institutional presentation 1q16 - bb · 2016-05-20 · institutional presentation 1q16 . disclaimer...

Institutional Presentation

1Q16

Disclaimer

This presentation may include references and statements, planned

synergies, estimates, projections of results, and future strategy for Banco

do Brasil, its Associated and Affiliated Companies, and Subsidiaries.

Although these references and statements reflect the management’s

belief, they also involve estimates and unforeseen risks. Consequently,

results may differ from 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 updating any

estimate in this presentation.

Agenda

Company Profile 1

Banking Industry

2

Earnings Highlights 3

Macroeconomic Information 4

Company Profile

1

5

Founded in 1808

55.3%1 controlled by the Federal Government

Largest Bank in Latin America in total assets

Acess to a broad spectrum of clients

5

1st company listed on the stock exchange in Brazil

(1) As of Mar/2016.

6

Large, diversified and stable funding base

Business diversification including:

Banking Services

Asset Management

Means of Payment

International Franchise

6

Insurance

Capital Market

7

1. Market Leadership

2. Solid Financial Performance

3. Focus on Services

4. Lower deliquency of the Brazilian

Banking Industry

5. Stable and Diversified Funding

200(+) years of solid performance

Investment Highlights

8

Timeline / Governance

BB Shares enter the ISE portfolio

2005

Follow on (primary shares)

2010

Conversion of preferred shares to commom shares

2001 Private offering of subscription bonus

2004

ADR 1 Launching

2009

100% Tag Along clause

2002

BB Shares enter the ITAG portfolio

2003

Follow on (secondary shares)

2007

Banco do Brasil joined “Novo Mercado” (BOVESPA)

2006

BB Shares enter the IBRX-50 portfolio

1998

BB Shares enter the IBrX portfolio

1995

Capitalization and Restructuring Plan

1996

The Board of Directors of BB approved the migration of its program of American Depositary Receipt-ADR from level I to level II

2014

BB Seguridade IPO

2013

BB Shares enter Dow Jones Sustainability Index (DJSI) of NY stock exchange

2012

8

1st company listed on the stock exchange in Brazil

1906

9

Ownership Structure

Free Float 42.1% as of Mar/2016 Free Float Breakdown (%)

Treasury Shares 2.5%

National Treasury

55.3%

Foreign Investors

19.9%

Other 22.2%

20.4 21.6 21.6 21.1 19.9

19.3 18.1 18.1 18.6 22.2

39.7 39.7 39.7 39.8 42.1

Mar/15 Jun/15 Sep/15 Dec/15 Mar/16

Foreign Investors Other

10

Global Presence 10

Banco do Brasil in the world

Presence in 24 countries with 38 points of service

Branches

Sub-branches

Representative Offices

Subsidiaries and affiliates

Shared Services Units

11

4

7

14

2

11

Presence in Brazil

NORTH

27.9% NORTHEAST

31.2%

SOUTHEAST

20.4%

SOUTH

24.8%

MIDWEST

26.4%

Structural data (Mar/16)

Points of services1

17,462

Branches

5,428

Clients

63,890 mil

Employees

109,864

(1) Own Service Network

Own Service Network

Branches

MaisBB Network¹

Shared Service Network2

17,462

5,428

14,313

35,285

Total 67,060

(1) Banking Agents and Postal Bank branches.

Market Share – 23.8%

(Number of branches)

Brazil Total Service Network Mar/16

(2) Shared Service Network: lotteries (CEF), Banco 24h

e ATM (BRB+CEF).

Our more than 63 million clients count on more than 67 thousand points of service, present in 99.8% of the Brazilian municipalities and an increasingly digital Bank.

12

12

Specialized Offices

16 Very Small and Small Companies branches in Brazil.

Expansion project to cover all the country.

2016: Prevision of opening 37 new branches.

BB Estilo Digital

104 BB Estilo Digital branches².

More than 500 thousand benefited clients.

More than 200 Branches by the end of 2016

1.3 million benefited clients by the end of 2016.

1st most common APP in brazilian´s home

screen among all brazilian companies and 6th

overall ranking:¹

(1) Source: Mobile Time/Opinion Box Research – April/2016. (2) As of May/2016.

1. WhatsApp

2. Facebook

3. Instagram

4. Facebook Messenger

5. Youtube

6. Banco do Brasil

7. Twitter

8. Gmail

9. Chrome

10. Waze

Digital Experience

Portal Solução de Dívidas

R$ 2,2 billion agreements signed

since launch

More than 218 thousand customers

Joinville Branch

Innovation

13

13

Automated Service Channels - Transactions BB Digital – Mobile (million transactions)

1,287

2,343

Ourocard APP

Cards Block/Unblock function

Expenses in Timeline format

Function New at the Market – Allows

questioning unrecognized purchases

“Tap and pay” – payment agility

Authorization for abroad usage

Ourocard-e

100% Digital Card

212 thousand virtual cards, 118%

growth compared to 1Q15

Almost 1 million transactions since

launch in Aug/14

R$160 million total turnover on the

last 12 months

(1) Owned by BB.

1Q15

1Q16

Mar/16 Internet

28.5%

Mobile

34.3%

ATM¹

19.4%

In Branches

3.9%

Others

13.9% +82.0%

Innovation

14

Customer Segmentation

Individuals Companies

14

Private > R$ 2mm

Estilo / Estilo Digital > R$ 8k

Personalizado / Exclusivo¹ > R$ 4k < R$ 8k

Mercado Emergente < R$ 1.5k

Varejo > R$ 1.5k < R$ 4k

> R$ 1.5bn > R$ 2bn Large Corporate

> R$ 400mm < R$ 1.5bn

> R$ 600mm < R$ 2bn

Corporate

> R$ 120mm < R$ 400mm

> R$ 200mm < R$ 600mm

Empresarial Upper Middle

> R$ 25mm < R$ 120mm

> R$ 25mm < R$ 200mm

Empresarial Middle

> R$ 5mm < R$ 25mm Empresa

> R$ 1mm < R$ 5mm Pequena Empresa

< R$ 1mm Microempresa

Industry Services

(1) Digital service only.

15

Assets and Market Share

(¹) Source: Central Bank of Brazil (*) Dec/2015

1,404.9

Available Funds, Short-Term

Interbank Investments, Interbank and

Intrabank Accounts

Securities and Financial Derivatives

R$ Billion

Loans

Permanent Assets

Other

1,370.4 1,371.0 1,402.0 1,401.1 1,404.9

20.9 20.9 20.1 20.2 20.2*


Assets Market Share¹ (%)

2.2%

13.3%

8.7%

32.4%

43.4%

Share % - Mar/16

16

Loan Portfolio – Broad Concept¹

(1) It includes private securities and guarantees provided. (2) It considers the classified loan portfolio.

351.8 346.4 355.2 364.6 348.5

171.0 176.8 179.7 183.3 185.9

163.4 168.3 171.8 174.9 179.5

72.1 68.5 81.7 73.8 61.7

758.3 760.0 788.4 796.7

775.6

20.2 20.3 20.3 20.4 20.6


Corporates Individuals Agribusiness Abroad Market Share² - %

9.5%

21.6%

22.5%

46.4%

R$ Billion

8.0%

23.1%

24.0%

44.9%

2.3% on Mar/15

17

17

Mar/15 Dec/15 Mar/16

Balance Provision Share %



AA 397,873 - 58.3 373,298 - 52.0 371,909 - 53.0

A 96,106 481 14.1 144,778 724 20.2 138,407 692 19.7

B 121,121 1,211 17.8 124,925 1,249 17.4 115,445 1,154 16.4

C 28,914 867 4.2 25,526 766 3.6 25,554 767 3.6

D 4,983 498 0.7 11,033 1,103 1.5 6,303 630 0.9

E 11,173 3,352 1.6 11,797 3,539 1.6 12,353 3,706 1.8

F 4,217 2,108 0.6 4,768 2,384 0.7 5,352 2,676 0.8

G 2,791 1,954 0.4 3,806 2,664 0.5 7,133 4,993 1.0

H 15,011 15,011 2.2 17,919 17,919 2.5 19,570 19,570 2.8

Total 682,188 25,482 100.0 717,849 30,349 100.0 702,027 34,189 100.0

AA-C 644,013 2,559 94.4 668,526 2,739 93.1 651,315 2,613 92.8

D-H 38,175 22,923 5.6 49,323 27,610 6.9 50,711 31,575 7.2

Total Loan Portfolio - Risk Level

R$ Million

18


Payroll 59,863 62,502 62,589

Mortgage 30,386 37,169 38,446

Salary Loans 17,631 18,610 19,161

Auto Loans 9,979 8,404 7,844

Credit Cards 21,384 23,625 22,730

Consumer Finance 5,976 7,022 7,607

Overdraft 2,550 2,272 2,830

Microcredit 1,110 779 706

Other 4,764 6,522 7,140

TOTAL 153,644 166,905 169,054

76.7% 75.9% 75.7%

Loans to Individuals¹

R$ Million

(1) It considers the organic loan portfolio.

19

30.4 37.2 38.4

10.6 11.9 11.9

41.0 49.1 50.3

1.02 1.16 1.38


Mortgages withCompanies

Mortgages withIndividuals

Mortgage withIndividuals NPL +90days (%)

Salary Loans Auto Loans²

Mortgages Payroll²

Growth in lower risk lines¹

88.9 89.0 88.7

7.4 7.6 8.1 3.7 3.4 3.2

59.9 62.5 62.6

1.37 1.26 1.28


INSS Retirees andPensioners

Private SectorEmployees

Civil Servants

Payroll NPL +90 days(%)¹

17.6 18.6 19.2

2.59 2.49 2.30


Total

Salary Loans NPL +90days (%)

23.8 22.3 22.6

0.83 0.90 0.93


Auto Loans

Auto Loans NPL +90days (%)

(1) Classified Loan Portfolio (2) Organic Loan Portfolio

+8.7%

+4.6%

-5.3%

R$ Billion

+22.6%

20

Relationship

Individuals Portfolio¹ Individuals Portfolio Profile²

66.4% 67.3% 68.2%

21.0% 20.4% 19.9%

7.8% 8.1% 8.0%

4.9% 4.1% 3.9%


Time of Relationship

More than 10 years From 5 to 10 years From 2 to 5 years Up to 2 years

78.1% 78.9% 78.6%

14.6% 13.9% 13.8%

7.3% 7.2% 7.7%


Direct Consumer Credit + Auto Loans

Civil Servants

Private Sector Employees

INSS Retirees and Pensioners

(1) BB Classified Loan Portfolio. (2) BB Organic Loan Portfolio.

21

183.5 183.5 172.1

106.9 109.0 105.6

24.3 23.4 20.3 16.5 19.6 19.7

20.6 29.1 30.8

351.8 364.6 348.5


Working Capital² Investments + Private Securities Guarantees Trade Finance³ Other

(1) It includes private securities and guarantees provided. (2) It includes Working Capital, Receivables, Credit Card and Overdraft Account. (3) It Includes FEC/ACE and BNDES Exim. (4) Companies with annual revenues up to R$ 25 million.

Corporate Portfolio by Size

-0.9%

2.4% on Mar/15

-9.3% on Mar/15

Loans to Companies – Broad Concept¹

R$ Billion

251.4 271.0 257.4

100.4 93.6 91.1

351.8 364.6 348.5


Middle Market, Corporates and Government Very Small and Small Companies⁴

22

Relationship Amount Distribution by Time of

Company Foundation – Very Small

and Small Companies Portfolio (R$ bn)

(1) BB Classified Loan Portfolio - Companies with annual revenues up to R$ 25 million.

Total

Amount

R$91.1bn

39.4% 42.5% 43.4%

33.0% 33.3% 34.5%

22.0% 20.7% 19.5%

5.5% 3.5% 2.7%


Time of Relationship

More than 10 years From 5 to 10 years From 2 to 5 years Up to 2 years

0.9

10.5

26.0

30.3

23.4

Up to 2years

From 2 to5 years

From 5 to10 years

From 10to 20years

More than20 years

Very Small and Small Companies Portfolio¹

23

Carteira PJ por setor

Mar/15 Share % Dec/15 Share % Mar/16 Share % Oil and Gas 44,250 9.70% 47,716 10.00% 45,739 10.10%

Mining and Metallurgy 43,790 9.60% 43,986 9.20% 42,310 9.30%

Government 34,085 7.50% 42,924 9.00% 39,858 8.80%

Eletricity 39,617 8.70% 40,528 8.50% 39,416 8.70%

Foodstuffs of Vegetable Origin 36,090 7.90% 37,512 7.90% 33,862 7.50%

Transportation 29,908 6.50% 33,633 7.10% 32,095 7.10%

Automotive 26,648 5.80% 28,189 5.90% 26,372 5.80%

Services 24,753 5.40% 24,869 5.20% 23,056 5.10%

Real Estate Agents 20,545 4.50% 22,013 4.60% 21,358 4.70%

Retail Trade 20,858 4.60% 19,435 4.10% 18,099 4.00%

Foodstuffs of Animal Origin 13,755 3.00% 15,173 3.20% 17,188 3.80%

Financials Institutions 14,270 3.10% 17,456 3.70% 16,933 3.70%

Specific Activities of Construction 15,332 3.40% 15,742 3.30% 14,733 3.30%

Agricultural Inputs 11,274 2.50% 11,740 2.50% 11,105 2.50%

Textile and Clothing 12,696 2.80% 11,794 2.50% 11,103 2.50%

Pulp and Paper 11,207 2.50% 10,715 2.20% 9,776 2.20%

Electrical and Electronic Goods 10,206 2.20% 9,868 2.10% 8,841 2.00%

Chemicals 9,415 2.10% 9,339 2.00% 8,056 1.80%

Heavy Construction 9,327 2.00% 8,305 1.70% 7,865 1.70%

Telecommunication 9,035 2.00% 7,740 1.60% 7,449 1.60%

Wholesale and Various Industries 7,598 1.70% 6,838 1.40% 7,122 1.60%

Woodworking and Furniture 6,963 1.50% 6,394 1.30% 6,036 1.30%

Leather and Shoes 3,100 0.70% 3,040 0.60% 2,793 0.60%

Beverages 1,774 0.40% 1,875 0.40% 1,631 0.40%

Other Activities 728 0.20% 157 0.00% 69 0.00%

Total 457,225 100.0% 476,979 100.0% 452,866 100.0%

Companies Portfolio by Macro-sector

Included Companies and Agro Companies Portfolio.

R$ Million

24

9.8% growth in the past 12 months

61.2% of the total Rural Credit is at Banco do Brasil

23.1% of Banco do Brasil Credit Portfolio*

Agribusiness

Portfolio

R$179.5Billion

24

The Agribusiness Bank in Brazil

*It considers Agribusiness Broad Concept Portfolio

25

Agribusiness

Agribusiness Loan Portfolio by Costumer Type¹

(1) It includes Rural Product Bills and guarantees provided. (2) Source: Central Bank of Brazil – Mar/16.

Harvest 15/16 (Mar/16)

Use of Mitigators (Working Capital for Input Purchase)

118.7 120.7 120.6 123.3 125.9

44.7 47.6 51.2 51.6 53.6

163.4 168.3 171.8 174.9 179.5

60.0 61.0 60.5 60.9 61.2


Individuals Companies Market Share - %

Insured

64.8%

Not Insured

35.2%

Total disbursement in15/16 harvest

R$ 59.8 billion 1st 61.2 % Market Share²

+9.8%

26

The Brazilian Foreign Trade Bank

Operating abroad for over 50 years,

Banco do Brasil has supported Brazil's

relations with its trading partners, being

a reference point for entrepreneurs,

investors, economic agents and

foreign governments that maintain or

wish to maintain investments in Brazil.

26

2,042

2,185

1,865

24.5

30.0

26.7

1Q15 4Q15 1Q16

Contracted Amount (US$ million) Market share (%)

FCE/ACE

27

R$ Thousand Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16

Commercial Funding¹ 619,799 632,913 641,603 639,193 660,175 669,506 638,611

Domestic Onlending 86,061 89,157 90,686 90,032 90,543 90,065 88,082

Financial and Development Funds 9,569 10,840 12,265 12,404 14,677 15,003 14,781

Subordinated Debt 47,646 49,413 49,664 50,764 54,256 54,018 51,903

Capital Eligible Debt³ 27,908 29,351 32,876 32,441 37,926 35,393 33,728

Commercial Papers ⁴ 2,475 2,549 2,622 2,705 47 2,117 2,309

HCDI domestic 90 150 110 175 210 256 20

Foreign Borrowing² 59,487 61,654 71,829 72,547 94,590 82,306 65,668

Compulsory Deposits (78,714) (63,224) (56,613) (57,168) (60,362) (60,811) (62,613)

Total 774,319 812,803 845,042 843,092 892,061 887,854 832,489

Sources

(1) Includes part of the balances of Private Securities (Note 17c).

(2) Includes Foreign Borrowing, Foreign Securities, Foreign Onlending, Subordinated Debt Abroad, Hybrid Capital Debt Instruments and Judicial Deposits.

(3) From 3Q14 on, includes Capital Eligible Debt reallocated to Core Capital, as authorized by the Central Bank by Official Letter 15006/2014-BCB/DEORF/DIFIN.

(4) Includes Letters of Credit and Debentures.

28

Sources


Foreign Securities 28,886 28,560 31,175 34,803 44,103 33,500 22,885

Foreign Borrowing 18,735 20,516 25,133 23,074 31,236 29,617 25,178

Foreign Onlending - - - - 9 10 -

HCDI Abroad 4,717 4,716 6,158 5,485 7,641 7,611 7,205

Subordinated Debt Abroad 7,149 7,862 9,361 9,186 11,600 11,569 10,400

Total² 59,487 61,654 71,829 72,547 94,590 82,306 65,668


Demand Deposits 69,398 74,224 73,705 64,755 66,063 66,550 62,631

Savings Deposits 148,996 148,699 144,089 147,306 149,764 151,845 151,919

Interbank Deposits 27,638 30,354 36,736 33,337 41,465 41,483 36,885

Time Deposits 110,622 99,889 93,304 82,126 89,068 90,890 88,433

Judicial Deposits 110,095 115,010 118,591 116,805 116,107 113,652 114,140

Agribusiness Letters of Credit 104,094 102,325 118,263 132,372 134,555 134,823 135,420

Mortgage Bonds 7,772 14,156 19,067 18,526 18,474 18,121 18,681

Repurchase Agreement with Private Sec.¹ 41,184 48,256 37,848 43,965 44,678 52,142 30,471

Total 619,799 632,913 641,603 639,193 660,175 669,506 638,611

Commercial Funding

Foreign²

(1) Includes part of the balances of Private Securities (Note 17c).

(2) Includes Foreign Borrowing, Foreign Securities, Foreign Onlending, Subordinated Debt Abroad, Hybrid Capital Debt Instruments and Judicial Deposits.

30

Emissões no Exterior

Bonds Issued Abroad

Issue Date Volume (US$

million) Currency Term in Years Maturity Coupon (%) Structure

Rating ¹ (S&P / Moody´s/Fitch)

07/18/2007 187 BRL 10 07/18/2017 9.750 Senior SR / Ba2 / SR

04/29/2008 150 USD 10 04/29/2018 5.250 Securitization BBB+ / Ba1 / SR

10/20/2009 1,500 USD Perpetual Perpetual 8.500 Perpetual SR / B2 / SR

01/22/2010 500 USD 10 01/22/2020 6.000 Senior BB / Ba2 / BB+

10/05/2010 660 USD 10 10/05/2020 5.375 Tier II Subordinated SR / Ba3 / SR

05/26/2011 1,500 USD 10 05/26/2021 5.875 Tier II Subordinated SR / Ba3 / SR

11/23/2011 500 USD 5 11/23/2016 3.875 Senior SR / Ba2 / SR

01/20/2012 1,000 USD Perpetual Perpetual 9.250 Perpetual B- / SR / SR

03/05/2012 750 USD Perpetual Perpetual 9.250 Perpetual B- / SR / SR

06/19/2012 750 USD 10 06/19/2022 5.875 Tier II Subordinated B / Ba3 / SR

10/10/2012 1,925 USD 10 10/10/2022 3.875 Senior BB / Ba2 / BB+

01/31/2013 2,000 USD Perpetual Perpetual 6.250 Perpetual B- / SR / SR

07/25/2013 930 EUR 5 07/25/2018 3.750 Senior BB / Ba2 /BB+

12/20/2013 307 CHF 5.5 06/20/2019 2.500 Senior BB / Ba2 / BB+

03/26/2014 417 EUR 5 03/26/2019 3.750 Senior BB / Ba2 /BB+

06/18/2014 2,500 USD Perpetual Perpetual 9.000 Perpetual B- / B2 / SR

Foreign Borrowing

(1) Ratings were revised in 03/31/2016.

31

Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16

Available Funds 107,417 122,554 142,744 137,925 168,680 154,936 118,235

Net Loan Portfolio (a) = (b) + (c) + (d) 666,902 690,249 702,298 705,167 723,381 732,918 714,254

Classified Loan Portfolio (b) 643,577 669,020 682,188 687,664 710,612 717,849 702,027

Private Securities (c) 47,082 46,524 46,973 45,078 44,695 48,645 47,625

Allowance for Loan Losses (d) (23,757) (25,295) (26,862) (27,575) (31,926) (33,577) (35,398)

Adjusted Net Loan Portfolio (a) - (e)* 551,192 569,635 578,161 580,929 595,903 604,599 588,131

Domestic Onlending Loans (e) 115,710 120,614 124,137 124,238 127,478 128,319 126,122

Uses 774,319 812,803 845,042 843,092 892,061 887,854 832,489

Uses

Indicators (%)

Adjusted Net Loan Portfolio* / Commercial Funding** 88.9 90.0 90.1 90.9 90.3 90.3 92.1

Commercial Funding** 619,799 632,913 641,603 639,193 660,175 669,506 638,611

32

Compulsory/Reserve Requirements (%) 1Q15 2Q15 3Q15 4Q15 1Q16

Demand Deposits

Reserve Requirement 45 45 45 45 45

Additional Reserve Requirement 0 0 0 0 0

Marked to Rural 34 34 34 34 34

Marked to Micro Finance 2 2 2 2 2

Unmarked 19 19 19 19 19

Savings Deposits

Rural

Reserve Requirement 13 15.5 15.5 15.5 15.5

Additional Reserve Requirement 10 5.5 5.5 5.5 5.5

Marked 72 72 74 74 74

Unmarked 5 7 5 5 5

Mortgage

Reserve Requirement 20 24.5 24.5 24.5 24.5

Additional Reserve Requirement 10 5.5 5.5 5.5 5.5

Marked 65 65 65 65 65

Unmarked 5 5 5 5 5

Time Deposits

Reserve Requirement 20 20 25 25 25

Additional Reserve Requirement 11 11 11 11 11

Unmarked 69 69 64 64 64

Compulsório e Direcionamento Compulsory and Reserve Requirements

33

Means of Payment

Banco do Brasil BB Banco de Investimentos

BB Adm Cartões

BB ELO Cartões

100%

100%

100%

|

Serviços

49.99%

70%

66.64%

100%

40.95%

50,1%

100%

100%

\

100%

70%

100%

100%

30%

28.65%

30%

Banco

CBSS 100%

Promotora

34

Leadership

Assets (R$ billion – Mar/16)

Loan Portfolio (R$ billion – Mar/16)

Assets Under Managmt.¹ (R$ billion – Mar/16)

Deposits (R$ billion– Mar/16)

1,404.9 1,283.1

1,101.8

BB Bank A Bank B

(1) Source: Central Bank of Brazil - Market Share as of Dec/2015.

20.2% Market Share¹

775.6

554.3 463.2

BB Bank A Bank B

(1) Source: Central Bank of Brazil - Market Share as of Mar/16 for domestic loan portfolio.


644.8

519.5

414.2

BB Bank A Bank B

(1) It does not include Banco Votorantim (2) Source: Anbima - Market Share as of Mar/16.


454.0

266.3

189.2

BB Bank A Bank B

(1) Source: Central Bank of Brazil - Market Share as of Dec/2015.

23.4% Market Share¹ 1st 1st 1st 1st

35

Leadership

Cards

Total turnover

Debit

Credit

1st

2nd

Insurance - Collection

Business 1Q16

Rural

Pension Plan

Premium Bonds

Life

Vehicle

Source: Abecs Mar/16 Source: Susep Mar/16

1st

1st

1st

2nd

2nd

36

19.3%

14.0% 13.9%

11.5% 11.1%

BB Bank 1 Bank 2 Bank 3 Bank 4

24.7%

16.0%

9.8% 8.1% 7.6%

BB Bank 1 Bank 2 Bank 3 Bank 4

Foreign Exchange Export Contracts Foreign Exchange Import Contracts

Leadership in Foreign Trade

1st 1st

Source: Central Bank of Brazil – YTD Mar/16

37

Awards and Achievements

38

Decisions at any level of the Company are made collectively. With the purpose of involving all the executives in the definition of strategies and approval of proposals for the different businesses of Banco do Brasil.

The Only Brazilian Bank listed since 2006, in this BM&F Bovespa segment, destined to companies that voluntarily adopt the best practices for corporate governance.

Corporate Governance

3 Higher Committees

14 Executive Committees

3 Other Committees

Global Risk Committee Asset and Liabilities Management

and Liquidity Committee Investor Relations

Executive Committee

Credit Risk Executive Committee

Credit Limit Executive Committee Ethics Executive

Committee

Capital Management Executive Committee

Products and Services Executive Committee

Market and Liquidity Risk Executive Committee

Related Companies Governance Executive Committee

Internal Controls and Operational Risk Executive Commitee

Prevention of Financial,Foreign Exchange Illicit and Information Security Executive Committee

Administrative and Operational Executive Committee

Credit Transactions Executive Committee

Information Technology Executive Committee

Human Resources Executive Committee

Disciplinary Review Executive Committee

Credit Transactions Committee Human Resources Committee Information Technology

Committee

Objective Mitigate risks, share visions, aggregate value and quality to the decision process and disseminate knowledge.

Asset & Liability Management and Liquidity Executive Committee

39

Banco do Brasil: Ratings

2012 2013 2014 2015 1Q16

Standard & Poor's

Long-Term - Local Currency BBB BBB BBB- BB+ BB

Long-Term - Foreign Currency BBB BBB BBB- BB+ BB

Moody's

Financial strength C- C- C- - -

Long-Term Debt - Foreign Currency Baa1 Baa2 Baa2 Baa3 Ba2

Long-Term Deposits - Foreign Currency Baa2 Baa2 Baa2 Baa3 Ba3

Long-Term Deposits - Local Currency A3 Baa2 Baa2 Baa3 Ba2

Fitch Ratings

Long-Term - Local Currency BBB BBB BBB BB+ BB

Long-Term - Foreign Currency BBB BBB BBB BB+ BB

39

* Ratings were revised in May/2016.

Banking Industry

2

41

80.1 81.3 81.4 87.6 88.2 89.1 91.8 92.1 93.0

5 Largest 10 Largest 20 Largest

77.8 78.2 77.5

87.8 88.0 88.1 92.9 93.1 93.2


Concentration - %

Assets Loans

Source: Central Bank of Brazil *Dec/15

2013 2014 2015* 2013 2014 2015*

42

67.1 69.3 70.2

88.7 88.8 88.7

5 Largest 10 Largest

Concentration - %

Deposits Assets under Management Credit Card Revenue**

82.2 82.5 79.8

88.2 88.2 90.8 93.4 93.6 95.1


2014 2015 1Q16 2013 2014 2015*

93.0 98.0

3 largest 4 largest

Source: Central Bank of Brazil *Dec/15 ** Source: CardMonitor Research as of 4Q15 per acquiring.

Earnings Highlights

3

44

Net Interest Income Grew by 13.7%

Pre-Tax and Pre-Provision Earnings Increased by 15.6%¹

Fee Income 2.5% Growth. Excluding income migrations to Cateno, growth would be 10.8%².

Administrative Expenses Under control (2.5% growth)

Cost to income ratio Ended the quarter at 40.8%

Highlights 1Q16 / 1Q15

(1) Pre-Tax and Pre-Provision Earnings accumulated in four quarters. It does not consider a portion of estimated interchange revenues that migrated to Cateno from Mar/15. (2) It excludes interchange revenues in Jan/15 and Feb/15 that migrated to Cateno from Mar/15.

45

Net Income

Excluding the ALL impact on a specific case

(1) It excludes the Additional ALL reversion and the Tax Effect and Statutory Profit Sharing on One-Off Items.

(2,155)

672

2,648 9

(424)

536 1,286

1,073 2,359

4Q15Adj. Net Income

NII ALL Fee Income AdministrativeExpenses

Other 1Q16 Adj. NetIncome

One-Off Items 1Q16 Net Income

(134)

672 2,648 9

(424) (438)

2,333 26 2,359

4Q15Adj. Net Income

NII ALL Fee Income AdministrativeExpenses

Other 1Q16 Adj. NetIncome¹

One-Off Items 1Q16 Net Income

R$ Million ROE

12.0%

ROE

5.6%

ROE

10.5%

ROE

10.4%

46

Pre-Tax and Pre-Provision Earnings

36.0 40.3

1Q15 1Q16

+11.7%

R$ Billion

34.8 40.3

1Q15 1Q16

+15.6%

Annual change Adjusted annual change¹

(1) Pre-Tax and Pre-Provision Earnings accumulated in four quarters. It does not consider a portion of estimated interchange revenues that migrated to Cateno from Mar/15.

47

Earnings per Share (R$)

Market Ratios

2.07

1.05 1.08 0.89 0.83 1.06 1.06 1.01 0.92

0.45

1Q15 2Q15 3Q15 4Q15 1Q16Earnings per Share Adjusted Earnings per Share

Dividend Yield1 (%)

8.95 8.56

13.98 13.96

7.38

1Q15 2Q15 3Q15 4Q15 1Q16

(1) Dividends and Interest on Capital 12 months / Market Capitalization. Source: Economatica.

Source: Economatica. Source: Economatica.

Price/Book Value Price/Earnings 12 months

4.45 4.66

2.86 2.86

5.05


0.77 0.82

0.51 0.50 0.66


48

NPL Ratio +90 days (%)

NPL Ratio +90 days (%)

(1) Classified Loan Portfolio. (2) Required Provision / BB Classified Loan Portfolio.

NPL +15 Days (%)

2.90 2.70 2.80 2.90 3.10 3.40 3.50

1.91 1.86 1.84 1.89 2.06 2.24 2.60


Banking Industry Banco do Brasil

2.39 2.30 2.20 2.16 2.17 2.17 2.41

0.59 0.69 0.82 0.73 0.84 0.97 1.19

2.68 2.59 2.52 2.72 3.10

3.42 4.01


Individuals Agribusiness Companies

4.32 4.26 4.60

4.47 4.79 4.52 5.51

4.07 3.90 4.69

4.50 5.62 5.56

7.07

1.08 1.19 1.29 1.29 1.69 1.66 1.80


Individuals Companies Agribusiness

Average Risk² (%)

4.80 4.90 4.90 5.00 5.50 5.70 5.90

3.47 3.57 3.74 3.81 3.97 4.23 4.87


Banking Industry Banco do Brasil

Delinquency Ratios¹ and Average Risk

49

Annual Vintage – Very Small and Small Companies Loan

Portfolio Annual Vintage – Individuals Loan Portfolio

Vintages

50

(1) Quarterly change in the balance of past due for over 90 days operations + current quarter write-off. (2) Estimated flow of the Renegotiated loan portfolio contracts of past due for over 90days operations. (3) It considers the Classified Loan Portfolio of the previous quarter.

New NPL¹, Write Off and NPL Formation Rate

New NPL¹, Write Off and NPL Formation Rate including the Past Due Renegotiated loan Portfolio²

3.86 4.28 4.91 5.59 6.22

7.39

3.69 4.16 4.45 3.97 4.81 5.18

0.60 0.64 0.72 0.81 0.88 1.03

126.76 131.99 105.64 104.33 112.32 123.80

Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16

New NPL (R$ billion)

Write Off (R$ billion)

Quarterly ALL/New NPL (%)

New NPL / Loan Portfolio³ (%)

NPL Formation

4.44 4.81 5.98

6.73 8.03 8.47

3.69 4.16 4.45 3.97 4.81 5.18

0.69 0.72 0.88 0.98 1.13 1.18

110.23 117.46 86.77 86.73 87.07 107.97


New NPL with Past due Credits Portfolio (R$ million)

Write Off (R$ million)

Quarterly ALL/New NPL (%)

New NPL with Past due Credits Portfolio / Loan Portfolio³ (%)

51

Allowance for Loan Losses

(1) BB Classified Portfolio. (2) Quarterly ALL. It does not consider additional provision.

Coverage Ratios (%) and ALL Balance (R$ million)¹

ALL by Segment²

56 206 144 246 391 1,942

2,832 3,142 3,810 3,832 4,319

4,754 1,291

1,405 680 1,221 1,326

1,408

712 902 557

536

954

1,041

4,890 5,654 5,191

5,835 6,991

9,145


Agribusiness

Individuals

Companies

Abroad

23,889 25,482 26,170 28,220 30,349 34,189

1,405 1,380 1,405 3,705

3,228 1,209

25,295 26,862 27,575 31,926 33,577 35,398

181.48 175.00 172.41 177.42 167.65 168.57

203.48 213.99 211.79 218.07 209.19 193.83

124.75 98.89

119.14 113.11 119.68 104.05


Additional (Complementary) Provision

Required Allowance - R$ million

Banking Industry + 90 days

Banco do Brasil + 90 days

Banco do Brasil + 15 days

52

Renegotiated Overdue Loan Portfolio¹ 1Q15 4Q15 1Q16

Renegotiated Overdue Loan Portfolio - Changes

Initial Balance 9,030 15,520 19,653

Contracts 1,767 6,015 3,611

Payments received minus capitalized interest (99) (1,037) (449)

Write Off (514) (845) (777)

Final Balance 10,183 19,653 22,038

Allowance for Loan Losses Balance 6,111 8,585 9,495

NPL + 90 days 1,588 3,171 4,303

Indicators - %

ALL for Loan Losses / Loan Portfolio 60.0 43.7 43.1

NPL + 90 days / Loan Portfolio 15.6 16.1 19.5

ALL for Loan Losses Balance/NPL + 90 days 384.9 270.7 220.7

Credits Renegotiated/Classified Loan Portfolio 1.5 2.7 3.1 (1) Table according Explanatory Notes 10.k.

R$ Million

0.60 0.33 0.68 0.79 1.24 1.55

1.91

0.33 0.51 0.51 0.65 0.50 0.84 0.78

7.94

4.14

7.50 7.73

9.80 9.96 9.71

320.06 403.08 384.91 382.74

302.24 270.72

220.67


New NPL - Renegotiated Overdue Loan Portolio (R$billion)

Write Off (R$ billion)

New NPL/Past due Renegotiated Portfolio²

ALL Balance/NPL + 90 days

New NPL¹, Write Off and NPL Formation Rate

(1) Quarterly change in the balance of past-due for over 90 days operations + current quarter write off. (2) It considers the classified loan portfolio of the previous quarter.

53

(1) It corresponds to two large Brazilian private banks.

BB x Peers¹

Renegotiated Loan Portfolio – 1Q16

22,038 17,893

3.1

4.5

BB Peers Average¹

Renegotiated Loan Portfolio

Renegotiated LoanPortfolio/Classified Loan Portfolio(%)

7,064 6,982 7,414 8,112 8,563

6,111 6,616

7,464 8,585

9,495

22.3

17.5 16.5

18.5

23.0

15.6

13.6 15.9 16.1

19.5


Peers Average - ALL Balance

BB - ALL Balance

Peers Average - Renegotiated Portfolio NPL +90days (%)

BB - Renegotiated Portfolio NPL +90 days (%)

R$ Million

Renegotiated Loan Portfolio

54

10,579

13,577 15,653

18,951

27,749

17,411 19,133

21,565

25,295

33,577

2011 2012 2013 2014 2015

IFRS ALL Balance BRGAAP ALL Balance¹

R$ million

Allowance for Loan Losses: IFRS x BRGAAP

(1) BB Conglomerate from 2011 to 2013 and it does not consider BV. In 2014 and 2015, BB Multiple Bank.

55

Allowance for Loan Losses (12 months) / Loan Portfolio Allowance for Loan Losses (Quarterly) / Loan Portfolio

Classified Loan Portfolio – Growth by Risk Level

2.9%

in 12 months

(1) Average classified loan portfolio 12 months; (2) ALL accumulated in 12 months / 12 months Average Loan Portfolio; (3) 3 months Average Loan Portfolio; (4) Quarterly ALL / 3 months Average Loan Portfolio.

Allowance for Loan Losses (ALL) and Loan Portfolio

644,255 659,843 675,671 690,144 699,218

19,020 20,036 21,571 23,671 27,161

3.0 3.0 3.2 3.4 3.9

1Q15 2Q15 3Q15 4Q15 1Q16

Loan Portfolio¹ Allowance for Loan Losses ALL / Loan Portfolio (%)²

672,290 683,547 695,770 711,477 710,697

5,654 5,191 5,835 6,991 9,145

0.8 0.8 0.8 1.0 1.3

1Q15 2Q15 3Q15 4Q15 1Q16

Loan Portfolio³ Allowance for Loan Losses ALL / Loan Portfolio (%)⁴

682,188 7,303 1,320 1,180 1,135 4,341 4,560 702,027

Mar/15 AA-C D E F G H Mar/16

R$ Billion

56

Write-off – Percentage on the Classified Loan Portfolio¹

(1) Write-offs to losses accumulated in 12 months / average balance of the classified credit portfolio in 12 months. (2) It corresponds to the three largest Brazilian private banks.

2.38 2.38 2.37 2.49 2.61

4.21 4.05 4.03

4.23 4.47


Banco do Brasil Peers Average²

57

ALL Balance – Current and Past Due Operations

1.4 1.4

3.7 3.2

1.2

12.6 13.1 13.1 14.8

16.4 12.9 13.1

15.1 15.6

17.8

26.9 27.6

31.9 33.6

35.4

1Q15 2Q15 3Q15 4Q15 1Q16

Additional (Complementary) Provision Current (Generic) Past Due (Specific) Total

R$ Billion

58

Net Interest Income

R$ million 1Q15 4Q15 1Q16

Chg. % On 1Q15

Chg. % On 4Q15

Net Interest Income 12,562 14,267 14,276 13.7 0.1

Loan Operations Income 21,839 25,332 25,450 16.5 0.5

Funding Expenses (9,310) (11,305) (10,918) 17.3 (3.4)

Institutional Funding Costs¹ (3,319) (3,830) (3,733) 12.5 (2.5)

Recovery of Write-offs Loans 840 1,247 861 2.5 (30.9)

Treasury Income² 2,513 2,824 2,616 4.1 (7.4)

Global Spread (%)³ Spread by Portfolio (%) ³

(1) It Includes senior debt, subordinated debt and hybrid capital instrument (HCDI). (2) It included interest income, profitable compulsory deposits income, tax hedge, derivatives and other financial instruments that compensate the exchange rate variation in result. (3) Annualized data. (4) Series revised from 1Q15 due to methodology adjustments. (5) It does not include loans with government sector.

4.4 4.3 4.5 4.8 4.8

2.4 2.5 2.5 2.4

1.7

1Q15 2Q15 3Q15 4Q15 1Q16

NIM Risk Adjusted NIM

13.5 14.0

14.9 15.5 15.8

6.9 7.0 7.1 7.4 7.5

5.5 5.6 5.7 5.8 5.9

4.9 4.8 4.5 4.8 4.8

1Q15 2Q15 3Q15 4Q15 1Q16

Individuals NIM Loan Operations NIM⁴ Companies NIM⁵ Agribusiness NIM

59

Net Interest Income

Revenue from Loans

Funding Costs

8.3 8.9 9.1 9.3 10.3 11.6 11.3 10.9

3.4 2.9 3.0 3.3 3.4 3.8 3.8 3.7

9.8 10.4 10.9 11.3 11.9 12.6 13.4 14.2

76.2 76.5 76.8 75.9 76.8 75.9 74.9 75.4

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Funding Expenses Institutional Funding Accumulated Selic (% accumulated in 12 months)¹ Funding Expenses % Selic

(1) Source: Central Bank of Brazil

19.7 20.5 21.3 21.8 22.7 24.8 25.3 25.5

9.8 10.4 10.9 11.3 11.9 12.6 13.4 14.2

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Revenue from Loans Accumulated Selic (% accumulated in 12 months)¹

60

Fee Income 60

R$ Million 1Q15 4Q15 1Q16

Chg. On

1Q15

Chg. On

4Q15

Fee Income 5,423 5,982 5,558 2.5 (7.1)

Account Fees 1,142 1,458 1,435 25.6 (1.6)

Asset Management Fees 813 890 906 11.4 1.8

Insurance, Pension and Premium Bonds 696 750 697 0.2 (7.0)

Collections 418 419 419 0.1 0.0

Loan Fees 351 556 360 2.7 (35.3)

Credit / Debit Cards 681 442 321 (52.9) (27.5)

Billings 260 262 260 0.1 (0.8)

Interbank 186 200 202 9.0 1.1

Fiduciary Services 114 123 129 13.6 4.7

Consortium 95 113 115 21.3 2.0

Capital Market 166 142 110 (34.2) (22.8)

Other 501 622 604 20.5 0.2

Adjusted Fee Income¹

1Q15 4Q15 1Q16 Chg. On

1Q15

Chg. On

4Q15

Fee Income 5,016 5,982 5,558 10.8 (7.1)

Credit / Debit Cards 274 442 321 16.9 (27.5)

(1) ) It excludes interchange revenues in Jan/15 and Feb/15 that migrated to Cateno from Mar/15.

61

BB Seguridade

Adjusted Net Income (R$ million)

949.1 957.7

1Q15 1Q16

0.9%

62

Banco Votorantim

Net Income (R$ million)

Delinquency and Risk Level

122 146 137

77 86

1Q15 2Q15 3Q15 4Q15 1Q16

89.5% 89.8% 89.7% 88.8% 90.6%

10.5% 10.2% 10.3% 11.2% 9.4%

6.5% 5.2% 5.3%

5.7% 4.6%

1Q15 2Q15 3Q15 4Q15 1Q16

AA-C D-H NPL + 90 days / Loan Portfolio

63

Administrative Expenses and Cost to Income Ratio

(1) Administrative Expenses / Operating Revenues. Data from the Income Statement with Reallocations. 2014 and 2015 cost to income ratio is accumulated in 12 months.

4.6 5.0

4.8

3.0

3.4 3.0

43.2 41.5 40.8

1Q15 4Q15 1Q16

Personnel Expenses Other Expenses Cost to Income Ratio (%)¹

R$ Million

64

8.68 8.71 8.07 8.17 8.26

2.68 2.64 3.54 3.22 3.12

16.02 16.18 16.20 16.13 16.24


Core Capital AT 1 Tier 2

BIS Ratio %

4.66 4.82 4.58 4.75

Tier I 11.38%

4.86

65

BIS Ratio

Tier 1

Full application of Basel III rules

16.2 15.6 15.3

0.9 16.2

(0.7) (0.3)

BIS Ratio Deductions ScheduleAnticipation

BIS Ratio with fulldeductions

RWA Rules Anticipation BIS Ratio with FullyLoaded Basel III Rules

Use of Tax Credits Simulated BIS Ratiounder complete Basel III

Rules

10.7 10.5

11.3 11.4

(0.7) (0.2)

0.9

Tier 1 Deductions ScheduleAnticipation

Tier 1 with fulldeductions

RWA Rules Anticipation Tier 1 with Fully LoadedBasel III Rules

Use of Tax Credits Simulated Tier 1 undercomplete Basel III Rules

66

BIS III – Capital Requirements % 66

2016 2017 2018 2019

Common Equity Tier I (CET1) 4.500 4.500 4.500 4.500

Tier 1 6.000 6.000 6.000 6.000

Brazilian BIS Ratio 9.875 9.250 8.625 8.000

Capital Conservation Buffer 0.625 1.250 1.875 2.500

Additional CET1 Countercyclical Buffer (superior limit) 0.625¹ 1.250 1.875 2.500

Additional CET1 Systemic (D-SIB) Buffer 0.000 0.250 0.500 1.000

CET1 + Buffers 5.125¹ 7.250 8.750 10.500

Tier 1 + Buffers 6.625¹ 9.000 10.250 12.000

Brazilian BIS Ratio + Buffers 10.500¹ 12.000 12.875 14.000

Implementation Schedule

(1) The Additional CET1 Countercyclical Buffer was not activated by the Central Bank in 2016, according to Central Bank Circular 3,769/15.

67

Tax Rate R$ Million

EBT Reallocations 1,202

Additional ALL 2,047

Tax Hedge 826

Other One-Off Items 24

Tax Base 4,100

IR/CSLL Reallocations 659

Interest on Own Capital Tax Benefit (291)

Statutory Profit Sharing (135)

Eq. Int. in Results of Subsidiaries and Affiliates (461)

Tax Hedge (826)

Tax Effect on One-Off Items (878)

Other 86.8

IR/CSLL (1,845)

EBT Effects Tax Rate Effects

Source: Income Statement with Reallocations and Explanatory Note 24.

Tax Rate: 45%

68

(1) Adjusted ROE estimated for 2015 uses estimated adjusted shareholders’ equity, free from the effects of: (i) the restatement of actuarial assets and liabilities arising from the Deliberation CVM/695; and (ii) minority interests in controlled companies. (2) It includes private securities and guarantees provided. (3) Allowance for Loan Losses expenses of the last twelve months / Average Classified loan portfolio for the same period.

2016 Guidance 2016 Performance 2016 Guidance

Revised

Adjusted Return on Equity¹ 11 - 14 5.6 9 - 12

Net Interest Income 7 - 11 13.7 Unchanged

Domestic Loan Portfolio² - Broad Concept 3 - 6 4.0 Unchanged

Individuals 5 – 8 8.7 Unchanged

Companies 1 – 4 -0.9 Unchanged

Agribusiness 6 - 9 9.8 Unchanged

Allowance for Loan Losses³ 3.7 – 4.1 3.9 4.0 – 4.4

Fee Income 7 - 11 2.5 Unchanged

Administrative Expenses 5 - 8 2.5 Unchanged

Guidance

Macroeconomic Information

4

70

Inflation and Selic Rate

6.50 5.84 5.91

6.41

10.67

8.13

10.67

9.39

7.28

6.00

11.00

7.25

10.00

11.75

14.25

12.75

14.25 14.25 14.19

12.75

4.50

1.41

4.09

5.34

3.58 4.62

3.58

4.86

6.91

6.75

2011 2012 2013 2014 2015 1Q15 4Q15 1Q16 2016 2017

IPCA – IBGE (% accumulated in 12 months) Selic (% - end of the period) Real Interest Rate¹

Source: Central Bank of Brazil and IBGE. Projection for 2016 and 2017, according to Boletim Focus as of 05/01/2016. (1) Real Interest Rate = Selic - IPCA

71

GDP

50.3 52.6 53.1 54.2 53.2 54.2 53.1

32.3 30.6

33.1 36.2

32.1

36.2

1.9

3.0

0.1

-3.8

-1.2

-3.8

2.2

1.7

-0.6

-1.9 -0.7

-1.9

2012 2013 2014 2015 1Q15 4Q15 1Q16

Credit/GDP (% accumulated in 12 months) Public Sector Net Debt (% GDP) GDP (% accumulated in 12 months) Primary Surplus (% accumulated in 12 months)

Source: Central Bank of Brazil .

72

Loans/GDP

Loans/GDP (%) and Evolution of Loan Portfolio of Banking Industry

Source: Central Bank of Brazil

50.3 52.6 53.1 54.2 53.2 53.1

3.1 3.1 3.0 3.2 3.1 3.2

2012 2013 2014 2015 1Q15 1Q16

Credit/GDP (% accumulated in 12 months) Loan Portfolio Banking Industry (R$ trillon)

73

Unemployment

109.2

100.0 99.0 96.2 98.9 97.3 96.3 98.7 97.6

45.2 40.2 38.5 38.9 37.1 35.0 36.0 37.1 36.2

Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16

Consumer Expectations (INEC) Business Confidence (ICEI)

-2.3

2.1

-3.0

-8.3

-4.6

-8.3

5.5 5.4 4.8

6.8 5.0

6.8

2012 2013 2014 2015 1Q15 1Q16*

Industrial Production (% accumulated in 12 months)

Unemployment Rate (% accumulated in 12 months)

Source: IBGE and Confederação Nacional da Indústria *As of 4Q15.

74

Trade Balance US$ Billion

29.8

19.4

2.3

-4.0

19.7

44.8

50.0

-5.6

9.4 8.4

2011 2012 2013 2014 2015 2016 2017 1Q15 4Q15 1Q16

Source: MDIC. Projection for 2016 and 2017, according to Boletim Focus as of 05/01/2016.

75

International Reserves

Gross Foreign Debt (R$ billion) International Reserves (US$ billion)

570.8

621.3

712.5

668.1 665.0

352.0

378.6 375.8 374.1

368.7

2011 2012 2013 2014 2015

Source: Central Bank of Brazil.

76

Source: World Bank and FAO

Brazil has the Ideal Conditions for Sustainable Growth Only a few countries have the same potential as Brazil

Sustainable Growth

Urban Population > 80 million people* (2011)

GDP > US$ 1 trillion*

UK

France

Korea

Italy

Canada Germany

Spain

Mexico

Japan

Indonesia

Kasakhstan

Argentina

Brazil

India

USA China Russia

Planting Area > 140 million ha*

Australia

*2011

77

Main Pilars of Brazilian Growth

Agriculture Foreign Trade Infrastructure

77

78

Overview

Area 8.5 million Km²

Population (2015) 204 million

GDP (2015) -3.8%

Agribusiness GDP (2015) 1.8%

Brazil’s Unique Advantages

Greater availability of arable land

in the world at low costs

Easy Access to Clean Water Supplies

Competitive Prices for Land

Excellent Climate

Rich soil

Source: Agriculture Ministry and IBGE

Brazilian Agribusiness: Overview

79

Brazilian Agribusiness: Area X Production

Planted Area (thousands Ha) vs Production (thousands Tons)

47,674 47,416 49,873 50,885 53,563 57,060 57,931 58,395

135,135

149,255 162,803 166,172

188,658 193,622

207,667 209,011

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 E

Planted Area Production

CAGR

54.7%

CAGR

22.5%

Source: CONAB

80

Brazilian Agribusiness: Undisputable Leadership

Brazil: World Commodities Ranking

Coffee

Orange Juice

Sugar

Soybean

Poultry

Beef

Corn

Production Export

Source: Agriculture Ministry

1st

1st

1st

3rd

2nd

3rd

1st

1st

1st

1st

1st

1st

2nd

1st

81

Source: Federal Government (MPOG) - Dec/15 *Private Service Terminal

The Federal Government holds Investment Programs in progress

R$51.9 bn IN PROGRESS

R$198.4 bn AUCTION LAUNCHED

PIL – Logistics Investment Program – Stage I (2012-2014)

PIL – Logistics Investment Program – Stage II (2015-2018)

R$186.0 bn AUCTION LAUNCHED

PIEE – Electricity Investment Program

+ than R$400bn Total Investment Forecast

R$8.5bn

Airports

R$86.4bn

Railroad

R$66.1bn

Highway

R$37.4bn

Ports

7 projects - R$27.7bn

Highway


Airports


TUPs*

R$116bn

Generation

R$70 bn

Transmission

Infrastructure: Investment Programs

82

Brazilian Foreign Trade Balance Evolution (US$ billion)

Brazilian Foreign Trade Balance: Overview

242.6 242.0 225.1

191.1

42.8 40.6

223.2 239.7

229.1

171.5

48.3 32.2

2012 2013 2014 2015 Mar/15 Mar/16

Exports (US$ billion – year accumulated) Imports (US$ billion – year accumulated)

Source: Ministry of Development, Industry and Foreign Trade.

19.4 2.3 -4.0

19.7

-5.6 8.4

Trade Balance (US$ billion – year accumulated)

83

Brazilian Exports (by country of destination¹)

Brazilian Foreign Trade Balance: Exports

17.2%

12.5%

7.5%

5.5%

3.2% 2.5% 2.3% 2.0% 2.0% 2.0% 1.9% 1.6%

China USA Argentina Netherlands Japan Germany Chile Mexico Belgium South Korea Italy India

Source: Ministry of Development, Industry and Foreign Trade. (1) YTD Mar/2016

84

Summary Table

Annual Collected Data Quarterly Data

2011 2012 2013 2014 2015 1Q15 4Q15 1Q16

Economic Activity

GDP (% YTD in 12 months) 3.9 1.9 3.0 0.1 -3.8 -1.2 -3.8

Family Consumption 4.7 3.5 3.5 1.3 -4.0 0.3 -4.0

Government Consumption 2.2 2.3 1.5 1.2 -1.0 0.5 -1.0

Gross Fixed Capital Formation 6.7 0.8 5.8 -4.5 -14.1 -7.8 -14.1

Exports 4.8 0.3 2.4 -1.1 6.1 -1.0 6.1

Imports 9.4 0.7 7.2 -1.0 -14.3 -2.5 -14.3

Use of Installed Capacity (%) 82.8 82.8 82.3 81.1 77.6 79.6 77.6

Economically active population - PEA (% YTD in 12 months) 1.2 1.7 -0.8 -0.1 -0.3 1.0 -0.3 -1.9

Unemployment Rate (% YTD in 12 months) 6.0 5.5 5.4 4.8 6.8 5.0 6.8

Formal employment – net creation in 12 m (thousand jobs) 1,566.0 868.2 730.7 152.7 -1,625.6 -215.7 -1,625.6

Industrial Production (% YTD in 12 months) 0.4 -2.3 2.1 -3.0 -8.3 -4.6 -8.3

External Sector

Current Transactions (% GDP in 12 months) -3.0 -3.1 -3.1 -4.3 -3.3 -4.5 -3.3 -2.4

Direct Foreign Investment (US$ billion - year accumulated) 101.2 86.6 69.2 96.9 75.1 13.1 75.1 16.9

International Reserves (US$ billion – end of period) 352.0 378.6 375.8 374.1 368.7 371.0 368.7 375.2

Sovereign Risk (basis points – EOP) 223.0 142.0 224.0 259.0 432.0 322.0 432.0 502.0

Trade Balance (US$ billion – year accumulated) 29.8 19.4 2.3 -4.0 19.7 -5.6 19.7 8.4

Exports (US$ billion – year accumulated) 256.0 242.6 242.0 225.1 191.1 42.8 191.1 40.6

Imports (US$ billion – year accumulated) 226.2 223.2 239.7 229.1 171.5 48.3 171.5 32.2

Trade Balance (US$ billion – quarterly accumulated) -5.6 9.4 8.4

Exports (US$ billion – quarterly accumulated) 42.8 46.6 40.6

Imports (US$ billion – quarterly accumulated) 48.3 37.2 32.2

Ptax Dollar Rate (EOP) 1.9 2.0 2.3 2.7 3.9 3.2 3.9 3.6

Ptax Dollar Rate (% YTD in 12 months) 12.6 8.9 14.6 13.4 47.0 41.8 47.0 10.9

All indicators were obtained from official sources such as Central Bank of Brazil, FGV( Getúlio Vargas Foundation), IBGE, etc.

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Summary Table

Annual Collected Data Quarterly Data

2011 2012 2013 2014 2015 1Q15 4Q15 1Q16

Monetary Ratios

IGP-DI FGV (% YTD in 12 months) 5.0 8.1 5.5 3.8 10.7 3.5 10.7 11.1

IGP-M FGV (% YTD in 12 months) 5.1 7.8 5.5 3.7 10.5 3.2 10.5 11.6

IPCA – IBGE (% YTD in 12 months) 6.5 5.8 5.9 6.4 10.7 8.1 10.7 9.4

Selic (EOP %) 11.00 7.25 10.00 11.75 14.25 12.75 14.25 14.25

Accumulated Selic (% YTD in 12 months) 11.6 8.5 8.2 10.9 13.4 11.3 13.4 14.2

Accumulated TR (exBTN) (% YTD in 12 months) 1.4 0.3 0.3 1.0 1.8 1.1 1.8 2.1

TJLP - IBGE (EOP %) 6.0 5.5 5.0 5.0 7.0 5.5 7.0 7.5

Libor (EOP %) 0.4 0.4 0.2 0.2 0.3 0.3 0.3 0.6

Public Finance

Primary Surplus (% GDP 12 months accumulated) 2.9 2.2 1.7 -0.6 -1.9 -0.7 -1.9

Public Sector Gross Debt (% GDP) 51.3 53.8 51.7 57.2 66.5 60.5 66.5

Public Sector Net Debt (% GDP) 34.5 32.3 30.6 33.1 36.2 32.1 36.2

Credit Ratios

Banking Industry Loan Portfolio (R$ billion) 3,017.5 3,060.7 3,100.4 3,017.5 3,216.9 3,060.7 3,216.9 3,160.7

Individuals (R$ billion) 921.1 1,075.8 1,245.8 1,412.1 1,512.2 1,438.7 1,512.2 1,520.3

Companies (R$ billion) 1,112.9 1,292.6 1,465.5 1,605.4 1,707.2 1,622.0 1,707.2 1,640.4

Credit/GDP (% YTD in 12 months) - (%) 46.5 50.3 52.6 53.1 54.2 53.2 54.2 53.1

Household Debt (%) 41.6 43.6 45.1 46.0 45.6 46.1 45.6

Total Default (% past due loans over 90 days) 3.6 3.7 2.8 2.7 3.1 2.8 3.4 3.5

All indicators were obtained from official sources such as Central Bank of Brazil, FGV( Getúlio Vargas Foundation), IBGE, etc.

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institutional presentation 1q16 - bb · 2016-05-20 · institutional presentation 1q16 . disclaimer...

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