Banco do Brasil
2Q07 Results
1
Recurring Net Income grows...
47.8
36.3
19.8
14.2
26.7
29.4
18.0
29.4
18.4
20.9
3,889
29.0
24.3
2,923
1,546
1,409
1,464
1,248
2,477
907
1,068
1,586
832
Δ Recurring Net
Income - 126.2%
647
2Q06
3Q06
4Q06
1Q07
2Q07
Δ Recurring Net
Income - 84.4%
1H06
1H07
Net Income – R$ million
ROE (Annualized) - %
Recurring Net Income – R$ million
Recurring ROE (Annualized) - %
...and ROE goes into a positive trend.
2
Net Interest Income and less provisions...
R$ million
Net Income 1Q07
(
)
Higher Interest Income
355
Less Credit Risk Expenses
195
Other Administrative Expenses Growth
119
Provisions for Legal Risk Strengthening
152
Higher Taxes Expenses
195
Other Effects
Recurring Net Income 2Q07
(
)
1,409
Early Retirement Plan and Previ Effects
Net Income 2Q07
29
1,464
396
1,068
...compensated higher expenses, taxes and legal risk.
3
Net Interest Income grows...
R$ billion
10.1
8.7
4.8
4.4
4.3
5.2
4.8
1.3
0.9
0.6
4.9
3.3
0.3
0.4
3.4
3.3
4.7
5.3
2Q06
3Q06
9.6
9.4
3.0
5.8
4Q06
3.2
4.8
4.8
4.6
5.4
0.8
0.5
6.1
1Q07
6.2
6.8
10.4
12.2
6.1
2Q07
Net Interest Income
Loan Revenues
Interest Expense
Security Revenues
1H06
1H07
Other Interest Revenues
... on the back of loan revenues.
4
NIM kept stable...
15.7
14.6
13.6
8.1
2Q06
7.9
3Q06
8.4
4Q06
Average Selic Annualized - %
12.9
12.3
7.9
7.9
1Q07
2Q07
Annualized NIM by Loan Portfolio - %
NIM Annualized¹ - %
33.0
(1) Net Interest Income over Earning Assets
31.4
31.8
28.9
28.8
8.9
8.5
8.0
7.3
7.0
5.7
5.2
6.4
7.0
6.6
2Q06
3Q06
Individuals
4Q06
Businesses
1Q07
2Q07
Agribusinesses
... despite the Selic easing cycle.
5
Growth in the long fixed rate exposure...
Related to Selic - %
117.8
62.7
127.2
124.8
128.1
Investment
Interest Rate
62.1
62.0
61.5
Funding
Interest Rate
112.6
58.1
46.4
36.1
23.8 21.9
29.9
27.7
19.0
22.9
18.2
12.7
2Q06
3Q06
4Q06
1Q07
2Q07
Domestic Long Net Exposure - R$ billion
Floating Rate
Fixed Rate
...helps to protect the NIM.
6
Strong growth in the Loan Portfolio...
R$ billion
Δ % over
2Q06
1Q07
133.2
113.1
118.3
9.9
10.4
21.6
23.2
12.2
140.4
12.3
12.2
26.1
45.1
46.8
48.8
39.9
40.3
41.7
44.4
51.9
55.2
56.3
2Q06
3Q06
4Q06
1Q07
2Q07
Businesses
Individuals
Agribusinesses
Abroad
3.5
23.5
(0.8)
29.0
6.8
22.2
4.3
35.3
2.1
145.2
27.9
24.0
28.4
...explains the Net Interest Income performance.
7
Focus on Individuals Portfolio...
R$ billion
Δ % over
2Q06
1Q07
26.1
9.6
0.4
2.6
2.7
2Q06
0.6
9.3
8.3
7.4
6.0
6.8
9.9
(0.3)
2.8
10.2
68.4
8.9
8.2
(0.5)
28.9
7.9
320.4
33.7
9.5
10.1
9.9
29.0
24.0
23.2
21.6
27.9
2.3
2.8
0.9
3Q06
2.2
3.1
4Q06
2.7
2.6
3.2
3.4
1.3
1.7
1Q07
Cars Loan
Overdraft Account
Credit Card
Payroll Loan
2Q07
Others
... highlighting cars and payroll loans.
8
Stable Credit Risk...
Average Risk - %
6.9
6.8
6.8
6.7
6.2
6.2
6.0
BB
Banking Industry
5.4
5.4
5.4
Required Provision / Past Due Loan + 90 days - %
213.9
211.1
179.6
222.7
214.0
175.1
170.1
221.9
173.1
166.2
BB
Banking Industry
2Q06
3Q06
4Q06
1Q07
2Q07
... better than the industry...
9
...allows provisions to recede...
5.5
5.6
5.0
4.8
4.1
1,757
1,385
1,431
1,257
1,236
7.4
2Q06
3Q06
4Q06
1Q07
Provision Expenses - R$ million
2Q07
5.0
7.4
6.5
6.5
6.5
4.1
4.2
4.1
2.9
2.8
2.8
4Q06
1Q07
2Q07
5.2
Provision Expenses / Loan Portfolio¹ - %
3.6
2Q06
3.8
3Q06
Provision / Loan Portfolio - %
Past Over Due Loans + 15 days / Loan Portfolio - %
(1) Average Portfolio and Expenses of the past 12 months
Past Over Due Loans + 60 days / Loan Portfolio - %
...with delinquency under control.
10
Provisions...
R$ million
8,414
752
7,662
Jun/06
8,757
8,635
548
Sep/06
9,441
1,582
1,655
7,238
7,551
7,786
Dec/06
Mar/07
1,397
8,209
9,133
Jun/07
Total Provision
Required Provision
Additional Provision
... denoting conservative approach.
11
Funding still growing....
R$ billion
Δ % over
2Q06
1Q07
139.9
6.0
144.9
5.7
2.4
158.8
5.2
160.7
5.3
164.5
5.4
(9.0)
3.3
76.9
80.9
81.4
17.4
0.7
40.1
35.6
36.8
17.5
3.5
22.9
4.9
69.4
72.3
31.4
32.4
33.2
34.4
36.7
38.9
40.8
Jun/06
Sep/06
Dec/06
Mar/07
Jun/07
Saving Deposits
Time Deposits
17.6
Demand Deposits
Others
... highlighting saving and demand deposits.
12
Fees from products and customers...
R$ million
Δ % over
2Q06
1Q07
2,252
2,287
2,377
322
349
316
715
713
722
742
1,211
1,217
1,216
1,319
2,246
320
2Q06
3Q06
Products
4Q06
Customers
2,437
285
772
8.5
2.5
(10.9)
(9.8)
8.0
4.0
14.0
4.6
1,381
1Q07
2Q07
Others
... still growing.
13
Assets under Management surpass R$ 200 billion...
19.7
171.2
19.7
180.6
19.1
182.7
19.1
193.1
19.1
208.9
Δ= 8.2%
Δ= 22.0%
Customers - million
2Q06
3Q06
4Q06
1Q07
Market Share - %
Assets under Management - R$ billion
2Q07
23.7
24.1
24.4
24.6
24.9
1.5
1.5
1.6
1.6
1.6
22.2
22.6
22.8
23.0
23.3
2Q06
3Q06
4Q06
1Q07
2Q07
Individuals
Companies
...and the customer basis reach 25 million.
14
Insurance reaches a new level of performance...
Value Added¹ - R$ million
300
245
315
316
250
Δ= 0.5%
Δ= 28.9%
2Q06
3Q06
4Q06
1Q07
2Q07
(1) Includes equity income, fee income, brokage and asset management income
15
...so does credit card business.
Value Added¹ - R$ million
558
454
559
508
486
Δ= 10.1%
Δ= 23.1%
2Q06
3Q06
4Q06
1Q07
2Q07
(1) Includes fee income, financing income, equity income and others
16
Great expansion in the credit card basis...
14.1
9.9
15.7
11.4
10.9
8.9
14.4
11.2
11.5
9.4
Δ= 3.4%
Δ= 29.9%
2Q06
3Q06
4Q06
1Q07
2Q07
Credit Cards - million
(1) Includes Credit Cards and Debit Cards
Revenue¹ - R$ billion
...6 million new cards in 12 months.
17
Costs under control...
R$ million
Δ % over
2Q06
1Q07
3,396
3,268
1,401
1,519
9.9
8.5
1,846
1,748
1,713
(6.9)
(2.0)
4Q06
1Q07
2Q07
3,216
1,383
1,378
1,516
1,839
1,804
2Q06
3Q06
(1) Legal risk and extraordinary items are not included.
2.6
3,186
3,253
Personnel Expenses¹
0.5
Other Administrative Expenses¹
...in line with the business pace.
18
Early Retirement Plan and Previ...
Early Retirement Plan

Eligible Employees: those above 50 years old or able to receive INSS pension and over 15
year contribution to Previ

6.9 thousand people joined

Impacts in the 2Q07: R$ 445.9 million, after taxes

Forecasted saving for 2008: R$ 158 million, after taxes
Suspension of the Contributions to Previ

Suspension of the contributions to the Benefit Plan #1

Impacts in the 2Q07: R$ 50 million, after taxes

Forecasted saving for 2008: R$ 200 million, after taxes (subject of revaluation every 12
months)
...bring future cost savings and...
19
...reduction in the workforce.
Workforce - thousand
10.5
10.2
9.9
10.1
9.8
82.9
82.6
82.7
82.5
79.3
Points of Service - thousand
2Q06
3Q06
Employees
4Q06
1Q07
2Q07
15.0
15.0
15.1
15.1
15.2
3.9
4.0
4.0
4.0
4.0
11.0
11.1
11.1
11.2
11.2
2Q06
3Q06
4Q06
1Q07
2Q07
Interns
Branches
Others
20
Fee Income...
R$ billion
112.2
113.4
127.9
112.9
130.2
110.1
2.2
2.0
2Q06
(1) Year to Date
2.3
2.2
1.9
3Q06
2.4
2.4
2.5
2.0
1.9
4Q06
1Q07
Recurring Coverage Ratio¹ - %
Fee Income
Coverage Ratio¹ - %
Personnel Expenses
2Q07
...covers more than 130% of personnel expenses.
21
Expenses control allows...
R$ billion
45.5
49.1
47.5
46.5
44.1
44.7
8.0
7.1
3.4
3.4
2Q06
(1) Year to Date
3Q06
3.6
4Q06
7.7
7.5
7.1
4.2
3.3
1Q07
2Q07
Recurring Efficiency Ratio¹ - %
Administrative Expenses
Efficiency Ratio¹ - %
Operating Income
...to keep efficiency on the track.
22
BIS Ratio allows...
%
17.3
17.7
17.3
17.2
15.9
5.7
5.8
5.6
5.5
5.3
11.6
11.9
Jun/06
Sep/06
11.6
Dec/06
Tier I
11.6
Mar/07
10.6
Jun/07
Tier II
...a R$ 88 billion leverage margin.
23
Investor Relations Unit
SBS - Quadra 1 - Bloco C - Ed. Sede III - 5° floor
70073-901 - Brasília (DF)
Phone: 55 (61) 3310.3980
Fax: 55 (61) 3310.3735
www.bb.com.br
ri@bb.com.br
Disclaimer - This presentation contains 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, it also involves imprecision and high difficult risks to be foreseen, consequently, it may conduct to a different result than the
one anticipated here. These expectations are highly depended on market conditions, on the Brazilian economic performance, on the sector and the
international market. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation.
For further information access www.bb.com.br/ri
24