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TRANSCRIPT
BANCO DO BRASIL
3rd Quarter
2011
Disclaimer
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.
(*) Accumulated 12 months. Source: IBGE
(***) 12 months. Source: CAGED
(**) End of period. Source: Central Bank
(****) 12 months average. Source: IBGE
4.5
5.9
4.3
5.9
7.3
2007 2008 2009 2010 Sep/11
Price Index IPCA* - %
11.3
13.8
8.8
10.812.0
2007 2008 2009 2010 Sep/11
Interest Rate Selic** - %
1,6171,452
995
2,524
1,741
2007 2008 2009 2010 Sep/11
Formal Employment*** - thousand
9.3
7.9 8.1
6.76.1
2007 2008 2009 2010 Sep/11
Unemployment Index*** - %
Economic Environment
3
6.1
5.2
-0.6
7.5
4.7
2007 2008 2009 2010 Jun/11
GDP - % Change (12 months)
34.2
41.344.4
46.448.4
2007 2008 2009 2010 Sep/11
Loan / GDP - % (12 months)
Economic environment x Banking Industry
4
(*) Loan as reference for interest rate
R$ billion
617 782 827 992 1,109
319445 588
714820
2007 2008 2009 2010 Sep/11
Loan Portfolio BI
Public Private
Brazilian Banking Industry
567 603 656799
221 228
1,054
1,2021,123
1,214
331 332
2007 2008 2009 2010 2Q11 3Q11
Disbursement*
Individual Corporate
5.5 5.3
6.9
5.5 5.6
3.2 3.2
4.3
3.2 3.5
2007 2008 2009 2010 Sep/11
Credit Risk %
Allowance / Portfolio NPL + 90 days / Portfolio
5
111.6 139.1 157.1 185.9 199.364.7
78.9107.9
138.3 155.1
45.863.3
91.9
138.8184.7
2007 2008 2009 2010 Sep/11
Individuals Loan Portfolio
Mortgage Payroll Vehicle
Distribution
Agribusiness Finance
Investor
Relations
Structuring of
Solutions
Construction of
Solutions
Human
Resources
Controlling Credit
Risk
Management
Accounting Internal
Controls
Legal
Marketing and
Comunication
Business and
Operations
Support
Individuals
Channel
Management
Micro and
Small Ventures
Private Bank
Operation of
Solutions
Government
Affairs Commercial
Adm. and Financial Unit for
Legal Procedures
Security
Management
Reestructuring
Of Operational
Assets
Tecnologia Strategy and
Organization
Executive
Secretary
Relations with Employees and
Sponsored Entities
Capital Markets
and
Investments
São Paulo
Distribution
Governance of
Related
Companies
Cards
Loans and
Financing
Pension
Management
Insurance, Pension Plans
and Capitalization
Organizational Chart
Acquisitions
and Strategic
Partnerships
Sustainable
Development
Divisions
Vice-Presidents
CEO/President
Autonomus Managing Unit
Units
VIPIN Wholesale, International Business and Private Bank
VIVAR Retail Service,
Distribution and
Operations
VIPAG Agribusiness and
Small Ventures
VIFIN Financial Mngt.,
Capital Markets
and Investor
Relations
VITEC Technology
VIPES Human
Resources and
Sustainable
Development
VICRI Internal Controls
and Risk
Management
VIGOV Government
VINEG Retail Services
Internal Audit
Board of Directors
General Shareholders Meeting
Board of Auditors
Audit Commitee
CEO/President Board of Officers
International
Business
and Affairs
6
59.1%
10.4%
15.9%
14.6%FederalGovernment
Previ
Foreign Investors
Other
Shareholding Breakdown
Free Float - %
Free Float – 30.5%
Ownership Structure
7
11.7 11.3 11.8
17.5 15.9
21.7 21.5 21.8
30.4 30.5
10.0 10.2 10.0
12.9 14.6
2007 2008 2009 2010 Sep/11
Foreign Investors Other
(*) Considering Bonus C subscription
Timeline
Mar-08
Oct-09
Oct-08
Sep -09
Oct-09
Nov-09
Nov-09
Jun-10
Mar-11
Apr-10
Acquisition of BESC
Mortgage lending
Nossa Caixa taking over
Banco Votorantim partnership
Level I ADR Program
Launching of ELO
Financial Holding Company status
Insurance restructuring
Banco Patagonia taking over
May-11
Acquisition of EuroBank - EUA
Retail Transformation Program – BB 2.0
Shares Public Offering
Post Office Bid – Banco Postal
Apr-11
Apr-11
2008
2009
2010
2011
8
Leaderships¹
%
9
22.0
26.2
19.3
21.0
Asset Management²
Deposits
Loan Portfolio
Assets
(1) Assets and Deposits: position as of Jun/11
(2) Not considering Votorantim
2
10
Distribution Network
32.3%
36.9%
28.7%
20.7%
26.3% Regional Distribution
Regional Market Share
25.2%
3Q10 Share % 3Q11 Share % Change
Midwest 421 8.4 445 8.7 24
Northeast 1,047 20.8 1,082 21.1 35
North 263 5.2 283 5.5 20
Southeast 2,269 45.0 2,297 44.7 28
South 1,037 20.6 1,031 20.1 -6
Total 5,037 100.0 5,138 100.0 101
Profitability
75.3
37.7
76.3
89.9 91.9
71.1
2.03.5 4.1 4.7
1.0 1.2
2007 2008 2009 2010Sep/10 Sep/11
Market Capitalizations - R$ billion
Dividends and Interest on Own Capital - R$ billion
5.1
8.8
10.1
11.7
2.6 2.95.9
6.7
8.5
10.7
2.6 2.6
22.5
32.530.7
27.0 26.222.6
26.124.7 25.8 24.6 25.7
20.0
2007 2008 2009 2010 3Q10 3Q11
Net Income Recurring Net Income
ROE - % Recurring ROE - %
11
Capital Structure
24.3
29.9
36.1
50.4
56.7
2007 2008 2009 2010 Sep/11
Shareholder´s Equity
10.70 10.90 10.60 11.02 10.61
4.90 4.303.20 3.06 3.44
15.6015.20
13.80 14.08 14.05
2007 2008 2009 2010 Sep/11¹
Tier I Tier II
12
BIS Ratio - %
(1) Pro-forma, considering Subordinated Letter of Credit (LF) under Central Bank analysis
367.2
521.3
708.5
811.2
949.815.6
17.2
22.020.8 21.0
2007 2008 2009 2010 Sep/11
Assets Market Share* - %
CAGR = 28.8%
(*) Source: Central Bank. Market Share, pos. as of june/2011
Assets
13
R$ billion
CAGR (%) = 25.7
26.6
3.1
21.6
30.3
33.5
(*) Included BV and BNC since 2009
Funding*
14
85.5149.6
193.5 204.7252.872.3
91.1
160.8 142.2
194.7
45.8
55.0
75.7 89.3
95.5
51.3
51.9
56.5 63.5
57.6
5.6
14.3
11.8 19.4
13.6
260.6
362.0
498.4 519.0
614.2
2007 2008 2009 2010 Sep/11
Time Deposits Money Market Borrowing Savings Demand Deposits Others
R$ billion
CAGR (%) = 30.9
32.8
13.6
44.1
34.5
(*) Included BV, BNC, provided guarantees and private securities since 2009
(**) Domestic Loan Portfolio / BI Loan Portfolio
Loan Portfolio*
15
65.597.2
144.0176.4 199.1
32.0
48.8
91.8
113.1125.8
51.9
63.7
67.1
75.7
83.8
11.4
15.1
18.4
23.0
32.9
160.7
224.8
321.4
388.2
441.616.017.1
20.1 19.8 19.3
2007 2008 2009 2010 Sep/11
Corporates Individuals Agribusiness Offshore Market Share** - %
R$ billion
(*) Included BV, BNC, provided guarantees and private securities since 2009
(**) Since 2008
CAGR (%) = 44.1
350.2**
8.4
35.0
25.1
86.6
45.9
Loans to Individuals*
16
11.9 17.6
36.545.0 49.0
3.06.7
20.7
27.431.4
11.0
14.4
21.2
23.3
25.4
3.8
7.6
9.4
11.9
11.7
2.3
2.5
2.4
2.6
3.1
0.1
1.5
3.0
5.0
32.0
48.8
91.8
113.1
125.8
2007 2008 2009 2010 Sep/11
Payroll Vehicle Finance Other Cards Overdraft Mortgage
R$ billion
(*) Included BV, BNC, provided guarantees and private securities since 2009
CAGR (%) = 28.1
38.0
34.5
Loans to Companies*
17
40.962.3
103.4125.5
136.8
24.6
34.9
44.9
50.9
62.3
65.5
97.2
148.4
176.4
199.1
2007 2008 2009 2010 Sep/11
Medium and Large Companies SME
R$ billion
CAGR (%) = 13.6
28.1
8.3
Loans to Agribusiness*
18
40.245.2 48.0 49.6
54.1
11.7
18.519.2
26.1
29.6
51.9
63.767.1
75.7
83.8
2007 2008 2009 2010 Sep/11
Individual Corporate
(*) Included BV, BNC, provided guarantees and private securities since 2009
(*) Without one-off items
(**) Average loan portfolio and 12 months expenses
(***) Net of credit recovery
Credit Risk
19
5,3806,800
11,62910,675 11,074
3.7 3.6
4.6
3.3 3.0
2007 2008 2009 2010 Sep/11
Provision expenses* - R$ million
Provision expenses / Portfolio** - %
6.4 6.1 6.2
4.84.6
2.72.4
3.3
2.3 2.1
1.4 1.5
2.2 2.4
1.4
2007 2008 2009 2010 Sep/11
Added Provision + Required / Portfolio - %
NPL + 90 days / Portfolio - %
Accumulated Loss*** in 12 Months / Portfolio - %
R$ billion
Net Interest Income
20
25.334.5
41.753.6
39.548.0
14.7
23.923.7
27.0
19.7
29.1
40.0
58.4
65.3
80.6
59.1
77.120.824.5
33.138.6
28.731.5
2007 2008 2009 2010 9M10 9M11
Loan Revenues Other Interest Revenues Net Interest Income
NIM
21
10.39.3 9.8
9.0 8.8
25.4
21.0
18.7
15.9 14.9
6.9 6.7 7.26.0 6.3
6.35.1 5.3 5.6 5.4
2007 2008 2009 2010 3Q11
Loan Operations NIM Individuals NIM
Corporates NIM Agribusiness NIM
6.4 6.1 6.0 6.0 5.8
4.7 4.8 4.4 4.2 4.0
63.9 65.8 65.3 64.967.6
00
10
20
30
40
50
60
70
0.0
2.0
4.0
6.0
8.0
10.0
12.0
3Q10 4Q10 1Q11 2Q11 3Q11
NIM (LHS)
Risk Adjusted NIM (LHS)
Funding Cost - deposits - % Selic (RHS)
%
487.9 491.0 512.5
667.1570.0
13.511.1
12.7 12.515.9
3Q10 4Q10 1Q11 2Q11 3Q11
Insurance Income - R$ million
Insurance Ratio* - %
28.6
33.630.4
33.735.9
3Q10 4Q10 1Q11 2Q11 3Q11
Revenue from Cards - R$ billion
612.5 585.7
730.4793.6
844.5362.5 372.3
407.5 421.4 438.6
3Q10 4Q10 1Q11 2Q11 3Q11
Income from Asset Management Fees - R$ million
Asset Management - R$ billion
4.1
4.3
4.1
4.4
4.7
3Q10 4Q10 1Q11 2Q11 3Q11
Fee Income - R$…
(*) Insurance Net Income / BB´s Recurring Net Income
D = 25.6%
D = 37.9%
D = 16.8%
D = 14.1%
Business diversification increases revenues
22
R$ billion
(*) Administrative Expenses / Operational Revenues, excempt from one-off items; accumulated 12 months
Cost to Income Ratio*
23
14.3 16.119.7
23.6
6.2 6.7
30.935.2
45.4
55.5
13.9 14.9
46.2 45.6 43.4 42.6 44.141.1
2007 2008 2009 2010 3Q10 3Q11
Adminstrative Expenses Operating Income Cost to Income Ratio - %
(**) Including ATM from partnerships
(*) Since 2008 including Lotericas CEF
Structure
24
81.989.0
104.0109.0 113.6
2007 2008 2009 2010 Sep/11
Employees - thousand
15.3 16.0 17.9 18.4 18.4
3.1
15.9 15.220.9 23.4
2007 2008 2009 2010 Sep/11
Points of Service - million
Banking Agents BB´s Points of Service
39.3
45.9
54.057.1 57.2
2007 2008 2009 2010 Sep/11
ATM** - thousand
91.3 91.1 92.0 93.0 92.9
2007 2008 2009 2010 Sep/11
Tansaction in Automated Channels - %
Structure
25
8.5 8.69.3
11.012.2
2007 2008 2009 2010 Sep/11
Internet Banking - million of customers
36.4%
19.8%
18.7%
7.0%
12.1%
6.1%
2010
ATM
Internet
IndividualsInternet
BusinessesCash
POS
Other
33.7%
20.8%
18.7%
7.2%
10.5%
9.2%
Sep/11
ATM
Internet
IndividualsInternet
BusinessesCash
POS
Other
Investor Relations Unit
SBS - Quadra 1 - Bloco C - Ed. Sede III - 7° floor
70073-901 - Brasília (DF)
Phone: +55 61 3102 1124
Fax: +55 61 3102 1435
bb.com.br