Banco do Brasil

2

Strong Balance Sheet and low funding cost allow quick expansion of loans

High and recurrent profitability

Cost cutting leads to improving efficiency

HighlightsHighlights

Latin America’s largest bank in terms of deposits, assets, number of clients and distribution network

One of the lowest funding costs among Brazilian banks

3

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

Taiwan

China

Korea

Malays

ia

Spain

Egypt

South

Africa

Chile

India

Turkey

Mexico

Russia

Brazil

Brazil: Low Penetration in Banking ServicesBrazil: Low Penetration in Banking Services

Approximately 40 million people do not have access to banking services in Brazil

Brazil: Loans* / GDP (%)

* Including leasing transactions

Loans / GDP* (%)

* As of 2004

13%14% 14% 15% 15%

18% 18%

21%23%

25%

30%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

4

Banco do Brasil is the Largest Bank in BrazilBanco do Brasil is the Largest Bank in Brazil

Total Deposits (R$ billion) Assets (R$ billion)

Loan Portfolio (R$ billion)

139.2

75.551.7

36.7 24.7

Banco doBrasil

Bradesco Itaú Unibanco NossaCaixa

264.6216.4

163.2

93.8

34.8

Banco doBrasil

Bradesco Itau Unibanco NossaCaixa

105.584.4

72.0

39.7

6.4

Banco doBrasil

Bradesco Itau Unibanco NossaCaixa

5

14,870

5,4983,199

1,282 1,099

Banco doBrasil

Bradesco Itau Unibanco Nossa Caixa

Banco do Brasil is the Largest Bank in BrazilBanco do Brasil is the Largest Bank in Brazil

Number of Clients (million)

Assets Under Management (R$ billion)

Outlets

23.3

16.612.6

6.5 4.8

Banco doBrasil

Bradesco Itau Unibanco NossaCaixa

169.2

131.3 135.6

39.913.1

Banco doBrasil

Bradesco Itau Unibanco NossaCaixa

6

Largest number of branches in most Brazilian states

Almost 15 thousand outlets and 41 thousand ATMs

Presence in more than 21 countries, with branches in the major financial centers in the United States, United Kingdom, Japan and China, allows for a wider funding base and boosts trade finance

Largest Distribution NetworkLargest Distribution Network

Midwest388 BranchesRetail: 378Wholesale: 5Government: 5

South800 Branches

Retail: 773Wholesale: 22Government: 5

Southeast1494 BranchesRetail:1437Wholesale: 49Government: 8

North236 BranchesRetail: 227Wholesale: 2Government: 7

Northeast976 BranchesRetail: 957Wholesale: 8Government: 11

6%

10%

25%

38%

21%

7

92.2%80.9%

57.9% 55.8% 54.2%48.1% 48.1%

71.8%

1999 2000 2001 2002 2003 2004 2005 1Q06

55.7% 55.9%

80.3% 80.6%93.1%

103.9%112.1%

67.4%

1999 2000 2001 2002 2003 2004 2005 1Q06

5,4916,607

1,767 2,103

7,648

2003 2004 2005 1Q05 1Q06

11,298 11,524

2,992 3,156

12,398

2003 2004 2005 1Q05 1Q06

Efficiency Ratio (ER)

Administrative Expenses (R$ Million)

CAGR: 4.8%

5.5%

ER =Administrative Expenses

Operating Income

Banking Services Fees / Personnel Expenses

Banking Services Fees (R$ million)

CAGR: 18.0%

19.0%

Consistent Improvement in Operating EfficiencyConsistent Improvement in Operating Efficiency

CAGR IPCA – 6.6%

8

Basel Ratio (%)

Improvements in operating efficiency and risk assessment

R$ 8 billion Capitalization PROEF

1997 2001

Strong Balance Sheet

Capital StructureCapital Structure

Solid balance sheet structure with low leverage allows Banco do Brasil to benefit from credit expansion

8.8

12.7 12.213.7

15.217.1

15.618.3

2000 2001 2002 2003 2004 2005 1Q05 1Q06

9

3,024

965

2,3432,381

4,154

2003 2004 2005 1Q05 1Q06

22.3 23.0 26.8 29.3

63.0

2003 2004 2005 1Q05 1Q06

Net Profits (R$ million)

Return on Equity (%)

CAGR: 32.1%

R$ 1.4 billion from non-recurring revenues:

1) Activation of R$ 1.9 billion tax credits 2) Additional PCLD Expenses of R$ 500 million

Recurring ProfitabilityRecurring Profitability

23.5*

* Recurrent profit per adjusted equity

817

24.6*

938

10

Country’s largest franchise– Wide presence of branches, servicing

roughly 21.5 million clients– Large deposits base with low funding cost

(demand, savings and legal deposits)– Leader in credit and debit card financial

volumes

Expansion of Real Estate loans, Payroll loans and Consumer Finance

Partnerships with retailers

Use of automated channels– Investments in IT amounting to R$ 1.2

billion in the past 2 years – Leader in Internet and Mobile Banking – 8.1

million clients enabled

BB Private

BB Estilo

Exclusivo

Preferencial

Pessoa Física

0.04%

21.5 million clients

2.38%

3.55%

24.81%

69.13%

Individuals Breakdown

Banco do Brasil’s strategic focus and main business catalyst

RetailRetail

monthly salary

> R$ 10,000

> R$ 4,000

> R$ 1,000

< R$ 1,000

11

Leader in trade finance, with volumes reaching US$ 11.9 billion in 2005

R$ 11.1 billion for working capital

29,200 corporate clients

Services companies with annual revenues above R$ 10 million

One of the leaders in underwriting of local debt

Wholesale activity generates more than 2 million clients (individuals) to the retail segment

Wide range of products and strong customer service

WholesaleWholesale

12

R$ 21.7 billion in legal deposits are in Banco do Brasil: low-cost funding

As demanded by law, legal deposits shall only be made in state-owned banks

4.3 million accounts from government employess: – 1.5 million federal employees;– 0.8 million state employees;– 2.0 million municipal employees;

Official bank of 7 Brazilian states

Banco do Brasil: Strategic relationship with the Federal, State and Municipal Governments

Public SectorPublic Sector

13

20.1% market share (ANBID ranking)*

R$ 169.2 billion assets under management

Strong participation of Institutional Investors and Individuals (68%)

Well-known excellence in Asset Management

Assets Under Management (R$ billion)

Brazil’s Largest Asset ManagerBrazil’s Largest Asset Manager

* ANBID – Associação Nacional de Bancos de Investimento

44.4

55.963.0 64.4

7.2 9.914.2 13.3 13.6

6.2

47.9

35.728.6

50.7

20.928.5

19.3

8.1 8.19.0

Dez/03 Dez/04 Dez/05 Mar/06

Institutional Investors Individuals GovernmentCorporate Foreign Investors

'

14

Novo Mercado Listing: long-term commitment to policies directed at creating value for shareholders

100% of common shares

Two-year term for board of directors

Global Compact, Princípio de Equador and Agenda 21

Corporate GovernanceCorporate Governance

Minimum of two independent board members in a total of seven

15

Board of Officers

Units

Directorships

Autonomous Departments

Internal Audit

Agr

ibus

ines

s

Com

mer

cial

Con

trol

ling

Inve

stor

Rel

atio

ns

Mar

ketin

g an

dC

omm

unic

atio

n

Lega

l

Dis

trib

utio

n an

d R

etai

l Cha

nnel

s

Fina

nce

Exec

utiv

eSe

cret

aria

t

VP of Retail Service and Distribution

VP of Rural Businesses

and Government

Affairs

VP ofTechnology and Logistic

VP of Credit Controlling

and Risk Management

VP of Finance, Capital Marketand Investor

Relations

Board of Director

General Shareholders’ Meeting

President

Board of Auditors

Audit Committee

Info

rmat

ion

Tech

nolo

gy

Mic

ro a

ndSm

all B

usin

esse

s

Empl

oyee

Rel

atio

nA

nd S

ocia

l-Env

.R

espo

nsib

ility

VP of HumanResources and Social-Enviro-

nmentalResponsibility

Gov

ernm

ent

Affa

irs

Ret

ail S

ervi

ces

Cap

ital M

arke

ts

and

Inve

stm

ents

Tech

nolo

gy

Hum

anR

esou

rces

Cre

dit

Inte

rnal

Con

trol

s

Fore

ign

Trad

e

Inte

rnat

iona

l

Softw

are

Dev

elop

men

t

Secu

rity

Man

agem

ent

Str

ateg

y an

d O

rgan

izat

ion

Ris

k M

anag

emen

t

Priv

ate

Logi

stic

Sust

aina

ble

Reg

iona

l D

evel

opm

ent

VP of International Business and

Wholesale

Acc

ount

ing

Res

truc

turin

g of

Ope

ratio

nal A

sset

s

StructureStructure