,175 116,039 (115,019) 1,020

8. LENDING OPERATIONS a) Breakdown of loan portfolio by type of operation:

March 31, 2009 Bank Consolidated

Current Long-term Current

Long-term

Loans 1,591,849 617,260 1,600,935 617,260 Discounted trade notes 117,961 223 165,013 223 Financing 356,733 285,024 435,159 371,886 Rural and agroindustrial financing 876 107 876 107

Total lending operations 2,067,419 902,614 2,201,983 989,476 Other credit notes receivable (note 10.b)) 13,758 - 13,758 - Advances on foreign exchange contracts 107,087 - 107,087 -

Total other operations 120,845 - 120,845 - Total 2,188,264 902,614 2,322,828 989,476


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December 31, 2008 Bank Consolidated


Long-term

Loans 1,832,923 644,800 1,856,572 650,893 Discounted trade notes 155,426 173 205,473 213 Financing 374,748 321,140 444,178 411,312 Rural and agroindustrial financing 8,018 264 8,018 264

Total lending operations 2,371,115 966,377 2,514,241 1,062,682

Other credit notes receivable (note 10.b)) 13,755 - 13,755 - Advances on foreign exchange contracts 112,603 - 112,603 - Imports backed by credit letters (note 19.a)) 2,179 - 2,179 -

Total other operations 128,537 - 128,537 - Total 2,499,652 966,377 2,642,778 1,062,682

b) Assignment of receivables:

In the year ended December 31, 2008, the Bank assigned R$292,252 related to payroll loan and vehicle financing transactions, with co-obligation, to other institutions part of the National Financial System, which were written off from the loan portfolio and are recorded in memorandum accounts (note 26). These assignments do not include the amounts assigned to the FIDCs mentioned in note 2.e).

c) Breakdown of loan portfolio by risk level:

March 31, 2009 December 31, 2008 Total portfolio Allowance Total portfolio Allowance

Risk level Bank Consolidated Bank Consolidated Bank Consolidated Bank Consolidated

AA 51 116,038 - - 175 125,808 - -A 942,197 1,012,922 4,711 4,830 983,342 1,070,960 4,918 5,074B 1,720,103 1,730,821 17,201 17,298 2,075,848 2,086,611 20,758 20,925C 93,770 102,817 2,813 4,143 146,652 152,964 4,399 5,727D 73,982 77,429 7,398 8,457 70,314 73,358 7,031 8,134E 53,407 56,274 16,022 17,712 36,745 39,140 11,023 12,799F 52,431 54,123 26,215 27,235 21,151 22,638 10,576 12,062G 36,236 38,201 25,366 26,966 24,104 25,016 16,873 17,785H 118,701 123,679 118,701 123,679 107,698 108,965 107,699 108,965

Total 3,090,878 3,312,304 218,427 230,320 3,466,029 3,705,460 183,277 191,471

d) Breakdown by business sector:

March 31, 2009 December 31, 2008 Bank Consolidated Bank Consolidated Private sector:

Industrial 608,131 631,598 660,929 693,315 Commercial 309,224 320,157 367,904 382,070 Rural 983 983 8,282 8,282 Other services 832,412 855,274 1,062,780 1,083,841 Individuals 1,325,904 1,490,068 1,348,232 1,520,050

Public sector 14,224 14,224 17,902 17,902 Total 3,090,878 3,312,304 3,466,029 3,705,460


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e) Breakdown by maturity:

March 31, 2009 December 31, 2008 Bank Consolidated Bank Consolidated Current:

Up to 3 months 1,066,751 1,130,786 1,299,977 1,364,814 From 3 to 12 months 901,083 950,977 972,160 1,033,332 From 1 to 3 years 730,500 808,737 782,819 867,052 From 3 to 5 years 150,302 158,927 159,082 171,154 Over 5 years 21,812 21,812 24,476 24,476 Total 2,870,448 3,071,239 3,238,514 3,460,828

Past-due: Up to 60 days 72,776 85,614 100,485 112,706 From 61 to 180 days 79,986 83,663 62,919 67,393 From 181 to 360 days 64,910 69,030 62,259 62,681 Over 360 days 2,758 2,758 1,852 1,852 Total 220,430 241,065 227,515 244,632

Total 3,090,878 3,312,304 3,466,029 3,705,460

f) Concentration of credit risk:

March 31, 2009 Bank Consolidated Largest debtors Amount % of ortfolio Amount % of ortfolio 10 largest debtors 199,682 6.46 199,682 6.03 50 largest debtors 485,936 15.72 485,936 14.67 100 largest debtors 448,882 14.52 450,884 13.61 Other debtors 1,956,378 63.30 2,175,802 65.69

Total 3,090,878 100.00 3,312,304 100.00

December 31, 2008 Bank Consolidated Largest debtors Amount % of ortfolio Amount % of ortfolio 10 largest debtors 233,930 6.75 233,930 6.31 50 largest debtors 540,224 15.59 540,224 14.58 100 largest debtors 511,780 14.76 511,780 13.81 Other debtors 2,180,095 62.90 2,419,526 65.30

Total 3,466,029 100.00 3,705,460 100.00

9. ALLOWANCE FOR LOAN LOSSES The allowance for loan losses for operations recorded in the individual financial statements was recognized under the criteria described in note 3.f) and is considered sufficient to cover potential losses on lending operations. The changes in the allowance as of March 31, 2009 and December 31, 2008 are as follows:


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March 31, 2009

December 31, 2008

Beginning balance 183,277 148,657 Allowance recognized 75,264 67,662 Write-off as loss (40,114) (33,042)

Ending balance 218,427 183,277 Total classified in current assets - lending operations 163,765 134,717 Total classified in current assets - other receivables (Note 10.b)) 13,758 13,755 Total classified in long-term assets 40,904 34,805

10. OTHER RECEIVABLES

Other receivables are composed of the following:

a) Foreign exchange portfolio:

Bank and Consolidated March 31,

2009 December 31,

2008 Exchange purchased pending settlement 130,936 138,408 Rights to foreign exchange sold 26,948 62,348 (-) Advances received in local currency (6,502) (2,207) Income receivable from advances 6,852 7,178

Total 158,234 205,727

b) Other:

Bank March 31, 2009 December 31, 2008


Long-term

Salary advances 300 - 349 - Prepaid expenses 4,425 - 3,257 - Checks receivable 44 - - - Tax credits (note 20.c)) 96,026 75,053 45,557 88,639 Debts for guarantee deposits - 103,183 - 94,340 Recoverable taxes 48 - 41 - Refundable payments 659 - 670 - Credit notes receivable (note 8.a) 13,758 - 13,755 - (-) Allowance for loan losses (note 9) (13,758) - (13,755) -

Sundry debtors 34,234 - 31,998 - Total 135,736 178,236 81,872 182,979


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Consolidated March 31, 2009 December 31, 2008


Long-term

Salary advances 306 - 349 - Prepaid expenses 4,425 - 3,256 - Checks receivable 44 - - - Tax credits (note 20.c)) 96,026 75,053 45,557 88,640 Debtors for guarantee deposits - 103,183 - 94,340 Recoverable taxes 630 - 767 - Refundable payments 659 - 670 - Credit notes receivable (note 8.a) 13,758 - 13,755 - (-) Allowance for loan losses (Note 9) (13,758) - (13,755) -

Sundry debtors 34,234 - 31,998 - Total 136,324 178,236 82,597 182,980

11. OTHER ASSETS

Bank and Consolidated March 31, 2009 December 31, 2008


Long-term

Repossessed assets (1) 19,099 - 26,191 - (-) Allowance for repossessed assets losses (7,884) - (7,375) - Total repossessed assets 11,215 - 18,816 - Prepaid expenses (2) 39,130 46,189 41,760 54,620

Total 50,345 46,189 60,576 54,620 (1) Refer to assets received as payment for loans.

(2) Refer to commissions paid in advance to correspondents (Note 3.i)).

12. INVESTMENTS

Represented substantially by investments in subsidiaries. The principal information on these investments is as follows:

12.1. Direct subsidiaries

ACS Participações Daycoval Asset Management Dayprev

March 31, 2009

December 31,

2008 March 31,

2009 December 31,

2008 March 31,

2009 December 31,

2008 Capital 23,448 23,448 1,554 1,554 15,000 15,000 Number of shares held 101,947,448 101,947,448 14,253 14,253 14,550,000 14,550,000 Net assets 40,875 41,457 1,795 1,772 17,359 16,929 Net income (loss) for the year (581) 3,876

24 (76)

400 352

Ownership interest % 99.99 99.99 99.99 99.99 97.00 97.00 Adjusted investment 40,875 41,456 1,795 1,772 16,838 16,421 Equity in subsidiaries for the year (581) 3,876

24 (76)

388 342

12.2. Indirect subsidiaries

Tree op Investment IFP Planejamento SCC Assessoria


10/6/2009 11:26:42 Page: 44

March 31,2009

December 31,2008

March 31,2009

December 31, 2008

March 31,2009

December 31, 2008

Capital 6,178 5,108 20 20 20 20 Number of shares held 2,668,585 2,668,585 20,000 20,000 20,000 20,000 Net assets 19,559 20,612 113 113 109 109 Net income for the year (861) (1,497) - - - - Ownership interest - % 100.00 100.00 99.99 99.99 99.99 99.99 Adjusted investment 19,559 20,612 113 113 109 109 Equity in subsidiaries (861) (1,497) - - - -

13. FOREIGN BRANCH

The balances of the transactions of Banco Daycoval S.A. - Cayman Branch (foreign branch) with third parties and included in the Bank’s financial statements as of March 31, 2009 and December 31, 2008, are as follows:

March 31, 2009 December 31, 2008 US$ thousand R$ thousand US$ thousand R$ thousand Assets

Cash 39 91 17 40 Interbank investments 1,754 4,061 2,816 6,581 Securities and derivatives 5,332 12,346 1,637 3,826 Other credits 1,030 2,384 - - Other assets 3,371 7,805 3,161 7,387

Total assets 11,526 26,687 7,631 17,834

Liabilities Securities issues abroad 215,609 499,178 217.843 509.099 Borrowing and onlendings 63,198 146,317 55.374 129.409 Other payables 513 1,189 - -

Total liabilities 279,320 646,684 273.217 638.508

14. PROPERTY AND EQUIPMENT

Bank

March 31, 2009 December

31, 2008 Annual

depreciation Accumulated Net book

Net book Description rate - % Cost depreciation value value

Facilities 10 963 (224) 739 761 Furniture and equipment 10 3,247 (712) 2,535 2,513 Communication equipment 10 116 (29) 87 89 Computers and peripherals 20 3,628 (1,469) 2,159 2,458 Security equipment 10 301 (100) 201 209 Vehicles 20 1,639 (1,137) 502 496

Total 9,894 (3,671) 6,223 6,526


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Consolidated

March 31, 2009 December

31, 2008 Annual

depreciation Accumulated Net book

Net book Description rate % Cost depreciation value Value

Real estate (1) 4 10,875 (5,296) 5,579 5,674 Facilities 10 963 (224) 739 761 Furniture and equipment 10 3,249 (712) 2,537 2,515 Communication equipment 10 116 (29) 87 89 Computers and peripherals 20 3,749 (1,570) 2,179 2,478 Security equipment 10 301 (100) 201 209 Vehicles 20 2,330 (1,488) 842 871

Total 21,583 (9,419) 12,164 12,597

(1) Real estate held by the direct subsidiary is stated at cost plus revaluation at market value, which will be realized over the remaining useful life of the asset, as established by BACEN Resolution No. 3565/08.

15. DEPOSITS AND MONEY MARKET FUNDING

Interbank deposits, time deposits and money market funding are traded at market rates. Their maturities are as follows:

Bank March 31, 2009

Without Up to 3 From 3 to From 1 to From 3 to Over maturity months 12 months 3 years 5 years 5 years Total

Demand deposits 70,169 - - - - - 70,169 Interbank deposits - 222,125 175,321 4,245 - - 401,691 Time deposits - 258,790 307,929 411,301 67,714 415,375 1,461,109 Other deposits 23 - - - - - 23 Money market funding - 1,066,663 - - - - 1,066,663 Total 70,192 1,547,578 483,250 415,546 67,714 415,375 2,999,655

December 31, 2008 Without Up to 3 From 3 to From 1 to From 3 to Over 5 maturity months 12 months 3 years 5 years years Total Demand deposits 113,843 - - - - - 113,843 Interbank deposits - 225,246 235,264 3,127 - - 463,637 Time deposits - 465,187 222,793 411,684 81,885 2,995 1,184,544 Other deposits 156 - - - - - 156 Money market funding - 1,290,642 - - - - 1,290,642 Total 113,999 1,981,075 458,057 414,811 81,885 2,995 3,052,822

Consolidated March 31, 2009 Without Up to 3 From 3 to From 1 to From 3 to Over maturity months 12 months 3 years 5 years 5 years Total Demand deposits 65,087 - - - - - 65,087 Interbank deposits - 222,125 175,321 4,245 - - 401,691 Time deposits - 258,790 303,988 410,200 66,912 415,375 1,455,265 Other deposits 23 - - - - - 23 Money market funding - 1,066,663 - - - - 1,066,663 Total 65,110 1,547,578 479,309 414,445 66,912 415,375 2,988,729


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December 31, 2008 Without Up to 3 From 3 to From 1 to From 3 to Over maturity months 12 months 3 years 5 years 5 years Total Demand deposits 113,787 - - - - - 113,787 Interbank deposits - 225,246 235,264 3,127 - - 463,637 Time deposits - 465,187 218,811 410,921 81,475 2,995 1,179,389 Other deposits 156 - - - - - 156 Money market funding - 1,290,642 - - - - 1,290,642 Total 113,943 1,981,075 454,075 414,048 81,475 2,995 3,047,611

16. FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES

The Bank has a global Euro Medium Term Notes (EMTN) program that was implemented on December 14, 2005, and was increased from US$300 million to US$1 billion on June 6, 2008. Funds raised total US$345 million as of March 31, 2009 and December 31, 2008.

The table below shows the characteristics of these operations and respective balances in local currency:

Annual March 31, 2009 Issue in US$ interest rate Issue date Maturity date Bank Consolidated

(US$ thousand) (R$ thousand) 100,000 7.250% 07/21/2008 07/21/2011 227,605 227,605 125,000 6.875% 06/09/2008 06/09/2010 271,573 271,573 120,000 7.750% 10/30/2006 10/30/2009 279,829 274,782 345,000 779,007 773,960

Current 289,915 284,868 Long-term 489,092 489,092 Annual December 31, 2008

Issue in US$ interest rate Issue date Maturity date Bank Consolidated (US$ thousand) (R$ thousand)

100,000 7.250% 07/21/2008 07/21/2011 238,007 238,007 125,000 6.875% 06/09/2008 06/09/2010 271,093 271,093 120,000 7.750% 10/30/2006 10/30/2009 277,978 276,395 345,000 787,078 785,495

Current 286,717 285,134 Long-term 500,361 500,361


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17. BORROWINGS

Bank

Up to 3 months

From 3 to 12 months

From 1 to 3 years

From 3 to 5 years

Over 5 years

Total

March 31, 2009 Borrowings and Onlendings

Foreign currency payables (1) 121,503 107,636 98,586 - - 327,725 Foreign borrowings 3,239 110,590 144,056 17,616 - 275,501 Domestic onlendings BNDES 105 1,948 2,227 - - 4,280 FINAME 729 2,310 5,736 1,587 - 10,362 Foreign onlendings 10,364 30,869 21,392 - - 62,625

TOTAL 135,940 253,353 271,997 19,203 - 680,493 December 31, 2008 Borrowings and Onlendings

Foreign currency payables (1) 172,631 100,009 87,272 - - 359,912 Foreign borrowings 10,871 9,738 226,723 35,232 - 282,564 Domestic onlendings BNDES - 900 2,540 - - 3,440 FINAME - 2,786 7,858 - - 10,644 Foreign onlendings 10,500 31,160 32,201 - - 73,861

TOTAL 194,002 144,593 356,594 35,232 730,421 Consolidated

Up to 3 months

From 3 to 12 months

From 1 to 3 years

From 3 to 5 years

Over 5 years

Total

December 31, 2008 Borrowings and Onlendings

Domestic borrowings (2) - 26,605 - - 110,778 137,382 Foreign currency payables (1) 121,503 107,636 98,586 - - 327,725 Foreign borrowings 3,239 110,590 144,056 17,616 - 275,501 Domestic onlendings BNDES 105 1,948 2,227 - - 4,280 FINAME 729 2,310 5,736 1,587 - 10,362 Foreign onlendings 10,364 30,869 21,392 - - 62,625

TOTAL 135,940 279,958 271,997 19,203 110,778 817,876 December 31, 2008 Borrowings and Onlendings

Domestic borrowings (2) - 31,040 - - 120,032 151,072 Foreign currency payables (1) 172,631 100,009 87,272 - - 359,912 Foreign borrowings 10,871 9,738 226,723 35,232 - 282,564 Domestic onlendings BNDES - 900 2,540 - - 3,440 FINAME - 2,786 7,858 - - 10,644 Foreign onlendings 10,500 31,160 32,201 - - 73,861

TOTAL 194,002 175,633 356,594 35,232 120,032 881,493

(1) Refers to fundraising for foreign exchange operations related to export and import financing.

(2) The balance of Domestic borrowings, included in the consolidated financial statements, refers to the amount of senior shares, less the amount held by the Bank represented by the subordinated shares held in Daycoval FIDC and Daycoval Veículos FIDC, for the quarter ended March 31, 2009 and December 31, 2008.


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18. INSURANCE OPERATIONS (CONSOLIDATED)

a) Receivables from insurance operations

Represented by receivables as of March 31, 2009 and December 31, 2008, in the amount of R$885 and R$273, respectively, relating to DPVAT (mandatory insurance against personal injury caused by automotive land vehicles) recorded under the caption “Other receivables - insurance premiums”.

b) Technical reserves

March, 31, 2009

December31, 2008

Unsettled claims 5,245 2,265 Pension plan 8 7 Other reserves 126 249

Total 5,379 2,521

c) Assets guaranteeing technical reserves March,

31, 2009 December

31, 2008

LFT (Treasury bills) 4,836 3,090 Assets guaranteeing technical reserves 4,836 3,090

d) Results of insurance operations

Quarter ended March,

31, 2009 December

31, 2008

Revenue from premiums and contributions 7,045 3,120 Claims expenses (6,110) (2,514) Selling expenses 19 (246)

Total (1) 954 360 (1) Recorded under the caption “Other operating income” in the statement of income.


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19. OTHER PAYABLES a) Foreign exchange portfolio

Bank and Consolidated March,

31, 2009 December

31, 2008 Exchange sold pending settlement 27,016 60,584 (-) Import financing - contracted exchange rate - (2,179) Foreign exchange purchased 108,814 105,955 (-) Advances on foreign exchange contracts (101,299) (105,437) Unearned income on advances granted 1,063 12

Total 35,594 58,935

b) Social and statutory

Bank Consolidated March,

31, 2009 December 31, 2008

March, 31, 2009

December31, 2008

Dividends and bonuses payable (Note 22.f)) 25,785 22,568 25,785 22,568 Profit sharing program (Note 25.1) 2,310 7,224 2,404 7,283

Total 28,095 29,792 28,189 29,851

c) Tax and social securities

Bank March 31, 2009 December 31, 2008


Long-term

Income tax 13,323 - 65,639 - Social contribution 4,165 - 21,623 - Prepaid income tax and social contribution (5,022) - (30,702) - Taxes payable 7,525 - 6,303 - Deferred income tax and social contribution - (Note 20.c)) 40,295 31,388 7,044 38,484 Legal obligations (Note 21.b)) - 273,454 - 225,727 Total 60,286 304,842 69,907 264,211 Consolidated March 31, 2009 December 31, 2008


Long-term

Income tax 13,707 - 66,389 - Social contribution 4,348 - 21,994 - Prepaid income tax and social contribution (5,264) - (31,559) - Income tax and social contribution on revaluation of assets 966 - 965 - Taxes payable 7,656 - 6,347 - Deferred income tax and social contribution (*) - (Note 20.c)) 40,295 31,410 7,044 38,487 Legal obligations - (Note 21.b)) - 273,454 - 225,727 Total 61,708 304,864 71,180 264,214


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d) Other Bank Consolidated

March 31, 2009

December 31, 2008

March 31, 2009

December 31, 2008

Curren

t Long-term

Current

Long-term

Current

Long-term

Current

Long-term

Cashier’s checks 19 - 1,202 - 19 - 1,202 - Accrued liabilities 9,322 - 8,423 - 11,875 - 9,079 - Reserve for contingencies (Note 21.b))

-

4,528

-

3,969

-

4,528

-

3,969

Sundry creditors 24,280 - 20,589 - 24,284 - 20,593 - Total 33,621 4,528 30,214 3,969 36,178 4,528 30,874 3,969

20. INCOME TAX AND SOCIAL CONTRIBUTION

a) Income tax and social contribution were calculated as follows:

Bank Consolidated March 31,

2009 December 31,

2008 March 31,

2009 December 31,

2008 Income before income tax and social contribution,

less interest on capital 29,435 71,463

29,845 71,811 Income tax and social contribution at the rates of 25%

and 15%, respectively (*) (11,774) (24,297)

(11,950) (24,490) Additions:

Equity in subsidiaries (351) 51 (709) - Adjustments of derivatives (11,148) (5,855) (11,162) (5,855) Allowance for loan losses (30,106) (10,022) (30,106) (10,022) Nondeductible expenses (2,664) (1,067) (2,726) (1,067) Other (1,754) (1,960) (1,754) (1,909)

Deductions: Equity subsidiaries 372 - 372 - Adjustments of derivatives 24,844 6,562 24,844 6,562 Losses on lending operations 11,472 - 11,472 - Nontaxable income 845 446 845 447 Other - - 43 6

Current income tax and social contribution (20,264) (36,142) (20,831) (36,328)

(*) For the quarter ended March 31, 2008, the social contribution rate was 9%,


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b) Income tax and social contribution on temporary additions and deductions (assets and liabilities):

As established by Resolution No. 3059/02, amended by Resolution No. 3355/06, both of BACEN and CVM Instruction No. 371/02, deferred tax assets and liabilities (“tax credits” and “deferred taxes”) arising from temporary differences must cumulatively meet the following conditions: (i) history of taxable income or profits for income tax and social contribution purposes, for at least three of the last five fiscal years, including the year at issue; and (ii) expected future taxable income or profits for income tax and social contribution purposes, for subsequent periods, based on an internal technical study showing the probability of occurrence of future tax obligations to be offset against the tax credit within a period of 10 years.

c) Deferred tax credits and deferred taxes consist of the following:

Tax credits: December 31,

2008 Recognition Write-off March 31,

2009 Deferred income tax and social contribution on:

Reserve for tax contingencies 44,937 7,892 - 52,829Allowance for loan losses 41,821 30,310 (11,472) 60,658Adjustment to fair value of securities and derivatives 33,129 8,449 (703) 40,875Other temporary additions 14,309 2,408 - 16,717

Total tax credits on temporary differences 134,196 49,059 (12,175) 171,079

Deferred taxes: Deferred income tax and social contribution on:

Adjustment to fair value of securities and derivatives 26,409 19,021 - 45,430 Unrealized profits on derivatives 11,340 6,289 - 17,629 Other 7,779 845 - 8,624

Total deferred taxes 45,528 26,155 - 71,683


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Tax credits: September 30,

2008 Recognition Write-off December 31,

2008 Deferred income tax and social contribution on:

Reserve for tax contingencies 53,966 3,691 - 44,937 Allowance for loan losses 37,698 30,015 (25,892) 41,821 Adjustment to fair value of securities and derivatives 14,735 19,845 (1,450) 33,129 Other temporary additions 979 610 - 14,309

Total tax credits on temporary differences 107,378 54,161 (27,342) 134,196

Deferred taxes: 2006 Recognition Write-off 2007 Deferred income tax and social contribution on:

Adjustment to fair value of securities and derivatives 4,930 21,479 - 26,409 Unrealized profits on derivatives 6,146 5,194 - 11,340 Other 6,867 912 - 7,779

Total deferred taxes 17,943 27,585 - 45,528

Considering that Provisional Act 413, issued on January 3, 2008 and signed into Law 11727 of June 23, 2008, changed the rate of the social contribution on income (CSLL) of insurance companies, as well as of capitalization companies and financial institutions, from 9% to 15% starting on May 1, 2008, the balances of deferred taxes assets and liabilities recorded beginning April 30, 2008 were adjusted for the difference between the above-mentioned rates, which resulted in an increase of R$8,755 in the balance of tax credits and R$1,758 in the balance of deferred taxes.

d) Estimated realization of tax credits:

March 31, 2009 Temporary differences Total Realization Income tax

Social contribution

deferred taxes

Up to 1 year 60,016 36,010 96,026Up to 2 years 3,091 1,855 4,946 Up to 3 years 116 69 185 Up to 4 years 1,133 680 1,813 Up to 5 years 55,253 12,856 68,109

Total 119,609 51,470 171,079


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December 31, 2008 Temporary differences Total Realization Income tax

Social contribution

deferred taxes

Up to 1 year 28,474 17,083 45,557Up to 2 years 480 288 768 Up to 3 years 2,612 1,567 4,179 Up to 4 years 66 40 106 Up to 5 years 61,967 21,619 83,586

Total 93,599 40,597 134,196

The present value of tax credits as of March 31, 2009 and December 31, 2008 is R$144,405 and R$103,256, respectively, and was calculated based on expected realization of temporary differences, discounted at the average funding rate of the Bank, for related periods.

Taxable income projections consider macroeconomic assumptions, exchange and interest rates, estimates of new financial operations, among others, which may differ from actual results.

21. CONTINGENT ASSETS AND LIABILITIES AND LEGAL OBLIGATIONS (TAX AND SOCIAL SECURITY) a) Contingent assets - in the quarter ended March 31, 2009 and December 31, 2008, the

Bank and its subsidiaries did not recognize contingent assets. b) Contingent liabilities classified as probable losses and legal obligations (tax and social

security). The Bank is a party to various lawsuits involving labor, civil and tax matters, Reserves are recorded based on assessments according to the criteria described in note 3,s), The Bank’s management understands that the reserve recorded is sufficient to cover losses on these lawsuits.


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Reserve recorded and respective changes for the quarter ended March 31, 2009 and December 31, 2008 are as follows:

Bank and Consolidated March 31,

2009 December 31,

2008 Reserve for tax contingencies (b,1) 273,454 225,727 Labor lawsuits (Note 19 d)) 367 162 Civil lawsuits (Note 19 d)) 4,161 3,807 Total 277,982 229,696

Tax Labor Civil

March 31,, 2009

December 31, 2008

March 31, 2009

December 31, 2008

March 31, 2009

December 31, 2008

Balance at beginning of year 225,727 214,003 162 190 3,807 2,254 Inflation adjustment 5,459 5,070 - - - - Recognition (reversal) 42,268 6,654 205 (28) 354 1,553

Balance at end of year 273,454 225,727 367 162 4,161 3,807

b.1) The Bank is challenging in court the legality of certain taxes and the amounts

involved are fully accrued and updated,

The main lawsuits are: Income tax: seeks deduction of social contribution amounts from the income tax basis and challenges the effect of the discontinuation of the inflation adjustment of the balance sheet; Social contribution tax: (i) challenges the effect of the discontinuation of the inflation adjustment of the balance sheet, the existence of different tax rates and seeks the recognition of interest on capital as deductible expense for 1996; and (ii) challenges the increase of the social contribution rate from 9% to 15%, as established by Provisional Act No, 413/08, signed into Law 11727 of June 23, 2008; COFINS (tax on revenue): challenges application of Law 9718/98; PIS (tax on revenue): challenges application of Law 9718/98 and requirement by tax authorities of determination of the PIS basis in disagreement with Constitutional Amendments 01/94, 10/96 and 17/97.


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c) Contingent liabilities classified as possible losses These contingent liabilities, represented by civil and labor lawsuits, are not recorded. Civil lawsuits refer principally to claims for compensation for pain and suffering and property damages, with a risk estimate of R$21,638 as of March 31, 2009 and R$20,790 as of December 31, 2008. As of March 31, 2009 and December 31, 2008, the risk estimate for labor lawsuits is approximately R$1,430 and R$1,661, respectively,

There are no significant administrative proceedings in progress for noncompliance with the rules of the National Financial System or payment of fines, which might cause a material impact on the financial position of the Bank and its subsidiaries.

22. SHAREHOLDERS’ EQUITY (BANK)

a) Capital:

Fully subscribed and paid-up capital of the Bank is represented by registered common and preferred shares without par value.

b) Breakdown of common and preferred shares: Number of shares

March 31, 2009

December 31, 2008

Common shares 142,418,179 142,418,179 Preferred shares 80,215,333 80,215,333 (-) Treasury shares (Note 22,e,2)) (3,306,200) (2,615,400) Total 219,327,312 220,018,112

c) Changes in capital

Number of shares Common Preferred Total Number of shares as of December 31, 2008 142,418,179 77,599,933 220,018,112

Repurchase of shares during the quarter ended March 31, 2009 (note 22.d.2))

-

(690,800)

(690,800)

Number of shares as of March 31, 2009 142,418,179 76,909,133 219,327,312


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d) Share buyback plan

The Bank’s Board of Directors’ meeting of April 3, 2009 approved the Share Buyback Plan, whereby shares are held in treasury and subsequently sold or cancelled, without capital reduction, using existing reserves, in conformity with Law 6404/76, CVM Instruction 10/80, and the Bank’s bylaws.

d.1) Purpose, term and intermediaries of the share buyback plan:

I - Purpose: up to 10% of outstanding registered preferred shares, represented by up to 6,426,317 preferred shares, shall be acquired for purposes of being held in treasury and subsequently sold or cancelled;

II - Term: the share buyback plan was renewed for an additional 6 months, now expiring October 6, 2009.

III - Intermediaries: these shares will be bought on the São Paulo Stock Exchange BM&FBOVESPA S,A- Commodities and Futures Exchange, at market price and purchase will be intermediated by: (i) Ágora CVTM S.A., enrolled with the National Register of Legal Entities (CNPJ) under No. 74.014.747/0002-16, with headquarters at Avenida Rua Leopoldo Couto Magalhães Jr., 758, 1º andar, São Paulo; (ii) Fator S.A. Corretora de Valores, enrolled with the CNPJ under No. 63.062.749/0001-83, with headquarters at Rua Dr. Renato Paes de Barros nº 1017, 11º andar, São Paulo; (iii) Concórdia S/A CVMCC, enrolled with the CNPJ under No. 52.904.364/0001-08, with headquarters at Rua Libero Badaró, 425, 23º andar, São Paulo; (iv) Itaú Corretora de Valores S.A., enrolled with the CNPJ under No. 61.194.353/0001-64, with headquarters at Avenida Doutor Hugo Beolchi, 900, 15° andar, São Paulo; and (v) UBS Pactual Corretora de Títulos e Valores Mobiliários S.A. , enrolled with the CNPJ under No 43.815.158/0001-22, with headquarters at Av. Brigadeiro Faria Lima, 3729, 10º andar, São Paulo.


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d.2) Treasury shares:

Information on shares bought back as of March 31, 2009 is shown as follows:

Buyback trading prices

Type

Acquisitionof treasury

shares minimum average maximum

Average market price (1)

Marketvalue

Preferred shares 3,306,200 3.67 7.19 15.26 4.73 15,638 (1) Closing quotation disclosed by the BM&FBOVESPA- Commodities and Futures Exchange, of the Bank’s

preferred shares, ticker DAYC4, based on the trading of March 31, 2009,

e) Interest on capital and/or dividends:

According to the bylaws, the shareholders are entitled to dividends and/or interest on capital equivalent to not less than 25% of net income for the year adjusted according to Brazilian corporate law.

Interest on capital is calculated on shareholders’ equity, limited to the variation of the TJLP (long-term interest rate), contingent upon the existence of income before its deduction or retained earnings and profit reserves.

The calculation of dividends and interest on capital for the quarter ended March 31, 2009 is as follows:

March 31, 2009

%(*)

Net income for the quarter 48,034 Adjusted calculation basis 48,034

Gross interest on capital 24,265 (-) Withholding income tax on interest on capital (3,501) Net interest on capital for the quarter 20,764 Net interest on capital and dividends for the quarter 20,764 43.23%

(*) Refers to the percentage corresponding to the sum of the net interest on capital and dividends and the

adjusted calculation basis for the quarter ended March 31, 2009.


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Dividends and interest on capital paid or accrued are as follows:

Quarter ended March 31, 2009 Gross amount

per share Amount paid

or accrued Amount

paid or accrued

Description Common Preferred Gross IRRF net

Interest on capital(1) 0.11063 0.11063 24,265 (3,501) 20,764 Total paid or accrued in the quarter 24,265 (3,501) 20,764

(1) The Bank’s Board of Directors’ meeting held on March 30, 2009 ratified the payment of interest on capital for the period from January 1 to March 30, 2009 approved by the executive committee, subject to the approval of the Shareholders' Meeting, The amounts were made available to shareholders on April 15, 2008,

f) Profit reserves:

March 31, 2009

December 31, 2008

Revaluation reserves (1) 1,991 1,991 Profit reserves 267,717 267,717

Legal reserve(2) 20,308 20,308 Unrealized profit reserve (3) 12,409 12,409 Statutory reserves (4) 235,000 235,000

Treasury shares (Note 22,e,2)) (20,143) (16,874) (1) Refers to the revaluation of properties of subsidiary, which is recorded in income over the estimated useful life of

the revalued asset;

(2) 5% of net income for the year must be allocated to this reserve until it equals 20% of capital, according to prevailing legislation;

(3) Partial reversal of the recorded reserve relating to the net income of the indirect subsidiary Treetop Investment Ltd.;

(4) Reserve recorded according to the bylaws.


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23. STATEMENTS OF INCOME

a) Other administrative expenses:

Bank Consolidated Quarter ended Quarter ended March 31,

2009 March 31,

2008 March 31,

2009 March 31,

2008 Public utilities 217 201 217 201 Rent and insurance 1,865 1,533 1,876 1,533 Communications 479 698 479 698 Charitable contributions 186 135 186 135 Assets maintenance 255 458 255 458 Materials 102 396 102 396 Data processing 907 1,790 908 1,790 Promotion, advertising and publications 659 1,247 700 1,261 Outside technical and specialized services 19,003 23,885 19,028 23,915 Depreciation and amortization 348 300 480 437 Other administrative expenses 2,742 1,393 3,393 2,051 Total 26,763 32,036 27,624 32,875

b) Other operating income:


2009 March 31,

2008 March 31,

2009 March 31,

2008 Exchange variation on liabilities 13,441 5,980 13,441 5,980 Inflation adjustment of escrow deposits 2,111 1,198 2,111 1,199 Other operating income 1,538 478 1,640 515 Income from insurance operations - - 954 763 Recovery of charges and expenses 15 85 15 85

Total 17,105 7,741 18,161 8,542

c) Other operating expenses:


2009 March 31,

2008 March 31,

2009 March 31,

2008 Inflation adjustment of taxes 5,821 3,670 5,821 3,670 Exchange variation 221 - 553 289 Other operating expenses 3,943 1,472 3,943 1,472

Total 9,985 5,142 10,317 5,431


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24. OPERATING LIMITS (BASEL ACCORD)

The Central Bank of Brazil disclosed Communications 12746/04 and 16137/07, which address the guidelines and the implementation schedules of the criteria of the New Basel Accord (Basel II). These Communications contain the recommendations of the Basel Banking Supervision Committee, contained in the document “International Convergence of Capital Measurement and Capital Standards” (Basel II), which establish more appropriate criteria for the risk levels associated to financial institutions’ operations for the allocation of regulatory capital.

In addition to these Communications, the National Monetary Council disclosed several regulations that establish the guidelines to calculate regulatory capital, which went into effect on July 1, 2008, such as: • Resolution 3490/07 - Defines the Minimum Regulatory Capital (PRE);

• Circular 3360/07 - Defines the Risk-Weighted Exposure (PEPR) portion;

• Circulars 3361/07 to 3364/07, 3366/07, 3368/07, and 3389/08 - Define exposure to the Interest (PJUR-1 to PJUR-4), Share (PACS), Commodities (PCOM) and Foreign Exchange (PCAM) portions;

• Circular 3383/07 - Defines the Operational Risk Portion. The table below shows, based on the regulations mentioned in the paragraph above, the calculation of the capital requirements and the Basel ratio:

March 31, 2009

December 31, 2008

Adjusted shareholders’ equity 1,634,067 1,607,228 Write-down of revaluation reserves (1,991) (1,991) Write-down of valuation adjustments to available-for-sale securities (1,420) (4,919) Tier I Regulatory Capital 1,630,656 1,600,318 Addition of revaluation reserves 1,991 1,991 Addition of valuation adjustments to available-for-sale securities

1,420

4,919 Tier II Regulatory Capital 3,411 6,910 Risk-weighted Regulatory Capital 1,634,067 1,607,228 Capital allocation by risk level

Credit risk 367,031 428,630 Market risk 197,451 186,084 Operational risk 32,038 12,815

Required regulatory capital (PRE) 596,520 627,529 Basel ratio 30.13% 28.17%

As of March 31, 2009 and December 31, 2008, the Bank’s shareholders' equity exceeded 173.93% and 156.12%, respectively, BACEN’s required regulatory capital.


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25. EMPLOYEE BENEFIT

25.1. Profit sharing program As part of its strategy of being ranked among the best companies to work in Brazil, the Bank has invested in welfare and empowering programs involving university students and MBA and postgraduate programs, adhered to the federal government’s Underage Apprentice initiative, and implemented its own internship programs.

The Bank has a profit sharing program for all its employees. This program is prepared together with the Union of Bank Employees and is tied to performance targets evaluated annually, using the criteria according to the Performance Assessment program.

25.2. Stock option plan

The Extraordinary Shareholders’ Meeting approved on May 21, 2008 a Stock Option Plan under which the Bank will grant to its officers, employees and individuals who render services to the Bank and its subsidiaries options to purchase its shares. The stock option programs were approved by the Board of Directors on July 25, 2008 and December 12, 2008.

I - Purpose of the Plan:

The Plan is designed primarily to: (i) boost the Bank’s expansion by creating incentives for better integration of employees as shareholders of the Bank; (ii) allow the Bank to retain its professionals, granting them as additional advantage and incentive the opportunity to become shareholders of the Bank under the terms and conditions of the Plan; and (iii) foster good performance of the Bank and the interests of its shareholders by means of its executives’, officers’ and employees’ long-term commitment.

II - Plan management and option shares:

The plan will be managed by the Board of Directors and all decisions related to the Plan shall be approved by the Board.


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The Options granted under the Plan cannot exceed, during the period the Plan is effective, a maximum limit of 5% of the total shares of the subscribed and paid-up capital, at any time, and the shares subject to the Options granted under the Plan will derive, as resolved by the Board of Directors: (i) from the issuance of new preferred shares, within the authorized capital limit; and/or (ii) from treasury shares.

III - Beneficiaries:

Executives, officers and employees of the Bank and its direct and indirect subsidiaries, and individuals who render services to the Bank or its subsidiaries are eligible to participate in this Plan.

The beneficiaries will have no right as shareholders of the Bank (including the right to receive dividends), with respect to any shares subject to the Options, until such shares are fully subscribed/acquired and paid up by the beneficiaries.

IV - Price and vesting period:

1st Program:

The exercise price per share will be equivalent to the weighted average of the last 30 trading sessions immediately prior to the option exercise notice, with a discount of 30%.

The vesting period for the 1st Program is determined as follows:

Exercisable option

Vesting period percentage

At the end of the 2nd year 50% At the end of the 3rd year 25% At the end of the 4th year 25%

2nd Program:

The exercise price per share will be R$15,00, adjusted by the variation of the IPCA (extended consumer price index) published by the IBGE (Brazilian Institute of Geography and Statistics) or one that may replace it, from the date of approval of the Program to the date of exercise of the Stock Option.


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The vesting period for the 2nd Program is determined as follows:

Exercisable option Vesting period percentage

At the end of 1st year 25% At the end of the 2nd year 25% At the end of the 3rd year 25% At the end of the 4th year 25%

3rd Program

The price per share for exercising options (“Exercise Price”) will be defined on the stock option grant date, adjusted by the fluctuation of the Extended Consumer Price Index disclosed by the Brazilian Institute of Geography and Statistics (“IPC-A”), or any index that replaces it, from the date the beneficiaries join the Program up to the date the stock option is exercised.

The vesting period of the 3rd stock option program is 180 days, starting on the date of adherence to the Program.

The exercise price will be adjusted taking into consideration dividends and interest on capital that may be paid.

V - Options granted:

Option Grant Vesting expiration Options

Number Date date date granted

1st Program 1st grant 07/25/2008 07/25/2010 07/25/2018 864,290 2st grant 12/12/2008 12/12/2010 12/12/2018 42,857 Total options granted under the 1st Program 907,147 3st Program 1st grant 12/12/2008 06/12/2009 12/12/2018 303,000 Total options granted under the 3rd Program 303,000

Total options granted 1,210,147

Until the date of publication of these financial statements, there were no grants for the 2nd Stock Option Program.

VI - Fair value calculation

The fair value of the stock options of the First Stock Option Program was calculated based on statistical modeling that takes into consideration all the main features of this Program, including vesting period, option exercise conditions, and price of the underlying asset.


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For the quarters ended March 31, 2009 and December 31, 2008, the accounting effects, had they been recognized, would negatively impact net income by R$626 and R$357.

26. GUARANTEES PROVIDED ON BEHALF OF THIRD PARTIES (BANK AND CONSOLIDATED)

Guarantees provided on behalf of third parties as of March 31, 2009 and December 31, 2008 amount to R$ 269,856, and R$ 313,965, respectively, are as follows:

Composition March 31,

2009 December 31,

2008 Import financing 268 10,649 Guarantee beneficiaries 33,692 27,965 Receivables assignment co-obligations 235,896 275,351 Total guarantees and collaterals provided and third-party liaibility 269,856 313,965

Bank guarantees and collaterals and third-party liability are subject to financial charges and counter-guarantees provided by beneficiaries.

The table below shows guarantees provided on behalf of third parties, recorded in memorandum accounts, as of March 31, 2009 and December 31, 2008:

Bank and Consolidated

Up to 3 months

From 3 to 12 months

From 1 to 3 years

From 3 to 5 years

Over 5 years

Total

March 31, 2009 50,507 82,098 112,820 23,294 1,137 269,856 December 31, 2008 53,562 92,450 134,608 31,725 1,620 313,965

The Bank does not guarantee any transaction of direct and indirect subsidiaries, its directors and their family.


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27. RELATED-PARTY TRANSACTIONS

a) The direct and indirect subsidiaries and the shareholders of the Bank enter into transactions with the Bank under usual market conditions. These transactions are contracted at rates consistent with those prevailing in the market on the transaction and settlement dates.

The table below shows the transactions between the Bank and its related parties as of March 31, 2009 and December 31, 2008:

March 31, 2009 December 31, 2008

Transactions Assets

(liabilities) Income

(expenses) Assets

(liabilities) Income

(expenses) Demand deposits (70) - (198) - Parent company (9) - (9) - Daycoval Holding Financeira S.A. (9 - (9) - Direct subsidiaries (54) - (56) - ACS Participações Ltda. (11) - (45) - Daycoval Asset Management Ltda. (27) - (6) - Dayprev Vida e Previdência S.A. (16) - (5) - Other related parties (7) - (7) - Daycoval Cobr. A. Serv. Ltda. (2) - (2) - Daycoval Fomento Comercial Ltda. (2) - (1) - Parateí Agropecuária e Imob. Ltda. (2) - (4) - Valco Admin. Part. e Repres. Ltda. (1) - - - Other related parties - individuals (163) - (126) - Time deposits (165,806) (3,353) (91,387) (2,938) Direct subsidiaries (5,844) (162) (5,154) (172) ACS Participações Ltda. (5,058) (139) (4,391) (145) Daycoval Asset Management Ltda. (786) (23) (763) (27) Other related parties (431) (13) (432) (14) Daycoval Fomento Comercial Ltda. (375) (11) (373) (12) Parateí Agropecuária e Imob. Ltda. (56) (2) (59) (2) Other related parties - individuals (159,531) (3,178) (85,801) (2,752) Securities issued abroad

(5,047)

(35)

(1,583)

(53)

Direct subsidiaries (239) (5) (213) (15) ACS Participações Ltda. (239) (5) (213) (15) Indirect subsidiaries (4,808) (30) (1,370) (38) Treetop Investments Ltd. (4,808) (30) (1,370) (38) Subordinated shares (note 6.b)) 72,150 (1,014) 80,165 1,757 Other related parties - legal entity 72,150 (1,014) 80,165 1,757 Daycoval FIDC 22,284 (641) 28,130 2,524 Daycoval Veículos FIDC 50,866 (373) 52,035 (767)


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The table below shows the interest rates and respective periods of transactions between the Bank and its related parties as of March 31, 2009: Assets (liabilities)

Description Interest rateUp to

months From 3 to 12 month

From 1 to 3 years

From 3 to 5 years

Up to 5 years

Total

Time deposits 734 7,586 17,914 27,858 111,714 165,806 Controladas diretas - 3,941 1,101 802 - 5,844 ACS Participações Ltda. 103% CDI - 3,941 315 802 - 5,058 Daycoval Asset Management Ltda. 103% CDI 786 786 Outras empresas coligadas 375 51 5 - - 431 Daycoval Fomento Comercial Ltda. 103% CDI 375 - - - - 375 Parateí Agropecuária e Imob. Ltda. 103% CDI - 51 5 - - 56 Outras partes relacionadas - pessoas físicas 104% CDI 359 3,594 16,808 27,056 111,714 159,531 Obrigações por títulos e valores mobiliários emitidos no exterior

- 5,047 - - - 5,047

Controladas diretas - 239 - - - 239 ACS Participações Ltda. 7,75% a.a. - 239 - - - 239 Controladas indiretas - 4,808 - - - 4,808 Treetop Investments Ltd. 7,75% a.a. - 4,808 - - - 4,808 Cotas subordinadas (Nota 6.b)) Outras partes relacionadas - pessoa jurídica - 28,130 - - 50,866 72,150 Daycoval FIDC 106% CDI - 28,130 - - - 28,130 Daycoval Veículos FIDC 113% CDI - - - - 50,866 50,866

Pursuant to Brazilian legislation, the financial institutions cannot grant loans or advances and cannot guarantee operations of their controlling shareholders, affiliates, directors or their second-degree relatives. Accordingly, the Bank does not grant loans or advances and does not guarantee any operation of its direct and indirect subsidiaries, their directors or family.

b) Compensation of key management personnel:

The Annual Shareholders' Meeting sets the overall compensation of management, as established by the Bank’s bylaws.


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Management compensation for the year ended December 31, 2009 was a set at a maximum amount of R$10 million. March 31,

2009 December

31, 2008 Management short-term benefits

Fixed compensation 573 573 Total 573 573 Management long-term benefits Number Number

Stock options granted - note 25.2 47,620 47,620

The Bank does not grant other short- or long-term post-employment, and employment contract termination benefits to the key management personnel.

c) Ownership interest:

As of March 31, 2009, the members of the Board of Directors and the Executive Committee hold jointly the following interest in the Bank’s capital:

Percentage interest held per

type of share • Registered common shares -

through indirect interest (Daycoval Holding Financeira S.A.)

92.16% • Registered preferred shares 20.88%

28. OTHER INFORMATION

a) Third-party asset management

Daycoval Asset Management is responsible for managing third-party assets through investment funds, whose net assets as of March 31, 2009 and December 31, 2008 are R$189,336 and R$238,080, respectively.

b) Insurance coverage against operational risks

Despite the low risk exposure as a result of their assets not being physically concentrated, the Bank and its subsidiaries have insurance for their assets in amounts considered sufficient to cover potential losses.


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c) Relationship with Auditors

In conformity with CVM Instruction 381, of January 14, 2003, we inform herein that the firm engaged to audit the financial statements did not provide non-audit services to the Bank. Our policy for contracting technical and professional services of independent auditors assures that no conflict of interest exists, and independence or objectivity is not impaired.

d) Audit Committee:

As required by CMN Resolution 3198/04, and with a view to adopting the industry best practices in conducting its businesses, the Bank´s Board of Directors, at a meeting held on March 26, 2009, decided to establish an Audit Committee, which will be comprised of at least 3 board members. The establishment of this committee was submitted to the Central Bank of Brazil for approval.

e) Investment Agreements and issuance of share subscription bonus: The Bank signed an Investment Agreement (the “Agreement” or “transaction”) with institutional investors, whereby funds of approximately R$410 million were raised in the quarter ended March 31, 2009. The following take part in the Agreement: Cartesian Capital Group, Wolfensohn Capital Partners, International Finance Corporation (IFC) and controlling shareholders. Minority shareholders could also take part in the agreeement, under the same conditions as the other participants. The primary objectives of said Agreement for the Bank include: a) Increase liquidity and reinforce the capital structure before today’s economic

scenario;

b) Strengthen the Bank´s fundraising basis to make it possible to expand its lending operations for the middle market segment; and

c) Diversify fundraising sources and extend the average term.

The transaction has a pioneering structure, as it consists of a private offering of bonus for subscription of common and preferred shares. Only the subscription type under which the bonus underwriter opted for the share subscription in a later period was exercised. Under this option, underwriters invested in Bank Certificates of Deposit (CDB) issued by the Bank, with the following features:


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a) Average yield of 99% of DI-CETIP Over rate, as follows: 110% of DI-CETIP Over rate in the period from the investment date through March 31, 2012 and, from March 31, 2013 to March 31, 2014, yielding 55% of DI-CETIP Over rate, as calculated and disclosed by Cetip; and

b) Bonuses may be early redeemed, either in part or in whole, by underwriters, exclusively for share subscription purposes, as a result of the bonus being exercised (which may occur beginning March 31, 2011) at a fixed price of R$7.75 per share.

29. STATEMENTS OF VALUE ADDED Quarter ended Quarter ended

March 31, 2009 December 31, 2008 Bank Consolidated Bank Consolidated INCOME 275,599 283,110 220,120 236,393 Income from financial intermediation 294,899 301,637 284,130 299,419 Income from services provided 4,056 4,317 3,981 4,241 Allowance for loan losses (29,477) (29,477) (75,264) (75,264)Others 6,121 6,633 7,273 7,997 EXPENSES (117,154) (122,835) (108,055) (121,974)Expenses from financial intermediation (117,154) (122,835) (108,055) (121,974) INPUTS ACQUIRED FROM THIRD PARTIES (30,093) (30,927) (24,686) (25,915)Materials, electric power and others (3,735) (4,393) (4,225) (4,880)Outsided services (26,573) (26,618) (20,476) (20,539)Recovery (Loss) of assets 215 84 15 (496) GROSS VALUE ADDED 128,352 129,348 87,379 88,504 DEPRECIATION AND AMORTIZATION (301) (437) (349) (480) NET VALUE ADDED GENERATED BY THE BANK/

CONSOLIDATED 128,051 128,911 87,030 88,024 VALUE ADDED RECEVEID IN TRANSFER 151 - (169) -Equity in subsidiaries and affiliates 151 - (169) - TOTAL VALUE ADDED FOR DISTRIBUTION 128,202 128,911 86,861 88,024 WEALTH DISTRIBUTED 128,202 128,911 86,861 88,024 EMPLOYEES 17,054 17,319 15,219 15,460 Direct compensation 10,316 10,448 9,709 9,833 Benefits 5,992 6,116 4,846 4,953 Severance pay fund (FGTS) 746 755 664 674 TAXES AND CONTRIBUTIONSS 39,537 39,970 21,895 22,794 Federal 38,985 39,384 21,467 22,325 State 243 257 92 113 Municipal 309 329 336 356 THIRD PARTIES 1,428 1,428 1,713 1,724 Rentals 1,428 1,428 1,713 1,724 SHAREHOLDERS 70,183 70,194 48,034 48,046 Interest own capital 22,956 22,956 24,265 24,265 Retained Earnings the 1st quarter of 2009/ 4th quarter of 2008 47,227 47,227 23,769 23,769 Minority interest - 11 - 12


05.01 - QUARTERLY PERFORMANCE COMMENT OF THE COMPANY

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Shareholders, Banco Daycoval’s Performance Comment and Financial Statements, referring the quarter ended as of March 31, 2009, follow the devices established by the Brazilian Central Bank (BACEN) and by the Brazilian Securities Commission (CVM). Banco Daycoval’s performance, includes the result of its foreign branch, controlled companies, directly and indirectly, and the specific purpose entity, represented by Daycoval FIDC. Therefore, the Performance Comment is presented consolidated on Picture 08.01 - Consolidated Performance Comment.

FEDERAL PUBLIC SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) INTERIM FINANCIAL STATEMENTS (ITR) 3/31/2009 Corporate Law FINANCIAL INSTITUTION 02079-6 BANCO DAYCOVAL S/A 62.232.889/0001-90 12.01 - CONSOLIDATED QUARTERLY PERFORMANCE COMMENT

08 Results

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Message from Management

As noted in the 4Q08 Earnings Release, with the onset of the global financial crisis Banco Daycoval adopted a strategy comprising an array of actions designed to minimize the possible negative impacts of the crisis and continue adding value to the shareholders. These included a reduction in exposure to the largest clients and longest terms, a focus on middle market lending with the highest returns and lowest risk possible, and a reduction in retail origination. The outcome was another contraction in the credit portfolio in 1Q09.

A pioneering funding transaction completed in February 2009 improved liquidity still further by raising more than R$400 million, with the participation of the controlling shareholders and globally renowned institutional investors Cartesian Capital Group, Wolfensohn Capital Partners and IFC (International Finance Corporation).

We achieved the highest cash position ever in the history of Daycoval and kept leverage low, as evidenced by the fact that the Central Bank of Brazil ranked Daycoval 13th among Brazilian private-sector banks by equity and 25th by total assets less net interest income in December 2008. Another important action was an adjustment of organizational structure that enabled the Bank to enhance efficiency during 1Q09.

Supported by the important measures the Central Bank of Brazil is taking to safeguard the solidity of the National Financial System, and above all by the several achievements mentioned above, we have strengthened our structure to continue to seek the best opportunities in the credit market and remain capable of tackling the challenges that lie ahead in the rest of 2009.

Macroeconomic Overview

The problems faced by the global financial system continue to cause a cyclical deterioration in credit quality centering on the United States and Europe, and result in the prevailing view that the world economy will contract in 2009, possibly embarking on a recovery in 2010.

In a globalized world with evident transmission mechanisms between economies and tightly correlated markets, the crisis has had a significant impact on Brazil, with repercussions for economic activity, unemployment, and business confidence in the manufacturing sector. The International Monetary Fund (IMF) currently projects a global economic contraction of between 0.5% and 1.0% in 2009, with Brazil’s GDP falling 1.3% in the year.

After 12 consecutive quarters of growth, Brazil’s GDP fell 3.6% in the fourth quarter of 2008 compared with the third. GDP growth in the four quarters of 2008 was 5.1%. Local currency depreciation was significant between August 2008 and March 2009, with the US dollar gaining about 40% in value against the Brazilian real. The BRL/USD offered rate (PTAX) fell 0.93% in 1Q09, averaging 2.31 in the period compared with 1.74 in the first quarter of 2008.

The last several meetings of Monetary Policy Committee (Copom) held in recent months steadily reduced the Central Bank’s target for the benchmark Selic overnight rate, which had fallen to 10.25% per annum by end-April. This policy of monetary easing, in conjunction with government measures to stimulate consumer credit and production, should promote a return to a more intense monetary flow beginning in the second quarter of 2009. However, it is of the utmost importance to bear in mind that a full recovery of the credit market also requires structural changes encompassing the rights and obligations of banks with regard to borrowers.


08 Results

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Management therefore continues to take the view that the salient feature of 2009 will be caution and conservatism in the credit market, although the outlook promises a more significant improvement in the second half.

Credit Market & Growth of Credit in Proportion to GDP

An analysis of credit operations in the National Financial System (NFS) in 1Q09 shows that after remaining flat in February lending growth resumed in March, with both earmarked and non-earmarked credit evolving positively.

The volume of credit in the financial system totaled R$1,241.0 billion in March 2009, for growth of 25.0% in the last 12 months. Considering non-earmarked credit only, corporate loans accounted for 53.3% in March and loans to individuals for 46.7%.

Reflecting this expansion, the ratio between the total volume of credit and GDP reached 42.5% in March 2009, the highest ever, up from 41.3% in December and 35.5% in March 2008.

Loan delinquency based on a benchmark portfolio for the NFS remained stable, with 5.5% of installments over 90 days past due in 1Q09, for a rise of 0.4 pp in the quarter and 0.9 pp year over year. Corporate loan delinquency reached 2.6% in March 2009, rising 0.8 pp in the quarter, while past-due loans to individuals rose 0.2 pp to 8.3%.

These figures confirm expectations of moderate growth in the volume of credit in the current year, with credit quality set to continue deteriorating for some more months.

Profitability

Net income was R$48.0 million in 1Q09, for growth of 30.8% compared with net income adjusted for non-recurring effects in the previous quarter. In contrast with 4Q08, the main factors influencing net income in 1Q09 were not significant in value and were mostly recurring, so that no adjustment was made to this variable in the period. The following factors are worth highlighting: R$400,000 gross profit from exposure to foreign currency, R$1.0 million gross extraordinary expenses arising from the Investment Agreement; R$2.7 million provision for profit sharing; and R$5.4 million in net tax credits (see page 19 for details).

Reflecting the rise in loan rates beginning in the previous quarter and continuing in 1Q09, annualized net interest margin (NIM) adjusted for loan loss provision and exchange-rate variation was 12.6%, an increase of 1.2 pp compared with 4Q08.

‐5.0%

5.0%

15.0%

25.0%

35.0%

45.0%

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

Brazilian Credit Volume

Volume (R$ Billion) % do GDP


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70.2

20.4

48.0

16.3

1Q08 4Q08 1Q09

Net Income (R$ MM)

36.7

Non‐recurring

12.0 11.412.6

1Q08 4Q08 1Q09

Net Interest Margin(NIM) (% p.a.)

19.4

5.1

12.3

4.3

1Q08 4Q08 1Q09

Recurring Return on Average Equity (ROAE) (% p.a.)

Non‐recurring

9.4

Net Interest Margin (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %Income from Financial Intermediation 115.9 108.5 6.8% 154.1 -24.8%

Gross Income from Financial Intermediation 103.4 108.7 -4.9% 149.2 -30.7%

Exchange Rate Variation (1) 12.5 (0.2) n.a. 4.9 -0.4%

(+) Loan Loss Privision 75.3 67.7 11.2% 29.5 155.3%

Income from Financial Intermediation adjusted by Loan Loss Provision and Exchange Rate Variation (A) 191.2 176.2 8.5% 183.6 4.1%

Average Remunerated Assets (B) 6,353.9 6,456.5 -1.6% 6,379.4 -0.4%

Interbank Investments 1,911.3 1,429.4 33.7% 2,033.0 -6.0%

Securities and Derivatives 889.1 955.3 -6.9% 731.4 21.6%

Lending Operation (does not include assignments) 3,466.1 3,929.6 -11.8% 3,434.7 0.9%

Trade Finance 87.4 142.2 -38.5% 180.3 -51.5%

Net Interest Margin (% p.a.) (A/B) 12.6% 11.4% 1.2 p.p 12.0% 0.6 p.p (1) Reclassified from Other Operating Revenues/Expenditures (impact of exchange-rate variation on liabilities and trade finance).

• Asset Breakdown

Daycoval’s asset balance remained stable in 1Q09 compared with the previous quarter, since the pace of loan origination was practically unchanged. However, loans fell to 44.2% of total assets, from 49.8% in 4Q08. As a result, the Bank maintained its strategy of prioritizing the most liquid assets, thus minimizing the impact of the crisis since its onset.

33.2%

13.0%

44.2%

9.5%

Assets Breakdown (R$ MM)

Interbank Investments

Securities and Derivatives

Lending Operation

Other Assets


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Assets Breakdown (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %Total Assets 6,727.9 6,831.0 -1.5% 7,199.3 -6.5%

Interbank Investments 2,234.0 1,801.4 24.0% 2,113.5 5.7%

Securities and Derivatives 877.9 966.6 -9.2% 746.9 17.5%

Lending Operation 2,974.9 3,399.3 -12.5% 3,596.8 -17.3%

Other Assets 641.1 663.7 -3.4% 742.1 -13.6%

ROAE e ROAA (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %Net income (A) 48.0 20.4 135.5% 70.2 -31.6%

Recurring Net Income (A1)(1) 48.0 36.7 30.8% 70.2 -31.6%

Average Shareholders' Equity (B) 1,626.3 1,621.4 0.3% 1,548.3 5.0%

Average Assets (C) 6,601.5 6,851.4 -3.6% 6,844.2 -3.5%

Return on Average Equity (ROAE) (% p.a.) (A/B) 12.3% 5.1% 7.2 p.p 19.4% -7.1 p.p

Recurring Return on Average Equity (ROAE) (% p.a.) (A1/B)(1) 12.3% 9.4% 3.0 p.p 19.4% -7.1 p.p

Return on Average Asset (ROAA) (% p.a.) (A/C) 2.9% 1.2% 1.7 p.p 4.2% -1.2 p.pRecurring Return on Average Asset (ROAA) (% p.a.) (A1/C)(1) 2.9% 2.2% 0.8 p.p 4.2% -1.2 p.p

(1) In 4Q08 adjusted as explained in the Earnings Release for the period in question.

As a result of the increase in net income, return on average equity (ROAE) was 12.3% in 1Q09. By the same token return on average assets (ROAA) also rose, reaching 2.9% in 1Q09.

Investment Agreement

Banco Daycoval signed an Investment Agreement (“Agreement” or “Transaction”) with institutional investors to raise some R$410 million during 1Q09. The following institutions are parties to the Agreement: Cartesian Capital Group, Wolfensohn Capital Partners, International Finance Corporation (IFC), and the controlling shareholders. Minority shareholders were offered the same terms and conditions as other participants.

The main goals of the Transaction for the Bank are as follows: (i) increasing liquidity and bolstering capital structure in response to the current economic situation; (ii) strengthening the funding base to support expansion of the credit portfolio in the middle market segment; (iii) diversifying funding sources and lengthening the average term structure; and (iv) enhancing the instruments of corporate governance.

The structure of the Transaction is groundbreaking in that it consists of a private offering of bonds convertible into shares of common and preferred stock. Only the option enabling bondholders to convert bonds into stock at a future date was exercised. Under this option the investors acquired certificates of deposit issued by Banco Daycoval with the following characteristics:

(a) income will average 99% of the Brazilian overnight interbank rate calculated and published by CETIP (DI-CETIP Over), resulting from 110% of the said rate in the period between the date of effective investment and March 31, 2013, and 55% in the period between March 31, 2013, and March 31, 2014;

(b) full or partial early redemption allowed only for conversion to shares once exercise is allowed, i.e. from March 31, 2011, at a fixed price of R$7.75 per share.

More information on the Transaction can be obtained from the Investor Relations section of our website (www.daycoval.com.br).


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Liquidity • Liquid Assets & Cash

Breakdown of the Net Assets (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %

Cash and Cash Equivalents 27.2 45.8 -40.6% 49.9 -45.5%

Liquidity Interbank Investments 1,646.6 951.2 73.1% 754.6 118.2%

Money Market Investment (net) 1,602.5 934.5 71.5% 683.2 134.6%

Interbank Investments 40.0 10.1 296.0% 54.1 -26.1%

Foreign Currency Investments 4.1 6.6 -37.9% 17.3 -76.3%

Securities and Derivatives (Own Portfolio - Available for Sale) 100.7 243.3 -58.6% 123.5 -18.5%

Net Interbank Accounts 20.3 12.4 63.7% 73.2 -72.3%

Total Net Assets 1,794.8 1,252.7 43.3% 1,001.2 79.3% Daycoval’s liquidity position was strengthened by the Investment Agreement, with liquid assets reaching R$1,794.8 million at end-March 2009, for an increase of 43.3% in 1Q09 compared with the previous quarter.

1,197.3

921.91,043.6 1,138.3 1,141.3

1,329.3

1,674.1

Sep‐08 Oct‐08 Nov‐08 Dec‐08 Jan‐09 Feb‐09 Mar‐09

Cash Evolution (R$ million)

67.7%

31.1%

1.2%

Cash Breakdown (March/09)

Federal Government BondsOvernight Repos (Selic)Other Cash Equivalents

Having ended 2008 with a significant cash position and maintained stability throughout 1Q09, Daycoval achieved strong growth in liquid assets thanks to the Investment Agreement. The position was R$1,674.1 million at end-March 2009 (balance of before market opening on 03/31/2009), with federal government securities available for sale accounting for 67.7% of the total and overnight repos with top-tier local banks for 31.1%.


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Daycoval also tracks liquidity in terms of the ratio between the cash position and total deposits, an important indicator at a time of acute volatility in financial markets. This ratio was 87.1% in 1Q09, displaying a significant improvement compared with previous periods. Management plans to prevent this exposure from falling below 30% in general and to keep it above 50% at times of crisis such as the present.

Operating Performance

• Funding

Funding (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %

Total Deposits 1,922.1 1,757.0 9.4% 2,437.9 -21.2%

Demand Deposits + Other Deposits 65.1 114.0 -42.9% 125.5 -48.1%

Time Deposits 1,455.3 1,179.4 23.4% 2,049.8 -29.0%

Interbank Deposits 401.7 463.6 -13.4% 262.6 53.0%

Foreign Issuances 774.0 785.5 -1.5% 216.6 257.3%

Borrowing and Onlending 680.5 730.4 -6.8% 511.1 33.1%

Total 3,376.6 3,272.9 3.2% 3,165.6 6.7% The impact of the global crisis began to weaken after the end of 2008. Since then Daycoval has experienced a gradual recovery in the local funding market and is now able to obtain funding at pre-crisis costs, in line with its risk level.

Another important factor was the effect of the funding transaction performed under the Investment Agreement. Besides contributing an inflow of R$410 million in deposits, this differentiated Daycoval in the Brazilian financial market, enabling the Bank to tighten cost control and improve the average funding term while also enhancing its visibility as an investment alternative offering investors even greater security.

As a result of these factors, total funding amounted at end-March 2009 to R$3,376.6 million, for growth of 3.2% compared with the previous quarter. The total credit portfolio (including assignments) contracted 10.9% in the same period. These percentages confirm adequate asset/liability matching.

34.0%30.2%

44.1%

64.8%

87.1%

1Q08 2Q08 3Q08 4Q08 1Q09

Cash / Total Deposits (%)


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3,165.6

3,858.3 3,975.0

3,272.9 3,376.6

1Q08 2Q08 3Q08 4Q08 1Q09

Funding (R$ million)

56.9%

22.9%

20.2%

Funding Breakdown ‐ 1Q09

Total Deposits

Foreign Issuances

Borrowing and Onlending

Deposits of all types accounted for 56.9% of total funding at the end of 1Q09, up from 53.7% in the previous quarter. Foreign issues and borrowing and onlending obligations fell as a share of total funding, accounting for 22.9% and 20.2% respectively.

Total Deposits Breakdown (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %Legal Entities + Demand Deposits 689.6 402.8 71.2% 553.7 24.5%

Individuals 447.2 358.1 24.9% 254.4 75.8%

Investment Funds 222.1 372.4 -40.4% 1,081.8 -79.5%

Institutional 144.6 151.8 -4.7% 246.6 -41.4%

Financial Institutions + Interbank Deposits 418.6 471.9 -11.3% 301.4 38.9%

Total 1,922.1 1,757.0 9.4% 2,437.9 -21.2%

Total deposits amounted to R$1,922.1 million in 1Q09, for growth of 9.4% compared with the previous quarter due to the Investment Agreement. It is important to note that the funds raised by this Transaction were booked under legal entities + demand deposits (international investors) and also under individuals (controlling shareholders).

Investment funds, which continued to display a need to adjust to the new market reality, were adversely affected by customer withdrawals and losses in net asset value, and accounted for the largest proportion (40.4%) of the decrease in deposits in 1Q09.

However, it should be stressed that the deposit turnover rate has recovered in recent months from the sharp fall seen early in 4Q08 and that in light of its present high cash position Daycoval is operating conservatively with regard to the interest rates offered. Management believes the volume of new deposits and renewals would be even larger if the Bank decided to raise the rates offered. In addition, it should be mentioned that Daycoval has not so far accepted any Time Deposits with Special Guarantees from the Credit Guarantee Fund (DPGE-FGC), although the Bank considers the introduction of this instrument positive for the financial system.


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• Asset & Liability Management Adequate asset/liability management to minimize exposure to rate and tenor mismatches is a key element of Daycoval’s overall strategy. Reinforced under the conditions of the ongoing crisis, the success of this strategy is evidenced in the charts below, which show a positive gap between assets and liabilities, given that loans due in the next 12 months accounted in 1Q09 for 67.8% of the total portfolio, compared with 50.3% of funding.

One of the principal aims achieved by the Investment Agreement was to lengthen the duration of Daycoval’s funding. Thus considering funding transactions without liquidity and a five-year term for the CDs issued under the Transaction, average duration can be seen to have increased significantly, from 428 days in 4Q08 to 643 days in 1Q09 (412 days excluding the effects of the Agreement).

As a result, the ratio of total funding to loans reached 109.2% in 1Q09, up from 94.4% in the previous quarter. This position evidences compatibility between funding and lending in each segment, avoiding asset/liability mismatches and assuring liquidity in all operations.

An analysis of the average duration of time deposits shows that the impact was even more significant. This modality, which is the main source of funding for the middle market segment, reached an average duration of 828 days in 1Q09 (323 days excluding the effects of the Agreement).

36.8%

31.0%

26.3%

5.2%0.7%

Loan Portfolio ‐Outstanding Operation (March/09)

Up to 3 months From 3 to 12 monthsFrom 1 to 3 yeras From 3 to 5 yearsOver 5 years

Average Term of Loan

Portfolio: 431 days

1.9%

18.9%

29.5%34.8%

2.6%12.3%

Funding ‐Outstanding Operations (March/09)

No maturity Up to 3 monthsFrom 3 to 12 months From 1 to 3 yerasFrom 3 to 5 years Over 5 years

Average Term of Funding Portfolio: 643 days


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84.8%94.4%

109.2%

1Q08 4Q08 1Q09

Total Funding / Loan Portfolio (ex‐FIDCs and Assignments)

50

200

350

500

650

800

950

1Q08 2Q08 3Q08 4Q08 1Q09

Average Term (calendar days)

Time Deposits (without liquidity)Middle Market Loan Portfolio

• Distribution Daycoval currently has 27 branches for corporate customers, located in 16 states and the Federal District. In addition, its Cayman Islands branch is an important instrument not only for funding but also to provide commercial lines and promote relationships with correspondent banks.

In the retail segment Daycoval works with independent banking correspondents and has its own outlets branded as “Daycred Stores”, offering products and services with a specific focus on consumers.

The strategy under current economic conditions is to maintain nationwide coverage with branches to service middle market clients and close Daycred Stores that are not generating returns. In this sense, four stores were closed in 1Q09, leaving 11 in operation.

Northeast Region4 Branches

North Region2 Branches

1 Daycred Store

Center-West Region4 Branches

1 Daycred Store

Southeast Region12 Branches

8 Daycred StoresSouth Region5 Branches

1 Daycred Store

27 Branches

11 Daycred Stores


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• Credit Portfolio Loan Portfolio by Type (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %Loans + Payroll Loans Portfolio Assignments 2,351.8 2,647.5 -11.2% 2,687.9 -12.5%

Discounted Trade Notes 165.3 205.7 -19.6% 234.3 -29.4%

Financings / Trade Finance + Auto Loans Portfolio Assignments 1,031.1 1,127.6 -8.6% 957.5 7.7%

Total 3,548.2 3,980.8 -10.9% 3,879.7 -8.5%

Daycoval’s credit portfolio (including assignments) totaled R$3,548.2 million in 1Q09, for a decrease of 10.9% compared with the previous quarter. Excluding credit assignments, the portfolio totaled R$3,312.3 million at end-March 2009, for a decrease of 10.6% in the quarter.

The credit portfolio again contracted in 1Q09 even with normal funding availability, because Daycoval maintained its conservative policy and the tighter credit selectivity adopted after September 2008 solely in order to minimize the impact of a probable deterioration in credit quality.

Loan Portfolio by Segment (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %

Middle Market / Other 1,688.8 2,034.0 -17.0% 2,298.6 -26.5%

Trade Finance 170.8 196.7 -13.2% 268.4 -36.4%

Total Middle Market + Trade Finance 1,859.6 2,230.7 -16.6% 2,567.0 -27.6%

Payroll Loans 719.9 707.2 1.8% 647.5 11.2%

Payroll Loans Portfolio Assignments 133.6 151.2 -11.6% - n.a.Total Payroll Loans 853.5 858.4 -0.6% 647.5 31.8%

Auto Loans 732.8 767.6 -4.5% 665.2 10.2%

Auto Loans Portfolio Assignments 102.3 124.1 -17.6% - n.a.

Total Auto Loans 835.1 891.7 -6.3% 665.2 25.5%

Total Credit Portfolio 3,548.2 3,980.8 -10.9% 3,879.7 -8.5%

3,879.74,493.6 4,627.4

3,705.53,312.3

235.9

1Q08 2Q08 3Q08 4Q08 1Q09

Total Loan Portfolio R$ (MM)

Assignments

275,33,980.8

3,548.2


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Middle market loans plus trade finance accounted for 52.4% of the total portfolio including assignments in 1Q09 (56.0% in 4Q08), reflecting the fact that loan tenors are generally shorter in this segment. Loans to individuals (payroll and auto loans) accounted for 47.6% in 1Q09, up from 44.0% in the previous quarter.

Given the sharp decrease in origination in the retail segment beginning in 4Q08, especially with regard to auto loans, credit portfolio composition is expected to change in accordance with the strategy adopted by Management after the onset of the global crisis to increase the share of loans to small and medium business as a proportion of the total during 2009.

Middle Market /

Other47.6%

Trade Finance

4.8%Payroll 24.1%

Vehicles23.5%

March/09

Middle Market /

Other51.1%

Trade Finance

4.9%

Payroll 21.6%

Vehicles22.4%

December/08

Middle Market /

Other59.2%

Trade Finance

6.9%

Payroll 16.7%

Vehicles17.1%

March/08

Middle Market: The volume of loans to small and medium enterprises totaled R$1,859.6 million at end-March 2009, for a decrease of 16.6% in the quarter and 27.6% year over year. These operations accounted for 47.6% of the bank’s total credit portfolio at the end of 1Q09, down 3.5 pp compared with the previous quarter.

The focus in this segment was on loans with higher returns and smaller tickets in 1Q09. In addition, strenuous efforts were made to manage security for existing loans. Because most middle market loans are short-term, this portfolio contracted faster than in the retail segment. On the other hand, the existing portfolio has already been repriced for the most part.

Trade Finance: The balance of the trade finance portfolio fell 13.2% in the quarter to R$170.8 million, reflecting the increased risk of these operations due to the change of scenario. The contraction was 36.4% year over year.

BNDES: Daycoval has been an accredited onlending agent for BNDES, the National Development Bank, since June 2008 and has a significant volume of credit approved in this segment. Management takes the view that BNDES onlending is an instrument of cross-selling to the middle market segment, as well as diversifying the product offering and thereby contributing to growth of the customer base and to the building of customer relationships. The volume released by BNDES amounted at end-March 2009 to about R$15 million.


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DayCred, the brand created for Banco Daycoval’s finance house, offers loans to individuals, especially payroll loans to salaried employees in the public and private sectors, and auto loans, among other products and services.

Payroll Loans: The portfolio of payroll loans including the assigned portion totaled R$853.5 million at end-March 2009, unchanged in the quarter. As noted in the previous quarter, payroll loans focusing on public-sector employees offer promising risk-return ratios under current conditions, and the goal is therefore to maintain current portfolio volume until end-2009.

Origination raised 22.3% to R$83.3 million in 1Q09. At end-March 2009, the payroll lending portfolio comprised 228,000 contracts, for an average ticket of R$3,500.

Army16.3%

Federal Govern‐

ment19.2%

INSS34.6%

Others8.2%

Courts10.6%

Municipa‐lities9.6%

Private1.5%

Breakdown of Payroll Portfolio (includes credit assignments) ‐ March/09

In 1Q09 Daycoval continued to aim for lower operating costs by originating credit with high-quality entities, especially the National Social Security Institute (INSS). As a result of this strategy, INSS operations accounted for 59.3% of the total produced in 1Q09 (52.0 % in 4Q08) and for 34.6% of the payroll loan portfolio at end-March 2009, up from 34.1% in the previous quarter.

174.3

68.183.3

1Q08 4Q08 1Q09

Production of Payroll Loans (R$ MM)

Army10.1%

Federal Government

14.3%

INSS59.3%Others

7.3%

Courts2.9%

Municipa‐lities4.5%

Private1.6%

Breakdown of Payroll Production ‐1Q09

Auto Loans: The balance of the auto loan portfolio including the assigned portion was R$835.1 million at end-March 2009, for a decrease of 6.3% in the quarter. Light vehicles continued to account for most of the portfolio (including the assigned portion), with 66.3% of total volume. Truck loans, the second-largest portion, accounted for 19.8% in the same period.


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In a movement begun in 4Q08 as a function of the characteristics of the auto loan segment, which is more sensitive to cyclical events and the level of economic activity, Daycoval significantly reduced origination of auto loans, which remained practically unchanged in 1Q09, totaling R$20.0 million .

Small Vehicles

66.3%

Motorcycles13.9%

Heavy‐duty Vehicles

19.8%

Breakdown of Auto Loans Portfolio (includes credit assignments) ‐ March/09

256.9

19.9 20.0

1Q08 4Q08 1Q09

Production of Auto Loans (R$ MM)

Considering the total balance of payments receivable (PMTs) from the start of operations until December 2008, i.e. only installments more than 90 days past due, the liquidity of the auto loan portfolio remained stable on 93.9% in 1Q09.

Liquidity of the Auto Loans Portfolio - Aug-06 to Dec-08 R$ (MM) % Accum.

PMTs received in advance 119.0 35.4% 35.4%

PMTs received on date of maturity 49.2 14.6% 50.0%

PMTs received with delay of 30 days 111.7 33.2% 83.3%




PMTs received over 120 days 3.1 0.9% 93.9%

PMT´s overdue 20.5 6.1% 100.0%

Liquidity of the Auto Loans Portfolio 315.6 93.9%

Outstanding PMT´s Total Amount 336.0 100.0%


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• Credit Portfolio Quality For a better understanding of Daycoval’s credit quality, the following charts show loan risk ratings and characteristics according to Central Bank rules, as well as the respective shares of the total portfolio and loan loss provisions in 1Q09. The items relating to assigned loans (FIDCs: R$56.1 million for middle market and R$165.3 million for auto) assume provisioning in accordance with the characteristics of the assigned portfolios.

Required

Provision Loans % ProvisionAA 0.0% 0.1 0.0% 0.0

A 0.5% 942.2 28.3% 4.7

B 1.0% 1,720.1 51.7% 17.2C 3.0% 93.8 2.8% 2.8

D 10.0% 74.0 2.2% 7.4

E 30.0% 53.4 1.6% 16.0

F 50.0% 52.4 1.6% 26.2

G 70.0% 36.2 1.1% 25.4

H 100.0% 118.7 3.6% 118.7

Subtotal 3,090.9 92.9% 218.4235.9 7.1% 1.7

Total 3,326.8 100.0% 220.1

Credit Assignments

Banco Daycoval - R$ MMRating

1Q09 Loans % Provision 1Q09 Loans % Provision 1Q09 Loans % ProvisionAA - C 1,607.8 89.1% 15.5 AA - C 693.5 81.3% 3.6 AA - C 454.8 67.9% 5.6

D 39.4 2.2% 3.9 D 4.6 0.5% 0.5 D 30.1 4.5% 3.0

E 29.1 1.6% 8.7 E 2.6 0.3% 0.8 E 21.7 3.2% 6.5

F 35.0 1.9% 17.5 F 2.0 0.2% 1.0 F 15.4 2.3% 7.7

G 21.2 1.2% 14.8 G 2.3 0.3% 1.6 G 12.7 1.9% 9.0

H 71.0 3.9% 71.0 H 14.9 1.7% 14.9 H 32.8 4.9% 32.8

- - - - Subtotal 719.9 84.3% 22.4 Subtotal 567.5 84.7% 64.6- - - - Credit Assignment 133.6 15.7% 0.7 Credit Assignment 102.3 15.3% 1.0

Total 1,803.5 100.0% 131.4 Total 853.5 100.0% 23.1 Total 669.8 100.0% 65.6

Middle Market/Trade Finance/Other (R$ MM) Payroll Loans (R$ MM) Auto Loans (R$ MM)


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• Loan Loss Provisions (LLP) (1) It is important to note that the reduction in the credit portfolio in 4Q08 and 1Q09 may distort analysis of the ratio of loan loss provisions to the total portfolio. For a better understanding of the change in LLP, we therefore recommend analysis of the nominal amounts in the charts below, which track provisioning in the periods concerned: Loan Loss Provision (LLP) (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %Balance at the Begining of the Period 183.3 148.7 23.3% 74.5 146.0%

Establishment of Provision 75.2 67.7 11.1% 29.5 154.9%

Middle Market + Trade Finance + Other 39.0 44.6 -12.6% 12.5 212.0%

Payroll 7.0 4.6 52.2% 4.0 75.0%

Auto 29.2 18.5 57.8% 13.0 124.6%

Write-offs (40.1) (33.1) 21.1% (8.8) n.a.

Middle Market + Trade Finance + Other (20.6) (21.3) -3.3% (6.1) 237.7%

Retail (19.5) (11.8) 65.3% (2.7) n.a.

Final Balance (R$ MM) 218.4 183.3 19.1% 95.2 129.4%

Overdue Loans (2) 147.7 127.0 16.3% 48.4 205.2%

LLP Balance / Overdue Loans (%) 147.9% 144.3% 3.5 p.p 196.7% -48.8 p.p

Write-offs / Total Loan Portfolio (%) 1.3% 1.0% 0.3 p.p 0.2% 1.1 p.p

Recovered Loans 1.4 2.9 -51.7% 1.1 27.3%

(1) Banco Daycoval S.A. - non-consolidated. (2) Refers to loans more than 60 days past due. Loan loss provisioning (LLP) amounted in 1Q09 to R$75.2 million, up 11.1% from R$67.7 million in 4Q08. The amount by which LLP increased in 1Q09 was due mainly to retail operations, which expanded significantly in 2007 and 2008, as well as the change in market conditions.

The positive highlight in the period was provisioning for the middle market segment, which fell 12.6% compared with 4Q08 owing to contraction of the portfolio and success in specific negotiations with clients whose loan repayments were in arrears. It is also worth recalling that the increase in LLP in previous quarters was due to an aggressive policy relating to existing clients on replacement of guarantees, higher rates and non-renewal of past-due loans. This policy is still in place.

LLP for the payroll loan portfolio increased compared with 4Q08, returning to a level similar to that seen in 3Q08, which was R$7.4 million. LLP for the auto loan portfolio continued to trend up, indicating an expected deterioration in quality, which was accelerated by a fall in the value of loan security (vehicles) and a sharp reduction in the level of economic activity in Brazil.

The volume of loans past due rose 16.3% compared with 4Q08. The ratio of LLP to total loans past due was practically unchanged on 147.9% at end-March 2009.


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Capital Structure • Shareholders’ Equity Shareholders’ equity totaled R$1,634.1 million at end-March 2009, for no change in the quarter and growth of 4.6% year over year. It should be stressed that shareholders’ equity is affected by the payment of interest on equity and by the share buyback program.

• Basel Index Central Bank of Brazil Communiqués 12.746 (2004) and 16.137 (2007) establish guidelines, procedures and the implementation timetable for the Revised International Capital Framework known as Basel II, stipulating criteria for the allocation of regulatory capital based on the risks incurred by financial institutions. On August 29, 2007, the Central Bank issued Resolution 3490 establishing new criteria for computing the Tier 1 capital requirement (mainly stockholders’ equity). These new rules came into force on July 1, 2008.

Daycoval’s Tier 1 capital as at March 31, 2009, exceeded the minimum requirement under the new Central Bank rules by 173.9%. The Basel II ratio calculated by the standard method was 30.1% (28.2% in 3Q08), thus maintaining capital adequacy relative to risk-weighted assets.

• Loan Portfolio/Shareholders’ Equity Daycoval ended 1Q09 with leverage of 1.9 times, measured by the ratio of loans to equity, compared with 2.2 in 4Q08 and 2.5 in 1Q08. The low leverage displayed by this indicator evidences Daycoval’s privileged position from which to take advantage of the best opportunities in the Brazilian credit market.

2.5 2.2

1.9

1Q08 4Q08 1Q09

Loan Portfolio / Shareholders' Equity (times)


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Financial Performance • Income from Financial Intermediation

Income from Financial Intermediation (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %

Loans Operations 206.0 311.2 -33.8% 220.9 -6.7%

Middle Marlket + Trade Finance + Other 115.5 152.8 -24.4% 130.8 -11.7%

Payroll 46.0 58.3 -21.1% 46.6 -1.3%

Auto 45.2 62.8 -28.0% 43.4 4.1%

Foreign Exchange Variation (Middle Market) (0.7) 26.1 n.a. 0.1 n.a.

Foreign Exchange Variation (Trade Finance) - 11.2 n.a. - n.a.

Securities Operations 70.2 63.3 10.9% 71.8 -2.2%

Derivatives(1) 17.2 152.2 -88.7% 1.0 n.a.

Foreign Exchange Operations 5.5 42.9 -87.2% 5.9 -6.8%

Compulsory Investments - - n.a. 1.9 n.a.

Total 298.9 569.6 -47.5% 301.5 -0.9% (1) In 1Q09, 4Q08 and 1Q08 includes R$12.1 million (positive), R$146.8 million (positive) and R$2.5 million (negative) respectively with regard to hedging.

Income from financial intermediation totaled R$298.9 million in 1Q09, for a decrease of 47.5% in the quarter. The decrease related mainly to the positive impacts seen in 4Q08, such as the impact of local currency depreciation against the US dollar on foreign borrowings and gains on derivatives trading.

Income from lending totaled R$206.0 million, down 33.8% in the quarter. This result basically reflected contraction of the credit portfolio, as well as the loan assignments effected in the previous quarter, as already mentioned.

Income from trading securities totaled R$70.2 million in 1Q09, for growth of 10.9% in the quarter due to rising income from interbank deposits following implementation of the Investment Agreement. Income from derivatives (swaps and futures) totaled R$17.2 million in 1Q09. The result for this quarter includes hedging in the amount of R$12.1 million.


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• Expenses from Financial Intermediation

Expenses on Financial Intermediation (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %

Funding Operations (1) (95.1) (281.8) -66.3% (107.8) -11.8%

Borrowings and Onlendings Operations (2) (25.3) (111.4) -77.3% (15.0) 68.7%

Loan Loss Provision (LLP) (75.3) (67.7) 11.2% (29.5) 155.3%

Total (195.7) (460.9) -57.5% (152.3) 28.5%

Adjustment on Funding Operations(3) 8.1 - n.a. 2.7 200.0%

Adjustment on Borrowings and Onlending Operations(3) 2.8 - n.a. 1.4 100.0%

Adjustment on Foreign Exchange Operations(3) 1.6 (0.2) n.a. 0.9 77.8%

Adjusted Total (183.2) (461.1) -60.3% (147.3) 24.4%

(1) In 4Q08 includes negative impact of exchange-rate variation amounting to R$146.8 million. (2) In 4Q08 includes negative impact of exchange-rate variation amounting to R$107.5 million. (3) Reclassified from Other Operating Revenues/Expenditures (impact of exchange-rate variation on liabilities and trade finance).

Expenses on financial intermediation adjusted in accordance with the above chart totaled R$183.2 million in 1Q09, compared with R$461.1 million in 4Q08. As in the case of income from financial intermediation, the main reasons for the decrease were events in 4Q08, especially the impact of local currency depreciation amounting to R$254.3 million on foreign-currency funding and borrowings raised by the Bank.

• Expenses

Personnel and Administrative Expenses (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %

Personnel Expenses -15.2 -18.9 -19.6% -16.2 -6.2%

Administrative Expenses -15.4 -18.7 -17.6% -15.2 1.3%

Subtotal -30.6 -37.6 -18.6% -31.4 -2.5%

Commission Expenses (total)(1) -12.2 -17.8 -31.5% -20.6 -40.8%

Payroll (2) (6.6) (10.0) -34.0% (12.1) -45.5%

Auto Loans (5.6) (7.8) -28.2% (8.5) -34.1%

Total -42.8 -55.4 -22.7% -52.0 -17.7% (1) In 1Q08 excludes non-recurring effects of adjustment to appropriation of commissions in the amount of R$2.8 million. (2) In 4Q08 excludes R$10.8 million relating to advance payment of commissions under operating agreements with promoters.

Personnel and other administrative expenses fell 18.6% in the quarter to R$30.6 million, thanks to intensification of efforts to reduce expenses after the onset of the financial crisis. As shown in the above chart, total expenses reached R$42.8 million in 1Q09, falling 22.7% compared with the previous quarter. The following changes occurred in line items under this heading during 1Q09:


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Personnel expenses Personnel expenses totaled R$15.4 million in 1Q09, for a decrease of 19.6% compared with the previous quarter due to organizational restructuring mainly during 4Q08. The number of employees was 544 at end-March 2009 (561 in 4Q08). The sales force (front office) comprised 139 people (153 in 4Q08). The Bank will increase front-office staff from 2Q09 in order to participate actively in the more pronounced recovery in the Brazilian credit market. Other administrative expenses Other administrative expenses amounted in 1Q09 to R$15.4 million, down 17.6% from R$18.7 million in 4Q08, thanks to efforts to terminate or renegotiate contracts with suppliers and to new internal measures to promote more cost-effective use of machinery and equipment. Commission expenses Commission expenses amounted in 1Q09 to R$12.2 million, for a decrease of 31.5% in the quarter. Commissions on payroll loans were most affected, since during 4Q08 Daycoval advanced R$10.8 million in payments under operating agreements with promoters. Commissions on auto loans fell from R$7.8 million in 4Q08 to R$5.6 million in 1Q09 owing to the decreased volume of origination in the segment and control of these expenses relating to promoters.

• Other Operating Revenues/Expenditures Other operating revenues amounted to R$17.2 million in 1Q09, with R$13.2 million of this total relating to positive exchange-rate variation accumulated in the quarter. Other operating expenditures amounted to R$10.3 million, of which R$0.7 million was related to exchange-rate variation in the period. Thus the net result of other revenues (expenditures) in 1Q09 excluding the effects of exchange-rate variation was minus R$4.7 million, due mainly to expenditures incurred with the updating of judicially disputed tax contingencies.

• Income from Operation Operating profit reached R$64.3 million, thanks to the strategy pursued by Daycoval to prioritize operations with higher returns and maintain tight control of expenses.


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• Income Tax & Social Contribution Daycoval recognized R$5.4 million under deferred tax assets in 1Q09, relating to judicial contestation of the deductibility of the Social Contribution on Net Income (CSLL) from the basis for calculating Corporate Income Tax (IRPJ) in financial year 2008. This effect occurs in the first quarter of each financial year subsequent to the contested base year.

• Profit Sharing Programs (PPR & PLR) Provisioning for the PPR and PLR profit sharing programs totaled R$2.7 million in 1Q09. It should be noted that provisioning for these programs amounted to R$10.0 million in 4Q08 and R$3.8 million in 1Q08.

• Efficiency Ratio

Efficiency Ratio (R$ MM) 1Q09 4Q08 Chg. % 1Q08 Chg. %(+) Personnel + Administrative Expenses + Commisions (1) (42.8) (66.2) -35.3% (52.0) -17.7%

(+) Depreciation and Amortization 0.4 0.7 -42.9% 0.4 0.0%

Total expenses (A) (42.4) (65.5) -35.3% (51.6) -17.8%

(+) Income from Financial Intermediation + LLP 178.7 176.2 1.4% 178.7 0.0%

(+) Income from Services Provided + Fees 4.2 4.3 -2.3% 4.3 -2.3%

(+) Exchange Rate Variation 12.5 - n.a. 5.0 150.0%

Total (B) 195.4 180.5 8.3% 188.0 3.9%

Efficiency Ratio (A/B) (%) 21.7% 36.3% -14.6 p.p 27.4% -5.7 p.p

(1) Includes effects of adjustment to appropriation of commissions in 1Q08.

The efficiency ratio was 21.7% in 1Q09, compared with 36.3% in 4Q08. The decrease reflected lower personnel and administrative expenses, as well as a reduction in commission expense, as noted above. The efficiency ratio considering provisions for expenses with profit sharing programs (PPR and PLR) would be 23.1% in 1Q09. In the last 12 months the efficiency ratio excluding expenses with the PPR and PLR profit sharing programs was 31.8% in March 2009, compared with 33.0% in December 2008.


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Ratings It is important to note that the rating agencies maintained the ratings awarded to Daycoval in 1Q09 despite all the turbulence seen in recent months.

All ratings shown in the chart below evidence the low level of risk and the solidity achieved by Banco Daycoval in its operations. The agencies’ complete reports can be found in the Investor Relations section of our website.

Global ScaleLong Term BB‐Short Term B

National ScaleLong Term brA

Short Term brA‐2

Stable

November 2008

Global ScaleLong Term BB‐Short Term B

National ScaleLong Term A (bra)

Short Term F1 (bra)

Stable

April 2009

National ScaleLong Term AA‐Short Term A‐1

Stable

April 2008

Low Risk – mid‐termIndex 10.25

No Alert Gaps

April 2009

The reports issued by rating agencies are taken very seriously by the financial market but should not be construed as an investment recommendation.

Capital Markets

• Stock Performance Banco Daycoval (DAYC4) has been listed on Level 1 of the São Paulo Stock Exchange (BM&FBovespa) since June 2007. The stock has been part of the Special Corporate Governance Stock Index (IGC) and Special Tag-Along Stock Index (ITAG) since it began trading.

Daycoval’s registered share capital comprises 219.3 million shares, of which 142.4 million are common shares (ON) and 76.9 million are preferred shares (PN). The free float is 26.7%, equivalent to 59.5 million preferred shares.

The number of trades between January and March 2009 totaled 1,800, comprising 10.0 million shares. Average daily trading volume was R$786,000. On March 31, 2009, the stock price was R$4.73, giving Daycoval a market capitalization of R$1.0 billion.

DAYC4 traded in all sessions in 1Q09, losing 14.0% in the period compared with gains of 1.7%, 4.9% and 7.1% for the Ibovespa Index, IGC and ITAG respectively. DAYC4 is currently covered by 12 different local and international research analysts.

Preferred Shares (million) 59,522,061

Share Price (DAYC4) (R$/share) 4.73

Avg. Daily Traded Vol. 1Q09 (R$ million) 0.79

Market Capitalization (R$ billion) 1.05

March 31. 2009


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• Shareholder Remuneration A meeting of the Board of Directors held on March 30, 2009, ratified a proposal approved by the Executive Committee to pay interest on equity for the period between January 1 and March 30, 2009, in the amount of R$24,265,286.83 (twenty-four million, two hundred sixty-five thousand, two hundred eighty-six reais and eighty-three cents). Payment was disbursed on April 15, 2009. The bank’s shares traded ex-right to interest on equity as of March 31, 2009 inclusive.

• Share Buyback Program In April 2008 Daycoval put in place a share buyback program to take advantage of a significant opportunity to create value in light of its stock price in recent months. As initially approved the program was to repurchase up to 6,426,316 (six million, four hundred twenty-six thousand, three hundred sixteen) preferred shares, corresponding to 10% (ten per cent) of free float. The program was renewed on April 3, 2009, with an approved limit of 3,078,917 (three million, seventy-eight thousand, nine hundred seventeen) preferred shares, to be repurchased by October 6, 2009.

Between initial approval of the program and March 31, 2009, the Bank had repurchased 3,306,200 preferred shares at an average price of R$6.08 per share. Repurchasing was interrupted between April 23, 2009, and May 5, 2009 during a non-trading window imposed in accordance with best practice in corporate governance.

• Market Maker On January 6, 2009, Daycoval terminated its agreement with Credit Suisse (Brasil) S.A. Corretora de Títulos e Valores Mobiliários to act as market maker for Daycoval preferred shares.

• Level I ADR Program Daycoval was the first middle market institution in Brazil to implement a Level I ADR program trading in the over-the-counter (OTC) market, with the aim of building even closer ties with investors in the United States and other parts of the world. Each ADR issued and traded in the OTC market represents two (2) preferred shares in the stock of Banco Daycoval.

FEDERAL PUBLIC SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) INTERIM FINANCIAL STATEMENTS (ITR) 3/31/2009 Corporate Law FINANCIAL INSTITUTION


20.01 - OTHER INFORMATION CONSIDERED RELEVANT BY THE COMPANY

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Information on shareholding structure of Banco Daycoval S.A.: Fully subscribed and paid-up capital is represented by registered shares without par value. a) Shareholding position of holders of more than 5% of each category and class of shares of

Banco Daycoval S.A. as of March 31, 2009:

Common shares Preferred shares Total Shareholder Quantity % Quantity % Quantity % Daycoval Holding Financeira S.A. 142,418,177 100.00 - - 142,418,177 63.97 Salim Dayan - - 5,317,390 6.63 5,317,390 2.39 Carlos Moche Dayan - - 5,317,390 6.63 5,317,390 2.39 Morris Dayan - - 5,317,387 6.63 5,317,387 2.39 New World Fund. Inc. Cap. Research (*) - - 6,557,000 8.17 6,557,000 2.95 HSBC Global Investments Funds (*) - - 8,837,900 11.02 8,837,900 3.97 Tarpon Invest. S.A. (*) - - 19,273,480 24.03 19,273,480 8.65Others 2 - 26,288,586 32.77 26,288,588 11.80 Treasury shares - - 3,306,200 4.12 3,306,200 1.49 Total 142,418,179 100.00 80,215,333 100.00 222,633,512 100.00 (*) Foreign company a.1) Shareholding position of holders of more than 5% of each category and class of shares

of Daycoval Holding Financeira S.A., up to the level of individual:

March 31, 2009 Common shares Preferred shares Total Shareholder Quantity % Quantity % Quantity % Sasson Dayan 42,774,750 51.00 6,780,044 11.55 49,554,794 34.75 Espólio de Ibrahim Dayan 5,032,324 6.00 4,529,121 7.71 9,561,445 6.71 Carlos Moche Dayan 6,571,375 7.83 15,370,523 26.18 21,941,898 15.39 Salim Dayan 6,571,375 7.83 15,370,523 26.18 21,941,898 15.39 Morris Dayan 22,922,234 27.34 15,039,011 25.62 37,961,245 26.62 Other shareholders - - 1,622,720 2.76 1,622,720 1.14 Total 83,872,058 100.00 58,711,942 100.00 142,584,000 100.00

March 31, 2008 Common shares Preferred shares Total Share holder Quantity % Quantity % Quantity % Sasson Dayan 42,774,750 51.00 6,780,044 11.55 49,554,794 34.75 Ibrahim Dayan 5,032,324 6.00 4,529,121 7.71 9,561,445 6.71 Carlos Moche Dayan 6,571,375 7.83 15,370,523 26.18 21,941,898 15.39 Salim Dayan 6,571,375 7.83 15,370,523 26.18 21,941,898 15.39 Morris Dayan 22,922,234 27.34 15,039,011 25.62 37,961,245 26.62 Other shareholders - - 1,622,720 2.76 1,622,720 1.14 83,872,058 100.00 58,711,942 100.00 142,584,000 100.00



20.01 - OTHER INFORMATION CONSIDERED RELEVANT BY THE COMPANY

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b) Consolidated position of controlling shareholders, management and outstanding shares:

Shareholder position as of March 31, 2009 Common shares Preferred shares Total Shareholders Quantity % Quantity % Quantity % Controlling shareholder 142,418,177 100.00 - - 142,418,177 63.97 Management

Board of Directors 1 - 100,002 0.12 100,003 0.04 Executive Board - - 15,959,807 19.90 15,959,807 7.17

Other shareholders 1 - 60,849,324 75.86 63,486,425 27.33 Treasury shares - - 3,306,200 4.12 3,306,200 1.49 142,418,179 100.00 80,215,333 100.00 222,633,512 100.00 Outstanting shares - - 59,522,061 74.20 59,522,061 26.74

Shareholder position as of March 31, 2008 Common shares Preferred shares Total Shareholders Quantity % Quantity % Quantity % Controlling shareholder 142,418,177 100.00 - - 142,418,177 63.97 Management

Board of Directors 1 - 2 - 3 - Executive Board - - 15,952,167 19.89 15,952,167 7.17

Other shareholders 1 - 64,263,164 80.11 64,263,165 28.86 142,418,179 100.00 80,215,333 100.00 222,633,512 100.00 Outstanting shares - - 64,263,164 80.11 64,263,164 28.86



21.01 - INDEPENDENT ACCOUNTANTS’ REVIEW REPORT

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Banco Daycoval S.A. Interim Financial Statements for the Three-month Period Ended March 31, 2009 and Independent Accountants’ Review Report Deloitte Touche Tohmatsu Auditores Independentes




21.01 - INDEPENDENT ACCOUNTANTS’ REVIEW REPORT

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INDEPENDENT ACCOUNTANTS’ REVIEW REPORT

To the Shareholders and the Management of Banco Daycoval S.A. São Paulo - SP

1. We have performed a review of the accompanying interim financial statements of Banco Daycoval S.A. (Bank) and its subsidiaries and special purpose entity represented by the receivables investment fund (Consolidated), consisting of the individual and consolidated balance sheets as of March 31, 2009, the related statements of income, changes in shareholder’s equity (Bank), cash flows and value added for the quarter then ended, the performance report and the related notes to the interim financial statements, all expressed in Brazilian reais and prepared under the responsibility of the Bank’s Management.

2. Our review was conducted in accordance with specific standards established by the Brazilian Institute of Independent Auditors (IBRACON), together with the Federal Accounting Council- CFC, and consisted principally of: (a) inquiries of and discussions with certain officials of the Bank and its subsidiaries who have responsibility for accounting, financial and operating matters about the criteria adopted in the preparation of the interim financial statements, and (b) review of the information and subsequent events that had or might have had material effects on the financial position and results of operations of the Bank and its subsidiaries.

3. Based on our review, we are not aware of any material modifications that should be made to the interim financial statements referred to in paragraph 1 for them to be in conformity with standards established by the Brazilian Securities Commission (CVM), applicable to the preparation of mandatory interim financial statements.

São Paulo, May 5, 2009

DELOITTE TOUCHE TOHMATSU Gilberto Bizerra de Souza Auditores Independentes Engagement Partner



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RB0952*.*

01.01 - IDENTIFICATION 1 - CVM CODE 2 - COMPANY NAME 3 - FEDERAL TAXPAYERS’

REGISTRATION NUMBER (CNPJ) 02079-6 BANCO DAYCOVAL S/A 62.232.889/0001-90

SUMMARY

GROUP CHART DESCRIPTION PAGE 01 01 IDENTIFICATION 1 01 02 HEAD OFFICE 1 01 03 INVESTOR RELATIONS OFFICER (Company Mail Address) 1 01 04 GENERAL INFORMATION/INDEPENDENT ACCOUNTANT 1 01 05 CAPITAL COMPOSITION 2 01 06 CHARACTERISTICS OF THE COMPANY 2 01 07 COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS 2 01 08 DIVIDENDS APPROVED AND/OR PAID DURING AND AFTER THE QUARTER 2 01 09 SUBSCRIBED CAPITAL AND ALTERATIONS IN THE CURRENT YEAR 3 01 10 INVESTOR RELATIONS OFFICER 3 02 01 BALANCE SHEETS - ASSETS 4 02 02 BALANCE SHEETS - LIABILITIES AND SHAREHOLDERS' EQUITY 5 03 01 STATEMENTS OF INCOME 6 04 01 STATEMENTS OF CASH FLOW 7 05 01 STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY 8 08 01 CONSOLIDATED BALANCE SHEETS - ASSETS 9 08 02 CONSOLIDATED BALANCE SHEETS - LIABILITIES AND SHAREHOLDERS' EQUITY 10 09 01 CONSOLIDATED STATEMENTS OF INCOME 11 10 01 CONSOLIDATED STATEMENTS OF CASH FLOW 12 11 01 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY 13 06 01 NOTES TO THE INTERIM FINANCIAL STATEMENTS 14 07 01 QUARTERLY PERFORMANCE COMMENT OF THE COMPANY 70 12 01 CONSOLIDATED QUARTERLY PERFORMANCE COMMENT 71 20 01 OTHER INFORMATION CONSIDERED RELEVANT BY THE COMPANY 79 21 01 INDEPENDENT ACCOUNTANTS' LIMITED REVIEW REPORT 81/82

banco daycoval s.a. · brazilian institute of independent auditors (ibracon), together with the...

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