conference call 4q12 earnings - bbconference call 4q12 earnings . banco do brasil s.a. ......

48
1 1 Conference Call 4Q12 Earnings

Upload: others

Post on 05-Jun-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

1

1

Conference Call

4Q12

Earnings

Page 2: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

2 Banco do Brasil S.A. – Fourth Quarter 2012 Earnings 2

Disclaimer

This presentation may include references and statements, planned synergies,

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

highly 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 conditions. Banco do Brasil is not

responsible for bringing up to date any estimate in this presentation.

Page 3: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

3 3

Highlights

Adjusted Net Income reaches R$ 11.5 billion in 2012

NPL 90 ratio (2.05%) remains in decline and lower than Banking Industry

(3.64%)

Loan Portfolio¹ grows 24.9% in 12 months

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

(1) It includes private securities and guarantees provided

Diversified funding sources ensure businesses expansion: highlight to

Agribusiness Letters of Credit (LCA) and foreign borrowing

Page 4: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

4 4

Earnings Highlights

R$ million

(1) It includes Other Operating Revenues net of Other Operating Expenses, Equity in Earnings of Subsidiaries and Affiliates and Insurance, Pension Plans and Premium Bonds Earnings

On 4Q11 On 3Q12 On 2011

Operating Revenues 15,924 16,366 17,556 60,649 66,611 10.2 7.3 9.8

Net Interest Income 10,817 11,251 12,033 40,830 45,729 11.2 6.9 12.0

Fee Income 5,027 5,280 5,484 18,242 21,071 9.1 3.9 15.5

Previ 531 287 287 2,981 1,355 (45.9) (0.0) (54.5)

Other Items¹ (451) (453) (248) (1,404) (1,545) (44.9) (45.1) 10.1

Operating Expenses (10,993) (12,462) (12,510) (41,736) (48,834) 13.8 0.4 17.0

Administrative Expense (6,966) (7,123) (7,499) (24,752) (28,194) 7.6 5.3 13.9

Legal Risk (4) (463) (219) (860) (1,539) 5,928.6 (52.7) 79.0

Tax Expenses (1,132) (1,113) (1,156) (4,297) (4,451) 2.2 3.9 3.6

Allowance for Loan Losses (2,892) (3,764) (3,636) (11,827) (14,651) 25.7 (3.4) 23.9

Non Operating Result 9 60 (4) 56 107 (147.6) (107.0) 89.4

Income Taxes and Statutory Profit Sharing (1,914) (1,307) (1,861) (7,219) (6,356) (2.8) 42.4 (12.0)

Adjusted Net Income 3,025 2,657 3,180 11,751 11,528 5.1 19.7 (1.9)

Chg. %4Q11 3Q12 4Q12 2011 2012

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 5: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

5 5

Sources and Uses

(1) It includes Mortgage Bonds, Financial Letters and Debentures (EN 29)

(2) It includes Foreign Lending/Onlending, securities abroad, Subordinated Debt Issued Abroad and Hybrid Capital Instruments issued Abroad

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Dec/11 Sep/12 Dec/12 Chg. %

R$ billion Balance Share % Balance Share % Balance Share % On Dec/11 On Sep/12

Sources 576.3 100.0 664.2 100.0 690.4 100.0 19.8 4.0

Commercial Funding¹ 450.5 78.2 507.4 76.4 515.7 74.7 14.5 1.6

Total Deposits 442.4 76.8 476.1 71.7 472.1 68.4 6.7 (0.8)

Agrib. LC + Real Estate LC 7.4 1.3 22.9 3.4 34.1 4.9 358.6 48.9

Repos w/ Corporate Bonds 0.7 0.1 8.4 1.3 9.6 1.4 1,339.1 13.1

Domestic Onlending 51.0 8.8 52.8 7.9 63.5 9.2 24.6 20.4

Financial and Development Funds 4.0 0.7 4.7 0.7 5.1 0.7 27.1 9.0

Subordinated Debt 25.1 4.4 32.4 4.9 32.7 4.7 30.1 0.7

Others Commercial Papers¹ 8.7 1.5 9.5 1.4 9.9 1.4 13.1 4.0

Domestic Hybrid Debt Capital Instr. - - 8.1 1.2 8.2 1.2 - 1.4

Foreign Borrowing² 37.1 6.4 49.3 7.4 55.4 8.0 49.4 12.3

Uses 576.3 100.0 664.2 100.0 690.4 100.0 19.8 4.0

Available Funds 52.5 9.1 87.8 13.2 70.8 10.3 35.0 (19.4)

Compulsory Deposits 93.7 16.3 85.5 12.9 80.1 11.6 (14.5) (6.3)

Net Loan Portfolio (a) + (b) + (c) 430.2 74.6 490.8 73.9 539.5 78.1 25.4 9.9

Loan Portfolio (a) 423.0 73.4 480.7 72.4 525.7 76.1 24.3 9.3

Private Securities (b) 26.2 4.6 31.4 4.7 35.0 5.1 33.5 11.6

Allowance for Loan Losses (c) (19.0) (3.3) (21.3) (3.2) (21.2) (3.1) 11.5 (0.3)

Indicators - %

Net Loan Portfolio / Total Deposits 97.2 103.1 114.3

Net Loan Portfolio / Funding 95.5 96.7 104.6

Net Loan Portfolio / Total Deposits 74.6 73.9 78.1

Page 6: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

6

NIM per Segment (%)¹ Net Interest Margin (%)¹

6

Net Interest Income

(1) Annualized Figures

(2) Historical data has been reviewed due to changes in the measurement methodology

4Q12

5.8

4.8

8.1

14.8

3Q12

5.8

5.5

8.6

15.2

2Q12

5.8

6.2

9.2

16.5

1Q12

5.5

6.2

8.9

15.3

4Q11

6.1

6.1

9.0

15.5

Agribusiness NIM

Companies NIM

Loan Operations NIM

Individuals NIM

4Q12 1Q12

3.5

5.1

3Q12

3.3

5.0

2Q12

3.7

5.4

3.5

5.3

4Q11

4.0

5.5

Risk Adjusted NIM NIM

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

On 4Q11 On 3Q12

Net Interest Income² 10,817 11,251 12,033 11.2 6.9

Loan Operations Income 15,971 16,071 16,323 2.2 1.6

Funding Expenses (7,200) (6,678) (6,241) (13.3) (6.5)

Institutional Funding Expenses (584) (742) (919) 57.2 23.8

Recovery of Write-offs Loans 851 813 1,076 26.4 32.3

Treasury Income 2,779 2,639 2,235 (19.6) (15.3)

Other (1,000) (852) (441) (55.9) (48.3)

Chg. %4Q123Q124Q11

R$ million

Page 7: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

7 7

Loan Portfolio – Broad Concept¹

R$ billion

(1) It includes private securities and guarantees provided

Dec/12

580.8

273.8

152.6

108.0

46.4

Sep/12

532.3

247.1

143.8

98.4

43.0

Jun/12

508.2

234.0

139.3

95.7

39.2

Mar/12

472.9

211.4

132.7

92.4

36.3

Dec/11

465.1

210.2

130.6

89.4

35.0

Companies

Individuals

Agribusiness

Offshore

47.1%

26.3%

18.6%

8.0%

45.2%

28.1%

19.2%

7.5%

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 8: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

8 8

Organic Individuals Loan Portfolio¹ ²

R$ billion

(1) Classified Concept

(2) Does not include BV operations and acquired portfolios

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

On Dec/11 On Sep/12

Payroll 39.3 42.8 45.5 42.1 47.3 40.9 20.4 4.0

Salary Loans 15.3 16.7 17.3 16.0 17.1 14.8 11.7 (1.0)

Auto Loans 4.7 5.1 9.2 8.5 11.0 9.5 134.9 20.3

Mortgage 6.0 6.6 8.5 7.9 10.2 8.8 69.0 19.8

Credit Cards 13.1 14.3 13.5 12.5 15.8 13.6 20.4 16.6

Consumer Finance 5.7 6.2 5.9 5.5 5.9 5.1 3.9 (0.3)

Overdraft 2.6 2.8 2.8 2.6 2.5 2.1 (3.7) (12.3)

Other 5.2 5.6 5.3 4.9 5.8 5.0 12.6 10.2

Individuals Loan Portfolio 91.8 100.0 108.0 100.0 115.6 100.0 25.9 7.1

Chg. %Dec/11 Sep/12 Dec/12Share % Share % Share %

Page 9: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

9 9

Loans to Companies – Broad Concept¹

R$ billion

(1) It includes private securities and guarantees provided

On Dec/11On Sep/12

Working Capital 113.1 53.8 132.4 53.6 153.3 56.0 35.6 15.8

Investment 37.9 18.0 39.8 16.1 44.7 16.3 17.9 12.3

Trade Finance 14.6 6.9 18.5 7.5 15.4 5.6 5.6 (16.7)

Corporate Bonds & Notes 25.0 11.9 31.2 12.6 34.5 12.6 37.6 10.4

Guarantees 13.8 6.6 17.8 7.2 17.6 6.4 27.1 (1.3)

Other 5.8 2.7 7.4 3.0 8.4 3.1 46.4 13.9

Companies Loan Portoflio 210.2 100.0 247.1 100.0 273.8 100.0 30.3 10.8

Chg. %Dec/11 Share % Sep/12 Share % Dec/12 Share %

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 10: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

10

NPL 90 (%) Agribusiness Loan Portfolio1 (R$ billion)

10

Agribusiness

(1) It includes private securities and guarantees provided

63.8

64.3

31.3

Mar/12

92.4

62.7

66.5

31.8

Jun/12

95.7

Dec/12

108.0

62.5

74.7

33.3

Sep/12

98.4

63.6

60.3

32.2

Dec/11

89.4

62.8

57.9

31.5

Market Share - % Individuals Companies

0.63

Dec/12 Sep/12

0.48

Jun/12

0.51

Mar/12

0.62

Dec/11

0.72

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 11: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

11

Provisions / Non-performing Loans +90 days NPL 90

11

Delinquency and Coverage Ratios

%

Dec/12

1.77

2.05

3.64

Sep/12

1.81

2.19

3.77

Jun/12

1.77

2.19

3.78

Mar/12

1.78

2.22

3.74

Dec/11

1.81

2.16

3.60

BB ex Banco Votorantim

BB Consolidated

Banking Industry

Sep/12 Dec/12

151.9

196.5

217.3

152.6

202.5

232.2

Jun/12

151.1

202.1

238.1

Mar/12

152.4

204.4

245.0

Dec/11

157.3

207.6

244.3

BB Consolidated

Banking Industry BB ex Banco Votorantim

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 12: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

12

Delinquency per Segment¹

Ind

ivid

ual

s C

om

pan

ies

Agr

ibu

sin

ess

(1) Does not include Banco Votorantim operations

%

5.21

3.10 2.95

4.90

2.60

4.20

2.76

4.74

2.76

4.90

3.56

2.12

3.21

1.98

3.44

1.89

2.99

2.18

3.16

2.26

Dec/12

0.63

0.96

Sep/12

0.48

0.95

Jun/12

0.51 0.72

Mar/12

0.62 0.87

Dec/11

0.72

1.14

91.5 91.7 92.2

91.1 91.1

94.8 95.1 95.2 95.2 95.3

95.2 94.6 94.5 93.9 94.3

AA – C Risk NPL15 NPL90

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 13: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

13 13

BV – Lightweight Vehicles1 : Production per Business Channel and Delinquency

(1) Comprised of CDC veículos (Autos Consumer Credit) and vans

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Ap

r/1

1

5.2

0.6

1.0

Mar

/11

4.7

0.5

0.9

Feb

/11

4.2

0.5

0.9

Jan

/11

3.7

0.4

0.8 0.7

Jun

/12

11.0

0.2

0.6

May

/12

11.0

0.2

0.7

Ap

r/1

2

10.9

0.1

0.6

Mar

/12

10.8

0.2

Dec

/12

8.4

0.2

0.8

No

v/1

2

9.0

0.2

0.8

Oct

/12

9.7

0.2

0.7

Sep

/12

10.2

0.1

0.6

Au

g/1

2

10.2

0.2

0.7

Jul/

12

10.8

0.2 1.1

10.3

9.0

0.6 0.5

0.3 0.3 Ja

n/1

2

Dec

/11

9.5

Feb

/12

0.2

No

v/1

1

0.7 0.6

7.9

0.3

0.6

Oct

/11

7.5

0.5

0.8

Sep

/11

6.9

0.6

1.0

Au

g/1

1

6.5

0.8

1.1

Jul/

11

6.4

0.7

1.0

Jun

/11

6.0

0.6

1.0

May

/11

5.7

0.7

NPL 90 (%) Car dealers (R$ billion) Multi-brand car dealers (R$ billion)

Page 14: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

14

Allowance for Loans Losses Expenses (consolidated– R$ million) NPL + 90 days (%)

Auto Loans Portfolio Vintage

14

Banco Votorantim – Asset Quality

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Allowance for Loans Losses Expenses (Autos – R$ million)

59% 57%52%

47%

Dec/12

15%

38%

Sep/12

19%

29%

Jun/12

22%

21%

Mar/12

26%

15%

up to Jun/10 from Jul/10 to Sep/11 after Sep/11

722

1Q12

1,216 1,082

-33.3% -40.6%

1,210

-40.3%

3Q12 4Q12 2Q12

-32.8% -25.9% -20.0%

4Q12

1,066

3Q12

1,332

2Q12

1,438

1Q12

1,587

8.4

Jun/12

8.0

Sep/12 Mar/12

8.2 7.0

Dec/12

Page 15: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

15 15

Administrative Expenses

R$ million

Chg. %

On 4Q11 On 3Q12 On 2011

Personnel Expenses (3,954) (4,001) (4,211) (13,943) (15,777) 6.5 5.2 13.1

Other Administrative Expenses (3,012) (3,122) (3,288) (10,809) (12,417) 9.2 5.3 14.9

Telecommunications and Data Processing (556) (543) (574) (2,022) (2,224) 3.2 5.6 10.0

Amortization and Depreciation (331) (340) (232) (1,293) (1,271) (30.1) (31.9) (1.7)

Security, Guard, and Transport Services (450) (532) (536) (1,622) (2,056) 19.1 0.9 26.8

Expenses with Premises and Equipment (448) (471) (517) (1,625) (1,896) 15.4 9.9 16.7

Marketing and Public Relations (263) (170) (239) (683) (724) (9.2) 40.8 5.9

Expenses with Outsourced Services (525) (617) (671) (1,974) (2,436) 27.9 8.7 23.4

Other Administrative Expenses (439) (449) (520) (1,590) (1,811) 18.4 15.6 13.9

Administrative Expenses (6,966) (7,123) (7,499) (24,752) (28,194) 7.6 5.3 13.9

4Q11 3Q12 4Q12 2011 2012

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 16: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

16 16

Adjusted Administrative Expenses

R$ million

(1) Managerial measurement

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Chg. %

On 2011

Administrative Expenses (24,752) (28,194) 13.9

Banco Patagonia 377 658 -

Mapfre 358 563 -

Banco Postal - 524 -

Adjusted Administrative Expenses¹ (24,017) (26,449) 10.1

2011 2012

Page 17: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

17

12-months Ratio Quarterly Ratio

17

Cost to Income Ratio¹

(1) Administrative Expenses / Operating Revenues –Information reviewed due to methodology changes. Data from the Income Statement with Reallocations

%

45.3

4Q12

43.4

3Q12

44.3

2Q12

42.3

1Q12

42.8

4Q11 Dec/12

43.2

Sep/12

43.6

Jun/12

43.4

Mar/12

43.2

Dec/11

42.9

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 18: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

18 18

BIS Ratio¹

%

(1) In January/13 Banco do Brasil issued subordinated financial letters in the country (R$ 5.2 billion) and as hybrid instrument of capital abroad (US$ 2.0 billion). Estimates indicates an impact in the BIS Ratio of 128 bps

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

10.5

3.5 4.3

10.7 10.6

Sep/12 Jun/12

10.6

14.2

Mar/12

4.1 3.6

14.8 14.3

14.8

Dec/12

10.9

3.3

Dec/11

14.0

Tier II

Tier I

Page 19: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

19 19

2012 Guidance

(1) It considers credit acquired with recourse according to CMN 3.533/2008 Resolution

(2) 12-month Expenses with Provision for Loan Losses / Average classified Loan Portfolio in the same period

Adjusted Return on Equity 17% - 20% 18.7%

Net Interest Income 10% - 14% 12.0%

Total Deposits 14% - 18% 6.7%

Domestic Loan Portfolio¹ 17% - 21% 23.1%

Individuals¹ 19% - 23% 16.3%

Companies 18% - 22% 29.5%

Agribusiness 13% - 16% 20.7%

Allowance for Loan Losses / Loan Portfolio² 3.1% - 3.5% 3.2%

Fee Income 13% - 18% 15.5%

Administrative Expenses 8% - 12% 13.9%

Tax Rate 31% - 34% 27.6%

2012 Performance2012 Guidance

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

4Q12 Guidance 4Q12 Performance

Allowance for Loan Losses R$ 3.5 - 3.7 billion R$ 3.636 billion

Page 20: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

20 20

2013 Guidance

(1) Adjusted ROE estimated for 2013 considers estimated shareholders’ equity, according to current legislation on December 31, 2012

(2) Includes total deposits, Agribusiness Letters of Credit - LCA, Mortgage Bonds - LCI and Repurchase Agreements Operations with Private Securities

(3) Domestic Loan Portfolio, in Broad Concept, includes private securities and guarantees

(4) Expenses with allowance for loan losses (PCLD) of the last twelve months/average portfolio of the same period

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Adjusted Return on Equity¹ 14% - 17%

Net Interest Income 7% - 10%

Commercial Funding² 15% - 19%

Domestic Loan Portfolio³ - Broad Concept 16% - 20%

Individuals 18% - 22%

Companies 16% - 20%

Agribusiness 13% - 17%

Allowance for Loan Losses⁴ 3.0% - 3.4%

Fee Income 10% - 14%

Administrative Expenses 7% - 10%

2013 Guidance

Page 21: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

21

Investor Relations Unit

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

70073-901 - Brasília (DF)

Telephone: +55 (61) 3102 1124

Fax: +55 (61) 3102 1435

bb.com.br/ir

[email protected]

21

Contacts

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 22: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

22 22

Appendix

23. One-Off Items

24. Foreign Borrowing

25. Loans to Individuals – Broad Concept

26. Individuals Loan Portfolio

27. Individuals Loan Portfolio – Average Rates/Tenor

28. Expenses with Provision for Loan Losses

29. Individuals Auto Loan Portfolio - (BB Production)

30. Banco Votorantim – Auto Loans Portfolio

31. Loans to Companies – Broad Concept

32. Loans to Companies - SME

33. Agribusiness Portfolio by Purpose

34. Agribusiness Portfolio by Credit Line

35. Agribusiness

36. Credit Risk

37. Loans to Individuals – Risk Level

38 Loans to Companies – Risk Level

39. Renegotiated Loan Portfolio

40. Agribusiness – Risk Level

41. Agribusiness Operations with/without rollover

42. Agribusiness – Regular and Restructured Transactions

43. Funding

44. Fee Income

45. Actuarial Assets

46. Actuarial Assets

47. Distribution Network

48. Alternative Channels: MaisBB Network

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 23: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

23 23

One-Off Items

R$ million

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Adjusted Net Income 3,025 2,657 3,180 11,751 11,528

(+) One-Off Items (53) 70 787 375 678

Sale of Investments - - - 169 -

Economic Plans (95) (255) (167) (103) (968)

Tax Efficiency - 244 - 386 244

Reversal of Additional Allowance for Loan Losses - - 476 - 699

Sale of Real Estate - - 1,103 - 1,103

Tax Eff. and Stat. Profit Sharing on One-Off Items 42 81 (625) (78) (401)

Net Income 2,972 2,728 3,967 12,126 12,205

Adjusted ROAE (%) 22.9 18.1 21.2 21.7 18.7

ROAE (%) 22.5 18.6 27.0 22.4 19.8

4Q11 3Q12 4Q12 2011 2012

Page 24: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

24 24

Foreign Borrowing

US$ billion +30.1%

Dec/12

45.0

10.9

17.5

11.6

3.2 1.7

Sep/12

42.3

10.5

15.4

11.3

3.1 2.0

Dec/11

34.6

10.0

11.0

7.3

3.1

3.2

Interbanking

Bond Issues

Companies

Individuals

Repos

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 25: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

25 25

Loans to Individuals – Broad Concept¹

R$ billion

(1) It includes guarantees provided

On Dec/11 On Sep/12

Payroll 51.2 39.2 57.1 39.7 58.6 38.4 14.3 2.7

Salary Loans 15.3 11.7 17.3 12.0 17.1 11.2 11.7 (1.0)

Vehicle Finance 31.3 24.0 33.0 23.0 35.9 23.5 14.5 8.6

Mortgage 6.0 4.6 8.5 5.9 10.2 6.7 69.0 19.8

Credit Cards 13.2 10.1 13.6 9.5 15.9 10.4 20.4 16.5

Consumer Finance 5.7 4.4 5.9 4.1 5.9 3.9 3.4 (0.3)

Overdraft 2.6 2.0 2.8 1.9 2.5 1.6 (3.7) (12.3)

Other 5.2 4.0 5.5 3.8 6.5 4.3 25.5 17.7

Individuals Loan Portfolio 130.6 100.0 143.8 100.0 152.6 100.0 16.8 6.1

Chg. %Dec/11 Share % Sep/12 Share % Dec/12 Share %

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 26: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

26 26

Individuals Loan Portfolio

R$ billion

Loan Portfolio Acquisition

Market Share

Payroll Loan (Organic Credit Portfolio)

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

On Dec/11 On Sep/12

Civil Servants 33,525 85.3 39,152 86.1 40,859 86.4 21.9 4.4

INSS's Retirees and Pensioners 3,596 9.2 4,032 8.9 4,140 8.8 15.1 2.7

Private Sector Employees 2,170 5.5 2,294 5.0 2,319 4.9 6.8 1.1

Chg. %Dec/11 Share % Sep/12 Share % Dec/12 Share %

On Dec/11On Sep/12

Payroll loans 8.9 44.9 8.0 48.3 7.7 44.1 (13.2) (4.0)

Auto financing 10.9 55.1 8.6 51.7 9.8 55.9 (10.2) 13.8

Total 19.7 100.0 16.6 100.0 17.4 100.0 (11.6) 5.2

Chg. %Dec/11 Share % Sep/12 Share % Dec/12 Share %

Dec/11 Sep/12 Dec/12

BB Industry Share % BB Industry Share % BB Industry Share %

Payroll Loan 51.2 159.1 32.2 57.1 181.5 31.4 58.6 187.9 31.2

Mortgage 6.0 200.5 3.0 8.5 256.4 3.3 10.2 277.0 3.7

Auto financing 31.3 201.0 15.6 33.0 203.7 16.2 35.9 201.6 17.8

Page 27: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

27 27

Individuals Loan Portfolio– Average Rates/Tenor

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Dec/11 Sep/12 Dec/12

Banco do Brasil

Auto financing

Average rate - % p.m 1.58 1.29 1.26

Average term - months 29 36 36

Mortgage

Average contracted amount - R$ thousand 163.3 155.2 163.9

Average term - months 260 278 281

Payroll Loans

Average rate - % p.m 2.06 1.95 1.90

Average term - months 51 52 52

BV - Auto Loans

Average rate - % p.m 1.97 1.81 1.78

Average term - months 46 44 45

Page 28: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

28 28

Expenses with Provision for Loan Losses

R$ million

Guidance

2Q12: R$ 3.6 to 3.8 billion

3Q12: R$ 3.5 to 3.7 billion

4Q12: R$ 3.5 to 3.7 billion

Performed

R$ 3.677 billion

R$ 3.764 billion

R$ 3.636 billion

On 4Q11 On 3Q12

Banco do Brasil ex- BV (2,343) (3,098) (3,103) 32.4 0.2

Banco Votorantim (548) (666) (533) (2.8) (20.0)

Banco do Brasil Consolidated (2,892) (3,764) (3,636) 25.7 (3.4)

4Q11 3Q12 4Q12Chg. %

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 29: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

29

NPL 90 (%)

29

Individuals Auto Loan Portfolio (BB Production)

Portfolio per Risk Level (%)

Dec/12

94.4

5.6

Sep/12

94.2

5.8

Dec/11

90.0

10.0

AA-C D-H

Dec/12

5.3

0.9

Sep/12

6.0

0.9

Jun/12

6.0

1.4

Mar/12

5.7

2.1

Dec/11

5.0

2.2

Banking Industry BB

79.7% of the customers are checking account holders for more than five years

47.1% of the customers receive their salaries or pension through Banco do Brasil

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Average Term (months) 40.1 41.2

Average Down-Payment (%) 39.0 30.2

Disbursement Profile 3Q12 4Q12

Page 30: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

30

Coverage Ratio¹ 90 days NPL 90 after 4 months of granting (%)

Average Tenor and Average Down Payment Production Profile

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings 30

Banco Votorantim – Auto Loan Portfolio

44464647

4Q12

42%

3Q12

44

44%

2Q12

41%

1Q12

41%

4Q11

38%

Average tenor (months) Average down payment

16%

4Q12

100%

3Q12

100%

2Q12

100%

1Q12

100%

4Q11

84%

Other plans 60-month tenor with no down payment

0.7

Mar/12

Month of Granting

Aug/12

0.3

Jun/12

0.4

Dec/11

0.6

Sep/11

1.7

Jun/11

2.2

Mar/11

2.7

Dec/10

1.8

Sep/10

1.2

Jun/10

0.8

Mar/10

0.5

(1) Classified concept

97.7

90.8

Dec/11

84.6

Mar/12

78.9

Jun/12 Dec/12 Sep/12

104.4

Page 31: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

31

12 M

Fundo Garantidor de Operações (FGO)³

31

Loans to Companies – Broad Concept¹

Loans to Companies Breakdown ¹

30.7%

30.1%

12 M

R$ billion

(1) It includes private securities and guarantees provided

(2) Companies with annual income of up to R$ 25 million

(3) Operations Guarantee Fund

Dec/12

273.8

184.9

88.9

Sep/12

247.1

167.1

80.0

Dec/11

210.2

142.1

68.1

Medium and Large Companies Micro and Small Enterprises²

+42.1%

Dec/12

13.9

Sep/12

12.3

Dec/11

9.8

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 32: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

32 32

Loans to Companies – SME

R$ billion

Loans per Segment

Products

On Dec/11 On Sep/12

Working Capital 47.9 70.3 54.6 68.3 61.0 68.6 27.5 11.7

Investment 18.4 27.0 23.4 29.2 25.9 29.1 40.9 10.7

Foreign Trade 1.8 2.7 2.0 2.5 2.0 2.3 10.0 1.6

Total 68.1 100.0 80.0 100.0 88.9 100.0 30.7 11.2

Chg. %Dec/11 Share % Sep/12 Share % Dec/12 Share %

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

On Dec/11 On Sep/12

Manufacturing Industries 23.2 34.1 28.7 35.8 32.2 36.2 39.0 12.4

Commerce 29.2 42.9 33.1 41.4 35.9 40.3 22.8 8.4

Services Segment 15.7 23.0 18.2 22.8 20.8 23.4 33.1 14.3

Total 68.1 100.0 80.0 100.0 88.9 100.0 30.7 11.2

Dec/11Chg. %

Share % Sep/12 Share % Dec/12 Share %

Page 33: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

33 33

Agribusiness Portfolio by Purpose

R$ billion

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

On Dec/11 On Sep/12

Work. Cap. for Input Purchase 28.4 31.8 32.1 32.6 35.8 33.1 26.1 11.6

Investment 32.1 36.0 38.3 38.9 42.8 39.7 33.3 12.0

Crop Trading 4.5 5.1 4.2 4.3 5.0 4.6 10.6 19.0

Agroindustry 20.9 23.3 21.1 21.5 21.5 19.9 3.2 1.8

Other 2.8 3.1 2.0 2.0 1.8 1.7 (33.1) (6.5)

Classified Loan Portfolio 88.7 99.2 97.7 99.3 107.0 99.1 20.7 9.6

Rural Product Bills and Guarantees 0.7 0.8 0.7 0.7 1.0 0.9 40.5 38.5

Loan Portfolio - Broad Concept 89.4 100.0 98.4 100.0 108.0 100.0 20.8 9.8

Chg. %Dec/11 Share % Sep/12 Share % Dec/12 Share %

Page 34: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

34 34

Agribusiness Portfolio by Credit Line

R$ billion

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

On Dec/11 On Sep/12

Working Capital for Input Purchase 18.54 20.7 20.44 20.8 22.30 20.7 15.4 (1.0)

Trading and Industrialization of Products 21.46 24.0 21.49 21.8 21.77 20.2 7.5 0.8

Pronaf 20.07 22.5 22.35 22.7 24.23 22.4 17.4 3.0

Pronamp 7.13 8.0 9.64 9.8 11.85 11.0 61.5 12.5

FCO Rural 6.70 7.5 7.63 7.8 7.91 7.3 19.7 2.7

BNDES / Finame Rural 5.32 6.0 5.13 5.2 5.80 5.4 (12.3) 6.2

Other 9.44 10.6 10.97 11.2 13.13 12.2 34.7 6.1

Classified Loan Portfolio 88.66 99.2 97.66 99.3 106.98 99.1 17.6 3.0

Rural Product Bills and Guarantees 0.70 0.8 0.71 0.7 0.99 0.9 40.5 38.5

Loan Portfolio - Broad Concept 89.36 100.0 98.37 100.0 107.97 100.0 17.4 2.8

Chg. %Dec/11 Share % Sep/12 Share % Dec/12 Share %

Page 35: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

35 35

Agribusiness1

R$ billion Loan Portfolio per Customer Size

Insurance for Working Capital for Input Purchase

(1) Classified Concept

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Operation Contracted

Crop 11/12 Share % Crop 12/13 Share %

Working Capital for Input Purchase 10.1 100.0 12.7 100.0

Total Insured 5.8 56.8 6.8 53.0

With Proagro 3.1 30.7 3.9 30.2

With Insurance 2.1 20.4 2.7 20.8

Hedge Price 0.6 5.7 0.2 1.9

Without Insurance 4.4 43.2 6.0 47.0

Segment Dec/11 Share % Sep/12 Share % Dec/12 Share %

Mini 5.2 5.9 5.3 5.4 5.7 5.3

Small 18.3 20.7 20.4 20.9 22.2 20.8

Medium and Large Sized 33.6 37.9 40.1 41.1 46.1 43.1

Cooperatives 5.5 6.2 6.2 6.3 6.3 5.9

Businesses 26.0 29.3 25.6 26.3 26.6 24.9

Total 88.7 100.0 97.7 100.0 107.0 100.0

Page 36: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

36

Brazilian Banking Industry Banco do Brasil

36

Credit Risk

94.5%

5.5%

AA-C D-H

92.4%

7.6%

AA-C D-H

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 37: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

37 37

Loans to Individuals1 – Risk Level

R$ million

(1) Classified loan portfolio and does not consider Banco Votorantim operations.

Balance Provision Share Balance Provision Share Balance Provision Share

AA 648 - 0.6 10,442 - 8.4 25,274 - 19.0

A 26,264 131 23.5 38,740 194 31.1 26,807 134 20.1

B 55,907 559 50.1 43,262 433 34.7 48,190 482 36.2

C 18,842 565 16.9 21,755 653 17.5 22,373 671 16.8

D 2,618 262 2.3 2,913 291 2.3 2,796 280 2.1

E 999 300 0.9 934 280 0.7 1,155 346 0.9

F 600 300 0.5 550 275 0.4 545 272 0.4

G 591 414 0.5 651 456 0.5 628 439 0.5

H 5,098 5,098 4.6 5,318 5,318 4.3 5,288 5,288 4.0

Total 111,569 7,629 100.0 124,564 7,899 100.0 133,056 7,913 100.0

AA-C 101,662 1,256 91.1 114,198 1,279 91.7 122,645 1,287 92.2

D-H 9,907 6,374 8.9 10,365 6,620 8.3 10,412 6,626 7.8

Dec/11 Sep/12 Dec/12

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 38: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

38 38

Loans to Companies1 – Risk Level

R$ million

(1) Classified loan portfolio and does not consider Banco Votorantim operations.

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Balance Provision Share Balance Provision Share Balance Provision Share

AA 72,425 - 45.0 81,098 - 43.1 93,414 - 44.0

A 35,697 178 22.2 45,110 226 24.0 49,541 248 23.4

B 40,698 407 25.3 48,173 482 25.6 55,466 555 26.1

C 4,329 130 2.7 3,803 114 2.0 3,602 108 1.7

D 2,074 207 1.3 2,685 268 1.4 2,574 257 1.2

E 1,607 482 1.0 1,472 441 0.8 1,528 458 0.7

F 649 324 0.4 890 445 0.5 748 374 0.4

G 622 435 0.4 1,025 717 0.5 1,000 700 0.5

H 2,817 2,817 1.8 3,765 3,765 2.0 4,237 4,237 2.0

Total 160,918 4,981 100.0 188,020 6,459 100.0 212,109 6,938 100.0

AA-C 153,149 715 95.2 178,184 822 94.8 202,022 911 95.2

D-H 7,769 4,266 4.8 9,836 5,637 5.2 10,087 6,027 4.8

Dec/11 Sep/12 Dec/12

Page 39: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

39 39

Renegociated Loan Portfolio

R$ million

(1) It Includes the amount of R$ 24,6 million related to renegotiated rural credits as of Dec/2012 (R$22.5 million as of Dec/11)

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

BB Consolidated

4Q11 3Q12 4Q12

Credits Renegotiated 5,000 9,775 8,432

Renegotiated overdue Loans 746 602 733

Renovated 4,255 9,174 7,699

Credits Renegotiated by Delay - Changes

Initial Balance 5,948 6,473 6,862

Contracts 746 602 733

Interest Received and Appopriated (222) 86 66

Write-Off (432) (299) (395)

Overdue Renegotiated Loan Portfolio¹ 6,039 6,862 7,266

Allowance for Loan Losses Balance 3,925 4,449 4,553

NPL + 90 days 954 1,095 1,114

Indicators - %

All. for Loan Losses / Loan Portfolio 65.0 64.8 62.7

NPL + 90 days / Loan Portfolio 15.8 16.0 15.3

All. for Loan Losses Balance/NPL + 90 days 411.3 406.2 408.6

Page 40: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

40 40

Agribusiness1 – Risk Level

R$ million

(1) Classified loan portfolio and does not consider Banco Votorantim operations

Balance Provision Share Balance Provision Share Balance Provision Share

AA 19,503 - 22.0 19,566 - 20.0 19,857 - 18.6

A 16,468 82 18.6 18,981 95 19.4 22,812 114 21.3

B 39,987 400 45.1 46,951 469 48.1 52,900 529 49.4

C 7,313 219 8.2 6,842 205 7.0 6,322 190 5.9

D 2,875 287 3.2 2,796 280 2.9 2,563 256 2.4

E 566 170 0.6 652 196 0.7 721 216 0.7

F 221 110 0.2 246 123 0.3 247 123 0.2

G 271 189 0.3 260 182 0.3 242 169 0.2

H 1,456 1,456 1.6 1,363 1,363 1.4 1,320 1,320 1.2

Total 88,658 2,914 100.0 97,656 2,913 100.0 106,984 2,918 100.0

AA-C 83,270 702 93.9 92,339 770 94.6 101,891 833 95.2

D-H 5,388 2,213 6.1 5,317 2,144 5.4 5,092 2,085 4.8

Dec/11 Sep/12 Dec/12

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 41: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

41 41

Agribusiness Operations with/without Rollover1

(1) Classified Loan Portfolio

(2) NPL at AA level refers to credit with third party risk. The NPL of operations with third party risks were not included in the indicator calculation

R$ million

Sep/12 Dec/12

Portfolio without Rollover Portfolio with Rollover Portfolio without Rollover Portfolio with Rollover

Risk Balance

All. for

Loan

Losses

NPL 90² Balance

All. for

Loan

Losses

NPL 90² Balance

All. for

Loan

Losses

NPL 90² Balance

All. for

Loan

Losses

NPL 90²

AA 19,473 - 55 92 - 7 19,743 - 57 115 - 8

A 18,690 93 0 291 1 (0) 22,439 112 0 373 2 (0)

B 45,349 453 - 1,601 16 0 51,003 510 - 1,898 19 -

C 5,780 173 4 1,061 32 0 5,365 161 4 956 29 1

D 1,849 185 13 947 95 2 1,722 172 17 841 84 4

E 339 102 32 313 94 6 401 120 40 320 96 24

F 124 62 31 123 61 10 131 65 41 116 58 28

G 114 80 36 146 102 7 108 76 44 134 94 34

H 812 812 210 552 552 58 825 825 253 495 495 116

Total 92,531 1,960 326 5,126 953 83 101,737 2,042 399 5,247 876 207

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 42: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

42 42

Agribusiness – Regular and Reestructured Operations¹

R$ billion

(1) It includes private securities and guarantees provided

Dec/12

108.0

5.2

102.7

Sep/12

98.4

5.1

93.2

Jun/12

95.7

5.3

90.4

Mar/12

92.4

5.5

86.9

Dec/11

89.4

5.7

83.7 Reestructured

Regular

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 43: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

43 43

Funding

R$ billion

On Dec/11On Sep/12

Demand Deposits 62.0 9.5 61.5 8.5 74.8 10.1 20.5 21.6

Saving Deposits 100.1 15.3 112.1 15.5 117.7 15.9 17.6 5.0

Interbank Deposits 14.5 2.2 15.7 2.2 16.6 2.2 14.7 5.3

Time Deposits 265.8 40.7 286.8 39.7 263.0 35.5 (1.1) (8.3)

Judicial Deposits 77.7 11.9 85.0 11.8 86.3 11.6 11.2 1.6

Money Market Borrowing 195.2 29.9 214.4 29.7 225.8 30.4 15.7 5.3

Agribusiness Letters of Credit 7.4 1.1 22.8 3.2 34.0 4.6 358.2 49.1

Other Comercial Papers 8.7 1.3 9.6 1.3 9.9 1.3 13.8 3.9

Total 653.7 100.0 722.9 100.0 741.8 100.0 13.5 2.6

Chg. %Dec/11 Share % Sep/12 Share % Dec/12 Share %

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 44: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

44 44

Fee Income

R$ million

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Chg. %

On 4Q11 On 3Q12 On 2011

Fee Income 5,027 5,280 5,484 18,242 21,071 9.1 3.9 15.5

Credit / Debit Cards 1,084 1,189 1,279 3,926 4,739 18.1 7.6 20.7

Account Fees 1,136 1,081 1,073 4,077 4,356 (5.6) (0.7) 6.9

Asset Management Fees 829 918 883 3,197 3,582 6.6 (3.8) 12.0

Loan Fees 496 517 614 1,822 2,141 23.9 18.8 17.5

Collections 321 326 336 1,241 1,316 4.7 3.1 6.1

Billings 195 210 215 725 832 10.3 2.4 14.7

Interbank 168 174 180 640 697 7.2 3.9 9.0

Insurance, Pension and Savings Bonds 122 130 171 499 616 39.9 31.6 23.5

Capital Market Fees 96 108 112 350 454 17.3 4.3 29.9

Other 580 628 619 1,764 2,338 6.8 (1.4) 32.5

4Q11 3Q12 4Q12 2011 2012

Page 45: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

45 45

Actuarial Assets

R$ million

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

4Q11 1Q12 2Q12 3Q12 4Q12

(a) Fair Value of the Plan's Assets 133,079 133,079 133,468 133,468 152,029

(b) Present Value of Actuarial Liabilities (98,850) (98,850) (105,772) (105,772) (128,413)

(c) Surplus BB = [(a) + (b)] x 50% 17,115 17,115 13,848 13,848 11,808

(d) Amount Recognized before the Half-Yearly Accouting 13,372 13,870 14,386 14,783 16,249

Actuarial Assets (Initial Period) 12,688 13,372 13,870 14,386 14,783

Antecipated Montly Recognition 531 390 390 287 287

Contract 97 Contributions ¹ 153 108 125 110 1,178

(e) Unrecognized Amount = (c) - (d) 3,743 3,245 (537) (935) (4,441)

(f) Corridor Method - BB ² 6,654 6,654 6,673 6,673 7,601

(g) Excess = (e) - (f) - - - - -

(h) Average Remaining Work Period (half-yearly) 5 5 4 4 4

(i) Amount Recognized in Half-Yearly Adjustment= (g)/(h) - - - - -

(j) Actuarial Assets (Period End) = (f) + (i) 13,372 13,870 14,386 14,783 16,249

(1) Values do not impact the period income and refer to payments assumed by BB in the Contract 97. So, the balances of the Fundo Paridade and of the Fundo Contribuição were

consumed, as shown in Note 27.e.

(2) 50% of max value of 10% of Assets or Liabilities (the highest)

Page 46: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

46 46

Actuarial Asset

R$ million

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Fundo Destinação ("Destination Fund") 4Q11 1Q12 2Q12 3Q12 4Q12

Initial Balance 4,111 3,684 3,503 3,192 2,853

Update 100 83 87 79 82

Transfers to Fundo de Contrib. e Fundo de Utiliz. (527) (264) (398) (418) (562)

Closing Balance 3,684 3,503 3,192 2,853 2,374

Fundo de Contribuição ("Contribution Fund") 4Q11 1Q12 2Q12 3Q12 4Q12

Initial Balance 1,199 1,096 1,013 935 849

Update 31 25 26 24 25

Contributions to the Plano 1 (133) (108) (105) (110) (148)

Closing Balance 1,096 1,013 935 849 727

Fundo de Utilização ("Utilization Fund") 4Q11 1Q12 2Q12 3Q12 4Q12

Initial Balance 2,644 3,249 3,592 4,095 4,634

Constitution 527 264 398 418 562

Update 79 79 105 122 162

Closing Balance 3,249 3,592 4,095 4,634 5,358

Fundo Paridade ("Parity Fund") 4Q11 1Q12 2Q12 3Q12 4Q12

Initial Balance 1,587 1,608 1,646 1,669 1,715

Contributions to the Plano 1 – Contract 97 (20) 0 (21) 0 (17)

Update 42 37 44 46 56

Advanced Amortizing Contribution- Special Group - - - - (1,014)

Closing Balance 1,608 1,646 1,669 1,715 741

Page 47: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

47 47

Distribution Network

(1) Caixa Econômica Federal – Lottery Stores, Banco 24h, ATMSs from Banco Regional de Brasília and Caixa Econômica Federal

Total Distribution Network

Branches 5,362

SAA 4,945

Points of Service 8,837

Banking Agents 11,719

Banco Postal 6,195

Shared Distribution Channels¹ 27,134

Total 64,192

Banco do Brasil S.A. – Fourth Quarter 2012 Earnings

Page 48: Conference Call 4Q12 Earnings - BBConference Call 4Q12 Earnings . Banco do Brasil S.A. ... Disclaimer This presentation may include references and statements, planned synergies, estimates,

48 Banco do Brasil S.A. – Resultado do 4º Trimestre de 2012 48

Alternative Channels: MaisBB Network

Service Points

Checking Accounts Opened

Credit Operations (quantity)

Transactioned Volume

Transactions¹

17,914

2,284 thousand

1,481 thousand

R$ 7,447 million

330.5 million

(1) Deposits, withdraws, bank statements and account payments

+