institutional presentation 4q15 - bb · institutional presentation 4q15 . disclaimer this...

Institutional Presentation

4Q15

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

Macroeconomics 4

Company Profile

1

5

Founded in 1808

57.7%1 controlled by the Federal Government

Largest Bank in Latin America in total assets

Acess to a broad spectrum of individuals and clients

5

1st company listed on the stock exchange in Brazil

(1) As of Dec/2015.

6

Large, diversified and stable funding base

Business diversification including segments:

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

IPO

2010

Conversion preferred shares to commom shares

2001 Private offering for bonus subscription

2004

ADR 1 Launching

2009

100% Tag Along clause

2002

BB Shares enter the ITAG portfolio

2003

Public offering (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 de Susteinability Index (DJSI) of NY stock exchange

2012

8

1st company listed on the stock exchange in Brazil

1906

9

Ownership Structure

Free Float 39.8% as of Dec/2015 Free Float Breakdown (%)

Treasury Shares 2.5%

National Treasury 57.7% Foreign

Investors 21.1%

Other 18.6%

15.5 18.5 18.8 20.4 21.1

25.3 21.6 20.7 19.2 18.6

40.8 40.0 39.5 39.7 39.8

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

Foreign Investors Other

10

Presence in Brazil

NORTH

27.9% NORTHEAST

31.3%

SOUTHEAST

20.3%

SOUTH

24.7%

MIDWEST

26.3%

Structural data (Dec/15)

Points of services1

17,614

Branches

5,429

Clients

62,472 mil

Employees

109,191

(1) Own Service Network

Own Service Network

Branches

MaisBB Network¹

Shared Service Network2

17,614

5,429

14,361

35,708

Total 67,683

(1) Banking Agents and Postal Bank branches.

Market Share – 23.7%

(Number of branches)

Brazil Total Service Network Dec/15

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

e ATM (BRB+CEF).

11

11

Specialized Offices

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

836

2,155

Our more than 62 million clients count on more than 67 thousand points of service, present in 99.7% of the Brazilian municipalities and an increasingly digital Bank.

16 Very Small and Small Companies offices in Brazil.

Expansion project all over the country.

2016: Prevision of opening 30 new Offices.

104 BB Estilo Digital branches.

More than 300 thousand benefited clients.

More than 200 Branches by the end of 2016

More than 1 million benefited clients in 2016.

Service Network Channels

(1) Owned by BB.

4Q14

4Q15

Dec/15 Internet

27.9%

Mobile

31.9%

ATM¹

20.7%

In Branches

3.9%

Others

15.6% +157.6%

12

Global Presence 12

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

13

Customer Segmentation

Individuals Companies

13

Private > R$ 2mm

Estilo > R$ 8k

Personalizado > 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

14

Assets and Market Share

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

1,584.0

Available Funds, Short-Term

Interbank Investments, Interbank and

Intrabank Accounts

Securities and Financial Derivatives

R$ Billion

Loans

Permanent Assets

Other

981.2

1,149.3

1,303.9

1,437.5

1,584.0

21.3 21.2 21.7 20.8 20.1*

Dec/11 Dec/12 Dec/13 Dec/14 Dec/15

Assets Market Share¹ (%)

1.3%

13.1%

16.6%

28.0%

41.0%

Share % - Dec/15

15

Dec/14 Sep/15 Dec/15

Payroll 62,357 63,801 64,333

Consumer Finance 5,798 6,888 7,022

Salary Loans 16,836 19,425 18,610

Mortgage 28,487 35,188 37,169

Auto Loans 23,589 23,094 22,273

Credit Cards 22,149 21,483 23,470

Overdraft 2,298 2,564 2,272

Microcredit 1,341 839 779

Other 4,760 5,661 6,678

TOTAL 167,615 178,944 182,605

81.8% 82.9% 81.8%

Loans to Individuals

R$ Million

16

Carteira PJ por setor

Dec/14 Share % Sep/15 Share % Dec/15 Share % Oil and Gas 41,113 9.2% 49,270 10.4% 47,716 10.0%

Foodstuffs of Vegetable Origin 36,610 8.2% 37,302 7.9% 37,512 7.9%

Metalworking and Steel 42,130 9.4% 43,723 9.3% 43,986 9.2%

Services 25,828 5.8% 25,226 5.3% 24,869 5.2%

Foodstuffs of Animal Origin 14,928 3.3% 14,519 3.1% 15,173 3.2%

Automotive 25,921 5.8% 28,408 6.0% 28,189 5.9%

Eletricity 36,974 8.3% 40,122 8.5% 40,528 8.5%

Transport 27,778 6.2% 34,225 7.2% 33,633 7.1%

Telecommunication 9,664 2.2% 7,844 1.7% 7,740 1.6%

Retail Trade 19,922 4.5% 19,384 4.1% 19,435 4.1%

Textile and Garments 13,315 3.0% 12,378 2.6% 11,794 2.5%

Pulp and Paper 11,076 2.5% 10,945 2.3% 10,715 2.2%

Electrical and Electronic Goods 11,727 2.6% 10,074 2.1% 9,868 2.1%

Financials Institutions 13,408 3.0% 13,328 2.8% 17,456 3.7%

Government 29,634 6.6% 40,526 8.6% 42,924 9.0%

Agricultural Consumables 11,095 2.5% 11,076 2.3% 11,740 2.5%

Chemicals 9,569 2.1% 9,686 2.1% 9,339 2.0%

Timber and Furniture 7,029 1.6% 6,685 1.4% 6,394 1.3%

Wholesale Trade and Industries 7,958 1.8% 6,930 1.5% 6,838 1.4%

Beverages 1,753 0.4% 1,812 0.4% 1,875 0.4%

Leather and Shoes 3,180 0.7% 3,102 0.7% 3,040 0.6%

Specific Bulding Activities 15,480 3.5% 15,271 3.2% 15,742 3.3%

Housing 20,414 4.6% 21,122 4.5% 22,013 4.6%

Heavy Construction 9,442 2.1% 8,817 1.9% 8,305 1.7%

Other Activities 722 0.2% 414 0.1% 157 0.0%

Total 446,666 100.0% 472,189 100.0% 476,979 100.0%

Company Portfolio by Macro-sector

Included Agro Companies Portfolio

R$ Million

17

6.1% growth in the past 12 months

60.9% of the total Rural Credit is at Banco do Brasil

21.5% of Banco do Brasil Credit Portfolio*

Agribusiness

Portfolio

R$174.9Billion

17

The Agribusiness Bank in Brazil

*It considers Agribusiness Broad Concept Portfolio

18

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.

18

2,483

2,187 2,185

28% 27% 30%

4Q14 3Q15 4Q15

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

ACC/ACE

19

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

Commercial Funding¹ 615,095 619,799 632,913 641,603 639,193 660,175 669,506

Domestic Onlending 90,991 86,061 89,157 90,686 90,032 90,543 90,065

Financial and Development

Funds 8,405 9,569 10,840 12,265 12,404 14,677 15,003

Subordinated Debt 48,406 47,646 49,413 49,664 50,764 54,256 54,018

Capital Eligible Debt³ 16,270 27,908 29,351 32,876 32,441 37,926 35,393

Commercial Paper ⁴ 2,406 2,475 2,549 2,622 2,705 47 2,106

HCDI domestic 8,318 90 - - - - -

Foreign Borrow ing² 58,418 52,427 53,942 62,578 63,536 83,199 71,005

Compulsory Deposits (86,567) (78,714) (63,224) (56,613) (57,168) (60,362) (60,811)

Total 761,743 767,260 804,941 835,681 833,906 880,461 876,285

Sources

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

Foreign Securities 28,937 28,886 28,560 31,175 34,803 44,103 33,511

Foreign Borrowing 17,258 18,735 20,516 25,133 23,074 31,236 29,617

Foreign Onlending 0 0 0 0 0 9 10

HCDI abroad 3,906 4,717 4,866 6,269 5,660 7,851 7,867

Subordinated debt abroad 7,191 7,149 7,851 9,363 9,186 11,600 11,553

Total² 57,292 59,487 61,793 71,941 72,722 94,800 82,557


Demand Deposits 69,313 69,398 74,224 73,705 64,755 66,063 66,550

Savings Deposits 146,461 148,996 148,699 144,089 147,306 149,764 151,845

Interbank Deposits 27,830 27,638 30,354 36,736 33,337 41,465 41,483

Time Deposits 126,530 110,622 99,889 93,304 82,126 89,068 90,890

Judicial Deposits 107,244 110,095 115,010 118,591 116,805 116,107 113,652

Agribusiness Letters of Credit 98,399 104,094 102,325 118,263 132,372 134,555 134,823

Mortgage Bonds 8,204 7,772 14,156 19,067 18,526 18,474 18,121

Repurchase Agreement w ith Private

Securities¹ 31,113 41,184 48,256 37,848 43,965 44,678 52,142

Total 615,095 619,799 632,913 641,603 639,193 660,175 669,506

Commercial Funding

Foreign²

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

(2) Includes Foreign Borrowings, Foreign Securities, foreign Onlending, Subordinated debt abroad, Hybrid Capital Instruments Abroad 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.

20

Emissões no Exterior

International Bonds Issued

Issue Date Volume (US$

million) Currency Term in Years Coupon (%) Structure

Rating ¹ (S&P / Moody´s/Fitch)

7/18/2007 187 BRL 10 9.750 Senior SR / Ba2 / SR

04/29/2008 150 USD 10 5.250 Securitization BBB+ / Baa2 / SR

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

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

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

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

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

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

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

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

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

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

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

12/20/2013 307 CHF 6 2.500 Senior BB / Ba2 / BB+

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

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

Foreign Borrowing

(1) Ratings were revised in 02/29/2016.

21


Available Funds 109,337 100,358 114,692 133,382 128,739 157,080 143,367

Net Loan Portfolio (a) = (b) + (c) + (d) 652,406 666,902 690,249 702,298 705,167 723,381 732,918

Classified Loan Portfolio (b) 629,323 643,577 669,020 682,188 687,664 710,612 717,849

Private Securities (c) 45,786 47,082 46,524 46,973 45,078 44,695 48,645

Allowance for Loan Losses (d) (22,703) (23,757) (25,295) (26,862) (27,575) (31,926) (33,577)

Adjusted Net Loan Portfolio (a) - (e)* 525,077 551,192 569,784 578,272 581,104 596,114 604,855

Domestic Onlending Loans (e) 127,329 115,710 120,465 124,026 124,063 127,267 128,063

Uses 761,743 767,260 804,941 835,681 833,906 880,461 876,285

Uses

Indicators (%)

Adjusted Net Loan Portfolio* / Commercial Funding** 85.4 88.9 90.0 90.1 90.9 90.3 90.3

Commercial Funding** 615,095 619,799 632,913 641,603 639,193 660,175 669,506

22

(%) 4Q14 1Q15 2Q15 3Q15 4Q15

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



Marked 72 72 72 74 74

Unmarked 5 5 7 5 5

Mortgage



Marked 65 65 65 65 65

Unmarked 5 5 5 5 5

Time Deposits



Unmarked 69 69 69 64 64

Compulsório e Direcionamento Compulsory and Reserve Requirements

23

Leadership

Assets (R$ billion – Dec/15)

Loan Portfolio (R$ billion – Dec/15)

Assets Under Managmt.¹ (R$ billion – Dec/15)

Deposits (R$ billion– Dec/15)

1,584.0

1,322.7

1,018.9

BB Bank A Bank B

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

20.1% Market Share¹

814.8

590.7

474.0

BB Bank A Bank B

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


603.2

500.6

385.3

BB Bank A Bank B

(1) It does not include Banco Votorantim (2) Source: Anbima - Market Share as of Dec/2015


465.3

292.6

195.8

BB Bank A Bank B

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

23.1% Market Share¹ 1st 1st 1st 1st

24

Leadership

Cards

Total turnover

Debit

Credit

1st

2nd

Insurance - Collection

Business 4Q15

Life

Rural

Pension Plan2

Premium Bonds

Vehicle

Source: Abecs Sep/15 Source: Susep Dec/15

1st

1st

1st

2nd

1st

25

18.0%

13.9%

12.2% 12.2% 11.0%

BB Bank 1 Bank 2 Bank 3 Bank 4

24.7%

15.3%

11.0%

8.6%

5.9%

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 – Dec/15

26

Means of Payment

Chart:

Banco do Brasil BB Banco de Investimentos

BB Adm Cartões

BB ELO Cartões

100%

100%

100%

| Participações

Serviços

49.99%

70%

66.64%

100%

40.95%

50,1%

100%

100%

\

100%

70%

100%

100%

30%

28.65%

30%

27

Awards and Achievements

28

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 Comittees

14 Executive Comittees

3 Other Comittees

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

29

Banco do Brasil: Ratings

2011 2012 2013 2014 2015

Standard & Poor's

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

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

Moody's

Financial strength C+ C- C- C- -

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

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

Long-Term Deposits - Local Currency A2 A3 Baa2 Baa2 Baa3

Fitch Ratings

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

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

29

Banking Industry

2

31

80.1 81.3 80.7 87.6 88.2 89.2 91.8 92.1 92.5

5 Largest 10 Largest 20 Largest

77.8 78.2 76.2

87.8 88.0 87.3 92.9 93.1 92.8


Concentration - %

Assets Loans

Source: Central Bank of Brazil *Sep/15

2013 2014 2015* 2013 2014 2015*

32

Concentration - %

Deposits Assets under Management Card Revenue** (Sep/15)

82.2 82.5 79.4

88.2 88.2 90.8 93.4 93.6 95.7


2013 2014 2015 2013 2014 2015*

68.2

85.4

3 largest 5 largest

65.4 67.1 69.3

88.8 88.7 88.8

5 Largest 10 Largest

Source: Central Bank of Brazil *Sep/15 ** Source: Abecs

Earnings Highlights

3

34

Net Interest Income Grew by 13.3%

Pre-Tax and Pre-Provision Earnings Increased by 17.2%

Fee Income Increased by 9.2%

Administrative Expenses Under control (6.9% growth)

Cost to income ratio Improved to 40.8%

Highlights 2015 / 2014

35

Net Income

Quarter

Annual

*BB Conglomerate.

.

(924) (740)

2,648 2,512 2,881 816

343 271

(136)

3Q15 Adj. NetIncome

NII ALL Fee Income AdministrativeExpenses

Other 4Q15 Adj. NetIncome

One-Off Items 4Q15 Net Income

-8.1%

(6,735) (2,218)

11,594

14,400

11,343

6,704 2,279

222

2,805

2014 Adj. NetIncome

NII ALL Fee Income AdministrativeExpenses

Other 2015 Adj. NetIncome

One-Off Items 2015 Net Income

+2.2%

R$ Million

36

Pre-Tax and Pre-Provision Earnings

32.3 37.1

43.5

2013 2014 2015

+14.9%

+17.2%

R$ Billion

37

Earnings per Share (R$)

Market Ratios

1.08

2.07

1.05 1.08 0.89 1.05 1.06 1.06 1.01 0.92

4Q14 1Q15 2Q15 3Q15 4Q15Earnings per share Adjusted Earnings per Share

Dividend Yield1 (%)

6.81 8.95 8.56

13.98 13.96

4Q14 1Q15 2Q15 3Q15 4Q15

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

Source: Economatica. Source: Economatica.

Price/Book Value Price/Earnings 12 months

5.91

4.45 4.66

2.86 2.86


0.82 0.77 0.82

0.51 0.50


38

Loan Portfolio – Broad Concept¹

(1) It includes private securities and guarantees provided.

347.1 351.8 346.4 355.2 364.6

168.1 171.0 176.8 179.7 183.3

164.9 163.4 168.3 171.8 174.9

61.8 72.1 68.5 81.7 73.8 20.0 20.0 18.2

18.1 18.1 762.0 778.3 778.2 806.5 814.8

20.4 20.2 20.3 20.3 20.4


Corporates Individuals Agribusiness Offshore Jointly Controlled Companies Market Share - %

R$ Billion

39

39


Balance Provision Share %



AA 395,243 - 59.1 397,204 - 55.9 373,298 - 52.0

A 95,017 475 14.2 117,209 586 16.5 144,778 723 20.2

B 122,589 1,226 18.3 126,287 1,263 17.8 124,925 1,249 17.4

C 22,588 677 3.4 29,421 883 4.1 25,526 766 3.6

D 3,287 329 0.5 5,491 549 0.8 11,033 1,103 1.5

E 9,366 2,810 1.4 10,255 3,076 1.4 11,797 3,539 1.6

F 3,520 1,760 0.5 3,758 1,879 0.5 4,768 2,384 0.7

G 2,663 1,864 0.4 3,340 2,338 0.5 3,806 2,664 0.5

H 14,748 14,748 2.2 17,646 17,646 2.5 17,919 17,919 2.5

Total 669,020 23,889 100.0 710,612 28,220 100.0 717,849 30,349 100.0

AA-C 635,436 2,379 95.0 670,122 2,732 94.3 668,526 2,739 93.1

D-H 33,584 21,511 5.0 40,490 25,489 5.7 49,323 27,610 6.9

Total Loan Portfolio - Risk Level *

* BB Multiple Bank

R$ Million

40

10.3 11.7 11.9

28.5 35.2 37.2

38.8 46.9 49.1

0.61

1.17 1.16


Mortgages withIndividuals

Mortgages withCompanies

Mortgage withIndividuals NPL +90days (%)

Salary Loans Auto Loans²

Mortgages Payroll²

Growth in lower risk lines¹

88.8 88.9 89.0

7.3 7.5 7.5

3.9 3.6 3.5

58.8 61.8 62.5

1.50

1.31 1.26


INSS Retirees andPensioners

Private SectorEmployees

Civil Servants

Payroll NPL +90 days(%)¹

16.8 19.4 18.6

3.18 2.28 2.49


Total

Salary Loans NPL +90days (%)

23.6 23.1 22.3

0.87 0.82 0.90


Auto Loans

Auto Loans NPL +90 days(%)

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

+10.5%

+6.2%

-5.6%

R$ Billion

+26.6%

41

Relationship

Individuals Portfolio¹ Individuals Portfolio Profile²

66.2% 66.8% 67.3%

21.0% 21.0% 20.4%

7.8% 7.9% 8.1% 5.0% 4.3% 4.2%


Time of Relationship

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

78.6% 79.4% 79.6%

14.2% 13.4% 13.2%

7.1% 7.3% 7.2%


Direct Consumer Credit + Auto Loans

Civil Servants

Private Sector Employees

INSS Retirees and Pensioners

(1) BB Classified Loan Portfolio.

(2) BB Organic Loan Portfolio.

42

(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

+5.0%

+5.0%

10.7% s/ Dec/14

-8.4% s/ Dec/14

Loans to Companies – Broad Concept¹

183.0 180.5 183.5

106.6 104.7 109.0

21.7 26.1 23.4 16.5 18.1 19.6

19.4 25.8 29.1

347.1 355.2 364.6


Working Capital² Investments + Private Securities Guarantees Trade Finance³ Other

R$ Billion

102.2 95.2 93.6

244.9 260.0 271.0

347.1 355.2 364.6


Very Small and Small Companies⁴ Middle Market, Corporates and Government

43

Relationship Amount Distribution by Time of

Company Foundation – Very Small

and Small Companies Portfolio

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

Total

Amount

R$93.6bn

39.0% 41.6% 42.5%

32.7% 33.3% 33.3%

21.8% 21.1% 20.7%

6.4% 4.1% 3.5%


Time of Relationship

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

1.0

12.8

29.1

33.8

23.3

Up to 2years

From 2 to5 years

From 5 to10 years

From 10to 20years

More than20 years

Very Small and Small Companies Portfolio¹

44

Agribusiness

Agribusiness Loan Portfolio by Costumer Type¹

(1) It includes Rural Product Bills and guarantees provided. (2) Source: Central Bank of Brazil – Dec/2015.

Harvest 15/16 (Dec/15)

Use of Mitigators (Working Capital for Input Purchase)

47.2 44.7 47.6 51.2 51.6

117.7 118.7 120.7 120.6 123.3

164.9 163.4 168.3 171.8 174.9

60.8 60.0 61.0 60.5 60.9


Companies Individuals Market Share - %

Insured

67%

Not Insured

33%

Total disbursement in15/16 harvest

R$ 43.6 billion 1st 60.9 % Market Share²

45

Renegotiated Overdue Loan Portfolio¹

Consolidated

4Q14 3Q15 4Q15

Credits Renegotiated by Delay - Changes

Initial Balance 7,876 12,701 15,520

Contracts 1,929 3,783 6,015

Amortization and capitalized interest (260) (461) (1,037)

Write Off (515) (503) (845)

Final Balance 9,030 15,520 19,653

Allowance for Loan Losses Balance 5,742 7,464 8,585

NPL + 90 days 1,424 2,469 3,171

Indicators - %

ALL for Loan Losses / Loan Portfolio 63.6 48.1 43.7

NPL + 90 days / Loan Portfolio 15.8 15.9 16.1

ALL for Loan Losses Balance/NPL + 90 days 403.1 302.2 270.7

Credits Renegotiated/Classified Loan Portfolio 1.3 2.2 2.7

(1) Table according Notes 10.k Renegotiated Loan Portfolio.

R$ Million

46

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

BB x Peers¹

Renegotiated Loan Portfolio – 4Q15

19,653 13,832

2.7

3.3

BB Peers Average¹

Renegotiated Loan Portfolio

Renegotiated LoanPortfolio/Classified Loan Portfolio(%)

6,374 6,511 6,431 6,735 7,404

5,742 6,111 6,616

7,464 8,585

25.9 25.0 23.9

21.9 20.3

15.8 15.6 13.6

15.9 16.1


Peers Average - ALL Balance

BB - ALL Balance

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

BB - Renegotiated Portfolio NPL +90 days (%)

R$ Million

Renegotiated Loan Portfolio

47

Delinquency Ratios¹

NPL Ratio +90 days (%)

NPL Ratio +90 days (%)

(1) Classified Loan Portfolio.

NPL +15 Days (%)

2.90 2.90 2.70 2.80 2.90 3.10 3.40

1.77 1.91 1.86 1.84 1.89 2.06 2.24


Banking Industry

BB Consolidated

2.32 2.39 2.30 2.20 2.16 2.17 2.17

0.56 0.59 0.69 0.82 0.73 0.84 0.97

2.43 2.68 2.59 2.52 2.72

3.10 3.42


Individuals Agribusiness Companies

4.27 4.32 4.26

4.60 4.47 4.79 4.52

3.80 4.07 3.90

4.69 4.50 5.62 5.56

0.91 1.08 1.19 1.29 1.29 1.69 1.66


Individuals Companies Agribusiness

48

Annual Vintage – Very Small and Small Companies Loan

Portfolio Annual Vintage – Individuals Loan Portfolio

Vintages

49

NPL Formation and Average Risk

(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. (3) Required Provision / Classified Loan Portfolio.

New NPL¹, Write Off and NPL Formation Rate

Average Risk³ (%)

4.54 4.76 3.86 4.28

4.91 5.59

6.22

4.16 3.63 3.69 4.16 4.45 3.97 4.81

0.74 0.75 0.59 0.64 0.72 0.81 0.87

83.57 99.85 126.76 131.99 105.64 103.08 112.32


New NPL (R$ billion)

Write Off (R$ billion)

Quarterly ALL/New NPL (%)

New NPL / Loan Portfolio² (%)

3.36 3.47 3.57 3.74 3.81 3.97 4.23

4.80 4.80 4.90 4.90 5.00 5.50 5.70


Banco do Brasil

Banking Industry

50

Asset Quality

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

Coverage Ratio +90 days (%) and ALL Balance (R$ million)¹

ALL by Segment²

-23 -56

56 206 144 176 391 2,600 2,543 2,832 3,142 3,810 3,832

4,319 1,197 1,382 1,291

1,405 680 1,221

1,326

400 431 712

902 557 536

954

4,174 4,301 4,890

5,654 5,191

5,765

6,991


Agribusiness

Individuals

Companies

Abroad

20,517 21,173 22,342 23,889 25,482 26,170 28,220 30,349

1,419 1,530 1,414 1,405 1,380 1,405 3,705

3,228

21,936 22,703 23,757 25,295 26,862 27,575 31,926

33,577

168.97 165.52 165.52

181.48 175.00 172.41 177.42

167.65

203.97 203.77 193.64

203.48 213.99 211.79

218.07 209.19

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

Additional (Complementary) Provision -R$ million

Required Provision - R$ million

Banking Industry

Banco do Brasil

51

10,579

13,577 15,653

18,951

26,002

17,411 19,133

21,565

25,295

33,577

2011 2012 2013 2014 2015¹

IFRS ALL Balance BRGAAP ALL Balance²

R$ million

Allowance for Loan Losses: IFRS x BRGAAP

(1) IFRS ALL Balance: numbers not audited. (2) BB Conglomerate from 2011 to 2013 and it does not consider BV. In 2014 and 2015, BB Multiple Bank.

52

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

Classified Loan Portfolio – Growth by Risk Level

7.3%

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

629,932 644,255 659,843 675,671 690,144

17,172 19,020 20,036 21,500 23,600

2.7 3.0 3.0 3.2

3.4

4Q14 1Q15 2Q15 3Q15 4Q15

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

654,043 672,290 683,547 695,770 711,477

4,890 5,654 5,191 5,765 6,991

0.7 0.8 0.8 0.8 1.0

4Q14 1Q15 2Q15 3Q15 4Q15

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

669,020 33,090 7,746 2,431 1,248 1,143 3,170 717,849

Dec/14 AA-C D E F G H Dec/15

R$ Billion

53

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 2.38 2.37 2.49

4.44 4.21

4.05 4.03 4.23


Banco do Brasil Peers Average²

54

ALL Balance – Current and Past Due Operations

1.5 1.5 1.5

3.9 3.4

11.9 13.0 13.6 13.6

15.4 13.9 14.4 14.4

16.5 16.8

27.3 28.9 29.5

34.0 35.7

4Q14 1Q15 2Q15 3Q15 4Q15

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

R$ Billion

* BB Conglomerate

55

Net Interest Income

R$ million 4Q14 3Q15 4Q15

Chg. % On 4Q14

Chg. % On 3Q15

2014 2015 Chg. % On 2014

Net Interest Income 13,483 14,364 15,180 12.6 5.7 50,346 57,050 13.3

Loan Operations Income 22,291 25,599 26,393 18.4 3.1 84,494 98,519 16.6

Funding Costs (9,184) (11,700) (11,381) 23.9 (2.7) (34,524) (42,841) 24.1

Institutional Funding Costs¹ (3,296) (4,130) (4,159) 26.2 0.7 (12,984) (15,579) 20.0

Recovery of Write-offs Loans 1,065 804 1,346 26.4 67.4 3,648 4,059 11.3

Treasury Income² 2,607 3,792 2,981 14.3 (21.4) 9,712 12,892 32.7

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

(1) It Includes senior debt, subordinated debt and hybrid capital instrument and abroad (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 4.4 4.3 4.5 4.7

2.7 2.4 2.5 2.5 2.3

4Q14 1Q15 2Q15 3Q15 4Q15

NIM Risk Adjusted NIM

13.8 13.5 14.0

14.9 15.5

7.0 6.9 7.0 7.1 7.4

5.7 5.5 5.6 5.7 5.8

5.1 4.9 4.8 4.5 4.8

4Q14 1Q15 2Q15 3Q15 4Q15

Individuals Loan Operations⁴ Companies⁵ Agribusiness

56

Net Interest Income¹

Revenue from loans

Funding Costs

7.9 8.4 9.0 9.2 9.4 10.4 11.7 11.4 3.2 3.3 3.2 3.2 3.6 3.7 4.1 4.2

9.0 9.8 10.4 10.9 11.3 11.9 12.6 13.3

77.71 78.36 77.19 77.34 76.80 77.48 76.64 75.67

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

Funding Costs Institutional Funding Accumulated Selic (% YTD in 12 months)² Funding Costs - % Selic

(1) BB Conglomerate. (2) Source: Central Bank of Brazil

19.8 20.9 21.5 22.3 22.8 23.7 25.6 26.4

9.0 9.8 10.4 10.9 11.3 11.9 12.6 13.3

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

Revenue from Loans Accumulated Selic (% YTD in 12 months)²

57

Fee Income

4Q14 3Q15 4Q15

Chg. On

4Q14

Chg. On

3Q15 2014 2015 Share %

Chg. On

2014

Fee Income 6,671 6,907 7,250 8.7 5.0 24,647 26,925 100 9.2

Credit / Debit Cards 1,806 1,635 1,753 (3.0) 7.2 6,461 6,504 24.2 0.7

Account Fees 1,212 1,374 1,458 20.4 6.2 4,610 5,227 19.4 13.4

Asset Management Fees 1,110 1,254 1,220 9.9 (2.7) 4,133 4,726 17.6 14.4

Loan Fees 470 503 631 34.1 25.3 1,804 1,993 7.4 10.5

Collections 397 435 419 5.6 (3.7) 1,487 1,700 6.3 14.3

Insurance, Pension and Premium Bonds 282 231 254 (10.2) 9.8 1,003 1,012 3.8 0.9

Billings 253 250 262 3.4 4.8 944 1,045 3.9 10.7

Interbank 197 196 200 1.7 2.2 749 775 2.9 3.5

Capital Market 129 90 154 19.3 70.3 481 522 1.9 8.4

Fiduciary Services 116 130 123 6.4 (5.3) 445 490 1.8 10.1

Consortium 94 109 113 20.1 4.3 336 427 1.6 26.9

Other 603 700 663 9.8 (5.3) 2,193 2,504 9.3 14.2

57

R$ Million

58

BB Seguridade

Adjusted Net Income (R$ million)

906 988 1,014

3,223

3,945

4Q14 3Q15 4Q15 2014 2015

11.9%

22.4%

59

Banco Votorantim

Net Income (R$ million)

Delinquency and Risk (%)

75

122 146 137

77

4Q14 1Q15 2Q15 3Q15 4Q15

89.6% 89.5% 89.8% 89.7% 88.8%

10.4% 10.5% 10.2% 10.3% 11.2%

5.7% 6.5%

5.2% 5.3% 5.7%

4Q14 1Q15 2Q15 3Q15 4Q15

AA-C D-H NPL + 90 days

60

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.

4.9 5.0 5.3

18.4 20.3

3.8 3.5 4.0

13.8 14.2

43.5

39.9 40.4 43.6

40.8

4Q14 3Q15 4Q15 2014 2015

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

R$ Million

61

9.04 8.68 8.71 8.07 8.17

2.35 2.68 2.65 3.54 3.22

16.11 16.02 16.18 16.20 16.13


Core Capital AT I Tier II

BIS Ratio %

4.72 4.66 4.82 4.59 4.74

Tier I 11.39%

62

BIS Ratio

Tier 1

Full application of Basel III rules

16.1 15.1 14.7

0.9 15.6

(1.1) (0.4)

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

10.2 10.0 10.9 11.4

(1.2) (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

63

BIS III – Capital Requirements % 63

2015 2016 2017 2018 2019

Common Equity Tier I (CET1) 4.500 4.500 4.500 4.500 4.500

Tier 1 6.000 6.000 6.000 6.000 6.000

Brazilian BIS Ratio 11.000 9.875 9.250 8.625 8.000

Capital Conservation Buffer 0.000 0.625 1.250 1.875 2.500

Additional CET1 Countercyclical Buffer (superior limit) 0.000 0.625¹ 1.250 1.875 2.500

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

CET1 + Buffers 4.500 5.750 7.250 8.750 10.500

Tier 1 + Buffers 6.000 7.250 9.000 10.250 12.000

Brazilian BIS Ratio + Buffers 11.000 11.130 12.000 12.880 14.000

Implementation Schedule

(1) The Additional CET1 Countercyclical Buffer was not activated by the Central Bank in 2016, according to CMN Resolution 4,443/2015.

64

(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) Commercial Funding includes Total Deposits, Agribusiness Letters of Credit, Real Estate Letters of Credit and Repos with Corporate Bonds. (3) It includes private securities and guarantees provided. (4) Allowance for Loan Losses expenses of the last twelve months / Average Classified loan portfolio for the same period.

2015 Guidance 2015 Performance

Adjusted Return on Equity¹ 13 - 16 13.0

Net Interest Income 11 - 15 13.3

Commercial Funding² 5 - 9 5.9

Domestic Loan Portfolio³ - Broad Concept 7 - 11 5.9

Individuals 6 - 10 7.5

Companies 5 - 9 5.0

Agribusiness 10 - 14 6.1

Allowance for Loan Losses⁴ 3.1 – 3.5 3.6

Fee Income 7 - 10 9.2

Administrative Expenses 5 - 8 6.9

Guidance

65

(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

Adjusted Return on Equity¹ 11 - 14

Net Interest Income 7 - 11

Domestic Loan Portfolio² - Broad Concept 3 - 6

Individuals 5 – 8

Companies 1 – 4

Agribusiness 6 - 9

Allowance for Loan Losses³ 3.7 – 4.1

Fee Income 7 - 11

Administrative Expenses 5 - 8

Guidance

Macroeconomics

4

67

Inflation and Selic

6.50 5.84 5.91

6.41

10.67

6.41

9.49

10.67

7.62

6.00

11.00

7.25

10.00

11.75

14.25

11.75

14.25 14.25 14.25

12.63

4.50

1.41

4.09

5.34

3.58

5.34 4.76

3.58

6.63

6.63

2011 2012 2013 2014 2015 4Q14 3Q15 4Q15 2016 2017

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

Source: Central Bank of Brazil and IBGE. Projection for 2016 and 2017, according to Boletim Focus as of 02/19/2016. (1) Taxa Real = Selic - IPCA

68

GDP

46.5

50.3 52.6 53.1 54.0

54.2

51.3

53.8 51.7 57.2 57.2

64.7

3.9

1.9

3.0

0.1 0.1

-2.5

2.9

2.2

1.7

-0.6 -0.6

-0.4

2011 2012 2013 2014 4Q14 4Q15*

Credit/GDP (% YTD in 12 months) PSND (% GDP)

GDP (% YTD in 12 months) Primary Surplus (%GDP in 12 months)

Source: Central Bank of Brazil . *PIB, Primary Surplus and PSND refers to 3Q15.

69

Loans/GDP

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

Source: Central Bank of Brazil

46.5 50.3 52.6 53.1 54.2

2.03 2.37 2.71 3.02 3.22

2011 2012 2013 2014 2015

Loans/GDP (% YTD in 12 months) Loan Portfolio Banking Industry (R$ trillon)

70

Unemployment

109.7 109.7 104.2

100.0 98.7 97.9 96.3 97.6 96.3

46.5 44.8 44.4

37.5 38.6 37.2 35.7 36.4 36.0

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

Consumer Expectations (INEC) Business Confidence (ICEI)

0.4

-2.3

2.1

-3.1 -3.1

-6.4

6.0 5.5 5.4 4.8

2.2

-2.1

2011 2012 2013 2014 4Q14 3Q15

Industrial Production (YTD % in 12 months)

Unemployment Rate (YTD % in 12 months)

Source: IBGE and National Confederation of Industry

71

Trade Balance US$ Billion

29.8

19.4

2.3

-4.0

19.7

37.1

39.7

-3.3

8.0 9.4

2011 2012 2013 2014 2015 2016 2017 4Q14 3Q15 4Q15

Source: MDIC. Projection for 2016 and 2017, according to Boletim Focus as of 02/19/2016.

72

International Reserves

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

516.0

570.8

621.3

712.5

668.1

352.0

378.6 375.8 374.1

368.7

2011 2012 2013 2014 2015*

Source: Central Bank of Brazil. (*) Refers to 3Q15.

73

Source: World Bank and FAO

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

74

Main Pilars of Brazilian Growth

Agriculture Foreign Trade Infrastructure

74

75

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

76

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 58,529

135,135

149,255 162,803 166,172

188,658 193,622

207,667 210,290

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

Planted Area Production

CAGR

55.6%

CAGR

22.8%

Source: CONAB

77

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

78

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$198.4 bn AUCTION LAUNCHED

PIEE – Electricity Investment Program

+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

79

Brazilian Foreign Trade Balance Evolution (US$ billion)

Brazilian Foreign Trade Balance: Overview

256.0 242.6 242.0

225.1

191.1

226.2 223.2 239.7 229.1

171.5

29.8 19.4 2.3 -4.0 19.7

2011 2012 2013 2014 2015

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

Source: Ministry of Development, Industry and Foreign Trade.

80

Brazilian Exports (by country of destination¹)

Brazilian Foreign Trade Balance: Exports

18.6%

12.6%

6.7%

5.3%

2.7% 2.5% 2.1% 1.9% 1.9% 1.7% 1.6% 1.6%

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

Source: Ministry of Development, Industry and Foreign Trade. (1) From January to December/2015.

81

Summary Table

Annual Collected Data Quarterly Data

2011 2012 2013 2014 2015 4Q14 3Q15 4Q15

Economic Activity

GDP (% YTD in 12 months) 3.91 1.92 3.02 0.10 0.10 -2.54

Family Consumption 4.74 3.50 3.48 1.32 1.32 -1.80

Government Consumption 2.25 2.28 1.51 1.17 1.17 -0.42

Gross Fixed Capital Formation 6.70 0.75 5.83 -4.48 -4.48 -11.17

Exports 4.79 0.27 2.39 -1.05 -1.05 0.12

Imports 9.42 0.73 7.24 -1.05 -1.05 -10.36

Use of Installed Capacity (%) 82.77 82.77 82.33 81.07 81.07 78.47

Agent Population (% YTD in 12 months) 1.22 1.66 -0.76 -0.13 3.56 -0.91 -1.35

Unemployment Rate (% YTD in 12 months) 5.97 5.51 5.39 -3.09 -2.08 2.22 -2.08 -2.08

Formal employment – net creation in 12 m (thousand jobs) 1,566.0 868.2 730.6 152.7 -1,625.5 152.7 -1,306.9 -1,625.5

Industrial Production (% YTD in 12 months) 0.41 -2.30 2.07 -3.06 -6.39 -3.09 -6.39 -6.39

External Sector

Current Transactions (% GDP in 12 months) -2.95 -3.07 -3.13 -4.31 -4.31 -4.08

Direct Foreign Investment (US$ billion - year accumulated) 101.16 86.61 69.18 96.89 96.89 48.21

International Reserves (US$ billion – end of period) 352.01 378.61 375.79 374.05 368.74 374.05 370.60 368.74

Sovereign Risk (basis points – EOP) 223.00 142.00 224.00 259.00 432.00 259.00 442.00 432.00

Trade Balance (US$ billion – year accumulated) 29.79 19.39 2.29 -4.04 19.67 -4.04 10.24 19.67

Exports (US$ billion – year accumulated) 256.04 242.58 242.03 225.10 191.14 225.10 144.50 191.14

Imports (US$ billion – year accumulated) 226.25 223.18 239.75 229.14 171.46 229.14 134.26 171.46

Trade Balance (US$ billion – quarterly accumulated) -3.31 8.02 9.43

Exports (US$ billion – quarterly accumulated) 51.47 50.17 46.64

Imports (US$ billion – quarterly accumulated) 54.77 42.15 37.21

Ptax Dollar Sale (EOP) 1.88 2.04 2.34 2.66 3.90 2.66 3.97 3.90

Ptax Dollar Sale (% YTD in 12 months) 12.58 8.94 14.64 13.39 47.01 13.39 62.09 47.01

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

82

Summary Table

Annual Collected Data Quarterly Data

2011 2012 2013 2014 2015 4Q14 3Q15 4Q15

Monetary Ratios

IGP-DI FGV (% YTD in 12 months) 5.01 8.11 5.53 3.78 10.68 3.78 9.29 10.68

IGP-M FGV (% YTD in 12 months) 5.10 7.82 5.51 3.69 10.54 3.69 8.35 10.54

IPCA – IBGE (% YTD in 12 months) 6.50 5.84 5.91 6.41 10.67 6.41 9.49 10.67

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

Accumulated Selic (% YTD in 12 months) 11.62 8.49 8.22 10.90 13.37 10.90 12.63 13.37

Accumulated TR (exBTN) (% YTD in 12 months) 1.40 0.28 0.27 0.97 1.94 0.97 1.66 1.94

TJLP - IBGE (EOP %) 6.00 5.50 5.00 5.00 7.00 5.00 6.50 7.00

Libor (EOP %) 0.37 0.36 0.25 0.23 0.33 0.23 0.28 0.33

Public Finance

Primary Surplus (% GDP 12 months accumulated) 2.9 2.2 1.7 -0.6 -0.6 -0.4 2.9

PSGD (% GDP) 51.3 53.8 51.7 57.2 57.2 64.7 51.3

PSND (% GDP) - Without Petrobras 34.5 32.3 30.6 33.1 33.1 32.6 34.5

Credit Ratios

Banking Industry Loan Portfolio (R$ billion) 2,034 2,368 2,711 3,017 3,217 3,017 3,164 3,217

Individuals (R$ billion) 921 1,076 1,246 1,412 1,510 1,412 1,487 1,510

Companies (R$ billion) 1,113 1,293 1,466 1,605 1,707 1,605 1,677 1,707

Credit/GDP (% YTD in 12 months) - (%) 46.5 50.3 52.6 53.1 54.2 53.1 54.0 54.2

Household Debt (%) 41.6 43.6 45.1 46.0 46.0 46.1

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

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

83

The largest bank in Latin America

Av. Paulista 2163, 2nd Floor – Cerqueira César

São Paulo/SP - Brazil - 01311-933 +55 (11) 3066-9110 www.bb.com.br/ir [email protected]

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