Banco Fibra - Presentation December 2004 Results

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Steinbruch Group

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� The Steinbruch Group ranks among the largest 10 Brazilian private conglomerates in the country, with more than 35 years in business.

* the figures presented herein are the sum of Total Assets and Total Net Worth of the group companies’.

FX rate (R$/ US$): Dec/ 02: 3.5333; Dec/ 03: 2.8892; Dec/ 04: 2.6544;

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2,000

4,000

6,000

8,000

10,000

12,000

2002 2003 2004

Total Assets Total Net Worth

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� Commercial bank focused on the middle-market segment

� In December 2004, Banco Fibra was the 20th largest bank in Brazil by total assets volume.

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� 1987 – Inception of Fibra DTVM, a securities brokerage firm;

� 1989 - Fibra DTVM receives a license from the Central Bank of Brazil to act as a multiple

bank and is renamed Banco Fibra S.A developing its activity mainly as a Financing Company;

� 1999 - Banco Fibra bolsters its commercial banking operations, repositioning the bank in the

local market;

� 2001 - Banco Fibra focuses efforts on the “middle market” and “upper middle market” client

segments;

� 2004 - Banco Fibra consolidates its domestic presence and resumes activities in external

markets.

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� Expansion of the client base in the middle market segment;

� Expansion in portfolio of products and services available to clients;

� Focus on credit origination;

� Focus on middle-market and upper-middle market companies, currently serving approximately 600

corporate clients;

� Expand commercial business platforms, currently counting on 60 account officers to cover middle-market

clients in several geographical areas;

� Focus on trade finance operations and on diversifying the base of foreign correspondent banks;

� Develop a new business line: VRFLDO�VHFXULW\�SD\UROO�GHGXFWLRQ;

� Return to international capital markets through fixed-income external issuance to fund this new business

initiative.

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� Wholesale bank activity

� Clients:

³0LGGOH�PDUNHW´�� companies with yearly gross revenues between USD 15 million and USD 60

million;

³8SSHU�PLGGOH�PDUNHW´�� companies with yearly gross revenues between USD 60 million and USD 150

million;

³&RUSRUDWH´�� companies with yearly gross revenues above USD 150 million.

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� Credit limits are established on an individual basis, mainly considering the company’s cash flow

analysis and its repayment capacity; guarantees are treated as accessories;

� All credit decisions are taken at semi-weekly credit committee meetings;

� Global credit exposure parameters are adhered to in order to avert credit concentration by sector,

product and/or client;

� Permanent client monitoring through phone calls, personal visits and monitoring financial indicators

and asset pledged as collateral;

� Clients are classified and rated following strict proprietary criteria developed from standards

indicated by the Central Bank of Brazil;

� Credit limits undergo routine reviews according to the client’s rating, in periods that vary between 90

and 180 days;

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Low delinquency rates

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� Risk Management ensures that the bank operations comply with all regulations and

established operational limits;

� Operates independently from business units, reporting directly to the managing

director;

� Manages market risks to the Bank’s operations.

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� Manages the Bank’s liquidity to maintain it at adequate levels:

� Our target is to have a cash balance superior to the Net Worth on a daily basis.

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� Manages the bank’s mismatch between assets and liabilities:

� Pricing operations in BRL and other currencies.

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17Source: Banco Fibra S.A.

Financial Highlights

)LQDQFLDO�+LJKOLJKWVDec/04 Dec/03 Dec/02

Total Assets 2.454 1.983 921 Credit Portfolio 496 334 195 Securities Portfolio 400 795 519 Fixed Assets 6 4 4 Deposits 393 316 144 Net Worth 160 144 100

Gross income from Financial Operations 45 68 26 Non Operating Income 0,1 (0,3) (0,3) Operating Income 23 48 15 Administrative Expenses (9) (7) (4) Income Before Taxes and Social Contribution 23 48 15 Net Income 14 31 15

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Ratios

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3HUIRUPDQFH�5DWLRVReturn of Equity (ROE) 8,47% 21,79% 15,46%Return on Assets (ROA) 0,55% 1,58% 1,67%Cost /Income 7,41% 9,63% 5,24%

%DODQFH�6KHHW�5DWLRVTotal Credit Portfolio / Total Assets 20,22% 16,82% 21,16%Net Worth / Total Assets 6,53% 7,24% 10,82%Tier 1 & Tier 2 BIS Ratio 22,25% 21,58% 18,77%

$VVHW�4XDOLW\�5DWLRVNon-Performing Loans / Credit Portfolio 1,31% 0,75% 3,75%Reserves for loan losses / Credit Portfolio 1,56% 2,29% 3,14%

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23%

16%

9%20%

18%

14%

up to 30 days

From 31 to 60 days

From 61 to 90 days

From 91 to 180 days

From 181 to 360 days

Over 360 days

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Dec 2004

Source: Banco Fibra S.A.

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Dec/04 Dec/03 Dec/02

up to 30 days 111.425 76.072 48.790 From 31 to 60 days 80.918 56.129 34.658 From 61 to 90 days 46.967 29.345 28.385 From 91 to 180 days 97.725 66.289 26.135 From 181 to 360 days 88.715 52.192 20.932 Over 360 days 70.475 53.484 35.977

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Deposits%UHDNGRZQ�E\�WHQRU

31%

11%

6%

36%

12%

4%

up to 30 days

From 31 to 60 days

From 61 to 90 days

From 91 to 180 days


Over 360 days

Credit Portfolio%UHDNGRZQ�E\�WHQRU

32%

18%11%

18%

13%

8%

up to 30 days

From 31 to 60 days

From 61 to 90 days

From 91 to 180 days


Over 360 days

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Dec 2004

Dec 2004

* The charts comprise only the deals that require the use of proprietary funding

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44,78%

30,67%14,30%

2,08%

3,98%

2,26%

0,20%

1,71%

Industry

Services

Commerce

Banks

Individuals

Public Sector

Real Estate

Rural

Deposits%UHDNGRZQ�E\�SURGXFW

91%

7% 2%

Time Deposits

Interbank Deposits

Demand Deposits

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Dec 2004

Dec 2004

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Industry 222.225 152.582 73.705 Services 152.215 118.805 62.045 Commerce 70.976 35.717 26.565 Individuals 19.747 13.990 18.197 Public Sector 11.230 8.944 9.969 Banks 10.343 2.059 4.397 Rural 8.486 1.412 - Real Estate 1.003 - -

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Time Deposits 358.947 296.314 136.764 Interbank Deposits 26.135 11.045 4.504 Demand Deposits 7.954 9.133 2.839

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Largest Client 2,38% 4,50% 5,15%10 Largest Clients 14,54% 27,71% 27,95%20 Largest Clients 22,85% 40,53% 39,10%

Total Credit Portfolio 496.225 333.510 194.877

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Largest Depositor 5,60% 6,94% 11,95%10 Largest Depositors 28,75% 20,89% 33,24%20 Largest Depositors 38,04% 31,07% 47,25%

Total Deposits 393.036 316.492 144.107

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Banco Fibra’s Ratings

Banco Fibra’s Ratings

Austin Asis ALF Rating AMoody’s B1/ Baa2.brFitch Atlantic Rating BBB+

Banco Fibra - Presentation December 2004 Results

Investor Relations

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