Conference Call 2Q12 Earnings - BB · Conference Call 2Q12 Earnings . Banco do Brasil S.A. –...

1

1

Conference Call

2Q12 Earnings

2 Banco do Brasil S.A. – Second Quarter 2012 2

Disclaimer

This presentation may include references and statements, planned synergies,

increasing estimates, projections of results, and future strategy for Banco do Brasil,

it’s Associated and Affiliated Companies, and Subsidiaries. Although these

references and statements reflect the management’s belief, they also involve

imprecision and high difficult risks to be foreseen. Consequently, they may conduct

to a different result than those anticipated and discussed here. These expectations

are highly dependent on market conditions, on Brazil’s economic and banking

system performances, as well as on international market one. Banco do Brasil is not

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

3 3

Highlights

Net Interest Income grows 16.4% over 2Q11

Delinquency ratio lower than Banking Industry (2.1%)

Cost Income Ratio improved 180 bps QoQ

Loan Portfolio (Broad Concept) grows 20.3% in 12 months

Banco do Brasil S.A. – Second Quarter 2012

(1) It’s included private securities and guarantees provided

4 4

Result´s highlights

On 2Q11 On 1Q12 On 1H11

Operating Revenues 17,834 18,483 19,447 34,521 37,929 9.0 5.2 9.9

Net Interest Income 10,189 11,008 11,858 20,036 22,865 16.4 7.7 14.1

Fee Income 4,388 5,051 5,256 8,495 10,308 19.8 4.1 21.3

Insurance, Pension Plan and S. Bonds Income 667 516 608 1,180 1,124 (8.9) 17.7 (4.7)

Previ 1,296 390 390 1,920 781 (69.9) 0.0 (59.3)

Other Items 1,295 1,517 1,335 2,891 2,851 3.1 (12.0) (1.4)

Operating Expenses (9,497) (10,789) (11,062) (18,734) (21,851) 16.5 2.5 16.6

Administrative Expense (5,886) (6,626) (6,946) (11,578) (13,572) 18.0 4.8 17.2

Legal Risk (188) (489) (368) (365) (857) 96.3 (24.7) 134.8

Tax Expenses (1,075) (1,077) (1,104) (2,092) (2,182) 2.7 2.5 4.3

Other Items (2,349) (2,597) (2,644) (4,699) (5,240) 12.6 1.8 11.5

Allowance for Loan Losses (3,047) (3,576) (3,677) (5,677) (7,252) 20.7 2.8 27.8

Non Operating Result 5 21 30 23 51 560.1 45.6 117.1

Income Taxes and Statutory Profit Sharing (2,065) (1,435) (1,752) (3,981) (3,187) (15.1) 22.1 (19.9)

Adjusted Net Income 3,230 2,704 2,986 6,153 5,690 (7.6) 10.4 (7.5)

Chg. %2Q11 1Q12 2Q12 1H11 1H12

R$ million


5 5

One-Off Items

Adjusted Net Income 3,230 2,704 2,986 6,153 5,690

(+) One-Off Items of the Period 100 (201) 22 109 (180)

Sale of Investments 169 - - 169 -

Economic Plans 10 (362) (184) 27 (546)

Additional Allowance for Loan Losses - - 223 - 223

Tax Eff. and Stat. Profit Sharing on One-Off Items (79) 160 (17) (87) 143

Net Income 3,330 2,502 3,008 6,262 5,510

2Q11 1Q12 2Q12 1H11 1H12

R$ million


6 6

Sources and Uses

R$ billion


(1) Commercial papers (do not include subordinated debt), Agribusiness Letter of Credit, Debentures, and Mortgage Letters of Credit

(2) Securities, Foreign Lending/Onlending, Perpetual Bonds and Subordinated Debt issued abroad

(3) Domestic Onlending, Financial and Development Funds and Allowance for Loan Losses

(4) Loan Portfolio according to CMN resolution 2682/99

7 7

Foreign Borrowing

12 months

19.5%

US$ billion


8

Net Interest Margin by segment (%)¹ Net Interest Margin (%)¹

8

Net Interest Income

5.65.4 5.6 5.4 5.5

3.93.7

4.13.6 3.8

2Q11 3Q11 4Q11 1Q12 2Q12

NIM (LHS) Risk Adjusted NIM (LHS)

On 2Q11 On 1Q12

Net Interest Income² 10,189 11,008 11,858 16.4 7.7

Loan Operations 14,615 16,685 16,611 13.7 (0.4)

Funding (6,505) (7,170) (6,739) 3.6 (6.0)

Recovery of Written-off Credits 953 750 1,109 16.3 47.8

Treasury 2,078 1,683 1,728 (16.9) 2.7

Other (952) (940) (851) (10.7) (9.5)

Chg. %2Q121Q122Q11

R$ million

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


(1) Annualized information

9 9

Loan Portfolio – Broad Concept¹

12 months

20.3%

R$ billion


(1) It’s included private securities and guarantees provided.

10 10

Individuals Loan Portfolio – Broad Concept¹

On Jun/11 On Mar/12

Payroll 47.9 39.1 52.4 39.5 54.9 39.4 14.6 4.8

Backed by Direct Deposits 14.6 11.9 16.1 12.1 17.0 12.2 16.8 5.6

Vehicle Finance 30.5 24.9 30.7 23.1 31.8 22.9 4.3 3.7

Mortgage 4.2 3.4 6.8 5.1 7.7 5.5 83.1 12.6

Credit Cards 11.5 9.4 13.0 9.8 13.7 9.8 19.4 5.1

Consumer Finance 5.7 4.7 5.6 4.2 6.1 4.4 6.2 8.0

Overdraft 3.1 2.6 3.1 2.3 2.9 2.1 (7.1) (5.3)

Microcredits 1.0 0.8 0.7 0.6 0.6 0.5 (37.1) (13.2)

Other 4.0 3.2 4.2 3.1 4.5 3.2 12.9 7.7

Individuals Loan Portfolio 122.6 100.0 132.7 100.0 139.3 100.0 13.6 4.9

Chg. %Jun/11 Share % Mar/12 Share % Jun/12 Share %

R$ billion


(1) It’s included guarantees provided.

11 11

Organic Individuals Loan Portfolio¹ ²

(1) Classified concept.

(2) Does not include Banco Votorantim operations and acquired portfolio.

On Jun/11 On Mar/12

Payroll 35.7 42.2 40.5 42.8 43.1 42.1 20.6 6.2

Backed by Direct Deposits 14.6 17.2 16.1 17.0 17.0 16.7 16.8 5.6

Vehicle Finance 5.0 5.9 4.6 4.9 6.7 6.6 35.1 45.4

Mortgage 4.2 5.0 6.8 7.2 7.7 7.5 83.1 12.6

Credit Cards 11.4 13.5 12.9 13.7 13.6 13.3 19.2 5.1

Consumer Finance 5.7 6.7 5.6 5.9 6.1 5.9 7.2 8.2

Overdraft 3.1 3.7 3.1 3.3 2.9 2.9 (7.1) (5.3)

Microcredits 1.0 1.2 0.7 0.8 0.6 0.6 (37.1) (13.2)

Other 4.0 4.7 4.2 4.4 4.5 4.4 12.9 7.7

Individuals Loan Portfolio 84.6 100.0 94.6 100.0 102.2 100.0 20.7 8.0

Chg. %Jun/11 Mar/12 Jun/12Share % Share % Share %

R$ billion


12

Vehicle BdB Own Portfolio (R$ billion) BB Crediário (R$ million)

Backed by Direct Deposits (R$ billion) INSS Payroll Loan (R$ billion)

12

BOMPRATODOS Strategy – Individuals

4.6 4.6 4.7 4.8 5.0

Jun/11 Sep/11 Dec/11 Mar/12 Jun/12

14.6 14.9 15.316.1

17.0


329302

274247

325


5.0 4.7 4.7 4.6

6.7



13

NPL 90 (%)

13

Individuals – Vehicle Loans (Origination BdB)

2.1 2.0 2.2 2.11.4

3.84.4

5.05.7 6.0


BB Banking Industry

Portfolio by Risk Level (%)

89.2 90.4 93.1

10.8 9.6 6.9

Jun/11 Mar/12 Jun/12AA-C D-H

Portfolio Profile (Jun/12)

Weighted Average Tenor: 41.4 months

Average Down Payment: 36.0%

Operations Without Down Payment: 8.5%

Profile of Disbursements in 2Q12

74.8% originated on transactions with A and B individual customers

76.4% of clients had checking accounts for over 5 years at Banco do Brasil


14 14

Loans to Companies – Broad Concept ¹

R$ billion



On Jun/11On Mar/12

Working Capital 102.3 53.5 113.8 53.8 125.2 53.5 22.4 10.0

Investment 34.2 17.9 38.2 18.1 39.5 16.9 15.5 3.4

Trade Finance 14.3 7.5 16.1 7.6 17.2 7.3 20.3 6.7

Corporate Bonds & Notes 24.1 12.6 22.5 10.6 27.8 11.9 15.4 23.8

Guarantees 11.6 6.1 14.9 7.1 17.6 7.5 51.7 17.9

Other 4.7 2.4 5.8 2.7 6.6 2.8 40.7 12.7

Companies Loan Portoflio 191.2 100.0 211.4 100.0 234.0 100.0 22.4 10.7


15

Operations Guarantee Fund (FGO)

15

Loans to Companies – Broad Concept ¹

Loans to Companies Breakdown¹

25.8%

20.8%

38.1%

12 M

12 M

12 M 131.3 141.1

158.6

59.970.2

75.4191.2

211.4

234.0

Jun/11 Mar/12 Jun/12

Micro and Small Enterprises² Medium and Large Companies

8.2

10.0

11.4


(1) It’s included private securities and guarantees provided.

(2) Companies with annual income higher than R$ 25 million.

R$ billion


16

17.7

18.519.0


16

BOMPRATODOS Strategy – Micro & Small Enterprises¹

Share of FGO² in the transactions (%) Loan Portfolio by Risk Level (%)

Investment Lines (R$ billion) Working Capital (R$ billion)

(2) Operations Guarantee Fund to Working capital and investment operations.

42.648.2

51.5


16.1

20.121.9


88.8 90.1 90.8

11.2 9.9 9.2

Jun/11 Mar/12 Jun/12AA-B Demais

(1) Companies with annual income higher than R$ 25 million.


17

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

17

Agribusiness

52.6 54.1 57.9 60.3 64.3

28.9 29.631.5 32.2 31.3

81.5 83.889.4 92.4 95.7

60.461.3

62.863.6 63.8


Agribusiness - Producer Agribusiness - Corporate

0.9 0.90.7

0.60.5



Banco do Brasil S.A. – 2Q12 Results

18

Brazilian Banking Industry Banco do Brasil

18

Credit Risk

%

93.6 93.9 93.9 93.9 93.9

6.4 6.1 6.1 6.1 6.1


AA-C D-H

92.2 92.4 92.3 92.1 92.1

7.8 7.6 7.7 7.9 7.9


AA-C D-H


19

Banco Votorantim NPL 90

19

Delinquency

%

3.383.51

3.603.74 3.78

2.04 2.11 2.09 2.15 2.15

1.94 1.921.81 1.78 1.77


Banking Industry BB Consolidated BB stand alone

3.23

4.31

5.77

7.297.72

6.697.19

7.988.47

7.37


NPL 90 NPL 15-90


20

Delinquency by Segment¹

Ind

ivid

ual

s C

om

pan

ies

Agr

ibu

sin

ess

5.40 5.644.90 5.21 4.90

2.97 3.20 3.07 2.95 2.76

90.9 90.9 91.1 91.1 91.5

3.32 3.05 2.99 3.44 3.162.11 1.99 1.89 1.98 2.12

95.1 95.4 95.2 95.3 95.1

1.44 1.521.14

0.87 0.720.92 0.86 0.72 0.62 0.51

92.7 93.2 93.9 94.3 94.5

Jun/11 Set/11 Dez/11 Mar/12 Jun/12

NPL15 NPL90 AA - C Risk

(1) Does not include Banco Votorantim operations

%


21

Share vintage in the total balance NPL 90 after 4 months of granting (%)

Average Down Payment and Tenor Origination Profile

21

Banco Votorantim – Vehicle Loan Portfolio

34%38%

41% 41%

49 47 46 46

3Q11 4Q11 1Q12 2Q12

Average down payment Average tenor (months)

0.5 0.50.8

1.2

1.8

2.7

2.2

1.7

0.6

Dec/09 Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11

Month of Granting

10% 8%

14% 11%

67%

56%

10%25%

Dec/11 Jun/12

Vintages after Sep/11

Vintages from Jul/10 to Sep/11

Vintages from Jan/10 to Jun/10

Vintages until 2009

76% 84%100% 100%

24% 16%

3Q11 4Q11 1Q12 2Q12

Other plans 60-month tenor with no down payment


22 22

BV – Lightweight Vehicles1 : Production by Business Channel and Delinquency

0.9 0.9

1.41.3

1.8 1.8

2.1 2.0

1.6 1.6 1.6

1.0

0.8 0.9

Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12

Car dealers (R$ billion) Multi-brand car dealers (R$ billion) NPL 30 (%)²

Vintages with low quality

64% 77% 90% 81%

Resellers/

lightweight

production

(1) Comprised by CDC Veículos (Vehicle Consumer Credit) and Vans (does not include leasing) (2) % of each month production with delinquency higher than 30 days


23 23

Allowance for Loan Losses Expenses

On 2Q11 On 1Q12

Banco do Brasil ex- BV (2,626) (2,782) (2,958) 12.6 6.3

Banco Votorantim (421) (793) (719) 70.8 (9.4)

Banco do Brasil Consolidated (3,047) (3,576) (3,677) 20.7 2.8

2Q11 1Q12 2Q12Chg. %

Guidance

2Q12: R$ 3.6 a 3.8 billion

3Q12: R$ 3.5 a 3.7 billion

4Q12: R$ 3.5 a 3.7 billion

1H12 Perfomance

R$ 3.677 billion

-

-

R$ million


24 24

Allowance for Loan Losses Expenses

245%243% 244% 245%

238%

226%219%

216%211%

206%

165%161%

157%152% 151%


Coverage + 90 days(ex Banco Votorantim)

Coverage +90 days(BB Consolidated)

Coverage +90 days(Banking Industry)


25 25

Administrative Expenses

On 2Q11 On 1Q12 On 1H11

Personnel Expenses (3,364) (3,694) (3,871) (6,509) (7,565) 15.1 4.8 16.2

Other Administrative Expenses (2,522) (2,932) (3,075) (5,069) (6,007) 21.9 4.9 18.5

Telecommunications and Data Processing (434) (564) (543) (971) (1,107) 25.2 (3.7) 13.9

Amortization and Depreciation (322) (343) (357) (639) (699) 10.6 4.1 9.4

Security. Guard and Transport Services (374) (487) (501) (747) (987) 33.8 2.8 32.2

Expenses with Premises and Equipment (392) (449) (460) (759) (908) 17.4 2.4 19.6

Marketing and Public Relations (162) (123) (192) (289) (315) 18.7 55.7 9.1

Expenses with Outsourced Services (481) (579) (568) (924) (1,148) 18.2 (1.9) 24.2

Other Administrative Expenses (357) (387) (455) (739) (842) 27.2 17.4 13.9

Administrative Expenses (5,886) (6,626) (6,946) (11,578) (13,572) 18.0 4.8 17.2

Chg. %2Q11 1Q12 2Q12 1H11 1H12

R$ million


26 26

Adjusted Administrative Expenses

Chg. %

On 1H11

Administrative Expenses (11,578) (13,572) 17.2

Banco Patagonia 106 327 -

Mapfre 147 271 -

Banco Postal - 254 -

Adjusted Administrative Expenses¹ (11,325) (12,720) 12.3

1H11 1H12

(1) Managerial measurement

R$ million


27 27

Fee Income

On 2Q11 On 1Q12 On 1H11

Fee Income 4,388 5,051 5,256 8,495 10,308 19.8 4.1 21.3

Credit / Debit Cards 938 1,075 1,196 1,845 2,271 27.6 11.3 23.1

Account Fees 1,017 1,101 1,102 1,887 2,203 8.4 0.1 16.8

Asset Management Fees 794 883 897 1,524 1,781 13.1 1.6 16.8

Loan Fees 454 479 534 841 1,012 17.6 11.4 20.3

Collections 315 324 331 606 654 5.0 2.1 7.9

Billings 174 204 204 347 408 16.9 (0.0) 17.4

Interbank 160 169 174 304 344 9.2 3.0 13.3

Insurance, Pension and Savings Bonds 131 150 165 262 315 26.0 10.6 20.4

Capital Market Fees 83 107 127 178 234 52.9 18.7 31.6

Other 322 560 526 701 1,086 63.0 (6.2) 54.8

Chg. %2Q11 1Q12 2Q12 1H11 1H12

R$ million


28

Cost to Income Ratio – 12 months Cost to Income Ratio - Quarterly

28

Cost to Income Ratio¹

%

39.7

44.942.9

45.243.4

2Q11 3Q11 4Q11 1Q12 2Q12

41.1 41.1 42.1 43.2 44.1

2Q11 3Q11 4Q11 1Q12 2Q12


(1) Administrative Expenses / Operating Revenues, without one-off items

29 29

BIS Ratio

%

11.1 10.6 10.5 10.9 10.6

3.33.3 3.5 3.3 4.0

14.413.9 14.0 14.3 14.6


Tier II

Tier I

(1) The BIS Ratio disclosed in June/2012 Financial Statements is 14.22%. The pro forma ratio considers subordinated debt issued on 2Q12 eligible as Tier II capital. The Central Bank of

Brazil has already authorized the eligibility.

Pro forma¹


30 30

Guidance 2012

(1) This line considers the credit acquired with recourse, according to CMN 3.533/2008 Resolution.

(2) Allowance for Loan Losses Expenses of the last 12 months / Average Portfolio in the same period.

Guidance Guidance

Previous Reviewed

Adjusted Return on Equity 19% - 22% 19.9% 17% - 20%

Net Interest Income 11% - 15% 14.1% 10% - 14%

Total Deposits 14% - 18% 17.9% 14% - 18%

Domestic Loan Portfolio¹ 17% - 21% 17.9% 17% - 21%

Individuals¹ 19% - 23% 13.6% 19% - 23%

Companies 18% - 22% 21.3% 18% - 22%

Agribusiness 9% - 12% 17.7% 13% - 16%

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

Fee Income 13% - 18% 21.3% 13% - 18%

Administrative Expenses 8% - 12% 17.2% 8% - 12%

Tax Rate 31% - 34% 28.0% 31% - 34%

Performance


31 31

Contacts


Investors Relation Unit

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

70073-901 - Brasília (DF)

Telephone: +55 (61) 3102 1124

Fax: +55 (61) 3102 1435

bb.com.br/ir

[email protected]

32 32

Appendix

33 – Individuals Loan Portfolio

34 – Individuals Loan Portfolio – Average Rates/Tenor

35 – Loans to Companies – SME

36 – Agribusiness

37 – Agribusiness

38 – Individuals Loan Portfolio – Risk Level

39 – Loans to Companies’– Risk Level

40 – Agribusiness – Risk Level

41 – Agribusiness Transactions with/whithout rollover

42 – Agribusiness – Regular and Reestructured Transactions

43 – Renegotiated Loan Porftolio

44 – Funding

45 – Insurance

46 – Actuarial Assets

47 – Distribution Network

48 – MaisBB Network – 1H12 Performance


33 33

Individuals Loan Portfolio

On Jun/11 On Mar/12

Payroll loans 9.3 53.2 8.5 45.4 8.3 46.7 (10.3) (2.1)

Vehicle financing 8.2 46.8 10.2 54.6 9.5 53.3 16.3 (7.2)

Total 17.5 100.0 18.8 100.0 17.8 100.0 2.1 (4.9)


Acquired Loan Porftolio

Market Share Jun/11 Mar/12 Jun/12

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

Payroll Loan 47.9 149.1 32.1 52.4 166.1 31.6 54.9 175.2 31.3

Mortgage 4.2 167.4 2.5 6.8 217.7 3.1 7.7 235.4 3.3

Vehicles Loan 30.5 194.4 15.7 30.7 201.2 15.3 31.8 202.7 15.7

On Jun/11 On Mar/12

Civil Servants 40.4 84.4 44.9 85.6 47.0 85.7 16.4 4.9

INSS's Retirees and Pensioners 4.6 9.6 4.8 9.1 5.0 9.1 8.4 4.1

Employees from the Private Sector 2.9 6.0 2.8 5.3 2.9 5.2 (0.3) 3.6


Payroll Loans

R$ billion


34 34

Individuals Loan Portfolio – Average Rates/Tenor


Banco do Brasil

CDC - Vehicles

Average rate - % p.m 1.54 1.61 1.55

Average term - months 49.0 49.4 48.7

Vahicles Leasing

Average rate - % p.m 1.60 1.58 1.58


Mortgage

Average Contracted Amount - R$ thousand 158.5 157.0 152.1


Payroll Loan

Average rate - % p.m 2.27 2.17 2.00


BV - Vehicles Loan

Average rate - % p.m 2.11 2.00 1.84



35 35

Loans to Companies – SME

Loans by segment

Credit Products

On Jun/11 On Mar/12

Manufacturing Industries 18.4 30.7 23.6 33.6 26.0 34.5 41.5 10.4

Trade 26.8 44.8 30.2 43.1 31.9 42.3 18.8 5.5

Services Segment 14.7 24.5 16.4 23.4 17.4 23.1 18.9 6.1

Total 59.9 100.0 70.2 100.0 75.4 100.0 25.8 7.3

Jun/11Chg. %

Share % Mar/12 Share % Jun/12 Share %

On Jun/11 On Mar/12

Working Capital 42.6 71.1 48.2 68.6 51.5 68.4 21.0 7.0

Investment 16.1 26.9 20.1 28.7 21.9 29.1 36.1 8.7

Foreign Trade 1.2 2.1 1.9 2.8 1.9 2.6 58.0 0.2

Total 59.9 100.0 70.2 100.0 75.4 100.0 25.8 7.3


R$ billion



Agribusiness1

Loan Portfolio by purpose

Loan Portfolio by credit line

(1) Classified concept

On Jun/11 On Mar/12

Work. Cap. for Input Purchase 26.5 32.8 29.4 32.1 31.4 33.1 18.6 6.7

Investment 28.2 35.0 34.0 37.1 36.4 38.4 29.2 7.1

Crop Trading 4.1 5.1 4.3 4.7 4.1 4.3 (0.3) (4.9)

Agroindustry 18.9 23.4 21.2 23.1 20.9 22.0 10.6 (1.4)

Other 2.9 3.6 2.7 3.0 2.0 2.2 (30.0) (25.2)

Total 80.6 100.0 91.7 100.0 94.8 100.0 17.7 3.5


On Jun/11 On Mar/12

Agri. and Livestock Working Capital 17.6 21.8 19.1 20.8 20.7 21.8 17.3 8.1

Loans to Companies 19.8 24.6 21.7 23.6 21.3 22.5 7.6 (1.6)

Pronaf / Pronamp 23.9 29.7 28.7 31.3 30.3 31.9 26.6 5.5

FCO Rural 6.2 7.6 7.0 7.6 7.4 7.8 20.7 6.2

BNDES / Finame Rural 5.7 7.1 5.4 5.9 4.8 5.1 (15.7) (11.3)

Other 7.3 9.1 9.7 10.6 10.3 10.9 40.7 6.0

Total 80.6 100.0 91.7 100.0 94.8 100.0 17.7 3.5


R$ billion

37 37

Agribusiness1

Loan Portfolio by Size of customer

Working Capital for input purchase - Insurance

Segment Jun/11 Share % Mar/12 Share % Jun/12 Share %

Mini 5.3 6.5 5.3 5.8 5.3 5.6

Small 17.0 21.1 19.0 20.7 19.8 20.8

Medium and Large Sized 29.4 36.5 35.2 38.4 38.4 40.5

Cooperatives 24.0 29.8 26.5 28.9 25.6 27.0

Businesses 4.9 6.0 5.7 6.2 5.8 6.1

Total 80.6 100.0 91.7 100.0 94.8 100.0

Operation Contracted

Crop 10/11¹ Share % Crop 11/12¹ Share %

Working Capital for Input Purchase 17.3 100.0 18.5 100.0

Total Insured 8.1 47.0 9.0 48.8

With Proagro 4.6 26.6 4.8 25.8

With Insurance 2.8 16.1 3.8 20.3

Hedge Price 0.7 4.3 0.5 2.7

Outcome Insurance 9.2 53.0 9.5 51.2

R$ billion



38 38

Individuals Loan Portfolio1 – Risk Level

Balance Provision Share Balance Provision Share Balance Provision Share

AA 670 - 0.7 7,689 - 6.8 10,008 - 8.3

A 13,223 66 13.0 27,840 139 24.8 36,699 183 30.6

B 52,479 525 51.4 47,169 460 41.0 41,447 414 34.5

C 26,468 794 25.9 20,674 620 18.4 21,606 648 18.0

D 3,069 307 3.0 2,650 265 2.4 2,656 266 2.2

E 561 168 0.5 1,142 343 1.0 1,142 343 1.0

F 677 338 0.7 519 259 0.5 705 352 0.6

G 580 406 0.6 593 415 0.5 633 443 0.5

H 4,376 4,376 4.3 5,111 5,111 4.6 5,122 5,122 4.3

Total 102,102 6,980 100.0 113,386 7,612 100.0 120,019 7,771 100.0

AA-C 92,840 1,385 90.9 103,372 1,220 91.1 109,761 1,246 91.5

D-H 9,262 5,595 9.1 10,014 6,393 8.9 10,258 6,525 8.5


R$ million



39 39

Loans to Companies1 – Risk Level


AA 65,929 - 45.4 73,510 - 44.9 79,159 - 44.4

A 32,585 163 22.4 36,257 181 22.1 41,515 208 23.3

B 35,189 352 24.2 42,147 422 25.7 45,267 453 25.4

C 4,462 134 3.1 4,189 126 2.6 3,632 109 2.0

D 2,277 228 1.6 1,830 183 1.1 2,483 248 1.4

E 877 263 0.6 1,477 443 0.9 1,239 372 0.7

F 838 419 0.6 667 334 0.4 829 414 0.5

G 614 430 0.4 1,034 724 0.6 975 682 0.5

H 2,538 2,538 1.7 2,769 2,769 1.7 3,254 3,254 1.8

Total 145,309 4,526 100.0 163,880 5,181 100.0 178,354 5,740 100.0

AA-C 138,165 649 95.1 156,103 729 95.3 169,574 769 95.1

D-H 7,144 3,877 4.9 7,777 4,453 4.7 8,780 4,971 4.9


R$ million




Agribusiness1 – Risk Level


AA 17,769 - 22.1 19,481 - 21.3 19,435 - 20.5

A 14,229 71 17.7 19,864 99 21.7 19,692 98 20.8

B 35,172 352 43.7 40,575 406 44.3 43,869 439 46.3

C 7,501 225 9.3 6,484 195 7.1 6,572 197 6.9

D 3,021 302 3.8 2,690 269 2.9 2,703 270 2.9

E 424 127 0.5 639 192 0.7 610 183 0.6

F 256 128 0.3 240 120 0.3 256 128 0.3

G 298 209 0.4 336 235 0.4 266 186 0.3

H 1,882 1,882 2.3 1,350 1,350 1.5 1,425 1,425 1.5

Total 80,551 3,296 100.0 91,658 2,865 100.0 94,828 2,927 100.0

AA-C 74,670 648 92.7 86,404 700 94.3 89,568 734 94.5

D-H 5,881 2,648 7.3 5,255 2,166 5.7 5,261 2,193 5.5


R$ million


41 41

Agribusiness Transactions with/without rollover 1

(1) Classified concept.

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

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

Risk Balance

All. for

Loan

Losses

NPL 90² Balance

All. for

Loan

Losses

NPL 90² Balance

All. for

Loan

Losses

NPL 90² Balance

All. for

Loan

Losses

NPL 90²

AA 19,363 - 53 118 - 9 19,328 - 54 106 - 8

A 19,570 98 0 294 1 0- 19,390 97 0 302 2 0-

B 39,099 391 - 1,477 15 - 42,389 424 - 1,481 15 -

C 5,223 157 6 1,260 38 0 5,429 163 3 1,143 34 0

D 1,612 161 9 1,078 108 3 1,696 170 9 1,007 101 1

E 300 90 35 339 102 10 291 87 29 319 96 3

F 103 52 25 137 68 15 134 67 23 122 61 7

G 176 123 74 160 112 21 105 74 20 161 113 11

H 672 672 165 678 678 141 806 806 249 619 619 71

Total 86,119 1,744 315 5,540 1,121 191 89,568 1,887 333 5,260 1,040 93

Mar/12 Jun/12

R$ million


42 42

Agribusiness – Regular and Reestructured Transactions¹

6.5 5.8 5.7 5.5 5.3

75.0 78.0 83.7 86.9 90.4

81.5 83.889.4

92.495.7


Regular

Reestructured

R$ billion



43 43

Renegotiated Loan Portfolio


Renegotiated Loan Portfolio¹ (R$ milhões) 8,377 6,902 6,711

Allowance for Loan Losses Balance (R$ milhões) 1,910 1,501 1,486

NPL + 90 days (R$ milhões) 507 456 394

All. for Loan Losses / Loan Portfolio (%) 22.8 21.7 22.1

NPL + 90 days / Loan Portfolio (%) 6.0 6.6 5.9

All. for Loan Losses Balance/NPL + 90 days (%) 377.0 329.0 376.8

(1) It refers to renegociated loan portfolio of non performing loans.


44 44

Funding

On Jun/11On Mar/12

Demand Deposits 61.1 15.4 60.7 13.6 60.6 13.0 (0.9) (0.1)

Saving Deposits 89.2 22.5 101.8 22.8 105.6 22.6 18.3 3.7

Interbank Deposits 11.6 2.9 14.3 3.2 15.0 3.2 29.9 5.1

Time Deposits 234.2 59.1 270.1 60.4 285.8 61.2 22.0 5.8

Judicial Deposits 74.5 18.8 80.5 18.0 85.0 18.2 14.1 5.7

Total 396.2 100.0 446.9 100.0 467.0 100.0 17.9 4.5


R$ billion


45

Technical Reserves (R$ billion) Managed Portfolio (R$ billion)

Combined Ratio – Broad Concept (%) Insurance Result (R$ million)

45

Insurance

(1) Managerial Measurement (Brokerage Net Revenue and Service Fee Net Income + Equity Earnings ) / Adjusted Net Income

402.5 409.6 421.8 427.4 417.4

12.5

15.913.9

15.814.0

2Q11 3Q11 4Q11 1Q12 2Q12

Insurance Ratio (%)

81.4 83.4 82.8 84.5 83.0

2Q11 3Q11 4Q11 1Q12 2Q12

53.857.3

61.867.4

71.9


53.156.9

61.067.1

71.3



46 46

Actuarial Assets

R$ million

2Q11 3Q11 4Q11 1Q12 2Q12

(a) Fair Value of the Plan's Assets 138,225 138,225 133,079 133,079 133,468

(b) Present Value of Actuarial Liabilities (94,711) (94,711) (98,850) (98,850) (105,772)

(c) Surplus BB = [(a) + (b)] x 50% 21,757 21,757 17,115 17,115 13,848

(d) Amount Recognized before the Half-Yearly Accouting 11,379 12,688 13,372 13,870 14,386

Acturial Assets (Initial Period) 10,563 12,051 12,688 13,372 13,870

Antecipated Montly Recognition 624 531 531 390 390

Contract 97 Contributions ¹ 193 107 153 108 125

(e) Unrecognized Amount = (c) - (d) 10,377 9,068 3,743 3,245 (537)

(f) Corridor Method - BB ² 6,911 6,911 6,654 6,654 6,673

(g) Excess = (e) - (f) 3,466 2,157 - - -

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

(i) Amount Recognized in Half-Yearly Adjust = (g) / (h) 672 - - - -

(j) Acturial Assets (Period End) = (f) + (i) 12,051 12,688 13,372 13,870 14,386(1) Amouts do not impact the income statement and refer to payments made by the Bank in the Contract 97.

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


47 47

Distribution Network

(1) CEF – lottery stores, Banco 24h, ATM: BRB + CEF

Total Distribution Network

Branches 5,317

SAA 4,947

Points of Service 8,581

Banking Agents 14,492

Banco Postal 6,191

Shared Distribution Channels¹ 25,238

Total 64,766


48 48

MaisBB Network¹ - 1H12 Performance

(1) It refers to BdB banking agents network

MaisBB Banco Postal

Transactions 167 million 52 million

Transacted volume R$ 40 billion R$ 12.9 billion

Checking accounts openned 641 thousand 604 thousand

Clients with credit card Not commercialized 589 thousand

Points of service 14,492 6,191


Conference Call 2Q12 Earnings - BB · Conference Call 2Q12 Earnings . Banco do Brasil S.A. –...

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