0

Presentation on Presentation on

3Q10 Results3Q10 Results

1

�� Credit Behavior in BrazilCredit Behavior in Brazil

� Loan Portfolio

� Funding and Liquidity

� Results from Operations

� Capital Market

2

733607

2005 2006 2007 2008 2009 Set/10

Nonearmarked Resources Earmarked Resources

936

1.2271.410

29%

71%

29%

68%

32%

71%

19,619.831.213.319.326.016.9In 12 months14.013.619.510.014.520.412.4In the year5.45.67.54.45.27.64.4In the quarter1.81.71.12.21.82.91.4In the month

TotalEarmarked Resources

Non earmarked Resources

TotalEarmarked Resource

Non earmarked Resource

Sep/10Total Credit

CorporatesIndividualsVariation %

1.612

66%

34%

Total Credit Volume and SegmentationTotal Credit Volume and Segmentation

Volume of Credit OperationsR$ billion

Source: Central Bank of Brazil – Credit Information System - SCR

Credit to individuals supported by payroll lending, car loans, but mainly by earmarked

resources for real state financing.

In Corporate Credit earmarked resources from BNDES still stand out, after 24 months,

in September, free credit grew above earmarked.

Public institutions still account for 42% of total loans in the financial system

3

3.5

6.0

4.7

0123456789

10

Dec Dec Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2006 2007 2008 2009 2010

Corporates Individuals Total

Sou

rce:

BA

CE

N

%

Central Bank Default Rates = loans overdue above 90 days on total loan portfolio

Default Rate on Loans to Individuals: Fast retreat from June 2009

Default Rate on Corporate Loans: Accelerated increase until September 2009, with slow decline from November 2009 to March 2010, when it stabilized around 3.6%, retreating to 3.5% in September/10.

Small retreat in Corporate Credit and steady decline for Individuals

Credit Default RatiosCredit Default Ratios

4

� Credit Behavior in Brazil

�� Loan PortfolioLoan Portfolio

� Funding and Liquidity

� Results from Operations

� Capital Market

5

Loan Portfolio of R$ 1.8 billion* Loan Portfolio of R$ 1.8 billion*

� Local currency loans maintain 80% share in total loan portfolio with a 1.4% growth in the third quarter

� Working Capital Loans and Discounts respond for 70% the loan portfolio

� Guarantees issued responded for 3.5% of the loan portfolio being:

� 3.3% in Real

� 0.2% in Foreign Currency

� Trade Finance portfolio comprises export (ACC/ ACE) and import (FINIMP) financing.

� The 3.6% drop observed in the figures reported in Real for the quarter is due to the BRL appreciation in the period.

� In foreign currency this portfolio grew by 7% in the quarter and 41% in 12 months:

• US$ 143.2 million in 3Q09• US$ 189.2 million in 2Q10

• US$ 201.6 million in 3Q10

Local Currency Loans Trade Finance

344.1357.1254.5

3Q09 2Q10 3Q10

+35.2%1,425.01,405.41,429.7

3Q09 2Q10 3Q10

-0.3%

* Including guarantees issued and L/Cs

R$ MillionR$ Million

Credit Assignment Guarantees issued and L/Cs

6

Middle Market90%

Retail and other4%

Upper Middle

6%

61 - 160 25%

11 - 60 32%

10 largest 18%

Other 25%

Industry55%

Commerce11%

Other Services

25%

Individuals8%

Financial Cos1%

Above 360 days 30%

181 to 360 15% 91 to 180

21%

Up to 90 days 35%

By Client Concentration

By Economic Activity By Segment

By Maturity

Credit Portfolio BreakdownCredit Portfolio Breakdown

7

19%

11%5%5%

5%4%

14%

3%

3%

3%

4%

3%

17%

1%

2%

3%

FOOD, BEVERAGE AND TOBACCO

AGRIBUSINESS

HEAVY CONSTRUCTION

CHEMICAL AND PHARMACEUTICAL

AUTOMOTIVE

TRANSPORTATION & LOGISTICS

TEXTILE, CLOTHING & LEATHER

EDUCATION

INDIVIDUALS

FINANCIAL SERVICES

OIL AND BIOFUEL

FINANCIAL INSTITUTIONS

METAL INDUSTRY

WHOLESALE AND RETAIL TRADE

PULP & PAPER

OTHER INDUSTRIES

Loan Portfolio breakdown by Industry Loan Portfolio breakdown by Industry

8

Loan Portfolio QualityLoan Portfolio Quality

Allowance for Loan LossesNPL(*) / Total Loan (%)

Asset Quality

Provisioning Coverage = 6.6% of Loan Portfolio, 44% of loans rated D-H and 179% of NPL 60 days

2.6

8.1

3.7

3Q09 2Q10 3Q10

Collacteral Structure

Aval PN23%

Real State8%

Vehicles7%

Receiv.46%

Monitored Pledge

8%Securities

3%

Pledge/ Lien5%

Risk Rating

D-H14.8%

A34.3%

B27.0%

C23.9%

107.8

133.0112.2

3Q09 2Q10 3Q10

11.1% Performing 3.7% Non-Performing

+ 60 days

(*) Total outstanding amount of contracts with any installment overdue above 60 days R$ Million

9

� Credit Behavior in Brazil

� Loan Portfolio

�� Funding and LiquidityFunding and Liquidity

� Results from Operations

� Capital Market

10

Time Deposits

39%

DPGE(*)28%

Interbank Deposits

4%

Foreign Borrowings

17%

BNDES Onlending

6%

LCA4%

Demand Deposits

2%

Funding mostly in Local CurrencyFunding mostly in Local Currency

� 83% of funding in Real and 17% in foreign currency

� Funding composed by:� Deposits – 77%

� Trade Finance lines– 15%

� IFC A Loan – 2%

� BNDES Onlending – 6%

Total Funding Funding Breakdown

1,902.71,880.6

1,732.0

3Q09 2Q10 3Q10

+9.9%

� CDs and DPGEs(*) account for 67% of total funding

� Average term to maturity for deposits = 526 days

� CDs: R$ 753.1 MM - 361 days

� DPGEs: R$ 543.1 MM - 853 days

� LCAs: R$ 69.6 MM – 167 days

� Interbank Deposits: R$ 67.7 MM - 74 days

R$ Million

(*) DPGE – Time Deposits bearing Special Insurance from FGC

11

536.3

238.5

339.6

645.3

729.9

372.0

227.9

552.7

90 days 180 days 360 days Above 360 days

Assets Liabilities

679.7695.5707.1

3Q09 2Q10 3Q10

Free Cash

Good Liquidity maintainedGood Liquidity maintained

Free Cash =

(Cash + Liquid Financial Assets + Securities + Derivatives)

(-)

(Open Market Funds + Derivatives)

� Management of liquidity, interest rate, currencies and tenor mismatch risks is our Treasury’s main task

� Free Cash:

� 46% of Total Deposits

� 157% of Shareholder’s Equity

Assets and Liabilities ManagementR$ Million

R$ Million

12

� Credit Behavior in Brazil

� Loan Portfolio

� Funding and Liquidity

�� Results from OperationsResults from Operations

� Capital Market

13

� Gross Profit from Financial Intermediation went up by 18% in the quarter and corresponds to 32% of Income from Financial Intermediation in 3Q10 (30% in 2Q10 and 7% in 3Q09).

� Reduction of 10% in Loan Loss Provision Expenses, also contributed to a better result.

� Allowance for Loan Losses maintained at 6.6% of the loan portfolio.

� 12% evolution in the quarter and 31% in 12 months in Income from Financial Intermediation which were composed by

� revenues from Loans 58%

� revenues from Securities 36%

� revenues from Foreign Exchange Operations 5%

� The smaller share of revenues from foreign exchange due to the appreciation of Real, also reflected in the decrease of foreign loan expenses

Evolution in Financial Intermediation ResultsEvolution in Financial Intermediation Results

348.2314.3

123.4110.494.3

3Q09 2Q10 3Q10 9M09 9M10

+31.0%

+10.8%

107.4

66.9

39.133.1

6.4

3Q09 2Q10 3Q10 9M09 9M10

+510.6%

+60.4%

Income from Financial IntermediationR$ Million R$ Million

Gross Profit from Financial intermediation

14

59.3

49.1

61.255.2

60.7

3Q09 2Q10 3Q10 9M09 9M10

� Increase derived from:

� R$ 1.4 MM net FX variation expenses on offshore assets and liabilities which are accounted under “other operating expenses and income” against net revenues of R$ 1.2 MM in 2Q10.

� Increased tax charges on deals carried abroad: Financial Operations Tax (IOF) and COFINS

Slight increase in Operating Expenses Slight increase in Operating Expenses

� The Efficiency ratio reflects this increase in Net Operating Expenses related to FX effects, taxes and personnel.

71.970.0

26.520.922.5

3Q09 2Q10 3Q10 9M09 9M10

+17.8%

+2.7%

S&

P M

odel

+0.5 p.p.+10.2 p.p.

Net Operating Expenses Efficiency RatioIn %R$ Million

15

� Net Profit in the quarter was slightly lower than 2Q10 for the increased net operating expenses.

� 9-month accumulated net profit shows good progress, specially in the recurring results.

7.0%

8.5%

5.4%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

NIM NIM(a) GIM

� Gross Interest Margin benefited from the reduced need for provisioning

� Stable NIM and Adjusted NIM (NIMa)

� NIM(a) is the NIM adjusted by bringing the exchange rate variation effects accounted as “other operating expenses and income” to the financial intermediation results and by reducing the average balance of repos from the average interest-bearing assets

-7.8

23.1

8.38.3 7.5

3Q09 2Q10 3Q10 9M09 9M10

+196.3%

+177.4%

Recovering profitabilityRecovering profitability

R$ Million

Net Profit Net Interest Margin (NIM)

GIM= Gross Interest Margin

16

� Credit Behavior in Brazil

� Loan Portfolio

� Funding and Liquidity

� Result from Operations

�� Capital MarketCapital Market

17

Free Float47.7%

Controlling Group44.0%

Board + Officers

6.6%Treasury

1.6%

Capital Distribution on Oct. 31, 2010

(674,998)*

(674,998)

-

Treasury

19,661,221

12,351,763

7,309,458

Free Float

47.7%(2,733,939)(18,142,826)41,212,984TOTAL

86.9%(159,570)(1,026,653)14,212,984Preferred

27.1%(2,574,369)(17,116,173)27,000,000Common

ManagementFree Float

Controlling Group

# of SharesClass

Capital Distribution and Free FloatCapital Distribution and Free Float

* 4th Share Buyback Program for up to 1,301,536 preferred shares valid until Aug. 09, 2011

18

6.36.86.0

2.32.82.9

6.36.9

6.6

2.32.72.9

6.3

6.66.5

5.12.4

3.0

6.7

6.4

6.1

2.22.6

2005 2006 2007 2008 2009 2010

1Q 2Q 3Q 4Q

11.610.1

15.8

25.5

R$

MM

27.0

18.9

R$ 0.45544R$ 0.63704R$ 0.59451R$ 0.41635R$ 0.34235R$ 0.3657

Remuneration per share

Shareholder RemunerationShareholder Remuneration

BIM’s practice for shareholder remuneration has been the quarterly anticipated payment of Interest on Equity

19

15.18%

15.16%

4.45%

1.92%

-3.74%

YTDNov.10, 2010

20.23%

18.67%

13.94%

6.67%

4.58%

3Q10

-3.50%IDVL4

10.15%

9.99%

1.23%

2.17%

9M10

ITAG

IGC

IBOV

IDVL4 (adjusted to earnings)

Performance

Source: Enfoque

Stock PerformanceStock PerformanceIDVL4 X IBOV IDVL4 X IBOV -- 20102010

80

85

90

95

100

105

110

115

30/12

/2009

08/01

/2010

17/01

/2010

26/01

/2010

04/02

/2010

13/02

/2010

22/02

/2010

03/03

/2010

12/03

/2010

21/03

/2010

30/03

/2010

08/04

/2010

17/04

/2010

26/04

/2010

05/05

/2010

14/05

/2010

23/05

/2010

01/06

/2010

10/06

/2010

19/06

/2010

28/06

/2010

07/07

/2010

16/07

/2010

25/07

/2010

03/08

/2010

12/08

/2010

21/08

/2010

30/08

/2010

08/09

/2010

17/09

/2010

26/09

/2010

05/10

/2010

14/10

/2010

23/10

/2010

01/11

/2010

10/11

/2010

IBOVESPA IDVL4 IDVL4 Earnings Adjusted

20

� Business Focus: Corporate lending

� Credit Behavior in Brazil�Private Financial Institutions start reacting. After 24 months, corporate free credit growth exceeds earmarked credit’s in September.

�Government Financial Institutions respond for 42% of total credit in the Brazilian financial system.

� Loan Portfolio�90% middle market companies and 6% companies with annual sales above R$ 400 million�Our loan portfolio growth in Real is limited by BRL appreciation on the Trade Finance portfolio and the implementation of the business expansion strategy to larger companies.

�Allowance for Loan Loss provide adequate coverage to NPL.

� Funding and Liquidity�Funding predominantly in local currency deposits (77%) �Good volume long term funding available. �High liquidity maintained to provide stability

� Operating Results�Evolution on Financial Intermediation Results �Taxes and FX expenses increase Other Operating Expenses�Accumulated 9-month net profit reaches R$ 23 MM against R$ 8.3 in 9M09.

In SummaryIn Summary

21

Questions and AnswersQuestions and AnswersPlease pose your questions by utilizing the Q&A Please pose your questions by utilizing the Q&A

button at the right bottom end of the Webcast panel.button at the right bottom end of the Webcast panel.

Please note that this is the English version of the presentation originally prepared in Portuguese. In case of any discrepancy between those versions, the Portuguese version shall prevail. Banco Indusval Multistock complete financial statements are available at www.indusval.com.br/ir, under Financial Information – Financial Statements and they are filed with the CVM – Brazilian Securities and Exchange Commission that disposes them to the market at www.cvm.gov.br.

Any reference or statement regarding Banco Indusval Multistock - or its subsidiaries and affiliates - anticipated synergies, growth plans, projected results and future strategies are just estimates. Although forward-looking statements reflect management’s good faith beliefs, they involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. These risks and uncertainties include, but are not limited to, our ability to realize the amount of the projected synergies and in the timetable projected, as well as economic, competitive, governmental and technological factors affecting Banco Indusval Multistock’s operations, markets, products and prices, and other factors detailed in Banco Indusval Multistock’s filings with the CVM – Brazilian Securities and Exchange Commission which, readers are urged to read carefully, in analyzing investment alternatiives.

22

Investor Relations Investor Relations –– Contact InformationContact Information

Ziro Murata Jr.IROPhone: (55 11) 3315-6961E-mail: ziro@indusval.com.br

Maria Angela R. ValenteHead of IR Phone: (55 11) 3315-6821E-mail: mvalente@indusval.com.br

Banco Indusval S/ARua Boa Vista, 356 – 7º andar01014-000- São Paulo – SPBrasil

IR Site: www.indusval.com.br/ir