1Investor RelationsInvestor Relations

Banco do Brasil1Q06 Results

Banco do Brasil1Q06 Results

2Investor Relations

1Q05 4Q05 1Q06 %1Q05 %4Q05Net Interest Income 4,090 4,398 4,406 7.7 0.2Allowance for Loan Losses (1,061) (1,498) (1,345) 26.7 -10.2Fee Income 1,767 2,001 2,103 19.0 5.1Administrative Expenses (3,211) (3,510) (3,237) 0.8 -7.8Net Income 965 737 2,343 142.9 217.9Total Assets 245,685 252,977 264,635 7.7 4.6Loan Portfolio 93,263 101,789 105,527 13.2 3.7Securities Portfolio 74,089 66,470 68,631 -7.4 3.3Deposits 120,096 137,658 139,195 15.9 1.1Assets Under Management 138,197 153,508 169,150 22.4 10.2Shareholders' Equity 14,933 16,850 19,209 28.6 14.0% 1Q05 4Q05 1Q06ROE - Annualized 29.3 18.7 63.0ROA - Annualized 1.6 1.2 3.7Spread - Annualized 8.4 9.2 8.5Efficiency 50.4 50.0 48.1Delinquency ¹ 3.1 4.0 4.3Allowance / Deliquency ¹ 193.1 165.7 170.4BIS Ratio 15.6 17.1 18.3

(1) Past Due Loans + 60 days

R$ million

HighlightsHighlightsHighlightsHighlights

3Investor Relations

Net Interest IncomeNet Interest IncomeNet Interest IncomeNet Interest Income

Net Interest Income - R$ million NIM¹ annualized - %

(1) Net Interest Margin over Earning Assets

4,090 4,146 4,1994,398 4,406

1Q05 2Q05 3Q05 4Q05 1Q06

8.49.0 9.0 9.2

8.5

4Investor Relations

278

35 2

4,406

1Q06 - 2.0631

1Q05 - 2.0456

1Q06 - 213,563

1Q05 - 199,964

Volume - R$ million

Spread - %

Volume¹ and Spread AnalysisVolume¹ and Spread AnalysisVolume¹ and Spread AnalysisVolume¹ and Spread Analysis

Gain due to Volume

Gain due to Spread

Gain due to Volume and Spread

(1) Earnings Assets

5Investor Relations

1Q05 4Q05 1Q06 %1Q05 %4Q05Loan Portfolio 93,263 101,789 105,527 13.2 3.7Domestic 83,805 92,612 96,655 15.3 4.4

Individuals 17,069 18,386 19,779 15.9 7.6Free Funds 14,636 16,761 18,601 27.1 11.0

Payroll Loans 1,770 3,810 4,695 165.3 23.2SMEs 13,885 15,204 15,324 10.4 0.8Businesses 22,077 23,315 24,498 11.0 5.1Agribusiness 30,774 35,708 37,054 20.4 3.8

Abroad 9,457 9,177 8,872 -6.2 -3.3

R$ million

Loan PortfolioLoan PortfolioLoan PortfolioLoan Portfolio

Individuals SMEs Businesses Agribusiness Abroad

18.3

14.9

23.7

33.0

10.118.7

14.5

23.2

35.1

8.418.1

14.9

22.9

35.1

9.0

1Q05 - % 4Q05 - % 1Q06 - %

6Investor Relations

CDC Electrônico¹ CDC Salário² CDC Payroll Loans CDC Total

Consumer Finance (CDC)Consumer Finance (CDC)Consumer Finance (CDC)Consumer Finance (CDC)

741 683 623 639815

671 642546 521

615554

1,082 1,1181,004

1,668

1Q05 2Q05 3Q05 4Q05 1Q06

3,199

3,843

3,419

3,065

4,286R$ million

(1) Loan to individuals with pre-approved credit, through ATM(2) Granted to whom receives his/her wage in BB’s account

7Investor Relations

Delinquency and Provision for Credit RiskDelinquency and Provision for Credit RiskDelinquency and Provision for Credit RiskDelinquency and Provision for Credit Risk

(1) Average Portfolio and Expenses of the last 12 months

Quarterly Provision Expenses - R$ million

Provision Expenses / Loan Portfolio¹ - %

1,061 1,002 966

1,4981,345

1Q05 2Q05 3Q05 4Q05 1Q06

1Q05 2Q05 3Q05 4Q05 1Q06

Allowance for loan losses / Loan Portfolio - %Past Due Loans + 15 days / Loan Portfolio - %Past Due Loans + 60 days / Loan Portfolio - %

6.1 6.1 6.3 6.6

7.3

5.14.6

5.95.6

6.0

3.1 3.1

3.9 4.04.3

4.3 4.2 4.2

4.7 4.9

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BB

Credit Risk - %Credit Risk - %Credit Risk - %Credit Risk - %

(1) Source: Brazilian Central Bank

AA-C D-HAA-C D-H

4Q05 1Q06

89.5 89.6

10.4

Retail Commercial Agribusiness ForeignTrade

Abroad

88.4

11.6

95.1

4.9

90.7

9.3

97.9

2.1

98.1

1.9

88.8

11.2

95.1

4.9

88.8

11.2 1.9 1.8

90.6

9.4

89.9

10.110.5

BankingIndustry¹

98.1 98.2

9Investor Relations

1Q05 4Q05 1Q06 %1Q05 %4Q05Fee Income 1,767 2,001 2,103 19.0 5.1

Customer Relationship Fees 589 648 679 15.3 4.8Assets Under Management Fees 283 310 356 25.8 14.7Credit Cards 163 199 201 23.4 0.8Collection 168 190 189 12.7 -0.3Credit Operations 149 162 135 -9.8 -17.0Funds Transfers 118 131 218 85.7 66.3Others 297 360 324 9.4 -9.8

R$ million

Account Holders - million Assets Under Management - R$ billion

Fee IncomeFee IncomeFee IncomeFee Income

(1) 12 months average

21.2 21.9 22.3 22.9 23.3

1Q05 2Q05 3Q05 4Q05 1Q06

(Fees + NII) per account holder¹ - R$

138.2144.8

150.4 153.5 169.2

1Q05 2Q05 3Q05 4Q05 1Q06

Market Share - %

282 295 284 290 288 20.120.8 21.3 20.9 20.2

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1Q05 4Q05 1Q06 %1Q05 %4Q05

Administrative Expenses (2,992) (3,268) (3,156) 5.5 -3.4

Personnel Expenses (1,638) (1,802) (1,781) 8.7 -1.2

Other Administrative Expenses (1,315) (1,428) (1,331) 1.2 -6.8

Telecom. and Data Processing (341) (350) (373) 9.5 6.7

Amortization and Depreciation (174) (169) (170) -2.3 0.4

Security, Guard and Transp. Serv. (187) (197) (185) -0.8 -6.0

Exp. with Premises and Equipment (175) (182) (191) 9.0 5.0

Marketing and Public Relations (84) (132) (71) -14.8 -46.2

Exp. with Outsourced Services (138) (144) (129) -6.4 -10.3

Other Administrative Expenses (217) (253) (211) -2.7 -16.7

Other Tax Expenses (39) (39) (44) 14.3 14.0

Legal Risk (258) (281) (126) -51.0 -55.1

Legal Claims (92) (70) (31) -66.1 -55.7

Labor Claims (166) (211) (95) -42.7 -54.9

Administrative ExpensesAdministrative ExpensesAdministrative ExpensesAdministrative Expenses

R$ million

11Investor Relations

Coverage¹ Ratio - %

(1) Fee Income / Personnel Expenses - YTD(2) Administrative Expenses / Operating Income - YTD

Productivity RatiosProductivity RatiosProductivity RatiosProductivity Ratios

Efficiency² Ratio - %

97.9104.8 103.4 102.3

112.1

1Q05 2Q05 3Q05 4Q05 1Q0650.4 49.0 47.5 48.1 48.1

1Q05 2Q05 3Q05 4Q05 1Q06

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Income Tax and Social ContributionIncome Tax and Social ContributionIncome Tax and Social ContributionIncome Tax and Social Contribution

Tax Rate - %Pretax Income¹ - R$ million Taxes² - R$ million

1,6011,760

2,533

1,3471,491

559 570

979

447 363

1Q05 2Q05 3Q05 4Q05 1Q06

(1) Recurring Income before Taxes, deducting Profit Sharing(2) Recurring Taxes

34.932.4

38.633.2

24.3

13Investor Relations

Investor Relations DivisionSBS - Quadra 1 - Bloco C - Ed. Sede III - 5° floor

70073-901 - Brasília (DF)Phone: 55 (61) 3310.3980

Fax: 55 (61) 3310.3735

www.bb.com.brri@bb.com.br

DisclaimerDisclaimer - This presentation contains 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, it also involves imprecision and high difficult risks to be foreseen, consequently, it may conduct to a different result than the one anticipated here. These expectations are highly depended on market conditions, on the Brazilian economic performance, on the sector and the

international market. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation.

For further information access www.bb.com.br/ri