BANCO DO BRASIL

1

Banco do BrasilBanco do Brasil

20042004

Investor RelationsInvestor Relations

BANCO DO BRASILBANCO DO BRASIL

2004 Results2004 Results

Conference Call with Analysts

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20042004


HighlightsHighlights

Largest Loan Portfolio – R$ 88.6 billion (CAGR 19.3%);

Leader in the export foreign exchange segment – 27.2% market share;

Leader in asset management in Latin America – R$ 124.0 billion (CAGR 29.9%);

Largest Customer Base – 21.1 million (CAGR 13.7%);

Leader in Internet – 6.9 million customers;

Largest service network in the country – 14,450 points;

Largest automated teller machine network in Latin America – 39,015 ATMs;

3rd place ANBID's ranking of fixed income underwriting in financial volume and in quantity of operations.

1st in Assets – R$ 239.0 billion (CAGR 13.7%);

1st in Total Deposits – R$ 115.5 billion (CAGR 8.8%);

CAGR – 1999 to 2004 except Credit Portfolio (2000 to 2004)

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20042004


Result BuildingResult Building

Spread Reduction

Increase in Credit Operations

Growth of Services Revenues

Productivity Ratios maintenance

Growth of Administrative Expenses

Decrease of Income Tax and Social Contribution

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20042004


Change4Q03 3Q04 4Q04 /4Q03 /3Q04 2003 2004 /2003

Gross Financial Margin 3,977 3,919 4,086 2.7 4.2 15,327 15,718 2.6

Provision for NPL (827) (856) (868) 5.0 1.4 (3,073) (3,531) 14.9

Service Fees 1,511 1,717 1,702 12.7 -0.8 5,491 6,607 20.3

Administrative Expenses (3,149) (3,129) (3,509) 11.5 12.2 (11,298) (12,432) 10.0

Income before Profit Sh. Taxes Ext. Items 1,374 1,336 899 -34.6 -32.7 4,959 4,518 -8.9

Income Tax and Social Contribution (453) (545) (187) -58.7 -65.7 (2,067) (1,148) -44.4

Recurrent Result 765 724 586 -23.4 -19.0 2,619 2,997 14.4

Net Income 637 833 771 20.9 -7.4 2,381 3,024 27.0

Quarterly Flow Change Annual FlowR$ million

Result HighlightsResult Highlights

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20042004


Net IncomeNet Income

R$ millionChange

4Q03 3Q04 4Q04 /4Q03 /3Q04 2003 2004 /2003Net Income 637 833 771 20.9 -7.4 2,381 3,024 27.0Interest on Own Capital 746.0 954.0 27.9EPS - R$ 0.87 1.14 0.96 10.3 -15.6 3.25 3.78 16.3ROE - % (Annualized) 23.1 27.5 24.0 22.3 23.0ROA - % (Annualized) 1.1 1.4 1.3 1.1 1.3

Quarterly Flow Change Annual Flow

2,381

3,024

22.3 23.0

2003 2004

637 616

805 833771

23.121.3

27.7 27.524.0

4Q03 1Q04 2Q04 3Q04 4Q04

ROE - % (Annualized)

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20042004


Analysis of Volume and SpreadAnalysis of Volume and Spread

Gain/(Loss) due to VolumeGain/(Loss) due to spreadGain/(Loss) due to Volume and Spread

133

32 1

3,919

4Q04 - 1.7401

3Q04 - 1.7258

4Q04 - 234,8023Q04 - 227,099

Volume - R$ million

Spread - %

Annual

1,424

(945)

15,327

2003 - 7.3618

2004 - 6.9078

2004 - 227,5412003 - 208,198

Volume - R$ million

Spread - %

(88)

Quarterly

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20042004


Analysis of Management Spread - %Analysis of Management Spread - %

Portfolio Mix - % (daily balance average)

2003 2004 2003 2004Rate 7.36 6.91 7.36 6.91

Loans 13.15 12.75 3.71 4.01Individuals 38.25 35.73 2.08 2.19Businesses 8.86 9.04 1.05 1.17Agribusiness 6.13 5.56 0.60 0.62Other Transactions -1.34 2.19 -0.02 0.03

Funding 5.65 4.02 2.29 1.65Other 4.36 4.54 1.37 1.25

Nominal Spread Weighted Spread

2003

19.3

41.9

34.7

4.1

2004

19.5

41.3

35.6

3.6

Individuals Businesses Agribusiness Other Transactions

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20042004


18.8 19.3 20.1 20.7 21.1

321 300 296 286 285

4Q03 1Q04 2Q04 3Q04 4Q04

Customers Service Revenues + GFM / Average Customers Base - R$

Change4Q03 3Q04 4Q04 /4Q03 /3Q04 2003 2004 /2003

Service Revenues 1,511 1,717 1,702 12.7 -0.8 5,491 6,607 20.3Customer Relationship Fees 451 514 539 19.6 4.8 1,647 2,044 24.1Investment Fund Management Fees 220 270 248 12.8 -7.9 784 993 26.7Loan Fees 148 161 153 3.0 -4.9 538 621 15.5Collections 143 158 173 21.0 9.6 500 638 27.6Funds Transfers 106 112 116 9.6 3.8 392 461 17.6Credit Cards 130 137 156 19.6 13.5 461 563 22.3Others 312 364 317 1.6 -13.1 1,170 1,286 10.0

Quarterly Flow Change Annual FlowR$ million

Service RevenuesService Revenues

Customers Base - million Asset Management

102.7116.0 116.9 122.5 124.0

19.0 20.2 19.9 20.0 19.7

4Q03 1Q04 2Q04 3Q04 4Q04

Asset Management Market Share - %

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20042004


Change4Q03 3Q04 4Q04 /4Q03 /3Q04 2003 2004 /2003

Personnel Expenses (1,949) (1,744) (1,840) -5.6 5.5 (6,660) (6,818) 2.4Salaries (892) (712) (902) 1.1 26.6 (2,990) (3,155) 5.5Benefits (207) (182) (203) -2.0 11.6 (728) (758) 4.1Social Charges (342) (300) (361) 5.5 20.2 (1,155) (1,240) 7.4Training (17) (10) (25) 42.1 149.0 (41) (52) 26.3Remuneration for Counselors and Directors (2) (3) (3) 96.6 20.3 (6) (9) 63.5Administrative Personnel Provisions (98) (396) (177) 81.1 -55.2 (860) (1,051) 22.3Labor Lawsuits (391) (141) (169) -56.8 19.5 (881) (553) -37.2


Personal ExpensesPersonal Expenses

R$ million

Coverage Ratio – YTD - % Human Resources - thousand

Service Income / Personnel Expenses

82.4

98.6 98.3 98.4 96.9

4Q03 1Q04 2Q04 3Q04 4Q04

90.8 92.3 92.6 93.1 93.0

80.6 81.8 81.9 82.6 82.7

10.2 10.6 10.7 10.5 10.3

4Q03 1Q04 2Q04 3Q04 4Q04

Workforce Employees Interns

2.62.8 2.8 2.9 2.9

Dep. + Asset Management / Employee - R$ million

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20042004


206 209 217 221 227

4Q03 1Q04 2Q04 3Q04 4Q04

17.3 17.5 17.4 17.4 17.3

4Q03 1Q04 2Q04 3Q04 4Q04

Workforce per Branch*

Assets per Workforce - R$ thousand

Customers per Workforce

Productivity RatiosProductivity Ratios

* Branch, Advanced Service Post and Banking Service Post

2,534 2,503 2,455 2,531 2,570

4Q03 1Q04 2Q04 3Q04 4Q04

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20042004


Points of Service - thousand Customers per Branch*

R$ million

Other Administrative ExpensesOther Administrative Expenses

13.2 13.5 13.9 14.2 14.5

5.9 5.9 6.0 5.9 6.1

4Q03 1Q04 2Q04 3Q04 4Q04

3,578 3,646 3,766 3,855 3,931

4Q03 1Q04 2Q04 3Q04 4Q04

* Branch, Advanced Service Post and Banking Service Post

Change4Q03 3Q04 4Q04 /4Q03 /3Q04 2003 2004 /2003

Other Administrative Expenses (1,165) (1,344) (1,633) 40.2 21.5 (4,514) (5,466) 21.1Telecommunications and Data Processing (289) (315) (319) 10.3 1.2 (1,118) (1,247) 11.6Amortization and Depreciation (117) (131) (132) 13.3 0.8 (477) (512) 7.2Security, Guard and Transport Services (166) (173) (210) 26.2 21.4 (643) (724) 12.5Expenses with Premises and Equipment (138) (145) (174) 26.2 20.1 (534) (621) 16.4Marketing and Public Relations (130) (132) (265) 104.6 101.3 (336) (556) 65.2Expenses with Outsourced Services (109) (127) (169) 55.3 33.0 (371) (518) 39.5Other Administrative Expenses (215) (320) (363) 68.6 13.3 (1,034) (1,288) 24.6


Credit Operations / Points of Service - R$ million

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20042004


Automated ChannelsAutomated Channels

Electronic Transactions / Total Transactions - %

Efficiency Ratio – YTD - %

Administrative Expenses / Operational Income

86.4 86.3 86.989.6 88.4

4Q03 1Q04 2Q04 3Q04 4Q04

56.3 55.6 56.8 56.4 58.2

4Q03 1Q04 2Q04 3Q04 4Q04

ATM Internet Individual Internet Corporate Cashier POS COBAN and Others

4T03

51,5

10,7

16,3

13,6

5,6 2,3

4T04

50,7

11,9

16,7

11,6

6,9 2,2

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20042004


Business vs. Expenses - %Business vs. Expenses - %

124.3132.1

151.4

186.9 184.3 179.6

37.5 41.036.646.2 48.6 53.1

126.4135.7140.7

110.394.6

87.7

1999 2000 2001 2002 2003 2004

Service Revenues - SR Gross Financial Margin - GFM Total

CAGR - %SR 18.9 GFM 18.7 Adm. Exp. 10.3

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20042004


4Q03 3Q04 4Q04 /4Q03 /3Q04Total Assets 230,144 235,599 239,014 3.9 1.4

Liquidity Assets except Securities 44,197 35,228 31,868 -27.9 -9.5Securities Portfolio 69,590 71,120 73,485 5.6 3.3Loans and Leasing 65,604 69,961 74,844 14.1 7.0Tax Credits 9,406 8,505 8,396 -10.7 -1.3Other Assets 41,347 50,785 50,421 21.9 -0.7

Total Liabilities 230,144 235,599 239,014 3.9 1.4Deposits 110,014 115,079 115,532 5.0 0.4Other Liabilities 107,959 106,749 109,377 1.3 2.5

Shareholders’ Equity 12,172 13,771 14,106 15.9 2.4

ChangeR$ million

Assets, Liabilities and Shareholders’ EquityAssets, Liabilities and Shareholders’ Equity

Asset Composition - % Market Funding – R$ billion

18.0 19.1 21.5 21.6 21.1

28.5 28.8 30.5 29.7 31.3

30.2 29.4 30.7 30.2 30.7

19.2 18.9 13.3 15.0 13.3

3.53.63.93.94.1

4Q03 1Q04 2Q04 3Q04 4Q04

7.3 27

.1

27.4 48

.2

40.1

150.

1

5.5

30.2

29.9 49

.4

42.0

157.

1

5.8

29.0

31.1 49

.7

44.5

160.

1

InterbankDeposits

DemandDeposits

Savingdeposits

TimeDeposits

Money MarketBorrowing

Total

4Q03 3Q04 4Q04

4Q03 1Q04 2Q04 3Q04 4Q04

Liquidity Assets Securities Portfolio

Credit Operations and Leasing Tax Credit

Other Assets

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20042004


4Q03 3Q04 4Q04 /4Q03 /3Q04Securities Portfolio 69,590 71,120 73,485 5.6 3.3

Available for trading 16,095 12,690 13,163 -18.2 3.7Available for sale 28,307 31,997 32,790 15.8 2.5Held to maturity 24,821 25,945 26,951 8.6 3.9Financial Derivatives 368 488 581 58.1 19.1

ChangeR$ million

SecuritiesSecurities

Security Portfolio by Maturity - %

4Q03 4Q04

16.7 19.5 21.4 22.8 29.6

72.0 69.3 67.3 65.9 61.2

9.3 10.6 10.7 10.7 8.60.60.60.60.72.1

4Q03 1Q04 2Q04 3Q04 4Q04

Up to 1 year 1 to 5 years 5 to 10 years Over 10 years

63.9

36.1

73.7

26.3

1 - 3 years 3 - 5 years

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20042004


4Q03 3Q04 4Q04 /4Q03 /3Q04Credit Portfolio 77,636 84,148 88,554 14.1 5.2

Change

Credit PortfolioCredit Portfolio

R$ million

4Q03 3Q04 4Q04

Retail Commercial AgribusinessForeign Trade Abroad Others

20.1

21.2

34.5

9.4

12.22.6

24.0

21.4

30.5

10.1

11.92.0

23.1

21.8

33.9

9.0

10.2 2.0

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20042004


Banking Industry*

* Source: Brazilian Central Bank

Credit Portfolio by Risk Level - %Credit Portfolio by Risk Level - %

83.994.6 96.3 97.7 97.4

2.62.33.75.416.1

Retail Commercial Agribusiness Foreign Trade Abroad

AA-C D-H

92.1 89.6

7.9 10.4

BB

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20042004


4Q03 3Q04 4Q04 /4Q03 /3Q04Credit Portfolio 77,636 84,148 88,554 14.1 5.2Allowance for Loan Losses 4,195 5,374 5,365 27.9 -0.2Past due Loans + 60 days 2,347 2,726 2,885 22.9 5.8

Change

Credit Portfolio DelinquencyCredit Portfolio Delinquency

R$ million

1.6 2.2 1.7 1.7 2.1

4.4 4.6 4.4 4.4 4.3

4Q03 1Q04 2Q04 3Q04 4Q04

Loss / Credit Portfolio - % annualized Expenses / Portfolio - %

5.45.9 6.1 6.4 6.1

4.75.2 5.1

5.64.9

3.0 3.2 3.2 3.2 3.3

4Q03 1Q04 2Q04 3Q04 4Q04

Allowance for Loan Losses / Credit Portfolio - %

Past Due Loans / Credit Portfolio - %

Past Due Loans + 60 days / Credit Portfolio

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20042004


4Q03 3Q04 4Q04 /4Q03 /3Q04Risk weighted Assets 120,973 121,391 127,179 5.1 4.8Required Shareholders’ Equity 13,772 14,201 14,513 5.4 2.2

Required on weighted assets 13,307 13,353 13,990 5.1 4.8Required on swap 152 223 196 29.6 -12.1Required on exchange exposure - - - - - Required on Interest on Equity 313 625 326 4.3 -47.7

Referential Shareholders’ Equity 17,162 20,272 20,050 16.8 -1.1Tier I 12,147 13,609 14,000 15.2 2.9Tier II 5,015 6,663 6,051 20.7 -9.2

Surplus Shareholders’ Equity 3,391 6,070 5,538 63.3 -8.8Margin to leverage 30,825 55,185 50,344 63.3 -8.8

Change

Capital AdequacyCapital Adequacy

R$ million

11.0

9.7 9.9 10.1 10.5 10.6

4.0 4.4 4.4 5.2 4.6

4Q03 1Q04 2Q04 3Q04 4Q04

Tier I Tier II

13.7 14.3 14.5 15.7 15.2

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20042004


Capital AdequacyCapital Adequacy

R$ million Referential Shareholders' Equity

Required Shareholders' Equity

Effect in Basel Ratio

Effect in Leverage

Net Income deducted of Interest on Own Capital 2,070 - 1.7 18,815 Increase of Subordinated Debt 1,035 - 0.8 9,405 Increase in Capital/Reserves 49 - 0.0 445 Other Changes in Referential Shareholders' Equity (80) - -0.1 (727) Change of Adj. to Market Value - Securities and Derivatives (185) - -0.1 (1,684) Increase of Refer. Shareholders' Equity Requir.on Risk Weight Assets - 683 -0.6 (6,207) Increase of Refer. Shareholders' Equity Requir. on Swap - 45 0.0 (408) Increase of Refer. Shareholders' Equity Requir. on Interest Rate Exp. - 13 0.0 (121) Annual Changes 2,888 741 1.5 19,519 Balance at Dec/03 17,162 13,772 13.7 30,825 Balance at Dec/04 20,050 14,513 15.2 50,344 Net Annual Changes 2,888 741 1.5 19,519

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20042004


InsuranceInsurance

Change4Q03 3Q04 4Q04 /4Q03 /3Q04 2003 2004 /2003

Equity Income 56,057 64,144 23,781 -57.6 -62.9 210,856 197,257 -6.4Service Revenues - Commission 71,284 83,504 77,123 8.2 -7.6 279,672 319,364 14.2Service Revenues - Asset Management 6,479 15,221 26,300 305.9 72.8 34,596 69,696 101.5Service Revenues - Fees 29,514 30,137 26,988 -8.6 -10.4 109,830 133,541 21.6Insurance Added Value 163,334 193,006 154,192 -5.6 -20.1 634,954 719,858 13.4

Quarterly Flow Change Annual FlowR$ thousand

55.7 56.6 53.8 48.1 51.8

18.0 17.7 17.418.4 17.3

12.2 12.7 12.311.5 11.6

4Q03 1Q04 2Q04 3Q04 4Q04

85.9 87.083.5

78.0 80.7

Combined Ratio Evolution - %

Administrative Expenses / Earned PremiumsMarketing Expenses / Earned PremiumsRetained Claims / Earned Premiums

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20042004


BB’s SharesBB’s Shares

Dec/03 Jan/04 Mar/04 Apr/04 May/04 Jun/04 Jul/04 Aug/04 Sep/04 Oct/04 Nov/04 Dec/04

Daily Volume BBAS3 - R$ million BBAS3 Ibovespa

35.4%

17.8%

Feb/04

2003 2004 Chg. %BB's Shares - R$ 24.00 32.50 35.4Ibovespa - points 22,236 26,196 17.8Market Capitalization - R$ million 17,568 25,979 47.9Book Value - R$ 16.63 17.65 6.1Price / Earnings - R$ - 12 months 7.38 8.59 16.4Price / Book value - R$ 1.44 1.84 27.8

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20042004


Investor Relations DivisionSBS - Quadra 1 - Bloco C - Ed. Sede III - 17° floor

70073-901 - Brasília (DF)Phone: 55 (61) 310.5920

Fax: 55 (61) 310.3735

[email protected]

DisclaimerDisclaimer - 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

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BANCO DO BRASIL