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Banco do Brasil
1st Quarter 2011
2
This presentation may include references and statements, planned synergies,
increasing estimates, projections of results and future strategy for Banco do Brasil,
it’s Associated and Affiliated Companies and Subsidiaries. Although these
references and statements reflect the management’s belief, they also involve
imprecision and high difficult risks to be foreseen, consequently, they may conduct
to a different result than those anticipated and discussed here. These expectations
are highly dependent on market conditions, on Brazil’s economic and banking
system performances, as well as on international market one. Banco do Brasil is not
responsible for bringing up to date any estimate in this presentation.
Disclaimer
3
1 – The best result for first quarter ever
3 – Agribusiness has an outstanding performance
5 – Business fronts: Cards, Insurance and Capital Markets
2 – Loan portfolio growth with quality
4 – Leading trade finance
6 – Focus on service quality and efficiency gains
1Q10 1Q11 Chg. % Share %
Assets¹ 724.9 866.6 19.6 20.8
Deposits¹ 342.6 381.2 11.3 23.7
Loan Portfolio² 328.1 397.5 21.2 19.5
Assets under Management 339.8 407.5 19.9 22.0
R$ billion
4
BB maintains strong market leadership...
(1) Market Share % - Position: Dec, 2010(2) Including private securities and provided guarantees. Market share calculated on the domestic portfolio.
Net Income & ROE
5
R$ billion
2.35
2.93
2.06
2.92
24.2 24.8
1Q10 1Q11
Net Income
Recurring NetIncome
... presenting record results for first quarter.
Recurring ROE - %
42.2%
R$ billion
Solid deposits base...
6
11.3%
8.3%
197.9 219.0
78.790.5
55.059.611.0
12.1342.6
381.2
Mar/10 Mar/11
Others
Demand Deposits
Savings
Time Deposits
15.0%
10.7%
1.0
5.1
0.9
2.3
1.9
7.4
Mar/10 Mar/11
Letters of Credit -Agribusiness
Letters of Credit*
R$ billion
... allied to diversified funding...
7(*) Including Subordinate Financing Bills
US$ billion
... with a steady growth of foreign borrowings...
8
7.1 7.9
6.59.0
6.2
5.31.9
2.02.32.224.1
26.4
Mar/10 Mar/11
Repos
Individuals
Corporates
Bond Issues
Interbanking
37.5%
R$ billion
... increasing the participation of Asset Management* .
9(*) Including 50% of assets managed by Banco Votorantim, except market share.
19.9%
9.4 8.8 9.3 9.8 10.4
6.5 6.5 6.5 6.3 6.2
4.4 4.5 4.8 4.9 4.6
1Q10 2Q10 3Q10 4Q10 1Q11
Accumulated Selic
NIM
Risk Adjusted NIM
Prospect of recovery spread in 2011.
9.9 9.7 9.2 8.7 8.8
18.2 17.4 16.4 15.5 15.3
6.7 6.2 6.2 5.6 6.0
5.6 6.0 5.5 5.6 5.1
1Q10 2Q10 3Q10 4Q10 1Q11
Loan Operations NIM
Individuals NIM
Corporate NIM
Agribusiness NIM
NIM by Product
NIM
10
148.7179.4
95.1
116.548.4
50.417.2
27.9
18.7
23.4
328.1
397.5
19.8 19.5
Mar/10 Mar/11
Offshore
Agribusiness -Corporates
Agribusiness -Producers
Individuals
Corporates
R$ billion
Loan portfolio (1) keeps increase...
11
29.0%
45.1%
29.3%
(1) Including private securities and provided guarantees.(2) Market share calculated on the domestic portfolio.
Market Share - %(2)
19.7%
20.0%
45.3%
21.2%
38.5 46.0
21.0
28.611.2
13.81.9
3.4
8.9
11.2
10.7
10.3
2.7
3.1
95.1
116.5
22.3 22.0
Mar/10 Mar/11
Overdraft Account
Other
Credit Cards
Mortgage
Backed by DirectDeposits
Vehicle Finance
Payroll Loan
R$ billion
... focusing on lower risk portfolios.
12
78.9%
76.4%
22.5%
Loan Portfolio - Individuals
Market Share* - %
(*) Calculated based on the Loans as Reference for Interest Rate.
85.6 97.1
26.234.212.2
13.711.2
19.613.4
14.8148.7
179.4
21.3 21.2
Mar/10 Mar/11
Other
Private Securities
Trade Finance
Investment
Working Capital
Corporate loans expands backed by securities and investiments lines.
R$ billion
13
17.7%
19.0% 30.1%
20.7%
74.7%
Market Share* - %
(*) Calculated based on the Loans as Reference for Interest Rate.
CRÉDITO
Agribusiness performance exceeds expectations...
R$ billion
14
48.4 50.4
17.227.9
65.6
78.3
56.361.1
Mar/10 Mar/11
Agribusiness -Corporate
Agribusiness -Producer
61.9%
19.3%
4.1%
Market Share - %
... with crops showing good returns...
Margin*
15
%
(*) Margin = (Revenues – Costs) / Revenues
46.2 47.4 47.7 47.4 49.2
131.8144.1 135.2
148.8 157.4
06/07 07/08 08/09 09/10 10/11*
Hectars - million
... and growing scale ...
16(*) Source: Conab – Position: April, 2011
Production vs. Planted Area
Tons - million
Prices
Costs
Margins
Weather
... and good prospects for 2011/12..
17
Stable
Average growth: 5%
Profitable
Favorable
Improved risk profile...
18
91.9
8.1
93.8
6.2
Risk AA – C - %Risk AA – C - %
Risk D – H - %Risk D – H - %
Mar/2010 Mar/2011
... as a function of default under the market curve and back to pre-crisis levels.
Individuals*
Corporate*
19
NPL + 90 days - %
3.1 2.7 2.7 2.3 2.1
Agribusiness
Total
4.4 4.1 3.8 3.3 3.4
2.6 2.4 2.2 1.8 1.8
3.22.3 2.5 2.5
1.8
Mar/10 Jun/10 Sep/10 Dec/10 Mar/11
(*) Loans as Reference for Interest Rate.
0.5
0.9
1Q10 1Q11
BNDES Card
BNDES Card excelled in the disbursement of investment lines.
20
R$ billion
Investment lines - quarter disbursements
4.5
5.4
1Q10 1Q11
Total*
(*) Including BNDES, BNDES Cards, FAT, FCO, Finame, Funcafé, Fundo da Marinha Mercante, Agroindustrial Investiment, Leasing, Proger, Pronaf and Other lending with own resources.
21
Loans guaranteed by FGO keep growing.
3,5 3,74,3
5,1 5,3 5,5 5,6 6,06,5
7,0 7,0 7,0 7,2
181199
220243
258274
290308
332354 361 371 384
Mar/10 Apr/10 May/10 Jun/10 Jul/10 Aug/10 Sep/10 Oct/10 Nov/10 Dec/10 Jan/11 Feb/11 Mar/11
Operations Balance - R$ billion Thousand Operations
Present in 23 countries...
22
5,770
U$ million
Loan Portfolio
1,839
4,382
13
... supporting foreign trade.
23
3.3 3.6
9.1
11.011.4
16.6
1Q10 1Q11
ACC/ACE*
Import Exchange
Export Exchange
U$ billion
45.1%
21.2%
8.6%
Quarterly Flow
(*) Advances on Exchange Contracts and Advances on Export Contracts
Mortgage loan disbursements have tripled.
24
Housing Fair
Housing Correspondents
324
481578
1,000
1,140
2,142
2,597
3,012
3,787 3,798
1Q10 2Q10 3Q10 4Q10 1Q11
Settled Contracts
Disbursements - R$ million
6.6 7.59.2 9.5
6.6
18.622.5 22.6 22.3 20.2
3.4 3.0 2.7 1.6 2.3
1Q10 2Q10 3Q10 4Q10 1Q11
NPL + 90 (%)
Banco Votorantim Market Share exceeds 20%.
25
Production of Vehicle Financing and Payroll Loans – R$ billion
Market Share - %Vehicle Financing Requests
24.0
30.1
20.4 21.6
1Q10 1Q11
R$ billion
Card Billings
26
Business cards has grown constantly...
25.6%
(*) ABECS Ranking
Market Share* - %
27
... Ourocard being the favorite card for Brazilians.. .
Ourocard
� Brazilian favorite card for the second
consecutive year (Medida Certa Institute)
� Most attractive card (brand strength), for the
second consecutive year (CVA Solutions)
4,1645,152
3,3164,366
11,206
1,8362,670 2,176
3,002
7,486
Dec/10 Jan/11 Feb/11 Mar/11 Apr/11
Dollar
Euro
28
... even for overseas traveling ...
Travelmoney – Trade (quantity)
Elo Card Brand and Card Market - Forecasts
29
... with compelling future.
645749
881
1,1031,202
2011 2012 2013 2014 2015
Cards Industry Income - R$ billion
30
Insurance business reorganization boosts the results ...
R$ million
Insurance Result*
24.2%
297.6
369.7
1Q10 1Q11
(*) Aliança do Brasil + Brasilcap + Brasilprev + Brasilveículos
... confirming the strategies adopted for this segm ent...
31
0.510.67
10.6 11.4
1Q10 1Q11
Aliança do Brasil
0.61 0.70
22.7 23.6
1Q10 1Q11
Brasilcap
2.00 3.26
28.6240.03
19.9
27.4
1Q10 1Q11
Brasilprev
0.36 0.37
7.7 7.3
1Q10 1Q11
Brasilveículos
Revenues – R$ billion Reserves – R$ billion Market Share* - %
(*) Aliança do Brasil – Life; Brasilveículos – Auto; Brasilcap e Brasilprev - Billings
… leading to a great future.
32
Revenues(1): R$ 4.1 billion#1 – 20.8% Market Share
Life
P&C,
Auto(2)
(1) Source: Susep – position: feb/ 2011 – Except Health Insurance – Proforma: Aliança do Brasil + Brasilcap + Brasilprev + Brasilveículos + Mapfre Seguros(2) Except DPVAT
Ranking Market Share%
2º
3º
2º
17.8
11.8
16.7
+
BB Investment Bank confirms its position in the capi tal market…
33
Leaderships *:
• Equity: #1 distribution(Market Share: 60.4%)
• Fixed Income: #1 origination(Market Share: 29.2%)
(*) Anbima Ranking – position: mar/2011 – YTD
Number of operations
1014
7
8
1Q10 1Q11
Equity
Fixed
... with brokers in major financial centers worldwi de.
34
New YorkLondon
Singapore(being installed)
Focus on quality service shows significant results. ..
35
R$
Operating Revenues(1) / Customers
(1) Operating Revenues = Net Interest Income + Fee Income + Insurance income
53.5 53.3 54.5 54.4 54.9
Mar/10 Jun/10 Sep/10 Dec/10 Mar/11
Customers (million)254.18
274.90 276.22
1Q10 4Q10 1Q11
8.7% over 1Q10
... improving customer satisfaction ratio...
36
79.980.7
74.8
77.5
73.7
75.6
72.0
73.8
2009 2010
Estilo Customers
Individuals
Wholesale
SMEs
%
Source: Ethos Institute (Estilo Customers e Individuals), LARC Marketing Research (wholesale) and Innovare Institute (SMEs)
58,566 59,377
67,736
103,971 103,923111,224
4,897 4,960 5,103
Dec/09 Mar/10 Mar/11
In branches
Total
... with an increase of employees’ number in the branch ne twork.
37
Numbers of Employees:
56.3%
60.9%
Branch Network
15.7%
7.0%
Chg. on Dec/09
43.941.8
44.340.9
1Q10 1Q11
LTM Quarter
38
Consistent operational performance provides improve ment in cost to income ratio.
%
466531
113 121
26.8 25.2
2009 2010
Shareholder´s Equity
Net Income
Recent movements reinforce our internationalization strategy...
39
Bank of Brazilian companies abroad
U$ million
1,111
1,8201,641
2,5902,570
3,577
2009 2010
Loan Portfolio
Deposits
Assets
ROE%
... in United States...
40
Bank of Brazilian communities
Boca Raton
Coral Gables
Pompano Beach
... in United States...
41
BB New York Branch
... and Asia.
42
Brazilian foreign trade support
Office in Shanghai turned into branch
43
BIS Ratio allows business expansion.
9.4711.15
4.27
2.97
13.73 14.13
Mar/10 Mar/11
Leve II
Level I
168 bps
BIS Ratio - %
Credit potential growth weighted at 100%: R$ 133.7 billion
Guidance 2011
44
14 – 18
21 – 24
16 – 20
17 – 20
19 – 23
17 – 20
5 – 8
3.3 – 3.7
12 – 17
10 – 13
11.3
24.8
12.0
18.9
22.5
16.1
19.3
3.0
10.9
7.4
31 – 34 33.5
Performance in line with estimates.
Items
Total Deposits
Recurring ROE
Net Interest Income
Domestic Loan Portfolio
Individuals
Corporates
Agribusiness
Allowance for loan losses
Fee Income
Administrative Expenses
Tax Rate
Estimate - % Performance - %
Investor Relations UnitSBS - Quadra 1 - Bloco C - Ed. Sede III – 7th floor
70073-901 - Brasília (DF)Phone: (61) 3310 3980
Fax: (61) 3310 3735