Banco do Brasil S.A. 2H07

1

Banco do Brasil S.A.Banco do Brasil S.A.

2H072H07

2

Economic EnvironmentEconomic EnvironmentEconomic EnvironmentEconomic Environment

Interest Rate - Selic Price Index - IPCA

Ratio - %

Source: Central Bank and Brazilian Institute of Geography and Statistics - IBGE

2003

16.5

9.3

2004

17.8

7.6

2005

18.0

5.7

2006

13.3

3.1

1H07

12.0

2.1

15.3

1.5

1H06

3

Trade BalanceInternational Reserves

Economic EnvironmentEconomic EnvironmentEconomic EnvironmentEconomic Environment

Sovereign Risk – basis points

Source: Agência Estado, Ministry of Development, Industry and Foreign Trade and Central Bank

USD billion

463383

303

192

2003

24.8

49.3

2004

33.6

52.9

2005

44.753.8

2006

46.1

85.8

1H07

20.6

147.1

19.4

62.7

1H06

240160

4

Banking IndustryBanking IndustryBanking IndustryBanking Industry

2003 2004 2005 2006 1H07

Businesses Individuals

Loan Segments – Free Resources %Loan / GDP - %

Source: Central Bank

26.2 26.928.1

30.832.3

39.543.6

47.2 47.8 49.0

60.556.4

52.8 52.2 51.0

5

Loan SegmentsLoan SegmentsLoan SegmentsLoan Segments

2003 2005 2006 1H072004

Payroll Loan Credit Card / Overdraft AccountCars Others

Individual Loan Segments - %

Source: Central Bank

45.1

26.6

11.7

16.6

42.5

26.7

10.6

20.2

42.0

26.0

10.9

21.0

47.2

27.5

13.0

12.4

55.1

29.7

15.2

6

Banco do Brasil StructureBanco do Brasil StructureBanco do Brasil StructureBanco do Brasil Structure

COBRABB-99.36% ON

99.34% TotalBI-0.03% ON

0.03% Total

BB LEASINGBB - 100% ON

100% Total

BB VIENA BB -100% ON

100% Total

BBCARTÕESBB - 100% ON

100% Total

BB LEASING Co. LTD

BB - 100% ON 100% Total

BB DTVM BB -100% ON

100% Total

BBCORRETORA

BB - 100%ON 100% Total

BAMBBB -100% ON

100% Total

BBCONSÓRCIOS

BB - 100% ON 100% Total

BB BIBB - 100% ON

100% Total

BANCO DO BRASIL SECURITIES LLC

BB - 100% ON 100% Total

BBSECURITIESBAMB -100% ON

100% Total

BB TURISMO

BAMB - 99% ONBB LEASING – 1%ON

100%Total

ATIVOS S.A. BB BI - 49% ON

74.50 % TotalBAMB - 51% ON 25.50% Total

ALIANÇADO BRASIL

BB-BI 40% ON 70% Total

BRASILPREV

BB-BI 49.99% ON 49.99% Total

CIBRASEC

BB-BI 9.09% ON 9.09% Total

SBCE

BB-BI 12.08% ON 12.08% Total

BRASILSAÚDE

BB-BI 49.92%ON 49.92% Total

VISANET

BB BI Classe A 35% Classe B 28.75%

31.99% Total

ITAPEBI


BRASILCAP

BB-BI 49.99% ON 49.99% Total

KEPLER WEBER

BB-BI 24.38% ON 24.38% TotalDTVM 0.30% ON

0.30% Total

VISA VALE

BB BI 35% ON 40.35% Total

PRONORBB 0% ON

1.05% TotalBI 0% ON

3.27% TotalDTVM 29.5% ON

12.02% Total

Strategic Partnerships

Non-Strategic Partnerships

BRASIL VEÍCULOS


NEOENERGIA

BB-BI 8.81% ON 8.81% Total

TECBAN

BB BI 8.96% ON 8.96% Total

CLEARINGS

CIP BB 9.78% ON 9.78% TotalCBLC BB 2.45% ON 2.45% Total

B B

Strategic Partnerships

CADAM

BB 0% ON 21.64% Total

Non-Strategic Partnerships

Banco do BrasilBanco do Brasil

Other Partnerships

Affiliated Companies

BB BI

Wholly Owned Subsidiaries

BANCO POPULAR DO BRASIL BB -100% ON

100% Total

7

Organizational StructureOrganizational StructureOrganizational StructureOrganizational Structure

Board of Officers

International Business and

Wholesale

Retail Serviceand

Distribution

GovernmentAffairs

Technology and Logistic

Finance,Capital Market andInvestor Relations

CEO

Human Resourcesand Social-

EnvironmentalResponsibility

Credit,Controlling and

Risk Management

Vice-Presidents

Credit and DebitCards andNew RetailBusiness

Agribusinesses

Board of Directors

General Shareholders Meeting

Board of Auditors

Audit Committee

Internal Audit

8

Banco do Brasil’s SharesBanco do Brasil’s SharesBanco do Brasil’s SharesBanco do Brasil’s Shares

National Treasury

PREVI

BNDESPar

Foreign Investors

Others

68.7

11.4

5.0

7.0

7.8

Free Float: 14.8

Participation - %

As of June 2007

9

Share’s PerformanceShare’s PerformanceShare’s PerformanceShare’s Performance

2003 2004 2005 2006 1H07

Price / Book Value

2003 2004 2005 2006 1H07

Price / Earnings

7.48.6 8.1 8.7

14.9

1.41.8 2.0

2.5

3.1

10


31.3

2003

31.5

2004

36.1

2005

40.0

2006

40.0

1H07

Payout - %

2003 2004 2005 2006 1H07¹

Dividend Yield - %

(1) Dividend and Interest on Own Capital in the last 12 months

4.23.7

4.4 4.6

2.7

11


Jun/03 Jun/04 Jun/05 Jun/06

Ibovespa Banco do Brasil

666.4%

311.2%

Jun/07

12

PerformancePerformancePerformancePerformance

Net Income - R$ million

ROE - %

Market Capitalization - R$ billion

Dividends / Interest on Capital - R$ million

2003

2,381

2004

3,024

2005

4,154

2006

6,044

22.3 23.0 26.832.1

2003

17.6

2004

26.0

2005

33.7

2006

52.8

1H06

52.8

2H06 1H07

746954

1,498

2,418

1H06

3,889

2H06

2,156

1H07

2,477

22.6 24.3

47.8

41.3

69.1

862 9911,555

13

Capital StructureCapital StructureCapital StructureCapital Structure

Shareholder’s Equity - R$ billion Tier I - %

BIS Ratio -%

Tier II - %

12.2

2003

14.1

2004

16.8

2005

20.8

2006

19.2

1H06 1H07 2003 2004 2005 2006 1H06 1H07

9.7

4.0

10.6

4.6

11.7

5.4

11.7

5.6

17.317.115.2

13.722.3

11.6

5.7

10.6

5.3

15.917.3

14

113.1

145.2273.8

333.0

HighlightsHighlightsHighlightsHighlights

Market Share² - %

Loan Portfolio - R$ billion

Market Share - %

Assets - R$ billion

2003 2004 2005 2006 1H06 1H07

230.1 239.0253.0

296.4

77.6

2003

88.6

2004

101.8

2005

133.2

2006 1H06 1H07

16.3 16.515.315.9

14.815.1

16.517.3

CAGR: 11.1%

(2) Domestic Portfolio(1) As of March/2007

CAGR: 19.6%

15.1¹15.116.615.7

15

208.9


Market Share - %

Assets Under Management - R$ billion

Market Share - %

Deposits - R$ billion

110.0

2003

115.5

2004

137.7

2005

158.8

2006 1H06 1H07

102.7

2003

124.0

2004

153.5

2005

182.7

2006 1H06 1H07

19.1

20.219.7

19.020.320.220.2

22.4

CAGR: 12.2%

(1) As of March/2007

CAGR: 22.5%

139.9

164.5

20.7¹19.4

171.2

19.1

19.7

16

Customers - million


Individuals Businesses Employees - thousand

2003 18.817.5 1.2

2004 21.119.7 1.4

2005 22.921.5 1.4

2006 24.422.8 1.6

1H07 24.6

1H06 23.7

1H07

2003 78.0

2004 79.7

2005 83.8

2006 82.7

1H06

CAGR:

8.5%

8.5%

23.3 1.6

22.2 1.5

79.3

82.9

17

Infrastructure and TechnologyInfrastructure and TechnologyInfrastructure and TechnologyInfrastructure and TechnologyDistribution Network

Northeast

Branches 995Others 2,895Total 3,890

Branches 1,539Others 3,923Total 5,462



Branches 242Others 917Total 1,159

North

Midwest

South

Southeast

7.7%

11.3%

25.7%

36.0%

19.3%

18

Infrastructure and TechnologyInfrastructure and TechnologyInfrastructure and TechnologyInfrastructure and Technology

Branches Others

Points of Service - thousand

Automated Teller Machine (ATM) - thousand2003 13.23.2 10.0

2004 14.43.7 10.7

2005 14.83.9 10.9

2006 15.14.0 11.1

3.9 11.01H06 15.0

4.0 11.21H07 15.2

1H07

37.02003

39.02004

40.22005

39.72006

1H06

40.0

41.7

19

Infrastructure and TechnologyInfrastructure and TechnologyInfrastructure and TechnologyInfrastructure and Technology

Transaction in Automated Channels - %

ATM

Internet BankingCashier

POS

Others

Breakdown of Transactions - %

1H06 1H07

2004 88.4

2005 89.2

2006 90.0

1H06 89.0

1H07 89.9

86.42003

47.3

31.1

11.0

6.8 3.7

45.9

32.2

10.1

7.84.0

20

Administrative Expenses - R$ billion Operational Income - R$ billion

ProductivityProductivityProductivityProductivity

Efficiency Ratio - %

11.3

20.3

12.6

23.2

13.1

27.3

13.7

28.9

2003 2004 2005 2006 1H06 2H06 1H07

55.8 54.248.1 47.5

6.7

14.7

7.1

14.2

7.5

15.3

49.1

45.5

49.7

21

Fee Income - R$ billionPersonnel Expenses - R$ billion

Coverage Ratio - %

ProductivityProductivityProductivityProductivity

2003 2004 2005 2006 1H06 2H06 1H07

6.8

5.5

7.16.6

7.5 7.6 7.9

8.9

112.9102.3

93.180.6

3.94.3 4.0

4.5 4.44.8

110.1113.6112.2

22

Net Interest IncomeNet Interest IncomeNet Interest IncomeNet Interest Income

2004 2005 2006 1H06 2H06 1H07

17.1

11.3

2.9

15.8 19.2

12.4

2.0

16.8 21.6

13.5

1.6

18.7

10.4

6.8

0.9

9.4 11.2

6.7

0.7

9.3 12.2

6.2

1.3

9.6

R$ billion

Security Revenues

Loan Revenues

Other Interest RevenuesInterest Expense

Net Interest Income

15.516.7

18.0

8.7 9.3 10.1

23

FundingFundingFundingFunding

R$ billion

Demand Deposits Saving Deposits

Time Deposits Others¹

2003

150.1

2004

160.1

2005

168.2

2006

208.1

1H06

191.4

1H07

239.3

(1) Include Interbank Deposits, Investment Deposits and Money Market Borrowing

48.2

47.3

27.4

27.1

49.7

50.3

31.1

29.0

63.5

36.0

32.8

35.8

76.9

54.4

36.7

40.1

69.4

57.5

33.2

31.4

81.4

80.2

40.8

36.8

24

Loan PortfolioLoan PortfolioLoan PortfolioLoan Portfolio

16.1

33.4

30.0

9.0 18.4

38.5

35.7

9.224.0

51.9

45.1

12.2

2004 2005 2006 1H06 1H07

IndividualsBusinesses Agribusiness Abroad

R$ billion

88.6101.8

133.2

113.1

145.2

41.7

39.9

21.6

9.9

56.3

48.8

27.9

12.2

25

DelinquencyDelinquencyDelinquencyDelinquency

6.1

7.4

6.5

3.13.6

2.8

6.1

4.1

5.04.6

5.0

3.2

Jun/04 Jun/05 Jun/06 Jun/07

Allowance / Loan Portfolio - %

Past Due Loans + 15 days / Loan Portfolio - %

Past Due Loans + 60 days / Loan Portfolio - %

26

Loan Portfolio - IndividualsLoan Portfolio - IndividualsLoan Portfolio - IndividualsLoan Portfolio - Individuals

2004 2005 2006 1H06 1H07

Cars

Payroll Loan

Overdraft Account Credit Cards

Others

16.1

18.4

24.0

R$ billion

0.3 2.2

2.01.5

10.0

0.2 2.2

2.5

3.8

9.7

0.92.2

3.1

8.3

9.5

21.6

0.42.6

2.7

6.0

9.9

27.9

1.7

2.6

3.4

10.2

9.9

27

Loan Portfolio - BusinessesLoan Portfolio - BusinessesLoan Portfolio - BusinessesLoan Portfolio - Businesses

2004 2005 2006 1H06 1H07

13.2

20.2

15.4

23.1

18.3

33.6

Middle and Large EnterprisesSmall and Micro Enterprises

33.4

38.5

51.9

41.7

56.3

R$ billion

16.6

25.1

21.4

35.0

28

Loan Portfolio - AgribusinessLoan Portfolio - AgribusinessLoan Portfolio - AgribusinessLoan Portfolio - Agribusiness

Mini-Sized Farmers

Small-Sized Farmers

Other Farmers

Cooperative

2004 2005 2006 1H06 1H07

1.3 3.1

6.0

19.6

1.83.8

7.4

22.8

2.05.3

8.6

29.230.0

35.7

45.1

39.9

48.8R$ billion

1.8 1.94.4

7.6

26.1

5.9

9.1

31.9

29

RetailRetailRetailRetail

Credit Card Revenue - R$ billion¹

Issued Credit Cards - million

(1) Debt cards included

18.1

2003

24.3

2004

31.6

2005 2006 1H06 1H07

14.1

9.3

6.95.3 37.9

17.6

22.7

9.9

15.7

30

InsuranceInsuranceInsuranceInsurance

Managed Portfolio - R$ millionInsured Cars - thousand

Car Insurance

171.8

238.7

318.5

367.0

2003 2004 2005 2006 1H06 1H07

676625

578500

351.3

405.2

718635

31


Managed Portfolio - R$ millionInsured Lives - thousand

Life Insurance

2003 2004 2005 2006 1H06 1H07

570.5

680.6717.1

820.1

1,2631,351 1,417

1,748

753.7826.3

1,8241,685

32


Managed Portfolio - R$ millionParticipants - thousand

Pension Fund

2003 2004 2005 2006 1H06 1H07

5,586

7,781

9,659

12,480

1,1781,365

1,5761,760

10,741

14,061

1,9031,652

33


Managed Portfolio - R$ millionsQuantity of Plans - thousand

Capitalization (Annuity Plans)

2003 2004 2005 2006 1H06 1H07

2,0602,264

2,875 2,886 2,822 2,727

2,768

2,661

2,792

2,949

2,851

2,859

34

Sustainable Regional DevelopmentSustainable Regional DevelopmentSustainable Regional DevelopmentSustainable Regional Development

Strategy for job and income generation in a sustainable way which began in 2003.

Support to environmentally correct, socially fair, economically viable and culturally diversified productive activities.

2004 2005 2006 1H06 1H07

Contracted Amount - R$ million 13.6 105.4 313.8 230.0 477.6 Benefited Families (thousand) 16.8 70.6 230.9 149.1 307.3 Involved Branches 428 1,482 2,502 1,693 3,586 Skilled Employees 1,370 4,062 6,052 5,469 9,788 Served Municipalities 642 1,503 2,788 1,830 3,343 Approved Business Plans 120 375 1,020 710 1,529 Productive Activities 40 70 70 70 70

35

Investor Relations UnitSBS - Quadra 1 - Bloco C - Ed. Sede III - 5° floor

70073-901 - Brasília (DF)Phone: 55 (61) 3310.3980

Fax: 55 (61) 3310.3735

[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 S.A. 2H07