Banco Santander (Brasil) S.A.

FIXED INCOME INVESTOR

PRESENTATION

February 2011

Important Information

This presentation may contain certain forward-looking statements and information relating to Banco Santander

(Brasil) S.A. (“Santander Brazil") and its subsidiaries that reflect the current views and/or expectations of Santander

Brazil and its management with respect to its performance, business and future events. Forward looking statements

include, without limitation, any statement that may predict, forecast, indicate or imply future results ,performance

or achievements, and may contain words like "believe", "anticipate", "expect", "estimate", "could", "envisage",

"potential", "will likely result", or any other words or phrases of similar meaning. Such statements are subject to a

number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause

actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this

presentation. We do not undertake any obligation to update or revise any forward-looking statements, whether as

a result of new information, future events or otherwise. In no event shall Santander Brazil, or any of its

subsidiaries, affiliates, shareholders, directors, officers, agents or employees be liable to any third party (including

investors) for any investment or business decision made or action taken in reliance on the information and

statements contained in this presentation or for any consequential, special or similar damages.

In addition to factors identified elsewhere in this presentation, the following factors, among others, could cause

actual results to differ materially from the forward-looking statements or historical performance: changes in the

preferences and financial condition of our consumers, and competitive conditions in the markets we serve;

changes in economic, political and business conditions in Brazil; governmental interventions resulting in changes in

the Brazilian economy, taxes, tariffs or regulatory environment; our ability to compete successfully; changes in our

business; our ability to successfully implement marketing strategies; our identification of business opportunities; our

ability to develop and introduce new products and services; changes in the cost of products and our operating

costs; our level of indebtedness and other financial obligations; our ability to attract new customers; inflation in

Brazil, devaluation of the Real against the U.S. Dollar and interest rate fluctuations; present or future changes in

laws and regulations; and our ability to maintain existing business relationships, and to create new relationships.

Index

Santander Brasil

Brazilian Economy and Financial System

Santander Group

Annexes

3

For the first time in a long period, we are living in a truly DUAL WORLD

Need for PUBLIC SECTOR

to adjust large fiscal

deficits

HIGH

HIGH

LOW

LOW

Need for

PRIVATE

SECTOR to

deleverage

Leverage

MATURE

MARKETS

Balanced

EMERGING

MARKETS

MATURE MARKETS

have started to

behave like

mature markets…

i.e., not growing…

…and EMERGING

MARKETS have started to

behave like emerging

markets… i.e., delivering

DIFFERENTIAL GROWTH…

4

International Reserves and External Debt Interest Rates vs. Inflation

Real GDP Growth %

49 53 5486

180207

239

289

215 201 169 173

193 198 198

247

2003 2004 2005 2006 2007 2008 2009 2010

US$ billion

External

debt¹

Reserves

Net Public Sector Debt / GDP %

Solid macroeconomic fundamentals…

Source: Central Bank, IBGE and Santander Research

1. Last data available for external debt: Nov/10

1.1%

7.7%

2.5% 2.9%

0.7%

1.7%

2003 2004 2005 2006 2007 2008 2009 2010 E

Brazil USA Euro Zone

16.5%17.8% 18.0%

13.3%11.3%

13.8%

8.8%10.8%

9.3%7.6%

5.7%

3.1%

4.5%5.9%

4.3%5.9%

2003 2004 2005 2006 2007 2008 2009 2010

Interest Rates (SELIC) Inflation (IPCA)

54.9%50.6% 48.2% 47.0% 45.1%

38.4%42.9% 40.4%

2003 2004 2005 2006 2007 2008 2009 2010E

5

Dec94

Aug95

Feb83

Jan87

Feb99

Nov00

Sep95

Sep97

Most briefcontraction

Jan09

Oct10

Sep01

Sep02

Oct80

Jan83

Jun89

Nov91

Dec00

Aug01

Oct02

Mai03

Jul08

Dec08

Feb87

Sep88

Dec91

Nov94

28

48

20

8

30

36

9

25

16

22

9

13

8

61

6

21

Duration in months of the Brazilian economic expansion and contraction periods

Jun03

Jun08

Largest expansion

period

... which led to less macroeconomic volatility

Source: The Brazilian Central Bank

Oct97

Jan99

6

3.5 3.84.9

6.0

7.4

8.9 8.5

1994 2000 2005 2006 2007 2008 2009

4929 16

47

4440

6695 113

1320 31

0

50

100

150

200

2003 2009 2014*

Mill

ion

s o

f P

eo

ple

E D C A/B

+44.0% +19.0%

40%

50%

60%

70%

80%

90%

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Population in Active Ages= 15-64 years

Dependence Ratio

Favorable Demographic Dynamics1

Demographic

Bonus

Sources: 1 – IBGE and Santander Research2 - Ministry of Finance; * estimated

Annual Average Unemployment Rate(%)

Social dynamics shows a favorable scenario for Brazil

Per capita Income – US$ thousand

CAGR: 6,6%

Social Mobility Trends2

12.3%11.5%

9.8% 10.0%9.3%

7.9% 8.1%

6.7%

2003 2004 2005 2006 2007 2008 2009 2010

∆abc= 36 ∆abc= 29

7

Sound Brazilian Financial System

Well-capitalized financial system: BIS Ratio: 17,4%

Coverage index: 109%

High Profitability - ROE: 17%

Concentration: The five largest banks account for 75% of the assets

Sizeable market: The four largest Brazilian banks rank the 30 largest banks of the world in market capitalization

Conservative regulation and strict prudential rules:

The minimum BIS ratio required is 11%

High Reserve requirements: average ratio¹ 33%

Solid and Profitable

Highly regulated and

sizeable financial

system

Source: Central Bank of Brazil

1. Total System reserve requirement / Total system deposits

8

Increasing credit penetration but still low for international standards

Total Credit / GDP*

Credit Evolution in Brazil

209%

83%

46%

41%

32%

USA

Chile

Brasil

Colômbia

México

252 300 366 441564

739852

1,027

8.8%

20.5%

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10

US$ Billion Y-o-Y

Source: Central Bank of Brazil and Santander Research*Last data available for Total Credit/GDP: Dec/08, except from US:Dec/07

9

Differential GDP growth (not

involved in the excesses of

the past cycle)

Increased bancarisation

(development of middle class)

Sound Financial System

(Low leverage, conservative,

good profitability, supervision)

The triple Multiplier

The banking sector has a big opportunity

The triple MultiplierThe triple Multiplier

Brazil: a country with great opportunities10

Index

Santander Brasil

Brazilian Economy and Financial System

Santander Group

Annexes

11

Today Santander is one of the largest financial groups worldwide

Note: Bloomberg Data as of December 30, 2010

# 1 in the

Eurozone

2010 profit: EUR 8,181

mill.

# 4 worldwide(# 3 in 2008; # 5 in 2007)

Market cap.: EUR

66,033 mill.

# 10 worldwide(# 12 in 2006)

# 1 by international branch network: ~14,086 # 1 by number of shareholders: 3.2 million

12

Santander Group

Santander Group

Main financial figures

EUR MM 2010

Assets 1.217.501

Loans 724.154

Shareholders’ equity 75.273

Assets Under Management 1.362.289

Net profit8.181

Profits by geographical area

USA

4% Retail Spain

15%

Other Retail

Europe

11%

Global

Business

Europe

9%

United

Kingdom

18%

Brazil

25%

Other LatAm

18%

Continental Europe: 37%

Sound credit ratings

Long term Outlook

Standard & Poor’s AA Negative

Moody’s Aa2 Negative

Fitch AA Stable

DBRS AA Stable

Assets by geographical area

Continental

Europe

45%

United

Kingdom

30%

Brazil

12%

Other

LatAm

9%

USA

4%

13

Santander’s Model

1.Critical mass in our core markets

2.High diversification by geographies and businesses: focus on retail

banking

3.Solid retail banking model. Commercial focus (expand the

“front”), continue efficiency improvement (reduce the “back”) and a

prudent risk policy.

4.Balance sheet strength: a distinguishing feature of Santander Group

5.Active management of business portfolio: improving our strategic

positioning during the crisis

Our strategy

14

Ranking1: 4th (5)

Mkt. share1: 10% Branches: 762 Customers: 1.9 mill.

Ranking1: 1st

Mkt. share1: 19% Branches: 500 Customers: 3.0 mill.

Ranking: 3rd

Mkt. share: 10% Branches: 3,696 Customers: +24 mill.

Ranking1: 3rd

Mkt. share1: 15% Branches: 1,093 Customers: 9.0 mill.

Ranking1: 1st

Mkt. share1: 15% Branches: 4,780 Customers: 12.1

mill.

Spain2

Ranking1: 4th

Mkt. share1: 12% Branches: 1,328 Customers: 26.4 mill.

UK3

Portugal2

Mexico

Brazil6

Chile Branches: 523 Dealers: 135,000 Customers: 13.7 mill.

Santander Consumer4

(1) Loans + deposits (balance sheet funds) + mutual funds(2) Santander Consumer not included (in Spain: 2.7 million customers and 77 branches; Portugal: 0.3 million customers and 7 branches)(3) Ranking 3rd by retail deposits and second by mortgages portfolio(4) Present in 15 countries. Loyalty cards not included under customers(5) Third largest private bank in Portugal and first by profit in 2009(6) Excluding public-sector banks. (7) Only data from Sovereign Bank. Customer-homes data.

Branches: 722 Customers: 1.7 mill.

USA7

Critical mass in our core markets

Santander’s model 15

Profit before tax

(by business area)

Retail Banking

Loans/Assets (%)

72% 24%

Asset

Management&

Insurance

76% retail

Retail

Banking

4%

Global

Banking&

Markets

Top World Banks: Loan/Assets (%)

0

10

20

30

40

50

60

70

Wells

Santa

nder

BBV

A

Unic

redit

RBC

BoA

HSBC

Citi

JPM

RBS

SocG

én

BN

P

Barc

lays

UBS

Deuts

che

Source: Banks' data

Santander’s model

Santander: Low risk business model

16

(*) Efficiency ratio with amortisations. Figures from 2004 on according to IFRS

Group efficiency ratio*

In percentage

Abbey’s entry

B. Real’s entry

SOV, A&L and GE’s entry

Efficiency ratio vs Peers** (%)

40.4

41.3

41.7

49.7

50.6

52.1

54.1

55.3

55.6

55.8

57.6

57.8

59.4

59.6

60.6

64.8

69.4

69.9

72.5

87.5

98.4

C1

C2

SAN

C4

C5

C6

C7

C8

C9

C10

C11

C12

C13

C14

Peers …

C15

C16

C17

C18

C19

C20

SAN efficiency:

Global Model of

Technology, Operations and Costs

(**) Note: Data as of December 2009. “Peer Group” are 19 large banks that because of their size, charateristic and/or degree of direct competition are the reference group to surpass: Banco Itaú, Bank of America, Barclays, BBVA, BNP Paribas, Citigroup, Credit Agricole, HSBC, Intesa Sanpaolo, JP Morgan, Lloyds, Mitsubishi, Nordea, Royal Bank of Canada, RBS, Societe Generale, UBS, Unicredito, Wells Fargo.

66.1

64.1

61.4

59.7

56.354.7 54.1

49.7

45.544.6

41.742.9

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 9M'10

Efficiency as a goal: we believe in improving our efficiency, year after year

Santander’s model17

18

Index

Santander Brasil

Brazilian Economy and Financial System

Santander Group

Annexes

-Overview

-Results

- Liquidity and Funding

19

Santander Brasil Overview

The only international retail bank among the top 5 largest banks in Brazil

With 3,696 branches nationwide

Over 24 million Customers

3rd largest Brazilian private bank

Acquisition of two large banks in Brazil (Banespa in 2001, and Banco Real in 2007) Integration converted in

profitability

Proven risk management

Approvals, monitoring and control of risks are coordinated worldwide within the Santander

Group

Provide a broad range of commercial banking products

Top universal

bank franchise

in Brazil

Focus on

Commercial

banking

Risk and asset

quality

management

Solid franchise

in Brazil

through a

successful

process of

acquisition

20

Santander Brasil Overview

1. Source: Bloomberg – 12/31/2010

Main financial figures

Standard & Poor’s BBB- (stable)

Moody’s* Baa3 (stable)

Fitch BBB (positive)

* Long- term deposits rating

Sound credit ratings

Profit before Tax

Commercial

Banking

64%

Global

Wholesale

Banking

28%

Asset

Management

& Insurance

8%

Santander Brasil rank among the largest banks by market cap¹ in the world

59.5 54.1 52.0 51.7 51.6 51.4 50.0 49.6 48.2 47.7

Ba

nk O

f

No

va

Sc

otia

Ba

nc

o d

o

Bra

sil

Na

tio

na

l

Au

stra

lia

US B

an

co

rp

Sa

nta

nd

er

Bra

sil

Ba

nk O

f

Co

mm

un

ic

atio

ns

Su

mito

mo

Mitsu

i

Ba

rcla

ys

De

uts

ch

e

Ba

nk

Cre

dit

Su

isse

US$ Bi llion

28º 29º 30º 31º 32º 33º27º26º25º24º

Focus on Commercial banking US$ million 2010 Y-o-Y

Assets 225.741 18,6%

Loans 96.739 16,0%

Funding ² from client 92.332 8,6%

Funding ² from client+ AUM 159.415 10,5%

Net profit 4.198 34,0%

Profit before tax

2010

2. Demand Deposits + Time Deposits + Savings + Debentures + Real Estate Credit Notes (LCI) and Agribusiness Credit Notes (LCA)

Santander is the 3rd largest Brazilian private bank in total assets, with a market share¹ in loans of 11%

Strong distribution platform…

Market shareNumber of branches

December/2010

South: 17% of GDP

Market Share: 9%

Northeast: 13% of GDP

Market Share: 7%

Southeast: 56% of GDP

Market Share: 16%

Middle-west: 9% of GDP

Market Share: 6%

North: 5% of GDP

Market Share: 5%

21

Total Country

Market Share: 12%

+10.9 million current accounts², an increment of 661 thousand current

accounts in 12 months

Opening of 110 new branches in 12 months

Bank with one of the highest numbers of point of sales in South/Southeast (73% of GDP)

Source: The Brazilian Central Bank and IBGE. GDP date: 2008

1. Santander’s market share in total loans of private sector: 17% (Dec/10)

2. Current accounts within 30 days, according to Central Bank as of dec/2010

• 2,201 Branches

• 1,495 Mini Branches

• 18,312 ATM’s

Santander Brasil is a top universal bank franchise in Brazil

Construction of a franchise which is within the largest Brazilian banks22

Integration Process - Status23

Aug/08 Jun/10 1H11Dec/10

95% of volume

Unified Customer Services

Risk Management, Human Resources, Marketing

Auditing financial Control, Compliance, etc.

Centralized areas integrated 2

Senior Management Integrated1

GB&M, Corporate and Middle

Wholesale, Private & Asset integrated

ATMs platform

Upgrade on branches infrastructure

ATMs integrated

Insurance System

3

5

6

Credit card system4

New commercial model7

Re-brandingVI8

9

Tests and Simulations 10

Re-branding

Technology migration

1st and 2nd Stages concluded 3rd Stage

24

1. Includes: Credit Portfolio and Credit Guarantees, Securities and Derivatives Financial Instruments

2. Includes acquired portfolio

3. Vehicles (Cars, Motorcycles), Large vehicles and Others: Clubcard, CVC.

Total Credit

Santander Loan Portfolio

2010 Loan Portfolio Breakdown by Segment (US$ Billion) – Dec/10

Leasing/Auto

Loans¹

4.5%

Credit Card

19.5%

Payroll

Loans²

25.0%Mortgages

12.1%

Agricultural

Loans

5.1%

Personal

Loans/Others

33.8%

Leasing /

Auto Loans

3.7%

Construction

Loans

6.5%Trade Finance

24.0%

On-lending

9.8%

Agricultural

Loans

2.5%

Working

capital /

Others

53.5%

Total: US$ 49,8 billion

Individuals¹

32%

Consumer

finance

17%

SMEs

24%

Corporate

27%

Total: US$ 96,7 bi

Total Loan Portfolio (US$)

Dec/10

2.8%

11.5%

16.0%

23.8%

29.8%

Largest debtor

10 largest

20 largest

50 largest

100 largest

Dec/10

Credit Portfolio Concentration¹ – Risk (%)Credit Portfolio Concentration¹ – Risk (%)

Vehicles & Motorcycles

83,8%

Large8,6%

Consumer Credit 7,2%

Other 0,4%

Total: US$ 16,2 billion

Individuals

Total: US$ 30,7 billion

Corporate + SMEs Consumer Finance³

25

2010 2009

Y-o-Y

Variation

Q-o-Q

Variation

Individuals 30,717 26,029 18.0% 5.6%

Consumer Finance 16,249 15,124 7.4% 1.9%

SMEs 23,080 18,948 21.8% 7.1%

Corporate 26,693 23,284 14.6% 1.9%

Total IFRS 96,739 83,385 16.0% 4.3%

Others Credit Risk

Transactions¹4,624 1,946 137.6% 38.5%

Expanded Credit

portfolio¹101,363 85,331 17.2% 4.0%

Expanded Credit

portfolio¹ including

acquired portfolio²

103,893 86,669 19.9% 5.2%

Business - Portfolio Evolution – IFRS

US$ billion US$ million

83.4 84.3 88.3 92.8 96.8

4.1%

1.1%

4.7% 5.1%4.3%

-1.5%

0.5%

2.5%

4.5%

6.5%

8.5%

-

20.0

40.0

60.0

80.0

100.0

dec.09 mar.10 jun.10 sep.10 dec.10

Q-o-Q Var.

16.0%

4.3%

1. Loans for the year 2009 have been reclassified for comparison purposes with the current period, due to re-segmentation of clients occurred in 2010

2. Portfolio acquired from other banks

26

Profitability and asset quality levels

Coverage Ratio IFRS²Delinquency IFRS³ (%)

1) Net interest income (including dividends on equity securities) divided by average interest earning assets.

2) Allowance for Loan Losses / nonperforming loans for over 90 days + performing loans with high delinquency risk

3) Nonperforming loans for over 90 days + performing loans with high delinquency risk / total managerial loans

Net Interest Margin¹

7.9%8.8%

2009 2010

9.38.8

8.2 7.9 7.6

5.3 5.3 5.14.5 4.3

7.2 7.0 6.66.1 5.8

4Q09 1Q10 2Q10 3Q10 4Q10

Individuals Corporate Total

101.7% 102.8% 101.7% 101.4% 98.3%

4Q09 1Q10 2Q10 3Q10 4Q10

27

2010 2009

Y-o-Y

Variation

Q-o-Q

Variation

Demand 9,719 9,122 6.5% 8.8%

Savings 18,259 15,194 20.2% 8.6%

Time 41,523 45,653 -9.0% 4.5%

Others¹ 22,831 15,040 51.8% 2.1%

Funding from

Clients92,332 85,009 8.6% 5.1%

AUM 67,083 59,292 13.1% 3.8%

Total 159,415 144,301 10.5% 4.5%

Deposits and Assets Under Management (AUM)

US$ billion

US$ million

1. Debentures repurchase agreement, Real Estate Credit Notes (LCI) and Agribusiness Credit Notes (LCA)

85.0 80.6 81.8 87.8 92.3

59.3 64.2 66.0 64.7 67.1

144.3 144.8 147.8 152.5 159.4

dec.09 mar.10 jun.10 sep.10 dec.10

AUM Funding from Clients

4.5%

10.5%

Demand

6%

Savings

11%

Time

26%

Others¹

14%

AUM

42%

28

Index

Santander Brasil

Brazilian Economy and Financial System

Santander Group

Annexes

-Overview

-Results

- Liquidity and Funding

29

US$ Billion 2010 2009 Y-o-Y

Net Interest Income 13.702 12.606 8,7%

Net Fee 3.886 3.547 9,6%

Other Operating Income 768 983 -21,8%

Total Income 18.356 17.136 7,1%

General expenses¹ (7.090) (6.935) 2,2%

Allowance for loan losses (4.682) (5.677) -17,5%

Net Provisions/Others (1.055) (548) 92,7%

Net profit before tax 5.530 3.976 39,1%

Income tax (1.332) (843) 57,9%

Net profit 4.198 3.132 34,0%

Income Statement – IFRS

1. Includes depreciation and amortization.

30

Santander Brazil Performance Ratios - IFRS

1. General Expenses excluding amortization / Total Revenue excluding Cayman hedge

2. Net Profit / Average Assets

3. Excludes goodwill on acquired companies (Banco Real and Real Seguros Vida e Previdência)

BIS³ (%)ROAE (adjusted)³ (%)

19.316.9

2009 2010

-2.4 p.p.

25.6%22.1%

2009 2010

-3.5 p.p.

ROAA²(%)

1.8%

2.2%

2009 2010

0.4 p.p.

36.3 34.8

2009 2010

-1.5 p.p.

Efficiency Ratio¹ (%)

15,1%

11,0%

Average Peers*

Current Minimum Requirement

Average Banco do Brasil, Itaú Unibanco Bradesco (sep-10)

31Total Risk-Based Capital Ratio

Source: Bloomberg – 01.27.2011

BIS Ratio %

Santander x Major Banks (including Local Institutions)

32

Index

Santander Brasil

Brazilian Economy and Financial System

Santander Group

Annexes

-Overview

-Results

- Liquidity and Funding

33Financing Strategy: we are managing our balance sheet in a

very PRUDENT / CONSERTIVE way

Santander’s basic liquidity management principles

Decentralized...but coordinated...action

Diversification: market; maturity; currency; instrument

Limited short term funding

Limited intra-group funding (principle of

autonomy in the context of the “Living Wills”)

34Financing Strategy

Decentralized…but coordinated…actions

Each subsidiary has its own rating…and can access the market in

different currencies, products and investor bases

35

16%

7%

7%

21%

14%

46% 5%

56%

58%

Conservative Balance Sheet Management: Liquidity

The local balance sheet should be self-

funded.

No liquidity “carry trade”.

Focus on retail and stable funding:

stability and long tenor.

Santander Brasil reliance in

international funding is not

considerable (11,1% of the total

balance sheet)

Liquidity buffer based on stress

results.

No refinancing “peaks”.

Proforma Data

*Defered tax assets, Plant, property and equipment;Investment in affiliates, Prepaid expenses

** Provision:Tax; Labour; Civil

*** Data does not include double count which inflate assets and liabilities in the same proportion

1 – Managerial Balance Sheet used for liquidity management.

Low Liquidity Risk

Key principlesBalance sheet: liquidity ¹

Other*

Reserve

Requirements

+ Others***

Government

Bonds

Credits +

Similars Deposits

raised by

business

lines

63%

Other**

Debt issued

Equity

36Liquidity Firewall

The Central Bank

of Brazil has a

close and

rigorous

supervision.

Supervision

Limited

Regulation: max.

95% of Profits (BR

GAAP).

Santander: 80-85%

(BR GAAP) and

50% (IFRS).

Dividend Policy

It is forbidden lend money to Parent Company

(Lei 4.595/64; Lei 7.492/86; MNI 02-01-16).

In Brazil it's a white-collar crime.

The Brazilian Law

Independent

subsidiaries in terms

of capital and liquidity.

Decentralized Model

There is a Policy for

Transactions with

Related PartiesBylaws are designed to

protect shareholders.

Corporate Governance

37

Santander Model

(*) Institutional Funding

98105

Dec-09 Dec-10

Loans / Deposits

%%

15

1

Dec-09 Dec-10

Short Term Funding (*) / Total Funding (*)

%%

%

%

Low Liquidity Risk

Metrics are used in order to control

funding maturity concentration and/or

funding providers.

As long as market conditions /

instruments allow, strive to match

assets and liabilities.

Santander has a formal contingency

funding plan to be held as insurance

against a range of liquidity stress

scenarios.

Continuous and closer monitoring of

liquidity used by various business

units.

Key principles

38

Santander Brasil Capital Markets funding is carried out through a

diversified approach by markets, tenor and instruments

Short Term

• EuroCD: 1 billion Programme (Reg. S Notes only)

Medium and Long Term

• Eurobond market: Senior transactions in all major currencies through a

US$ 3,5 billion EMTN Programme (Reg S and 144-A). Structured and

Private Placements are also issued under the Programme.

• Securitization of Payment orders (future flows) – MT103 and MT202

through established programme. Debt Service Coverage Ratio is

currently above 90 times. Rated A2 Moody’s / A- S&P / A Fitch.

39

Index

Santander Brasil

Brazilian Economy and Financial System

Santander Group Overview

Annex

40

Quarterly Managerial¹ Income Statement – IFRS

US$ million

1. Does not consider the fiscal effect of Cayman hedge

2. Includes provision for tax contingencies and legal obligations

3. Includes recovery of credits written off as losses

4. Exchange rate of 1,7585, Dec/11

Income Statements 4Q09 1Q10 2Q10 3Q10 4Q10

- Interest and Similar Income 5.596 5.276 5.595 6.030 6.363

- Interest Expense and Similar (2.270) (1.959) (2.260) (2.597) (2.746)

Interest Income 3.327 3.317 3.335 3.433 3.617

Income from Equity Instruments 5 2 8 1 18

Income from Companies Accounted for by the Equity Method 3 6 7 6 6

Net Fee 947 922 972 1.010 982

- Fee and Commission Income 1.074 1.047 1.097 1.154 1.157

- Fee and Commission Expense (126) (125) (125) (144) (175)

Gains/Losses on Financial Assets and Liabilities and Exchange Rate Diferences 174 346 165 268 133

Other Operating Income (Expenses) (34) (26) (34) (60) (78)

Total Income 4.422 4.568 4.454 4.659 4.676

General Expenses (1.645) (1.510) (1.577) (1.620) (1.679)

- Administrative Expenses (809) (739) (772) (781) (724)

- Personnel espenses (836) (771) (806) (839) (954)

Depreciation and Amortization (151) (163) (167) (176) (198)

Provisions (net)² (274) (358) (165) (383) (217)

Impairment Losses on Financial Assets (net) (1.208) (1.369) (1.259) (1.034) (1.033)

- Allowance for Loan Losses³ (1.221) (1.367) (1.280) (1.030) (1.005)

- Impairment Losses on Other Assets (net) 13 (2) 21 (4) (27)

Net Gains on Disposal of Assets 19 67 27 20 (34)

Net Profit before taxes 1.163 1.235 1.313 1.466 1.516

Income Taxes -258 -233 -309 -365 -425

Net Profit 905 1.003 1.004 1.100 1.091

41

Balance Sheet - Total Assets – IFRS

US$¹ million

1. Exchange rate of 1,6597, Dec/10.

Assets Dec-09 Mar-10 Jun-10 Sep-10 Dec-10

Cash and Balances with the Brazilian Central Bank 16.430 22.194 25.513 32.151 34.223

Financial Assets Held for Trading 12.120 13.938 21.632 14.303 14.955

Other Financial Assets at Fair Value Through Profit or Loss 9.817 9.564 9.769 10.041 10.809

Available - for- Sale Financial Assets 27.960 22.403 25.655 24.479 28.442

Loans and Receivables 91.681 90.380 94.477 101.976 104.903

- Loans and advances to credit institutions 14.598 12.249 12.220 14.925 13.652

- Loans and advances to customers 83.151 84.159 88.153 92.784 96.789

- Impairment losses -6.067 -6.028 -5.896 -5.733 -5.538

Hedging derivatives 98 80 64 63 70

Non-current assets held for sale 103 25 56 52 40

Investments in associates 252 255 258 265 224

Tangible Assets 2.231 2.311 2.396 2.538 2.722

Intangible Assets: 19.050 19.032 19.058 19.080 19.258

- Goodwill 17.059 17.059 17.059 17.059 17.059

- Others 1.992 1.973 1.999 2.021 2.199

Tax Assets 9.507 8.938 9.188 9.193 8.943

Other Assets 1.128 1.307 1.156 1.339 1.153

Total Assets 190.379 190.425 209.222 215.479 225.741

42

Balance Sheet – Total Liabilities and Equity – IFRS

US$¹ million

1. Exchange rate of 1,6597, Dec/10.

2. Includes provision for pension and contingencies

Liabilities Dec-09 Mar-10 Jun-10 Sep-10 Dec-10

Financial Liabilities Held for Trading 2.672 2.714 2.813 3.021 2.883

Other Financial Liabilities at Fair Value Through Profit or Loss 1 1 1 - -

Financial liabilities at amortized cost 122.653 122.612 140.009 143.314 152.643

- Deposits from the Brazilian Central Bank 145 70 - - -

- Deposits from credit institutions 12.626 14.516 28.791 24.921 25.542

- Customer deposits 90.040 88.743 90.606 96.057 101.192

- Marketable debt securities 6.892 6.791 7.331 9.004 12.103

- Subordinated liabilities 6.811 5.938 6.075 5.683 5.841

- Other financial liabilities 6.138 6.554 7.207 7.650 7.964

Hedging derivatives 6 22 25 10 -

Liabilities for Insurance Contracts 9.355 9.702 10.058 10.781 11.835

Provisions² 5.712 5.953 5.822 5.971 5.661

Tax Liabilities 5.698 5.131 5.543 6.054 6.345

Other Liabilities 2.547 1.674 1.800 2.297 2.172

Total Liabilities 148.645 147.810 166.070 171.448 181.538

Shareholders' Equity 41.397 42.218 42.744 43.597 43.726

Minority Interests 1 1 2 4 5

Valuation Adjustments 337 397 406 430 472

Total Equity 41.734 42.616 43.152 44.031 44.203

Total Liabilities and Equity 190.379 190.425 209.222 215.479 225.741

Delinquency Over 90¹ (%) NPL Over 60² (%) Coverage Ratio Over 90³

43

7.87.2

6.76.2

5.8

4.23.7

3.02.5 2.2

5.95.4

4.74.2

3.9

4Q09 1Q10 2Q10 3Q10 4Q10

Individuals Corporate Total

113%120% 128%

133% 137%

4Q09 1Q10 2Q10 3Q10 4Q10

9.28.7

8.07.4

6.9

4.7 4.4

3.62.9 2.7

6.86.4

5.65.0

4.7

4Q09 1Q10 2Q10 3Q10 4Q10

Individuals Corporate Total

Quality of Loan Portfolio - BR GAAP

1. Nonperforming loans over 90 days / total loans BR GAAP

2. Nonperforming loans over 60 days / total loans BR GAAP

3. Allowance for Loan Losses / (nonperforming loans for over 90 days + performing loans with high delinquency risk)

3 Board Members of Grupo Santander Spain

The Bank is managed by the Board of Directors and the Executive Board, supported by specialized committees

Banco Santander believes that a good corporate governance is a competitive advantage and strategic element supported by two pillars: shareholder rights and transparency

In line with the corporate governance best practices, BancoSantander’s units are listed in BM&FBOVESPA and in the NYSE

Level 2 of BM&FBOVESPA with 100% of Tag Along

Board of Directors¹

3 Executive Board Members

3 Independent Board Members

44

Corporate Governance

1 Data as of December, 2010

Santander Brazil Ownership Structure

Date: As of 10/22/2010

45

99.11%

(V/T)

99,99%

(V/T)

100%

(V/T)

34.7%(T)

35,2%(V)

46.6%(T)

46,8%(V)

BANCO

SANTANDER S.A.

(SPAIN)

BANCO

SANTANDER

(BRASIL) S.A.

GRUPO

EMPRESARIAL

SANTANDER S.L.

SANTANDER

SEGUROS S.A.

STERREBEECK

B.V.

MINORITY

SHAREHOLDERS

0.2%(T)

0,2%(V)

18.4%(T)

17,7%(V)

Note: “V” denotes percentage of voting shares; “T” denotes percentage of total share capital

Santander Group Controls 81,6% of Santander Brazil

Santander Brazil’s shares are listed in NYSE and in the Brazilian stock, mercantile and futures exchange BM&FBOVESPA

Investor Relations

Juscelino Kubitscheck Avenue 2235 10th floor

São Paulo | SP | Brazil | 04543-011

Tel. (55 11) 3553-3300

e-mail: ri@santander.com.br