disclaimer - banco do brasil100% of municipalities until 2015 strategic positioning 25 region’s...

2

Disclaimer

This presentation may include reference 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 theses

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.

3

Agenda

execution track record execution track record positive outlook

strategic positioning new fronts

4

Execution Track Record

Public Offering – free float from 6.9% to 14.8%

Public Offering - R$ 9.8 billion / free float - 30.4%

Level 1 ADR

2001

2002

2006

2006

2007

2009

2009

2010

governance improvements

Financial statements in international standards

Public Offering - free float from 14.8% to 21.7%

“Novo Mercado” Bovespa - Special Listing Segment

Conversion of preferred shares into common shares

PFIFF*: corporate governance improvements aiming

adhesion to Novo Mercado

* Brazilian government program to strenghten Federal Owned Financial Institutions

Ibovespa Banco do Brasil Bradesco Itaú Santander*

5

May

2006

June

2011


• BBAS3 – 7th most negotiated share / 3rd most traded among Brazilian Banks

• Average volume traded in 2011 rose 691% over same period of 2006

• Stake on IBOVESPA increased from 1.7% (jun/06) to 2.5% (jun/11)

• Stock performance better than peers

5 years on “Novo Mercado”

6


Expansion of the service network in São Paulo and the leadership in other regions

Retail leadership

Expansion of credit and exposure to more profitable segments

Diversification: insurance and pension plans, cards, asset management and capital markets

Costs control: modern infrastructure and cutting edge technology

Customer base expansion, improvement in service quality and strengthening of relationship

commitments and strategies

7

Total Deposits

Market Share

1H11 (%) (2) 2006 1H11 CAGR %

20.9 296.4 904.1 28.1

26.0 158.8 396.2 22.5

19.6 133.2 421.3 29.2

22.3 182.7 421.4 20.4

(1) Includes guarantees and private securities. Market share of domestic portfolio.

(2) Market share position of Total Assets and Total Deposits: march/2011

25.5 3,969 5,094 5.7

Total Assets

Credit(1)

Asset Management

Branch Network

Market Share

2006 (%)

16.8

21.4

16.5

19.1

22.7


largest bank in Brazil

R$ billion

6.05.1

8.8

10.1

12.9

5.1

6.3

3.7

5.96.7

8.5

12.4

4.4

6.2

32.1

22.5

32.530.7

27.028.7

25.4

19.5

26.1

24.7 25.8 24.6 24.6 24.9

2006 2007 2008 2009 2010 1H10 1H11

Net Income Recurring Net Income ROE - % Recurring ROE - %

8


R$ billion

net income

296.4

367.2

521.3

708.5

811.2

904.1

16.815.6

17.2

22.020.8 20.9

2006 2007 2008 2009 2010 Jun/11

Market Share - %

9

assets*

(*) Market share position: march/2011


R$ billion

10

158.8

188.3

270.8

337.6

376.9396.221.4 21.3

22.2

26.5 26.3 26.0

2006 2007 2008 2009 2010 Jun/11

Market Share - %

deposits*


R$ billion

(*) Market share position: march/2011

2.3 3.36.2

8.8 9.11.7

2.2

4.6

7.6

10.5

3.8

6.8

6.3

5.1

5.0

2.0

2.0

2.0

2.1

2.0

2.6

3.4

2.6

1.8

2.3

12.4

17.6

21.7

25.3

28.9

2007 2008 2009 2010 Jun/11

Interbanking Bond Issues Corporates Individuals Repos

11


US$ billion

foreign borrowings*

(*) Without Banco Patagonia

12

182.7

220.1246.3

316.2

372.3

421.4

19.118.3

20.7 21.1 21.222.3

2006 2007 2008 2009 2010 Jun/11

Market Share - %

(*) Market share without Banco Votorantim.


R$ billion

asset management*

13

51.9 65.597.2

144.0176.4 191.2

24.032.0

48.8

91.8

113.1122.6

45.151.9

63.7

67.1

75.781.5

12.211.4

15.1

18.4

23.0

26.1

133.2160.7

224.8

321.4

388.2

421.316.5

16.017.1

20.1 19.8 19.6

2006 2007 2008 2009 2010 Jun/11

Corporates Individuals Agribusiness Offshore Market Share - %

18.0%

29.1%

credit*


R$ billion

(*) Since 2009 includes guarantees and private securities.

36.545.0 47.9

20.7

27.430.59.2

12.9

14.6

1.5

3.0

4.2

9.4

11.9

11.5

12.0

10.4

10.7

2.4

2.6

3.1

24.0

32.0

48.8

91.8

113.1

122.6

2006 2007 2008 2009 2010 Jun/11

Payroll Vehicle Finance Backed by Direct Deposits Mortgage Cards Other Overdraft

14

79.3%

47.3%


R$ billion

credit to individuals*


30.439.6

60.6

83.699.1 102.3

9.6

13.4

19.2

25.2

33.035.2

10.1

10.9

15.5

12.6

14.114.3

1.9

1.7

1.9

22.6

30.1

39.4

51.9

65.5

97.2

144.0

176.4

191.2

2006 2007 2008 2009 2010 Jun/11

Working Capital Investment Trade Finance Other

15


R$ billion

corporate loans*


16

36.6 40.245.2 48.0 49.6 52.6

8.511.7

18.519.2

26.128.9

45.1

51.9

63.767.1

75.781.5

58.0 58.2 59.9 59.2 60.6 61.9

2006 2007 2008 2009 2010 Jun/11

Producer Corporate Market Share - %


R$ billion

credit to agribusiness*


17

Corn

Costs** % Secured

5,718 43.5

2,421 53.3

1,038 70.7

550 85.9

Soy

Rice

Weath 8,1%

22,7% 14.4 11.7 8.7 6.6

49.2 55.4 67.0 74.9

63.767.1

75.781.5

2008 2009 2010 Jun/11

Extended Unextended


R$ billion

credit to agribusiness*

(*) Since 2009 includes guarantees and private securities. (**) Amount contracted on crop 2010/2011 – R$ million.

18

8.17.6

7.06.7

6.3 6.2

4.4

5.65.0

4.34.6 4.4

2006 2007 2008 2009 2010 2Q11

NIM Risk Adjusted NIM*

%


NIM and Risk Adjusted Margin

(*) Risk Adjusted NIM = Net Financial Margin / Average Earning Assets.

2.52.7

2.4

3.3

2.32.0

3.7

3.2 3.2

4.3

3.23.4

2006 2007 2008 2009 2010 Jun/11

BB BI

19

%


90 days delinquency

82.6 81.989.0

104.0 109.0 112.9

2006 2007 2008 2009 2010 Jun/11

Employees

4.0 4.0 4.34.9 5.1 5.1

Branches

47.546.2 45.6

43.4 42.641.1

Cost to income ratio - % - LTM

20

thousand


business growth with efficiency

21

Agenda

positve outlook execution track record


22

Positive Outlook

worldcup + olimpic games

clean energy

pre-salt

rural productivity

infrastructure investments

income class migration

Agenda

23

execution track record positive outlook


24

Fernando

de Noronha

Banco Postal

Banco do Brasil

100% of municipalities until 2015

Strategic Positioning

25

Region’s percentage of Brazilian GDP

% of Banco do Brasil Network in Terms of Branches

13.1%

9.2%

16.6%

56.0%

5.3%

20.8%

8.4%

20.5%

45.0%

5.1%

46.1%

18.5%

2006

2010

55.4%

16.6%

2006

2010

42.6%

20.1%

2006

2010

43.1%

11.3%

2006

2010

70.9%

82.5%

2006

2010

Source: IBGE, Ipeadata, Caged, CBIC and Brazilian Central Bank

branch network suports growth


Augusta - SP 26

Gramado - RS

Leblon - RJ

53.3 54.5 54.4 54.9 55.2

261.11274.64 274.90 276.21

289.99

2Q10 3Q10 4Q10 1Q11 2Q11

Customers (million) Commercial Income* / Customers (R$)


BB 2.0 – retail remodeling

(*) Net Interest Income + Fee Income + Insurance Income

27

sustainable development

Regional Sustainable Development

Microcredit

• Contracted amount = R$ 91.5 milllion

• Balance = R$ 63.9 million

Regional Sustainable Development

Strategy

• 1,208 thousand beneficiaries

• 564 thousand beneficiaries with

operations

• Portfolio balance = R$ 9.4 billion

Fundação Banco do Brasil – FBB

• R$ 665 million own resources invested from 2003 to 2010

• R$ 118.6 million invested in 2010 – higher volume of FBB´s history

• R$ 134 million estimated to 2011


28

Agenda

novas frentes

execution track record positive outlook


29 (*) Posição: 30/06/2011.

New Fronts

Market capitalization: R$ 78.2 billion

30

internationalization revenues diversification

eficiency and costs control retail remodeling

Agenda for the future

Investor Relations Unit SBS - Quadra 1 - Bloco C - Ed. Sede III – 7th floor

70073-901 - Brasília (DF)

Phone: +55 (61) 3102 1124

Fax: +55 (61) 3102 1435

bb.com.br

[email protected]

disclaimer - banco do brasil100% of municipalities until 2015 strategic positioning 25 region’s...

Documents